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<br />20080051'8
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<br />14. D~FAU~T. Trust?r will be in default if any party obligateq on the .Secured Debt fails to make payment when due. Trustor
<br />will be 10 default If a breach occurs under the terms of thiS Secunty Instrument or any other document executed for the
<br />~urp~se. of creatin~, securing or guarantying the ~ecure~ Debt. A good faith belief by Beneficiary that Beneficiary at any
<br />tune IS 10secure 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~DIES 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 acti~ns. Subject to these
<br />lirrntatlOns, If any, BenefiCiary may accelerate the Secured Debt and foreclose thiS Secunty Instrument 10 a manner provided
<br />by law if Trustor is in default.
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<br />~t the.option of Beneficiary, all or .<I1!-Y part.of ~he ag~eed fees and charges, accrued interest and principal shall become
<br />Irrnnedlately due and payable, after glV10g 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 sel1 the Property as a ~hole. or in separate parcels at public auc~ion to the highest bidder for cash and convey absolute
<br />tltl~ free and c~ear o~ all ngh~, title and mterest of Trustor at such tlm~ a.nd place as Trustee designates. Trustee shaH give
<br />notice of sale 1Oclud1Og 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, 'Trustee shall make and deliver a deed to the Property
<br />sold which conveys absolute title to the purchaser, and after first paymg all fees, charges and costs, shall pay to Bencflciary
<br />all. m~meys adyanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest thereon, and the
<br />pnnclp~ anq 10terest on the Secured Debt, payin~ the sl.!-rplu~, if any, to Trustor. Beneficiary may purchase the Property.
<br />The reCitals m any deed of conveyance shall be pnma 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 paxment 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 Beneflciary'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 Beneflciary'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 Beneflciary' 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 an 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 />U.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 an~ acknowledged in .writin& t<? Beneflciary, no Hazardous Subs~~ce is or will be
<br />located, stored or released on or m the Property. ThiS restnctlOn 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 Beneflciary 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 condenmatlOn, emlpent d01?am, or af!y other means. Trustor
<br />authorizes Beneficiary to intervene in Trustor's name in any of the abov~ descnbed acti~ns or clmms. Trustor assigns to
<br />Beneficiary the proceeds of any award or claim for d.amages connected with ~ condenm~tlon or other taki?g o~ all or a?y
<br />part of the Pr?perty. Such proceeds s~all b~ conSidered payments a~d w1l1 be applied as proVided ~n thiS Secunty
<br />Instrument. ThiS assignment of proceeds IS subject to the terms of any pnor mortgage, deed of trust, secunty agreement or
<br />other lien document.
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<br />19. INSURANCE. Trustor shall keep Property insured against loss by flre, flood, theft an~ ot~er h!lzards and risks reasonably
<br />associated with the Property due to its type and location. This insurance shall be. mamtalOed m the amounts. and for the
<br />periods that Beneficiary requires. What Beneflciary requires pursuant to the precedlOg sentence can ch~nge durmg the. ter~n
<br />of the Secured Debt. The insurance carrier providing, the insur~ce shall. be. chosen by Trustor ~ubJect to BeneflcI~y s
<br />approval, which shall not be unreasonably Withheld. It Trustor ~alls ,to ~alOt~m the coverage descn.bed above, BenefiCla~y
<br />may, at Beneflciary' s option, obtain coverage to protect BenefiCiary s nghts m the Property accordmg to the terms of thiS
<br />Security Instrument.
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<br />All insurance policies and renewals shall be acceptabl~ to B~neficiary. and shall. i?clude a standar~ "mortgag~ cl~use" and,
<br />where applicable, "loss payee clause." T.rustor shalllrrnnedlat~ly notify BenefiCiary ,of cance~latlOn or .termmatlOn of the
<br />insurance. Beneficiary shall have the nght to hold the pohcles and rene~als. It Beneflclary reqUires, .Tr,-!stor s~all
<br />immediately give to Benefl~iary all receip~s of paid premiums and renewal notices. ~pon loss, Trustor. shall give Irrnnedlate
<br />notice to the msurance carner and Beneficiary. BenefiCiary 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 />01994 Wolters Kluwar Financial Services' Bankers Systems™ Form RE-DT-NE 1211512006
<br />VMP@-C165(NE) 107081
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