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<br />COVENANTS
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<br />200802186
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<br />1. Payments. BOlmwer 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 benetlt 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 wi1J pay all taxes, assessments, and other charges attributable to the propeliy 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 Borrower to assign any rights, claims or defenses which BOffilwer may have against
<br />parties who supply labor or materials to improve or maintain the property.
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<br />3. Insurance. I3orrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for 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 insunmce policy. Any insumnee proceeds may be
<br />applied, within I,cndcr's discretion, to either the restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insumnce, Borrower
<br />agrees to maintain such insumnce Illr as 10l1g as Lendcr rcquires.
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<br />4. Property. Bonuwer will keep the pmperty 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 I3orrower 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 Lender as provided in Covenant 9 of this deed of trust.
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<br />6. Prior Security Interests. Unless I3orrower Ilrst obtains Lender's written eontest, Borrowcr 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 oftrust 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 pmfits of the property. Unless BOlmwcr and Lender have agreed othelwise 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 colleel the renls. Any rents Lender collects shall be applied first to the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary rclated cxpcnses. The remaining amount of rents wi1J 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 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 Illay perform the duties or
<br />causc them to be performed. I.endcr may sign Borrower's name or pay any amount if necessary for performance. If any consltuction on the propeliy is discontinued or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to protcct Lcnder's security interest in the property. This may include complcting the construction.
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<br />Lender's failure to perform will not preclude Lender from exereising any of its other rights under the law or this deed oftrust.
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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 dne on denumd and will bear interest from the
<br />date ofthe payment until paid in full at the interest rate in el1ect 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 of trost or any obligation secured by this deed of
<br />hust or any prior mOligage or deed of trust, Lender lIlay accclerate the maturity of the secured debt and demand immediate payment and may invoke thc power of sale and
<br />any other remedies pennitted 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 hereto, at the address of each
<br />such person, as set fOlih herein.
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<br />12. Power of Sale, If the Lender invokes the power of sale, the Trustee shalt first record in the office of the register of deeds of each county wherein the trust property or
<br />some pmi or parcel thereof is situated a notice of default containing the information reqnired by law. The Trustee shall also mail copies of the notice of default to the
<br />BOll'ower, 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 i I' the trust property is not in any incorpomted city or village and is used in fimning operations callied on by the trustor, the Tmstee shall give public notice of
<br />sale to the persons and in the manner presclibed by applicable law. Trustee, without demand on Borrower, shall sell the propelty at public auction to the highest bidder. If
<br />required by the Falln Homestead Pmtection 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 propcrty by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the propeliy at any sale.
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<br />Upon receipt of payment of the price hid, Trustee shall deliver to the purchaser Trustee's decd conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidienee 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 attorncy's fees and reinstatement fccs; (b) to alt sums securcd 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, 01is deed of trust may be Joreclosed in the maimer pI1Jvided by applicable law for foreclosure of mortgages on real property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrowcr notice beforehand. The notice must state the reasonable cause for Lender's
<br />in~pection.
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<br />15. Condemnation. BOlmwer assigns to Lender the proceeds of any award or claim fix damages counected with a condemnation or other taking of all or any part of the
<br />prOpClty. Such proceeds will be applied as provided in Covenant I. 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 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-si~ners; Successors and Assigns Bound. All duties under this deed of trust are joint and several. Any BOll'ower who co-signs this
<br />deed of trust but docs not co-sign the underlying dcht 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 trust. In addition, such a BOll'ower agrees that the Lender and any other Borrower under tillS deed oftmst may extend, modify or make any other changes in
<br />the terms of this deed oflrust or the secured dcbt without 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 benellts of this deed of trust 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 dclivering it or by mailing it by certified mail addressed to Borrower at t1~e
<br />pmpelty address or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certified mail to Lcnder's address on page I of thiS
<br />deed of trust, or to any other addrcss, which Lender has designated. Any other notice to Lender shall be sent to Lender's address as stated on page I of this deed of trust.
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<br />Any notice shall be deemed to have been given to Borrower or Lender when given in the nUlllner 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 Lendcr's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immedi~te paym~n~ i~'the B?r~uwer is.not a natuml pe!'Son and
<br />a beneficial intel'est in the BOIl'Ower is sold or transfell'ed. However, Lender may not dClnand payment in the above Situations If It IS prohibited by federal law as 01 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 obligation to make advance~ under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the tmst pmpeliy. The Lender shall del1ver to the Borrower, or to
<br />Borrower's successor in intercst, the trust deed amI the note or other evidence ofthe obligation so satisfied. Borrowcr shalt pay any recordalton costs.
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<br />21. Sueeessor Trustee. Lender, at Lender's option, may remove Trustce and appoint a successor trustee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by l1Iing the substitution of tmstee for record in the office of the register of deeds of ~aeh county in whi~h the ltus,t property, or s(~me part
<br />thereof, is situated. The successor tmstee, without conveyance oflhe property, shall succeed to alt the power, dultes, authonty and title of the rrustee.named m the deed of
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<br />trust and of any successor trustee.
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