Deed of Trust (Security Instrument)

DEED OF TRUST

State of Minnesota

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

SPACE ABOVE THIS LINE FOR COUNTY RECORDER'S USE

Date: [DATE]
Document Number: _________________ (Recorder's Use)
Property Address: [PROPERTY ADDRESS, CITY, MN ZIP]
Property Tax ID: [PID]

IMPORTANT NOTICE

Minnesota primarily uses mortgages. While this deed of trust instrument may be recorded, Minnesota law treats deeds of trust similarly to mortgages. Foreclosure will proceed under Minnesota mortgage foreclosure statutes (Chapter 580 for non-judicial foreclosure by advertisement or Chapter 581 for judicial foreclosure).

DEED OF TRUST

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, Minnesota:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], Minnesota [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 statutory power of sale as authorized under Minnesota Statutes § 507.05.

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. Minnesota permits:
(a) Foreclosure by advertisement (non-judicial) under Minn. Stat. Chapter 580; or
(b) Foreclosure by action (judicial) under Minn. Stat. Chapter 581.

Most residential foreclosures are non-judicial.

5.3 Requirements for Non-Judicial Foreclosure (Minn. Stat. § 580.02). Non-judicial foreclosure requires:
(a) This Deed of Trust contains a power of sale;
(b) This Deed of Trust and any assignments have been recorded;
(c) No action has been instituted to recover the debt (or if instituted, has been dismissed);
(d) At least eight (8) weeks have elapsed since the first publication of notice.

5.4 Pre-Foreclosure Notices. For residential property, Minnesota law requires:
(a) Notice of pendency of foreclosure proceedings at least four (4) weeks before publication of notice of sale;
(b) Information about pre-foreclosure counseling and assistance programs.

5.5 Notice of Sale (Minn. Stat. § 580.03). The notice of sale must:
(a) List the names of Grantor and Beneficiary;
(b) State the original loan amount and amount currently in default;
(c) Describe the Trust Property (full legal description and street address);
(d) State the date, time, and place of the foreclosure sale.

5.6 Publication. The notice shall be published once a week for six (6) consecutive weeks in a legal newspaper in the county where the Trust Property is located.

5.7 Service of Notice. The notice shall be served upon Grantor by personal service or by first-class mail to the last known address.

5.8 Conduct of Sale. The sale shall be conducted:
(a) At public auction;
(b) By the Sheriff of the county where the Trust Property is located;
(c) At the time and place specified in the notice.

5.9 Sheriff's Certificate of Sale. Following the sale, the Sheriff shall issue a Certificate of Sale.

5.10 Redemption Period (Minn. Stat. § 580.23). Minnesota provides a statutory redemption period:
(a) Six (6) months for most residential properties;
(b) Twelve (12) months for agricultural property;
(c) Five (5) weeks if the property is abandoned.

5.11 Deficiency. Minnesota permits deficiency judgments in some circumstances. The lender may seek a deficiency judgment within the redemption period.

ARTICLE VI - RECONVEYANCE

6.1 Satisfaction. Upon payment of all sums secured hereby, Beneficiary shall execute a Satisfaction of Mortgage (or Release of Deed of Trust) suitable for recording.

6.2 Recording. The satisfaction shall be recorded with the County Recorder 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, Minnesota.

7.2 Mortgage Registry Tax. Minnesota Mortgage Registry Tax shall be paid upon recording, per Minn. Stat. § 287.05.

7.3 Maturity Date. Minnesota mortgages should clearly state the maturity date. If no maturity date is specified, the 15-year statute of limitations begins on the date of the mortgage.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Deed of Trust shall be governed by Minnesota 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 MINNESOTA
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.

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

Property Identification Number (PID): [NUMBER]

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