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<br />COVENANTS
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<br />200701940
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<br />1. Payments. Borrower agrees to make all payments on the secured debt when duc. Unless Bonuwer 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 thcn 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 taxcs, assessments, and other charges attributable to the property when due and will defcnd titlc to thc propclty against
<br />any claims which would impair the licn of this dccd of trust. Lcndcr may rcquire Borrower to assign any rights, claims or dcfcnscs which BOlrowcr may havc against
<br />patties who supply labor or matcrials to improvc or maintain the property.
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<br />3. Insnrance. 8orrower will kcep thc property insured undcr terms acceptablc 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 deht. 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 pmperty in good condition and make all repairs reasonably nccessary.
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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 Borrower first obtains Lender's written contest, Borrower will not make or permit any changes to any prior security interests.
<br />Borrower will pcrtorm 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. Borrower assigns to Lender the rents and profits of the property. Unless Borrower and Lelider 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, Lender's agent, or a court appointed receiver may take
<br />possession and manage the property and collect the rents. Any rents Lender collccts shall be applied first to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rcntal agents, and any other necessary related cxpenses. The remaining amount of rents will then apply to payments on thc sccured dcbt as
<br />providcd 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 planncd unit developmcnt, Borrower will perform all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominium or plalUled unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Horrower's duties under this deed of trust, Lender may pertorm the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount ifnecessary for perlorrnance, If any construction on the property is discontinued or not
<br />carried on in a reasonable manncr, Lender may do whatcver is neccssary to protect Lender's security interest in the property. This may include completing the construction.
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<br />Lender's failure to perform will not prcclude Lender from exercising any of its other rights undcr thc law or this deed of trust.
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<br />Any amounts paid by Lendcr to protect Lendcr's security intcrest will be secured by this dccd of trust. Such amounts will be due on demand and will bcar intcrcst from the
<br />date of thc paymcnt until paid in full at thc interest rate in effect on the secured debt.
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<br />10. Default and AcceleratIon. If Borrower fails to make any paymcnt when due or breaks any covenants under this deed OftlUSt or any obligation secured by this deed of
<br />tlUst or any prior mOl1gage or deed of hust, 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.
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<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 palty 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 trust property or
<br />some pal1 or parcel thereof is situated a notice of default containing the in((lrmation required by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a pal1y hereto, and to other persons as prescribed by applicable law. Not less than one month atter the TlUstee records the notice of default,
<br />or two months if the ltust propelty IS not in any incorporated city or village and is used in farnling operations carried on by the tlUstor, the Tmstee 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 property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, TlUstee shall offer the property in two separate sales as required by applicable law. TlUstee 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 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 contained in Trustee's deed shall be
<br />Plima facie evidience of the tlUth of the statements 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, 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.
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<br />13. Foreclosure. At Lender's option, this dced oftlUst may be foreclosed in the manner provided by applicable law lor lllreclosure of mOltgages on real property,
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<br />14. Inspection. Lender may enter the propcrty to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />t 5. Condemnation. Borrower assigns to Lender 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 assignment is subject to the tenns 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 rights to later use any other remedy. By not exercising any remedy upon
<br />Borrower's default, I,endcr 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 oftlUst are joint and several. Any Borrower who co-signs tills
<br />deed oftlUst but does not co-sign the underlying debt instruments(s) docs 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 BOll'()wer agrees that the Lender and any other Borrower under tills deed of ltust may extend, modify or make any other changes in
<br />the terms of this deed of trust or the secured debt without that Borrower's consent and WitllOut releasing that Borrower from the terms of this deed OftIUS!.
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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 BOll'ower.
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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 it by certified mail addressed to BOll'ower at the
<br />pl'Operty address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's addres~ on page. I ot thiS
<br />deed of tmst, 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 tillS deed of trust.
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<br />Any notice shall be deemed to have been given to Borrower or Lender when given in tile 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 Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand immedi~te p~ym~~t i~the B?~,wer is.not a natural pe.rson and
<br />a beneficial interest in the Borl'Ower is sold or transferred. However, Lender may not demand payment 111 the above sltuahons If It IS prohibIted by Iederallaw as of the date
<br />of this deed oftmst.
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<br />20. Reconveyance. When the obligation secured by this deed of tlUst has been paid, and Lender has no fulther obligation 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 hust property. The Lender shall delIver to the Borr'()wer, or to
<br />Borrower's successor in interest, 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 tmstee by flrst, mailing a copy of the substitution oftlUstee as required
<br />by applicable law, and then, by filing the substitution of tlUstee for record in the otI1ce of the register of deeds of ~ach county in whl~h the ltust property, or s~me part
<br />thereof, is situated. The successor tlUstee, without conveyance ofthe propelty, shall succeed to all the power, dutIes, authonty and htle of the Trustee named III the deed of
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<br />tlUst and of any successor tlUstee,
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