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<br />COVENANTS
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<br />28"IB:~2'2
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<br />1. Payments. BOl1uwer 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 fur 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. 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 tItis deed of trust. Lcnder 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. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benefit. All Insurance policies shall
<br />include a standard mOltgage clause in favor of Lender. Lendcr will be named as loss payee or as the insured on any such insumnce policy. Any insumnce proceeds may be
<br />applied, within 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. Borrowcr will kcep the property in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Borrower agrees to pay all Lendcr'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 Lender as provided in Covenant 9 oftltis deed oftrust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contest, Borrower will not makc 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.
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<br />7. Assignment of Rents Bnd 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 expenscs. 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 />8. Leaseholds; Condomininms; Planned Unit Developments. Borrower agrees to comply with the provisions 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 rcgulations 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 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 thc propcrty is discontinued or not
<br />carricd 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 exercising any of its other rights under the law or this dced of !tust.
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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 ofthe 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 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 accelemte the maturity of the secured debt and demand inunediate payment and may invoke the power of sale and
<br />any other remedies pctmitted by applicablc 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 cach 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 defimlt containing the information required by law. Thc 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 Trustee records the noticc of default,
<br />or two months ifthe trust property is not in any incorpomted city or village and is used in farming opemtions carried on by the trustor, the Trustee shall give public noticc 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 Farm Hotnestead Protection Act, Trustce 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 dcsignee 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 propcrty. Thc recitials contained in Trustee's deed shall be
<br />prima facie evidiencc of the truth of the statements contained therein. Trustee shall apply the procecds of the sale in the following order: (a) to all expcnscs 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 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 foreclosnre 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 />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connectcd with a condenmation or other taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. Tltis assignment is subject to the 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 tights to later use any other remedy. By not exercising any remedy upon
<br />Borrower's default, Lender does not waive any right to later consider the event a default ifit happens again.
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<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bonnd. All duties under this deed of trust are joint and several. Any Borrower who co-signs tltis
<br />deed of trust but does not co-sign the undcrlying debt instruments(s) does so only to grant and convey that Borrowcr's interest in the property to the Trustee under the terms
<br />of this dced of trust. In addition, such a Borrower agrees that the Lender and any other Borrowcr under tltis deed of trust may extcnd, modifY or make any other 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 dced of trust.
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<br />The duties and benefits of this deed of trust shall biud 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 lnailing it by celtified mail addressed to Borrower at the
<br />property address or any other address that Borrower has givcn to Lender. Borrower will give any notice to Lender by certified mail to Lender's addrcss on page I of this
<br />deed of trust, 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 oftmst.
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<br />Any notice shall be deemed to have been given to Borrowct. or Lender when given in the manncr stated above.
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<br />19. Transfer of the Property or a Beneficial Iuterest in the .Borrower. If all or any part of the property or any interest in it is sold or transfcrred without the Lender's
<br />prior written consent, Lendcr may demand immediate payment of the secured debt. Lender may also demand immediate payment ifthc Borrower is not a natuml person and
<br />a beneficial interest in the Borrower is sold or tmnsferred. However, Lctlder may not demand paymctlt in the above situations if it is prohibited by fedemllaw as of the date
<br />of this deed of trust.
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<br />20. Reconveyance. When the ohligatiou secured by this deed of trust has been paid, and Lender has no further obligation to make advance~ under the instruments or
<br />agreC111ents secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender sh~1I dehver to the Borrower, or to
<br />Borrowcr's successor in interest, the trust deed and tIle note or other evidence of the obligation so satisfied. 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 first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution oftrustce for record in the office of the register of dceds of ~ach count~ in whi~h th~ trust property, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succced to all the powcr, duties, authonty and title of the Trustee named m the deed of
<br />trust and of any successor trustee.
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