Blanket Mortgage for Real Estate in New Mexico

BLANKET MORTGAGE FOR REAL ESTATE IN THE STATE OF NEW MEXICO

(hereinafter Mortgagors), whose address is for consideration paid, the receipt and sufficiency of which is hereby acknowledged, grants to as Trustee under the Revocable Trust, dated , under a Revocable Trust Agreement executed on , Trustor, and any amendment thereto, (hereinafter Mortgagee), whose address is , in the following described real estate located in , with Mortgage covenants:

That certain real Property described in Exhibits the description of each which is hereby incorporated in and made a part of this Mortgage by reference thereto;

This Mortgage and security instrument secures to Mortgagee: (a) the repayment of the performance of the following obligations: (a) the repayment of the Real Estate Mortgage Note described below all renewals, extensions, and modifications; (b) the payment of all other sums, with interest, advanced under Section to protect the security of this Mortgage and security instrument; and (c) the performance of Mortgagors' covenants and agreements under this Mortgage and security instrument.

Said Real Estate Mortgage Note is that certain Real Estate Mortgage Note dated , in the amount of $ with interest at the rate of percent (%) per annum, to be paid as follows:

Thirty six (36) equal monthly installments of $ each, with the first installment due and payable beginning , and continuing on the same day of every month thereafter, up to and including . Any remaining balance is due and owing, both on principal and interest shall be due and payable in its entirety on .

A copy of said Real Estate Mortgage Note is attached hereto as Exhibit B, and is a made a part hereto by reference. Said Note is being made and given upon the statutory Mortgage condition for the breach of which it is subject to foreclosure as provided by law. The amount specified for insurance as provided in the statutory Mortgage condition and the hazards to be insured against are set forth in Section below.

This grant is being made by said Mortgagors together with all the improvements now or to be erected on the Property, and all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water rights and stock and all fixtures now or to become a part of the Property. All replacements and additions shall also be covered by this security instrument. All of the foregoing is referred to in this security instrument as the Property.

Mortgagors covenant that Mortgagors are lawfully seized of the estate conveyed by this security instrument and has the right to mortgage, grant, and convey the Property and that the Property is unencumbered, except for encumbrances of record. Mortgagors warrant and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.

Mortgagors and Mortgagee covenant and agree as follows:

I. PAYMENT OF PRINCIPAL AND INTEREST; PREPAYMENT AND LATE CHARGES

Mortgagors shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.

II. FUNDS FOR TAXES AND INSURANCE

Subject to applicable law or to a written waiver by Mortgagee, Mortgagors shall pay to Mortgagee on the day monthly payments are due under the Note, until the Note is paid in full, a sum (the funds) equal to one-twelfth of: (a) yearly taxes and assessments that may attain priority over this security instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly Mortgage insurance premiums, if any. These items are called escrow items. Mortgagee may estimate the funds due on the basis of current data and reasonable estimates of future escrow items.

The funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Mortgagee if Mortgagee is such an institution). Mortgagee shall apply the funds to pay the escrow items. Mortgagee may not charge for holding and applying the funds, analyzing the account or verifying the escrow items, unless Mortgagee pays Mortgagors interest on the funds and applicable law permits Mortgagee to make such a charge. Mortgagors and Mortgagee may agree in writing that interest shall be paid on the funds. Unless an agreement is made or applicable law requires interest to be paid, Mortgagee shall not be required to pay Mortgagors any interest or earnings on the funds. Mortgagee shall give to Mortgagors, without charge, an annual accounting of the funds showing credits and debits to the funds and the purpose for which each debit to the funds was made. The funds are pledged as additional security for the sums secured by this security instrument.

If the amount of the funds held by Mortgagee, together with the future monthly payments of funds payable prior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at Mortgagee's option, either promptly repaid to Mortgagors or credited to Mortgagors on monthly payments of funds. If the amount of the funds held by Mortgagee is not sufficient to pay the escrow items when due, Mortgagors shall pay to Mortgagee any amount necessary to make up the deficiency in one or more payments as required by Mortgagee.

