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<br />COVENANTS
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<br />200709921
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<br />1. 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 />Borrower or for Borrower's benefit will be applied Ilrstto 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 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 Borrower to assign any rights, claims or defenses which BOlTOwer may have against
<br />patties who supply labor or materials to improve or maintain the propelty.
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<br />3. Insurance. Horrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benent. 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 propetty or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insun\nce fl.,r as long as Lender requires.
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<br />4. Property. BOll'ower will keep fhe 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 deed of trust or in any
<br />obligation secured by this deed 01.' trust. BOll'()wer 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 changcs to any prior security interests.
<br />Borrower will perform all of Borrower's obligations under any prior mortgage, deed of trust or other sccurity agreement, including Borrower's covenants to make payments
<br />when due.
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<br />7. Asslgnmcnt of Rcnts and Profits. Borrower assigns to Lender the rents and profits of the property. Unless Borrower and Lender have agreed otherwise in writing,
<br />Borrower may collect and retain the rents as long as Borrower is not in default. If I3orrower defaults, Lender, Lender's agent, or a court appointed receiver 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 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; Planncd 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 planncd unit development, Borrower will perform all of Borrower's duties under thc 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 Borrower fails to perform, any of Borrower's duties under this deed of trust, I,ender may perform the duties or
<br />cause them to be perli)rmed. Lendcr may sign Borrower's name or pay any amount if necessary for perlormance. If any construction on the property is discontinued or not
<br />carried on in a rcasonable manner, Lender may do whatcvcr is necessary to protect Lender's security interest in the property. This may include completing the construction_
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<br />Lender's failurc to perform will not preclude Lender f't'()m exercising any of its other rights under thc 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 of trust. Such amounts will bc due on demand and will bear intcrest 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. Dcfault 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 tnOltgage or deed of tmst, Lender Illay accelcrate the maturity of the secured debt and detnand immediate payment and may invokc the power of sale and
<br />any other remedies permitted by applicable law.
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<br />11. Rcquest 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 palty hereto, at the address of each
<br />such person, as set fOlth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustec shall tirst record in the office of the register of deeds of each county wherein the trust propcrty or
<br />some part or parcel thereof is situated a notice of default containing the infortllation required by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each pet'son who is a party hereto, and to other persons as prescribed by applicable law. Not less than one month after the Tmstee records the notice of delilult,
<br />or two months if the trust p\'Opelty is not in any ineorpomted city or village and is used inlilrming operations calli cd on by the tlustor, the Tmstee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on BOll'ower, shall sell the prop city at public auction to the highest bidder. If
<br />required by the Fal111 Homestead Protection Act, Tmstee shall offer the property in two scpamte sales as required by applicable law. Trustee lJlay postpone sale of all or any
<br />parcel of the property by public announcement at the timc 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 payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed convcying the property_ The recilials contained in Trustee's deed shall be
<br />prima facie evidience of the tmth of the statements contained therein. Tmstee shall apply the proceeds of the sale in the following order: (n) to all expenses of the sale,
<br />inclnding, but not limited to, reasonable Trustec's fees, reasonable attorney's fees and rcinstatementlees; (b) to all sums secured by this deed oftrust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Foreclosnrc. At Lender's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mOltgages 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 tor Lender's
<br />inspection_
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<br />15. Condemnation. BOll'ower assigns to Lender the proceeds of any award or claim tl.,r damages connected with a condemnation or other taking of all or any part of the
<br />propelty. Such proceeds will be applied as provided in Covenant 1. This 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 upon
<br />Borrower's default, Lendcr does not waive any right to later consider the cvent a default if it happens again.
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<br />17. Joint and Several Liahility; Co-signers; Succcssors and Assigns Bound. All duties under this deed of tmst are joint and several. Any BOffi,wer who co-signs this
<br />deed of trust but docs not co-sign the underlying debt instruments(s) docs so only to grant and convey that I3orrower's interest in the property to the Trustec under the terms
<br />of this deed of trust. In addition, such a 130n-ower agrees that the Lender and any other Borrower under this deed of bust may extend, modi/)' or make any other changes in
<br />the terms of this deed oflrust or the secured debt without that Borrower's consent and without releasing that Borrower Irom the terms of this deed oftrusl.
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<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of Lender and BOll'ower.
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<br />18. Noticc. Unless otherwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by eertitled mail addressed to Borrower a! tl~e
<br />propelty address or any other address that Borrower has given to Lender. Borrower will give any nofice to Lender by certified mail to Lender's address on page I ot tillS
<br />deed oftmst, 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 oflrust.
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<br />Any notice shall be deemed to have been given to BOll'Ower or Lender when given in the manner stated above.
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<br />19. Transfer of the Property or a Beneticlallnterest in the Borrower. If all or any part of the property.or any.interest in it ~s sold or transf~rrcd without the Lender's
<br />plior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand 1I111nedl~te p~YIl1~n~ I:the B~ll1'()wer IS not a natural person and
<br />a benelkial interest in the Bort'Ower is sold or transfelred. However, Lender may not demand payment m the above sltuabons If It IS prolublted by federal Jaw as of the date
<br />of this deed oftmst.
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<br />20. Rcconveyancc. When the obligation secured by this deed of trust has becn paid, and Lender has no further obligation to make advances under the instmments or
<br />agreements secured by this deed of trust, the Tmstee shall, upon wlitten request by the Lender, reconvey the bust property. The Lender shall dehver to the Bort'Ower, or to
<br />Borrower's successor in interest, the trust deed and the note or otller evidence of the obligation so satisfied. Borrower shall pay any recordabon costs.
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<br />21. Succcssor Trustcc. Lender, at Lender's option, may remove Trustee and appoint a successor tlustee by first, mailing a copy ~)fthc substitution of trustee as required
<br />by applicable law, and then, by tlling the substitution of trustee Ibr record in the office of the register of deeds of ~aeh count~ m which the !lust property, or s~lne part .
<br />thereof, is situated. The succcssor trustce, without conveyance of the property, shall succeed to all the power, dutIes, authonty and tttle of the Tmstee named Illthc deed 01
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<br />trust atld of any successor trustee.
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