THE PREPAYMENT PRIVILEGE CONTAINED THEREIN.
8.8
CONTEST OF CERTAIN CLAIMS. GRANTOR SHALL NOT BE IN DEFAULT FOR
FAILURE TO PAY OR DISCHARGE ANY IMPOSITION OR MECHANIC'S OR MATERIALMAN'S LIEN
ASSERTED AGAINST THE MORTGAGED PROPERTY IF, AND SO LONG AS, (A) GRANTOR SHALL
HAVE NOTIFIED BENEFICIARY OF SAME WITHIN FIVE (5) DAYS OF OBTAINING KNOWLEDGE
THEREOF; (B) GRANTOR SHALL DILIGENTLY AND IN GOOD FAITH CONTEST THE SAME BY
APPROPRIATE LEGAL PROCEEDINGS WHICH SHALL OPERATE TO PREVENT THE ENFORCEMENT OR
COLLECTION OF THE SAME AND THE SALE OF THE MORTGAGED PROPERTY OR ANY PART
THEREOF, TO SATISFY THE SAME; (C) GRANTOR SHALL HAVE FURNISHED TO BENEFICIARY A
CASH DEPOSIT, OR AN INDEMNITY BOND SATISFACTORY TO BENEFICIARY WITH A SURETY
SATISFACTORY TO BENEFICIARY, IN THE AMOUNT OF THE IMPOSITION OR MECHANIC'S OR
MATERIALMAN'S LIEN CLAIM, PLUS A REASONABLE ADDITIONAL SUM TO PAY ALL COSTS,
INTEREST AND PENALTIES THAT MAY BE IMPOSED OR INCURRED IN CONNECTION THEREWITH,
TO ASSURE PAYMENT OF THE MATTERS UNDER CONTEST AND TO PREVENT ANY SALE OR
FORFEITURE OF THE MORTGAGED PROPERTY OR ANY PART THEREOF; (D) GRANTOR SHALL
PROMPTLY UPON FINAL DETERMINATION THEREOF PAY THE AMOUNT OF ANY SUCH IMPOSITION
OR CLAIM SO DETERMINED, TOGETHER WITH ALL COSTS, INTEREST AND PENALTIES WHICH
MAY BE PAYABLE IN CONNECTION THEREWITH; (E) THE FAILURE TO PAY THE IMPOSITION OR
MECHANIC'S OR MATERIALMAN'S LIEN CLAIM DOES NOT CONSTITUTE A DEFAULT UNDER ANY
OTHER DEED OF TRUST, MORTGAGE OR SECURITY INTEREST COVERING OR AFFECTING ANY
PART OF THE MORTGAGED PROPERTY; AND (F) NOTWITHSTANDING THE FOREGOING, GRANTOR
SHALL IMMEDIATELY UPON REQUEST OF BENEFICIARY PAY (AND IF GRANTOR SHALL FAIL SO
TO DO, BENEFICIARY MAY, BUT SHALL NOT BE
25
REQUIRED TO, PAY OR CAUSE TO BE DISCHARGED OR BONDED AGAINST) ANY SUCH
IMPOSITION OR CLAIM NOTWITHSTANDING SUCH CONTEST, IF IN THE REASONABLE OPINION
OF BENEFICIARY THE MORTGAGED PROPERTY SHALL BE IN JEOPARDY OR IN DANGER OF BEING
FORFEITED OR FORECLOSED. BENEFICIARY MAY PAY OVER ANY SUCH CASH DEPOSIT OR PART
THEREOF TO THE CLAIMANT ENTITLED THERETO AT ANY TIME WHEN, IN THE JUDGMENT OF
BENEFICIARY, THE ENTITLEMENT OF SUCH CLAIMANT IS ESTABLISHED.
ARTICLE IX
PARTIAL RELEASES.
Grantor shall be entitled to partial releases of the lien of the Deed of Trust
on the following terms and conditions:
9.1
RELEASES WILL BE GRANTED FOR EACH TRACT OF THE LAND DESCRIBED IN
EXHIBIT "A". AT SUCH TIME AS GRANTOR DETERMINES TO DEVELOP ANY TRACT OF THE
LAND, GRANTOR SHALL NOTIFY BENEFICIARY AND TO OBTAIN A RELEASE OF EACH SUCH
TRACT AND TENDER BENEFICIARY AN AMOUNT EQUAL TO THE OUTSTANDING PRINCIPAL OF THE
NOTE MULTIPLIED BY THE RATIO OF THE BUILDABLE SQUARE FEET OF THE PARCEL TO BE
RELEASED TO THE TOTAL BUILDABLE SQUARE FEET OF THE TOTAL LAND (AUTHORIZED AT THE
TIME OF THE RELEASE) WHICH REMAINS AS SECURITY UNDER THIS DEED OF TRUST (THE
"RELEASE PRICE").
9.2
TO OBTAIN A PARTIAL RELEASE OF ANY TRACT OF THE PROPERTY FROM THIS
DEED OF TRUST, THE RELEASE PRICE SHALL BE PAID IN CASH BY GRANTOR. ALL PAYMENTS