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<br />200710226
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<br />14. Hazardous substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any hazardous
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<br />substances on or in the property. The preceding sentence shall not apply to the presence, use, or storage on the property of small
<br />quantities of hazardous substances that are generally recognized to be appropriate to normal use and maintenance of the property.
<br />Borrower covenants that Borrower has made full disclosure of any such known, existing hazardous conditions affecting the
<br />property. Borrower shall not do, nor allow anyone else to do, anything affecting the property that is in violation of any federal,
<br />state, or local environmental law or regulation. Borrower shall promptly give the Government written notice of any investigation,
<br />claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the property and any
<br />hazardous substance or environmental Jawor regulation of which Borrower has actual knowledge. If Borrower learns, or is notified
<br />by any governmental or regulatory authority, that any removal or other remediation of any hazardous substance affecting the
<br />property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with applicable environmental law
<br />and regulations. As used in this paragraph, "hazardous substances" are those substances defined as toxic or hazardous substances by
<br />environmental law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides
<br />and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this
<br />paragraph, "environmental law" means Federal laws and regulations and laws and regulations of the jurisdiction where the property
<br />is located that relate to health, safety or environmental protection.
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<br />15. Adjustment; release; waiver; forbearance. In accordance with Government regulations, the Government may (a) adjust
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<br />the interest rate, payment, terms or balance due on the loan, (b) increase the mortgage by an amount equal to deferred interest on
<br />the outstanding principal balance, (c) extend or defer the maturity of, and renew and reschedule the payments on the note, (d)
<br />release any party who is liable under the note from liability to the Government, (e) release portions of the property and subordinate
<br />its lien, and (f) waive any other of its rights under this instrument. Any and all of this can and will be done without affecting the
<br />lien or the priority of this instrument or Borrower's liability to the Government for payment of the note secured by this instrument
<br />unless the Government provides otherwise in writing. HOWEVER, any forbearance by the Government - whether once or often - in
<br />exercising any right or remedy under this instrument, or otherwise afforded by applicable law, shall not be a waiver of or preclude
<br />the exercise of any such right or remedy.
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<br />16. Graduation. If the Government determines that Borrower may be able to obtain a loan from a responsible cooperative or
<br />private credit source at reasonable rates and terms for loans for similar purposes and periods of time, Borrower will, upon the
<br />Government's request, apply for and accept such a loan in sufficient amount to pay the note secured by this instrument and to pay
<br />for stock necessary to be purchased in a cooperative lending agency in connection with such loan.
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<br />17. Forfeiture. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in
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<br />the Government's good faith judgment could result in forfeiture of the property or otherwise materially impair the lien created by
<br />this instrument or the Government's security interest. Borrower may cure such default by causing the action or proceeding to be
<br />dismissed with a ruling that precludes forfeiture of the Borrower's interest in the property or other material impairment of the lien
<br />created by this security instrument or the Government's security interest.
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<br />18. False statement. Borrower also shall be in default if Borrower, during the loan application process, gave materially false
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<br />or inaccurate information or statements to the Government (or failed to provide the Government with any material information) in
<br />connection with the loan evidenced by the note.
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<br />19. Cross Collateralization. Default under this instrument shall constitute default under any other security instrument held
<br />by the Government and executed or assumed by Borrower. Default under any other such security instrument shall constitute default
<br />under this instrument.
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<br />20. Highly erodible land; wetlands. Any loan secured by this instrument will be in default if Borrower uses any loan
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<br />proceeds for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce
<br />an agricultural commodity as provided in 7 C.F.R. part 1940, subpart G, or any successor Government regulation.
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<br />21. Non-discrimination. If any part of the loan for which this instrument is given shall be used to finance the purchase,
<br />construction or repair of property to be used as an owner-occupied dwelling (herein called "the dwelling") and if Borrower intends
<br />to sell or rent the dwelling and has obtained the Government's consent to do so (a) neither Borrower nor anyone authorized to act
<br />for Borrower will, after receipt of a bona fide offer, refuse to negotiate for the sale or rental of the dwelling or will otherwise make
<br />unavailable or deny the dwelling to anyone because ofrace, color, religion, sex, national origin, disability, familial status or age,
<br />and (b) Borrower recognizes as illegal and hereby disclaims, and will not comply with or attempt to enforce any restrictive
<br />covenants on the dwelling relating to race, color, religion, sex, national origin, disability, familial status or age.
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<br />Initial ~ date \1- ~" 61
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<br />FSA 1927-1 NE (01.28.5) Page 40f7
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