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39 <br /> The Property Owners shall promptly discharge any lien which has priority over <br /> this Deed of Trust, unless the County agrees to subordinate this Deed of Trust to the existing <br /> lien. <br /> 2-3 Condemnation. The Property Owners shall immediately notify the County if any <br /> governmental authority shall institute, or shall notify the Property Owners of any intent to <br /> institute, any action or proceeding for the taking of, or damages to, all or any part of the <br /> Mortgaged Property or any interest therein under the power of eminent domain, or if there shall <br /> be any damage to the Mortgaged Property due to governmental action, but not resulting in a <br /> taking of any portion of the Mortgaged Property. If the Property Owners receive any proceeds <br /> arising from any such action,the Property Owners shall apply such proceeds (net of any <br /> expenses of collection) to make prepayments on the Promissory Note or for any other purpose <br /> that the County shall determine. <br /> 2-4 Insurance; Damage and Destruction. <br /> (a) The Property Owners shall keep the improvements now existing or hereafter <br /> erected on the Mortgaged Property adequately insured against loss by fire,hazards included <br /> within the term"extended coverage", and any other hazards including but not limited to <br /> earthquakes and floods. <br /> (b) The Property Owners shall immediately notify the County if: (i)the Mortgaged <br /> Property or any portion thereof is stolen or is destroyed or damaged by fire or other casualty, (ii) <br /> a material defect in the construction of the improvements shall become apparent, or (iii)title to <br /> or the use of all or any portion of the Mortgaged Property shall be lost by reason of a defect in <br /> title. Each notice shall describe generally the nature and extent of such damage, destruction or <br /> taking. <br /> (c) If the Property Owners receive any insurance proceeds arising from any <br /> circumstance described in subsection(a) above,they shall apply such proceeds (net of any <br /> expenses of collection)to make prepayments on the Promissory Note or for any other purpose <br /> that the County shall determine. <br /> 2-5 Payment of Costs and Attorney's Fees. If the Deed of Trust Trustee or the <br /> County employs an attorney to assist in the enforcement or collection of any obligations under <br /> taken by ,NONPROFIT CORPORATION pursuant to the Loan Documents, or <br /> if the Deed of Trust Trustee or the County voluntarily or otherwise shall become a party or <br /> parties to any suit or legal proceeding (including a proceeding conducted under any state or <br /> federal bankruptcy or insolvency statute)to protect the Mortgaged Property,to protect the lien of <br /> this Deed of Trust, to enforce collection of the obligations or to enforce compliance by <br /> ,NONPROFIT CORPORATION and the Mortgaged Property with any of the <br /> provisions in the Loan Documents and this Deed of Trust,respectively, the Property Owners <br /> agree to pay reasonable attorneys' fees and all of the costs that may reasonably be incurred <br /> (whether or not any suit or proceeding is commenced), and such fees and costs (together with <br /> interest at the rate of 8.00%per year) shall be secured as obligations under this Deed of Trust. <br /> 2-6 Advances for Performance of , nonprofit.NONPROFIT <br /> CORPORATIONs Obligations. If the ,NONPROFIT CORPORATION fails <br /> to perform any of its obligations under the Loan Documents and/or the Property Owners fail to <br /> 4 <br />