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<br />COVENANTS
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<br />200701628
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<br />1. Payments. BOlTower 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 Bon'owcr's bcnefit will be applied first to any amounts BOl1'0wer owes on thc sccured debt exclusive of interest or principal, second to interest, and then to
<br />principal. If partial prcpaymcnt of thc secured debt occurs for any rcason, 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 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. Bon'ower will keep the propelty insured under tenns 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 proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged property 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 property in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. BOlTower 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. BOlTower will pay these amounts to Lender as provided in Covenant 9 of this deed of trust.
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<br />6. Prior Seeurity Interests. Unless Borrower first obtains Lender's wtitten contest, BOlTower will not make or permit any changes to any prior security interests.
<br />Borrower will perform all of BOlTower'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 and Profits. BOlTower assigns to Lender the rents and profits of the property. Unless Borrower and Lender have agreed otherwise in writing,
<br />BOlTower may collect and retain the rents as long as Borrower is not in default. If BOlTower defaults, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and manage the prop city and collect the rents. Any rcnts Lender collects shall be applied first to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agcnts, 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. BOlTower 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, Bonuwer 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 of Lender to Perform for Borrower. If B011'0wer fails to perfonn, any of Borrower's duties Wlder this deed of trust, Lender may perfonn the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for perfonnance. If any construction on the property is discontinued or not
<br />carricd on in a reasonable manner, Lender may do whatcvcr 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 perfonn will not preclude Lender from exercising any of its other tights under the law or this deed oftrust.
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<br />Any amounts paid by Lender to protect Lender's security interest will bc securcd 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 />10. Default and Acceleration. If Bon'ower fails to make any payment when due or breaks any covenants Wlder this deed of trust or any obligation secured by this deed of
<br />tl1lst or any plior mUltgage or deed of trust, Lender may accelerate the matutity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies pennitted by applicable law.
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<br />II. 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 address of each
<br />such person, as set forth herein.
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<br />12. Power of Sale. If the Lender invokcs 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 />somc patt or parcel thereof is situated a notice of default containing the inlonnation required by law. The Trustee shall also mail copies of the notice of default to the
<br />BOlTower, to each pcrson who is a palty hereto, and to other persons as presclibed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the lIust property is not in any incorpomted city or villagc and is used in fanning operations carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prcsctibed by applicable law. Ttustec, without demand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />requircd by the Fann Homestead Protection Act, Tmstee shall oft'er the prop city in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of thc propClty 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 plice bid, Trustee shall deliver to the purchascr Tmstee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />ptima facie evidience of the tmth of the statements containcd 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, rcasonable 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 thc persons legally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed of trust may bc foreclosed in the maImer provided by applicable law for foreclosure of mortgages on real property.
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<br />14. Inspection. Lender may enter the propclty to inspect it if Lender givcs Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspcction.
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<br />15. Condemnation. Borrower assigns to Lender the procceds of any award or claim for damages connected with a condemnation or other taking of all or any part of tbe
<br />property. Such proceeds will bc 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 to Lender, Lender does not givc up any tights to later use any other remedy. By not exercising any remedy upon
<br />Bonuwer's default, Lender does not waivc any right to later consider the event a dcfault if it happens again.
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<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties WIder this deed of trust are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign thc 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 decd of lIust. In addition, such a Borrower agrces that the Lender and any other Borrower under this deed of trust may extend, modify or make any other changes in
<br />the lerms of this dced ohmst or the secured debt without that BOlTOwer's consent and without releasing that Borrower from the terms of this deed of trust.
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<br />The duties and benefits of this deed of trust shall bind 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 Bon'ower shall be given by delivering it or by mailing it by certified mail addressed to Borrower at the
<br />propelty address or any other address that Bonuwer has given to Lendcr. Bon'ower 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 of this deed of trust.
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<br />Any notice shall be deemed to have been givcn to Borrower or Lender when given in the manner statcd above.
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<br />19. Transfer of the Property or a Beneficlallnterest ill the Borrower. If all or any part of the property or any interest in it is sold or transferred withont the Lender's
<br />pliOI' written consent, Lcnder may demand inunediate payment of the secured dcbt. Lender may also demand immediate payment if the Borrower is not a natural person and
<br />a beneficial intcrcst in the Bon'ower is sold or transferred. However, Lendcr may not demand payment in the above situations if it is prohibited by fedemllaw as of the date
<br />of Ihis decd of tmst.
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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 advances under the instruments or
<br />agrecmcnts sccurcd by this deed of tlUSt, the Trustee shall, upon written request by the Lender, rcconvey the trust property. The Lender shall deliver to the Borrower, or to
<br />BOl1'owcr's successor in intcrcst, thc 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 succcssor trustce by first, mailing a copy oft~le 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 of deeds of each COWlty in which the trust property, or some part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, duties, authority and title of the Trustee named in the deed of
<br />trust and of any successor trustee.
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