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200302621
<br />Financial Reports and Additional Documents. Truster will provide to Beneficiary upon request, any financial
<br />statement Or information Beneficiary may deem reasonably necessary. Truster agrees to sign, deliver, and file any
<br />additional documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve
<br />Trumor's obligations under this Security Instrument and Beneficiary's lien status on the Pmpcny.
<br />6. WARRANTY OF TITLE. Trustor warrants that Truster 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
<br />of sale. 'Trustor 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
<br />and payable upon the creation of, or contract for the creation of, a transfer or sale of [tic Property. This right is subject
<br />to the restrictions imposed by federal law (12 C.F.R. 590, as applicable.
<br />R. DEFAULT. Truster will be in default if any of the following occur:
<br />Fraud. Any Cea9mncr Burrower cagagcs 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 Borrower 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)'I'rustor commits waste or otherwise destructively uses
<br />or fails to maintain the Property such that the action or inaction adversely affects Beneficiary's security; oh 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 />senior to the lien of this Security Instrument; (e) a sole Trustor dies; (f) 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 mid 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
<br />and regulations.
<br />9. REMEDIES ON DEFAULT. 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 in 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 option of the Beneficiary, all of any part of the agreed fees Arid charges, accrued interest and principal shall
<br />become immediately due and payable, after giving notice if required by law, upon the Occurrence 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 whale or in
<br />separate parcels at public auction to do 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 />Lenny and place of sale and a description of the property to be sold as required by the applicable law in effect al. 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 mid prior encumbrances and interest
<br />thereon, and the principal and interest no 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 awclerated 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 Truster'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; C'OLLECT'ION 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
<br />for inspecting, preserving, or otherwise protecting the Property and Beneficiary's security interest These expenses are
<br />payable on demand and will bear interest from the date of payment until paid in full at me highum rate of interest in
<br />effect as provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses incurred by Beneficiary
<br />in collecting, enforcing or protecting Beneficiary's rights grid remedies under this Security Instrument This amount may
<br />include, but is not limited to 'fntstee's fees, court costs, and other legal expenses. To the extent permitted by the
<br />United States Bankruptcy Code, Truster 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 affect until rclmr c d. 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, without limitation, the Comprehensive Environmental Response. Compensation and Liability Act (CERCLA, 42
<br />U_SC. 9601 et see.), and all other federal, state and local laws, regulations, ordiumme.N, court Orders, attorney general
<br />oppinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and
<br />(2) Hazardous Substance morns any toxic, radioactive er hazardous material, waste, pollutant or contaminant which has
<br />characteristics which render the substance dangerous or potentially dangerous to the public health, safely, 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 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 Hazardous
<br />Substances that are 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 tenarit 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 concerning the Property. In such an
<br />event, Trustor shall take all necessary remedial action in accordance with any Environmental Law.
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<br />Q i 194 aenkeo Systems, Iv.,.a Oaua, MN corm OCP IIEeT NE 1,13 99
<br />(M-0465(NE) seem oz
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