DEED OF TRUST

State of Alabama

PREPARED BY:
[PREPARER NAME]
[ADDRESS]
[CITY, STATE ZIP]

RETURN TO:
[NAME]
[ADDRESS]
[CITY, STATE ZIP]

Date: [DATE]
Instrument Number: _________________ (Judge of Probate's Use)
Property Address: [PROPERTY ADDRESS, CITY, AL ZIP]
Parcel ID: [PARCEL ID]

DEED OF TRUST WITH POWER OF SALE

THIS DEED OF TRUST is made this [DAY] day of [MONTH], [YEAR], by and among:

GRANTOR (Borrower):
[GRANTOR NAME(S)]
[ADDRESS]
[CITY, STATE ZIP]

TRUSTEE:
[TRUSTEE NAME]
[ADDRESS]
[CITY, STATE ZIP]

BENEFICIARY (Lender):
[BENEFICIARY/LENDER NAME]
[ADDRESS]
[CITY, STATE ZIP]

RECITALS AND GRANT

WHEREAS, Grantor is indebted to Beneficiary in the principal sum of [PRINCIPAL AMOUNT] DOLLARS ($[AMOUNT]), as evidenced by a Promissory Note of even date herewith (the "Note");

NOW, THEREFORE, Grantor does hereby grant, bargain, sell, and convey unto Trustee, in trust, with POWER OF SALE, the following described real property situated in [COUNTY] County, Alabama:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], Alabama [ZIP CODE]

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, and profits; and all fixtures now or hereafter attached to the property (collectively, the "Trust Property").

ARTICLE I - OBLIGATIONS SECURED

This Deed of Trust secures to Beneficiary:
(a) The repayment of the debt evidenced by the Note, with interest, and all renewals, extensions, and modifications;
(b) The payment of all other sums, with interest, advanced under this Deed of Trust;
(c) The performance of Grantor's covenants and agreements under this Deed of Trust and the Note.

ARTICLE II - TRUSTEE PROVISIONS

2.1 Power of Sale. Alabama Code § 35-10-9 provides that a power of sale in a mortgage or deed of trust authorizes an agent of the lender to initiate foreclosure proceedings.

2.2 Substitution of Trustee. Beneficiary may substitute a successor Trustee by recording an instrument of substitution. The successor Trustee shall succeed to all title, powers, and duties of the original Trustee.

2.3 Fiduciary Duty. Alabama caselaw imposes a quasi-fiduciary duty on a party exercising its power of sale.

ARTICLE III - COVENANTS OF GRANTOR

Grantor covenants and agrees as follows:

3.1 Payment. Grantor shall pay when due the principal and interest on the debt evidenced by the Note and all other sums secured hereby.

3.2 Insurance. Grantor shall keep the improvements insured against loss by fire and other hazards, with Beneficiary named as loss payee.

3.3 Taxes and Assessments. Grantor shall pay before delinquency all taxes, assessments, and charges against the Trust Property.

3.4 Maintenance. Grantor shall maintain the Trust Property in good condition and repair and shall not commit or permit waste.

3.5 Defense of Title. Grantor shall defend title against all claims.

3.6 Compliance with Laws. Grantor shall comply with all laws, ordinances, and regulations affecting the Trust Property.

ARTICLE IV - ASSIGNMENT OF RENTS

4.1 Assignment. Grantor hereby assigns to Beneficiary all rents, issues, and profits of the Trust Property as additional security.

4.2 License to Collect. Grantor shall have a license to collect and retain such rents prior to default. Upon default, this license shall terminate.

ARTICLE V - DEFAULT AND FORECLOSURE

5.1 Events of Default. The following shall constitute Events of Default:
(a) Failure to make any payment when due under the Note or this Deed of Trust;
(b) Breach of any covenant or agreement herein;
(c) Material misrepresentation by Grantor;
(d) Transfer of the Trust Property without Beneficiary's prior written consent;
(e) Bankruptcy or insolvency of Grantor.

5.2 Foreclosure Options. Alabama permits non-judicial foreclosure by power of sale, as well as judicial foreclosure.

5.3 Pre-Foreclosure Notice of Default. A notice regarding redemption rights must be mailed to Grantor at the address of the Trust Property subject to foreclosure at least thirty (30) days prior to the foreclosure date by certified mail with proof of mailing.

