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<br />200710603
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<br />COVENANTS
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<br />I. 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 first to 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 tlus deed of trust. Lender may require 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 expensc and for Lender's beneHt. 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 bc
<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, 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 make all repairs reasonably necessary.
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<br />5. Expenses. Borrowcr agrees to pay all .Lender's expenses, including reasonable 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 oftlus deed of trust.
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<br />6. Prior Security Interests. Unless Borrowcr tlrst obtains Lcndcr's written contest, Borrower will not makc or pcrmit any changes to any prior security interests.
<br />Borrower will perform 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 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 Borrower 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 tile property, including court costs and
<br />attorncys' fees, commissions to rcntal agents, and any other necessary related expenses. The renlaining 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 witb 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 Illay perfurnl the duties or
<br />cause them to be pertbrmed. Lender may sign Borrower's name or pay any muount if necessary for performance. If any construction on the propelty 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 />Lendcr's failurc to pcrform will not preclude Lender from exercising any of its otller rights under the law or this deed of trust.
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<br />Any amounts paid by Lender to protect Lendcr's sccurity interest will be secured by this deed of trust. Such amounts will be due on demmld and will bear interest from 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 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 />bust or any prior mOltgage or deed of trust, l.ender may accelerate the maturity of the secured debt and demand immediate payment and may invoke tile power of sale and
<br />any other remedies pennitted by applicable law.
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<br />II. Request for Notice of Default. It is hereby requested that copies of the notices of detault and sale be sent to each person who is a party bereto, at the address of each
<br />such person, as set fortb 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 office of the register of deeds of each county wherein the trust property or
<br />some patt or parcel thereof is situated a notice of default containing the inlbrmation required by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a party hereto, and to other persons as presclibed by applicable law. Not less than one month aller tbe 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 famung operations carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner presctibed by applicable law. Trustee, without demand on BOffilwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the property in two separate sales as required by applicable law. TlUstee may postpone sale of all or any
<br />parcel of the propelty by public announcement at tile 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 ofpaymcnt of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />Plima facie evidience of the truth of the statements contained therein. Trustee shall apply tbe 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 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. Foreclosure. At Lender's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages 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 for l.ender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages eOllllected with a condemnation or other taking of all or any palt of the
<br />property. 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, l.ender 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 trust arc joint and several. 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 mId convey that Borrower's interest in the property to the Trustee under the terms
<br />of this deed of trust. In addition, such a BOITOwer agrees that the l.ender and any other Borrower under this deed of trust may extend, modify 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 from the terms o[(his deed of trust.
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<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of l.ender and Borrower.
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<br />18. Notice. Unless otherwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certified mail addressed to Borrower at the
<br />propelty address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's addres~ on page. I of this
<br />deed oftlUSt, or to any other address, which Lender has designated. Any other notice to l.ender shall be sent to Lender's address as stated on page I 01 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 malUler stated above.
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<br />19. Transfer of the Property or a Beneficial Interest in thc Borrower. If all or any part of the property .or any.interest in it is sold or transf~rred without the Lcnder's
<br />prior written consent, Lender may demand illlillediate payment of the sccured debt. l.ender may also demand IIllilledl~te p~ym~n~ 1 ~ the B?~ower IS not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above sItuatIons If It IS prohIbIted by federal law as of the dale
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust 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 Trustee sball, upon wtitten request by the Lender, reconvey the trust property. Tbe Lender sh~1l dehver to the Bonower, 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 recordatton 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 ?fthe substitution oftTllstee as required
<br />by applicable law, and then, by filing the snbstitution of trustee for record in the oftice of the register of deeds of ~ach county in whl~h the trust property, or s~me part ,
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, duttes, authonty and tItle of the Trustee named m the deed of
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<br />trust and of any successor tlUstee.
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