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<br />COVENANTS
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<br />200800451
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<br />l. Payments. Bonuwer agrees to makc all payments on the secured debt when due. Unless BOll'Ower and Lender agree otherwise, any payments Lendcr rcceivcs from
<br />Harrower or for Horrowcr's bencfit will bc applied first to any amonnts Horrower owes on thc sccured debt exclusive of interest or principal, second to interest, and then to
<br />principa1. 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 filII.
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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 propcrty against
<br />any claims which would impair the lien of tllis deed of trust. Lender may require BOll'Ower to assign any rights, claims or defenses which Borrower may havc against
<br />parties who supply labor or materials to improvc or maintain thc property.
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<br />3. Insnrance. Borrower will keep the property insured undcr tcrms acccptahle to Lcndcr at Harrower's expense and for Lender's benefit. All Insurance policies shall
<br />include a standard mOltgagc 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 he
<br />applicd, within I,ender's discrction, to eithcr the rcstoration or rcpair of the damaged property or to the secured debt. If Lender requires mOltgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lendcr requires.
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<br />4. Property. Borrowcr will keep the pmperty in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Harrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower brcaks any covcnants in this deed of trust or in any
<br />obligation secured by this deed of trust. Borrower will pay these amounts to Lender as providcd in Covenant 9 of this deed oftrust.
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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 pcrform all of Horrowcr'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 rents and profits of the property. Unless BOll'Ower 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 reeciver may take
<br />possession and manage the property and collect the rents. Any rents Lender collects shall be applicd first to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expenses. The remaining amount of rents will thcn apply to paymcnts on the secured debt as
<br />provided in Covenant 1.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any leasc 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 developmcnt.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Horrower's duties under this deed of trust, Lender may perform the duties or
<br />cause thcm to be pcrformed. Lender may sign Borrower's name or pay any amount if necessary lor perlorrnanec. If any construction on the property is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is nccessary 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 prcclude 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 protect Lender's security interest will be secured by this deed oftrust. Such amounts will be duc on demand and will bear interest fi'Om 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 Bonuwer fails to make any payment when due or breaks any covenants under this deed of trust or any obligation secured by this dced of
<br />tmst 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 salc and
<br />any other remedies permitted by applicable law.
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<br />11. Request for Notice of Default. It is hereby requested that copies of the noticcs of default and sale be sent to each person who is a party hereto, at the address of each
<br />such person, as set forth 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 ollice of the registcr of deeds of each county wherein the tmst property or
<br />some part or parcel thereof is situated a notice of default containing the infonnation requircd by law. The Trustee shall also mail copies of Ihe notice of default to the
<br />Borrower, to each person who is a party hcreto, and to other persons as prescribed by applicable law. Not less than one month aller the Trustee records the notice of default,
<br />or two months ifthe trust property is not in any incorporated city or village and is used in fanning operations canied on by the trustor, the Trustee shall give public notice or
<br />sale to the persons and in the manncr prescribed by applicable law. Tmstee, without demand on Borrower, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer thc property in two separate sales as required by applicable law. Tmstee may postpone salc of all or any
<br />parcel of the propcrty by public announcement at thc time and place of any previously scheduled sale. Lender or its designee may purchase the pmperty at any sale.
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<br />Upon reecipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's decd shall be
<br />prima facie evidienee of the truth of the statements contained therein. Trustee shall apply the procceds of the sale in the following order: (a) to all cxpenses of the sale,
<br />including, but not limited to, reasonablc Trustee's fees, reasonable attorney's fees and reinstatement fees; (b) to all sums secured by this decd of trust, and (c) the balance, if
<br />any, to the persons legally cntitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed of trust may be foreclosed in the marmer 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 Harrower notice beforehand. The notice must state the reasonable cause tor Lender's
<br />inspection.
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<br />15. Condemnation. BOll'Ower assigns to Lender the proceeds of any award or elaim for damages connected with a condemnation or other taking of all or any part of the
<br />property. Such proceeds will be applied as providcd in Covenant I. Tllis assignment is su~jcct to tbe tel1TIS of any prior secUlity 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, Lender docs not waive any right to later considcr the event a default if it happens again.
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<br />17. Jolut aud Several Liability; Co-sil/;ners; Successors and Assigns Bouud. All duties under this deed of trust are joint and several. Any Bormwer who co-signs this
<br />deed of trust but does not co-sigu the underlyiug deht instruments(s) does so only to grant and convey that Borrower's interest in the property to thc Trustee under the terms
<br />of this deed of huSt. In addition, such a Borrower agrees that the Lender and any other Borrower under this deed of trust may extend, modify or make any other changes in
<br />the terms of this deed oftmst or the secured dcbt without that Borrower's consent and without releasing that Borrower from the terms ofthis deed oftrust.
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<br />The duties and benefits of tllis deed of trust shall bind and bendlt the successors and assigns of Lender and BOll'Ower.
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<br />18. Notice. Unless otherwise required by law, any notice to BOll'Ower shall hc given by delivering it or by mailing it by certified mail addressed to Borrower at the
<br />property address or any other address that Horrower has given to Lender. Uorrower will give any notice to Lender by certit1ed mail to Lender's addres~ on page 1 of thIS
<br />deed of trust, 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 of thiS decd of trust.
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<br />Any notice shall be deemed to have been given to Borrower or Lender when given in tile manner stated above.
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<br />19. Transfer of the Property or a Beneficial Interest III the Borrower. If all or any part ofthe property or any interest in it is sold or transferred without the Lcnder's
<br />prior wtitten consent, Lendcr may demand immediate payment or the secured debt. Lender may also demand immedi~tc p~ym~n~ i~the B?r:ower iS,not a natural pe,rson and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above sltualtons If It IS prohibited by ledcrallaw as ot the date
<br />of this deed oftmst.
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<br />20. Reconveyance. When the obligation secured by this deed of hust has becn paid, and Lender has no further obligation to make advance~ under thc instrumcnts or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the hust property. The Lender shall dclIver to thc Bon'Ower, or to
<br />Horrower's successor in interest, the trust deed and the note or other evidcnce ofthe obligation so satisfied. Borrower shall pay any reeordalton costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by I1rst, mailing a ~opy ?fthe substitution oftrustce as requircd
<br />by applicable law, and then, by filing the substitution of trustee [or record in the oft1ce of the register of deeds of ~ach county III whl~h the trust pmperty, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the pmperty, shall succeed to all the power, duhes, authonty and tllle ofthe Trustce named 111 the deed of
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<br />trust and of any successor trustee.
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