2001 Normal Park, 8-20-2010C. Note:
A. U.S. Department of Housing
and Urban Development
Settlement Statement
D. Name of Borrower:
E. Name of Seller:
F. Name of Lender:
G. Property Location:
H. Settlement Agent:
Place of Settlement:
1. Settlement Day:
8/19/10 3:36 PM
1.( ]FHA
4. ) VA
B. Ty • . of Loan
2. () FMHA
5. ( ) Cony. Ins.
7. Loan Number
OMB No. 2502 -026_E
3. [ ) Cony. Unins.
8. Mortgage Ins. Case No.
This form is fumished to give you a statement of actual settlement costs. Amounts paid to and by the settlement
agent are shown. Items marked ('POC") were paid outside the closing: they are shown here for information
u • oses and are not included in the totals.
City of Huntsville, 1212 Avenue M. Huntsville, TX 77340
Banco Popular, North America, Go Stewart REO Asset Solutions, 3402 W.
Cypress Street, Tampa, FL 33607
Lot 9, Block 24, Highland, Section 3
2001 Normal Park, Huntsville, D( 77340
Walker County Title Company (936) 295 -8173
1109 University Avenue, Huntsville, TX 77340
08/20/2010
100. Gross amount due from borrower:
101. Contract sales price
102. Personal property
103. Settlement charges to borrower (line 1400)
104.
105.
Proration Date: 08/20/2010
TIN: 742113306
107. Coun taxes
108. Assessments
109.
110.
111.
112.
120. Gross amount due from borrower.
400. Gross amount due to seller.
100,000.00 401. Contract sales price
402. Personal properly
165.00 403.
404.
405.
100,000.00
407. Coun
taxes
408. Assessments
409.
410.
411.
412.
100,165.00 420. Gross amount due to seller.
201. Deposit or eamest money
202. Principal amount of new loan(s
203.
204.
205.
206.
207.
208.
209.
Existing loan(s) taken subject to
1,000.00 501. Excess deposit (see instructions)
502. Settlement cha • s to seller (line 1400)
503. Existi loan(s) taken sub to
504. Pa off of first mortg . _ loan
505. Payoff of second mod • . •e loan
506.
607.
508.
509.
8,793.00
212. Assessments
213.
214.
215. 2010 Tax Proration 1/1/2010 to 8/20/2010
216.
217.
218.
219.
220. Total paid by/for borrower:
304,
301. Gross amount due from borrower (line 120)
302. Less amount paid by/for borrower (line 220)
303. CASH (X)FROM ()TO BORROWER
512. Assessments
513.
514.
1,365.74 515. 2010 Tax Proration 1/1/2010 to 8/20/2010
516.
517.
518.
519.
2,365.74 520. Total reduction in amount due seller:
1,365.74
10,158.74
100,165.00 601; Gross amount due to seller (line 420)
2,365.74 602. Less total reduction in amount due seller(line 520)
SUBSTITUTE FORM 1099 SELLER STATEMENT - The infonnaaon contained in Blocks E, 503.
, H and Land on Gne0401(or, 6 401 k asterisked, lines 403 and 404) 40e 407 and
89,841.26
408.412 (applicable pan of buyer's real estate tax reportable to the IRS) is important lax information and is being furnished to the Internal Revenue Service. If
return. a negligence penalty or other sanction will be imposed on you Nees item is required to be reported and the IRS determines that it has rot been reported.
SELLER INSTRUCTION - If this real you are required to file a
transactions, complete the applicable parts of form 4797. Form 6252 and /ore form u 2119. 0 For or 40). of Principal Residence. for any Hain, with your income lax return: for other
Schedule D (Form 1040).
You are required by law to provide Walker County Title Company (938) 295 -8173 with your correct taxpayer identification number
tl you do not provid leer Coun Title Company ( 936) 295-8173 with your correct taxpayer identification number. you may be sub ect to civil or criminal penalties.
100,000.00
10,158.74
Bancoular, North America
700. Total sales/broker commission 00.01G 0
based on : 51000 0
,000.00= Z4,800,�
Division of commission (line 700) as follows:
701. 51.800.00 to Keller Williams Realty
702. 53.000'00 to Keller Williams Realty
703. Commission paid at settlement 54,800.00
704.
705. RE Commission to STAR
Paid From
Borrowers
Funds at
Settlement
Paid From
Sellers
Funds at
Settlement
4,800.00
1,200.00
801. Loan •'.'nation fee
802. Loan discount
803. Appraisal fee
804. Credit report
806. Lender's inspection fee
806. Mon .a.e insurance ap• nation fee
807. Assumption fee
808.
809.
810.
811.
812.
901. Interest from
902. Mort insurance premium for
903. Hazard insurance premium for
904.
905. VA Funding Fee
1001. Hazard insurance
1002. Mort • . •e insurance
1003. City property taxes
1004. County . ope taxes
1005. Annual assessments (maint
1006.
1007.
1008.
1009. Aggregate Adjustment
1101. Settlement or closi . fee
1102. Abstract or title search
1103. Title examination
1104. Title insurance binder
1105. Document preparation
1106. Notary fees to Lb d C. Martin
1107. Attome s fees to
includes above items no.
1108. Title insurance to Walker Coun Title Company
includes above items no.:
1109. Lender's coverage
1110. Owner's covers •e 5100,000.00
1111. State Guaran Fee (Owner) 5843.00
1112. State Guaranty Fee (MTG)
1113. Escrow/Closi . Fee to Walker County Title Compan
1114. Tax Certificates
1115. Deliver Fee - Sale Proceeds
1116. Wire Fee (STAR Fees)
50.00
100.00
1201. Recordin. fees:..
Deed 515.00
1202. City/county tax/stamps:
1203. State tax/stamps:
1204.
1205.
1206.
1301. Su�
1302. Pest inspection
1303. SLS Curative Fee to Stewart Lender Services
1304. STAR Man = • ement Fee to STAR
1305.
1306. 2009 Property Taxes to Walker County Appraisal District
Total settlement char. es entered on lines 103, section J and 502, section K) POCS 2157.79
1,200.00
750.00
165.00
8,793.00
GF: 201007634
CERTIFICATION
1 have carefully reviewed the HUD -I Settlement Statement and to the best of my knowledge and
belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me
in this transaction. 1 further certify that I have received a copy of the HUD -1 Settlement Statement.
