Common use of PROTECTION OF BENEFICIARY’S SECURITY Clause in Contracts

PROTECTION OF BENEFICIARY’S SECURITY. a. If Trustor fails to perform the Trustor Covenants or any obligations contained in this Deed of Trust, or the Note, if an Event of Default, as defined hereafter, occurs, or if any action or proceeding is commenced which materially affects Beneficiary’s interest in the Security, then Beneficiary, at its option and upon notice to Trustor, may make such appearances, disburse such sums and take such action as it determines necessary to protect Beneficiary’s interest, including but not limited to, disbursement of reasonable attorney’s fees and necessary repairs to the Security. b. Any amounts disbursed by Beneficiary pursuant to this Section will become an indebtedness of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, such amount will be payable upon notice from Beneficiary to Trustor requesting payment thereof, and will bear interest of ten percent (10%) from the date of disbursement unless payment of interest at such rate would be contrary to applicable law, in which event such amounts will bear interest at the highest rate permissible under applicable law. Beneficiary to insure any expense or take any action hereunder. c. In the event that Trustor fails to observe or perform any obligations or Trustor Covenants under this Deed of Trust, or the Note, then Beneficiary may hold Trustor in default, treat the occurrence as an Event of Default pursuant to this Deed of Trust, and take any actions available under this Deed of Trust, or the Note, including, but not limited to, acceleration of any payments due or sale of the Security, as provided for hereafter.

PROTECTION OF BENEFICIARY’S SECURITY. a. Leases. If Trustor Grantor fails to pay the Indebtedness or perform the Trustor Covenants or any obligations contained in this Deed of Trust, or the Note, if an Event of Default, as defined hereafter, occursObligations, or if any action or proceeding is commenced which materially affects Beneficiary’s interest in the SecurityProperty, then Trustee or Beneficiary, at its option and upon notice to TrustorBeneficiary’s option, Beneficiary may make such appearances, disburse such sums and take such action as it determines necessary Beneficiary deems necessary, in its sole discretion, to protect the Property or Beneficiary’s interestor Trustee’s respective interests herein, including but not limited to, disbursement of reasonable attorney’s fees entry upon the Property to make repairs and necessary repairs to the Security. b. perform environmental tests and studies. Any amounts disbursed by Beneficiary pursuant to this Section will become an indebtedness of Trustor secured by this Deed of Trust. Unless Trustor Paragraph 7 (including attorneys’ costs and Beneficiary agree to other terms of paymentexpenses), such amount will be payable upon notice from Beneficiary to Trustor requesting payment thereof, and will bear with interest of ten percent thereon at the “Default Rate” (10%defined in the Note) from the date of disbursement unless payment disbursement, shall become additional Indebtedness of interest at such rate would Grantor secured by the Loan Documents and shall be contrary to applicable law, due and payable on demand. Nothing contained in which event such amounts will bear interest at the highest rate permissible under applicable law. this Paragraph 7 shall require Beneficiary to insure incur any expense or take any action hereunder. c. In . Grantor shall not be authorized to enter into any ground lease of the event Property, without Beneficiary’s prior written approval. Grantor shall not, without Beneficiary’s prior written consent, modify, amend, surrender or terminate any Lease, which approval shall not be unreasonably withheld or delayed. All Leases of space in the Property shall be on the form of lease previously approved by Beneficiary with tenants and for a use acceptable to Beneficiary. All Leases of space in the Property executed or renewed after the date hereof must be approved by Beneficiary prior to the execution thereof by Grantor. Notwithstanding anything contained herein to the contrary, Grantor may enter into a proposed Lease (including the amendment, renewal or extension of an existing Lease (“a Renewal Lease”)) without the prior written consent of Beneficiary, provided such proposed Lease or Renewal Lease (i) provides for rental rates and terms comparable to existing local market rates and terms (taking into account the type and quality of the tenant) as of the date such Lease or Renewal Lease is executed by Grantor (unless, in the case of a Renewal Lease, the rent payable during such renewal, or a formula or other method to compute such rent, is provided for in the original Lease), (ii) is an arms-length transaction with a bona fide, independent third party tenant, (iii) is written on the standard form of lease previously approved by Beneficiary, (iv) is not for premises greater than or equal to ten percent (10%) of the gross leaseable area of the Property, (v) is not for a rental, or greater than or equal to ten percent (10%) of the total gross rental revenues of the Property; (vi) shall have an initial term of not less than three (3) years or greater than ten (10) years, (vii) is for the same use as the current use of the Property, (viii) shall not contain any options for renewal or expansion by the tenant thereunder at rental rates which are either below comparable market levels or less than the rental rates paid by the tenant during initial lease term; and (ix) shall be to a tenant which is experienced, creditworthy and reputable. If Beneficiary consents to any new Lease of space in the Property or the renewal of any existing Lease of space in the Property, at Beneficiary’s request, Grantor shall cause the tenant thereunder to execute a subordination and attornment agreement in form and substance satisfactory to Beneficiary contemporaneously with the execution of such Lease. Grantor expressly understands that Trustor fails to observe any and all new or perform any obligations proposed leases or Trustor Covenants under Renewal Leases are included in the definition of “Lease” or “Leases” as such terms may be used throughout this Deed of Trust, Trust or the Note, then Beneficiary may hold Trustor in default, treat the occurrence as an Event of Default pursuant to this Deed of Trust, and take any actions available under this Deed of Trust, or the Note, including, but not limited to, acceleration of any payments due or sale of the Security, as provided for hereafterother Loan Documents.

