DEED OF
TRUST
GENERAL
FORM
Deed
of trust made on ____________(date), between ______________________, of
_________________________________________ (Address),
referred to as trustor,
__________________________________________________________________, of
_____________________________________________________________ (address), referred to as trustee, and
_______________________________________________, of ________________________________________
(address), referred to as
beneficiary.
Trustor,
in consideration of the indebtedness recited below, irrevocably grants,
bargains, sells, assigns, and conveys to trustee in trust, with power of sale,
the property in ____________________________________________________________________
(Location and Address) described
as ________________________________________
_________________________________________________
(Description of Property),
together with all the tenements, hereditaments, and appurtenances now or
hereafter belonging or in any wise appertaining. To have and to hold the same, with the appurtenances, unto
trustee.
For
the purpose of securing performance of each agreement of trustor and of
securing payment of the sum of _____________ (amount) ($________)
with interest thereon according to
the terms of a ________________ (Note or
Bond), dated ____________ (month & day),____ (year) payable to
beneficiary or order and made or executed by trustor, the final payment of principal
and interest, if not paid sooner, to be due and payable on _______ (month &
day),_____ (year) at the office of ___________________________, at
__________________________ (Address), or at such other place as beneficiary may
designate in writing delivered or mailed to trustor. The terms of the __________ (Note
or Bond) are incorporated by reference.
Trustor
covenants and agrees as follows:
1. PAYMENT OF INDEBTEDNESS
1.1 Trustor shall pay the indebtedness, as
provided above. Trustor reserves the right
and privilege to prepay at any time, without premium or fee, the entire
indebtedness or any part of it not less than the amount of one installment, or _________________
(amount) ($________), whichever is
less. Any prepayment made on other than
an installment due date will not be credited until the next following
installment due date.
2. OWNERSHIP OF PROPERTY
2.1 Trustor is lawfully seized (in possession)
of _____________________________
__________________________________________________ (Description of Estate) and, except as otherwise stated, the
premises are free from any encumbrances.
Trustor hereby warrants the usual covenants to the same extent as a
statutory ______________ ____________ (warranty)
deed under the laws of ____________________ (State),
and all covenants herein made, and trustor will defend against any breach of
any such covenant.
3. CONTINUED EFFECTIVENESS
3.1 The provisions of this instrument shall
remain in full force and effect during any postponement or extension of the
time of payment of the indebtedness or any part of it.
4. TAXES AND ASSESSMENTS
4.1 Trustor shall pay all taxes, assessments,
water rates, and other governmental or municipal charges, fines, or
impositions; and, in default thereof, beneficiary may pay the same.
5. WASTE; REPAIR OR REMOVAL OF STRUCTURES
5.1 Trustor shall not commit waste or authorize
the repair or the removal of any structures on the premises, and shall not do
or permit any act that may lawfully result in the creation of a lien or claim
on the land or the improvements of equal or prior rank to the claim of this
trust deed without prior written consent of beneficiary; but shall maintain the
property in as good condition as at present, reasonable wear and tear
excepted. On any failure to so
maintain, beneficiary, at its option, may cause reasonable maintenance work to
be performed at trustor‘s cost.
6. INSURANCE
6.1 Trustor shall maintain continuously hazard
insurance of such type or types and amounts as beneficiary may from time to
time require on the improvements now or hereafter on the premises, and shall
pay promptly when due any premiums for such insurance. All insurance shall be carried with
companies approved by beneficiary, and the policies and renewals shall be held
by beneficiary and provide that loss be payable solely and in form acceptable
to beneficiary. In event of loss, trustor shall give immediate notice by mail
to beneficiary, who may make proof of loss if not made promptly by trustor, and
each insurance company concerned is hereby authorized and directed to make
payment of the loss directly to beneficiary, rather than to trustor and
beneficiary jointly. The insurance
proceeds, or any part of them, may be applied by beneficiary, at its option,
either to the reduction of the indebtedness hereby secured or to the
restoration or repair of the property damaged.
In the event of a conveyance to beneficiary, or other transfer of title
to the premises in extinguishment of the indebtedness secured hereby, all
right, title, and interest of trustor in and to any insurance policies then in
force shall pass to the purchaser or grantee.
