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<br />COVENANTS
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<br />200704795
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<br />I. Payments. Borrower agrees to makc all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any paymcnts Lcndcr rcccivcs from
<br />BOlTower or for Borrower's benefit will be applied first 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 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 othcr charges attributablc to the property when due and will defend title to the property against
<br />any claims which would impair the lien of this dced of trust. Lender may require Borrower to assign any rights, claims or defenses which Borrower may havc against
<br />parties who supply labor or matcrials to improve or maintain the property.
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<br />3. Insurance. Borrower will keep the propcrty insured under tenns acceptable to Lender at Borrower's expense and for Lender's benefit. Alllnsumncc policics shall
<br />include a standard mortgage clause in favor of Lender. Lendcr will bc namcd as loss payee or as the insured on any such insunmce policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the restomtion or repair of the damaged property or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insumnee 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, including reasonable attorncys' fces, if Borrower breaks any covenants in tillS deed of trust or in any
<br />obligation secured by this dced 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 Lendcr's written contest, Borrower will not make or permit any changes to any prior security interests_
<br />Borrower will perfonn 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 of the property. Unlcss Borrowcr and Lender have agreed otherwise in writing,
<br />Borrowcr may collcct and retain thc rents as long as Borrower is not in detault. 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 court costs and
<br />attorneys' fees, commissions to rental agents, and any other neccssary related expenses. The remaining amount of rents will then apply to payments on th" s"cured 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 perfonn all of Borrower's duties under the covenants, by laws, or rcgulations of
<br />the condomilllum or planned unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perfbnn, any of Borrower's duties under this deed of trust, Lcnder may pcrform the dutics or
<br />cause them to be performed. Lendcr may sign Borrower's name or pay any amount if necessary for performance. If any construction on the property is discontinucd or not
<br />camed on in a reasonable manner, Lend"r 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 />Lcndcr's failurc to pcrfonn will not preclude Lender fwm exercising any of its other rights under the law or this deed of trust.
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<br />Any amounts paid by Lendcr to protect Lender's security interest will be 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 th" interest mte in elTect on the securcd debt.
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<br />10. Default and Acceleration. If Borrower fails to make any paym"nt when due or breaks any covenants under this deed of trust or any obligation sccured by this decd of
<br />trust or any prior mortgage or dced of trust, 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 permitted by applicab\c law.
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<br />II. Request for Notice of Default. It is hereby 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 forth herein.
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<br />12. Power of Sale. If the Lendcr invokes the power ohale, the Trustee shall first record in the office of the register of deeds of each county wherein the trust property or
<br />some pali or parcel thereof is situated a notice of default containing the information required by law. The Trustcc shall also mail copics of thc noticc of dctault to the
<br />Borrower, to cach pcrson who is a party hcreto, and to other persons as prescribed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months ifthc 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 the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the property at public auction to the highest biddcr. If
<br />required by the Farm Homestead Protection Act, Trustee shall olTer 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 pr"viously scheduled sale. Lender or its designee may purchase the property at any sale.
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<br />Upon receipt of payment of the pric" bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. Thc recitials 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 attomey's fees and reinstatement fees; (b) to all sums secured by tins 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 Lendcr's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgagcs on rcal propcrty.
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<br />14. Inspection. Lender may enter the property to insptJCt it if Lender gives Borrower notice beforehand. The notice must stat" the r"asonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to LL'l1der thc 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 wi1\ be applied as provided in Covenant I. This assignment is subject to the terrns of any prior security agreement.
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<br />16. Waiver. By exercising any remedy available to Lendcr, Lendcr does not give up any rights to later use any othcr remedy. By not cxercising any remedy upon
<br />Borrower's delault, 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 Assi~ns Bound. All duties under this deed of trust are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instruments(s) does so only to gmnt and convey that Borrower's interest in the property to the Trustee under the terms
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of trust may extcnd, 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 terms of this deed of trust.
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<br />The duties and benefits of this deed of trust 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 giv"n by delivering it or by mailing it by certified mail addressed to BomJw"r at the
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's address on pag" 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 address as slated on page I of this deed of trust.
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<br />Any noticc shall be deemed to have been given to Borrower or Lender whcn 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 property or any interest in it is sold or transferred without th" L"ndtlf's
<br />prior written consent, Lender may demand ilmnediate payment of the secured debt. Lender may also demand immediate payment if the Borrower is not a natural person and
<br />a beneficial interest in the Borrower is sold or tmnsferred. However, Lender may not demand payment in thc above situations if it is prohibited by fedemllaw as of thc date
<br />of this deed of trust.
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<br />20. Reconvcyance. Wh"n th" obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advances under th" instrum"nts or
<br />agrecmcnts secured by this deed of trust, the Trustee shall, upon written request by th" Lender, reconvey the trust property. The Lender shall deliver to the Borrower, or to
<br />Borrow"r'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. Lendcr, at Lender's option, may remove Trustee and appoint a successor trustce by first, mailing a copy ofthc substitution oftrustce as rcquircd
<br />by applicable law, and then, by filing the substitution of trustee for record in the otllce of the register of deeds of each county in which the trust property, or some part
<br />thereof, is situated. The successor trust"e, without conveyance of the property, shall succeed 10 all the power, duties, authority and title of the Trustee named in the deed of
<br />tlllSt and of any successor trustee.
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