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<br />COVENANTS
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<br />200704040
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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 />BOlTower or for Bon'ower'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 ofthe 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 claims which would impair the lien of this deed of trust. Lender may require Borrower 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 insured under tenns 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 insurance policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either thc restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Bon-ower will keep the pmperty in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Borrower agrecs 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. Bon-ower 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 BOITower first obtains Lender's written contest, BOITower will not make or permit any changes to any prior security interests.
<br />Borrower will peIiorm all of Borrower's obligations under any prior mOltgage, deed of trust or other security agreement, including Borrower's covenants to l11llke payments
<br />when due.
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<br />7. Assignment of Rents and Profits. Bon-ower assigns to Lender the rents and profits of the pmperty. Unless Borrower and Lender have agreed otherwise in writing,
<br />Bon-ower 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 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 the secured debt as
<br />provided in Covenant I.
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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 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 perronn all of Bon-ower'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 Bon-ower fails to perlonn, any of Borrower's duties under this deed of trust, Lender may perrorm the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for perfonnance. 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 fai lure to perfonn 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 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 efleet on the secured debt.
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<br />10. Default and Acceleration. If 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 />trust or any prior mOltgage or deed of hust, 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 pennitted by applicable law.
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<br />I I. 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 each
<br />such person, as set forth herein.
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<br />U. Power of Sale. H'the Lender invoke:; tire power of $lIlo:, -the T rusteo: shall first record in the office of the register of deeds ofeachcountywherein the trust property or
<br />some part or parcel thereof is situated a notice of default containing the infonnation 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 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 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 property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the propelty 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, Tmstee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained 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 Tmstee's fees, reasonable attorney's fees and reinstatement fees; (b) to all sums secured by this deed of trust, and (c) the balance, if
<br />any, to thc pcrsons legally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed of trust 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 Bon-ower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the pwceeds of any award or claim for damages cOllilected with a condenmation or other taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assigmnent 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 docs not give up any rights to later use 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 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 hust are joint and several. Any Borrower who co-signs this
<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. In addition, such a Bon-ower 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 of this deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms of this deed 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 Borrower.
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<br />18. Notice. Unless otherwise required by law, any notice to Bon-ower shall be given by delivering it or by mailing it by certified mail addressed to Borrower at the
<br />property address or any other address that Borrower has given to Lender. BOITOwer 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, wbich 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 Bon-ower or Lender when given in the mamler stated above.
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<br />19. Transfer of the Property or a Beneficial Interest in the Borrower. If all or any part ofthe property or any interest in it is sold or transfened without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immediate payment if the Borrower is not II natural person and
<br />a beneficial interest in the Bon-ower is sold or transfen-ed. However, Lender may not demand payment in the above situations ifit is prohibited by federal law as of the date
<br />of this dced 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 l11llke advances under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property, The Lencter shall deliver to the Borrower, or to
<br />Bon'ower'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 by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution oftmstee for record in the office of the register of deeds of each county in which the trust pwperty, or some part
<br />thereot: is situated. The successor trustee, without conveyance of the property. shall succeed to all the power, duties, authority and title of the Trustee named in the deed of
<br />trust and of any successor trustee.
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