|
DEED OF TRUST
<br />Loan No: 777247 12003-04610 (Continued) Page 2
<br />Hazardous Substance on, under, about or from the Property, by any prior owners or occupants of the Property, or (cl any actual or
<br />Threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and
<br />acknowledged by Lender in writing, (a) neither Truster nor any tenant, contractor, agent or other authorized user of the Property
<br />shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property;
<br />and Ibl any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and
<br />ordinances, including without limitation all Environmental Laws. Truster authorizes Lender and Its agents to enter upon the Property
<br />to make such inspections and tests, at Truster 'a expense, as Lender may deem appropriate to determine compliance of the Property
<br />with this section of the Deed of Trust. Any Inspections or tests made by Lender shall be for Lender's purposes only and shall not be
<br />construed to create any responsibility or liability on the part of Lender to Truster or to any other person. The representations and
<br />warranties contained herein are based on Truster's due diligence In investigating the Property for Hazardous Substances. Truster
<br />hereby (1) releases and waives any future claims against Lender for indemnify or contribution in the event Truster becomes liable for
<br />cleanup or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lander against any and all claims, losses,
<br />liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this
<br />section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release
<br />occurring prior to Truster's ownership or interest in the Property, whether Or not the same was or should have been known to Truster.
<br />The provisions of this section of the Dead of Trust, including the obligation to indemnify, shall survive the payment of the
<br />indebtedness and the satisfaction and reconviii of the lien of this Deed of Trust and shall not be affected by Lender's acquisition
<br />of any interest in the Property, whether by foreclosure or otherwise.
<br />Nuisance, Waste. Truster shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on
<br />or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Truator will not remove, or grant to
<br />any other party the right to remove, any timber, minerals (including oil and goal, coal, clay, scoria, soil, gravel or rock products
<br />without Lender's prior written consent.
<br />Removal of Improvements. Truster shall not demolish or remove any Improvements from the Real Property without Lender's prior
<br />written consent. As a condition to The removal of any Improvements. Lender may require Truster to make arrangements satisfactory
<br />to Lander to replace such Improvements with Improvements of at least equal value.
<br />Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to
<br />attend to Lender's interests and to inspect the Real Property for purposes of Truster's compliance with the terms and conditions of
<br />this Dead of Trust.
<br />Compliance with Governmental Requirements. Truster shall promptly comply with all laws, ordinances, and regulations, now or
<br />hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property. Truster may contest in geed
<br />faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as
<br />Truster has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are
<br />not jeopardized. Lender may require Truster to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect
<br />Lender's interest.
<br />Duty to Protect. Truster agrees neither to abandon or leave unattended the Property. Truster shall do all other acts, in addition to
<br />those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and
<br />preserve the Property.
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Dead of Trust:
<br />Payment. Truster shall pay when due land in all events prior to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done
<br />on or for services rendered or material furnished to the Property. Truster shall maintain the Property free of all Ilene having priority
<br />over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as
<br />otherwise provided in this Deed of Trust.
<br />Right to Contest Truster may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the
<br />obligation to pay, so long as Lender's interest In the Property is not jeopardized. If a lien arises or is filed as a result Of nonpayment,
<br />Truster shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Truster has notice of the
<br />filing, secure the discharge of the lien, or it requested by Lender, deposit with Lander cash or a sufficient corporate surety bond or
<br />other security satisfactory to Lander In an amount sufficient to discharge the lien plus any coats and attorneys' tees, or other charges
<br />that could accrue as a result of a foreclosure or sale under the lien. In any contest, Truster shall defend itself and Lander and shall
<br />satisfy any adverse judgment before enforcement against The Property. Truster shall name Lender as an additional obligee under any
<br />surety bond furnished In the contest proceedings.
<br />Evidence of Payment. Truster shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen 115) days before any work is commenced, any services are
<br />furnished, or any materials are supplied to the Property, if any mechenic'e lien, materialmen's lien, or other lien could be ..sorted on
<br />account of the work, services, or materials. Truster will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Truster can and will pay the cost of such Improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Dead of Trust.
<br />Maintenance of Insurance. Truster shall procure and maintain policies of tire insurance with standard extended coverage
<br />endorsements on a fair value basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient
<br />to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lander, together with such other
<br />hazard and liability Insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br />reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Truster, upon request of
<br />Lender, will deliver to Lander from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br />
|