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<br />COVENANTS
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<br />200707578
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<br />I. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives hum
<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 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. Bom)wer 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 hust. Lender may require BOITOwer to assign any rights, elaims 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 aeeeptable to Lender at Borrower's expense and for Lender's benefit. 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 insuranee proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged property or to the secured deht. 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 property in good condition and make all repairs reasonably necessary.
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<br />5. Expenscs. Borrower agrees to pay all I,ender's expenses, ineluding reasonable attorneys' fees, if Borrower breaks any eovenants in this deed of trust or in any
<br />obligation secured by this deed of trust. 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 tlrst obtains Lender's written eontest, Borrower will not make or permit any ehanges 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 Mthe property. Unless Borrower and Lender have agreed otherwise in writing,
<br />Horrower may collect and retain the rents as long as Horrower is not in default. If Borrower dcfaults, Lender, Lender's agent, or a court appointed reeeiver may take
<br />possession and manage the property and collect the rents. Any rents Lender collects shall he applied I1rst to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary 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 perform all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominiUln 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. Lcndcr 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 proteet Lender's security interest in the property. This may include completing the construction.
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<br />Lender's failure to perlbrm 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 hy this deed oftrust. 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 effect on the secured debt.
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<br />10. Dcfault and Acceleration. If BOlTOwer fails 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 permitted by applicable law.
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<br />11. Request for Noticc of Dcfault. It is herehy requested that copies of the notices of default and sale be sent to each person who is a palty 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 shalll1rst 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 Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a palty hereto, and to other persons as preselibed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months ifthe trust propelty is not in any ineOlporated city or village and is used in faroling operations ean'ied 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 Borrower, shan sell the propetty at public auction to the highest hidder. If
<br />required by the Farm Homestcad Protection Act, Trustee shan offer the propetty in two separate sales as required hy 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 prcvionsly 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 shan deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />plima facie evidience of the truth of the statements contained therein. Trustee shan apply the proceeds of the sale in the fonowing 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 secured by this deed oftmst, and (c) the balance, if
<br />any, to the persons legany entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed of trust may be foreclosed in the maimer provided by applicable law for foreclosure of mortgages on real property.
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<br />14. Inspection. I.cndcr may enter the property to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause tor Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or elaim fur 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 1. 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 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 ifit happens again.
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<br />17. Joint and Several Liability; Co-si~ners; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instruments(s) docs 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 BOlTower under this deed of trust may extend, modify or make any other changes in
<br />the terms of this deed ol'trust or the secured deht 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 oflhis deed OftluSt shall bind and benelltthe 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 deliveling it or by mailing it hy certified mail addressed to Borrower at the
<br />property address or any other address that Borrower has given to Lender. Borrower win give any notice to Lender hy certified mail to Lender's addres~ on page 1 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 oftlus deed oftrust.
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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 Bencliciallnterest In the Borrower. If all or any part of the property .or any.interest in it ~s sold or transl~rred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also d~nand Immedl~te p~ym~nt I~the B~'r:ower IS not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment 1Il the above sttuatwns If It IS prolllblted hy fedemllaw as of the 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 obligati?~ to make advance~ under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the ttust property. I he Lender sh~lI deliver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and tile note or other evidence of the 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 lll'st, mailing a ?Opy ~fthe substitution oftmstee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office ofthe register of deeds of ~aeh eount~ III whl?h the trustproperty, or s~me part
<br />thereof, is situated. The successor Uustee, without conveyance of the property, shall succeed to all the power, duttes, authonty and tttle of the lrustee named III the deed of
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<br />trust and of any successor trustec.
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