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<br />200602553
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<br />Financial Reports and Additional Documents. Trustor will provide to Beneficiary upon request, any financial statement
<br />or information Beneficiary may deem reasonably necessary. Trustor a~rees 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 />':" ~RANTY OF TITLE. Tru~tor w~rrants that Trustor is or will be lawfully seized of the e~tate conveyed by this
<br />Secunty Instrument and has the nght to Iffevocably grant, convey, and sell the Property to Trustee, 111 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. Ben~ficiary may, at its ?ption, decl~re the entire balance of th~ Secured Debt to be immediately" ~ue .and
<br />payable upon the creahon of, or contract for the creatIOn of, a transfer or sale of all or any part of the Property. I hiS nght
<br />IS subject to the restrictions imposed by federal law (12 C.F.R. 5(1), 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 plan fails 10 make a payment
<br />whet! due.
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<br />Property. Any action or inaction by the Borrower or Trustor occurs that adversely 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 thc Property; (c) Trustor commits waste or otherwise destructively uses or fails to
<br />maintain the Property such that the action or inachon 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; (c) 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 Trustor and
<br />subjects Trustor and the Property to .a~tion t~at adv~rsely affects Bene, ficiary's interest; or (i) a prior lienholder forecloses
<br />on lhe Property and as a result, BenefiCiary's mterest 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 penlliued under federal laws and
<br />regulations.
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<br />REMEDIES ON DEFAULT. In addition to any other remedy available under the terms 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 some instances, federal and state law will require Beneficiary to provide Trustor with notice of the right to
<br />e~re, ,or other notices. and, may establish time sc~edules for fl~reclosure actions. Each '~rust?r ~equ.ests a copy of any notice
<br />of default and any notice of sale thereunder be matled to each 1 rustor at the address prOVided III Section 1 above.
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<br />At the option of the Beneficiary, all or any part of the agreed fees and charges, accrued interest and principal shall become
<br />immediately due and payable, after givmg notice if required by law, upon the occurrence of a del ault or anytime
<br />thereafter.
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<br />If there is a default, Trustee shall, at the request of the Beneficiary, advertise and sell the Property as a whole or in
<br />sepa~ate parcels at public auctiol,l to the highest bidder for cash and convey. absolute, title f~ee and c1e,!-r of aJl_right, ,title_
<br />llii6---fflt.eresf of-TrttSffir--ftt--!fficft- ttttte attd pl~,c.:.. it/! 'I't'Mtt!e--deStgnates. Tru~~lW!' tmll....L-"f!oa~--lhe time,
<br />terms and place of sale and a description of the- property to be sold as required by the applicable law in effect althe 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 />lhereon, 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 rigbt to require complete
<br />cure of any existing default. By not exercising any remedy on Trustor's default, Beneficiary does not waive Beneficiary I 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 S~curity !nstFument,. Trustor agrees}o pay all expenses Beneficiary i.nc~rs in p.crfo~ming su.ch
<br />~ovena!lts or prote~tmg its security Interest .m the Property. Such expe,:!s.cs mclude, ~ut. arc not limited to, lees lllcurred lor
<br />lllspectlllg, preservlllg, or otherWise protectlllg the Property and BenefiCiary's security lJ1terest. These expenses arc payable
<br />on demand and will bear interest from the date of payment until paid in full at the highest rate of interest in eTfect as
<br />provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses incurred by Beneficiary in
<br />~ollecting, eJ?forcing C!r prote~t:ing Beneficiary's rights and remedies under this S;?urity Instrument.. This amount I!lay
<br />lllclude, but is not lnmted to, I rustee's fees, court costs, and other legal expenses. 10 the extent permitted by the lJllIted
<br />States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Beneficiary incurs to collect tbe Secured Debt
<br />as awarded by any court exercising jurisdiction under the Bankruptcy Code. This Secunty Instrument shall remain in effect
<br />until released. Trustor agrees to pay for any recordation costs of such release.
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<br />11. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As us cd in this section, (I) Environmental Law
<br />means, without limitation, the Comprehensive Enviroumental Response, Compensation and Liability Act (CERCLA, 42
<br />U.S.C. 9001 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general
<br />opinions ur interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2)
<br />Hazardous Substance means any toxic, radioactive or haz. ardous material, waste, pollutant or contaminant which has
<br />characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or
<br />enviromnenl. The term inclndes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />"hazardous waste" or "hazardous substance" under any Enviromllental Law.
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<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and acknowledged in wntlllg to Beneficiary, no Hazardous Substance is or will be
<br />loeated, stored or released on or iJ? the Property. T.his restriction does not apply. to small quant ities of Hazardous
<br />Substances that. are gen~rally recogmzed 10 be appro'pnat~ for the n9on~l.use and mamtenance of the Property.
<br />B. Except as previ.ouslY dIsclosed a.nd acknOWledged. III wfltlllg to BenefiCiary, Trustor and every tenant have been, are,
<br />, ~~d shall rema.in in f~ll compIi!.lnce with ~~y applicable Environmental Law. ,
<br />C. I rustor shall mmlediately notIfy Beneftciary if a release or threatcned release of a Hazardous Substanee 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 />~ All aye 3 f 4)
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<br />~@ @ 1994 Sanko,. Systoms, Inc., St. Cloud, MN Form OCP-REDT-NE 5110/2005 ~
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