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200315821
<br />9. TRANSFER OF AN INTEREST IN THE ASSIGNOR. If Assignor is an entity other than a natural person (such as a
<br />corporation or other organization), Lender may demand immediate payment if:
<br />A. A beneficial interest in Assignor is sold or transferred.
<br />B. There is a change in either the identity or number of members of a partnership or similar entity.
<br />C. There is a change in ownership of more than 25 percent of the voting stock of a corporation or similar entity.
<br />However, Lender may not demand payment in the above situations if it is prohibited by law as of the date of this
<br />Assignment.
<br />10. DEFAULT. Assignor will be in default if any of the following occur with regard to the Secured Debts that are secured
<br />by this Assignment:
<br />A. Payments. Assignor fails to make a payment in full when due.
<br />B. Insolvency or Bankruptcy. Assignor makes an assignment for the benefit of creditors or becomes insolvent, either
<br />because Assignor's liabilities exceed Assignor's assets or Assignor is unable to pay Assignor's debts as they
<br />become due; or Assignor petitions for protection under federal, state or local bankruptcy, insolvency or debtor relief
<br />laws, or is the subject of a petition or action under such laws and fails to have the petition or action dismissed
<br />within a reasonable period of time not to exceed 60 days.
<br />C. Death or Incompetency. If Assignor is an individual, Assignor dies or is declared legally incompetent.
<br />D. Business Termination. If Assignor ;s not an individual, Assignor merges, dissolves, reorganizes or ends its business
<br />or existence, or a partner or majority owner dies or is declared legally incompetent.
<br />E. Failure to Perform. Assignor fails to perform any condition or to keep any promise or covenant of this Assignment,
<br />any other document evidencing or pertaining to the Loan, or any other debt or agreement Assignor has with Lender.
<br />F. Misrepresentation. Assignor makes any verbal or written statement or provides any financial information that is
<br />untrue, inaccurate, or conceals a material fact at the time it is made or provided.
<br />G. Property Transfer. Assignor transfers all or a substantial part of Assignor's money or property.
<br />H. Property Value. The value of the Property declines or is impaired.
<br />I. Name Change. Assignor changes Assignor's name or assumes an additional name without notifying Lender before
<br />making such a change.
<br />J. Material Change. Without first notifying Lender, there is a material change in Assignor's business, including
<br />ownership, management, and financial conditions.
<br />K. Insecurity. Lender reasonably believes that Lender is insecure.
<br />11. REMEDIES. After Assignor defaults, and after Lender gives any legally required notice and opportunity to cure the
<br />default, Lender may at Lender's option do any one or more of the following:
<br />A. Acceleration. Lender may make all or any part of the amount owing by the terms of the Secured Debts immediately
<br />due.
<br />B. Additional Security. Lender may demand additional security or additional parties to be obligated to pay the Secured
<br />Debts.
<br />C. Sources. Lender may use any and all remedies Lender has under the state law where the Property is located or
<br />federal law or in any instrument evidencing or pertaining to the Secured Debts.
<br />D. Insurance Benefits. Lender may make a claim for any and all insurance benefits or refunds that may be available on
<br />Assignor's default.
<br />E. Payments Made On Assignor's Behalf. Amounts advanced on Assignor's behalf will be immediately due and may
<br />be added to the Secured Debts.
<br />F. Rents. Lender may terminate Assignor's right to collect Rents and directly collect and retain Rents in Lender's
<br />name without taking possession of the Property and to demand, collect, receive, and sue for the Rents, giving
<br />proper receipts and releases. In addition, after deducting all reasonable expenses of collection from any collected
<br />and retained Rents, Lender may apply the balance as provided for by the Secured Debts.
<br />G. Entry. Lender may enter, take possession, manage and operate all or any part of the Property; make, modify,
<br />enforce or cancel or accept the surrender of any Leases; obtain or evict any tenants and licensees; increase or
<br />reduce Rents; decorate, clean and make repairs or do any other act or incur any other cost Lender deems proper to
<br />protect the Property as fully as Assignor could do. Any funds collected from the operation of the Property may be
<br />applied in such order as Lender may deem proper, including, but not limited to, payment of the following: operating
<br />expenses, management, brokerage, attorneys' and accountants' fees, the Secured Debts, and toward the
<br />maintenance of reserves for repair or replacement. Lender may take such action without regard to the adequacy of
<br />the security, with or without any action or proceeding, through any person or agent, or receiver to be appointed by
<br />a court, and irrespective of Assignor's possession. The collection and application of the Rents or the entry upon
<br />and taking possession of the Property as set out in this section shall not cure or waive any notice of default under
<br />the Secured Debts, this Assignment, or invalidate any act pursuant to such notice. The enforcement of such
<br />remedy by Lender, once exercised, shall continue for so long as Lender shall elect, notwithstanding that such
<br />collection and application of Rents may have cured the original default.
<br />(page 4 of 7)
<br />M ©2001 Bankers Systems, Inc., St. Cloud, MN Form ASMT- RENT -NE 5/1/2002
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