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<br />COVENANTS
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<br />200800205
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<br />1. Payments. BOffilwer 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 t~1r Horrower's benefit will be applied l1rstto any amounts Horrower owes on the securcd debt exclusive of interest or principal, second to interest, and thcn to
<br />Plincipal. If partial prepaymcnt of the secured debt occurs for any reason, it will not reduce or excuse any scheduled paymcnt until the secured debt is paid in full.
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<br />2. Claims Against Title. BOlTower will pay all taxes, assessments, and othcr charges attributable to the prop cIty when due and will dcfcnd title to the property against
<br />any claims which would impair the licn of this deed of hust. Lender may require Borrower to assign any rights, claims or defenses which BOffilwer may havc against
<br />palties who supply labor or matclials to improve or maintain thc propelty.
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<br />3. Insurance. Borrower will keep the property insured undcr terms acceptable to Lender at Horrower's expense and for Lendcr's benel1t. Alllnsurancc policies shall
<br />include a standard mortgage clause in favor of Lender. Lender will be namcd as loss payee or as the insured on any such insurance policy. Any insurance proceeds may be
<br />applied, within Lcnder's discretion, to either the restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insurance, BOITOwer
<br />agrees to maintain such insurancc for as long as Lender requires.
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<br />4. Property. Borrower will keep the pmperty in good condition and make all rcpairs reasonably necessary.
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<br />5. Expenses. Horrower agrees to pay all Lcnder's expenses, including rcasonable allorneys' fees, if Horrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed of trust. Borrowcr will pay these amounts to Lendcr as provided in Covenant 9 of this deed of trust.
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<br />6. Prior Seenrity Interests. Unless Horrower tlrst obtains Lender's writtcn contest, Borrower will not make or permit any changcs to any prior security intcrcsts.
<br />Borrower will perform all of Horrower's obligations under any prior mortgage, deed of trust or othcr security agreement, including Horrower's covenants to makc payments
<br />whcn due.
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<br />7. Assi~nment of Rents and Profits, Bon'ower assigns to Lender the rents and profits of the property. Unless Borrower and Lcnder have agreed othelwisc in writing,
<br />Borrower may collect and retain the rcnts 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 propetty and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the property, including COUlt costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expcnses. The remaining amount ofrents will then apply to payments on the secured debt as
<br />providcd 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 hust is on leasehold. If this
<br />deed of trust is on a unit in a condominium or a planncd unit dcvelopment, Borrower will perform all of Borrowcr's dutics under the covenants, by laws, or regulations of
<br />the condominium or planned unit developmcnt.
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<br />9. Authority of Lender to Perform for Borrower. If Horrower fails to perform, any of Borrower's duties under this dced of trust, Lender may pcrform the duties or
<br />cause them to bc pcrformed. Lender may sign Horrower's name or pay any amount ifnecessary for performance. If any construction on thc property is discontinued or not
<br />carried on in a reasonable manncr, Lender may do whatever is ncccssary to protect Lcnder's sccurity 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 of trust.
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<br />Any amounts paid by Lender to protcct Lender's security interest will be sccurcd by this deed of trust Such amounts will be due on demand and will bcar interest from the
<br />date of the payment until paid in full at thc intercst rate in effect on the secured debt
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<br />10. Default and Acceleration. If Borrower fails to make any paymcnt when due or breaks any covenants undcr this deed of trust or any obligation secured by this deed of
<br />trust or any prior mOltgagc or deed of trust. Lender may accelcrate the maturity of the secured debt and dcmand immediate payment and may invokc thc power of sale and
<br />any other remedies pcnnittcd by applicable law.
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<br />II. Request for Notice of Default. It is hereby requested that copics of the notices of delimit and sale be sent to each person who is a party hereto, at the addrcss of cach
<br />such person, as set forth herein.
