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<br />COVENANTS
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<br />200706132
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<br />1. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Bon-ower 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 secnred debt exelusive of interest or principal, seeond to interest, and then to
<br />prineipal. If paltial prepayment of the secured debt oeeurs for any reason, it will not reduce or excuse any seheduled 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 eharges attributable to the propelty when due and will defend title to the propelty against
<br />any claims which would impair the lien of this deed of trust. Lender may require BOlTOwer 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 tenns acceptable to Lender at Borrower's exp"nse and for Lender's benefit. All Insumnce 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 insurnnce policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the r"storation or repair of the dam<lged property or to the secured debt. [f L"nder r"quires mortgage insurance, Borrower
<br />agr"es 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 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 d"ed of trust or in any
<br />obligation secured by this deed of trust. Borrower will pay these amounts to L"nd"r 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, BOlTower will not make or pennit any changes to any prior security interests.
<br />Bon'ower will perform all of Borrower's obligations under any prior mortgage, deed oftrust or other security agreement, including Borrower's cov"nants 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 BOlTOwer and Lender hav" agreed othelwise in writing,
<br />BOlTOwer may collect and retain the rents as long as Borrower is not in default. [f Bon'ower defaults, Lender, Lender's agent, or a court <lppointed receiver may take
<br />possession and manage the property and collect the rents. Any rents L"nd"r collects shall be applied flrst to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental ag"nts, 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. Lcaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any kase if this deed of !lust is on leasehold. If this
<br />deed of !lust is on a unit in a condominium or a planned unit development, Bon1lwer will perfonn all of Bon'ower's duties under the covenants, by laws, or regulations of
<br />the condominium or plann"d unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to petionn, any of Bon1lwer's dutics under this d"ed of trust, Lender may perform the duties or
<br />cause them to be perfonned. Lender may sign Borrower's name or pay any amount if necessalY for perfonnancc. [f any eonshuction on the property is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessalY to protect Lender's security interest in the property. This m<lY include completing the construction.
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<br />Lender's failure to pelform 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 of trust. Such amounts will be due on demand and will bcar inter"st from the
<br />dat" 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 oblig<ltion secured by this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accelemt" the maturity of the secured debt and demand inunediate payment and may invoke the power of sale and
<br />any other remedies pennitted by applicable law.
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<br />11. Request for Notice of Default. [t is hereby requested that copies of the notices of default and sale be sent to each person who is a palty hereto, at the address of each
<br />such p"rson, 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 whcrein the tIllst property or
<br />some part or parcel thereof is situated a notice of default containing the infonnation required by law. The Trustee shall also mail copies of the notice of default to the
<br />BOHower, to each person who is a party hereto, and to other persons as prescribed by applicable law. Not less than one month aileI' the Trustee records the notice of default,
<br />or two months if the trust propelty is not in any incorporated city or village and is used in fanning operations carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without dcmand on Bon"ower, shall sell the propelty at public auction to the highest bidder. [I'
<br />required by the FanD Homestead Protection Act, Trustee shall offer the property in two sl:parate sales as required by applicabk law. Trustee may postpone sale ofull or any
<br />parcel of the property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the propelty 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 containcd in Trustee's deed shall be
<br />prima facie evidience of th" truth of the statements contained therein. Tlustee shall apply the proc""ds 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 of trust, and (c) the balance, if
<br />any, to the persons legally entitled 10 receive it.
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<br />13. Foreclosure. At Lender's option, this d"ed of trust may be foreclosed in the mamler provided by applicabk law for foreclosure of mOltgages on real propelty.
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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 Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proce"ds of any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />propelty. Such proceeds will be applied as provided in Covenant 1. 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 r"medy upon
<br />Borrower's defuult, Lender does not wai ve any right to later consider the event <I 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 de"d of trust are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instruments(s) does so only tu grdnt and convey that Borrower's inter"st 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 trust may extend, modify or make any other changes in
<br />the tenns of this deed of trust or the secured debt without that Borrower's consent and without rdeasing that Borrower from th" tenns of this deed of trust.
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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 Bon-ower shall be given by delivering it or by mailing it by celtitl"d mail addressed to BOlTower at the
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by celtitled mail to Lender's address on pag" I of this
<br />deed of tlUSt, 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 tlUSt.
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<br />Any notice shall be d"emed to have been given to Borrower or Lender when given in the mamler stated above.
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<br />19. Transfer of the Property or a Beneficial Interest In the Borrower. [I' all or any p81t of the propelty 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 payment if the Borrow"r is not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in th" above situations if it is prohibit"d by federal law as of the date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust has b""n paid, and Lender has no further obligation to make advances under the inshllments or
<br />agreements secured by this deed oftrust, the Trust"e shall, upon written request by the Lender, reconvey the trust property. The Lender shall ddiver to the BOlTOwer, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obligation so satistled. 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 by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by tiling the substitution of trustee for record in the office of the register of deeds of each county in which the trust property, or s01l1e palt
<br />thereof, is situat"d. The successor tlUstee, without conv"yance of the property, shall succ""d to all the power, dutks, authority and title of the Trustee named in the de"d of
<br />trust and of any successor trustee.
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