|
<br />111_.,
<br />
<br />200802715
<br />
<br />other encumbrance. Such replaeement of personal property will be deemed subject to the seeurity interest ereated
<br />by this Deed of Trust. Trustor shall not partition or subdivide the Property without Beneficiary's prior written
<br />consent. Beneficiary or Beneficiary's agents may, at Beneficiary's option, enter the Property at any reasonable time
<br />for the purpose of inspecting the Property. Any inspection of the Property shall be entirely for Beneficiary's benefit
<br />and Trustor will in no way rely on Beneficiary's inspection.
<br />
<br />13. AUTHORITY TO PERFORM. If Trustor fails to perform any of Trustor's duties under this Deed of Trust, or any
<br />other mortgage, deed of trust, security agreement or other lien document that has priority over this Deed of Trust,
<br />Beneficiary may, without notiee, perform the dutics or cause them to be performed. Trustor appoints Beneficiary as
<br />attorney in fact to sign Trustor's name or pay any amount necessary for performance. If any construction on the
<br />Property is discontinued or not carried on in a reasonable manner, Beneficiary may do whatever is necessary to
<br />protect Beneficiary's security interest in the Property. This may include completing the construction.
<br />
<br />Beneficiary's right to perform for Trustor shall not create an obligation to perform, and Beneficiary's failure to
<br />perform will not preclude Beneficiary from exercising any of Beneficiary's other rights under the law or this Deed of
<br />Trust. Any amounts paid by Beneficiary for insuring, preserving or otherwise protecting the Property and
<br />Beneficiary's security interest will be due on demand and will bear interest from the date of the payment until paid
<br />in full at the interest rate in effect from time to time according to the terms of the Evidence of Debt.
<br />
<br />14. ASSIGNMENT OF LEASES AND RENTS. Trustor irrevocably grants, conveys and sells as additional security all
<br />the right, title and interest in and to any and all:
<br />A. Existing or future leases, subleases, licenses, guaranties and any other written or verbal agreements for the
<br />use and occupancy of any portion of the Property, including any extensions, renewals, modifications or
<br />substitutions of such agreements (all referred to as "Leases").
<br />B. Rents, issues and profits (all referred to as "Rents"), including but not limited to security deposits, minimum
<br />rent, percentage rent, additional rent, common area maintenance charges, parking charges, real estate taxes,
<br />other applicable taxes, insurance premium contributions, liquidated damages following default, cancellation
<br />premiums, "loss of rents" insurance, revenues, royalties, proceeds, bonuses, and all rights and claims which
<br />Trustor may have that in any way pertains to or is on account of the use or occupancy of the whole or any
<br />part of the Property.
<br />
<br />Trustor will promptly provide Beneficiary with true and correct copies of all existing and future Leases. Trustor may
<br />collect, receive, enjoy and use the Rents so long as Trustor is not in default. Trustor will not collect in advance any
<br />Rents due in future lease periods, unless Trustor first obtains Beneficiary's written consent. Upon default, Trustor
<br />will receive any Rents in trust for Beneficiary and Trustor will not commingle the Rents with any other funds. Any
<br />amounts collected shall be applied at Beneficiary's discretion to payments on the Secured Debt as therein provided,
<br />to costs of managing the Property, including, but not limited to, all taxes, assessments, insurance premiums, repairs,
<br />and commissions to rental agents, and to any other necessary related expenses including Beneficiary's attorneys'
<br />fees, paralegal fees and court costs.
<br />
<br />Trustor acknowledges that this assignment is perfected upon the recording of this Deed of Trust and that
<br />Beneficiary is entitled to notify any of Trustor's tenants to make payment of rents due or to become due to
<br />Beneficiary. However, Beneficiary agrees that only on default will Beneficiary notify Trustor and Trustor's tenants
<br />and make demand that all future Rents be paid directly to Beneficiary. On receiving the notice of default, Trustor
<br />will endorse and deliver to Beneficiary any payments of Rent in Trustor's possession.
<br />
<br />Trustor covenants that no default exists under the Leases or any applicable landlord law. Trustor also covenants and
<br />agrees to maintain, and to require the tenants to comply with, the Leases and any applicahle law. Trustor will
<br />promptly notify Beneficiary of any noncompliance. If Trustor neglects or refuses to enforce compliance with the terms
<br />of the Leases, then Beneficiary may, at Beneficiary's option, enforce compliance. Trustor will obtain Beneficiary's
<br />written authorization before Trustor consents to sublet, modify, cancel, or otherwise alter the Leases, to accept the
<br />surrender of the Property covered hy such Leases (unless the Leases so require), or to assign, compromise or
<br />encumber the Leases or any future Rents. Trustor will hold Beneficiary harmless and indemnify Beneficiary for any
<br />and allliahility, loss or damage that Beneficiary may incur as a consequence of the assignment under this section.
<br />
<br />15. CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. If the Property includes a unit in a condominium or a
<br />planned unit development, 'frustor will perform all of Trustor's duties under the covenants, by-laws, or regulations
<br />of the condominium or planned unit development.
<br />
<br />16. DEFAULT. Trustor will be in default if any of the following occur:
<br />A. Any party ohligated on the Secured Debt fails to make payment when due;
<br />B. A breach of any term or covenant in this Deed of Trust, any prior mortgage or any construction loan
<br />agreement, security agreement or any other document evidencing, guarantying, securing or otherwise relating
<br />to the Secured Debt;
<br />C. The making or furnishing of any verbal or written representation, statement or warranty to Beneficiary that is
<br />false or incorrect in any material respect by Trustor or any person or entity obligated on the Secured Debt;
<br />D. The death, dissolution, or insolvency of, appointment of a receiver for, or application of any debtor relief law
<br />to, Trustor or any person or entity obligated on the Secured Deht;
<br />E. A good faith belief hy Beneficiary at any time that Beneficiary is insecure with respect to any person or
<br />entity obligated on the Secured Debt or that the prospect of any payment is impaired or the value of the
<br />Property is impaired;
<br />F. A material adverse change in Trustor's business including ownership, management, and financial conditions,
<br />which Beneficiary in its opinion believes impairs the value of the Property or repayment of the Secured Debt; or
<br />G. Any loan proceeds arc uscd for a purpose that will contribute to excessive crosion of highly erodible land or
<br />to the conversion of wetlands to produce an agricultural commodity, as further explained in 7 c.F.R. Part
<br />1940, Subpart G, Exhibit M.
<br />
<br />17. REMEDIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide Trustor
<br />with notice of the right to cure, mediation notices or other notices and may estahlish time schedules for foreclosure
<br />actions. Subject to thcse limitations, if any, Beneficiary may accelerate the Sccured Debt and foreclose this Deed of
<br />Trust in a manner provided by law if this Trustor is in default.
<br />
<br />At the option of 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 />
<br />"
<br />@1993BankersSystBms, Inc., St Cloud, MN (1-800-397-2341) Form AGICO-DT-NE 10130197 \,~
<br />
<br />l/l
<br />
<br />page 3 of 6
<br />
|