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2004109'5
<br />Financial Reports and Additional Documents. Truster will provide to Beneficiary upon request, enyfinancial statement
<br />or information Beneficiary ma deem reasonably necessary. Trainor agrees to sign, deliver, antl y additional
<br />documents or certifications that Beneficiary may consider nece ssa to perfect, continue, and preserve Truster's obligations
<br />under this Security Instrument and Beneficiary's hen status on the Property.
<br />6. WARRANTY OF TITLE. Truslor warrants that Traitor is or will be lawfully seized of the estate conveyed by this
<br />Security Instrument and has the right to irrevocably grant, convey, and sell the Property to Trustee, in trust, with power of
<br />sale. Tmstor also warrants 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 and
<br />payable upon the creation of, or contract for the creation of, a transfer or sale of the Property. This right is subject to the
<br />restrictions imposed by federal law (12 C.F.R. 591), as applicable.
<br />S. DEFAULT. Tmstor will be in default if any of the following occur:
<br />Fraud. Any Consumer Borrower engages in fraud or material misrepresentation in connection with the Secured Debt that
<br />is an open end home equity plan.
<br />Payments. Any Consumer Borrower on any Secured Debt that is an open end he= equity plan fails to make a payment
<br />when due.
<br />Property Any action or inaction by the Borrower or Toone' occurs that adversely affects th e Propeay or Beneficiary's
<br />rights in the Property. This includes, but is not limited to, the following: (a) Tmstor fails to maintain required insurance
<br />nn the Propetty; (b) Tmstor transfers the Property; (y Truslor commits waste or otherwise destructively uses or fails to
<br />mainain the Property Such that the action or inaction adversely affects Beneficiary's security; (d) Tmstor furls to pa nixes
<br />on the Property or otherwise fails to act and thereby causes a hen to fie filed against the Proparty that is senior [o the lien
<br />of [his Security inawmenp (e) a sole Tmstor dies; (f) tf more than one Tmstor, an Truslor dies and Beneficiary's
<br />security is adversely affected; (g) the Propetry is taken through eminent domain; (h) a judgment is filed against Tmstor and
<br />subjects Tmstor and the Property to amen t[rat adversely affects Beneficiary's interesq or (i) a prior lienholder forecloses
<br />on the Property and as a result, Beneficiary's interest is adversely afftxted.
<br />Executive Officers. Any Borrower is an executive officer of Beneficiary or an affiliate and such Borrower becomes
<br />indebted to Beneficiary or another lender in an aggregate amount greater than the amount permitted under federal laws and
<br />regulations.
<br />9. REMEDIES ON DEFAULT. In addition to an other remedy available under the tarns of this Security Instrument,
<br />Beneficin may accelerate the Seemed Debt and foreclose this Security Instrument in a manner provided by law, if Treanor
<br />is in default. In some instances, federal and state law will require Beneficiary to provide Truster with notice of the right to
<br />cure, or other notices and may establish time schedules for foreclosure actions. each Tmstor requests a copy of any notice
<br />of default and any notice of sale thereunder be mailed to each Trustor at the address provided in Section 1 above.
<br />At the option of the Beneficiary, all or any par[ of the agreed fees and charges, seemed interest and prim al shall become
<br />immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime
<br />[hereafter.
<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 interest of Tmstor at such time and place as Trustee designates. Trustee shall give notice of sale 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 of
<br />the proposed sale.
<br />Upon sale of die 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 Tmstor. 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 />The acceptance by Beneficiary of any sum in payyment or partial payment on the Secured Debt after the balance is due or is
<br />accelerated or after foreclosure proceedings are flied shall not constitute a waiver of Beneficiary's right to require complete
<br />cure of any existingg default. By not exercising any remedy on Trus[or's default, Beneficiary does not waive Beneficiary's
<br />right to later consider the event a default if it happens again.
<br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. If Tractor breaches
<br />any covenant in this Security Instrument, Truster 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 incurred for
<br />inspecting preserving or otherwise protectin the Property and Beneficiary's security interest. These expenses are payable
<br />on demand and will bear interest from the date of payment until paid in full at the highest rate of interest in effect as
<br />provided in the terms of the Secured Debt. Truster agrees to pay all costs and expenses incurred by Beneficiary in
<br />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 United
<br />States Bankruptcy Code, Treater agrees to pay the reasonable attorneys fees Beneficiary incurs to collect the Secured Debt
<br />as awarded b any court exercising jurisdiction under the Bankruptcy Code. This Security Instrument shall remain in effect
<br />until released. Toaster 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, without limitation, the Comprehensive Environmental Response, Compensation 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 public health, safety, welfare, environment or a hazardous substance; and (2)
<br />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 , public health, safety, welfare or
<br />environment. The term includes, without limitation, any substances defined as "hazardous material,' "toxic substances,'
<br />"hazardous waste" or' hazardous substance, under any nvironmental Law.
<br />Truslor represents, warrants and agrees Iliac
<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 ap ly to small quantities of Hazardous
<br />Substances that are generally recognized to he appropriate for the normal use a� maintenance of the Properly
<br />B. Except as previously disclosed an d acknowledged in writing to Beneficiary, Truslor and every tenant have been, are,
<br />and shall remain in full compliance with any applicable Environmental Law.
<br />C. Toaster shall immediately notify Beneficiary 1f a release or threatened release of a Hazardous Substance occurs on,
<br />order or about the Properly or there is a violation of any Environmental Law concerning the Property. In such an
<br />event, Truslor shall take all necessary remedial action in accordance with any Environmental Law.
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