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5.8 Use of Property. Truster shall not permit or suffer the use of any of the <br />Property for any purpose not allowed by the San Leandro Zoning Code or any other <br />applicable law. <br />5.9 Protection of Beneficiary's Security. If Trustor fails to perform the <br />covenants and agreements contained in this Deed of Trust, or if any action or <br />proceeding is commenced which materially affects Beneficiary's interest in the Property, <br />including, but not limited to, eminent domain, insolvency, code enforcement, <br />arrangements, o.r proceedings involving a bankrupt or decedent, foreclosure of any <br />mortgage secured by the Property or sale of the Property under a power of sale of any <br />instrument secured by the Property, then Beneficiary, at Beneficiary's option, upon <br />notice to Trustor, may make such appearance, disburse such sums, and take such <br />action as is necessary to protect Beneficiary's interest, including, but not limited to, the <br />purchase of insuranc.e, disbursement of reasonable attorney's fees and entry upon the <br />Property to make repairs. Any amounts disbursed by Beneficiary pursuant to this <br />Section, with interest thereon, shall become additional indebtedness of Trustor secured <br />by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, <br />such amounts shall be payable upon notice from Beneficiary to Trustor requesting <br />payment thereof, and shall bear interest from the date of disbursement at the highest <br />rate permissible under applicable law. Nothing contained ·in this Section shall require <br />Beneficiary to _incur any expense or take any action hereunder. · · <br />. 5.10 Inspection. Beneficiary or its agent may make or cause to be made <br />reasonable entries upon and inspections of the Property. Beneficiary shall give Trus.tor <br />notice at the time of or prior to· any such inspection specifying reasonable cause for the <br />· inspection · <br />5'.11 Awards and Damages. All judgments, awards of damages, settlements <br />and compensation made in connection with or in lieu of (a) taking of all or any part of or <br />any interest in the Property by or under assertion of the power of eminentdomain, (b) <br />any damage to or destrwction of the Property or any part thereof by insured casualty, <br />ard (c) any other injury or damage to all or any part of the Property, are hereby <br />assigned to and shall be paid to the Beneficiary, subject to the rights of any senior lien <br />holder. The Beneficiary is authorized and empowered (but not required) to collect and <br />receive any such sums and is authorized to apply them in whole or in part upon any <br />indebtedness or obligatiori secured hereby, in such order and manner as the <br />Beneficiary shall determine at its option. The Beneficiary shall be entitled to settle and <br />adjust all claims under insurance policies provided under this Deed of Trust and may <br />deduct and retain from the proceeds of such insurance the amount of all expenses <br />incurred by it in connection with any such settlement or adjustment. All or any part of <br />the amounts so collected and recovered by the Beneficiary may be released to Truster <br />upon such conditions as the Beneficiary may impose for its disposition. Application of <br />all or ariy part of the amounts collected and received by the Beneficiary or the release <br />thereof shall not cure or waive any defauit under this Deed of Trust. If the Property is <br />abandoned by Trustor, or if, after notice by Beneficiary to Truster that the condemner <br />offers to make an award or settle a claim for damages, Trustor fails to respond to <br />Exhibit C Page 6 of 16