|
COVENANTS 200206 730
<br />1. Paymenta. Borrower agrees to make all payments on the secured dell when due. Unless Borrower and Lender agree otherwise, any payments Leader receives from
<br />Borrower or for Borrower's benefit will be applied fast to arty amounts Borrower owes on the secured debt exclusive of interest or principal, second to interest, and then to
<br />.principal. If partial prepayment of the 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. Claim Against Bortowa 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 require Borrowa 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 terms acceptable to Lender at Borrower's expense and for Lender's benefit. AB 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 my such insurance policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the darraged property or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such jnsurance for as long as Lender requires.
<br />4..... Property. Borrower will keep the property in good condition and make all repairs reasonably necessary..........
<br />5. , Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed of trust. Borrower will pay these amounts to Lender as provided in Covenant 9 of this deed of trust.
<br />6..... Prior Security Intemta. Unless Borrower first obtains Lender's written contest, Borrower will not make or permit my changes to my prior security interests.
<br />Borrower will perform all of Borrower's obligations under any prior mortgage, deed of trust or other security agreement, including Borrower's covenants to make payments
<br />when due.
<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rents and profits of the properly. Unless Borrower and Lender have agreed otherwise in writing,
<br />Borrower may collect and retain the rents as long as Borrower is not in default. If Borrower defaults, Center, Lemter's agent, in a court appointed receiver may take
<br />possession and mange the property and collect the rents. Any rents Lender collects shell be applied first to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expenses. The remaining amount of refs will then apply to payments on the secured debt as
<br />provided in Covenant 1.
<br />8. Leaseholds; Condominium; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease if this dad of mist ism leasehold: If tbis
<br />dad of trust 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 />the condominium or planned unit development.
<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Bomowees duties under this deed of bust, Lender may perform the duties or
<br />cause therm to be performed. Lender may sign Borrower's name or pay any amount if necessary for perf rmunce. If any construction on the property 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. This rosy include completing the construction.
<br />Leader's failure to perform will not preclude Lender from exorcising any of its other rights under the law or this deed of bust
<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed of trust 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 rate in effect on the secured debt.
<br />10. Default and Acceleration. If Borrower fails to make my payment when due or breaks any covenants under this deal of trust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of bust, Letda 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. Request for Notice of Default. It is hereby requested that copies of the notices of default and sale be sent to each person who is a party hereto, at the address of each
<br />such person, as see forth herein.
<br />12. Power of Sale. If the Lender imokesthe 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 to other persons as prescribed by applicable law. Not less than one month alter the Testa records the notice of default,
<br />or two months if the tout property is not in any incorporated city or village and is used in farming operations carried on by the trust", the Trustee shall give public notice of
<br />sale to the persons and in the mnuff prescribed by applicable law. Trustee, without demand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Farts Homestead Protection Act, Trustee shall offer the property in two separate sales w required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the 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 purohaser Trustee's dad conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements 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 attorney's fees and reinstatement fees; (b) to all sums secured by this dad of trust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
<br />13. Foreclosure. At Leader's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real property.
<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 assigns to Lender the proceeds of any award or claim for danages connected with a condemnation or other taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the term 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, Lender does not waive any right to later consider the event a default if it happens again.
<br />17. Joint and Sevens Liability; Co- signers; Successors and Assigns Bound. All duties miler this deed of trust tare joint and several. Any Borrower who cosigm this
<br />deed of tout but does not cosign the underlying debt instruments(s) does so only to giant and convey that Borrower's interest in the property to the Trustee under the terms
<br />of this deed of trust. 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 term of this deed of bust or the secured debt without that Borrowers consent and without releasing that Borrower from the term of this deed of trust.
<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of Lender 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. Borrower will give any notice to Lender by certified mil to Lender's address on page I of this
<br />deed of trust, or to any other address, which Lender has designated. Any other notice to Lender shell be sent to Lender's address as stated on page 1 of this deed 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 part of the property or any interest in it is sold or transferred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immediate payment if the Borrower is not a natural person and
<br />a beneficial interests 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 dad of tout.
<br />,20. Reconveyance. When the obligation secured 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 dad of bust, the Trustee shall, upon written request by the Lender, raonvey the test property. The Lender shall deliver to the Borrower, or to
<br />Borrower's successor in interest, the must deed and the note 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 Trustee and appoint a successor trustee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register of dads of each county in which the trust property, or some part
<br />.thereof, is situated. The successor testa, without conveyance of the property, shall succeed to all the power, duties, authority and title of the Trustee named in the deed of
<br />trust and of any successor trustee.
<br />
|