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<br />200706872
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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 />purpose of creating, securing or guarantying the Secured Debt. A good faith belief by Beneficiary that Beneficiary at any
<br />time is insecure 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. RE.MEDlES ON DEFAULT. In some instances, federal and 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 actions. Subject to these
<br />limitations, 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, all or .a~y part.of ~he ag:eed fees and charges, accrued interest and principal shall become
<br />Immed.l~tely due an~ payable, after glVlng notlce If reqUlr~d by la~, upon the occurrence of a default or anytime thereafter.
<br />In addltlon, 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 ~hole. or in separate parcels at public auc~ion to the highest bidder for. cash and convey absolute
<br />tttl~ free and clear o~ all ngh~, btle and mterest of Trustor at such tlm~ apd place as Trustee designates. Trustee shall give
<br />nottce of sale mcludmg 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 s~le of the property an~ to the extent-not prohibited by law, '!rustee shall-make and tleliverll-deed to the-Property
<br />sold which conveys absolute tltle to the purchaser, and after first paymg all fees, charges and costs, shall pay to BenefIciary
<br />all moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrance.s 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 fort~. The acceptance ,by Beneficiary of any ~um in payment or partial p~yment on. the
<br />Secured Debt after the balance IS due or IS accelerated or after foreclosure proceedmgs are flIed 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 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 le~al 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. ENVIRONMENT AL 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 />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 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 condemnatlon, eml!lent do~alll, or a~y other means. Trustor
<br />authorizes Beneficiary to intervene in Trusto(s name in any of the abov~ descnbed acti~ns or clmms. T!ustor assIgns to
<br />Beneficiary the proceeds of any award or claim for damages connected with ~ condemn8:tlOn or othe! takt~g o~ all or ~y
<br />part of the Property. Such proceeds s~all b~ considered payments af!d wIll . be applIed as proVIded !n thIS Secunty
<br />Instrument. This asslgnment of proceeds IS subject to the terms of any pnor mortgage, deed of trust, secunty agreement or
<br />other lien.oPCJ,llllent. _ '__ .. ___
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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 sentef!ce can change .durmg the term
<br />of the loan. The insurance carrier providing the insura~ce shall.be ~hosen by Trustor s~bJect to BeneficIary.'s approval,
<br />which shall not be umeasonably WIthheld. If Trustor fmls to mamtam the coverage descnbed above, BeneficIa~y 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 polI.' des and renewals shall be acceptabl~ to B~neficiary. and shall. i~clude a standar~ "mortgag~ cl~use" and,
<br />where applicable, "loss payee clause." Trustor shall Immedlat~ly notlfy BenefiCIary of cance~latlon or .termmatlOn of the
<br />insurance. Beneficiary shall have the right to hold t~e polICIes and rene~als. If BenefiCiary reqUlres, .Tfl!stor s~all
<br />immediately ~ive to Beneficiary all receipts of paid premiums and renewal notIces. ~pon loss, Trustor. shall gIve Immediate
<br />notice to the msurance carrier and Beneficiary. Beneficiary 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, Inc., St. Cloud. MN Form RE-DT-NE 1/30/2002
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<br />.. -C165(NE) (0301)
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