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<br />8. Protection of lien. Borrower shall pay or reimburse the Government for expenses reasonably necessary or
<br />incidental to the protection of the lien and its priority and the enforcement or compliance with this instrument and
<br />the note. Such expenses include, but are not limited to: costs of evidence of title to, and survey of, the property,
<br />costs of recording this and other instruments; attorneys' fees, trustees' fees; court costs, and expenses of advertising,
<br />selling, and conveying the property.
<br />9. Authorized purposes. Borrower shall use the loan evidenced by the note solely for purposes authorized
<br />by the Government.
<br />10. Repair and operation of property. Borrower shall: (a) maintain improvements in good repair; (b) make
<br />repairs required by the Government; (c) comply with all farm conservation practices and farm management plans
<br />required by the Government; and (d) operate the property in a good and husbandlike manner. Borrower shall not
<br />(e) abandon the property; (f) cause or permit waste, lessening or impairment of the property; or (g) cut, remove, or
<br />lease any timber, gravel, oil, gas, coal, or other minerals without the written consent of the Government, except as
<br />necessary for ordinary domestic purposes.
<br />11. Legal compliance. Borrower shall comply with all laws, ordinances, and regulations affecting the
<br />property.
<br />12. Transfer or encumbrance of property. Except as provided by Government regulations, the Borrower
<br />shall not lease, assign, sell, transfer, or encumber, voluntarily or otherwise, any of the property without the written
<br />consent of the Government. The Government may grant consents, partial releases, subordinations, and satisfactions
<br />in accordance with Government regulations.
<br />13. Inspection. At all reasonable times the Government may inspect the property to ascertain whether the
<br />covenants and agreements contained in this instrument are being performed.
<br />14. Hazardous substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release
<br />of any hazardous substances on or in the property. The preceding sentence shall not apply to the presence, use, or
<br />storage on the property of small quantities of hazardous substances that are generally recognized to be appropriate to
<br />normal use and maintenance of the property. Borrower covenants that Borrower has made full disclosure of any
<br />such known, existing hazardous conditions affecting the property. Borrower shall not do, nor allow anyone else to
<br />do, anything affecting the property that is in violation of any federal, state, or local environmental law or regulation.
<br />Borrower shall promptly give the Government written notice of any investigation, claim, demand, lawsuit or other
<br />action by any governmental or regulatory agency or private party involving the property and any hazardous
<br />substance or environmental law or regulation of which Borrower has actual knowledge. If Borrower learns, or is
<br />notified by any governmental or regulatory authority, that any removal or other remediation of any hazardous
<br />substance affecting the property is necessary, Borrower shall promptly take all necessary remedial actions in
<br />accordance with applicable environmental law and regulations. As used in this paragraph, "hazardous substances"
<br />are those substances defined as toxic or hazardous substances by environmental law and the following substances:
<br />gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents,
<br />materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph, "environmental
<br />law" means Federal laws and regulations and laws and regulations of the jurisdiction where the property is located
<br />that relate to health, safety or environmental protection.
<br />15. Adjustment; release; waiver; forbearance. In accordance with Government regulations, the
<br />Government may (a) adjust the interest rate, payment, terms or balance due on the loan, (b) increase the mortgage
<br />by an amount equal to deferred interest on the outstanding principal balance, (c) extend or defer the maturity of, and
<br />renew and reschedule the payments on the note, (d) release any party who is liable under the note from liability to
<br />the Government, (e) release portions of the property and subordinate its lien, and (f) waive any other of its rights
<br />under this instrument. Any and all of this can and will be done without affecting the lien or the priority of this
<br />instrument or Borrower's liability to the Government for payment of the note secured by this instrument unless the
<br />Government provides otherwise in writing. HOWEVER, any forbearance by the Government - whether once or
<br />often - in exercising any right or remedy under this instrument, or otherwise afforded by applicable law, shall not be
<br />a waiver of or preclude the exercise of any such right or remedy.
<br />16. Graduation. If the Government determines that Borrower may be able to obtain a loan from a responsible
<br />cooperative or private credit source at reasonable rates and terms for loans for similar purposes and periods of time,
<br />Borrower will, upon the Government's request, apply for and accept such a loan in sufficient amount to pay the note
<br />secured by this instrument and to pay for stock necessary to be purchased in a cooperative lending agency in
<br />connection with such loan.
<br />Initial Date & -aa
<br />FSA -2029 NE (11-06-12) Page 4
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