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<br />~00703574
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<br />14. DEFAULT. Trustor will be in default if any party obligated on the Secured Debt fails to make payment when due. Trustor
<br />will be in default if a breach occurs under the terms of this Security Instrument or any other document executed for the
<br />~urp~se. of creatin~, securing or guarantying the ~ecure~ Debt. A good faith belief by Beneficiary that Beneficiary at any
<br />time IS msecure With respect to any person or enttty obhgated on the Secured Debt or that the prospect of any payment or
<br />the value of the Property is impaired shall also constitute an event of default.
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<br />15. REMEDIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide Trustor with
<br />~ot~ce .of th~ right to cur~ or other notices and may establish time schedulc~ for fo.reclosure acti~ns. Subject to these
<br />hmltatlOns, If any, BenefiCiary may accelerate the Secured Debt and foreclose thiS Secunty Instrument m a manner provided
<br />by law if Trustor is in default.
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<br />At the option of Beneficiary, all or any part of the agreed fees and charges, accrued interest and principal shall become
<br />immed.i~tely due an~ payable, after giving notice if requir~d by la~, upon the occurrence of a default or anytime thereafter.
<br />In addition, BenefiCiary shall be entitled to all the remedies proVided by law, the terms of the Secured Debt, this Security
<br />Instrument and any related documents, including without limitation, the power to sell the Property.
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<br />If there is a default, Trustee shall, in addition to any other permitted remedy, at the request of the Beneficiary, advertise
<br />ap.d sell the Property as a ~hole.or in separate parcels at public auc~ion to the highest bidder for cash and convey absolute
<br />tltl!? free and c~ear o~ all ngh~, title and mterest of Trustor at such tlm~ ~d place as Trustee designates. Trustee shall give
<br />notice of sale Illcludmg the time, terms and place of sale and a descnptlOn of the property to be sold as required by the
<br />applicable law in effect at the time 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 Beneficiary
<br />all moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest thereon, and the
<br />principal and interest on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may purchase the Property.
<br />The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein.
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<br />All remedies are distinct, cumulative and not exclusive, and the Beneficiary is entitled to all remedies provided at law or
<br />equity, whether or not expressly set forth. The acceptance by Beneficiary of any sum in paxment or partial payment on the
<br />Secured Debt after the balance IS due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver
<br />of Beneficiary's right to require complete cure of any existing default. By not exercising any remedy on Trustor's default,
<br />Beneficiary does not waive Beneficiary's right to later consider the event a default if it continues or happens again.
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<br />16. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohibited by law, Trustor agrees to pay all of Beneficiary's expenses if Trustor breaches any covenant in this Security
<br />Instrument. Trustor will also pay on demand any amount mcurred by Beneficiary for insurin~, inspecting, preserving or
<br />otherwise protecting the Property and Beneficiary's security interest. These expenses will bear mterest from the date of the
<br />payment until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Trustor agrees
<br />to pay all costs and expenses incurred by Beneflciary in collecting, enforcing or protecting Beneficiary's rights and
<br />remedies under this Security Instrument. This amount may include, but is not limited to, attorneys' fees, court costs, and
<br />other legal expenses. This Security Instrument shall remain in effect until released. Trustor agrees to pay for any
<br />recordation costs of such release.
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<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (I) 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, welfare, environment or a hazardous substance; and (2)
<br />Hazardous Substance means any toxic, radioactive or hazardous 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 />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 />18.
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<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and acknowledged in writing to Beneflciary, no Hazardous Substance is or will be
<br />located, stored or released on or in the Property. This restriction does not apply to small quantities of Hazardous
<br />Substances that are generally recognized to be appropriate for the normal use and maintenance of the Property.
<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.
<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.
<br />D. Trustor shall immediately notify Beneflciary in writing as soon as Trustor has reason to believe there is any pending
<br />or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous
<br />Substance or the violation of any Environmental Law.
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<br />CONDEMNATION. Trustor will give Beneflciary prompt notice of any .pendin~ or threate~ed action, by private or public
<br />entities to purchase or take any or all of the Property through condenmatlOn, eml!1ent dor.nalll, or a~y other means. Trustor
<br />authorizes Beneficiary to intervene in Trustor's name in any of the abov~ descnbed actto.ns or clmms. Trustor assigns to
<br />Beneficiary the proceeds of any award or claim for damages connected with ~ condenm~tlOn or other takl~g o~ all or a~y
<br />part of the Property. Such proceeds shall be considered payments ~d Will be apphed as prOVided !n thiS Secunty
<br />Instrument. This assignment of proceeds is subject to the terms of any pnor mortgage, deed of trust, secunty agreement or
<br />other lien document.
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<br />19. INSURANCE. Trustor shall keep Property insured ag~inst los~ ~y fire, flood, theft an~ ot~er h~zards and risks reasonably
<br />associated with the .Property. due to its type ';ill:d locatto~. ThiS msurance shall be. mamtamed m the amounts. and for the
<br />periods that BenefiCiary reqUIres. What BenefiCiary reqUlres pursuant to the precedmg sente~cecan chan~e .dunng the term
<br />of the loan. The insurance carrier providing the insurance shall be chosen by Trustor su.bJect to Beneftcta~y:s approval,
<br />which shall not be unreasonably withheld. If Trustor fails to maintain the coverage descnbed above, Beneflcla~ may,. at
<br />Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property according to the terms of thiS Secunty
<br />Instrument.
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<br />All insurance policies and renewals shall be acceptabl~ to B~neficiary.and shal!. i!lclude a standar~ "mortgag~ cl~use" and,
<br />where applicable, ':loss payee clause." T.rustor shalllmmedlat~ly notify Beneftclary of canceVatlOn or .termmatlOn of the
<br />insurance. BenefiCiary shall have the nght to .hold t~e pohcles and rene~als. If BenefiCiary reqUIres, .Trl!stor s~all
<br />immediately give to Benefi~iary all receip~s of pmd pre!lllUms and renewal notices. ~pon loss, Trustor. shall give Immediate
<br />notice to the msurance carner and Beneficiary. Beneflclary may make proof of loss If not made Immediately by Trustor.
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<br />(page 3 of 41
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<br />~ 0 1994 Bankers Systems, Ine" St. Cloud, MN Form RE-DT-NE 1/30/2002
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<br />. -C165(NE) 103011
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