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<br />COVENANTS
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<br />200705027
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<br />1. Payments. Borruwer agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives from
<br />Borruwer 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. II' pmiial prepayment or the secured debt occurs fur any reason, it will not reduce or excuse any scheduled payment until the secured debt is paid in rull.
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<br />2. Claims Against Title. Bml'Ower will pay all taxes, assessments, and other charges attributable to the property when due and will delend title to the prop cIty against
<br />any claims which wuuld impair the lien uf this deed of tmst. Lender way require Bonuwer to assign any rights, claims or derenses which Borrower may have against
<br />parties who supply labor or mateIials to improve or maintain the propelty.
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<br />3. Insurance. Horrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benefit. All Insurance policies shall
<br />include a standard mortgage clause in (llYor uf 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 discretiun, to either the restoration or repair of the damaged property ur to the secured debt. II' Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance fur as long as Lender requires.
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<br />4. Property. Burruwer will keep the property in guod condition and make all repairs reasonably nccessary.
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed of tlUst. Borrower will pay these amounts to Lender as provided in Covenant 9 uf this deed of trust.
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<br />6. Prior Security Interests. Unless Borruwer first obtains Lender's written contcst, Borrower will not make or permit any changes to any prior sceurity interests.
<br />Borrower will perform all of Borrower's obligations under any prior mortgage, decd of trust or other security agreemcnt, including Borrower's covcnants to wake 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 tbe costs uf managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other nccessary related expenses. The remaining amount of rents will then apply to payments on the secured debt as
<br />pl1.lvided in Covenant I.
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<br />II. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the pl1.lvisions of any lease if this deed of trust is on leasehold. II' this
<br />dced of trust is on a unit in a condominium or a planned unit dcvclopment, Borrower will perlarm all of Borrower's duties undcr 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 Borrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perform the dutics or
<br />cause them to be perlormed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any constructiun on the propelty is discontinued ur nut
<br />carried on in a reasonablc manner, Lender 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 />Lender's failure to pcrlorm will not preclude Lender from exercising any of its uther rights under the law or this deed of trust.
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<br />Any amounts paid by Lender 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 the interest rate in effect on the secured debt.
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<br />10. Default and Acceleration. If Borrower fails to make any payment when due or breaks any covenants under this deed oftmst or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accelerate the maturity or the secured debt and demand immediate payment and Illay invoke the power of sale and
<br />any other remedies pennitled by applicable law.
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<br />II. Request for Notice of Default. It is hereby requested that copies of the notices uf default and sale be sent to each person who is a party hereto, at the address of each
<br />such person, as set (orth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shall first record in the office of the register or deeds of each county wherein the tmst pmpelty or
<br />~ome part or parcel thereof is situated a notice of del'lult containing the infOllllation required by law. The Tmstee shall also mail copie~ of the notice of default to the
<br />Bormwer, to each person who is a pmty hereto, 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 if the tru~t property is not in any incorpurated 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. Trustee, without demand on BOIl"Qwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Fallll Homestead Protection Act, Trustee shall otTer the pmperty in two separate sales as required by applicablc law. Tmstee may postpone sale of all ur any
<br />parcel of the property by public announcement at the time and place of any previously scheduled sale. Lender or its designce may purchase the property at any sale.
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<br />Upon receipt of payment of the pricc bid, Trustec shall deliver to tbe purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />pIima facie evidience of the tmth of the statements contained therein. Tlustee shall apply the proceeds of the sale in the following order: (a) to all expenses or the sale,
<br />including, but not limitcd to, reasonable Trustee's fecs, rcasonablc attorney's fecs 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 />13. Foreclosure. At Lender's option, this deed oftrust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand. The notice must statc the rcasonahle cause t,)! Lendcr's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds or any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />propelty. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the tenllS uf 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 fCmedy. 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 Bound. All duties under this deed of tmst 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 grant and convey that l:3orrower's interest in the property to thc Trustce under the terms
<br />of this deed of tmst. In addition, such a Borrower agree~ that the Lender and any other Borrower under this deed or trust may extcnd, modify or make any other changes in
<br />the terms ofthis deed oftrust or the secured debt 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 bind and benefit the ~uecessors and assigns of Lender and Burruwer.
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<br />18. Notice. Unless otherwise required by law, any notice to Burrower shall be given by deliveling it or by mailing it by certified mail addressed to Borrower at the
<br />property address or any other addrcss that Borrower has given to Lender. Borrower will givc any notice to Lender by eertil1ed mail to Lender's addres~ 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 address as stated on page I of this deed oftrust.
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<br />Any notice shall be deemed to have been given to Borrower 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. If all or any part of the property ,or anY,interest in it is. sold or transf~rred without the I ,ender's
<br />prior written consent, Lender lTlay demand immediate payment or the secured debt. Lender may also demand nnmedlate payment" the Bon'Ower IS not a natunll person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above situations if it is prohibited by federal law as of the date
<br />of this deed oftmst.
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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 instmments or
<br />agreements secured by thi~ deed oftl1.lst, the Trustee shall, upon wlitten request by the Lender, reconvey the trust property. The Lender slu~lI dehver to the Borrower, ur to
<br />Borrower's successor in interest, the trust deed and the note or other evidcnce of the obligation so satisfied. Horrower shall pay any recordation costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may rcmove Trustee and appoint a successor tmstee by I1rst, mailing a copy uf the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution oftmstee (i}r record in the office ofthe register of deeds of each count~ in whi~h th~ tmst property, or s~me part .
<br />thereol~ is situated, The successor trustee, without conveyance of the property, shall succeed to all the power, duttes, authollty and trtle of the Trustee named III the deed of
<br />trust and of any successor trustee.
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