DEED OF TRUST

(Mortgage Alternative - Vermont)

State of Vermont

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

Date: [DATE]
Book/Page: _________________ (Town Clerk's Use)
Property Address: [PROPERTY ADDRESS, CITY, VT ZIP]
SPAN: [SPAN NUMBER]

IMPORTANT NOTICE - JUDICIAL FORECLOSURE STATE (STRICT FORECLOSURE)

VERMONT IS A JUDICIAL FORECLOSURE STATE. Vermont recognizes two types of foreclosure: (1) strict foreclosure, where title passes directly to the lender without a sale; and (2) foreclosure by judicial sale. Both methods require court proceedings. Strict foreclosure is allowed only when the property value does not exceed the mortgage debt. Vermont is one of only a few states that uses strict 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, the following described real property situated in the Town of [TOWN], [COUNTY] County, Vermont:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

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

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

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 - COVENANTS OF GRANTOR

Grantor covenants and agrees as follows:

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

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

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

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

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

2.6 Compliance with Laws. Grantor 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 Grantor;
(d) Transfer of the Trust Property without Beneficiary's prior written consent;
(e) Bankruptcy or insolvency of Grantor.

3.2 Judicial Foreclosure Required. Vermont requires all foreclosures to proceed through the courts. Beneficiary must file a lawsuit in Superior Court.

TYPES OF FORECLOSURE

3.3 Strict Foreclosure (12 V.S.A. § 4941 et seq.). In a strict foreclosure:
(a) The court may issue a decree foreclosing the right of redemption without sale;
(b) Strict foreclosure is allowed only if the court finds there is no substantial value in the property in excess of the mortgage debt plus unpaid property taxes;
(c) Title passes directly to Beneficiary without a foreclosure sale.

3.4 Foreclosure by Judicial Sale (12 V.S.A. § 4945 et seq.). In a foreclosure by judicial sale:
(a) Any party may request, or the court may order, that the property be sold at a judicial foreclosure sale;
(b) The court orders that the mortgaged property be sold at public sale if not redeemed within the allowed time period;
(c) The public sale shall be conducted on or before six (6) months from the expiration of the last redemption date unless extended by the court.

REDEMPTION PERIOD

3.5 Redemption Period for Strict Foreclosure. In a strict foreclosure, Grantor may redeem the property within six (6) months from the date of the foreclosure decree, unless Grantor and Beneficiary mutually agree to a shorter period.

3.6 Redemption Period for Foreclosure by Judicial Sale. For an owner-occupied principal residence or farmland, the redemption period is six (6) months from the date of the foreclosure decree, unless a shorter time is ordered by the court. The court shall fix the period of redemption taking into consideration:
(a) Whether there is value in the mortgaged property in excess of the mortgage debt;
(b) Any assessed but unpaid property taxes;
(c) The condition of the mortgaged property; and
(d) Any other equities.

3.7 Reinstatement (12 V.S.A. § 4948). Prior to the foreclosure sale, Grantor may reinstate the mortgage by paying all amounts in arrears plus reasonable costs and attorney's fees.

3.8 Deficiency Judgment. Vermont permits deficiency judgments. If the foreclosure sale proceeds do not satisfy the debt, Beneficiary may seek a deficiency judgment against Grantor.

ARTICLE IV - RELEASE

4.1 Discharge. Upon payment of all sums secured hereby, Beneficiary shall execute a Discharge of Mortgage suitable for recording.

4.2 Recording. The discharge shall be recorded with the Town Clerk in the town where the Trust Property is located.

ARTICLE V - RECORDING REQUIREMENTS

5.1 Recording. This Deed of Trust shall be recorded with the Town Clerk of [TOWN], Vermont.

5.2 Recording Fees. Vermont recording fees shall be paid upon recording.

5.3 Property Transfer Tax. Vermont Property Transfer Tax shall be paid if applicable.

ARTICLE VI - MISCELLANEOUS PROVISIONS

6.1 Governing Law. This Deed of Trust shall be governed by Vermont law.

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

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

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

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

ARTICLE VII - 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 VERMONT
COUNTY OF [COUNTY]

On this _____ day of ______________, 20___, before me, the undersigned Notary Public, personally appeared [GRANTOR NAME(S)], and he/she/they acknowledged this instrument, by him/her/them sealed and subscribed, to be his/her/their free act and deed.

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

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

[INSERT COMPLETE LEGAL DESCRIPTION]

SPAN: [SPAN NUMBER]

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