SUBSURFACE OF THE LAND,
REGARDLESS OF THE DEPTH THEREOF OR THE METHOD OF MINING OR EXTRACTION THEREOF.
SECTION 3.6.
PAYMENT FOR LABOR AND MATERIALS.
(A)
SUBJECT TO THE
PROVISIONS OF SECTION 5.2.2 OF THE LOAN AGREEMENT AND SECTION 3.6(B) BELOW,
TRUSTOR WILL PROMPTLY PAY WHEN DUE ALL BILLS AND COSTS FOR LABOR, MATERIALS, AND
SPECIFICALLY FABRICATED MATERIALS ("LABOR AND MATERIAL COSTS") INCURRED IN
CONNECTION WITH THE PROPERTY AND NEVER PERMIT TO EXIST BEYOND THE DUE DATE
THEREOF IN RESPECT OF THE PROPERTY OR ANY PART THEREOF ANY LIEN OR SECURITY
INTEREST, EVEN THOUGH INFERIOR TO THE LIENS AND THE SECURITY INTERESTS HEREOF,
AND IN ANY EVENT NEVER PERMIT TO BE CREATED OR EXIST IN RESPECT OF THE PROPERTY
OR ANY PART THEREOF ANY OTHER OR ADDITIONAL LIEN OR SECURITY INTEREST OTHER THAN
THE LIENS OR SECURITY INTERESTS HEREOF EXCEPT FOR THE PERMITTED ENCUMBRANCES.
TRUSTOR SHALL RECORD (AND CAUSE ALL OF THOSE CLAIMING BY, THROUGH OR UNDER
TRUSTOR, TO RECORD) NOTICES OF NO-RESPONSIBILITY AND TAKE (AND CAUSE TO BE
TAKEN) SUCH FURTHER MEASURES AS ARE REQUIRED UNDER NRS§§ 108.234, 2403 AND 2407
TO PREVENT LIENS FROM ATTACHING TO THE PROPERTY AS A RESULT OF ANY LABOR
PERFORMED AT OR MATERIALS SUPPLIED TO THE PROPERTY.
(B)
AFTER PRIOR WRITTEN NOTICE TO BENEFICIARY, TRUSTOR, AT ITS OWN
EXPENSE, MAY CONTEST BY APPROPRIATE LEGAL PROCEEDING, PROMPTLY INITIATED AND
CONDUCTED IN GOOD FAITH AND WITH DUE DILIGENCE, THE AMOUNT OR VALIDITY OR
APPLICATION IN WHOLE OR IN PART OF ANY OF THE LABOR AND MATERIAL COSTS;
PROVIDED, THAT (I) NO EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING UNDER THE
LOAN AGREEMENT, THE NOTE, THIS SECURITY INSTRUMENT OR ANY OF THE OTHER LOAN
DOCUMENTS, (II) TRUSTOR IS PERMITTED TO DO SO UNDER THE PROVISIONS OF ANY OTHER
MORTGAGE, DEED OF TRUST OR DEED TO SECURE DEBT AFFECTING THE PROPERTY, (III)
SUCH PROCEEDING SHALL SUSPEND THE COLLECTION OF THE LABOR AND MATERIAL COSTS
FROM TRUSTOR AND FROM THE PROPERTY OR TRUSTOR SHALL HAVE PAID ALL OF THE LABOR
AND MATERIAL COSTS UNDER PROTEST, (IV) SUCH PROCEEDING SHALL BE PERMITTED UNDER
AND BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF ANY OTHER INSTRUMENT TO
WHICH TRUSTOR IS SUBJECT AND SHALL NOT CONSTITUTE A DEFAULT THEREUNDER, (V)
NEITHER THE PROPERTY NOR ANY PART THEREOF OR INTEREST THEREIN WILL BE IN DANGER
OF BEING SOLD, FORFEITED, TERMINATED, CANCELED OR LOST, AND (VI) TRUSTOR SHALL
HAVE FURNISHED THE SECURITY AS MAY BE REQUIRED IN THE PROCEEDING, OR AS MAY BE
REASONABLY REQUESTED BY BENEFICIARY, TO INSURE THE PAYMENT OF ANY CONTESTED
LABOR AND MATERIAL COSTS, TOGETHER WITH ALL INTEREST AND PENALTIES THEREON.
SECTION 3.7.
PERFORMANCE OF OTHER AGREEMENTS.
TRUSTOR SHALL OBSERVE
AND PERFORM EACH AND EVERY TERM, COVENANT AND PROVISION TO BE OBSERVED OR
PERFORMED BY TRUSTOR PURSUANT TO THE LOAN AGREEMENT, ANY OTHER LOAN DOCUMENT AND
ANY OTHER AGREEMENT OR RECORDED INSTRUMENT AFFECTING OR PERTAINING TO THE
PROPERTY AND ANY AMENDMENTS, MODIFICATIONS OR CHANGES THERETO.
8
SECTION 3.8.
CHANGE OF NAME, IDENTITY, STRUCTURE OR LOCATION;
SUBJECTION TO OTHER