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298162003
<br />COVENANTS
<br />1. Payments. Borrower'a rees to make all
<br />y g payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any
<br />payments Lender receives from Borrower or for Borrower's benefit will be applied first to any amounts Borrower owes on the secured debt
<br />exclusive of interest or principal, second to interest, and then to principal. If partial prepayment of the secured debt occurs for any reason, it will
<br />not reduce or excuse any schedule(t payment until(the secured debt is paid in full.
<br />2. Claims Against Title. BorrowerMdl, ipay all taxes, assessments, and other charges attributable to the property when due and will defend title
<br />to the property against any claims which would impair the lien of this deed of trust. Lender may require Borrower to assign any rights, claims or
<br />defenses which BoIrrowdr may have against partis$ who supply labor or materials to improve or maintain the property.
<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benefit. All
<br />insurance policies shall include a standard mortgage clause in favor of Lender. Lender will be named as loss payee or as the insured on any such
<br />insurance policy. Any insurance proceeds may be applied, within Lender's discretion, to either the restoration or repair of the damaged property
<br />or to the secured debt. If Lender requires mortgage insurance, Borrower agrees to maintain such insurance for as long as Lender requires.
<br />4. Property. Borrower will keep the property in good condition and make all repairs reasonably necessary.
<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower breaks any covenants in this deed
<br />of trust or in any obligation secured by this deed of trust. Borrower will pay these amounts to Lender as provided in Covenant 9 of this deed of
<br />trust.
<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written consent, Borrower will not make or permit any changes to any prior
<br />security interests. Borrower will perform all of Borrower's obligations under any prior mortgage, deed of trust or other security agreement,
<br />including Borrower's covenants to make payments when due.
<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rents and profits of the property. Unless Borrower and Lender have agreed
<br />otherwise in writing, Borrower may collect and retain the rents as long as Borrower is not In default. If Borrower defaults, Lender, Lender's
<br />agent, or a court appointed receiver may take possession and manage the property and collect the rents. Any rents Lender collects shall be
<br />applied first to the costs of managing the property, including court costs and attorneys' fees, commissions to rental agents, and any other
<br />necessary related expenses. The remaining amount of rents will then apply to payments on the secured debt as provided in Covenant 1.
<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease if this deed of trust is on
<br />a leasehold. If this deed of trust is on a unit in a condominium or a planned unit development, Borrower will perform all of Borrower's duties
<br />under the covenants, by -laws, or regulations of the condominium or planned unit development.
<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform any of Borrower's duties under this deed of trust, Lender may
<br />perform the duties or cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any
<br />construction on the property is discontinued or not carried on in a reasonable manner, Lender may do whatever is necessary to protect Lender's
<br />security interest in the property. This may include completing the construction.
<br />Lender's failure to perform will not preclude Lender from exercising any of its other rights under the law or this deed of trust.
<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed of trust. Such amounts will be due on demand
<br />and will bear interest from the date of the payment until paid in full at the interest rate In effect on the secured debt.
<br />10. Default and Acceleration. If Borrower fails to make any payment when due or breaks any covenants under this deed of trust or any
<br />obligation secured by this deed of trust or any prior mortgage or deed of trust, Lender may accelerate the maturity of the secured debt and
<br />demand immediate payment and may invoke the power of sale and any other remedies permitted by applicable law.
<br />11. Request for Notice of Default. It is hereby requested that copies of the notices of default and sale be sent to each person who is a party
<br />hereto, at the address of each such person, as set forth herein.
<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shall first record in the office of the register of deeds of each county
<br />wherein the trust property or some part or parcel thereof is situated a notice of default containing the information required by law. The Trustee
<br />shall also mail copies of the notice of default to the Borrower, to each person who is a party hereto, and to other persons as prescribed by
<br />applicable law. Not less than one month after the Trustee records the notice of default, or two months if the trust property is not in any
<br />incorporated city or village and is used in farming operations carried on by the trustor, the Trustee shall give public notice of sale to the persons
<br />and in the manner prescribed by appplicable law. Trustee, without demand on Borrower, shall sell the property at public auction to the highest
<br />bidder. If required by the Farm omestead Protection Act, Trustee shall offer the property in two separate sales as required by applicable law.
<br />Trustee may postpone sale of all or any parcel of the property by public announcement at the time and place of any previously scheduled sale.
<br />Lender or its designee may purchase the property at any sale.
<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in
<br />Trustee's deed shall be prima facie evidience of the truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the
<br />following order: (a) to all expenses of the sale, including, but not limited to, reasonable Trustee's fees, reasonable attorney's fees and
<br />reinstatement fees; (b) to all sums secured by this deed of trust, and (c) the balance, if any, to the persons legally entitled to receive it.
<br />13. Foreclosure. At Lender's option, this deed of trust may be foreclosed in the manner provide by applicable law for foreclosure of mortgages
<br />on real property.
<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable
<br />cause for Lender's inspection.
<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking
<br />of all or any part of the property. Such proceeds will be applied as provided in Covenant 1. This assignment is subject to the terms of any prior
<br />security agreement.
<br />16. Waiver. By exercising any remedy available to Lender, Lender does not give up any rights to later use any other remedy. By not exercising
<br />any remedy upon Borrower's default, Lender does not waive any right to later consider the event a default if it happens again.
<br />17. Joint and Several Liability; Co- signers; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any
<br />Borrower who co -signs this deed of trust but does not co -sign the underlying debt instrument(s) does so only to grant and convey that
<br />Borrower's interest in the property to the Trustee under the terms of this deed of trust. In addition, such a Borrower agrees that the Lender and
<br />any other Borrower under this deed of trust may extend, modify or make any other changes in the terms of this deed of trust or the secured
<br />debt without that Borrower's consent and without releasing that Borrower from the terms of this deed of trust.
<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of Lender and Borrower.
<br />18. Notice. Unless otherwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certified mail addressed to
<br />Borrower at the property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified
<br />mail to Lender's address on page 1 of this deed of trust, or to any other address which Lender has designated. Any other notice to Lender shall
<br />be sent to Lender's address as stated on page 1 of this deed of trust.
<br />Any notice shall be deemed to have been given to Borrower or Lender when given in the manner stated above.
<br />19. Transfer of the Property or a Beneficial Interest in the Borrower. If all or any part of the property or any interest in it is sold or transferred
<br />without Lender's prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immediate
<br />payment if the Borrower is not a natural person and a beneficial interest In the Borrower is sold or transferred. However, Lender may not
<br />demand payment in the above situations if it is prohibited by federal law as of the date of this deed of trust.
<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advances
<br />under the instruments or agreements secured by this deed of trust,. the Trustee shall, upon written request by the Lender, reconvey the trust
<br />property. The Lender shall deliver to the Borrower, or to Borrower's successor in interest, the trust deed and the note or other evidence of the
<br />obligation so satisfied. Borrower shall pay any recordation costs.
<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a copy of the
<br />substitution of trustee as required by applicable law, and then, by filing the substitution of trustee for record in the office of the register of deeds
<br />of each county in which the trust propefty, or some part thereof, is situated. The successor trustee, without conveyance of the property, shall
<br />succeed to all the power, duties, authority ano title of the Trustee named In the deed of trust and of any successor trustee.
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<br />BANKERS SYSTEMS, INC., ST. CLOUD, MN 56301 (1,800 -197 -2341) FORM OCP- MTG- NE,6/19/91
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