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200303372
<br />Financial Reports and Additional Documents. ')'ruder 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 ce,rocations that Beneficiary may consider necessary to perfect, continue, and preserve
<br />Trustor's obligations under this'3gcurity Instrument and Beneficiary's lien status on the Properly,
<br />6. WARRANTY OF TITLE. Tri sto( arrants that Truster is or will be lawfully seized of the estate conveyed by this
<br />Security Instrument and has the rig�t to irrevocably grant, convey, and sell the Property to 'Trustee, in trust, with
<br />power of sale. Trustor also warrants that the Property is unencumbered, except for encumbrances of record.
<br />7. DUE ON SALE. Bencficiary may, at its option, declare the entire balance of the Secured Debt to be immediately
<br />due and payable upon the creation of. or contract for the creation of, a transfer or sale of the Property. This right is
<br />subject to the restrictions imposed by federal law (12 C.P.R. 591), as applicable.
<br />8. DEFAULT. Trustor 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
<br />Debt 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
<br />payment when due.
<br />Property. Any action of inaction by the Borrower or Trustor occurs that adversely affects the Property or
<br />'s
<br />Beneficiary rights in the Property. This includes, but is not limited to. the fallowing: (a) truster fails to maintain
<br />required insoance on the Property; (b) 'Trustor transfers the Property; (c) Trustor commits waste or otherwise
<br />destructively uses or fails to maintain the Property such that the action or inaction adversely affects Beneficiary's
<br />security; (d) Trustor fails to pay taxes on the Property or otherwise fails to act and thereby causes a lien to be filed
<br />against the Property that is scour to the lien of This Security Instrument; (c) a sole 'truster dies; (f) if more than one
<br />Trustor, ant I roster dies and Beneficiary's security is adversely affected; (g) the Property is taken through eminent
<br />domain; (It) a judgment is filed against Truslur and subjects Trustor and the Property In action that adversely
<br />li
<br />affects Beneficiary's interest; or (i) a prior enholder forecloses on the Property and as a result, Beneficiary's
<br />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
<br />laws and regulations.
<br />9. REMEDIES ON DEFAULT. In addition to any other remedy available under the terms Of this Security
<br />Instrument. Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner
<br />provided by law if Trustor is in default. In some instances, federal and state law will require Beneficiary to provide
<br />Trustor with notice of the right to cure or other notices and may establish time schedules for foreclosure actions
<br />and niay establish time schedules for foreclosure actions. Each Trustor requests a copy of any notice of default and
<br />any notice of sale thereunder be mailed to each Trustor at the address provided in SCChon I above.
<br />At the option of the Bencficiary, all or any part of the agreed fees and 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, 'Irustee shall, at the request of the Beneficiary, advertise and sell the Proper)} as a whole or in
<br />separate parcels at public auction to the highest bidder for cash and convey absolute title free anti clear of all right,
<br />title and interest of'frustor at such time and place as Trustee designates. Trustee shall give notice of sale including
<br />the time, terms and place of sale and a description of the property to be sold as required by the applicable law in
<br />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 decd 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 />The acceptance by Beneficiary of any sum in payment nr partial payment on the Secured Debt after tire balance is
<br />due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Beneficiary's right to
<br />require complete cure of any existing default. By not exercising any remedy On Trustee's default, Beneficiary does
<br />not waive 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
<br />incurred for inspecting, preserving, or otherwise protecting the Property and Beneficiary's security interest These
<br />expenses are payable on demand and will bear interest from the date of payment until paid in full at the highest rate of
<br />interest in effect as provide(] in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses incurred by
<br />Beneficiary in collecting, enforcing or protecting Beneficiary's rights and remedies under this Security Instrument.
<br />This amount may include. but is not limited In, Trustee's fees. court costs, and other legal expenses. 'l'o the extent
<br />permitted by the Uniled States Bankruptcy Code. Trustor agrees ho pay the reasonable attorneys' fees Beneficiary
<br />Incurs to collect the Secured Debt as awaracd by any court exercising jurisdiction under the Bankruptcy Code. This
<br />Security Instrument shall remain in effect until released. Truslor agrees to pay for any recordation casts of such
<br />release.
<br />11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law
<br />means, without limitation, the Comprehensive F.nvio n uental Response, Compensation and I,iability 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 ( ?) 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" hazmdnue substance" under any Environmental I,aw.
<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. 'Phis restriction does not apply lu small quantities of
<br />Hazardous Substances that are generally recognized to be appropriate for the normal use and maintenance of
<br />the Properly.
<br />B. Except as previously disclosed and acknowledged in writing to Beneficiary, Trustor and every tenant have liven,
<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 La e 3 ore
<br />(P 9 )
<br />®1994 Oenke,e 5yu,mnx loo.. at. I't.1 ON 11- OOP- sF-rNE 1 !1 V9s ci
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