|
<br />COVENANTS
<br />
<br />200902045
<br />
<br />1. Payments. BOITower agrees to make all payments on the ~ecured debt when due. Unless Borrower and Lender agree otherwise, any payments Lendcr rcceive~ from
<br />Borrower or for Borrower's benefit will he applied first to any amounts Borrower owes on the secured debt exclusive of interest or principal, second to interest, and then to
<br />ptincipal. 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.
<br />
<br />2. Claims Against Title. Bonuwer will pay all taxe~, 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 tru~t. Lender may require Borrower to assign any rights, claim~ or dcfen~e~ which Bom.Mer nmy have against
<br />partie~ who supply labor or materials to improve or maintain the property.
<br />
<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 mortgage clause in favor of Lender. Lendcr will be named as loss payee or as the insured on any snch in~umnce policy. Any insurance pmceeds may be
<br />applied, within Lender's discretion, to either thc restomtion or repair of the damaged propelty or to the secured debt. If Lender requires mortgage insurancc, Borrower
<br />agrees to maintain such insurance for a~ long as Lender requires.
<br />
<br />4. Property. Borrower will keep the pmperty in good condition and make all repairs reasonably nece~sary.
<br />
<br />5. li.::I'penses. 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 oftrust. Borrower will pay the~e amounts to Lender as pmvided in Covenant 9 of this deed oftru~t.
<br />
<br />6. Prior Security Interests. Unless Borrower first obtains Lender's written contest, Borrower will not make or permit any changes to any prior security interests.
<br />Borrower will perform all of Horrower's obligations under any prior mortgage, deed of trust or other security agreement, including Borrower's covenants to make payments
<br />when due.
<br />
<br />7. Assignment of Rents and Profits. Bonuwer assigns to Lender the rents and profit~ of the property. Unless Borrower and Lender have agreed otherwi~e in wliting,
<br />Borrower may collect and retain the rents as long as Borrower is not in default. If Horrower defaults, Lcndcr, Lendcr'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 propetty, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary rclated expenses. The remaining amount of rent~ will then apply to payments on the secured debt as
<br />provided in Covenant l.
<br />
<br />8. Leaseholds; Condominiums; Planned Unit Developments. Borrower agrees to comply with the provisions of any lease ifthis deed oftru~t is on lcasehold. If this
<br />deed of trust is on a unit in a condominium or a planned unit developmcnt, Borrower will perform all of Borrower's duties under the covcnants, by laws, or regulations of
<br />the condominium or planned unit developmcnt.
<br />
<br />9. Authority of Lender to Perform for Borrower. If Borrower fails to pcrform, any of Borrow.er's duties under this deed of trust, Lender may pcrronn thc duties or
<br />cause them to be perJormed. Lender may sign Horrower'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 con~truction.
<br />
<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.
<br />
<br />Any amounts paid by Lender to protcct Lender's security interest will be secured by this deed oftrust. Such amounts will be due on dcmand and will bcar interest tWIU the
<br />date ofthe payment until paid in full at the interest rate in effect on the secured debt.
<br />
<br />10. Default and Acceleration. If Borrower fails to makc any payment when due or breaks any covenants under this deed oftrust or any obligation secured by this deed of
<br />tru~t or any prior mortgage or deed of tlUSt, Lender may accelerate the maturity of the secured debt and demand immediate payment and may invoke the power of salc and
<br />any other remedies pennitted by applicable law.
<br />
<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 hcrein.
<br />
<br />12. Power of Sale. If the Lender invokes the power of sale, the TlUstee shalll1rst record in the otlice of the register of deeds of each county wherein the tlUst property or
<br />some part or parccl thereof i~ situated a notice of default containing the infonnation required by law. The Trustee shall also mail copies of the notice of default (0 the
<br />Bom.)wer, 10 each person who is a party hereto, and to other persons as prescribed by applicable law. Not less than one month after the TlUstee records the noticcof default,
<br />or two months if the tlUSt propelty is not in any incorporated city or village and is u~ed in fanning opcmtion~ carried on by the tlUstor, the TlU~tce shall give public notice of
<br />sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the pmperty at public auction to the highest bidder. If
<br />required by the Fann Homestead Protection Act, Trustee shall offer the properly in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parcel of the propetty by public announcement at the timc and placc of any previou~ly scheduled ~alc. Lender or its designee may purchase the propelty at any sale.
