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<br />Property. Any action or inaction by the Borrower or Trustor occurs that adversely affects the Property or Beneficiary's rights in
<br />the Property. This includes, but is not limited to, the following: (a) Trustor fails to maintain required insurance on the Property; (b)
<br />TrUS[or transfers the Property; (c) Trustor commits waste or otherwise destructively uses or fails to maintain the Property such that
<br />the action or inaction adversely affects Beneficiary's security; (d) Trustor fails to pay taxes on the Property or otherwise fails to act
<br />and thereby causes a lien to be filed against the Property that is senior to the lien of this Security Instrument; (e) a sole Trustor dies;
<br />(f) if more than one Trustor, any Trustor dies and Beneficiary's security is adversely affected; (g) the Property is taken through
<br />eminent domain; (h) a judgment is filed against Trustor and subjects Trustor and the Property to action that adversely affects
<br />Beneficiary's interest; or (i) a prior lienholder forecloses on the Property and as a result, Beneficiary's interest is adversely
<br />affected.
<br />Executive Officers. Any Borrower is an executive officer of Beneficiary or an affiliate and such Borrower becomes indebted to
<br />Beneficiary or another lender in an aggregate amount greater than the amount permitted under federal laws and regulations.
<br />9. REMEDIES ON DEFAULT. In addition to any other remedy available under the terms of this Security Instrument, Beneficiary
<br />may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if Trustor is in default. In
<br />some instances, federal and state law will require Beneficiary to provide Trustor with notice of the right to cure, or other notices and
<br />may establish time schedules for foreclosure actions. Each Trustor requests a copy of any notice of default and any notice of sale
<br />thcrcunder be mailed to each Trustor at the address provided in Section 1 above.
<br />At the option of the Beneficiary, all or any part of the agreed fees and charges, accrued interest and principal shall become
<br />immediately due and payable, after giving notice if required by law, upon the occurrence of a default or 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 separate parcels
<br />at public auction to the highest bidder for cash and convey absolute title free and clear of all right, title and interest of Trustor at
<br />such time and place as Trustee designates. Trustee shall give notice of sale including the time, terms and place of sale and a
<br />description of the property to be sold as required by the applicable law in effect at the time 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 sold which
<br />conveys absolute title to the purchaser, and after first paying all fees, charges and costs, shall pay to Beneficiary all moneys
<br />advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest thereon, and the principal and interest
<br />on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may purchase the Property. The recitals in any deed of
<br />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 cure of
<br />any existing default. By not exercising any remedy on Truster's default, Beneficiary does not waive Beneficiary's right to later
<br />consider the event a default if it happens again.
<br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. If Trustor breaches any
<br />covenant in this Security Instrument, Trustor agrees to pay all expenses Beneficiary incurs in performing such covenants or
<br />protecting its security interest in the Property. Such expenses include, but are not limited to, fees incurred for inspecting,
<br />preserving, or otherwise protecting the Property and Beneficiary's security interest. These expenses are payable on demand and
<br />will bear interest from the date of payment until paid in full at the highest rate of interest in effect as provided in the terms of the
<br />Secured Debt. Trustor agrees to pay all costs and expenses incurred by Beneficiary in collecting, enforcing or protecting
<br />Beneficiary's rights and remedies under this Security Instrument. This amount may include, but is not limited to, Trustee's fees,
<br />court costs, and other legal expenses. To the extent permitted by the United States Bankruptcy Code, Trustor agrees to pay the
<br />reasonable attorneys' fees Beneficiary incurs to collect the Secured Debt as awarded by any court exercising jurisdiction under the
<br />Bankruptcy Code. This Security Instrument shall remain in effect until released. Trustor agrees to pay for any recordation costs of
<br />such release.
<br />11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means,
<br />without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et
<br />seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive
<br />letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any
<br />toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance
<br />dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any
<br />substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any
<br />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 located,
<br />stored or released on or in the Property. This restriction does not apply to small quantities of Hazardous Substances that are
<br />generally recognized to be appropriate for the normal use and maintenance of the Property. 12776
<br />Iixpcic"' tC1994 Bankers Systems, Inc., St. Cloud, MN Form USBOCPDT -NE 9/5/2001
<br />(page 4 of 6)
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