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Prepared by and return to: Tara Fikes,Orange County Housing and CD,P.O. Box 8181,Hillsborough,NC, 27278
<br /> DEED OF TRUST
<br /> STATE OF NORTH CAROLINA
<br /> COUNTY OF ORANGE
<br /> THIS DEED OF TRUST,executed this day of 119 ,by and between ORANGE
<br /> COMMUNITY HOUSING CORPORATION(the Borrower"); Geoffrey Gledhill(the"Trustee");and Orange County,
<br /> North Carolina(the"Lender").
<br /> WITNES SETH:
<br /> THAT WHEREAS,the Lender agrees to advance to the Borrower the sum of ONE HUNDRED SIXTY ONE
<br /> THOUSAND DOLLARS($161,000)under the HOME Investment Partnerships Act,evidenced by the Promissory Note
<br /> (the"Note")from the Borrower to the Lender dated the same date as this Deed of Trust,which together with any amounts
<br /> advanced to protect the security of this Deed of Trust shall be the total amount secured;
<br /> AND WHEREAS,it has been agreed that the Loan will be advanced subject to the terms and conditions for use
<br /> of the property as set forth in the Note and this Deed of Trust,and which is repayable as provided in the Note.
<br /> AND WHEREAS,it has been agreed that the Loan shall be secured by the conveyance of the Land described in
<br /> this Deed of Trust.
<br /> NOW,THEREFORE, in consideration of the premises and for the purpose aforesaid and for TEN DOLLARS
<br /> ($10.00)paid by the Trustee,the receipt of which is hereby acknowledged,the Borrower has bargained and sold and by
<br /> these presents does bargain,sell and convey unto said Trustee,the Trustee's heirs,successors and assigns,the premises in
<br /> Hillsborough Township,Orange County,North Carolina,described as follows:
<br /> (See Exhibit "A"attached hereto and incorporated herein by reference)
<br /> together with all heating,plumbing and lighting fixtures and equipment now or hereafter attached to or used in
<br /> connection with the premises(the"Property").
<br /> TO HAVE AND TO HOLD the Property,with all privileges and appurtenances thereunto belonging,to the
<br /> Trustee,the Trustee's heirs,successors and assigns forever,upon the trust,terms and conditions and for the uses set forth
<br /> in this Deed of Trust.
<br /> If there shall be an default in any of the terms covenants or conditions of the Note,the terms of which are made a
<br /> part of this Deed of Trust and incorporated by reference,or any failure or neglect to comply to the satisfaction of the
<br /> Lender with the covenants,terms or conditions in this Deed of Trust,and if the default is not made good within the time
<br /> period set out to cure such default,or if none is set out within thirty(30)days,the Note shall,at the option of and upon
<br /> demand of the Lender,to sell the Property at public auction for cash,after having first given such notice of hearings as to
<br /> commencement of foreclosure proceedings and obtain findings or leave of court as may be then required by law and giving
<br /> notice and advertising the time and place of sale in the manner as may be then provided by law,and upon sale and any
<br /> resales and upon compliance with the law the relating to foreclosure proceedings to convey title to the purchaser in fee
<br /> simple. The proceeds of the sale,after the Trustee retains his commission,shall be applied to the cost of sale,the amount
<br /> due on the Loan and otherwise as required by the then existing law relating to foreclosures. The Trustee's commission
<br /> shall be five percent(5%)of the gross proceeds of the sale.
<br /> The said Borrower does hereby covenant and agree with the Trustee and Lender as follows:
<br /> 1. PAYMENT AND PERFORMANCE. Borrower shall pay the Note and perform all other requirements
<br /> at the times and in the manner provided in the Note and herein.
<br /> 2. RESALE PROVISIONS . In the event Borrower proposes(the"Proposal")to transfer(the"Sale")the
<br /> Property(other than pursuant to an approved Assumption,as defined in the Note),at a price that will not generate a sum
<br /> (the"Net Proceeds"),after payment of the First Loan(as defined in the Note)and all costs of the Sale,which is sufficient
<br /> to pay the Note in full,Lender shall have a Right of First Refusal to purchase the Property at the price contained in the
<br /> Proposal exercisable prior to the expiration of forty-five(45)days after Lender receives a copy of the Proposal. In the
<br /> event Lender fails to exercise his right,and Borrower transfers the Property pursuant to the Proposal,Lender agrees to
<br /> accept the Net Proceeds in full satisfaction of the Note. Notwithstanding the foregoing,if the price set out in the Proposal
<br /> does not reflect the fair market value of the Property,Lender shall have the right to demand that the Note be paid in full.
<br /> 3. INSURANCE. Borrower shall keep the property and all improvements,now and hereafter erected,
<br /> constantly insured for the benefit of the Lender against loss by fire,windstorm and such other casualties and
<br /> contingencies,in the manner and with companies as may be satisfactory to the Lender. The amount of the insurance
<br /> required by this provision shall be the lesser of either the amount of the loan secured by this Deed of Trust or 100%of the
<br /> insurable value of the improvements on the Property. Borrower shall purchase such insurance and pay all premiums in a
<br /> timely manner. In the event that Borrower fails to pay any premium when it is due,then the Lender,at its option, may
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