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<br />COVENANTS
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<br />200806021
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<br />1. Payments. Bon1lwer agrccs to makc all payments on the secured debt when due. Unless Bon1lwer and Lender agree otherwise, any payments Lender receives from
<br />Bormwer or for BOITower's benefit will be applied first to any amounts Bormwer 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. Bon'owcr will pay all taxes, assessments, and other charges attributable to the pmperty when due and will defend title to the pmperty against
<br />any claims which would impair the lien of this deed of trust. Lender may require Bormwer to assign any rights, claims or defenses which Bormwer may have against
<br />palties who supply labor or materials to impmve or maintain the property.
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<br />3. Insurance. Bormwer will keep the property insured under tenns 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 insurance policy. Any insurance pmceeds may be
<br />applied, within Lender's discretion, to either the restoration or repair of the damaged property or to the secured debt. If Lender requires mortgage insurance, Bormwer
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Bormwer will keep thc pmpetty in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Bon'ower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Bormwer breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed of trust. Bon'ower 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 Bormwer first obtains Lender's written contest, Bormwer will not make or permit any changes to any prior security interests.
<br />Bormwer will pelfonn all of Bon'owcr's obligations under any prior mortgage, deed of trust or other security agreement, including Bormwer's covenants to make payments
<br />when due.
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<br />7. Assignmcnt of Rcnts and Profits. Borrower assigns to Lender the rents and profits of the property. Unless Bormwer and Lender have agreed otherwise in writing,
<br />Bon'owcr may collect and retain the rents as long as Bormwer is not in default. If Bormwer defaults, Lender, Lender's agent, or a court appointed receiver may take
<br />posscssion and manage the propelty and collect the rents. Any rents Lender collects shaH be applied first to the costs of managing the property, including court costs and
<br />attol11eys' 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 />pmvided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned Unit Dcvelopments. BOlTOwer agrees to comply with the provisions of any lease if this deed of trust is on leasehold. If this
<br />deed of tmst is on a unit in a condominium or a planned unit development, Bormwer 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 lails to perform, any of Borrower's duties under this deed of tmst, Lender may perfonn the duties or
<br />cause them to be pelfonned. Lender may sign BOlTOWer'S name or pay any amount if necessary for pertonnance. If any construction on the property is discontinued or not
<br />canied on in a reasonable manner, Lender may do whatever is necessary to protect Lender's security interest in the pmperly. This may include completing the constmction.
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<br />Lender's lililure to perform 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 Lendcr to protect Lender's seculity interest will be secured by this deed oftmst. Such amounts will be due on demand and will bear interest from the
<br />date of the paymcnt ulllil paid in full at the interest rate in effect on the secured debt.
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<br />10. Default and Acceleration. If BOlTower fails to make any payment when due or breaks any covenants under this deed oftmst or any obligation secured by this deed of
<br />ttust or any ptior 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 pennitted by applicable law.
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<br />11. Request for Notice of Default. It is hcreby 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 lorth 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 trust property or
<br />some patt or parcel thereof is situated a notice of default containing the information required by law. The Tmstee shall also mail copies of the notice of detault to the
<br />BOlTower, 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 if the tlust pmpelty is not in any incorporated city or village and is used in farming operations camed on by the tmstor, the Tmstee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Tmstee, without demand on Bormwer, shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Tlustee shall offer the property in two separate sales as required by applicable law. Tmstee may postpone sale of all or any
<br />parcel of the pmpetty by public announcemcnt at the time and place of any previously scheduled sale. Lender or its designee may purchase the pmperty at any sale.
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<br />Upon receipt of payment of thc plice bid, Tmstee shall deliver to the purchaser Tmstee's deed conveying the property. The reeitials contained in Tmstee's deed shall be
<br />ptima facie evidience 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 attorney's fees and reinstatement fees; (b) to all sums secured by this deed oftmst, 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 pmvided by applicable law for foreclosure of mortgages on real property.
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<br />14. Inspection. Lender may cnter the propelty to inspect it if Lender gives BOITOwer notice beforehand. The notice must stl!te the reasonable cause for Lender's
<br />inspcction.
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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 taking of all or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This 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 this deed of trust are joint and several. Any Bormwer who co-signs this
<br />deed of trust but does not co-sign the underlying dcbt instmments( s) does so only to grant and convey that BOn1lwer's interest in the property to the Trustec under the tenns
<br />of this deed of tmst. In addition, such a BOI11lWer agrees that the Lender and any other Borrowcr under this deed of trust may extend, modity or make any other changes in
<br />the tenns of this deed of trust or the secured debt without that Borrower's consent and without releasing that BOn1lwer from the terms of this deed of trust.
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<br />The duties and bcnelhs of tllis deed of tmst shall bind and benetit the successors and assigns of Lender and Borrower.
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<br />18. Notice. Unless othclwise required by law, any notice to Borrower shall be given by delivering it or by mailing it by certified mail addressed to Bormwer at the
<br />property address or any other address that Borrower has given to Lender. Bormwer will give any notice to Lender by certified mail to Lender's address on page I of this
<br />decd 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 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 Intcrest in the Borrower. If all or any part of the property or any interest in it is sold or transferred without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immediate payment if the Bormwer is not a natural person and
<br />a beneficial interest in thc Bon-ower is sold or transterred. 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 oftmst.
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<br />20. Reconveyance. When the obligation secured by this deed of tmst has been paid, and Lender has no further obligation to make advances under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the trust properly. The Lender shall deliver to the Borrower, or to
<br />Borrower's successor in interest, the tmst deed and the note or other evidence ofthe obligation so satisfied. Bormwer shall pay any recordation costs.
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<br />21. Sncccssor Trustec. Lender, at Lender's option, may remove Trustee and appoint a successor trustee by first, mailing a copy ofthe substitution oftmstee as required
<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 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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