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<br />COVENANTS
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<br />200703893
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<br />t. Paymcnts. 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 Borrnwer owes on the secured debt exclusive of interest or ptineipal, second to interest, and then to
<br />principal. Ifpartial 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. 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 clallns which would impair the lien of this deed of trust. Lender may require Borrnwer to assign any rights, claims or defenses which Borrower may have against
<br />palties who supply lahor or materials to imprnve or maintain the propClty.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender al Borrower's expense and for I.ender's bencfit. All Insurance policies shall
<br />include a standard mottgage clause in favor of Lender. Lender will be named as loss payee or as the insured on any such insurance policy. Any insunmce proceeds may be
<br />applied, within Lender's discrelion, 10 either the restoration or repair of the damaged property or to the secured debt. If Lender requires mOltgage insurance, BOl1uwer
<br />agrees to maintain such insurance fur as long as Lender requires.
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<br />4. Property. BOl1uwer will keep the prnpelty in good condition and make all repairs reasonably necessalY.
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<br />5, Expenses. Borrower agrees to pay all I.ender'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. 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 first obtains Lender's writlen contest, Borrower will nol 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 agrcement, including Borrnwer's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Profits. Bonuwer assigns to Lender the rents and profits of the propelty. 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 receiver may take
<br />possession and manage lhe property and collcct the rents. Any rents Lender collects shall be applied first to the costs of managing the prnperty, including comt costs and
<br />attorncys' Ices, commissions to rental agents, and any other necessary related expenses. Tbe remaining amount of rents will then apply to payments on the secured deht as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planncd lJnit Developments. Bonuwer agrees to comply with the prnvisions 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 pertorm all of Borrnwer'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 Lendcr to Pcrform for Borrower. If Borrnwer fails to perform, any of 130rrower's duties under lhis deed of trust, Lender may perlorm the dutics or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if neeessary for performance. If any construction on the property is discontinued or not
<br />carried on in a rcasonable manner, Lender may do whatever is necessary to protect Lender's security interest in the propcrty. This may inelude 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 oftrust.
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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 effect 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 plior 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 permitted by applicable law.
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<br />11. Request for Notice of Default. It is hereby requested that copies ofthe notices of default and sale be sent to each person who is a party hereto, al the address of each
<br />such person, as set fiJrth 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 office of the register of deeds of each county wherein the trust property or
<br />some parlor parcelthercof is situated a notice of default containing the information required by law. The Trustee shall also mail copies of the notice of delault to the
<br />Borrower, to each person who is a party hereto, and to other persons as prescribed hy applicahle law. Not less than one month aller the T11Istee records the notice of de/ault,
<br />or two months if the t11lst property is not in any incorporated city or village and is used in farming operations carried on by the trustor, the T11Istee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on BorJlJwer, shall sell the pmperty at public auction to the highest bidder. 11'
<br />required by the Farm Homestead Protection Act, T11Istee shall offer the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of lhe property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the pmperty at any sale.
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<br />Upon receipt of payment of lhe price bid, Trustee shall deliver to the purchaser Trustee's deed convcying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of lhe t11lth of the statements containcd therein. 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 Truslee's fees, reasonable attorney's fees and reinstatement fees; (b) to all sums secured by this deed oftmst, !lI1d (e) Ule balance, if
<br />any, 10 the persons legally entitled to receive it.
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<br />13. Foreclosnre. At Lender's option, this deed of trust may be foreclosed in the manner plUvided 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 beforehand. The notice must state the reasonable cause lor Lender's
<br />inspection.
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<br />15. Condemnation. Bonower assigns to Lender the proceeds of any award or e1aim for damages connected with a condemnation or other taking of all or any part of the
<br />propelty. Such plUceeds will be applied as provided in Covenant I. This assignment is subject to the tenns of any plioI' security agreement.
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<br />16. Waiver. By exercising any remedy availahle 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 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 trust are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instruments(s) docs so only to grant and convey that BorlUwer's interest in the property to the Truslce under the terms
<br />of this deed of tlust. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of trust may extend, modify or make any other changes in
<br />the terms oftbis deed of trust or the secured debt without that Borrower's consent and without releasing that Horrower from the terms oftbis deed of trust.
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<br />The duties and benefits of this deed oftmst shall hind 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 BOl1'Ower shall be given by delivering it or by mailing it by celtified mail addressed to BOlluwer at the
<br />property address or any other address that Borrower has given to Lender. I3orrower will give any notice to Lender by certified mail to Lender's address 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 Lender'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 ofthc Property or a Beneficial Interest in the Borrower. If all or any part of the property.or any.interest in it ~s, sold or transt~rred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand llnmedt~te p~ym~~~ t~ the BOl~'ower IS not a natural pe,rson and
<br />a benefieial interest in the Borrower is sold or transfened. However, Lender may not demand payment mthe above SItuations If It IS prolublted hy federal law 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 advance~ under the instruments or
<br />agreements secured by this deed of t11lst, the T11Istee shall, upon written request by the Lender, reconvey the trust property. The Lender shall deliver 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 recordation costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee hy first, mailing a ?Opy of the substitution ol'trustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the otIice of the register of deeds of ~ach county m whl?h the trust propelty, or s~me palt
<br />thereof, is situated. The successor t11lstee, without conveyance of the property, shall succeed to all the power, duties, authollty and !ttle of the Trustee named 111 the deed of
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<br />trust and of any successor t11lstee.
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