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HomeMy WebLinkAboutWarranty Deed 06i * ID FOR BY:UPC.73520,IDELBIRD.HORNS.JAFFAR.WARDEED 117.; e•sity f!t i company P.4.i)raWarDT Filed for Record College Station,Texas 77841 °a r" BRAM COOKY GF# tl C.X . E On; „a t7,2000241P As a Notice of Confidentiality Rights:If you are a natural person,you may M LABEL REC:DRDIW- remove or strike any or all of the following information from any „�__ S instrument that transfers an interest in real property before it is filed for f Eur 4er s.s- z record in the public records: your social security number or r 1;,«; driver's license number. 32cxi.t ;lumber - 3233258 Bts ?.ar P_o'a WARRANTY DEED WITH VENDOR'S LIEN Date: ��j .4/t i� I' L! ,2007 Grantor: CLE I I E LA VERN IDLEBIRD AND RUFUS JAMES HORNS Grantee: ALI JAFFAR Grantee's Mailing Address: Sof f,{,1lezzi-m A ‘„. Consideration: TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration,CASH and a note of even date executed by Grantee and payable to the order of FRANKLIN BANK,S.S.B.in the principal amount of ONE HUNDRED FIFTY THOUSAND DOLLARS NO/100($150,000.00).The note is secured by a first and superior vendor's lien and superior title retained in this deed by Grantor,which is hereby transferred to FRANKLIN BANK,S.S.B. and by a first-lien deed of trust of even date from Grantee to Anthony J.Nocella,Trustee. Property(including any improvements): Metes and bounds description of all that certain tract or parcel of land lying and being situated in the Crawford Burnett League,A-7,College Station,Brazos County,Texas.Said tract being the same tract of land as described by a deed to Clemmie La Vern Idlebird and Rufus James Horns,recorded in Volume 6236, Page 94 of the Official Public Records of Brazos County,Texas being more particularly described in"EXHIBIT A"attached hereof and made a part thereof. Reservations from Conveyance: None Exceptions to Conveyance and Warranty: This conveyance is made subject to all valid and subsisting easements,restrictions,rights of way, • conditions,exceptions,reservations,and covenants of whatsoever nature of record,if any,and also to the zoning laws and other restrictions,regulations,ordinances and statutes of municipal or other governmental authorities applicable to and enforceable against the described property. Grantor,for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty,grants,sells,and conveys to Grantee the Property,together with all and singular the rights and appurtenances thereto in any way belonging,to have and to hold it to Grantee and Grantee's heirs,successors,and assigns forever.Grantor binds Grantor and Grantor's heirs and successors to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs,successors,and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty. The vendor's lien against and superior title to the Property are retained until each note described is A,'l.r 1,.1;.1 onnr,.r4;,., tu.•rr.o .,t.,rh;.,h t;mo When the context requires,singular nouns and pronouns include the plural. Ad valorem taxes for the current year have been prorated as of the date of delivery of this deed,and the Grantee by their acceptance hereof covenants and agrees to pay all ad valorem taxes upon the property from and including taxes for the year 2007. CLEMMIE LA VERN IDLEBIRD )UFUS AMES HORNS STATE OF 1-e.--DW COUNTY OF 30 This instrument was acknowledged before me on the 7 day of August,2007,by Clemmie La Vem Idlebird. WM.C.LIPSEY NOTARY STATE OF TEXAS Nip MY COMM.EXP.MAY 1,2008 NOTARY ' • IC, tate of Texas Notary's name ,rinte : My commission expires: STATE OF I COUNTY OF q7,406 This instrument was acknowledged before me on the /1 day of August,2007,by Rufus James Horns. WM.C.LIPSEY '�• � NOTARY PUBLIC STATE OF TEXAS MY COMM.EXP.MAY 1,2008 NOTARY P LI , tate of Texas Notary's nam print d: My commission expires: RECORDING PAID FOR BY:U.C.73520.IDLEBIRD.HORNS.JAFFAR PREPARED IN THE LAW OFFICE OF: AFTER RECORDING RETURN TO: HOELSCHER,LIPSEY,ELMORE&BENN, P.C. 1021 University Drive East College Station,Texas 77840 WCL/ GENERAL WARRANTY DEED IDLEBIRD AND HORNS to ALI JAFFAR Warranty Deed with Vendor's Lien Page 2 Bill&Return to: �* .(Cr' r University Title Company i ' -`r ""- t r P.O.Drawer DT RADS*MTV College Station,Texas 77841fi; Aug +7;2g1?7 at fPf41P After Recording Please Return To: GF# 7337--V As a University Title Company ND LEL_C3k3? 1021 University Dr.E. 7ocuslent iueber. 30973616 College Station,Texas 77840 3 Receipt fusser - 3:z z33 59 Cause 3arc_elona Space Above This Line For Recording Data DEED OF TRUST Notice of confidentiality rights: If you are a natural person, you may remove or strike any or all of the following information from this instrument that transfers an interest in real property before it is filed for record in the public records: your Social Security Number or your driver's license number. DATE AND PARTIES. The date of this Deed Of Trust(Security Instrument)is August 16,2007. The parties and their addresses are: GRANTOR: ALI JAFFAR 5727 Richmond Ave.,Ste.202 Dallas,Texas 75206-6865 TRUSTEE: ANTHONY J NOCELLA 9800 Richmond Houston,Texas 77042 LENDER: FRANKLIN BANK,S.S.B.,A TEXAS STATE SAVINGS BANK Organized and existing under the laws of the United States of America 2807 Texas