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City as its interests may appear and in a form acceptable to City. City shall have the right to hold, <br />or cause its designated agent to hold, the policies and renewals thereof, and. Trustor shall promptly <br />furnish to City, or its designated agent, the original insurance policies or certificates of insurance, <br />all renewal notices and all receipts of paid premiums. In the event of loss, Trustor will give prompt <br />notice to the insurance carrier and City or its designated agent. City, or its designated agent, may <br />make proof of loss if not made promptly by Trustor. City shall receive thirty (30) days advance <br />notice of cancellation of any insurance policies required under this section. <br />(3) Unless otherwise permitted by City in writing, insurance proceeds, will be <br />applied to restoration or repair of the Security damaged. If permitted by City, the insurance <br />proceeds shall be used to repay any amounts due under the Regulatory Agreement, with the excess, <br />if any, paid to Trustor. If the Security is abandoned by Trustor, or if Trustor fails to respond to <br />City, or its designated agent, within thirty (30) days from the date notice is mailed by either of <br />them to Trustor that the insurance carrier offers to settle a claim for insurance benefits, City, or its <br />designated agent, is authorized to collect and apply the insurance proceeds at City's option either <br />to restoration or repair of the Security or to pay amounts due under Regulatory Agreement. <br />(4) If the Security is acquired by City, all right, title and interest of Trustor in <br />and to any insurance policy and in and to the proceeds thereof resulting from damage to the <br />Security prior to the sale or acquisition will pass to City to the extent of the sums secured by this <br />Deed of Trust immediately prior to such sale or acquisition, subject to the rights of the Approved <br />senior lienholder. <br />(b) During the course of any rehabilitation of the improvements located on the <br />Property, Trustor shall hire only licensed contractors who maintain the following forms of <br />insurance: <br />(1) Liability Insurance. Comprehensive general liability insurance against <br />liability for bodily injury to or death of any person or property damage arising out of an occurrence <br />on or about the Property. The limits of such insurance shall be not less than Two Million Dollars <br />($2,000,000) each occurrence, Pour Million Dollars ($4,000,000) annual aggregate, together with <br />Three Million Dollars ($3,000,000) excess liability coverage, or such other policy limits as City <br />may require in its reasonable discretion under the Land Donation Agreement. <br />(2) Worker's Compensation Insurance. Worker's compensation insurance <br />covering all persons employed in connection with any work on the Property. <br />Section 2.7 Preservation and Maintenance of Security. Trustor will keep the Security in <br />good repair and in a' neat, clean, and orderly condition and will not commit waste or permit <br />impairment or deterioration of the Security. If there arises a condition in contravention of this <br />Section, and if Trustor has not cured such condition within thirty (30) days after receiving a City <br />notice of such a condition, then in addition to any other rights available to City, City shall have the <br />right (but not the obligation) to perform all acts necessary to cure such condition, and to establish <br />or enforce a lien or other encumbrance against the Security to recover its cost of curing. <br />Section 2.8 Protection of City's Security. If Trustor fails to perform the covenants and <br />agreements contained in this Deed of Trust or if any action or proceeding is commenced which <br />ATTY/AGR/2025.084/920 SHASTA AFFORDABLE HOUSING LAND DONATION AGREEMENT <br />REV: 10-16-25 VR <br />Exhibit H - 5 <br />