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<br />COVENANTS
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<br />200707061
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<br />1. Payments. BOlTower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives fmm
<br />Borrower or for Horrower's benetlt will be applied nrst 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 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 Titlc. BOlTower will pay all taxes, assesslnents, and other charges attributable to the propelty when due and will dcfend title to the propclty against
<br />any claims which would impair the lien of this dced of trust. Lender may require BOITower to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply labor or materials to impmve or maintain the property.
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<br />3. Insurance. Horrower will kcep the pmperty insurcd under terms acceptable to Lender at Borrower's expense and for Lender's benefit. All Insurance policies shall
<br />include a standard mortgagc clause it~ favor of Lender. Lender will bc 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 either the restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insumnce, Borrower
<br />agrees to maintain such insumnce for as long as Lender rcquircs.
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<br />4. Property. BOlTower will keep the propelty in good condition and make all repairs rcasonably necessary.
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower breaks any covcnants in this deed of trust or in any
<br />obligation sccured by this deed of trust. Bormwer will pay thesc amounts to Lendcr 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 contcst, Horrower will not make or permit any changes to any prior security interests.
<br />Borrower will perform all of Horrower's obligations under any prior mortgage, deed of trust or other security agrecment, including Borrower's covenants to makc 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 rcnts as long as Borrower is not in default. If Horrower delimits, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and manage the propelty and collect the rents. Any rents Lender collects shall be applied first to thc costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other neccssary related expenses. The rcmaining amount of rents will then apply to payments on the sccured debt as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. BOlTOwer agrees to comply with the provisions 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, 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 Horrower fails to perform, any of Borrower's duties under this deed of trust, I.ender may perform the duties or
<br />cause them to be performed. Lender may sign HmTower'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 cxercising 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 intcrest will be securcd by this deed of trust Such amounts will be due on demand and will bear interest from the
<br />date of the payment WItH paid in full at the interest rate in efIect on the secured debt.
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<br />10. Default and Acceleration. If Borrower lails to make any payment when due or breaks any covenants under this deed of trust or any obligation 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 pennitted by applicable law.
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<br />] 1. 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 each
<br />such person, as set fmih 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 otTiee of the register of deeds of each county wherein the tlUSt property or
<br />some part or parccl thereof is situated a notice of default containing the infonnation required by law. The Tmstee shall also mail copies of the notice of default to the
<br />Bonower, 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 delillLlt,
<br />or two months if the tlUSt propelty is not in any incorporated city or village and is used in fanning opemtions carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicablc law. Trustee, without demand on Bommer, shall sell the property at public auction to the highest bidder. If
<br />required by 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 announcemcnt 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 price bid, Trustee shall deli vcr to the purchaser Trustee's deed conveying the property. The reeitials contained in Trustee's deed shall he
<br />prima facie evidience of the truth of the statements contained therein. TlUstee 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 sccured by this deed of trust, 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 oftrust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real propclty.
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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 />IS. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or allY paft of the
<br />property. Such proceeds will be 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 dcfault, Lendcr 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 seveml. 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 I3orrower's interest in the property to the Trustee under the terms
<br />of this deed of trust. hI addition, such a Botmwer agrees that the Lender and any other BOITower 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 debt without that Horrower's consent and without releasing that Borrower from the tcrms oflhis deed oftmst.
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<br />The duties and benefits of this deed oftrust shall bind and benefit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless othelwise required by law, any notice to Borrower shall be given by dclivering it or by mailing it by certi~ed mail addressed to Borrower at tl~e
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mall to Lender's addres~ on page 1 of thIS
<br />deed of trust, or to any other address, which Lender has designated. Any othcr notice to Lender shall be sent to Lender's address as stated on page 1 of thIS deed oftrust.
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<br />Any notice shall be deemed to have been given to BOlTower or Lcnder 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 ~s sold or trallsf~rred without the I ,ender's
<br />Plior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand l1nmedl~tc p~ymen~ I~ the B?r~ower IS not a natural person and
<br />a beneficial interest in the BOlTower is sold or transferred. However, Lender may not demand payment 111 the above SItuatIOns lilt IS prolllblted by fedemllaw as of the date
<br />of this dced of trust
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<br />20. Reconveyance. When the obligation secured by tlus deed of !tust has been paid, and Lender has no fmther obligation to make advanee~ under the instruments or
<br />agreements securcd by this deed of tmst, the Trustee shall, upon written request by the Lender, reconvey the trust propcrty. The Lender sh~11 dehver to the BOlTower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence ofthe obligation so satisfied. I3onower 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 ?Opy ?fthe substitution oftrustee as required
<br />by applicable law, and then, by filing the substitution of trustee forrecord in the of11ce of the register of deeds of ~ach count~ 111 wlu?h thelmst property, or s~me part
<br />thereof~ is situated. The successor tmstee, without conveyance of the propcrty, shall succeed to all the power, duhes, authonty and !ttle of the Trustee mimed wthe deed of
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<br />trust and of any successor trustce.
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