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201004752
<br />14. DEFAULT. Trustor will be in default if apy party obligated on the Secured Debt fails to make paymeut when doe. Trustor
<br />will be in default if a breach occurs under the terms of this Security Iastturnent or any other document executed for the
<br />purpose of creating, securing or guarantying the Secured Debt. A good faith belief by Beneficiary that Beneficiary at any
<br />time is insecure 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 irnpatred shall also coastitute an event of default.
<br />15: REMEDIES ON DEFAULT. In some instances, federal and state law will require :Beneficiary to provide Trustor with
<br />notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these
<br />limitations, if any, Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner
<br />provided by law if Trustor is in default.
<br />At the option of Beneficiary, all or any part of the agreed fees and charges, accrued interest and principal shall become
<br />ttiunediately due and payable, after giving notice if required by law, upon the occurrepce of a default or apytirne
<br />thereafter. Iu addition, Beneficiary shall be entitled to aU the remedies provided by law, the terms of the Secured Dcbt,
<br />this Security Instrument and any related documents, including without limitation, the power to sell the Property.
<br />If there is a default, Trustee shall, in addition to any other permitted remedy, at the request of the Beneficiary, advertise
<br />and sell the Property as a whole or ip separate parcels at public auction to the highest bidder for cash and convey absolute
<br />title free and clear of all right, title and interest of Trustor at such tune apd place as Trustee designates. Trustee shall give
<br />ponce of sale including the time, terms and place of sale and a description of the property to be sold as required by the
<br />--applicable Law ip effect at the-tiu~e s€ the- propesed~. .. .. -. __...__ . _-.-.,.....___ ~T.. _ . - -- - -.....
<br />Upop 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 />Bepeficiary all moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest
<br />thereon, apd the principal apd ipterest op the Secured Debt, payipg the surplus, if any, to Trustor. Beneficiary may
<br />purchase the Property. The recitals in any deed of conveyance shall be prima facie evidepce of the facts set forth therein.
<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 payment or partial paymept on the
<br />Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a
<br />waiver of Beneficiary's right to require complete cure of any existing default. By not exercising any remedy on Trustor's
<br />default, Beneficiary does not waive Beneficiary's right to later consider the event a default if it continues or happens again.
<br />16. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohibited by law, Trustor agrees to pay all of Beneficiary's expenses if Trustor breaches any covenant in this Security
<br />Instrument. Trustor will also pay op demand apy amount ipcurred by Bepeficiary for insuring, inspecting, preserving or
<br />otherwise protecting the Property apd Bepeficiary's security interest. These expepses will bear interest from the date of the
<br />payment until paid in full at the highest interest rate ip effect as provided in the terms of the Secured Debt. Trustor agrees
<br />to pay all costs apd expenses incurred by Bepeficiary in collecting, enfnrcipg or protectiug 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.
<br />17. ENVII2ONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law
<br />-.__-"...ut,..~_vithQut limit_atio~ the ~o~upiehens~'ve Enviropmental -$~spc~nse}. Compensation _and..IKiabili~ Act._(CERCLA, 42. _
<br />U.S.C. 96Q1 et seq.), apd all other federal, state and local laws, regulations, ordipances, court orders, attorpey geperal
<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 io the public health, safely, welfare or
<br />epvironment. The term iacludes, without limitation, apy substances defined as "hazardous material," "toxic substances,"
<br />"hazardous waste" or "hazardous substapce" under any Environmental Law.
<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and ackpowledged in writing to Beneficiary, po Hazardous Substapce is or will be
<br />located, stared of released on or in the Property. This restriction does not apply to small quaptities 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 ip writipg to Bepeficiary, Trustor and every tepapt have beep, are,
<br />and' shall remain in full compliance with any applicable EpviropmeWal Law.
<br />L. Trustor shall immediately notify Beneficiary if a release or threatened release of a Hazardous Substapce occurs on,
<br />under or about the Property or there is a violation of apy Enviropmeptal Law copcernipg 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.
<br />18. CONDEMNATION. Trustor will give Beneficiary prompt notice of any pending or threatened action, by private or public
<br />entities to purchase or take aay or all of'the Property through condemnation, eminent domain, or any other means. Trustor
<br />_.__ _ authorizes Beneficiary to lore-ivene in T.rustor's pame in arty of the above described actions or claims. Trustor assigns to
<br />Beneficiary the proceeds of any award or claim for damages connected with a condemnation or other taking of all or apy
<br />part of [he Property. Such proceeds shall be considered payments and will be applied as provided in this Security
<br />Instrument. This assigarnent of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreeniept or
<br />other Hen document.
<br />19. INSURANCE. Trustor shall keep Property insured against lass by fire, flood, theft and other hazards and risks reasonably
<br />associated with the Property due to its type and location. This insurance shall be maintained in the amounts apd for the
<br />periods that Beneficiary requires. What Lender requires pursuant to the preceding sentence can change during the term of
<br />the loan. The insurance carrier providing the insurance shall be chosep by Trustor subject to Beneficiary's approval, which
<br />shall pot be unreasonably withheld. If 'T'rustor fails to maiptaip the coverage described above, Beneficiary may, at
<br />Beneficiary's optiop, obtain coverage to protect Beneficiary's rights in the Property according to the terms of this Security
<br />Ipstrumept.
<br />All insurance policies and renewals shall be acceptable to Beneficiary and shall include" a standard "mortgage clause" and,
<br />where applicable, "loss payee clause." Trustor shall immediately notify Beneficiary of cancellation or termination of the
<br />insurance. Beneficiary shall have the right to hold the' policies and renewals. If Beneficiary requires, Trustor shall.
<br />immediately give to Beneficiary all receipts of paid premiums and renewal notices. Upon lass, Trustor shall give
<br />immediate notice to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made immediately by
<br />Trustor.
<br />~ (page 3 of 4
<br />~'" ®1994 8ankera Syatama, Inc„ St. Cloud, MN Farm RE-DT-NE 1!3012002 ~
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