On payment in full of all sums secured by this security instrument, Mortgagee shall promptly refund to Mortgagors any funds held by Mortgagee. If under Section Nineteen the Property is sold or acquired by Mortgagee, Mortgagee shall apply, no later than immediately prior to the sale of the Property or its acquisition by Mortgagee, any funds held by Mortgagee at the time of application as a credit against the sums secured by this security instrument.

III. APPLICATION OF PAYMENTS

Unless applicable law provides otherwise, all payments received by Mortgagee under Sections One and Two shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the Note; third, to amounts payable under Section Two; fourth, to interest due; and last, to principal due.

IV. CHARGES; LIENS

Mortgagors shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property that may attain priority over this security instrument, and leasehold payments or ground rents, if any. Mortgagors shall pay these obligations in the manner provided in Section Two, or if not paid in that manner, Mortgagors shall pay them on time directly to the person owed payment. Mortgagors shall promptly furnish to Mortgagee all notices of amounts to be paid under this paragraph. If Mortgagors makes these payments directly, Mortgagors shall promptly furnish to Mortgagee receipts evidencing the payments.

Mortgagors shall promptly discharge any lien that has priority over this security instrument unless Mortgagors: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Mortgagee; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Mortgagee's opinion operate to prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Mortgagee subordinating the lien to this security instrument. If Mortgagee determines that any part of the Property is subject to a lien that may attain priority over this security instrument, Mortgagee may give Mortgagors a notice identifying the lien. Mortgagors shall satisfy the lien or take one or more of the actions set forth above within Ten (10) days of the giving of notice.

V. HAZARD INSURANCE

Mortgagors shall keep the improvements now existing or to be erected on the Property insured against loss by fire, hazards included within the term extended coverage, and any other hazards for which Mortgagee requires insurance. This insurance shall be maintained in the amounts and for the periods that Mortgagee requires. The insurance carrier providing the insurance shall be chosen by Mortgagors subject to Mortgagee's approval which shall not be withheld unreasonably.

All insurance policies and renewals shall be acceptable to Mortgagee and shall include a standard Mortgage Clause. Mortgagee shall have the right to hold the policies and renewals. If Mortgagee requires, Mortgagors shall promptly give to Mortgagee all receipts of paid premiums and renewal notices. In the event of loss, Mortgagors shall give prompt notice to the insurance carrier and Mortgagee. Mortgagee may make proof of loss if not made promptly by Mortgagors.

Unless Mortgagee and Mortgagors otherwise agree in writing, insurance proceeds shall be applied to the restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Mortgagee's security is not lessened. If the restoration or repair is not economically feasible or Mortgagee's security would be lessened, the insurance proceeds shall be applied to the sums secured by this security instrument, whether or not then due, with any excess paid to Mortgagors. If Mortgagors abandons the Property, or does not answer within Thirty (30) days a notice from Mortgagee that the insurance carrier has offered to settle a claim, then Mortgagee may collect the insurance proceeds. Mortgagee may use the proceeds to repair or restore the Property or to pay sums secured by this security instrument, whether or not then due. The Thirty (30) day period will begin when the notice is given.

Unless Mortgagee and Mortgagors otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in Sections One and Two or change the amount of the payments. If under Section Nineteen the Property is acquired by Mortgagee, Mortgagors' right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Mortgagee to the extent of the sums secured by this security instrument immediately prior to the acquisition.

VI. PRESERVATION AND MAINTENANCE OF PROPERTY; LEASEHOLDS

Mortgagors shall not destroy, damage, or substantially change the Property, allow the Property to deteriorate, or commit waste. If this security instrument is on a leasehold, Mortgagors shall comply with the provisions of the lease, and if Mortgagors acquires fee title to the Property, the leasehold and fee title shall not merge unless Mortgagee agrees to the merger in writing.

VII. PROTECTION OF MORTGAGEE'S RIGHTS IN THE PROPERTY; MORTGAGE INSURANCE

If Mortgagors fails to perform the covenants and agreements contained in this security instrument, or there is a legal proceeding that may significantly affect Mortgagee's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation, or to enforce laws or regulations), then Mortgagee may do and pay for whatever is necessary to protect the value of the Property and Mortgagee's rights in the Property. Mortgagee's actions may include paying any sums secured by a lien that has priority over this security instrument, appearing in court, paying reasonable attorney's fees, and entering on the Property to make repairs. Although Mortgagee may take action under this paragraph, Mortgagee does not have to do so.

