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<br />COVENANTS
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<br />200704328
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<br />1. Payments. Bonuwcr agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives fmm
<br />Borrower or for Borrowcr's bcnel1t will be applied Ilrstto any amounts Borrower owes on the sccured dcbt cxclusive of interest or principal, second to interest, and then to
<br />principal. If partial prepayment of thc sccured dcbt occurs Illr 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, asscssmcnts, and othcr charges allributable to the property when due and will dcfcnd titlc to thc pmpclty against
<br />any claims which would impair the Iicn of this dccd of hust Lendcr may require Borrower to assign any rights, claims or defenses which Borrower lIlay havc against
<br />palties who supply lahor or materials to impmve or maintain the property.
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<br />3. Insurancc. Borrowcr will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benellt All Insurance policies shall
<br />include a standard mOltgage clause in favor of Lendcr. Lcndcr will hc namcd as loss payee or as the insured on any such insurancc policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to eithcr thc rcstoration or repair of the damaged property or to the secured dcbt If Lender requires mortgage insurance, BOlluwer
<br />agrecs to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will keep the propelty in good condition and make all repairs rcasonably neccssary.
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<br />5. Expenses. Borrower agrees to pay all Lender's cxpenses, including reasonablc attorneys' fees, if Borrowcr brcaks any covenants in this deed of trust or in any
<br />obligation secured by this deed ofhust. Borrower will pay these amounts to Lender as pmvidcd in Covenant 9 of this deed oftlUst
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<br />6. Prior Security Interests. LJnless Borrower first obtains Lcnder's writtcn contcst, Borrowcr will not makc or pcrmit any changes to any prior security interests.
<br />Borrower will pcrform all of Borrower's obligations under any prior mortgage, deed of trust or other secudty agreement, including Borrower's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Profits. BOlluwer assigns to 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 delimIt. If Borrower defaults, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and manage thc pmperty and collect the rents. Any rents Lcnder collects shall be applied Iirst to the costs of managing the pmperty, 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 paymcnts on the secured dcbt as
<br />pmvided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Bonuwer agrees to comply with the pnwisions of any lease if this deed of trust is on leasehold. If this
<br />decd 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 devclopment
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<br />9. Authority of Lendcr to Pcrform 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. Lender may sign Bormwer's name or pay any amount if necessary Ibr perlbrmance. If any construction on the property is discontinued or not
<br />carried on in a reasonablc 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 failure to perlbrm will not preclude Lender from exercising any of its other rights under the law or this dced of trust.
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<br />Any amounts paid hy Lender to protect Lender's security interest will be secured by this deed oftrust. Such amounts will be duc on dcmand and will bcar interest from thc
<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 Accelcration. If Bonuwer 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 tlUSt, Lender may accelerate the matut;ty of the secured dcbt and demand inunediate payment and may invoke the power of sale and
<br />any other remcdics 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 default and sale be sent to eaclt person who is a palty hereto, at the address of each
<br />such person, as set lbrth hercin.
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<br />12. Power of Sale. Ifthe Lender invokes the power of sale, the TlUstee shall first record in the otllce of the register of deeds of each county wherein the trust property or
<br />some part or parcel thereof is situated a notice of default containing the infbrrnation required by law. The TlUstee shall also nlail copies of the notice of dctaull 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 TlUstee records the notice of default,
<br />or two months if the trust property is not in any incorpordted city or village and is used in lanning operations carried on by the trustor, thc Tl1Istee shall give public notice of
<br />sale to the persons and in the manner prescribcd by applicable law. TlUstee, without demand on BOITOwer, 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 separdte sales as required by applicable law. Tl1Istee may postpone sale of all or any
<br />parcel of the property by public atU10uncement at thc timc and place of any previously scheduled sale. Lender or its designee may purchase the propelty at any sale.
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<br />Upon receipt of payment of thc pricc bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustcc's deed shall be
<br />prima f.'1cie evidience of the tlUth of the statements contained therein. TlUstee shall apply the proceeds of thc sale in the following onler: (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 dced oftrust, and (c) the balance, if
<br />any, to the persons Icgally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed oftnlst may be foreclosed in the manner provided by applicable law for lbreclosure of mortgages on real propelty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforchand. The notice must state the reasonable causc for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lendcr the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any palt of the
<br />property. Such proceeds will be applied as provided in Covenant I. TIllS assignmcnt is subject to the tellns of any prior security agreement.
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<br />16. Waiver. By exercising any remedy availablc to Lender, Lender does not givc up any rights to later use any other remedy. By not exercising any rcmedy upon
<br />Borrower's default, Lendcr docs 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-sili:ners; Suceessors and Assigns Bound. All duties under this dccd of trust are joint and several. Any Borrower who co-signs this
<br />deed OftlUst but does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's intcrcst in the property to thc Trustee under the terms
<br />of this deed of tlUSt. In addition, such a Borrower agrees that the Lcnder and any other Bonuwer under this decd of tl1lst may extend, modify or make any other changes in
<br />the terms ofthis deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms ofthis deed of trust.
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<br />Thc duties and beneIlts of this deed of tlust shall bind and benefit the successors and assigns of Lender and Borrnwer.
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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 Lender. Borrower will give any notice to Lendcr by certified mail to Lender's address on page I of thIS
<br />deed ofltust, or to any otlter address, which Lender has designated. Any other notice to Lender shall be sent to Lender's address as stated on page I oftlus deed oftrust.
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<br />Any notice shall be deemed to have been givcn to Borrower or Lender when given in the maImer statcd 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, Lendcr may demand immediate payment of the secured debt. Lender may also de~nand immcdi?te p~lym~I~~ if the B?,:ower iS,not a natural pC,rson and
<br />a beneficial interest in the Bormwer is sold or transferred. However, Lender may not demand payment 111 the above SItuatIOns It It IS prohibited by tederallaw as 01 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 advances under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey thc tmst property. The Lender sh~lI dehver to the Borrower, or to
<br />Borrower's successor in interest, the trust dced and the note or other evidence of the obligation so satisfled. Borrower shall pay any recordatIon costs.
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<br />21. Successor Trustee. Lender, at I ,ender's option, may removc Trustee and appoint a successor trustee by nrst, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by liIing the substitution of trustee for record in thc office of the register of deeds of each count~ in which the tmst propelty, or some patt
<br />thercof, is situated. Thc successor trustee, without conveyance of the property, shall succeed to all the power, duties, authonty and tItle of the Trustee named In the dced of
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<br />tlUSt and 0 f any successor tl1lstcc.
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