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<br />COVENANTS
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<br />200604455
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<br />I. Payments. Bon'ower 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 Horrower owes on the secured deht exclusive of intercst or principal, second to interest, and then to
<br />principal. If partial prepayment ofthc secured dcbt 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, 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 BOll'ower 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.
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<br />3. Insurance. Borrower will keep the propcrty insured under terms acccptable to Lender at Borrower's expensc and for Lendcr's benetlt. 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 I,cnder's discrction, 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.
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<br />4. Property. Borrower will keep the property in good condition and make all repairs reasonably necessary.
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<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 wil1 pay these amounts to Lender as provided in Covenant 9 of this deed of trust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contest, Horrower will not make or permit any changes to any prior security interests.
<br />Borrowcr will perform all of Borrower's obligations uoder any prior mortgage, dccd 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 profits of the property. Unless Borrower and Lender have agreed otherwise in wliting,
<br />Borrow~r may collect and retain the rents as long as Horrower is not in default. If Borrower defanlts, 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. Thc remaining amount of rents will then apply to payments on the secured debt as
<br />provided in Covenant 1.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower 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 development, Borrower will perform all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominium or planned unit development.
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<br />9. Authority of Lender to Pcrform for Borrower. If Borrower fails to perform, any of Borrower's duties under this deed of trust, Lender may pertorm thc duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if neccssary for performance. If any construction on the property is discontinued or not
<br />carried on in a rcasonablc manner, Lender may do whatever is necessary to protect Lender's security interest in the property. This may includc completing the construction.
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<br />Lender's failure to perform will not preclude Lender from exercising any of its other rights under the law or this dced oftrust.
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<br />Any amounts paid by Lender to protect Lendcr'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 ofthc payment until paid in full at the interest rate in effect on the secured debt.
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<br />10. Default and Acceleration. If Borrower fails to make any payment whcn due or breaks any covenants under this deed oftlust 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 powcr of sale and
<br />any other remedies pennitted by applicable law.
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<br />11. Request for Notlcc of Default. It is hereby requested that copies of the notices of default and sale be sent to each person who is a party hcreto, at the address of each
<br />such person, as set forth herein.
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<br />12. Power of Sale. If the Lender invokes thc powcr of sale, the Trustee shall tlrst 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 copics 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 the Trustee records the notice of default,
<br />or two months if the trust property is not in any incorporated city or village and is used in farming operations cawed on by the trustor, the Trustee shall give public notice of
<br />sale to the pcrsons and in the manner prescribed by applicahlc law. Trustee, without demand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the propcrty in two separate sales as requircd 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 designce may purchase the property at any sale.
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<br />Upon receipt of payment of thc price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's dced shall be
<br />prima facic cvidience of the truth of the statemcnts 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 attorncy'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.
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<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 propel1y.
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<br />14. Inspection. Lender may enter the property to inspect it if Lcnder gives Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrowcr 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 procceds will be applied as provided in Covenant I. TIns assignment is subject to the tenns of any prior security agreement.
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<br />16. Waiver. By excrcising 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.
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<br />17. Joint and Several Liability; Co~slgners; 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 undcrlying debt 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 Borrower agrees that the Lender and any other Borrower under this deed of trust may extend, modity or make any other changes in
<br />the terms of this deed of trust or the sccured debt without that Borrower's consent and withont releasing that Borrower from the terms of this deed oftrust.
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<br />The duties and benefits of this dccd of trust shall bind and benefit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless othcrwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certified mail addressed to Bonuwer at the
<br />pwperty address or any other address that Horrower has given to Lender. Horrower will give any notice to Lender by certified mail to Lender's addrcs~ 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 thts deed of trust.
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<br />Any notice shall be deemed to have been given to Borrower or Lender whcn given in the manner stated above.
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<br />19. Transfer of the Property or a Beneficlallnterest 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 de~nand immedi~te p~ym~~ i~the B?nDwer is not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment III the above sltuatJons If It IS prohibIted by federal law as of the date
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<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make adv,mc~ under the instruments or
<br />agreemcnts secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender sh~1I deItver to the Borrowcr, or to
<br />Borrower's snccessor in interest, the trust deed and the note or other evidence of the obligation so satistled. 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 trustee by first, mailing a copy ?fthe 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 deeds of ~ach county in whl~h the trust property, or s~mc part
<br />thereof~ is situated. The snccessor trustee, withont conveyance of the property, shall succeed to all the power, duttes, authonty and tttlc of the Trustee named III the deed of
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<br />trust and of any successor trustee.
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