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<br />COVENANTS
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<br />200509787
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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 Borrow~r OweS On the secured debt exclusive of interest or principal, second to interest, ,lI1d tben to
<br />principal. If partial prepayment ofthe 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 otber charges atlJibutable to the propelty 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 BOITower to assign any rights, 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. BOITower will keep the property insured under temlS acceptable to Lender at BOlTOwer'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 insurance policy. Any insurance proceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged propelty or to the secured debt. If Lender requires mortgage insunmce. Borrower
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will keep the propelty 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 re<lsonable attollleys' fees, if Bon'ower 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 oftrust.
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<br />6. Prior Security Interests. Unless Bon'ower first obtains Lender's wlitlen contest, Bon'ower will not make or pennit 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 seeulity agreement, including Borrower's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Profits. Bon'ower assigns to Lender the rents and protits of the propelty. Unless Borrower and Lender have agreed othelwise in wliting.
<br />Borrower may collect and retain the rents as long as Borrower is not 111 default. If BOl1'ower defaults, Lender. Lender's agent, or a court appointed receiver may take
<br />possession and manage the property and eoUeet the rents. Any rents Lender collects shaU bc applied first to the costs of managing the property, including COUlt costs and
<br />attorneys' fees, commissions to rental agents, and any other necessalY 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 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 perf 01111 all of BOITOw"r'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 BOlTower fails to pert<mn, any of Bomlwer's duties under this deed of trust, Lender may per!<llll1 tbe duties or
<br />cause them to be perfollTIed. Lender may sign BOl1'ower's name or pay any amount if necessmy for performance. If any construction on the property 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 perfonn will not preclude Lender from exercising any of its other tights under thc 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 of trust. Such amounts will be due on demand and will bear interest fi"Om the
<br />date of the payment until paid in full at the interest rate in effect on the secured d..:bt.
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<br />10. Default and AcceleratIon. If Bonower 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 matutity of tbe secured debt and demand immediate payment and may invoke the power of sale and
<br />any other remedies pennitted by applicable law.
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<br />11. Request for Notice of Default. It is hereby requcsted that copies of the notices of defilult and sale be sent to each person who is a palty hereto, at the <lddress of eacb
<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 Tlustee shall first record in the office of the register of deeds of each county wherein the trust propelty or
<br />some part or parcel thereof is situated a notice of default containing the infonnation rcquired by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a patty hcreto, and to other persons as presclibed by 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 incorpomted city or village and is used in tanning operations callied on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Tmstee, without demand on Borrower, shall seU the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Tmstee shall offer the propelty in two separate sales as rcquir..:d by applicable law, Tmst<.:c may postpone sale of all or any
<br />parcel ofthe propelty by public amlOuncement at the time and place of any previously scheduled sale. Lender or its designee may purch<lse the property at any sale.
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<br />Upon receipt of payment of the price bid, Tmstce shaU deliver to the purchaser Tlustee's dc..:d conveying thc 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 thc sale,
<br />including, but not limited to, reasonable Tmstee's fees, reasonable attorney's fees and reinstatement fees; (b) to all sums secured by this deed oftrust, 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 oftlust may be foreclosed in the manner provided by applicable law tor foreclosure of mortgages on real property.
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<br />14. Inspection. Lender may enter the propelty to inspect it if Lender giv..:s Bommer notie..: beforehand. The notice must state the reasonable cause for Lender\
<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 otber taking of aU or any palt of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the tenl1S 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 light 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 tlUst arc joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the underlying debt instluments(s) does so only to grant and convey that Bomlwer's interest in the propelty to the Tmstee under the tenns
<br />of this deed oftrust. In addition, such a Borrower agrees that the Lender and any other BOl1'ower under this deed of trust may extend, modifY or make any other changes in
<br />the tenns ofthis deed oftmst or the secured debt without that Bon'ower's consent and without releasing that Bon'ower ti'om the tenns of this deed oftmst.
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<br />The duties and benefits of this deed of trust shall bind and benefit the successors and assigns of Lender and BOl1'ower.
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<br />18. Notice. Unless otherwise required by law, <lny notice to Bon'ower shall be given by deliveting it or by mailing it by certified mail addressed to Bon'ower at the
<br />property address or any other address that Borrower has given to Lender. BOl1'ower will give any notice to Lender by certified mail to Lender's address on page I of this
<br />deed oftmst, 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 oftlUsl.
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<br />Any notice shall be deemed to h<lve been given to Borrower or Lender when giv..:n 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 p,nt of the pmpelty or any interest in it is sold or transferred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secuted debt. Lender may also demand immediate payment if the Borrower 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 fedemllaw as of the date
<br />of this deed oftrust.
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<br />20. Reconveyance. When the obligation secured by this deed or tlUSt has been paid, and Lender has no fUlther Obligation to make advances under the instluments Or
<br />agreements secured by this dced ofltust, the Trustee shall, upon written request by the Lender, reconvey the tlUSt property. The Lender shall deliver to the Borrower. or to
<br />Borrower's successor in interest, the tlUSt deed and the note or other evidence of the obligation so satisfied. BOl1'ower shall pay any recordation costs,
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Tmstee and appoint a successor tlustee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution oftlUstee for record in the office of the register of deeds or each county in which the ltust property, or some part
<br />thereof, is situated. The successor trustee, without conveyance of the property, 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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