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<br />COVENANTS
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<br />200706688
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<br />1. Payments. Borrower agrees to makc all payments on the secured dcbt when due. Unless Borrower and Lendcr agree otherwise, any payments Lcndcr receives from
<br />Borrower or f()r Borrower's benefit will be applied first to any amounts Borrower owes on thc sccured debt exclusive of interest or principal, second to interest, and then to
<br />principal. If paltial prepayment of the securcd debt occurs for any reason, it will not reduce or excuse any schedulcd payment until the secured debt is paid in full.
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<br />2. Claims Against Title. Borrower will pay all taxcs, 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 decd 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 improvc or maintain the property.
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<br />3. Insurance. Borrower will kecp 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 mortgage clause in tilvor of Lender. Lcnder will be named as loss payee or as the insured on any such insuranec 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 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 reasonablc attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed of trust BOIwwer will pay these amounts to Lender as provided in Covenant 9 of this dced of trust.
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<br />6. Prior Secnrity Interests. Unless Borrower first obtains Lender's written contest, Borrower will not make or permit any changes to any prior security interests.
<br />Borrower will perform all of Borrower's obligations undcr any prior mortgage, deed of trust or other security agreement, including Borrower's covenants to makc payments
<br />when due.
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<br />7. Assig'lment of Rents and Profits. Borrower assigns to Lender the rents and profits of the property. Unless Borrower and Lender have agreed othelwise in writing,
<br />Horrower may collect and retain the rents as long as Borrower is not in dcfault. If Borrower defaults, Lendcr, l.cnder's agent, or a court appointed receiver may take
<br />possession and manage thc property and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the propelty, 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.
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<br />8. Leaseholds; Condominiums; Planned Unit Developmeuts. BOll'ower agrees to comply with the provisions of any lease if this dced of trust is on leasehold. If this
<br />deed of trust is on a unit in a condominium or a planned unit devclopment, Borrower will perform 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 decd of trust, Lender may perform the dutics or
<br />cause them to be performed. Lender may sign Borrowcr's name or pay any amount if necessary for performance. If any construction on the property 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.
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<br />Lender's failure to perform will not preclude Lender from excrcising any of its other rights under thc 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 hear intercst (rom the
<br />date of the payment until paid in full at the interest rate in efIect on the secured debt.
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<br />10. Default and Acceleration. If Borrower fails to make any paymcnt when due or breaks any covenants under this deed of trust or any ohligation secured by this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accelerate the maturity of the secured deht and demand immediate payment and may invoke the power of sale and
<br />any other remedies permitted by applicahle law.
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<br />II. Request for Notice of Default. It is hereby requcsted that copies of the notices of default and sale be sent to each pcrson who is a patty hereto, at the address of each
<br />such person, as set fOlth herein.
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<br />12. Power of Sale. If the Lender invokes thc powcr of sale, the Trustee shall llrst record in the office of the register of deeds of each county whcrein the trust 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 />BOll'OWer, to each person who is a party hereto, and to other persons as presetibed hy applicable law. Not less than one month aller the Trustee records the notice of default,
<br />or two months if the trust property is not in any incOlporated city or village and is used in fanning operdtions carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in thc manner prescrihed by applicable law. Trustee, without demand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />requircd hy the Fann 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 scheduled sale. Lender or its designee may purchase the property at any sale.
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<br />Upon receipt of paymcnt of thc price bid, Trustec shall deliver to the purehascr Trustee's deed conveying the property. The recitials contained in Trustee's dccd shall bc
<br />prima facie evidience ofthe truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses ofthe 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 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 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 betorehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Coudemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />property. Such proceeds will bc applicd as provided in Covenant I. This assignment is subject to the tCl1'llS 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 />Horrower's default, Lcnder 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 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 Borrower agrees that the Lender and any other Borrower under this dced of trust may extend, modify or makc any other changes in
<br />the tcrms 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 oftrust.
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<br />Thc duties and benefits of this deed of trust shall bind and bencfit 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 deliveting it or by mailing it by certified mail addressed to Borrower at the
<br />property address or any other address that Borrower has given to Lcnder. Borrower will give any noticc to Lender by certified mail to Lender's addres~ on page I of this
<br />deed of trust, or to any other address, which Lender has dcsignated. Any other notice to Lender shall be sent to Lender's address as stated on page I of thiS deed oftrust.
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<br />Any notice shall be deemed to have been given to BOll'ower or Lendcr when given in the manner statcd above.
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<br />19. Transfer of the Property or a Beneficial Interest in tlte Borrower. If all or any part ofthc property or any.interest in it is sold or transj~rred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand llnmedl~te p~ym~n~ I~ the BOl'~'ower IS not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. Howcver, Lender lllay not demand payment in the above situations If It IS prohIbIted by federal law as of the date
<br />ofthis deed of trust.
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<br />20. Reconveyance. Whcn the obligation secured by this deed of trust has bcen paid, and Lender has no further obligation to make advance~ undcrthe instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lendcr, reconvey the trust property. The Lendcr sh~ll dehver to the Borrower, or to
<br />Borrowcr's successor in interest, the trust deed and the note or othcr evidence of the obligation so satisfied. Borrower shall pay any rccordatlon costs.
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<br />21. Successor Trnstee. Lender, at Lender's option, may remove Trustce and appoint a successor tlustee by first, mailing a copy of the substitution oftrustee as rcquired
<br />by applicablc law, and then, by l11ing the substitution of trustee for record in the office of the register of deeds of :ach county in whi?h th~ trust propelty, or s(~me part .
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, dutIes, authonty and tItle 01 the Trustee named 111 thc deed of
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<br />trust and of any successor trustee.
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