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<br />200801275
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<br />COVENANTS
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<br />1. Payments. Bon'Owcr agrees to make all payments on the secured debt when duc. Unlcss Bon'Owcr and Lcndcr agrcc otherwise, any payments Lender receives lium
<br />Horrower or for Borrower's beneJil will be applied first to any amounts Horrower owcs 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 auy reason, it will not rcducc 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 taxes, asscssmcnts, and othcr charges attributable to the property when due and will defend title to the propclty against
<br />any claims which would impair the lien of tltis deed of tlUSt. Lcndcr may require Borrower to assign any lights, claims or defenses which Borrower may havc against
<br />parties who supply labor or materials to improve or maintain thc propclty.
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<br />3. Insurance. Horrowcr will kccp the propcrty insured under terms acceptable to Lender at Borrower's expense and for Lender's bencfit. All Insurance policies shall
<br />include a standard mortgage clause in favor of Lender. Lender will be namcd as loss payee or as the insured on any such insurance policy. Any insurance proceeds may bc
<br />applied, within Lender's discrction, to either the restoration or repair of the damaged property or to the secnred debt. If Lcndcr requires mortgage insurance, Borrower
<br />agrecs to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrowcr will keep the property in good condition and make all repairs reasonably neccssary.
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<br />5. Expenses. Horrowcr agrees to pay all Lender's expenses, including reasonable attorneys' fccs, if Borrower brcaks any covenants in this deed of trust or in any
<br />obligation sccured by this deed ofttust. Borrower will pay these amounts to Lendcr as provided in Covenant 9 of this deed of trust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contcst, Borrower will not make or permit any changes to any prior security intcrests.
<br />Borrowcr will perform all of Borrower's obligations under any prior mortgagc, dccd of trust or other security agreement, including Borrower's covcnants to make payments
<br />when due.
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<br />7. Assignment of Rents and Profits. Borrower assigns to Lcnder the rcnts and prol1ts of the property. Unless Borrower and Lender havc agrced otherwise in writing,
<br />Borrower may collect and retain the rents as long as Borrower is not in dcfault. If Borrower defaults, Lender, Lender's agent, or a court appointcd rcceivcr may take
<br />possession and manage the property and collect the rents. Any rents Lender collects shall be applied tirst to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary relatcd 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 />8. Leaseholds; Condominiums; Planned llnit 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, Borrowcr 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 pcrlOrTn, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to he performed. Lender may sign Borrower's name or pay any amount if necessary for performance. Ifany construction on the pl'Opelty 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 eomplcting thc construction.
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<br />Lender's fililure to perform will not preclude Lender ti'Om 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 oftrus!. Such amounts will be due on demand and will bear interest from the
<br />date or 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 Borrower fails to make any payment when due or breaks any covenants under this deed oftrust 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 other remedies pelmitted by applicable law.
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<br />II. Request 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 heret.o, at the address of each
<br />such pcrson, as set rOlth 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 olliee of the register of deeds of each county wherein the tl11st property or
<br />some palt or parcel thereof is situated a notice of def.'mlt containing the infOlmation required by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a patty hereto, and to other persons as prescribed by applicable law. Not less than one month atler the Trustee records the notice of default.
<br />or two months i I' the tlUst property is not in any ineOlporated eity or village and is nsed in fanning operations ealTied 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 BOffilwer, shall sell the pl'Opelty at puhlie auction to the highest bidder. If
<br />required by the Fal111 Homestead Pl'Oteetion Act, Trustee shall offer 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 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 hid, Trustee shall deliver to the purchaser Trustce's dced conveying the property. The reeitials contained in Trustee's deed shall be
<br />prima facie evidienee of the truth of the statements contained therein. Tl11stee 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, reasonahle attorney's fees and reinstatement Ices; (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, Ihis deed oftmst may be foreclosed in the maimer provided by applieahle law fur foreclosure of mOltgages on real propelty.
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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 fl)r Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages cotUlected with a condemnation or other taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant 1. This assignment is subject to the tenus of any prior security agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender does 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 delimlt i I' 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 ttust are joint and several. Any BOffilwer 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 propelt~ to the Trustee under the tern~s
<br />of this deed of tl11St. In addition, such a Borrower agrees that the Lender and any other Bon'Ower under this deed oftrust may extend, modtly or make any other changes 111
<br />the terms of this decd oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms Oftllis deed of trust.
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<br />The duties and benefits of this deed of tlUSt shall bind and bencfit the successors and assigns of Lender and Bon'ower.
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<br />18. Notice. Unless otherwise required by law, any notice to Bon'Ower shall be given by delivering it or by mailing it by certified mail addressed to Borl'Ower at the
<br />prl.lpelty address or any other address that Borrowcr has given to Lendcr. Horrower will give any notice to Lender hy certified mail to Lender's addres~ 011 page I of thIS
<br />deed oftrust, or to any other address, which Lender has designated. Any other notice to Lender shall be sent to Lender's address as statcd on page I ofthls dced oftrust.
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<br />Any notice shall be deemed to have been givcn to Bonuwer 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 transferred without the Lender's
<br />prior written consent, Lender n;ay demand immediate payment of the secured debt. Lender may also de~nand immedi~te p~ym~n~ i~'the Bon'Ower is not a natural person ~nd
<br />a beneJlcial interest in the Borr'Ower is sold or transferred. However, Lender may not demand payment 111 the above SItuatIons If It IS pmlllblted by federdllaw as of the ddte
<br />of this deed oftl11st.
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<br />20. Reconveyance. When the obligation secured by this deed of t11lst has been paid, and Lendcr has no further obligation to make advance~ under the in~t11lm~nts or
<br />agreements secured hy this deed of trust, the T11Istee shall, upon written request by the Lender, reconvey tile trust pl'Operty. The Lender shall deltver to the BOImwel, or to
<br />Horrower's sucecssor in interest, the trust deed and the note or othcr evidence of the obligation so satisfied. Borrower shall pay any recordatIOn costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustce and appoint a successor trustee by first, mailing a ~opy ~,f the substitution of trustee as required
<br />by applicable law, and then, by llling the substitution of trustee for record in the office of the register of deeds of each county m whl~h the trus,t,pr~perty, or s~me palt
<br />thereof, is situated. The successor trustee, without conveyance of the propelty, shall succeed to all the power, duttes, authonty and ttlle of the I rustee named III the deed of
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<br />trust and of any successor tlUstee.
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