Avenue PO Box 833 Bryan,Texas 77805-0833 1.CONVEYANCE. For good and valuable consideration,the receipt and sufficiency of which is acknowledged,and to secure the Secured Debts and Grantor's performance under this Security Instrument, Grantor irrevocably grants, conveys and sells to Trustee,in trust for the benefit of Lender,with power of sale,the following described property: Metes and bounds description of all that certain tract or parcel of land lying and being situated in the Crawford Burnett League,A-7,College Station, Brazos County,Texas. Said tract being the same tract of land as described by a deed to Clemmie La Vern Idiebird and Rufus James Horns,recorded in Volume 6236, Page 94 of the Official Public Records of Brazos County,Texas and being more particularly described in Exhibit"A"attached hereto and made a part of herein. The property is located in Brazos County at Luther Street,College Station,Texas 77845. Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, all water and riparian rights, wells, ditches and water stock, crops, timber, all diversion payments or third party payments made to crop producers and all existing and future improvements,structures,fixtures,and replacements that may now,or at any time in the future, be part of the real estate described (all referred to as Property). This Security Instrument will remain in effect until the Secured Debts and all underlying agreements have been terminated in writing by Lender. 2.MAXIMUM OBLIGATION LIMIT. The total principal amount secured by this Security Instrument at any one time will not exceed$150,000.00. This limitation of amount does not include interest and other fees and charges validly made pursuant to this Security Instrument Also, this limitation does not apply to advances made under the terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. 3. SECURED DEBTS. The term "Secured Debts" includes and this Security Instrument will secure each of the following: A.Specific Debts. The following debts and all extensions,renewals,refinancings,modifications and replacements. A promissory note or other agreement, No. 8411217, dated August 16, 2007, from Grantor to Lender,with a loan amount of$150,000.00,with an interest rate of 8.25 percent per year and maturing on August 16,2010. An Jaffar Texas Deed Of Trust TXf4nhawkins00022000005751013081607Y -1996 Bankers Systems.Inc..St.Cloud,MN C Page I B.All Debts. All present and future debts from Grantor to Lender,even if this Security Instrument is not specifically referenced,or if the future debt is unrelated to or of a different type than this debt. If more than one person signs this Security Instrument,each agrees that it will secure debts incurred either individually or with others who may not sign this Security Instrument. Nothing in this Security Instrument constitutes a commitment to make additional or future loans or advances. Any such commitment must be in writing_ In the event that Lender fails to provide any required notice of the right of rescission, Lender waives any subsequent security interest in the Grantor's principal dwelling that is created by this Security Instrument. This Security Instrument will not secure any debt for which a non- possessory, non-purchase money security interest is created in"household goods"in connection with a"consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. This Security Instrument will not secure any debt for which a security interest is created in"margin stock" and Lender does not obtain a"statement of purpose,"as defined and required by federal law governing securities. C. Sums Advanced. All sums advanced and expenses incurred by Lender under the terms of this Security Instrument. 4. PAYMENTS. Grantor agrees that all payments under the Secured Debts will be paid when due and in accordance with the terms of the Secured Debts and this Security Instrument. 5.WARRANTY OF TITLE. Grantor warrants that Grantor is or will be lawfully seized of the estate conveyed by this Security Instrument and has the right to irrevocably grant,convey and sell the Property to Trustee,in trust,with power of sale. Grantor also warrants that the Property is unencumbered,except for encumbrances of record. 6.PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust,security agreement or other lien document that created a prior security interest or encumbrance on the Property, Grantor agrees: A.To make all payments when due and to perform or comply with all covenants. B.To promptly deliver to Lender any notices that Grantor receives from the holder. C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written consent. 7.CLAIMS AGAINST TITLE. Grantor will pay all taxes,assessments, liens,encumbrances, lease payments, ground rents, utilities,and other charges relating to the Property when due. Lender may require Grantor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Grantor's payment. Grantor will defend title to the Property against any claims that would impair the lien of this Security Instrument. Grantor agrees to assign to Lender, as requested by Lender,any rights, claims or defenses Grantor may have against parties who supply labor or materials to maintain or improve the Property. 