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201602898
<br />FOR THE PURPOSE OF SECURING:
<br />a. Payment of indebtedness in the total principal amount of $280,000.00, with
<br />interest thereon at the rate of 3% per annum, as evidenced by that certain Promissory
<br />Note of even date ( "The Note ") with a maturity date of May 1 , 2021, unless extended for
<br />an additional five year term by Buyer, said note executed by Trustor, which has been
<br />delivered and is payable to the order of Beneficiaries, and which by this reference is
<br />made a part hereof, and any and all modifications, extensions and renewals thereof;
<br />b. Payment of all sums advanced by Beneficiary to protect the Trust Estate; with
<br />interest at the rate of 10% per annum (default rate).
<br />This Deed of Trust, the Promissory Note, and Security Agreement, if any, the
<br />Agreement for Sale and Purchase of Real Estate and any other instrument given to
<br />evidence or further secure the payment and performance of any obligation secured
<br />hereby are referred to collectively as the "Loan Instruments ".
<br />TO PROTECT THE SECURITY OF THIS DEED OF TRUST:
<br />1. PAYMENT OF INDEBTEDNESS. Trustor shall pay when due the principal of, and
<br />the interest on, the indebtedness evidenced by the Note, charges, fees and all other sums as
<br />provided in the Loan Instruments.
<br />2. REAL ESTATE TAXES. Trustor shall pay the annual real estate taxes by payment
<br />into an escrow account at Equitable Bank a monthly amount for taxes and insurance pursuant
<br />to the Agreement for Sale and Purchase of. Real Estate executed by and between the parties.
<br />Beneficiaries shall then physically cause the taxes and insurance to be paid before the taxes
<br />become delinquent and shall furnish tax receipts to Trustor on or before May 1 and September
<br />1 each year.
<br />3. INSURANCE AND REPAIRS. Trustor shall cooperate with Beneficiaries to
<br />maintain fire and extended coverage insurance now existing insuring the improvements and
<br />buildings constituting part of the Trust Estate for an amount no less than the amount of the
<br />unpaid principal balance of the Note. Such insurance policy shall contain a standard
<br />mortgage clause in favor of Beneficiaries and shall not be cancelable, terminable, or
<br />modifiable without ten (10) days prior written notice to Beneficiaries. Trustor shall promptly
<br />repair, maintain and replace the Trust Estate or any part thereof so that, except for ordinary
<br />wear and tear, the Trust Estate shall not deteriorate. in no event shall the Trustor commit
<br />waste on or to the Trust Estate.
<br />4. ACTIONS AFFECTING TRUST ESTATE. Trustor shall appear in and contest any
<br />action or proceeding purporting to affect the security hereof or the rights or powers of
<br />Beneficiaries or Trustee, and shall pay all costs and expenses, including cost of evidence of
<br />title and attorney's fees, in any such action or proceeding in which Beneficiaries or Trustee
<br />may appear. Should Trustor fail to make any payment or to do any act as and in the manner
<br />provided in any of the Loan instruments, Beneficiaries and /or Trustee, each in its own
<br />discretion, without obligation, may make or do the same in such manner and to such extent as
<br />either may deem necessary to protect the security hereof. Trustor shall, immediately upon
<br />demand therefor by Beneficiaries, pay all costs and expenses incurred by Beneficiaries in
<br />connection with the exercise by Beneficiaries of the foregoing rights, including, without
<br />limitation, costs of evidence of title, court costs, appraisals, surveys and attorney's fees. Any
<br />such costs and expenses not paid within ten (10) days of written demand shall draw interest at
<br />the default rate provided in the Note.
<br />5. EMINENT DOMAIN. Should the Trust Estate, or any part thereof or interest therein,
<br />be taken or damaged by reason of any public improvement or condemnation proceeding, or in
<br />any other manner including deed in lieu of Condemnation ( "Condemnation "), or should Trustor
<br />receive any notice or other information regarding such proceeding, Trustor shall give prompt
<br />written notice thereof to Beneficiaries. Beneficiaries shall be entitled to all compensation and
<br />condemnation awards and other payments or relief therefor, and shall be entitled to make any
<br />compromise or settlement in connection with such taking or damage. All such compensation
<br />and condemnation, awards, damages, rights of action and proceeds awarded to Trustor (the
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