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<br />COVENANTS
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<br />200706065
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<br />I. 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 bc applicd tlrst to any amounts Borrower owes on the secured debt exclusive of intcrest or plineipal, sccond 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 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 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. Insurance. Borrower will keep the property insured under tcrms acecptable to Lender 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 Lcnder'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 for as long as Lender requires.
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<br />4. Property. Borrower will keep the property in good condition and make all repairs reasonably necessafY.
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<br />5. Expenses. Borrower agrees to pay all Lender's expcnscs, including reasonable attorneys' lees, 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 written contest, Borrower will not makc or permit any changes to any prior security interests.
<br />Borrower will perform all of Borrower's ohligations under any prior mortgagc, dced of trust 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 Bonuwer and Lender have agreed otherwise in writing,
<br />Borrower may collect and retain the rcnts 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 I1rst to the costs of managing the propelty, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessafY rclated cxpcnses. 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. 130nuwer agrees to comply with the provisions of any lease if this deed of trust is on leasehold. Tfthis
<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 devclopment.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower faits to perform, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount ifnecessafY for performance. If any construction on the propelty is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessafY 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 excrcising 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 Lendcr's sccurity interest will be securcd by this deed ortrust. Such amounts will be due on demand and will bear intercst from the
<br />date ofthe 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 oftlUst or any obligation secured by this dced of
<br />tmst or any prior mortgage or deed of tlUSt, 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 pel1nitted by applicable law.
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<br />II. Request for Notice of Default. It is hereby requested that copies of the notices of detimlt and sale be sent to each person who is a party hereto, at the addrcss of each
<br />such person, as set forth herein.
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<br />12. Power of Sale, If the Lender invokes the powcr of sale, the TlUstee shall first record in the office of the register of deeds of each county wherein the tru~t property or
<br />some part or parcel thereof is situated a notice of default containing the infonnation requircd by law. The Trustee shall also mail copies of the nolice of default to the
<br />Bonower, to each person who is a palty hereto, and to other persons as prescribed by applicable law. Not less than onc month after the Trustee records the notice of default,
<br />or two months if the trust propcrty is not in any incOlporated city or village and is used in fanning operdtions carried on by the tru~tor, the Trustec shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Tmstee, without demand on BOlTOwer, shall sell the property at public auction to the highcst bidder. If
<br />required by the Fann Homcstead Protection Act, Trustee shall otrer the property in two separate sales as required by applicable law. Tmstee may postpone sale of all or any
<br />parcel of the property by public announcement at the time and placc of any previously scheduled sale. Lender or its designce may purchase the propelty at any sale.
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<br />Upon receipt of paymcnt of the price hid, Trustee shall deliver to the purchaser Trustec's deed conveying the property. The rccitials contained in Trustee's deed shall be
<br />prima facie evidience of the tmth of the statements contained therein, Tmstee 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 Trustcc's fces, reasonable attorney's lees and reinstatcment fees; (b) to all sums secured by this dced 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 dced of trust 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 state the reasonable cause lor Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for dalllages cOlUlected with a condemnation or other taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant 1. TIns assignmenl 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 of trust are joint and several. Any Borrower who co-signs tlns
<br />deed oftrust but does not co-sign the underlying debt instruments(s) docs so only to grant and eonvey that Borrower's interest in the proper.t~ to the Trustee under the te~s
<br />of this deed oftlUst. In addition, such a Borrower agrecs that the Lender and any other Borrower under this deed of trust may extend, moddy or make any other changes III
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from thc terms of this deed oftrust.
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<br />The dutics and benefits of this deed of trust shall bind and benefit the succcssors and assigns of Lcnder 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 by mailing it by certiHed mail addressed to BOl1'ower at the
<br />property address or any other address that Borrower has given to Lcnder. Borrower will give any notice to Lender by ccrtitled mail to Lcnder's addres~ on page, 1 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 OftlllS deed oj trust.
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<br />Any notice shall be deemed to have been given to Bormwer or Lender when given in the maImer 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 i.s sold or transl~rrcd withoutthc I.~nder's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~lland lInmedl~te p~ym~n~ l~the B?l1'ower IS not ~ natural person and
<br />a benetlcial interest in the Borrower is sold or transferred. Howevcr, Lender may not demand paymcnt III the above sltuahol1s If It IS plOlubtted by fedeldllaw as of the datc
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<br />of this deed of trust.
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<br />20. Reconveyance. Whcn the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advances under the ins~lUments or
<br />agreements secured by this deed of trust, the TlUstee shall, upon written request by the Lender, reconvey the trust propelty. The Lender shall dehvcI to the Bonowel, or to
<br />Borrower's Sllcccssor in interest, thc trust deed and the note or other evidence of the obhgal1on so sahsfied. Borrower shall pay fillY rccordal1on costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may removc Trustee and appoint a successor trustee by I1t:t, mailing a ~opy ~f the substitution oftlUstee as required
<br />by applicable law, and then, by tiling the substitution of trustee for record in the oftice of the register of deeds of ~ach county III wht~h th~ hust pr~perty, or s~me part
<br />thereof, is situated. The successor trustec, without conveyance of the property, shall succecd to all the power, duttes, authol1ty and tttle 01 the Trustee named III the deed of
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<br />trust and of any successor tmstee.
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