Deed of Trust and Security Agreement Page 1 of 11 Prepared by: Return to: State of MississippiCounty of ________________________ Judicial District DEED OF TRUST AND SECURITY AGREEMENT (Right to Substitute Trustee at Will) Name and Address of Grantor/Beneficiary:Name and Address of Trustee: Name and Address of Secured
Party/Beneficiary: See Legal Description Attached as Exhibit A Indexing Instructions:
Deed of Trust and Security Agreement Page 2 of 11 WHEREAS, the undersigned Grantor, ________________________ , whose mailing
address is ____________________________________ , hereinafter called "Grantors," owes
____________________________________, a Mississippi Corporation having its principal
office at ______________________________, and whose mailing address is
____________________________________, hereinafter called the "Beneficiary," the sum
of ________________________ ($____________), evidenced by a Promissory Note of
even date herewith, bearing interest from date at the rate of ______ Percent (______%) per
annum, as follows, to-wit: One Promissory Note of even date herewith in the amount of
____________________________________ ($____________ ), bearing
interest from date at the rate of ____________ Percent (______%) per
annum, due and payable in ____________ (______) monthly installments of
__________________ Dollars ($______) each, and one final balloon
payment of ________________________ ($______), the first of said
monthly installments being due and payable on the ______ day of
____________, ______, and with a similar monthly installment being due
and payable on the ______ day of each and every month thereafter until all
of said __________________ (______) installments have matured, and said
balloon payment falling due on the ______ day of ____________ , ______.And, whereas, the undersigned are anxious to secure the payment of said
indebtedness at the maturity thereof; therefore in consideration of
____________________________________ ($____________) to them paid by
________________________, Trustee, the receipt of which is hereby acknowledged, the
undersigned Grantors, whether one or more, do hereby convey and warrant unto
________________________, Trustee, the following-described real estate, together with
any buildings and improvements thereon (or that may hereafter be erected thereon) and the
hereditaments and appurtenances and all other rights thereunto belonging or in anywise now
or hereafter appertaining, which said real estate, with the improve ments thereon, is situated
in __________________ County, State of Mississippi, and is described as follows, to-wit: [See Exhibit A]together with all fixtures and attachments which are now or hereafter attached to the herein
described real estate, or improvements or buildings thereon, and all goods which are to
become fixtures attached to the herein described real estate or improvements or buildings
thereon; said fixtures, attachments and goods include, but are not limited to, all heating,,
plumbing,, water heating and cooling, air conditioning, water conditioning, lighting,
refrigerating, cooking,, laundry, incinerating and ventilating equipment, and any other
goods which become so related to the real estate herein described that an interest in them
arises under the real property law of the State of Mississippi. This Deed of Trust shall be
effective as a financing statement filed as a fixture filing; provided, however, this
instrument shall not operate as a waiver of any of Beneficiary's rights or interests in said
fixtures and attachments arising under the real property law of the State of Mississippi. All
Deed of Trust and Security Agreement Page 3 of 11 property included in this Deed of Trust and described above is hereinafter called "real
estate" or "Property." APPENDIX CIt is understood and agreed that this conveyance is made subject to and that the parties
hereto have agreed on and are bound by and will observe and fulfill the following
covenants, stipulations, and conditions as obligatory upon the respective parties:1)In addition to the aforesaid indebtedness and any and all extensions or renewals
of the same, or any part thereof, this instrument is intended to secure and does secure any
and all debts that the said Grantors may incur with or owe the said Beneficiary during the
term of this loan, whether the same be evidenced by note, open account, assignment, endorsement, or otherwise, and said Grantors promise to pay
said debts at their maturity. 2)Payment of Principal and Interest. Grantors shall promptly pay when due the
principal of and interest on the indebtedness evidenced by the Note, prepayment and late
charges as provided in the Note, and the principal of and interest on any future advances
secured by this Deed of Trust. 3) Funds for Taxes and Insurance. UPON WRITTEN NOTICE AND
DEMAND FROM BENEFICIARY TO GRANTORS, Grantors shall pay to Beneficiary on
the day monthly installments of principal and interest are payable under the Note, until the Note
