Fillable Printable Deed of Trust or Security Deed

Deed of Trust or Security Deed

form HUD-90165-CA (12/20/2005)

ref Handbooks 4571.4 & 4571.5

Page 1 of 4

Previous versions obsolete

Capital Advance Program

Instructions for the Preparation of

Mortgage, Deed of Trust,

or Security Deed

OMB Approval No. 2502-0470

(exp.8/31/2013)

U.S. Department of Housing

and Urban Development

Office of Housing

Federal Housing Commissioner

Under Section 202 of the Housing Act of 1959 or Section 811 of the National Affordable Housing Act

To Have And To Hold the above-described premises, with the appur-

tenances and fixtures, unto the said Mortgagee, successors and assigns,

forever, for the purposes and uses herein set forth.

And Said Mortgagor covenants and agrees:

1. That it will pay the Mortgage Note at the times and in the manner

provided therein;

2. That it will not permit or suffer the use of any of the property for any

purpose other than the use for which the same was intended at the

time this Mortgage was executed;

3. That the Regulatory Agreement, executed by the Mortgagor and the

Secretary of Housing and Urban Development, which is being

recorded simultaneously herewith, is incorporated in and made a

part of this Mortgage. Upon default under the Regulatory Agree-

ment, the Mortgagee, at his/her option, may declare the whole

indebtedness secured to be due and payable;

4. That all rents, profits and income from the property covered by this

Mortgage are hereby assigned to the Mortgagee for the purpose of

Together with all and singular the tenements, hereditaments and appur-

tenances thereunto belonging, and the rents, issues, and profits thereof;

and all apparatus and fixtures of every kind in, or that may be placed in,

any building now or hereafter standing on said land, and also all the

estate, right, title, and interest of the said Mortgagor in and to said

premises; including but not limited to all gas and electric fixtures; all

radiators, heaters, furnaces, heating equipment, steam and hot-water

boilers, stoves and ranges; all elevators and motors; all bathtubs, sinks,

water closets, basins, pipes, faucets, and other plumbing fixtures; all

mantels and cabinets; all refrigerating plants and refrigerators, whether

mechanical or otherwise; all cooking apparatus; all furniture, shades,

awnings, blinds, and other furnishings; all of which apparatus, fixtures,

and equipment, whether affixed to the realty or not, shall be considered

real estate for the purposes hereof; and including all furnishings now or

hereafter attached to or used in and about the building or buildings now

erected or hereafter to be erected on the lands herein described which are

necessary to the complete and comfortable use and occupancy of such

building or buildings for the purposes for which they were or are to be

erected, and all renewals or replacements thereof or articles in substitu-

tion therefor; together with all building materials and equipment now or

hereafter delivered to said premises and intended to be installed therein;

This Indenture, made this _____________________ day of _________________, 20 ____, between _________________________________

___________________________________________________________________________________________________________________________

organized and existing under the laws of ________________________________________________________________________ , a corporation

and the United States of America acting by and through the Secretary of Housing and Urban Development, hereinafter referred to as Mortgagee.

Witnesseth: That whereas the Mortgagor is justly indebted to the Mortgagee in the principal (capital advance amount) sum of

__________________________________________________________ Dollars ($ ______________________ ), evidenced by its note of even date

herewith, said principal being payable provided in said note with a final maturity of ____________________ , which note is identified as being

secured hereby by a certificate thereon. Said note and all of its terms are incorporated herein by reference and this conveyance shall secure any

and all extensions thereof, however evidenced.

Now, Therefore, the said Mortgagor, for the better securing of the payment of the said principal sum of money and the performance of the covenants

and agreements herein contained, does by these presents Convey, Mortgage, and Warrant unto the Mortgagee, successors or assigns, the

following-described real estate situate, lying, and being in the___________________________________________________________________

____________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________

, in the County of _______________________________ , and the State of _____________________________ , to wit:

Sample Mortgage Form:

Use the current FHA corporate mortgage, deed of trust, or security deed form applicable to the jurisdiction in which the mortgage premises are located to prepare

the Section 202 or Section 811 mortgage, deed of trust or security deed.

Appropriate modifications will be needed to show that the Secretary of Housing and Urban Development is making a capital advance rather than insuring a loan and

to delete all references to mortgage insurance. A sample form is shown below and on the following pages showing these changes and others (note especially

paragraphs 10, 19 and 20) pertinent to the special features of the Section 202 or Section 811 program.

Public reporting burden for this collection of information is estimated to average 6 hours per response, including the time for reviewing instructions,

searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.

