|
� 99 ll � ig � �
<br /> Financial Reports and Additional Documents. Trustor will provide to Beneficiary upon request, any financial
<br /> statement or information Bene�ciary may deem reasonably necessary. Trustor agrees to sign, deliver, and file any
<br /> additional documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve
<br /> Trustor's obligations under this Security Instrument and Beneficiary's lien status on the Property.
<br /> 6. WARRANTY OF TITLE. Trustor wanants that Trustor is or will be lawfully seized of the estate conveyed by this
<br /> Security Instrument and has the right to inevocably grant, convey, and sell the Property to Trustee, in trust, with power
<br /> of sale. Trustor also wanants that the Property is unencumbered, except for encumbrances of record.
<br /> 7. DUE ON SALE. Beneficiary may, at its option, declare the entire balance of the Secured Debt to be immediately due
<br /> and payable upon the creation of, or contract for the creation of, a transfer or sale of the Property. This right is subject
<br /> to the restrictions imposed by federal law(12 C.F.R. 591), as applicable.
<br /> 8. DEFAULT. Trustor will be in default if any of the following occur:
<br /> Fraud. Any Consumer Bo:-rower engages in fraud or material misrepresentation in connection with the Secured Debt
<br /> that is an open end home equity plan.
<br /> Payments. Any Consumer Borrower on any Secured Debt that is an open end home equity plan fails to make a payment
<br /> when due.
<br /> Property. Any action or inaction by the Bonower or Trustor occurs that adversely affects the Property or Beneficiary's
<br /> rights in the Property. This includes, but is not limited to, the following: (a) Trustor fails to maintain required
<br /> insurance on the Property; (b) Trustor transfers the Property; (c) Trustor commits waste or otherwise destructively uses
<br /> or fails to maintain the Property such that the action or maction adversely affects Beneficiary's security; (d) Trustor fails
<br /> to pay taxes on the Property or otherwise fails to act and thereby causes a lien to be filed against the Property that is
<br /> semor to the lien of this Security Instrument; (e) a sole Trustor dies; (fl if more than one Trustor, any Trustor dies and
<br /> Beneficiary's security is adversely affected; (g) the Property is taken through eminent domain; (h) a judgment is filed
<br /> against Trustor and subjects Trustor and the Property to action that adversely affects Beneficiary's interest; or(i)a prior
<br /> lienholder forecloses on the Property and as a result, Beneficiary's interest is adversely affected.
<br /> Executive Officers. Any Borrower is an executive officer of Beneficiary or an affiliate and such Bonower becomes
<br /> indebted to Beneficiary or another lender in an aggregate amount greater than the amount permitted under federal laws
<br /> and regulations.
<br /> 9. REMEDIES ON DEFAIJI.T. In addition to any other remedy available under the terms of this Security Instrument,
<br /> Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if
<br /> Trustor is m default. In some instances, federal and state law will require Beneficiary to provide Trustor with notice of
<br /> the right to cure, or other notices and may establish time schedules for foreclosure actions. Each Trustor requests a copy
<br /> of any notice of default and any notice of sale thereunder be mailed to each Trustor at the address provided in Section 1
<br /> above.
<br /> At the o�tion of the Beneficiary, all or any part of the agreed fees and chazges, accrued interest and principal sha11
<br /> become immediately due and payable, after giving notice if required by law, upon the occunence of a default or
<br /> anytime thereafter.
<br /> If there is a default, Trustee shall, at the request of the Beneficiary, advertise and sell the Property as a whole or in
<br /> separate parcels at public auction to the highest bidder for cash and convey absolute title free and clear of all right, title
<br /> and mterest of Trustor at such tim�and place as Trusiee designates. Trustee shall give notice of�aVte including the time,
<br /> terms and place of sale and a description of the property to be sold as required by the applicable law in effect at the time
<br /> of the proposed sale.
<br /> Upon sale of the property and to the extent not prohibited by law, Trustee shall make and deliver a deed to the Property
<br /> sold which conveys absolute title to the purchaser, and after first paying all fees, charges and costs, shall pay to
<br /> Beneficiary 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
<br /> therein.
<br /> The acceptance by Beneficiary of any sum in payment or partial payment on the Secured Debt after the balance is due or
<br /> is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Beneficiary's right to require
<br /> complete cure of any existing default. By not exercising any remedy on Trustor's default, Beneficiary does not waive
<br /> Beneficiary's right to later consider the event a default if it happens again.
<br /> 10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. If Trustor breaches
<br /> any covenant in this Security Instrument, Trustor agrees to pay all expenses Beneficiary incurs in performing such
<br /> covenants or protecting its security interest in the Property. Such expenses include, but are not limited to, fees incuned
<br /> for inspecting, preservmg, or otherwise protecting the Property and Beneficiary's security interest. These expenses aze
<br /> payable on demand and will beaz interest from the date of payment until paid in full at the highest rate of interest in
<br /> effect as provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses mcurred by Beneficiary
<br /> in collecting, enforcing or protecting Beneficiary's rights and remedies under this Security Instrument. This amount may
<br /> include, but is not limited to, Trustee's fees, court costs, and other legal expenses. To the extent permitted by the
<br /> United States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Beneficiary incurs to collect the
<br /> Secured Debt as awarded by any court exercising jurisdiction under the Bankruptcy Code. This Security Instrument shall
<br /> remain in effect until released. Trustor agrees to pay for any recordation costs of such release.
<br /> 11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law
<br /> means, withQUt limitat�en, the Cflmpre�nsive EnYirezunen±al Resper.se, Comgensatia:�and Liability Act (CERCLA, 42
<br /> U.S.C. 9601 et seq.), and all other federal, state and local laws, regulations; ordinances, court orders, attorney general
<br /> opinions or interpretive letters concerning the�ublic health, safety, welfaze, environment or a hazardous substance; and
<br /> (2) Hazardous 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, welfaze or
<br /> environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances "
<br /> "hazazdous waste" or "hazardous substance" under any Environmental Law. � '
<br /> Trustor represents, warrants and agrees that:
<br /> A.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 Hazazdous
<br /> Substances that aze generally recognized to be appropriate for the normal use and maintenance of the Property.
<br /> B. 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. 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 conceming the Property. In such an
<br /> event, Trustor shall take a11 necessary remedial action in accordance with any Environmental Law.
<br /> (page 3 of 41
<br /> 1994 Bankers Systems,Inc.,St.Cloud,MN Fwm OCP-REDT-NE 1/13/99 � �
<br /> -C465(NE) Isso21.o2
<br /> �_
<br />
|