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<br />86, 10751.2
<br />all Laws of any Governmental Authority or court applicable to
<br />Trustor or the Property or any part thereof.
<br />1.13. Records and Books. (a) Trustor will keep adequate
<br />records and books of account in accordance with generally
<br />accepted accounting principles and will permit Trustee and
<br />Beneficiary, or their agents, accountants and attorneys, to visit
<br />and inspect the Property and examine Trustor's records and books
<br />of account and to discuss Trustor's affairs, finances and
<br />accounts with the officers, agents or principals of Trustor at
<br />such reasonable times as may be requested by Trustee or
<br />Beneficiary. An annual operating statement as defined by the
<br />Beneficiary will be required so long as the Deed of Trust or Note
<br />is in effect.
<br />(b) Trustor of the Note will deliver to Beneficiary with
<br />reasonable promptness after the close of their respective fiscal
<br />years' balance sheets, operating statements and statements of
<br />profit and loss setting forth in each case, in comparative form,
<br />figures for the preceding year. Throughout the term of this Deed
<br />of Trust, Trustor will deliver to Beneficiary with reasonable
<br />promptness such other information with respect to Trustor as
<br />Beneficiary may reasonably request from time to time.
<br />1.14. Subrogation. Beneficiary shall be subrogated,
<br />notwithstanding their release of record, to any mechanic's,
<br />construction's or vendor's lien or liens, superior titles,
<br />mortgages, deeds of trust, liens, encumbrances, rights, equities
<br />and charges of all kinds heretofore or hereafter existing on the
<br />Property to the extent that the same are paid or discharged from
<br />the proceeds of the loan evidenced by the Note.
<br />1.15. Release of Liability or Performance. Subject to
<br />paragraph 5.01, without affecting the liability of Trustor or of
<br />any other person who is or shall become bound by the terms of
<br />this Deed of Trust or who is or shall become liable for the
<br />performance of any obligation secured hereby, Beneficiary may, in
<br />such manner, upon such terms and at such times as it deems best
<br />and without notice or demand, release any party now or hereafter
<br />liable for the performance of any such obligation, extend the
<br />time for such performance, accept additional security therefor,
<br />and alter, substitute or release any property securing such
<br />performance. No exercise or nonexercise by Beneficiary of any of
<br />its rights under this Deed of Trust, no dealing by Beneficiary
<br />with any person, firm or corporation and no change, impairment,
<br />loss or suspension of any right or remedy of Beneficiary shall in
<br />any way affect any of the obligations of Trustor hereunder or any
<br />security furnished by Trustor, or give Trustor any recourse
<br />against Beneficiary.
<br />1.16. Additional Liens and Protection of Lender's
<br />Security. Trustor shall make all payments of interest and
<br />principal and payments of any other charges, fees and expenses
<br />contracted to be paid to any existing lien holders or prior
<br />beneficiaries under any prior Deed of Trust or Mortgage before
<br />the date they are delinquent and promptly pay and discharge any
<br />and all other liens, claims or charges which may jeopardize the
<br />security granted herein. If Trustor fails to make any such
<br />payment or fails to perform any of the covenants and agreements
<br />contained in this Deed of Trust, or in any prior mortgage or deed
<br />of trust, or if any action or proceeding is commenced which
<br />materially affects Lender's interest in the Property, including,
<br />but not limited to, eminent domain proceedings, or proceedings
<br />involving a decedent or if Trustor fails to pay Trustor's debts
<br />as they become due, then Beneficiary, at Beneficiary's optioih and
<br />without notice to or demand upon Trustor and without releasing
<br />Trustor from any obligation hereunder, may make such appearances,
<br />disburse such sums and take such action as is necessary to
<br />protect Beneficiary's interest, including, but not limited to,
<br />disbursement of reasonable attorneys' fees, payment, purchase,
<br />contest or compromise of any encumbrance, charge or lien, entry
<br />upon the Property to make repairs and defend title. in the event
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