SELLERS:
Banco Popular, North America
PURCHASERS:
2'
City of Huntsville
To the best of my knowledge, the HUD-1 Settlement Statement which I have prepared is .a true and
accurate account of the funds which were received and have been or will be disbursed by the undersigned
as part of the settlement of this transaction.
Walker County Title Company
Sqf cment Pent
Date
WARNING: it is a crime to knowingly make false statements to the United States on this or any other
similar form. Penalties upon conviction can include a fine and imprisonment. For details, see: Title 18
U.S. Code Sections 1001 and 1010.
•
A. U.S. Department of Housing
and Urban Development
Settlement Statement
vMtf NO. 2 U2 -U2bb
B. Type of Loan
1. [ ] FHA 2. [ ] FMHA 3. [ ] Conv. Unins.
4. [ ] VA 5. [ ] Cony. Ins.
6. File Number
201007634
7. Loan Number
8. Mortgage Ins. Case No.
C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement
agent are shown. Items marked ( "POC ") were paid outside the closing: they are shown here for information
purposes and are not included in the totals.
D. Name of Borrower: City of Huntsville, 1212 Avenue M, Huntsville, TX 77340
E. Name of Seller: Banco Popular, North America, c/o Stewart REO Asset Solutions, 3402 W.
Cypress Street, Tampa, FL 33607
F. Name of Lender:
G. Property Location: Lot 9, Block 24, Highland, Section 3
2001 Normal Park, Huntsville, TX 77340
H. Settlement Agent: Walker County Title Company (936) 295 -8173 TIN: 742113306
Place of Settlement: 1109 University Avenue, Huntsville, TX 77340
I. Settlement Date: 08/20/2010 Proration Date: 08/20/2010
J. Summary of Borrower's Transaction
K. Summary of Seller's Transaction
100. Gross amount due from borrower:
400. Gross amount due to seller:
101. Contract sales price
100,000.00
401. Contract sales price
100,000.00
102. Personal property
402. Personal property
103. Settlement charges to borrower (line 1400)
165.00
403.
104.
404.
105.
405.
Adjustments for items paid by seller in advance:
Adjustments for items paid by seller in advance:
106. City/town taxes
406. City /town taxes
107. County taxes
407. County taxes
108. Assessments
408. Assessments
109.
409.
110.
410.
111.
411.
112.
412.
120. Gross amount due from borrower:
100,165.00
420. Gross amount due to seller:
100,000.00
200. Amounts paid by or in behalf of the borrower
500. Reduction in amount due to seller.
201. Deposit or earnest money
1,000.00
501. Excess deposit (see instructions)
202. Principal amount of new loan(s)
502. Settlement charges to seller (line 1400)
8,793.00
203. Existing loan(s) taken subject to
503. Existing loan(s) taken subject to
204.
504. Payoff of first mortgage loan
205.
505. Payoff of second mortgage loan
206.
506.
207.
507.
208.
508.
209.
509.
Adjustments for items unpaid by seller:
Adjustments for items unpaid by seller:
210. City/town taxes
510. City /town taxes
211. County taxes
511. County taxes
212. Assessments
512. Assessments
213.
513.
214.
514.
215. 2010 Tax Proration 1/1/2010 to 8/20/2010
1,365.74
515. 2010 Tax Proration 1/1/2010 to 8/20/2010
1,365.74
216.
516.
217.
517.
218.
518.
219.
519.
220. Total paid by /for borrower:
2,365.74
520. Total reduction in amount due seller:
10,158.74
300. Cash at settlement from /to borrower:
600. Cash at settlement toffrom seller.
301. Gross amount due from borrower (line 120)
100,165.00
601. Gross amount due to seller (line 420)
100,000.00
302. Less amount paid by /for borrower (line 220)
2,365.74
602. Less total reduction in amount due seller(line 520)
10,158.74
303. CASH (X)FROM ()TO BORROWER
97,799.26
603. CASH ()FROM (X)TO SELLER
89,841.26
SUBSTITUTE FORM 1099 SELLER STATEMENT - The information contained in Blocks E, G, H and I and on line 401 (or, if line 401 is asterisked, lines 403 and 404), 406, 407 and
408 -412 (applicable part of buyer's real estate tax reportable to the IRS) is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a
retum, a negligence penalty or other sanction will be imposed on you if this item is required to be reported and the IRS determines that it has not been reported.
SELLER INSTRUCTION - If this real estate was your principle residence, file form 2119, Sale or Exchange of Principal Residence, for any gain, with your income tax return; for other
transactions, complete the applicable parts of form 4797, Form 6252 and /or Schedule D (Form 1040).
You are required by law to provide Walker County Title Company (936) 295 -8173 with your correct taxpayer identification number.
If you do not provide Walker County Title Company (936) 295 -8173 with your correct taxpayer identification number, you may be subject to civil or cru nal penalties.
Banco Popular, North America
L. Settlement Charges 8/19/10 3:36 PM
File Number: 201007634
700.
Total sales /broker commission based on : $100,000.00= $4,800.00
Paid From
Paid From
Seller's
Funds at
Settlement
Division of commission (line 700) as follows:
Borrower's
701.
$1,800.00 to Keller Williams Realty
Funds at
702.
$3,000.00 to Keller Williams Realty
Settlement
703.
Commission paid at settlement $4,800.00
4,800.00
704.
705.
RE Commission to STAR
1,200.00
706.
800.
Items payable in connection with loan
801.
Loan origination fee
802.
Loan discount
803.
Appraisal fee
804.
Credit report
805.
Lender's inspection fee
806.
Mortgage insurance application fee
807.
Assumption fee
808.
809.
810.
811.
812.
900.
Items required by lender to be paid in advance
901.
Interest from
902.
Mortgage insurance premium for
903.
Hazard insurance premium for
904.
905.
VA Funding Fee
1000.
Reserves deposited with lender
1001.
Hazard insurance
1002.
Mortgage insurance
1003.
City property taxes
1004.
County property taxes
1005.
Annual assessments (maint.)
1006.
1007.
1008.
1009.
Aggregate Adjustment
1100.
Title charges
1101.
Settlement or closing fee
1102.
Abstract or title search
1103.
Title examination
1104.
Title insurance binder
1105.
Document preparation to Lloyd C. Martin
50.00
1106.
Notary fees
1107.
Attorney's fees to
includes above items no.:
1108.
Title insurance to Walker County Title Company
843.00
includes above items no.:
1109.
Lender's coverage
1110.
