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<br />4. PAYMENTS. Grantor agrees that all payments under the Secured Debts will be paid when due and in accordance
<br />with the terms of the Secured Debts and this Security Instrument.
<br />5. WARRANTY OF TITLE. Grantor warrants that Grantor 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
<br />power of sale. Grantor also warrants that the Property is unencumbered, except for encumbrances of record.
<br />6. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other
<br />lien document that created a prior security interest or encumbrance on the Property, Grantor agrees:
<br />A. To make all payments when due and to perform or comply with all covenants.
<br />B. To promptly deliver to Lender any notices that Grantor receives from the holder.
<br />C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement
<br />secured by the lien document without Lender's prior written consent.
<br />7. CLAIMS AGAINST TITLE. Grantor will pay all taxes, assessments, liens, encumbrances, lease payments,
<br />ground rents, utilities, and other charges relating to the Property when due. Lender may require Grantor to provide
<br />to Lender copies of all notices that such amounts are due and the receipts evidencing Grantor's payment. Grantor
<br />will defend title to the Property against any claims that would impair the lien of this Security Instrument. Grantor
<br />agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Grantor may have against parties
<br />who supply labor or materials to maintain or improve the Property.
<br />8. DUE ON SALE. Lender 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, any transfer or sale of all or any part of the Property.
<br />This right is subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable.
<br />9. WARRANTIES AND REPRESENTATIONS. Grantor has the right and authority to enter into this Security
<br />Instrument. The execution and delivery of this Security Instrument will not violate any agreement governing Grantor
<br />or to which Grantor is a party.
<br />10. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Grantor will keep the Property in good condition
<br />and make all repairs that are reasonably necessary. Grantor will not commit or allow any waste, impairment, or
<br />deterioration of the Property. Grantor will keep the Property free of noxious weeds and grasses. Grantor agrees that
<br />the nature of the occupancy and use will not substantially change without Lender's prior written consent. Grantor will
<br />not permit any change in any license, restrictive covenant or easement without Lender's prior written consent.
<br />Grantor will notify Lender of all demands, proceedings, claims, and actions against Grantor, and of any loss or
<br />damage to the Property.
<br />Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of
<br />inspecting the Property. Lender will give Grantor notice at the time of or before an inspection specifying a
<br />reasonable purpose for the inspection. Any inspection of the Property will be entirely for Lender's benefit and
<br />Grantor will in no way rely on Lender's inspection.
<br />11. AUTHORITY TO PERFORM. If Grantor fails to perform any duty or any of the covenants contained in this
<br />Security Instrument, Lender may, without notice, perform or cause them to be performed. Grantor appoints Lender
<br />as attorney in fact to sign Grantor's name or pay any amount necessary for performance. Lender's right to perform
<br />for Grantor will not create an obligation to perform, and Lender's failure to perform will not preclude Lender from
<br />exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property
<br />is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's
<br />security interest in the Property, including completion of the construction.
<br />12. ASSIGNMENT OF LEASES AND RENTS. Grantor irrevocably assigns, grants, conveys to Lender as additional
<br />security all the right, title and interest in the following (Property): existing or future leases, subleases, licenses,
<br />guaranties and any other written or verbal agreements for the use and occupancy of the Property, including any
<br />extensions, renewals, modifications or replacements (Leases); and rents, issues and profits (Rents). In the event
<br />any item listed as Leases or Rents is determined to be personal property, this Assignment will also be regarded as a
<br />security agreement. Grantor will promptly provide Lender with copies of the Leases and will certify these Leases are
<br />true and correct copies. The existing Leases will be provided on execution of the Assignment, and all future Leases
<br />and any other information with respect to these Leases will be provided immediately after they are executed.
<br />Grantor may collect, receive, enjoy and use the Rents so long as Grantor is not in default. Upon default, Grantor will
<br />receive any Rents in trust for Lender and Grantor will not commingle the Rents with any other funds. Grantor agrees
<br />that this Security Instrument is immediately effective between Grantor and Lender and effective as to third parties on
<br />the recording of this Assignment. As long as this Assignment is in effect, Grantor warrants and represents that no
<br />default exists under the Leases, and the parties subject to the Leases have not violated any applicable law on
<br />leases, licenses and landlords and tenants.
<br />13. DEED OF TRUST COVENANTS. Grantor agrees that the covenants in this Security Instrument are material
<br />obligations under the Secured Debts and this Security Instrument. If Grantor breaches any covenant in this Security
<br />Instrument, Lender may refuse to make additional extensions of credit or may reduce the credit limit. By not
<br />exercising either remedy on Grantor's breach, Lender does not waive Lender's right to later consider the event a
<br />breach if it happens again.
<br />14. DEFAULT. Grantor will be in default if any of the following occur:
<br />A. Fraud. Grantor engages in fraud or material misrepresentation in connection with the Secured Debts.
<br />B. Payments. Any party obligated on the Secured Debts fails to make a payment when due.
<br />C. Property. Any action or inaction occurs that adversely affects the Property or Lender's rights in the Property.
<br />15. REMEDIES ON DEFAULT. In addition to any other remedy available under the terms of this Security
<br />Instrument, Lender may accelerate the Secured Debts and foreclose this Security Instrument in a manner provided
<br />by law if Grantor is in default. In some instances, federal and state law will require Lender to provide Grantor with
<br />notice of the right to cure, or other notices and may establish time schedules for foreclosure actions.
<br />Richard M. Fruehling
<br />Nebraska Deed Of Trust
<br />NE/ 4XX30032500836500004672022042605Y -1996 Bankers Systems, Inc., St. Cloud, MN C Page 2
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