DEED OF TRUST

State of Arkansas

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

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

Date: [DATE]
Document Number: _________________ (Circuit Clerk's Use)
Property Address: [PROPERTY ADDRESS, CITY, AR 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, Arkansas:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], Arkansas [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. The power of sale granted herein may be exercised in accordance with the Arkansas Statutory Foreclosure Act.

2.2 Trustee Qualifications. Trustee may conduct the sale on behalf of the mortgage servicer. Note: The trustee may bid on behalf of the beneficiary but not for himself or herself.

2.3 Successor Trustee. Beneficiary may substitute a successor Trustee by recording an instrument of substitution.

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. Arkansas permits non-judicial foreclosure under the Statutory Foreclosure Act (A.C.A. § 18-50-101 et seq.) as well as judicial foreclosure.

5.3 Conditions to Exercise Power of Sale (A.C.A. § 18-50-103). Before exercising the power of sale:
(a) This Deed of Trust must be recorded with the recorder of the county where the Trust Property is situated;
(b) At least ten (10) days before initiating foreclosure, Beneficiary must provide by standard mail to Grantor:
- A true and correct copy of the Note with all required endorsements;
- The name of the holder and physical location of the original Note;
- A true and correct copy of this Deed of Trust and each assignment or allonge;
(c) There must be a default authorizing sale;
(d) No action to collect the debt may be pending.

5.4 Notice of Default and Intention to Sell (A.C.A. § 18-50-104). Trustee must record a Notice of Default and Intention to Sell containing:
(a) Names of the parties to this Deed of Trust;
(b) Legal description and street address of the Trust Property;
(c) Book and page numbers where this Deed of Trust is recorded;
(d) A conspicuous warning: "YOU MAY LOSE YOUR PROPERTY IF YOU DO NOT TAKE IMMEDIATE ACTION."

5.5 Waiting Period. At least sixty (60) days must elapse after recording the Notice of Default and Intention to Sell before the foreclosure sale.

5.6 Publication of Notice (A.C.A. § 18-50-105). Notice of sale must be published in a newspaper for four (4) consecutive weeks prior to sale, and posted both online and at the county courthouse.

5.7 Mailing of Notice. Within thirty (30) days of recording the Notice of Default, notice must be mailed by certified mail AND first-class mail to:
(a) Grantor;
(b) Any successor in interest;
(c) Any person having a subsequent lien or interest;
(d) Any person requesting notice.

5.8 Appraisal. An appraisal of the Trust Property must be made prior to the scheduled date of foreclosure. The property must sell for not less than two-thirds (2/3) of the appraised value. If it does not, it may be offered for sale again within twelve (12) months, when the second sale may be to the highest bidder without reference to the previous appraisal.

5.9 Trustee's Affidavit (A.C.A. § 18-50-106). The Trustee must record an affidavit confirming compliance with the mailing and publication requirements.

5.10 Conduct of Sale. The sale shall be:
(a) At public auction;
(b) To the highest bidder;
(c) Any person, including Beneficiary, may bid (except Trustee may not bid for himself/herself).

5.11 Payment Terms. The high bidder must pay the price bid at the time of sale or within ten (10) days.

5.12 Trustee's Deed. Within ten (10) days after the sale, Trustee shall execute and deliver the Trustee's Deed or Mortgagee's Deed to the purchaser.

5.13 No Redemption. Arkansas law does not provide a redemption period following a non-judicial foreclosure.

5.14 Deficiency. Beneficiary may sue for a deficiency within twelve (12) months of the power of sale foreclosure.

STRICT COMPLIANCE REQUIRED: Arkansas courts require strict compliance with the Statutory Foreclosure Act. A sale not in conformity with the statute is invalid.

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 Circuit Clerk 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 Circuit Clerk of [COUNTY] County, Arkansas.

7.2 Recording Essential. Recording is essential to exercise the power of sale under the Statutory Foreclosure Act.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Deed of Trust shall be governed by Arkansas 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 ARKANSAS
COUNTY OF [COUNTY]

On this _____ day of ______________, 20___, before me, the undersigned Notary Public, personally appeared [GRANTOR NAME(S)], known to me to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same for the purposes therein contained.

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

Parcel ID: [NUMBER]

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