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<br />COVENANTS
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<br />200607343
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<br />1. Payments. Borrower agrees to make all payments on the secured debt when due_ Unless BOlTOwer and Lender agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will be applied first to any amounts Borrowl'r owes on the secured debt exclusive of interest 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 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 Borrower to assign any rights, claims or defenses which Bonuwer 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 property insured under tenns acceptable to Lender at Borrower's expense and for Lender's benefit. All Insurance policil's shall
<br />includc a standard mortgage clause in favor of Lendl'r. Lender will be named as loss paycc or as the insured on any such insurancl' policy. Any insurance proceeds may bc
<br />applied, within Lendcr's discretion, to either the restomtion or repair of the damaged propcrty or to the sccured debt. If Lender requirl's mortgagl' insurancl', BomlWer
<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 attorncys' fces, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed of trust. Borrower will pay thcsc amounts to Lendcr as pmvided in Covenant 9 of this del'd of trust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contest, Borrower will not make or pcrmit any changes to any prior security interests.
<br />BOlTower will perform all of Borrower's obligations under any prior mortgage, deed of trust or other security agreement, including Borrowcr's covenants to make payments
<br />whcn due.
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<br />7. Assignment of Rents and Profits. Borrower assigns to Lender thl' 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 takl'
<br />possession and manage the pmperty and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the property, including COUlt costs and
<br />attorneys' fl'l's, commissions to rental agents, and any other necessary related expenses. The remaining amount of rents will then apply to payments on the sl'curl'd dl'bt as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with thc provisions of any lease if this deed of trust is on leasehold. If this
<br />dl'ed of trust is on a unit in a condominium or a planned unit developml'nt, Borrower will perfl)rm all of Borrower's duties under the covenants, by laws, or rl'gulations of
<br />thc 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 dutics 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 nl'cessary lor performancc. If any construction on the property is discontinul'd or not
<br />carried on in a reasonahle 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 exercising any of its ofhl'r rights under the law or this deed oftrust.
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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 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 remedies 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 dl'fault and sale be sent to each person who is a party hereto, at the address of l'ach
<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 thl' trust property or
<br />some palt or pared thl'rtlof is situated a notice of default containing the infonnation requirl'd by law. The Trustcc shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a party hercto, and to other persons as prescribed by applicable law. Not less than onc month after the Trustee records the notice of default,
<br />or two months if the trust pmperty is not in any incorporated city or villagc and is used in falming operations carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribl'd by applicable law. Trustee, without dcmand on BOITOwer, shall sell the proPl'rty at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the property in two sepamte sales as required 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 dl'signee may purchase the property at any sale.
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<br />Upon rl'cdpt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustl'l"s dl'ed shall bl'
<br />prima facil' l'vidil'nce of the truth of the statements contained therein. Trustel' shall apply the proceeds of the sale in the following order: (a) to all expenses of thl' salt:,
<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 of trust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Foredo$ure. At Lender's option, this deed of trust may be foreclosed in the manner providcd by applicable law for foreclosure of mortgagl's on rl'al property.
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<br />14. Inspection. Lendl'r may entl'r the property to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause for Lendcr'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 pmvided in Covenant 1. This assigrunl'nt is subjl'ct to the terms of any prior security agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender docs not give up any rights to later use any other remedy. By not exercising any rl'mOOy upon
<br />Bonuwer'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-signers; 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 underlying debt instruml'nts(s) does so only to gmnt 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, modi fy or make any other changes in
<br />the terms of this deed of trust or the sl'cured debt without that Borrower's consent and without releasing that Borrower from the terms offhis deed of trust.
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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 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 given to Lender. Borrower will give any notice to Lender by certified mail to Lender's address 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 this deed of trust.
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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 Beneficial Interest 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 demand immediate payment if the Borrower is not a natural person and
<br />a bl'nl'ficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above situations if it is prohibited by federal law 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 advances under thl' instruml'nts or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender shall 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 satislled. 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 llrst, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by ming the suhstitution 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 all the power, duties, authority and title of the Trustee named in the deed of
<br />trust and of any successor trustel'.
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