Owner's coverage $100,000.00 $843.00
1111.
State Guaranty Fee (Owner)
1112.
State Guaranty Fee (MTG)
1113.
Escrow /Closing Fee to Walker County Title Company
100.00
1114.
Tax Certificates
1115.
Delivery Fee - Sale Proceeds
1116.
Wire Fee (STAR Fees)
1200.
Government recording and transfer charges
1201.
Recording fees: Deed $15.00
15.00
1202.
City /county tax/stamps:
1203.
State tax/stamps:
1204.
1205.
1206.
1300.
Additional settlement charges
1301.
Survey
1302.
Pest inspection
1303.
SLS Curative Fee to Stewart Lender Services
1,200.00
1304.
STAR Management Fee to STAR
750.00
1305.
1306.
2009 Property Taxes to Walker County Appraisal District
POCS 2157.79
1400.
Total settlement charges (entered on lines 103, section J and 502, section K)
165.00
8,793.00
GF: 201007634
CERTIFICATION
I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and
belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me
in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement.
SELLERS:
Banco Popular, North America
PURCHASERS:
City of Huntsville
To the best of my knowledge, the HUD -1 Settlement Statement which I have prepared is a true and
accurate account of the funds which were received and have been or will be disbursed by the undersigned
as part of the settlement of this transaction.
Walker County Title Company
Settles -nt Age nf/ Date
WARNING: It is a crime to knowingly make false statements to the United States on this or any other
similar form. Penalties upon conviction can include a fine and imprisonment. For details, see: Title 18
U.S. Code Sections 1001 and 1010.
SUBJECT PROPERTY:
SELLER'S REFERENCE:
BUYER:
DATE OF CLOSING:
Stewart asset recovery
Phone: 949/224 -8611
Email: cdelgado @stewart.com
FINAL UTILITY AND HOA
TRANSFER AGREEMENT
2001 Norman Park Rd Huntsville TX 77340
6080817307
City of Huntsville
8/20/10
As a condition of the Closing, Buyer(s) hereby agrees to have all utility services including watr, sewer, electricity, gas
and Home Owners Association dues, if applicable, transferred into Buyer's name no later than the first business day
following closing. Buyer(s) also agrees to accept responsibility for payment of any utility charges accrued afar the date of
closing. All or some of the utility services are in the name of the Seller, Stewart Asset Recovery or the Listing Broker. It is
the Buyer's sole and absolute responsibility to make any arrangements necessary for the transfer of utilities and
associations into their name.
As a condition of closing, the listing and selling agent(s) agree to verify that this transfer agreement has taken
place as agreed upon by the buyer(s).
Buyer
Date
Selling Broker Date
Listing Broker Date
As a condition of closing, the Buyer(s) must sign and date this Agreement acknowledging that it will be retained
as a Closing Document, and shall survive closing.
Witness:
CI sing ent Date
Print Nime
THIS AGREEMENT SHALL SURVIVE CLOSING
REO Closing Instructions (Revised 03/10)
For use exclusively by Stewart Asset Recovery employees and approved associates
CF#: 201007634
Closing Date: S/20/201
Seller: Banco Popular. North America
Buyer: City of Huntsville
t ?oal- Lot 9. Block 24. Highland. Cec?i
CLOSER: Judy Thornton
WALKER COUNTY TITLE COMPANY
1 109 University Avenue
i iuuis. iiie, TCxiLS 77340
Gentlemen:
This is to confirm that Judy Thornton is the closer on the above referenced transaction and that the
undersigned were made aware of the fact that said Closer is not an attorney. Said closer did not discuss,
nor explain, nor interpret any of the legal documentation for any of the closing.
Closer merely presented documentation to the undersigned for all signatures and made no representations
to the effect of said legal documentation or other documents used in connection with said closing. Closer
made no representation concerning city or governmental zoning or use ordinances, statutes or regulations
and made no statements or representation concerning the merchantability of the property or fitness for
any contemplated use by the Buyer.
Buyer acknowledges Closer did not make any comments, statements, explanations or representations
concerning arbitration or any arbitration provisions of the title policy(ies).
The Buyer and Seller acknowledge that any survey, Wood Destroying Insect Report (or like report)
and/or Property Condition/Inspection Report have been ordered by persons other than Closer or any
representative and/or employee of Walker County Title Company and that Closer has made no
statements, interpretations and /or representation conceming the survey, Wood Destroying Insect Report
(or similar report) and /or Property Condition/Inspection Report furnished for this transaction.
SELLERS:
Banco Popular,
PURCHASERS:
City of Huntsville
GF #: 201007634
Closing Date: 8/20/2010
Seller: Banco Popular, North America
Buyer: City of Huntsville
Legal: Lot 9, Block 24, Highland, Section 3
CLOSER: Judy Thornton
WALKER COUNTY TITLE COMPANY
1109 University Avenue
Huntsville, Texas 77340
Gentlemen:
This is to confirm that Judy Thornton is the closer on the above referenced transaction and that the
undersigned were made aware of the fact that said Closer is not an attorney. Said closer did not discuss,
nor explain, nor interpret any of the legal documentation for any of the closing.
Closer merely presented documentation to the undersigned for all signatures and made no representations
to the effect of said legal documentation or other documents used in connection with said closing. Closer
made no representation concerning city or governmental zoning or use ordinances, statutes or regulations
and made no statements or representation concerning the merchantability of the property or fitness for
any contemplated use by the Buyer.
Buyer acknowledges Closer did not make any comments, statements, explanations or representations
concerning arbitration or any arbitration provisions of the title policy(ies).
The Buyer and Seller acknowledge that any survey, Wood Destroying Insect Report (or like report)
and /or Property Condition /Inspection Report have been ordered by persons other than Closer or any
representative and /or employee of Walker County Title Company and that Closer has made no
statements, interpretations and /or representation concerning the survey, Wood Destroying Insect Report
(or similar report) and /or Property Condition/Inspection Report furnished for this transaction.
SELLERS:
Banco Popular, North America
PURCHASERS:
City of Huntsville
TAX PRORATION AGREEMENT
To: Walker County Title Company
RE: GF No. 201007634
Date. August 24, 2019
Property: Lot 9, Block 24, Highland, Section 3
This indicates our understandin.e of the handling of the property taxes in the above referenced transaction. Since
the property :axes for t!,._ c!t rent near cannot be determined ;-ti iiiis citric, c,ivrm credit tor
seller(s) share of the current year's taxes, in consideration of which purchaser will pay the full tax for the
year when taxes are due. This amount is based on an estimate only, since current figures are not yet available.
