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good right and lawful authority to sell and convey the Property; that the Property
<br />is free and clear of all liens and encumbrances, except those now of record,
<br />including that first lien held by Farm Credit; and, Trustor will warrant and defend
<br />the title to the Property unto the Trustee and its successors and assigns forever
<br />against the claims of all persons. Trustor, at its sole expense, will maintain and
<br />preserve the lien of this Trust Deed as a second lien on the Property; will cause
<br />this Trust Deed, and all amendments or supplements thereto, if any, to be filed
<br />and recorded as a mortgage of the Property in such place and in such manner, and
<br />will take such other action as in the opinion of the Trustee may be required by any
<br />present or future law in order to perfect and maintain and protect the lien of this
<br />Trust Deed as a second lien, as the same may, from time to time, be amended or
<br />supplemented.
<br />2. Payment of Principal and Interest. Trustor shall punctually pay the
<br />principal of, and interest on, the Property Equalization, including any advances
<br />thereon, as provided therein, on the dates and at the place and in the manner
<br />provided therein, and will punctually perform all agreements, covenants, and
<br />provisions of this and any other security instrument given in connection with this
<br />transaction.
<br />3. Preservation and Maintenance of the Property. Trustor will not
<br />commit any waste upon the Property and will, at all times, maintain and preserve
<br />the same in good order and repair, and will make, from time to time, all repairs,
<br />renewals, replacements, additions, and improvements which are reasonably
<br />required to prevent waste, impairment and deterioration of the Property. No
<br />building or improvements now or hereafter erected upon the Property shall be
<br />altered, removed, or demolished without the prior written consent of the
<br />Beneficiary.
<br />4. Damage to Property. In case of any damage to or destruction of the
<br />buildings, improvements, or personal property constituting part of the Trust
<br />property, whether such loss is covered by insurance or otherwise, Trustor, at its
<br />sole expense and cost will promptly restore, repair, replace, and rebuild the same
<br />as nearly as practicable to its condition immediately preceding such damage or
<br />destruction, or with such changes and alterations as Trustor may deem
<br />appropriate, provided such changes and alterations do not materially lessen the
<br />value and utility of the buildings, improvements, and personalty from that existing
<br />immediately prior to such damage or destruction. Trustor shall be entitled to
<br />reimbursement from Trustee, but only to the extent of the actual sums expended,
<br />and those actually received from any insurance companies.
<br />5. Insurance. Trustor, at its expense, will maintain with insurers approved
<br />by Beneficiary, insurance with respect to the improvements and personalty
<br />constituting the Property against loss by fire, lightning, tornado, flood, or other
<br />perils covered by standard extended coverage endorsement, in an amount equal to
<br />at least one hundred percent (100 %) of the full replacement value thereof; and
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