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<br />COVENANTS
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<br />200708710
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<br />l. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives from
<br />H~rr~wer or for ~orrower'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 />pnnelpal. 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. Borrower will pay all taxes, assessments, and other charges attributable to the propel1y 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 Bormwer to assign any rights, claims or defenses which BOlTower 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 acceptable to Lender at Horrower's expense and for Lender's benel1t. All Insurance policies shall
<br />incl~de a s~l~dard tnor~gag~ c1a~se in la~or of Lender. L~nder will b.e named as loss payee or as the insured on any such insumnce policy. Any insumnce proceeds may he
<br />applied, wlthm Lender s dIscretIOn, to eIther the restoratIOn or repaIr of the damaged property or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insumnce for as long as Lender requires.
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<br />4. Property. Borrower will keep the property in good condition and lIIake all repairs reasonably necessary.
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<br />5. Expenses. Uorrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Horrower breaks any covenants in this deed of trust or in any
<br />obligation secured hy this deed of trust. Bon'Ower will pay these amounts to Lender as provided in Covenant 9 oflhis deed of trust.
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<br />6. Prior Security Interests. Unless Horrower first obtains Lender's written contest, Horrower will not make or permit any changes to any prior security interests.
<br />Borrower will perfoml 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 BOlTOwer and Lender have agreed otherwise in writing,
<br />Horrow~r may collect and retam the rents as long as Horrower 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 he applied llrst 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 payments on the secured deht as
<br />pmvided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Bormwer agrees to comply with the pmvisions 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 development.
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<br />9. Authority of Lender to Perform for Borrower. If Horrower fails to per/orm, any of Horrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for per/onnance. If any ,construction on the property is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to protcct Lender's security interest in the propcrty. This may include completing thc 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 Lender to protect Lender's security interest will be secured by this deed of trust. Such amounts will be due on demand and will bear intcrcst from the
<br />date ofthe payment until paid in full at the interest mte in effect on the secured 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 of trust or any obligation secured by this deed of
<br />trust or any prior m0l1gage or deed of trust, Lender may accelemte the maturity of the securcd 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 />II. Request for Notice of Default. It 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 f0l1h herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shall first record in the office of the register of deeds of each county wherein the tlUSt pmpel1y or
<br />some pat1 or parccl thereoF is situated a notice of delault containing the infonnation required by law. The TlUstee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a party hereto, and to otber 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 used in farming operations canied on by the tlUstor, 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, shall sell the propel1y at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the property in two sepamte sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the pmperty by public allllOuneement at the time and place of any previously scheduled sale. Lender or its designee may purchase the property at any sale.
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<br />Upon receipt of paymcnt 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 evidienee of the truth of the statements contained therein. Trustee shall apply the proceeds 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 lees and reinstatement fees; (b) to all sums secured hy this deed oftrust, and (c) the balance, if
<br />any, to the persons legally entitled to recei ve it
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<br />13. Foreclosure. At Lender's option, this deed oftrust may be /oreclosed in the manner pmvided 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 givcs Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or elaim for 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 I. This assignment is su~iect to the terms of any prior security agreement.
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<br />16. Waiver. By exereising any remedy available to Lender, Lender does not give up any rights to later use any other remedy. By not exercising any remedy upon
<br />Horrower'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 Bon-ower who co-signs this
<br />deed of trust but docs not co-sign the underlying debt instruments(s) does so only to grant and convey that I3orrower's interest in the property to the Trustec under the terms
<br />of this deed OftlUSt. In addition, such a Bon'Ower agrees that the Lender and any other Borrower under Ihis deed OftlUSt may extend, modify or make any other changes in
<br />the terms ofthis deed of trust or the secured debt without that I3orrower's consent and without releasing that Horrower from the terms of this dced OftlUSt.
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<br />The duties and bene/Its of this deed OftlUSt shall bind and benefit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless otherwise required by law, any notiec to Borrower shall be given hy delivering it or by mailing it by cel1ified mail addressed to Borrower al the
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lendcr by certified mail to Lender's add~ess on page I 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 of thIS 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 Beneflciallnterest in the Borrower. If all or any part ofthe property .or anY,interest in it ~s sold or transf~rred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand Immedl~te p~ym~~~ I~the B?~wer IS not a natunll person and
<br />a henefieial interest in the Borrower is sold or transfened. However, Lender may not demand payment in the above sltuallons dltlS prohIbIted by federal law 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 tlUSt has been paid, and Lender has no further obligatio~ to make advanee~ under the instlUments or
<br />agreements secured by this deed of tlUSt, the Trustee shall, upon wlitten request by the Lender, reconvey the tlUSt property. 1 he Lender shall deltver to the Bon'Ower, or to
<br />Borrower's successor in intercst, the trust deed and the note or other evidence ofthe obligation so satisfied. Borrower shall pay any recordatIon costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustce and appoint a successor trustee by lIrst, mailing a copy of the substitution oftlustee 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 count~ in whi~h the tlUSt property, or some part .
<br />thereot is situated. The successor tlUstee, without conveyance of the pmperty, shall succeed to all the power, dultes, authonty and tItle of the Trustce named 111 the deed of
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<br />trust and of any sueccssor trustee.
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