The nurchaser(s) are also aware that when they receive the r recorded deed. they must take a copy to the
Central Appraisal District in order to have the taxes changed into their name and file for any exemptions
which apply.
NOTICE: If for the current ad valorem tax year the taxable value of the land that is the subject of this
transaction is determined by a special appraisal method that allows for appraisal of the land at less than
its market value, the person to whom the land is transferred may not be allowed to qualify the land for
that special appraisal in a subsequent tax year and the land may then be appraised at full market value.
In addition, the transfer of the land or a subsequent change in the use of the land may result in the
imposition of an additional tax plus interest as penalty for the transfer or change in the use of the land.
The taxable value of the land and the applicable method of the appraisal for the current tax year is public
information and may be obtained from the tax appraisal district established for the county in which the
land is located.
However, if the actual tax assessment exceeds the estimated amount prorated at closing, seller(s) agree to
immediately reimburse the purchaser(s) the additional sum owed for the period from January 1 up to the closing
date. Should the actual tax assessments be less than the estimated amount prorated at closing, purchaser(s)
agree to immediately reimburse the seller(s) the excess amount prorated and credited at closing.
All parties understand that Walker County Title Company will not be responsible for, nor will they be
involved in, this tax proration settlement. It is agreed that seller(s) and purchaser(s) will contact each other
directly, and the refund will be paid immediately upon written notification (with supporting documentation)
from the other party that same is due.
SELLER S :
Banco opular, North America
PURCHASER(S):
City of Huntsville
To:
RE:
Date:
Property:
TAX PRORATION AGREEMENT
Walker County Title Company
GF No. 201007634
August 20, 2010
Lot 9, Block 24, Highland, Section 3
This indicates our understanding of the handling of the property taxes in the above referenced transaction. Since
the property taxes for the current year cannot be determined at this time, the purchaser(s) will be given credit for
seller(s) share of the current year's taxes, in consideration of which purchaser will pay the full tax for the
year when taxes are due. This amount is based on an estimate only, since current figures are not yet available.
The purchaser(s) are also aware that when they receive their recorded deed, they must take a copy to the
Central Appraisal District in order to have the taxes changed into their name and file for any exemptions
which apply.
NOTICE: If for the current ad valorem tax year the taxable value of the land that is the subject of this
transaction is determined by a special appraisal method that allows for appraisal of the land at less than
its market value, the person to whom the land is transferred may not be allowed to qualify the land for
that special appraisal in a subsequent tax year and the land may then be appraised at full market value.
In addition, the transfer of the land or a subsequent change in the use of the land may result in the
imposition of an additional tax plus interest as penalty for the transfer or change in the use of the land.
The taxable value of the land and the applicable method of the appraisal for the current tax year is public
information and may be obtained from the tax appraisal district established for the county in which the
land is located.
However, if the actual tax assessment exceeds the estimated amount prorated at closing, seller(s) agree to
immediately reimburse the purchaser(s) the additional sum owed for the period from January 1 up to the closing
date. Should the actual tax assessments be less than the estimated amount prorated at closing, purchaser(s)
agree to immediately reimburse the seller(s) the excess amount prorated and credited at closing.
All parties understand that Walker County Title Company will not be responsible for, nor will they be
involved in, this tax proration settlement. It is agreed that seller(s) and purchaser(s) will contact each other
directly, and the refund will be paid immediately upon written notification (with supporting documentation)
from the other party that same is due.
SELLER(S):
Banco Popular, North America
PURCHASER(S):
City of Huntsville
TO BE FILLED IN PERSONALLY
RY SELLER OR BORROWER IN IIIS OWN HANDWRITING
INDEmvoTig ^•Irt .,camn�'' a't TO DEBTS, LIENS AND POSSESSION
USE SEPARATE FORM FOR EAi;M1
File N'umbcr: 201007634
SUBJECT PROPERTY: Lot 9, Block 24, Highland, Section 3
STATE OF Texas
CUUN t Y U!• Walker
Before me, the undersiened anthoriry on this day personally appeared Banco Popul :hr, North America
Seller or Owner - Bonower• or Contractor (if new construction)
personally known to me to he the ,ercon whnce name is cttbccrhed here!r• and ... d :p� and. -
;, c that
bankruptcy or receivership have been instituted by or against him and that the n,..r;,al ,status of affiant has not changed since the day of
aronisition of said property and represents to the pu. i:`,.._ r r -. arrr Lender in this transaction that there are.
No unpaid debts for plumbing fixtures, water heaters, tloor
lawn sprinkling systems, venetian blinds, window shades,
Property or fixtures that propert•
payment contracts. and there are no security_ interests on
otherwise except the following:
Secured Party
furnaces, air conditioners, radio or television antennae, carpeting, rugs,
draperies, electric appliances, fences, street paving, or any personal
described show:, and that no dud, r n ;iac; hoco pui.cli a
such property secured by financing statement, security agreement or
Approximate Amount
2. No loans or hens (including Federal or State Liens and Judgment Liens) and no unpaid govemmental or association taxes or
assessments of any kind on such property except the following:
Creditor Approximate Amount
.411 labor and material used in the construction of improvements on the above described property have been paid for and there are
now no unpaid labor or material claims against the improvements or the property upon which same are situated, and l hereby
declare that all sums of money due for the erection of improvements have been fully paid and satisfied.
s No parties are in possession other than affiant, except as follows:
*To be filled in if a sale' -- The Seller is not a non - resident alien, foreign corporation, foreign partnership, foreign trust, foreign
estate or other foreign entity (as defined in the Internal Revenue Code and Income Tax Regulations). Seller's U.S. employer
identification number (or social security number) is: S) -.2 - Seller's address (office addres }, if seller is an
en; home address if seller is an individual) is: 476 Cti £ .4V49• t it + Sic Wt
3 '. , /.Errs , '411511,
7k , f;��J. This affidavit may be disclo to the Internal Revenue Service and is fiimished to Buyer to
inform Buyer that withholding of tax is not required under Section 1445 of the Internal Revenue Code.
