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111�111U11V�1UI�11U���� ►►��►���������������� <br />RB6500 663 6111 <br />Bankruptcy Code or Act against Borrower or guarantor which is not dismissed within <br />30 days; or the filing of an answer in an involuntary proceeding admitting insolvency <br />or inability to pay debts; or any assignment for the benefit of creditors by or against <br />Borrower or any guarantor; or the attachment, execution or other judicial seizure of <br />any portion of Borrower's or any guarantor's assets which is not discharged within ten <br />(10) days; or <br />The failure of any Borrower to perform any other non - monetary obligation or <br />condition of the Loan Documents within 30 days after notice from Lender; provided <br />that if such default cannot reasonably be cured within 30 days, it shall not constitute <br />an Event of Default as long as Borrower is diligently pursuing such cure unless it is <br />not cured within 180 days after the original notice of default from Lender. <br />Upon any Event of Default, the entire principal sum evidenced by the Note and accrued <br />but unpaid interest hereon may, at the sole option of Lender, be declared at once due and <br />payable, time being of the essence of this obligation. Failure of Lender to exercise this option in <br />the event of any Event of Default shall not constitute a waiver of the right of Lender to exercise <br />the same in the event of a subsequent Event of Default. <br />13. Use of Premises. Unless required by applicable law or unless Lender has otherwise <br />agreed in writing, Borrower shall not allow changes in the use for which all or any part of the <br />Premises was intended at the time this Deed of Trust was executed. Borrower shall not initiate or <br />acquiesce in a change in the zoning classification of the Premises without Lender's prior written <br />consent. <br />14. Insoection. To assure and protect its rights under this Deed of Trost, Lender shall <br />have the fight to access and inspection of the Premises at reasonable times and upon reasonable <br />notice to Borrower. <br />15. Application of Payments. All payments and other sums of money received by Lender <br />shall be applied by Lender first to amounts due Lender for Advancements or Attorney's Fees <br />pursuant to this Deed of Trost, then to interest payable of the Note, then to the principal of the <br />Note, then to other payments due under the Loan Documents including equity payments <br />provided for in the Development Agreement and the Declaration of Restrictive Covenants. <br />16. Environmental Issues. <br />Borrower warrants that, (i) to the best of Borrower's knowledge, the Premises and the <br />land described in Exhibit A attached hereto (the "Land ") are free of Hazardous <br />Materials, (ii) neither Borrower, nor to the best of Borrower's knowledge, anyone else <br />connected with the Premises or the Land has received any notice from any <br />governmental agency, entity or other person with regard to Hazardous Materials, <br />from or affecting the Premises or the Land, and (iii) to the best of Borrower's <br />knowledge, there is not now pending or threatened any action, suit, investigation or <br />proceeding against Borrower relating to the Premises or the Lender (or against any <br />other party relating to the Premises or the Land) seeking to enforce any right or <br />