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<br />COVENANTS
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<br />200704276
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<br />I. Payments. Bon'ower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree othclwisc, any payments Lender receives from
<br />Borrower or for Borrower's benefit will be applied first to any amounts Borrower owes on the secured dcbt cxclusivc of interest or principal, second to interest and thcn to
<br />principal. If partial prepayment of the sccurcd debt occurs for any reason, it will not reduce or excuse any scheduled payment until the securcd debt is paid in fuh.
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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 benefit. All Insurance policies shall
<br />include a standard mortgage clause in lavor 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 debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance fur as long as Lender requires.
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<br />4. Property. Bonower will keep the property in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Horrower agrees to pay all Lender's expenses, including reasonahle 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 oftrust.
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<br />6. Prior Security Interests. Unless Bonower first obtains Lender's written contest, Borrower will not make or permit any changcs to any prior security intcrests.
<br />Borrower will perform all of Borrower's obligations undcr any prior mortgage, deed of trust 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 "io 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 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 COll1t 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. 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 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. If Borrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to be performed. I.ender may sign Borrower's name or pay any amount if necessary for performance. If any constmetion on the property is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is neccssary to protect Lender's security interest in thc propcrty. This may include completing the constmction.
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<br />Lender's failure to perform will not preclude Lender from exercising any of its othcr rights under the law or this deed oftmst.
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<br />Any amounts paid by Lender to protect Lender's security interest will bc sccurcd by this deed of trust. Such amounts will be due on dcmand and will bear interest from the
<br />date ofthe paymcnt until paid in full at the interest rate in effect on the secured dcbt.
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<br />10. Default and Acceleration. If Bon'Ower 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 trust, Lender may accelerate the maturity of the secured deht and demand immediate payment and may invoke the power of sale and
<br />any other remedies penni(ted by applicable law.
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<br />11. Request for Notice of Default. It is hereby requcsted that copies of the notices of default and sale be sent to each person who is a patty hereto, at the address of each
<br />such person, as set forth hercin.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Tmstee shall first record in the office of the register of deeds of each county wherein the hust propelty or
<br />some pmt or parcel thereof is situated a notice of default containing the infonmltion required by law. The Trustee shall also mail copies of the notice of default to the
<br />Bonower, to each person who is a palty hercto, and to other persons as prescribed by applicable law. Not less than one month after the Tmstee records the notice of default,
<br />or two months if the hust pmperty is not in any incorporated city or village and is used inlanning 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. TlUstee, without demand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Pmtection Act, Tmstee shall offer the property in two separate sales as required by applicable law. Tmstee 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 paymcnt 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 facie evidience of the tmth 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 Trustee's fees, reasonable attorney's fees and reinstatement fees; (b) to all sums sccurcd by this deed oftrust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Foreclosure. At l.cnder's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mOlt gages on real property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lendcr gives Borrower 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 proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the tcnns 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 docs not waive any right to later consider tbe 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 this deed of trust arc joint and several. Any BOffilwer who co-signs this
<br />deed oftmst but does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrowcr's interest in the propelty to the Trustec under the terms
<br />of this deed of trust. In addition, such a Bonower 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 tenus of this deed of trust.
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<br />The duties and benefits of this deed of tmst shall bind and benefit the successors and assigns of Lender and Bonower.
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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 addressed to Borrower at the
<br />property address or any other address that Borrower has given to Lcnder. 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 other notice to Lender shall be sent to l.ender's address as stated on page I of this deed oftrust.
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<br />Any notice shall be deemed to have been givcn 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 propcrty or any interest in it is sold or transferred without the Lemler's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immediate payment if tbe Borrowcr is not a natural person and
<br />a bencficial interest in the Borrower is sold or transfened. Ilowever, Lender may not demand payment in the above situations if it is prohibited by federal law as of the date
<br />of this deed oftmst.
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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 />agreemcnts secured by this decd of tmst, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender sh~1I delIver to the Bonower, 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. l.ender, at Lender's option, may remove Trustee and appoint a successor tlUstee by first, mailing a copy ofthe substitution of trustee as required
<br />by applicable law, and then, by filing the substitution oftmstee for record in the otlice oftbe register of deeds of ~ach county in whi~h the tmst property, or s~me pmi
<br />thereof, is situated. The successor hustee, without conveyance of the propelty, shall succeed to all the power, dutIes, authonty and tItle oftlle Trustee named 111 the deed of
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<br />trust and of any successor tmstee.
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