is paid in full, a sum (herein "Funds") equal to ____________ (______) (fraction) of the yearly
taxes and assessments which may attain priority over this Deed of Trust, plus ____________
(______) (fraction) of yearly premium installments for hazard insurance, all as reasonably
estimated initially and from time to time by Beneficiary on the basis of assessments and bills and
reasonable estimates thereof. The Funds shall be held in an interest or non-interest bearing
account or accounts of Beneficiary's choosing, and Beneficiary and Beneficiary's servicing agent
are hereby given authority to commingle such Funds with other accounts held or operated by
Beneficiary or its servicing agent. Beneficiary shall apply the Funds to pay said taxes, assess-
ments, and insurance premiums. Grantors and Beneficiary may agree in writing at the time of
execution of this Deed of Trust that interest on the Funds shall be paid to Grantors, and unless
such agreement is made or applicable law requires such interest to be paid, Beneficiary shall not
be required to pay Grantors any interest or earnings on the Funds. If Beneficiary pays Grantors
interest on said Funds, Beneficiary may charge a reasonable fee for handling, analyzing and
verifying said Funds and making said tax and insurance premium payments. The Funds are
pledged as additional security for the sums secured by this Deed of Trust. If the amount of the
Funds held by Beneficiary, together with the future monthly installments of Funds payable prior
to the due dates of taxes, assessments, and insurance premiums, shall exceed the amount required
to pay said taxes, assessments, and insurance premiums as they fall due, such excess shall be, at
Grantors' option, either promptly repaid to Grantors or credited to Grantors on monthly
installments of Funds. If the amount of the Funds held by Beneficiary shall not be sufficient to
pay taxes, assessments and insurance premiums as they fall due, Grantors shall pay to
Beneficiary any amount necessary to make up the deficiency within ____________ (______)
Deed of Trust and Security Agreement Page 4 of 11 days from the date notice is mailed by Beneficiary to Grantors requesting payment thereof.
Upon payment in full of all sums secured by this Deed of Trust, Beneficiary shall promptly
refund to Grantors any Funds held by Beneficiary. If under paragraph 21 hereof the Property is
sold or the Property is otherwise acquired by Beneficiary, Beneficiary shall apply, no later than
immediately prior to the sale of the Property or its acquisition by Beneficiary, any Funds held by
Beneficiary at the time of application as a credit against the sums secured by this Deed of Trust. 4) Application of Payments. Unless applicable law provides otherwise, all
payments received by Beneficiary under the Note and paragraphs 2 and 3 hereof shall be applied
by Beneficiary first in payment of amounts payable to Beneficiary by Grantors under paragraph
3 hereof, then to interest payable on the Note, then to the principal of the Note, and then to
interest and principal on any future advances. 5)Charges; Liens. Grantors shall pay all taxes, assessments, and other charges,
fines and impositions attributable to the Property which may attain a priority over this Deed of
Trust in the manner provided under paragraph 3 hereof or, if not paid in such manner, by
Grantors making payment, when due, directly to the payee thereof. Grantors shall promptly
furnish to Beneficiary all notices of amounts due under this paragraph, and in the event Grantors
shall make payment directly, Grantors shall promptly furnish to Beneficiary receipts evidencing
such payments. 6) Hazard Insurance. Grantors shall keep the improvements now existing or
hereafter erected on the Property insured against loss by fire, windstorm, earthquake, and other
hazards included within the term "extended coverage," and such other hazards as Beneficiary
may require (including flood insurance if the Property shall at any time be located in an
identified "flood prone area" in which flood insurance has ever been made available pursuant to
the United States Flood Disaster Protect Act of 1973, or any similar Act now in effect), and such
hazard insurance shall be in such amounts and for such periods as Beneficiary may require;
provided, that Beneficiary shall not require that the amount of such coverage exceed that amount
of coverage required to pay the sums secured by this Deed of Trust. The insurance carrier providing the insurance shall be chosen by Grantors subject to
approval by Beneficiary; provided, that such approval shall not be unreasonably withheld. All
premiums on insurance policies shall be paid in the manner provided under paragraph 3 hereof
or, if not paid in such manner, by Grantors making payment, when due, directly to the insurance
carrier. All insurance policies and renewals thereof shall be in form acceptable to Beneficiary
and shall include a standard mortgagee clause in favor of, and in form acceptable to, Beneficiary.