INDEMNITY: 1 AGREE TO PAY ON DEMAND TO THE PURCHASERS AND/OR LENDER IN THIS TRANSACTION, THEIR SUCCESSORS AND
ASSIGNS, ALL AMOUNTS SECURED BY ANY AND ALL LIENS NOT SHOWN ABOVE, TOGETHER WITH ALL COSTS, LOSS AND ATTORNEY'S
FEES THAT SAID PARTIES MAY INCUR IN CONNECTION WITH SUCH UNMENTIONED LIENS, PROVIDED SAID LIENS ErrHER CURRENTLY
APPLY TO SUCH PROPERTY, OR A PART THEREOF, OR ARE SUBSEQUENTLY ESTABLISHED AGAINST SAID PROPERTY AND ARE CREATED
BY ME, KNOWN BY ME, OR HAVE AN INCEPTION DATE PRIOR TO THE CONSUMMATION OF THIS TRANSACTION.
1 realize that the purchaser and/or Lender in this transaction are relying on the representations contained herein in purchasing same
or lending money thereon and would not purchase same or lend money thereon unless said representations were made. If Seller or
Borrower is an entity, I have authority to sign on its behalf.
Banco Popular, No t ca
Sworn to and subscribed before me thi
*Note: This form is to be filled in and signed by seller in case of sale. If no sale, it is to be filled in and signed by the owner - borrower. If there is any new
construction, the contractor must also join in this form or fill in and sign a separate one
•If seller is a non - resident alien, foreign corporation, etc., call your manager or Legal Department.
NOTE TO BUYER: Buyer must retain until end of fifth taxable year following taxable year of transfer and must file with the Internal Revenue Service if required by
regulation or otherwise.
Revised 9 -92
WAIVER OF INSPECTION AND DISCLOSURE TO OWNER
TO: Stewart Title Guaranty Company ( "Title Insurer ")
Walker County Title Company ( "The Company ")
RE: Banco Popular, North America to City of Huntsville
File Number: GF 201007634
Land: Lot 9. Block 24, Highland. Section 3
1. Waiver of Inspection
You may refuse to accept an exception to the Owner's Policy for "Rights of Parties in Possession." "Rights of Parties in
Possession" shall mean one or more persons or entities who are themselves actually physically occupying the property or a
portion thereof under a claim or right adverse to the insured owner of the property as shown in Schedule A of the Policy.
The Company may require an inspection of the property and an additional charge may be assessed for reasonable and actual
costs of such an inspection. The Company may make additional Exceptions for matters the inspection reveals. If you do
not delete this paragraph, you consent to this Exception and waive inspection of the land.
YOU MAY REFUSE TO ACCEPT THIS EXCEPTION BY MARKING OUT THIS PARAGRAPH 1.
2. Receipt of Commitment
You acknowledge having received and reviewed a copy of the Title Commitment issued in connection with this transaction.
You understand that your Owner Policy will contain the Exceptions set forth in Schedule B of the Commitment, and any
additional Exceptions to title resulting from the documents involved in this transaction, and any additional Exceptions
reflected by an exhibit attached hereto.
3. Survey
You may request amendment of the "Area and Boundary Exception" to read "Shortages in Area." The Area and Boundary
Exceptions is as follows: "Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments, or
protrusions, or any overlapping of improvements." You must furnish a current survey. The survey must be acceptable to
the Company. You also must pay an additional premium equal to 15% of the basic premium charge. The Company may
make additional exceptions for items shown on the survey.
YOU MAY REQUIRE AMENDMENT OF THE AREA AND BOUNDARY EXCEPTION BY MARKING OUT THIS
PARAGRAPH 3. AND BY COMPLYING WITH ITS PROVISIONS BEFORE COMPLETION OF THIS CLOSING.
4. Arbitration
This paragraph does not apply to the Residential Owner Policy (T -1R). The parties must later agree to arbitrate under the
Residential Owner Policy (T -1 R).
You may require deletion of the arbitration provision of the Owner Policy. If you do not delete this provision, either you or
the Company may require arbitration, if the law allows. There is no charge to delete this provision.
IF YOUR POLICY IS NOT A TEXAS RESIDENTIAL OWNER POLICY (T -1R), YOU MAY REQUIRE DELETION
OF THE ARBITRATION PROVISION BY MARKING OUT THIS PARAGRAPH 4.
5. Notice
You may wish to consult an attorney to discuss matters shown in Schedule B or C of the Commitment. These matters will
affect your title and use of your land. Your Title Insurance Policy will be a legal contract between you and the Titled
Insurer. The Commitment and Policy are not abstracts of title, title reports or representations of title. They are contracts of
indemnity. We do not represent that your intended use of the property is allowed under the law or under the restrictions or
exceptions affecting your property.
Date: August 20, 2010
Signature:
City of Huntsville
TAX NOTICE TO BUYER
It is your responsibility under Texas Law to RENDER your
newly - purchased property to the proper taxing authorities.
Therefore, when you receive your recorded Deed from Walker
County Title Company, you should contact the appropriate
taxing entity and render your property immediately.
3OR Walker County properties
K. properties
Contact:
Walker County Appraisal District
P. O. Box 1798
\\ Huntsville, Texas 77342 -1798
Phone: 936- 295 -0402
Buyer
Date
FOR San Jacinto C
Contact:
Sa
P. O
County Appraisal District
170
C. dspring, ' -xas 77331
'hone: 936 -65 ' -1450
Buyer
Date
GF: 201201084
CERTIFICATION
I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and
belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me
in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement.
SELLERS:
PURCHASERS:
City of Huntsvile
,e:t..17 r
To the best of my knowledge, the HUD -1 Settlement Statement which I have prepared is a true and
accurate account of the funds which were received and have been or will be disbursed by the undersigned
as part of the settlement of this transaction.
Walker County Title Company
Settle, ent Age
WARNING: It is a crime to knowingly make false statements to the United States on this or any other
similar form. Penalties upon conviction can include a fine and imprisonment. For details, see: Title 18
U.S. Code Sections 1001 and 1010.
GF #: 201201084
Closing Date: 4/12/2012
Seller:
Buyer: City of Huntsvile
Legal: Lot 9, Block 24, Highland Addition, Section 3
CLOSER: Judy Thornton
WALKER COUNTY TITLE COMPANY
1109 University Avenue
Huntsville, Texas 77340
Gentlemen:
This is to confirm that Judy Thornton is the closer on the above referenced transaction and that the
undersigned were made aware of the fact that said Closer is not an attorney. Said closer did not discuss,
nor explain, nor interpret any of the legal documentation for any of the closing.