7. BENEFICIARY PAYMENT IN EVENT OF DEFAULT
7.1 If trustor defaults in any of the covenants
or agreements contained in this trust deed, or in the _______________ (Note or Bond) secured by it, then
beneficiary, at its option, may perform the same. All expenditures made by
beneficiary in so doing shall draw interest at the rate provided for in the
principal indebtedness, and shall be repayable by trustor to beneficiary, and,
together with interest and costs accruing thereon, shall be secured by this
trust deed.
8. SUPPLEMENTAL NOTES
8.1 On beneficiary’s request, trustor shall
execute and deliver a supplemental note or notes for the sum or sums advanced
by beneficiary for the alteration, modernization, improvement, maintenance, or
repair of such premises, for taxes or assessments against the same, and for any
other purpose authorized under this trust deed. The note or notes shall be secured by this trust deed with equal
priority and as fully as if the advance evidenced thereby were included in the
__________ (Note or Bond) first
described above. The supplemental note
or notes shall bear interest at the rate provided for in the principal
indebtedness and shall be payable in approximately equal ________________
(monthly) payments for such period as may be agreed on by trustor and
beneficiary. On the failure to agree on
the maturity, the whole of the sum or sums so advanced shall be due and payable
__________ days after beneficiary‘s demand.
In no event, shall the maturity extend beyond the ultimate maturity of
the __________ (Note or Bond)
first described above.
9. RIGHT OF BENEFICIARY TO APPEAR
9.1 Beneficiary may appear in and defend any
action or proceeding purporting to affect the security of this trust deed, and
trustor shall pay all costs and expenses, including the costs of evidence of
title and reasonable attorney fees, in any such action or proceeding in which
beneficiary may appear.
10. WAIVER OF NOTICE
10.1 Trustor waives notice of the exercise of any
option granted to beneficiary in this trust deed or in such __________ (Note or Bond).
11. CONDEMNATION
11.1 Any award of compensation or damages in
connection with any condemnation for public use of or injury to the premises or
any part of them is hereby assigned and shall be paid to beneficiary, who may
apply or release such moneys received in the same manner and with the same
effect as provided above for the disposition of fire or other insurance
proceeds.
12. NONWAIVER OF RIGHTS
12.1 Beneficiary’s accepting payment of any sum
secured by this trust deed after its due date shall not constitute a waiver of
its right either to require prompt payment when due of all other sums so
secured or to declare default for failure so to pay.
13. RIGHTS OF TRUSTEE
13.1 At any time or from time to time, without
liability therefor and without notice, on beneficiary‘s written request and
presentation of this trust deed and such __________ (Note or Bond) for Endorsement, and without affecting the
personal liability of any person for payment of the indebtedness secured by
this trust deed, trustee may: reconvey all or any part of the premises; consent
to the making of any map or plat thereof; join in granting any easement
thereon; or join in any extension agreement or any agreement subordinating this
trust deed to subsequent liens or charges.
14. RECONVEYANCE
14.1 On beneficiary’s written request stating that
all sums secured by this trust deed have been paid, and on surrender of this
trust deed and such _____________________ (Note
or Bond) to trustee for cancellation and retention, and on payment
of trustee‘s fees, trustee shall reconvey, without warranty, the property then
held under this trust deed. The
recitals in any reconveyance accepted under this trust deed of any matters or
facts shall be conclusive proof of their truthfulness. The grantee in such reconveyance may be
described as “the person or persons legally entitled thereto.”
15. RENTS, ISSUES, AND PROFITS
15.1 As additional security, trustor hereby gives
to and confers on beneficiary the right, power, and authority during the
continuance of the interests created by this trust deed to collect the rents,
issues, and profits of the premises, reserving to trustor the right, prior to
any default by trustor in payment of any indebtedness secured by this trust
deed or in the performance of any agreement under this trust deed, to collect
and retain such rents, issues, and profits as they become due and payable. On any such default, beneficiary may at any
time without notice, either in person, by agent, or by a court-appointed
receiver, and without regard to the adequacy of any security for the
indebtedness secured by this trust deed, enter on and take possession of the
premises or any part of them, in its own name sue for or otherwise collect such
rents, issues, and profits, including those past due and unpaid, and apply the
same, less costs and expenses of operation and collection, including reasonable
attorney fees, on any indebtedness secured by this trust deed, and in such
order as beneficiary may determine. The
entering on and taking possession of the premises, the collection of the rents,
issues, and profits, and the application thereof as stated above shall not cure
or waive any default or notice of default under this trust deed or invalidate
any act done pursuant to such notice.
