|
<br />COVENANTS
<br />
<br />200602836
<br />
<br />1. 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 />Horrower or for Borrowcr's benefit will bc applied first to any amounts Borrower owes on thc securcd dcbt cxclusive 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 schcduled payment until the secured debt is paid in full.
<br />
<br />2. Claims Against Title. Bonnwer will pay all taxes, assessments, and other charges attributable to the property when due and wilt 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 whieh Borrower may have against
<br />parties who supply labor or materials to improve or maintain the propetty.
<br />
<br />3. Insurance. Borrower will keep the property insured under tenns acccptable to Lendcr 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 tbe restoration or repair of the damaged property or to the secured dcbt If Lendcr requires mortgage insurance, BOITOwer
<br />agrees to maintain such insurance for as long as Lender requires.
<br />
<br />4. Property. BOl11lwer will keep the property in good condition and make all repairs reasonably necessary.
<br />
<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 />
<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, deed of trust or other security agreement, including Borrower's covenants to make payments
<br />when due.
<br />
<br />7. Assignment of Rents and Prot1ts. BOl11lwer assigns to Lendcr the rents and profits of the property. Unless BOl11lwer and Lender have agreed otherwise in writing,
<br />Borrower may collect and retain the rents as long as Borrower is not in default If Horrower defaults, Lender, Lender's agent, or a court appointed receiver may takc
<br />possession and managc the propelty and collect the rents. Any rents Lender collects shall be applied flrst to the costs of managing the property, including court costs and
<br />attorneys' fccs, commissions to rcntal agents, and any other necessary related expenses. The remaining amount ofrents will then apply to payments on thc sccurcd debt as
<br />provided in Covenant 1.
<br />
<br />8. Leaseholds; Condominiums; Planned Unit Developments. BOl11lwcr agrccs 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 development, Borrowcr will perform all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominium or planned unit development
<br />
<br />9. Authority of Lender to Perform for .Borrower. If Borrower fails to perform, any of Borrower's dulies under this deed of trust, Lender may perform the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for performance. Ifany 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 may include completing thc construction.
<br />
<br />Lender's failure to perform will not preclude Lcndcr from exercising any of its other rights under the law or this deed of trust
<br />
<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this dced oftrus!. 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 />
<br />10. Default and Acceleration. If Borrower fails to make any payment whetl due or breaks any covenants under this deed of trust 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 retnedies pennitted by applicable law.
<br />
<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 set forth herein.
<br />
<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shall flrst record in the office of the registcr of deeds of each county wherein the tmst property or
<br />some part or parcel thereof is situated a notice of default containing the infonnation 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 after thc Trustee records the notice of default,
<br />or two months ifthe trust property is not in any incorporated city or village and is used in fanning opemtions carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicablc law. Trustee, without demand on BOl11lwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestcad Protection Act, Trustee shall offer the property in two separate salcs as 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 />
<br />Upon receipt of payment of the pricc bid, Trustee shall deliver to the purchaser Trustee's dced conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statemetlts contained therein. Trustec shall apply the proceeds of thc sale in the following order: (a) to all expetlses of thc 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 deed of trust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
<br />
<br />13. Foreclosure. At Lender's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real property.
<br />
<br />14. Inspection. Lender may cnter the property to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
<br />
<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 of the
<br />property. Such proceeds will be applied as provided in Covenant I. llIis assignment is subject to the tenns of any prior security agreement.
<br />
<br />16. Waiver. By cxercising any remedy available to Lender, Lender does not give up any rights to later use any other remcdy. 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 />
<br />17. Joint and Several liability; Co-signers; Successors and Assigns Bonnd. All duties undcr this deed of trust are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the undcrlying debt instrumcnts(s) does so only to grant and convcy that Borrower's interest in the propcrty to the Trustee under the temlS
<br />of this deed of trust. In addition, such a BOl11lwer agrees that the Lender and any othcr Borrower under this deed of trust may extend, modify or make any othcr changes in
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from the tcnns of this deed oftms!.
<br />
<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of Lender and BOl11lwer.
<br />
<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 BOl11lwer 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 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 shall be sent to Lender's address as stated on page I of this deed oftrusl.
<br />
<br />Any notice shall bc deemed to havc been given to Borrower or Lender when given in the ma1l1ler stated above.
<br />
<br />19. Transfer of the Property or a Bcneflcialluterest 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 conscnt, Lender may demand immediate payment of the secured debt. Lender may also de~and immedi~te p~ym~n~ i~the 8?r:ower is not a natuml pcrson and
<br />a beneficial interest in thc Borrower is sold or transfcrred. However, Lender may not dcmand payment 111 the above SItuatIOns If It IS prnhlblted by federal law as of the datc
<br />ofthis deed of trust.
<br />
<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advance~ under the instrumcnts or
<br />agreetnents sccured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvcy the trust property. Thc Lender shall dehver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obligation so satisfied. Borrower shall pay any recordatIOn costs.
<br />
<br />21. Successor Trnstee. Lender, at Lender's option, may remove Trustee and appoint a snccessor trustee by flrst, mailing a copy ofthe substitution of trustee as rcquired
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register of deeds of each county in whi~h the trust ,property, or s~me part .
<br />thereof, is situated. The successor trustee, without convcyance of thc property, shall succeed to all the power, duttes, authonty and title of the 1 rustee named III the deed of
<br />trust and of any successor trustee.
<br />
|