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appropriate legal proceedings promptly initiated and conducted in good faith and with due
<br /> diligence, provided that (i) Beneficiary is reasonably satisfied that neither the Property nor any
<br /> part thereof or interest therein will be in danger of being sold, forfeited, or lost as a result of such
<br /> contest, and (ii) Trustor shall have posted a bond or furnished other security as may reasonably
<br /> be required from time to time by Beneficiary; and provided further that Trustor shall timely
<br /> make any payment necessary to prevent a lien foreclosure, sale, forfeiture or loss of the Property.
<br /> Trustor shall immediately discharge or cause to be discharged any lien on the Property
<br /> (other than encumbrances approved by Beneficiary as of the date hereof in writing). Trustor
<br /> shall pay when due each obligation secured by or reducible to a lien, charge or encumbrance
<br /> which now does or later may encumber or appear to encumber all or part of the Property or any
<br /> interest in it, whether or not such lien, charge or encumbrance is or would be senior or
<br /> subordinate to this Deed of Trust. Trustor shall not be required to pay any tax, levy, charge or
<br /> assessment so long as its validity is being actively contested in good faith and by appropriate
<br /> actions and /or proceedings.
<br /> 7.7 Subrogation. Beneficiary shall be subrogated to the liens of all encumbrances,
<br /> whether released of record or not, which are discharged in whole or in part by Beneficiary in
<br /> accordance with this Deed of Trust.
<br /> 7.8 Hazard, Liability and Workers' Compensation Insurance. At all times during the
<br /> term hereof, Tntstor shall at Trustor's expense, maintain insurance policies in accordance with
<br /> the requirements set forth in the City Documents. Trustor shall file with Beneficiary prior to the
<br /> commencement of the term hereof, certificates (or such other proof as Beneficiary may
<br /> reasonably require, (including without limitation copies of the required insurance policies)
<br /> evidencing each of the insurance policies and endorsements thereto as required pursuant to the
<br /> City Documents, and such certificates (or policies) shall provide that at least thirty (30) days'
<br /> prior written notice shall be provided to Beneficiary prior to the expiration, cancellation or
<br /> change in coverage under each such policy. If any insurance policy required pursuant to the City
<br /> Documents is canceled or the coverage provided thereunder is reduced, Trustor shall, within ten
<br /> (10) days after receipt of written notice of such cancellation or reduction in coverage, but in no
<br /> event later than the effective date of cancellation or reduction, file with Beneficiary a certificate
<br /> showing that the required insurance has been reinstated or provided through another insurance
<br /> company or companies. Upon failure to so file such certificate, Beneficiary may, without further
<br /> notice and at its option, procure such insurance coverage at Trustor's expense, and Trustor shall
<br /> promptly reimburse Beneficiary for such expense upon receipt of billing from Beneficiary.
<br /> 7.9 Hazardous Materials. Trustor shall not cause or permit any Hazardous Material
<br /> (as 'defined in Section 4.13.1 of the City Loan Agreement) to be brought upon, kept, stored or
<br /> used in, on, under, or about the Land by Trustor, its agents, employees, contractors or invitees
<br /> except for incidental supplies ordinarily used in the construction and operation of the Project in
<br /> compliance with all applicable laws, and shall not cause any release of Hazardous Materials into, .
<br /> onto, under or through the Land. If any Hazardous Material is discharged, released, dumped, or
<br /> spilled in, on, under, or about the Land and results in any contamination of the Land or adjacent
<br /> property, or otherwise results in the release or discharge of Hazardous Materials in, on, under or
<br /> from the Land, Trustor shall promptly take all actions at its sole expense as are necessary to
<br /> comply with all Environmental Laws (as defined below).
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