THE EVENT THAT
ANY TENANT SHALL BE JOINED AS A PARTY DEFENDANT IN ANY ACTION TO FORECLOSE THE
DEED OF TRUST (AS DEFINED BELOW), AND SHALL HAVE BEEN BARRED AND FORECLOSED
THEREBY OF ALL RIGHT, TITLE, INTEREST, AND EQUITY OF REDEMPTION IN THE PROPERTY)
WITH RESPECT TO THE LEASES OR THE RENTS UNDER OR BY REASON OF THIS ASSIGNMENT.
THIS ASSIGNMENT SHALL NOT OPERATE TO PLACE RESPONSIBILITY FOR THE CONTROL, CARE,
MAINTENANCE, OR REPAIR OF THE PROPERTY UPON ASSIGNEE OR TO MAKE ASSIGNEE
RESPONSIBLE OR LIABLE FOR ANY WASTE COMMITTED ON THE PROPERTY BY ANY TENANT OR
OTHER PERSON, FOR ANY DANGEROUS OR DEFECTIVE CONDITION OF THE PROPERTY, OR FOR
THE ACTS OR OMISSIONS OF ASSIGNOR OR ANY TENANT OR OTHER PERSON IN THE
MANAGEMENT, UPKEEP, REPAIR, OR CONTROL OF THE PROPERTY.
Assignment of Leases and Rents (Deed of Trust)
2
2.
ASSIGNEE'S APPLICATION OF RENTS.
SUBJECT TO THE PROVISIONS
OF PARAGRAPH 3 BELOW GRANTING THE ASSIGNOR A REVOCABLE, LIMITED LICENSE, THE
ASSIGNEE HAS THE RIGHT, POWER, AND AUTHORITY TO USE AND APPLY ANY RENTS RECEIVED
HEREUNDER AS ASSIGNEE MAY IN ITS SOLE AND ABSOLUTE DISCRETION DEEM ADVISABLE
(A) FOR THE PAYMENT OF ANY AND ALL COSTS AND EXPENSES INCURRED IN CONNECTION
WITH ENFORCING OR DEFENDING THE TERMS OF THIS ASSIGNMENT, OR THE RIGHTS OF THE
ASSIGNEE HEREUNDER, AND COLLECTING ANY RENTS AND (B) FOR THE OPERATION AND
MAINTENANCE OF THE PROPERTY AND THE PAYMENT OF ALL COSTS AND EXPENSES IN
CONNECTION THEREWITH INCLUDING, WITHOUT LIMITATION, THE PAYMENT OF (I) RENTALS
AND OTHER CHARGES PAYABLE BY THE ASSIGNOR UNDER ANY LEASE AFFECTING THE
PROPERTY, (II) INTEREST, PRINCIPAL, OR OTHER AMOUNTS WITH RESPECT TO ANY AND ALL
LOANS SECURED BY DEEDS OF TRUST ON THE PROPERTY, INCLUDING, WITHOUT LIMITATION,
THAT CERTAIN DEED OF TRUST, SECURITY AGREEMENT AND UCC FINANCING STATEMENT FOR
FIXTURE FILING (AS AMENDED, RESTATED OR SUPPLEMENTED, THE "DEED OF TRUST"),
DATED OF EVEN DATE HEREWITH, EXECUTED BY THE ASSIGNOR TO PRLAP, INC., TRUSTEE,
FOR THE BENEFIT OF THE ASSIGNEE, COVERING THE PROPERTY, (III) ELECTRICITY,
TELEPHONE, WATER, AND OTHER UTILITY COSTS, TAXES, ASSESSMENTS, STANDBY FEES,
WATER CHARGES, AND SEWER RENTS AND OTHER UTILITY AND GOVERNMENTAL CHARGES
LEVIED, ASSESSED, OR IMPOSED AGAINST THE PROPERTY OR ANY PART THEREOF,
(IV) INSURANCE PREMIUMS, (V) COSTS AND EXPENSES WITH RESPECT TO ANY LITIGATION
AFFECTING THE PROPERTY, THE LEASES, OR THE RENTS, (VI) WAGES AND SALARIES OF
EMPLOYEES, COMMISSIONS OF AGENTS, AND REASONABLE ATTORNEYS' FEES, AND (VII) ALL
OTHER CARRYING COSTS, FEES, CHARGES, AND EXPENSES WHATSOEVER RELATING TO THE
PROPERTY.
AFTER THE PAYMENT OF ALL SUCH COSTS AND EXPENSES AND AFTER THE
ASSIGNEE SHALL HAVE SET UP SUCH RESERVES AS IT, IN ITS SOLE DISCRETION, SHALL
DEEM NECESSARY FOR THE PROPER MANAGEMENT OF THE PROPERTY, THE ASSIGNEE SHALL
APPLY ALL REMAINING RENTS COLLECTED AND RECEIVED BY IT TO THE REDUCTION OF THE
IT TO THE REDUCTION OF THE OBLIGATIONS.
EXERCISE OR NONEXERCISE BY THE ASSIGNEE
OF THE RIGHTS GRANTED IN THIS ASSIGNMENT, OR COLLECTION AND APPLICATION OF
RENTS, BY THE ASSIGNEE OR ITS AGENT