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<br />COVENANTS
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<br />I. 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 Bon'owcr's benefit will be applied first to any amounts Bonuwer owes on the secured deb~ Ilxclusive 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 will pay all taxes, assessments, and other charges athibutable to the pl"Operty when due and will defend title to the pl"Opelty 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 Borrower may have against
<br />palties who supply labor or materials to improve or maintain the PlUPcrty.
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<br />3. Insnrance. Borrower will keep the property insured under tenns acceptable to Lender at Borrower's expense and for Lender's benet1t. 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 pl"Oceeds 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, Borrower
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will keep the property 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' fecs, if B011"()wer 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 Bonuwer first obtains Lender's written contest, Borrower will not make or pennit any changes to any prior security interests.
<br />B(jtTowe.- will perform all of Borrower's obligations-under any prior mortgage,- deed of trust or other security agreement, including B011"()wer's covenants t<:Hnake payments
<br />when due.
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<br />7. AssignmentOfRentsand Proflts.B011"()wer- asslgiis'toLeluler the rents and profits of the property. Unless Borrower and Lender have agreed otherwise in writing,
<br />B011"()wer may collect and retain the rents as long as Bonuwer is not in default. If Borrower 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' tees, 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 />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned LJnit Developments, Bon'owcr agrccs to comply with the provisions of any lease if this deed ofhust is on leasehold. If this
<br />deed of trust is on a unit in a condominium or a planned unit development, Borrower will perfonn 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 Pertorm for Borrower. If Bon'ower fails to pCtfonll, any of Bon'ower's dutics under this deed OftluSt, Lender may perfonn the duties or
<br />cause them to be perfonned. Lender may sign Borrower's name or pay any amount if necessary for perfonnance. If any construction on the pl"Operty is discontinued or not
<br />camed 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 rights under the law or this deed of trust.
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<br />Any amounts paid by Lender to protect Lender's seculity interest will be secured by this deed of trust. 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 aud Acceleration. If BOlTower 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 />hust or any plior mOltgage or deed of tmst, 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 />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 fOlth herein.
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<br />12. Power of Sale. If the Lender invokes the power of sale, the Tmstee shall tirst record in the oftice of the register of deeds of each county wherein the tlUst property or
<br />some part 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 default to the
<br />Bormwer, to each person who is a palty hereto, and to other persons as presctibed by applicable law. Not less than one month after the Trustee records the notice of default,
<br />or two months if the hust propelty is not in any inCOlporated city or village and is used in fanning operations carried on by the trustor, the Trustee 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 property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee 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 propelty 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 plicc bid, Tlustce shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima tacie evidience of the truth of the statements contained therein. Tmstee 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 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. Foreelosure. At Lender's option, this deed of trust may be foreclosed in the manner pl"Ovided by applicable law for foreclosure of mortgages on real property.
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<br />14. Inspection. Lender may enter the propelty to inspect it if Lender gives Borrower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15. Condemnation. BOITower 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. Tllis assignment is subject to the terms of any plior 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 docs 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 B011"()wer who co-signs this
<br />deed of hust but does not eo-sign the underlying debt instruments(s) does so only to grant and convey that Bon'ower's interest in the property to the Trustee under the tenns
<br />of this deed of tmst. In addition, such a Borrower agrees that the Lender and any other Bonuwcr under this deed of tmst may extend, modify or make any other changes in
<br />the terms of this deed of trust or the secured debt without that Borrower's consent and without releasing that B011"()wer from the terms of this deed of trust.
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<br />The duties and benefits of this dee<! of tmst sbaIl. billd 1I1ld bMef~-._igns of Lender ll11dBorrower.
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<br />18. Notice. Unless otherwise required by law, any notice to Bonuwer shall be given by delivering it or by mailing it by certified mail addressed to Borrower at the
<br />propeIty address or any other address that B011"()wer 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 ofttust, 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 oftmst.
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<br />Any notice shall be deemed to have been given to Borrower or Lender when given in ihlmannerstAtelI above.
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<br />19. Transfer of the Property or a Beneflcial1nterest 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 />Plior written consent, Lender may demand immediate payment of the secured debt. Lender may also demand immediate payment if the Borrower is not a natural person and
<br />a beneficial interest in the BOlTower is sold or transferred. However, Lender may not demand payment in the above situations if it is prohibited by federal law as ofthe date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation secured by tllis deed of trust 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 property. The Lender shall deliver to the B011"()wer, or to
<br />BOlTower's successor in interest, the trust deed and the note or other evidence of the obligation so satisfied. B011"()wer shall pay any recordation costs.
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<br />2 I. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor tmstee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution of trustee tor record in the office of the register of deeds of each county in which the trust property, or some part
<br />thereot: 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 />tlUSt and of any successor ttustee.
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