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<br />COVENANTS
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<br />200606420
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<br />1. Payments. Borrower agrees to make all paymentll on the secured debt when due. Unless Borrower and Lender aarce otherwise, any payments Lender l:Weives from
<br />Borrower or for Borrower's benefit will be applied first to anyamountll Borrower owes on the .ecured debt exclusive ofintorest or principal, aecond 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 iWl.
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<br />2. Claims Against Title. Borrower will pay all taxes, assessmentll, and other charges attributable to the property when due and will defend title to the property apinst
<br />any claims which would impair the lien of this deed of trust. Lender may require Borrower to as.ip any riJhtI, claims or defellSCl which Borrower may have IpinIt
<br />parties who supply labor or materials to improve or maintain the property.
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<br />3. Insurance. Borrower will keep the property insured under tenns 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 1088 payee or as the illlured on uy such lnauruce policy. AD.y lnauruce procoodl 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 mortpp insunmce. 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 covenantll 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 Covoaant 9 ofthia deed ofU'Ult.
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<br />6. PTior 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 rnortpp, deed of trust or other security apeemc:nt, includini Borrower's covCllllDts to make paymc:otS
<br />when due.
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<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rentll and profits of the property. Unless Borrower and Lender have aarced otherwise in writiIJ&,
<br />Borrower may col1ect and ~jn the rents as lona as Borrower is not in detlwlt. If Borrower defaults, I..eader, LoQder', apnt, or a court appoimed rooeiver may take
<br />possession and manage the property and collect the rents. Any rents Lender collects shall be applied firIt to the COlts of m.....IiDl the property, includin& court COlts lIDd
<br />attorneys' fees, commissions to rental agents, and any other necessary related expenses. lbe remaining amount of rents wil1 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 aU of llolTOwer', duties under the coveaants, by laws, or roguJatiOOl of
<br />the condominium or pl8lUled 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 ofttust, Lender may perfonn the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount ifnocessary for performance. Ifuy constnwtion 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 intcralt in the property. This may include completing the construction.
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<br />Lender's failure to perform will not preclude Lender from exercising any of itll other rights WIder 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 wiU be due on demand and wiU bear interest from the
<br />date of the 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 when due or breaks any covenants WIder this deed of trust or any obliption secunld by this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accelerate the maturity of the ,ecured debt and demand immediate payment and may invoke tbe power of sale and
<br />any other remedies permined by applicable law.
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<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.
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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 parcel thereof is situated a notice of default containing the information requiml by law. The TrustcI 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 leas than one tDOnth after the TruItcc recordI the notice of default,
<br />or two months if the trust property is not in any incorporated city or villaae and is used in fanning Operatiolll canied on by the trustor, the Trustee shall aive public notioe of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall seU the property at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the property in two separate sales 81 required by applicable law. Trustee may postpone sale of aU or any
<br />parcel of the property by public announcement at the time and place of any previously scheduled sale. LePller or its designee may plmlhue 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 l:Witials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained therein. Trustee shall apply the procoodl of the sale in the foUowina order: (a) to all expoIIICII of the sale.
<br />including, but not limited to, reasonable Trustee's fees, reasonable attorney's fees and reinstatement fees; (b) to aU lI\UM 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 ofmortaaaes on real property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand. lbe 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 />property. Such proceeds will be applied as provided in Covenant I. lbia assipment ia aubject to the terms ofany prior security agnlCIIDent.
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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 exercisina any mnedy upon
<br />Borrower's default, Lender does not waive any right to later consider the event a default If It happens apin.
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<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under this deed of tlu$t are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instrum(.;Its(s) does so only to grant and convey that Borrower's interest in the property to the Trustee under the tenDS
<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 ex.tead, modifY or make any other changes in
<br />the tenns of this deed of trust or the secured debt without that Borrower's consent and without releasina that Borrower from the terms of this deed of trust.
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<br />The duties and benefitll of this 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 the
<br />property address or any other address that Borrower has giV,i} to Lender. Borrower wiD aive any notice to IAad<< by certified mail to Lcader'.1ddress on pap 1 of this
<br />deed of trust, or to any other address, which Lender has designated. Any other notice to Lender shall be sent to Lcoder'.llddress as stated on page 1 ofthia deed ofUUlt.
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<br />Any notice shall be deemed to have been given to Borrower or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a Benefielal Interest In the Borrower. If all or any part of the property or any interest in it is sold or transfermi without the Lender's
<br />prior wrinen consent, Lender may demand inunediate payment of the secured debt. Lender may also demand i~iRl.. pa)'1DlllDt if the Borrower is not a natural perIOIl and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above ,ituationa if it is prohibited by fedcnllaw 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 obliption to make advances under the instIumc:otI or
<br />agreementll secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the lnIIt property. The 1.eDder sba1l deliver 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 COlts.
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<br />21. Successor Trustee. Lender, at lender's option, may remove Trustee and appoint a successor trustee by filSt, mailing a copy of the substitution oftrustec 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 each county in which the trust property, or some part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to aU the power, duties, authority and tide of the Trustee named in the deed of
<br />trust and of any successor trustee.
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