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<br />COVENANTS
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<br />200704549
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<br />1. Payments. BOlTower 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 for Borrower's henefit will be applied first to any amounts Borrower owes on the secured debt exclusive of interest or Plineipal, second to interest, and then to
<br />principal. If partial prepayment of the secured debt occurs for 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, 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 tl1lSt. Lender may require Bon'Ower to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply labor or materials to improve or maintain the propelty.
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<br />3. I.nsuranee. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benel1t. All Insurance policies shall
<br />include a standard mOltgage 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 discrdlon, to either the restoration or repair of the damaged property or to the secured deht. If Lender requires mortgage insurdnce, Bonuwer
<br />agrees to maintain such insurance for as long as Lender requires.
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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 expenses, ineluding reasonable attorneys' fees, if Horrower hreaks 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 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 />when due.
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<br />7. AssIgnment of Rents and Profits, Borrower assigns to Lender the rents and profits ofthe 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 propelty and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the property, including eOUlt 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 I.
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<br />8. Leaseholds; Condominiu illS; Planned Unit Developments. Bormwer agrees to comply with the provisions of any lease i I' this deed of ltust 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 covcnants, 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 Horrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to he performed. Lender may sign Borrower's namc or pay any amount if necessary for performance. If any constnlction on the propelty is discontinued or not
<br />carried on in a rcasonable manner, Lender may do whatever is necessary to protect I ,cndcr's sccurity 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 of trust.
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<br />Any amounts paid by Lender to protect Lendcr's sceurity interest will he 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. [I' Borrower fails to make any paymcnt when due or breaks any covenants under this deed of trust or any obligation secured by this dced of
<br />trust or any plioI' mOltgage or deed of ttust, Lender may accelerate the maturity of thc securcd 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 />II. 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 party hereto, at the address of each
<br />such person, as set forth herein.
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<br />12. Power of Sale. If thc 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 pmpelty or
<br />some part or parecl thereof is ';,~iiled a llotice of default containing the infonnation required hy law. The Trustee 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 after the Trustee records the llotice of dclault,
<br />or two months ifthe trust property is not in any incorpomted city or village and is used in fanning 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. Trustce, without demand on Borrower, 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 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 its designee may purchase the property at any sale.
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<br />Upon rceeipt of payment of the price bid, Trustee shall deliver to thc purchaser Trustee's deed conveying the property. The reeitials contained in Trustee's deed 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 fees and reinstatement fees; (b) to all sums sccured 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 />13. Foreclosure. At Lender's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclusure of mortgages on real propelty.
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<br />14. Inspection. Lendcr may enter the property to inspect it if Lender gives Borrower notice heforehand. The notice must state the rcasonable cause for Lcnder's
<br />inspection.
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<br />15. Condemnation. BOl1'0wer 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 />pl'Opelty. Such proceeds will be applied as provided in Covenant J. This assignment is subject to the terms of any plioI' 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 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 Assigns BOllnd. All dutics under this deed oftl1lst are joint and several. Any Borrower who co-signs this
<br />deed of trust but docs not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the property to the Trustcc under the terms
<br />of this deed of trust. [n addition, such a Borrower agrees that the Lender and any other BOlTower under this deed of trust may extend, modify or make any other changes in
<br />the terms of this deed oftrust or the secured dcbt without that Borrower's consent and without releasing that Borrower from the terms of this deed oftrusl.
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<br />The duties and benefits of this deed of trust shall hind and beneH! the successors and assigns of Lender and BOlTower.
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<br />18. Notice. Unless othelwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certified mail addressed to Bon.ower at the
<br />property address or any othcr address that Borrower has given to Lender. Borrower will give any notice to Lendcr by certified mail to Lender's add~ess on pagc I of this
<br />deed oftrust, or to any other address, whieb Lender has designated. Any other notice to Lender shall be sent to Lender's address as stated on page J oJ tillS deed of trust
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<br />Any notice shall be deemed to have been given to BOll1lWer 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. [fall or any part of the property or any interest in it is sold or transferred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immedi~te p~ym?n~i~'the B?r~'ower is.not a natural pe,rson and
<br />a benel1cial interest in the BOll1lWer;S sold or tmnsferred. However, Lender may not demand payment in the above SItuatIons If It IS prohIbIted by federal law as 01 the date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by tltis deed of trust has been paid, and Lender has no further obligation to make advance~ under the instl1lments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender shall dehver to the Borrower, or to
<br />Borrower's succcssor in intercst, the trust dccd and the notc or other evidence of the ohligation so satisfied. Borrower shall pay any recordatton costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may rcmove Trustce and appoint a successor trustee by first, mailing a copy of the substitution oftl1lstee as required
<br />by applicable law, and then, by filing the substitution ortrustee for record in the office oftbe register of deeds of ?ach county in whi?h the trust ,property, or s~ll1e patt .
<br />thereof, is situated. Thc successor trustee, without conveyance of the property, shall succeed to all the power, dutIes, authonty and tItle of thc [mstee named m the deed of
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<br />trust and of any successor tmstee.
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