|
<br />COVENANTS
<br />
<br />200800728
<br />
<br />I. Payments. BOll'Ower agrees to make all payments on the sccurcd debt when due. Unless Borruwer and Lender agree otherwise, any payments Lender receives fmm
<br />Borrower or lhr Borrower's benel1t will be applied Hrst to any amounts Borrower owes on the secured dcbt exclusive of intcrest 01' principal, second to interest, and lhen to
<br />principal. If parlial prepayment of the secured debt occurs for any reason, it will not reduce or excuse any scheduled payment until the secured debl is paid in full.
<br />
<br />2. Claims Against Title. Borruwer will pay all taxes, assessments, and other charges attributable to the pmperty when due and will defend title to the pmpcrty againSl
<br />any claims which would impair lhe lien of this deed of trust. Lender may require BOll'Ower to assign any rights, claims 01' defenses which Borrower may have againSl
<br />parties who supply labor or materials to improve 01' maintain the property.
<br />
<br />3. Insurance. Borrower will keep the property insured un dcI' tcrms acccptable to Lender at Borrower's expense and for Lender's bene/It. All Insurance policies shall
<br />include a standard mortgage clause in lavor of Lender. Lender will be named as loss payee 01' as the insured on any such insurance policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the restoration 01' repair of the damaged property or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance fix as long as Lender requires.
<br />
<br />4. Property. 13011'Ower will keep the pmpelty in good condition and make all repairs reasonably necessary.
<br />
<br />5. Expcnses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Horrower breaks any covenants in this deed of trust or in any
<br />obligalion secured by this deed of trust. Borrower will pay these amounts to Lender as provided in Covenanl 9 of lhis deed of !lust.
<br />
<br />6. Prior Security Interests. Unless Borrower lirst obtains Lender's wrilten 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 mortgage, deed oftrust or other security agreement, including Horrower's covenants to make payments
<br />whcn due.
<br />
<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rents and pm/its of the pmper1y. Unless Borrower and Lender have agreed otherwise in writing,
<br />Horrower may collect and retain the renls as long as Borrower is not in default. If Horrower defaults, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and manage the property and collect the rcnts. Any rents Lender collects shall be applied /irst 10 the cosls of managing the property, including court costs and
<br />altorneys' fees, commissions to rental agents, and any other necessary related cxpenses. The remaining amount of rents will then apply to payments on the secured dcbt as
<br />provided in Covenant 1.
<br />
<br />R. Leaseholds; Condominiums; Planned Unit Developments. BOll'Ower agrees to comply with the provisions of any lease if this deed of lrusl is 011 leasehold. If this
<br />deed of trusl is on a unit in a condominium 01' a planned unit development, Borrower will perform all of Borrower's dulies under the covenants, by laws, or regulations of
<br />the condominium 01' planned unit development.
<br />
<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 perfilfmed. Lender may sign Borrower's name 01' pay any amount if necessary for performance. If any construclion on lhe property is disconlinued or not
<br />carried on in a reasonable manner, Lender may do whatever is nccessary to protect I ,ender's security interest in thc property. This may include compleling lhe conslruction.
<br />
<br />Lender's failure to pcrthnl! will nol preclude Lender H-\.lIlI exercising any of ils other rights under the law or this deed oftrust.
<br />
<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed oftrust. Such amounts will be due on demand and will bear interest from the
<br />date of the payment until paid in full al the interesl rate in elTed on lhe secured debt.
<br />
<br />10. Default and Acceleration. If Borrower fails to make any payment when due or breaks any covenants under this deed oftrusl or any obligation secured by lhis deed of
<br />!tust or any prior mor1gage or deed of lrust, 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 pennilled by applicable law.
<br />
<br />II. Request for Notice of Default. It is hereby requcsted that eopics of the notices of default and sale be sent to each person who is a party hereto, allhe address of each
<br />such person, as selliJTlh herein.
<br />
<br />12. Power of Sale. If the Lender invokes the power of sale, the Truslee shall firsl record in lhe ofl1ee of the registcr of deeds of each county wherein the !tust property or
<br />some palt or parcel thereof is situated a notice of default containing the inlonuation required by law. The Trustee shall also mail copies of the notice of delimit to lhe
<br />BOlTower, 10 each person who is a p811y hereto, and to other persons as prescribed by applicable law. Not less than one month after the Trustee rccords the notice of defirult,
<br />or lwo months if lhe trust property is nol in any incOlporated city or village and is used in farming operations carned on by the hustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without dcmand on Borrower, shall sell the property al public auction to the highest biddcr. If
<br />required by the farm Homestead Protection Act, Trustee shall offer the proper1y in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the property by public atUlouncemenl at the time and place of any previously scheduled sale. Lender or its designee may purchase the property at any sale.
