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<br />COVENANTS
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<br />200510051
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<br />1. Payments. BOlTOwer agrees to make all payments on the secured debt when due. Unless BOlTower and Lender agree otherwise, any payments Lender receives ti'om
<br />BOlTOwer or for BOlTOwer's benefit will be applied first to any amounts Bon1Jwer 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. BOlTower will pay all taxes, assessments, and other charges attributable to the propelty when due and will defend title to the propelty against
<br />any claims which would impair the lien of this deed of hust. Lender may require BOlTower to assign any tights, claims or defenses which BOlTower may have against
<br />parties who supply labor or materials to improve or maintain the pmperty.
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<br />3. Insurance. BOlTower will keep the propetty insured under terms 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 insurance, B01l'OWer
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. BOlTOwer will keep the pmperty in good condition and make all repairs reasonably necessalY.
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<br />5. Expenses. BOlTOwer agrees to pay all Lender's expenses, including reasonable attol1leys' fees, if Bon'ower breaks any covenants in this deed of tlUst or in any
<br />obligation secured by this deed of trust. Bonuwer will pay these amounts to Lender as provided in Covenant 9 of this deed ofttust.
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<br />6. Prior Security Interests. Unless BOlTower first obtains Lender's written contest, Bon'ower will not make or pennit any changes to any Plior security interests.
<br />Bonuwer will perfonn all of Bon'ower's obligations under any prior mortgage. deed of llust or other seculity agreement, including BOlTOwer's covenants to make payments
<br />when due.
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<br />7. Assignment of Rents and Profits. BOlTOwer assigns to Lender the rents and pmfits of the propelty. Unless BOlTower and Lender have agreed otherwise in wliting,
<br />BOlTOwer may collect and retain the rents as long as Bonuwer is not in default. If Bon1Jwer defaults, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and manage the propelty and collect the rents. Any rents Lender colleC1S shall be applied fIrst to the costs of managing the property, including COUlt costs and
<br />attorneys' fees, cOlIunissions 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 Unit Developments, BOlTower 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, BUlTower will perfonn all of BOlTower's duties under the covenants, by Jaws, or regulations of
<br />the condominium or planned unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Bon.ower fails to pedonn, any of BOlTower's duties under this deed of trust, Lender may pelform the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessalY for perfonnanee. If any eOllstluction on the property is discontinued or nol
<br />carried on in a reasonable manner, Lender may do whatever is necessary to protect Lender's security interest in the propelty. This may include completing the constluction.
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<br />Lender's failure to penonn will not preclude Lender from exercising any of its other rights under lhe law or this deed ofhust.
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<br />Any amounts paid by Lender to protect Lender's security interest will be secured by this deed of tlUSt. Such amounts will be due on demand and will bear i Ilteresl fhml lhe
<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 he senl to each person who is a palty 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 or deeds of each county wherein lhe trust propelty or
<br />some part or parcel thereof is situated a notice of default containing the inti.mnation required by law. The Truslee shall also mail copies of the notice of default to the
<br />Bonuwer, to each person who is a party hereto, and to other persons as preselihed by applicable law. Not less thall one monlh after the Tlustee 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 Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand 011 BOlTower, shall sell the propelty at public auction to the highest hidder. If
<br />required by the Fann Homestead Protection Act, TlUstee shall offer the propelty in two separate sales as required hy applicable law. Trustee may postpone sale or all or any
<br />pareel ofthe property by public announcement at the time and place of any previously scheduled sale, Lender or its designee may purchase the propelty at any sale,
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<br />Upon receipt of payment of the price bid, TlUstee shall deliver to the purehaser TlUstee's deed conveying the propelty. The recitials contained in TlUstee's deed shall he
<br />prima facie evidienee of the truth of the statements contained therein. TlUstee shall apply the proceeds of lhe 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) 10 all sums secured by this deed oftlUst, 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 provided by applicable law ('Ir fi.,reclosure of mOlt gages on real propelty.
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<br />14. Inspection. Lender may enter the propelty to inspect it if Lender gives Bon'ower notice beforehand. The notice must state the reasonable cause for Lender's
<br />inspection.
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<br />15, Condemnation. BOlTOwer assigns to Lender the proceeds of any award or claim for damages connected with a eondemnalion or other taking of all or any pan of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is subject to the tenns of any prior seculity 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 ifit happens again.
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<br />17. Joint and Several Liability; Co-signers; Successors and Assigns Bound, All duties under this deed of llust arc joint and several. Any Bon'Ower 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 BOlTOwer's interest in the property to the Trustee under the ternlS
<br />oftbis deed of trust. In addition, such a Bon'ower agrees that the Lender and any other BOITower under this deed OftlUSt may extend, modifY or make any other changes in
<br />the tenns of this deed OftlUSt or the secured debt without that BOII1JWer'S consent and without releasing that Bon.ower from the tenns of this deed OftlUSt.
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<br />The duties and benefits of this deed of tlUst shall 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 BOlTOwer shall be given by de\ivel;ng it or by mailing it by eenified mail addressed to Bon'Ower at the
<br />property address or any other address that BOlTower has given to Lender. Bon'ower will give any nOlice to Lender by celtitled 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 he senl 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 BOlTOwer 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 an or any patt of the propelty or any interest in it is sold or transfe11'ed without the Lender's
<br />prior written consent, Lender may demand immediate payment of the secured deht. Lender may also demand immediate payment if the BOlTower is not a natural person and
<br />a beneficial interest in the BOlTOwer is sold or trans felTed. 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. Reconveyance. When the obligation secured by this deed of hust has been paid, and Lender has no fUlther obligalion to make advances under lhe instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon written request by the Lender, reconvey the hust property. The Lender shall deliver to the Bmmwer, or to
<br />BOlTOwer's successor in interest, the tlUSt deed and the note or other evidence of the obligation so satisfled. Borrower shall pay any recordation costs.
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<br />21. Successor Trustee, Lender, at Lender's option, lnay remove TlUstee and appoint a successor trustee by Ilrst, mailing a copy of the substitution oftlUstee as required
<br />by applicable law, and then, by filing the substitution oftlUstee for record in the of1lce 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 of the property, shall succeed to all the power, duties, authmity and title of the Trustee named in the deed of
<br />trust and of any successor trustee.
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