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<br />20070001.2
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<br />action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a
<br />condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup.
<br />Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous
<br />Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow
<br />anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which
<br />creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance,
<br />creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to
<br />the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally
<br />recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not
<br />limited to, hazardous substances in consumer products).
<br />Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or
<br />other action by any governmental or regulatory agency or private party involving the Property and any Hazardous
<br />Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition,
<br />including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance,
<br />and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the
<br />value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private
<br />party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary,
<br />Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing
<br />herein shall create any obligation on Lender for an Environmental Cleanup.
<br />19. Assignment of Leases and Rents. Borrower irrevocably grants, conveys, sells and assigns to
<br />Trustee, in trust for the benefit of Lender, as additional security: (a) all of Borrower's right, title and interest in and
<br />to any and all existing or future leases, subleases, and any other written or verbal agreements for the use and
<br />occupancy of any portion of the Property, including any extensions, renewals, modifications or substitutions of such
<br />agreements (all referred to as "Leases"), and (b) all of the rents, security deposits, issues and profits arising out of or
<br />earned in connection with the Property (all referred to as "Rents").
<br />Borrower will promptly provide Lender with true and correct copies of all existing and future Leases.
<br />Borrower may collect, receive, enjoy and use the Rents so long as Borrower is not in default under the terms of this
<br />Security Instrument. Borrower agrees that this assignment is immediately effective between the parties to this
<br />Security Instrument. Borrower agrees that this assignment is effective as to third parties when Lender or Trustee
<br />takes affirmative action prescribed by law, and that this assignment will remain in effect during any redemption
<br />period until the Loan is satisfied.
<br />Borrower agrees that Lender or Trustee may take actual possession of the Property without the necessity of
<br />commencing legal action and that actual possession is deemed to occur when Lender, or its agent, notifies Borrower
<br />of an event of default and demands that any tenant pay all future Rents directly to Lender. On receiving notice of an
<br />event of default, Borrower will endorse and deliver to Lender any payment of Rents in Borrower's possession and
<br />will receive any Rents in trust for Lender and will not commingle the Rents with any other funds. Unless
<br />Applicable Law provides otherwise, all Rents collected by Lender or Lender's agent shall be applied first to the
<br />costs of taking control of and managing the Property and collecting the Rents, including, but not limited to,
<br />attorney's fees, receiver's fees, premiums on receiver's bonds, repair and maintenance costs, insurance premiums,
<br />taxes, asseSsments and other charges on the Property,-and then to the sums secured by this Security Instrunient in-the-
<br />order provided for in Section 2. If the Rents ofthe Property are not sufficient to cover the costs of taking control of
<br />and managing the Property and of collecting the Rents any amounts disbursed by Lender for such purposes shall
<br />become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the
<br />rate applicable to the Debt Instrument from time to time, from the date of disbursement and shall be payable, with
<br />such interest, upon notice from Lender to Borrower requesting payment.
<br />Borrower warrants that no default exists under the Leases or any applicable landlord/tenant law. Borrower
<br />agrees to maintain and require any tenant to comply with the terms of the Leases and applicable law.
<br />20. Condominiums; Planned Unit Developments. If the Property is a unit in a condominium
<br />project ("Condominium Project") or is part of a planned unit development ("PUD"), Borrower agrees to the
<br />following:
<br />A. Obligations. Borrower shall perform all of Borrower's obligations under the Constituent Documents.
<br />The "Constituent Documents" are the: (i) Declaration or any other document which creates the Condominium
<br />Project or PUD and any condominium association, homeowners association or equivalent entity ("Community
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<br />liiilliiflllifliljiiSllillliilllli (5/4/06)
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<br />(page 9 of 13 pages)
<br />Documenls Processed 11-14-2006, 14:19:32
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