<br />
<br />Upon reccipt of payment of the price bid, Truslee shall deliver to the purchaser Trustec's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained thcrein. Trustee 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 lees 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.
<br />
<br />13. Foreclosure. At Lender's oplion, lhis dced of trust may be filfeclosed in the manner provided by applicable law lor fbreclosure of mOltgages on real property.
<br />
<br />14. Inspection. Lender may enter the properly 10 inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause li)r Lcndcr's
<br />inspection.
<br />
<br />15. Condemnation. Borrower assigns to Lendcr the proceeds of any award or e1aim for damages connected with a condemnation or olher laking of all 01' any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. TillS assignment is su~iect to the tenus of any plioI' security agreement.
<br />
<br />16. Waiver. By exercising any remedy available to Lender, Lender docs not give up any Iighls to later use any olher remedy. By not exercising any remedy upon
<br />Borrower's default, Lender docs not waive any righllo later consider the evenl a default if it happens again.
<br />
<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound. All duties under lhis deed oftrusl are joint and several. Any BOlluwer who co-signs lhis
<br />deed of trust but does not co-sig~ the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in thc property to lhe Trustee under the lerms
<br />of this deed of trust. In addition, such a BOIl'Ower agrees thallhe Lender and any other Borruwer under this deed of trust may exlend, modiJy or make any other changes in
<br />the terms of this deed oftrust or the secured debt without that Horrower's consent and without releasing that Borrower from the terms oflhis deed oftrust.
<br />
<br />The duties and bene/its of this deed oftrust shall bind and benefit the successors and assigns of Lender and Borrower.
<br />
<br />IR. Notice. Unless othelwise required by law, any notice 10 BOll'Ower shall be given by deliveling it or by mailing it by certified mail addressed to BOllUWer a~ tI~e
<br />property address or any other address thaI Borrower has given to Lender. Borrower will give any nolice to Lender by certined mail to Lender's add~ess on page. I ot tillS
<br />deed of l1usl, or to any other address, which Lender bas designated. Any other notice to Lender shall be sent to I ,ender's address as stated on page I ot tillS deed 01 lrust.
<br />
<br />Any nolice shall be deemcd to have been given to BOHuwer or Lcnder when given in the manner slated above.
<br />
<br />19. Transfer of the Property or a Beneficial Interest in the Borrower. If all or any part of the property .01' any.interest in it ~s sold or transf~rred without the Lender's
<br />prior written consenl, Lender may demand immediate payment of the secured debt. Lender may also demand llnmedl?te p~Y111~~~ I~the B?r:ower IS,not a natural pe,rson and
<br />a beneficial interest in the BOll'Ower is sold or transferred. However, Lender may not demand payment in the above situations If It IS pmhlblted by lederallaw as of the date
<br />
<br />ofthis deed of trust.
<br />
<br />20. Reconveyance. When the obligation secured by lhis deed of tIusl has been paid, and Lender has no further obligalion to make advance~ under lhe instnnuenls or
<br />agreements secured by Ibis deed of trust, the Trustee shall, upon written request by the Lender, reconvey lhe trust properly. The Lender sh~1I dchver to lhe Horrower, or to
<br />Borrower's successor in inlerest, the trust deed and the nole or other evidencc of the obligalion so satisfied. Borrower shall pay any recordation costs.
<br />
<br />21. Successor Trustee. Lender, at I ,ender's option, may remove Trustee ami appoint a successor trustee by [irst, mailing a copy ~fthe substitution oftrustce as required
<br />by applicable law, and then, by filing the substitution of truslec for record in the office of the register of deeds of each count~ m whl?h the trust property, 01' sl~me palt .
<br />thereof, is situated. The successor trustee, without conveyance of the propelty, shall succeed to all the power, dultes, authOrIty and !ttle ofthe Trustee named mlhe deed 01
<br />
<br />trusl and of any successor trustee.
<br />
|