Beneficiary shall have the right to hold the policies and renewals thereof, and Grantors shall
promptly furnish to Beneficiary all renewal notices and all receipts of paid premiums. In the
event of loss, Grantors shall give prompt notice to the insurance carrier and Beneficiary.
Beneficiary may make proof of loss if not made promptly by Grantors. Unless Beneficiary and Grantors otherwise agree in writing, insurance proceeds shall be
applied to restoration or repair of the Property damaged, provided such restoration or repair is
economically feasible and the security of this Deed of Trust is not thereby impaired. If such
Deed of Trust and Security Agreement Page 5 of 11 restoration or repair is not economically feasible or if the security of this Deed of Trust would be
impaired, the insurance proceeds shall be applied to the sums secured by this Deed of Trust, with
the excess, if any, paid to Grantors. If the Property is abandoned by Grantors, or if Grantors fail
to respond to Beneficiary within ____________ (______) days from the date notice is mailed by
Beneficiary to Grantors that the insurance carrier offers to settle a claim for insurance benefits,
Beneficiary is authorized to collect and apply the insurance proceeds at Beneficiary's option
either to restoration or repair of the Property or to the sums secured by this Deed of Trust.Unless Beneficiary and Grantors otherwise agree in writing, any such application of
proceeds to principal shall not extend or postpone the due date of the monthly installments
referred to in paragraphs 2 and 3 hereof or change the amount of such installments. If under
paragraph 21 hereof the Property is acquired by Beneficiary, all right, title and interest of
Grantors in and to any insurance policies and in and to the proceeds thereof resulting from
damage to the Property prior to the sale or acquisition shall pass to Beneficiary to the extent of
the sums secured by this Deed of Trust immediately prior to such sale or acquisition. 7)In the event the Grantors or any of them, or their vendees of the Property herein
conveyed, immediate or remote, should become insolvent, or apply to a bankruptcy court to be
adjudicated a voluntary bankrupt, or proceedings be instituted to put them in involuntary
bankruptcy, or should any proceedings be taken against the Grantors or their said vendees,
immediate or remote, or either of them, looking to the appointment of a receiver, assignee, or
trustee, or should any default be made in the payment of the indebtedness secured hereby, or
should there be any breach of the covenants or agreements contained herein, then in either or any
such case all rents becoming due thereafter on the Property herein conveyed shall, at the option
of the Beneficiary, be due and payable to the Beneficiary herein to be applied to the indebtedness
secured hereby, and the whole indebtedness hereby secured may, at the option of said
Beneficiary or its assigns, be declared due and payable. 8) The undersigned further represents unto the said Beneficiary for the purpose of
obtaining the loan or of obtaining deferred payment on the debt, as the case may be, secured by
this instrument, that there are no liens, leases, or encumbrances of any sort against the Property
conveyed herein, except, if any, as shown by the records of said County, and except for the
leases described in the Assignment of Leases executed this day by Grantors to Beneficiary.9)The Grantors agree not to abandon said Property, and a breach of this condition
shall cause the entire indebtedness secured hereby to become due and payable at the option of the
said Beneficiary or its assigns. 10)If the title to all or any part of the Property described herein is sold, conveyed or
transferred by act of the Grantors, or if Grantors enter into a contract to sell said Property or any
part thereof, or leases with an option to purchase, or change or permit to be changed the
character or use of said Property, or drill or extract or enter into a lease for the drilling for, or the
extracting of, oil, gas, or other hydrocarbon substances of any kind or character on said Property,
the indebtedness secured hereby shall, at the option of the Beneficiary or the legal holder of the
indebtedness, become immediately due and payable, and a failure to pay the same within
Deed of Trust and Security Agreement Page 6 of 11 ____________ (______) days after such transfer of title shall constitute a default hereunder
according to the terms and conditions of this instrument. If the maturity date of said Note is
