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200209586
<br />Financial Reports and Additional Documents. Tmstor wU provide to Beneficiary upon request, any financial
<br />statement or a rutmation Beneficiary may deem reasonably necessary. Tmstor agrees to sign, deliver, mid file any
<br />additional documents or certifications that Beneficiary may consider necessary to pertect, continue, and preserve
<br />Truster's obligations wider this Security Instrument mud Beneficiary's lien sums on tie Property.
<br />6. WARRANTY OF TITLE. Tmstor warrants that Tmstor is or will be lawfully wired of the estate conveyed by this
<br />Security Insuraienm and has the right to irrevocably grant, convey, and sell me Property to Trustee, in most, with power
<br />of sale. Truster also warrants that the Property is umncumbered, 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 />mud payable upon the creation of, or contract for tine 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. Tmstor 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 Consmner Borrower on any Secured Debt that is an open end sonic equity plan fails to make a payment
<br />when due.
<br />Property. Any action or inaction by the Borrower or'1'rustor occurs that adversely affects the Property or Beneficiary's
<br />rights in the Property. This includes, but is not limited to, the fallowing: (a) Truster fails to maimain required
<br />insurame on the Property; (b) Toaster transfers the Property; (c) Tmstor commits waste or otherwise destructively uses
<br />or fails to maintain e Property such that the action or Inaction adversely affects Beneficiary's security; (d) Trustor fails
<br />to pay taxes on the Property or otherwise faits to act and thereby causes a lien to be filed against the Property that is
<br />se mar, to the lien of this Security Instrument; (e) a sale Truster dies; (f) if more than one Truster, any Truster dies and
<br />Beneficiary's security is adversely affected; (g) the Property is taken through eminent domain; (h) a judgment is filed
<br />against Truster and subjects Truster mid the Property to action that adversely affects Beneficiary's interest; or (i) a prior
<br />henholder 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 Borrower becomes
<br />indebted to Beneficiary or mother lender in an aggregate amount greater than the amount pemiltted under federal laws
<br />and regulations.
<br />9. REMEDIES ON DEFAULT. In addition to any other remedy available under the terms of this Security fin trument,
<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 mid scam law will require Beneficiary to provide Tmstor with notice of
<br />the right to cure, or other notices and may establish time schedules for foreclosure actions. Each Tmstor requests a copy
<br />of any notice of default and any notice of sale thereunder be mailed to each Tmstor 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 changes, 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 , sdvclux, mid sell the Pmperty as a whole or in
<br />separate parcels at public auction to the highest bidder for cash and wnvey absolute title free aM clear of all right, title
<br />and interest of Tmstor in such lime and place as Trustee designates. Trustee shill give notice of sale including the 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 ppmldbited by law, Trustee shall wake and deliver a deed to the Property
<br />sold which conveys absolute title to the pure met, 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 Tmstor Beneficiary may
<br />purchase mhu Property. The recitals in any deed of conveyance shall be puma 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 ae filed shall not cmnstimte a waiver of Beneficiary's right to require
<br />complete cure of any existing default. By net exercising any remedy on Tristan'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 Truslor breaches
<br />any covenant in [his Security Instrunhent, Tmstor 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 tine Property and Beneficiary's security interest. These expenses are
<br />payable an demand and will bear interest from the date of payment until paid in fall at the highest rate of interest m
<br />effeel as provided in the terms of the Secured Debt. Truster agrees to pay all costs and expenses incurred by Beneficiary
<br />in collecting, enforcing or protecting Beneficiary's tights and remedies under this Security Inslmmmrt. This anount may
<br />include, but is not linnlcd lo, Trustee's fees, count costs, and other legal expenses. To the extent permitted by the
<br />United States Bankrupt �T Code, Tmstor agrees to pay the reasonable attorneys' fees Beneficiary incurs to collect the
<br />Secured Debt as awarded by may court exercising jurisdiction under the Bankruptcy Code. Tins Security instrument shall
<br />remain in effect until released. I rusmr agrees to pay for any recordation costs of such release.
<br />11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Eiwironm artm Law
<br />memos, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CF.RCLA, 42
<br />11. S. C. 9601 c[ scq.), mid all other federal, state and local laws, regulations, ordinances, court orders, attorney general
<br />0p1mom or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and
<br />(2) Hazudous Substance meals any toxic, radioactive or hazardous maenal, waste, pollutant or contaminant which 1.
<br />characteristics which render the substance dangerous or potentially dangerous to tie public health, safety, welfare or
<br />envirminew. The term includes, without limitation, any substances defined as "Imalmous material," "toxic substances,"
<br />"hazardous waste" or "hazardous substancc" under any Envirmnmutal 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 Progeny, This restriction does not apply to small quantities of Haz fins;
<br />Substances that arc gcm:rally recognized to a appropriate for the normal use and maintenance of the Property.
<br />B. Except as previously disclosed cud acknowledged in writing to Beneficiary, Tmstor and every tenant have been,
<br />are, and shall remain in full compliance with any applicable Enviroreaenud Law.
<br />C. Tri stor shill immediately notify Beneficiary if a release or threatened release of a Hamulmis Substance occurs on,
<br />under or about the Property or them is a violation of any Envimmnental Law concerning the Property. In such an
<br />event, Tmstor shall take all necessary remedial action in accordance with any Environmental raw.
<br />y }/� fpa9e
<br />©1994 Bank—jlll— Inc„ 9r. cloud MN Form OCV,arm.NE Ill .f�
<br />®- e496(NE) (99921 fit'
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