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<br />200707065
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<br />Financial Reports and Additional Documents. Trustor will provide to Beneficiary upon request, any financial
<br />statement or mformation Beneficiary may deem reasonably necessary. Trustor agrees to sign, deliver, and file any
<br />additional documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve
<br />Trustor's obligations under this Security Instrument and Beneficiary's lien status on the Property.
<br />6. WARRANTY OF TITLE. Trustor warrants that Trustor is or wi\) be lawfully seized of the estate conveyed by this
<br />Security Instrument and has the right to irrevocably grant, coovey, and sell the Property to Trustee, in trust, with power
<br />of sale. Trustor also warrants that the Property is unencumbered, except for encumbrances of record.
<br />7. DUE ON SALE. Beneficiary may, at its option, declare the entire balance of the Secured Debt to be immediately due
<br />and payable upon the creation of, or contract for the creation of, a transfer or sale of all or any part of the Property.
<br />This right is subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable.
<br />8. DEFAULT. Trustor will be in default if any of the following occur:
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<br />Fraud. Any Consumer Borrower engages in fraud or material misrepresentation in connection with the Secured Debt
<br />that 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
<br />insurance on the Property; (b-) Trustor transfers.the Property; (c) Trustor -conunits waste or otherwise_destructively uses
<br />or fails to maintain the Property such that the action or maction adversely affects Beneficiary's security; (d) Trustor fails
<br />to pay taxes on the Property or otherwise fails to act and thereby causes a lien to be filed against the Property that is
<br />senior to the lien of this Security Instrument; (e) a sole Trustor dies; (f) if more than one Trustor, any Trustor dies and
<br />Beneficiary's security is adversely affected; (g) the Property is taken through eminent domain; (h) a judgment is filed
<br />against Trustor and subjects Trustor and the Property to action that adversely affects Beneficiary's interest; or (i) a prior
<br />lienholder forecloses on the Property and as a result, Beneficiary's interest is adversely affected.
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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 lender in an aggregate amount greater than the amount permitted under federal laws
<br />and regulations.
<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 foreclose this Security Instrument in a manner provided by law if
<br />Trustor is in default. In some instances, federal and state law will require Beneficiary to provide Trustor with notice of
<br />the right to cure, or other notices and may establish time schedules for foreclosure actions. Each Trustor requests a copy
<br />of any notice of default and any notice of sale thereunder be mailed to each Trustor at the address provided in Section I
<br />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
<br />become Immediately due and payable, after giving notice if required by law, upon the occurrence of a default or
<br />anytime thereafter.
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<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
<br />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
<br />Beneficiary all moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest
<br />thereon, and the principal and interest on the Secured Debt, paying the sUfJ?lus, if any, to Trustor. Beneficiary may
<br />purchase the Property. The recitals in any deed of conveyance shall be pnma facie evidence of the facts set forth
<br />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
<br />is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Beneficiarls right to require
<br />complete cure of any existing default. By not exercising any remedy on Trustor's default, BenefiCIary does not waive
<br />Beneficiary's right to later consider the event a default if it happens again.
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<br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECT~~N C9STS. .If Trustor .breaches
<br />any covenant in this Security Instrument, Trustor agrees to pay all expenses BenefICIary IOcurs 10 performmg such
<br />covenants or protecting its security interest in the Property. Such expenses include, but are not limited to, fees incurred
<br />for inspecting, preserving, or otherwise protecting the Property and Ben~fici~ry.' s security inte~est. These ex\?enses a~e
<br />payable on demand and will bear interest from the date of payment untIl pald 10 full at the hlshest rate of II1ter~~t 10
<br />effect as I?rovided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses IOcurred by BenefICIary
<br />in collectmg, enforcing or protecting Beneficiary's rights and remedies under this Security Instrument. This ~mount may
<br />include but is not limited to, Trustee's fees, court costs, and other legal expenses. To the extent permItted by the
<br />United'States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Beneficiary i~curs to collect the
<br />Secured Debt as awarded by any court exercising jurisdiction under t~e Bankruptcy Code. This Secunty Instrument shall
<br />remain in effect until released. Trustor agrees to pay for any recordatIOn costs of such release.
<br />
<br />11 ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law
<br />. means, without limitation, the Comprehensive Environmental Response, .Compen~ation and Liability Act (CERCLA, 42
<br />D.S.C. 9601 et seq.), and all other federal, state and local laws, regulatIOns, ordmances, court orders, attorney general
<br />opinions or interpretive letters concernif,1g the publi.c health, safety, welfa~e, environment or a hazardous. substan~e; and
<br />(2) Hazardous Substance means any tOXIC, radIOactive or hazard.ous matenal, waste, pol1utapt or contammant whICh has
<br />characteristics which render the substance dangerous or potentIally dangerous to the pubhc 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 Subs~~nce IS or WIll be
<br />located, stored or released on or in the Property. This restriction does not apply to smal1 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 Haz~rdous Substance occurs on,
<br />under or about the Property or there is a vi01ation .of ~y Epv.in:ml1}~g~al L~ cQ,!1~~rl:!!!1~Lthe Property. In such an
<br />event, Trustor shall take all necessary remedIal actIon 10 accordance \Y!~W\1Tt1YHq;un1PntaI J-.aw.
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<br />"....,~_.,~._~_._._,~_" ,...C."",07-07-17-000077
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<br />(page 3 of 4)
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<br />~@ 01994 Bankers Systems, Inc" St. Cloud, MN Form OCP-REDT-NE 5/10/2005
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<br />. -C465(NE) 105061
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