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<br />COVENANTS
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<br />200601408
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<br />t. 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 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.
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<br />2. Claims Against Title. Borrower will pay all taxes, asscssmcnts, 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 Borrower to assign any rights, claims or dcfcnscs which Borrower may have against
<br />parties who supply labor or materials to improve or maintain the property.
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<br />~. Insurance. Borrower will ke~p the property insured under terms acceptable to Lender at Borrower's expense and for Lendcr's bcneflt All Insurance policics shall
<br />1l1clude a standard mortgage clause III favor of Lcndcr. Lcnder will be named as loss payee or as the insured on any such insumnce policy. Any insumnce 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 Ibr as long as Lender requires.
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<br />4. Property. Bon'Ower will kccp thc property in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Borrower agrees 10 pay all Lender's expenses, including rcasonable attorneys' fecs, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed oftrust. Borrower will pay these amounts to Lender as provided in Covenant 9 of this deed ofttust.
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<br />6. Prior Security Interests. Unless Borrower first ohtains Lender's written contest, Borrower will nol 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 trust or other security agreement, including Borrower's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rents and prol1ls of the property. 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, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and manage the property and collect the rents. Any rents Lender collects shall 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 rents wil1then apply to payments on the secured debt as
<br />provided in Covenant 1.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Bonuwer agrees to comply with the provisions of any lease if this deed of trust is on leasehold. If this
<br />deed of trust is on a unit in a condominium or a planned unit dcvclopment, Borrower will perform all of Borrower's duties under thc covenants, by laws, or regulations of
<br />the condominium or planned unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Borrower's duties under this deed of' trust, I,cndcr may perform the duties or
<br />cause them to bc pcrformed. Lender may sign Borrower's name or pay any amount if necessary for perlormance. If any construction on the property is discontinued or not
<br />earricd on in a rcasonablc manner, Lender may do whatever is nceessary to protect Lender's security interest in thc propcrty. This may include completing the construction.
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<br />Lender's failure to perform will not preclude Lender from cxcrcising any of its other rights under the law or this deed oftrust.
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<br />Any amounts paid by Lender to protect Lcnder'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 />datc of thc payment until paid in full at 1Ile intercst ratc in cffect on the secured debt.
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<br />10. Default and Acceleration. If' BOTn.1WCl' fails to make any payment whCll duc OJ' brcaks any covenants under this deed oftrust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of trust, 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 pennitted by applicable law.
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<br />1 I. Request for Notice of Default. It is hereby requested that copies of the notices of default and sale be SCllt to each person who is a party hcrcto, at the address of each
<br />such person, as set Ibrth herein.
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<br />] 2. 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 pareel thereof is situated a notice of default containing the inlormation required by law. The Trustee shall also mail copies of the notice of dcfault 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 after the Trustec records the notice of dcfault,
<br />or two months if the trust pmperty is not in any incorporated city or village and is used in farming opcrations carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prcscribed by applicablc law. Trustee, without dcmand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall oITer the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />pareel of the property by public millouncement at the time and place of any previously scheduled sale. Lender or its designee may purchase the pmpcrty at any sale.
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<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's dccd conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of thc tmth of the statements contained thcrcin. 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 decd of trust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
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<br />]3. Foreclosure. At Lender's option, this deed oftrust may be foreclosed in the manner provided by applicable law for foreclosure of mOltgages on real pmperty.
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<br />14. Inspection. Lender may enter the property to inspcct it if Lender gives Borrowcr notice belorehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connectcd with a condcmnation or other taking of all or any part of the
<br />pmpcrty. Such proeceds will be applied as provided in Covenant I. This assignment is subject to the tenns of any prior security agreement.
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<br />]6. Waiver. By excrcising any rcmedy available to Lender, Lender does not give up any rights to latcr use any other remedy. By not exercising any remedy upon
<br />Borrower's default, Lender does not waive any right to later consider 1I1e event a default int happens again.
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<br />] 7. Joint 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 deht instruments(s) does so only to grant 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 Bonuwer agrees that the Lender and any other Bonuwcr nnder 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 from the terms of this deed oftnlst.
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<br />The duties and bCllcfits of this deed of trust shall bind and benefit the successors and assigns of Lender and Borrower.
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<br />]8. Notice. Unless otherwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certificd mail addressed to Borrower a~ t~e
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's address on page I 01 tillS
<br />deed oftrust, 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 I of this deed oftrus!.
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<br />Any notice shall be deelned to have been given to Borrower or Lender when given in 1Ile manner stated above.
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<br />19. Transfer ofthe Property or a Beneficial Interest in the Borrower. If all or any part of the property .or any.interest in it ~s sold or transf~rrcd without the Lender's
<br />prior written consent, Lender may demand inunediate payment of the secured debt. Lender may also de~nand IInmedl~te p~ym~n~ I~the B?~ower IS not a natuml pc:son and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment 111 the above SituatIons If It IS prolllblted by federal law as of the date
<br />of this deed of trust.
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<br />20. Reconveyance. Whcn the obligation secured by this decd of trust has been paid, and Lender has no further obligati?n to make advanee~ under the instruments or
<br />agreements secured by this deed oftrust, the Tlustee shall, upon Wlitten requcst by the Lender, reconvey the trust property. fhe Lendcr sh~ll dchver to the Borrower, or to
<br />Horrower's successor in intercst, the trust deed and the note or other cvidence of the obligation so satisfied. Borrower shall pay any recordation costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustce by llrst, mailing a ,;,opy ~fthe substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the ofl1ce of the register of dceds of ~aeh county 111 wlu,;,h the trust propel1y, or some part
<br />thereof, is situated. The successor trustee, without conveyance ofthe property, shall succeed to all the power, dutIes, authonty and tItle of the Tmstee named m the deed of
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<br />trust and of any successor trustee.
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