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<br />COVENANTS
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<br />200706263
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<br />1. Payments. Bon'ower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives from
<br />Bon1lwcr 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 />plincipaL 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 trost. Lender may require Borrower to assign any rights, claims or defenses which Borrower may have against
<br />palties who supply labor or materials to improve or maintain the property.
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<br />3. Insurance. BOlTower will keep the propelty insured under terms acceptable to Lender at BOITower'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 cither the restoration or repair of the damaged property or to thc 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 necessmy.
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<br />5. Expenses. Bon1lwcr agrccs to pay all Lcndcr's expcnscs, 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 ofthis deed of trust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's wlitten contest, Borrower will not make or pennit any changes to any prior security interests.
<br />Borrower will perfonn all of Bon'ower's obligations under any prior mortgage, deed oftrost 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 take
<br />possession and manage the propcrty and collect the rents. Any rents Lendcr collccts shall be applied first to the costs of managing the property, including court costs and
<br />attomeys' fees, commissions to rcntal agcnts, and any othcr ncccssary 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; Condominiums; Planned Vnit Developments. BOll'ower agrees to comply with the provisions of any lease if this deed of trust is on leasehold. If this
<br />deed of bust is on a unit in a condominium or a planned unit development, Borrower will perfonn 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 deed of tIust, Lender may perfonn the duties or
<br />cause them to be perfonned. 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 />canied 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 />Lendcr's failure to perlonn 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 seculity interest will be secured by this deed of trust. 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 Bon'Ower fails to makc any payment when due or breaks any covenants under this deed of trust or any obligation secured by this deed of
<br />tlUSt or any prior mOlt gage or dccd of !Iust, Lcnder may accelerate the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies pennitted 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 eaeh person who is a party hereto, at the address of eaeh
<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 TlUstec shall first record in the oflice of the register of deeds of each county wherein the trust property or
<br />-- some part or parcel thefOOris sltuatoo lI-iWUcemdeThuR 'conlatnmg ttie ihforillaUonrequllW 6y.aw:u The lrustee'8liiiIl'alSOinaifcojiieS' ofthCfn6tice' ofdefliIiifl6t1ie
<br />Borrower, to each person who is a party hereto, and to other persons as preseribed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months i I' the tlUSt property is not in any incorporated city or village and is used in fanning operations camed on by the trustor, the Tlustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on BOITOwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, TlUstee shall offer the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel ofthe pmpetty by public announeemcnt 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 Plice bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />Plima 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 attomey's fees and reinstatement fees; (b) to all sums secured by this deed of trust, and (e) 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 foreclosed in the mamIeI' provided by applicable law for foreclosure of mortgages on real property.
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<br />14. Inspection. Lcnder may enter the propClty 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, BOIl'ower assigns to Lender the pmceeds of any award or claim for damages connected with a condellUlation or other taking of all or any patt of the
<br />propelty. Such proceeds will he applied as provided in Covenant I. 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 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 oftrost are joint and several. Any Borrower who eo~signs this
<br />deed of trust but does not co~sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the property to the Trustee under the terms
<br />of this deed of trust. In addition, such a BOlTOwer agrees that the Lender and any other Borrower under this deed of trust may extend, modity 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 releasing that Borrower from the terms 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 othelwise requircd by law, any notice to Borrower shall be given by delivering it or by mailing it by certified mail addressed to Borrower at the
<br />propelty address or any othcr address that BOIl'ower has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's address on page I of this
<br />deed oftlUSt, or to any othcr address, which Lender has designated. Any other notice to Lender shall be sent to Lender's address as slated on page I of this deed of trust.
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<br />Any noticc shall be deemed to have been given to Borrower or Lender when given in the manner statcd 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 propelty or any interest in it is sold or transfen'ed without the Lender's
<br />prior written consent, Lcnder may demand immediate payment of the secured debt. Lender may also demand immediate payment if the Borrower is not a natural person and
<br />a beneficial interest in the BOlTower is sold or transferred. However, Lender may not demand payment in the above situations ifit is prohibited by federal law as of the date
<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 instlUments or
<br />agreements sccured by this deed of trust, the TlUstee shall, upon written request by the Lender, reconvey the trust property. The Lender shall deliver to the Borrower, or to
<br />Borrower's successor in intcrcst. the trust deed and the note c: other evidence of the obligation so satisfied, Bon'Ower shall pay any recordation costs.
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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 oftlUstee as required
<br />by applicable law, and then, by filing the substitution oftlustee for record in the office of the register of deeds of each county in which the trust property, or some part
<br />thereof, is situated, The successor trustee, without conveyance of the property, shall succeed to all the power, duties, authority and title of the TlUstee named in the deed of
<br />trust and of any successor tlUstee.
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