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200501202 <br />Financial Reports and Additional Documents. Trustor will provide to Beneficiary upon request, any financial <br />statement or information Beneficiary may deem reasonably necessary. Trustor agrees to sign, deliver, and file any <br />additional documents or certifications that Beneficiary may consider necessary to perfect, continue, and preserve <br />Trustor's obligations under this Security Instrument and Beneficiary's lien status on the Property. <br />6. WARRANTY OF TITLE. Trustor warrants that Trustor is or will be lawfully 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 <br />power of sale. Trustor also warrants that the Property is unencumbered, except for encumbrances of record. <br />7. DUE ON SALE. Beneficiary may, at its option, declare the entire balance of the Secured Debt to be immediately <br />due and payable upon the creation of, or contract for the creation of, a transfer or sale of the Property. This right is <br />subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. <br />8. DEFAULT. Trustor will be in default if any of the following occur: <br />Fraud. Any Consumer Borrower engages in fraud or material misrepresentation in connection with the Secured <br />Debt that is an open end home equity plan. <br />Payments. Any Consumer Borrower on any Secured Debt that is an open end home equity plan fails to make a <br />payment when due. <br />Property. Any action or inaction by the Borrower or Trustor occurs that adversely affects the Property or <br />Beneficiary's rights in the Property. This includes, but is not limited to, the following: (a) Trustor fails to maintain <br />required insurance on the Property; (b) Trustor transfers the Property; (c) Trustor commits waste or otherwise <br />destructively uses or fails to maintain the Property such that the action or inaction adversely affects Beneficiary's <br />security; (d) Trustor fails to pay taxes on the Property or otherwise fails to act and thereby causes a lien to be filed <br />against the Property that is senior to the lien of this Security Instrument: (e) a sole Trustor dies; (f) if more than one <br />Trustor, any Trustor dies and Beneficiary's security is adversely affected; (g) the Property is taken through eminent <br />domain; (h) a judgment is filed against Trustor and subjects Trustor and the Property to action that adversely <br />affects Beneficiary's interest; or (i) a prior lienholder forecloses on the Property and as a result, Beneficiary's <br />interest is adversely affected. <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 <br />laws and regulations. <br />9. REMEDIES ON DEFAULT. In addition to any other remedy available under the terms of this Security <br />Instrument, Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner <br />provided by law if Trustor is in default. In some instances, federal and state law will require Beneficiary to provide <br />Trustor with notice of the right to cure, or other notices and may establish time schedules for foreclosure actions <br />and may establish time schedules for foreclosure actions. Each Trustor requests a copy of any notice of default and <br />any notice of sale thereunder be mailed to each Trustor at the address provided in Section 1 above. <br />At the option of the 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 />anytime thereafter. <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 public auction to the highest bidder for cash and convey absolute title free and clear of all right, <br />title and interest of Trustor at such time and place as Trustee designates. Trustee shall give notice of sale including <br />the time, terms and place of sale and a description of the property to be sold as required by the applicable law in <br />effect at the time of the proposed sale. <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. <br />The acceptance by Beneficiary of any sum in payment or partial payment on the Secured Debt after the balance is <br />due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Beneficiary's right to <br />require complete cure of any existing default. By not exercising any remedy on Trustor's default, Beneficiary does <br />not waive Beneficiary's right to later consider the event a default if it happens again. <br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. If Trustor breaches <br />any covenant in this Security Instrument, Trustor agrees to pay all expenses Beneficiary incurs in performing such <br />covenants or protecting its security interest in the Property. Such expenses include, but are not limited to, fees <br />incurred for inspecting, preserving, or otherwise protecting the Property and Beneficiary's security interest. These <br />expenses are payable on demand and will bear interest from the date of payment until paid in full at the highest rate of <br />interest in effect as provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses incurred by <br />Beneficiary in collecting, enforcing or protecting Beneficiary's rights and remedies under this Security Instrument. <br />This amount may include, but is not limited to, Trustee's fees, court costs, and other legal expenses. To the extent <br />permitted by the United States Bankruptcy Code, Trustor agrees to pay the reasonable attorneys' fees Beneficiary <br />incurs to collect the Secured Debt as awarded by any court exercising jurisdiction under the Bankruptcy Code. This <br />Security Instrument shall remain in effect until released. Trustor agrees to pay for any recordation costs of such <br />release. <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, <br />42 U.S.C. 9601 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney <br />general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous <br />substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or <br />contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public <br />health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous <br />material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environmental Law. <br />Trustor represents, warrants and agrees that: <br />A. Except as previously disclosed and acknowledged in writing to Beneficiary, no Hazardous Substance is or will be <br />located, stored or released on or in the Property. This restriction does not apply to small quantities of <br />Hazardous Substances that are generally recognized to be appropriate for the normal use and maintenance of <br />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 <br />on, under or about the Property or there is a violation of any Environmental Law concerning the Property. In <br />such an event, Trustor shall take all necessary remedial action in accordance with any Environmental Law. <br />(page 3 f 4) <br />©1994 Bankers Systems, Inc., St. Cloud, MN Form OCP- REDT -NE 1/13/99 Li <br />l <br />