Closer merely presented documentation to the undersigned for all signatures and made no representations
to the effect of said legal documentation or other documents used in connection with said closing. Closer
made no representation concerning city or governmental zoning or use ordinances, statutes or regulations
and made no statements or representation concerning the merchantability of the property or fitness for
any contemplated use by the Buyer.
Buyer acknowledges Closer did not make any comments, statements, explanations or representations
concerning arbitration or any arbitration provisions of the title policy(ies).
The Buyer and Seller acknowledge that any survey, Wood Destroying Insect Report (or like report)
and /or Property Condition/Inspection Report have been ordered by persons other than Closer or any
representative and/or employee of Walker County Title Company and that Closer has made no
statements, interpretations and /or representation concerning the survey, Wood Destroying Insect Report
(or similar report) and/or Property Condition/Inspection Report furnished for this transaction.
SELLERS:
‘,c7 /119dieret.._
PURCHASERS:
City of Huntsvile
EXHIBIT D
AFFIDAVIT OF COMPLETION
For reconstruction, new construction, and Rehabilitation
Property Code § 53.106
THE STATE OF TEXAS
COUNTY OF WALKER
Owner: CITY OF HUNTSVILLE, a political subdivision of the State of Texas
Owner's Address: 1212 Avenue M, Huntsville, Walker County, Texas 77340
Contractor: CITY OF HUNTSVILLE, a political subdivision of the State of Texas
Contractor's Address: 1212 Avenue M, Huntsville, Walker County, Texas 77340
Lender: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS,
a public and official agency of the State of Texas
Lender's Address: 221 E. 11t Street, P.O. Box 13941, Austin, Texas 78711 -3941
Loan: Evidenced by a Promissory Note payable to Lender dated 2011,
in the original principal sum of $106,797.65.
The Loan is secured by the Interim Construction Deed of Trust recorded in the Real Property
Records of Walker County, Texas.
Legal Description of Lot(s): LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND
ADDITION No. 3, a subdivision within the City of Huntsville, P. Gray League, A -24, Walker
County, Texas according to the map or plat thereof recorded in Volume 1 Page 6 of the Plat
Records, Walker County, Texas.
which has the street address of 2001 Normal Park Drive, Huntsville, Walker County, Texas 77340
Improvements: Acquisition and Rehabilitation of a single - family residence and related
improvements on the Lot(s) described above.
The persons or entities signing this affidavit have been duly sworn. Under oath, they swear
the following information is true:
1. Description of Transaction. Owner borrowed money from Lender to construct the
Improvements. Owner and Lender have executed a Construction Loan Agreement in
connection with the Loan. Lender would not have made the Loan without Owner's
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agreement to sign this Affidavit. The signatures on this Affidavit are genuine and the
persons or entities named have authority to sign this Affidavit.
2. Date of Completion Owner and Contractor state that the Improvements were
completed according to the plans and specifications (as and if modified) on
. For purposes of this Affidavit, "completion" means the
actual completion of the work, including any extras or change orders reasonably required or
contemplated under the original plans, other than warranty or repair work.
3. Notice. ANY SUBCONTRACTOR OR OTHER LIEN CLAIMANT MAY NOT
HAVE A LIEN ON RETAINED FUNDS UNLESS THE CLAIMANT FILES AN
AFFIDAVIT CLAIMING A LIEN NO LATER THAN THE 30TH DAY AFTER THE
DATE OF COMPLETION.
4. Contractor's and Owner's Statement as to Debts or Liens (Property Code § 53.085).
Contractor and Owner state that all of the funds that Lender has advanced under the
Construction Loan Agreement before the date of this Affidavit have been used to pay for the
labor and materials which have created the Improvements. Contractor and Owner state that
there are no disputes with, or debts owed to, any mechanics, materialman, or subcontractors
for the labor or materials furnished. There are no security interests or liens encumbering the
Lot(s) other than those created in favor of Lender. Contractor and Owner have not received
notice that any lien claimant has filed or intends to file a lien against the Lot(s). The only
exceptions to this paragraph are:
Existing Creditor or Lienholder
Approximate Amount
1.
$
2.
$
3.
$
5. Owner's Statement as to Other Notices. Owner states that he or she has received a
written request to receive a copy of an affidavit of completion from the following persons
who have furnished labor or materials for the Lot(s), and from no other persons:
Persons Requesting Copy of Affidavit of Completion:
6. Funds Disbursed. All of the funds available under the Loan to improve the Lot(s)
have been disbursed by Lender to Contractor except for the retainage which is being
withheld according to the Texas Property Code. The amount of the retainage is defined in
the Construction Loan Agreement.
7. Retainage. The retainage will be disbursed according to the following conditions. If
the Lot(s) is located within the jurisdiction of a governmental entity which has authority to
issue a Certificate of Occupancy, or other similar certificate, then the retainage will be
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disbursed thirty -one days after the following events: (i) completion of the Improvements
and acceptance by Lender; (ii) a Certificate of Occupancy, or other similar certificate, has
been issued; (iii) this Affidavit has been signed; (iv) this Affidavit has been filed in the Real
Property Records of the county where the Lot(s) is located; and (v) Owner and Contractor
have complied with all of the provisions of the Construction Loan Agreement. If the Lot(s)
is not located within the jurisdiction of a governmental entity which has authority to issue a
Certificate of Occupancy, or other similar certificate, then the retainage will be disbursed
thirty-one days after the following events: (i) completion of the Improvements and
acceptance by Lender; (ii) this Affidavit has been signed; (iii) this Affidavit has been filed in
the Real Property Records of the county where the Lot(s) is located; and (iv) Owner and
Contractor have complied with all of the provisions of the Construction Loan Agreement.
Notwithstanding any statement in this paragraph to the contrary, the retainage will not be
disbursed if any liens have been filed against the Lot(s) in the Real Property Records of the
county where the Lot(s) is located. If Owner elects not to retain funds for thirty days,
Owner shall do so at the sole risk of Owner.
8. Release. Owner and Contractor have made a final inspection of the Lot(s) and
hereby release and forever discharge Lender from any and all claims and actions which the
Owner or Contractor have or may have arising from or based upon (1) the Loan or (2) the
construction of the Improvements now located on the Lot(s) or (3) any express or implied
warranties relating to the Improvements, including any implied warranties of
merchantability, habitability or fitness for a particular purpose.
