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they are, being contested by Borrower in good faith and by
<br />appropriate legal proceedings. The Borrower and the City shall
<br />post security for the payment of these contested claims as may be
<br />requested by the Lenders.
<br />4.6 Rights of Lenders to Remedy Defaults. If the
<br />Borrower and /or the City defaults in payment of any tax,
<br />assessment, lien, claim, insurance premium, or any other proper
<br />charge, in whole or in part, or defaults in the performance of any
<br />of the Secured Obligations, the Lenders at any time and from time
<br />to time, with or without notice to or demand upon the Borrower
<br />and /or the City, may make such payments or perform any such acts
<br />required of the Borrower and /or the City, to such extent and in
<br />any form or manner deemed expedient by the Lenders, and pay any
<br />other sums, expenses and charges, including attorney's fees,
<br />necessary to protect the Property and the lien of this Deed of
<br />Trust, without incurring any obligation so to do or releasing the
<br />Borrower and /or the City from any obligations and without waiving
<br />or curing any default. The Lenders shall be the sole judge of the
<br />validity, priority, and amount of any such tax, assessment, lien,
<br />premium, claim or charge so paid by it and the necessity for the
<br />performance by the Lenders of any such obligation which the
<br />Borrower and /or the City was required but failed to perform. The
<br />Lenders, at their option, shall be subrogated to any tax,
<br />assessment, lien, premium, claim or charge which it has paid under
<br />these provisions and any such subrogation rights shall be
<br />additional and cumulative security to those set forth in the
<br />Secured Obligations.
<br />4.7 Renavment to the Lenders. Upon payment of any tax,
<br />assessment, lien, claim, insurance premium or other charge which
<br />the Borrower and /or the City fails to pay or upon either Lender's
<br />performance of any obligation which the Borrower and /or the City
<br />fails to perform, all as set forth in paragraph 4.6 above, the
<br />amount so paid or the cost of performing any such obligation,
<br />together with other sums paid or incurred by the Lenders, or
<br />either of them, including charges, expenses and attorney's fees
<br />relating to or growing out of such default, with interest thereon
<br />from date of payment at the rate of ten percent (10 %) per annum
<br />or, if lesser, the maximum rate permitted by law, shall be paid by
<br />the Borrower and /or the City to the Lenders upon written demand.
<br />The aggregate of all such amounts, including interest, shall be
<br />secured by the lien of this Deed of Trust.
<br />4.8 Defense of Actions and Payment of Costs. Borrower
<br />shall appear in and defend all actions and proceedings purporting
<br />to affect the Property or any right or power of either of the
<br />Lenders or Trustee hereunder, provided that the Lenders and
<br />Trustee, or either of them, may appear in and defend any such
<br />action or proceeding and the Lenders are authorized to pay,
<br />purchase or compromise on behalf of the Borrower and /or the City
<br />CHFA 52P.RIDGE.VIEW.IST
<br />01/06/90.Q02374 -6-
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