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<br />COVENANTS
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<br />200707375
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<br />l. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Bonuwcr and Lender agree otherwise, any payments Lender receives from
<br />Borrowcr or for Borrower's benefit will be applied first to any amounts I3orrower owes on the secured debt exclusive of interest or principal, second to intcrest, and then to
<br />principaL Ifpartial 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 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 tins deed of trust. Lender may require Borrower to assign any rights, claims or defenses which 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 bene.11I. All Insurancc policies shall
<br />include a standard mortgage clause in lavor of Lender. Lender will be named as loss payee or as thc insured on any such insul1lnce policy. Any insul1lnce 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 mOltgage insurancc, Borrower
<br />agrees to maintain such insurance fbr as long as Lender requires.
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<br />4. Property. Bon'ower will keep the pmpetty in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. I3orrower agrees to pay all Lender's expenses, including reasonablc attorneys' tees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed oftrust. Bormwer 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 I3orrower I1rst obtains Lender's written contest, Borrower 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 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 tbe rents and prolits of the property. Unless Borrower and Lender have agreed othelwise in writing,
<br />Borrower may collect IUld 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 lirst to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expenses. TIle remaining amount of rents will then apply to payments on the secured debt as
<br />pt"Ovided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned lJnit Developments. Bonuwer agrees to comply with the provisions ofany 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 Gorrower fails to perlonn, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to be perfoffiled. I.ender 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, 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 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 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 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 of trust or any obligation secured hy this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accclerate the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies permitted by applicable law.
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<br />1 I. Request for Notice of Default. It is hereby requested that copies of the notices of default and sale he 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 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 infOllnation required by law. The Trustee shall also mail copies of the notice of delault to the
<br />BOITower, to each person who is a palty hereto, and to other persons as prescribed by applicable law. Not less than one month after the Trustee records the notice of debult,
<br />or two months ifthe trust property 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 hy applicable law. Trustee, without demand on Borrower, shall sell the propelty at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall oITer the property in two sepamte 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 payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidienee of the truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the fbllowing 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; (h) to all sums secured 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 of trust may be foreclosed in the manner pl"Ovided 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 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 proceeds of any award or claim for damages connected with a condemnation or other taking of all or any palt of the
<br />pl"Operty. Such proceeds will he applied as provided in Covenant I. TIlis 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 defaull, 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; Snccessors and Assigns Bound. All duties under this deed of trust are joint and several. Any Bon'Ower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instruments(s) does so only to grant and cOllvey that I3orrower's interest in the propelty to the Trustee under the terms
<br />ofthis deed of trust. In addition, such a Borrower agrees that tile 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 of trust 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 benelits of tins 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 noti.ce to Bon"ower shall be given by delivering it or by mailing it .by certi~ed mail a(~dressed to Borrower at tl~e
<br />propClty address or any other address that Borrower has given to Lender. Borrower Will give any notice to Lender by certified mail to Lender s add~es~ 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 01 tillS deed of 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 ahove.
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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 transf~rred without the L~nder's
<br />plior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand nnmedl~te p~ym,:"'~ If the B?~wer IS not a natural person and
<br />a beneficial interest in the Borrower is sold or transfelTed. However, Lender may not demand payment in the above SItuatIOns If It IS prohibited by federal law as of the date
<br />of this deed oftrust.
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<br />20. Reconveyance. When the obligation secured by tins deed of trust has been paid, and Lender has no further obligation to make advance~ under the instnnnents or
<br />agreements secured by this deed of tl1lst, the Trustee shall, upon written request by the Lender, reconvey the trust property. The Lender sh~1I dehver to the BOlluwer, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence ofthe obligation so satislied. 1301T0wer shall pay any recordation costs.
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<br />2 I. Successor Trnstee. I.ender, at Lender's option, may remove Trustee and appoint a successor tl1lstee by first, mailing a copy ~f the substitution of tl'llstee as required
<br />by applicable law, and then, by filing the substitution oftl'llstee fbr record in the office of the register of deeds of ~ach count~ in whl~h the trust propert~, or s~me palt
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, dulIes, authonty and tItle of the Trustee ndmed III the deed of
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<br />trust and of any successor tlUstee.
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