|
<br />COVENANTS
<br />
<br />200701588
<br />
<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 plineipal, second to interest, and then to
<br />pnnelpal. 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.
<br />
<br />2. Claims Against Title. Bon\Jwer will pay all taxes, assessments, and other chargcs attributable to the propelty 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 Borrower may have against
<br />parties who supply labor or materials to impmve or maintain the propelty.
<br />
<br />3. Insuranee. Horrowcr will kecp the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benefit. All Insurancc polieies shall
<br />l11clude 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 eithcr the restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insurance BOlmwcr
<br />agrces to maintain such insurancc for as long as Lender requires. '
<br />
<br />4. Property. Borrower will keep the property in good condition and make all repairs reasonably necessary.
<br />
<br />5. . E,xpcnscs. Borrower agre~s to pay all Lende.r's expenses, including reasonable attorneys' fees, if Borrower breaks any covcnants in this decd of trust or in any
<br />obhgatlon secured by tlus deed of trust. Borrower WIll pay these amounts to Lender as provided in Covenant 9 of this deed oftrust.
<br />
<br />6. Prior Security Interests. Unless Borrower nrst obtains Lender's written contest, Borrower will not make 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.
<br />
<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 Horrower is not in default. If Borrower defaults, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and manage the propClty and collect the rents. Any rents Lender collects shall be applied first to the costs of managing thc propcrty, including comt 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 thc sccured dcbt as
<br />provided in Covenant I.
<br />
<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 />deed of trust is on a unit in a condominium or a phmned unit development, Borrower will perform all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominium or plmmed unit development.
<br />
<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Horrower's duties under this deed of trust, I.ender may perform the duties or
<br />cause them to be perfornled. Lender may sign Horrower's name or pay any amount if necessary for performance. If any construction on the propelty is discontinued or not
<br />carried 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.
<br />
<br />Lender's failure to perform will not preclude Lender fmm excrcising any of its other rights under the law or this deed of trust.
<br />
<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 rate in effect on tlle secured debt.
<br />
<br />10. Default and Acceleration. If Bonower fails to makc any payment when due or breaks any covenants under this deed of ltust or any obligation secured by this deed of
<br />tlUSt 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.
<br />
<br />11. Request for Notice of Default. It is hereby requested that copies of the notices of default and sale be sent to each person who is a party hereto, at the addrcss of each
<br />such person, as set fOlth herein.
<br />
<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 default containing the information required by law. The Trustee shall also mail copies of the notice of default to the
<br />Bonower, to each person who is a party hereto, and to other persons as prescribed by applicable law. Not less than onc month after the Trustee rccords the notice of default,
<br />or two months if the trust propelty is not in any ineOlporated city or village and is used in fanning operations eanied on by the trustor, the Trustee shaH 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 propelty at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall olTer the property in two separate 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 designee may purchase thc property at any sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The reeitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statemcnts contained therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses of the salc,
<br />induding, but 110t 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.
<br />
<br />13. Foreclosure. At Lender's option, this deed oftnlst may be foreclosed in tlle manner provided by applicable law fur loreclosure ofmortgagcs on real property.
<br />
<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.
<br />
<br />15, Condemnation. Borrower assigns to Lemler 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 provided in Covenant I. This assigl1lnent is su~ieet to tlle tenns of any prior security agreement.
<br />
<br />16. 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 thc event a default if it happens again.
<br />
<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under tlns deed of trust are joint and several. Any Borrowcr who co-signs this
<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 tern~s
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any other BOlTower undcr this deed of trust may extend, modIfy or make any other changes 111
<br />the terms ofthis deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms of this deed oftrusl.
<br />
<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of Lender and Borrower.
<br />
<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 BOlTower at thc
<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 ofl1ust, or to any other address, which Lender has designated. Any othcr notice to Lcnder shall be sent to Lender's address as stated on page I oftlus deed of trust.
<br />
<br />Any notice shall be deemed to have been given to Bonuwer or Lender when given in the manner stated above.
<br />
<br />19, Transfer of the Property or a Beneficial Interest in the Borrower. If all or any part ofthe property.or any.interest in it is, sold or transf~rred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand l1nmedl~te p~ym~n~ I~ the B?r:ower IS,'lOt a nal1lral person and
<br />a beneficial interest in the Bonuwer is sold or transferred. Howcver, Lender may not demand payment 111 the above Sltual10ns If It IS prohibIted by lederallaw as of the date
<br />of this deed of trust.
<br />
<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no further obligatio~l to make advance~ under the instruments or
<br />agreements secured by this deed of trust, the Tlustee shall, upon written request by the Lender, reconvey the trust property. 1 he Lender sh~ll dehver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obligation so satist1ed. Borrower shall pay any reeordallon costs.
<br />
<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a ?Opy ?fthe substitution of trustee as required
<br />by applicable law, and then, by filing the substitution oftrustee fur record in the office ofthc register of deeds of ~ach count~ m wlu?h the ltUS! property, or sl~me part
<br />thereof, is situated. The successor trustee, without conveyance ofthe property, shall succeed to all the power, dulles, authonty and IItle ofthc rrustee named m the deed of
<br />!lust and of any successor trustee.
<br />
|