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<br />COVENANTS
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<br />200800449
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<br />I. Paymcnts. 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 Horrower's benel1t 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 A~ainst 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 this deed of bust. 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 undcr terms acceptable to Lender at Borrower's expense and for Lender's benel1t. 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 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, Borrower
<br />agrees to maintain such insurance fur 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. Borrower agrees to pay all Lender's expenses, including rcasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligatjoll secured by this deed OftlUSt. BOll'ower will pay these amounts to Lender as provided in Covenant 9 of this deed of tlUSt.
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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 mortgagc, deed oHrust or other security agreement, including Borrowcr's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Pronts. BOlTower 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 receivcr may take
<br />possession and manage the property and collcct the rents. Any rents Lender collects shall be applied first to the costs of managing the pruperty, 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 lJnit 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 ncccssary for performance. If any conslluction on the property is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to protect I.ender's security interest in the property. This may include completing the construction.
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<br />I,ender's failure to perform will not preclude Lender from exercising any of its other rights under the law or this deed of tlUSt.
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<br />Any amounts paid by Lcnder to protect Lcnder'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 interesl nile 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 oftrust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of trust, 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 penllitted 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 scnt to each person who is a party hereto, at the address of each
<br />such person, as selfbrth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Trustee sha11l1rst record in the on1ce of the register of deeds of each county wherein the trust propelty or
<br />some palt or parecl thereof is situatcd a notice of default containing the infonnation required by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a palty hereto, and to other persons as prescribed by applicable law. Not less than one month aner 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 sha11 give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the propelty at public auction to the highest bidder. II'
<br />required by the Farm Homestead Protectioll Act, Trustee sha11 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. Lendcr 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 deed cOllvcying the property. The recitials containcd in Trustee's deed shall be
<br />prima filcie evidience of the truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the fo11owing order: (a) to all expenses or the sale,
<br />including, but not Iimitcd to, reasonable Trustee's fees, reasonablc attorney's fees and reinstatement lees; (b) to all sums secured by this deed oHrust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Foreclosure. At Lcnder'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. Lcndcr may enter the property to inspect it if Lender gives Borrowcr notice beforehand. The notice must state the reasonable 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 connected with a condemnation or other taking of all or any patt of the
<br />propelty. Such proceeds will bc applied as pruvided in Covenant I. Tlus assignment is subject to the tenns of any prior security agreement.
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<br />16. Waiver. By exercising any remedy available to Lcnder, Lender does not givc 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 considcr the event a delault 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 and convey that Borrower's interest in the property to the Trustee under the ten~s
<br />of this deed or trust. In addition, such a Bonower agrees that the Lender and any other Borrower under this deed of trust may extend, modify or make any other changes III
<br />the terms of this deed oItrust or the secured debt without that Borrowcr's consent and without releasing that Borrower from the terms of this deed of trust.
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<br />The duties and benefits of tlus deed of tlUSt shall bind and benefit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless othelwise required by law, any notice to Borrower sha11 bc given by delivering it or by Inailing it .by certilled mail a~dressed to Bon'ower at the
<br />property addrcss or any other addrcss that Borrower has given to Lender. Borrower will give any notice to Lender by certified mati 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 Lendcr shall be sent to Lender's address as stated on pagc I of 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.intcrest in it ~s sold or transf~rred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also de~lIand Immedl~te p~lym~~t I~the B~'r:ower IS,not a natUl~I, pe,rson and
<br />a beneficial interest in the Borrower is sold or transfencd. However, Lender may not demand payment 1lI the above Sltuattons If It IS prolublted by federal law ,IS of the date
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<br />ofthis 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 obligati?n to make advance~ under the instrum~nts or
<br />agreements securcd by this deed of trust, the TlUstee shall, upon writte~l reques~ by the .Lel~der, rcco~lVey the trust pruperty. fhe Lel1~er shall deIlv~r to the Borrowel, or to
<br />Borrower's successor in interest, the trust deed and the note or other eVidence 01 the obligatIOn so satisfied. Borrower shall pay any recordation costs.
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<br />21. Successor Trustee. Lendcr, at Lender's option, may rcmove Trustce and appoint a successor trustce by first, mailing a ~opy ~fthe substitution oftrustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register of deeds of ~ach county III whl~h the tmst propelty, or Sl~me palt .
<br />thereof is situatcd. The successor tlUstee, without conveyance of the property, sha11 succeed to all the power, duttes, authonty and title ofthe Trustee named mthe deed of
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<br />trust and of any successor trustee.
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