Any amounts disbursed by Mortgagee under this Section Seven shall become additional debt of Mortgagors secured by this security instrument. Unless Mortgagors and Mortgagee agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, on notice from Mortgagee to Mortgagors requesting payment.

If Mortgagee required Mortgage insurance as a condition of making the loan secured by this security instrument, Mortgagors shall pay the premiums required to maintain the insurance in effect until such time as the requirement for the insurance terminates in accordance with Mortgagors' and Mortgagee's written agreement or applicable law.

VIII. INSPECTION

Mortgagee or its agent may make reasonable entries on and inspections of the Property. Mortgagee shall give Mortgagors notice at the time of or prior to an inspection specifying reasonable cause for the inspection.

IX. CONDEMNATION

The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for a conveyance in lieu of condemnation, are now assigned and shall be paid to Mortgagee.

In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this security instrument, whether or not then due, with any excess paid to Mortgagors. In the event of a partial taking of the Property, unless Mortgagors and Mortgagee otherwise agree in writing, the sums secured by this security instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Mortgagors.

If the Property is abandoned by Mortgagors, or if, after notice by Mortgagee to Mortgagors that the condemner offers to make an award or settle a claim for damages, Mortgagors fails to respond to Mortgagee within Thirty (30) days after the date the notice is given, Mortgagee is authorized to collect and apply the proceeds, at its option, either to the restoration or repair of the Property or to the sums secured by this security instrument, whether or not then due.

Unless Mortgagee and Mortgagors otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in Sections One and Two or change the amount of such payments.

X. MORTGAGORS NOT RELEASED; FORBEARANCE BY MORTGAGEE NOT A WAIVER

Extension of the time for payment or modification of amortization of the sums secured by this security instrument granted by Mortgagee to any successor in interest of Mortgagors shall not operate to release the liability of the original Mortgagors or Mortgagors' successors in interest. Mortgagee shall not be required to commence proceedings against any successor in interest or refuse to extend the time for payment or otherwise modify amortization of the sums secured by this security instrument by reason of any demand made by the original Mortgagors or Mortgagors' successors in interest. Any forbearance by Mortgagee in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.

XI. SUCCESSORS AND ASSIGNS BOUND; JOINT AND SEVERAL LIABILITY; COSIGNERS

The covenants and agreements of this security instrument shall bind and benefit the successors and assigns of Mortgagee and Mortgagors, subject to the provisions of Section Seventeen. Mortgagors' covenants and agreements shall be joint and several. Any Mortgagors who cosigns this security instrument but does not execute the Note: (a) is cosigning this security instrument only to Mortgage, grant, and convey that Mortgagors' interest in the Property under the terms of this security instrument; (b) is not personally obligated to pay the sums secured by this security instrument; and (c) agrees that Mortgagee and any other Mortgagors may agree to extend, modify, forbear, or make any accommodations with regard to the terms of this security instrument or the Note without that Mortgagors' consent.

XII. LOAN CHARGES

If the indebtedness secured by this security instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the indebtedness exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Mortgagors that exceeded permitted limits will be refunded to Mortgagors. Mortgagee may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Mortgagors. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note.

XIII. LEGISLATION AFFECTING MORTGAGEE'S RIGHTS

If the enactment or expiration of applicable laws has the effect of rendering any provision of the Note or this security instrument unenforceable according to its terms, Mortgagee, at its option, may require immediate payment in full of all sums secured by this security instrument and may invoke any remedies permitted by Section Nineteen. If Mortgagee exercises this option, Mortgagee shall take the steps specified in the second paragraph of Section Seventeen.

XIV. NOTICES

Any notice to Mortgagors provided for in this security instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires the use of another method. The notice shall be directed to the Property address or any other address Mortgagors designates by notice to Mortgagee. Any notice to Mortgagee shall be given by first class mail to Mortgagee's address stated in this security instrument or any other address Mortgagee designates by notice to Mortgagors. Any notice provided for in this security instrument shall be deemed to have been given to Mortgagors or Mortgagee when given as provided in this paragraph.

