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9/25/09 <br />4. Subordination. This obligation secured by this City Deed of Trust shall be <br />subordinated to the Senior Loan, but the City's Affordability Covenants and Restrictions <br />shall remain in first place. <br />5. Prior Mortgages and Deeds of Trust; Charges; Liens. Trustor shall perform <br />all of Trustor's obligations under any mortgage, deed of trust or other security agreement <br />with a lien which has priority over this Instrument, including Trustor's covenants to make <br />payments when due (subject to an applicable notice and cure provisions). Trustor will pay <br />all taxes, assessments and other charges, fines and impositions attributable to the Security <br />which may attain a priority over this Deed of Trust, by Trustor making any payment, when <br />due, directly to the payee thereof. Trustor will promptly furnish to the Beneficiary all <br />notices of amounts due under this paragraph, and in the event Trustor makes payment <br />directly, Trustor will promptly discharge any lien which has priority over this Deed of Trust; <br />provided that Trustor will not be required to discharge the lien of the Deed of Trust securing <br />any senior lender or any other lien described in this paragraph so long as Trustor will agree <br />in writing to the payment of the obligation secured by such lien in a manner acceptable to <br />the Beneficiary, or will, in good faith, contest such lien by, or defend enforcement of such <br />lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture <br />of the Security or any part thereof. <br />6. Hazard Insurance. Trustor will keep the Security insured by such insurance <br />policies in such amounts and for such periods as called for in the Agreement. All insurance <br />policies and renewals thereof will include a standard mortgagee clause with standard <br />lender's endorsement in favor of the holder of any senior lender and the Beneficiary as their <br />interests may appear and in a form acceptable to the Beneficiary. The Beneficiary shall <br />have the right to hold, or cause its designated agent to hold, the policies and renewals <br />thereof, and Trustor shall promptly furnish to the Beneficiary, or its designated agent, the <br />original insurance policies or certificates of insurance, all renewal notices and all receipts of <br />paid premiums. In the event of loss, Trustor will give prompt notice to the insurance carrier <br />and the Beneficiary or its designated agent. The Beneficiary, or its designated agent, may <br />make proof of loss if not made promptly by Trustor. The Beneficiary shall receive 30 days <br />advance notice of cancellation of any insurance policies required under this Section. <br />Unless the Beneficiary and Trustor otherwise agree in writing, insurance proceeds, <br />subject to the rights of any senior lender, will be applied to restoration or repair of the <br />Security damaged, provided such restoration or repair is economically feasible and the <br />security of this City Deed of Trust is not thereby impaired. If such restoration or repair is <br />not economically feasible or if the security of this City Deed of Trust would be impaired, <br />again, subject to the rights of any senior lender, the insurance proceeds will be used to repay <br />the loan secured by this Deed of Trust, with the excess, if any, paid to Trustor. If the <br />Security is abandoned by Trustor, or if Trustor fails to respond to the Beneficiary, or its <br />designated agent within 30 days from the date notice is mailed by either of them to Trustor <br />that the insurance carrier offers to settle a claim for insurance benefits, the Beneficiary, or its <br />designated agent, is authorized to collect and apply the insurance proceeds at the <br />Beneficiary's option either to restoration or repair of the Security or to repay the loan. <br />3 <br />