accelerated due to any such sale of the Property, Grantors agree to use as much of the proceeds
of any such sale as necessary to pay the remaining principal and interest due on the Note, as well
as any other sums due pursuant to any document securing said indebtedness for benefit of
Beneficiary, and Grantors do hereby grant a security interest in such proceeds to Beneficiary. 11)Should the Grantors fail to pay, as hereinabove stipulated, all taxes, assessments,
liens, or judgments, or to insure the Property and pay the premiums therefor, then the said
Beneficiary, its successors and assigns, may at its option pay any such unpaid taxes, assessments,
liens, or judgments, and insure said improvements, pay the premiums therefor, and, without
notice, at its option, declare the whole debt secured by this Deed of Trust to be due and payable
and proceed to foreclose same at once. All taxes, assessments, liens, judgments, and insurance
premiums paid by the said Beneficiary, and all necessary expenses incurred by said Beneficiary
in connection therewith, including any expense incurred in defending the title of the Grantors to
this real estate, where necessary for the protection of the said Beneficiary's interests, or in
defending this Deed of Trust as a valid first lien on the real estate described or intended to be
described herein, where necessary, or in seeking to have this Deed of Trust reformed by judicial
proceedings, where necessary because of mistake therein, shall constitute a part of the debt
secured by this Deed of Trust and become immediately due and payable to the said Beneficiary.
The Grantors agree to pay all necessary and usual charges incident to the consummation of this
loan, and likewise the usual and necessary costs incident to the cancellation upon the record or
records of this Deed of Trust after the loan has been paid in full. 12) Grantors covenant that they will keep the Property in good condition and repair at
their expense and will not damage or demolish any part or do any act by which the value of said
Property will be impaired. It is further agreed that Grantors will commit no waste on the
Property conveyed herein, and that, in event the undersigned Grantors fail to keep in as good
state of repair as they now are the buildings and appurtenances hereinabove conveyed, the
Beneficiary herein shall have the right at its option to make any needed repairs, betterments, or
improvements, and that any expenditure for such purpose will be a legitimate indebtedness
against the undersigned and against the Property embraced in this Deed of Trust, and the cost of
any such repairs, betterments, or improvements will become a part of the debt secured by this
instrument. 13) It is distinctly understood and agreed that a failure by the Grantors to pay the
above Note or any installments of principal, or the interest as it shall become due, or to do or
perform any of the agreements set forth herein, shall cause the entire indebtedness to fall due and
payable at the option of said Beneficiary, or its assigns, and shall fully empower the said
Beneficiary or its assigns to have the Trustee, or any successor in said trust herein, to execute
this trust, and said Beneficiary or its assigns shall not be required to declare such acceleration in
writing, or give notice of it. 14) If the Property conveyed herein should be situated in two or more counties or in
two judicial districts of the same county, then the Trustee or any successor in said trust shall have
full power, in case said Trustee is directed to foreclose under this instrument, to select in which
Deed of Trust and Security Agreement Page 7 of 11 county or judicial district the sale of all of the above Property shall be made, and said Trustee's
selection shall be binding upon the Grantors and the Beneficiary and all persons claiming
through or under them, whether by contract or by law. The Trustee or any successor in said trust
shall have full power to fix the day, time, terms, and place of sale, and shall also have full power
to conduct any sale hereunder through an agent duly appointed by said Trustee for that purpose,
but said appointment of agent need not be recorded. 15)The Grantors waive the provisions of Section 89-1-55 of the Mississippi Code of
1972, and laws amendatory thereof, if any, as far as said Section restricts the right of the Trustee
to offer at sale more than one hundred and sixty (160) acres at a time, and the Trustee may offer
the Property herein conveyed as a whole, regardless of the manner in which it may be described.
