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<br />COVENANTS
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<br />200700504
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<br />1. 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. 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 attributahle to the property when due and will defend title to the propcrty 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 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 mortgage clause in favor of Lender. Lender will be named as loss payee or as the insured on any such insurance policy. Any insurance pruceeds may be
<br />applied, within Lender's discretiun, tu either the resturation ar repair uf the damaged property or tu the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees tu maintain such insurance fur as long as Lender requires.
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<br />4. Property. Borrower will keep the property in good cundition and make all repairs reasunably necessary.
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasunable attorneys' fees, if Borrower breaks any covenants in this deed uf trust or in any
<br />obligatiun secured by this deed oftrust. Burrower will pay these amounts to Lender as provided in Cuvenant 9 of this deed of trust.
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<br />6. Prior Security Interests. Unless Burrower first ubtains Lender's written contest, Burrower will nut make or permit any changes tu any prior security intcrests.
<br />Borrower will perform all of Burrower's obligatiuns under any priur mortgage, deed uftrust or other security agreement, including Burrower's cavenants ta make payments
<br />when due.
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<br />7. Assignment of Rents and Profits. Burrower assigns tu Lender the rents and profits ufthe 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, Lendcr's agent, or a court appuinted receiver may take
<br />pussession 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 casts and
<br />atturneys' fees, cummissions to rental agents, and any uther necessary related expenses. The remaining amuunt of rents will then apply tu payments on the secured debt as
<br />provided in Cuvenant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisiuns ufany lease if this deed of trust is on leasehold. (I' this
<br />deed uf trust is on a unit in a condominium or a planned unit develapment, Borrower will perform all of Burruwer's duties under the covenants, by laws, or regulations of
<br />the cundominium ur 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 perfurmed. Lender may sign Borrower's name or pay any amuunt if necessary for performance. If any cunstruction on the property is discuntinued or nut
<br />carried on in a reasunable manner, Lender may do whatever is necessary to protect Lender's security interest in the property. This may include completing the constructiun.
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<br />Lender's failure to perfurm will not prec lude Lender from exereising any of its uther rights under the law or this deed of trust.
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<br />Any amuunts paid by Lender to protect Lender's security intcrest will be secured by this deed oftrust. Such amounts will be due on demand and will bear intcrest from the
<br />date uf the 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 tu make any payment when due ur breaks any cuvenants under this deed of trust or any obligatiun secured by this deed of
<br />trust or any priur mortgage or deed of trust, Lender may accelemte the maturity of the secured debt and demand immcdiate 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 ufthe notices of default and sale be sent to each person who is a party heretu, at the address uf each
<br />such person, as set furth herein.
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<br />12. Power of Sale. If the Lender invukes 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 thereuf is situated a :lOtice of dcfault containing the information required by law. The "flUstc" shall also mail copies of the natice 1.11' default to thc
<br />Borrower, to each person who is a party hereto, and to uther persons as prescribed by applicable law. Nut less than one munth after the Trustee records the notice of default,
<br />or twu munths if the trust property is not in any incorpurated city or village and is used in farming operatiuns carried un by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, withuut demand on Burrower, shall sell the property at public auctiun 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 uf all or any
<br />parcel of the property by public announcement 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 cuntained in Trustee's deed shall be
<br />prima facie evidience uf the truth uf the statements contained therein. Trustee shall apply the proceeds of the sale in the following urder: (a) to all cxpenses of thc sale,
<br />including, but not limited to, reasunable Trustee's fees, reasonable attorney's fees and reinstatement fees; (b) to all sums secured by this deed uftrust, and (c) the balance, if
<br />any, to the persuns 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 fur foreclosure uf mortgages un real property.
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<br />14. Inspection. Lender may enter the property tu inspect it if Lender gives Burrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns tu Lender the proceeds of any award or claim for damages cunnected with a condemnatiun ur other taking uf all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the terms of any prior security agreement.
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<br />16. Waiver. By exercising any remedy available tu Lender, Lender does not give up any rights to later use any other remedy. By not exercising any remedy upun
<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 this deed of trust are joint and several. Any Burrower who cu-signs this
<br />deed uf trust but dues not co-sign the underlying debt instruments( s) does su unly to grant and convey that Borrower's interest in the property tu the Trustee under the terms
<br />ufthis deed of trust. In additiun, such a Burrower agrees that the Lender and any other Borrower under this deed uftrust may extend, modify or make any uther changes in
<br />the terms uf this deed uf trust or the secured debt withuut that Borrower's consent and without releasing that Borrower from the terms of this deed of trust.
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<br />The duties and benefits uf this deed of trust shall bind and benefit the successors and assigns uf Lender and Burrower.
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<br />18. Notice. Unless utherwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certified mail addressed tu Barrower 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 uf this deed of trust.
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<br />Any notice shall be deemed to have been given tu Borrower ur 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 suld or transferred without the Lender's
<br />prior written cunsent, Lender may demand immediate payment of the secured debt. Lender may alsu demand inunediate payment if the Borruwer is not a natural person and
<br />a beneficial interest in the Borrower is suld or tmnsferred. However, Lender may not demand payment in the above situations if it is prohibited by federal law as ufthe date
<br />of this deed of trust.
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<br />20. Reconveyance. When the ubligation secured by this deed of trust has been paid, and Lender has nu further obligation to make advances under the instrumcnts or
<br />agreements secured by this deed uftrust, the Trustee shall, upun written request by the Lender, reconvey the trust property. The Lender shall deliver to the Borrower, or to
<br />Borruwer's successor in interest, the trust deed and the note ur other evidence of the obligation so satisfied. Barrower shall pay any recurdation custs.
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<br />21. Successor Trustee. Lender, at Lender's uption, may remuve Trustee and appoint a successor trustee by first, mailing a copy uf the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register uf deeds of each county in which the trust property, or sume part
<br />thereof, is situated. The suceessur trustee, without conveyance of the pruperty, shall succeed to all the power, duties, authority and title ofthe Trustee named in thc deed of
<br />trust and of any successor trustee.
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