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<br />200703179
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<br />Financial Reports and Additional Documents. Trustor will provide to Beneficiary upon request, any financial statement
<br />or information B~!.lefi~iary may dee!TI, reasonably l)ecessary, Trustor a~rees to, sign, deliver, ami" file 3?y ad.diti~.lI1al
<br />documents or certifIcatIons that BenefIciary may consIder necessary to perfect, contmue, and preserve I rustor s oblIgatIons
<br />under this Security Instrument and Beneficiary's lien statns on the Property.
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<br />6. WARRANTY OF TITLE. Trustor warrants that Trustor is or will be lawfully seized of the estate conveyed by this
<br />Security Instrument and has the right to irrevocably grant, convey, and sell the Property to Trustee, in trust, wIth power of
<br />sale. Trustor also warrants that the Property is unencumbered, except for encumbrances of record.
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<br />7. DUE ON SALE. Bcn~ficiary may, at its option, decl~re the entire ~alance of th~ Secured Debt to, be immediately" (~ue .and
<br />payablc upon the creation ot, or contract for the creatIon ot, a transter or sale ot all or any part ot the Property. I hIS nght
<br />IS subject to the restrictions imposed by federal law (12 C.F.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 cngages 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 to make a payment
<br />when 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 the Properly; (c) Trustor commits waste or otherwise destructively uses or fails to
<br />maintain the Property such that the action or inactIOn 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; ([) 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 Proflerty toua~tion t~lat adv~rsely affects ~eneficiary's interest; or (i) a prior lienholder forecloses
<br />on the Property and as a resu t, Ilenellclary's mterest IS adversely atfected.
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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 lem.ler in an aggregate amount greater than Ihe amount permitted under federal laws and
<br />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 toreclose this Security Instrument in a manner provided by law if Trustor
<br />is in default. In s,?me instances, fede~al al~d state law will re9uire Benefici~ry to provi,d,e Trustor with notice of ,the right. to
<br />c,-!re, ,or otber notIces, and ,may establish tune sd~edules for foreclosure actIOns. Each I,fllst(?r requ.ests a copy of any notIce
<br />of default and any notIce 01 sale thereunder be malled to each Trustor at the address proVIded m Sectton I 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 />immed,iately due and payable, after givmg notice if required by law, upon the occurrence of a default or anytime
<br />thereafter.
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<br />If there is a default, Trustee shall, at the request of the Ileneficiary, advertise and sell the Prorerty as a whole or in
<br />separate parcels at public auction to the highest bidder for cash and convey absohHe title free am dear 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.
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<br />Upon sa!e of the Property and to the extent not prohibited by law, Trustee shall make and deliver a deed to the Property
<br />sold ':'I1.HCh conveys absolute title, to the. purchaser, . and after first paying all fees, ch~rges and costs, shall ,pay to
<br />BenefICIary all moneys advanced for repaIrs, taxes, msurance, hens, assessments and prior encumbrances and mterest
<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 foredosure proceedings are filed shall not constitute a waiver of Beneficiary's right to require complete
<br />c~lre of any eXisti,ng default. By not exercising any rem~dy on Trustor's default, Beneficiary does not waive Beneficiary's
<br />nght to later conSIder the event a detault If II happens agam.
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<br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COl,LECTION COSTS. If Trustor breaches
<br />any covenant in this Security Instrllment, Trustor agrees to pay all expenses Beneficiary incurs in performing such
<br />covenants or protecting its security interest in the Property. Such expenses mclude, but are not limited to, fees incurred for
<br />inspecling, preserving, or otherwise protecting the Property and Beneficiary's security interest. These expenses 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 />provided in the terIllS of the Secured Debt. Trustor agrees to pay all costs and expenses incurred tJy Beneficiary in
<br />~ollecting, el,lforcing (?r rrotecting B~neficiary's rights and remedies under this Security Instrument., This amount l!lay
<br />ll1dude, but IS not IImlte( to, Trustee s fees, court costs, and other Iel?al expenses. To the extent penmtted by the Ulllted
<br />States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys fees Beneficiary incurs to collect the Secured Debt
<br />as awarded by any court exercising jurisdiction under the Bankruptcy Code, This Security 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 SlJBSTANCES. As used in this section, (1) Environmental Law
<br />means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42
<br />V.S.C. 9601 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general
<br />opinions or interpretive letters concen~ing lht; pub~ic health, safety, welfar~, environment or a hazardous s':lbstance; .and (2)
<br />Hazardous Substance means any tOXIC, radIoactIve or hazardous material, waste, pollutant or contammant wluch has
<br />characteristics which render the substance dangerous or potentially dangerous to lfie public health, safety, welfare or
<br />environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />"hazardous wasle" 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 />I~)cated, stored or released on or it,l the Property. T.his ~estriction does not apply. to small quantities of Hazardous
<br />Substances that are generally recogmzed to be appropnate for the normal use and mamtenance of the Property.
<br />B. Except as previously disclosed and acknowledged 111 writing to Ileneficiary, Trustor and every tenant have been, are,
<br />and shall remain in full compliance with any applicable Environmental Law.
<br />C. Trustor 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 violation of any Environmental Law concerning the Property. In such an
<br />event, Trustor shall take all necessary remedial action in accordance with any Environmental Law.
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<br />(page 3 of 4)
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<br />~ @ 199<f Bankers Syslems, Ine.. St. Cloud, MN Form OCP-REDl--NE ~110n005
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