1983 George Merritt and Vivian Merritt-Deed of Trust

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l ,- . (dl That Grantors will keap all insurable Mortgaged Premises insured for the protection of the Noteholder against loss by fire, hazards in- cluded within the term "extended coverage" and such other hazards as Noteholder may require In such manner, in such amounts, and in such companies as the Noteholder may approve, and keep the policies therefor, properly endorsed, on deposit with the Noteholder. If renewal policies are not delivered to the Noteholder 30 days before the expiration of the existing policy or policies, with evidence of premiums paid, the Noteholder may, but is not obligated to, obtain the required insurance on behalf of Grantors (or insurance in favor of the Noteholder alonel and pay the premiums thereon. Grantors assign to Noteholder all right and interest in all such policies of in- surance and authorize the Noteholder to collect for, adjust or compromise any losses under any insurance policy on the Mortgaged Premises, and loss proceeds lIess expense of collectionl shall, at the Noteholder's option, be applied on the debt, whet!ler due or not, or to the restoration of the Mortgaged Premises, or be released to Grantors, but such application or release shall not cure or waive any default. (el That, when requested by the Noteholder, Grantors will pay with and in addition to the monthly payments of principal and interest payable under the terms of the Note, on the same day as the prinCipal and Interest Installments are due and payable, a sum equal to one. twelth of the estimated 'annual ground rents, taxes, hazard Insurance premiums and assessments, If any, next due on the Mortgaged Prem- ises. If the amount so paid is not sufficient to pay such ground rents, taxes, hazard Insurance premiums and assessments when due, then Grantors will deposit Immediately with the Noteholder an amount sufficient to pay such ground rents, taxes, hazard Insurance premi. ums, and essessments. If there is a default under any of the provisions of this Deed of Trust resulting In a sale of the Mortgaged Premises or foreclosure, or if the Noteholder acquires the Mortgaged Premises otherwise after default, the Noteholder'shall apply, at the time of commencement of such proceedings or at the time the property Is otherwise acquired, the balance then remaining of the funds accumu- lated under this provision as a credit against the amount then remaining unpaid undar the Note. No Intarest shall accrua or be allowad on any payments made under the provisions of this paragraph. If the amount so paid Is in excess of the amount needed to pay such ground rents, taxes, hazard Insurance premiums and assessments In any calendar year, such excess shall be applied to the next maturing install- ments of principal and Interest. All deposits made pursuant to this paragraph shall be held by the Noteholder as additional security for the payment of the debt described herein and shall not be assigned, attached or otherwise alienated except when transferred by Grantors to a new owner of the Mortgaged Premises concurrently with a bona fide sale of the Mortgaged Premises. (fl That Grantors will not commit- or permit any waste on the Mortgaged Premises and will keep the buildings, fences and all other Im- provements now or hereafter erected on the Mortgaged Premises In sound condition and in good.-repair and will neither do -nor' permit to be done anything to the Mortgaged Premises that mav Impair tile value thereof and the Noteholder shall have the right of entry upon the Mortgaged Premises at all reasonable times for the purpose of Inspecting the same. (gl That, at the option of the Noteholder, Grantors will pay a "late charge" not exceeding four per cent (4%1 of any installment on the Nota when paid more than 15 days after the due date thereof, to cover the extra expenses involved in handling delinquant payments, but such "'ate charge" shall not be payable out of the proceeds of any sale made to satisfy the debt secured hereby, unless such proceeds are suf- ficient to discharge the entire debt and all expenses secured hereby. 6. The Noteholder, without notice, may take possession of the Mortgaged Premises upon default of Grantors, undl!' the terms of this Deed of Trust or the Note, rent the same for the account of Grantors, deduct from the rents all expenses and apply the remainder to the debt. . 7. In the event the ownership of the Mortgaged Premises, or any part thereof, becomes vested in a person other than Grantors, the Note- holder may, without notice to Grantors, deal with such successor or successors in interest with reference to this Deed of Trust and to said debt in the same manner as with Grantors without In any way vitiating or discharging Grantors' liability hereunder or upon the debt. No sale of the Mortgaged Premises and no forbearance on the part of the Noteholder and no extension of the time for the payment of the debt hereby se- cured, given by the Noteholder, shall operate to relaase, modify, change, or affect the original liability of Grantors, either in whola or in part. 8. Tha Noteholder, without notice, may release any part of the Mortgaged Premises, or any person liable for the debt, without In any way affecting the lien hereof upon any part of the Mortgaged Premises not expressly releaSed or the liability of any person not expressly released, and may agree with any party obligatad on the debt, or having any interest in the Mortgaged Premises, to extend the time for payment of any part or all of the debt. Such agreement shall not in any way releasa or Impair the lien hereof, but shall extend the lien hareof as against the titla of all parties having any Interest in the Mortgaged Premises which Interest is subject to this Deed of Trust. 