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<br />COVENANTS
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<br />200605127
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<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 />Borrower or for Borrower's benefit will be applied first to any amounts Borrower owes on the secured debt exclusive of interest or prineipal, second to interest and then to
<br />principa1. If paltial 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 fui1.
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<br />2. Claims A~ainst Title. Borrower will pay all taxes, assessments, and other charges attributable to the property when due and will defend title to the propcrty against
<br />any claims which would impair the lien of this deed of tlUSt. Lender may require Borrower 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. Insuranee. Borrower will keep the property insured under terms aeceptable to Lender at Borrower's expense and for Lender's benefit. All Insurance policies shall
<br />incl~de a s~a~dard mOltgagc clause in favor of Lender. Lender will be named as loss payee or as the insured on any such insumnce policy. Any insumnce proceeds may be
<br />applted, wlthm Lender's discretion, to either the restomtion or repair of the damaged property or to the secured debt. If Lender requires mortgage insumnce, Borrower
<br />agrees to maintain such insumnce 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 will pay these amounts to Lcnder as provided in Covenant 9 of tins deed of trust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written eon test, Borrower will not make or pennit any changes to any prior security interests.
<br />Borrower will perform all of Borrower's obligations under any prior mortgage, deed oftrust or other security agreement, including Borrower's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Prollts. Bonuwer assigns to Lender the rents and profits of the property. Unless Borrower and Lender have agreed otherwise in writing,
<br />Borrower may collcct and retain the rents as long as Borrower is not in default. If Borrower dcfaults, Lender, Lender's agent, or a court appointed rceeiver may take
<br />possession and manage the property and collect tile rents. Any rents Lender collects shall hc applied first to the costs of managing the propetty, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expcnscs. The remaining amount of rents will then apply to payments on the securcd debt as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condomlnlu ms; Planned Unit Developments. Borrower agrees to comply with the pl'Ovisions of any lease if this deed of trust is on leaschold. 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 Perform for Borrower. If Borrower fails to perform, any of Borrower's duties under this deed of trnst, 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. If any constlUction 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 the construction.
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<br />Lender's failure to perform will not preclude Lender fmm exercising any of its other rights under the law or this deed of trust.
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<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 mte 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 of trust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accelemte the maturity of the secured debt and demand immediate payment and may invokc the power of sale and
<br />any other remedies pennitted by applicable law.
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<br />II. 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 />sueh person, as set forth herein.
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<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 pareel thereof is situated a notice of default containing the information required by law. The Trustec shall also mail copies of the notice of detault to the
<br />Borrower, to each person who is a party het.eto, 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 pmperty is not in any incorporated city or village and is used in falming opemtions carried on by the trustor, the Trustee sball givc public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustec, without demand on Borrower, shall sell the pmperty at public auction to the highcst bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the property in two separate sales as required by applicable law. Tlustee may postpone sale of all or any
<br />parcel of the pmperty by public announcement at the time and place of any previously scbeduled sale. Lender or its designee may purchase the property at any sale.
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<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustce's deed shall be
<br />prima facie evidicnce 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 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 oftrust, and (c) thc balance, if
<br />any, to the pcrsons legally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed of trust may be foreclosed in tile manner provided by applicable law for foreclosure of mortgages on real pmperty.
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<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.
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<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 />propClty. Such proceeds will be applied as providcd in Covenant I. Tins assignment is subject to rue terms of any prior security agreement.
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<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, Lcnder 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 Liablllty; Co-signers; Successors and Assigns Bound. All duties under this deed of trust are joint and sevem!. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying 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 Bormwer agrees that the Lender and any other Borrower under this deed of trust may extClld, modify 01' make any othcr 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 oftrust.
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<br />The duties and benefits of tins deed of trust shall bind and benefit the successors and assigns of Lender and Borrower.
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<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 t~e
<br />pmpelty address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's addres~ on page I of thiS
<br />deed of trust, or to any other address, which Lendcr has designated. Any other notice to Lender shall be sent to Lender's address as stated on page I oftllls deed of trust.
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<br />Any notice shall be dcemed to have been given to Borrower or Lender when given in the manner stated above.
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<br />19. Transfer oftlte Property or a Beneficlallnterest in the Borrower. tfall or any part of tile property or any interest in it is sold or transf~rred without the l.ender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand itnmedi~te p~ym~n~ i~' the B?r~wer IS not a natuml person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not detnand payment III thc above SituatIOns If It IS prohIbIted by fedcmllaw as of the date
<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 advance~ under the instrumcnts or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust pmperty. The Lender sh~ll dehver to the BOlTower, 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 recordatron 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 ~opy of the substitution of trustee as required
<br />by applicable law, and then, by filing tbe substitution oftrustee fbr record in the office of the register of deeds of ~ch county III which the trust pmperty, or s~ll1e palt
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, dutIes, authonty and btle of the Trustee named III the deed of
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<br />trust and of any successor trustee.
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