|
200100148 Application # 0109867036
<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 time
<br />is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment or the value
<br />of the Property is impaired shall also constitute an event of default.
<br />15. REMEDIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide Trustor with notice
<br />of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, if
<br />any, Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if
<br />Trustor is in default.
<br />At the option of Beneficiary, all or any part of the agreed fees and charges, accrued interest and principal shall become
<br />immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In
<br />addition, Beneficiary shall be entitled to all the remedies provided by law, the terms of the Secured Debt, this Security
<br />Instrument and any related documents, including without limitation, the power to sell the Property.
<br />If there is a default, Trustee shall, in addition to any other permitted remedy, at the request of the Beneficiary, advertise and
<br />sell the Property as a whole or in separate parcels at public auction to the highest bidder for cash and convey absolute title free
<br />and clear of all right, title and interest of Trustor at such time and place as Trustee designates. Trustee shall give notice of sale
<br />including the time, terms and place of sale and a description of the property to be sold as required by the applicable law in
<br />effect at the time of the proposed sale.
<br />Upon sale of the property and to the extent not prohibited by law, Trustee shall make and deliver a deed to the Property sold
<br />which conveys absolute title to the purchaser, and after first paying all fees, charges and costs, shall pay to Beneficiary all
<br />moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest thereon, and the
<br />principal and interest on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may purchase the Property. The
<br />recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein.
<br />All remedies are distinct, cumulative and not exclusive, and the Beneficiary is entitled to all remedies provided at law or
<br />equity, whether or not expressly set forth. The acceptance by Beneficiary of any sum in payment or partial payment on the
<br />Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of
<br />Beneficiary's right to require complete cure of any existing default. By not exercising any remedy on Trustor's default,
<br />Beneficiary does not waive Beneficiary's right to later consider the event a default if it continues or happens again.
<br />16. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited
<br />by law, Trustor agrees to pay all of Beneficiary's expenses if Trustor breaches any covenant in this Security Instrument.
<br />Trustor will also pay on demand any amount incurred by Beneficiary for insuring, inspecting, preserving or otherwise
<br />protecting the Property and Beneficiary's security interest. These expenses will bear interest from the date of the payment until
<br />paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Trustor agrees to pay all costs and
<br />expenses incurred by Beneficiary in collecting, enforcing or protecting Beneficiary's rights and remedies under this Security
<br />Instrument. This amount may include, but is not limited to, attorneys' fees, court costs, and other legal expenses. This Security
<br />Instrument shall remain in effect until released. Trustor agrees to pay for any recordation costs of such release.
<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means,
<br />without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601
<br />et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or
<br />interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous
<br />Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which
<br />render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term
<br />includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or
<br />"hazardous substance" under any Environmental Law.
<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and acknowledged in writing to Beneficiary, no Hazardous Substance is or will be
<br />located, stored or released on or in the Property. This restriction does not apply to small quantities of Hazardous
<br />Substances that are generally recognized to be appropriate for the normal use and maintenance of the Property.
<br />B. Except as previously disclosed and acknowledged in writing to Beneficiary, Trustor and every tenant have been, are,
<br />and shall remain in full compliance with any applicable Environmental Law.
<br />C. Trustor shall immediately notify Beneficiary if a release or threatened release of a Hazardous Substance occurs on,
<br />under or about the Property or there is a violation of any Environmental Law concerning the Property. In such an
<br />event, Trustor shall take all necessary remedial action in accordance with any Environmental Law.
<br />D. Trustor shall immediately notify Beneficiary in writing as soon as Trustor has reason to believe there is any pending or
<br />threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous Substance
<br />or the violation of any Environmental Law.
<br />18. CONDEMNATION. Trustor will give Beneficiary prompt notice of any pending or threatened action, by private or public
<br />entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Trustor
<br />authorizes Beneficiary to intervene in Trustor's name in any of the above described actions or claims. Trustor assigns to
<br />Beneficiary the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part
<br />of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security Instrument. This
<br />assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document.
<br />19. INSURANCE. Trustor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably
<br />associated with the Property due to its type and location. This insurance shall be maintained in the amounts and for the periods
<br />that Beneficiary requires. The insurance carrier providing the insurance shall be chosen by Trustor subject to Beneficiary's
<br />approval, which shall not be unreasonably withheld. If Trustor fails to maintain the coverage described above, Beneficiary
<br />may, at Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property according to the terms of this
<br />Security Instrument.
<br />All insurance policies and renewals shall be acceptable to Beneficiary and shall include a standard "mortgage clause" and,
<br />where applicable, "loss payee clause." Trustor shall immediately notify Beneficiary of cancellation or termination of the
<br />insurance. Beneficiary shall have the right to hold the policies and renewals. If Beneficiary requires, Trustor shall immediately
<br />give to Beneficiary all receipts of paid premiums and renewal notices. Upon loss, Trustor shall give immediate notice to the
<br />insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made immediately by Trustor.
<br />(page o4)
<br />Q 1994 Bankers Systems, Inc., St. Cloud, MN (1 -800 -397 -2341) Form RE -DT -NE 1027/97
<br />®C165(NE) (9808)
<br />
|