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<br />COVENANTS
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<br />200902541
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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 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. BOI11lwer will pay all taxes, assessments, and other charges attributahle 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 tlUSt. Lender may require BOI11lwer to assign any rights, claims or defenses which Borrower may have against
<br />pmties who supply labor or materials to improve or maintain the property.
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<br />3. Insurance. Borrowcr will keep the property insured under terms aceeptahle 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. 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 property or to the secured debt. If Lender requires m01tgage insurance, Borl1lwer
<br />agrees to maintain such insurance for as long as Lender requires.
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<br />4. Property. Borrower will keep the property in good condition and make all repairs reasonably necessary.
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<br />5. Expenses. Borrower agrees to pay all I,ender's expenses, including reasonable attorneys' fees, if Borrower breaks any eovcnants in this deed 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 first obtains Lender's written contest, Borrower 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 makc payments
<br />when duc.
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<br />7. Assignment of Rents and Profits. Borrower assigns to Lender the rents and pl1lfits of the property. Unless Borrower and Lender have agreed otherwise in writing,
<br />Borrower may collect and retain the rcnts as long as Borrower is not in dcfault. If Borrower dcfaults, Lender, Lender's agent, or a court appointed receiver may take
<br />possession and manage thc propelty and collect the rcnts. Any rents Lender collects shall be applied first to the costs of managing the pl1lperty, including court costs and
<br />attorneys' fees, commissions to rental agents, and any other necessary related expenses. The remaining amount of rents will then apply to payments on the secured deht as
<br />provided in Covenant I.
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<br />8. Leaseholds; Condominiums; Planned JJnit Developments. BOll1lWer 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 perform 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 fails to perfonu, 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 pcrform 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 I ,cnder's sccurity interest will be secured by this deed of trust. Such amounts will be due on demand and will bear interest Ii'om the
<br />date of the payment until paid in full at the interest rate in effcct 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 permittcd by applicable law.
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<br />I I. 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 sct 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 of deeds of each county wherein the trust pl1lperty or
<br />some part or parcel thereof is situated a noticc of dcfault containing the infonnation required 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 than one month after the Trustee records the notice of defaull.,
<br />or two months if the trust property is not in any incorporatcd city or village and is used in fanning operations carried on by the trustor, the Trustce 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 property at public auction to the highest bidder. If
<br />required by the Falm Homestead Protection Act, Trustee shall offer the property in two separate sales as required by applicable law. Trustee may postpone sale of all or any
<br />parccl of the property by public atmouncement 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 pricc bid, Trustec shall deliver to the purchaser Trustee's deed conveying the property. The recitials contained in Trustcc's deed shall be
<br />prima facie evidience of the truth of the statements eontaincd therein. Trustee shall apply the proceeds 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 dccd of trust, and (c) the balance, if
<br />any, to the persons lcgally entitled to receive it.
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<br />13. Foree1osure. At Lender's option, this deed of trust may be foreclosed in the manner provided by applicable law for foreclosure of mortgages on real pl1lperty.
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<br />14. Inspection. Lender may enter the property to inspect it if Lender givcs Borrower notice beforchand. 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 condelnnation or other taking of all or any part of the
<br />property. Such pl1leeeds will be applied as pl1lvided in Covenant I. This assignment is subject to the tenus 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 usc 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 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) docs so only to grant and convey that Borrower's interest in the property to thc Trustee under the terms
<br />of this deed of trust. In addition, such a Borrower -agrees that the Lender and any other Bom)wer undcr this deed of trust may extend, modify or make any other changes in
<br />the terms of this dccd oftrust or the securcd debt without that Borrower's consent and without releasing that Borrower from the terms of this deed oftrust.
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<br />The duties and benefits ofthis 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 dclivCling it or by mailing it by certified mail addressed to Borrower at the
<br />pl1lpelty address or any other address that Borrowcr has given to Lender. Borrower will give any noticc to Lender by certified mail to Lender's add~es~ on page 1 of this
<br />deed of trust, or to any other addrcss, which Lender has designated. Any other notice to Lender shall be sent to Lcnder's address as stated on page I 01 thIS deed oftms!.
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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 a Beneficial Interest in the Borrower. If all or any part of the property.or any.interest in it ~s sold or transf~rred without the I,cnder's
<br />prior written consent, Lender may dcmand immediate payment of the secured debt. Lender may also demand 1I11medlate payment I I' the Borrower IS not a natuml person and
<br />a beneficial interest in the Borrower is sold or transferred. 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 tlUSt.
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<br />20. Reconveyance. When the obligation secured by tins 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 written request by the Lender, reconvey the trust property. The Lender sh~ll dehver to the Borrower, or to
<br />Borrower's succcssor in interest, the trust deed and the note or other evidence ofthc obligation so satisfied. Borrower shall pay any recordatIOn costs.
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<br />21. Snccessor Trustee. Lendcr, at I ,ender's option, may remove Trustee and appoint a successor trustee by first, mailing a copy of the substitution of trustee as required
<br />by applicable law, and then, by filing the substitution oftlUstee for record in the office of the register of deeds of ~aeh eount~ in whi~h th~ trust propelty, or s~me part
<br />thereof, is situated. The successor trustee, without conveyance of the property, shall succeed to all the power, dutIes, authonty and lIt1e 01 the Trustee named III the deed of
<br />trust and of any sueecssor trustee.
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