8.DUE ON SALE OR ENCUMBRANCE. Lender may,at its option,declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of,or contract for the creation of, any lien,encumbrance,transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by federal law(12 C.F.R.591),as applicable. 9.WARRANTIES AND REPRESENTATIONS. Grantor has the right and authority to enter into this Security Instrument. The execution and delivery of this Security Instrument will not violate any agreement governing Grantor or to which Grantor is a party. 10. PROPERTY CONDITION,ALTERATIONS AND INSPECTION. Grantor will keep the Property in good condition and make all repairs that are reasonably necessary. Grantor will not commit or allow any waste, impairment, or deterioration of the Property. Grantor will keep the Property free of noxious weeds and grasses. Grantor agrees that the nature of the occupancy and use will not substantially change without Lender's prior written consent. Grantor will not permit any change in any license, restrictive covenant or easement without Lender's prior written consent. Grantor will notify Lender of all demands, proceedings,claims,and actions against Grantor, and of any loss or damage to the Property. No portion of the Property will be removed, demolished or materially altered without Lender's prior written consent except that Grantor has the right to remove items of personal property comprising a part of the Property that become worn or obsolete,provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free from any title retention device, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to the security interest created by this Security Instrument. Grantor will not partition or subdivide the Property without Lender's prior written consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of inspecting the Property. Lender will give Grantor notice at the time of or before an inspection specifying a reasonable purpose for the inspection. Any inspection of the Property will be entirely for Lender's benefit and Grantor will in no way rely on Lender's inspection. 11.AUTHORITY TO PERFORM.If Grantor fails to perform any duty or any of the covenants contained in this Security Instrument,Lender may,without notice,perform or cause them to be performed.Grantor appoints Lender as attorney in fact to sign Grantor's name or pay any amount necessary for performance. Lender's right to perform for Grantor will not create an obligation to perform,and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's security interest in the Property, including completion of the construction. 12. ASSIGNMENT OF LEASES AND RENTS. Grantor absolutely, unconditionally, irrevocably and immediately assigns,grants,conveys to Lender all the right,title and interest in the following(Property). A. Existing or future leases,subleases, licenses,guaranties and any other written or verbal agreements for the use and occupancy of the Property, including but not limited to any extensions, renewals,modifications or replacements (Leases). B. Rents, issues and profits, including but not limited to security deposits, minimum rents, percentage rents, additional rents, common area maintenance charges, parking charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages following default, cancellation premiums, "loss of rents" insurance,guest receipts,revenues,royalties,proceeds,bonuses,accounts,contract rights,general intangibles,and Ali Jaffar Texas Deed Of Trust TX/4nhawkins00022000005751013001607Y -1B96 Bankers Systems,Inc.,St.Cloud,MN C Page 2 all rights and claims which Grantor may have that in any way pertain to or are on account of the use or occupancy of the whole or any part of the Property(Rents). In the event any item listed as Leases or Rents is determined to be personal property, this Assignment will also be regarded as a security agreement. Grantor will promptly provide Lender with copies of the Leases and will certify these Leases are true and correct copies. The existing Leases will be provided on execution of the Assignment,and all future Leases and any other information with respect to these Leases will be provided immediately after they are executed. Lender grants Grantor a revocable license to collect, receive, enjoy and use the Rents so long as Grantor is not in default. Grantor's default automatically and immediately revokes this license. Grantor will not collect in advance any Rents due in future lease periods, unless Grantor first obtains Lender's written consent. Amounts collected will be applied at Lender's discretion to the Secured Debts,the costs of managing,protecting and preserving the Property,and other necessary expenses. Upon default, Grantor will receive any Rents in trust for Lender and Grantor will not commingle the Rents with any other funds. When Lender so directs,Grantor will endorse and deliver any payments of Rents from the Property to Lender. Grantor agrees that Lender will not be considered to be a mortgagee-in-possession by executing this Security Instrument or by collecting or receiving payments on the Secured Debts, but only may become a mortgagee-in-possession after Grantor's license to collect, receive, enjoy and use the Rents is revoked by Lender or automatically revoked on Grantor's default, and Lender takes actual possession of