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<br />COVENANTS
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<br />200703891
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<br />1. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwisc, any payments Lcnder receives from
<br />Borrower or for Borrowcr's bcncl1t will be applied nrst 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 debt occurs for any reason. it will not reduce or excuse any scheduled payment until the secured debt is paid in tull.
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<br />2. Claims Against 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 tins deed of tmst. Lender may require Bon'Ower to assign any rights, claims or defenses which Borrower 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 insurcd under terms acceptable to Lender at Borrower's expcnsc and for l.cndcr's bene tit. 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 insurdnce proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged propelty or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance tiH as long as Lender requires.
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<br />4. Property. BOIl'Ower will keep the property in good condition and make all repairs reasonably necessalY.
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<br />5. Expenses. Borrowcr agrccs to pay all l.cnder's expenses, including reasonable attorneys' fees, if Borrowcr brcaks any covenants in this deed of trust or in any
<br />obligation secured by this deed oftmst. Borrower will pay these amounts to Lender as providcd in Covenant 9 of this deed oftmst.
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<br />6. Prior Security I.nterests. Unless Borrowcr first obtains Lendcr's writtcn contest, Borrower will not make or permit any changes to any prior security intercsts.
<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 propetty. Unless Borrower and Lender have agrccd othcrwisc 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 managc the propcrty and collect thc rcnts. Any rents Lender collects shall be applied l1rst 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 ofrents 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 perlorm all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominium or planned unit dcvclopment.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perlorm, any of Borrower's duties under this deed of trust, I ,en del' may pertorm the dutics or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any constmction on the property is discontinued or not
<br />carried on in a reasonable manner, I.ender may do whatever is necessary to protect I ,ender'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 otller rights under the law or this deed of lrust.
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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 trom the
<br />date of the payment until paid in full at the interest rate in efrect on the secured debt.
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<br />10. Default and Acceleration. ]f BOlTower 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 />tlust or any plioI' mortgage or deed of trust, Lender may accclerate 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 />II. Request for Notice of Default. It is hereby requested that copies ofthe notices of detault and sale be sent to each person who is a patty hereto, at the address of each
<br />such person, as set furth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shall tirst record in the office of the register of deeds of each county wherein the trust property or
<br />some part or parcel thereof is situated a notice of delilUlt containing the intormation required by law. lhe Trustee shall also mail copies of the notice of detault to the
<br />Borrower, to each person who is a patty hereto, and to other persons as prescribed by applicable law. Not less than one month atler the Trustee records the notice of default,
<br />or two months ifthe tmst propeliy is not in any ineOlporated city or village and is used in tanning operations eanied on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the pl'Opetty at public auction to the highest bidder. If
<br />required by the Fann Homestead Pl'Oteetion Act, Trustee shall olrer 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 mmouncement at the time and place of any previously scheduled sale. Lender or its designee may purchase the pl'Operty 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 tacie evidience of the truth of the statements contained tllerein. Trustee 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 fees, reasonable attorney's fees and reinstatement fees; (b) to all sums secured by this deed oftrust, and (c) the balance, if
<br />any, to tile persons legally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed oftrust may be loreclosed in the manner pl'Ovided by applicable law for foreclosure of mortgages on real pl'Operty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice bclorehand. The notice must state the reasonable cause lor Lender's
<br />inspection.
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<br />15. Condemnation. Bonuwer assigns to Lender the pt'Oceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />property. Such pl'Oeeeds will be applied as provided in Covenant I. TIns 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; Snccessors and Assigns Bonnd. All duties under this deed of trust are joint and several. Any Borrower who co-signs tins
<br />deed of trust but docs 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 under the terms
<br />of this deed of trust. ]n addition, such a Borrower agrees that the Lender and any other Bort'Ower under this deed of trust may extend, modity or make any other changes in
<br />the terms of this deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms ofthis deed oftrust.
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<br />The duties and bcnc1ils of litis deed oftlust shall bind and benefit the successors and assigns of Lender and BOIl'Ower.
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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 eCltified mail addressed to Borrower at the
<br />propelty address or any other address thal Borrower has given to Lender. Borrower will give any notice to Lender by certil1ed mail to Lender's add~es~ 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 [.ender's address as stated on page 1 01 tillS deed oftrust.
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<br />Any notice shall be deemed to have been given to BOlTower or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a Bencllclallnterest 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 consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand immedi~te p.aym~n~ i~the B?r~ower is not a natural person and
<br />a beneficial interest in the Borrower is sold or transfen'ed. However, Lender may not demand paymcot m the above slluatlons If It tS prolnbtted by federal law as ofthe dale
<br />of this deed oftms!.
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<br />20. Reconveyance. When the obligation secured by this deed of tmst has been paid, and Lender has no turther obligation to make advance~ under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon wtitten request by the Lender, reconvey the trust pl'Opelty. The Lender sh~1l 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 satislied. 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 l1t'5t, mailing a copy ofthe substitution oftJustee as required
<br />by applicable law, and then, by tiling the substitution of tl1lstee tllr record in the office ofthe register of deeds of each county in whi~h the trust property, or s~me part
<br />thereof, is situated. The successor trustee, without cOllveyance of the property, shall succeed to all the power, dutIes, authonty and title of the Trustee named m the deed of
<br />trust and of any successor trustee.
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