Deed of Trust (Trust Deed) - Oregon

TRUST DEED

State of Oregon

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

SPACE ABOVE THIS LINE FOR RECORDER'S USE

Date: [DATE]
Recording Information: _________________ (Recorder's Use)
Property Address: [PROPERTY ADDRESS, CITY, OR ZIP]
Tax Account Number: [TAX ACCOUNT NUMBER]

TRUST DEED

THIS TRUST DEED 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 irrevocably grants, bargains, sells, and conveys to Trustee, in trust, with POWER OF SALE, the following described real property situated in [COUNTY] County, Oregon:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

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

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, 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 Trust Deed 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 Trust Deed;
(c) The performance of Grantor's covenants and agreements under this Trust Deed and the Note.

ARTICLE II - TRUSTEE PROVISIONS

2.1 Trustee Qualifications. The Trustee named herein is qualified to serve under ORS 86.713 and must be:
(a) An attorney who is an active licensee of the Oregon State Bar, or a law practice that includes such an attorney;
(b) A financial institution or trust company, as defined in ORS 706.008, authorized to do business under Oregon or federal law;
(c) A title insurance company, or its qualifying subsidiary, affiliate, insurance producer, or branch, authorized to insure Oregon real-property title;
(d) The United States or an agency of the United States; or
(e) An escrow agent licensed under ORS 696.505 to 696.590.

A trustee described in ORS 86.713(1)(b)(B) or (C) must also hold any certificate of authority required by ORS 86.713(1)(c).

2.2 Successor Trustee. At any time after execution of this Trust Deed, Beneficiary may appoint another qualified trustee by a written appointment. When the appointment is recorded in the mortgage records of every county in which this Trust Deed is recorded, the successor trustee has the powers of the original Trustee, as provided by ORS 86.713(3).

2.3 Trustee's Duties. Trustee shall exercise the powers granted herein in accordance with the Oregon Trust Deed Act and this Trust Deed.

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 Trust Deed;
(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, to the extent enforcement is permitted by applicable law;
(e) Bankruptcy or insolvency of Grantor, to the extent this provision and any resulting remedy are enforceable under applicable law.

5.2 Foreclosure Options. At the option of Beneficiary, this Trust Deed may be foreclosed:
(a) By advertisement and sale as provided in ORS 86.705 to 86.815; or
(b) By judicial foreclosure as provided by law for mortgages.

Beneficiary and Trustee may exercise either remedy only after satisfying every prerequisite, notice requirement, foreclosure-avoidance requirement, and other limitation that applies to the property, loan, parties, and chosen remedy.

5.3 Non-Judicial Foreclosure (Foreclosure by Advertisement and Sale).

(a) Preconditions and Recording. Before foreclosure by advertisement and sale, the applicable trust deed, assignments, and successor-trustee appointments must be recorded; a default must exist; and the trustee or Beneficiary must record a Notice of Default and Election to Sell in every county in which any part of the Trust Property is situated. The recorded notice must contain the information required by ORS 86.771. Additional residential-trust-deed filings and foreclosure-avoidance prerequisites may apply under ORS 86.726 to 86.752.

(b) Notice of Sale. After the Notice of Default is recorded, the Notice of Sale required by ORS 86.764 and 86.771 must be served or mailed at least one hundred twenty (120) days before the sale. The statutory recipients include Grantor, a recorded or actually known successor in interest, persons with recorded or actually known subordinate liens or interests, and persons who recorded a qualifying request under ORS 86.806.

(c) Occupants and Residential Notices. An occupant must receive service or posting and follow-up notice as provided in ORS 86.774. If the property is subject to a residential trust deed or includes a dwelling unit subject to ORS chapter 90, the separate notices and prescribed content required by ORS 86.756 and 86.771 must also be provided.

(d) Publication. The Notice of Sale must be published in a newspaper of general circulation in each county in which the Trust Property is situated once a week for four successive weeks. The last publication must occur more than twenty (20) days before the sale, as provided in ORS 86.774(2).

(e) Proof of Compliance. At or before the sale, Trustee must record the applicable affidavits of mailing, service, service attempts and posting, publication, and residential notice described in ORS 86.774(3) and (4).

5.4 Statutory Timeline. The statutory notice period is at least one hundred twenty (120) days before the sale. Foreclosure-avoidance procedures, service, publication, postponement, a stay, or other applicable law may require additional time.

