This deed of trust, dated the ______ day of ______ 20 _ is made between, _________________, whose address is __________________, herein referred to as TRUSTOR, and ________________________________________, herein referred to as the TRUSTEE, and the (Undersigned -- Individual/Company), the beneficiary of this agreement, whose address is ________________ herein referred to as UNDERSIGNED.
TRUSTOR conveys to UNDERSIGNED, in trust with power of sale, the real estate property having a physical address of ___________, and legally described as follows:
Together with all improvements now or hereafter erected on the property, and all easements, rights, appurtenances and rents, all of which shall be deemed to be and remain a part of the property covered by this deed of trust.
The purpose of this deed of trust is to secure performance by the TRUSTOR of its promises described in UNDERSIGNED grant Agreement, signed on _____, 20 _ (copy attached). This agreement provides for the use of the real property described above for a period of at least twenty (20) years by the TRUSTOR, or by the lessee of the TRUSTOR, for the public purpose set forth in the grant agreement. The 20-year period of this deed of trust shall commence on the date of this deed of trust.
The parties further agree as follows:
1. The principal amount secured hereby shall be ($------) The principal amount shall accrue interest at the rate of --% per year. If TRUSTOR uses the property for the purposes set forth in the grant agreement for the twenty year term as required by the Grant Agreement, the indebtedness secured by this deed of trust shall be forgiven and TRUSTOR's indebtedness under the note shall be zero. In the event UNDERSIGNED extends the date of debt forgiveness under the Deed of Trust Note, the term of this deed of trust shall be automatically extended to the same date.
2. TRUSTOR, in its use of the property, shall comply with all of the terms and conditions set forth in the Grant Agreement, as it now exists or may hereafter be amended, including but not limited to any subsequent grant agreement which may hereafter be entered into by TRUSTOR and UNDERSIGNED regarding the subject property, and all other applicable laws, regulations and policies set forth in the Grant Agreement.
3. TRUSTOR shall comply with all federal, state and local laws affecting the real property, neither commit nor permit any illegal act thereon, and neither commit nor permit waste thereof, and shall keep all improvements on the property in good working condition and repair.
4. TRUSTOR shall pay, at least ten days prior to delinquency, all taxes and assessments on the real property and all encumbrances thereon not otherwise the responsibility of UNDERSIGNED which appear to be superior hereto. Prior to the end of each calendar year, TRUSTOR shall provide UNDERSIGNED with written proof of payment of, or exemption from, all applicable property taxes and all property assessments of any kind for the year.
5. TRUSTOR shall procure and maintain policies of fire insurance on the real property with standard extended coverage endorsements on a fair value basis for the full insurable value covering all improvement on the real property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgage clause in favour of lender. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to UNDERSIGNED and shall also maintain such other insurance as may be required in the grant agreement, including stipulations that such coverage may not be cancelled without at least ten days prior written notice to UNDERSIGNED. Prior to the end of each calendar year, the TRUSTOR shall provide written proof of said insurance to UNDERSIGNED. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the property covered by this Deed of Trust at any trustee's sale held under the provisions of this Deed of Trust or at any foreclosure sale of the property.
6. TRUSTOR shall establish and maintain a Repair and Replacement (RRF) fund as part of the Owner's ongoing project operations. The RRF must be funded on a routine basis from project cash flow and deposits must be placed in a specific general ledger account, or other bank account as approved by UNDERSIGNED, and identified as such. The RRF must be used for the repair or replacement of such items as carpet, painting, roof systems, appliances or other elements of the building systems. Unless otherwise approved by TRUSTEE in writing, the annual contribution to the UNDERSIGNED must equal at least ($------), except that the UNDERSIGNED will be capped at ($------). If the UNDERSIGNED balance reaches or exceeds ($------), additional payments will not be required until such time that the balance decreases to below ($------) as expenditures are made for repairs and replacement. Any balance in the RRF shall inure to the benefit of, and pass to, UNDERSIGNED in the event the property covered by this Deed of Trust is sold at any trustee's sale held under the provisions of this Deed of Trust or at any foreclosure sale of the property.
7. TRUSTOR shall not convey or encumber the real property without the written approval of UNDERSIGNED, provided such approval shall not be unreasonably withheld. Should the property be sold, conveyed, transferred or in any manner encumbered without first obtaining said approval or consent, such conveyance shall be null and void.
8. All awards for total condemnation of, or injury to, the real estate property or for partial condemnation of the property shall be deposited in an interest bearing escrow account or in some other investment acceptable to UNDERSIGNED. In the event UNDERSIGNED exercises its right under this agreement to foreclose upon the property, the funds so held shall be credited against the indebtedness secured by this agreement. Upon expiration of this deed of trust without foreclosure by UNDERSIGNED, the funds shall become the property of the TRUSTOR.
9. TRUSTOR shall promptly pay without demand all sums expended by TRUSTEE or UNDERSIGNED pursuant hereto. All such sums shall be part of the indebtedness secured hereby and shall bear interest at the rate of ____________ per annum.
10. In the event TRUSTOR fails to use the real property for the purpose set forth in the Grant Agreement or another purpose consented to by UNDERSIGNED or discontinues use of the property for such purpose before the expiration of the twenty (20) year period and any extended period of time declared by UNDERSIGNED under the debt forgiveness provisions of the Deed of Trust Note, or if the TRUSTOR violates any of the terms of this deed of trust or of the Grant Agreement, UNDERSIGNED may declare TRUSTOR to be in default. Upon a declaration of default by UNDERSIGNED, the property may be sold for condition broken by foreclosing this deed of trust in any manner then permitted by law. UNDERSIGNED may act as agent for UNDERSIGNED in conducting any such sale.
11. Upon TRUSTOR's satisfactory performance of the Grant Agreement for a period of twenty years and for any extended period of time declared by UNDERSIGNED under the debt forgiveness provisions of the Deed of Trust Note, UNDERSIGNED shall request TRUSTEE to reconvey the real estate property. TRUSTEE shall reconvey the real estate property without warranty to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. UNDERSIGNED may charge such person or persons a fee for reconveying the real estate property.
12. TRUSTOR shall advise UNDERSIGNED in writing within ten days of any change of the address at which notice of default under this deed of trust may be served. Pending further advise, TRUSTOR may be served with notice of default under this deed of trust at: ___________________________________________.
STATE OF _________________
COUNTY OF ________________
SWORN TO AND SUBSCRIBED BEFORE ME, this the ____ day of ________________, 20____.
My Commission Expires: ________________