|
<br />COVENANTS
<br />
<br />200708179
<br />
<br />1. Payments. Bonuwcr agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives from
<br />Borrowcr 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 paymcnt until the secured debt is paid in full.
<br />
<br />2. Claims Against Title. BOffi.1Wer will pay all taxes, assessments, and other charges attributable to the propelty when due and will defend 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 defenses which Borrower may have against
<br />parties who supply labor or materials to improve or maintain the propcrty.
<br />
<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lcnder at Borrower's cxpense and for Lender's benefit. All Insurance policies shall
<br />include a standard mOltgage clause in favor of Lender. Lender will be named as loss payee or as the insured on any such insurance policy. Any insurance proceeds may be
<br />applicd, within Lender's discretion, to either the restoration or rcpair of the damaged pmperty or to the secured debt. If Lender requires mmtgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lender requires.
<br />
<br />4. Property. Borrowcr will keep the property in good condition and makc all repairs reasonably necessary.
<br />
<br />5. Expenses. Borrower agrccs to pay all Lendcr's cxpcnses, including reasonable attorneys' fces, if Borrowcr brcaks any covcnants in this deed of trust or in any
<br />obligation secured by this deed oftrust. Borrower will pay these amounts to Lender as provided in Covenant 9 ofthis deed oftrust.
<br />
<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contest, Horrower will not make or permit any changes to any prior security interests_
<br />Borrower will pcrform all of Borrower's obligations under any prior mortgage, deed of trust or other security agrecment, 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 prol1ts of the property, Unless Borrower and Lender have agreed otherwise in writing,
<br />Bormwer may collect and rctain the rents as long as Borrower is not in default. If Borrower defaults, Lender, Lender's agent, or a court appointed rcccivcr 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 />attorneys' fees, commissions to rental agents, and any other necessary related expenses. The remaining amount ofrents will then apply to payments on thc securcd dcbt as
<br />provided in Covenant 1.
<br />
<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any leasc if this deed of trust is onlcaschold. 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 eovcnants, by laws, or rcgnlations of
<br />the 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 the duties or
<br />cause thcm to be perlbrmed, Lender may sign Borrowcr's name or pay any amount if neecssary 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 propcrty. This may include complcting 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 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 of the payment until paid in full at the interest rate in effect on the secured debt.
<br />
<br />10. Default aud Acceleration. If Borrower 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 matulity of the secured dcbt and demand inunediate payment and may invoke the power of sale and
<br />any other remedies permitted by appheable law.
<br />
<br />11. Request for Notice of Default. It is hereby requested that copies of thc notices of default and sale be sent to each person who is a party hcrcto, at the address of each
<br />such person, as set forth herein.
<br />
<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustec shall first rccord in the office of the register of deeds of each county wherein the trust property or
<br />some part or parcel thercof is situated a notice of default containing the infonnation required by law. The Trustee shall also mail copies of the notice of delault to the
<br />Honuwer, to each person who is a party hereto, and to othcr persons as prescribed by applicable law. Not less than one month aner the Trustee records the notice of default,
<br />or two months if the tlUSt pmperty is not in any incorporated city or village and is used in fanning operations eanicd on by the trustor, the Trustee shall givc public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without dcmand on Borrower, shall sell the pmperty at public auction to the highest biddcr. If
<br />rcquired by the Farm Homestead Protection Act, Trustee shall offer the property in two separate sales 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 propclty at any sale.
<br />
<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 evidience of the truth of thc statements contained therein. Trustee shall apply the proceeds of the sale in the tbllowing 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 legally entitled to receive it.
<br />
<br />13. Foreclosure. At Lender's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real propcrty.
<br />
<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause Ibr Lcnder's
<br />inspection.
<br />
<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim tor damages connected with a eondcmnation or other taking of all or any part of thc
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the terms of any prior security agreement.
<br />
<br />16. Waiver. By exercising any remcdy 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 thc event a default if it happcns again.
<br />
<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under this deed oftrust are joint and several. Any Borrower who co-signs this
<br />deed oftrust but does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the prope~y to the Trustee under thc tcrms
<br />of this deed of trust. In addition, such a BOITower agrees that the Lender and any other Borrower undcr tlIis deed of trust may extend, modify or make any other changes 111
<br />thc terms of this deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms ofthis deed of trust.
<br />
<br />The duties and benefits oftlIis deed of trust shall bind and benefit the successors and assigns of Lender and Borrower.
<br />
<br />18. Notice. Unless othcrwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certi~ed mail addrcssed to Borrower at t~e
<br />propelty address or any other address that Borrower has givcn to Lender. Borrower will give any notice to Lender by certilled mall to Lender's add~es~ on pagc I oftlus
<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 pagc I ot thiS deed of trust.
<br />
<br />Any notice shall be decmed to have been given to Borrowcr or Lender when given in the manner stated above.
<br />
<br />19. Transfer of the Property or a Beneticiallnterest in the Borrower. If all or any part of the property or any.interest in it ~s sold or transf~rred without the Lender's
<br />prior wlitten consent, Lendcr may demand ilfUnediale paymcnt of the secured debt. Lender may also de~and immedl~tc p~ym':'t1~ I:thc B?~ower IS,not a natural pC,rson and
<br />a beneficial intercst in the Borrowcr is sold or transferred. Howevcr, Lender may not demand payment III the above SituatIOns If It IS prohIbIted by lederallaw as of the date
<br />ofthis deed of trust.
<br />
<br />20. Reconveyance. When the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advance~ under lhc instruments or
<br />agreements secured by this deed of trust, the Tl1lstee shall, upon written request by the Lcnder, reconvcy the tl1lst property. Thc Lender sh~1I deliver to thc Borrower, or to
<br />Borrower's sueecssor in interest, the trust dccd and the note or other evidence of the obligation so satisfied. Borrower shall pay any recordation eosts.
<br />
<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by I1rst, mailing a ~opy of the substitution ofll1lstee as required
<br />by applicable law and then by t11ing the substitution oftrustee for record in the office of the register of deeds of each county 111 wluch the hust property, or some part ,
<br />thereof, is situated. The su~cessor trustec, without conveyance of the property, shall succeed to all the power, dutics, authority and title ofthc Trustee namcd in the deed at
<br />
<br />trust and of any successor trustcc.
<br />
|