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<br />I2. Power of Sale. If thc Lender invokes the power of sale, the Trustee shall first record in the oflice of the register of decds of cach county wherein the tlUSt property or
<br />some patt or parcclthereof is situated a notice of default containing the infonnation required by law. The Trustee shall also mail copics of the notice of delimit to the
<br />BOlTower, to each person who is a palty hereto, and to othcr 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 prop cIty is not in any incorporated city or village and is used in fanning operations carned on by the trustor, the Trustee shall give public noticc of
<br />sale to thc persons and in the manner prescribed by applicable law. Trustee, without dcmand on Bon'Ower, shall sell the property at public auction to the highest bidder. If
<br />required by the Farm Homcstead Protcction Act, Trustee shall offer the property in two separate sales as required by applicable law. Trustcc may postpone sale of all or any
<br />parcel ofthe property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the propClty at any sale.
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<br />Upon receipt of payment of the price bid, Trustce shall deliver to the purchaser Trustcc's dccd conveying thc propcrty. Thc rccitials containcd in Trustec's dced shall be
<br />ptima facie evidience of the truth of the statements contained therein. Tlustee 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 secured by this deed oftrust, and (c) the balance, if
<br />any, to the persons Icgally cntitlcd to receivc it
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<br />.13. Foreclosure, At Lendcr's option, this dced of trust may bc forcclosed in the manner provided by applicable law for foreclosure of mortgages on real propClty.
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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 1i.1r Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connccted with a condcmnation or othcr taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the tenTIS of any prior secUlity agrecment
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<br />16. Waiver. By exercising any remedy available to Lender, Lender does not give up any rights to later usc any other rcmedy. By not exercising any remedy 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-si~ners; Successors and Assigns Bound. All duties under this deed of trust are joint and sever,!!. Any Borrower who co-signs tltis
<br />decd oftrust but docs not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the propcrty to the Trustee undcr the terms
<br />of this deed of !lust. In addition, such a Horrower agrecs that the Lender and any other BOITower under this deed oftrust may extend, modify or make any other changcs in
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Horrower from the terms oflhis deed of trust.
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<br />Thc duties and bcncfits oftltis deed of trust shall bind and benefit the successors and assigns of Lender and Borrowcr.
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<br />18. Notice. Unless othelwisc required by law, any notice to BOlmwer shall be given by delivering it or by mailing it by certified mail addressed to BOlTowCl' at the
<br />property address or any othcr address that Borrower has given to Lender. Horrower will give any notice to Lcndcr by certified mail to Lender's addrcss on page, I of this
<br />dced oftrust, or to any other address, which Lender has designatcd. Any other notice to Lender shall bc sent to Lender's addrcss as stated on page I of 111lS deed ot 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 ofthc property.or any.interest in it ~s. sold or transJ~rred without the Lender's
<br />Plior writtcn consent, Lender may demand immediatc payment of the secured debt. Lender may also demand lmmcdl~te p~ym?n~ I~ the B~ll~'ower Is.not a natural person and
<br />a beneflcial interest in the BOll'ower is sold or transfen-ed. However, Lender may not demand payment in the above sltualtons lflt IS prolublted by lederallaw as of the date
<br />ofthis deed oflrust.
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<br />20. Reconveyance. When the obligation secured by tItis deed of trust has been paid, and Lender has no further obligation to make advances under thc instruments or
<br />agrecmcnts secured by this deed of trust, the Trustee shall, upon written rcqucst by the Lender, reconvey the trust property. The Lcnder shall dehver to thc Borrower, or to
<br />Borrowcr's successor in interest, the trust dccd and the note or other evidcnce of the obligation so satisfied. Borrower shall pay any recordation costs.
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<br />21. Successor Trustee. Lcnder, at Lender's option, may remove Trustee and appoint a succcssor tlustee by first, mailing a copy ofthc substitution ol'lrustcc as required
<br />by applicablc law, and thcn, by filing the substitution of trustee Jor record in the ollice of the registcr of deeds of cach count~ in which the trus~ propelty, or s~mc patt ,
<br />thereof, is situated. The successor trustee, without conveyance of the propelty, shall succeed to all thc power, dutIes, authonty and btle of thc I rustee named mthc deed oj
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<br />trust and of any successor hustee.
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