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<br />COVENANTS
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<br />200704503
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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 />13orrower or for Borrower's benel1t will be applied first to any amounts Borrower owes on the secured debt exclusive of interest or plincipal, second to interest, and then to
<br />principal. If partial prepayment of the secured debt occurs .Ior 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. BOfl"ower will pay all taxes, assessments, and other charges attributable to the pmperty when due and will defend title to the property against
<br />any claims which would impair the lien of this deed of tmst. Lender may require 13orrower 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 13orrower's expense and for Lender's benefit. All Insurance policies shall
<br />include a standard mottgage clause in favor of Lcndcr. Lender will be named as loss payee or as the insured on any such insumnce policy. Any insumnce 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, Bonuwer
<br />agrees to maintain such insumnce for as long as Lender requires.
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<br />4. Property. BOfl"ower will keep the propetty in good condition and make all repairs reasonably necessalY.
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrowcr 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 obtains Lender's written contest, Borrower will not makc or permit any changes to any prior security interests.
<br />Borrower will perform all of Borrower's obligations under any prior mortgage, deed oftrust or other security agreement, including Borrower's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and frofits. Borrower assigns to Lender the rents and profits of the property. Unless Borrower and Lender have agreed otherwise in wliting,
<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 propetty, including court costs and
<br />attorncys' fces, 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. 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 rcgulations of
<br />the condominium or planned unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Horrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause thcm to be performed. Lender may sign Borrower's name or pay any amount if necessary for pert(1rmance. If any constntclion 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 thc construction.
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<br />I ,ender's failure to pcrform will not preclude Lender from exercising any of its other rights under the law or this deed oflrust.
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<br />Any amounts paid by Lemler to protect Lender's security interest will be sccured 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 eOect on the secured debt.
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<br />10. Default and Acceleration. If BOITower fails to make any payment when due or breaks any covenants under this decd ofttust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of tmst, 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 />]]. Request for Notice of Herault. It is herehy 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 fotth herein.
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<br />12. Power of Sale. If tbe Lender invokes the power of sale, the Trustee shalllirst record in the office of the register of deeds of each county wherein the trust property or
<br />some part or pareelthereof is situated a notice of default containing the inf,mnation required by law. The Ttustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a party hereto, and to other persons as prescribed by applicable law. Not less than one month aller 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 camed on by the trustor, the Trustee shall give public notice of
<br />sale to thc persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the propClty at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Tlustee shall offer the propetty in two separate sales as required hy applicable law. Trustee may postpone sale of all or any
<br />parcel of the prop cIty hy 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, Trustee shall deliver to the purchascr Trustee's deed conveying the property. The recitials contained in Trustee's decd shall be
<br />prima facie evidience of the ttutll of the statements contained thcrein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale,
<br />including, but nOllimited to, rcasonahle Trustee'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 the persons legally entitled to receive it.
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<br />]3. Foreclosure. At Lender's option, this dccd of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real propClty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lcndcr 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 palt of the
<br />property. Such proceeds will be applied as provided in Covenant 1. This assignment is subject to the tenns of any prior security agreement.
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<br />16. Waiver. By exereising 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, Lendcr does not waive any right to later consider the event a default if it happens again.
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<br />] 7. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under this deed of trust arc joint and seventl. Any BonDwer who co-signs this
<br />deed ofttust but does not co-sign the underlying deht instruments(s) does so only to grant and convey that Borrower's interest in the propcrty to the Truslee under the terms
<br />of this deed ofttust. In addition, such a Bormwer agrees that the Lender and any other BOfl"ower under this deed of trust may extend, modify or make any other changes in
<br />the terms of this deed ohrust or the secured debt without that Borrower's consent and without releasing that Borrower from the tcrms of this deed ortrust.
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<br />The duties and benefits of this deed oftrust 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 Borrower shall be given by delivering it or by mailing it by certified mail addressed to BonDwer at the
<br />pmperty address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certil1ed mail to Lender's addrcss on page I of thIS
<br />deed ofttust, or to any other address, which Lender has designated. Any other notice to Lender shall be sent to Lender's address as staled on page 1 of this deed ohrust.
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<br />Any notice shall be deemed to have heen given to BonDwer or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a Beneflclallnterest in the Borrower. If all or any part of the property or any interest in it is sold or transferred without the Lender's
<br />prior wlitten consent, Lender may demand immediate payment of the secured debt. Lender may also de~and inllnedi~te p~ym:n~ i!'the B?I~ower is not a natural person and
<br />a beneficial interest in the BOITOwer is sold or transferred. However, Lender may not demand payment mthe above Situations If It IS prohIbIted hy federal law as of the date
<br />of this deed of !tust.
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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 the tlUSt propelty. Tbe Lender sh~1I dehver to the Borrowcr, or to
<br />13orrower's successor in interest, the trust dccd and the note or other evidence of the obligation so satisl1ed. Borrower shall pay any recordation costs.
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<br />21. Successor Trustee. Lcnder, at Lender's option, may rcmove 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 ming the substitution of trustee for record in the office of the register of deeds of :ach count~ in which the hust property, or some part ,
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, dultes, authonty and htle of the Trustee named 111 thc deed of
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<br />ttust and of any successor tmstee.
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