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<br />COVENANTS
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<br />200708395
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<br />1. Payments. BOITower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will bc applicd first to any amounts Borrower owes on the secured debt exclusive of interest or principal, second to interest, and then to
<br />principal. If pattial prepaymenl of the secured debt occurs lur any reason, it will not reduce or excuse any scheduled paymcnt until the secured debt is paid in full.
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<br />2. Claims Against Title. 130nuwer will pay all taxes, asscssments, 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 trust. Lender may require BOITOwer to assign any lights, claims or defenses which BOITower may have against
<br />patties who supply labor or materials to improve or maintain the property.
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<br />3. Insurance. Borrower will keep the property insurcd under terms acccptable to Lender at Borrowcr's cxpense 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 insurance proceeds may be
<br />applied, within Lender's discretion, to cither the restoration or repair of the damaged propelty or to the secured debt. 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. BOlTOwer will keep the property in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower breaks any covenants in this decd of trust or in any
<br />obligation secured by this decd ofttust. Borrower will pay these amounts to Lender as provided in Covenant 9 ofthis deed of trust.
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<br />6. Prior Security Interests. Unlcss 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 agrecment, including Borrower's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Prollts. Borrower assigns to Lender the rents and profits of the property. Unless BOlTOwer and Lender have agreed otherwise in writing,
<br />Borrower may collect and retain the rents as long as Borrowcr 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 l1rst to the costs of managing the property, including eonrt 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 I.
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<br />8. Leaseholds; Condominiums; Plauned 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, Borrowcr will pcrform all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominium or planned unit devclopment.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Borrower's duties undcr this deed of trust, I,cnder may perform the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for pcrformance. If any construction on the property is discontinued or not
<br />carried on in a rcasonablc manner, Lender may do whatever is necessary to protect Lender's security intercst in thc 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 Lendcr to protect Lender's security interest will be secured by this deed ortrust. Such amounts will be due on demlmd and will bear interest from the
<br />date ofthe payment until paid in full at the interest rate in cffect on the secured debt.
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<br />10. Default and Acceleration. If BOITower lhils to make any paymcnt 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 pennitted by applicable law.
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<br />11. Request for Notice of Default. lt is hereby requested that copies of the notices of default and sale be sent to each person who is a party hereto, at the address of each
<br />such person, as set forth hercin.
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<br />12. Power of Sale. If thc Lender invokes the power of sale. thc Trustee shall tirst record in the officc of the register of deeds of each county wherein the trust pl'Operty or
<br />some palt or parcel thereof is situated a notice of default containing the information required by law. The Trustee shall also mail copies of the notice of default to the
<br />BOITOwer, to each pcrson who is a party hereto, and to other pcrsons 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 incorporated city or village and is used in fanning operations carried 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 BOlTower, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the pmpelty in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the propcrty by public announcement at the time and place of any previously scheduled sale. Lender or its dcsignee may purchase the propelty at any sale.
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<br />Upon receipt of paymcnt of the price bid, Trustee shall deliver to the purchaser Trustcc's deed conveying the property. The recitials containcd in Trustee's deed shall be
<br />prima facie evidience ofthe truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenscs of the sale,
<br />including, but not limited to, reasonable Trustee's fees, reasonablc attorney's fees and reinstatemcnt fees; (b) to all sums sccured by this deed oftrust, and (c) the balance, if
<br />any. to the persons legally entitled to reeei ve it.
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<br />13. Foreclosure, At Lender's option, this decd oftmst may be foreclosed in the m81mer provided 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 statc the reasonable causc for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the
<br />propetty. Such pmceeds will be applied as provided in Covenant 1. Tlus assignment is subject to the terms of any prior security agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender does not givc up any rights to later use any othcr remedy. By not exercising any remcdy upon
<br />Borrower's default, 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; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any Borrower who co-signs this
<br />dced of trust but does not co-sign the undcrlying debt instruments(s) does so only to grant and convey that Borrower's interest 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 B()1TOWer under this deed of trust may extend, modify or make any other changes in
<br />the terms ofthis dced of trust or thc secured debt without that Borrower's consent and without releasing that Borrower lrom the terms ofthis deed of trust.
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<br />The duties and benetits of tlus deed of trust shall bind and benefit the successors and assigns of Lender and BOITOwer.
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<br />18. Notice. Unless otherwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certil1ed mail addressed to BOlTlmer at the
<br />property address or any otherjddress that Borrower has given to Lender. Borrower will give any notice to Lender hy certified mail to Lender's add~es~ on page, I of this
<br />deed oftrust, or to any other address, which Lender has designated. Any other notice to Lendcr shall be sent to Lender's address as statcd on page I ot thiS deed 01 trust
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<br />Any notice shall be deemed to have been given to BOITOwer or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a Beneficlallnterest In the Borrower. If all or any part ofthe property or any interest in it is sold or transt~rred without the Lendcr's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lcnder may also de~nand immedi~te p~ym?n~ if the B?~ower ls.not a natural, person and
<br />a beneficial intercst in the Bonuwer is sold or transferred. However, Lender may not dcmand payment 11l the above SttuatlOns If It IS prolllblted by Jederallaw 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 tfilSt has been paid, and Lender has no further obligation 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 trust property. The Lender shall deltver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence o[(he obligation so satisfied. Borrower shall pay any recordatIon costs.
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<br />21. Sucecssor Trustee. Lender, at I.ender's option, may remove Trustce and appoint a successor trustee by l1rst, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register of deeds of ~ach count~ in whi?h the ttust propetty, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all thc power, duttes, authonty and tItle of the Trustee named 111 the deed of
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<br />trust and of any successor trustee.
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