Deed of Trust

DEED OF TRUST

State of South Dakota

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

Date: [DATE]
Document Number: _________________ (Register of Deeds' Use)
Property Address: [PROPERTY ADDRESS, CITY, SD ZIP]
Parcel ID: [PARCEL ID]

IMPORTANT NOTICE - HYBRID FORECLOSURE STATE

SOUTH DAKOTA IS A HYBRID FORECLOSURE STATE. South Dakota permits both judicial foreclosure (SDCL Chapter 21-47) and non-judicial foreclosure by power of sale (SDCL Chapter 21-48). This Deed of Trust contains a power of sale clause authorizing non-judicial foreclosure. However, the homeowner may request judicial foreclosure, at which point proceedings will be transferred to the courts.

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 does hereby irrevocably grant, transfer, and assign to Trustee, in trust, WITH POWER OF SALE, the following described real property situated in [COUNTY] County, South Dakota:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], South Dakota [ZIP CODE]

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, and profits.

POWER OF SALE

This Deed of Trust contains a POWER OF SALE pursuant to SDCL Chapter 21-48. Upon default, and after providing all notices required by law, Trustee or Beneficiary may sell the Trust Property at public auction without judicial proceedings, unless Trustor requests judicial foreclosure.

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 - COVENANTS OF TRUSTOR

Trustor covenants and agrees as follows:

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

2.2 Insurance. Trustor shall keep the improvements insured against loss by fire and other hazards, with Beneficiary named as loss payee.

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

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

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

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

ARTICLE III - DEFAULT AND FORECLOSURE

3.1 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.

NON-JUDICIAL FORECLOSURE BY POWER OF SALE (SDCL Chapter 21-48)

3.2 Power of Sale Procedure. If this Deed of Trust or the mortgage contains a power of sale clause and specifies the time, place, and terms of sale, the specified procedure must be followed. Otherwise:

3.3 Notice of Sale (SDCL §§ 21-48-6, 21-48-6.1). Beneficiary must:
(a) Serve a written copy of the notice of foreclosure sale on Trustor and any lienholder at least twenty-one (21) days prior to the date set for sale;
(b) Publish a foreclosure notice once a week for four (4) successive weeks in a newspaper of general circulation in the county where the property is located.

3.4 Foreclosure Sale. The sale shall be conducted at public auction. The property may be sold to the highest bidder for cash.

3.5 Right to Request Judicial Foreclosure. Trustor may request judicial foreclosure, at which point proceedings will be transferred to the courts.

REDEMPTION PERIOD

3.6 Redemption Period.
(a) If the property is 40 acres or less and the mortgage contains a power of sale clause: one hundred eighty (180) days;
(b) If the property is abandoned: sixty (60) days;
(c) For other properties: generally one (1) year from the date of sale.

3.7 No Statutory Reinstatement Right. South Dakota law does not provide Trustor with a statutory right to reinstate the loan in a non-judicial foreclosure. This Deed of Trust may provide such right contractually.

DEFICIENCY JUDGMENT

3.8 Deficiency Judgment. South Dakota permits deficiency judgments in both judicial and non-judicial foreclosure.

3.9 Limitation on Deficiency After Non-Judicial Foreclosure (SDCL § 21-48-14). In a non-judicial foreclosure, if Beneficiary purchases the property, the deficiency amount is limited to the difference between the total debt and the property's fair market value (not the purchase price at sale).

ARTICLE IV - RECONVEYANCE

4.1 Full Reconveyance. Upon payment of all sums secured hereby, Beneficiary shall request Trustee to reconvey the Trust Property to Trustor. Trustee shall reconvey the Trust Property without warranty and without charge to Trustor.

4.2 Recording. The Reconveyance shall be recorded with the Register of Deeds in the county where the Trust Property is located.

ARTICLE V - TRUSTEE PROVISIONS

5.1 Trustee Acceptance. Trustee accepts this trust when this Deed of Trust is recorded.

5.2 Successor Trustee. Beneficiary may appoint a successor trustee by recording a substitution of trustee in the county where the Trust Property is located.

5.3 Trustee's Fees. Trustor shall pay reasonable Trustee's fees for services rendered.

ARTICLE VI - RECORDING REQUIREMENTS

6.1 Recording. This Deed of Trust shall be recorded with the Register of Deeds of [COUNTY] County, South Dakota.

6.2 Recording Fees. South Dakota recording fees shall be paid upon recording.

ARTICLE VII - MISCELLANEOUS PROVISIONS

7.1 Governing Law. This Deed of Trust shall be governed by South Dakota law.

7.2 Successors and Assigns. This Deed of Trust binds and benefits the heirs, executors, administrators, successors, and assigns of the parties.

7.3 Severability. If any provision is held invalid, all other provisions remain in full force.

7.4 Notices. All notices shall be in writing and sent to the addresses set forth above.

7.5 Entire Agreement. This Deed of Trust and the Note constitute the entire agreement of the parties.

ARTICLE VIII - 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
☐ Agricultural Property 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 SOUTH DAKOTA
COUNTY OF [COUNTY]

On this _____ day of ______________, 20___, before me, the undersigned Notary Public, personally appeared [TRUSTOR NAME(S)], known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged 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 [COUNTY] County, State of South Dakota, and is described as follows:

[INSERT COMPLETE LEGAL DESCRIPTION]

Parcel ID: [NUMBER]

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