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<br />COVENANTS
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<br />200705028
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<br />l. Payments. Bonuwer agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives linn
<br />Horrower 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 />Plineipal. If partial prepayment of the secured debt occurs tur 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 whicb would impair the lien of this deed of tmst. Lender may require Borrower to assign any rights, claims or defenses which Bon'Owcr may have against
<br />palties who supply labor or materials to improve or maintain the propelty.
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<br />3. Insurance. Borrower 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 slandard mortgage clause in favor of Lender. Lender will be named as loss payee or as the insured on any such insuntnce policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged propelty or to the secured debt. If Lender requires mortgage insurance, Bon'Ower
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will keep the propelty 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 attorneys' fees. if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed oftmst. Horrower will pay these amounts to Lender as provided in Covenant 9 oflhis 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 Horrower'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 Horrower defaults, Lender, I ,ender's agent, or a court appointed receiver may take
<br />possession and manage the propClty and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the property, including eOlllt 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; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions or any lease if this deed oftmst 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 Horrower'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 perform the dulies or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount irneeessary for performance. If any constmction on the property 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.
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<br />Lender's failure to perlurm 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 Lender's security interest will be secured by this deed oftrust Such amounts will be due on demand and will bear interest from tbe
<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 Aeccleration. If Borrower hlils to make any payment when due or breaks any covenants under this deed oftrusl or any obligation secured by this deed of
<br />trust or any prior mortgage or deed 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 pennitted 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 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 Lcnder invokes the power of sale, the Trustee shall first record in the oflice of the register of deeds of each county wherein the tlust p11)perty 01'
<br />some pmt or parcel thereof is situated a notice of default containing the inlonnation rcquired by law. The Tmstee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a patty hereto, and to other persons as prescribed by applicable law. Not less than one month after the Tmstee records the notice of default,
<br />or two months if the trust property is not in any incorporated cily or village and is used in fanning operations caoied on by the tlustor, tbe Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Tmstec, without demand on BOll'ower, shall sell the propelty at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the propelty in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel or the property by public announcement at the lime and place of any previously scheduled sale. Lender or its designee may purchase the propel1y at any sale.
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<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the propelty. The recitials contained in Trustce's deed shall be
<br />prima facie evidienee of the l1uth 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 lees; (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 Lcnder's option, this deed oftmst may be toreclosed in the manner provided by applicable law lur foreclosure of mortgages on real propelty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice bctorehand. The notice must state the rea~onable cause fllr Lender's
<br />inspection.
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<br />15. Condemnation. Borrow':1 4ssigns to Lender the proceeds of any award or claim Illr damages connected with a condemnation or otber taking of all 01' any part of the
<br />propelty. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the tenns 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, 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 oftrust arc joint and several. Any Bon'Ower who co-signs this
<br />deed oftmst but does not co-sign the underlying debt instruments(s) does so only to grant and convey that Horrower's interest in the property to lhe Trustee under the terms
<br />of tbis deed of trust. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of trust may extend, modi ry or make any other changcs in
<br />the tenns ofthis deed oftrust or the securcd debt without that Borrower's consent and without releasing that Borrower from the terms of this deed oftmst.
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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 Bon'ower.
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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 10 Bormwer a~ t1~e
<br />propelty 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 page 1 01 thiS
<br />deed oftrust, 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 of trust.
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<br />Any notice shall be deemed to have been given to BOll'ower or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a BeneOciallnterest 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 />Plior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand nnmedl?te paym~n~ l~ the BOI'~ower IS,not a natural pe,rson and
<br />a beneficial interest in the Borrower is sold or transfen'ed. However, Lender may not demand payment III the above SituatIons If It IS prohibited by lederallaw as ot the date
<br />ofthis deed oftrust.
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<br />20. Reconveyance. When the obligation secured by this deed of tmst has been paid, and Lender has no fllltber obligation to make advanee~ under the instruments or
<br />agreements secured by this deed of tluSt, the Trustee shall, upon written request by the Lender, reconvey the tmst propelty. The Lender shall dehver to the Bot1'Ower, 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.
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<br />2 I. Snccessor Trnstee. Lender, at I ,ender's option, may remove Trustee and appoint a successor trustee by first, mailing a copy of the substitution oflrustee as required
<br />by applicable law, and then, by ll1ing the substitution oftmstee for record in the otlice of the register of deeds of each county in whi~h th~ tlUSt propelty, 01' s(~me part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, duties, authonty and title 01 the Trustee named m the deed of
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<br />hust and of any successor trustee.
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