Deed to Secure Debt

STATE OF ______________


THIS INDENTURE, Made the [day] day of [month], [year], in the year [spell out year], by and between ______________, of the County of [County] and State of [State] and __________________ of the County of [County] and State of [State], as party or parties of the first part, hereinafter called Grantor, and ________________, of the County of [County] and State of [State], as party of the second part, hereinafter called Grantee.

WITNESSETH, That Grantor, for the consideration hereinafter set forth, in hand paid at and before the sealing and delivery of these presents, the receipt and sufficiency of which are hereby acknowledged, has granted, bargained, sold, aliened, conveyed, and confirmed, and by these presents does grant, bargain, sell, alien, convey, and confirm unto the said Grantee, all that tract or parcel of land known by its common street address as: [address], [State] and being more specifically and completely described as follows:

THIS CONVEYANCE is made under the provisions of the existing Code of the State of [State] to secure a debt (and interest thereon and other indebtedness as described herein) evidenced by Promissory Note dated, [date] and made by Grantor to order of Grantee, for the principal sum of: [spell out sum] and [x]/100 ($________) Dollars, with interest (payable monthly) from the date at the rate of __________ (___%) per centeum per annum on said principal sum, or on so much thereof as may from time to time remain unpaid; said principal and interest being payable in monthly installments of [spell out sum] and [x]/100 ($_____) Dollars each, on the first day of [month], [year] and continuing to and including [day] [month], [year]; each installment, when paid, to be applied first to the payment of interest accrued on the unpaid principal and the residue thereof to be credited on the principal and the balance of principal and interest shall be payable on the [#] day of [month], [year], both principal and interest payable in lawful money of the United States of America at the following address: [address] designated by Holder hereof, in _____________, ______________ ________, or at such other place as the Holder of this Note may designate in writing.

The indebtedness hereby secured includes any renewal or extension of any part or all of said indebtedness; and if any portion of said indebtedness or any provision of this instrument shall be held invalid for any reason, it is the intent of the parties that such portion shall be severable, and such invalidity shall not affect the remainder of said debt or instrument. Any one of several persons named as Grantee herein or their assigns may receive payment of the secured indebtedness and execute a valid cancellation or re-conveyance hereof. No release of any part of the property herein described or extension of all or any part of the indebtedness hereby secured, shall affect the personal liability of any person upon the indebtedness hereby secured, nor the priority of this instrument.

TO HAVE AND TO HOLD the said bargained property with all and singular the rights, members, and appurtenances thereto appertaining, to the only proper use, benefit, and behoof of Grantee, in fee simple, and Grantor hereby covenants that Grantor is lawfully seized and possessed of said property, and has a good right to convey it, and it is unencumbered; and Grantor, the said bargained property, unto Grantee, against Grantor, and against all and every other person or persons shall and will WARRANT AND FOREVER DEFEND.

Should the indebtedness hereby secured be paid according to the tenor and effect thereof when the same shall become due and payable, and should Grantor perform all covenants herein contained, then this Deed shall be canceled and surrendered, it being intended by the parties hereto that this instrument shall operate as a deed, and not as a mortgage.

If all or any part of the property or an interest therein is sold or transferred by Grantor without Grantee's prior written consent, excluding (a) the creation of a lien or encumbrance subordinate to this Deed, (b) the creation of a purchase money security interest for household appliances, (c) a transfer by devise, descent, or by operation of law upon the death of a joint tenant, or (d) of the grant of any leasehold interest of three years or less not containing an option to purchase, Grantee may at Grantee's option declare all the sums secured by this Deed to be immediately due and payable. Grantee shall have waived such option to accelerate if, prior to the sale or transfer, Grantee and the person to whom the property is to be sold or transferred reach an agreement in writing that the credit of such person is satisfactory to Grantee herein and the interest payable on the sums secured by this Deed shall be at such rate as Grantee herein may establish.

Acceptance by Grantee of one or more installment payments on the indebtedness secured thereby subsequent to any sale or change in ownership or possession of said Property, or any part thereof, and to which the Grantee has not granted her written consent, shall not constitute a waiver of the Grantee's option to accelerate, which may be exercised by Grantee at any time.

The Grantor covenants and agrees, so long as any indebtedness secured hereby shall remain unpaid, to keep the property and all improvements thereon in as good condition as now exists, natural wear and tear excepted, and also not to demolish, destroy, or remove any permanent structure now existing on the premises or make any alteration thereon that would constitute a structural change without the written consent of the Grantee; to pay all taxes and assessments that may be liens upon said property, as they become due; and to keep the improvements on said property fully insured, by an insurance company authorized to do business in the state in which the property is located, against loss by fire and such other hazards as may, from time to time, be required by Grantee in amounts and companies and with mortgage clause approved by Grantee naming Grantee as a loss payee (and if Grantee shall not have specified an amount hereunder, then in an amount equal to not less than the aggregate indebtedness at any time outstanding against the property), and shall deliver the policies (or other appropriate proof) of insurance and any renewals thereof to the said Grantee; and that any tax, assessment, prior lien, or premium of insurance not paid when due by the Grantor may be paid by the Grantee, and any sum so paid shall be added to the amount of said principal debt as part thereof, shall draw interest from the time of said payment at the rate of ten per cent per annum, and shall, with interest, be covered by the security of this Deed.