9. Bankruptcy. There is no pending bankruptcy proceeding naming Contractor or
Owner as a party. Neither Contractor nor Owner has made any assignment for the benefit of
creditors. Owner and Contractor acknowledge that bankruptcy of the persons or entities that
sign this Affidavit will not discharge any liability owed to Lender which arises out of false
statements made in this Affidavit.
10. Liability for False Statements. Owner and Contractor will be liable to Lender and
other persons relying on this Affidavit for (i) payment of any debts or liens not disclosed in
this Affidavit, and (ii) attorney's fees and expenses incurred to enforce the liability described
in (i).
11. Signatures. If Contractor is a partnership, joint venture, or corporation, then the
person signing this Affidavit on behalf of Contractor is signing both in his or her individual
capacity and as partner, venturer, or officer of Contractor.
This Affidavit is being filed in compliance with Property Code section 53.106.
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EXECUTED on this o' day of
THE STATE OF TE S §
§
COUNTY OF a,e Q, '��-, �V
,20 // .
OWNER/CONTRACTOR:
CITY OF HUNTSVILLE, a political subdivision
of the State of Texas
By
Name: Bill Baine
Title: City Manager
SWORN TO, SUBSCRIBED AND ACKNOWLEDGED before me on this 6 day of
, 2011, by Bill Baine, City Manager of CITY OF HUNTS " LLE,
a political subdivision of the State of Texas, acting on behalf of said political subdivision and in
the capacity herein stated.
ac,t_
ublic - tate of Texas
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EXHIBIT E
WAIVER AND SUBORDINATION OF
MECHANIC'S LIEN CLAIMS
Property Code § 53.085
THE STATE OF TEXAS §
COUNTY OF WALKER §
The undersigned (hereinafter referred to as "Affiant ") is an original contractor or
subcontractor who has furnished labor or material in the construction of the improvements (the
"Work ") upon real property owned by CITY OF HUNTSVILLE, a political subdivision of the
State of Texas (whether one or more, "Owner ") being LOT NINE (9), BLOCK TWENTY -FOUR
(24) of HIGHLAND ADDITION No. 3, a subdivision within the City of Huntsville, P. Gray
League, A -24, Walker County, Texas according to the map or plat thereof recorded in Volume 1
Page 6 of the Plat Records, Walker County, Texas, with a property address of:
2001 Normal Park Drive, Huntsville, Walker County, Texas 77340.
The total charges, excepting any retainage not yet due and payable, for and in connection with labor
performed and material furnished by Affiant through August 31, 2011 (the "Completion Date ")
have been paid in full to Affiant. Affiant acknowledges complete satisfaction of, and forever
WAIVES AND RELEASES, all claims of every kind against Owner or the property referred to
above, including but not limited to all liens and claims of liens, which Affiant may have as a result
of or in connection with the performance or furnishing of such labor or material. The Work under
the original contract between the Owner and the original contractor has been completed within the
meaning of Section §53.106 of the Texas Property Code, as of the Completion Date.
Affiant has further represented and warranted and does hereby represent and warrant that all
persons or entities who have furnished labor or material to Affiant in connection with the Work
performed through the Completion Date have been paid all amounts to which they have become
entitled, excepting agreed retainage not yet due and payable and excepting only the amounts owed
for the following specified bills to the persons identified below.
Name of Payee
Address
Telephone No.
Amount Owed
1.
2.
3.
4.
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Affiant hereby agrees unconditionally to INDEMNIFY Owner and hold Owner harmless
against all liability, loss, cost or expense (including but not limited to attorneys fees) now or
hereafter incurred, paid or suffered by or asserted against Owner or any of Owner's property
because of any claim or action by Affiant, or by any person or entity claiming by, through or under
Affiant, with respect to the claims, liens and rights herein waived and released or arising out of any
breach or untruth of any representation herein made.
In consideration of its funding of loan proceeds to be used to pay for labor and material
furnished by Affiant, Affiant hereby agrees and acknowledges for the benefit of the Texas
Department of Housing and Community Affairs ( "Department ") that all mechanic's liens or rights to
the same now or hereafter owned or held by Affiant are and shall be subordinate and inferior to the
lien of the deed of trust held by Department on the Property.
Affiant makes these representations with knowledge and awareness of Section 53.026 of
the Texas Property Code, pertaining to sham contracts, false statements, and interdependent
contractual relationships in construction projects.
The person signing this document represents that he or she is duly authorized to do so on
behalf of Affiant, original contractor or subcontractor.
All of the provisions of this document shall bind the Affiant original contractor or
subcontractor and Affiant's heirs, legal representatives, successors and assigns and shall inure to the
benefit of Owner and Owner's heirs, legal representatives, successors, assigns and sureties.
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EXECUTED on this day of , 2011 .
THE STATE OF TEXAS
COUNTY OF
AFFIANT:
Texas
By:
Name:
Title:
This instrument was acknowledged before me on this day of , 20_ by
of
, a Texas , on behalf of said
(Seal)
Notary Public, State of Texas
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EXHIBIT F
RESOLUTION CERTIFICATE
I, the undersigned, Officer of City of Huntsville, a political subdivision of the State of
Texas (the "Corporation "), hereby certify that I have custody of the City's Resolution No. 2009-
04 of the City of Huntsville, and am authorized to execute and deliver this certificate on behalf
of the City, hold the office designated by the undersigned name below, and further certify to the
following:
1. Attached hereto as Addendum 1 is a full, true and correct copy of
the Resolution duly adopted by the City Council, approved by the mayor, passed
at a meeting of said City, duly and legally called in conformity with the
Resolution and in accordance with applicable laws held on the 7th day of April,
2009, a quorum thereof being present and voting unanimously for the adoption of
said Resolution and that said Resolution is in fullforce and effect as of the date of
this certification.
2. The Resolution attached hereto as Addendum 1 have not been
amended, modified or rescinded and are in full force and effect on the date hereof.
3. There is no provision of the corporate records, charter, bylaws, or
articles of incorporation of the City limiting the above - described Resolution, and
said Resolution is in conformity with the provisions of the City Council.
4. The following person has been elected to the position set forth
opposite person's respective name and is qualified to act in such capacities:
City Manager Bill Baine
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4
EXECUTED this t// day of
THE STATE OF TEXAS
COUNTY OF CUL §
By:
, 2011.
