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<br />200901419
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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 rcccivcs from
<br />Borrower or for Borrower's benefit will be applied first to any amounts Borrowcr owes on the secured debt exclusive of interest or principal, sccond to interest, and then to
<br />plincipaL If partial prepayment of the sccured dcbt occurs for any reason, it will not reduce or excuse any scheduled payment until the secured debt is paid in litlL
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<br />2. Claims Against Title. Borrower 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 thc lien of this deed of tmst. Lender may require Borrower to assign any rights, claims or defenses which Borrower may have against
<br />parties who supply labor or materials to improve or maintain the property.
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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 polieies shall
<br />include a standard mortgage clausc 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 damagcd property or to the secured debt. If Lender requires mortgage insurance, Borrowcr
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will kcep 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' fees, if Borrower breaks any covenants in this deed of trust or in any
<br />obligation secured by this deed oftmst. Bonowcr will pay these amounts to Lender as provided in Covcnant 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 makc 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 due.
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<br />7. Assignment of Rents and Profits. BOlTower assigns to Lender the rents and profits of thc property. Unless Borrower and Lender have agreed otherwise in writing,
<br />Borrower may collect and retain thc rents as long as Borrower is not in default. If Borrower defaults, Lender, Lcndcr'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 propctty, including court costs and
<br />attorneys' fees, commissions to rental agcnts, 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 agrecs 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 perform all of Borrower's duties under the covenants, bylaws, or regulations of
<br />the condominium or planned unit devclopment.
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<br />9. Authority of Lender to Perform for Borrowcr. 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 performed. Lender may sign Borrower's name or pay any amount if necessary for performance. If any construction on thc propctty is discontinucd or not
<br />carried on in a reasonable manner, Lender may do whatever is necessary to protect Lender's sccurity interest in the property. This may include completing thc construction.
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<br />Lender's failure to perform will not preclude Lendcr 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 security interest will be secured by this deed oftrust. Such amounts will be due on demand and will bear interest from the
<br />date of the payment until paid in full at the illterest rate in effect on the seeured debt.
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<br />10. Default and Acceleration. If Borrower fails to makc any payment whcn due or breaks any covenants undcr this dced of trust or any obligation sccured by this dced of
<br />trust or any prior mortgage or deed of trust, Lender may accelerate the lIlaturity of the secured debt and demand immediate payment and may invoke the power of salc and
<br />any othcr remcdies pennitted by applicable law.
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<br />11. Request for Notice of Default. It is hcreby rcquested that copics of thc noticcs of default and sale be sent to cach person who is a party hcrcto, at the address of each
<br />such person, as set forth herein.
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<br />12. Power of Sale. If thc Lender invokcs the power of salc, thc Trustee shall first record in thc office of the rcgister of deeds of each county wherein the trust property or
<br />some part or parccl thereof is situated a noticc of default containing thc infonnation required by law. Thc Trustee shall also niail 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 rccords thc noticc of default,
<br />or two months if the trust property is not in any incorporated 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 manncr prescribed by applicable law. Tmstee, without demand on BOITower, shall sell the property at public auction to the highest bidder. If
<br />required by the Farm Homestead Protection Act, Trustee shall oller the property in two separate sales as required by applicable law. Trustee may postpone salc of all or any
<br />parcel of the property by public mmouncement at the time mld 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 thc property. The recitials contained in Trustee's deed shall be
<br />prima facie evidience of the truth of the statements contained thcrein. Trustec shall apply thc proceeds of the sale in the following order: (a) to all cxpcnscs of the sale,
<br />including, but not limited to, reasonable Trustee's tees, reasonable attorncy's fees and reinstatcment fees; (b) to all sums secured by this deed of trust, mId (c) the balance,if
<br />any, to the persons legally entitlcd to reccive it.
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<br />13. Foreclosure. At Lender's option, this deed of trust may be fbreclosedin the manner provided by applicable law for foreclosure 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 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 alt or any part of the
<br />property. Such proceeds will be applied as provided in Covenant I. This assignment is su~iect 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 lights to later use any othcr rctnedy. By not exercising any remedy upon
<br />Borrower's default, Lender does not waive any right to latct. consider the event a default if it happens again.
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<br />17. JoInt and Severai Liability; Co-signers; Successors and Assigns Bound. All duties undcr this deed of trust are joint and. seveml. Any BOlmwer 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 thc Trustee under lhe terms
<br />of this deed of trust. In adqition, such a Borrower agrecs that the Lender and any other Borrower under this dccd of trust may extend, modify or make any othcr changes in
<br />the terms of this deed oflrust or the secured debt without that Borrower's consent and without releasing that Borrower from the terms of this deed oftmsl.
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<br />The duties and benefits of this deed oflrust shall bind and benefit the succcssors and assigns of Lender and Borrower.
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<br />18. Notice. Unless otherwisc rcquired by law, any notice to Borrower shall bc given by delivering it or by mailing it by celtified mail addrcssed to Borrower at t~e
<br />propcfty address or any othcr address that Borrower has given to Lender. Borrower will give any notice to Lender by ccrtitlcd mail to Lender's addres~ on page. I of thIS
<br />deed of trust, or to any other address, which Lender has designated. Any other notice to Lcnder shall be scnt to Lender's addrcss as stated on pagc I of this deed of trust.
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<br />Any notice shall be deemed to have been given to Bonuwer 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 ofthc property.or any.interest in it ~s sold or transf~rred without the Lender's
<br />prior written consent, Lendcr may demand immediate payment ofthc secured debt. Lender \lIay also demand lInmedl~lte p~ymcn~ I~the B?~wer IS,not a natural person and
<br />a beneficial interest in the Borrowcr is sold or transfclTed. However, Lender may not delnand payment in the above sltualtOI1S If It IS prolublted by ledcmllaw as o~thc date
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<br />oflhis deed of trust.
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<br />20. Reconveyance. When the obligation secured by this deed of trust has becn paid, and Lender has no furthcr obligation to make advanc.e~ under the instmments or
<br />agreements secured by this deed oftmst, the Tmstee shall, upon written requcst by the Lender, reconvey the tmst pl'Operty. The Lender sh~1l dehver to the Borrower, or to
<br />Borrower's successor in interest, the trust dced and the note or other evidence of the obligation so satisfied. Borrower shall pay any recordallon costs.
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<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a successor trustec by first, maiting a ~opy ?fthe substitution of trustee as requircd
<br />by applicable law, and then, by filing the substitution of trustee for record in the office of the register of deeds of ~ach county 111 whl~h the trust property, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the propelty, shall succeed to all the power, dutIes, authonty and lItle of the Trustee nalllcd 111 the deed of
<br />trust and of any successor trustce.
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