16. DEFAULT; BANKRUPTCY
16.1 On default by trustor in payment of any
indebtedness secured by this trust deed, or in performance of any agreement
herein contained, or if trustor is adjudicated bankrupt or made defendant in a
bankruptcy or receivership proceeding, all sums secured by this trust deed
shall, at beneficiary’s option, immediately become due and payable. In the event of default, beneficiary shall
execute or cause trustee to execute a written notice of such default and of
beneficiary‘s election to cause the above-described property to be sold to
satisfy the obligation hereof, and shall cause such notice to be recorded as
then required by law.
16.2 On notice of sale as then required by law and
elapse of the then-required time period after recordation of notice of default,
trustee, without demand on trustor, shall sell the property at the time and
place of sale fixed by it in the notice of sale, either as a whole or in separate
parcels and in such order as it may determine, at public auction to the highest
and best bidder for cash, payable at the time of sale. Trustee may postpone the sale of all or any
part of the property by public announcement at the time and place of sale, and
from time to time thereafter may postpone the sale by public announcement at
the time fixed by the preceding postponement.
Trustee shall deliver to the purchaser its deed conveying the property
so sold, but without any covenant or warranty, express or implied. The recitals in the deed of any matters or
facts shall be conclusive proof of the truthfulness thereof. Any person, including trustor, trustee, or
beneficiary, as defined under this trust deed, may purchase at such sale.
16.3 After deducting all costs, fees, and expenses
of trustee and of this trust, including the cost of evidence of title and
reasonable counsel fees in connection with the sale, trustee shall apply the
proceeds of the sale to the payment of all sums expended under the trust terms,
not then repaid with accrued interest at the rate provided on the principal
debt, all other sums then secured by this trust deed, and the remainder, if
any, to the person or persons legally entitled to receive them.
17. APPLICATION OF TRUST DEED
17.1 This trust deed applies to, inures to the
benefit of, and binds all parties to this agreement, their heirs, legatees,
devisees, administrators, executors, successors, and assigns. The term “beneficiary” shall mean the holder
and owner, including pledgee, of the _____________ (Note or Bond) secured by this trust deed, whether or not
named as a beneficiary herein. Whenever
the context of this trust deed so requires, the masculine gender includes the
feminine and/or neuter, and the singular number includes the plural.
18. ACCEPTANCE OF TRUST
18.1 Trustee accepts this trust when this trust
deed, duly executed and acknowledged, is made a public record as provided by
law. Trustee is not obligated to notify
any party to this trust deed of any pending sale under any other trust deed or
of any action or proceeding in which trustor, beneficiary, or trustee shall be
a party, unless brought by trustee.
19. SUCCESSOR TRUSTEE
19.1 Beneficiary may, from time to time, as
provided by statute, appoint another trustee in place of trustee herein named,
and on such appointment, trustee herein named shall be discharged and the
trustee so appointed shall be substituted as trustee with the same effect as if
originally named trustee.
20. MULTIPLE TRUSTEES
20.1 If two or more persons are designated as
trustee, all powers granted to trustee may be exercised by any of such persons,
if the other person or persons are unable, for any reason, to act; and any
recital of such inability in any instrument executed by any of such persons
shall be conclusive against trustor, or trustor’s heirs and assigns.
__________ (If appropriate, add:
_______________________, the _____________ (wife or husband) of trustor,
for the above-stated consideration, hereby relinquishes __________ (her or
his) right of __________ (dower or curtesy) ______________ (and
homestead) in and to the above-described premises.)
20.2 The undersigned trustor requests that a copy
of any notice of default and of any notice of sale under this trust deed be
mailed to trustor‘s address set forth above.
In
witness whereof, trustor has executed this trust deed the day and year first
written above.
________________________________ ______________________
Signature
Date
________________________________
______________________
Signature
Date