the Property. Consequently,until Lender takes actual possession of the Property,Lender is not obligated to perform or discharge any obligation of Grantor under the Leases, appear in or defend any action or proceeding relating to the Rents,the Leases or the Property, or be liable in any way for any injury or damage to any person or property sustained in or about the Property. Grantor agrees that this Security Instrument is immediately effective between Grantor and Lender and effective as to third parties on the recording of this Assignment. As long as this Assignment is in effect, Grantor warrants and represents that no default exists under the Leases,and the parties subject to the Leases have not violated any applicable law on leases, licenses and landlords and tenants. Grantor, at its sole cost and expense, will keep, observe and perform, and require all other parties to the Leases to comply with the Leases and any applicable law. If Grantor or any party to the Lease defaults or fails to observe any applicable law,Grantor will promptly notify Lender. If Grantor neglects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender's option, enforce compliance. Grantor will not sublet, modify, extend, cancel, or otherwise alter the Leases, or accept the surrender of the Property covered by the Leases(unless the Leases so require)without Lender's consent Grantor will not assign,compromise,subordinate or encumber the Leases and Rents without Lender's prior written consent. Lender does not assume or become liable for the Property's maintenance, depreciation, or other losses or damages when Lender acts to manage, protect or preserve the Property, except for losses and damages due to Lender's gross negligence or intentional torts. Otherwise, Grantor will indemnify Lender and hold Lender harmless for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its remedies against any party obligated under the Leases. 13.DEFAULT. Grantor will be in default if any of the following occur: A.Payments. Grantor fails to make a payment in full when due. B.Insolvency or Bankruptcy. The death,dissolution or insolvency of,appointment of a receiver by or on behalf of, application of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by,or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization,composition or debtor relief law by or against Grantor, Borrower,or any co-signer, endorser, surety or guarantor of this Security Instrument or any other obligations Borrower has with Lender. C.Death or Incompetency. Grantor dies or is declared legally incompetent D. Failure to Perform. Grantor fails to perform any condition or to keep any promise or covenant of this Security Instrument. E.Other Documents. A default occurs under the terms of any other transaction document. Including but not limited to any Construction or Loan Agreement or Guaranty Agreement. F.Other Agreements. Grantor is in default on any other debt or agreement Grantor has with Lender. G.Misrepresentation. Grantor makes any verbal or written statement or provides any financial information that is untrue,inaccurate,or conceals a material fact at the time it is made or provided. H.Judgment. Grantor fails to satisfy or appeal any judgment against Grantor. I.Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority. J.Name Change. Grantor changes Grantor's name or assumes an additional name without notifying Lender before making such a change. K.Property Transfer. Grantor transfers all or a substantial part of Grantor's money or property. This condition of default, as it relates to the transfer of the Property, is subject to the restrictions contained in the DUE ON SALE section. L.Property Value. Lender determines in good faith that the value of the Property has declined or is impaired. M. Insecurity. Lender determines in good faith that a material adverse change has occurred in Grantor's financial condition from the conditions set forth in Grantor's most recent financial statement before the date of this Security Instrument or that the prospect for payment or performance of the Secured Debts is impaired for any reason. 14.REMEDIES. On or after default, Lender may use any and all remedies Lender has under state or federal law or in any document relating to the Secured Debts, including,without limitation,the power to sell the Property. Any amounts advanced on Grantor's behalf will be immediately due and may be added to the balance owing under the Secured Debts. Lender may make a claim for any and all insurance benefits or refunds that may be available on Grantor's default. Subject to any right to cure,required time schedules or any other notice rights Grantor may have under federal and state law, Lender may make all or any part of the amount owing by the terms of the Secured Debts immediately due and foreclose this Security Instrument in a manner provided by law upon the occurrence of a default or anytime thereafter. In the event of default, it will be the duty of the Trustee, at the request of Lender(which request is hereby conclusively presumed), to invoke power of sale as required by Section 51.002 of the Texas Property Code, as then amended. Trustee will advertise and sell the Property as a whole or in separate parcels at public auction