|
<br />..
<br />
<br />.
<br />
<br />200600980
<br />
<br />.
<br />
<br />14. DEFAULT. Tmstor 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 Instrument or any other document executed for the
<br />purpose of creating, securing or guarantying the Secured Debt. A good faith belief hy 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 shall also eonstitute an event of default.
<br />
<br />15. REMEDIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide Tmstor with
<br />notice of the right to cure or other notices and may estahlish 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.
<br />
<br />At the option of Beneficiary, all or any part of the agreed fees and charges, accmed interest and principal shall become
<br />immediatcly due and payable, 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 Deht, this Security
<br />Instnunent and any related documents, including without limitation, the power to sell the Property.
<br />
<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 Tmstee 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 hy the
<br />applicable law in effect at the time of the proposed sale.
<br />
<br />Upon sale of the property and to the extent not prohibited by law, Tmstee shall make and dcliver 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 />all 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 Tmstor. Beneficiary may purchase the Property.
<br />The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein.
<br />
<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 accclerated 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.
<br />
<br />16. EXPENSES; ADV ANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohibited by law, Tmstor agrees to pay all of Beneficiary's expenses if Trustor breaches any covenant in this Security
<br />Instmment. Trustor will 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 mterest from the date of the
<br />payment until paid in full at the highest interest rate in effect as provided in the terms 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 Instrument. This amount may include, but is not limited to, attorneys' fees, court costs, and
<br />other legal expenses. This Security Instmment shall remain in effect until released. Trustor agrees to pay for any
<br />recordation costs of such release.
<br />
<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) 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 11<lzardous substance; and (2)
<br />HazardOl~s .Substa~lce means any toxic, radioactive or hazardo~ls material, waste, pollutan.t or contami!lant which has
<br />charactenstlcs WlllCh render the substance dangerous or potentially dangerous to the publlc 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.
<br />
<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
<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 recognized to be appropriate for the normal use and maintenance of the Property.
<br />B. Except as previously disclosed and acknowledged in writing to Beneficiary, Trustor and every tenant have heen,
<br />are, and shall remain in full compliance with any applicable Environmental Law.
<br />C. Trustor shall immediately 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. Trustor shall immediately notify Beneficiary in writing as soon as Tmstor 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.
<br />
<br />18.
<br />
<br />CONDEMNATION. Tmstor will give Beneficiary prompt notice of any pending or threatened action, by private or puhlic
<br />entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. '!rustor
<br />authorizes Beneficiary to intervene in Trustor's name in any of the above described actions or claims. Trusto~ assIgns to
<br />Beneficiary the proceeds of any award or claim for damages connected with ~ condemn~tion or other takl~lg of. all, or a~lY
<br />part of the Property. Such proceeds shall be considered payments and Will be applied as proVIded !n tillS Security
<br />Instmment. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or
<br />other I ien document.
<br />
<br />INSURANCE. Tmstor shall keep Pr?perty insured ag~inst los~ l~y fire, flood, theft an~ ot~er h.azards and risks reasonably
<br />associated with the Property due to Its type and locatIOn. ThIS msurance shall be. mamtamed III the amounts. and for the
<br />periods that Beneficiary requires. What Beneficiary requires pursuant to the precedmg sente~ce can chan&~ .durlng the term
<br />of the loan. The insurance carrier providing the insurance shall be chosen by Tmstor subject to Benehclary.'s approval,
<br />which shall not be unreasonably witWleld. If Tmstor fails to maintain the coverage descri.bed above, Belleficla~y may,. at
<br />Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property accordmg to the terms of tillS Security
<br />Instrument.
<br />
<br />All insurance policies and renewals shall be acceptabl~ to B~neficiary. and shal~. i!lclude a standar~l "mortgag~ cl~use" and,
<br />where applicable, "loss payee clause." Trustor shall Imme(hat~ly notIfy BenefICiary .of cance~lat1on or .terml!l~tlon of the
<br />insurance. Beneficiary shall have the right to hold the pohcles and renewals. It BenefiCiary reqUlres, . I r~st()r s\lall
<br />imt~ediately ~ive to Benefi~iary all recei'p~s of paid p~e.miums and renewal notices. .Upon loss, 'rrustor. shall gIve unmedlate
<br />notIce to the Illsurance carner and BenefIciary. BenefICIary may make proof of loss If not made Immediately hy Trustor.
<br />
<br />19.
<br />
<br />~ 0 1994 Bankers SySloms, Inc" St. Cland, MN Form RE-DT-NE 1/3017002
<br />
<br />.. -C165(NEII03011
<br />@
<br />
<br />F' <.
<br />
<br />k~ (page 3 of 4/
<br />
<br />"'1/~
<br />~ ". .
<br />(
<br />
|