Trustor Covenants and Warranties. Trustor hereby covenants with and warrants to the Trustee and Beneficiary that: (a) at the execution and delivery hereof it is the owner of a valid fee estate in the Fee Parcels, of a valid leasehold interest in the Leasehold Parcels, and of a valid right way easement interest in the BLM Parcels, and that it is the owner or lessee of the other Subject Property, that the Subject Property is free from all encumbrances whatsoever other than: (i) any lien expressly provided for or permitted by the terms of the Power Purchase Agreement, (ii) liens for taxes not yet due or for taxes being contested in good faith by appropriate proceedings so long as such proceedings do not involve a material risk of the sale, forfeiture, loss or restriction on the use of the Subject Property or any part thereof; (iii) suppliers’, vendors’, mechanics’, xxxxxxx’x, repairman’s, employees’ or other like liens arising in the ordinary course of business for work or service performed or materials furnished in connection with the Subject Property for amounts the payment of which is either not yet delinquent or is being contested in good faith by appropriate proceedings so long as such proceedings do not involve a material risk of the sale, forfeiture, loss or restriction on use of the Subject Property or any part thereof, and (iv) easements, rights of way, use rights, exceptions, encroachments, reservations, restrictions, conditions or limitations, provided that in each case the same do not interfere with or impair the operation or use of the Subject Property or any rights or interests therein as contemplated by the Power Purchase Agreement (collectively, the “Permitted Encumbrances”); (b) each of the Ground Leases and the BLM Grants is in full force and effect and has not been modified or terminated and that Trustor is not in default under any of the Ground Leases or BLM Grants; (c) Trustor has good and lawful right to sell, mortgage and convey the Subject Property; and (d) Trustor and its successors and assigns will forever warrant and defend the Subject Property against all claims and demands whatsoever. To protect the security of this Deed of Trust, Trustor agrees with the Trustee and Beneficiary as follows:
