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<br />COVENANTS
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<br />200709..28
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<br />1. Payments. Bonuwer agrees to make all payments on the secured debt when due. Unless Bonuwer and Lender agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will be applicd first to any amounts Borrower owes on the secured debt exclusive of interest or principal, second to interest, and then to
<br />plincipal. 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 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 Borl'Ower to assign any rights, claims or defenses which Borrower may have against
<br />patties who supply labor or materials to improve or maintain the propelty.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense 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 either the restoration or repair of the damaged property or to the securcd debt. If Lender requires m0l1gage insurance, Borrower
<br />agrees to maintain such insuranee fi)r as long as Lender requires.
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<br />4. Property. Borrower will keep the pl'Operty 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 deed of trust or in any
<br />obligation seeured 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 Secnrity 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 perfonn 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. Bon'ower assigns to Lender the rents and profits of the property. Unless Borrower and Lender havc agrecd othcrwise in writing,
<br />Borrower may collect and retain the rcnts as long as Borrower 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 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 relTlaining amount of rents will then apply to payments on the securcd debt as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned lJnit Developments. BOl1'Ower agrees to comply with the provisions of any lease if this deed of trust is on leasebold. 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 cunduminium ur planned unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Borrower's duties under this deed uf trust, Lender may perform the duties or
<br />cause them to be perJormed. Lender may sign Burruwer's name ur pay any amuunt if necessary for perfurmance. If any cunstlUetion on the property is discontinued or not
<br />carried on in 1I 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 perform will not preclude Lender from exercising any of its other rights under the law ur tins deed of trust.
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<br />Any amounts paid by Lender tu protect Lender's security interest will be secured by this deed of trust. Such amuunts will be due un dem!md and will bear interest fmm the
<br />date of the payment until paid in full at the interest rate in effect on the secured debt.
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<br />10. Default and Acceleration. If BOlTOwer fails to make any payment when due or breaks any covenants under this deed oft11lst or any obligation secured by this deed of
<br />tlUSt or any prior mOltgage or deed of tlUSt, Lender may accelerate the maturity of the secured debt and demand immediate payment !l11d may invoke the power of sale and
<br />any other remedies permitted 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 tu each persun who is a party heretu, at the address uf each
<br />such person, as set Jorth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee shalllirst reeurd in the uJl1ce of the register of deeds of each county wherein the tlUSt pmperty or
<br />some part 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 />BOll'ower, to each person who is a party hereto, and to uther persuns as prescribed by applicable law. Not less than one munth after the Trustee records the notice of default,
<br />or twu months if the trust property is not in any incorporated city or village and is used in fanning operatiuns camed on by the tlUStor, the TlUstee shall give public notice uf
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Burrower, shall sell the propelty at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, TlUstee shall of IeI' 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 time and place of any previuusly scheduled sale. Lender or its designee may purchase the property at any sale.
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<br />Upon reecipt of payment of the price bid, Trustee sha1l deliver to the purchaser Trustee's deed conveying the property. The reeitials contained in Trustee's deed shall be
<br />prima facie evidience uf the truth of the statements contained therein. TlUstee shall apply the proceeds of the saJe in the folluwing order: (a) to all expenses of the sale,
<br />including, but not limited tu, 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.
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<br />13. Foreelosure. At Lender's option, this deed of trust may be Joreclosed in the manner provided by applicable law for foreclosure of murtgages on real propelty.
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<br />14. Inspection. Lender may enter the propelty to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. Burruwer assigns to Lender the proceeds of any award or claim for damages connected with a cundemnation or other taking uf all or any patt of the
<br />property. Such proceeds will be applied as provided in Covenant 1. Tins 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 give up any rights to later use any other remedy. By not exercising any remedy upun
<br />Borruwer's default, I ,en del' 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 tlUSt arc joint and several. Any Borrower who co-signs this
<br />deed uf trust 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 tu the Trustee under the terms
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any other BUll'ower under this deed of ttust may extend, modify or make any other changes III
<br />the terms of this deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower from the temlS of this deed uftrust.
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<br />The duties and benefits of tins deed of trust shall bind and benefit the successors and assigns of Lender and Burruwer.
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<br />18, Notice. Unless utherwise required by law, any notice to BOll'ower shall be given by delivering it or by mailing it by cettified mail addressed to Burruwer a~ t~e
<br />property address or any other addres,; that Borrower has given to Lender. Horrower will give any nutice to Lender b~ cerliJ1ed mail to Lender's add~'es~ on page I ot thiS
<br />deed of tmst, or to any other address, which Lender has designated. Any other nutice to Lender sha1l be sent to Lender s address as stated on page I uJ thIS deed oftrust.
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<br />Any notice shall be deemed tu have been given tu BOl1'Ower or Lender when given in the manner stated above.
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<br />19. Transfer ofthe Property or a Benenciallnterest in the Borrower. If all or any part ofthe property .01' any.interest in it ~s, sold ur transf~rred without the Lender's
<br />prior written consent, Lender may demand immediate payment uf the secured debt. Lender may also d~nand Ill1l11edl?te p~ym~n~ If the B?~'ower IS,not a natural pe:so~l and
<br />a beneficial interest in the Burruwer is sold or transfell'ed. However, Lender may not demand payment III the above sltuattons If It IS prohibIted by tederallaw as of the date
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<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by tIns deed of tmst has been paid, and Lender has no futther obligation to make advanee~ under the ins~ruments or
<br />agreements secured by this deed uf tmst, the Tlustee shall, upun writte~ reques~ by the .Le~der, reco~lVey the trust property. The Lender shall dehver to the Bonower, ur to
<br />Borrowcr's sueeessur in interest, the trust deed and the note or other eVIdence uJ the obltgatlon su satIsfied. Borrower shall pay any recordatwn costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a ~upy ?fthe 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~ III which the tmst pr~perty, or some part. '
<br />thereof, is situated. The successor tmstee, without cunveyanee ofthe property, shall succeed tu all the power, duttes, authollty and tltle of the Trustee named m the deed uf
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<br />trust and of any successor ttustee.
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