|
200305760
<br />Financial Reports and Additional Documents. Trustor will provide m Beneficiary upon request, any financial
<br />statement , ofor to Beneficiary may deem reasonably necessary. Trustor agrees to sign, deliver, and file any
<br />additional documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve
<br />Trustor's obligations under this Security Instrument and Beneficiary's lien status 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 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 the Property. This right is subject
<br />to the restrictions imposed by federal law (12 C.E.R. 591), as applicable.
<br />S. 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 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) Truster fails to maintain required
<br />insurance on the Property; (b) Trustor transfers the Property; (c) Truster 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 lion of this Security Instrument; (e) a sole Trustor dies; (f) if more than one Tmstoq any Trustor dies and
<br />Beneficiary's security is adversely affected; (g) the Property is taken through eminent domain; (h) ajudgment is filed
<br />against Trustor and subjects Trustor and the Property to action that adversely affects Beneficiary's interest; or (r) a prior
<br />lienholder forecloses on the Property and as a result, Beneficiary's interest is adversely affected.
<br />Executive Officers. Any Dorrower 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 arty other remedy available undo 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 dine 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 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 Propcity as a whole or in
<br />separate par cels at public auction to the highest bidder for cash and convey absolute title free and clear of all right, title
<br />and interest of Trustor at such time and place as 'Trustee designates. Trustee shall give notice of sale including the time,
<br />terms and place of sale acid a description of the property to be sold as required by the applicable law in effect at the dine
<br />of the proposed sale.
<br />Upon sale of the property and to the extent not ymhibitcd 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 Trmstor. 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 accelerated 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 Trustor's default, Beneficiary does not wave
<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 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 the highest 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, enfohcing or protecting Beneficiary's rights and remedies under this Security Instnunent. 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
<br />United States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Beneficiary incurs to collect the
<br />Seemed Debt as awarded by any court exercising jurisdiction order the Bankruptcy Coda This Security Instrument shall
<br />remain in effect until released. Trustor agrees to pay for any recordation costs of such release.
<br />11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (l) Environmental Law
<br />meats, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42
<br />U.S.C. 9601 et of 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, radioa:tive 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 />cmvirunment. 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 IIazardous 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 writin6 to Beneficiary, Trustor and every tenant have been,
<br />are, and shall remain m 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 ranedial action in accordance with any Environmental Law.
<br />(fie 3 of 4)
<br />(D 199d Bmkes Systems, Inc, St CIOU6 MN form OCP Rrer -NE 113 P9
<br />C9651NE1 (v001102
<br />
|