Deed of Trust

DEED OF TRUST

State of North Carolina

Prepared by and return to:
[PREPARER NAME]
[ADDRESS]
[CITY, STATE ZIP]

MAIL AFTER RECORDING TO:
[NAME]
[ADDRESS]
[CITY, STATE ZIP]

Recording Information: _________________ (Register's Use)
Property Address: [PROPERTY ADDRESS, CITY, NC ZIP]
Parcel Identifier Number (PIN): [PIN]
Tax Lot Number: [TAX LOT]

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]

IMPORTANT NOTICE

The Trustee or Substitute Trustee is a neutral party and, while holding that position in the foreclosure proceeding, may not advocate for the secured creditor or for the debtor in the foreclosure proceeding.

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, to secure the payment of said indebtedness and the performance of the covenants herein contained, Grantor does hereby grant, bargain, sell, and convey unto Trustee, and Trustee's successors or substitutes, in trust, with POWER OF SALE, the following described real property situated in [COUNTY] County, North Carolina:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], North Carolina [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").

TO HAVE AND TO HOLD the same unto Trustee, and Trustee's successors or substitutes, in trust, upon the terms and conditions herein set forth.

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 Trustee Role. The Trustee is a neutral third party. Pursuant to N.C.G.S. § 45-21.16, the Trustee may not advocate for the secured creditor or the debtor in the foreclosure proceeding.

2.2 Substitution of Trustee. Beneficiary may substitute a Trustee by executing a written document properly recorded pursuant to N.C.G.S. Chapter 47. Upon substitution, the substitute Trustee shall succeed to all powers and duties of the original Trustee.

2.3 Attorney as Trustee. An attorney who serves as Trustee or Substitute Trustee shall not represent either the Beneficiary's or the Grantor's interests while initiating a foreclosure proceeding.

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 (POWER OF SALE)

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 Power of Sale Foreclosure. North Carolina permits power of sale foreclosure, but authorization from the Clerk of Superior Court is required before the sale can proceed.

5.3 Notice of Hearing. Pursuant to N.C.G.S. § 45-21.16, a power of sale foreclosure is initiated when Trustee or Substitute Trustee files a "Notice of Hearing" with the Clerk of Superior Court in the county where the Trust Property is located. The matter is filed as a special proceeding.

5.4 Service of Notice. The Notice of Hearing must be served on:
(a) Borrowers;
(b) Record property owners;
(c) Any other party required under the Deed of Trust.

Service may be by any manner provided by the Rules of Civil Procedure, including service by the sheriff or certified mail, return receipt requested.

5.5 Clerk's Hearing (N.C.G.S. § 45-21.16(d)). The Clerk must make the following findings before authorizing foreclosure:
(a) The party seeking to foreclose is the holder of the debt;
(b) A default has occurred;
(c) There is a right to foreclose under the instrument;
(d) Proper notice was provided to those entitled to notice;
(e) The underlying debt is not a "home loan" as defined in N.C.G.S. § 45-101(1b), OR if it is a home loan, the pre-foreclosure notice required by N.C.G.S. § 45-102 was provided;
(f) The sale is not barred by N.C.G.S. § 45-21.12A.

5.6 Appeals. The Clerk's findings may be appealed to the District or Superior Court within ten (10) days after the findings. The appealing party must post a bond.

5.7 Notice of Sale. After authorization, Trustee shall give notice of sale by:
(a) Posting notice at the courthouse door for at least twenty (20) days before the sale;
(b) Mailing notice to parties entitled to notice;
(c) Publishing notice in a newspaper of general circulation in the county.

5.8 Military Service Protection. Trustee shall not exercise power of sale during, or within ninety (90) days after, a mortgagor's period of military service. Trustee must file a certification that the hearing will not take place during or within 90 days of military service.

5.9 Conduct of Sale. The sale shall be:
(a) Held at the time, date, and place specified in the notice;
(b) Conducted at public auction at the courthouse door;
(c) Made to the highest bidder.

5.10 Trustee's Deed. Upon completion of the sale, Trustee or Substitute Trustee shall execute a Trustee's Deed conveying title to the purchaser. The deed shall be recorded in the Register of Deeds office.

5.11 Accounting. Trustee shall file an accounting of the sale proceeds with the Clerk of Superior Court.

5.12 Application of Proceeds. Trustee shall apply the proceeds of sale:
(a) First, to costs and expenses of the sale, including Trustee's fees;
(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.

5.13 Deficiency. Deficiency judgments may be pursued by Beneficiary if sale proceeds are insufficient.

ARTICLE VI - RECONVEYANCE

6.1 Release. Upon payment of all sums secured hereby, Beneficiary shall execute a cancellation of this Deed of Trust, which shall be recorded in the Register of Deeds office.

6.2 Recording. The release or cancellation shall be recorded in [COUNTY] County.

ARTICLE VII - RECORDING REQUIREMENTS

7.1 Recording. This Deed of Trust shall be recorded with the Register of Deeds of [COUNTY] County, North Carolina.

7.2 Excise Tax. North Carolina excise tax shall be paid upon recording based on the principal amount secured.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Deed of Trust shall be governed by North Carolina 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):

_______________________________ (SEAL)
[GRANTOR NAME]
Date: _________________________

_______________________________ (SEAL)
[GRANTOR NAME]
Date: _________________________

ACKNOWLEDGMENT

STATE OF NORTH CAROLINA
COUNTY OF [COUNTY]

I, _________________________________, a Notary Public of [COUNTY] County, North Carolina, do hereby certify that [GRANTOR NAME(S)] personally appeared before me this day and acknowledged the due execution of the foregoing instrument.

WITNESS my hand and notarial seal this _____ day of ______________, 20___.

_______________________________
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 North Carolina, and is described as follows:

[INSERT COMPLETE LEGAL DESCRIPTION]

Parcel Identifier Number (PIN): [NUMBER]

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