PROTECTION OF BENEFICIARY’S SECURITY. a. If Trustor Subject to the rights of Grantor under paragraph 15 hereof, if Grantor fails to perform or comply with any of the Trustor Covenants or any obligations covenants and agreements contained in this Deed of Trust, or the Note, if an Event of Default, as defined hereafter, occurs, Trust or if any action or proceeding is commenced which materially affects Beneficiary’s the Collateral or the interest in of Trustee or Beneficiary therein, or the Securitytitle thereto, then Beneficiary, at its option and upon notice to TrustorBeneficiary’s option, may make perform such appearancescovenants and agreements, disburse defend against and/or investigate such sums and action or proceeding, and/or take such other action as it determines Beneficiary reasonably deems necessary to protect Beneficiary’s interestits interests in the exercise of its judgment, including but not limited towithout limitation, disbursement advancing funds for the payment of reasonable attorney’s fees and necessary repairs taxes, levies or insurance costs with respect to the Security. b. Collateral or to protect the Collateral from waste, damage or abuse. Beneficiary shall be entitled to rely on an opinion of counsel as to the legality, validity and priority of any claim, lien, encumbrance, tax, assessment, charge and premium paid by it and shall be the sole reasonable judge of the amount necessary to be paid in satisfaction thereof. Any reasonable amounts or expenses disbursed or incurred by Beneficiary pursuant to this Section will paragraph 18, or to otherwise enforce any provisions of this Deed of Trust, to preserve any of the rights, powers or privileges of Beneficiary granted or created hereby, or otherwise in order to protect the Collateral from waste, damage, or abuse, including, without limitation, reasonable attorney’s fees (including fees and costs incurred in any appeal), with interest thereon as hereinafter stated, shall become an indebtedness of Trustor additional Obligations secured by this Deed of TrustTrust with same effect and priority as if disbursed on or before the date this Deed of Trust is recorded. Unless Trustor Grantor and Beneficiary agree in writing to other terms of paymentrepayment, such amount will amounts shall be due and payable upon ten days’ written notice from Beneficiary to Trustor requesting payment thereofBeneficiary, and will shall bear interest of ten percent (10%) from the date of disbursement at a rate of ten (10%) per annum, unless payment collection of interest at such rate would be contrary to applicable law, in which event such amounts will shall bear interest at the highest rate permissible which may be collected under applicable law. Beneficiary shall, at its option, be subrogated to insure the lien of any expense mortgage or take other lien discharged in whole or in part by the Obligations or by Beneficiary under the provisions hereof, and any action hereunder. c. In the event that Trustor fails to observe or perform any obligations or Trustor Covenants under such subrogation rights shall be additional and cumulative security for this Deed of Trust, . Nothing contained in this paragraph 18 shall require Beneficiary to incur any expense or the Note, then Beneficiary may hold Trustor in default, treat the occurrence as an Event of Default pursuant to this Deed of Trustdo any act hereunder, and take Beneficiary shall not be liable to Grantor for any actions available under damages or claims arising out of action taken by Beneficiary in accordance with the provisions of this Deed of Trust, or the Note, including, but not limited to, acceleration of any payments due or sale of the Security, as provided for hereafterparagraph 18.

PROTECTION OF BENEFICIARY’S SECURITY. a. If Trustor fails to perform the Trustor Covenants or any obligations covenants and agreements contained in this Deed of Trust, or the Note, if an Event of Default, as defined hereafter, occurs, or if any action or proceeding is commenced which materially affects Beneficiary’s 's interest in the SecurityProperty, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Beneficiary, Beneficiary at its option and option, upon notice to Trustor, may make such appearances, disburse such sums and take such action as it determines is necessary to protect Beneficiary’s 's interest, including including, but not limited to, disbursement of reasonable attorney’s attorneys' fees and necessary repairs entry upon the Property to the Security. b. make repairs. Any amounts disbursed by Beneficiary pursuant to this Section will Paragraph 8, or any other provision of this Deed of Trust, with interest thereon, shall become an additional indebtedness of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, such amount will amounts shall be payable upon notice from Beneficiary to Trustor requesting payment thereof, and will shall bear interest of ten percent (10%) from the date of disbursement at the Default Rate set forth in the Note, unless payment of interest at such rate would be contrary to applicable law, in which event such amounts will shall bear interest at the highest rate permissible under applicable law. Trustor recognizes that its failure to pay such sums when due will require Beneficiary to insure incur additional expense in servicing the loan secured hereby, in loss to the Beneficiary in meeting its other financial commitments, and that damages caused thereby would be extremely difficult and impractical to ascertain. Trustor agrees that the accrual of interest at the Default Rate on such sums is a reasonable estimate of the damage to Beneficiary in the event of Trustor's failure to pay such sums. Nothing contained in this Paragraph 8 shall require Beneficiary to incur any expense or take any action hereunder. c. In . Likewise, in the event that Trustor fails Trustee shall expend any amounts pursuant to observe or perform any obligations or Trustor Covenants under provision of this Deed of Trust, or the Note, then Beneficiary may hold Trustor in default, treat the occurrence as an Event of Default pursuant to such amounts with interest shall be repaid and become additional indebtedness secured by this Deed of Trust, and take any actions available under this Deed of Trust, or all in accordance with the Note, including, but not limited to, acceleration of any payments due or sale of the Security, as provided for hereafterforegoing.