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<br />COVENANTS
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<br />2007100B5
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<br />1. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Borrower and Lcnder agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's benefit will be applied first to any amounts Borrower owes on the secured debt exclusive of interest or principal, second to intcrcst, and thcn to
<br />principal. If partial prepayment of the secured debt occurs for any rcason, it will not reduce or cxcuse any scheduled payment until the secured debt is paid in full.
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<br />2. Claims Against Title. Borrowcr will pay all taxcs, asscssments, and other charges attributable to the propelty when due and will defend tille to the property against
<br />any claims which would impair the lien of this deed of trust. Lender may rcquire Borrowcr to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply labor or materials to improve or maintain the property.
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<br />3. Insurance. Horrower will keep the property insured under terms acceptable to Lender at Borrower's expensc and for Lcnder's bencfit All Insurance policies shall
<br />includc a standard mortgagc 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 bc
<br />applied, within I.ender's discretion, to either the restoration or repair of thc damagcd propclty or to the secured debt If Lender requires mOItgage insurance, Borrower
<br />agrecs to maintain such insurancc tor as long as Lender requires.
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<br />4. Property. Borrower will keep the property in good condition and makc all repairs rcasonably nccessary.
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<br />5. Expenses. Borrowcr agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower brcaks any eovcnants in this dced of trust or in any
<br />obligation secured by this deed oftrust. Borrower will pay these amounts to Lendcr 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 changes to any prior security interests.
<br />Borrower will perform all of Borrower's obligations under any prior mortgage, deed oftrust 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. BOITower assigns to Lender the rents and proms of the property. Unless Bon'Ower and Lender have agreed othelwise in writing,
<br />Borrower may collect and retain the rents 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 propelty and collcet thc rents. Any rents Lender collects shall be applied first to the costs of managing the property, including eomt 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 thc secured dcbt 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 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 Borrower fails to perform, any of Borrower'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 performance. If any construction on the property is discontinued or not
<br />carried on in a 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 or this deed oftlust
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<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed oftrust. Such amounts will be due on demand and will bear intercst from thc
<br />datc of thc payment unti I paid in full at the interest mte in elTect on the secured debt
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<br />10. Default and Acceleration. If Bon'(lwer 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 plior mortgage or deed of trust, Lemler may accelerate the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies pellnitted 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 pmty hereto, at the address of each
<br />such person, as set fOrlll herein.
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<br />12. Power of Sale. If the Lender invokes the powcr of sale, the Trustee shal1 first record in the otlice of the register of deeds of each county whcrein the trust property or
<br />some pmt or parccl thereof is situated a notice of default containing the infonnation required by law. The Trustee shall also mail copies of thc notice of defilult to the
<br />Borrower, to each person 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 shal1 give public notice of
<br />sale to the pcrsons and in the maimer prescribed by applicable law. Trustcc, without demand on BoO'owcr, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Pl'Otcction Act, Trustee shall offer 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 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 decd conveying the property. The reeitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the fol1owing order: (a) to al1 expenses of the sale,
<br />including, but not limited to, reasonahle Trustee's fees, reasonable attorney's fccs and reinstatement lees; (b) to all sums seeurcd by this deed of trust, and (c) the balance, if
<br />any, to the persons legally entitied to reeeivc it.
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<br />13. Foreclosure. At Lender's option, this dced oftmst may be forcclosed in the manIler provided by applicable law for foreclosure of mOltgages on real propclty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Horrower notice beforehand. The notice must state the reasonable cause tor Lender's
<br />inspection.
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<br />15. Condemnation. Borrowcr assigns to Lender the pl'Oceeds of any award or claim lor damages connected with a condemnation or other taking of all or any part of the
<br />propelty. Such pl'Oeeeds will be applied as pl'Ovided in Covenant I. Tins assignment is subject to thc terms of any prior security agreement.
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<br />16. Waiver. By exercising any remedy available to Lendcr, Lender does not give up any rights to later use any other remcdy. By not excrcising any remedy upon
<br />Horrower's delault, 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-si~ners; Successors and Assigns Bound. All duties under this deed of trust arc joint and several. Any Borrowcr who co-signs tlus
<br />deed of trust but docs not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in thc pl'Operty to thc Trustee under the terms
<br />of this deed of tIUSt. In addition, such a Borrower agrees that the Lender and any other BOlTOwer under this deed of trust may extend, modifY or make any other changes in
<br />the terms of this deed of trust or the secured debt without that Borrower's consent mld without releasing that Borrower from the terms of this deed of trust.
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<br />The duties and benefits of this deed of trust shal1 bind and benefit the successors and assigns of Lcnder and BOll'Ower.
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<br />18. Notice. Unless otherwise requircd by law, any notice to Bon'Ower shall be givcn by delivering it or by mailing it by certified mail addressed to Borl'Ower at t1~e
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certil1ed mail to Lendcr's addres~ on page I of thiS
<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 I oftlus deed oftrust.
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<br />Any notice shal1 be deemed to have been given to BOllower or Lender whcn given in the 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 ~s sold or transf~rred without the I ,ender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand 11ll1nedl~tc p~ym~n~ I~the B~)~owcr IS not a natural pe~son and
<br />a beneficial interest in the Borrower is sold or transferred. Howcver, Lender may not demand payment III the above sltuatlOns If illS prohibited by federal law as of the date
<br />of this deed of tIUSt.
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<br />20. Reconveyance. When the obligation secured by this deed of trust bas becn paid, and Lender has no further obligation to make advances under the instruments or
<br />agreements secured by this dccd of trust, the Tlustee shall, upon wlitten request by the Lender, reconvey the trust propelty. The Lender sh~1l deliver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence oflhe obligation so satisl1ed. Borrower shall pay any recordation 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 copy of the substitution of trustee as required
<br />by applicable law, and then, by lIIing the substitution of trustee forrecord in the otlice ofthe register of deeds of ~ach county in whi~h the tlUst propelty, or s~me part .
<br />thereof, is situated. The successor tlUstee, without conveyance ofthe pl'Operty, shall succeed to all the power, duties, authonty and tltle ofthe TlUstee named 111 the deed of
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<br />trust and of any successor trustee.
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