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<br />COVENANTS
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<br />200705795
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<br />1. Payments. Bonuwer agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives from
<br />Borrower 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 unti! 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 attlibutab1e to the property when due and will defend title 10 the property against
<br />any claims which would impair the lien of this deed of bust. Lender may require BOJTuwer to assign any rights, claims or defenses which Borrower may have against
<br />pmties who supply labor 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 Lemler at Borrower's expense and for Lender's benefit. All Insurance policies shall
<br />include a standard mortgage clause in favor of 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 discretion, to either the restoration or repair of the damaged property or to the secured debt. If Lender requires mOltgage insurance, Borrower
<br />agrees to maintain such insurallce fix as long as Lender requires.
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<br />4. Property. Borrower will keep the pmperty in good eondition 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. Bormwer 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 I1rst obtains Lender's written conlest, 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 Borrower's covenanls to make payments
<br />when due.
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<br />7. Assigument of Rents and Prolits. BOITOwer assigns to Lender the rents and prollts 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 propelty, including eOUlt costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary relaled 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; Condominiu ms; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease if this deed of tmst 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 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 dced of trust, Lender may perlaI'm the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any construction on the propelty 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 perform will not preclude Lender fmm excreising any of its other rights under the law or this deed oftmst.
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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 intcrest 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 B01Tower lails to make any payment when due or breaks any covenants under this deed of trust 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 ami
<br />any other remedies pennitted 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 he 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 Lender invokes the power of sale, the Trustee shall first record in the otlice of the register of deeds of each county wherein the trust property or
<br />some part or parcel thereof is situated a notice of default containing the information required by law. The Trustee shall also mail eopies of the notice of default to the
<br />Borrower, to each person who is a party hereto, and to other persons as prescrihed by applicable law. Not less than one month aIleI' the Trustee records the notice of default,
<br />or two months ifthe hust propelty is not in any incorporated city or village and is used in farming 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. Tmstee, without demand on Borrower, shall sell the pmperty at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Tmstee shall ofTer the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />pareel of the pmpelty by public announcement at the time and place of any previously seheduled 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, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidienee of the truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expcnses 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 Lender's op(1on, this deed of trust may be foreclosed in the manner pmvided by applicable law for foreclosure of mortgages on real pmperty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower noticc bctorehand. 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 claim for damages connected with a condemnation or other taking of all or any pa1t of the
<br />property. Such proeccds will be applied as provided in Covenant I. ll1is assignment is su~jeet to the tenns of any prior security agreement.
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<br />16. Waiver. By excreising any remedy available to Lender, Lender docs 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 delault if it happens again,
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<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bouud. All duties under this deed oftrust are joint and seveml. Any Bon'ower who co-signs this
<br />deed oftrust but does not co-sign the undcrlying debt instruments(s) does so only to grant and convey that Borrower's interest in thc property to the Trustec under the terms
<br />of this deed of trust. In addition, such a BOITower agrees that the Lender and any other Borrower under this deed of trust may extend, modi fy or make any other changes in
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Horrower from the terms ofthis deed of trust.
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<br />The duties and benefits of this deed of trust shall biud 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 given by delivering it or hy mailing it by certified mail addressed to Borrower at the
<br />property addrcss or any other addrcss that Borrower has given to Lender. Horrower will give any notice to Lender by certil1ed mail to Lender's address on page I ofthls
<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 of trust.
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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. Trausfer of the Property or a Bencficialluterest 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 />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immediate p~ym?n~ i!'the BOI~'Ower is not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. Ilowever, Lender may not demand payment in the above situal10ns If It IS prohlhlted by federal law as of the date
<br />of this deed oftrust.
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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 advanee~ under the instmments or
<br />agreements secured hy this deed of tmst, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender shall delIver to the BOlTower, or to
<br />Borrower's successor in interest, the trust deed and the note or other cvidence ofthe obligation so satisfied. Borrower shall pay any recordatIOn eosts.
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<br />21. Successor Trustee. Lcnder, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by f11ing the substitution oftmstee for record in the otliee ofthe register of deeds of ?ach county in whi~h the hust property, or some part
<br />thereoe is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, duttes, authOrIty and tHle of the Trustee named 111 the deed of
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<br />trust and of any successor hustee.
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