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<br />COVENANTS
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<br />200702528
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<br />l. Payments. Borrower 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 Horrowcr's bcnefit will be applied l1rstto any amounts Borrower owes on the secured debt exclusive of interest or principal, second to interest, and then to
<br />plincipal. If partial prepayment of thc secured debt occnrs for any reason, it will not reduce or excuse any scheduled paYlnent until the secured dcbt is paid in full.
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<br />2. Claims Against Title. Bonuwer will pay all taxes, assessments, and other chargcs attribntable to the property when due and will defend title to the propelty against
<br />any claims which would impair the lien of tlus deed of trust. Lender may requirc Borrower to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply labor or materials to improve or maintain the propcrty.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lcndcr at Borrower's expcnse 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 />applicd, within Lender's discretion, to either the restoration or repair of the damaged propclty or to the secured debt. If Lender requires mOltgage 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 propClty in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Borrower agrees to pay aU 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 dccd of trust. BOl1uwer 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 flrst obtains Lender's written contest, Borrower will not make or pennit 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 Uorrower's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Profits. Borruwer assigns to Lender the rents and profits of the property. Unless Borruwer 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 I1rst 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. Borruwer agrees to comply with the provisions of any lease if this deed oftlUst is on leaschold. 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 plalmed 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 perfol1n the duties or
<br />causc them to be pcrfonned. I.cnder may sign Borrowcr's name or pay any amount if necessary tor performance. If any constlUction on the property is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is nccessary 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 of its other rights under the law or this deed of hust
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<br />Any amounts paid by Lcnder to protect Lender's security interest will be secured by this deed of trust. Such amounts will be due on demand and will bcar interest from thc
<br />date ofthe payment until paid in full at the interest rate in efIect 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 mOltgage or deed of trust, Lender may accelerate the maturity of the secured debt and demand immediatc paymcnt and may invoke the power of sale and
<br />any other remedies pennitted by applicable law.
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<br />11. Request for Notice of Default. It is hereby requested that copies of the noticcs of default and sale be sent to each person who is a party hereto, at the address of cach
<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 ol11ee of the register of deeds of each county wherein the trust property or
<br />some part or parcel thereof is situated a notiec of default containing the information required by law; The Trustee shall also mail copies of the notice of dcfault to the
<br />Borrower, to each person who is a palty hereto, and to other persons as prescribed by applicable law. Not less than one month aileI' the Trustce rccords the notice of default,
<br />or two months if the hust property is not in any incorporated city or villagc and is used in farming operations callied on by the tlUstor, the Trustee shall give public notice of
<br />sale to the persons and in thc manncr prescribed by applicable law. Trustec, without demand on Borruwer, shall sell thc propclty at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the property in two sepamte sales as requircd by applicable law. Trustee may postponc salc of all or any
<br />parcel of the property by public announcelllCllt 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 />prima facie evidience of the truth of the statClnents contained therein. Trustec 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 fecs, reasonable attorney's fees and reinstatement fees; (b) to all sums sccurcd by this deed of trust, and (c) the balance, 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 provided by applicable law for foreclosure ofmortgagcs on real property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand. The noticc must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borruwer 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 pmvided in Covenant I. This assignment is subject to the tenns of any prior security agrcement.
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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 excrcising any remedy upon
<br />Borrower's default, Lender does not waivc 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 tlUSt are joint and scveral. Any Borrower who co-signs this
<br />deed of trust hut does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's intercst in the property to the Trustee under the terms
<br />of this deed of trust. In addition, such a Borruwer agrecs that the Lender and any other Borrower under tlus deed of trust may extend, modify or make any other changes in
<br />thc tcrms ofthis deed oftrust or the secured debt without that Borrower's consent and without relea~ing that Borrower from the terms orthis deed of trust.
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<br />The duties and bencfits oftlus deed of trust shall bind and henefit the successors and assigns of /_ender and Bonuwer.
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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 ccrtified mail addressed to Borrower at t~e
<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 add~es~ on page I of thiS
<br />deed oftrust, or to any other address, which Lender has designated. Any other noticc to Lender shall be sent to Lender's address as stated 011 page I of thIS deed oftrust.
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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 />/9. Transfer of the Property or a Beneficia/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 />plior wlitten consent, Lemler may dcmand immediatc payment of the secured debt. Lender may also de~nand immediate p~ym~n~ i~' the B?r:ower is not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment III the above SituatIons If It IS prohlbltcd by federal law as of the date
<br />ofthis deed oftrust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no further ohligation to makc advances under the instmments or
<br />agreements securcd by this deed of tmst, the Trustee shall, upon writtcn request by the Lcnder, reconvey the tlUst property. The Lendcr sh~1I deliver to the Bom)wer, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obligation so satislied. Borrower shall pay any rccordatlOn costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor tlUstee by first, mailing a copy of the suhstitution oftlUstee as required
<br />by applicahle law, and then, hy filing the substitution oftrustee for record in the office of the register of deeds of ~ach count~ in which the tlUSt proPCtty, or s~mc part
<br />thereof, is situated. The succcssor trustee, without conveyance of the propcrty, shall succeed to all the power, dutlCs, authonty and title of the Tmstee named 111 the deed of
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<br />trust and of any successor trustee.
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