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<br />COVENANTS
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<br />200701798
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<br />l. Pay~nts. Borrower agrees to make al1 payments on the secured debt when due. Unless Borrower and Lender agrce otherwise, any payments Lender rcceives from
<br />Borrower or for Borrower's benefit will be applied first to any amounts Borrower owes on the sccured 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 reducc or excuse any scheduled payment until the secured debt is paid in full.
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<br />2. Claims Against Title. BOlTower will pay all taxes, assessments, and other charges attributable to the property when due and will dcfend title to the property against
<br />any claims which would impair the lien of this deed of tmst. Lender may require Borrower to assign any rights, claims or defenses which Bouuwcr 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 or 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. BOITower will keep the 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. Bormwer will pay these amounts to Lender as provided in Covenant 9 of this deed or trust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contest, Borrower will not make or pemlit any changes to any prior security interests.
<br />Borrower will perlorm 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.
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<br />7. Assignment of Rents and Profits. BOlTOwer assigns to Lender the rents and profits offue property. Unless BOlTOwer 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, I"ender, Lender's agent, or 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 or managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other nccessary related expenses. The remaining amount or 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. 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 planned unit development, Borrower will perloun all of Borrowcr's duties under the covenants, by laws, or regulations of
<br />the condominium or planned unit devclopment.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perllmn, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to be perlormed. 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 interest in the property. This may include completing the construction.
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<br />I ,ender's failure to perlonn will not preclude Lender from exercising any of its other rights under the law or this deed oftrust.
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<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 fmm the
<br />date of the payment until paid in full at the interest rdte in effcct on the secured debt.
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<br />10. Default and Acceleration. If BOITower fails to make any payment when due or breaks any covenants under this deed OftluSt or any obligation secured by this deed of
<br />trust or any prior mortgage or deed or 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 peunitted by applicable law.
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<br />11. Request for Notice of Default. It is hereby requested that copies or 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,- rower ofSale-.- Ifthe~,iHvokes...the-PDwerofsale. the Trus!~e shall first record in the office of the register of deeds of each county wherein the trust pmpelty or
<br />some part or parcel thereof is situated a notice of delault containing the infomiatioii required bylaw. The Trustee shall also mail copies of the Ilotice..of default to the
<br />Borrower, to each person who is a party hereto, and to other persons as prescribed by applieahle law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the trust property is not in any ineOlporated city or village and is used in fanning operations eau"ied on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Bormwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Faun Homestead Protection Act, Trustee shall offer the pmperty in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the pmperty 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 reeilials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statcments 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 limitcd to, reasonable Trustee's fees, reasonable attorney's fees and reinstatement fees; (b) to all sums secured by this deed oftrust, and (c) the halance, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Forcclosure. At Lender's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real propelty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice heforehand. The notiec must stale the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking or all or any pll1t of the
<br />property. Such proceeds will be applied as pwvided in Covenant I" This assiglUnent is subject to the tenns or any prior security agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender does not give up any lights to later use any other remedy. By not exercising any remedy upon
<br />Borrower's default, Lender does not wai ve 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 or trust are joint and several. Any Borrower who co-signs tlus
<br />deed of l1ust 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 Trustec under the terms
<br />ofrhisueed-uf-l'llT!<t:'-'irr'"ddi;;".., ~nL;. It BO.."n~. a~.""'" II,,,, t1.~ ~..d~. "hit",,] vt;.~j D""vn~lllnd,:;r !hi~ deed "ft,...t 11'(11) .;^;ood~__~-;my-utlleH)hllflge;;-.jl1
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower Itom the terms of this deed of trust.
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<br />The duties and benefits of tlus 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 Bouuwer shall be given hy dcliveling it or by mailing it by certified mail addressed to BOITower a~ the
<br />propelty address or any other address that Borrower has given to Lender. Horrower will give any notice to Lender by certified mail to Lender's addres~ on page 1 olllus
<br />deed oftmst, 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 ofthls deed oft rust.
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<br />Any notice shall be deemed to have been given to BOlluwer or Lcnder when given in the manner stated above.
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<br />19. Transfer ofthe Property or a Beneficial hlterest in thc Borrower, If all or any part of the property or any interest in it is sold or translerred without the Lender's
<br />prior written consent, Lendcr may demand immediate payment of the secured debt. Lender may also demand immediate p~ym~~~ i~the Bor~"()wer is, not a natural person and
<br />a beneficial interest in the Borrower is sold or transren"ed. However, Lender may not demand payment in the above SItuatIOns II It IS prohIbIted by lederallaw as of the date
<br />of this deed oftmst.
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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 wlitten request by the Lender, reconvey the trust property. The Lender shall delIver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence ofthe ohligation so satisfied. Borrower shall pay any recordatIOn costs.
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<br />21. Successor Trustee. Lender, at Lendcr's option, may remove Trustee and appoint a successor trustee by first, mailing a ~opy ?rthe suhstitution of trustee as required
<br />by applicable law, and then, by filing the substitution of lrustee Jor rceord in the office of the register of deeds or ~ch county III wlll~h th~ trust propClty, or s~me palt ) ,
<br />thereof, is situated. The successor tlUstee, without conveyance of the property, shall succeed to all the power, dutIes, authollty and tItle of the Trustee named III the deed (I
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<br />trust and of any successor l1ustee.
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