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<br />COVENANTS
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<br />200807450
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<br />1. Payments. Bonuwer agrees to make all payments on the secured debt when due. Unless Bonuwer and Lender agree otherwise, any payments Lender receives from
<br />Borrower or for Borrower's bcnefit will be applied nrst 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. Bonuwer will pay all taxes, assessments, and other charges attributable to the property 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 Borrower to assign any rights, claims or defenses which Bonuwer may have against
<br />palties who supply labor or materials to impfOve or maintain the propelty.
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<br />3. Insurance. Borrower will keep the property insured under terms acceptable to Lender at Borrower's expense and for Lender's benefit. All Insurance policies shall
<br />include a standard mOltgage clause in favor of Lendcr. Lender will bc named as loss payee or as the insured on any such insurance policy. Any insurance proceeds may be
<br />applied, within Lendcr's discretion, to either the restomtion or repair oUhe 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. Bonuwer will keep the propClty in good condition and make all repairs reasonably necessary.
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<br />5. Expenscs. Borrower agrees to pay all Lender's expenses, including reasonable attorneys' fees, if Borrower breaks any covenants in this deed of trust 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 of trust.
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<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contest, Borrowcr 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 agreement, including Borrower's covenants to make payments
<br />when duc.
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<br />7, Assignment of Rents and Profits. BOllower assigns to Lender the rents and profits of the property. Unless Bonuwer and Lender have agreed otherwise in writing,
<br />Borrowcr 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 manage the property and collect the rents. Any rents Lender collects shall be applied IIrstto the costs of managing the property, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary rclated expenses. The remaining amount ofrents 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. Bonuwer agrees to comply with the provisions of any lease if this deed of trust is on leasehold. If this
<br />deed oftrust is on a unit in a condominium or a planned unit development, Borrowcr will perform all of Borrower's duties under the covenants, by laws, or regulations of
<br />the condominium or plalUled unit development.
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<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to perform, any of Borrower's duties under this deed of trust, Lender may perform the duties or
<br />cause them to be pcrformed. Lendcr may sign Borrower's namc 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 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 sccurity interest will be sccured 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 and Acceleration. If Bonuwer fails to make any payment when due or breaks any covenants under this deed oftrust 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 immediatc payment and may invokc 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 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 forth herein.
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<br />12. Powcr of Sale. If the Lender invokes thc power of sale, the Trustee shall first record in the omce of the register of deeds of each county wherein the trust property or
<br />some p81t or parcel thereof is situated a notice of default containing the infonnation required by law. 111e 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 than one month aller the Trustee records the notice of dcfault,
<br />or two months ifthe trust property is not in any incorpomted city or village and is used in falming operations carried on by the trustor, the Trustee shall give public notice of
<br />sale to the persons and in the manner prcscribed by applicable law. Trustee, without dClnand on Bonuwer. shall sell the property at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustce shall offer the property in two sepamte 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 propClty at any sale.
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<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's dccd 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 proceeds of the sale in the following order: (a) to all expenses of the sale,
<br />including, but not Iimitcd to, rea~onable Trustee's fees, reasonable attorney's fees and reinstatement tees; (b) to all sums secured by this deed of trust, and (c) thc balance, if
<br />any, to the pcrsons legally entitled to receive it.
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<br />13. Forcclosurc. At Lender's option, this deed of trust may be foreclosed in the manner provided by applicable law for toreclosure of mortgages on real property.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender gives Borrower notice beforchand. The notice must state the rcasonable 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 eOllilected 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 assigmnent is subject to the tenns 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 ifit happens again.
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<br />17. Joint and Several Liability; Co-signers; Successors llnd Assigns Bound. All duties under this deed of trust are joint and several. Any Borrower who co-signs this
<br />deed of trust but does not co-sign the undcrlying debt instrumcnts(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 of trust. In addition, such a Bonuwer agrees that the Lcnder and any other Borrower under this deed of trust lnay 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 Borrower from the terms of this deed of trust.
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<br />The duties and benefits 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 Bonuwer shall be given by delivering it or by mailing it by ecrtified Illail addressed to Borrower at t~e
<br />property address or any other address that Borrower has given to Lender. Borrower will give any notice to Lcnder by cerli1ied mail to Lender's add~css on page I oHhlS
<br />deed of trust, or to any other address, which Lender has designated. Any other notice to Lender shall be sent to I.cnder's address as stated on page 1 01 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 II Beneficial Interest in the Borrower. If aU or any part ofthe property or any interest in it is sold or transfcrred without the Lcnder's
<br />prior written consent, Lender may delnand immediate payment of the secured debt. Lender lnay also de?Iand immedi~te p~ym~n~ i~ the B?~ower is not a natural person and
<br />a beneficial interest in the Bonuwer is sold or transferred. However, L~der may not demand payment III the above situatIOns If tt IS prohIbIted by federal law as of the date
<br />ofthis deed of trust.
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<br />20. Reconveyancc. When the obligation secured by this deed of trust has been paid, and Lender has no further obligation to make advance~ under the instruments or
<br />agreements secured by this deed of trust, the Trustee shall, upon writtCll rcqnest by the Lender, reconvey the trust property. The Lender sh~1I dehver to the Borrower, or to
<br />Borrower's successor in intcrest, 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 'frustee and appoint a successor trustee by first, mailing a copy of the substitution oftrustee as required
<br />by applicable law, and then, by tiling thc substitution of trustee for record in the ollice of the registcr of deeds of ~ach COWlt~ in whi~h the trust property, or s~me palt
<br />thereof, is situated. 111e successor trustee, without conveyance of the pmperty, shall succeed to all the power, dutlcs, autllUflty and title of the Trustee named III thc deed of
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<br />trust and of any successor trustee,
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