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200303889
<br />Financial Rends, and Additional Documents. Truster will provide to Beneficiary upon request, any financial
<br />statement or information Beneficiary may deem reasonably necessary. Truster agrees in sign, deliver, and file any
<br />additional documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve
<br />Truster's obligations under [his Security Instrument and Beneficiary's lien stains on the Property.
<br />6. WARRANTY OF TITLE. Truster warrants that Truster is or will be lawfully seized of the estate conveyed by this
<br />Security Instrument and loss 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 en rances 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 the Property. This right is subject
<br />to the restrictions imposed by federal law (12 C.F.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 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 Truster 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 en the Property; (b) Truster transfers the Property; (c) Traitor commits waste or otherwise destructively uses
<br />or fails to maintain the Property such that the action or inaction adversely affects Beneficiary's security; (d) Truster 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 titan 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 Truster and the Property to action that adversely affects Beneficiary's interest; or (i) a prior
<br />lienholder forecloses on the Property 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 Burrower biomes
<br />indebted to Beneficiary or mother 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 roomer provided by taw if
<br />Trustor is in default. In some instances, federal and slate law will require Beneficiary to provide' Truster with notice of
<br />the right to core, or other notices and may establish time schedules for foreclosure actions. Each Truster 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 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, 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 Truster at such time and place as Trustee designates. Trustee shall give notice of sale including a 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
<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 and prior cnicumbrances and interest
<br />thereon, and the principal and interest on the Secured Debt, paying the surplus, if any, to Truster. 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 Seemed Debt after the balance is due or
<br />is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Beneficiary's right to require
<br />complete core 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; COLLECTION COSTS. If Truster 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 inspectingg, preserving, or otherwise pmtu;tmg the Property and Beneficiary's security interest. These expenses are
<br />Mable nn dc—and and will bear' interest from the date of payment until paid in full at the highest rate of intmcst m
<br />effect as provided in the terms of the Secured Debt Trnstor agrees to pL ic th is osts and expenses incurred by Beneficiary
<br />in collecting, enforcing or protecting Beneficiary's rights and remedies Security Instrument. This amount may
<br />include, but is not limited to, Trustee's tees, wort costs, and other xpsesTo the extent permitted by thUnitd States ptCode, Trnstor agrees to pay the reasonable ys' fees Beneficiary incurs to cllect the
<br />Secured Debt as awarded by any ort erising jurisdiction order the ptcy Code. This Security lostrument shall
<br />remain in ellect until released. Trnstor 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
<br />(2) 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 the public health, safety, welfare or
<br />environment The term includes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />"bazardoes 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 Propperty. 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, Truster and every tenant have been,
<br />me, 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.
<br />(pope 3 of 4)
<br />©1994 BmkaS 5ysoms, Inc.. St CIous, MN Form OCP.PMT -NE 1 /I0g9
<br />(64651NE1 (9982)02
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