|
16. DEFAULT. Grantor will be in default if any of the following occur:
<br />A. Any party obligated on the Secured Debt fails to make payment when due; A
<br />B. A breach of any term or covenant in this Deed of Trust, any prior mortgage or any construction loan v[
<br />agreement, security agreemem or any other document evidencing, guarantying, securing or otherwise
<br />relating to the Secured Debt;
<br />C. The making or furnishing of any verbal or written representation, statement or warranty to Lender that
<br />is false or incorrect in any material respect by Grantor or any person or entity obligated on the Secured
<br />Debt;
<br />D. The death, dissolution, or insolvency of, appointment of a receiver for, or application of any debtor
<br />relief law to, Grantor or any person or entity obligated on the Secured Debt;
<br />E. A good faith belief by Lender at any time that Lender is insecure with respect to any person or entity
<br />obligated on the Secured Debt or that the prospect of any payment is impaired or the value of the
<br />Property is impaired;
<br />F. A material adverse change in Grantor's business including ownership, management, and financial
<br />conditions, which Lender in its opinion believes impairs the value of the Property or repayment of the
<br />Secured Debt; or
<br />G. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible
<br />land or to the conversion of wetlands to produce an agricultural commodity, as further explained in 7
<br />C.F.R. Part 1940, Subpart G, Exhibit M.
<br />17. REMEDIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Grantor
<br />with notice of the right to cure, mediation notices or other notices and may establish time schedules for
<br />foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt and foreclose
<br />this Deed of Trust in a manner provided by law if this Grantor is in default.
<br />At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall
<br />become immediately due and payable, after giving notice if required by law, upon the occurrence of a default
<br />or anytime thereafter. In addition, Lender shalt be entitled to all the remedies provided by law, the Evidence
<br />of Debt, other evidences of debt, this Deed of Trust and any related documents including without limitation,
<br />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 Lender,
<br />advertise and sell the Property as a whole or in separate parcels at public auction to the highest bidder for
<br />cash, after having fast given such notice of hearing as to commencement of foreclosure proceedings and
<br />obtained such findings or leave of court as may be then required by law, and convey absolute title free and
<br />clear of all right, title and interest of Grantor at such time and place as Trustee designates. Trustee shall give
<br />notice of sale including the time, terms and place of sale and a description of the property to be sold as
<br />required by the 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
<br />the Property sold which conveys absolute title to the purchaser, and after first paying all fees, charges and
<br />costs, including the Trustee's commission, shall pay to Lender all moneys advanced for repairs, taxes,
<br />insurance, liens, assessments and prior encumbrances and interest thereon, and the principal and interest on
<br />the Secured Debt, paying the surplus, if any, to Grantor. The Trustee's commission shall be five percent of
<br />the gross proceeds of the sale for a completed foreclosure. Lender may purchase the Property. The recitals in
<br />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 Lender is entitled to all remedies provided at
<br />law or equity, whether expressly set forth or not. The acceptance by Lender of any sum in payment or partial
<br />payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are
<br />filed shall not constitute a waiver of Lender's right to require full and complete cure of any existing default.
<br />By not exercising any remedy on Grantor's default, Lender does not waive Lender's right to later consider
<br />the event a default if it continues or happens again.
<br />18. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except
<br />when prohibited by law, Grantor agrees to pay all of Lender's expenses if Grantor breaches any covenant in
<br />this Deed of Trust. Grantor will also pay on demand all of Lender's expenses incurred in collecting, insuring,
<br />preserving or protecting the Property or in any inventories, audits, inspections or other examination by
<br />Lender in respect to the Property. Grantor agrees to pay all costs and expenses incurred by Lender in
<br />enforcing or protecting Lender's rights and remedies under this Deed of Trust, including, but not limited to,
<br />attorneys' fees, court costs, and other legal expenses. Once the Secured Debt is fully and finally paid, Lender
<br />agrees to release this Deed of Trust and Grantor agrees to pay for any recordation costs. All such amounts
<br />are due on demand and will bear interest from the time of the advance at the highest rate in effect, from time
<br />to time, as provided in the Evidence of Debt and as permitted by law.
<br />19. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1)
<br />"Environmental Law" means, without limitation, the Comprehensive Environmental Response, Compensation
<br />and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations,
<br />ordinances, court orders, attorney general opinions of interpretive letters concerning the public health, safety,
<br />welfare, environment or a hazardous substance; and (2) "Hazardous Substance" means any toxic, radioactive
<br />or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance
<br />dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes,
<br />without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or
<br />"hazardous substance" under any Environmental Law. Grantor represents, warrants and agrees that, except as
<br />previously disclosed and acknowledged in writing:
<br />A. No Hazardous Substance has been, is, or will be located, transported, manufactured, treated, refined,
<br />or handled by any person on, under or about the Property, except in the ordinary course of business
<br />and in strict compliance with all applicable Environmental Law.
<br />B. Grantor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on
<br />the Property.
<br />C. Grantor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance
<br />occurs on, under or about the Property or migrates or threatens to migrate from nearby property; or
<br />(2) there is a violation of any Environmental Law concerning the Property. In such an event, Grantor
<br />will take all necessary remedial action in accordance with Environmental Law.
<br />r--~l~, ~ O 1883 Bankers ByHam", IM., SL CIoW, MN frorm AOICO-DT-NC 8/22/2001
<br />page 4 0! 7
<br />
|