|
<br />a ','
<br />r. "i' ~ ,,'
<br />
<br />200700058
<br />
<br />Financial Reports and Additional Documents. Trustor will provide to Beneficiary. upon re.quest, any ~inancial sta~e!llent
<br />or information Beneficiary may deem reasonably nccessary. Trustor agrees to sign, dehver, and file any ad~lt1~mal
<br />documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve Trustor's obhgatlOns
<br />under this Security Instrument and Beneficiary's lien status on the Property.
<br />
<br />6. WARRANTY OF TITLE. Trustor warrants that Trustor is or will be lawfully scized of the e~tate conveyed by this
<br />Security Instrument and has the right to irrevocably grant, convey, and scll the Property to Trustee, III trust, wtth power of
<br />sale. Trustor also warrants that the Property is unencumbered, except for cncumbrances of record.
<br />
<br />7. DUE ON SALE. BenefIciary may, at its option, decl~re the entire balance of the Secured Debt to. be immediately ~ue .and
<br />payable upon the creation of, or contract for the creatlOn of, a transfer or sale of all or any part of the Property. ThiS nght
<br />IS subject to the rcstrictions imposed by federal law (12 C.F.R. 591), as applicable.
<br />
<br />8. DEFAULT. Trustor will be in default if any of the following occur:
<br />
<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.
<br />
<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.
<br />
<br />9.
<br />
<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 followip.g: (a) Trustor fail~ to maintai,n required ins!l~ance
<br />on the Property; (b) Trustor transfers the Property; (c) Trustor commits waste or otherWise destructIvely uses or falls to
<br />maintain the Property such that the action or inaction adversely affects Beneficiary's security; (d) Trustor fails to pay taxes
<br />on th~ Proper~y or otherwise fails to act and there~y cause~. a lien to be filed against the Pr~erty th~t is senior to .!h~ li~n
<br />of thiS Secunty Instrument; (e) a sole Trustor dies; (f) If more than one Trustor, any frustor dies and BenefiCIary s
<br />security is adversely affected; (g) the Pr~)perty is taken through eminent..d?ma,in;. (h) a judgm~nt is ~'iled. against Tr~stor and
<br />subjects Trustor and the Property to actlOn that adversely affects BenefiCiary s mterest; or (I) a pnor henholder forecloses
<br />on the Property and as a result, Beneficiary's interest is adversely affected.
<br />
<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 and
<br />regulations.
<br />
<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 />cure, or other noticcs and may establish time schedules for foreclosure actions. Each Trustor requests a copy of any notice
<br />of default and any notice of sale thereunder be mailed to each Trustor at the address provided in Section I above.
<br />
<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 default or anytime
<br />thereafter.
<br />
<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 of
<br />the proposed sale.
<br />
<br />Upon sale of th,e 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, asscssments and prior encumbrances and interest
<br />thereon, and the principal and interest on the Secured Debt, paying the surplus, if any, to Trustor. Bcncficiary may
<br />purchase the Property. The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein.
<br />
<br />The acceptance by Beneficiary of any sum in payment or partial payment on the Secured Debt aftcr the balance is due or is
<br />accelerated or after foreclosure proceedings arc filed shall not constitute a waiver of Benel1ciary's right to require complcte
<br />cure of any existing default. By not exercising any remedy on Trustor's default, Beneficiary docs not waive Beneficiary's
<br />right to latcr consider the event a default if it happens again.
<br />
<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 performing such
<br />~ovenants or protecting its security interest in the Property. Such expenses mclude, but are not limited to, fees incurred for
<br />lllspecting, preserving, or otherwise protecting the Property and Beneficiary's security interest. These cxpenses are payable
<br />on demand and will bear interest from the date of payment until paid in full at the highest rate of interest in effect as
<br />provid~d in the t~rms of thc ~ecured ~~~t. Trus.tor agrees to p~y all costs .and exp.enses incurred by, Beneficiary in
<br />~ollectmg, e1,1forclllg or protectlllg Benehclary s nghts and remedies under thiS Sccunty Instrument. TIllS amount may
<br />mclude, but IS not hmited to, Trustee's fees, court costs, and other legal expenscs. To the extent permitted by thc United
<br />States Bankruptcy Code, Trust~)~ ag~ee~ t9 p'ay the reasonable attorneys' fees B~neficiary incurs to collect the Se~ured Debt
<br />as awarded by any court exerclsmg JunsdIctlOn under the Bankruptcy Code. This Secunty Instrument shall remam in effect
<br />until released. Trustor agrees to pay for any recordation costs of such release.
<br />
<br />11.ENVIRO~MEN'r~L-:LAWS- AND HAZ~RDOU~- SUBSTANCES. As used in this set:1ion,(l) Environmental Law
<br />means, Without hmlta110n, the ComprehenSive EnVIronmental Response, Compensation and Liability Act (CERCLA, 42
<br />U.~..C. 960~ et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general
<br />opllllons or IIlterpretive letters concer~ing th,,: pub~ic health, safety, welfar~, environment or a hazardous sl!bstance; ,and (2)
<br />Hazardo~s ,Substa!1ce means any tOXIC, radlOactIve or hazardous matenal, waste, pollutant or contammant which has
<br />charactenstlcs which render the substance dangerous or potentially dangerous to tIle public health safely 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. ' ,
<br />
<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and acknowledged in wntmg to Beneficiary, no Hazardous Substance is or will be
<br />located, stored or released on or iJ?- the Property. T)1is I:estriction does not apply to small quantities of Hazardous
<br />Substances that. arc gen~rally recoglllzed to be appropnat~ ~or the norm!:ll.use and mallltenance of thc Property.
<br />B. Except as previously disclosed and acknowledged III wfltmg to BenefiCiary Trustor and every tenant have been are
<br />~nd shall rema,in in ~ll compli~nce with..aJ?-Y applicable Environmental Law. ' , ,
<br />C. frustor 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 v.iolati<?n (?f any Environ~ental Law. concerning the Property. In such a~
<br />event, Trustor shall take all necessary remedial action III accordance w,1th any EnVironmental Law.
<br />
<br />(pflge 3 of 41
<br />
<br />~~ @ 1994 B'".ers Systems, 1M" SI, Cloud. MN rorm OCp.nEOT-NE S/lO/200S
<br />
|