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<br />COVENANTS
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<br />200800555
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<br />1. Payments. Borrower agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any paymcnts Lcndcr receivcs from
<br />Borrower or for Borrower's benefit will be applied nrst to any amounts Borrowcr owes on the secured debt cxclusive of interest or principal, second to interest, and then to
<br />principal. If partial prepayment of the secured debt occurs lilr any reason, it will not reduce or cxcusc any scheduled payment until the secured debt is paid in full.
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<br />2. Claims Against Title_ Borrower will pay all taxcs, asscssments, 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 hust. Lcndcr may require Bonuwcr 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 Borrowcr's cxpense and for Lender's benefit. All Insurance policies shall
<br />includc a standard mortgagc clausc in favor of Lender. Lender will be named as loss payee or as the insured on any such insurance policy_ Any insurancc procceds may bc
<br />applied, within Lender's discretion, to either the restoration or repair of thc damaged property or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance for as long as Lendcr requircs.
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<br />4. Property. Bonuwer will keep the property in good condition and make all repairs reasonably necessaty.
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<br />5. Expenses. Borrower agrees to pay all Lcndcr's cxpcnses, including reasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed oftmst. Borrower will pay these amounts to Lender as provided in Covenant 9 of this dced oftmst.
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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 sccurity intcrcsts,
<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 />posscssion and managc Ihe pmperty and collect the rents. Any rents Lender collects shall be applied 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 willthcn apply to payments on the secured debt as
<br />pmvided in Covenant 1.
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<br />8. Leaseholds; Condominiums; Planned lInit Developments. Bonuwer agrees to comply with the provisions of any lease ifthis deed oftrust 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 platmed unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to pcrform, any of Borrower's duties under this deed of trust, Lender may perlbrm thc duties or
<br />cause them to be performed. Lender may sign Borrower's namc or pay any amount if necessary for performance. If any construction on the propelty is discontinucd or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to protcct Lender's security interest in the property. This may include completing the construction.
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<br />Lender's failure to perfonu will not preclude Lender from excreising 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 intcrest will be secured by this deed of trust. Such amounts will be due on demand atld will bear interest Ii-om the
<br />date of thc paymcnt until paid in full at the interest mte in clIed 011 the securcd 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 lrust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of tmst, 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 penuitted by applicable law.
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<br />11. Request for Notice of Default. lt is hereby 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 set lilrth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Tmstee shall first record in the office of the register of deeds of eaeh county wherein the trust property or
<br />some palt or parcel thereof is situated a notice of default containing the infonnation required by law, The Trustee shall also mail copies of thc notice of default to the
<br />Bonuwer, to each person who is a party hereto, and to other persons as preselibed by applicable law. Not less than one month after the Truslee records the notice of default,
<br />or two months i I' the trust pmpelty is not in any inCOlporated eity or village and is used in fanning operations carried on by the tmstor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicahle law. Tmstee, without demand on Bonuwer, shall sell the propelty at public auction to the highest bidder. If
<br />required by the Fanll Homcstead Pmtection Act, Truslee shall oITer the pmperty in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the pmperty by public announcement at the 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 of payment of the price bid, Trustee shall dcliver to the purchascr Trustee's deed conveying thc property. The redtials contained in Trustee's decd shall be
<br />prima facie evidience of the tluth of the statements contained therein. Trustee shall apply the pmceeds of the sale in the following order: (a) to all expcnses of the sale,
<br />including, but not limited to, reasonable Trustee's fees, reasonablc attorney's fees and reinstatcment fees; (b) to all sums secured by this decd of trust, and (c) lhe balancc, 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 nUllmer 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 givcs Borrower notice beforchand. The noticc must state the reasonable cause for Lcnder'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 part of the
<br />propClty. Such proceeds will be applied as provided in Covenant I. This assigmllent is subject to the tenus of any prior seculity agreement.
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<br />16. Waiver. By exercising any remedy available 10 Lender, Lender docs not give up any rights to later use any other remedy, By not exercising any remedy upon
<br />Borrower's default, Lendcr 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 Liahility; Co-signers; Successors and Assigns Bound. All duties under this deed of trust are joint and seveml. Any BOlmwer who co-signs this
<br />deed of trust but does not co-sign the underlying debt instruments(s) docs so only to grant and eonvey that Borrower's interest in the properly to the Trustee undcr the terms
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any othcr Borrower under this deed oftmst 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 atld without releasing that Borrower from the terms of this deed oftrust.
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<br />The duties and benefits of tIns deed of ttust shall bind and beneHt the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless otherwise required by law, any notice to Borrower shall be givcn by delivering it or by mailing it by certified mail addressed to Borrower at thc
<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 address on page I 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 OfthlS deed oftrus!.
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<br />Any notice shall be deemed to have been given to Borrowcr or Lender when given in the maImer stated above.
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<br />19. Transfer of the Property or a Benef1c1al Interest in the Borrower. If all or any part of the property or any interest in it is sold or transferred without the Lender's
<br />prior writtcn consent, Lender may demand immediate payment of the secured debt. Lender may also demand immedi~te p~ym~l~t i~the B?~wer iS,not a natural person and
<br />a beneficial intercst in the Borrower is sold or transferred. However, Lender may not demand payment in thc above Sltuattons If Jt IS pmhtbtted by lederal law as of the date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation securcd by tins dced of trust has been paid, and Lender has no further obligation to make advance~ under the instmments or
<br />agreements secured by this deed of trust, the Trustee shall, upon wlitten request by the Lender, reconvey the trust property, The Lender sh~1I dehvcr to the Bonuwer, or to
<br />Borrower's successor in interest, the trust dced and the note or other evidence of the obligation so satisJ1ed_ Borrower shall pay any recordation costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor tmstee by first, mailing a ~opy ~fthe substitution oftmstee as required
<br />by applicable law. and tllen, by filing the substitution oftmslee for record in the otlice of the registcr of deeds of~ach count~ m whl~h th~ trust,property, or s~me patt ,
<br />thereof, is situated_ The successor trustee, without conveyance of the property, shall succeed to all the power, duttes, authonty and tttle of the 1 mstee named 111 the deed of
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<br />trust and of any successor trustee.
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