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4.4 Escrow Deposits. At the Lenders' option and upon their demand, to pay to the Lenders each month on the day upon which monthly installments of interest any /or principal are due under the Note, such amount as the Lenders from time to time estimates as necessary to create and maintain a fund (the Fund) from which to pay, before the same become due, the next maturing taxes, assessments, levies, charges and insurance premiums on or against the Property. Any excess accumulated in the Fund over the amount required for such purposes shall be held for future use or applied to any indebtedness or obligation hereby secured, or refunded to Borrower, at the Lenders' option; any deficiency shall be made up by Borrower and /or the City on written demand of the Lenders. The Lenders shall place the amounts in the Fund in an interest bearing account and shall credit the interest earned on such amounts to the Fund semiannually; provided that upon the Fund's termination any interest amount due shall not be payable sooner than six months from the date of the last payment credited to the Fund. Amounts in the Fund shall be released to Borrower for application to or shall be applied by the Lenders to payment of such taxes, assessments, levies, charges and insurance premiums, even though subsequent owners of the Property may benefit thereby; provided, however, that in the event of any default under this Deed of Trust, all or any part of the Fund may be applied to any indebtedness or obligation hereby secured, in such order and manner as the Lenders may determine at their option. Borrower and the City agrees that any conveyance of their interest in the Property shall have the effect of transferring to the grantee all of Borrower's and /or the City's interest in and all their rights to the Fund without further act on the part of the Borrower and /or the City, and that in refunding all or any part of the Fund, the Lenders may deal with whomever is represented to be the owner of the Property. The collection by the Lenders, pursuant to the terms of this paragraph, of monthly installments to cover taxes, assessments, levies, charges and insurance premiums may be suspended or terminated by the Lenders at any time upon written notice sent to the owner of the Property, such collection being solely for the added protection and benefit of the Lenders and entailing no responsibility on the Lenders' part other than to apply sums actually received by it and to pay interest on sums held by it as provided in the Deed of Trust. 4.5 Payment and Discharge of Liens. The Borrower and the City shall pay, when due, all claims of every kind and nature which might or could become a lien on the Property or any part thereof and shall not at any time, without the prior written consent of Lenders, create or allow to exist any lien on the Property or any part thereof of any kind or nature other than this Deed of Trust; provided, however, that the following are excepted from this prohibition: (a) liens for taxes and assessments which are not delinquent although by law are given the status of a lien, and (b) such of the above claims as are, and only during the time CHFA 52P.RIDGE.VIEW.1ST 01/06/90.Q02374 -5-