to the highest bidder for Ali Jaffar Texas Deed Of Trust TXJ4nhawkms00022000005751013081607Y -1996 Bankers Systems,Inc,St,Cloud.MN C Page 3 cash and convey indefeasible title to the Property with covenants of general warranty. Trustee will give notice of sale including the time,terms and place of sale and a description of the Property to be sold as required by the applicable law in effect at the time of the proposed sale. To the extent permitted by law, a mortgage servicer on behalf of Lender may manage information regarding Grantor's last known address, appoint a trustee or substitute trustee, including,without limitation, a perpetual substitute trustee, and administer all aspects of a foreclosure as authorized in this Security Instrument or by applicable law. The Lender may include,without limitation,a book entry system to the extent permitted by law. To the extent not prohibited by law,Trustee will apply the proceeds of the Property's sale in the following order to all fees, charges, costs and expenses of exercising the power of sale and the sale; to Lender for all advances made for repairs, taxes, insurance, liens, assessments and prior encumbrances and interest thereon; to the Secured Debts' principal and interest and paying any surplus as required by law. Lender or its designee may purchase the Property. Upon sale of the Property and to the extent not prohibited by law,Trustee shall make and deliver a deed to the Property sold which conveys indefeasible title to the purchaser,without warranty or with covenants or special or general warranty. The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein to the extent permitted by law. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity,whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on the Secured Debts after the balance is due or is accelerated or after foreclosure proceedings are filed will not constitute a waiver of Lender's right to require full and complete cure of any existing default. By not exercising any remedy, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 15. FORECLOSURE. In the event a foreclosure under power of sale should be commenced by the Trustee, Lender may at any time before the sale of the Property direct the Trustee to abandon the sale,and may then institute suit for the collection of the Secured Debts and for the foreclosure of the lien of this Security Instrument. It is further agreed that if Lender should institute a suit for the collection of the Secured Debts, and for a foreclosure of the lien of this Security Instrument,that Lender may at any time before the entry of a final judgment in said suit dismiss the same, and require the Trustee to sell the Property in accordance with the provisions of this Security Instrument. Lender, if it is the highest bidder,will have the right to purchase at any sale of the Property, and to have the amount for which such Property is sold credited on the Secured Debts. 16.COLLECTION EXPENSES AND ATTORNEYS'FEES. On or after Default,to the extent permitted by law,Grantor agrees to pay all expenses of collection,enforcement or protection of Lender's rights and remedies under this Security Instrument or any other document relating to the Secured Debts. Grantor agrees to pay expenses for Lender to inspect and preserve the Property and for any recordation costs of releasing the Property from this Security Instrument. Expenses include, but are not limited to, reasonable attorneys'fees, court costs, and other legal expenses. These expenses are due and payable immediately. If not paid immediately,these expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of the Secured Debts. In addition,to the extent permitted by the United States Bankruptcy Code,Grantor agrees to pay the reasonable attorneys' fees incurred by Lender to protect Lender's rights and interests in connection with any bankruptcy proceedings initiated by or against Grantor. 17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation,the Comprehensive Environmental Response, Compensation and Liability Act(CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health,safety,welfare,environment or a hazardous substance;and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety,welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substance,""hazardous waste,""hazardous substance,"or"regulated substance"under any Environmental Law. Grantor represents,warrants and agrees that: A.Except as previously disclosed and acknowledged in writing to Lender,no Hazardous Substance has been,is,or will be located, transported, manufactured, treated, refined, or handled by any person on, under or about the Property,except in the ordinary course of business and in strict compliance with all applicable Environmental Law. B. Except as previously disclosed and acknowledged in writing to Lender, Grantor has not and will not cause, contribute to,or permit the release of any Hazardous Substance on the Property. C.Grantor will immediately notify Lender if(1)a release or threatened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migrate from nearby property;or(2)there is a violation of any Environmental Law concerning the Property. In such an event, Grantor will take all necessary remedial action in accordance