|
<br />COVENANTS
<br />
<br />200706285
<br />
<br />I. Payments. BOl1DWer 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 first 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 tor any reason, it will not reduce or excuse any scheduled payment until the secured debt is paid in full.
<br />
<br />2. Claims Against Title. BOlT""",r will pay all taxes, assessments, and other charges attributahle to the property when due and will defend title to the propelty against
<br />any claims whieh would impair the lien of this deed of trust. Lender may require BOl1uwer to assign any rights, claims or defenses which BOll'ower may have against
<br />parties who supply lahor or materials to improve or maintain the property.
<br />
<br />3. Insurance. Borrower 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 mOltgage clause in favor of Lender. Lender will be named as loss payee or as the insured on any such insumnce policy. Any insumnce pmcccds may be
<br />applicd, within Lender's discretion, to either the restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insurance, BOllower
<br />agrees to maintain such insurance for as long as Lender requircs.
<br />
<br />4. Property. BOllOwer will keep thc property in good condition and make all repairs reasonably necessary.
<br />
<br />5. Expenses. 130rmwer agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Horrower hreaks any covenants in this deed of trust or in any
<br />obligation secured by this deed oftmst. BOllOwer will pay these amounts to Lender as pmvided in Covenant 9 of this deed oftmst.
<br />
<br />6. Prior Security Interests. Unless Borrower first ohtains Lender's written contest, Borrower will not make or permit any changes to any prior security interests.
<br />Borrower will perform all of Borrowcr's ohligations under any prior mortgage, dccd of trust or other security agreement, including BOll'ower's covenants to makc payments
<br />when due.
<br />
<br />7. Assignment of Rents and Profits. Bormwer assigns to Lender the rents and pmfits 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 pmperty 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 related expenses. The remaining amount of rents will then apply to payments on the secured debt as
<br />provided in Covenant I.
<br />
<br />8. Leaseholds; Condominiums; Planned Unit Developments. BOllower agrees to comply with the pruvisions of any lease if this deed of trust is on leasehold. 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, hy laws, or regulations of
<br />the condominium or planned unit development.
<br />
<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perf{JtIn the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any construction on the propelty 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.
<br />
<br />Lender's failure to perform will not preclude Lender from exetcising any of its other rights under thc law or this dced of trust.
<br />
<br />Any amounts paid by I ,ender to protect Lender's security 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 elTect on the secured debt.
<br />
<br />10. Default and Acceleration. If BOllOwer fails to make any payment when due or breaks any covenants under this deed of ttust or any obligation secured by this deed of
<br />tlUSt or any Plior lllOltgage or deed of tmst, 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 pel1nitled by apritcable law.
<br />
<br />11. Request for Notice of Default. It is herehy 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 person, as set fOlth herein.
<br />
<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shall first record in the ollice of the register of deeds of each county wherein the trust prupelty or
<br />some putt or parcel thereof is situated a notice of default containing the infollnation required by law. The Tmstee shall also mail copies of the notice of default to the
<br />BOllOwer, to each person who is a patty hereto, and to other persons as prescribed hy applicahle law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the ttust propelty is not in any incorporated city or village and is used in 11111ning 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 demand on BOllower, shall sell the property at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the propelty in two separate sales as rcquired by applicable law. Tmstee may postpone sale of all or any
<br />parcel of the propclty hy puhlic announcement at the time and place of any previously scheduled sale, Lender or its designee may purchase thc property at any sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The reeitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth 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 Trustee's fees, reasonahle attorney's fees and reinstatement fees; (h) to all slllns secured by this deed of trust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
<br />
<br />13. Foreclosure. At Lender's option, this deed oftmst may he foreclosed in the manner provided by applicable law for foreclosure of mortgages on real property.
<br />
<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.
<br />
<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any palt of the
<br />propelty. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the terms of any prior security agreement.
<br />
<br />16. Waiver. By exetcising 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 detault ifit happens again.
<br />
<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any BOllOwer who co-signs this
<br />deed ofttust but does not co-sign the underlying deht instruments(s) does so only to grant and convey that Borrower's interest in the property to the Trustee under the tcrms
<br />of this deed of trust. In addition, such a BOlTower agrees that the Lender and any other Bonuwer under this deed of trust may extend, modify or make any other changes in
<br />the terms of this deed of trust or the secured deht without that Borrower's consent and without rcleasing that Borrower from the tcrms of this deed of trust.
<br />
<br />The duties and benel1ts of this deed oftmst shall bind and benefit the successors and assigns of Lender and BOl1DWer.
<br />
<br />18. Notice. Unless otherwise required by law, any notice to BOffilwer shall he given hy delivering it or hy mailing it by certined mail addressed to BOlTower at the
<br />propelty address or any other address that Borrower has given to Lender. Borrower will give any notice to Lendcr by certified mail 10 Lender's address on page I 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 of this deed of trust.
<br />
<br />Any notice shall be deemed to have heen given to Borrower or Lender when given in the manner stated above.
<br />
<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 demand imlllediate payment if the BOl1Dwer is not a natural pe,rson and
<br />a benel1cial interest in the BOlTower is sold or transferred. However, Lender may not demand payment in the above situations if it is pmhibited by federal law as oj the date
<br />of this deed of trust.
<br />
<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no tlnther obligation to make advance~ under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the tmst property. The Lender sh~1l dehver to the BOll'Ower, 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 recordatIOn costs.
<br />
<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor tmstee by first, mailing a copy of the substitution oftmstee as required
<br />hy applicable law, and then, hy filing the substitution of trustee tbr record in the office of the register of deeds of ~ach count~ in whi~h the tlUSt pmpClty, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the pmpelty, shall succeed to all the power, dultes, authollty and tttle of the Trustee named In the deed of
<br />
<br />trust and of any successor trustee.
<br />
|