|
<br />COVENANTS
<br />
<br />200707912
<br />
<br />1. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender reccivcs from
<br />Borrowcr or for Borrower's benefit will be applied first to any amounts Borrower owes on the sccured debt exclusive of interest or principal, second to interest, and then 10
<br />principal. If paltial 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.
<br />
<br />2. Claims Against Title. Borrowcr will pay all taxes, assessments, and other charges attributable to the property when due and will dcfend title to the property against
<br />any claims which would impair the lien of this deed of trust. Lender may require Borrower to assign any rights, claims or defenscs which BOITOwer may have against
<br />parties who supply labor or materials to improve or maintain the property.
<br />
<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Horrower's expense and for Lender's benent. 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 insnrance 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 insurance, Borrower
<br />agrees to maintain such insurance for as long as Lender requires.
<br />
<br />4. Property. Borrower will keep the property in good condition and make all repairs reasonably necessary.
<br />
<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including rcasonable attorneys' fees, if Borrower breaks any covenants 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 Covenanl 9 of this deed of trust.
<br />
<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contest, Borrower will not make or pemlit 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.
<br />
<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rents and profits of lhe 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 Lcndcr collccls shall be applied first to the costs of managing the property, including court costs and
<br />attorneys' lees, commissions to rental agents, and any other necessary related expenses. The remaining amount of rents will then apply to paymcnts on lhe secured debt as
<br />provided in Covenant I.
<br />
<br />8. Leaseholds; Condominiums; Planned Unit Developments. BOlTOwer agrees to comply with the provisions of any lease if lhis 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 Horrower's duties under the coven an Is, by laws, or regulations of
<br />lhe condominium or planned unit development.
<br />
<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 thc duties or
<br />cause them to be perfornled. Lender may sign Borrower's name or pay any amount if necessary for performance. If any construction on the property is disconlinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to protect I ,cnder's security interest in the property. This may include completing the construction.
<br />
<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.
<br />
<br />Any amounts paid by Lender to protect Lcnder's security intercst will be secured by this deed of trust. Such amounts will bc duc on dcmand and will bear intercst from the
<br />date of the payment until paid in full at the interest rate in effect on the secured debt.
<br />
<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 securcd by this deed of
<br />lrust or any prior mOltgage or deed of trust, Lender may accelerate the maturily of the secured debt and demand immediale payment and may invoke the power of salc and
<br />any olher remedies pennitted by applicable law.
<br />
<br />I I. Request for Notice of I>efault. It is hcreby requestcd that copies of the notices of default and sale be sent to each person who is a party hereto, at lhe address of each
<br />such person, as set forth berein.
<br />
<br />12. Power of Sale. If thc Lender invokes the power of sale, the Trustee shall first record in the ottice of the register of deeds of each county whercin thc trust property or
<br />some part or parcel thereof is situated a notice of dcfault containing the information required by law. The Trustee shall also mail copies of the notice of default to thc
<br />Borrower, to each person who is a palty hereto, and to other persons as prescribed by applicable law. Not less than onc month after the Trustee records the notice of default,
<br />or two months if the trust property is not in any incorporated city or village and is used in fanning operations carried on by the trustor, the Trustec shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann 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 />parcel of the property by public announcement at the timc and placc of any previously scheduled sale. Lender or its designee may purchase the property at any sale.
<br />
<br />Upon receipt of payment of the price bid, Trustee shall dclivcr to the purchaser Trustee's deed conveying the propcrty. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of lhe truth of the statements contained therein. Truslee shall apply lhe proceeds of the sale in the following order: (a) to all expenses of the sale,
<br />including, but not limitcd to, reasonable Trustee's fees, reasonable attorney's fccs and rcinstatement fees; (b) to all sums secured by this dced oftrust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
<br />
<br />13. Foreclosure. At Lender's option, this decd oftrust may be foreclosed in the mamler provided by applicable law for foreclosure of mortgages on real property.
<br />
<br />
<br />14. Inspection. Lender may enler the propcrty to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause for Lcnder's
<br />
<br />inspeclion.
<br />
<br />15. Condemnation. Borrower assigns to Lender the procccds of any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />property. Such procecds will be applied as provided in Covenant I. This assignment is subject to thc tenns of any prior security agreement.
<br />
<br />16. Waiver. By exercising any remedy available to Lcnder, Lender does nol give up any rights to later use any other remedy. By nol exercising any remedy upon
<br />Borrowcr's default, Lender does not waive any right to later consider the evenl a default if it happens again.
<br />
<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any Borrowcr who co-signs lhis
<br />deed oftrnst but docs not co-sign the underlying debt instruments(s) docs so only to grant and convey that Borrower's intcrest in the property to thc Trustee under the terms
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of trust may ex lend, modifY or make any other changes in
<br />the terms ofthis 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.
<br />
<br />Thc duties and benefits of this deed of trust shall bind and bcnefit the successors and assigns of Lender and Borrower.
<br />
<br />18. Notice. Unless otherwise required by law, any notice to Bon'Ower shall be given by delivering it or by mailing it by certificd mail addressed to Borrower at the
<br />propcrty address or any other address that Borrower has given to Lender. Horrower will give any notice to Lender hy certified mail to Lender's address on page I of thls
<br />deed oftrusl, or 10 any other address, which Lender has designaled. Any other notice to Lcnder shall be scnt to Lender's addrcss as stated on pagc I of tillS deed oftrus!.
<br />
<br />Any notice shall be deemed to hav.: been given to Bon'Ower or Lender when given in the manner stated above.
<br />
<br />19. Transfer of the Property or a Beneficial I nterest in the Borrower. If all or any part of the property or any.interest in it ~s sold or transferred without the I ,ender's
<br />prior writtcn consent, Lender may demand illlillediale paymcnt of the securcd debt. Lender may also demand immedl~te p~ym~n~ l~the B?r~ower ls.nol a natural pe.rson and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above Slluallons If It IS prohlblted by federal1aw as of the date
<br />of this deed of trust.
<br />
<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no Iluther obligation to make advance~ under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written requcst by the Lender, reconvey the trust property. The Lender sh~1I dchver to the Borrower, or to
<br />Borrower's successor in intcrest, the trust deed and the note or other evidence of thc obligation so satisfied. Borrowcr shall pay any rccordatlon costs.
<br />
<br />21. Successor Trustee. Lender, all.cnder's option, may remove Trustec and appoint a succcssor trustee by first, mailing a copy of lhe substitution oftmstee as required
<br />by applicable law, and t11en, by filing the substitution of trustec for record in the ottice of the register of deeds of ~ach count~ in which the tms~ property, or s~me part
<br />thereof~ is situated. The successor trustee, without conveyance ofthe property, shall succeed to all the power, dulles, authonty and tltle ofthc frustee namcd III the deed of
<br />
<br />trust and of any successor tJustee.
<br />
|