Notarial Bond Agreement

NOTARIAL BOND AGREEMENT

This Notarial Bond Agreement (the Agreement) is made on the day of , , by and between Creditor: , with principal address at , and Debtor: , with principal address at .

RECITALS

WHEREAS, Debtor is indebted to Creditor in the principal sum of (the Bond Sum), together with interest at the rate of per annum, and any costs, fees, and expenses permitted by law;

WHEREAS, Debtor desires to secure the payment and performance of the obligations described herein by granting to Creditor a notarial bond over the assets described below and by submitting to the notarial registration and ranking necessary to render this instrument effective against third parties;

WHEREAS, Creditor is willing to accept such security subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants set forth below, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below:

(a) "Bond Sum" means the principal amount specified in the recitals under bond_amount and shall include principal, accrued interest, and any allowed costs and expenses.

(b) "Maturity Date" means the date on which the Bond Sum and all Obligations are due and payable, which shall be the day of , .

2. CREATION OF NOTARIAL BOND

Debtor hereby grants, conveys and assigns to Creditor, as security for the prompt and complete payment and performance of all Obligations, a notarial bond over the property described in the Collateral Description. This instrument shall be executed as a notarial bond and registered in accordance with applicable laws to create a public, enforceable security interest.

3. OBLIGATIONS SECURED

The notarial bond secures (i) payment of the Bond Sum; (ii) interest accruing under this Agreement; (iii) all indebtedness, liabilities, and obligations of Debtor to Creditor whether now existing or hereafter arising and whether primary, secondary or contingent; and (iv) all costs of collection, enforcement, and registration.

4. PAYMENT AND APPLICATION OF RECEIPTS

All payments received by Creditor with respect to the Obligations shall be applied first to costs and expenses of collection, then to accrued interest, and thereafter to principal. Debtor shall make payments in lawful money to Creditor at the address set forth for notices, unless otherwise directed in writing by Creditor.

5. DEFAULTS AND REMEDIES

The occurrence of any of the following shall constitute an Event of Default: (a) failure by Debtor to pay any amount when due; (b) Debtor's insolvency, bankruptcy, or appointment of a receiver; (c) any material breach of Debtor's representations, warranties, or covenants under this Agreement; or (d) any act or omission by Debtor that materially impairs Creditor's security.

Upon the occurrence of an Event of Default, Creditor, without further notice or demand except where notice is required by law, may exercise any rights and remedies available at law or in equity, including but not limited to foreclosure upon, sale of, or taking possession of the collateral, acceleration of the Obligations, and recovery of costs and attorneys' fees.

6. REPRESENTATIONS AND WARRANTIES

Debtor represents and warrants that (a) Debtor has full power and authority to grant the notarial bond and to enter into this Agreement; (b) the collateral is owned free and clear of prior liens except as disclosed to Creditor in writing; (c) the execution, delivery and performance of this Agreement do not violate any agreement to which Debtor is a party; and (d) all information provided to Creditor in connection with this Agreement is true, complete and not misleading in any material respect.

7. COVENANTS

Until the Obligations have been paid in full, Debtor covenants to keep the collateral in good order, not to grant any further security interests in the collateral without Creditor's prior written consent, and to comply with all laws and regulations relating to the collateral. Debtor shall promptly notify Creditor upon any material adverse change in the collateral or Debtor's financial condition.

8. COSTS, FEES AND EXPENSES

Debtor shall be liable for all reasonable costs and expenses incurred by Creditor in connection with the preparation, execution, registration, preservation and enforcement of the notarial bond and this Agreement, including but not limited to notarial fees, filing and registration fees, taxes, and attorneys' fees.

9. NOTICES

All notices, demands, requests or other communications required or permitted under this Agreement shall be in writing and delivered personally, sent by certified mail, return receipt requested, or by nationally recognized overnight courier to the addresses set forth below, or to such other address as a party may designate by written notice to the other party.

10. REGISTRATION AND RANKING

The parties shall cooperate to take all steps necessary to register the notarial bond and to ensure that it ranks in priority as agreed between the parties. Debtor shall execute any further documents and take any actions reasonably requested by Creditor to accomplish such registration and ranking.

11. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction of , without regard to its conflicts of law principles.

12. ENTIRE AGREEMENT; SEVERABILITY

This Agreement, together with any schedules, certificates or instruments delivered pursuant hereto, constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

13. AMENDMENT; WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom enforcement is sought. The failure of any party to exercise any right shall not operate as a waiver of such right.

14. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

15. NOTARIAL ACKNOWLEDGMENT

The parties acknowledge that this Agreement is executed as a notarial bond and shall be presented for notarial attestation and registration. The following notarial information is provided for administration of the notarial process.

16. MISCELLANEOUS

The headings in this Agreement are for convenience only and shall not affect its interpretation. Any provision that requires the consent or approval of Creditor shall be at Creditor's sole discretion unless otherwise expressly stated.

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