|
Disposition and Development Agreement between Trustor and Beneficiary's predecessor in interest dated February
<br />7, 2000, as amended; to complete or restore promptly and in good and workmanlike manner any building which may
<br />be constructed, damaged, or destroyed thereon and to pay when due all claims for labor performed and materials
<br />furnished therefore; to comply with all laws affecting the Property or requiring any alterations or improvements to be
<br />made thereon; not to commit or permit waste thereof; not to commit, suffer, or permit any act upon the Property in
<br />violation of law; and to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts which from the character or
<br />use of the Property may be reasonably necessary, the specific enumerations herein not excluding the general.
<br />2. Hazardous Materials. Trustor shall not cause or permit any Hazardous Materials (as hereinafter
<br />defined) to be brought upon, kept or used in or about the Property by Trustor, its officers, agents, employees,
<br />contractors or invitees. Trustor shall indemnify, defend (with counsel approved by Beneficiary) and hold Beneficiary
<br />harmless from and against any and all claims, judgments, damages, penalties, fines, costs, liabilities and losses
<br />(including, without limitation, diminution in value of the Property, and sums paid in settlement of claims, reasonable
<br />attorneys' fees, consultant fees and expert fees) which arise during or after the term of this Deed of Trust as a result
<br />of any breach, contamination, discharge, or release of Hazardous Materials. This indemnification of Beneficiary by
<br />Trustor is limited to available residual receipts approved for release by HUD or nonproject assets which may include,
<br />without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial,
<br />removal or restoration work required by any federal, state or local governmental agency or political subdivision
<br />because of Hazardous Materials present in, on or under the Property or adjacent property caused by or a result of
<br />Trustoes activities. This indemnification specifically excludes hazardous materials on the Property as a result of prior
<br />occupant. If any Hazardous Materials are discharged, released, dumped, or spilled on, under, or about the Property
<br />after Trustor obtains ownership and results in any contamination of the Property or adjacent property, or otherwise
<br />results in the release or discharge on, under or from the Property of Hazardous Materials, Trustor shall promptly take
<br />all actions at its sole expense as are necessary to comply with, and in accordance with, all Hazardous Materials
<br />Laws.
<br />The term "Hazardous Materials" includes, without limitation, any flammable explosives, radioactive
<br />materials, hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in the
<br />Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. '9601 et
<br />seq.), the Hazardous Materials Transportation Act, as amended (49 U.S.C. '1801 et seq.), the Resource
<br />Conservation and Recovery Act of 1976, as amended (42 U.S.C. '6901 et seq.), Section 25117 of the California
<br />Health & Safety Code, Section 25316 of the California Health & Safety Code, and in the regulations adopted and
<br />publications promulgated pursuant to them, or any other federal, state, or local environmental laws, ordinances,
<br />rules, or regulations concerning the environment, industrial hygiene or public health or safety now in effect or enacted
<br />after this date, but excludes materials used in compliance with the law in the construction and operation of the
<br />Project.
<br />3. Charges; Liens. Trustor shall pay at least ten days before delinquency all taxes and assessments
<br />affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges,
<br />and liens, with interest, on the Property or any part thereof, which appear to be prior or superior hereto; all costs,
<br />fees, and expenses of this Trust. Trustor shall give prompt notice to Beneficiary of any default under any mortgage,
<br />deed of trust or other security agreement with a lien on the Property.
<br />4. Hazard Insurance. Trustor shall keep the improvements and personal property now existing or
<br />hereafter erected on the Property insured against loss by fire, vandalism and malicious mischief by a policy of
<br />standard fire and extended all-risk insurance. The policy shall be written on a full replacement value basis.
<br />
|