9. Grantors waive the benefit of all laws now existing or that hereafter may be enacted providing for (iI any appraisement before sale of any portion of the Mortgaged Premises, commonly known as Appraisement Laws, and (iil the benefit of all laws that may be hereafter enacted in any way extending the time for the enforcement of the collection of said debt or creating or extending a periOd of redemption from any sale made In collecting said debt, commonly known as Stay Laws and RedemPtion Laws, and Grantors hereby agree and contract that the laws of the State of Texas, save as above excepted, now In force relative to the collection of said debt and the application to the payment thereof, are expressly adOPted and made a part hereof. 10. The Noteholder may, at the Noteholder's option, without demand or notice and without waiver of any right, payor discharge any lien 0' claim upon the Mortgaged Premises or pay any delinquent tax or assessment, and, upon such payment the Noteholder shall be SUbrogated respectively to the rights of the holder of such lien or claim or to the rights of the taxing authority; the Noteholder may advance any unpaid insurance premiums, and whanever Grantors have failed properly to maintain ,the --Improvements, the Noteholder may make repairs necessary for the proper preservation of the security. Grantors agree to pay to the Noteholder, upon demand, any and all disbursements made under the provisions of this Deed of Trust together with Interest thereon at the rate which the principal of the Note shall bear after default from the re- spective dates of such disbursements, and all such disbursements shall become a part of the debt, payable at the same place specified in the Note, and shall be secured by this Deed of Trust. 11. Acceptance by the Noteholder of any payment in an amount less than the amount then due on -said debt shall be deemed an accep- tance on account only, and the failure to pay the entire amount then due shall be and continue to be a default. At any time thereafter, and un- til the entire amount then due o,!:sai~_d~t has ~e.!n,I?,aid, the 1'I!0teholder_ s_haltbe enlitled_!!Lel!~~.i!!La1ltillh.~_confer.red 4e9!'J.t in..t!llsJnst.!:u:.. ment upon the o'ccurrehCin;fa d8fliUlt-:--- - -~ -.-........- . 12. If Grantors make an assignment for the benefit of creditors, or if a receiver is appointed for any part of the Mortgaged Premises, or if Grantors are adjudicated- a bankrupt, or if Grantors institute any proceeding under the Federal 8ankruptcy Laws of the United States, or simi- lar Laws of any State in which Grantors are domiciled, then on the happening of anyone of these events, the whole of said debt shall Immedi- ataly become due and payable at the option of the Noteholder, and the Noteholder may proceed with foreclosure as herein provided. 13. If Grantors shall well and truly pay, or cause to be paid, the Note, and other debt that may be owing, and do keep and perform each and every covenant, condition, and stipulation herein and in the Note contained, then these presents shall become null and void; otherwise to be and remain in full force and effect. If there is a default in any payment, or part thereof, under the Note, or If Grantors shall fail to keap or per- form any of the covenants, conditions or stipulations herein, then the Note, together with all other sums secured hereby shall, at the option of the Noteholder, become at once due and payable without demand or notice other than that demand or notice provided for in this paragraph, and the Trustea when requested so to do by the ~oteholder after such default, shall sail the Mortgaged Premisas at pUblic auction to the highest bidder for cash, between the hours of ten o'clock A. M. and four o'clock P. M. on the first Tuesday in any month, at the door of the Court- house in the County In which the Mortgaged Premises, or any part thereof, are situated, after advertising the time, place, and terms of said sale and the Mortgaged Premises to be sold by posting, or causing to be posted, at least twenty-one (211 consecutive days prior to the date of said sale, written or printed notice thereof at the Courthouse door in each of the Counties in which the Mortgaged Premises are situated (such no- tice shall designate the County where the Mortgaged Premises will be soldl. In addition, at least twenty-one (211 days preceding the date of sale written notice of the proposad sale shall be served by Certified Mall on each debtor obligated to pay such debt, according to the records of Noteholder. Service of such notice shall be completed upon deposit of the notice enclosed In a prepaid wrapper, properly addressed to such debtor at the most recent address as shown by the records of the Noteholder, in a Post Office or official depository under the care and cus-. tody of the United States Postal Service. The affidavit of any