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<br />COVENANTS
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<br />200700230
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<br />1. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree othelwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will be applied first to any amounts Borrower owes on the secured deht exclusive of interest or principal, second to interest, and then to
<br />principal. Ifpartial 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 tIust. Lender may require Borrower to assign any rights, claims or defenses which Borrower lllay have against
<br />patties who supply labor or materials to improve or maintain tbe property.
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<br />3. Insurance. Borrowcr will keep thc property insured under terms acceptable to Lender at Borrower's expense and for Lender's benefit. All Insurancc policies shall
<br />include a standard mortgage clause in favor of Lender. Lender will be named as loss payee or as tbe insured on any such insurance policy. Any insurance proceeds may be
<br />applicd, within Lcnder's discretion, to either the restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insurancc, Borrower
<br />agrees to maintain such insurance for as long as Lender rcquires.
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<br />4. Property. Borrower will keep tlle 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 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 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 Ilorrower's obligations under any prior mortgage, deed oftrust 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 Borrower is not in default. If Borrower defaults, Lender, Lender's agcnt, br 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 propelty, including court costs and
<br />attorncys' fees, commissions to rental agents, and any othcr necessary related expenses. The remaining amount of rents will then apply to payments on the securcd debt as
<br />provided in Covenant I.
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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 />decd of trust is on a unit in a condominium or a planned unit development, Borrower will perform all of Borrowcr's duties under the covenants, by laws, or regulations 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 Borrowcr'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 intcrest 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 deed of trust.
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<br />Any amounts paid by Lender to protcct 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 />] O. 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 mOltgage or deed of trust, Lender may accelerate the maturity of the securcd 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 />] I. Request for Notice of Default. It is hereby requested that copies oftbe 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 pmperty or
<br />some part or parcel thereof is situated a Ilotice of detault containing the information required by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a patty hereto, and to other persons as prescribed by applicable law. Not less than one month aileI' the Tlustee records the notice of default,
<br />or two monilis if the trust property is not in any incorporated city or village and is used in farming operations carried on by the trustor, the TlUstee 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 Farm 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 ofthe property by public mmouncement at the time and place of any previously scbeduled sale. Lender or its designee may purchase the property at any sale.
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<br />Upon receipt of payment ofthc 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 truth of the statements contained therein. Trustee shall apply tbe proceeds of the sale in the following order: (a) to all expenses 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 ilie persons legally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this decd of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real propetty.
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<br />]4. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice bcforchand. The notice must state the reasonable cause for Lcnder's
<br />inspection.
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<br />]5. Condelllnation. Borrower assigns to Lender the procecds of any award or claim for damages connected with a condemnation or other taking of all or any palt of the
<br />property. Such proceeds will be applied as provided in Covcnant I. This assignment is subject to the tenns of any prior security agreement.
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<br />]6. Waiver. By exercising any remedy available to Lender, Lendcr does not give up any rights 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 if it happens again.
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<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under tlns deed of trust are joint and several. Any Bon'Ower who co-signs tbis
<br />deed of trust but does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the property to the Trustee under the terms
<br />of this deed of tlUSt. 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 ofthis deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms ofthis deed of trust.
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<br />The duties and benefits of tbis deed of trust shall bind and benefit the successors and assigns of Lender and Borrower.
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<br />]8. 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 addres~ 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 oftllls deed oftrus!.
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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 />1.9. 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 inunediate payment ofthe secured debt. Lender may also demand inunediate payment if the BOffi)Wer is not a natural pe,rson and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender lIlay not demand payment 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 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~1I dehver to the Borrower, or to
<br />Borrower's successor in intcrest, the trust dced and the note or other evidence of the obligation so satisfied, Borrower shall pay any rccordatlOn 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 oftbe substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of tbe register of deeds of ~ach count~ in whi~h th~ trust property, or s~me patt
<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 />trust and of any successor trustee.
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