This information collection is necessary to ensure that viable projects are developed. It is important to obtain information from applicants to assist HUD in

determining if nonprofit organizations initially funded continue to have the financial and administrative capacity needed to develop a project and that the

project design meets the needs of the residents. The Department will use this information to determine if the project meets statutory requirements with

respect to the development and operation of the project, as well as ensuring the continued marketability of the projects. This information is required in order

to obtain benefits. This information is considered non-sensitive and no assurance of confidentiality is provided.

form HUD-90165-CA (12/20/2005)

ref Handbooks 4571.4 & 4571.5

Page 2 of 4

Previous versions obsolete

discharging the debt hereby secured. Permission is hereby given to

Mortgagor so long as no default exists hereunder, to collect such

rents, profits and income for use in accordance with the provisions

of the Regulatory Agreement;

5. That upon default hereunder Mortgagee shall be entitled to the

appointment of a receiver by any court having jurisdiction, without

notice, to take possession and protect the property described herein

and operate same and collect the rents, profits and income there-

from;

6. That at the option of the Mortgagor the principal balance secured

hereby may be adjusted on terms acceptable to the Mortgagee if

partial prepayment results from an award in condemnation in accor-

dance with provisions of paragraph 8 herein, or from an insurance

payment made in accordance with provisions of paragraph 7 herein,

where there is a resulting loss of project income;

7. That the Mortgagor will keep the improvements now existing or

hereafter erected on the mortgaged property insured against loss by

fire and such other hazards, casualties, and contingencies, as may be

stipulated by the Mortgagee, and all such insurance shall be evi-

denced by standard Fire and Extended Coverage Insurance policy or

policies, in amounts not less than necessary to comply with the

applicable Coinsurance Clause percentage, but in no event shall the

amounts of coverage be less than eighty per centrum (80%) of the

insurable values or not less than the principal sum of the Mortgage,

whichever is the lesser, and in default thereof the Mortgagee shall

have the right to effect insurance. Such policies shall be endorsed

with standard Mortgagee Clause with loss payable to the Mortgagee,

as interest may appear, and shall be deposited with the Mortgagee;

That if the premises covered hereby, or any part thereof shall be

damaged by fire or other hazard against which insurance is held as

hereinabove provided, the amounts paid by any insurance company,

to the extent of the principal sum remaining, shall be paid to the

Mortgagee, and, at his/her option, may be applied to the debt or

released for the repairing or rebuilding of the premises;

8. That all awards of damages in connection with any condemnation for

public use or injury to any of said property are hereby assigned and

shall be paid to Mortgagee, and Mortgagee is hereby authorized, in

the name of Mortgagor, to execute and deliver valid acquittance

thereof and to appeal from any such award;

9. That it is lawfully seized and possessed of said real estate in fee

simple and has good right to convey same;

10. To keep said premises in good repair, and not to do, or permit to be

done, upon said premises, anything that may impair the value

thereof, or of the security intended to be effected by virtue of this

instrument; that it will not make any structural alterations to the

building without the written consent of the Mortgagee; to pay to the

Mortgagee, or deposit in an escrow account acceptable to the

Mortgagee, as hereinafter provided, until the final maturity date, a

sum sufficient to pay all taxes and special assessments that hereto-

fore or hereafter may be lawfully levied, assessed or imposed by any

taxing body upon the said land, or upon the Mortgagor or Mortgagee

on account of the ownership thereof to the extent that provision has

not been made by the Mortgagor for the payment of such taxes and

special assessments as hereinafter provided in subparagraph 17;

11. In case of the refusal or neglect of the Mortgagor to make such

payments, or to satisfy any prior lien or encumbrances, or to keep

said premises in good repair, the Mortgagee may pay such taxes,

assessments, and insurance premiums, when due, and may make

such repairs to the property herein mortgaged as in the Mortgagee's

discretion he/she may deem necessary for the proper preservation

thereof, and any moneys so paid or expended shall become so much

additional indebtedness, secured by this Mortgage, to be paid out

of the proceeds of the sale of the mortgaged premises, if not

otherwise paid by the Mortgagor, and shall bear interest at the rate

to be specified by the Mortgagee from the date of advance until

paid, and shall be due and payable on demand;

12. It is expressly provided, however (all other provisions of this

Mortgage to the contrary notwithstanding), that the Mortgagee

shall not be required nor shall he/she have the right to pay,

discharge, or remove any tax, assessment, or tax lien upon or

against the premises described herein or any part thereof or the

improvements situated thereon, so long as the Mortgagor shall, in

good faith, contest the same or the validity thereof by appropriate

legal proceedings brought in a court of competent jurisdiction,

which shall operate to prevent the collection of the tax, assessments,

or lien so contested and the sale or forfeiture of the said premises or

any part thereof to satisfy the same, but in the event of a tax contest,

the Mortgagor shall deposit with the Mortgagee an amount estimated

by the Mortgagee sufficient to satisfy all taxes, penalties, interest, and

costs which may reasonably accrue during such contest;

