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<br />COVENANTS
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<br />200705544
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<br />1. Payments. Borrower agrees to make all payments on the secured deht when due, Unless Borrower and Lender agree othelwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will he applied tirst to any amounts Borrower owes on the secured deht exclusive of interest or principal, second to interest, and then to
<br />principal. If partial prepayment of the secured debt occurs lor 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 attributahle 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 trust. Lender may require Borrower to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply lahar or materials to improve or maintain the property,
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense and tor Lender's benefit. All Insurance policies shall
<br />include a standard mortgage clause in favor of Lender. Lender will he named as loss payee or as the insured on any such insurance policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged property or to the secured deht. If Lcnder requires mortgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lender requires,
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<br />4. Property. BOITower 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 attorneys' fees, if Borrower breaks any covenants in this deed of trusl 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 dced of trust.
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<br />6. Prior Security Interests. Unless Borrower Hrst 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 ohligations under any prior mortgage, deed oftrust 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 prolits 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 propeliy and collect the rents, Any rents Lender collects shall be applicd first to thc costs of managing the property, including court 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 lJ nit Developments. Borrower agrees to comply with the provisions of any lease if this deed of tlUSt is on leasehold. If this
<br />deed of trust is on a unit in a condominium or a planned unit development, Borrower will pertormall 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 perform the duties or
<br />cause them to be perlormed. Lender may sign Borrower's name or pay any amount if necessary for perlonnance. If any construction 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 constmction.
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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 oftrust.
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<br />Any amounts paid hy Lender to protect Lender's security interest will he secured hy 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 of tlUSt or any obligation secured by this deed or
<br />trust or any prior mortgage or deed of trust, Lender may accelerate the maturity of the secured debt and demand inullediate payment and may invoke the powcr of sale and
<br />any other remedies penllitted by applicable law.
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<br />11. 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 setlorth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Tmstee sha1l first record in the office of the register or deeds of each county wherein the trust property or
<br />some part or parcel thereof is situated a notice of dehluIt containing the information required by law, The Tmstee sha1l 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 preserihed hy 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 city or village and is used in fal'l11ing operations carried on by the trustor, the Tmstee sha1l give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Tmstee, without demand on Bommer, shall sell the property at puhlie auction to the highest hidder. If
<br />required by the Fann Homestead Protection Act, Tmstee shall oller the property in two separate sales as required hy applicable law. Trustee may postpone sale of a1l or any
<br />parccl of the property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the propeliy at any sale.
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<br />Upon receipt of payment of the price hid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The redtials contained in Trustee's deed shall he
<br />prima facie evidience of the tmth of the statements contained therein. TlUstee shall apply the proceeds of the sale in the following order: (a) to a1l expenses of the sale,
<br />including, but not limited to, reasonahle Trustee's fees, reasonahle attorney's fees and reinstatement fees; (b) to all sums secured by this deed oftrust, and (e) the halance, 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 matmer 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 state the reasonahle cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower 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 />property, 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. A1I duties under this deed oftmst are joint and several. Any Borrower who co-signs this
<br />deed ortmst hut does not co-sign the underlying debt instruments(s) does so only to grant and convey that Harrower's interest in the property to the Trustee under the terms
<br />of this deed of tmst. In addition, such a Bon'ower agrees that the Lender and any other Borrower under this deed of trust may extend, modi ry or make any other changes in
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without rcleasing that Borrower from the terms of this deed oftmst.
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<br />The duties and benefits of this deed of tmst shall bind and henefit 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 given hy delivering it or by mailing it hy certified mail addressed to BOlTower a~ tI~e
<br />property address or any otheraddress that Borrower has given to Lender. Harrower will give fillY notice to Lender hy certified mail to Lender's addres~ on page, I at tins
<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 tillS deed 01 trust.
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<br />Any notice shall he deemed to have been given to Borrower or Lender when given in the manner stated ahove.
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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 the Lender's
<br />plioI' written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand immedi~te p~ym~~~ i~'the B?l~'()wer is,not a natuml person and
<br />a beneficial interest in the Borrower is sold or tl1l11sfeITed. However, Lender may not demand payment 111 the above situations It It IS prohibited by federal law as 01 the date
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<br />of this deed oftmst.
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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 instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender sh~1I deliver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obligation so satistied. Borrower shall pay any recordatIOn costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee hy first, mailing a ~opy ?fthe substitution oftrustee as required
<br />hy applicable law, and then, hy filing the substitution of trustee for record in the ofllce of the register of deeds of ~ach county 111 whl~h the tmst property, or s~me pali
<br />thereof, is situated. The successor trustee, without conveyance of the property, sha1l succeed to all the power, duties, authonty and title of the Trustee named 111 the deed of
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<br />tmst and of any successor tIustee.
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