AND Grantor hereby further covenants and agrees that in case of any default in any partial payment of said indebtedness or in the due performance of any of the covenants herein expressed to be performed by Grantor, then and in that event, the entire amount of said principal indebtedness, together with any and all sums paid for account of Grantor in accordance with the provisions above set forth, shall, at the option of Grantee, then and thereby become and be due and payable forthwith, with accrued interest, and all expenses and cost of collection, including fifteen per centum of the amount due as attorney's fees, and the amount of such costs, expenses, and fees shall be added to the amount of the debt hereby secured as part thereof, and as such shall also be covered by the security of this Deed; and time is the essence of this contract.

Should default occur in the payment of any portion of the indebtedness secured hereby, or taxes, or insurance premiums herein mentioned, or in the performance of any obligation or condition recited herein, then and in that event Grantee shall be at liberty immediately to apply for and shall be entitled as a matter of right, without regard to the value of the property above described, or to the solvency or insolvency of Grantor, to the appointment of a receiver to collect the rents and profits of said property and with the power to sell said property under order of court and apply the net proceeds of the sale toward the payment of the debt secured by this Deed.

In consideration of the loan made Grantor by Grantee, and further to secure the indebtedness of Grantor to Grantee hereunder, Grantor hereby sells, assigns, and transfers to Grantee all of the rent which shall hereafter become due or be paid on the above described property; but Grantee agrees that this rent assignment will not be enforced so long as no default on the part of Grantor exists under the terms and conditions of this Deed, and while no such default exists, Grantee waives its rights to and its interest in said rents, but upon any default in the performance of any agreement or covenant to be performed by Grantor under the terms of this Deed, Grantor agrees that Grantee may enter upon said property and collect the rents therefrom, and hereby constitutes Grantee as Grantor's agent to declare the existence of a default hereunder, and Grantor hereby agrees that any tenant in said property or any renting agent in charge thereof shall be, and is hereby, authorized when a default shall be so declared to exist, to pay any such rents to Grantee, to be applied toward the payment of the debt secured hereby or as provided by law.

The title, interest, rights, and powers granted herein by Grantor to Grantee, particularly the power of sale granted herein, shall inure to the benefit of anyone to whom Grantee shall assign the indebtedness herein secured, and/or convey the property herein described, as well as to the successors and legal representatives of Grantee.

Upon the occurrence of an event of default under the Note secured hereby and this Deed to Secure Debt and prior to placing an advertisement for notice of foreclosure and sale of the property, the Grantee herein agrees to: (a) notify Grantor in writing of such default, specifying the nature thereof and the actions necessary to cure said default; (b) permit Grantor to cure such default within thirty (30) days from the date of such notice by making payment or doing such other act or things that may be considered by the Grantee herein necessary or proper.

In case the debt hereby secured shall not be paid when it becomes due by maturity in due course, or by reason of a default as herein provided, Grantor hereby grants to Grantee, the following irrevocable power of attorney: To sell all or any part of the said property at auction, at the usual place for conducting sales at the Court House in the County where the land or any part thereof lies, in said State, to the highest bidder for cash, after advertising the time, terms, and place of such sale once a week for four weeks immediately preceding such sale (but without regard to the number of days) in a newspaper published in the County where the land or any part thereof lies, or in the paper in which the Sheriff's advertisements for such County are published, all other notices being hereby waived by Grantor, and Grantee (or any person on behalf of Grantee) may bid and purchase at such sale and thereupon execute and deliver to the purchaser or purchasers at such sale sufficient conveyance of said property in fee simple, which conveyance may contain recitals as to the happening of the default upon which the execution of the power of sale herein granted depends, and Grantor hereby constitutes and appoints Grantee the agent and attorney in fact of Grantor to make such recitals, and hereby covenants and agrees that the recitals so made by Grantee shall be binding and conclusive upon Grantor, and that the conveyance to be made by Grantee shall be effectual to bar equity of redemption of Grantor in and to said property, and Grantee shall collect the proceeds of such sale, and after reserving therefrom the entire amount of principal and interest due, together with the amount of taxes, assessments, and premiums of insurance or other payments theretofore paid by Grantee, with ten per centum per annum thereon from date of payment, together with all costs and expenses of sale and fifteen per centum of the aggregate amount due for attorney's fees, shall pay any over-plus to Grantor as provided by law.

AND Grantor further covenants that in case of a sale as hereinbefore provided, Grantor, or any person in possession under Grantor, shall then become and be tenants holding over and shall forthwith deliver possession to the purchaser at such sale, or be summarily dispossessed, in accordance with the provisions of law applicable to tenants holding over.

The power and agency hereby granted are coupled with an interest and are irrevocable by death or otherwise and are granted as cumulative to the remedies for collection of said indebtedness provided by law.

It is agreed that the Grantee shall be subrogated to the claims and liens of all parties whose claims or liens are discharged or paid with the proceeds of the loan secured hereby.

Whenever the terms "Grantor" or "Grantee" are used in this Deed such terms shall be deemed to include the heirs, administrators, executors, successors, and assigns of said parties. All rights and powers herein granted to the Grantee shall inure to and include his, her, its, or their respective heirs, administrators, executors, successors, and assigns, and all obligations herein imposed on the Grantor shall extend to and include Grantor's heirs, administrators, executors, successors, and assigns

IN WITNESS WHEREOF, Grantor has caused this instrument to be executed and sealed the day and year first above written.

____________________________(Seal) Grantor

____________________________(Seal) Grantor

________________________________ Witness (Unofficial)

________________________________ Notary Public