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<br />COVENANTS
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<br />200807034
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<br />1. Payments. BOlTower 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 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. Bon1lwer will pay all taxes, assessments, and other charges attributable to the property when due and will defend title to the propelty against
<br />any claims which would impair the lien of this deed of trust. Lender may require Borrower to assign any rights, claims or defenscs which Borrower may have against
<br />parties who supply labor or materials to impmve or maintain the pmpClty.
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<br />3. Insurance. Bormwer will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lendcr's benelll. All Insurance policies shall
<br />include a standard mortgage clause in favor of Lender. Lender will be namcd 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 pmpClty or to the secured debt. If Lender requires mortgage insurance, Borrower
<br />agrees to maintain such insurance tor as long as Lender requires.
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<br />4. Property. Borrower will keep the propClty 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' fees, if Borrower breaks any covenants in this dccd 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 llrst obtains Lender's written contest, Borrower will not make or permit 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 agrcement, 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 the rents and pmfits or the property. Unless Borrower and Lender have agreed otherwise in writing,
<br />Borrower may collect and retain the rents as long as Borrower is not in default. If Borrower defaults, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and managc thc property and collect the rents. Any rcnts Lender collects shall be applied first to thc costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rcntal 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. 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 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 Perform for Borrower. If Borrower [ails to perform, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to be performed. Lender may sign Borrower's name or pay any amount if necessary 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 perform will not preclude Lender fmm 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 security interest will be secured by this deed oftrust. Such amounts will be due on demand lllld 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 hust, 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 />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 hercto, at the address of each
<br />such person, as sct forth herein.
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<br />12. Power of Sale. If the Lender invokes thc powcr of sale, the Trustee shall first record in the office of the register of dceds of each county wherein the trust property or
<br />some part or parcel thClwf is situated a notice of default containing the intonnation rcquircd by law. The Trustee shall also mail copies of the notice of default to the
<br />Borrower, to each person who is a party hereto, and to other persons as prescribed by applicable law. Not less tJlan one month after the Trustee records the notice of dcfault,
<br />or two months if the trust pmperty is not in any incorporated city or village and is used in farming operations calTied on by the tmstor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Bon1lwer, shall sell the pmpClty at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall offer the pmperty in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel ofthe 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 Trustee's deed conveying the property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained therein. Trustee shall apply the procceds 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 of trust, 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 for foreclosure of mortgages on real pmperty.
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<br />14. Inspection. Lender may enter the property 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. 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. TIus assignment is subject to the tenns of any prior security agreement.
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<br />16. Waiver. By exercising any rClnedy available to Lender, Lender does not give up any lights 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 underthis deed of trust are joint and several. Any Borrower 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 Borrower's interest in the property to the Trustee under the terms
<br />of this deed oftrust. In addition, such a Borrower agrees that the Lender and any othcr Borrower under this deed of trust may extend, modify or make any othcr changes in
<br />the terms of this deed oftrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms ofthis deed oftrust.
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<br />The duties and benet1ts of this deed of trust 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 Borrower shall be given by delivering it or by mailing it by certified mail addressed to Borrower at the
<br />pmperty 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 1 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 1 of this deed oftrust.
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<br />Any notice shall be deemed to have been given to BOITower 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 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 ofthe secured debt. Lender may also demand immediate payment if the Borrower is not a natural person and
<br />a beneficial interest in the Borrowcr is sold or transferred. However, Lendcr may not dClnand payment in the above situations if it is prohibited by federal law as ofthc date
<br />of this deed of trust.
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<br />20. Reconveyance. When the obligation sccured by this deed of trust has been paid, and Lender has no further obligation to make advance~ under the instrumcnts 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 dehver to thc Borrower, or to
<br />Borrower's successor 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. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor ttustee by first, lnailing a copy of the substitution oftrustee as rcquired
<br />by applicable law, and then, by filing the substitution oftrustee for record in the office of the register of decds of ~ach count~ in whi~h the trust pmperty, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the pmpcrty, shall succeed to al1 tbe powcr, dutIes, authonty and tltle of the Tmstee named III the decd of
<br />trust and of any successor trustee.
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