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<br />loan No: 611498
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<br />ASSIGNMENT OF RENTS
<br />(Continued)
<br />
<br />200600110
<br />
<br />Page 3
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<br />notice of a breach of the same provision of this Assignment within the preceding twelve (12) months, it may be
<br />cured if Grantor, after receiving written notice from Lender demanding cure of such default: (1) cures the default
<br />within three (3) days; or (2) if the cure requires more than three (3) days, immediately initiates steps which
<br />Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and
<br />completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.
<br />
<br />RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Lender
<br />may exercise anyone or more of the following rights and remedies, in addition to any other rights or remedies provided
<br />by law:
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<br />Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire
<br />Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to
<br />pay.
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<br />Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and
<br />collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's
<br />costs, against the Indebtedness. In furtherance of this right, Lender shall have all the rights provided for in the
<br />Lender's Right to Receive and Collect Rents Section, above. If the Rents are collected by Lender, then Grantor
<br />irrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof in
<br />the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to
<br />Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or
<br />not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in
<br />person, by agent. or through a receiver.
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<br />Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of
<br />the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or
<br />sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the
<br />receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right
<br />to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the
<br />Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a
<br />receiver.
<br />
<br />Other Remedies. Lender shall have all other rights and remedies provided in this Assignment or the Note or by
<br />law.
<br />
<br />Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and
<br />an election to make expenditures or to take action to perform an obligation of Grantor under this Assignment, after
<br />Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies.
<br />
<br />Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Assignment,
<br />Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and
<br />upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all
<br />reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its
<br />interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear
<br />interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include,
<br />without limitation, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and
<br />Lender's legal expenses, whether or not there is a lawsuit, including reasonable attorneys' fees and expenses for
<br />bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any
<br />anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including
<br />foreclosure reports), surveyors' reports, and appraisal fees, title insurance, and fees for the Trustee, to the extent
<br />permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law.
<br />
<br />MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Assignment:
<br />
<br />Amendments. This Assignment, together with any Related Documents, constitutes the entire understanding and
<br />agreement of the parties as to the matters set forth in this Assignment. No alteration of or amendment to this
<br />Assignment shall be effective unless given in writing and signed by the party or parties sought to be charged or
<br />bound by the alteration or amendment.
<br />
<br />Caption Headings. Caption headings in this Assignment are for convenience purposes only and are not to be used
<br />to interpret or define the provisions of this Assignment.
<br />
<br />Governing Law. This Assignment will be governed by federal law applicable to Lender and, to the extent not
<br />preempted by federal law, the laws of the State of North Dakota without regard to its conflicts of law provisions.
<br />This Assignment has been accepted by Lender in the State of North Dakota.
<br />
<br />Merger. There shall be no merger of the interest or estate created by this assignment with any other interest or
<br />estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent
<br />of Lender.
<br />
<br />Interpretation. (1) In all cases where there is more than one Borrower or Grantor, then all words used in this
<br />Assignment in the singular shall be deemed to have been used in the plural where the context and construction so
<br />require. (2) If more than one person signs this Assignment as "Grantor," the obligations of each Grantor are joint
<br />and several. This means that if Lender brings a lawsuit, Lender may sue anyone or more of the Grantors. If
<br />Borrower and Grantor are not the same person, Lender need not sue Borrower first, and that Borrower need not be
<br />joined in any lawsuit. (3) The names given to paragraphs or sections in this Assignment are for convenience
<br />purposes only. They are not to be used to interpret or define the provisions of this Assignment.
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<br />No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Assignment unless such
<br />waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right
<br />shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Assignment
<br />shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that
<br />provision or any other provision of this Assignment. No prior waiver by Lender, nor any course of dealing between
<br />Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any
<br />future transactions. Whenever the consent of Lender is required under this Assignment, the granting of such
<br />consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such
<br />consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.
<br />
<br />Notices. Any notice required to be given under this Assignment shall be given in writing, and shall be effective
<br />when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when
<br />deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as
<br />first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this
<br />Assignment. Any party may change its address for notices under this Assignment by giving formal written notice
<br />to the other parties, specifying that the purpose of the notice is to change the party's address. For notice
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