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<br />COVENANTS
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<br />200702062
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<br />I. Payments. BOllTIWer 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 Horrower's benetlt 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 ofthe 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 taxes, assessments, and other charges attrihutable to the propClty 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 lights, claims or defenses which BorrowCl' may have against
<br />parties who supply labor or materials to improve or maintain the propClty.
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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 benel1l. 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. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fccs, 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, Horrower will not make or pcrmit aoy changes to any prior security interests.
<br />Borrowcr will perform all of Borrower's obligations under any prior mortgage, deed of trust or other sccurity agrccmcnt, including Borrower's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Pronts. BOlTOwer assigns to Lender the rents and profits of the property. Unless Borrower and Lender have agrecd 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 appointcd receivcr may take
<br />possession and manage the property and collect the rents. Any rents Lender collects shall be applicd first to thc costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expenses. 111e remaining amount of rents will thcn apply to payments on the secured deht as
<br />provided in Covcnant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease i I' 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 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 Borrowcr's duties under this deed of trust, Lender may pcrform the dutics or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if ncccssary for pcrformance. 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 constmction.
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<br />Lender's failure to perform will not precludc Lender from exercising any of its othcr rights under the law or this deed oftmst.
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<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed oftrust. Such amounts will be due on demand and will bcar intcrcst from the
<br />date of the payment until paid in full at the interest rate in etfect 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 obligation secured by this deed of
<br />trust or any prior mortgage or deed of flust, Lender may accelerate the maturity of the secured debt and demand iuuuediate 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 Defanlt. 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 addrcss of each
<br />such person, as set fOlth herein.
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<br />12. Power of Sale. If thc Lendcr invokes the power of sale, the Trustee shall (irst record in the office of the register of dceds of each county wherein the trust property or
<br />some part or parcclthcrcof is situated a notice of default containing the inf,mnation required hy law. The T1ustee shall also mail copies of Ihe nolice of dcfaullto thc
<br />BOll'ower, to each person who is a party hcreto, and to other persons as prescribed by applicable Jaw. 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 incorporated city or village and is used in fanuing openltions carned on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicablc law. Tmstee, without demand on Borrower, shall scll the pmperty at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the property in two separate sales as requircd 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 propctty at any sale.
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<br />Upon receipt of paymcnt of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's dced shall be
<br />prima facie evidience of the truth of the statements contained therein. Trustee shall apply the proceeds of thc 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 pcrsons legally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed oftrust may be foreclosed in the maimer provided hy 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 Lendcr gives Borrower notice beforehand. The notice must state thc rea~onable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lcnder the proceeds of any award or claim f'lr damages connccted with a condctnnation or other taking of all or any palt of the
<br />property. Such proceeds will be applied as provided in Covcnant 1. This assignment is suhject to the tenns of any prior security agreement.
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<br />16. Waiver. By exercising any remedy availahle to Lender, Lender does not give up any rights to later use any other rctnedy. By not exercising any remcdy 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-si~ners; Successors and Assigns Bound. All duties under this deed of trust are joint and seveml. Any Borrower who co-signs this
<br />deed of trust but docs not co-sign the undcrlying 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 deed of trust. In addition, such a Bormwer agrees that the Lender and any other Borrower under this deed of trust may extend, modity or make any other changes in
<br />the terms ofthis deed of trust or the secured debt without that Borrowcr's consent and without releasing that Borrower from the terms of this deed oftrus!.
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<br />The duties and henefits of this deed of trust shall bind and benefit the successors and assigns of Lender and Bonuwer.
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<br />18. Notice. Unless otherwise required by law, any notice to BOlTower shall be given by dcliveling it or by mailing it by certified mail addressed to BOlTOWCI' 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 addres~ on page, I of this
<br />deed oftrust, or to any other address, which Lender has designated. Any other notice to Lender shall he sent to Lender's address as stated on page I ofthls deed of trust.
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<br />Any notice shall be deemed to have been given to Borrower or Lender when given in the manner stated above.
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<br />19. Transfer ofthe Property or a Beneficial Interest in the Borrower. If all or any part of the property or any intcrest in it is sold or transferred without the Lender's
<br />prior written consent, Lender may demand iuuuediate paymcnt ofthe secured debt. Lender may also de~nand immedi~te p~ym~~~ i~the B?~ower is not a natural pC,rson and
<br />a beneficial interest in the Borrower is sold or transfcrred. However, Lender may not demand paymentm the above sltuaflons tf It IS prolllhlted by federal law as of the date
<br />of this dced of trust.
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<br />20. Reconveyance. When the obligation secured by this dced of trust has been paid, and Lender has no fLllther obligation to make advance~ under the instruments or
<br />agrcements secured by this deed of flust, the Trustee shall, upon written request by the Lender, reconvey the flust propelty. The Lender sh~ll dehver to the Bonuwer, or to
<br />Borrower's successor in intcrest, the trust dccd 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 Lcnder's option, may remove 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 offtustee for record in thc office ofthe register of deeds of ~ach county in whi?h the trust propelty, or s~me patt . .
<br />thereof, is situated. TIle successor trustee, without convcyance of the property, shall succeed to all the power, dufles, authonty and fltIe of the Trustee named mthe decd of
<br />trust and of any successor trustee.
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