The Grantors also waive the provisions of Section 89-1-59 of the Mississippi Code of 1972. 16) At any sale made by any Trustee hereunder, the Trustee may from time to time
adjourn said sale to a later date without readvertising the sale by giving notice of the time, place
and terms of such continued sale at the time, when and where the Trustee shall make such
adjournment, and at any sale made to enforce the trust herein given, the Beneficiary or any
person in interest may become a purchaser and upon payment of the purchase price the Trustee
shall execute a deed of conveyance to the purchaser thereof.17)The attorneys' fees provided for in the above-described Note and the Trustee's fee
provided for in this Deed of Trust are hereby made liens on the above-described Property, and
the Grantors hereby promise to pay the same should they become due under the terms of the said
Note and this Deed of Trust. 18) Grantors agree to protect and preserve the herein-described real estate and not to
(i) use or permit the use of the Property as a land fill or dump, (ii) store or bury or permit the
storage or burying of any hazardous substances which require the issuance of a permit by the
Environmental Protection Agency or any state or local agency governing the issuance of
hazardous substances permits for disposal sites, or (iii) request or permit a change in zoning or
land use classification except to the extent such zoning or land use change is for commercial use. 19)Grantors shall, at Grantors' sole cost and expense, comply with all federal, state
and local laws, rules, regulations and orders with respect to the discharge and removal of
hazardous substances, pay immediately when due the cost of removal of any such substances,
and keep the real estate herein described free of any lien imposed pursuant to such laws, rules,
regulations and orders. In the event Grantors fail to do so, after notice to Grantors and the
expiration of the earlier of (i) any applicable cure period, or (ii) the cure period permitted under
the applicable law, rule, regulation or order, Beneficiary may either declare this Deed of Trust to
be in default or cause the real estate to be freed from the hazardous substances, and the cost of
the removal shall be so much additional indebtedness secured hereby and shall become
immediately due and payable without notice and with interest thereon at the rate provided for in
said Note. Grantors shall give to Beneficiary and its agents and its employees access to the real
estate and hereby specifically grant to Beneficiary a license, effective upon expiration of the
applicable cure period, to remove the hazardous substances. Grantors shall indemnify
Deed of Trust and Security Agreement Page 8 of 11 Beneficiary and hold Beneficiary harmless from and against all loss, cost, damage and expense
(including, without limitation, attorneys' fees and costs incurred in the investigation, defense and
settlement of claims) that Beneficiary may incur as a result of or in connection with the assertion
against Beneficiary or any claim relating to the presence or removal of any hazardous
substances, referred to in this paragraph, or compliance with any federal, state or local laws,
rules, regulations or orders relating thereto. The agreement to indemnify Beneficiary shall
survive payment of the Note of Grantors and a release of this Deed of Trust by Beneficiary.
