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200302049
<br />Financial Refracts and Additional Documents. 'Tmstor will provide m Beneficiary upon request, any financial statement
<br />or infommation Beneficiary con deem reasonably necessary. Trustor a rees to sign, deliver, and file any additional documents or certifications that Luefieiary may consider necessary to perfect, continue, and preserve Trusmr's obligations
<br />under this Security Instrument and Beneficiary's hen status on the Property.
<br />6. WARRANTY OF TITLE. Trustor warrants that 'Tmstor 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. Trustor also warrants that the Property is unenemnbered, 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 [I creation of, or contract for the creation of, a transfer or sale of the Property- 'Phis right is subject to the
<br />restrictions imposed by federal law (12 C.N.R. 591), as applicable.
<br />S. DEFAULT. Trustor will be in default if any of the following accur
<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 home equity plan fails an make a payment
<br />when due.
<br />Property. Any action or inaction by the Borrower or Trustor )cents that adversely affect., the Property or Beneficiary's
<br />rights In the Property, this includes, but is not limited lo, the following: (a) Tmstor fads to maintain required insurance
<br />on the Property; (h) Truster transfers the Property; (e) 'Trustor commits waste or otherwise destructively uses or fails m
<br />maintain the Property such that the action or inaction adversely affects Beneficiary's security; (d) Trustor fails to pay lazes
<br />on the Property or otherwise fails to act and thereby causes a hen to be filed against the Property that is senior to the lien
<br />of this Security fi strmnent; (e) a sale 'Pastor dies; (f) if more than one Truster, any I n sir dies and Beneficiary's
<br />security is adversely affected; (g) the Property is taken through eminent domain; (h) a judgment is filed against Taylor and
<br />subjects 'faster and the Property to action t 't adversely affects Beneficiary's interest; or (i) a prior licnholder forecloses
<br />on the Pmpeny 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 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 terms of this Security Instrument,
<br />Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if Trustor
<br />is in default. In some instances, federal and state taw will require Beneficiary to provide Trustor with notice of the right to
<br />cure, or other notices and ma establish time schedules for foreclosure actions. Each Ttusmr requests a copy of any notice
<br />of default and any notice of sale thereunder be mailed to each Truster at the address provided in Section 1 above.
<br />At the option of the 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
<br />thereafter.
<br />If them is a default, Trustee shall, at the request of the Beneficiary, advertise and sell the Pro 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 Truster 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 its required by the applicable law in effect at the lime of
<br />he proposed sale.
<br />U�an safe of the property and to the extent not prohibited by law, Trustee shall make and deliver a deed to the Property
<br />sod which conveys absolute title to Ole 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 fmsmr. Beneficiary may
<br />purchase the Property. '1 he recitals in any decd of conveyance shot prima facie evidence of the facts set forth therein.
<br />The acceptance by Beneficiary of any sum in p r meat or partial payment on the Secured Debt after the balance is due or is
<br />accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Beneficiary's tight to require complete
<br />cure of any existing default. By not exercising any remedy on Taster's default, Beneficiary does not waive Beneficiary's
<br />right to tamer 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 incurred for
<br />inspecting, preserving, or otherwise protecting the Property and Beneficiary's security interest. These expenses are payable
<br />on demand and will bear interest frmn the ate of payment until paid in full at the highest rate of interest in effect as
<br />provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses incurred by Beneficiary in
<br />collecting, enforcing or protecing Beneficiary's rights and remedies under this Security Instrument. This amount may
<br />include, but is not )united m, 'trustee's fees, court costs, and other legal expenses. 'To the extent permitted by tlm United
<br />Stales Bankruptcy Late, Truster agrees to pay the reasonable attorneys fees Beneficiary incurs to collect the Secured Debt
<br />as awarded by any court exercising jurisdiction under the Bankruptcy Code. This Security Instrument shall remain in effect
<br />until released. Trustor agrees m pay for any recordation casts of such release.
<br />11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Envinmmmtal Law
<br />means, without limimtion,--the Compict usive 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 />opiin as or interpretive levers concerning the public health, safety, welfare, environment or a hazardous substance, and (2
<br />l azmdous Substance means any toxic, radioactive or hazardous material, waste, pollutant or ennuunrean which has
<br />characteristics which tender the substance dangerous or potentially dangerous m the 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 P,nviroa menud Law.
<br />Truster 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 gannuities of hazardous
<br />Substances that are generally recognized to he appropriate for the normal use and maintenance of the Propany.
<br />B. Except as previously disclosed and acknowledged m writing to Beneficiary, Trustor and every tenant have been, are,
<br />and shall remain in full compliance with any applicable Environmental Law.
<br />C.Truster 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 contenting the Property. In such an
<br />event, Trustor shall take all necessary remedial action in accordance with any Efivianmental Law.
<br />e'�yu (page 3 of 4I
<br />a.µ.�.q C 19946ankes 5ym-1, Lw., 3t CImd, MN Form OOP REeT -NE 113012002
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