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20�104742
<br />I�nancial Reparts and Additional Documents. Trustor will provide to Beneficiary upon request, any fmancial statement
<br />or information Beneficiary may deem reasonably necessary. Trustor agrees to sign, deliver, and file any additional
<br />documents or certifications that Beneficiary, may consider necessary to perfect, continue, and preserve Trustor's obligations
<br />under Chis 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, wrth power of
<br />sa1e. 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 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 unposed by federallaw (12 C.F.R. 591), as applicable.
<br />S. DEFAULT. Trustor will be in default if any of the following occur:
<br />Fraud. Any Consumer Bonower engages in fraud or material misrepresentation in connection with the Secured Debt that
<br />is att open end home equity plan.
<br />Payments. Any Consumer Borrower on any Secured Debt that is an open ettd home equity plan fails to make a payment
<br />when due.
<br />Property. Anny action or inaction by the Borrower or Trustor occurs that adversely affects the Properly or Beneficiary's
<br />rights in the Property. This includes, but is not lunited to, the following: (a) Trustor fails to maintaui required insurancQ
<br />on the Property; (b} Trustor transfers the Property; (c) Trustor commits waste or otherwise destructively uses or fails to
<br />maintain the Property such that the action or inaction adversely affects Beneficiat� s security; (d) Trustor fails to pay taxes
<br />on the Property or otherwise fails to act and thereby causes a lien to be filed against the Property that is senior to the lien
<br />of this Secunty Instrument; (e) a sole Trustor dies; (fl �f more Chan one Trustor, any Trustor dies and Beneficiary's
<br />security is adversely affected; (g) the Property is taken through enunent domain; (h) a judgment is filed against Trustor and
<br />subjects Trustor and the Property to action that adversely affects Beneficiary's interest; or (i) a pnor lienholder forecloses
<br />on the Property and as a result, Beneficiary's interest is adversely affected.
<br />Executive Officers. .Any Bonower 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 pernutted under federal laws and
<br />regulations.
<br />9. REMEDIES UN DEFAULT. In addition to any other remedy available under the terms of this Security Instrument,
<br />Beneficiary may accelerate the Secured Debt and foreclose this Secunty Instrument in a manner provided by �aw if Trustor
<br />is in default. In some instances, federal and state law will require Beneficiary to provide Trustor with notice of the right to
<br />cure, or other notices and may establish time schedules for foreclosure actions. Each Trustor requests a copy of any notice
<br />of default and any notice of sale thereunder be mailed to each Trustor at the address provided in 5ection 1 above.
<br />At the option of the Beneficiary, all or any part of the agreed fees and chazges, accrued interest and principa1 shall become
<br />immediately due and payable, after givmg notice if required by law, upon the occurrence of a default or anytime
<br />thereafter.
<br />If there is a default, Trustee sha11, 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, title
<br />and interest of TrusCor at such time and place as TrusCee designates. Trustee shall give notice of sale including the time,
<br />terms and place of sale and a description of the property to be sold as required by the applicable law in efFect at the time of
<br />the proposed sa1e.
<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 �rst paying a11 fees, charges and costs, shall pay to
<br />Bene�ciary a11 moneys advanced for repairs, taxes, insurance, liens, assessments and prior encumbrances and mterest
<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 re�itals in any deed of conveyance sha11 be prima facie evidence of the facts set forth therem.
<br />The acceptance by Beneficiary of any sum in payment or partial pay,ment on the Secured Debt after the balance is due or is
<br />accelerated or after foreclosure proceedings are filed sha11 not consritute a waiver of Beneficiary 's right to require complete
<br />cure of any existing default. By not exercising any remedy on Trustor's default, Bene�ciary does not waive Beneficiary's
<br />right to later consider the event a default if it happens again.
<br />10. EXPENSES; ADVANCES 4N COVENANTS; ATTORNEYS' FEES; COLLEC7'ION COSTS. If Trustor breaches
<br />any covenant in this Security Instrument, Trustor agrees to pay all ex�enses Beneficiary incurs in perfonming such
<br />covenants or protecting its secunty mterest in the Property. Such expenses mclude, but are not limited to, fees incurred for
<br />inspecting, preserving, or otherwise proCecting 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 raCe of interest in effect as
<br />provided in the terms of the Secured Debt. Trustor agrees to pay all costs and expenses incnned b�}� - Beneficiary in
<br />collecting, enforcing or protecting 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�a1 expenses. To the extent permitted by the United
<br />States Bankruptcy Code, Trustor agrees to pay the reasonable attomeys fees Beneficiary incurs to collect the S'ecured Debt
<br />as awarded by any court exercising jurisdiction under the Banla�uptcy Code. This Secunty Instrument shall remain in effect
<br />until released. Trustor agrees to pay for any recordation costs of such release.
<br />11. ENVIRONMENTAL LAWS AND HAZARDOUS SUB5TANCES. As used in this section, (1) Environmental Law
<br />means, without limitation, the 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, attomey general
<br />opinions or interprerive letters concetning the public health, safety, welfaze, environment or a hazardous substance; and (2)
<br />Hazardous Substanc� 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," "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 Hazardous Substance is or will be
<br />located, stored or released on or in the Properly. This restriction does not apply to small quantities of Hazardous
<br />Substances that are generally recognized to be ap ropnate for the normal use and maintenance of the Property.
<br />B. Except as previously disclosed and acl�owledg� in wriring to Beneficiary, Trustor and every tenant have been, are,
<br />and shall remaui in full compliance with any applicable Environmental Law.
<br />C. Trustor sha11 immediately notify Betteficiary if a release or threatened release of a Hazardous Substance occurs on,
<br />under or about the Property or there is a violation of any Environmental Law concerning the Property. In such an
<br />event, Trustor sha11 take a11 necessary remedial action in accordance with any Environmental Law.
<br />� (pege 3 of 4J
<br />�
<br />�"' p 1994 Bankers Systems, Inc., St. Claud, MN Form OCP-REDT-NE 1/31(2003
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