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<br />COVENANTS
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<br />200705911
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<br />1. Payments. Borrower 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 Hrst 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 nntil 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 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 labor or materials to improve or maintain the property.
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<br />3. Insnrance. 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 mottgage clause in favor of Lender. Lender will be named as loss payee or as tbe 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 mortgage insurance, Borrower
<br />agrees to maintain such insurance fi)r as long as Lender requires.
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<br />4. Property. Borruwer 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 trust 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 deed of trust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's writlen 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 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 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 takc
<br />possession and manage the property and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the properly, 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; Condomimums; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease if this deed of trust is on1casehold. 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 developmcnt.
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<br />9. Authority of Lender to Perform for Borrower. If Borrowcr fails to perform, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to be per/armed. Lender may sign Borrower's name or pay any amount if necessary for performance. 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 construction.
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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 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 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 trust or any obligation secured by this deed of
<br />trust or any prior 1lI01tgage or deed of trust, Lender may accelerate the maturity of the secured debt and demand inul1ediate payment and may 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 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 Lender invokes the power of sale, the Trustee shall first record in the office of the register of deeds of each county wherein the tlUst property or
<br />some part or parcel thereof is situated a notice of default containing the infonnation required by law. The TlUstee shall also mail copies of the notice of default to the
<br />Borrower, 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 trust property is not in any incorporated city or village and is used in fanning operations canied 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 Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Fanl1 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 />pareel of the property 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, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the tlUth 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 fees; (b) to all sums secured by this deed oftrust, 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 of trust may be tareelosed 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 state the reasonable cause for I.ender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or elaim for damages connected with a condemnation or other taking of all or any palt of the
<br />property. Such proceeds will be applied as provided in Covenant 1. This assignment is subject to the terms 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, I ,ender 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 oftlUst are joint and scveral. Any BOll'ower 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 Horrower's interest in the property to the Trustee under the terms
<br />of this deed OftlUSt. In addition, such a BOlfuwer agrees that the Lender and any other BOHower under this deed of trust may extend, modifY or make any other changes in
<br />the terms of this deed oftrust or the secured debt wifhout that Horrower's consent and without releasing that Borrower from the terms ofthis deed of trust.
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<br />The duties and benefits orthis deed of trust shall bind and benefit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unlcss otherwise required by law, any notice to Horrower shall be given by delivering it or by mailing it by certified mail addressed to BOI11)wer at tl~e
<br />property address or any other address that Borrower has given to Lender. Borrow.er will give any notice to Lender b~ certified mail to Lend~r's add~es~ on page. I of thIS
<br />deed or trust, or to any other address, which Lender has deSIgnated. Any other nottce to Lender shall be sent to I.ender s address as stated on page I ot tlllS deed 01 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. Transfer of the Property or a Bencficiallnterest in the Borrower. If all or any part ofthe property or any interest in it is sold or transferred without the Lender's
<br />prior wrillen consent, Lender may demand immediate payment of the secured debt. Lender may also de~l1al1d immedi~te p~lym~I~~ ifthe B~":ower is not a natural person and
<br />a beneficial interest in the BOHower is sold or transrelTed. However, Lender may not demand payment m the above SituatIOns If It IS prolllblted by federal law as of the date
<br />of this deed oftrust.
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<br />20. Reconveyance. When the obligation secured by tlus 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 or trust, the Trustee shall, upon wlitten request by the Lender, reconvey the tIust property. The Lender shall 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 satisfied. Borrower shall pay any recordatlon costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a copy ofthc substitution of trustee as required
<br />by applicable law, and then, by filing the substitution "I' trustee for record in the "tliee of the register of deeds of~ach count~ in whi7h the ttust property, or some part .
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, duttes, authonty and lJtle of the Trustee named 111 the deed of
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<br />trust and of any successor trustee.
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