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<br />14. DEFAULT. Trustor will be in default if any patly obligated on the Secured Debt fails to make payment when due. Trustor
<br />will he in default if a breach occurs under the terms of this Security Instrument or any other document executed for the
<br />purpose of creating, securing or guarantying the Secured Debt. A goad faith belief by Beneficiary that Beneficiary at any
<br />time is insecure with respect to any person or entiry obligated on the Secured Debt or that the prospect of any paymeat or
<br />the value of the Property is impaired sha11 also constitute 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 ather notices and may establish time schedules for foreclosure actions. Subject to these
<br />limitations, if any, Beneficiary inay 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, a11 or any part of the agreed fees and charges, accrued interest and principal shall become
<br />unmediately 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 tertns of the Secured Debt,
<br />this Securiry Instnunent and any related documents, inclnding 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 Bene�ciary, advectise
<br />and sell the Property as a whole or in separate parcels at public auction to the highest bidder for cash and convey absolute
<br />title free and clear of a11 right, title and interest of Trustor at such time and place as Trustee designates. Trustee sha11 give
<br />notice of sale including the time, ternts and place of sale and a description of the property to i� sold as required bq the
<br />applicable law in effect at the time of the proposed sa1e.
<br />Upon sale of the Properiy 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 aad interest on the Secured Debt, paying the surplus, if any, to Trustor. Beneficiary may
<br />purchase the Properly. The recitals in any deed of conveyance shall be prima. facie evidence of the facts set forth therein.
<br />All remedies are distinct, cumulative and not exclusive, and the Bene�ciary is entided to all remedies provided at�law or
<br />equity, �whether or not expressly set forth. The acceptance by Bene�ciary of any sum in payment or partial payment on the
<br />5ecared Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a
<br />waiver of Bene�ciary'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; AT°rORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohibited by law, Trustor agrees to pay a11 of Beneficiary's expenses if Trustor breaches any covenaat in this Securiry
<br />Instrument. Trustor will also pay on dennand any amount incurred by Beneficiary for insuring, inspecting, preserving or
<br />otherwise protecting the Properiy and Beneficiary's securiry interest. These ex�nses will bear interest from the date of the
<br />payment until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Tntstor agrees
<br />to pay all costs and expenses incurred by Beneficiary in collecting, enforcing or protecting Bene�ciary's rights and
<br />remedies under this Securiry Instrument. This amount may include, but is not linnited to, attorneys' fees, court costs, and
<br />other legal expenses. This Security Instrwnent shall remain in effect until released. Trustor agrees to pay for any
<br />recordation costs of such release.
<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Enviromnental Law
<br />means, without limitation, the Comprehensive Envitomnental Res�nse, Compensation and Lia.biliry 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 hea.ith, safety, welfare, euvironment or a hazardous substance; and (2)
<br />Hazardaus 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, safery, welfare or
<br />environment. The term includes, without limitation, any substances defined as "hazardous maierial," "toxic substances,"
<br />"hazardous waste" or "haza.rdous substa.nce" under any Environmental Law.
<br />Trustor represents, warrants and agrees that:
<br />A. Except as previously disclosed and acknowledged ia writing to Beneficiary, no Hazardous Substance is or wil1 be
<br />located, stored or released on or in the Property. This restriction does not apply to 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 writing to Bene�ciary, Trustor and every tenant have been, are,
<br />and sha11 remain in full compliance with any applicable Enviromnental Law.
<br />C. Trustor shall immediately notify Bene�ciary if a release or threatened release of a Hazardous Substance accurs on,
<br />under or about the Pioperly or there is a violation of any Environmental Law concerning the Properiy. In such an
<br />evenC, Trustor shall take all necessary remedial action in accordance with any Environmental Law.
<br />D. Trustor sha11 immediately notify Benef'iciary in writing as soon as Trustor has reason to believe there is any pending
<br />or Wreatened investigation, ciaim, or proceeding relating to the release or threatened release of any Hazardous
<br />Substance or the violation of any Enviromnental L,aw.
<br />18. CONDEMNATION. Trustor will give Bene�ciary prompt notice of any pending or threatened action, by private or public
<br />entities to purchase or take any or all of the Properiy through condemnation, eminent domain, or any other means. Trustor
<br />authorizes Beneficiary tv intervene in Trustor's name in any of the above described actions or claims. Trustor assigns to
<br />Beneficiary the proceeds of any award or claim foz damages connected with a condemnation ar other taking of a11 or any
<br />part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security
<br />Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or
<br />other lien document.
<br />19. INSURANCE. Trustor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably
<br />associaCed with the Property due to its rype and location. This insurance sha11 be maiatained in the amounts and for the
<br />periods that Bene�ciary 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 chosen by Trustor subject to Bene�ciary's approval, which
<br />shall not be unreasonably withheld. tf Trustor fails to maintain the coverage described above, Bene�ciary may, at
<br />Beneficiary's option, obtain covera.ge to protect Beneficiary's rights in the Property according to the terms of this Secnrity
<br />Insttument.
<br />All insurance policies and renewals shall be acceptable to Bene�ciary and shall include a standard "mortgage clause" and,
<br />where applica.ble, "loss payee clause." Trustor shall immediately notify Beneficiary of cancellation or termination of the
<br />insurance. Beneficiary sh�11 have the right to hold the policies and renewals. If Bene�ciary requires, Trustor shall
<br />immediately give to Beneficia:ry a11 receipts� of paid premiums and renewal notices. Upon loss, Trustor shall give
<br />immediate notice to We insurance carrier and Beneficiary. Bene�ciary may make proof of loss if not made imme�iately by
<br />Trustor.
<br />/page 3 of 41
<br />�"" OO 1994 Bankers Systems, irx.. St. Cloud. MN Form RE-DT-NE 1(3ob?DO��
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