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<br />COVENANTS
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<br />200703180
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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. If partial prepayment of the secured deht 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 A~ainst Title. Borrower will pay all taxes, assessments, and other charges attributable 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 trust. Lender may require Borrower to assign any rights, claims or defenses which Bom)wer may have against
<br />parties who supply labor or materials to improve or maintain the property.
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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 mOltgage clause in favor of Lender. Lender will be named as loss payee or as the insured on any such insuJance policy. Any insurance proceeds may be
<br />applied, within I.ender'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 insumnce for as long as Lender requires.
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<br />4. Property. BorrowCl' 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' 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 of this deed of trust.
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<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 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. Borrower assigns to Lender the rents and profits of the property. Unless Borrower 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 rcccivcr may take
<br />possession and manage the property and collect the rents. Any rents Lender collects shall be applied 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. The remaining amount of rents will then apply to payments on thc sccured dcbt as
<br />provided in Covenant 1.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Bon'Ower agrees to comply with the provisions of any lease if this deed oftrust is on leasehold. If this
<br />deed of trust is on a unit in a condominium or a planncd unit development, Borrower will perform all of Borrower's duties under the covenants, by laws, or rcgulations 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 perIorm, any of Borrower's dutics under this deed of trust, Lender 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 thc 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 trust.
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<br />Any amounts paid by Lcnder to protect Lender's security interest will be securcd by this dced 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 ellect on the secured debt.
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<br />10. Dcfault and Accclcration. If Borrower fails to make any payment when duc 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, Lcnder may accelerate the maturity of the secured debt and demand immediate payment and may invokc 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 notices 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 oflice of the register of deeds of each county whercin the !lust property or
<br />some part or parcel thereof is situated a notice of default containing the information 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 party hereto, and to other persons as prescribed by applicable law. Not less than onc month after the Trustee records thc notice of default,
<br />or two months if the trust pmpelty is not in any incorporated city or village and is used in fiml)ing opcrations carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustec, without demand on Borrowcr, shall sell the property at public auction to the highest biddcr. If
<br />required by the Fann Homestead Protection Act, Trustcc shall offer the property in two separate sales as required by applicable law. Tlustee 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 receipt of paymcnt of the price bid, Trustce shall deliver to the purchascr Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidicnce of the truth of the statcments contained therein. Trustee shall apply the procccds of the sale in the following order: (a) to all expenses of the sale,
<br />including, but not limited to, reasonable Trustee's fees, reasonable attorncy's fees 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 />13. Foreclosure. At Lender'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 entcr the property to inspect it if Lender gives Borrower notice beIorehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrowcr assigns to Lender thc pmceeds of any a ward or claim for damages connected with a condemnation or other taking of all or any palt of the
<br />p11.lperty. Such pmeeeds will be applied as provided in Covenant I. TIns assignmcnt is subject to the telms of any prior secutity agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender docs not give up any rights to later usc any other remedy. By not exercising any remedy upon
<br />Borrower's default, Lender docs 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 tIns deed of trust are joint and scveral. Any BOITOwer who co-signs tIns
<br />deed of trust but does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the property to the Trustee undcr the terms
<br />of this deed of trust. In addition, such a Borrower agrees that tIle Lender and any other Borrower under this deed of trust may extend, l110dify or make any other changes in
<br />the terms of this decd ohrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms ofthis dced of trust.
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<br />The duties and bcnefits of this decd of trust shall bind and benefit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless otherwise rcquired by law, any notice to Bon'Ower shall be given by delivering it or by mailing it by certificd mail addresscd to Borrower at the
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certined mail to Lender's addres~ 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 Lendcr's address as stated on page I of this 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 of the Property or a Beneficial 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 />prior written eonscnt, Lender may demand immediate payment of the secured debt. Lender may also de~nand immedi~te p~ym~n~ i!' the Bor:ower is not a natural pe.rson and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not dClnand payment III the above SituatIOns If It IS prohIbIted by federal law as 01 the date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by this deed of !lust has been paid, and Lender has no further obligation to make advances undcr the instruments or
<br />agreements secured by this deed oftrust, the Trustee shall, upon writtcn request by thc Lender, reconvey the trust property. The Lender sh~1I dehver to the Borrower, or to
<br />Borrower's sueccssor in interest, the trust decd and the note or other evidence ofthe 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 trustee by f1rst, mailing a copy of the substitution of trustee as rcquired
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register of deeds of each count~ in whi~h the trust property, or s~me part .
<br />thcreof, is situated. The successor trustee, without convcyance of the pl'Operty, shall succeed to all the powcr, duttes, authonty and title of the Trustee named III the dced of
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<br />trust and of any successor trustee.
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