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JUL -27 -01 FRI 09 :17 AM FAX N0, N. U8/25
<br />200107533
<br />8. 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 Instrument. Trustor agrees to assign to
<br />Beneficiary, as requested by Beneficiary, any rights, elairris or defenses Trustor may have against parties who supply labor
<br />or materials to maintain or improve the Property.
<br />9. DUE ON SALE OR ENCUMBRANCE. Beneficiary tray, 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
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<br />sale of the Property. This right s subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. This
<br />covenant shall rush with the Property and shall retrain in effect until the Secured Debt is paid in full and this Security
<br />I11.CUlJ111ent 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 ally waste, irripairrrrent, 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 Benefrciar .s prior written consent. Trustor will not
<br />permit any change in any license, restrictive covenant or easement without & ncticiary's prior written cowsent. Trustor will
<br />notify Beneficiary of all demand-,, proceedings, claims, and actions against Trustor, and of any loss or damage to die
<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 Trustor notice at the time of or before an inspection specifying a
<br />reasclimble purpose for the inspection. Any inspection of the property shall be entirely for Beneficiary's benefit and
<br />Tnistor will to 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 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 Instrument. If any constnction on the Property
<br />is discontinued or not carried on in a reasonable manner, Beneficiary may take all Reps rieces,mi -y 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 pi)rtion of the Property, including
<br />any extensions, renewals, modifications or 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 that this assignment is perfected upon the recording of this Deed of Trust and that Beneficiary is
<br />entitled 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 deimind that all
<br />future Rents be paid directly to Beneficiary. On receiving notice of 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 coinrlhingle
<br />the Rents with any other funds. Any amounts collected will be applied as provided in this Security Instrument. Trustor
<br />warrants that no default exists under the Leases or any applicable landlord /tenant law. Trustor also agrees to illaintain and
<br />require any tenant to comply with the terrors of the Leases and applicable law.
<br />13. LEASEHOLDS; CONDOMINIUMS; PLANNED UNIT 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 condonhithiutn or a
<br />planned unit development, Trustor will perform all of Trustor's duties under the covenarhts, by -laws, or regulations of tilt
<br />condominium or planned uuic development.
<br />14. DEFAULT. Trustor will be in default if any party obligated on the Secured Debt fails to make payment wizen 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 drat the prospect of any payment or
<br />the value of the Property is impaited shall also constitute an event of default.
<br />G_ T -15 -28 -090 (t 1197) (psge 3 of 6)
<br />C1994 Barkers SYNTeme, Inc., 5j. Cloud, MN Form OTK- MTGLAZNC 1 AM -
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