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<br />COVENANTS
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<br />200606864
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<br />I. 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 principal, second to interest, and then to
<br />principal. Ifpaltial 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 full.
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<br />2. Claims Against Title. Borrower will pay all taxes, assessments, and other charges attributable to the propClty when due and will defend title to the property against
<br />any claims which would impair the lien of tlus deed of trust. Lender may require Borrower to assign any rights, claims or defenses which Borrower may have against
<br />palties who supply labor or materials to improve or maintain the propelty.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Horrower'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 I,ender's discretion, 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 LendCl' requires.
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<br />4. Property. Borrower will keep the pmperty in good condition and make all repairs reasonably necessary.
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<br />S. 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. Bon'ower will pay these amounts to Lender as provided in Covenant 9 of this deed oftrust.
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<br />6. Prior Security Interests. Unless !3orrower 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 Horrower's obligations under any prior mortgage, deed 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 writing,
<br />Borrower may collect and retain the rents as long as l3orrower is not in default. If !3orrower defaults, Lendcr, 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 applicd 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 remaining amount of rents will then apply to payments on the secured debt as
<br />provided in Covenant I.
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<br />II. 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 U1ut 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 trust, Lender may perform the duties or
<br />cause them to be performed. l,ender may sign !3orrower's name or pay any amount if necessary for performance. If any construction on tile 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 from exereising any of its other rights under tl1e law or this deed of trust.
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<br />Any amounts paid hy 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 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 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 rClnedies permitted 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 shalll1rst record in the office of the register of deeds of each county wherein the trust propelty or
<br />some part or parecl thereof is situated a notice of default containing the infonnation required by law. TIle 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 the Tlustee 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 fanning operations carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner 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 Homestead Protection Act, Trustee shall offer 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 atUlOUncement at the time and place of any previously scheduled 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 Trustee's deed shall be
<br />prima facie evidience of the tmth of the statements contained therein. Trustee shall apply the proceeds of thc sale in the following order: (a) to all expenses of the sale,
<br />including, but not limited to, reasonable Trustee's fees, reasonable allorney's fees and reinstatement fees; (b) to all sums secured by this deed oflrust, 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 property.
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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 />IS. Condemnatiou. BOlTower 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. This assignment is subject to the tenns 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 latcr use any other remedy. By not exercising any remedy upon
<br />Borrower's default, Lender does not waive any right to later consider thc event a default if it happens again.
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<br />17. Joint and Several Liability; Co-signers; Successors and Assi~ns Bound. All duties under this deed of trust are joint and several. Any Borrower who co-signs this
<br />deed oftrust but does not co-sign the underlying debt instruments(s) does so only to grant and convey that !3orrower's interest in the property to the Trustee under the terms
<br />of this deed of trust. 111 addition, such a Borrower agrees that the Lendcr and any other BOITOwer under this deed of trust may extend, modify or make any other changes in
<br />the terms of this decd oftrust or the secured debt without that Borrower's consent and witl10ut releasing that Borrower from the terms oflhis deed oftrust.
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<br />The duties and benefits 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 Bonuwer shall be given by delivering it or by mailing it by certified mail addressed to Bommer at the
<br />property address or any other address that Borrower has given to Lcnder. Borrower will give any notice to Lender by certified mail to Lender's address on page I of this
<br />deed oftmst, 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 oftrust.
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<br />Any notice shall be deemed to have bcen given to Borrower or Lendcr when given in the manner stated above.
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<br />19. Transfer of the Property or a Beneficial Interest in the Borrower. If all or any part ofthc property or any interest in it is sold or transferred without the Lender's
<br />prior wrillen consent, Lender may demand immediate payment ofthe secured debt. Lender may also de~nand immedi~te p~Y1n~n~ i~'the BOI~uwer is not a natural person and
<br />a bcneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment m the above sltuatlOns If It IS pluhlblted by fedentllaw as ofthe date
<br />of this deed oflrust.
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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 advanee~ under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust propClty. The Lender shall dehvCl' 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 reeordatlOn costs.
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<br />21. Successor Trustee. I ,ender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a eopy of the substitution ofttustee as required
<br />by applicable law, and then, by llIing the substitution oflrustee for record in the 0lI1ce of the register of deeds of ~aeh county in whi?h the trust propelty, or s~me part ,
<br />thereof, is situated. The successor tlUstee, without conveyance of the property, shall succeed to all the power, duttes, authonty and tttie of the Trustee named mthe deed of
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<br />tlUst and of any successor trustee.
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