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;� � �� f, �. � � 2oioos2is
<br />Financial Reports and Additional Documents. Trustar will provide to Beneficiary, upon request, any financial statement
<br />or information Seneficiary may deem reasonably necessary. Trustar agrees to sign, del�ver, and file any additional
<br />documents or certi�cations that Beneficiary may consider necessary to p�rfect, cantinue, and preserve Trustar's abligations
<br />under this Security lnstrument and Benefic�ary's l�en status on the Pxoperty.
<br />6. WARRANTY Ok TITLE. Trustor warrants that Trustor is or will be lawfully seized of the estate conveyed by this
<br />Security Jnstrument and has the right to irrevocably grant, convey, and sell the Property to 'Crustee, in trust, with power of
<br />sale. Trustar 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 due and
<br />payable upon the creation of, or contract for the creation of, a transfer or sale of the Property. This right is sub�ect to the
<br />restrictions imposed by federal law (12 C.F.R. 591), as applicable.
<br />8. DEFAULT. Trustor will be in default if any of the follawing occur;
<br />Fraud. Any Consumer �orrower engages in fraud ar material misreprssentatian in connection with the Secured Debt that
<br />is an open end horne equity plan.
<br />Paymcnts. Any Consumer Borrower on any Secured Debt that is an open end honne equity plan fails to make a payment
<br />when due.
<br />Property. Any action or inaction by the Borrower or Trustor occuxs that adversely affects the Praperty ar Bene�ciary's
<br />rights in the Property. This includes, but is not limited to, the fallowing: (a) Trustar fails to maintain required insurance
<br />an the Property; (b) Trustor transfers Che Property; (c) Trustor commits waste or atherwise destructively uses or fails to
<br />maintain the Aroperty such that the actian or inactxon adversely, affects Beneficiary's security; (d) Trustar fails to pay taxes
<br />on the Property or otherw�se fails to act and thereby causes a lien to be filed agamst the Praperty that is seniar to the lien
<br />of this Security lnstrument; (e) a sole Trustor dies; (� if more than one Trustor, any 'I`rustar dies and Beneficiary's
<br />security is adversely affected; (g) the Property is taken through eminent dornain; (h) a judgment is �led against Trustor and
<br />subjects Trustor and the Property ta 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.
<br />Executive Officers. Any Borrawer is an executive officer of Beneficiary or an affiliate and such Borrawer becomes
<br />indebted to BenePiciary or another lender in an aggregate amaunt greater than the amount permitted under federal laws and
<br />regulations.
<br />9. REMEDIES ON DEFAULT. In additian to any other remedy availablc under the terms of this Securicy Instrument,
<br />Beneficiary may accelerate the Secured Debt and fareclose chis Security Instrumcnt in a manner provided by law if Trustor
<br />is in default. In sotne instances, federal and state law will rcquire Beneficiary to provide Trustor with notice of the right to
<br />cure, ar other notices and may establish time schedules for fareclosure actions. Each Trustor requests a copy of any notice
<br />of default and any notice of sale thereunder be mailed to each 7'rustor 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 became
<br />immediately due and payable, after givxng notice if required by law, upon the accurrence of a default or anytime
<br />thereafter.
<br />If there is a default, Trustee shall, at the request of the Beneficiary, advertise and sell the Pro perty as a whole or in
<br />separate parcels at public auction to the highest bidder far cash and convey absolute title free and clear af all right, title
<br />and interest af Trustor at such time and place as Trustee designates. Trustee shall give notice of sale including the time,
<br />terms and place af sale and a description af the property to be sald as required by the applicable law in effect at the time of
<br />ths proposed sa1e.
<br />Upon sale of the Property and to the extent not �rohibited by law, Trustee shall make and deliver a deed to the Property
<br />sold which canveys absolute title to the , purchaser, and after farst paying all fees, charges and costs, shall pay to
<br />Beneficiary all maneys, advanced for repairs, taxes, insurance, liens, assessments and priar encumUrances and interest
<br />thereon, and the principal and interest on the Secured Debt, paying the surplus, if any, to Trustor. �eneficiary may
<br />purchase che Property. The recitals in any deed of conveyance shall be prrrna facie evidence of the facts set forth therein.
<br />"1'he 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 constrtute a waiver of Beneficiary 's right to require complete
<br />cure of any existing default. $y not exercis�ng 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.
<br />10. EXPENSES; ADVANCES ON COVENANTS; ATTORIVEYS' FEES; COLLECTION COSTS. If Trustor breaches
<br />any covenant in this Security Instrument, Trustar 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 noi lirnued to, fees mcurred for
<br />inspecting, preserving, or otherwise protecting the Property and Beneficiary's security interest. These expenses are payable
<br />on demand and will bear interest from the date of payment until paid in full at the highest rate of interest in effect as
<br />provided in the terms of the Secured Debt. 1'rustar agrees to pay all costs and expenses incurred by Beneficiary in
<br />collectmg, enforcing or protecdng Beneficiary's rights and remedies under this Security Instrument. This amount may
<br />include, but is not limited to, Trustee's fees, court costs, and other le�al expenses. To the extent permitted by the United"
<br />Staies Bankruptcy Code, Truscor agrees to pay the reasonable attorneys fees Beneficiary incurs to collect the Secured Debt
<br />as awarded by any court exercising �urrsdict�on under the Bankruptcy Code. This 5ecurity Instrument shall remain in effect
<br />until celeased. Trustnr agrees ta pay for any recordatinn costs of such release.
<br />11. ENVIRONMENTA�. I.AWS AND HA2ARDOUS SUBSTANCES. As used in this section, (1) Environmental Law
<br />means, without limitation, th� 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, attarney general
<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 hazardaus material, waste, pallutant or cantaminant which has
<br />characteristics which render the substance dangerous or potentially dangerous co 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.
<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and acknowledged in writing to Beneficiary, no Hazardaus Substance is or will be
<br />located, stored or released on or in the Property. This restriction does not apply io 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 in writinp to Beneficiary, Trustar and every Cenant have been, are,
<br />and shall remain in full compliance with any ap�licable �nvironmental I,aw.
<br />C. Trustor shall immediately notify Beneficiary if a release or threatened release af a Hazardous Substance occurs on,
<br />under or about the Prope.rty or there is a violation of any Environmental Law concerning the Property. In such an
<br />event, Trustnr shall take all necessary remedial action in accardance with any Environmental Law.
<br />� �page�
<br />�"' � 1994 Bankers Systems, Inc., St. Cloud, MN Form OCP-REDT-NE 1/31/2003
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