|
<br />COVENANTS
<br />
<br />200702060
<br />
<br />1. Payments. BOlTOwer agrees to make all payments on the secured debt when dut1. Unkss 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 principal, second to interest, and then to
<br />principal. If partial prepayment of the secured debt occurs ll)r any reason, it will not reduce or excuse any scheduled payment until the secured debt is paid in full.
<br />
<br />2. Claims A~ainst Title. Borrower will pay all taxes, assessments, and other charges attrihutable 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 bust. Lender may require Borrower to assign any rights, claims or defenses which Borrower may have against
<br />palties who supply labor or matt1rials to improve or maintain tht1 propt1rty.
<br />
<br />3. Insurance. Borrower will kt1ep tht1 properly insured undt1r terms acceptable to Lender at Borrowt1r's expense and for Lender's bendlt. All Insurance policit1s shall
<br />include 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 dther the rt1storation or rt1pair of the damagt1d property or to the st1curt1d debt. If Lender requirt1s mortgagt1 insumnct1, BOHllWt1r
<br />agrees to maintain such insumnce for as long as Lender requires.
<br />
<br />4. Property. BOITOwer will keep the property in good condition and make all repairs reasonably neeessmy.
<br />
<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 ofthis deed of trust.
<br />
<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 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. Bon'Ower assigns to Lender the rents and profits of the property. Unless Bon'Ower 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, 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 first 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 .
<br />
<br />8. Leaseholds; Condominiums; Planned Unit Developments. BOITOwer agrees to comply with the provisions of any lease if this det1d of trust is on kast1hold. If this
<br />deed of trust is on a unit in a condominium or a planned unit development, Borrower will perform all of Horrowt1r's duties under the covt1nants, by laws, or rt1gulations of
<br />the condominium or planned unit development.
<br />
<br />9. Authority of Lender to Perform for Borrower. If Borrowt1r fails to perform, any of Borrower's duties under this deed of trust, I ,en del' may perform the duties or
<br />caust1 them to be performt1d. Lt1nder may sign Borrower's name or pay any amount if necessary for performance. If any construction on the propelty is discontinut1d or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to prott1ct Lender's st1curity interest in the property. This may include completing the construction.
<br />
<br />Lender's failure to perform will not precludt1 Lendt1r lrom t1xt1rcising any of its other rights under the law or this deed oftrust.
<br />
<br />Any amounts paid by Lender to protect Lendt1r's security interest will be secured by this deed of trust. Such amounts will be dut1 on dt1mand and will bear interest from the
<br />date of the payment until paid in full at tllt1 interest rate in efTect on the secured debt.
<br />
<br />1(1. Default and Acceleration. If Borrower fails to make any payment when due or breaks any covenants under this lked oftrust or any obligation secured by this deed of
<br />trust or any prior mortgage or dt1ed of trust, Lender may accelerate the maturity of the secured dt1bt and demand immediate payment and may invokt1 the power of sale and
<br />any other remedies pennitted by applicable law.
<br />
<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 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 />somt1 part or parcel thereof is situated a notice of delault containing the infonnation required by law. The Trustee shall also mail copies of the notice of default to the
<br />Bon'Ower, to each person who is a palty hereto, and to other persons as prescribed by applicable law. Not less than one month after the Trustee records the notict1 of delault,
<br />or two months if the trust propelty is not in any incorporated city or village and is used in farming operations eanied 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 Borrower, shall sell the propelty at public auction to the highest biddt1r. If
<br />required by the Faun Homestead Protection Act, Trustee shall offer 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 the pl'Operty 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 recitials contained in Trustee's deed shall be
<br />Plima facie evidience of the truth of the statemt1nts contained therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expt1nses of the sale,
<br />including, but not limited to, reasonable Trustee's ft1es, reasonable attorney's lees and reinstatement fees; (b) to all sums securt1d 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 Lendt1r's option, this deed oftrust may be foreelost1d in the mmmerprovided by applicable law for foreclosure of mortgages on real propelty.
<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 />IS. Condemnation. Borrower assigns to Lendt1r the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any patt of tht1
<br />property. Such proceeds will be applit1d as provided in Covenant I. This assignment is subject to the tenns of any prior security agreement.
<br />
<br />16. Waiver. By exercising any remedy availabk to Lender, Lender does not give up any rights to latt1r use any other rt1medy. By not exercising any remedy upon
<br />Borrowt1r's default, Lender does not waive any right to later consider the evt1nt a default if it happens again.
<br />
<br />17. .Joint and Several Llahility; Co-si~ners; Successors and Assigns Bound. All duties under this deed of Itust are joint and several. Any Bon'Ower who co,signs this
<br />deed oftlust hut does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's intert1st in the property to the Trustet1 under the terms
<br />of this deed oftrust. In addition, such a Borrower agrt1es that the Lender and any other Borrower undt1r this deed oftlust may extend, modify or makt1 any other changes in
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms of this deed of trust.
<br />
<br />The duties and benefits of this det1d of trust shall bind and benefit the successors and assigns of Lender and Borrower.
<br />
<br />18. Notice. Unkss othClwise required by law, any notice to BOHllwer shall be given by deIivt1ring it or by mailing it by ct1ltilled mail addressed to Borrower at the
<br />property address or any other addrt1ss that Borrower has given to Lender. Borrower will give any notice to Lt1nder hy certified mail to Lender's add~es~ 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 ot tillS deed 01 trust.
<br />
<br />Any notice shall be deemed to havt1 been given to Borrower 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 of the property or any intt1rest in it is sold or transferred without the Lender's
<br />prior wtiUt1n consent, Lender may demand immediate payment oftlle secured debt. Lender may also de~nand immedi~lte p~ym~n~ i~'the B~n'Ower IS.not a natural pe,rson and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lt1nder may not demand paymt1nt 11l the above SituatIOns If It IS prohibIted by tellt1rallaw as of the date
<br />
<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 l\.uther obligation to make advanct1~ under the instruments or
<br />agrt1ements secured by this deed of trust, the TlUstee shall, upon written request by the Lender, reconvey the trust pl'Operty. The Lendt1r sh~1I dehver to the BOn'Ower, or to
<br />Borrower's successor in interest, tht1 trust deed lmd the note or other evidence of the obligation so satisl1ed. Harrower shall pay any rt1cordatlOn costs.
<br />
<br />21. Successor Trustee. Lt1nder, at Lender's option, may remoVt;1 Trustee and appoint a successor trustet1 by first, mailing a copy of the substitution oftrustee as required
<br />by applicable law, and then, by filing the substitution of trustee lor record in the office of the registt1r of deeds of ~aeh county in whi?h the trust pmperty, or s~me palt ,
<br />thereof, is situated. The successor trustee, without conveyance of the pl'Operty, shall succet1d to all the power, dultes, authonty and title of the TlUstee named 11l the decd of
<br />
<br />trust and of any successor trustee.
<br />
|