|
<br />COVENANTS
<br />
<br />200605217
<br />
<br />I. Payments. Borrower agrees to makc all payments on the sccured deht when due. Unless Borrower and Lender agree otherwise, any payments Lcnder receives from
<br />Borrower or for Borrower's benefit will bc applied first to any amounts Borrower owes on the secured debt exclusive ofinterest 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 cxcnse any scheduled payment until the secured debt is paid in full.
<br />
<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 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.
<br />
<br />3. Insurance. Borrower will kecp thc property insurcd under terms acceptable to Lender 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 insumnce policy. Any insurdnce 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 insumnce, Borrower
<br />agrees to maintain such insurance for as long as Lender requires.
<br />
<br />4. Property. Borrower will keep tile property in good condition and make all repairs reasOlmbly 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 tillS 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 Profits. Borrower assigns to Lender the rents and profits 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 rcmaining amount of rents will then apply to payments on the secured debt as
<br />providcd in Covenant I.
<br />
<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease if this dced of trust is on Icaschold. If this
<br />deed of tmst is on a unit in a condominium or a planned unit development, Borrower will perform aU of Borrower's duties under the covenants, by laws, or rcgulations 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 duties 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. 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 may include completing the construction.
<br />
<br />Lender's failure to perform will not preclude Lender 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 deed oftrust. 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 ratc in cffect on the secured debt.
<br />
<br />10. Default and Acceleration. If Borrower fails to make any payment when duc 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 tmst, Lender may accelerate the maturity of the secured debt and demand inunediate payment and may invoke the powcr of sale and
<br />any other renlCdies pennitted by applicablc law.
<br />
<br />11. Request for Notice of Default. It is hereby requested that copies of the notices of dcfault and sale be sent to each person who is a party hereto, at the address of each
<br />such person, as set fortIl herein.
<br />
<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 parcel thereof is situated a notice of default containing the information required by law. The Trustee shall also mail copies of the noticc of default to the
<br />Borrower, to each person who is a party hereto, and to other persons as prcscribed by applicable law. Not less than one month after the Trustee records the notice of dcfault,
<br />or two months if tile trust property is not in any incorporated city or village and is used in farming operations carried on by the trustor, thc Trustee shall give public notice of
<br />sale to the pcrsons and in the ma1lller 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 Fann Homestcad Protection Act, Trustee shall olTer the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the property by public a1lllouncement at the time and place of any previously scheduled salc. Lender or its designee may purchase the property at any sale.
<br />
<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 Trustee's deed shall be
<br />prima facic evidicncc of the truth ofthe statements contained therein. Trustee shall apply the proceeds of the sale in thc following order: (a) to all expenscs 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 deed oftrust, 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 oftmst may be foreclosed in the ma1lller provided by applicable law for foreclosure of mortgages on real property.
<br />
<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand. Thc 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 condcmnation or other taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. Tins assignment is subject to the terms of any prior security agreement.
<br />
<br />16. Waiver. By exercising any remedy available to Lcnder, Lender does not give up any rights to later use any other remedy. By not exercising any remedy upon
<br />Borrowcr'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-si~uers; 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 thc underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the prope~y to the Trustee under the ten~s
<br />of this dced oftmst. 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 III
<br />the terms of this deed oftmst or the secured debt without that Borrower's consent and without releasing that Borrower from the terms of this deed oftmst.
<br />
<br />Thc duties and benefits of this deed of trusl shall bind and bencfit the successors and assigns of Lender and Borrowcr.
<br />
<br />18. Notice. Unless otherwisc required by law, any notice 10 Borrower shall be given by delivering it or by mailing it by certified mail addressed to Borrower at 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 Lendcr's addres~ on page I of thIS
<br />dced oftmst, or to any other address, which Lender has designated. Any other notice to Lender shall bc sent to Lender's address as stated on page I of thIS deed of trust
<br />
<br />Any notice shall be deemed to have been given to Borrower or Lender when given in the manner stated above.
<br />
<br />19. Transfer of the Property or a Beueficial Interest in the Borrower. If all or any part of the property .or any.interest in it ~s sold or transf~rred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~and lIl11nedl~te p~ymc:'n~ 1~ the B?r~ower IS not a natuml pe,rson and
<br />a beneficial interest in the Borrower is sold or transferrcd. However, Lender may not demand payment III the above sltuattons If It IS prohIbited by fcderallaw as 01 the datc
<br />of this 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 instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender sh~ll 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 shaH pay any recordatIon costs.
<br />
<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, lnailing a copy ?fthe substitution oflrustee as required
<br />by applicable law, and then, by filing the substitution oftruslee for record in the office of thc register of deeds of c:'ach count~ in whl~h the trust property, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, dutIes, authonty and tItle of the Trustee named III the deed of
<br />
<br />trust and of any succcssor trustee.
<br />
|