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<br />COVENANTS
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<br />200709989
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<br />1. Payments. Borrower agrees to make all payments on the secured dcbt when due. Unless Borrower and Lcnder agree otherwise, any payments Lcnder receives from
<br />Borrower or for Borrower's benetlt will be applied first to any amounts Borrowcr owes on the secured debt exclusive of interest or principal, second to intercst, 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 othcr charges attributable to the property when due and will defend title to thc 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 Borrowcr 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 kcep 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 procceds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged property or to the secured dcbt. If Lender requires mortgage insurancc, Borrower
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will keep the property in good condition and makc all repairs reasonably necessary.
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including rcasonable attorneys' fees, if Borrowcr breaks any covenants in this deed of trust or in any
<br />obligation secured 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 Security Interests. Unless Borrower first obtains Lender's written contest, Borrower will not make or pennit any changcs to any prior security interests.
<br />Borrower will perionn 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 rcnts and proiits of the property. Unless Borrower and Lender have agreed othcrwise in writing,
<br />Borrower may collect and retain the rents as long as Borrower is not in dcfault. 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 tlrst 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; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease if this deed of trust is on leaschold. If this
<br />deed of trust is on a unit in a condominium or a plarmed unit development, Borrower will perfonn 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 Borrowcr fails to perform, any of Borrower's dutics under this deed of trust, Lender may pcrfonn the duties or
<br />cause them to be peri()rmed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any construction on the property is discontinucd or not
<br />carried on in a rcasonable marmer, 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 perfonn will not preclude Lender from exercising any of its other rights under the law or this deed OftlllSt.
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<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed oftlllst. Such amounts will be due on demand and will bear interest Irom the
<br />datc 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 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 />tlllSt or any prior mortgagc or deed of tlllSt, 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. 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 forth 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 ofllce of the register of deeds of each county wherein the trust property or
<br />some part or pareel thereof is situated a notice of default containing the information required by law. The Trustee shall also mail copies of the notice of delault to the
<br />Borrower, to each person who is a party hereto, and to other 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 tlllSt property is not in any incorporated city or village and is used in fanning operations carried 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 demand on Borrower, shall sell the property at public auction to thc highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the property in two separate sales as required by applicable law. TllIstee 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 property at any sale.
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<br />Upon receipt of payment of the price bid, Trustec shall deliver to the purchaser TllIstee's deed conveying thc property. The recitials contained in Trustee's deed shall be
<br />prima tacie evidience 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 fees and reinstatement fees; (b) to all sums sceured 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. foreclosure. At Lender's option, this deed of trust may be foreclosed in the marmer provided by applicable law for foreclosure of mortgages on rea] property.
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<br />I"', Ihsp;:ctlon. LeuJer may ent\..'T ti.e propeny to inspcct it if Lender gives borrower nvtice befOlchand. The notice must state the reasonabie cause 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 COllilected 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 assigrunent is subject to the tenns of any prior security agreCDlent.
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<br />16. Waiver. By exercising any rCDledy 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 the event a default ifit 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 t]lis
<br />deed of trust but does not co-sign thc underlying debt instruments( s) does so only to grant and convey that Borrower's interest in the property to the Trustee under the tenns
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of tlllSt may extend, modify or make any othcr changes in
<br />the terms of this deed OftlllSt or the secured debt without that Borrower's consent and without releasing that Borrower from the tenns of this deed of trust.
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<br />The dutics and bencfits of this deed OftlllSt 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 notice to Borrower shall be given by delivcring it or by mailing it by certified mail addressed to Borrower at the
<br />property address or any other address that Borrowcr has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's address 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 1 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 thc manner stated above.
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<br />19. Transfer of the Property or a Beneficial Interest in the Borrower. If all or any part of the property or any interest in it is sold or transferred without the Lender's
<br />prior written consent, Lender may demand immediate payment ofthc secured debt. Lender may also demand immediate payment if the Borrower is not a natura] person and
<br />a benefkial interest in the Borrower is sold or tmnsferred. However, Lendcr may not demand payment in the above situations if it is prohibitcd 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 tlllSt has been paid, and Lender has no further obligation to make advances under the instruments or
<br />agreements secured by this deed of trust, the Trustec shall, upon written request by the Lender, reconvey the trust property. The Lender shall deliver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obligation so satisfied. Borrower shall pay any recordation costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove TllIstee and appoint a successor trustee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee forrecord in the ofllee of the register of deeds of each county in which thc trust property, or some part
<br />thereot: is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, duties, authority and title of the Trustec named in the deed of
<br />tlllSt and of any successor trustee.
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