Grantors acknowledge that Beneficiary has no role in the management of the real estate
described herein or the improvements thereon. As used in paragraphs (18) and (19) above, the term "hazardous substances" shall mean
all hazardous and toxic substances, wastes or materials, any pollutants or contaminants
(including asbestos and raw materials which include hazardous constituents), or any other similar
substances, or materials which are included under or regulated by any local, state or federal law,
rule or regulation pertaining to environmental regulation, contamination or clean -up, including
the Comprehensive Environmental Response, Compensation, and Liability Act as amended, and
the Resource Conservation and Recovery Act as amended, and/or any state lien or state superlien
or environmental clean-up statutes. 20)Grantors hereby grant to Beneficiary, its successors and assigns and their officers
and agents, the right to inspect the lands herein described during normal daylight hours for the
purpose of assuring Beneficiary there has been no breach of the above-described covenants and
agreements. In the event of any breach of the above-described agreements, this Deed of Trust
shall be in default.21) This conveyance is in trust. Should the Grantors pay said indebtedness and
interest owing thereon at maturity, as the Note or the interest shall fall due, and fully keep and
perform all of the conditions, agreements, and obligations imposed upon the said Grantors by the
terms of this instrument, this conveyance shall be void; otherwise, at the request of said
Beneficiary, or any owner of said Note, or either of them, the said ________________________,
Trustee, or any successor or successors appointed in said Trustee's place, shall sell said Property
to satisfy the indebtedness aforesaid then unpaid, after having published notice of the day, time,
place and terms of sale in some newspaper published in said county, for ____________ (______)
consecutive weeks preceding the date of said sale; and by posting one notice thereof at the
courthouse of said county for said time; and out of the proceeds arising from such sale the cost
and expenses of executing this Deed of Trust shall first be paid, including a ____________
Percent (______ %) Trustee's fee, which is hereby agreed to be a reasonable Trustee's fee, and the
attorneys' fees prescribed in said Note; next the amount of said indebtedness then remaining
unpaid; and, lastly, any balance remaining shall be paid to the undersigned. 22)The said Beneficiary, or any owner or holder of said Note, or either of them, is
hereby authorized to appoint successive Trustees in the place of said __________________,
Trustee, or his successor or successors, at any time, if said Beneficiary or any owner or holder of
said Note, or either of them, shall for any reason desire so to do.
Deed of Trust and Security Agreement Page 9 of 11 23)With respect to the hereinabove described fixtures, attachments, and personal
property or goods which are to become fixtures attached to the herein described real estate, or
improvements or buildings thereon (together herein called "Collateral"), this Deed of Trust shall
constitute a security agreement between Grantors and Beneficiary, and Grantors do hereby
grant to Beneficiary a security interest in and to all such Collateral. Cumulative of all other
rights of Beneficiary hereunder, Beneficiary shall have all of the rights conferred upon a secured
party by the Uniform Commercial Code of Mississippi. Upon request of Beneficiary to
Grantors, Grantors shall execute one or more financing statements covering such Collateral, in
the manner, substance and form required by law and to the satisfaction of Beneficiary.
Beneficiary may exercise any or all of the remedies of a secured party available to it under the
Uniform Commercial Code of Mississippi with respect to such Collateral, and it is expressly
agreed that if upon default Beneficiary should elect to dispose of the Collateral in accordance
with the provisions of the Uniform Commercial Code of Mississippi, ____________ (______)
days' notice by Beneficiary to Grantors shall be deemed to be reasonable notice under any
provisions of the Uniform Commercial Code of Mississippi requiring such notice; provided,
however, that Beneficiary may, at its option, proceed as to both the real estate herein described
and the Collateral in accordance with its rights and remedies in respect of the real estate pursuant
to the provisions of this Deed of Trust, in lieu of proceeding under the Uniform Commercial
Code of Mississippi, and, if Beneficiary exercises such option, it shall not be necessary to have
present at the place of sale held pursuant to this Deed of Trust the Collateral or any part thereof. 24)The loan secured by this Deed of Trust evidences a transaction in which credit has
been extended to Grantors for business purposes and not for personal, family or household use. IN WITNESS WHEREOF, the undersigned has executed this Deed of Trust and
Security Agreement this the ______ day of __________________ , ______. By: Managing Partner Type or Print Name STATE OF MISSISSIPPICOUNTY OF __________________Personally appeared before me, the undersigned authority in and for the said county and
state, on this ______ day of __________________, ______ within my jurisdiction, the within
named ______________________________, who acknowledged that he is a Manager Partner of
________________________, a Mississippi Limited Liability Partnership, and that for and on
behalf of the said limited liability partnership, and as its act and deed he executed the above and
foregoing instrument, after first having been duly authorized by said limited liability partnership
so to do.
Deed of Trust and Security Agreement Page 10 of 11 Notary Public(SEAL) Print or Type NameMy Commission expires: __________________
Deed of Trust and Security Agreement Page 11 of 11EXHIBIT A
