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<br />COVENANTS
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<br />200702862
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<br />1. 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 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. II' partial 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 full.
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<br />2. Claims Against Title. Bon'ower will pay all taxes, assessments, and other charges attributable to the prope1ty when due and will defend title to the propelty against
<br />any claims which would impair the lien of this deed 01' tlUSt. Lender may require Bonuwer to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply labor or materials to improve or maintain the propelty.
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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 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 />applied, within Lender's discretion, to either the restoration or repair of the damaged pmpelty or to the secured debt If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lender requircs.
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<br />4. Property. BOllUwer will keep the property in good condition and Inake all repairs reasonably necessary.
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<br />5. Expcnses. 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. Bonower will pay these amounts to Lender as provided in Covenant 9 of this deed oftrust.
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<br />6. Prior Security Interests. Unless Bonower 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 oftrust 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. BOllUwer assigns to Lender the rents and profits of the property. Unless BOllUwer 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 court costs and
<br />attorneys' fees, commissions to rental agcnts, and any othcr necessary rclated 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. Borrower agrees to comply with the provisions of any lease if this deed of trust is on leasehold. If this
<br />deed oftrust 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 L.ender to Perform for Borrower. If Borrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perlorm the duties or
<br />cause them to be performed. I ,ender may sign Borrower's name or pay any amount if necessary for performance. If any construction on the pmpelty 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 thc eonstnlCtion.
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<br />Lender's failure to pcrform will not preclude Lender from exercising any of its other rights under the law or this deed oftrust.
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<br />Any amounts paid by Lender to protect Lender's sccurity interest will bc 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 effect on the secured debt
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<br />10. Default and Acceleration. If Bonuwer fails to make any paymcnt 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 trust. Lender !nay accelerate the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies pennitted by applicable law.
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<br />] 1. 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 thc address of each
<br />such person, as set forth herein.
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<br />12. Power of Sale. If the Lcnder invokes the power of sale, the Trustee shalllirst record in the office of the register of deeds of each county wherein thc trust pmperty or
<br />some part or parcel thereof is situated a notice of default containing the inlonnation required by law. The Trustee shall also mail copies of the notice of default to the
<br />BOllUwer, 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 trust property is not in any incorporated city or village and is used in fanning operations carried on by the tmstor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Bonower, shall scll the pmpetty at public auction to the highcst bidder. If
<br />required by the Fann Homestead Protection Act, Tmstee shall oiler 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 property at any sale.
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<br />Upon rcceipt of payment of the price bid, Trustee shall dclivcr to the purchaser Trustee's deed convcying the property. The recitials contained in Trustee's deed shall bc
<br />prima facie evidience of the truth of the statements contained therein. Trustee shall apply the pmceeds of the sale in thc following order: (a) to all expcnses of the sale,
<br />including, but not limited to, reasonable Trustcc's fccs, reasonable attorney's lees and reinstatement fees; (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 />]3. Foreelosure. At Lender's option, this deed oftrust may be foreclosed in the manner provided by applicable law for foreclosure of mOlt gages on real property.
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<br />]4. Inspcetlon. Lender may enter the property to inspect it if Lender givcs Borrower notice beforehand. The notice must state the reasonable cause lor Lender's
<br />inspection.
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<br />15. Condemnation. BOllower assigns to Lender the proceeds of any award or claim fur damages connected with a condemnation or other taking of all or any part of the
<br />propelty. 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, Lendcr does not give up any rights to later use any other remedy. By not exercising any re1nedy upon
<br />Borrower's default, Lender does not waive any right to later consider the event a default ifit happens again.
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<br />17. JoInt and Several Liability; Co-signers; Successors and Assigns Bound. All duties under this deed of tmst are joint and several. Any Borrower who co-signs this
<br />deed of trust but docs not co-sign the undcrlying debt instrumcnts(s) does so only to grant and convey that Borrower's intercst in the property to thc Trustee under the tcrms
<br />of this deed oftmst. hI addition, such a Borrower agrees that the Lender and any other Borrower under this deed of trust may extend, lnodify or make any other changes in
<br />the tenns of this deed oftrust or the sccured debt without that Borrower's conscnt and without releasing that 13orrower from the terms oftbis dced of trust.
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<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of Lender and Bonuwer.
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<br />18. Noticc. Unless otherwise required by law, any noticc to Bonuwer shall be given by delivering it or by mailing it by certi~ed mail addressed to Bonuwer at tl~e
<br />propelty address or any other address that Borrower has givcn to Lender. Borrower will give any notice to Lender by certified mall to Lender's add~ess on page I of thts
<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 oj thiS dced oftrust.
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<br />Any notice shall be deemed to have been given to Bon'ower or Lender when given in the mmmer stated above.
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<br />19. Transfer of the Property or a Beneficlallnterest in the Borrower. If all or any part of thc property or any interest in it is sold or transfcrred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand immedi~te p~ym~n~ i~the B~)~wer is not a natural pe,rson and
<br />a beneficial interest in the Bonuwer is sold or transferred. Howcver, Lender may not demand payment III the above sltuatlOns If It IS prohibited by federal law as of the date
<br />ofthis deed oftmst.
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<br />20. Reconveyance. Whe11 the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advances under the instruments or
<br />agreements secured by this deed oftrust, the Trustee shall, upon written request by the Lender, reconvey the tlust propmty. The Lender sh~lI deltver to the Bonowcr, or to
<br />Borrower's successor in interest, thc trust deed and the note or othcr evidence of the obligation so satisfied. Borrower shall pay any recordatIOn costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor tmstee by first, mailing a copy ofthe substitution oftmstee as required
<br />by applicable law, and then, by liling the substitution of trustee for record in the office of the register of deeds of ~ach count~ in whi?h th~ tmst pmpcrty, or sl~me palt
<br />thereof, is situated. The successor tmstee, without conveyance of the propelty, shall succeed to all the power, dultes, authonty and title of the Tmstee named III the deed of
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<br />trust and of any successor tmstee.
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