13. That it will not voluntarily create or permit to be created against the

property subject to this Mortgage any lien or liens inferior or

superior to the lien of this Mortgage and further that it will keep

and maintain the same free from the claim of all persons supplying

labor or materials which will enter into the construction of any all

buildings now being erected or to be erected on said premises;

14. That the improvements about to be made upon the premises above

described and all plans and specifications comply with all munici-

pal ordinances and regulations made or promulgated by lawful

authority, and that the same will upon completion comply with all

such municipal ordinances and regulations and with the flues of

applicable fire rating or inspection organization, bureau, associa-

tion, or office. In the event the Mortgagor shall at any time fail to

comply with such rules, regulations, and ordinances which are now

or may hereafter become applicable to the premises above de-

scribed, after due notice and demand by the Mortgagee, thereupon

the principal sum and all arrears of interest and other charges

provided for herein, shall at the option of the Mortgagee become

due and payable;

15. The Mortgagor covenants and agrees that so long as this Mortgage

and the said note secured hereby are outstanding, it will not execute

or file for record any instrument which imposes a restriction upon

the sale or occupancy of the mortgaged property on the basis of

race, color, national origin, sex, familial status, handicap, age, or

creed, unless permitted by the Housing Act of 1959 or the National

Affordable Housing Act and the HUD regulations promulgated

thereunder.

16. That the funds to be advanced herein are to be used in the

construction of certain improvements on the lands herein de-

scribed, in accordance with a Capital Advance Agreement between

the Mortgagor and

Mortgagee dated _________________________ , 20 _______ ,

which Capital Advance Agreement (except such part or parts

thereof as may be inconsistent therewith) is incorporated herein by

reference to the same extent and effect as if fully set forth and made

a part of this Mortgage; and if the construction of the improve-

ments to be made pursuant to said Capital Advance Agreement

shall not be carried on with reasonable diligence, or shall be

discontinued at any time for any reason other than strikes or lock-

outs, the Mortgagee, after due notice to the Mortgagor or any

subsequent owner, is hereby invested with full and complete

authority to enter upon said premises, employ watchmen to protect

form HUD-90165-CA (12/20/2005)

ref Handbooks 4571.4 & 4571.5

Page 3 of 4

Previous versions obsolete

such improvements from depredation or injury and to preserve and

protect the personal property therein, and to continue any and all

outstanding contracts for the erection and completion of said

buildings, to make and enter into any contracts and obligations

wherever necessary, either in his/her own name or in the name of the

Mortgagor, and to pay and discharge all debts, obligations, and

liabilities incurred thereby. All such sums so advanced by the

Mortgagee (exclusive of portions of the principal of the indebted-

ness secured thereby) shall be additionally secured by this Mort-

gage and shall be due and payable on demand with interest at the

rate to be specified by the Mortgagee. The principal sum and other

charges provided for herein shall, at the option of the Mortgagee or

holder of this Mortgage and the note securing the same, become due

and payable on the failure of the Mortgagor to keep and perform any

of the covenants, conditions, and agreements of said Capital Ad-

vance Agreement. This covenant shall be terminated upon comple-

tion of the improvements to the satisfaction of the Mortgagee and

the making of the final payment as provided in said Capital Advance

Agreement;

17. The Mortgagor, will pay to the Mortgagee as required, until the

final maturity date, a sum equal to the ground rents, if any, and the

taxes and special assessments next due on the premises covered by

the Mortgage, plus the premiums that will next become due and

payable on policies of fire and other property insurance covering

the premises covered hereby, plus water rates, taxes, and assess-

ments next due on the premises covered hereby (all as estimated by

the Mortgagee) less all sums already paid therefor divided by the

number of months to elapse before one (1) month prior to the date

when such ground rents, premiums, water rates, taxes and special

assessments shall become due.

18. Any excess funds accumulated under the preceding paragraph

remaining after payment of the items therein mentioned shall be

credited to subsequent payments of the same nature required there-

under; but if any such item shall exceed the estimate therefor the

Mortgagor shall without demand forthwith make good the defi-

ciency. Failure to do so before the due date of such item shall be a

default hereunder. If the property is sold under foreclosure or is

otherwise acquired by the Mortgagee after default, any remaining

balance of the accumulations under the preceding paragraph shall

be credited to the principal of the Mortgage as of the date of

commencement of foreclosure proceedings or as of the date the

property is otherwise acquired; and

19. That the Mortgagee shall have the right to inspect the mortgaged

premises at any reasonable time.

