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<br />COVENANTS
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<br />200701104
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<br />I. Payments. Bon'ower agrees to make all payments on the secured debt when due. Unless Bon-ower and Lender agree otherwise, any payments Lender receives from
<br />Horrower or for Rorrower's benel1t will be applied I1rstto any amounts Borrower owes on the secured debt exclusive of interest or ptineipal, 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. BOlTuwer will pay all taxes, assessments, and other charges attributable to the property when due and will defend title to the property against
<br />any ClailllS which would impair the lien of this deed of tmst. Lender may require Bon-ower to assign any rights, claims or defenses which BOffilwer may have against
<br />patties who supply labor or materials to impmve or maintain the pmperty.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrower's cxpcnsc and for Lender's benefit. All Insurance policies shall
<br />include a standard mOltgage 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 Lender's discretion, to either the restoration or repair of the damaged pmpClty or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will keep the propelty 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. Borrower will pay these amounts to Lender as provided in Covenant 9 of this deed of trust.
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<br />6. Prior Security Interests. Unless Horrower first obtains Lender's written contest, Borrower will not make or pennit lmy changes to any prior security interests.
<br />Borrower will pcrll)fln all or Borrower's obligations undcr any prior mortgage, decd of trust or othcr security agreement, including Horrower'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 Bonuwer and Lender have agreed othelwise 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 />posscssion and manage the propetty and collcct the I'Cnts. Any rents Lender collccts shall be applied first to the costs of managing the property, including COUlt 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 />8. Leaseholds; Condominiums; Planned Unit Developments. BOffilwer 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 unit development.
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<br />9. Authority uf Lender to Perform fur Borrower. If Rorrower fails to perform, any of Borrower's duties under lhis deed of trust, Lender may perform the duties or
<br />cause them 10 be performed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any constmction on the property is discontinued or not
<br />carried on in a reasonablc manner, Lender may do whatever is necessary to protect Lender's security interest in thc property. This may include completing the construction.
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<br />I ,ender's failure to perlorm will not preclude Lender fr01l1 exercising any of its other rights under the law or this deed of ltust.
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<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed oftrust. Such amounts will be due on demand and will bear interest fmm the
<br />date ofthe payment until paid in full at the interest rate in elTect on thc sccured debt.
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<br />10. Default and Acceleration. If BOll-ower fails to make any payment when due or breaks any covenants under this deed oftrust or any obligation secun..>d by this deed of
<br />trust or any prior mOltgage or deed of trust, Lemler may accelerate the matutity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies pellnitted by applicable law.
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<br />I I. Request for Notice of Default. It is hereby requested that copies of the notices of default and sale be senl 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 tmst propetty or
<br />some part or parcel thereof is situatcd a notice of default containing the infollnation required by law. The Tmstee shall also mail copies of the notice of defauftto the
<br />BOlTOwer, to each person who is a plllty hereto, and to other persons as prescribed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the trust pmpelty is not in any incorporaled city or village and is used in fanning operations call'ied on by the !tustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Tlustee, without demand on Borrower, shall sell the propetty at public auction to the highest bidder. If
<br />required by the Fann Ilomestead Protection Act, Trustee shall offer the property in two separate sales as required by applicable law. Tmstee may postpone sale of all or any
<br />parcel of the properly by public announcement at the time and place of any previously scheduled sale. u,'IIder or its designee may purchase the pmperty at any sale.
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<br />Upon rceeipt of payment of the price bid, Trustec shall deliver to the purchaser Trustce's deed conveying the property. The recitials containcd in Trustee's deed shall be
<br />ptima facie evidicnce of the tmth of the statemcnts contained therein. Trustee shall apply the 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, rea~onable 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 pCl'Sons 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 mannerpmvided by applicable law for foreclosure of mOlt gages on real propelty.
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<br />14. Inspection. Lender may enter lhe property to inspect it if Lcnder gives Borrower notice beforehand. Thc notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. BOlTower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any patt of the
<br />property. Such pmceeds will be applied as pmvided 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 to Lender, Lender does not give up any tights to later use any other remedy. By not exercising any remedy upon
<br />Harrower's default, Lender does not waive any right to later consider lhe event a default if it happens again.
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<br />17. Joint and Several Liahility; Co-siguers; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any BOlTuwer who co-signs this
<br />deed oftmst 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 trust. In addition, such a BOlTower agrees that the Lender and any other Borrower under this deed of trust may extend, modify or make any other changes in
<br />the terms of this dced oftmst or the secured debt without that Rormwer's consent and without releasing that Horrower from the terms oflhis deed oftmst.
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<br />The duties and benefits of this dced of trust shall bind and benefit the successors and assigns orLenderand 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 il by eeltified mail addressed to Borrower at the
<br />propelty address or any other address that Horrower has given to Lender. Borrower will give any notice to Lender by certil1ed mail to Lender's address on page I of this
<br />deed of hust, 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 oflrust.
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<br />Any notice shall be deemed to have been given to Borrower or LCllder 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 I ,ender's
<br />ptior wtitten consent, Lender may demand immediate payment of the secured debt. Lender may also demand immediate payment if the Bonower is not a natural person and
<br />a beneficial interest in the Borrower is sold or transfencd. However, Lender may not demand payment in the above situations if it is pmhibited 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 tllis deed of tmst has been paid, and Lender has no further obligation to make advance~ under the instruments or
<br />agreements secured by this deed of tmst, the Trustee shall, upon written request by the Lender, reconvey the tlUSt property. The Lender shall dehver to the Borrower, or to
<br />Borrower's successor in interesl, the trust deed and the 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 ofttustee as required
<br />by applicable law, and then, by filing the substitution ofttustee for record in the office of the register of deeds of each county in which the tmst pmpetty, or st~me part
<br />thereof; is situated. The successor trustee, without conveyance of the propetty, shall succeed to all the power, duties, authority and litle of the TlUstee named 111 the deed of
<br />tmst and of any successor tmstee.
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