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<br />COVENANTS
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<br />200509788
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<br />l. 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 Borrower owes on thc secured debt exclusive of interest or principal, second to interest, and then to
<br />principal. Ifpartial 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 will pay all taxes, assessments, and other charges attlibutable to thc 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 Bon'owcr 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. Borrower will keep the propctty insured under tenus acceptable to Lender at Bon1lwer's expense and for Lender's benefit. All Insurance policies shall
<br />include a slllndard 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 property or to the secured deht. If Lender 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 pJ1lperty in good condition and make all repairs rcasonably necessary.
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<br />5. Expenses. Borrower agrees to pay all Lender's expenses, including reasonable attomeys' fees, if Borrowcr 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 Borrower first obtains Lender's written contcst, BOITower 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 security ilgreement, 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 thc rcnts and profits of the property. Unless BOlTOwer and Lender have agreed othelwise in wliting,
<br />Borrower may collect and retain the rents as long as Borrower is not in default. If Bon1lwer 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 court costs and
<br />attorneys' fees, corrunissions to rental agents, and any other necessary rclated expenses. The remaining amount of rents will then apply to payments on the secured debt as
<br />pJ1lvided 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 OftlUSt is on leaschold. If this
<br />deed of trust is on a unit in a condominium or a planned unit development, Bon'ower will peliil!1n all of BOITower's duties under the covenants, by laws, or regulations of
<br />the condominium or plarmed unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to pelform, any of B011"ower's duties under this deed of trust, Lender may perfiJOn the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary for pelfonnanee. If any construction on the property is discontinued or not
<br />carried on in a reasonable marmer, Lender may do whatever is necessary to protect Lender's security interest in the propelty. This may include completing the constIuction.
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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 oftIus!.
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<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed oftlust. 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 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 Defanlt. It is hereby reqnested 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 shall first record in the office of the register of deeds of each county wherein the ltust propelty or
<br />some part or parcel thereof is situated a notice of default containing the infonnation required by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each persbll 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 if the trust property is not in any incorporated city or village and is used in fanning operations canied on by the trustor, the Trustce shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on BOITower, shall sell the plllpClty at public auction to the highest hidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the property in two separdte 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 shall deliver to the purchaser Tlustee's dced conveying the propelty. 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 attomey's fees and reinstatement fees; (b) to all sums secured by this deed oftrust, and (c) the halance, 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 for foreclosure of mortgages on real propelty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Bon'ower notice beforehand. The notice must state the reasonable cause lilr Lender's
<br />inspection.
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<br />15. Condemnation. Borrower assigns to Lender the pJ1lceeds of any award or claim for damages cOlUlected with a condemnation or other taking of all or any palt of the
<br />pJ1lperty. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the tenus of any prior seculity agreement.
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<br />16. Waiver. By exercising any remedy available to Lender, Lender does not give np 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; Suceessors and Assigns Bound. All duties under this deed of tIllSt are joint and several. Any B011"ower who co-signs this
<br />deed of trust bnt does not co-sign the underlying debt instruments(s) does so only to grant and convey that Borrower's interest in the property to the Trustee under the tenns
<br />of this deed of trust. In addition, such a Borrower agrees that the Lender and any other BOI11lwer under this dced of trust may extend, modify or make any other changes in
<br />the terms ofthis deed of trust or the secured debt without that BOlTOwer's consent and without releasing that BOlTowcr from the tenns of this deed of trust
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<br />The duties and benefits of this deed of trust shall bind and benefIt the snccessors 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 certified mail addressed to B011"ower at the
<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 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 the Borrower. If all or any palt of the propelty or any interest in it is sold or transfelTed without the Lender's
<br />prior written consent, Lender may demand immediate payment of the sccnred debt. Lender may also demilnd 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 federal law as of the date
<br />of this deed of trust.
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<br />20. Reeonveyance. When the obligation secured by this deed of trust has been paid, and Lender has no fUlther obligation to make advances under the instillments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust propelty. The Lender shall deliver to the BOl1"ower, or to
<br />Borrower's snccessor in interest, the trust deed and the note or other evidence of the obligation so satisfied. Borrower shall pay any recordation costs.
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<br />21. Suceessor Trnstee. Lender, at Lender's option, may remove Trustee and appoint a successor tIustee by first, mailing a copy of the substitution of trustee as reqnired
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register of deeds of each county in which the trust property, or some patt
<br />thereof, is situated. The successor trustee, without conveyance ofthe propetty, 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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