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<br />200705308
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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 creating, securing or guarantying the ~ecured Debt. A good faith belief by Beneficiary that Beneficiary at any
<br />ttme IS lllsecure with respect to any person or entity obligated 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 schedule~ for f~reclosure actions. Subject to these
<br />hlllltatlOns, If any, BeneficIary may accelerate the Secured Debt and foreclose thIS SeCUrIty Instrument in a manner provided
<br />by law if Trustor is in default.
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<br />~t the .option of Beneficiary, a~l or .a~y part .of !he ag~eed fees and charges, accrued interest and principal shall become
<br />ImmedIately due and payable, after gIVlllg notIce If reqUIred by law, 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 />~nd sell the Property as a .whole.or in separate parcels at public auc~ion to the highest bidder for cash and convey absolute
<br />tItle free and clear of all rIght, title and lllterest of Trustor at such tIme and place as Trustee designates. Trustee shall give
<br />notice of sale including the time, terms and place of sale and a description 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 s~le of the property an~ to the extent not prohibited by law, 'Trustee shall make and deliver a deed to the Prop~rty
<br />sold whIch conveys absolute tItle to the purchaser, and after first paYlllg all fees, charges and costs, shall pay to BeneflClary
<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. Ben. e.ficiary 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 payment 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; AnV ANCES 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 insuring, inspecting, preserving or
<br />otherwise protecting the Property and Beneficiary's security interest. These expenses will bear lllterest 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 Beneficiary 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, (1) Environmental Law
<br />means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42
<br />D.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 />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. 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 Beneficiary 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 />18. CONDEMNATION. Trustor will give Beneficiary 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 condemnatIOn, eml?ent dOI?alll, or a~y other means. Trustor
<br />authorizes Beneficiary to intervene in Trustor's name in any of the abov~ deSCrIbed act1~ns or claims. T!ustor assigns to
<br />Beneficiary the proceeds of any award or claim for damages connected With a condemnatlOn or other taking of all or any
<br />part of the Property. Such proceeds shall be considered payments a~d will be applied as provided ~n this Security
<br />Instrument. This assignment of proceeds is subject to the terms of any prIor mortgage, deed of trust, secUrIty agreement or
<br />other lien document.
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<br />19. INSURANCE. Trustor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably
<br />associated with the Property due to its type and location. This insurance shall be. maintained in the amounts. and for the
<br />periods that Beneficiary requires. What Beneficiary requires pursuant to the precedmg sente~ce can change .durIng the term
<br />of the loan. The insurance carrier providing the insuraJ?-ce shall.be ~hosen by Trustor sU.bJect to Beneficlal)'.'s approval,
<br />which shall not be unreas~:mably wIthheld. If Trustor.f~lls ~o ~alllt~1ll the coverage descn.bed above, Beneflcla~y may,. at
<br />Beneficiary's option, obtam coverage to protect BenefICIary s nghts m the Property accordmg to the terms of thiS Secunty
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<br />Instrument.
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<br />All insurance policies and renewals s~~1l be acceptabl~ to B~neficiary. and shall i~clude a standar~ "mortgag~ c1~use" and,
<br />where applicable, "loss payee clause. Trustor shall Immedlat~ly notIfy BenefiCiary of cance~latlOn or .terllllnatIOn of the
<br />insurance. Beneficiary shall have the .right to .hold t~e pohcles and rene~als. If BenefiCIary reqUIres, .T~stor s~all
<br />immediately give to Benefi~iary all recelp~s of patd pre?1lUms and renewal notIces. .l!pon loss, Trustor. shall gIve ImmedIate
<br />notice to the msurance carner and Beneficiary. BenefiClary may make proof of loss If not made ImmedIately by Trustor.
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<br />(page 3 of 4)
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<br />~ 0 1994 Bankers Systems, InG" St. Cloud. MN Fo'm RE-DT.NE 1/30/2002
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<br />.. -C165(NE) 103011
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