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<br />COVENANTS
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<br />200707327
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<br />1. Payments. Bonuwer 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 seeured debt exclusive of interest or principal, second to interest, and then to
<br />principal. If partial prepayment of the secured debf 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 tlllSt. Lender may require Bormwer to assign any rights, claims or defenses which Borrower 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 bene/It. 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 either the restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insumnce, BOffi1wer
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Propcrty. BOffilwer 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 reasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed oftrust. Borrower will pay these amounts to Lender 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 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 oftrust 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 Horrower 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 pl'Operty, including eOUlt costs and
<br />attorneys' fees, commissions to rental agents, and lmy other necessary related expenses. The remaining amount ofrents will then apply to payments on the seeured debt as
<br />provided in Covenant 1.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Bon'ower 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, Horrower will perform all of Horrower'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 trust, Lender may perform 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 property is discontinued or not
<br />carried on in a reasonable manner, I ,ender 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 exercising any of its other rights under the law or this deed of ttust.
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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 bear interest from the
<br />date of the payment until paid in full at thc interest rate in effect on the secured debt.
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<br />10. Default and Acceleration. If Borrower fails to make any payment when due or breaks any covenants under this deed oftrost or any obligation secured by this dced 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 power of sale and
<br />any other remedies pennitted by applicable law.
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<br />II. Request lor Notice of Default. It is hcreby 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 forth berein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shall first record in the oftice of the register of deed~ of each county wherein the tnlst property or
<br />some part'or pareel 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 tbe
<br />Borrower, to each person who is a party hereto, and to other persons as prescribed by applicable law. Not less than one month afier the Trostee records the notice of default,
<br />or two months ifthe trust property is not in any incorpordted city or village and is used in fanning operations carried on by the trustor, the Trostee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Tlustee, without demand on Borrower, shall sell the propelty 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. Trostce may postpone sale of all or any
<br />pareel of the property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the propelty at any sale.
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<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recilials contained in Trustee's deed shall be
<br />prima facie evidienec of the truth of the statements conk 'lined therein. Trustce shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale,
<br />including, hut not limited to, reasonable Trustee's fees, reasonable attorney's fees and reinstutement lees; (b) to all sums secured by this deed of(rust, and (c) the halance, if
<br />auy, to the persons legally entitled to recei ve 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 property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Horrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. BOffilwer 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 be applied as provided in Covenant I. This assigrunent is subject to the tenns of any prior security agreement.
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<br />16. Waiver. By cxercising any remedy availablc 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, I ,ender does not waive any right to later consider the event a default if it happens again.
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<br />17. .Jolnt and Several Liability; Co-signers; Successors and Assigns Bound. All duties under tltis deed of ttust are joint and several. Any Borrower who co-signs tltis
<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 Bonower under this deed of trust may extend, lllodify or make any other changes in
<br />the terms of this deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms ofthis deed oftrust.
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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 otberwise required hy law, any notice to Borrower shall he given by de1ivCling it or by mailing it by certified mail addressed to Bonower at the
<br />property address or any other address that Borrower 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 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 tlllS deed of trust.
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<br />Any notice shall be deemed to have been given to Bormwer or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a Beneficial Intercst In the Borrowcr. If all or any part ofthe property or any.interest in it ~s sold or transf~rred without the Lender's
<br />prior written consent, Lendcr may demand immediate payment of the secured debt. Lender may also de~nand immedl~te p~ym?I~~ t~the B?r~wer IS not a natuml person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment III the above SItuatIOns If It IS prolllblted by federal law as of the date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by tins deed of trust has becn paid, and Lender has no further obligation to make advanee~ under the instruments or
<br />agreements secured by this deed of tlllSt, the Trustee shall, upon written request by thc Lender, reconvey the trust property. The Lender shall deltver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence ofthe 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 ofthc substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of tlllstee f<.1r record in the ofllee of the register of deeds of ~ach count~ in which the tlllSt property, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, duttes, authonty and tttle of the Trustee named III the deed of
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<br />trust and of any successor trustee.
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