DEED OF TRUST

State of Hawaii

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

SPACE ABOVE THIS LINE FOR BUREAU OF CONVEYANCES' USE

Date: [DATE]
Document Number: _________________ (Bureau's Use)
Property Address: [PROPERTY ADDRESS, CITY, HI ZIP]
Tax Map Key (TMK): [TMK]

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, State of Hawaii:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], Hawaii [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 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.

2.2 Trustee's Powers. Trustee is given the power of sale and other powers as provided by Hawaii law.

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. Hawaii permits both:
(a) Judicial foreclosure under HRS Chapter 667, Part I; and
(b) Non-judicial (power of sale) foreclosure under HRS Chapter 667, Part II.

Non-judicial foreclosures are more common in Hawaii.

5.3 Power of Sale Foreclosure Requirements. Non-judicial foreclosure is only possible if this Deed of Trust contains a power of sale clause.

5.4 Notice of Default and Intent to Foreclose (HRS § 667-22). The Beneficiary or Trustee shall serve written notice to Grantor by:
(a) Personal service; or
(b) Certified mail, return receipt requested.

The notice shall include information about the default and Grantor's rights.

5.5 Notice of Sale (HRS § 667-27). Notice of the public sale shall:
(a) Be posted on the Trust Property at least twenty-one (21) days prior to the sale;
(b) Be published in a newspaper of general circulation at least three (3) times over not less than fourteen (14) days, with the last publication not less than fourteen (14) days before the sale; OR
(c) Be published on a state-approved website not less than twenty-eight (28) days prior to the sale with at least one notice in a newspaper at least fourteen (14) days before the sale.

5.6 Contents of Notice. The notice of sale shall state:
(a) The date, time, and place of the public sale;
(b) The dates and times of open houses;
(c) The unpaid balance of the secured debt;
(d) A description of the Trust Property, including address and TMK;
(e) The names of Grantor, Borrower, and Beneficiary;
(f) Contact information for the person conducting the sale;
(g) The terms and conditions of the sale.

5.7 Mortgage Foreclosure Dispute Resolution (MFDR) Program. For owner-occupied residential properties, Grantor may elect to participate in Hawaii's MFDR Program, which provides mediation between Grantor and Beneficiary to attempt to avoid foreclosure. If Grantor elects to participate, the non-judicial foreclosure may proceed only after completion of the MFDR process.

5.8 Reinstatement. Grantor may reinstate the loan up to three (3) business days before the sale by paying all past due amounts plus costs and fees.

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

5.10 Trustee's/Mortgagee's Deed. Upon completion of the sale, Trustee shall execute and deliver a deed to the purchaser.

5.11 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.

5.12 No Redemption. Hawaii does not provide a right of redemption after the foreclosure sale.

5.13 Deficiency. Hawaii 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 Bureau of Conveyances (or Land Court, if applicable).

ARTICLE VII - RECORDING REQUIREMENTS

7.1 Recording. This Deed of Trust shall be recorded with the Bureau of Conveyances of the State of Hawaii (or Land Court if the Trust Property is registered land).

7.2 Conveyance Tax. Hawaii Conveyance Tax shall be paid upon recording.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

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

On this _____ day of ______________, 20___, before me personally appeared [GRANTOR NAME(S)], to me known, who, being by me duly sworn or affirmed, did say that such person(s) executed the foregoing instrument as their free act and deed.

_______________________________
Notary Public, State of Hawaii
My Commission Expires: ___________
Print Name: _____________________
Document Date: __________________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

Tax Map Key (TMK): [TMK NUMBER]

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