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<br />200710457
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<br />COVENANTS
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<br />1. Payments. !3011'Ower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, allY payments Lender receives from
<br />Borrower or for Borrower's benent will be applied l1rst to any amounts Borrower owes on the secured dcbt exclusive of interest or principal, second to intcrest, and then to
<br />principal. Ifpaltial prepayment ofthe secured debt occurs for any reason, it will not rcducc or exeusc any sehedulcd paymcnt until the secured dcbt is paid in full.
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<br />2. Claims Against Title. BOll'Ower will pay all taxes, assessments, and other charges attributable to the property when due and will defend title to the propelty against
<br />any claims which would impair the licn of this dccd of bUSt. Lendcr may rcquire Borrower 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. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lendcr's bcnefit. 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 insunmce 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 secured debt. If Lender requires mortgage insurance, Borrnwer
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will keep the propetty 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 dced of tlUSt. B01TOwer will pay thesc amounts to Lendcr as provided in Covenant 9 of this decd of trust.
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<br />6. Prior Security Interests. Unless Borrower ltrst obtains Lender's written contest, Borrower will not make or permit any changes to any prior security interests.
<br />Borrower will perlorm 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. Borrower assigns to Lender the rcnts and profits of the pl'Opetty. Unless BOllUWcr and Lender have agreed othelwise in wliting,
<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 property and collect the rents. Any rents Lender collects shall be applied nrst to the costs of managing the propetty, 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. Bon-ower 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 Bon-ower fails to pertorm, 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 whatcver is neccssary to protect Lendcr's sccurity interest in the property. This may include completing the construction.
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<br />Lendcr's failure to perlorln 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 of trust. Such amounts will be due on demand and will bear interest from the
<br />date of the payment until paid in full at the interest ratc in cffect on the secured debt.
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<br />10. Default aud Acceleration. If Bon-ower fails to make any payment when due or breaks any covenants under this deed oftrust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accelcrate the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies permitted by applicable law.
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<br />11. Request for Notice of Default. It is hcrcby 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 setll)lth herein.
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<br />12. Power of Sale. If the Lcndcr invokes the power of sale, the Trustee shalllirst record in thc office of the register of deeds of each county whcrein the trust property or
<br />some part or parcel thereof is situated a notice of default containing the infollnation required by law. The TlUstee shall also mail copies of thc notice of default to the
<br />Borrnwer, to each pcrson who is a party hereto, and to other persons as prescribed by applicable law. Not less than one month after the Trustee records the noticc of default,
<br />or two months if the trust property is not in any incorpordted city or village and is uscd in farming operations camed on by the trustor, the TlUstee shall give public notiec of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Bormwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall otTer thc propelty in two separate sales as required by applicable law. Trustee lTlay postpone sale of all or any
<br />parcel of thc pmpelty by public announcement at the timc and place of any previously schedulcd sale. Lender or its designee may purchase the property at any salc.
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<br />Upon receipt of payment of the price bid, Trustee shall delivcr to the purchaser Trustee's decd conveying the property. The recitials contained in Trustee's decd shall be
<br />prima facic cvidiencc of the tlUth of the statements contained therein. Trustce shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale,
<br />ineluding, but not limited to, reasonable Trustee's fees, reasonable attorney's fees and reinstatement lees; (b) to all sums secured by this deed oftrust, and (c) the balance, if
<br />any, to the pen;ons legally entitlcd to receive it.
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<br />13. Foreclosure. At Lender's option, this deed of trust may be foreelosed in the manner provided by applicable law for foreclosure of mortgages on real propeIty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lendcr gives Borrower notice beforehand. The notice must state the reasonable cause for Lendcr's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a eondenmation or other taking of all or any palt of the
<br />property. Such proceeds will be applied as provided in Covenant I. Tllis assignment is subject to the terms of any prior security agreement.
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<br />16. Waiver. By exercising any retnedy available to Lender, Lender does not give up any rights to later use any other remedy. By not exercising any rcmedy upon
<br />Borrower'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 dccd of tlUSt are joint and sevemL Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the proper~ to the Trustec under the tern~s
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any other Borrnwer under this decd of trust may extend, moddy or make any other changes 1I1
<br />the terms of this deed of trust or the secured debt without that Borrower's consent and without relcasing that Borrower from the tcrms ofthis deed oftrust.
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<br />The duties and benefits oftllis deed oftlUst shall bind and bcnefit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless otherwise rcquired by law, any notice to Bormwer shall be given by delivcrin~ it or by mailing it .117 certi~ed mail a~dressed to BOlTower a~ the
<br />prop cIty address or any other address that Borrower has given to Lender. Borrower will give any nOllee to Lender by certtlted lIIail to Lender s add~es~ on page, I oj thiS
<br />deed oHmst, or to any other address, which Lender has designated. Any other notice to Lender shall be sent to Lender's address as slated on page I ot thIS deed 01 trust.
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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 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 Lendcr's
<br />prior written consent, Lender may demand immediate paymcnt ofthe secured debt. Lender may also demand imt11edi~te p~ym?l~tl~thc B?r:ower IS not a natural person and
<br />a bcncficial interest in the Borrowcr is sold or transferred. However, Lender may not demand payment In the above Sltualtons tf It IS pmlublted by federal law 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 this decd of trust has been paid, and Lender has no liJrther obligation to make, advances U1~der the instrumcnts or
<br />agreetnents secured by this deed of trust, the Trustce shall, upon written request by tlle Lender, reco~v~y the trust property. The Len~el shall delt~et to the Bonower, or to
<br />Borrower's successor in interest, the trust dced mId the note or other evidence of the obhgatlOn so saltslted. Borrower shall pay any recordatIon costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may rcmove Trustee and appoint a succes~or tru~tee by fi~t, mailing a ~opy of the substitution oftrus~ee as required
<br />by applicable law, and then, by filing the substitution oftlUstee for record in thc office ofthe regIster 01 deeds of ~eh county m whl~h the tlUSt pl'Operty, or s~me part
<br />thereof, is situated. Thc successor trustee, without conveyance of the property, shall succeed to all the power, dultes, authonty and !ttle of the Trustee named m the deed of
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<br />trust and of any successor tlustee.
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