with Environmental Law. D.Except as previously disclosed and acknowledged in writing to Lender,Grantor has no knowledge of or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about the Property; or(2)any violation by Grantor or any tenant of any Environmental Law. Grantor will immediately notify Lender in writing as soon as Grantor has reason to believe there is any such pending or threatened investigation,claim,or proceeding. In such an event,Lender has the right,but not the obligation,to participate in any such proceeding including the right to receive copies of any documents relating to such proceedings. E.Except as previously disclosed and acknowledged in writing to Lender, Grantor and every tenant have been,are and will remain in full compliance with any applicable Environmental Law. F.Except as previously disclosed and acknowledged in writing to Lender,there are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank,dump or well will be added unless Lender first consents in writing. G.Grantor will regularly inspect the Property, monitor the activities and operations on the Property,and confirm that all permits,licenses or approvals required by any applicable Environmental Law are obtained and complied with. H.Grantor will permit,or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Ali Jaffar Texas Deed Of Trust TXf4nhawklns00022000005751013081607Y -1996 Bankers Systems,Inc.,St.Cloud,MN C Page 4 Substance on, under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on,under or about the Property;or(3)whether or not Grantor and any tenant are in compliance with applicable Environmental Law. I.Upon Lender's request and at any time,Grantor agrees,at Grantor's expense,to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J.Lender has the right, but not the obligation,to perform any of Grantor's obligations under this section at Grantor's expense. K.As a consequence of any breach of any representation,warranty or promise made in this section,(1)Grantor will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages,cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of litigation and attorneys'fees, which Lender and Lender's successors or assigns may sustain; and(2)at Lender's discretion,Lender may release this Security Instrument and in return Grantor will provide Lender with collateral of at least equal value to the Property without prejudice to any of Lender's rights under this Security Instrument. L.Notwithstanding any of the language contained in this Security Instrument to the contrary,the terms of this section will survive any foreclosure or satisfaction of this Security Instrument regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 18.CONDEMNATION. Grantor will give Lender prompt notice of any pending or threatened action by private or public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Grantor authorizes Lender to intervene in Grantor's name in any of the above described actions or claims. Grantor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds will be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. 19. ESCROW FOR TAXES AND INSURANCE. Grantor will not be required to pay to Lender funds for taxes and insurance in escrow. 20. CO-SIGNERS. If Grantor signs this Security Instrument but is not otherwise obligated to pay the Secured Debts, Grantor does so only to convey Grantor's interest in the Property to secure payment of the Secured Debts and Grantor does not agree by signing this Security Instrument to be personally liable on the Secured Debts. If this Security Instrument secures a guaranty between Lender and Grantor, Grantor agrees to waive any rights that may prevent Lender from bringing any action or claim against Grantor or any party indebted under the obligation. These rights may include,but are not limited to,any anti-deficiency or one-action laws. 21. SUCCESSOR TRUSTEE. Lender, at Lender's option, may from time to time remove Trustee and appoint a successor without any other formality than the designation in writing. The successor trustee,without conveyance of the Property, will succeed to all the title, power and duties conferred upon Trustee by this Security Instrument and applicable law. 22.WAIVERS. Except to the extent prohibited by law,Grantor waives all appraisement rights relating to the Property. 23.USURY SAVINGS. In no event shall any provision of this Security Instrument or any other instrument evidencing or securing the Secured Debts ever obligate Grantor to pay or allow Lender to collect interest on the Secured Debts at a rate greater than the maximum non-usurious rate permitted by applicable law. In the event any portion of the sums intended to be secured by this Security Instrument cannot be lawfully secured hereby,payments in reduction of such sums shall be applied first to those portions not secured hereby. In the event that any law is interpreted so that any charge provided for in this Security Instrument and/or together with any instrument evidencing the Secured Debts,violates such law by reason of the acceleration of the Secured Debts or otherwise,such charge is hereby reduced to eliminate such violation. Any amounts paid to Lender in excess of the amounts permitted by applicable law shall be applied to reduce the principal of the Secured Debts,or,at Lender's option,be refunded. 