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<br />Financial Reports and Additional Documents. Truster will provide to Beneficiary upon request, any financial
<br />statement or information Beneficiary may deem reasonably necessary. Trustor agrees to sign, deliver, and tile any
<br />additional documents nr certification. that Beneficiary may consider acer"ary to perfect, continue, and preserve
<br />Trustoe's obligations under this Security Instrument and Beneficiary's lien status on the Property.
<br />6. WARRANTY OF TITLE. Trustor warrants that Trustor 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 Pro city to Trustee, in trust, with power
<br />of sale. Trustor also warrants that the Property is unencumbered, except for encumb, mites 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 die 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.P.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 th
<br />rights in the Properly. This includes, but is not limited to, the following: (a) Trustor
<br />insurance on the Property; (b) Trustor transfers the Properly; (c) Trustor commits waste or I
<br />or fails to maintain the Property such that the action or inaction adversely affects Beneficiary
<br />to pay taxes on the Property or otherwise fails to act and thereby causes a lien to be filed
<br />senior to the lien of this Security Instrument; (e) a sole Trustor dies; (f) if more than one It
<br />Beneficiary's security is adversely affected; (g) the Property is taken through eminent dam
<br />against t rumor anti stmec . r rusmr anti Lite rrupeny to action Ulm auverscry a testa nenetimary am LCTCSI; or it) 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 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 my 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
<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 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 Truster at the address provided in Section I
<br />above.
<br />At the option of the Beneficiary, all or my put 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 Trustor at such time and place as Trustee designates. Trustee shall 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 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 coals, 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 my, 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
<br />therein.
<br />The acceptance by Beneficiary of my sum in payment or parrial 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 my existing default. By not exercising my 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 Truslor breaches
<br />my 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 />pa able on demand and will bear interest from the date of payment until laid in full at the highest rate of interest in
<br />effect as provided in the terms of the Secured Debt. Truslor agrees to pay all costs and expenses incurred by Beneficiary
<br />in 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
<br />United States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Beneficiary incurs to collect the
<br />Secured Debt as awarded by my court exercising jurisdiction under the Bankruptcy Code. This Security Instrument shall
<br />remain in effect until released. Trustor agrees to pay for my recordation costs of such release.
<br />11. ENVIRONMEN'T'AL 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, stare 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, my substances defined as "hazardous material," "noxic substances,"
<br />"hvardoux 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 Property. 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 writin(, to Beneficiary, Trustor and every tenant have been,
<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 on,
<br />under or about the Properly or there is a violation of my Environmental Law concerning the Property. In such an
<br />event, Trustor shall take all necessary remedial action in accordance with any Environmental Law.
<br />(page 3 of 41
<br />Q 199< II11rs6ys,ems, Imo., 61 . 11-u MN Poem OI1 rieI- NE 'I'3119
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