CONSTRUCTION DEED OF TRUST - Laserfiche WebLink

(c) The commencement of any litigation affecting the property, any interest therein or the title thereto. 14. This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California. 15. A default under any deed of trust or mortgage senior to this Deed of Trust which could permit a foreclosure by the first mortgagee shall constitute a default hereunder, and the unpaid principal balance and interest, if any, on the HDG loan shall become immediately due and payable upon the taking of any action by the first mortgagee that, in the opinion of the Grantee or HUD, is or may be adverse to or impair the security interest of the Grantee. 16. Subject to paragraph 17, upon the default by Trustor in payment of any indebtedness secured hereby or in performance of the Agreements or this Deed of Trust, the Trustor shall be obligated to repay the HDG Loan and Beneficiary may, by action, suit or proceeding at law or in equity, sue for, and enforce payment of any and all amounts due by Trustor pursuant to the terms of the Promissory Note and /or sue to enforce the performance of the obligations of the Trustor under the Agreements, subject to the terms and conditions of the Agreements. 17. Notwithstanding anything to the contrary in this Deed of Trust or in any other instrument evidencing or securing the obligations of the undersigned under the Note or additional note(s), the holder of the Note or note(s) expressly agrees that there shall be no personal liability of the undersigned under the Note or note(s), under this Deed of Trust and under any other instrument given to evidence or secure the obligations of the undersigned under the Note or note(s). The liability of the undersigned shall be strictly and absolutely limited to the property conveyed by this Deed of Trust and the rents, profits, issues, products and proceeds thereof. In the event a default shall occur under the Note or notes(s) or with respect to the indebtedness evidenced by the Note or note(s), the holder thereof shall not seek any judgment for a deficiency against the undersigned or the legal representatives, successors or assigns of the undersigned, in any action to foreclose, to exercise a power of sale, to confirm any foreclosure or sale under power of sale, or to exercise any other rights or powers, under or by reason of this Deed of Trust or any other instrument evidencing or securing the obligations of the undersigned under the Note or note(s). 18. Trustor shall faithfully perform the covenants to be performed by Trustor, as the lessor under any present and future leases and rental agreements affecting all or any portion of the property, and neither do nor neglect to do, nor permit to be done, anything which may cause the termination of said leases and rental agreements, or any of them, or which may diminish or impair their value, or the rents provided for them, or the interest of Trustor or Beneficiary therein or thereunder. Trustor shall procure and deliver to Beneficiary at any time within thirty (30) days after notice and demand, estoppel letters or certificates from each lessee, tenant or occupant in possession of the property, as required by, and in form and substance satisfactory to, Beneficiary. Upon request, Beneficiary shall have the right of prior approval of the form and content of all leases, management contracts, and rental agreements used by Trustor for the property. c:HDGDT.EHI Page 8.