24.OTHER TERMS. The following are applicable to this Security Instrument: A.Additional Terms. Water Rights. At least thirty(30)days before leasing the property secured by this Deed of Trust for the drilling,development and/or production of underground water,Grantor will give written notice to Lender, by certified mail, return receipt requested, at the Lender's address, of the complete terms and provisions of the proposed lease. Grantor agrees that Lender must approve in writing the execution of such lease; and Grantor agrees not to execute such lease prior to securing Lender's written approval, which approval may be withheld by Lender in its discretion. Grantor further agrees not to convey Grantor's water rights or any part thereof pertaining to the property secured by this Deed of Trust without first securing the Lender's written consent,which can be withheld, No conveyance of such interest in water rights shall be effective absent compliance with this provision. Any failure to comply with this covenant constitutes a default entitling the Lender to declare the entire balance due and payable and to proceed under the remedies of this Deed of Trust,and such other rights and remedies as may be provided by law. 26.APPLICABLE LAW. This Security Instrument is governed by the laws of Texas,the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located,except to the extent such state laws are preempted by federal law. 26. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. Each Grantor's obligations under this Security Instrument are independent of the obligations of any other Grantor. Lender may sue each Grantor individually or together with any other Grantor. Lender may release any part of the Property and Grantor will still be obligated under this Security Instrument for the remaining Property. If this Security Instrument secures a guaranty between Lender and Grantor,Grantor agrees to waive any rights that may prevent Lender from bringing any action or claim against Grantor or any party indebted under the obligation. These rights may include, but are not limited to,any anti-deficiency or one- action laws. Grantor agrees that Lender and any party to this Security Instrument may extend, modify or make any change in the terms of this Security Instrument or any evidence of debt without Grantor's consent. Such a change will Ali Jaffar Texas Deed Of Trust TW4nhawkins00022000005751013081507Y -1998 Bankers Systems.Inc.,St.Cloud,MN C Page 5 not release Grantor from the terms of this Security Instrument The duties and benefits of this Security Instrument will bind and benefit the successors and assigns of Lender and Grantor. 27.AMENDMENT,INTEGRATION AND SEVERABILITY. This Security Instrument may not be amended or modified by oral agreement No amendment or modification of this Security Instrument is effective unless made in writing and executed by Grantor and Lender.This Security Instrument and any other documents relating to the Secured Debts are the complete and final expression of the agreement.If any provision of this Security Instrument is unenforceable,then the unenforceable provision will be severed and the remaining provisions will still be enforceable. Z8.INTERPRETATION. Whenever used,the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Security Instrument 29.NOTICE,FINANCIAL REPORTS,ADDITIONAL DOCUMENTS AND RECORDING TAXES. Unless otherwise required by taw,any notice will be given by delivering it or marling It by first class mail to the appropriate party's address listed in the DATE AND PARTIES section,or to any other address designated in writing. Notice to one Grantor will be deemed to be notice to all Grantors. Grantor will inform Lender in writing of any change in Grantor's name,address or other application information. Grantor will provide Lender any financial statements or information Lender requests. All financial statemerda and information Grantor gives Lender will be correct and complete. Grantor agrees to pay all expenses,charges and taxes in connection with the preparation and recording of this Security Instrument. Grantor agrees to sign,deliver,and file any additional documents or certifications that Lender may consider necessary to perfect,continue,and preserve Grantor's obligations under this Security Instrument and to confirm Lender's lien status on any Property,and Grantor agrees to pay all expenses,charges and taxes in connection with the preparation and recording thereof.Time is of the essence. SIGNATURES. By signing,Grantor agrees to the terms and covenants contained in this Security Instrument Grantor also acknowledges receipt of a copy of this Security Instrument THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. GRANTOR: V Ali Individually �` 4,,,,,,... . /��j e� ,, ACKNOWLEDGM. 1 -S 3 K'oC.teas .) individual / V F OF ss. This instrument was a knowledged before me this/(eTh day of V * .ZU�� by Ali Jaffar My commission expires: cr/� I 1,.an R. Irk_r (No blit) ,,:*'tik. TZIYON RUTH ZADOKA l ', 's Notary Public,State of Texas r- ' My Commission Expires ''!Z„,,Y June 29,2011 Au rrtar TN.1)NNI Of"OW TNN,hawls,,enasewenenntn15Ger5arY .rs5eeanke,s System.nuc,A cad.YIN C Penn