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any lien or claim which in their judgment appears to or purports to affect the security of or to be superior to this Deed of Trust. The Borrower and /or the City shall pay on demand all sums so expended and all charges, expenses and attorney's fees incurred, with interest from the date of expenditure at the rate of ten percent (10 %) per annum or, if lesser, the maximum rate permitted by law. the Borrower and /or the City shall give the Lenders prompt written notice in writing of (i) the assertion of any claim, (ii) the filing of an action or proceeding, (iii) the occurrence of any damage to any of the Property, (iv) any condemnation and (v) any other material nonmonetary default. 5. IT IS AGREED THAT: 5.1 Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, and (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Lenders. The Lenders are authorized and empowered (but not required) to collect and receive any such sums and are authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Lenders shall determine at their option. The Lenders shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Lenders may be released to the Borrower and /or the City upon such conditions as the Lenders may impose for their disposition. Application of all or any part of the amounts collected and received by the Lenders or the release thereof shall not cure or waive any default under this Deed of Trust. 5.2 Bales and Encumbrances Prohibited. Neither the Borrower nor the City shall make any sale, assignment or conveyance, or transfer in any other form, nor any further pledge, encumbrance or mortgaging, of the Property, or any part thereof or of any of their interest therein, without the prior written consent of the Lenders. In the event the Agency receives a request for transfer approval, the Agency shall so notify MBIA. In the event that the Property becomes encumbered by mortgage(s) or deed(s) of trust other than this Deed of Trust, then a default under such other mortgage(s) or deed(s) of trust shall constitute a default under this Deed of Trust. 5.3 Sale or Forebearance. No sale of the Property, forebearances on the part of the Lenders or extension of the time CHFA 52P.RIDGE.VIEW.IST 01/06/90.Q02374 -7-