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200004070
<br />14.
<br />WE
<br />FAULT.
<br />Trustor will be in default if any party obligated on the Secured Debt fails to make payment when due. Trustor
<br />it
<br />in default if a breach occurs under the terms of this Security Instrument or any other document executed for the
<br />umose
<br />of creating, securing or guarantying the Secured Debt. A good faith belief by Beneficiary that Beneficiary at an
<br />im
<br />A, insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment or
<br />e
<br />v
<br />ue of the Property is impaired shall also constitute an event of default.
<br />15.
<br />DIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide Trustor with
<br />of
<br />ce
<br />of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these
<br />lim
<br />to
<br />ions, if any, Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided
<br />by
<br />av,
<br />if Trustor is in default.
<br />At
<br />option of Beneficiary, all or any part of the agreed fees and charges, accrued interest and principal shall become
<br />iately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter.
<br />n
<br />4c
<br />ition, Beneficiary shall be entitled to all the remedies provided by law, the terms of the Secured Debt, this Security
<br />Insi
<br />ru
<br />rient and any related documents, including without limitation, the power to sell the Property.
<br />f
<br />e
<br />e is a default, Trustee shall, in addition to any other permitted remedy, at the request of the Beneficiary, advertise
<br />11 the Property as a whole or in separate parcels at public auction to the highest bidder for cash and convey absolute
<br />title
<br />ee and clear of all right, title and interest of Trustor at such time and place as Trustee designates. Trustee shall give
<br />notice
<br />of sale including the time, terms and place of sale and a description of the property to be sold as required by the
<br />applicible
<br />law in effect at the time of the proposed sale.
<br />Upon
<br />sale of the property and to the extent not prohibited by law, Trustee shall make and deliver a deed to the Property
<br />old
<br />which
<br />conveys absolute title to the purchaser, and after first paying all fees, charges and costs, shall pay to Beneficiary
<br />1
<br />rioneys
<br />advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest thereon, and the
<br />principal
<br />and interest on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may purchase the Property.
<br />h
<br />recitals
<br />in any deed of conveyance shall be prima facie evidence of the facts set forth therein.
<br />4,11
<br />remedies
<br />are distinct, cumulative and not exclusive, and the Beneficiary is entitled to all remedies provided at law or
<br />equ
<br />ty,
<br />whether or not expressly set forth. The acceptance by Beneficiary of any sum in payment or partial payment on the
<br />Sec
<br />ired
<br />Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver
<br />of I
<br />leneficiary's
<br />right to require complete cure of any existing default. By not exercising any remedy on Trustor's default,
<br />Ber
<br />-f
<br />ciary does not waive Beneficiary's right to later consider the event a default if it continues or happens again.
<br />16.
<br />NSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />pro
<br />ii
<br />ited by law, Trustor agrees to pay all of Beneficiary's expenses if Trustor breaches any covenant in this Security
<br />Insi
<br />ru
<br />ent. Trustor will also pay on demand any amount incurred by Beneficiary for insuring, inspecting, preserving or
<br />th
<br />-.ry
<br />rise protecting the Property and Beneficiary's security interest. These expenses will bear interest from the date of th
<br />a
<br />nt until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Trustor agrees
<br />to
<br />)ay
<br />all costs and expenses incurred by Beneficiary in collecting, enforcing or protecting Beneficiary's rights an
<br />ren
<br />ed
<br />les under this Security Instrument. This amount may include, but is not limited to, attorneys' fees, court costs, an
<br />other
<br />legal expenses. This Security Instrument shall remain in effect until released. Trustor agrees to pay for an
<br />recom
<br />ation costs of such release.
<br />17.
<br />ENVIRONMENTAL
<br />LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental La
<br />e
<br />without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 4
<br />9601 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general
<br />pi
<br />ic
<br />ns or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2
<br />H&nrdous
<br />Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has
<br />characteristics
<br />which render the substance dangerous or potentially dangerous to the public health, safety, welfare or
<br />environment.
<br />The term includes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />"hazaidous
<br />waste" or "hazardous substance" under any Environmental Law.
<br />ru
<br />St (T
<br />represents, warrants and agrees that:
<br />A.
<br />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.
<br />Except as previously disclosed and acknowledged in writing to Beneficiary, Trustor and every tenant have been,
<br />are, and shall remain in full compliance with any applicable Environmental Law.
<br />C.
<br />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.
<br />Trustor shall immediately notify Beneficiary in writing as soon as Trustor has reason to believe there is any pending
<br />or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous
<br />Substance or the violation of any Environmental Law.
<br />18.
<br />X
<br />N
<br />ENINATION. Trustor will give Beneficiary prompt notice of any pending or threatened action, by private or public
<br />nt
<br />ties
<br />to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Trusto
<br />tut
<br />io
<br />izes Beneficiary to intervene in Trustor's name in any of the above described actions or claims. Trustor assigns to
<br />ef
<br />ciary the proceeds of any award or claim for damages connected with a condemnation or other taking of all or an
<br />az
<br />if
<br />the Property. Such proceeds shall be considered payments and will be applied as provided in this Security
<br />ns
<br />rurient.
<br />This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or
<br />�th
<br />r
<br />ien document.
<br />9.
<br />]N!
<br />U
<br />RANCE. Trustor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably
<br />s
<br />ci
<br />ited with the Property due to its type and location. This insurance shall be maintained in the amounts and for the
<br />r
<br />oc
<br />s that Beneficiary requires. The insurance carrier providing the insurance shall be chosen by Trustor subject to
<br />ef
<br />ciary's approval, which shall not be unreasonably withheld. If Trustor fails to maintain the coverage described above,
<br />ef
<br />ciary may, at Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property according to the
<br />:eri
<br />ris
<br />f this Security Instrument.
<br />I
<br />here
<br />in
<br />urance policies and renewals shall be acceptable to Beneficiary and shall include a standard "mortgage clause" and,
<br />applicable, "loss payee clause." Trustor shall immediately notify Beneficiary of cancellation or termination of the
<br />insura
<br />ice. Beneficiary shall have the right to hold the policies and renewals. If Beneficiary requires, Trustor shall
<br />iately give to Beneficiary all receipts of paid premiums and renewal notices. Upon loss, Trustor shall give immediate
<br />of
<br />ce
<br />to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made immediately by Trustor.
<br />(page 3 of 4)
<br />0 1
<br />94
<br />Bonkers Systems, Inc., ST. Cloud, MN (I- 800 - 397 -2341) Form RE -DT -NE 10/27/97 %%
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