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<br />200510072
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<br />Financial Reports and Additional Documents. Trustor will provide to Beneficiary upon request, any financial statement
<br />or information. B~!~efi~iary may dee:!11. reasonably I)ecessary. Trustor agrees to .sign, deliver, and" file a~y ad.diti~mal
<br />documents or certlhcatlOns that BenetJcJary may consHJcr necessary to perfect, contJIlue, and preserve 1 rustor s oblIgatIOns
<br />under this Security Instrument and Beneficiary's lien status on the Property.
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<br />6. WARRANTY OF TITLE. Trustor warrants that Trustor is or will be lawl'uily 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 for encumbrances of record.
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<br />7. DUE ON SALE. Ben~ficiary may, at its option, decl~re the entire b~lance of the, Secured Debt !? ~e ~mm~diately due and
<br />payable upon the creatJOn ot, or contract for the creatIon of, a transter or sale of the Property. I hIS nght IS subject to the
<br />restrictions imposed by federal law (12 C.P.R. 591), as applicable.
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<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 that
<br />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 />9.
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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) Trllstor 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 inactJOn adversely affects Beneficiarv'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 ag,{inst 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.
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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 and
<br />regulations.
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<br />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 Sl?me instances, federal and state law wil,l re~uire Benefici~ry to prov~~e Trustor with notice of ~he right. to
<br />cure, or other notIces and may estabhsh tane schedules for toreclosure actIons. l~ach I rlislor requests a copy ot any notICe
<br />of default and any notice of sale thereunder be mailed to each Trustor at the address provided in Section 1 above.
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<br />~t the .option of the Beneficiary, a~l or ~ny part 0.1' the: ~greeq fees and charges, accrued interest and, principal shall bec,?me
<br />11llmedlately due and payable, after glVlng notIce 11 reqUIred by law, upon the occurrence of a default or anytJme
<br />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 puGlic auction to the highest bidder for-eash and convey ab;;olut.: title free andctear oeall right, title
<br />and interest of Trustor at such time and place as Trustee designates. Trustt:t: shall give notice of sale including the time,
<br />terms and place of sale and a description of the propt:rty to be sold as required by the applicable law in effect at the time of
<br />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 surplus, if any, to Trustor. Beneficiary may
<br />purchase the Property. The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth 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 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.
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<br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. If Trustor breaches
<br />any covenant in th~s S.ecurity ~nst.rument,. Trustor agrees to pay all expenses Beneficiary ip.c~rs in performing su~h
<br />covenants or protectmg Its secunty mterest m tht: Property. Such expenses mclude, but are not hmlted to, fees mcurred for
<br />inspecting, preserv.ing, or C?therwise, protecting the ~roperty and ~enefici~ry' ~ security in.terest. These ,e!,penses ~re r~yable
<br />on demand and Will bear mterest from the date of payment untJ! paId m full at the hIghest rate of mterest m eltect as
<br />provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses incurred by Beneficiary in
<br />collecting, enforcing l.ll' protecting B~nericiary's rights and remedies under this Security Instrument.. This amount may
<br />mclude, but IS not limIted to, Trustee s fees, court costs, and other legal expenses. To the extent permItted by the Umted
<br />States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Benefi::.:iary incurs to collect the Secured Debt
<br />as awarded by any coun exercising jurisdiction under the Bankruptcy Code. This Secunty Instrument shall remain in effect
<br />until released. Trustor agrees to pay for any recordation costs of such release.
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<br />11. 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, att.orney general
<br />opinions .or ipterpretive letters concerl")ing th~ pub.lic health, safety, welfar~, environment or a hazardous sl!bstance; .and (2)
<br />Hazardous Substance means any tOXIC, radioactIve or hazardous matenal, waste, pollutant .or contam1l1ant 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 discloscd and acknowledged in writing to Beneficiary, no Hazardous Substanct: is or will be
<br />located, stored or released on or in the Property. This restriction 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 m writing to Benet1ciary, 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 OF about the Property or there is a v.lolati(?n of any Environn:ental Law. concerning the Property. In such an
<br />event, 1 rllstor shall takt: all necessary remedIal actIon 111 accordance With any EnVironmental Law.
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