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<br />14. DEFAULT. Trustor will be in default it' 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 />tune is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment or
<br />Iftc value of the Property is nnpalred shall also constitute an event of default.
<br />15. REMh;DIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide Trustor with
<br />notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these
<br />limitations, il' any, Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner
<br />provided by law if 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
<br />thereafter. In addition, Beneficiary shall be entitled to all the remedies provided by law, the terms of the Secured Debt,
<br />this Security Instrument and any related documents, including without limitation, the power to sell the Property.
<br />11' ihcrc is a default, Trustee shall, in addition to any other permitted remedy, at the request of the Beneficiary, advertise
<br />and sell the Property as a whole or in separate parcels at public auction to the highest bidder for cash and convey absolute
<br />title lice and clear of all right, title and interest of Trustor at such time and place as Trustee designates. Trustee shall give
<br />notice of sale including the time, terms and place of sale and a description of the property to be sold as required by the
<br />applicable law in effect at the time of the proposed sale.
<br />I1pon sale of tltc property and to the extent not prohibited by law, Trustee shall make and deliver a deed to the Property
<br />sold tillich conveys absolute title to the purchaser, and after first paying all fees, charges and costs, shall pay to
<br />Bcncliciary all moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest
<br />thereon, and the principal and interest on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may
<br />purchase the Property. The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein.
<br />All rcmcclics arc distinct, cumulative and not exclusive, and the Beneficiary is entitled to all remedies provided at law or
<br />cyuity, whether or not expressly set forth. The acceptance by Beneficiary of any sum in payment or partial payment on the
<br />Secured Dcbt alter the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a
<br />waiver of Bcucliciary's right to require complete cure of any existing default. By not exercising any remedy on Trustor's
<br />default, lirucf iciary does not waive 13encliciary's right to later consider the event a default if it continues or happens again.
<br />16. F.XI'ENSI ,'S; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohihilcd by law, Trustor agrees to pay all of Beneficiary's expenses if Trustor breaches any covenant in this Security
<br />Instrumcnt. Trustor will also pay on cicmand any amount incurred by Beneficiary for insuring, inspecting, preserving or
<br />otherwise protecting the Property and ficneticiary's security interest. These expenses will bear interest from the date of the
<br />payment until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Trustor agrees
<br />to pay all costs and expenses incurred by beneficiary in collecting, enforcing or protecting Beneficiary's rights and
<br />remedies under this Security Instrument. This amount may include, but is not limited to, attorneys' fees, court costs, and
<br />other expenses. This Security Instrument shall remain in effect until released. Trustor agrees to pay for any
<br />rccordatiou costs of such release.
<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law
<br />rucans, without limitation, the Comprehensive Euviromnental Response, Compensation and Liability Act (CERCLA, 42
<br />U.S.('. 9601 ct scq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general
<br />opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2)
<br />Iazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has
<br />characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or
<br />cnviroumcnt. The tens includes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />' hazardous waste" or "hazardous substance" under any Environmental Law.
<br />'I rustor rcprescnts, warrants and agrees that:
<br />A. l,xccpt 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 />SUISIMICCS that are generally recognized to be appropriate for the normal use and maintenance of the Property.
<br />11, I;xccpt 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 inunediatety notify Beneficiary if a release or threatened release of a Hazardous Substance occurs on,
<br />uudcr 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 rcuteclial action in accordance with any Environmental Law.
<br />1). Trustor shall inunediately 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 anv I?uvironmental Law.
<br />18. CONI)FNINATION. Trustor will give Beneticiary prompt notice of any pending or threatened action, by private or public
<br />('ethics to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Trustor
<br />aul1101I .'S Beneticiary to intervene in 'I rustor's name in any of the above described actions or claims. Trustor assigns to
<br />Bcncliciary the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any
<br />part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security
<br />lustruntcnt. 'Phis assigmnent of proceeds is subject to the temis of any prior mortgage, deed of trust, security agreement or
<br />other lien CI0CW11C111.
<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
<br />periods chat Beneficiary requires. The insurance carrier providing the insurance shall be chosen by Trustor subject to
<br />Bcncficiury's approval, which shall not be unreasonably withheld. If Trustor fails to maintain the coverage described
<br />above, Bcncliciary may, at Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property according
<br />to ihc terms of ibis Security Instrument.
<br />All insurance policies and renewals shall be acceptable to Beneficiary and shall include a standard "mortgage clause" and,
<br />where ;Ipplicahlc, "loss payee clause." "Trustor shall immediately notify Beneficiary of cancellation or termination of the
<br />iusuraucc. Bcncliciary shall have the right to hold the policies and renewals. If Beneficiary requires, Trustor shall
<br />iuuuecliatcly give to Beneficiary all receipts of paid premiums and renewal notices. Upon loss, Trustor shall give
<br />iuuuediatc notice to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made immediately by
<br />Trustor.
<br />(page 3 of 4)
<br />091954 Eankers Systeme, Inc., St. Cloud, MN (1- 800 - 397 -2341) Form RE -DT -NE 10/27/97
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