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COVENANTS 200302269
<br />L Payments. Borrower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will be applied first to any amounts Borrower owes on the secured debt exclusive of interval or principal, second to interest, and then to
<br />pr anal. If partial prepayment ofthe seeurd debt occurs for any reason, it will not reduce or excuse any scheduled payment until the secured debt is paid in full
<br />2. Claims Against Title. Borrower will pay all taxes, assessments, and other charges attributable to the property when due and will defend title to the property against
<br />any claims which would impair the lien of this deed of trust. Lender may probe Borrower to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply labor or materials to improve or maintain the property.
<br />3. Insurance. Borrower will keep the property insured under arms acceptable to Lender at Borrower's expense and for Lender's benefit All Insurance policies shall
<br />include a standard mortgage clause in favor of Lender. Lender will be named as loss payee or as the insured on any such insurance policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged properly or to the secured debt. If Lender nyuires mortgage Insurance, Borrower
<br />agrees to maintain such insurance for as long as Lander requires.
<br />4. Property. Borrower will keep the property in goad condition and make all repairs reasonably necessary.
<br />S. Expenses. Borrower agrees to pay all Lenders expenses, including reasonable attomeys' fees, if Borrower breaks any covenants in this deed of tool or in any
<br />obligation secured by this deed oftfict Borrower will pay these amounts in Lender as provided in Covenant 9 of this decd of tmst.
<br />6. Prior Security Interests. Unless Borrower first chums Lender's written contest, Borrower will not make or permit any changes to any prior security interests.
<br />Borrower will perform all of Borrower's obligations under any prior mortgage, deed of test or other security agreement, including Borrower's covenants to make payments
<br />when erne.
<br />7. Assignment of Rents and Profnh. Borrower assigns to Lends the rents and profits of the property. Unless Borrower and Lender have spread otherwise in writing,
<br />Borrower may collect and retain the revs as long as Borrower is not in default- If Borrower defaults, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and teenage the property and collect the rear. Any nuts Lender collects shall he applied first to the costs of managing the amp pry, including coon costs and
<br />attorneys' fens, commissions to rental agents, and any other necessary related expenses. The remaining amount of rents will then apply to payments on the secured debt as
<br />provided in Covenant I.
<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease if this decd of met is on leasehold. If this
<br />deed of trust is to a unit in a condominium or a planned unit development, Borrower will perform all of Borrower's duties under the covenants, by laws, or regulations of
<br />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 final, lender may perform the duties or
<br />use them to be performed Lender may sign Borrower's time or pay any amount if necessary for performance. If any communion on the property is discontinued or net
<br />carried on in a reasonable mariner, Lender may do whatever is necessary to protect Lender's 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 treat
<br />Any amounts paid by Lender to protect Lender's security internist will be secured by this deed of tense Such amounts will be due on demand and will bear interest from the
<br />date of the payment until paid in full at the interest is in effect on the sawed debt.
<br />10. Default and Acodemtion. If Borrows fails to make any payment when due or breaks any covenants under this deed oftmst or any obligation secured by 'his decd of
<br />tryst or any prior mortgage or deed of trust, Lender may accelerate the mamnry of the second debt and demand immediate payment and may invoke the power of solo and
<br />any other remedies permitted by applicable law.
<br />11. Request far Notice of Default. It is hereby requested that copies ofthe notices of default and sale be sent to each person who is a party hereto, at the address of each
<br />such person, as sal faith 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 wherein the trust property or
<br />rte an or game[ thereof is situated a notice of default containing the information required by law. The Trustee shall also mail copies of the notice of default to die
<br />Domain, to each person who is a party heretq and ten olherpersans as prescribed by applicable law. Not less than one mouth after the Trustee raroNS the notice of default,
<br />or two months ifthe tryst property is not in any incorporated city or village and is used in farming operations carried on by the reason, the Trustee shall give public notice of
<br />sale to the person and in the roamer prescnbd by applicable law. Trance, without demand on Borrower, shall sell the property at Public auction In the highest bidder . If
<br />required by the farm Homestead Protection Act, Trustee shall offer the property in two separate sales as required by npplicablc law. Trustee may postpone sale of all or any
<br />parcel of the property by public amouncemem at the time and place of any previously scheduled sale, lender or its designee may purchase the property story sale.
<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The partials wnturd in Trustee's dead shall be
<br />prima facie cvidicnoe of the truth of the statements contained therein. Tmrtee shall apply the prweeds of the sale in the fallowing order: (a) to all expenses of the side,
<br />including, but not limited to, reasonable Trustee's fees, reasonable attorney's fees and reimretement fees; Ud to all sums secured by this deed of past, and (c) the balance, if
<br />any, to the persons legally entitled to ¢wive it
<br />13. Foreclosure. At Lender's option, this deed arms[ may be foreclosed in the roamer provided by applicable law for foreclosure of montages on foal property.
<br />14. Inspection. Lender may enter the property to inspect it if Leader gives Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any pan of the
<br />property. Such proceeds will be applied as provided in Covenant 1. This assignment is subject to the terms of any prior security agreement.
<br />16. Waiver. By exercising any remedy available to Lender, Lender deers not give up my rights to later use any other remedy. By not exercising any remedy upon
<br />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; Suecosors and Assigns Bound. All duties under this deed of brat arejoint and several. Any Bonower who co-signs this
<br />deed of tmst but does not co-sign the underlying debt instroments(s) does m only to front and convey that Borrower's interest in the property to the Trustee under the teats
<br />of this deed of mac In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of tad may extend, modify or make my other changes in
<br />the terms of this deed oftmst or the secured debt without that Borrowers consent and without releasing that Borrower from the terms of this deed of past
<br />The duties and benefits of this deed affixed shall bind and benefit the successors and assigns of Lender and Borrower
<br />18. Notice. Unless otherwise requited bylaw, any notice to Borrower shall be given by delivering it or by mailing it by certified mail addressed to Borrower at the
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lende's address on page I of this
<br />deed of met, or to any other address, which Lender has designated. Any other notice to Lender shall be seat to Under's address as stated on page 1 ofthis deed of trust.
<br />Any notice shall be decmd to have been given to Borrower or Lender when given in the manner stated above.
<br />19. Transfer of the Property or a Berne vial Johnson in the harrower. If all or any part of the property or any interest in it is sold or transferred without the Lender's
<br />prior written consent, Leader may demand immediate payment of the secured debt Lender may also demand immediate payment ifthe Borrower is not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above situations if it is prohibited by federal law as ofthe date
<br />of this deed ofmst.
<br />20. Reconveyance. When the obligation seemed by this deed of trust has been paid, and Lender has no further obligation to make advances under the instruments or
<br />agreements secured by this decd of test, theTmstee shall, upon written recount by the Lender, neconvey the test property. The Lender shall deliver to the Borrower, into
<br />Borrower's successor in interest, the trust deed and the nom or other evidence of the obligation so satisfied Borrower shall pay any recordation costs.
<br />21. Successor Trustee. Lender, at lender's option, may remove Tmrtee and appoint a successor twtee by first, mailing a copy of the substitution of pastes, as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office ofthe register clippers of each county in which the trust property, or some pan
<br />thacof, is situated. The mcec,ime trustee, without conveyance of the property, shall succeed to all the power, duties, authority and title ofthe Trustee named in the deed of
<br />trust and of any successor trustee.
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