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<br />COVENANTS
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<br />200707247
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<br />1. Payments. Borrower agrccs to make all paymcnts on the secured debt when due. Unless Bonuwer and Lender agree otherwise, any payments Lender receives from
<br />Borrower or tor Borrower's benefit will be applied first to any amounts Borrower owes on the secured debt exclusive of interest or principal, second to intcrest, and thcn to
<br />principal. If partial prepayment of the secured debt occurs fur any reason, it will not reduce or excuse any scheduled payment until thc sccured dcbt is paid in full.
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<br />2. Claims Against Title. Bormwer will pay all taxcs, assessments, and other eharges attributable to thc property when due and will defend title to the property against
<br />any claims whieh would impair the lien of this deed of trust. Lender may require Borrower to assign any rights, claims or dcfcnscs whieh Bonuwer 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 terms acceptable to Lender at Borrower's expense and for Lender's benefit. All Insurance policies shall
<br />include a standard mOltgage clausc in favor of Lcndcr. Lendcr will bc named as loss payec or as the insured on any such insurance policy. Any insurance proceeds may be
<br />applicd, within I,ender's discretion, to either the restomtion or repair of the damaged property or to tbe 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 pmpelty in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Borrowcr agrccs to pay all Lcnder's expenses, including rcasonable attorneys' fces, if Borrower breaks any covenants in this dced of trust or in any
<br />obligation secured by this deed of trust. Borrower will pay these amounts to Lender as pmvided in Covenant 9 ofthis deed oftrust.
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<br />6. Prior Security 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 under any prior mortgage, deed of trust 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. Bonuwer assigns to Lender the rents and profits of the property. Unless Bonuwer 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 property and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the property, including eourt costs and
<br />attorneys' fees, commissions to rental agents, and any othcr nccessary related expenses. The remaining amount of rents will then apply to payments on the secured debt as
<br />provided in Covenant 1.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower 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 pcrform 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 130rrower's duties under this deed of trust, Lender may perform the duties or
<br />causc them to bc performcd. I ,en del' may sign Borrower's namc or pay any amount if nccessary for pertormance. If any construction on thc pmpcrty 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 per/orm 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 oflrust. 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 ciTed on the secured debt.
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<br />10. Default and Acceleration. If Borrowcr fails to make any payment when due or breaks any covenants under this dccd of trust or any obligation secured by this deed of
<br />trust or any prior mOltgage or deed of trust, Lender may accelerate the maturity of the secured debt and demand immediate payment and may invoke the powcr of sale and
<br />any other remedies pennitted by applicable law.
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<br />11. Request for Notice of Default. It is hereby requested that copies of the notices of default and sale be sent to cach 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 Trustee shall first record in the office of the register of deeds of each county wherein the trust property or
<br />some part or parcel thereof is situated a notice of default containing the infonnation required by law. The Tl1lstee shall also mail copies of the notice of default to the
<br />BOlluwer, to each person who is a party hereto, and to other persons as prescribed by applicable Jaw. Not Icss than one month after the Trustee records the notice of default,
<br />or two months ifthe trust property is not in any incorporated city or village and is used in farming 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 Bonuwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Farm 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 />parccl ofthe property by public announcement at thc time and place of any previously scheduled sale. Lender or its designee may purchase the pmperty at any sale.
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<br />Upon receipt of paymcnt of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's decd shall be
<br />prima facie evidience of the truth of thc statements contained therein. Trustce shall apply the proceeds of thc 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 fces 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 oftrust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real propcrty.
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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. Bonuwer assigns to Lender the pmceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />pmperty. Such proceeds will be applied as provided in Covenant I. This assignment is su~ject to the terms of any prior seculity agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender does not give up any lights 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 of tl1lst arc joint and several. Any Borrower who co-signs this
<br />deed of hust but does not co-sign the underlying debt instruments(s) does so only to grant and convey that l3orrower's interest in the proper,ty to the Trustee under the ter~s
<br />of this deed of trust. In addition, such a Bonuwer agrees that the Lender and any other Borrower under this deed of trust may extend, modI fy or make any other changes 111
<br />the terms ofthis deed of trust or the secured debt without that 130rrower's consent and without releasing that Borrower from the terms of this deed ohrust.
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<br />The duties and benefits of this deed of trust shall bind and benefit the succcssors and assigns of Lender and Bonuwer.
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<br />18. Notice. Unless otherwise required by law, any noticc to Borrower shall be given by dclivering it or by mailing it by certi~ed mail addressed to Bonuwer at t~e
<br />pmpmty address or any other address that Borrower has given to Lender. Borrower will give any notice to Lcnder by certified mall to Lendcr's addres~ 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 oftl1ls deed ot trust.
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<br />Any notice shall be deemed to have been given to Borrower or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a Beneficial Interest ill the Borrower. If all or any part of the property or any.interest in it ~s sold or transf~rred without the Lender's
<br />prior written consent, Lendcr may demand immediate paymcnt ofthe secured debt. Lender may also de~and immedl~te p~ym~n~ If the B?~ower IS not a natural person and
<br />a beneficial intm'est in the Bonuwer is sold or transferred. Howcver, Lender may not demand payment 111 the above Sltuahons If It IS prohIbIted by federal law as of thc date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advance~ under the instruments or
<br />agreelnCllts secured by this dced of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender sh~1I dehver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence oCthe obligation so satisfied. 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 or trustee as required
<br />by applicable law, and then, by filing the substitution of tmstee ft~r record in the office of the register of deeds of ~ach county in whi~h the trust prope~, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, duttes, authOrity and tttle of the Trustee named 1Il the deed of
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<br />trust and of any successor trustee.
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