20. That so long as the Mortgage and Note secured hereby are outstand-

ing, it will not (a) rent dwelling accommodations in the mortgaged

premises in excess of the rates approved by the Mortgagee or for

periods of less than one month; (b) rent the premises as an entirety;

purpose of subleasing; (d) rent the premises or permit its use for

hotel or transient purposes; (e) require of any tenant as a condition

of occupancy life-lease contracts, fees or other payments over and

above those for rents, utilities, and collateral services.

21. In The Event of default in making any payment provided for herein

or in the note secured hereby for a period of thirty (30) days after

the due date thereof, or in case of a breach of any other covenant

herein stipulated, then the whole of said principal sum shall, at the

election of the Mortgagee, without notice, become immediately due

and payable, in which event the Mortgagee shall have the right

immediately to foreclose this Mortgage;

22. And In Case Of Foreclosure of this Mortgage by said Mortgagee

in any court of law or equity, a reasonable sum shall be allowed for

the solicitor's fees of the complainant, not to exceed in any case five

percentum (5%) of the amount of the principal indebtedness found

to be due, and the stenographer's fees of the complainant in such

proceeding, and costs of minutes of foreclosure, master's fees, and

all other costs of suit, and also for all outlays of documentary

evidence and the cost of a complete abstract of title for the purpose

of such foreclosure; and in case of any other suit, or legal proceed-

ing, instituted by the Mortgagee to enforce the provisions of this

Mortgage or in case of any suit or legal proceeding wherein the

Mortgagee shall be made a party thereto by reason of this Mortgage,

its costs and expenses, and the reasonable fees and charges of the

attorneys or solicitors of the Mortgagee, so made parties, for

services in such suit or proceedings, shall be further lien and charge

upon said premises under this Mortgage, and all such expenses shall

become so much additional indebtedness secured hereby and be

allowed in any decree foreclosing this Mortgage;

23. And There Shall Be Included in any decree foreclosing this

Mortgage and be paid out of the proceeds of any sale made in

pursuance of any such decree: (1) All the costs of such suit or suits,

advertising, sale, and conveyance, including attorney's, solicitors',

and stenographers' fees, outlays for documentary evidence and cost

of said abstract and examination of title; (2) All the moneys

advanced by the Mortgagee, if any, for any purpose authorized in

the mortgage, with interest on such advances at the rate specified by

the Mortgagee, from the time such advances are made; (3) All the

accrued interest remaining unpaid on the indebtedness hereby

secured; (4) All the said principal sum. The over-plus of the

proceeds of sale, if any, shall then be paid as the court may direct;

24. A Reconveyance of said premises shall be made by the Mortgagee

to the Mortgagor on full payment of the indebtedness aforesaid, the

performance of the covenants and agreements herein made the

Mortgagor, and the payment of the sums owed under the terms of the

said note.

25. It Is Expressly Agreed that no extension of the time for payment

of the debt hereby secured given by the Mortgagee to any successor

in interest of the Mortgagor shall operate to release, in any manner,

the original liability of the Mortgagor;

26. The Mortgagor hereby waives any and all rights of redemption from

sale under any order or decree of foreclosure of this Mortgage on its

own behalf and on behalf of each and every person except decree or

judgment creditors of the Mortgagor acquiring any interest in or

title to the premises subsequent to the date of this Mortgage;

27. The Covenants Herein Contained shall bind, and the benefits and

advantages shall inure to, the successors and assigns of the respec-

tive parties hereto. Wherever used, the singular number shall be

plural, the plural the singular, and the use of any gender shall be

applicable to all genders.

form HUD-90165-CA (12/20/2005)

ref Handbooks 4571.4 & 4571.5

Page 4 of 4

Previous versions obsolete

State of )

County of )

)

I, ___________________________________________________________ , a Notary Public, in and for said County, in the State aforesaid, do

hereby certify that __________________________________________ and _________________________________ , personally known to me to

be the same persons whose names are respecitvely as President and Secretary of _________________________

__________________________________________________ , subscribed to the foregoing instrument, appeared before me in person and severally

acknowledged that they, being thereunto duly authorized, signed, sealed with corporate seal, and delivered the said instrument as the free and

voluntary act of said corporation and as their own free and voluntary act, for the uses and purposes therein set forth.

Given under my hand and notarial seal, this __________________________ day of ____________________ , 20 _______ .

[Seal]

_____________________________________________________ My commission expires _________________________________

Notary Public

By Attest

In Witness Whereof, the Mortgagor has caused its corporate seal to be hereunto affixed and these presents to be signed by its

_______________________________________________and attested by its __________________________________________________ on the

day and year first above written, pursuant to authority given by resolution duly passed by _____________________________________________

of said corporation.

[Corporate Seal]