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<br />COVENANTS
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<br />200801770
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<br />I. Payments. Borrower agrees to makc all paymcnts on the secured debt when due. Unless Borrower and Lender agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's henefit will be applied nrst to any amounts Borrower owes on the securcd dcbt cxclusivc of intcrest or principal, sccond to intcrest, and thcn to
<br />principal. If paltial prcpaymcnt of the secured debt occurs for any reason, it will not rcduce or excusc any schcduled payment until thc securcd dcbt is paid in full.
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<br />2. Claims Against Title. Borrowcr will pay all taxcs, assessments, and other charges attributable to the property when due and will defend title to the property against
<br />any claims which would impair the lien of this deed of trust. Lender may require BOITOwcr to assign any rights, claims or dcfcnses which Borrower may have against
<br />parties who supply labor or materials to improve or maintain tlle property.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lcnder at Borrower's expcnsc and for Lender's beneHt. 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 discrction, to either the restoration or repair of the damaged property or to thc securcd debt. If Lcndcr requires mortgage insurance, Borrower
<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 agrces to pay all Lcndcr's expenses, including reasonable attorneys' fees, if Borrower breaks any covenants in this decd of trust or in any
<br />obligation secured by this deed of trust. Borrower 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 first 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 Profits. Borrower assigns to Lender the rents and prol1ts 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 property and collect the rents. Any rents Lender collects shall be applied first to the costs of managing the pruperty, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related 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 Unit Developments. Borrower agrees to comply with the provisions of any lease if this deed oftrust 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 for perlormance. If any construction on the propelty is discontinued or not
<br />carried on in a reasonable manner, Lender may do wbatever is necessary to protect Lender's security interest in the property. This may include completing the conslruction.
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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 oftIust.
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<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 at the interest nlte in dIect on the secured debt.
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<br />10. Default and Acceleration. If BOlTOwer tails 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 trust, Lender may accelerate the maturity of the secured debt and demand immediate payment and may invoke the powcr of sale and
<br />any other remedies penllitted by applicable law.
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<br />11. 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 hereto, at tbe 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 Truslee shall J1rst record in the oOlce of the register of deeds of each county wherein the trust property or
<br />some palt or parcel thereof is situated a notice of default containing the information required by law. The Trustee shall also mail eopics of the notice of default to the
<br />Borrower, to each person who is a party hereto, and to othcr persons as prescribed hy applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the trust property is not in any incorporated city or village and is used in fanning operations can'ied on by the trustor, the Trustee shall give public noticc of
<br />sale to thc pcrsons and in the manner prescribed by applicable law. Trustee, without demand on BOll'ower, shall sell the propelty at public auction to the highcst bidder. If
<br />required by the Fann Homestead Protection 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 propelty by public alUlOuncement at the time and place of any previously scheduled sale. Lender or its designee may purchasc the propertY 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. Tmstee 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 ortrust, 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 of trust may be foreclosed in the manner provided by applicable law tor loreclosure of mOltgages on real property.
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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 canse tor Lender's
<br />inspection.
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<br />15. Condemnation. BOll'ower assigns to Lendcr the proceeds of any award or claim for damages connected with a condemnation or othcr taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. Tins 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 does 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; Successors and Assigns Bound. All duties under tins deed of tmst 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 prope~y to the Trustee under the terms
<br />of this deed oftmst. hI addition, such a Borrower agrees that the Lender and any other Borrower undcr this deed of trust may extend, modIfy or make any other changes III
<br />the terms ofthis deed of trust or the secured debt without that Borrower's consent and without releasing that Borrower l.rom the terms of this deed of trust.
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<br />The duties and benefits of this deed oftlUst 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 bc given by delivering it or by mailing it by certitled mail addressed to Borrower a~ tl~e
<br />property 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 ot 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 slated on page I of thIS decd oftrus\.
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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 properly .or any.interest in it is, sold or transf~rred without the Lender's
<br />prior written consent, Lender may demand innnediate payment of the secured debt. Lender may also d~lIand lInmedl~te p~ym~n~ I~ the B~r~'ower ls,not a natural. perso~ and
<br />a beneficial interest in the BOITower is sold or transfened. However, Lender may not demand payment 111 the above Situations If It IS prohlbltcd by lederallaw as of tht) date
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<br />of tins 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 furthcr obligation to make advancc~ under the in~truments. or
<br />agreemcnts secured by this deed of tlUSt, the Trustee shall, upon writte.n request by thc .Lel~der, reco~vey the tlUst property. The Len~er shall deliv:r to thc BOTrowt)r, 01 to
<br />Borrower's successor in interest, the trust deed and tile note or other eVIdence of the obligatIOn so saltsfied. BOll'ower shall pay any recordatIOn costs.
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<br />21. Snceessor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a ~opy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee tor record in the office of the register of deeds of ~ach eount~ III whl~h the trust propcrty, or sl~me part ,
<br />thercof, is situated. The successor trustee, without conveyance ofthe propcrty, shall succeed to all thc power, duties, autilonty and !llle of the Trustee named 111 the deed 01
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<br />trust and of any successor trustee.
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