<br />
<br />Upon rcccipt of payment of the price bid, Trustee shall deliver to the purchascr Trustee's deed conveying thc propcrty. Thc recitials contained in Trustee's deed shall be
<br />prima facie cvidience of the truth of the statcment~ contained therein. Trustce ~hall apply the pmceed~ of the sale in the following' oixIer: (a) to <ill 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) thc balancc, if
<br />any, to the peffions legally entitled to rcceive it.
<br />
<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 propelty.
<br />
<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 Lendcr's
<br />inspection.
<br />
<br />15. Condemnation. Borrower as~igns to Lender the proceeds of any a~ard or claim for damage~ connected with a condemnation or other taking of all or any part of the
<br />property. Such proceeds will be applied a~ provided in Covenant 1. This assignment is ~ubject to the tenns of any prior security agreement.
<br />
<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 lIny right to later consider the event a default if it happens again.
<br />
<br />17. Joint and Several Liability; Cocsil>:ners; Successors and Assigns Bound. All duties under this deed of trust are joint and scvcral. Any Borrower who co-~igns 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 fhe tcrms
<br />of this deed of trust. In addition, such a BotTower agrees that the Lender and any other BOITower under this deed of tlU~t may extend, modify or make any other changes in
<br />the tcrms ofthis deed of trust or the secured debt without that Horrower's consent and without releasing that Borrowcr from the terms of this deed of trust.
<br />
<br />The duties and beneJits of this deed of trust shall bind and benefit the ~uccessors and assigns of Lender and Borrower:
<br />
<br />18. Notice. Unless otherwise requircd by law, any notice to BOlmwer ~hall be given by delivering it or by mailing it by cettificd mail addressed to Borrower at the
<br />property addrcss or any other address that Borrower has given to Lender. Borrower will give any notice to Lender by certiJied mail to Lcnder's address on page I of this
<br />deed oftru~t, or to any other address, which Lender has designated. Any other noticc to Lender shall be sent to Lender's address as statcd on page I of this deed oftrust.
<br />
<br />Any notice shall be deemed to have been given to Borrower or Lender when given in the manner stated above.
<br />
<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 conscnt, Lender may demand immediate payment of the secured debt. Lender may also demand immediate payment if the BOlluwer is not a natural pcrson and
<br />a beneficial interest in the Borrower is sold or transferred. However, Lender may not demand payment in thc above situations if it i~ pmhibited by federal law as of the date
<br />of this deed of trust.
<br />
<br />20. Reconveyance. When thc obligation secured by this deed of trust ha~ been paid, and Lender has no Ji.trther obligation to make advance~ tinder the instrumcnts or
<br />agreemetlts ~ccured by this deed of trust, the Trustee shall, upon written requc~t by the Lender, reconvcy the trust propelty. The Lender shall deliver to the Bon-owcr, or to
<br />Horrower's successor ill interest, the trust dced and the note.or other evidence onhc obligation so satisfied. Horrower shall pay any recordatIOn costs.
<br />
<br />21. Successor Trustee. Lender, at Lender's option, may remove Trustee and appoint a ~uccessor trustee hy first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by ming the substitution oftlUstee forrecord in the office of the register of deeds of~ach count~ in whi~h th~ frust pmperty, or s~me patt
<br />thereof, is situated. The ~uccessor trustee, without conveyance of the propelty, shall succeed to all the power, dutIes, authonty and tItle of the Trustee named III the deed of
<br />
<br />trust and of any successor tlUstee.
<br />
|