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<br />COVENANTS
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<br />200707372
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<br />1. Payments. BOIrower agrees to make all payments on the secured deht whcn due. Unless Borrower and Lender agree otherwise, any payments Lendcr 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 oeeurs 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. Bon1Jwer will pay all taxes, assessments, and other charges attributable to the property when due and will defend title to the propelty against
<br />any claims which would impair thc lien of this deed of trust. Lendcr may requirc Borrower to assign any lights, 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 l.ender's benel1t. All Insurance policies shall
<br />include a standard mortgagc clausc in favor of Lender. Lender will be namcd as loss payce or as the insured on any such insumncc policy. Any insumnce proceeds may be
<br />applied, within Lender's discretion, to either the restomtion or repair of the damaged property or to the securcd debt. If Lender requires mortgage insumnce, BOn1lwer
<br />agrees to maintain such insumnce 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. E%penses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fces, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this dced oftlUSt. 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 wi\l not make or permit any changcs to any prior security intercsts.
<br />Borrower will perform all of Borrowcr'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. Borrower assigns to Lender the rents and profits ofthe property. Unless BOIrower and Lender have agrecd 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 propelty and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the property, including court costs and
<br />attomeys' fees, commissions to rental agents, and any other necessary related expenses. The remaining amount of rents will then apply to payments on the sccured dcbt as
<br />provided in Covcnant I.
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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 planncd unit development, Borrower will perform all of Borrower's duties under the covcnants, by laws, or regulations of
<br />the condominium or planned unit developnlent.
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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 pcrformcd. 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, Lcnder may do whatever is necessary to protect Lcnder's security interest in the property. This may include completing the construction.
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<br />Lcnder's failure to perform 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 I ,ender's security interest will be secured by this deed oftrust. Such amounts will be due on demand and will bear interest from the
<br />date ofthe payment until paid in full at the interest mte in effect on the secured debt.
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<br />10. Default and Acceleration. [1' Bon1Jwer fails to make any payment when due or breaks any covenants under this deed of tlUSt or any obligation secured by this dced of
<br />tlUSt or any prior mortgage or deed of trust, Lender may aece\emte 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 for Notice of Defau[t. It is hereby requested that copies oftbe 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 herein.
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<br />12. Power of Sale. If the Lender i.nvokes the power of sale, the Trustee shall first record in the olliee of the register of deeds of each county wherein the tlUSt property or
<br />some part or parcel thereof is situated a notice of default containing the information required by law. The Trustee shall also mail copies of the notice of defilult to the
<br />Bonuwer, to each person who is a party hereto, and to other persons as prescribed by applicable law. Not less than one Inonth after the Trustee records the notice of default,
<br />or two months if the tlust property is not in any incorpomtoo city or village and is used in farming opemtions can-ied on by the trustor, the Tlustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. TlUstee, without demand on Bon1Jwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Tlustee shall offer the propClty in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the property by public alU10uneement 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 paymcnt of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall bc
<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, reasonable attorney's fces and reinstatemcnt fees; (b) to all sums secured by this deed of trust, and (e) thc balance, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Foreclosure. At Lcnder's option, this deed of tlUSt may be foreclosed in the lnanner provided by applicable law for foreclosure of mortgages on real property.
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<br />14.lnspeetion. Lendcr 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. 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 />pmperty. Such pmeeeds will be applied as provided in Covenant I. This assignment is subject to the terms 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 default, Lender does not waive any right to later consider the event a default if it happens again.
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<br />17. .Ioint aud Several Liability; Co-signers; Snccessors aud Assigus Bound. All duties under this deed of tlUSt are joint and several. Any Borrower who co-signs this
<br />deed OftlUSt but docs not eo-sign the underlying debt instruments(s) docs so only to grant and convey that Borrower's intercst in the property to the Trustee under the terms
<br />ofthis decd oftlUst. In addition, such a BOlTower agrees that the Lender and any other Borrower under this deed of trust may extend, modify or make any other changes in
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms of this deed of trust.
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<br />The duties and benefits of this deed of trust shall bind and benefit 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 delivering 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 Lender. Borrower will give any notice to Lender by certified mail to Lendcr's address on page, I of this
<br />deed of tlUSt, 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 1 of thIs decd 01 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 Beneflciallnterest in the Borrower. [fall or any part of the property.or any}nterest in it ~s sold or transl~rred without the Lender's
<br />Plior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand nlllnedl~te p~ym~n~ I~ the B~~wer IS not a natuml person and
<br />a benel1cial interest in the Bon-ower is sold or tmnsfelTed. However, Lender may not demand payment tIlthe above situations If It IS prohibIted by federal law as of the date
<br />of this deed of tlUSt.
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<br />20. Reconveyance. When the obligation secured by this deed of tmst has bcen paid, and Lender has no further obligation to make advance~ under the instruments or
<br />agreemCllts secured by this deed of trust, the TlUstee shall, upon written request by the Lender, reconvey the trust property. The Lender sh~lI dehver to the Borrower, or to
<br />Horrower's successor in intercst, the trust dced and the note or other evidence of the obligation so satisfied. Borrower shall pay any recordatlon costs.
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<br />21. Successor Trnstee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a copy of the substitution oftlustee as required
<br />by applicable law, and then, by filing the substitution oftlUstee for record in the ofllce of the register of deeds of ~ach count~ in whi~h the tlUSt propelty, or s~me part
<br />thereof, is situated. The successor tlUstee, without conveyance of the property, shall succeed to all the power, dutIes, authonty and title of the TlUstee named III the deed of
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<br />trust and of any successor tmstee.
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