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<br />200600544
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<br />14. DEFAULT. Trustor will be in default if any party obligated on the Secured Debt fails to make payment when due. Trustor
<br />will be in default if a breach occurs under the terms of this Security Instmment or any other document executed for the
<br />purpose of creating, securing or guarantying the Secured Debt. A good faith belief by Beneficiary that Beneficiary at any
<br />time is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment or
<br />the value of the Property is impaired shalI also constitute an event of default.
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<br />15. REMEDIES ON DEFAULT. In some instances, federal and state law wilI require Beneficiary to provide Trustor with
<br />notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these
<br />limitations, if any, Beneficiary may accelerate the Secured Debt and foreclose this Security Instmment in a manner provided
<br />by law if Tmstor is in default.
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<br />At the option of Beneficiary, all or any part of the agreed fees and charges. accrued interest and principal shall become
<br />immediately due and payahle, after giving notice if required by law, upon the occurrence of a default or anytime thereafter.
<br />In addition, Beneficiary shall be entitled to all the remedies provided by law, the terms of the Secured Debt, this Security
<br />Instmment and any related documents, including without Iinlltation, the power to sell the Property.
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<br />If there is a default, Trustee shall, in addition to any other permitted remedy, at the request of the Beneficiary, advertise
<br />and sell the Property as a whole or in separate parcels at public auction to the highest bidder for cash and convey absolute
<br />title free and clear of all right, title and mterest of Trustor at such time and place as Trustee designates. Trustee shall give
<br />notice of sale including the time, terms and place of sale and a description of the property to be sold as required by the
<br />applicable law in effect at the time of the proposed sale.
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<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 costs, shall pay to Beneficiary
<br />alI moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest thereon, and the
<br />principal and interest on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may purchase the Property.
<br />The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein.
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<br />All remedies are distinct, cumulative and not exclusive, and the Beneficiary is entitled to all remedies provided at law or
<br />equity, whether or not expressly set forth. The acceptance by Beneficiary of any sum in payment or partial payment on the
<br />Secured Debt after the balance IS due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver
<br />of Beneficiary's right to require complete cure of any existing default. By not exercising any remedy on Trustor's default,
<br />Beneficiary docs not waive Beneficiary's right to later consider the event a default if it continues or happens again.
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<br />16. EXPENSES; ADV ANCES ON COVENANTS; ATTORNEYS' l<'EES; COLLECTION COSTS. Except when
<br />prohibited by law, Trustor agrees to pay all of Beneficiary's expenses if Trustor breaches any covenant in this Security
<br />Instrument. Trustor wilI also pay on demand any amount incurred by Beneficiary for insuring, inspecting, preserving or
<br />otherwise protecting the Property and Beneficiary's security interest. These expenses will bear interest from the date of the
<br />payment until paid in full at the highest interest rate in effect as provided in the tenns of the Secured Debt. Trustor agrees
<br />to pay all costs and expenses incurred by Beneficiary in collecting, enforcing or protecting Beneficiary's rights and
<br />remedies under this Security Instnl111ent. This amount may include, but is not limited to, attorneys' fees, cOllrt costs, and
<br />other legal expenses. This Security Instrument shall remain in effect until released. Trustor agrees to pay for any
<br />recordation costs of such release.
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<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SURSTANCES. As used in this section, (I) Environmental Law
<br />means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCI.A, 42
<br />U.S.C. 9601 et seq.), and all other federal, state 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 (2)
<br />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, wel fare or
<br />environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />"hazardous waste" or "hazardous substance" under any Environmental Law.
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<br />Tmstor 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 recogni7.Cd to be appropriate for the normal use and maintenance of the Property.
<br />B. Except as previously disclosed and acknowledged in writing to Beneficiary, Tmstor and every tenant have been,
<br />arc, and shall remain in full compliance with any applicable Environmental Law.
<br />C. Tmstor shall immediatcly notify Beneficiary if a release or threatened release of a Hazardous Substance occurs on,
<br />under or about the Property or there is a violation of any Environmental Law concerning the Property. In such an
<br />event, Trustor shall take all necessary remedial action in accordance with any Environmental Law.
<br />D. Tmstor shall immediately notify Beneficiary in writing as soon as Trustor has reason to believe there is any pending
<br />or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous
<br />Substance or the violation of any Environmental Law.
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<br />18. CONDEMNATION. Trustor will give Beneficiary prompt notice of any pending or threatened action, by private or public
<br />entities to purchase or take any or all of the Property through condemnation, eminent domain, or aI~y other means. 'rmstor
<br />authorizes Beneficiary to intervene in Trustor's name in any of the above described actions or chums. Trustor assIgns to
<br />Beneficiary the proceeds of any award or claim for d.amages connected with ~, condemn~tion or othe! taki!lg o( all or a!IY
<br />part of the Property. Such proceeds shall be conSIdered payments and wil] be applied as prOVided 111 tillS Secunty
<br />Instmment. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or
<br />other lien document.
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<br />19. INSURANCE. Tmstor shall keep Property insured against Joss by fire, nood, theft and other hazards and risks reasonably
<br />associated with the Property due to its type and location. This insurance shall be maintained in the amounts. and for the
<br />periods that Beneficiary requires: What ~~neficiar~ requires pursuant to the preceding sentel~ce can chan~.e .dur~ng the term
<br />of the loan. The insurance carner provld1l1g the 11lsura~ce shall.be ~hosen by Trustor su.hject to Benef1cla~y. s approval,
<br />which shall not be unreasonably Withheld. If Trustor fails to mamtam the coverage descnbed above, BenefiCiary may, at
<br />Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property according to the terms of this Security
<br />Instrument.
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<br />All insurance policies and renewals shall be acceptable to Beneficiary and shall include a standard "mortgage clause" and,
<br />where applicable, "loss payee clause." Trustor shall, immedi',ttely notify Beneficiary of cancel.\ation or .termination of the
<br />insurance. Beneficiary shall have the right to hold the policlCs and renewals. If BenefiCiary requtres, . Tn!stor s\lall
<br />imf!1ediatcly give to Bellefi~iary all recei'p~s of paid P!e.miums and renewal !lOtices. ~)pon loss, Trustor. shall give Jlllmedlate
<br />notice to the 111surance carner and Beneficiary. BenefiCiary may make proof of loss I f not made nnmedlately by Trustor.
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<br />F..;<f5e~ 01994 Bankers Systems, lilC" St, Cloud, MN Form RE-uf.Nf 1/30/2002
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<br />.. -C165(NE) (03011
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