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equal to one hundred five percent(105%)of the original interest rate in the Promissory Note,whether or not Beneficiary <br /> believes itself to be insecure. A"sale or transfer"means the conveyance of real property or any right,title or interest therein, <br /> whether legal or equitable,whether voluntary or involuntary,by outright sale,deed,installment sale contract,land contract, <br /> contract for deed,leasehold interest with a term greater than one(1)year,lease-option contract,or any other method of <br /> conveyance of real property interests. If any Grantor is a limited partnership,general partnership,limited liability company, <br /> or corporation,transfer also includes any change in ownership of more than twenty-five percent(25%)of the voting stock or <br /> ownership or membership interests of Grantor,If Grantor or prospective transferee applies to Beneficiary for consent to a <br /> transfer, Beneficiary may require such information concerning the prospective transferee as Beneficiary deems to be <br /> necessary and appropriate. Beneficiary may also condition such approval upon the increase in the interest chargeable to and <br /> payable by Grantor to a rate not more than one hundred five percent (105%)of the original interest rate set forth in the <br /> original Promissory Note. The consent to the sale or assignment shall not relieve Grantor from liability under the terms and <br /> provisions of the promissory Note or this Deed of Trust,unless Beneficiary shall specifically agree to the release of the <br /> Grantor. <br /> 8. Taxes and Liens: <br /> 8.1 Payment: Grantor shall pay when due before they become delinquent all taxes and assessments levied <br /> against or on account of the Property and any personal property used in conjunction therewith,and shall pay when due all <br /> claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property <br /> interest of Beneficiaryunder this Deed of Trust,except for the lien of <br /> free of anyliens havingpriorityover ore equal to theP <br /> q <br /> taxes and assessments not due,except for any prior indebtedness on the subject Property,and except as otherwise provided in <br /> this Deed of Trust. <br /> 8.2 Right to Contest: Grantor may withhold payment of any tax,assessment or claim in connection with a <br /> good faith dispute over the obligation to pay,so long as Beneficiary's interest in the Property is not jeopardized. If a lien <br /> arises or is filed as a result of nonpayment,Grantor shall within fifteen(15)days after the lien arises or,if a lien is filed, <br /> within fifteen(15)days after Grantor has notice of the filing,secure the discharge of the lien or deposit with Beneficiary cash <br /> or a sufficient corporate surety bond or other security satisfactory to Beneficiary in an amount sufficient to discharge the lien <br /> plus any costs,attorneys'fees,or other charges that could accrue as a result of a foreclosure or sale under the lien. <br /> 8.3 Evidence of Payment: Grantor shall upon demand furnish to Beneficiary evidence of payment of the <br /> taxes or assessments and shall authorize the appropriate county official to deliver to Beneficiary at any time a written <br /> statement of the taxes and assessments against the Property. <br /> 9. Expenditure by Beneficiary: If Grantor fails to comply with any provision of this Deed of Trust,including the <br /> obligation to maintain any prior Indebtedness in good standing,or if any action or proceeding is commenced that would <br /> materially affect Beneficiary's interest in the Property,Beneficiary may at its option on Grantor's behalf take the required <br /> action and any amount that it expends in so doing shall be added to the Indebtedness and bear interest at the rate set forth in <br /> the Promissory Note plus an additional five percent(5%). Amounts so added shall be payable on demand with interest from <br /> the date of expenditure. The rights provided for in this section shall be in addition to any other rights or any remedies to <br /> which Beneficiary may be entitled on account of the default. By taking the required action,Beneficiary shall not cure the <br /> default so as to bar it from any remedy that it otherwise would have had. <br /> 10. Condemnation: If all or any part of the Property is condemned,Beneficiary may at its election require that all or <br /> any portion of the net proceeds of the award be applied to the Indebtedness. The net proceeds of the award shall mean the <br /> award after payment of all reasonable costs,expenses and attorneys'fees necessarily paid or incurred by Grantor,Beneficiary <br /> or Trustee in connection with the condemnation. If any proceedings in condemnation are filed,Grantor shall promptly notify <br /> Beneficiary in writing and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the <br /> award. <br /> 11. State of Title: Grantor warrants that it holds merchantable title to the Property in fee simple free of all <br /> encumbrances other than those set forth in any policy of title insurance issued in favor of Beneficiary in connection with this <br /> Deed of Trust,acceptable to Beneficiary. <br /> Page 3 <br />