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<br />COVENANTS
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<br />200702056
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<br />1. Payments. Bonuwcr agrccs to makc 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 beneHt will be applied first to any amounts Borrower owes on the secured debt exclusive of interest or principal, second to interest, and then to
<br />principal. If paltial prepayment of the secured debt occurs for any reason, it will not reduce or excusc any scheduled payment until the secured debt is paid in full.
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<br />2. Claims Against Title. Bonuwer will pay all taxcs, assessmcnts, and other charges attributable to the property when due and will defend titlc 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 dcfenses 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. Borrower will keep the property insured under terms acceptable to Lender at Horrower's expense and lor Lender's beneHt. All Insurance policies shall
<br />include a standard mortgagc 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 rcpair of the damaged property or to the secured debt. II' Lender requires mOltgage insurance, Borrower
<br />agrees to maintain such insunlllce liJr as long as Lender requires.
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<br />4. Property. Borrower will keep thc propelty in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Borrower agrees to pay all Lender's cxpcnscs, including reasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation sccured by this deed oftmst. Borrower will pay these amounts to Lender as provided in Covcnant 9 of this deed oftmst.
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<br />6. Prior Security luterests. Unless Borrower first obtains Leuder's written contest, Borrower will not make or pcrmit any changes to any prior security interests.
<br />Borrower will perform all of Borrower's obligations under any prior mortgage, deed oftrust or other security agreement, including Borrower's covcnants to make payments
<br />when due.
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<br />7. Assignment of Rents and Prol1ts. Borrowcr assigns to Lender the rents and protlts of the property. Unless Borrower and Lender have agreed otherwise in writing,
<br />Borrowcr 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 collects shall be applied tlrst to the costs of managing the property, including court 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. BOlTOwer agrees to comply with the provisions of any lease if this dced of trust is ouleasehold. If this
<br />deed of trust is on a nnit 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 of Lender to Perform for Borrower. If Borrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perform the dutics or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any construction on the propcrty 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 />Lender's failure to perform will not preclude Lender from exercising any 01' its other rights undcr the law or this deed 01' trust.
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<br />Any amounts paid by Lender to protect Lender's security interest will he secured by this deed oftrust. Such amounts will be due on demand and will bear interest from the
<br />date of the payment until paid in full at the intcrest rate in effect on the secured debt.
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<br />10. Default and Acceleration. If Borrower fails to make any payment when due or breaks any covenants under this deed of trust or any ohligation secured by this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accelerdte the matulity of the secured debt and demand immediate payment and may invoke thc 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 hercby requested that copies of thc notices of default and sale be sent to each person who is a party hereto, at the address or each
<br />such person, as set f011h herein.
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<br />12. Power of Sale. If the Lender invokes the powcr of sale, the Trustee shall first record in the ollice of the register of deeds 01' each county wherein the lIust propclty or
<br />some part or pareel thereof is situatcd a notice of delimit containing the infonnation required by law. The Trustec shall also mail copies 01' thc notice of default to the
<br />Borrower, to each person who is a party hereto, and to othcr persons as prescribed hy applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months ifthe trust property is not in any incorporated city or village and is used in fanning opemtions canied on by the trustor, thc Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall scll the property at public auction to the highcst bidder. If
<br />required by the Fann Homcstcad Protection Act, Trustce shall offer the propcrty in two sepamte sales as required by applicable law. Trustee may postpone sale of all or any
<br />pareel of the property by public announcement at the timc and place of any prcviously scheduled sale. Lender or its designec may purchase the propClty at any sale.
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<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchascr Trustee's deed conveying the property. Thc recitials contained in Trustee's deed shall be
<br />prima I'aeie evidience of the truth of thc statements containcd therein. Trustec shall apply the proceeds of the sale in the following order: (a) to all expenses of thc sale,
<br />including, but not limited to, reasonable Trustee's fecs, reasonable attorney's fees and reinstatement fccs; (b) to all sums secured by this dced oftrust, and (c) thc halance, if
<br />any, to the persons legally cntitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed of trust may be foreclosed in the manner providcd by applicable law for toreclosure of mOltgages on real propeliy.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforchand. The notice must state the reasonable cause lor 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 othcr taking of all or any part of the
<br />propelty. Such proceeds will be applied as provided in Covenant 1. This assigmnent 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, Lender 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 of trust are joint and several. Any Borrower who co-signs this
<br />deed oftrust 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 Borrower 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 deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms ofthis deed oHrust.
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<br />The duties and benefits of this deed oftrust stIall 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 Borrower shall be given by delivering it or by mailing it by certified mail addressed to Borrower at the
<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 />dced of trust, or to any other address, which Lender has dcsignated. Any other noticc to Lender shall be sent to Lender's address as stated on pagc I oftl11s dccd oftrus!.
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<br />Any notice shall be deemed to have been given to Bonuwer or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a Benel1ciallntercst 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 dcmand immediate paymcnt of the secured debt. Lender may also de~and immedi~te p~ym?nt il'the B?,-:ower is not a natural pe,rson and
<br />a bcneficial interest in the Bonuwer is sold or transferred. However, Lender may not demand payment III the above sltualtons If It IS prolllblted by fedemllaw as of thc date
<br />of this deed ol'trust.
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<br />20. Reconveyance. When the obligation sccured by this deed 01' trust has been paid, and Lender has no furthcr obligation to make advance~ under the insltuments or
<br />agreements secured by this deed of trust, the Tlustee shall, upon writtcn request by the Lender, reconvey the trust pmperty. The Lender sh~ll dehvcr to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence ofthe obligation so satisl1ed. Borrower shall pay any recordalton costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may removc Trustee and appoint a successor trustee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the rcgister 01' deeds 01' ~ach count~ in whi~h the trust property, or s~me patt .
<br />thereof, is situated. The successor trustee, without conveyance ofthe propcrty, shall succeed to all the powcr, dulles, authonty and !ttle of the Trustee named III the deed 01
<br />trust and of any successor trustee.
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