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<br />200706128
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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 />Bon-ower or for Borrower's benefit will be applied first to any amounts Borrower owes on the secured debt ellclusive 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 ellcuse any scheduled payment until the secured debt is paid in full.
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<br />COVENANTS
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<br />2. Claims Against TItle. Borrower will pay all tillles, ilssessments, and other charges attlibutable to thc propcrty when due and will defend title to the propelty against
<br />ilny claims which would impair the lien of this dccd of bust. Lender milY require Borrower to assign any rights, claims or dcfenses which Borrower milY have against
<br />parties who supply labor or materials to improve or maintain the pmperty.
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<br />3. Insurance. Borrower will keep the property insured under tenns acceptilble to Lender at Borrower's ellpensc and for Lender's benefit. Alllnsul1l1lce 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 insurancc 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 insu111nce for as long as Lender requires.
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<br />4. Property. Borrower will keep the property in good condition and make all repilirs reasonilbly necessary.
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<br />5. Expenses. BOITOwer agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower breaks any covenants in this decd of trust or in any
<br />obligiltion secured by this deed of trust. Borrower will pay these ilmounts 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 Lendcr's wtitten contest, Borrower will not make or pennit any changes to any prior security interests.
<br />BOITOwer will perform al I of Borrower's obligations under any prior mortgage, deed of tlUSt or other security agrecmcnt, including Borrower's covenants to make payments
<br />when due. .
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<br />7. Assignment of Rents and Profits. BOITOwer assigns to Lender the rents and profits of the property. Unless Borrower and Lender have agreed otherwise in writing,
<br />Borrowcr may collect and retain the rents as long as Bon"Ower is not in default. If Borrower defaults, Lender, Lender's agent, or a cOUl1 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 property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary relatcd 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 of any lease if this deed of hust is on leasehold. If this
<br />deed of trust is on a unit in a condominium or a planned unit development, Borrower will perfonn all of Bon'ower's duties undcr thc covenilnts, 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 perfonn, any of Borrower's duties under this deed of trust, Lender may perli)11n the duties or
<br />cause them to be perfonned. Lender may sign Borrower's name or PilY any amount if necessary lor perfonnance. If ilny construction on the propel1y is discontinued or not
<br />cilrned on in a reasonable marmer, Lender may do whatever is necessalY to protect Lender's security interest in the propelty. This may includc completing the constluction.
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<br />Lender's failure to perform will not preclude Lender from exercising ilny 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 of trust. Such amounts will be due on demilnd and will bear interest from thc
<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 filils to make any payment when due or breaks any covenants under this deed of trust or any obligiltion 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 permitted by applicilble 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 eilch
<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 thc hust property or
<br />some part or parcel thereof is situated il notice of default containing the infonnation required by law. The Tlustee shall also mail copies of the notice of default to the
<br />Bon"Ower, to each person who is a party 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 lhe trust propelty is not in any incorporated city or villilge and is used in fanning oper<llions carned on by the ttustor, the Trustec shaH give public notice of
<br />sale to the persons and in the milnner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the property by public announcement at the time and place of any previously schcduled 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 Tlustee's deed conveying the propeliy. The recitiills contained in Trustee's deed shall be
<br />prima facie evidience of the truth 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 balilnce, 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 foreclosed in the manner provided by applicilbJe lilw for foreclosure of m0l1gages on reill propel1y.
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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 Jar Lender's
<br />inspection.
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<br />15. Condemnation. Bon"Ower assigns to Lender the procecds of any aWilrd or claim for damages connected with il condemnation or other taking of all or ilny palt of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the tenns of any plior seculity agreement.
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<br />16. Waiver. By exercising any remedy aViliIable to Lender, Lender does not give up ilny 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 hilppens again.
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<br />17. Joint and Several Liability; Co-sIgners; Successors and Assigns Bound, AH duties under this deed ofttust are joint and several. Any Bonower 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 Bon'ower's interest in the property to the Trustee under the tenns
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of ttust may cxtend, modify or make any other changes in
<br />the tenns of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Bonuwer from the telms of this deed ofttust.
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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 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 celtified mail addrcssed to Borrower at the
<br />propelty address or any other address thilt Borrower has given to Lender. Bonower will give any notice to Lender by certified mail to Lcnder's address on pilge I of this
<br />deed of trust, or to any other address, which Lender has designated. Any other notice to Lender shall be scnt to Lender's ilddress as stated on pagc I of this deed oftlust.
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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 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 />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demilnd immediate payment if the Borrower is not a natural person and
<br />a bcneficial interest in the Borrower is sold or transferred. However, Lendcr may not demand payment in the above situations if it is prohibited by fede11111aw as of the date
<br />of this deed ofttust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust has bcen paid, and Lender has no further obligation to make ildvances under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust propel1y. The Lender shilll deliver to the Borrower, or to
<br />Bonower's successor in interest, the hust deed and the note or other evidence of the obligiltion so satisfied. Bon"Ower shaH pay ilny recordation costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and ilPpoint a successor trustcc by first, mililing a copy of the substitution ofhustee as required
<br />by applicable law, and then, by I1ling the substitution ofttustee for record in the office of the register of decds of each county in which the hust property, or some pal1
<br />thereof, is situated. The successor trustee, without conveyance of the property, shaH succeed to all the power, duties, authority ilnd title of the Trustcc named in the deed of
<br />trust ilnd of any successor trustee.
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