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<br />COVENANTS
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<br />2007Q5060
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<br />I. Payments. Borrower agrees to make all payments on the secured debt whcn due. Unless Borrowcr and Lender agree otherwise, any payments Lender receives from
<br />Borrower or for Ilorrower's benefit will bc applied first to any amounts Borrower owes on the secured debt exclusive of interest or plincipal, sccond 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 A~ainst Title. BOll'owcr will pay all taxcs, assessments, and other charges attributable to the propctty when duc and will dcfend title to the propelty against
<br />any claims which would impair thc licn of this dccd of tlUSt. Lender may require Borrower to assign any rights, claims or dcfenses which BOll'ower may have against
<br />parties who supply labor or materials to improve or maintain the property.
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<br />3. Insurance. BOll'ower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benefit. All Insuranee polieies shall
<br />include a standard mortgage clause in favor of Lender. Lender will be named as loss payce or as the insured on any such insurance policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the rcstoration or repair of the damaged property or to the securcd dcbt. If Lendcr requircs mOltgagc insurancc, Borrowcr
<br />agrces to maintain such insurance for as long as Lender requires.
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<br />4. Property. BOll'ower will keep the propelty in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. BOll'ower agrccs to pay all Lender's expenses, including reasonablc attorneys' fees, if Horrower 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 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 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 of the property. Unless Borrower and Lender have agreed othcrwise in writing,
<br />Borrower may eollect and retain thc rents as long as Borrower is not in default. If Borrower defaults, 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 be applied first 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 dcbt as
<br />provided in Covenant 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 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 developmcnt.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to pcrform, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to bc performed. Lender may signllorrower's name or pay any amount if necessary for performance. If any construction on the property is discontinucd 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 pertorm 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 securcd by 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 mte in effect on tbc sccured 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 OftlUSt or any obligation secured by this deed of
<br />tlUSt or any prior m0l1gage or deed of trust, Lender may acceleratc the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any othcr remedies pennitted by applicable law.
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<br />11. Request for Notice of Default. It is hereby rcquestcd 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 Lcnder invokes the power of sale, the Tmstec shall first rccord in the office of the register of deeds of cach county wherein the tlUSt property or
<br />some part or pareel thereof is situated a notice of detault containing the infonnation required by law. The Trustee shall also mail copies of the notice of detault to the
<br />Borrower, to each person who is a party hereto, and to other persons as prescribed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the trust property is not in any incorpomted city or village and is uscd in fanning opemtions carricd on by the tlUstor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribcd by applicable law. TlUstee, without demand on Bonuwer, shall sell the propelty at public auction to the highest biddct.. If
<br />required by the Fann Homestead Protection Act, Trustcc shall offer the property in two sepamte salcs as required by applicable law. Trustce 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 propelty at any sale.
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<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchascr Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained therein. Trustee shall apply the procecds 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 fees and reinstatement fees; (b) to all sums secured by this deed of trust, and (c) the balance, if
<br />any, to the persons lcgally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed oftlUst may be foreclosed in the manner provided by applicahle law for foreclosure of mortgagcs 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 lor Lcnder's
<br />inspection.
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<br />15. Condemnation. BOll'ower assigns to Lender the proceeds of any award or claim for damages connected with a condenmation or other taking of all or any part of the
<br />pl"Operty. Such pl"Oceeds will be applied as provided in Covenant I,. This assignment is subject to the terms of any plior security agreement.
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<br />]6. Waiver. By exercising any remedy available to Lender, Lender does not give up any rights to later use any other remcdy. By not exercising any remedy upon
<br />Borrower's default, Lender does not waive any right to later consider the event a detault if it happens again.
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<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound, All duties under this deed of trust are joint and severn!. Any Borrower who co-signs this
<br />deed of tlUst but does not co-sign the underlying debt instrumcnts(s) does so only to grant and convey that Borrower's interest in the propcrty to the Trustee under the terms
<br />of this deed of tlUSt. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of trust may extctld, modifY or make any other changcs in
<br />the terms of this deed oftmst 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 bcnefit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless otherwise required hy law, any notice to Bormwer shall be given by deliveling it or by mailing it by certified mail addressed to Borrower at thc
<br />pmperty address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's addrcss on page I of this
<br />deed OftlUSt, 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 deed oftmst.
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<br />Any notice shall be deemed to have hcen given to BorTOwer or Lender when given in the mamler stated above.
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<br />] 9. Transfer of the Property or a Beneficial Interest In the Borrower. If all or any part of the property or any interest in it is sold or transferred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand immedi~te p~ym~n~ i!"the B?r:ower is not a natural person and
<br />a bencficial interest in the Borrower is sold or transfelTed. However, Lender may not demand paymcnt III the ahove SItuatIOns If It IS prohIbited by fedemllaw as of the date
<br />of this deed oftrust.
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<br />20. Reeonveyance. When the obligation secured by this deed of tlUst has been paid, and Lender has no further obligation to make advance~ under the instlUments or
<br />agreements secured by this deed OftlUSt, the TlUstee shall, upon written request by the Lender, reconvey the trust property. The Lender shall dehver to the BOlTOwer, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obligation so sattstied. Horrower shall pay any recordation costs.
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<br />21. Successor Trustee. I ,ender, at Lender's option, may remove Trustee and appoint a successor tlUstee by first, mailing a copy of the substitution oftlUstee as required
<br />by applicable law, and then, by filing the substitution oftlUstec for record in the otlice of the register of deeds of ~ach county in whi~h the tlUs,t,property, or s~me palt
<br />thereof, is situated. The successor trustcc, without conveyance of the propelty, shall succeed to all the power, dul1cs, authonty and title of the llUstee namcd III the deed of
<br />trust and of any successor trustee.
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