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<br />200602:284
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<br />6.
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<br />Fin~ncial ~eports an~ .Additional Documents. Trustor will provide to Beneficiary upon request, any financial statement
<br />or mformatlOn B~~efl~lary may dee!ll-. reasonably necessary. Trustor agrees to sign, deliver, and file any additional
<br />documents or certifications that Beneficiary may consider necessary to perfect continue and preserve Trustor's obligations
<br />under this Security Instrument and Beneficiary's lien status on the Property.' ,
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<br />W A~RANTY OF TITLE. Tru~tor w~rrants that Trustor is or will be lawfully seized of the e~late conveyed by this
<br />Secunty Instrument and has the nght to urevoeably grant, convey, and sell the Property to Trustee, m trust, wtth power of
<br />sale. Trustor also warrants that the Property is unencumbered, except for encumbrances of record.
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<br />DUE ON SALE. Beneficiary may, at its option, declare the entire balance of the Secured Debt to be itmnediately due and
<br />payable upon the creation of, or contract for the creation of, a transfer or sale of all or any part of the Property. This right
<br />tS subject to the restrictions imposed by federal law (12 C.P.R. 591), as applicable.
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<br />DEFAULT. Trustor will be in default if any of the following occur:
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<br />Fraud. Any Consumer Borrower engages in fraud or material misrepresentation in connection with the Secured Debt that
<br />is an open end home equity plan.
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<br />Payments. Any Consumer Borrower on any Secured Debt that is an open end home equity plarr--fails to make a payment
<br />w~~. _
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<br />Property. Any action or inaction by the Borrower or Trustor occurs that adverscly affects the Property or Beneficiary's
<br />rights in the Property. This includes, but is not limited to, the following: (a) Trustor fails to maintain required insurance
<br />on the Property; (b) Trustor transfers the Property; (c) Trustor commits waste or otherwise destructively uses or fails to
<br />maintain the Property such that the action or inactlOn adversely affects Beneficiary's security; (d) Trustor fails to pay taxes
<br />on the Property or otherwise fails to act and thereby causes a lien to be filed against the Property that is senior to the lien
<br />of this Security Instrument; (e) a sole Trustor dies; (f) if more than one Trustor, any Trustor dies and Beneficiary's
<br />security is adversely affected; (g) the Property is taken through eminent domain; (h) a judgment is filed against 'frustor and
<br />sUbje. cts Trustor and the Property to action that adversely affects Benefic.iary's interest; or (i) a prior lienholder forecloses
<br />on the Property and as a result, Beneficiary's interest is adversely affected,
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<br />Executive Officers. Any Borrower is an executive officer of Beneficiary or an affiliate and such Borrower becomes
<br />indebted to Beneficiary or another lender in an aggregate amount greater than the amount pemlitted under federal laws and
<br />regulations,
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<br />9. REMEDIES ON DEFAULT. In addition to any other remedy available under the tenns of this Security Instrument,
<br />Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if Trustor
<br />is in default. In sl?me instances, fede~al a,?-d state law will relJuire Benefici~ry to I?rovide Trustor with notice of ~he right. to
<br />c~re, or other notices. and may establtsh tune sc~edules for ~o,reclosure. actIons, Each ~rustl?r r,equpsts a copy oj any nouce
<br />of default and any notice of sale thereunder be mailed to cach 1 rustor at the address proVided 111 Sechon 1 above,
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<br />7.
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<br />8.
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<br />At the .option of the Beneficiary, a~1 or ~ny part or th~ agree~ fees and charges, accrued interest and~ principal shall becl?me
<br />nnmcdlately due and payable, after glvmg notice If reqUIred by law, upon the occurrence of a default or anytlme
<br />thereafter,
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<br />_ _Jf therQ. is.' a _llefault, rru,-~tee ,sha!l, at the reques~ of t1~e Benefi.c.iary., .a.dvertis. .e... an...d... . ~e.lI.. t.he... p.~.. roo e. r.ty. a.'. s.... a w.. ....h. ~)Ic.'..
<br /> o.....r......i.n.
<br />sepa~ate parcelS at publIc auctlo~tod1ehigiwst,biader for~' amJ.~w;ey--abs.QJ:u:w,;,i.lht-#~. '.cl\l.lH :-of-~ ,rj$, title, ,_-
<br />and lllterest of Trustor at such time and place as Trustee desIgnates. Trustee shalI give notIce 0 sale lllc1udtng ~ille ti.-ne;
<br />terms and place of sale and a description of the property to be sold as required by the applicable law in effect at the time of
<br />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
<br />Beneficiary all moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest
<br />thereon, and the principal and interest on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may
<br />purchase the Property. The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein,
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<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
<br />cure of any existing default. By not exercising any remedy on Trustor's default, Beneficiary docs not waive Beneficiary's
<br />right to later consider the event a default if it happens again,
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<br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. If Trustor breaches
<br />any covenant in this Security Instrument, Trustor agrees to pay all expenses Beneficiary incurs in perfonning such
<br />~ovena!lts or prote~ting its security interest .in the Property, Such expeJ?S~s mclude, ~ut, arc not limited to, fees incurred for
<br />lllspectmg, preservl.ng, or otherWise protectlllg the Property and BenefiCIary's secunty mteresL These expenses are payable
<br />on demand and wilI bear interest from the date of payment until paid in fulI at the highest rate of interest in effect as
<br />provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses incurred by' Beneficiary in
<br />~ollecting, e~forcin~ (~r prote~t,ing Beneficiary's rights and remedies under this Security Instrument.. '1 his amount I!lay
<br />mclude, but IS not hmlted to, I rustee's fees, court costs, and other legal expenses, To the extent pemlltted by the tJmted
<br />States Bankruptcy Code, Trust~~ ag~ee~ t(? pay the reasonable attorneys: fees B~ne~iciary incurs to collect the Se?ur,ed Debt
<br />as awarded by any court exerclsmg JunsdlctlOn under the Bankruptcy Code, ThiS Seeunty InstrUlnent shalI remaLU III effect
<br />until released, Trustor agrees to pay for any recordation costs of such release.
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<br />11. ENvmONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in thi~: section, (1) EnviromnenlaJ Law
<br />means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42
<br />U, S, C. 96(H 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, enviromnent or a hazardous substance; and (2)
<br />Hazardous Substance., means any toxic, radioactive or hazardous material, waste, polIutant or contaminant which has
<br />characteristics . which render the substance dangerous or potentially dangerous to the public health, safety, welfare or
<br />environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />'''hazardous waste" or "hazardous substance" under any E~vironmental Law,. .
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<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and acknowledged in writing toBeneficiary, no IIazardous Substance is or will be
<br />located, stored or released on or i':lthe Property. T.his ~estrktidn does not apply.40 small quantities of Hazardous
<br />Substances that, are gent;rally recogmzed to be appropnatt; ~or the nor~l ,use and fflamtenance of the ProperlY.
<br />B. Except as preVIOusly disclosed and acknowledged m wntLU.g to BenefICIary, Trustor and every tenant have been, are,
<br />and shalI remain in full compliance with any applicable 'Enviromnental Law, . "
<br />C, Trustor shall inunediately 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 ProperlY, In such an
<br />event, Trustor shall take all necessary remedial action in accordance with any Environmental Law.
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<br />j"'-'] ( (page 3 of 4)
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<br />~@ @ 1994 Sankers Systems. Ino" St, Cloud, MN Form OCP,REDT,NE 5/10/2005 ~~
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