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<br />200603414
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<br />14. DEFAULT. Trustor will be in default if any party obligated 011 the Secured Debt fails to make payroellt whell due. Trustor
<br />will be ill default if a breach occurs ullder the teons of this Security IllStrumellt or allY other documellt executed for the
<br />purpose of creatillg, securing or guarantying the Secured Debt. A good faith belief by Belleficiary that Beneficiary at any
<br />time is illSecure with respect to allY persoll or elltity obligated 011 the Secured Debt or that the prospect of any payment or
<br />the value of the Property is impaired shall also cOllStitute an event of default.
<br />15. REMEDIES ON DEFAULT. In some illStances, federal alld state law will require Beneficiary to provide Trustor with
<br />notice of the right to cure or other notices and may establish time schedules for foreclosure aetiollS. Subject to these
<br />limitatiollS, if any, Beneficiary may accelerate the Secured Debt and foreclose this Security Instrumellt in a manner
<br />provided by law if Trustor is in default.
<br />At the optioll of Beneficiary, all or any part of the agreed fees alld charges, accrued interest alld principal shall become
<br />immediately due and payable, after giving Ilotice if required by law, upon the occurrence of a default or anytime
<br />thereafter. III addition, Belleficiary shall be entitled to all the remedies provided by law, the teons of the Secured Debt,
<br />this Security IllStrument alld any related documents, including without limitatioll, the power to sell the Property.
<br />If there is a default, Trustee shall, in additioll to any other peonitted 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 cOllvey absolute
<br />title free alld clear of all right, title and interest of Trustor at such time and place as Trustee designates. Trustee shall give
<br />notice of sale illcluding the time, teons and place of sale and a description of the property to be sold as required by the
<br />applicable law ill effect at the time of the proposed sale.
<br />Upon sale of the Property alld to the extent Ilot prohibited by law, Trustee shall make and deliver a deed to the Property
<br />sold which collveys absolute title to the purchaser, and after first paying all fees, charges alld costs, shall pay to
<br />Beneficiary all moneys advanced for repairs, taxes, illSurallce, liens, assessments and prior encumbrances alld interest
<br />thereon, and the principal alld 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 thereill.
<br />All remedies are distinct, cumulative and not exclusive, and the Belleficiary is entitled to all remedies provided at law or
<br />equity, whether or not expressly set forth. The acceptance by Beneficiary of any sum ill payment or partial payment on the
<br />Secured Debt after the balallce is due or is accelerated or after foreclosure proceedings are filed shall Ilot cOllStitute a
<br />waiver of Beneficiary's right to require complete cure of allY existing default. By not exercisillg allY remedy on Trustor's
<br />default, Belleficiary does not waive Beneficiary's right to later consider the event a default if it continues or happens agaill.
<br />16. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohibited by law, Trustor agrees to pay all of Belleficiary' s expellSes if Trustor breaches any covenallt in this Security
<br />Instrument. Trustor will also pay on demand any amount incurred by Beneficiary for illSUring, inspectillg, preservillg or
<br />otherwise protecting the Property alld Beneficiary's security interest. These expenses will bear interest from the date of the
<br />paymellt until paid in full at the highest illterest rate in effect as provided in the teons of the Secured Debt. Trustor agrees
<br />to pay all costs and expellSes incurred by Belleficiary in collectillg, enforcing or protecting Belleficiary's rights and
<br />remedies ullder this Security Instrument. This amount may include, but is not limited to, attorneys' fees, court costs, and
<br />other legal expenses. This Security IllStrument shall remain ill effect until released. Trustor agrees (0 pay for allY
<br />recordation costs of such release.
<br />17. ENVffiONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this sectioll, (1) Environmelltal Law
<br />means, without limitation, the ComprehellSive Environmental Response, Compensation and Liability Act (CERCLA, 42
<br />u.s.e. 9601 et seq.),alld all other federal, state and local laws, regulations, ordinallces, court orders, attorney general
<br />opinions or interpretive letters concernillg the public health, safety, welfare, environment or a hazardous substance; and (2)
<br />Hazardous Substallce means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has
<br />characteristics which render the substance dangerous or potentially dallgerous to the public health, safety, welfare or
<br />environment. The teon includes, without limitation, allY substances defilled as "hazardous material," "toxic substances,"
<br />"hazardous waste" or "hazardous substallce" under any Ellvironmental Law.
<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and acknowledged in writillg to Beneficiary, no Hazardous Substance is or will be
<br />located, stored or released on or in the Property. This restrictioll does not apply to small qualltities of Hazardous
<br />Substances that are generally recognized to be appropriate for the noonal use and maintenance of the Property.
<br />B. Except as previously disclosed and acknowledged in writing to Belleficiary, Trustor and every tenant have beell, are,
<br />and shall remaill in full compliallce with any applicable Environmental Law.
<br />C. Trustor shall immediately notify Beneficiary if a release or threatelled release of a Hazardous Substance occurs 011,
<br />under or about the Property or there is a violatioll of any Environmental Law cOllcerning the Property. J n such all
<br />event, Trustor shall take allllecessary remedial action in accordance with any Ellvironmental Law.
<br />D. Trustor shall immediately notify Beneficiary in writing as SOOIl as Trustor has reason to believe there is allY pending
<br />or threatened illvestigation, claim, or proceedillg relating to the release or threatened release of any Hazardous
<br />Substance or the violation of allY Environmelltal Law.
<br />18. CONDEMNATION. Trustor will give Beneficiary prompt notice of allY pending or threatened actioll, by private or public
<br />entities to purchase or take allY or all of the Property through condemnation, emillellt domain, or allY other meallS. Trustor
<br />authorizes Beneficiary to intervelle in Trustor's name in any of the above described actions or claims. Trustor assigns to
<br />BellCficiary the proceeds of any award or claim for damages connected with a cOlldemnation or other taking of all or any
<br />part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security
<br />IllStrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or
<br />other lien document.
<br />19. INSURANCE. Trustor shall keep Property insured agaillSt loss by fire, flood, theft alld other hazards and risks reasonably
<br />associated with the Property due to its type and location. This insurance shall be maintained ill the amoullts and for the
<br />periods that Beneficiary requires. What Lender requires pursuant to the preceding sentence call change durillg the teon of
<br />the loall. The illSurallce carrier providing the insurallce shall be chosen by Trustor subject to Beneficiary's approval, which
<br />shall not be unreasonably withheld. If Trustor fails to maintain the coverage described above, Belleficiary may, at
<br />Belleficiary's OptiOIl, obtain coverage (0 protect Beneficiary's rights in the Property according to the teons of this Security
<br />Instrument.
<br />All illSurallce policies alld renewals shall be acceptable to Beneficiary and shall illclude a stalldard "mortgage clause" alld,
<br />where applicable, "loss payee clause." Trustor shall immediately Ilotify Beneficiary of cancellation or teonination of the
<br />illSurance. Belleficiary shall have the right to hold the policies and rellewals. If Beneficiary requires, Trustor shall
<br />immediately give to Beneficiary all receipts of paid premiums alld renewal Ilotices. UpOIl loss, Trustor shall give
<br />immediate notice to the illSurallce carrier alld Beneficiary. Beneficiary may make proof of loss if Ilot made immediately by
<br />Trustor.
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<br />~ @1994 Bank... Systems, lno" St. Cloud, MN Form RE-DT-NE 113012002
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