ITS LIEN AGAINST (A) ANY PARCEL OF "REAL
PROPERTY SECURITY" THAT IS "ENVIRONMENTALLY IMPAIRED" (AS SUCH TERM IS DEFINED
IN CALIFORNIA CODE OF CIVIL PROCEDURE §726.5(E)(3)), OR IS AN "AFFECTED PARCEL"
(AS SUCH TERM IS DEFINED IN CALIFORNIA CODE CIVIL PROCEDURE §726.5(E)(1)), AND
(B) ALL OR ANY PORTION OF THE PERSONAL PROPERTY ATTACHED TO SUCH PARCELS AND
(II) EXERCISE (A) THE RIGHTS AND REMEDIES OF AN UNSECURED CREDITOR INCLUDING
REDUCTION OF ITS CLAIM AGAINST BORROWER TO JUDGMENT AND (B) ANY OTHER RIGHTS AND
REMEDIES PERMITTED BY LAW.
AS BETWEEN LENDER AND BORROWER, FOR PURPOSES OF
CALIFORNIA CODE OF CIVIL PROCEDURE §726.5, BORROWER SHALL HAVE THE BURDEN OF
PROVING THAT (1) THE RELEASE OR THREATENED RELEASE WAS NOT (X) KNOWINGLY OR
NEGLIGENTLY CAUSED OR CONTRIBUTED TO, OR (Y) KNOWINGLY OR WILLFULLY
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PERMITTED OR ACQUIESCED TO, BY BORROWER OR ANY RELATED PARTY (AS SUCH TERM IS
DEFINED IN CALIFORNIA CODE OF CIVIL PROCEDURE §726.5(E)(6)), OR ANY AFFILIATE OR
AGENT OF BORROWER OR ANY RELATED PARTY, AND (2) IN CONJUNCTION WITH THE MAKING,
RENEWAL OR MODIFICATION OF THE DEBT, (X) NEITHER BORROWER, ANY RELATED PARTY NOR
ANY AFFILIATE OR AGENT OF BORROWER OR ANY RELATED PARTY HAD ACTUAL KNOWLEDGE OR
NOTICE OF THE RELEASE OR THREATENED RELEASE OF ANY HAZARDOUS MATERIALS, OR (Y)
IF SUCH A PERSON HAD KNOWLEDGE OR NOTICE OF THE RELEASE OR THREATENED RELEASE,
BORROWER MADE WRITTEN DISCLOSURE THEREOF TO LENDER AFTER LENDER'S WRITTEN
REQUEST FOR INFORMATION CONCERNING THE ENVIRONMENTAL CONDITION OF THE REAL
PROPERTY SECURITY, OR (Z) LENDER OTHERWISE OBTAINED ACTUAL KNOWLEDGE THEREOF
PRIOR TO THE MAKING, RENEWAL OR MODIFICATION OF THE DEBT.
(I)
RECONVEYANCE UPON PAYMENT OF DEBT.
IN THE EVENT THAT BORROWER
SHALL CAUSE TO BE PAID THE ENTIRE DEBT AND PERFORM IN FULL ALL OF ITS
OBLIGATIONS UNDER THE LOAN DOCUMENTS, LENDER SHALL RELEASE AND SHALL CAUSE
TRUSTEE TO RELEASE THE PROPERTY FROM THE LIEN OF THIS SECURITY INSTRUMENT AND TO
RECONVEY (WITHOUT WARRANTY BY OR RECOURSE AGAINST TRUSTEE OR LENDER) THE
PROPERTY TO BORROWER.
UPON TRUSTEE'S RECEIPT OF LENDER'S REQUEST FOR
RECONVEYANCE, TRUSTEE SHALL RECONVEY, WITHOUT WARRANTY, THE PROPERTY OR THAT
PORTION HELD.
WHEN THE PROPERTY HAS BEEN FULLY RECONVEYED, THE LAST
RECONVEYANCE WILL OPERATE AS A REASSIGNMENT OF ALL FUTURE RENTS TO THE PERSON
LEGALLY ENTITLED.
(J)
ENVIRONMENTAL ADDENDUM.
(I)
LENDER SHALL HAVE THE RIGHT, BUT NOT THE OBLIGATION, TO ENTER
UPON THE PROPERTY, FROM TIME TO TIME UPON PRIOR REASONABLE NOTICE, AND IN ITS
SOLE AND ABSOLUTE DISCRETION, TO CONDUCT INSPECTIONS OF THE PROPERTY AND THE
ACTIVITIES CONDUCTED THEREON TO DETERMINE THE COMPLIANCE WITH ALL ENVIRONMENTAL
STATUTES, THE PRESENCE OF HAZARDOUS MATERIALS AND THE EXISTENCE OF ANY POTENTIAL
DAMAGES AS A RESULT OF THE CONDITION OF THE PROPERTY.
IN FURTHERANCE THEREOF,
BORROWER HEREBY GRANTS TO LENDER AND ITS AGENTS, EMPLOYEES AND QUALIFIED
CONSULTANTS AND CONTRACTORS, THE RIGHT TO ENTER UPON THE PROPERTY AND TO PERFORM
SUCH TESTS ON THE PROPERTY (INCLUDING INVASIVE TESTS) AS ARE REASONABLY
NECESSARY.
LENDER SHALL CONDUCT SUCH INSPECTIONS AND TESTS AT REASONABLE TIMES,
SHALL USE ITS BEST