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COVENANTS 200303363
<br />I. Payments. Borrower agrees to make al I payments oa the meured debt when due. Unless Borrower and Lender agree otherwise, any payment 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, second to interest, and then to
<br />principal. If partial prepayment ofthe secured 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 W 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 require Borrower to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply labor or materials W 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 henefit All Insurance policies shall
<br />include a standard mortgage clause in favor of Lando, 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 property or to the secured debt If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such Insurance for as long as Lender requires.
<br />4. Property. Borrower will keep the property in goad condition and make all repairs reasonably necessary _
<br />5. Expenses Borrower agrees to pay all Lender's expenses, including reasonable a innows' fees, if Borrower breaks any covenant in this decd of trust or in any
<br />obligation meured by this deed of trust Borrower wil l pay these amounts to l ender as provided in Covenant 9 ofthis deed of trust
<br />6. Prior Security Interests. Unless Bonowu first obtains Lender's written contest, Borrower will not make or permit any changes to any prior security Interest.
<br />Borrower will perform all of Borrower's obligations under any, prior mortgage, deed of must or other security agreement, Including Borrower's covenants to make payment
<br />when due.
<br />7. Assignment of Bents mad Profits. Borrower esslgns W Lender the rents and profit ofthe properly Unless Borrower and I balm have agreed othcovise In writing
<br />Borrower may collet[ and retain the rent as long as Borrower is not In default. If Borrower defaults, Lender, Lender's agent, or a court appointed receiver may lake
<br />possession and manage the property and collect the rents_ Any rents Lender collects most be applied first to the costs of managing the property, including court torts and
<br />mlomeys' fees, 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 />S. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with be previsions of any lease if this deed of trust is on leasehold_ if this
<br />decd of true[ Is on 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 />rho condominium or planned unit development.
<br />9. Authority of Lender W Perform for Borrower If Burrower fails to perform, any of Borrower's dunes under this deed of cost, Lender may perform the duties or
<br />came them to be performed. Lender may sign Borrower's time or pay any amount if necessary for performance. If any construction on me property is discontinued or not
<br />carried on in a reasonable mannoq Lender may do whatever Is necessary to protect Lender's security interest In the pmpery, This may include completing the construction
<br />Lender's failure to perform will not preclude Lender from exercising any of its other tights under the law or this deed oftrust.
<br />Any amounts paid by Lender to prated Lender's security interest will be secured by this dead of trust Such amounts will be due on demand and will bear interest from the
<br />dam of the payment until paid in full at the Interest rate in effect on be secured debt
<br />10. Default and Acceleration. If Borrower fails to make any payment when due or breaks any covenants under this deed oftruslor any obligation secured by this decd of
<br />trust or any prior mortgage or deed of trust, Lender may accelerate the maturity ofthe secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies permitted by applicable law.
<br />It. RequutforNOticemMe &ulf. It is hereby requesWd that copies of the notices of default and sale be sent to each person who is a parry here W, at the address or each
<br />such person, as eel form 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 />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 party hereto, and a other persons as prescribed be applicable law_ Not Tess than one month alter the 'I'Water records the notice ofdemult,
<br />or two months if the trust property is not in any incorporated city orvillage and is used in firming operations carried on by the castor, the 'I'notice shall give public notice of
<br />sale to the persons and in be manner prescribed by applicable law. Tms[ec, without demand on B orrom, shall sell bepu party at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act Trustee shell offer the property in two srearate sales as required by applicable law. Trustee may postpone sale of at I or any
<br />parcel ofthe property by public announcement at the time and place of any previously scheduled sale. 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 recitals contained in Trustee's deed shall be
<br />prima facie cvidience of the truth of the statements contained therein. Tmsme shall apply the pruceeds of the sale in the following order. (a) to all expenses of the sale,
<br />including but not limited to, reasonable Trustee's Wes, reasonable attorney's fees and Immurement fees; (b) Wall sums secured by this deed of trust, and (c) the balance, it
<br />any, to the persons legally entitled to receive it
<br />13. Foreclosure. AtLender's option, this deed oftrvst may be foreclosed in the manner provided by applicable law for foreclosure ofmongages on real properly.
<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand The notice must state the reasonable cause for Lender s
<br />inspection
<br />15. Condemnation. Borrower resigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />properly. Such proceeds will be applied as provided In Covenant I. This assignment is subject W be terms 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 ether remedy. By net exercising any remedy upon
<br />Borrower's default Lender does not waive any right to later consider the event a default iFit happens again.
<br />17. .].let and Several Liability; Co- signers; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instruments) does so only to gran[ and convey that Borrower's interest In the property to the Trustee under the terms
<br />of this deed of [rust. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of trust may extend, modify or make any other changes in
<br />the terms of this deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower form the terms of this deed of Wait
<br />'the dunes and benefits of this deed cohost shall bind and benefit the successors and assigns of Lendcr 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 Borrower at the
<br />property address or any other address that Borrower has given to Lender Bonowu will give any notice to Lender by terrified mall to Lenders address on page 1 or this
<br />decd oftrust or to any other address, which Lender bas designated_ Any other not ice to Linder shall be sent W Lenders address as elated on page I of this deed ofurel
<br />Any notice shall be deemed to have been given W Borrower or Lender when given In me manner stated above.
<br />19. 1 amber of the Property or a Beneficial Interest in the Borrower. If all or any part of me property or any interest in it is sold or transferred without the car'er's
<br />prior writmn consent, Lender 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 hansferred. I loweveq Lender may not demand payment In the above situations If it is prohibited by federal law as of the date
<br />ofthis deed oftrust.
<br />20. Reconeryance. When be obligation secured by this deed of trust has beef paid, and Lender has no mrthcr obligation to make advances under the instruments or
<br />agreements scoured by this deed oftrust, be Trustee shall, upon written request by the Lender, reemosey the trust property_ The Lender shall deliver to the Borrower. or to
<br />Borrowers successor in interest, the trust deed and be note or other evidence of the obligation so satisfied. Borrovershall pay anyrernbeoncaet.
<br />21. Successor Trustee. Landet, a Lender's option, may remove Trustee and appoint a suceessortruales by first, mailing a copy ofthe substitution oftoutce as required
<br />by applicable law, and then, by filing the substitution ofvuatre for record in the office ofthe register ofdeeds of each county in which the trust property, or some part
<br />thereof, is situated The successor trustee, without conveyance of the limped , shall sueeecd Wall the power, duties, authority and title ofthe Frostee named a the deed of
<br />trust and of any successor trustee.
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