|
200409808
<br />14. DEFAULT. Trustor will be in default if any party obligated on the Secured Debt fails to make payment when due.
<br />Trustor will be in default if a breach occurs under the terms of this Security Instrument or any other document
<br />executed for the purpose of creating, securing or guarantying the Secured Debt. A good faith belief by Beneficiary
<br />that Beneficiary at any time is insecure with respect to any person or entity obligated on the Secured Debt or that the
<br />prospect of any payment or the value of the Property is impaired shall also constitute an event of default.
<br />15. REMEDIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide Trustor
<br />with notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to
<br />these limitations, if any, Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a
<br />manner 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 thereafter.
<br />In addition, Beneficiary shall be entitled to all the remedies provided by law, the terms of the Secured Debt, this Security
<br />Instrument and any related documents, including without limitation, the power to sell the Property.
<br />If there is a default, Trustee shall, in addition to any other permitted remedy, at the request of the Beneficiary,
<br />advertise and sell the Property as a whole or in separate parcels at public auction to the highest bidder for cash and
<br />convey absolute title free and clear of all right, title and interest of Trustor at such time and place as Trustee
<br />designates. Trustee shall give notice of sale including the time, terms and place of sale and a description of the
<br />property to be sold as required by the applicable law in effect at the time 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 therein.
<br />All remedies are distinct, cumulative and not exclusive, and the Beneficiary is entitled to all remedies provided at law or
<br />equity, whether or not expressly set forth. The acceptance by Beneficiary of any sum in payment or partial payment on the
<br />Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a
<br />waiver of Beneficiary's right to require complete cure of any existing default. By not exercising any remedy on Trustor's
<br />default, Beneficiary does not waive Beneficiary's right to later consider the event a default if it continues or happens again.
<br />16. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohibited by law, Trustor agrees to pay all of Beneficiary's expenses if Trustor breaches any covenant in this Security
<br />Instrument. Trustor will also pay on demand any amount incurred by Beneficiary for insuring, inspecting, preserving
<br />or otherwise protecting the Property and Beneficiary's security interest. These expenses will bear interest from the
<br />date of the payment until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt.
<br />Trustor agrees to pay all costs and expenses incurred by Beneficiary in collecting, enforcing or protecting Beneficiary's
<br />rights and remedies under this Security Instrument. This amount may include, but is not limited to, attorneys' fees,
<br />court costs, and other legal expenses. This Security Instrument shall remain in effect until released. Trustor agrees to
<br />pay for any recordation costs of such release.
<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law
<br />means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA,
<br />42 U.S.C. 9601 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney
<br />general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous
<br />substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or
<br />contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public
<br />health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous
<br />material," "toxic substances," "hazardous 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
<br />Hazardous Substances that are generally recognized to be appropriate for the normal use and maintenance of
<br />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
<br />on, under or about the Property or there is a violation of any Environmental Law concerning the Property. In
<br />such an event, Trustor shall take all necessary remedial action in accordance with any Environmental Law.
<br />D. Trustor shall immediately notify Beneficiary in writing as soon as Trustor has reason to believe there is any
<br />pending or threatened investigation, claim, or proceeding relating to the release or threatened release of any
<br />Hazardous Substance or the violation of any Environmental Law.
<br />18. CONDEMNATION. Trustor will give Beneficiary prompt notice of any pending or threatened action, by private or
<br />public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other
<br />means. Trustor authorizes Beneficiary to intervene in Trustor's name in any of the above described actions or claims.
<br />Trustor assigns to Beneficiary the proceeds of any award or claim for damages connected with a condemnation or other
<br />taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in
<br />this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust,
<br />security agreement or other lien document.
<br />19. INSURANCE. Trustor shall keep Property insured against loss by fire, flood, theft and other hazards and risks
<br />reasonably associated with the Property due to its type and location. This insurance shall be maintained in the amounts
<br />and for the periods that Beneficiary requires. The insurance carrier providing the insurance shall be chosen by Trustor
<br />subject to Beneficiary's approval, which shall not be unreasonably withheld. If Trustor fails to maintain the coverage
<br />described above, Beneficiary may, at Beneficiary's option, obtain coverage to protect Beneficiary's rights in the
<br />Property according to the terms of this Security Instrument.
<br />All insurance policies and renewals shall be acceptable to Beneficiary and shall include a standard "mortgage clause"
<br />and, where applicable, "loss payee clause." Trustor shall immediately notify Beneficiary of cancellation or termination
<br />of the insurance. Beneficiary shall have the right to hold the policies and renewals. If Beneficiary requires, Trustor shall
<br />immediately give to Beneficiary all receipts of paid premiums and renewal notices. Upon loss, Trustor shall give
<br />immediate notice to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made
<br />immediately by Trustor.
<br />(page 3 of 4)
<br />© 1994 Bankers Systems, Inc., St. Cloud, MN (1- 800 - 397 -2341) Form RE -DT -NE 10/27/97 Li
<br />
|