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200903893 7. DUE ON SALE. Beneficiary may, at its option, declare the entirc balance of the Secured Debt to be immediately due and payable upon thc creation of, or contract for the creation of, a transfer or sale of all or any pan of the Property. This right is subject to the restrictions imposed by federal law (12 CF,R. 591), as applicable. 8. DEFAULT. Trustor will be in default if any of the fbllowing occur: Fraud. Any Consumer Borrower engages in fraud or material misrepresentation in connection with the Secured Debt that is an open end home equity plan. Payments. Any ('onsumer Borrower on any Secured Debt that is an open end home equity plan tails to make a payment when duc. Property. Any action or inaction by the Borrower or Trustor occurs that adversely atIects the Property or Beneficiary's rights in the Property. This includes, but is not limited to, the following: (a) Trustor fails to maintain required insurance on thc Property; (b) Trustor transfcrs the Propcrty; (c) Trustor commits waste or otherwise destructively uses or fails to maintain the Property such that the action or inaction adversely affects Beneficiary's security; (d) Trustor fails to pay taxes on the Property or otherwise fails to act and thereby causes a lien to be filed against the Property that is scnior to the lien of this Security Instrument; Ie) a sole Trustor dies; (t) if more than one Trustor. any Trustor dies and Beneficiary's security is adversely aHeeted; (g) the Property is takcn through eminent domain; (h) a judgment is filed against Trustor and subjects Trustor and the Property to action that adversely affects Beneficiary's interest; or Ii) a prior lienholder j()fecloses on the Propeny and as a result, Beneficiary's interest is adversely affected, Executive Officers. Any Borrower is an executive ofticer of Beneficiary or an aftiliate and such Borrower becomes indebted to Benel1eiary or another lender in an aggregate amount greater than the amount permitted under federal laws and regulations. 9. REMEDIES ON DEFAULT. In addition to any other remedy available under the tenns of this Security Instrument, Beneficiary may accelerate the Secured Debt and foreclosc this Security Instrument in a manner provided by law if Trustor is in default. In some instances. federal and state law will require Beneficiary to provide Trustor with notice of the right to cure, or other notices and may establish time schedules for foreclosure actions. Each Trustor requests a copy of any notice of default and any notice of sale thereunder be mailed to each Trustor at the address provided in Section I above. At the option of the Beneficiary. all or any part of the agreed fees and charges. accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereaft er. If there is a default, Trustee shall, at the request of the Beneficiary, advertise and sell the Propel1y as a whole or in separate parcels at public auction to the highest bidder for cash and convey absolute title free and clear of all right, title and interest of Trustor at such time and place as Trustee designates. Trustee shall give notice of sale including the time, tenns and place of sale and a description of the property to be sold as required by the applicable law in ell'ect at the time of the proposed sale. Upon sale of the Property and to the extent not prohibited by law. Trustee shall make and deliver a deed to the Property sold which conveys absolute title to the purchaser, and after tirst paying all fees, charges and costs, shall pay to Beneficiary all moneys advanced for rcpairs, taxes, insurance, liens, assessments and prior encumbrances and interest thereon, and the principal and interest on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may purchase the Property. The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein. The acceptance by Beneficiary of any swn in payment or panial payment on thc Secured Debt after thc balance is due or is accelerated or after foreclosure proccedings are filed shall not constitute a waiver of Beneficiary's right to require complete cure of any existing default. By not exercising any remedy on Trustor's default, Beneficiary does not waive Beneficiary's right to latcr consider the event a default if it happens again. 10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. If Trustor breaches any covenant in tllis Security Instrument, Trustor agrees to pay all expenses Beneficiary incurs in performing such covenants or protecting its security interest in the Property. Such expenses include, but arc not limited to, fees incurred for inspecting, preserving, or otherwise protecting the Property and Beneficiary's security interest. These expenses arc payable on demand and will bear interest from the date of paymcnt until paid in full at the llighest rate of interest in effect as provided in the tenus of the Secured Debt. Trustor agrees to pay all costs and expenses incurred by Beneficiary in collecting, enforcing or protecting Beneficiary's rights and remedies wlder this Sceurity Instrument. This amount may include, but is not limited to, Trustee's fees, court costs, and other legal expenses. To tile extent pCI111itted by the Ullited States Bankruptcy Code, Trustor agrces to pay the reasonable attorneys' fees Beneficiary incurs to collect the Secured Debt as awarded by any COUli exercising jurisdiction under the Bankruptcy Code. This Security Instrument shall remain in effect until released. Trustor agrees to pay for any recordation costs of such release. (Q1994 Wolters Kluwe, Financiol Services. Sonkers Systems'M Form USBOCP.DT-NE 8/24/2006 th- (page 4 of 5J