Real Estate Security Deed Agreement

REAL ESTATE SECURITY DEED AGREEMENT

This Real Estate Security Deed Agreement (the "Agreement") is made this day of , by and between Grantor Name: whose address is (hereinafter "Grantor"), and Grantee Name: whose address is (hereinafter "Grantee").

RECITALS

WHEREAS, Grantor is the owner of certain real property and improvements located in County; and

WHEREAS, Grantor has agreed to execute and deliver to Grantee a security deed to secure payment and performance of certain obligations evidenced by a promissory note or other indebtedness in the principal amount of to be payable to Grantee; and

WHEREAS, Grantor desires to grant to Grantee a continuing security interest in the Property (as defined below) as security for the payment and performance of the Obligations (as defined below).

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement the following terms shall have the following meanings:

"Obligations" means all present and future indebtedness, liabilities, and obligations of Grantor to Grantee under the promissory note or loan documents described as Loan Reference No. including principal, interest, fees, costs of collection, and other charges.

"Property" means the real property and all improvements located at the address and legally described as follows:

2. GRANT OF SECURITY INTEREST

Grantor hereby irrevocably grants, bargains, sells, conveys, assigns and pledges to Grantee, and Grantee accepts, a security interest in and a lien upon the Property and all rents, issues, profits and proceeds thereof, whether now existing or hereafter arising, to secure payment and performance of the Obligations. The security interest granted herein includes, without limitation, the right to receive and apply rents and to remedy defaults as provided in this Agreement.

3. INDEBTEDNESS SECURED

This Security Deed secures the Obligations described above in Section 1, including principal in the amount of , interest at the rate of per annum (or as otherwise provided in the Loan Documents), together with late charges, attorneys' fees, costs of collection and other sums payable by Grantor under the Loan Documents.

4. COVENANTS OF GRANTOR

Grantor covenants and agrees that until the Obligations are paid in full and the security interest released: (a) Grantor shall pay when due all taxes and assessments affecting the Property; (b) Grantor shall keep the Property insured against loss or damage by casualty in amounts satisfactory to Grantee and shall name Grantee as loss payee where applicable; (c) Grantor shall not materially alter or permit waste of the Property; and (d) Grantor shall comply with all laws, ordinances and covenants affecting the Property.

5. DEFAULT

An Event of Default shall occur upon the failure by Grantor to pay any installment of principal or interest when due, failure to pay taxes or insurance premiums when due, failure to comply with any material covenant of this Agreement or the Loan Documents, insolvency, appointment of a receiver for Grantor, or any breach of representations or warranties herein. Upon the occurrence of an Event of Default, Grantee may, at its option, declare all Obligations immediately due and payable and exercise all rights and remedies provided by law and this Agreement.

6. REMEDIES; FORECLOSURE

If an Event of Default occurs, Grantee shall have the right to proceed against the Property by foreclosure under any power of sale contained herein or by judicial foreclosure, to take possession of and operate the Property, to collect rents and apply them to the Obligations, to obtain injunctive relief, and to exercise any other remedy available at law or in equity. Grantee shall be entitled to recover its costs of enforcement, including reasonable attorneys' fees and costs.

7. TRUSTEE; POWER OF SALE

To secure the performance of the Obligations, Grantor hereby grants to the Trustee named below, with full power of sale, the Property, subject to the rights and obligations set forth herein. Trustee Name: . Trustee Address:

8. TAXES, INSURANCE AND PROTECTION OF SECURITY

Grantor shall pay when due all taxes, assessments and governmental charges levied or assessed upon the Property, maintain hazard and liability insurance as required by Grantee, and take all reasonable steps to protect the security and prevent waste. Grantee may, upon default and after notice, pay such sums and add them to the Obligations, together with interest thereon at the highest lawful rate.

9. RECORDING AND RELEASE

Grantor authorizes and directs that this Security Deed be recorded in the Official Records of County. Upon payment in full of the Obligations and satisfaction of all conditions precedent stated in the Loan Documents, Grantee shall execute and record a release or reconveyance of the security interest without charge to Grantor, subject to lawful lien priority and third-party rights.

10. ASSIGNMENT; SUBORDINATION

Grantee may assign its interest in this Agreement and in the Obligations. Any assignee shall have all rights of Grantee. This Security Deed is subject to any prior liens of record expressly identified herein as permitted prior liens: .

11. NOTICES

Notices to Grantor:

Notices to Grantee:

Notices shall be in writing and shall be deemed given upon personal delivery, upon confirmed delivery by nationally recognized overnight courier, or three business days after deposit in the United States mail, postage prepaid, certified or registered, addressed to the party at its notice address as provided herein.

12. GOVERNING LAW

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

13. ENTIRE AGREEMENT

This Agreement, together with the Loan Documents and any security instruments expressly incorporated by reference, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, representations and warranties, whether written or oral.

14. SEVERABILITY

If any provision of this Agreement is held to be invalid or unenforceable in whole or in part, the remaining provisions shall remain in full force and effect and shall be construed so as to effectuate the intent of the parties to the fullest extent permitted by law.

15. AMENDMENTS; WAIVER; COUNTERPARTS

This Agreement may be amended only by a written instrument executed by both Grantor and Grantee. No waiver shall be effective unless in writing and signed by the party granting the waiver. 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.

16. MISCELLANEOUS PROVISIONS

Grantor warrants that Grantor has full power and authority to grant the security interest described herein and that the Property is free of liens and encumbrances except as disclosed and permitted under this Agreement. Grantor shall execute such additional instruments reasonably requested by Grantee to effectuate the security interest granted herein.

ACKNOWLEDGMENT

Grantor acknowledges receipt of a true and correct copy of this Security Deed and of the related Loan Documents, and acknowledges that Grantor has read and understands the terms and covenants contained herein.

Sign Now