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<br />COVENANTS
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<br />200801227
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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 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 />Plineipal. If paliial 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 propetty against
<br />any claims which would impair the lien of this deed of trust. Lender may require BomJWer to assign any lights, claims or defenses which Bommer may have against
<br />palties who supply labor or matctials 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 Borrower's expense and for Lender's bene/H. All Insurance policies shall
<br />include a standard mortgage clause in favor of Lctlder. 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, Bon'()wer
<br />agrees to maintain such insurance for as long as Lender requires.
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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 of trust. Borrower will pay these amounts to Lendct. as provided in Covenant 9 of this deed of trust.
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<br />6. Prior Security Interests. Unless Borrower Ilrst obtains Lender's written contest, Borrower will not make or permit any changes to any prior security interests.
<br />Borrower will perflmn 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 />possession and manage the propelty and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the propelty, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expenses. The remaining amount ofrents will then apply to payments on the secured debt as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease 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 eondomininm 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 neccssary for pcrformance. 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 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 oHrus!. Such amounts will be due on demand and will bear interest from the
<br />date ofthe payment until paid in full at the interest rate in enect on the secured debt.
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<br />10. Default and Acceleration. If Borrower filils to make any payment when due or breaks any covenants under this deed oftlust or any obligation secured by this deed of
<br />trust or any prior mortgage or deed of trust, Lender may accelerate the maturity of the secured debt and demand immediate payment and may invoke the power of sale and
<br />any olher remedies pennitted 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 patty 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 registct. of deeds of each county wherein the trust property or
<br />some part or parcel thereof is situated a notice of dehlult containing the infonnation required by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a party hereto, and to other persous as prescribed by applicable law. Not less than one monlh aller the Trustee records the notice of defilult,
<br />01' two months if the lIust property is not in any incorporated city or village and is used in fanning operations eaITied on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. T1'lIstee, 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 oller the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the property by public alUlOuncement 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 priec 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 tmth 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; (b) to all sums secured by this deed oflrust, 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 mortgages on real propetty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. BOITower assigns to Lender the proceeds of any aWlllxl or claim for damages connected with a condemnation or other taking of all or any part of the
<br />property. Such pmeeeds will be applied as provided in Covenant I. This assignment is subject to the tenns of any prior security agreC1llent.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender docs not give up any lights 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-sij!;ners; Successors and Assigns BOllnd. All duties under this deed oftlllst are joint and several. Any Borrower 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 prope~~ to the Trustee under the terms
<br />of this deed ofltust. In addition, such a Borrower agrees that the Lender and any other Bon-ower under this deed oftlust may extend, Illodlfy or make any other changes 1Il
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower Irom the terms oflhis deed oftmst.
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<br />The dnties and benefits of this deed of ltust shall bind and benefit the successors and assigns of Lender ami Borrower.
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<br />18. Notice. Unless otherwise required by law, any notice to Borrower shall be given by delivcting it or by mailing it by ccttified mail addressed to Borrowct. at the
<br />propeliy addrcss or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lender's addres~ on page, I of thIS
<br />deed oftmst, or to any other address, which Lender has designated. Any other notice to Lender shall he sent to I ,ender's address as stated on page I of this deed ot trust.
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<br />Any notice shall be 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 ~s sold or transf~rred without the I ,~nder's
<br />PlioI' written consent, Lender may demand immediate payment of the secured debt. Lender may also de~nand l1nmedlate p~ym~n~ If the B?~'ower IS not a natural person ~nd
<br />a beneficial interest in the BOITower is sold or transferred. However, Lender may not demand payment mthe above SItuatIons If It IS plOlllblted 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 tins deed of tlUSt has been paid, and Lender has no further obligation to make advanee~ under the instru~~nts or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the .Len.der, reco~v~y the trust propeliy. The Len{~er shall deItver to the Borrowel, or to
<br />Borrower's successor in interest, the trust deed and the note or other evidence of the obItgatlon so sahshed. Borrower shall pay any recordalton costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a ~opy of the substitution oft1'llstee as required
<br />by applicable law, and then, by filing the substitution oftrustee for record in the of11ce of the register of deeds of ~ach count~ 11~ Whl~h th~ trust propert~, 0: s~111e Plll~
<br />thereof, is situated. The successor ltustec, without conveyance of the pl'Operty, shall succeed to all the power, dulIes, authonty and title of the Tmstee named 111 the deed of
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<br />trust and of any successor trustee.
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