XV. GOVERNING LAW; SEVERABILITY

This security instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. If any provision or clause of this security instrument or the Note conflicts with applicable law, the conflict shall not affect other provisions of this security instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this security instrument and the Note are declared to be severable.

XVI. MORTGAGORS' COPY

Mortgagors shall be given one conformed copy of the Note and of this security instrument.

XVII. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN MORTGAGORS

If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Mortgagors is sold or transferred and Mortgagors is not a natural person) without Mortgagee's prior written consent, Mortgagee may, at its option, require immediate payment in full of all sums secured by this security instrument. However, this option shall not be exercised by Mortgagee if its exercise is prohibited by federal law as of the date of this security instrument.

If Mortgagee exercises this option, Mortgagee shall give Mortgagors notice of acceleration. The notice shall provide a period of not less than Thirty (30) days from the date the notice is delivered or mailed within which Mortgagors must pay all sums secured by this security instrument. If Mortgagors fails to pay these sums prior to the expiration of this period, Mortgagee may invoke any remedies permitted by this security instrument without further notice or demand on Mortgagors.

XVIII. MORTGAGORS' RIGHT TO REINSTATE

If Mortgagors meets certain conditions, Mortgagors shall have the right to have enforcement of this security instrument discontinued at any time prior to the earlier of: (a) Five (5) days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this security instrument; or (b) entry of a judgment enforcing this security instrument. Those conditions are that Mortgagors: (a) pays Mortgagee all sums that then would be due under this security instrument and the Note had no acceleration occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this security instrument, including, but not limited to, reasonable attorney's fees; and (d) takes such action as Mortgagee may reasonably require to assure that the lien of this security instrument, Mortgagee's rights in the Property, and Mortgagors' obligation to pay the sums secured by this security instrument shall continue unchanged. On reinstatement by Mortgagors, this security instrument and the obligations secured by it shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Sections Thirteen or Seventeen.

XIX. ACCELERATION; REMEDIES

Mortgagee shall give notice to Mortgagors prior to acceleration following Mortgagors' breach of any covenant or agreement in this security instrument (but not prior to acceleration under Sections Thirteen and Seventeen unless applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than Thirty (30) days from the date the notice is given to Mortgagors, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this security instrument, foreclosure by judicial proceeding, and sale of the Property. The notice shall further inform Mortgagors of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the nonexistence of a default or any other defense of Mortgagors to acceleration and foreclosure. If the default is not cured on or before the date specified in the notice, Mortgagee at its option may require immediate payment in full of all sums secured by this security instrument without further demand and may foreclose this security instrument by judicial proceeding. Mortgagee shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees and the costs of title evidence.

XX. MORTGAGEE IN POSSESSION

On acceleration under Section Nineteen, or abandonment of the Property, Mortgagee (in person, by agent, or by judicially appointed receiver) shall be entitled to enter on, take possession of, and manage the Property and to collect the rents of the Property including those past due. Any rents collected by Mortgagee or the receiver shall be applied first to the payment of the costs of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds, and reasonable attorney's fees, and then to the sums secured by this security instrument.

XXI. RELEASE

On payment of all sums secured by this security instrument, Mortgagee shall release this security instrument without charge to Mortgagors. Mortgagors shall pay any recordation costs. Notwithstanding the provisions as set forth hereinabove, each Mortgagor shall be entitled to a Partial Release of the lien and operation of said Note and Mortgage at the rate of one (1) acre for each additional prepayment of $14,000.00 or for payments received totaling at least $14,000.00 as per the above schedule. Mortgagee shall release to said Mortgagor all right, title and interest heretofore acquired under said Note and Mortgage by recordation of a Partial Release of Mortgage. A form of said Partial Release is attached hereto as Exhibit C and made a part hereof by reference thereto. Any and all amounts so paid for partial releases shall be credited and subtracted from the principal balance due as set forth hereinabove. All costs and preparation of the documents and any surveys and/or legal descriptions will be paid by the undersigned.

XXII. REDEMPTION PERIOD

If this security instrument is foreclosed, the redemption period after judicial sale shall be one month.

Mortgagors accept and agree to the terms and covenants contained in this security instrument.

WITNESS OUR SIGNATURES this day of , .

SIGNATURES AND ACKNOWLEDGEMENTS