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<br />COVENANTS
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<br />200704206
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<br />l. Payments. Borrow~r 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 lor Borrower's benefit will be applied Ilrst to any amounts Borrower owes on the sccured debt exclusive of interest or principal, second to interest, and then to
<br />principal. If paltial prepayment of the secured debt occurs for any reason, it will not reduce or excuse any scheduled payment until the seeurcd 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 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 terms acceptable to Lender at Borrower's expense and for Lender's b~nefit All Insurance policies shall
<br />include a standard mmtgage 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 property or to the secured dcbt. If Lender requires mOltgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lender rcquires.
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<br />4. Property. Borrower 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 expcnses, including rcasonable 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 ohtains Lcnder'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 of trust or other security agreement, including Borrower's covenants to make payments
<br />whcn due.
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<br />7. 'As'slgnmenfoTRents 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 rctain the rents as long as Borrower is not in default. If Borrow~r defaults, Lender, l.ender's agent, or a court appointed receiver may take
<br />possession and mmmge the property and collect the rents. Any rents l.ender collects shall be applied first to the costs of managing the propelty, 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 1.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Bonuwer agrees to comply with the provisions of any lcasc 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 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 Lender to Perform for Borrower. II' Borrower fails to perform, any of Borrower's duties under this deed of trust, I ,en del' may perform the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount il'necessary for performance. If any conshuction on the property is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is neeessmy to protect Lender'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 other rights under the law or this deed oftl1lst.
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<br />Any amounts paid by Lender to protect l.ender'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 t1lils to make any payment when due or breaks any covenants under this deed of tl1lst or any obligation secured by this deed of
<br />!lust or any plioI' mOltgage or deed of !lust, Lender may aeeelerdte the maturity of the secured debt and demand immcdiate payment and may invoke 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 detimlt 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 />12. Power of Sale. lI'the Lender invokes the power of sale, the Trustee shall f1rst record in the olTice of the register of deeds of each county wherein the trust propelty or
<br />some palt or pareel thereof is situated a notice of default containing the inlollnation required by law. The Trustee shall also mail copies of the notice of default to the
<br />BOl1'ow~r, 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 !lust propelty is not in any inC01]JOrated city or village and is used in farming opemtions carried on by the tl1lstor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on BOl1'ower, shall sell the propClty at public auction to the highest bidder. If
<br />required by the Fanll Homestead Protection Act, Trustee shall offer the propelty 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. Lendcr or its designee may purehase the property at any sale.
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<br />Upon receipt of payment of the price bid, rrust~e shall deliver to the purchaser Trustee's deed conveying the property, The reeitials contained in Trustee's deed shall be
<br />Plima facie evidienee of the tmth of the statements contained therein. Trustee shall apply th~ proceeds of the sale in the following order: (a) to all expenses of the sale,
<br />including, but not limited to, reasonabl~ Trustee's fees, reasonable attorney's fees and reinstatement fees; (b) to all SUIllS secured by this deed oftmst, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Foreelosure. At Lcnder's option, this deed of trust may be foreclosed in the manner provided by applicable law fur foreclosure of mOltgages on real propelty.
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<br />14. Inspection. Lender may enkr the property to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause for L~nder's
<br />inspection.
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<br />15. Condemnatlon. BOll'ower assigns to l.ender the proeecds of any award or claim for damages connected with a condemnation or other taking of all or any palt of the
<br />property. Such pruceeds will be applied as provided in Covenant 1. Tllis assignment is subject to the terms of any Plior 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, L,ender 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; Successors and Assigus Bound. All duties under this deed of tmst are joint and severaL Any Borrower who co-signs this
<br />deed oftmst but does not co-sign the underlying debt instruments(s) docs so only to grant and convey that Borrower's interest in the property to the Trustee under the terms
<br />of this deed oftl1lst. In addition, such a BOl1'ower agrees that the Lender and any other BOll'ower under this deed of trust may cxtend, 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 Lendcr and Bon'llwer,
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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 certified mail addrcssed 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 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 othcr notice to Lender shall be sent to Lender's address as stated on page I 01 thIS deed oflrust.
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<br />Any notice shall be deemed to have been given to Borrower or Lender when given in the manner statcd above.
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<br />19. Transfer of the Property or a Benefielal Interest in the Borrower. If all or any part of the property or any interest in it is sold or transferred without the L~nder's
<br />prior Wlillen consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand immedi~lte p~ym~~~ i~the B~":ower is not a natural person and
<br />a bcnefieial interest in the Borrower is sold or transferr~d. However, l.ender may not demand payment III the above SItuatIons Jlllls pt'OllIblted by 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 bust has been paid, and Lender has no further obligation to make advances undcr the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the tmst propClty. The Lender sh~lI 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 tl1lstee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and thcn, by filing the substitution of !lusteo for record in the omee of the register of deeds of caeh eount~ in whi~h th~ trust property, or some part
<br />thereof, is situated. The successor trustee, without conveyance of the propelty, shall succeed to all the power, duties, authonty and title of the Tl1Istee named III the deed of
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<br />tlUSt and of any successor trustee.
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