|
201400017
<br />9. DUE ON SALE OR ENCUMBRANCE. Beneficiary may, at its option, declare the entire balance of the
<br />Secured Debt to be immediately due and payable upon the creation of, transfer or sale of all or any part of the
<br />Property. This right is subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. This
<br />covenant shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this
<br />Security Instrument is released.
<br />10. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Trustor will keep the Property in good
<br />condition and make all repairs that are reasonably necessary. Trustor shall not commit or allow any waste,
<br />impairment, or deterioration of the Property. Trustor will keep the Property free of noxious weeds and
<br />grasses. Trustor agrees that the nature of the occupancy and use will not substantially change without
<br />Beneficiary's prior written consent. Trustor will not permit any change in any license, restrictive covenant or
<br />easement without Beneficiary's prior written consent. Trustor will notify Beneficiary of all demands,
<br />proceedings, claims, and actions against Trustor, and of any loss or damage to the Property.
<br />Beneficiary or Beneficiary's agents may, at Beneficiary's option, enter the Property at any reasonable time for
<br />the purpose of inspecting the Property. Beneficiary shall give Trustor notice at the time of or before an
<br />inspection specifying a reasonable purpose for the inspection. Any inspection of the Property shall be entirely
<br />for Beneficiary's benefit and Trustor will in no way rely on Beneficiary's inspection.
<br />11. AUTHORITY TO PERFORM. If Trustor fails to perform any duty or any of the covenants contained in
<br />this Security Instrument, Beneficiary may, without notice, perform or cause them to be performed. Trustor
<br />appoints Beneficiary as attorney in fact to sign Trustor's name or pay any amount necessary for performance.
<br />Beneficiary's right to perform for Trustor shall not create an obligation to perform, and Beneficiary's failure
<br />to perform will not preclude Beneficiary from exercising any of Beneficiary's other rights under the law or
<br />this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable
<br />manner, Beneficiary may take all steps necessary to protect Beneficiary's security interest in the Property,
<br />including completion of the construction.
<br />12. ASSIGNMENT OF LEASES AND RENTS. Trustor irrevocably assigns, grants and conveys, to Trustee, in
<br />trust for the benefit of Beneficiary as additional security all the right, title and interest in the following (all
<br />referred to as Property): existing or future leases, subleases, licenses, guaranties and any other written or
<br />verbal agreements for the use and occupancy of the Property, including any extensions, renewals,
<br />modifications or replacements (all referred to as Leases); and rents, issues and profits (all referred to as
<br />Rents). In the event any item listed as Leases or Rents is determined to be personal property, this Assignment
<br />will also be regarded as a security agreement. Trustor will promptly provide Beneficiary with copies of the
<br />Leases and will certify these Leases are true and correct copies. The existing Leases will be provided on
<br />execution of the Assignment, and all future Leases and any other information with respect to these Leases will
<br />be provided immediately after they are executed. Trustor may collect, receive, enjoy and use the Rents so
<br />long as Trustor is not in default.
<br />Upon default, Trustor will receive any Rents in trust for Beneficiary and will not commingle the Rents with
<br />any other funds. Trustor agrees that this Security Instrument is immediately effective between Trustor and
<br />Beneficiary and effective as to third parties on the recording of this Assignment. As long as this Assignment
<br />is in effect, Trustor warrants and represents that no default exists under the Leases, and the parties subject to
<br />the Leases have not violated any applicable law on leases, licenses and landlords and tenants.
<br />13. LEASEHOLDS; CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. Trustor agrees to comply
<br />with the provisions of any lease if this Security Instrument is on a leasehold. If the Property includes a unit in
<br />a condominium or a planned unit development, Trustor will perform all of Trustor's duties under the
<br />covenants, by -laws, or regulations of the condominium or planned unit development.
<br />14. DEFAULT. Trustor will be in default if any party obligated on the Secured Debt fails to make payment when
<br />due. Trustor will be in default if a breach occurs under the terms of this Security Instrument or any other
<br />document executed for the purpose of creating, securing or guarantying the Secured Debt. A good faith belief
<br />by Beneficiary that Beneficiary at any time is insecure with respect to any person or entity obligated on the
<br />Secured Debt or that the prospect of any payment or the value of the Property is impaired shall also constitute
<br />an event of default.
<br />15. REMEDIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide
<br />Trustor with notice of the right to cure or other notices and may establish time schedules for foreclosure
<br />actions. Subject to these limitations, if any, Beneficiary may accelerate the Secured Debt and foreclose this
<br />Security Instrument in a manner provided by law if Trustor is in default.
<br />At the option of Beneficiary, all or any part of the agreed fees and charges, accrued interest and principal
<br />shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a
<br />default or anytime thereafter. In addition, Beneficiary shall be entitled to all the remedies provided by law,
<br />the terms of the Secured Debt, this Security Instrument and any related documents, including without
<br />limitation, the power to sell the Property.
<br />Security Instrument - Consumer -NE
<br />VMP® Bankers SystemsTM
<br />Wolters Kluwer Financial Services 01994, 2011
<br />RE -DT -NE 7/1/2011
<br />VMP- C1851NE) 107).00
<br />age 3 of 8
<br />
|