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<br />COVENANTS
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<br />200801072
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<br />I. Payments. Borruwer agrees to make all payments on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receivcs from
<br />Borrower or for Borrower's benefit will be applied first to any amounts Borrowcr owcs on the secured deht 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 rcducc or cxcuse any scheduled payment until the secured debt is paid in rull.
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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 or this deed of trust. 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. Horrower will keep the property insured under temlS acceptable to Lender at Borrower's expense and fiJf 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 />applicd, within Lender\ 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 rcquires.
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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 reasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed OftlUSt. Borrower will pay these amounts to Lender as provided in Covenant 9 ofthis deed of trust.
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<br />6. Prior Security Interests. Unless Borrower Hrst 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 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 Prollts. Bonower assigns to Lender the rents and profits ofthe propelty. 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 />possession and manage the property and collect the rents. Any rents Lender collects shall he applied first to the costs of managing the property, including comt costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expenscs. The remaining amount of rents will then apply to payments on the sccured dcht 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 lease if this deed oftlUst is on Icasehold, 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 pertorm, 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 for performance_ If any construction on the propelty is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary 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 preclude Lender rrom 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 of trust. Such amounts will be due on demand and will bear intere~t from 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 BOITower fails to make any payment when due or breaks any covenants under this deed oftrust or any obligation secured by this deed of
<br />tmst or any prior mortgage or deed of trust, Lender may acce1emte the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies permitted by applicable law.
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<br />11. Rcquest for 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, a~ ~et fOlth herein_
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<br />12. Power of Sale. If the Lender invokes the power of sale, the TlUstee shall first record in the office of the register of deeds of each county wherein the trust prope.ty or
<br />some palt or parcel thereof is situated a notice of default containing the information required by law. The Trustee shall also mail copies of the notice of default to the
<br />BotTower, to each person who is a party hereto, and to other persons as prescribed by applicable law_ Not less than one month after the Trustee records the notice of default,
<br />or two months if the ttust property is not in any incorpomted city or village and is used in fanning operation~ eanied on by the tlUstor, the Trustee shall give public notice of
<br />sale to the persons and in the marlller prescribed by applicable law. Trustee, without demand on Borrower, shall sell the propetty at puhlic auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, TlUstee shall offer the property in two separate sales as required hy applieahle law. Tmstee 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. Lender or its designee may purchase 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 lacie evidience of the truth of the statements contained therein. TlUstee 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; (b) to all sums secured by this deed oftrust, and (c) the balance, if
<br />any, to the persons legally entitled to receive it.
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<br />13. Foreclosure. At Lender's option, this deed oftmst may be foreclosed in the manner provided by applicable law for foreclosure of mottgages on real property.
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<br />f4. Inspection. Lender may enter the property to inspect it if Lender gives Uorrower notice beforehand. The notice must state the reasonable cause fi.lr I.ender's
<br />inspection.
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<br />15. Condemnation. Botrower 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 />pro petty. Such proceeds will be applied as provided in Covenant I. TIns assignment is subject to the tenns of any prior security agreement.
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<br />f6. Waiver. By exercising any remedy availahle to Lender, Lender does not give up any rights to later use any other remedy, By not exercising any remedy upon
<br />Horrower'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; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any BOITower 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 terms
<br />of this deed of tIUSt. In addition, such a BOITower agrees that the Lender and any other BOITower under this deed of trust may extend, modify or make any other change~ in
<br />the terms ofthis deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms of this deed oftrust.
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<br />The duties and benefits ofthis deed oftrust shall bind and benefit 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 given by delivering it or by mailing it by cettified mail addressed to Borrower at the
<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 I "ender ha~ designated. Any other notice to Lender shall be sent to Lender's address as stated on page I of thIS deed oftrust.
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<br />Any notice shall he 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 interest in it is sold or translerred without the Lender's
<br />plioI' wtitten consent, Lender n;ay demand immediate payment of the secured debt. Lender may also demand immediate payment if the Bonuwer is not a natural pe,rson and
<br />a heneficial interest in the Bonuwer is sold or transfened. However, Lender may not demand payment in the above situation~ if it is prohibited by federal law as 01 the date
<br />of this deed oftrust.
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<br />20. Reconveyance. When the obligation secured by tIns deed of tlUSt has been paid, and Lender has no fmther obligation to make advances under the instlUments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust property, The Lender sh,~ll dehver to the Borrower, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obligation so ~atisfied. Borrower shall pay any recordation costs.
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<br />21. Successor Trnstee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by tlrst, mailing a copy of the substitution ortruslee as required
<br />hy applicable law, and then, by filing the suhstitution oftrustee for record in the olTiee of the register of deeds of ~ach county in which th~ trust property, or some part ,
<br />thereof, is situated. The successor tlUstee, without conveyance of the property, shall succeed to all the power, duties, authonty and tttle 01 the lrustee named mthe deed of
<br />trust and of any successor trustee.
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