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<br />COVENANTS
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<br />200801003
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<br />I. Payments. 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 Borrower's benefit 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 Against Title. Borrower will pay all taxes, assessments, and other charges attributable to the property when due and will defend title to the propelty against
<br />any claims which would impair the lien of this deed of trust. Lender may require BOIl'ower to assign any rights, claims or defenses which Bonower may have against
<br />parties who supply labor or materials to improve or maintain the propelty.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense and lor Lender's benefit. 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 for as long as Lender requires.
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<br />4. Property. Bonower will keep the property in good condition and make all repairs reasonably necessalY.
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed of trust. Bonower will pay these amounts to Lender as provided in Covenant 9 of this deed of trust.
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<br />6. Prior Security Interests. Unless Borrower nrst obtains Lender's written contest, Borrower will not make or permit any changes to any prior security interests.
<br />Borrower will perlorm 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. BOITuwer assigns to Lender the rents and profits of the propetty. Unless Borrower and Lender have agreed otherwise in writing,
<br />Harrower may collect and retain the rents 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 propelty and collect the renls. Any rents Lender collects shall be applied lirst to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any olher necessary relaled 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 />1'1. Leaseholds; Condominiums; Planned Unit OevelolJlnents. Borrower agrees 10 comply wilh Ihe pmvisions of any lease if Ihis 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 pertorm 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 necessary lor perlormanee. If any construction on the property is discontinued or nol
<br />carried on in a reasonable manner, Lender may do whalever is necessary to protect Lender's security interest in the property. This may include completing the construction.
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<br />Lender's [ailure to perform will not preclude Lender from exercising any of its other lights 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 of trust. Such amounts will be due on demand and will bear interest [rom 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. Defanlt and Acceleration. If Borrower fails to make any payment when due or breaks any covenants under this deed of trust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of bust, Lender may accelemte the maturity of the secured debt and demand immediate payment and may invoke the power of sale aod
<br />any other remedies pel1nitted by applicable law.
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<br />II. Reqnest lor Notice of Default. It 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 fotth 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 register of deeds of each county wherein the hust property or
<br />some part or parcel thereof is situated a notice of default containing the information required by law. The Trustee shall also mail copies of the notice o[ default to the
<br />Borrower, to each person who is a patty hereto, and to other persons as presetibed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the trust propelty is not in any incorporated city or village and is used in fimning opemtions eanied on by the trustor, the Trustee shall 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 property at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the propetty in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel ofthe propetty by public announcement at the time ami place of any previously scheduled sale. Lender or its designee may purehase the propelty 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 conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained therein. 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 fees and reinstatement fees; (h) to all sums secured by this deed oftrust, and (c) the bahmce, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed oftrust may be loreclosed in the manner provided by applicable law for foreclosure of mOltgages on real property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Horrower notice belorehand. The notice must state the reasonable cause lor Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages conneded with a condemnation or other taking of atl or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the terms of any prior security agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender docs not give 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 consider the event a default if it happens again.
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<br />17. Joint and Several Liability; Co-signers; Snccessors and Assigns Bound. All duties under this deed of trust arc joint and seveml. Any Borrower who co-signs this
<br />deed of trust but docs 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 terms
<br />of this deed oftrust. In addition, such a Borrower agrees that the Lender and any other Horrower under this deed oftrust may extend, modify or make any other changes 111
<br />the terms of this deed oftrust or the secured debt wilhout that Borrower'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 this deed oftrust shall hind and benet1lthe successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless otherwise required by law, any notice to BOl1'Ower shall be given by delivering it or by mailing it by certitied mail addressed to Borrower at tI~e
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender hy certified mail to Lender's addres~ 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 ot trust.
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<br />Any notice shall be deemed to have been given to BOl1uwer 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.interest in it ~s sold or transl~rred without the Lender's
<br />prior wtillen consent, Lender may demand immediate payment of the secured debt. Lender may also demand llnmedt~te p~lyme~~ I~the B?r:ower IS not a natural person and
<br />a heneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above SituatIOns 11 It IS pl'Olublted by federal law as of the date
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<br />of this 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 obligatio? to make advance~ under the instruments or
<br />agreements secured by this deed of trust, the Tlustee shall, upon wtitte.n request by the Len.der, recolw~y the trust pmpetty. 1 he Lender sh~1I d~hver 10 the BOl1uwer, 01 to
<br />Borrower's successor in interest, the trust deed and the note or other eVIdence ofthe oblIgation so sal1slied. 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 trustee hy first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee lor record in the office of the register of deeds of ~aeh county in whi~h th~ trust pllJperty, or s~llle pmi
<br />thereof, is situated. The successor trustee, without conveyance of the propelty, shall succeed to all the power, duhes, authol1ty and tItle 01 the 1 rustee named III tile deed of
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<br />trust and of any successor trustee.
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