|
<br />200707411
<br />
<br />6.
<br />
<br />Financial Reports and Additional Documents. Trustor will provide to Beneficiary upon request, any financial statement
<br />or information Beneficiary may deem reasonably necessary. Trustor agrees to sign, deliver, and file any additional
<br />documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve Trustor's obligations
<br />under this Security Instrument and Beneficiary's lien status on the Property.
<br />
<br />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 tur encumbrances of record.
<br />
<br />DUE ON SALE. Beneficiary may, at its option, declare the entire balance of the Secured Debt to be immediatel~ due and
<br />payab!e upon the cr~at!on o,f, or contract for the creation of, a transfer or s.ale of all or any part of the Property. This right
<br />IS subject to the restnctlOns Imposed by federal law (12 C.F.R. 591), as apphcable.
<br />
<br />DEFAULT. Trustor will be in default if any of the following occur:
<br />
<br />Fraud. Any Consumer Borrower engages in fraud or material misrepresentation in connection with the Secured Debt that
<br />is an open end home equity plan.
<br />
<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.
<br />
<br />7.
<br />
<br />8.
<br />
<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 Property; (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; (e) a sole Trustor dies; (t) 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 Property to action that adversely affects Beneficiary's interest; or (i) a prior lienholder forecloses
<br />on the Property and as a result, Beneficiary's interest is adversely affected.
<br />
<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 and
<br />regulations.
<br />
<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 Trustor
<br />is in default. In some instances, federal and state law will require Beneficiary to provide Trustor with notice of the right to
<br />cure, or other notices and may establish time schedules for foreclosure actions. Each Trustor requests a copy of any notice
<br />of default and any notice of sale thereunder be mailed to each Trustor at the address provided in Section I above.
<br />
<br />At the option of the Beneficiary, all or any part of the agreed fees and charges, accrued interest and principal shall become
<br />immediately due and payable, after givmg notice if required by law, upon the occurrence of a default or anytime
<br />thereafter.
<br />
<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 of
<br />the proposed sale.
<br />
<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 intercst
<br />thereon, and the principal and interest on the Secured Debt, raying the surplus, if any, to Trustor. Beneficiary may
<br />purchase the Property. The recitals in any deed of conveyance shal be prima facie evidence of the facts set forth therein.
<br />
<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 foreclosure proceedings are filed shall not constitute a waiver of Beneficiary's right to require complete
<br />cure of any existing default. By not exercising any remedy on Trustor's default, Beneficiary does not waive Beneficiary's
<br />right to later consider the event a default if it happens again.
<br />
<br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COl,J~ECTION COSTS. If Trustor breaches
<br />any covenant in this Security Instrument, 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 />inspecting, 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 ~ate of interest in .e(fect ~s
<br />provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses mcurred by BenefiCiary 10
<br />collecting, enforcing or protecting. Beneficiary's rights and remedies under this Security Instrument. This amount ~ay
<br />include, but is not hmited to, Trustee's fees, court costs, and other legal expenses. To the extent permitted by the Untted
<br />States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Beneficiary incurs to collect the Se~ur.ed Debt
<br />as awarded by any court exercising jurisdiction under the Bankruptcy Code. This Secunty Instrument shall remaill ill effect
<br />until released. Trustor agrees to pay for any recordation costs of such release.
<br />
<br />11. ENYJRONMENTALLAWS- AND HAZi\UIlOUS SUBSTANCES..-As-used in this section, (1) Environmental Law
<br />means, without limitation, the Comprehensive Environmental Response, .Compens~tion and Liability Aet (CERCLA, 42
<br />U.S.c. 9601 et seq.), and all other federal, state and local laws, regulattons, ordmances, court orders, attorney general
<br />opinions or interpretive letters conce.rning 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.
<br />
<br />Trustor represents, w~rrants apd agrees that: .. . . . . .
<br />A. Except as preViously disclosed an~ acknowledged to ~ntlllg. t<;> Beneflctary., I}o Hazardous Subs~a.nce IS or Will be
<br />located, stored or released on or IJ? the Property. T.hls restnchon does not apply, to small quantttles of Hazardous
<br />Substances that. are gen~rally recogmzed to be appropnatc:: ~or the norm~l.use and mamtenance of the Property.
<br />B. Except as preViously disclosed and acknowledged III wntmg to BenefiCiary, 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.
<br />
<br />(page 3 of 4)
<br />
<br />~ @ 1994 Bankers Syslems.lno.. St. Cloud, MN Form OCP-I1EDT.NE 5/10/2005
<br />
|