person having knowledge of the facts to the effect that such service was com- pleted shall be prima facie evidenca of the fact of service. Grantors authorize and empower the Trustee to sell the Mortgaged Premises, together, or In lots or parcels, as the Trustee shall deem expedient, to execute and deliver to the purchaser or purchasars thereof good and sufficient deeds of conveyance thereto by fee simple title, with covenants o~ general warranty, (and the title of such purchaser, or purchasers, when so made by the Trustee, Grantors bind themselves to warrant and forever defend) and to receive the proceedS of said sale which shall be applied as follows, in the fOllowing order: iii to all reasonable costs and expenses of the sale, including, but not limited to reasonable trustee'-s fees and attorney's fees and costs of title evidence; Iill to all sums secured by this Deed of Trust; and (iiil the excess, if any, to Grantors or such other person or persons entitled thereto by law. . : 14. The Noteholder shall have tha additional right, upon the commencement of any action to enforce the lien herein given,'to have ap- pointed by the court, in which said action is Instituted, a receiver to take possession of the premises and collect the said rents, Issue, and pro- fits arising from the Mortgagad Premises. This provision is a right created by this contract and is cumulative of, and is not to affect in any way, the right of the Noteholder to the appointment of a receiver given the Noteholder by law. 15. If default be made In the payment of any installment of the Note, or any part thereof, or If for any reason (other than the fault of the Noteholderl Grantors fail to keep or perform any of the covenants, conditions or stipulations herein, the Noteholder shall have the OPtion to procead with foreclosure In satisfaction of such items, either through the courts or by directing the Trustee to proceed as if under a foreclosure, I conducting the sale as herein provided and without declaring the whole debt due, and provided that if said sale is made becau_se of such default, .such_ule..may be made subject:to ,ttle -unmatured part of the Note and debt secured by this Deed of Trust;-and-such sale, If so made;-shall not In 'I- . any manner affect the unmatured part of the debt secured by this Deed of Trust, but, as to such unmatured part this Deed of Trust shall remain in full force as though no sale had been made under the provisions of this paragraph. Several sales may be made without exhausting the right of sale for any unmatured part of said debt, it being the purpose to provide for a foreclosure and sale of the Mortgaged Premises for any matured - portion of said debt without exhausting the power of foreclosure and to sell the Mortgaged Premises for any other part of said debt whether matured at the time or subsequently maturing. 16. In case of any sale hereunder, all prerequisites to the sale shall be presumed to have been performed, and in any conveyance given here- under, all statements of facts, or other recitals therein made as to the nonpayment of money secured, or as to the request to the Trustee to an- force this trust, or as to the proper and due appointment of any substitute trustee, or as to the advertisement of sale, or time, place, and man- ner of sale, or as to any other preliminary fact or thing, shall be taken In all courts of law or equity as prima facie evidence that the facts so stated or recited are true. 17. At the OPtion of the Noteholdar, with or without any reason, a succassor substitute trustee may be appointed by the Noteholder with- out any formality other than a designation In writing of a successor or substitute trustee, who shall thereupon become vested with and succeed to all the powers and duties given to the Trustee herein named, the same as if the successor or substitute trustee had been named original Trust- ee herein; and such right to appoint a successor or substitute trustee shall exist as often and whenever the Noteholder desires. If the Notehold- er Is a corporation, the corporation may act through any authorized officer, or by any agent or attorney In fact properly authorized by any such officer. 18. Neither the exercise of, nor the failure to exercise, any option given under the terms of this Dead of Trust shall be considered as a wai- ver of the right tc exercise the same, or any other option given herein, and the filing of a suit to foreclose this Deed of Trust, either on any ma- tured portion of the debt or for the whole debt, shall never be considered an election so as to preclude foreclosure under the power of sale af- ter a dismissal of tha suit; nor shall the filing of the necessary notices for foreclosure, as provided in this Deed of Trust, preclude the prose- cution of a later suit thereon. 19. Any sale of the Mortgaged Premises under this Deed of Trust shall, without further notice, create the relation of landlord and tenant at sufferance betwean the purchaser and Grantors or any person holding possession of the Mortgaged Pramises through Grantors, and upon failura of Grantors or such person to surrendar possession thereof immediately, Grantors or such person may be removed by a writ of posses- sion of the purchaser, either in the Justice Court having venue or in any other Court hereafter h,!v.in~,~enl!.e. 0-) .8 - 8 2 - I 9 6 5