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<br />COVENANTS
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<br />200704942
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<br />l. Payments. Borrower agrees tu make all payments un the secured debt when due. Unless Borrower and Lender agree utherwise, any payments Lender receives from
<br />Borrowcr or Jor Borrower's benefit will be applied first to any amounts Horrower owcs on the secured debt exclusivc of intcrest or principal, second to interest, and then to
<br />principal. If partial prepayment of the secured debt occurs for any reason, it will nut reduce ur excuse any scheduled payment until the secured debt is paid in full.
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<br />2. Claims Against Title. Burruwer will pay all taxes, assessments, and other charges attributable to the propel1y when due and will defend title to the property against
<br />any claims which wuuld impair the lien of this deed of bust. Lender may require Bonnwer to assign any rights, claims or defenses which Bonnwer may have against
<br />parties who supply labor or materials to improve or maintain the propcrty.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrowcr's expense and for Lcnder's benctlt. All Insurance polieics shall
<br />include a standard mOl1gage clause in lilVur of Lender. Lender will be named as luss payee ur as the insured un any such insurance pulicy. Any insurance proceeds may be
<br />applied, within I.ender's discretiun, to eitber 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 Lender requires.
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<br />4. Property. Bon'ower will keep the property in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Burrower agrees to pay all Lender's expenses, ineluding reasonable attorneys' fees, if Burrower breaks any covenants in this deed uf trust ur in any
<br />obligation secured by this deed of trust. Borrower will pay these amounts to Lender as provided in Covenant <} of this deed of trust.
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<br />6. Prior Security Interests. Unless Borrower nrst obtains Lender's written contest, Burruwer 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, ineluding 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. 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 property and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the propel1y, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related cxpenses. The remaining amount of rents will then apply tu payments on the secured debt as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned lJnit Developments. Borrower agrees to comply with the provisions of any lease if this deed oftlUst is on leasehold. (I' this
<br />deed of trust is on a unit in a condominium or a planned unit dcvelopmcnt, Borrowcr will pcrform all of Borrower's duties under the covenants, 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 Borrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perlorrn the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if ncccssary for performanec. If any construction on thc propcl1y is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to prolect Lender's security interest in the property. This may include completing thc construction.
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<br />Lender's failure to perform wlil not preclude Lender from exercising any of its other rights under the law or this deed OftIUSt.
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<br />Any amounts paid by Lender to protect Lender's security inlerest 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 the interest rate in effect on the secured debt.
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<br />10. Default and Acceleration. If Borrower fails to make any paymcnt when due or breaks any covenants under this deed of hust or any obligation secured by this deed of
<br />ltust or any prior m0l1gage 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 pelmitted by applicable 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 p8l1y hereto, at the address of each
<br />such person, as set forth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the TlUstce shall first record in the oflice of the register of deeds of each county wherein the tmst propel1y or
<br />some part or parcel thereof is situated a notice of default containing the infonnation required by law. The Trustee shall also mail copies of the notice of dclault to the
<br />Bon'ower, 10 each person who is a p8l1y hereto, and to other persons as preselibed by applicable law. Not less than one month after the TlUstee records the notice of default,
<br />or two months if the tmst property is not in any ineOlporated city or village and is used in Janning operations carried on by the trustor, the TlUstee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. TlUstee, without demand on Bonnwer, shall sell the pllJpel1y at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the pmperty in two separate sales as required by applicable law. TlUslee may postpone sale of all or any
<br />parcel of the pmpel1y 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 receipt of payment of the price bid, Trustce shall deliver to the purchaser Trustee's dccd conveying the propcrty. The reeitials contained in Trustee's deed shall be
<br />prima facie evidience of the tluth of the statements contained therein. TlUstee shall apply the pmceeds 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 attorncy's fees and reinstatement fees; (b) to all sums secured by this dccd 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 oftmst may be foreclosed in the manner provided by applicable law fbr tbreclosure of mortgages on real propel1y.
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<br />14. Inspection. Lender may enter the propel1y to inspect it if Lender 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 elaim Il)r damages connected with a condemnation or other taking of all or any pal1 of the
<br />pmperty. Such proceeds will bc applied as provided in Covenant I. This assignment is subject to the tcnns of any prior 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, l.ender does not waive any right to later consider the event a default ifit happens again.
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<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bonnd. All duties under this decd oftmst are joint and several. Any Borrower who co-signs this
<br />deed OftlUSt but does not co-sign the undcrlying debl instrumcnts(s) does so only to grant and convey that Borrower's interest in the propcrty to the Trustee undcr the terms
<br />of this deed of tmst. In addition, ,neh a Borrower agrces that the Lender and any other Borrower under this deed of tlUSt may extend, modity or make any other changes in
<br />the terms of this deed oftrust or thc secured debt without that Borrower's consent and without releasing thaI Borrower from the terms of this deed of trust.
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<br />The duties and benel1ls of this deed of trust shall bind and benefit the succe~sors and assigns of Lcnder and Borrower.
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<br />18. Notice. Unless otherwise required by law, any notice to Bonnwer shall be given by delivering it or by mailing it by certi~ed mail addressed to Borrower a~ the
<br />property address or any other address that Horrower has given to Lender. Borrower will give any notice to Lcnder by certified mall to Lender's add~ess on page ( ot thiS
<br />deed of bust, or to any other address, which Lender has designated. Any other notice to Lender shall be sent to Lender's address as stated on page I 01 this deed of trust.
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<br />Any notice shall be deemed to havc been given to Bonnwer or Lender when given in the maimer stated above.
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<br />19. Transfer of the Property or a Beneficial Interest in the Borrower. If all or any part oIthe property.or any.interest in it i.s sold or transt~rred without the Lender's
<br />prior written consent, Lcnder may demand immediate paymenl of the secured debt. Lender may also de~nand munedl~te p~ym~n~ I~the B~mower IS not a natural person ~nd
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment III the above SituatIOns If It IS prolllblted by federal law as ofthe d,lle
<br />ofthis deed oftlUst.
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<br />20. Reconveyance. Whcn the obligation secured by tltis deed of tmst has been paid, and Lender has no thrther obligati~n to make advances under the inslruments or
<br />agreements secured by this deed of trust, the Truslee shall, upon written request by the Lender, reconvey the tlust propel1y. rhe Lender sh~1l dehver to the Bonuwcr, or to
<br />Horrower's successor in intcrest, the trust deed [Old the note or other cvidence of thc obligation so satisfied. Borrower shall pay any recordation cosls.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by Ilest, mailing a copy ~fthe substitution oftlUstee as required
<br />by applicable law, and then, by filing the substitution oftlUstee fl~r record in the office ofthe register of deeds of each eount~ i~ wlu~h the trust ~rope~, or s~me pal1
<br />thereof, is situated. The successor tlUstee, without conveyance of the pmperty, shall succeed to all the power, dutIes, authonty and title of the Tlllstee IMmed m the deed of
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<br />tlUSt and of any successor trustee.
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