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<br />14. DEFAULT. Trustor will be in default if any party obligated on the Secur�:d Debt fails to make payment when due. T'rustor
<br />will b� in default if a breach occurs under the terms of thia Security Insttument or any other document executed for the
<br />purpose of creating, securing or guarantying the Secured Debt. A good failh ix;lief by 13eneficiary that Bencficiary at any
<br />time is insecure with respect to any person or entity <>hligated on the Secured Debt c>r thxt the prospect of any payment or
<br />th� value of the Property is impaired shall also constitute �n event of default.
<br />15. REMEDIES ON DEFAULT. In some instances, federal and state law will ceyuire 13eneficiary to provide Trutitor with
<br />notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject ta these
<br />limitations, if any, Beneficiary may accelerate the Secured Deht xnd 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 fecs and charges, accrued interest and principal shall t�ecome
<br />unrnediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime
<br />thereafter. In addition, Beneficiary shall be entitled to all 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, Ttustee shall, in addition to any other permiUed nmcdy, at the request of the Beneficiary, advertitie
<br />and sell the Property as a whole or in separate parcels at public auction to the highest bidder for cash and convey ahsolute
<br />title free and clear of all right, title and interest of Trustc�r af such timc and place as 'I"rustee designates. Trustee shxll give
<br />natiCe of sale includirig the tirne, terms and place c�x sale and a description of the property to be sold as required by the
<br />applicable law in 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 absolut� title to the purchaser, and after first paying all fees, chargcs and costs, shall pay to
<br />$eneficiary all znoneys advanced for repairs, taxes, insirrance, liens, asse�srnents and prior encumbrances and interest
<br />thereon, and the principal and inferest on the 5ecured Debt, paying t}ae surplus, if any, tc� Trustor. Beneficiary may
<br />purchase the Property. 'I"he recitals in any deed of conveyanc� shall be prima facie evidence of the facts set forth therein.
<br />All remedies are distinct, cumulative and nnt exclusive, and the $eneficiary is entitled to all remedies provicled at law or
<br />equity, whether or not expressly set forth. The acceptance by Beneficiary of any sum in payment or partial payment ota ctte
<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 tc� tequire complete cure of any existing default. By not exercising any remedy on 1"rustor'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 COV�NANTS; ATTORN�YS' I��,�S; COLLECTION COSTS. F,xccpt wh�n
<br />prohibited by law, Trustor agrees to pay ali r�f Beneficiary's expenses if Trustor breaches any covenant in this Secuxify
<br />Instrument. Trustor will also pay on demand any amount incurred by Beneficiary for insuring, inspecting, preservin� or
<br />otherwise protecting the Property and Beneficiary's security interest. T'hese expenses will bear interest from the date of the
<br />paynnent until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. 'Trustor agrees
<br />to pay all costs and expenses incurred by Beneficiary in collecting, enforcing ot protecCing Beneficiary's rights and
<br />remedies under this Security Instrument. This amount znay include, but is not limited to, attorneys' fees, court costs, and
<br />other legal expenses. This Security Instrument shall remain in effect until released. 'T'rustor agrees to pay for any
<br />recordation costs of such telc:ase.
<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUI3STANCES. As used in this section, (1) Environmental I,aw
<br />means, withaut lunitation, the Comprehensive Environmental Response, C,c�mpensation and I.iability Act (CERCLA, 42
<br />U.S.C. 9601 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general
<br />opinions or interpretive letters concerning the public health, safety, welfare, environment or a ha�ardous 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 to the public health, safety, welfare or
<br />environment. The term includes, without limitation, any substances defined as "hazardous material," "tc�xie substancr�s,"
<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 tc� Benefieiary, no Hazardous Substanee is or will bc
<br />located, stored or released on or in the Property. This restriction does not apply to small quantities uf Fiazardous
<br />Substances that are generally recognized to Y�e appropriate tor the normal use and maintenance of the Property.
<br />B. Except as previously disclosed and acknc�wledged in writing to �3eneficiary, Trustr�r and every tenant have been, are,
<br />and shall rennain in full cornpliance with any applicable �nvironmental T..aw.
<br />C. Trustor shall immediately notify Beneficiary if a release nr threatened release of a IIazardous Substance occurs on,
<br />uander or akx�ut the Property nr there is a violation c�f any Environmental I.aw concerning the Property. in such an
<br />event, Trustor shall take all necessary remedial action in accordance with any F,nvironmental Law.
<br />D. Trustor shall unrnediately notify Beneficiary in writing as soon as Trustcir has reascm to helieve 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 I.aw.
<br />18. CONDEMNATION. Trustor will give Beneficiary prompt notice of any pending or threatened action, by private or public
<br />entities to purehase or take any nr all nf the Property through conclemnation, eminent domain, or any other means. Trustor
<br />authorizes Bene�iciary to intervene itt Tn�stor's name in any c�f the above described actions or claims. 1"rustor assigns to
<br />Benefieiary the proceeds of any award c�r claim for ciamages cc�nnected with a condemnation or other taking of all or any
<br />part of the Property. Such proceeds shall be considered payments and will be: applied as provided in this Security
<br />-------- - - -. _.._. .__
<br />Instrurrient. This assignment of procee sc�`is su _�ect to t$e terms o� any pric�r mortgage, deed of trust, securrty agreement or
<br />other lien document.
<br />19. INSiJRANCE. Trustor shall keep Property insured against loss by fire, flood, theft and other hazarcls and risks reasonably
<br />associated with the Property due to its type and location. 'I'his insur�nce shall be maintained in the amounts and fnr the
<br />periods that Beneficiary requires. What Lender requires pursuant to the prec�ding sentence can change during the term of
<br />the loan. The insuranc� carrier providing the insurance shall be chosen by 'I'rustor subject to Beneficiary's appraval, which
<br />shall not be unreasonably withheld. If Trustor fails to maintain the coverage described above, 13eneficiary may, at
<br />Beneficiary's option, obtain coverage to protect $eneficiary's rights in the Property accorciing to the terms of this Seci�rity
<br />Instrument.
<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 cancellatic>n c�r 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 c�f paid premiums and renewal notices. Upcin loss, Trustor shall give
<br />iznmediate notice to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if not m�de immediately by
<br />Trustor.
<br />(page 3 of �FJ
<br />Fj(��� p1994 Bankers Systems, Inc., St. Claud, MN Form RE-DT-NE 1l30/2002
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