|
200001309
<br />4. PAYMENTS. Grantor agrees that all payments under the Secured Debts will be paid when due and in
<br />accordance with the terms of the Secured Debts and this Security Instrument.
<br />5. WARRANTY OF TITLE. Grantor warrants that Grantor is or will be lawfully seized of the estate conveyed by
<br />this Security Instrument and has the right to irrevocably grant, convey and sell the Property to Trustee, in trust,
<br />with power of sale. Grantor also warrants that the Property is unencumbered, except for encumbrances of
<br />record.
<br />6. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other
<br />lien document that created a prior security interest or encumbrance on the Property, Grantor agrees:
<br />A. To make all payments when due and to perform or comply with all covenants.
<br />B. To promptly deliver to Lender any notices that Grantor receives from the holder. ;
<br />C. Not to allow any modification or extension of, nor to request any future advances under any note or
<br />agreement secured by the lien document without Lender's prior written consent.
<br />7. CLAIMS AGAINST TITLE. Grantor will pay all taxes, assessments, liens, encumbrances, lease payments,
<br />ground rents, utilities, and other charges relating to the Property when due. Lender may require Grantor to
<br />provide to Lender copies of all notices that such amounts are due and the receipts evidencing Grantor's
<br />payment. Grantor will defend title to the Property against any claims that would impair the lien of this Security
<br />Instrument. Grantor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Grantor
<br />may have against parties who supply labor or materials to maintain or improve the Property.
<br />8. DUE ON SALE. Lender may, at its option, declare the entire balance of the Secured Debts to be immediately
<br />due and payable upon the creation of, or contract for the creation of, a transfer or sale of the Property. This
<br />right is subject to the restrictions imposed by federal law governing the preemption of state due -on -sale laws, as
<br />applicable.
<br />9. WARRANTIES AND REPRESENTATIONS. Grantor has the right and authority to enter into this Security
<br />Instrument. The execution and delivery of this Security Instrument will not violate any agreement governing
<br />Grantor or to which Grantor is a party,
<br />10. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Grantor will keep the Property in good condition
<br />and make all repairs that are reasonably necessary. Grantor will not commit or allow any waste, impairment, or
<br />deterioration of the Property. Grantor will keep the Property free of noxious weeds and grasses. Grantor agrees
<br />that the nature of the occupancy and use will not substantially change without Lender's prior written consent.
<br />Grantor will not permit any change in any license, restrictive covenant or easement without Lender's prior
<br />written consent. Grantor will notify Lender of all demands, proceedings, claims, and actions against Grantor,
<br />and of any loss or damage to the Property.
<br />Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of
<br />inspecting the Property. Lender will give Grantor notice at the time of or before an inspection specifying a
<br />reasonable purpose for the inspection. Any inspection of the Property will be entirely for Lender's benefit and
<br />Grantor will in no way rely on Lender's inspection.
<br />11. AUTHORITY TO PERFORM. If Grantor fails to perform any duty or any of the covenants contained in this
<br />Security Instrument, Lender may,- without notice, perform or cause them to be performed. Grantor appoints
<br />Lender as attorney in fact to sign rantor's name or pay any amount necessary for performance. Lender's right
<br />to perform for Grantor will not create an obligation to perform, and Lender's failure to perform will not preclude
<br />Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any
<br />construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps
<br />necessary to protect Lender's security interest in the Property, including completion of the construction.
<br />12. ASSIGNMENT OF LEASES AND RENTS. Grantor irrevocably grants, bargains and conveys to Trustee, in
<br />trust for the benefit of the Lender, as additional security all the right, title and interest in and to any and all:
<br />A. Existing or future leases, subleases, licenses, guaranties and any other written or verbal agreements for
<br />the use and occupancy of any portion of the Property, including any extensions, renewals, modifications or
<br />substitutions of such agreements (all referred to as Leases).
<br />B. Rents, issues and profits (all referred to as Rents), including but not limited to security deposits, minimum
<br />rent, percentage rent, additional rent, common area maintenance charges, parking charges, real estate taxes,
<br />other applicable taxes, insurance premium contributions, liquidated damages following default, cancellation
<br />premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, bonuses, accounts,
<br />contract rights, general intangibles, and all rights and claims which Grantor may have that in any way pertain
<br />to or are on account of the use or occupancy of the whole or any part of the Property.
<br />Grantor will promptly provide Lender with true and correct copies of all existing and future Leases. Grantor may
<br />collect, receive, enjoy and use the Rents so long as Grantor is not in default under the terms of this Security
<br />Instrument.
<br />Grantor agrees that this assignment is immediately effective between the parties to this Security Instrument and
<br />effective as to third parties on the recording of this Security Instrument. This assignment will remain effective
<br />until the Secured Debts are satisfied. Grantor agrees that Lender is entitled to notify Grantor or Grantor's
<br />tenants to make payments of Rents due or to become due directly to Lender after such recording, however,
<br />Lender agrees not to notify Grantor's tenants until Grantor defaults and Lender notifies Grantor of the default
<br />and demands that Grantor and Grantor's tenants pay all Rents due or to become due directly to Lender. On
<br />receiving notice of default, Grantor will endorse and deliver to Lender any payment of Rents in Grantor's
<br />possession and will receive any Rents in trust for Lender and will not commingle the Rents with any other funds.
<br />Any amounts collected will be applied as provided in this Security Instrument. Grantor warrants that no default
<br />exists under the Leases or any applicable landlord /tenant law. Grantor also agrees to maintain and require any
<br />tenant to comply with the terms of the Leases and applicable law.
<br />13. DEFAULT. Grantor will be in default if any of the following occur:
<br />A. Payments. Any party obligated on the Secured Debts fails to make payment when due.
<br />B. Insecurity. Anything else happens that causes Lender to reasonably believe that the prospect of payment,
<br />performance or the value of the Property is significantly impaired.
<br />14. REMEDIES. Lender may use any and all remedies Lender has under state or federal law or in any instrument
<br />idencing or pertaining to the Secured Debts, including, without limitation, the power to sell the Property. Any
<br />bead Of Trust Initials
<br />1060 0 0000000 00 00 00 0 2 2 00 0 0 0 0 2 3n9 *1 996 Bankers Systems, Inc., St. Cloud, MN age 2
<br />
|