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<br />COVENANTS
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<br />200509786
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<br />I. Payments. Borrower agrees to make all payments on the secured debt when due_ Unless Borrower and Lender agree othelwise, any payments Lender receives ii'om
<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 />principal. If partial prepayment of the secured debt occurs for any reason, it will not reduce or excuse any sehcduled 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 aUlibutable to the property when due and will defend title to the propeliy against
<br />any claims which would impair the lien of this deed of trust. Lender may rcquire Bon'ower to assign any lights, 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. Borrower will keep the property insured undcr tcnDS acceptable to Lender at BtllTOWer'S expense and for Lender's benel1t. All Insuranec policies shall
<br />include a standard mortgage clause in favor of Lender. Lender will be named as loss payee or as lhe insurcd on any such insunmce policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of thc damaged propeliy or to the secured debt. If Lender requires mortgage insurance, Bon'ower
<br />agrees to maintain such insurance for as long as Lender rcquircs.
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<br />4. Property. Borrower will keep the property in good condition and make all repairs reasonably necessUlY_
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if BOITower 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 Bon'ower first obtains Lender's wlitten contest, Bonnwer will not make or penllit any changcs to any prior secUlity interests_
<br />Borrower will penonn all of Bon'ower's obligations under any Plior mortgage, deed of trust or other security agreement, including Borrower's covenants to makc payments
<br />when due.
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<br />7. A..iplDeAt of Rents and Profits. Borrower assigns to Lender the rents and prot1ts of thc propel1y. 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 BOll'ower 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 property, including COUli costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary rclated expenses_ The remaining amount of rents willthcn apply to payments on the secured debt as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Developments, BOlluwer 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, BOIl'ower will pelfonll all of BOIl'ower'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 perfolln, any of Borrower's duties under this deed of trust, Lender may perfonn the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount ifnecessmy lor pClformance. If any construction on the property is discontinued or not
<br />camed on in a reasonable manner, Lender may do whatever is necessary to protect Lender's secutity interest in the property_ This may include completing the construction_
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<br />Lender's failure to perfonn 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 intcrest will be secured by this deed oftrust. Such amounts will be due on demand and will bear intcrest 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 Borrower fails 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 power of sale and
<br />any other remedies permitted 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 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 shalllirst record in the offlce of the register of deeds of each county wherein the trust propeliy or
<br />some part or parcel thereof is situated a notice of default containing the infollnation required by law. The Trustee shall also mail copies of tile notice of default to the
<br />Borrower, to each person who is a pal1y hereto, and to other persons as presclibed by applic<lhle law_ Not less than one month after the Trustee records the notice of default.
<br />or two months if tile trust property is not in any incorponlted city or village and is used in IUllning operations carried on by the trustor, the Tlustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on BOllnwer, shall sell the propCliy at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the propet1y 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 bid, Trustee shaH dcliver to the purchaser Trustee's deed cOJ1Yeying the property. The recitials contained in Trustee's deed shaH be
<br />prima facie evidienee of the truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the foHowing order: (a) to all expenses of the sale,
<br />including, but not limited to, reasonable Tlustee's fees, reasonable attorney's fees and reinstatement fees; (b) to all sums secured by this deed of trust, 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 oftrust may be foreclosed in the manner provided by applicable law for foreclosure of m0l1gages on real propel1y.
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<br />14. Inspection. Lender may enter the pmperty to inspect it if Lender gives BOll'ower notice beforehand. The notice must state the reasonable cause for tender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other laking of all or any part of the
<br />pmperty. Such proceeds wiH be applied as pmvided in Covenant I. This assignment is subject to the tellns of any prior. security agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender does nol 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 this deed of !lust are joint and sevCl1lL 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 BOIl'ower's interest inlhe pmpcl1y to the Trustee under thc terms
<br />of this deed oftrust. In addition, such a Borrower agrees that the Lender and any other BOlTower undcr this deed of trust may extend, modify or make any other changes in
<br />the terms of this deed of trust or the secured debt without that Bon'ower's consent and without releasing that Borrower lrom thc terms of this deed of trust.
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<br />The duties and benefits of this deed oftrust shaH 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 eel1ified mail addressed to BOlluwer at the
<br />property address or any other address that Bonuwer 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 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 manner stated above_
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<br />19. Transfer of the Property or a Beneficial Interest in thc Borrower. Ifall or any pmi of the propel1y or any interest in it is sold or transfetl'cd without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured dcbt. Lender may also demand immediate paymcnt if the BOlTower is not a natural person and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in the above situations if it is prohibited by federal law as of the date
<br />of this deed oftrust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust has bccn paid, and Lender has no fUl1her obligation to make advances under thc instruments or
<br />agreements secured by tIlis deed of trust, the Trustee shall, upon wlitten request by the Lender, reconvey the trust property. The tender shall deliver to the Bon-ower, or to
<br />Borrower's successor in intercst, the trust deed and thc note or other evidence of the obligation so satislied_ Borrower shall pay any recordation costs_
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<br />21. Successor Trustee. Lender, at Lender's option, may removc Trustee and appoint a successor trustee by Iirst, mailing a copy ofthc substitution of!lustee as required
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register of decds of each county in which the tlust ptopelty, or some pmi
<br />thereof, is situated. The successortlustee, without conveyance of the propCl1y, shall succeed to all the power. duties, authority and title of the Trustee named in the deed of
<br />trust and of any successor trustee.
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