5.5 Grantor's Right to Cure. Notwithstanding any acceleration clause in the Note, Grantor may cure the existing default at any time that is not later than five (5) days before the date last set for the sale by paying:
(a) The entire amount then due other than amounts that would not have been due absent acceleration;
(b) The performance required to cure any other curable default; and
(c) The costs, expenses, Trustee's fees, and attorney fees permitted by ORS 86.778.

The cure right also extends to the other persons identified in ORS 86.778(1). For a residential trust deed, the combined Trustee and attorney fees demanded as a condition of cure may not exceed the lesser of the amount actually charged or $1,000; different standards apply to a nonresidential trust deed.

5.6 Conduct of Sale. Trustee shall sell the Trust Property:
(a) At public auction at the time, date, and place stated in the Notice of Sale;
(b) To the highest bidder for cash;
(c) After 9:00 a.m. and before 4:00 p.m.; and
(d) At a designated place in the county, or one of the counties, in which the Trust Property is situated, subject to the special affordable-housing-covenant rule in ORS 86.782(1)(b).

5.7 Trustee's Deed. Following the sale, Trustee shall execute and deliver a Trustee's Deed to the purchaser. The Trustee's Deed conveys to the purchaser the interest in the property that Grantor had at the time of execution of this Trust Deed, together with any interest acquired thereafter.

5.8 No Right of Redemption. An interest foreclosed and terminated by a Trustee's sale under ORS 86.797 may not be redeemed from the purchaser after the sale. Failure to give a statutorily entitled person notice may leave that person's separate statutory remedies or interest unaffected.

5.9 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 Trust Deed;
(c) Third, to junior liens in order of priority;
(d) Fourth, the surplus to Grantor or persons legally entitled thereto.

5.10 Deficiency Restrictions. Following a Trustee's sale, an action for a deficiency on the secured obligation may not be brought against Grantor, Grantor's successor in interest, or another person obligated on that obligation, subject to the other-collateral provisions of ORS 86.797(4)(a). ORS 86.797(4)(b) preserves an action against a guarantor for a remaining deficiency only after a judicial foreclosure, not after a Trustee's sale. Judicial foreclosure of a residential trust deed is also subject to the restrictions in ORS 86.797(2).

ARTICLE VI - RECONVEYANCE

6.1 Full Reconveyance. Within thirty (30) days after full performance of the secured obligation, Beneficiary shall deliver a written request directing Trustee to reconvey the Trust Property to Grantor. Within thirty (30) days after receiving that request, Trustee shall execute the reconveyance to Grantor, as required by ORS 86.720(1).

6.2 Partial Reconveyance. Beneficiary may request partial reconveyance of any portion of the Trust Property upon partial payment of the debt.

6.3 Recording. The reconveyance shall be recorded in each county in which the Trust Property is located. ORS 86.720 provides additional release procedures if a full reconveyance has not been executed and recorded within sixty (60) calendar days after full satisfaction.

ARTICLE VII - RECORDING REQUIREMENTS

7.1 Recording. This Trust Deed shall be recorded in the mortgage records maintained by the county clerk of each Oregon county in which any part of the Trust Property is situated.

7.2 Legal Description. The legal description in Exhibit A must accurately describe the Trust Property.

ARTICLE VIII - MISCELLANEOUS PROVISIONS

8.1 Governing Law. This Trust Deed shall be governed by Oregon law.

8.2 Successors and Assigns. This Trust Deed 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 Request for Notice. Grantor requests all notices required by this Trust Deed and applicable law. A person seeking the additional notice right under ORS 86.806 must, after recordation of this Trust Deed and before recordation of a Notice of Default, separately record a duly acknowledged request that contains the information required by that statute. This clause alone is not that statutory request.

8.6 Entire Agreement. This Trust Deed 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 Trust Deed as of the date first written above.

GRANTOR(S):

_______________________________
[GRANTOR NAME]
Date: _________________________

_______________________________
[GRANTOR NAME]
Date: _________________________

ACKNOWLEDGMENT (ORS 194.280 AND 194.285)

STATE OF OREGON
COUNTY OF [COUNTY]

This instrument was acknowledged before me on ______________, 20___, by [GRANTOR NAME(S)].

_______________________________
Signature of Notarial Officer
Title of Office: Notary Public for Oregon
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

Tax Account Number: [NUMBER]

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