|
200109581
<br />account of Lauritsen, Brownell, Brostrom, Stehlik, Thayer & Myers, as
<br />provided in said Note.
<br />2. All payments received pursuant to the terms of the Note shall
<br />be first applied to advances which may have been made by Lenders and then
<br />to interest due and last to principal due.
<br />3. Borrowers shall pay all general real estate taxes and special
<br />assessments against the Property before the same become delinquent.
<br />4. Borrowers shall keep the improvements on said Property insured
<br />against loss by fire and hazards included with the term `extended
<br />coverage" for their insurable value and policies for the same shall
<br />include a standard mortgage clause showing Lenders herein. In event of
<br />loss, Lenders may make proof of loss if not promptly made by Borrowers.
<br />Insurance proceeds shall be applied to restoration or repair of the
<br />Property damages, unless all parties otherwise agree, except if
<br />restoration or repair is not economically feasible or Lenders' security
<br />is not lessened, otherwise said proceeds shall be paid on the debt
<br />herein, whether or not then due.
<br />Unless Lenders and Borrowers otherwise agree in writing, any
<br />payments or proceeds from insurance shall not extend or postpone the due
<br />date of the payments provided in said instrument of indebtedness.
<br />5. Borrowers shall keep the described Property in good condition
<br />and repair; shall promptly repair, or replace, any improvement which may
<br />be damaged or destroyed, shall not commit or permit any waste or
<br />deterioration of the real estate hereinabove described, shall not remove,
<br />demolish or substantially alter any of the improvements on the Property;
<br />shall not commit, suffer or permit any act to be done in or upon the
<br />Property in violation of any law, ordinance or regulation; and shall
<br />promptly discharge at Borrower's cost and expense all liens, encumbrances
<br />and charges levied, imposed or assessed against the described real estate
<br />or any part thereof.
<br />6. Borrowers shall keep the Property in compliance with all
<br />applicable laws, ordinances, and regulations relating to industrial
<br />hygiene or environmental protection (collectively referred to herein as
<br />"Environmental Laws "). Borrowers shall keep the Property free from all
<br />substances deemed to be hazardous or toxic under any Environmental Laws
<br />(collectively referred to herein as "Hazardous Materials "). Borrowers
<br />hereby warrant and represent to Lenders that there are no Hazardous
<br />Materials on or under the Property. Borrowers hereby agree to indemnify
<br />and hold harmless Lenders, and any successors to Lenders' interest, from
<br />and against any and all claims, damages, losses and liabilities arising
<br />in connection with the presence, use, disposal or transport of any
<br />Hazardous Materials on, under, from or about the Property. THE FOREGOING
<br />WARRANTIES AND REPRESENTATION, AND BORROWERS' OBLIGATIONS PURSUANT TO THE
<br />FOREGOING INDEMNITY, SHALL SURVIVE RECONVEYANCE OF THIS DEED OF TRUST.
<br />7. Borrowers shall not sell, transfer, assign, convey or further
<br />encumber all or any part of or any interest in the Property hereinabove
<br />described, either voluntarily or involuntarily, without the express prior
<br />written consent of Lenders or as otherwise herein permitted, and in the
<br />event of any such sale, transfer, assignment, conveyance or transfer in
<br />violation of this provision, Lenders shall have the option to declare all
<br />sums secured hereby immediately due and payable.
<br />8. If Borrowers fail to perform the covenants and agreements herein
<br />contained, Lenders may do and pay for whatever is necessary to protect
<br />the value of the property and Lenders' rights i.n the Property, including
<br />the paying of any sum secured by a lien which has priority over this Deed
<br />of Trust, appearing in Court, paying reasonable attorney fees and
<br />entering the Property to make repairs. Any amount disbursed by Lenders
<br />under this paragraph shall become an additional debt of Borrowers secured
<br />by this Deed of Trust, to bear interest from the date of disbursement and
<br />said amount, together with the then unpaid principal amount, shall bear
<br />interest at the highest lawful rate until refunded by Borrowers.
<br />Page 2 of 4
<br />
|