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<br />14. Hazardous substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any hazardous
<br />substances on or in the property. The preceding sentence shall not apply to the presence, use, or storage on the property of small
<br />quantities of hazardous substances that are generally recognized to be appropriate to normal use and maintenance of the property.
<br />Borrower covenants that Borrower has made full disclosure of any such known, existing hazardous conditions affecting the property.
<br />Borrower shall not do, nor allow anyone else to do, anything affecting the property that is in violation of any federal, state, or local
<br />environmental law or regulation. Borrower shall promptly give the Government written notice of any investigation, claim, demand,
<br />lawsuit or other action by any governmental or regulatory agency or private party involving the property and any hazardous substance
<br />or environmental law or regulation of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental
<br />or regulatory authority, that any removal or other remediation of any hazardous substance affecting the property is necessary,
<br />Borrower shall promptly take all necessary remedial actions in accordance with applicable environmental law and regulations. As
<br />used in this paragraph, "hazardous substances" are those substances defined as toxic or hazardous substances by environmental law
<br />and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides,
<br />volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph, "environmental
<br />law" means Federal laws and regulations and laws and regulations of the jurisdiction where the property is located that relate to
<br />health, safety or environmental protection.
<br />15. Adjustment; release; waiver; forbearance. In accordance with Government regulations, the Government may (a) adjust
<br />the interest rate, payment, terms or balance due on the loan, (b) increase the mortgage by an amount equal to deferred interest on the
<br />outstanding principal balance, (c) extend or defer the maturity of, and renew and reschedule the payments on the note, (d) release
<br />any party who is liable under the note from liability to the Government, (e) release portions of the property and subordinate its lien,
<br />and (f) waive any other of its rights under this instrument. Any and all of this can and will be done without affecting the lien or the
<br />priority of this instrument or Borrower's liability to the Government for payment of the note secured by this instrument unless the
<br />Government provides otherwise in writing. HOWEVER, any forbearance by the Government - whether once or often - in exercising
<br />any right or remedy under this instrument, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of
<br />any such right or remedy.
<br />16. Graduation. If the Government determines that Borrower may be able to obtain a loan from a responsible cooperative or
<br />private credit source at reasonable rates and terms for loans for similar purposes and periods of time, Borrower will, upon the
<br />Government's request, apply for and accept such a loan in sufficient amount to pay the note secured by this instrument and to pay for
<br />stock necessary to be purchased in a cooperative lending agency in connection with such loan.
<br />17. Forfeiture. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in
<br />the Government's good faith judgment could result in forfeiture of the property or otherwise materially impair the lien created by this
<br />instrument or the Government's security interest. Borrower may cure such default by causing the action or proceeding to be dismissed
<br />with a ruling that precludes forfeiture of the Borrower's interest in the property or other material impairment of the lien created by this
<br />security instrument or the Government's security interest.
<br />18. False statement. Borrower also shall be in default if Borrower, during the loan application process, gave materially false or
<br />inaccurate information or statements to the Government (or failed to provide the Government with any material information) in
<br />connection with the loan evidenced by the note.
<br />19. Cross Collateralization. Default under this instrument shall constitute default under any other security instrument held by
<br />the Government and executed or assumed by Borrower. Default under any other such security instrument shall constitute default
<br />under this instrument.
<br />20. Highly erodible land; wetlands. Any loan secured by this instrument will be in default if Borrower uses any loan
<br />proceeds for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an
<br />agricultural commodity as provided in 7 C.F.R. part 1940, subpart G, or any successor Government regulation.
<br />21. Non - discrimination. If any part of the loan for which this instrument is given shall be used to finance the purchase,
<br />construction or repair of property to be used as an owner- occupied dwelling (herein called "the dwelling ") and if Borrower intends to
<br />sell or rent the dwelling and has obtained the Government's consent to do so (a) neither Borrower nor anyone authorized to act for
<br />Borrower will, after receipt of a bona fide offer, refuse to negotiate for the sale or rental of the dwelling or will otherwise make
<br />unavailable or deny the dwelling to anyone because of race, color, religion, sex, national origin, disability, familial status or age, and
<br />(b) Borrower recognizes as illegal and hereby disclaims, and will not comply with or attempt to enforce any restrictive covenants on
<br />the dwelling relating to race, color, religion, sex, national origin, disability, familial status or age.
<br />Initial date
<br />FSA 1927 -1 NE (05- 21 -03) Page 4 of 7
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