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20400054 �
<br /> S. CLAIMS AGAINST TITLE. Trustor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents,
<br /> utilities, and other charges relating to the Property when due. Beneficiary may require Trustor to provide to Beneficiary
<br /> copies of all notices that such amounts are due and the receipts evidencing Trustor's payment. Trustor will defend title to
<br /> the Property against any claims that would impair the lien of this Security Instnunent. Trustor agrees to assign to
<br /> Beneficiary, as requested by Beneficiary, any rights, claims or defenses Trustor may have against parties who supply labar
<br /> or materials to maintain or improve the Property.
<br /> 9. DUE ON SALE OR ENCiJMBRANCE. Beneficiary may, at its option, declare the entire balance of the Secured Debt to
<br /> be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, transfer or
<br /> sale of the 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 Security
<br /> Instrument is released.
<br /> 10. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Trustor will keep the Property in good condition
<br /> and make all repairs that are reasonably necessary. Trustor shall not commit or allow any waste, impairment, or
<br /> deterioration of the Property. Trustor will keep the Property free of noxious weeds and grasses. Trustor agrees that the
<br /> nature of the occupancy and use will not substantially change without Beneficiary's prior written consent. Trustor will not
<br /> permit any change in any license, restrictive covenant or easement without Beneficiary's prior written consent. Trustor will
<br /> notify BeneFiciary of all demands, proceedings, claims, and actions against Trustor, and of any loss or damage to the
<br /> Property.
<br /> Beneficiary or Beneficiary's agents may, at Beneficiary's option, enter the Property at any reasonable time for the purpose
<br /> of inspecting the Property. Beneficiary shall give Trustar notice at the time of or before an inspection specifying a
<br /> reasonable purpose for the inspection. Any inspection of the Property shall be entirely for Beneficiary's benefit and
<br /> Trustor will in no way rely on Beneficiary's inspection.
<br /> 11. AUTHORITY TO PERFORM. If Trustor fails to perform any duty ar any of the covenants contained in this Security
<br /> Instrument, Beneficiary may, without notice, perform or cause them to be performed. Trustor appoints Beneficiary as
<br /> attorney in fact to sign Trustor's name or pay any amount necessary for performance. Beneficiary's right to perform for
<br /> Trustor shall not create an obligation to perform, and Beneficiary's failure to perform will not preclude Beneficiary from
<br /> exercising any of Beneficiary's other rights under the law or this Security Instnunent. If any construction on the Property
<br /> is discontinued or not carried on in a reasonable manner, Beneficiary may take all steps necessary to protect Beneficiary's
<br /> security interest in the Property, including completion of the construction.
<br /> 12. ASSIGNMENT OF LEASES AND RENTS. Trustor irrevocably grants, conveys and sells to Trustee, in trust for the
<br /> benefit of Beneficiary, as additional security all the right, title and interest in and to any and all existing or future leases,
<br /> subleases, and any other written or verbal agreements for the use and occupancy of any portion of the Property, including
<br /> any extensions, renewals, modifications ar substitutions of such agreements (all referred to as "Leases") and rents, issues
<br /> and profits (all referred to as "Rents"). Trustor will promptly provide Beneficiary with true and correct copies of all
<br /> existing and future Leases. Trustor may collect, receive, enjoy and use the Rents so long as Trustor is not in default under
<br /> the terms of this Security Instrument.
<br /> Trustor acknowledges [hat this assignment is perfected upon the recording of this Deed of Trust and that Beneficiary is
<br /> entided to notify any of Trustor's tenants to make payment of Rents due or to become due to Beneficiary. However,
<br /> Beneficiary agrees that only on default will Beneficiary notify Trustor and Trustor's tenants and make demand that all
<br /> future Rents be paid directly to Beneficiary. On receiving notice af default, Trustor will endorse and deliver to Beneficiary
<br /> any payment of Rents in Trustor's possession and will receive any Rents in trust for Beneficiary and will not commingle
<br /> the Rents with any other funds. Any amounts collected will be applied as provided in this Security Instrument. Trustor
<br /> wanants that no default exists under the Leases or any applicable landlord/tenant law. Trustor also agrees to maintain and
<br /> require any tenant to comply with the terms of the Leases and applicable law.
<br /> 13. LEASEHOLDS; CONDOMINIUMS; PLANNED iJNIT DEVELOPMENTS. Trustor agrees to comply with the
<br /> provisions of any lease if this Security Instrument is on a leasehold. If the Property includes a unit in a condominium or a
<br /> planned unit development, Trustor will perform a11 of Trustor's duties under the covenants, by-laws, or regulations of the
<br /> 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 due. Trustor
<br /> will be in default if a breach occurs under the terms of this Security Instrument or any other document executed for the
<br /> purpose of creating, securing or guarantying the Secured Debt. A good faith belief by Beneficiary that Beneficiary at any
<br /> time is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment or
<br /> the value of the Property is impaired shall also constitute an event of default.
<br /> GT 5-28-090 (1 1/97) /page 3 of 6/
<br /> �01994 Bankers Systems,Inc.,St.Cloud,MN Form GTH-MTGLAZNE 1/8/98 �
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