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fails to take a required action; (3) Trustor establishes to the reasonable satisfaction of Beneficiary <br />that there is no reasonable alternative to such remedial action which would result in less <br />impairment of Beneficiary's security hereunder; or (4) the action has been agreed to by <br />Beneficiary. <br />(e) The Trustor hereby acknowledges and agrees that: (1) this Article is <br />intended as the Beneficiary's written request for information (and the Trustor's response) <br />concerning the environmental condition of the Property as required by California Code of Civil <br />Procedure Section 726.5; and (2) each representation and warranty in this Deed of Trust or any <br />of the other City Loan Documents (together with any indemnity applicable to a breach of any <br />such representation and warranty) with respect to the environmental condition of the property is <br />intended by the Beneficiary and the Trustor to be an "environmental provision" for purposes of <br />California Code of Civil Procedure Section 736. <br />(f) In the event that any portion of the Property is determined to be <br />"environmentally impaired" (as that term is defined in California Code of Civil Procedure <br />Section 726.5(e)(3)) or to be an "affected parcel" (as that term is defined in California Code of <br />Civil Procedure Section 726.5(e)(1)), then, without otherwise limiting or in any way affecting the <br />Beneficiary's or the Trustee's rights and remedies under this Deed of Trust, the Beneficiary may <br />elect to exercise its rights under California Code of Civil Procedure Section 726.5(a) to: (1) <br />waive its lien on such environmentally impaired or affected portion of the Property; and (2) <br />exercise: (i) the rights and remedies of an unsecured creditor, including reduction of its claim <br />against the Trustor to judgment; and (ii) any other rights and remedies permitted by law. For <br />purposes of determining the Beneficiary's right to proceed as an unsecured creditor under <br />California Code of Civil Procedure Section 726.5(a), the Trustor will be deemed to have <br />willfully permitted or acquiesced in a release or threatened release of hazardous materials, within <br />the meaning of California Code of Civil Procedure Section 726.5(d)(1), if the release or <br />threatened release of hazardous materials was knowingly or negligently caused or contributed to <br />by any lessee, occupant, or user of any portion of the Property and the Trustor knew or in the <br />exercise of reasonable diligence should have known of the activity by such lessee, occupant, or <br />user which caused or contributed to the release or threatened release. All costs and expenses, <br />including (but not limited to) reasonable attorneys' fees, incurred by the Beneficiary in <br />connection with any action commenced under this paragraph, including any action required by <br />California Code of Civil Procedure Section 726.5(b) to determine the degree to which the <br />Property is environmentally impaired, plus interest thereon at the default rate specified in the <br />Loan Agreement until paid, will be added to the indebtedness secured by this Deed of Trust and <br />will be due and payable to the Beneficiary upon its demand made at any time following the <br />conclusion of such action. <br />ARTICLE 7: <br />EVENTS OF DEFAULT AND REMEDIES <br />Section 7.1 F,vents of Default. The following constitute events of default following <br />the expiration of any applicable notice and cure periods (each an "Event of Default"): (a) failure <br />to make any payment to be paid by Trustor under the City Loan Documents; (b) failure to <br />observe or perform any of Trustor's other covenants, agreements or obligations under the City <br />12 <br />1199\09\2723506.3 <br />Document Number: 2021-146160 Page: 13 of 25 <br />