|
<br />COVENANTS
<br />
<br />200704504
<br />
<br />J. Payments. Bonower agrees to makc all payments on the secured debt when due. Unless BOll'ower and Lendcr agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will be applied t1rst 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 of the secured debt oecurs for any reason, it will not reduce or excuse any scheduled payment until the secured debt is paid in full.
<br />
<br />2. Claims Against Title. Borrower will pay all taxes, assessments, and other ehargcs attributablc to the propctty when due and will defend title to the propetty 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 BOll'ower may have against
<br />patties who supply labor or materialE to improvc or maintain the property.
<br />
<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's bene/It. All Insurance policies shall
<br />include a standard mortgage 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 I.endcr'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 for as long as Lcnder requires.
<br />
<br />4. Property. Borrower will keep the property in good condition and make all repairs reasonably necessary.
<br />
<br />5. Expenses. Borrower agrees to pay all Lender's expenses, in eluding reasonable 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.
<br />
<br />6. Prior Security Interests. Unless I3orrower first obtains Lender's written contest, Rorrower will not make or permit any changes to any prior security interests.
<br />Borrower will perfl)rm all of Rorrower's obligations under any prior mottgage, deed of trust or other security agreement, including Borrowcr's covenants to make payments
<br />whcn due.
<br />
<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rents and profits of the property. Unless Bon'(lwer and Lender have agreed otherwisc in wliting,
<br />Rorrower may collect and retain the rents as long as Rorrower is not in default. If Borrower defaults, Lender, Lendcr's agent, or a court appointed receiver may takc
<br />possession and manage thc property and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the proPCtty, ineluding court costs and
<br />attorncys' fccs, commissions to rental agents, and any other necessary relatcd cxpcnses. The remaining amount of rents willthcn apply to payments on the secured debt as
<br />provided in Covenant l.
<br />
<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 perlorm all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominium or planned unit dcvelopmcnt.
<br />
<br />9. Authority of Lender to Perform for Borrower. 11' Borrower fails to perform, any of Borrower's duties under this decd of trust, Lender may perform the duties or
<br />cause them to bc pertormed. Lcnder may sign Borrower's name or pay any amount if necessary for perlorrnance. If any construction on the propelty 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.
<br />
<br />Lender's failure to pcrform will not preclude Lender fium exercising any of its other lights under the law or this deed of trust.
<br />
<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed oftrust. Such amounts will be due on demand and will bear interest from the
<br />date ofthc payment until paid in full at the interest nlte in effect on the secured debt.
<br />
<br />10. Default and Acceleration. If Borrower 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 mortgage or deed of trust, 1 xnder may accelerate the maturity of the secured dcbt and dctnand immediatc payment and may invoke the power of sale and
<br />any other remedies permitted by applicable law.
<br />
<br />II. Request for Notice of Dchwl.t. It is hereby requested that copies of the notices of delimit and sale be sent to each person who is a party hereto, at the address of each
<br />such person, as set forth herein
<br />
<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shall first record in the office of the register of deeds of each county wherein the trust propelty or
<br />some part or parcel thereof is situated a notice of delilult containing the inlbnnalion required by law. The Trustee shall also mail copies of the notice of delimit to the
<br />Bormwcr, to cach pcrson who is a party hercto, and to othcr persons as prescribed by applicablc 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 villagc and is used in fanning operations camcd on by thc trustor, thc Trustcc shall givc public noticc of
<br />sale to the persons and in the manner prescribed by applicable law. Trustcc, without demand on Bon'(lwer, shall sell the pmpcrty at public auction to thc highest bidder. If
<br />required by the Farm 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 property by public announcement at the time and place of any previously scheduled sale. Lender or ils designee may purchase the property at any sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recilials containcd in Trustcc's dccd 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 Trustee's fees, reasonable attorney's fces and reinstatement fces; (b) to all sums secured by this deed of trust, and (c) the balmlce, if
<br />any, to the persons legally entitled to receive it.
<br />
<br />13. Foreclosnre. At Lender's option, this deed of trust may be forcclosed in the mannerprovidcd by applicable law fbr fbredosure of mortgages on real propelty.
<br />
<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand. The notice must statc the reasonable cause for Lender's
<br />inspection.
<br />
<br />15. Condemnation. BOll'ower assigns to Lender the proceeds of any award or e1aim for damages connected with a condclllnation or other taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignmcnt is subjcct to the terms of any prior security agrccmcnt.
<br />
<br />16. Wlliver. By exercising any remedy available to Lender, Lendcr does not give up any rights to later use any other remedy. By not exercising any remedy upon
<br />Borrower's default, Lender does not waive any right to later consider thc event a default ifit happens again.
<br />
<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any BOlTower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instrumcnts(s) does so only to grant and convey that Borrower's intercst in the property to the Trustec undcr the terms
<br />of this deed oftlust. In addition, such a Borrower agrees that the Lendct. and any other Borrower under this dced of trust may extend, modify or make any other changes in
<br />the tcrms of this deed of trust or the secured dcbt without that Borrower's consent and without releasing that Borrower from the ternlS ofthis deed oftrust.
<br />
<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of Lender and Borrower.
<br />
<br />18. Notice. Unless otherwise required by law, any notice to Borrower shall be given by delivcring it or by mailing it by celtified mail addressed to Bon'ower at the
<br />pmpetty address or any other address that I3orrower has givcn to Lender. Borrower will give any notice to Lendcr 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 Lender's addrcss as stated on page I of this dccd oftrust.
<br />
<br />Any notice shall be deemed to have been given to Bormwer or Lender when given in the manner stated above.
<br />
<br />19. Trllnsfer ofthe Property or II Beneficial Interest in the Borrower. If all or any part of the property or any interest in it is sold or transferred without thc Lender's
<br />prior written consent, Lender may demand immcdiate payment of the secured debt. Lender may also demand immediate payment if the BOll'ower is not a natural person and
<br />a beneficial intercst in the Borrower is sold or trdnsfelTed. However, Lender may not demand payment in the above situations ifit is prohibited by federal law as of the date
<br />ofthis deed of trust.
<br />
<br />20. ReconveYllnce. When the obligation secured by this decd of trust has been paid, and Lender has no filrther obligation to make advance~ undcr the instruments or
<br />agreements secured hy this deed of trust, thc Tmstee shall, upon written request by the Lcnder, reconvey thc tmst property. Thc Lender shall dehvcr to the Borrowcr, 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.
<br />
<br />21. Successor Trustee. I,endcr, at Lender's option, may remove Trustec 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 ofthe register of deeds of ~ach county in whi~h the trust property, or some part
<br />thcreof, is situated. The successor trustee, without conveyancc ofthe property, shall succeed to all the power, dutlcs, authonty and tltlC ofthe Trustee named mthe deed of
<br />
<br />trust and of any successor trustee.
<br />
|