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200205889
<br />Financial Reports and Additional Documents. 'I rustor will provide to Beneficiary upon request, any financial statement
<br />or information Beneficiary may deem reasonably necessary. Tmstor agrees to sign, deliver, and file any additional
<br />documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve Trustor's obligations
<br />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 of
<br />sale. Truster 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 and
<br />payable upon the creation of, or contract for the creation of, a transfer or sale of the Property. This right is subject to the
<br />restrictions imposed by federal law (12 C.P.R. 591), as applicable.
<br />B. 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 that
<br />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. "Ibis includes, but is not limited to, the following: (a) Truster fails to maintain required insurance
<br />on the Property; (b) Tmstor transfers the Property; (c) Truster commits waste or otherwise destructively uses or fails to
<br />maintain the Property such that the action or inaction adversely aflicis Beneficiary's security; (d) Tmstor fails to pay taxes
<br />on the Property or otherwise fails to act and thereby causes a lien to be filed against the Property that is senior to the lien
<br />of this Security Instrument; (e) a sole Truster dies; (f) if more than one Trustor, any Truster dies and Beneficiary's
<br />security is adversely affected; (g) the Property is taken through eminent domain; @) ajudgment is filed against Tmstor and
<br />subjects Tmstor and the Property to action that adversely affects Beneficiary's interest; or (i) a prior lienholder forecloses
<br />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 another lender in an aggregate amount greater than the amount permitted under federal laws and
<br />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 Tmstor
<br />is in default. In some instances, federal xnd state law will require Beneficiary to provide Toaster with notice of the right to
<br />cure, or other notices and may establish time schedules for foreclosure actions. Each Truster requests a copy of any notice
<br />of default and any notice of sale [hereunder he mailed to each Tmstor at the address provided in Section 1 above.
<br />At the option of the Beneficiary, all or arty part of die agreed fees and charges, accrued interest and principal shall become
<br />immediately (Joe and payable, after giving notice if required by law, upon the occurrence of a default or anytime
<br />thereafter.
<br />If their 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 Tmstor at such time and place as Trustee designates. Trustee shall give notice of sale including the time,
<br />terns and place of sale and a description of the property to be sold as required by the applicable law in effect at the time of
<br />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 />thcrcun, and the principal and interest on the Secured Debt, paying the surplus, if any, to Toaster. Beneficiary may
<br />purchase die 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 or partial payment on the Secured Debt after the balance is due or is
<br />accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Beneficiary's right to require complete
<br />cure of any existing default. By not exercising any remedy on 'fmstor's default, Beneficiary does not waive Beneficiary's
<br />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, Tmstor agrees m 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 for
<br />inspecting, preserving, or otherwise protecting the Property and Beneficiary's security interest. These expenses are payable
<br />on demand and will bear interest from the date of payment until paid in full at the highest rate of interest in effect as
<br />provided in the terms of the Secured Debt. Truster agrcre to pay all costs and expenses incurred by Beneficiary in
<br />collecting enforcing or protecting Beneficiary's rights and remedies under this Security Instrument. 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 United
<br />States Bankruptcy Code, Truster agrees to pay the reasonable attorneys' fees Beneficiary incurs to collect the Secured Debt
<br />as awarded by any court exercising jurisdiction under the Bankruptcy Cede. This Security Instrument shall remain in effect
<br />until released. Tmstor agrees to pay rer any recordation costs of such release.
<br />11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law
<br />means, without limihnioo, 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 (2)
<br />Hazardous Substance means cry 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 />"hazardous waste" or "hazardous substance" under any Environmental Law.
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