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<br />200602986
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<br />Financial Reports a...d Additio~al Documents. Trustor will provide to Beneficiary upon request, any financial
<br />stat~f!1ent or mformatlOn Ben~ficl3!Y may deem re~sonably necessary. Trustor agrees to sign, deliver, and file any
<br />additiOnal documents or certificatIOns that Beneficiary may consider necessary to perfect continue and preserve
<br />Trustor's obligations under this Security Instrument and Beneficiary's lien status on the Property. '
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<br />6. W ~ANTY OF TITLE. Tru~tor wa~rants that Trustor is or will be lawfully seized of the estate conveyed by this
<br />Secunty Instrument and has the nght to Iffevoc~bly grant, convey, and sell the Property to Trustee, in trust, with power
<br />of sale. Trustor also warrants that the Property IS unencumbered, except for encumbrances of record.
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<br />7. DUE ON SALE. Beneficiary may, at its option, declare the entire balance of the Secured Debt to be immediately due
<br />and payable upon the creation of, or contract for the creation of, a transfer or sale of the Property. This right is subject
<br />to the restrictions imposed by federal law (12 C.P.R. 591), as applicable.
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<br />8. 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
<br />that 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 to make a payment
<br />when due.
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<br />_~y. Any action or in~tionby the Borrower -or Trustor occurs thai adversely affects the Property or Beneficiary's
<br />~Ights m the Property. This includes, but is not limited to, the following: (a) Trustor fails to maintain required
<br />msurance on the Property; (b) Trustor transfers the Property; (c) Trustor commits waste or otherwise destructively uses
<br />or fails to maintain the Property such th~t the.action or inaction adversely affe.cts Beneficiary's s~curity; (d) Trustor fails
<br />to l?ay taxes o.n the Pr?perty ~r otherWise faIls to act and thereby cause~ a hen to be filed agamst the Property that is
<br />semor to the hen of thiS Secunty Instrument; (e) a sole Trustor dies; (f) If more than one Trustor, any Trustor dies and
<br />Be":eficiary's security i~ adversely affected; (g) the Property is taken through eminent domain; (h) a judgment is filed
<br />~gamst Trustor and subjects Trustor and the Property to action that adversely affects Beneficiary's interest; or (i) a prior
<br />henholder forecloses 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 permitted under federal laws
<br />and regulations.
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<br />9. 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
<br />Trustor is in default. In some instances, federal and state law will require Beneficiary to provide Trustor with notice of
<br />the right to cure, or other notices and may establish time schedules for foreclosure actions. Each Trustor requests a copy
<br />of any notice of default and any notice of sale thereunder be mailed to each Trustor at the address provided in Section I
<br />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
<br />become Immediately due and payable, after giving notice if required by law, upon the occurrence of a default or
<br />anytime 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 />separate parcels at public auction to the highest bidder for cash and convey absolute title free and clear of all right, title
<br />and interest of Trustor at such time and place as Trustee designates. Trustee shall give notice of sale including the time,
<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
<br />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
<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
<br />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
<br />is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Beneficiary's right to require
<br />complete cure of any existing default. By not exercising any remedy on Trustor's default, BenefiCiary does not waive
<br />Beneficiary's right to later consider the event a default if it happens again.
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<br />10. EXPENSES; AnV ANCES 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 performing such
<br />covenants or protecting its security interest in the Property. Such expenses include, but are not limited to, fees incurred
<br />for inspecting, preserving,. or othe~wise protecting the Property and Ben~fici~ry.'s security inte~est. These ex\?enses a~e
<br />payable on demand and Will bear mterest from the date of payment until patd 10 full at the hl~hest rate of mtere~t m
<br />effect as \?rovided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses mcurred by BenefiCiary
<br />in collectmg, enforcing or protecting Beneficiary's rights and remedies under this Security Instrument. This ~mount may
<br />include, but is not limited to, Trustee's fees, court costs, and other legal expenses. To the extent pemutted by the
<br />United States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Beneficiary incurs to collect the
<br />Secured Debt as awarded by any court exercising jurisdiction under the Bankruptcy Code. This Security Instrument shall
<br />remain in effect 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 used in this section, (1) Environmental Law
<br />means without limitation the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 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, welfa~e, environment or a hazardous. substan~c; and
<br />(2) Hazardous Substance means any toxic, radiOactive or hazardous matenal, waste, pollut8!1t or contalll1nant which has
<br />characteristics which render the substance dangerous or potentially dangerous to the pubhc 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 Environmental Law.
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<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. Thi~ restriction does not apply to ~mall quantities of Hazardous
<br />Substances that are generally recognized to be appropnate for the normal use and mamtenance of the Property.
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<br />B. Except as previously disclosed and acknowledged in writing to Beneficiary, Trustor and every tenant have been,
<br />are, and shall remain in full compliance with any applicable Environmental Law.
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<br />C. Trustor shall immediately notify Beneficiary if a release or threatened release of a Haz~rdous Substance occurs on,
<br />under or about the Property or there is a violation of any EnvirOIltnental Law concermng the Property. In such an
<br />event, Trustor shall take all necessary remedial action in accordatlcewith any Ehvironment~l Law.
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<br />(page 3 of 41
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<br />01994 Bankers Systems, Inc" 51. Cloud, MN Form OCP-REDT-NE 1/13/99
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<br />G-C4651NE1199021.02
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