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<br />COVENANTS
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<br />200702582
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<br />I. Payments. Borrower agrees to make all payments on the secured debt when due. Unless BOlTOwer and Lender agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will be applicd nrst to any amounts Borrower owes on the secured debt exclusive of interest or Plincipal, second to interest, and then to
<br />principal. If pattial 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 lull.
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<br />2. Claims A~ainst Title. Borrower will pay all taxes, asscssments, and othcr charges attributable to the propclty whcn duc and will dcfcnd titlc to the propcrty against
<br />any claims which would impair thc lien of this deed of trust. Lender may require Borrower to assign any rights, claims or defenses which Borrower may have against
<br />palties who supply labor or materials to improve or maintain the property.
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<br />3. Insurance. Borrowcr will kecp the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benent. 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 insnranee 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, Bon-ower
<br />agrees to maintain such insurance for as long as Lendcr 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. Expenscs. Borrower agrees to pay all Lcnder'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. Bon-ower will pay these amounts to Lender as provided in Covenant 9 of this dced of trust.
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<br />6. Prior Security Interests. Unless Borrower nrst 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.
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<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rents and profits of the property. Unless BOlTOwer 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 propelty, including COlllt costs and
<br />attorneys' tees, commissions to rental agents, and any other necessary related expenses. TIle 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. 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 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, I ,en del' may perform the duties 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 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 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 oftmst.
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<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed of trust. Such amounts will be due on demand and will bear interest from the
<br />date of the payment until paid in full at the interest rate in eHeet on the secured debt.
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<br />10. Default and Acceleration. If Bonuwer 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 />tmst or any prior mortgage or deed of trust, 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 pcnnitted by applicable law.
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<br />n. Request for Notice of Default. It is hereby requested that copies of the notices of default and sale be sent to each pcrson who is a patty hereto, at the address of each
<br />such person, as set fOlth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Tmstee shall first record in the office of the register of deeds of each county wherein the ttust property or
<br />some part or parcel thereof is situated a notice of dcfault containing the infonnation required by law. The Tlustee shall also mail copies of the notice of default to the
<br />BOlmwer, to each person who is a party hereto, and to other persons as prescribed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the tmst propelty is not in any incorpomted city or village and is used in fanning operations canied on by thc t11lstor, the Tmstee shall gi ve public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without dcmand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Fanll Homestead Protection Act, Trustee shall offer the pmpelty in two sepamte sales as required by applicable law. Trustce may postpone sale of all or any
<br />parcel ofthe 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 purchascr Trustee's deed conveying the property. The recilials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained therein. Tmstee shall apply the proceeds of the sale in thelollowing order: (a) to all expenses of the sale,
<br />including, but not limited to, reasonable Trustee's fees, reasonable attorney's fees and reinstatement tees; (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 Lendcr's option, this deed oftrust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Horrower notice betorehand. The notice must state the reasonable cause for 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 other taking of all or any part of thc
<br />property. Such proceeds will be applied as provided in Covenant 1. 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, 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 dced of trust are joint and several. Any Borrower who co-signs this
<br />dced oftmst but does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the prope~ to the Trustee under the ter~s
<br />ofthis deed of trust. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed oftmst may extend, modify or make any other changes III
<br />the terms of this deed oftrust or the secured debt without that Horrower's consent and without releasing that Borrower from the terms ofthis deed of trust.
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<br />TIle duties and benefits ofthis deed oftmst shall 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 certi!ied mail addressed to BOl1'Ower a! the
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mati to Lender's addres~ on page 1 ot tillS
<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 of thIS deed oftrust.
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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 Beneficial Interest in the Borrower. If all or any part of the property or any.interest in it ~s sold or transf~rred without the Lender's
<br />pI;or written consent, Lender may demand immediate payment orthe secured debt. Lender may also de~nand llllmedl?te paym~n~ I~the B~)~'()wer IS not a natural pe,rson and
<br />a beneficial interest in the Bon-ower is sold or transferred. However, Lendcr may not demand payment 10 the above SituatIOns If It IS prolllblted by fedemllaw as of the date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advances under the instmments or
<br />agreements secured by this decd of tmst, the T11Istee shall, upon written request by the Lender, reconvey the tmst property. The Lender sh~1I dehver to the Borrower, 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 recordatton costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a ~opy ~fthe substitution ortmstee as required
<br />by applicable law, and then, by filing the substitution of trustee fix record in the office of the register of deeds of ~ach eount~ III whl~h th~ tlUSt propelty, or s~me part
<br />thereof, is situated. The successor tmstee, without conveyance ofthe property, shall succeed to all the power, duttes, authonty and tttle of the Trustee named 111 the deed of
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<br />trust and of any successor tmstee.
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