DEED OF TRUST

State of Arizona

WHEN RECORDED MAIL TO:
[NAME]
[ADDRESS]
[CITY, STATE ZIP]

SPACE ABOVE THIS LINE FOR RECORDER'S USE

Date: [DATE]
Docket/Recording Number: _________________ (Recorder's Use)
Property Address: [PROPERTY ADDRESS, CITY, AZ ZIP]

DEED OF TRUST

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

TRUSTOR (Borrower):
[TRUSTOR 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, Trustor 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, Trustor irrevocably grants, transfers, and assigns to Trustee, in trust, with POWER OF SALE, the following described real property situated in [COUNTY] County, Arizona:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

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

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water, water rights and water stock; 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 Trustor's covenants and agreements under this Deed of Trust and the Note.

ARTICLE II - TRUSTEE PROVISIONS

2.1 Power of Sale. Pursuant to A.R.S. § 33-807, a power of sale is conferred upon the Trustee by virtue of this Deed of Trust, which power may be exercised after a breach or default in performance of any obligation secured hereby.

2.2 Trustee Qualifications. The Trustee named herein is qualified to serve as trustee under Arizona law, pursuant to A.R.S. § 33-803(A).

2.3 Substitution of Trustee. Beneficiary may substitute a successor Trustee by recording an instrument of substitution in the county where the Trust Property is located. The successor Trustee shall succeed to all title, powers, and duties of the original Trustee without any conveyance, pursuant to A.R.S. § 33-804.

2.4 Trustee's Duties. Trustee is not obligated to notify any party of pending sale under any other deed of trust or of any action or proceeding unless Trustee is made a party thereto.

ARTICLE III - COVENANTS OF TRUSTOR

Trustor covenants and agrees as follows:

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

3.2 Insurance. Trustor shall keep the improvements on the Trust Property insured against loss by fire and other hazards. Insurance policies shall include a standard mortgage clause and name Beneficiary as loss payee.

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

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

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

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

3.7 Inspection. Beneficiary may inspect the Trust Property at reasonable times upon reasonable notice.

ARTICLE IV - ASSIGNMENT OF RENTS

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

4.2 License to Collect. Trustor shall have a license to collect and retain such rents prior to default. Upon default, this license shall terminate, and Beneficiary may collect all rents directly or through a receiver.

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 Trustor;
(d) Transfer of the Trust Property without Beneficiary's prior written consent;
(e) Bankruptcy or insolvency of Trustor.

5.2 Remedies. Upon default, Beneficiary may:
(a) Declare all sums secured hereby immediately due and payable;
(b) Invoke the power of sale;
(c) Foreclose judicially as a mortgage under A.R.S. Chapter 6; or
(d) Pursue any other remedy available at law or equity.

5.3 Notice of Trustee's Sale. Pursuant to A.R.S. § 33-808, Trustee shall give written notice of the time and place of sale by:
(a) Recording the notice of sale in the office of the County Recorder where the Trust Property is located;
(b) Posting a copy of the notice on the Trust Property at least twenty (20) days before the date of sale (or at a common entrance gate if access is restricted);
(c) Posting the notice at a location designated for public notices at the Superior Court building;
(d) Publishing the notice in a newspaper of general circulation in the county at least once a week for four (4) consecutive weeks, with the last publication not less than ten (10) days prior to the sale date;
(e) Mailing the notice to Trustor and all persons entitled to notice under A.R.S. § 33-809.

5.4 Notice Contents. The notice of sale shall include:
(a) The names and addresses of the Beneficiary and Trustee;
(b) The name and address of the original Trustor;
(c) The signature of the Trustee and the basis for Trustee's qualification under A.R.S. § 33-803(A);
(d) The legal description and street address of the Trust Property;
(e) The date, time, and place of sale;
(f) The nature of the default;
(g) The sum owing on the obligation secured.

5.5 Timing of Sale. The power of sale may not be exercised before the ninety-first (91st) day after the date of recording the notice of sale, pursuant to A.R.S. § 33-807(D).

5.6 Sale Restrictions. The sale:
(a) Shall not be set for a Saturday or legal holiday;
(b) Shall be conducted at public auction;
(c) May be postponed by public announcement for up to ninety (90) days.

5.7 Purchaser's Title. Upon receipt of payment, Trustee shall execute and deliver a Trustee's Deed to the purchaser within seven (7) business days. The deed conveys the Trust Property without warranty, subject to existing liens, pursuant to A.R.S. § 33-811.

5.8 Application of Proceeds. Trustee shall apply the proceeds of sale in the following order:
(a) Costs and expenses of the sale, including Trustee's fees and reasonable attorneys' fees;
(b) Payment of all sums secured by this Deed of Trust;
(c) Junior liens in order of priority;
(d) Any surplus to Trustor or persons legally entitled thereto.

5.9 Deficiency Judgment. Pursuant to A.R.S. § 33-814:
(a) An action to recover a deficiency judgment must be commenced within ninety (90) days after the date of sale;
(b) The deficiency shall be the difference between the total amount owed and the greater of (i) the fair market value of the Trust Property on the date of sale or (ii) the sale price;
(c) If no action is maintained within ninety days, the sale proceeds are deemed full satisfaction of the obligation.

NOTE: ANTI-DEFICIENCY PROTECTION - Arizona law prohibits deficiency judgments on purchase money loans secured by property of 2.5 acres or less that is limited to a one or two-family dwelling (A.R.S. § 33-814(G)).

ARTICLE VI - RECONVEYANCE

6.1 Request for Reconveyance. Upon written request of Beneficiary stating that all sums secured have been paid, and upon surrender of this Deed of Trust and the Note to Trustee for cancellation, Trustee shall reconvey the Trust Property without warranty.

6.2 Release. The reconveyance may designate the grantee as "the person or persons legally entitled thereto."

6.3 Recording. The reconveyance shall be recorded 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 County Recorder of [COUNTY] County, Arizona.

7.2 Legal Description. The legal description in Exhibit A must be a complete and accurate description of the Trust Property.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Deed of Trust shall be governed by Arizona 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 Waiver. No waiver of any provision shall be effective unless in writing.

8.6 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, Trustor has executed this Deed of Trust as of the date first written above.

TRUSTOR(S):

_______________________________
[TRUSTOR NAME]
Date: _________________________

_______________________________
[TRUSTOR NAME]
Date: _________________________

ACKNOWLEDGMENT

STATE OF ARIZONA
COUNTY OF [COUNTY]

The foregoing instrument was acknowledged before me this _____ day of ______________, 20___, by [TRUSTOR NAME(S)].

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

Assessor's Parcel Number: [NUMBER]

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