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200302356 COVENANTS
<br />I. Payments. Borrower agrees to make all payment on the assured 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 interest or principal, wand to interest, and then to
<br />principal. Blampied prepayment ofthe secured debt occurs for any reason, it will not reduce or excuse any scheduled payment until the secured debt is paid in fall.
<br />2. Claims Against Title. Borrower will pay all taxes, assessment, and other changes attributable to the properly when due and will defend title to the pmpeny against
<br />any claims which would impair the lien of this deed of lost Lender may quire Empower to assign any rights, claims or defenses which Bonrower may have against
<br />parties who supply labor or materials to improve or maintain the property.
<br />3. Ioaurauee. Borrower will keep Ne property insured undo tells aoenNuffic to [.ender at Borrower's expense and In, 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 dixeddioa to either the restoration or repair of the damaged properly or to the secured debt If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lender nations.
<br />0. Property. Botio vor will keep the property in good condition and make all repairs dastardly precisely,
<br />5. Expenses. Borrower agree to pay all Undel'.s expenses, including reasonable attomeys' fees, if Borrower breaks any covenants in this deed of drool or in any
<br />obligation secured by Nis deed ofduat. Borrower will pay these amounts to Lender as provided in Covenant 9 of this deed of tort.
<br />6. Prior Security Interests. Unless Borrower first obtains 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, dew of trust or other security agreement, including Borrower's covenants to make payments
<br />when due.
<br />9. Assignment of Beata aad Prefrts. Borrower assigns to Lender fee tots and profits of the property. Unions Borrower and Lender have agreed otherwise in writing,
<br />Borrower may collect and land the rent as long as Borrower is not in default. If Borrower default, Lender, Lender's agent, or is court appointed receiver may take
<br />posses ion and manage the property and roller the rents. Any rem, Larder collxt shall be applied first an the costs of managing Ne property, including court costs cod
<br />attorney,' feu eman i Ira remal agents, and any other necessary related expenses. The remaining amount of rent will then apply to paymeuo- on the secured debt as
<br />provide is Covenant I.
<br />g. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any base if this dew of trust is on leasehold. If this
<br />dew of had is on a unit in a condominium or a planned unit development, Borrower will perform all of Berowa's duties under the covenants, by laws, or regulations of
<br />the condominium or planned all development.
<br />9. Authority of finder to Perform for Borrower, If Borrower fails to perform, any of Borrower's duties under this deed of cost, Lender may perform the duties or
<br />cause them to be performed. Lender may sign Borrower's time or pay any amount if necessary for performance. Ifany construction on the properly is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to protect Lender's security interest in the property. Tbis may include completing the construction.
<br />Lender's failure to perform will not preclude Under from exercising any of it other rights under the law or this dew of trust
<br />Any amounts paid by Larder to proper Lender's security interest will be secured by this dew edtrust Such amounts will be due on demand and will bear interest from the
<br />date ofthe payment until paid in full at the interest rate in affair on the secured debt.
<br />10. Default and Acceleration. If Burrower fails to make any payment when due ministries; any covenants under this dew of dust or any obligation assured by this deed of
<br />trust or any poor mortgage or dew of mat, Lender may accelerate the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies permitted by applicable law.
<br />11. Re ,and for Notice a[ Default It is hereby minnow that copies ofthe notices of default and sale be sent to each person who is a party herder, at the address of each
<br />such person, as set forth herein.
<br />12. Power f Sale. If the Lender invokes the power of sale, the Trustee shall first faced in the office of the register of dews of each county wherein the mat property or
<br />some part or parcel 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 the
<br />Borrower, to each person who is a parry harem, and to other persons as prescribed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months if fie cost pmpeay is not in any incotpomtw city or village and is used in fanning operations tamed on by the tmstoq the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the properly at public auction to the highest bidder. If
<br />repeated by the Farm Homestead Protection Act, Trips, shell oHerthe property in two separate sales as mluhed by applicable law. Tostea may postpone sale of all or any
<br />parcel ofthe property by public announcement at the time and place ofany previously scheduled sale. Lander orims ticsigmm�ay purchase drepropvm vt any salt.
<br />Upon receipt of payment of the pdce bid, Trustee shall deliver to the purehaser Trustee's dew conveying the property. The recitials contained in Tmstee's dLn shall be
<br />prima facie evidience of the coin of the statement contained therein. Trustee shall apply the proceeds of the sale in the following order. (a) to all expenses of the sale,
<br />including, but not limited to, reasonable Trustee's fees, reasonable artouey's fees and minsmternent fen; (b) to all sums secured by this deed of trust and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
<br />13. Fornlosure. At Lender's option, this dew oftaust may be foreclosed in the mannerprovided by applicable law for fievel lure of morlgagn on real property.
<br />14. Inspection. Lender may agar the pmpeny to inspect it if Lender gives Borrower notice beforehand. The notice moat state the reasonable cause far 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 part ofthe
<br />property. Such proceeds will be applied as provided in Covenant E This assignment is subject tothe tells of any prior 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 any remedy upon
<br />Borrower's default Under does not waive my 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 dew of trust are joint and several. Any Borrower who co -signs this
<br />dew afford but does not co -sign the underlying debt fundamentals) does so only to grant and convey that Borrower's interest in the property to the Trustee under the it=
<br />of this deed of lost In addition such a Borrower agrees that he Lender and any order Borrower under this deed of trust may extend, modify or make any other changes in
<br />the tells of this dew of dust or the secured debt without that Borrower's copse d and without releasing that Borrower film the tams of this dew of must.
<br />The duties add benefit offers dew of cost shall bind and benefit the successors and assigns of Lender and Borrower.
<br />18. Notice. Unless otherwise watched bylaw, any notice to Borrower shall be given by delivering it or by nailing it by certified mail addressed to Borrower at the
<br />property address or any other address that Remover has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's address on page I of this
<br />dew effluent, or to any other address, which Lender has designated. Any other notice to Lender shall be sent to Lender's address as stated on page 1 ofthis dew 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 pan of the prope rty or any interest in it is sold or tnderaw without the Lender's
<br />poor written comsem, Lender may dernaod immediate payment of the secured debt Under may also demand immediate payment if the 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 of the date
<br />of this deed i ftnat.
<br />20. Reeonveyance When the obligation secured by this deed of ttan has been paid, and Lender has no further obligation to make advances under the instruments or
<br />agreements secured by this deed afford, the Trustee shall, upon written request by the Lends, raonvey the Iran property. The Lender shall deliver te, the Borrower, man
<br />Borrowers successor in interest, the mat dew and the note or other evidence of the obligation so satisfied. Borrower shall pay any recordation costs
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<br />21. Successor Trustee. Tilde, at Lender's option, may remove Trustee and appoint a successor tmrtee by first, nailing a copy of the substitution of trustee as uquirw
<br />by applicable law, end then, by filing the substitution of bounce for record in the office ofthe register of dews of each county in which the lost property, or some pan
<br />rhaeof, is ei[uared The successor 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 mM of any successor tuatee.
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