5.4 Notice of Sale. If this Deed of Trust does not specify the time, place, and terms of sale, a foreclosure sale may take place after:
(a) Publication of notice once a week for four (4) successive weeks in a newspaper published in the county where the Trust Property is located;
(b) If the Trust Property is in more than one county, publication must be in all counties where it is located;
(c) The notice of sale must give the time, place, and terms of sale, together with a description of the Trust Property;
(d) If no newspaper is published in the county, notice shall be placed in a newspaper published in an adjoining county for four successive weeks.

5.5 Location of Sale. The foreclosure sale shall be conducted at the front or main door of the Courthouse in the county where the Trust Property is located. (In a county with more than one courthouse, the sale should be conducted in the division where the Trust Property lies.)

5.6 Conduct of Sale. The sale shall be:
(a) At public auction;
(b) To the highest bidder for cash;
(c) At the time and place specified in the notice.

5.7 Trustee's Deed. Upon completion of the sale, Trustee shall execute and deliver a Trustee's Deed to the purchaser.

5.8 Application of Proceeds. Proceeds of sale shall be applied:
(a) First, to costs and expenses of the sale;
(b) Second, to all sums secured by this Deed of Trust;
(c) Third, to junior liens in order of priority;
(d) Fourth, the surplus to Grantor or persons legally entitled thereto.

5.9 Right of Redemption (Ala. Code § 6-5-248). Alabama provides a statutory right of redemption:
(a) 180 days from the date of sale for residential property on which a homestead exemption was claimed in the tax year during which the sale occurred;
(b) One (1) year from the date of sale for all other property.

5.10 Deficiency. Alabama permits deficiency judgments. If sale proceeds are insufficient, Beneficiary may pursue a deficiency judgment against Grantor.

ARTICLE VI - RECONVEYANCE

6.1 Release. Upon payment of all sums secured hereby, Beneficiary shall execute a release of this Deed of Trust suitable for recording.

6.2 Recording. The release shall be recorded with the Judge of Probate in the county where the Trust Property is located.

ARTICLE VII - RECORDING REQUIREMENTS

7.1 Recording. This Deed of Trust shall be recorded with the Judge of Probate of [COUNTY] County, Alabama.

7.2 Recording Tax. Alabama recording tax shall be paid upon recording.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Deed of Trust shall be governed by Alabama law.

8.2 Successors and Assigns. This Deed of Trust binds and benefits the heirs, executors, administrators, successors, and assigns of the parties.

8.3 Severability. If any provision is held invalid, all other provisions remain in full force.

8.4 Notices. All notices shall be in writing and sent to the addresses set forth above.

8.5 Entire Agreement. This Deed of Trust and the Note constitute the entire agreement of the parties.

ARTICLE IX - RIDERS AND ADDENDA

The following riders are attached hereto and incorporated herein:

☐ Adjustable Rate Rider
☐ Condominium Rider
☐ Planned Unit Development Rider
☐ Second Home Rider
☐ 1-4 Family Rider
☐ Other: [SPECIFY]

SIGNATURE PAGE

IN WITNESS WHEREOF, Grantor has executed this Deed of Trust as of the date first written above.

GRANTOR(S):

_______________________________
[GRANTOR NAME]
Date: _________________________

_______________________________
[GRANTOR NAME]
Date: _________________________

ACKNOWLEDGMENT

STATE OF ALABAMA
COUNTY OF [COUNTY]

I, the undersigned authority, a Notary Public in and for said County in said State, hereby certify that [GRANTOR NAME(S)], whose name(s) is/are signed to the foregoing instrument, and who is/are known to me, acknowledged before me on this day that, being informed of the contents of the instrument, he/she/they executed the same voluntarily on the day the same bears date.

Given under my hand this _____ day of ______________, 20___.

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

The land referred to herein is situated in [COUNTY] County, State of Alabama, and is described as follows:

[INSERT COMPLETE LEGAL DESCRIPTION]

Parcel ID: [NUMBER]

This document prepared by:
[PREPARER NAME]
[ADDRESS]
[PHONE]
[EMAIL]