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<br />then, to the extent of the funds so used, Lender shall be subrogated to all of the rights, claims,
<br />liens, titles, and interests existing against the Property heretofore held by, or in favor of, the
<br />holder of such indebtedness and such former rights, claims, liens, titles, and interests, if any, are
<br />not waived but rather are continued in full force and effect in favor of Lender and are merged
<br />with the lien and security interest created herein as cumulative security for the repayment of the
<br />Debt, the performance and discharge of Borrower's obligations hereunder, under the Loan
<br />Agreement, the Note and the other Loan Documents and the performance and discharge of the
<br />Other Obligations.
<br />Section 14.7 Entire Agreement. The Note, the Loan Agreement, this Security
<br />Instrument and the other Loan Documents constitute the entire understanding and agreement
<br />between Borrower and Lender with respect to the transactions arising in connection with the
<br />Debt and supersede all prior written or oral understandings and agreements between Borrower
<br />and Lender with respect thereto. Borrower hereby acknowledges that, except as incorporated in
<br />writing in the Note, the Loan Agreement, this Security Instrument and the other Loan
<br />Documents, there are not, and were not, and no Persons are or were authorized by Lender to
<br />make, any representations, understandings, stipulations, agreements or promises, oral or written,
<br />with respect to the transaction which is the subject of the Note, the Loan Agreement, this
<br />Security Instrument and the other Loan Documents.
<br />Section 14.8 Limitation on Lender's Responsibility. No provision of this
<br />Security Instrument shall operate to place any obligation or liability for the control, care,
<br />management, operation or repair of the Property upon Lender, nor shall it operate to make
<br />Lender responsible or liable for any waste committed on the Property by the tenants or any other
<br />Person, or for any dangerous or defective condition of the Property, or for any negligence in the
<br />management, operation, upkeep, repair or control of the Property resulting in loss or injury or
<br />death to any tenant, resident or patient, licensee, employee or stranger. Nothing herein contained
<br />shall be construed as constituting Lender a "mortgagee in possession."
<br />ARTICLE 15 - DEED OF TRUST PROVISIONS
<br />Section 15.1 Concerning the Trustee. If directed by Lender to foreclose the
<br />lien and security interest of this Security Instrument, Trustee will either personally or by agent
<br />give notice of the foreclosure sale and sell and covey all or part of the Property "AS IS" to the
<br />highest bidder for cash with a general warranty binding Borrower, subject to the Permitted
<br />Encumbrances and without representation or warranty, express or implied by Trustee. Trustee
<br />shall pay from the proceeds of the sale, in this order (a) expenses of foreclosure; (b) to Lender,
<br />the full amount of principal, interest, reasonable attorney's fees, and other charges due and
<br />unpaid; (c) any amounts required by law to be paid before payment to Borrower and (d) to
<br />Borrower, any balance. Trustee shall be under no duty to take any action hereunder except as
<br />expressly required hereunder or by law, or to perform any act which would involve Trustee in
<br />any expense or liability or to institute or defend any suit in respect hereof, unless properly
<br />indemnified to Trustee's reasonable satisfaction. Trustee, by acceptance of this Security
<br />Instrument, covenants to perform and fulfill the trusts herein created, being liable, however, only
<br />for gross negligence or willful misconduct, and hereby waives any statutory fee and agrees to
<br />accept reasonable compensation, in lieu thereof, for any services rendered by Trustee in
<br />accordance with the terms hereof. Trustee may resign at any time upon giving thirty (30) days'
<br />NYL184 753776.3 -20-
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