Bill Baine, City Manager
This instrument was acknowledged before me on this '' day of
by Bill Baine, _ " -- ville, a political subdivision
acting on beha , 3 ,...,�1 pol�iattit Hion and in the c. e : ity herein s
-; • I MY COMMISSION EXPIRES
August 14, 2014 .n�'_
(Seal)
wexiiiteslersonstrir
Notary
, 2011,
the State of Texas,
to of Texas
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ADDENDUM 1
RESOLUTIONS
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RESOLUTION NO.2009 -04
•A RESOLUTION OF THE CITY COUNCIL OF THE • CITY OF HUNTSVILLE, TEXAS,
AUTI•IORIZING THE SUBMISSION OF A. NEIGHBORHOOD STABILIZATION PROGRAM
(NSF) .GRANT APPLICATION TO THE TEXAS DEPARTMENT 'OF COMMUNITY AND
HOUSING AFFAIRS (T ECA) FOR THE . HUNTSVILLE NEIGHBORHOOD
STABILIZATION PROJECT; .AND AUTHORIZING THE CITY MANAGER TO ACT AS THE
,CITY'S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL
MATTERS PERTAINING TO THE -CITY% :PARTICIPATION IN THE NEIGHBORHOOD.
STABILIZATION GRANT PROGRAM,
WHER,EA•S
WHEREAS
• Blight is a problem' for Huntsville as is affordable housing for low - income residents. This
award will allow for the removal of blighted structures and provide new homes for low -
incorne:residents; and
It is necessary and in the best interest .of the City to apply for funding under the 2009
Neighborhood Stabilization Orant.Program.
NOW, TI•I:EREFORE, belt resolved by .the City Council of the•City of:Huntsville, Texas, that: , •
Section 1: An application is hereby authorized .to be filed on behalf of the City and be placed in
competition for funding under the. Neighborhood Stabilization Grant Program.
Section 2: The application will be 'for $1.,000,0 :00 of grant Minds to implement the .Neighborhood
Stabilization Project.
Section 3: It is understood that the NSP :is a•reimbursement program.
Section 4: • The Mayor and City Council :strongly•support this application to address:the blight removal
and low- income housing production for the City and residents of Huntsville.
Section 5: The City Council directs .and .designates the City Manager, Bill Baine, as the City's Chief
Executive Officer and Authorized Representative to act in all matters in connection with this application
and the City's participation in the Neighborhood Stabilization Grant.Program.
PASSED AND APPROVED.this 7th•day of April, 2009.
• ATTEST:
-Btephenie- Brim, City Secretary
•.pNN $nil' .•
• APPROVED AS TO J ORM:.
Schneider, Interim City' Attorney
FB1 NTSVILLE, TEXAS
•J. Turner, Mayor .
CONSTRUCTION LOAN AGREEMENT
( "Loan Agreement ")
NEIGHBORHOOD STABILIZATION PROGRAM
Awarding Federal Agency: United States Department of Housing and Urban
Development ( "HUD ")
TDHCA Federal Award Number: B- 08 -DN -48 -0001
Federal Award Year (Year of Award from HUD to TDHCA): 2008
TDHCA Award Year (Year of TDHCA Board Approval): 2009
THIS Neighborhood St.i .tion Program ( "NSP ") CONSTRUCTION LOAN AGREEMENT
dated this rp day of 1 11 is made by and between the TEXAS DEPARTMENT OF
HOUSING AND CO ►'UNITY AFFAIRS, a public and official agency of the State of Texas
( "Lender "), whose address is 221 E. 11th Street., P.O. Box 13941, Austin, Travis County, Texas
78711 -3941, and CITY OF HUNTSVILLE, a political subdivision of the State of Texas
( "Borrower), whose address is 1212 Avenue M, Huntsville, Walker County, Texas 77340, in
connection with a loan in the original principal sum of One Hundred Six Thousand Seven Hundred
Ninety -Seven and 65/100 Dollars $106,797.65, of which One Hundred Thousand and 00 /100
Dollars $100,000.00 is for reimbursement of acquisition for the said Lot as described herein and Six
Thousand Seven Hundred Ninety -Seven and 65/100 Dollars $6,797.65 is for construction costs.
GENERAL
Borrower is engaged in the business of construction, which includes rehabilitation and new
construction, under NSP and the sale of single - family residences on certain lot(s) located in Walker
County, Texas. The Loan that is the subject of this NSP Loan Agreement is to be used by Borrower
to finance the acquisition and construction of a single - family residence, in accordance with the
Neighborhood Stabilization Program Contract (as defined herein) for the single - family dwelling to
be constructed or rehabilitated, as those terms are hereinafter defined.
ARTICLE 1 - DEFINITIONS
For purposes of this Loan Agreement, the following terms shall have the respective
meanings assigned to them.
1.1 Advance. The terms "Advance" or "Advances" shall mean a disbursement by
Lender of any of the proceeds of the Note and /or the Borrower's Deposit (defined herein) based
on an interim inspection supported by appropriate documentation as to be determined by Lender.
1.2 Affidavit of Borrower. The term "Affidavit of Borrower" shall mean a sworn
affidavit of Borrower (and such other parties as Lender may require) to the effect that all statements,
invoices, bills, and other expenses incident to construction of Improvements incurred to a specified
date, whether or not specified in the Approved Budget for such Improvements, have been paid in
full, except for (a) amounts retained pursuant to the Construction Contract, if applicable and (b)
items to be paid from the proceeds of an Advance then being requested or in another manner
satisfactory to Lender.
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1.3 Application for Advance. The term "Application for Advance" shall mean a
written commercial draw request through the Lender's Housing Contract System, including all
supporting documentation required to correspond and substantiate the expense. Said application,
in the form attached hereto as Exhibit B, (or on such other form furnished and approved by
Lender from time to time) shall be completed by Borrower (and such other parties as Lender may
require) and submitted to Lender and if requested by Lender specifying by name, current address,
and amount all parties to whom Borrower is obligated for labor, materials, or services supplied for
the construction of the Improvements and all other expenses incident to the Loan, and the
construction of the Improvements, whether or not specified in the Approved Budget, requesting an
Advance for the payment of such items, containing, if requested by Lender, an Affidavit of
Borrower, accompanied by such schedules, affidavits, releases, waivers, statements, invoices, bills,
and other documents as Lender may reasonably request, including but not limited to an executed
Application and Certificate for Payment and an Interim Construction Inspection Report (as those
terms as hereafter defined).
1.4 Application and Certificate for Payment. The term "Application and Certificate for
Payment" shall mean a written application in the form attached hereto as Exhibit C (or on such
other form furnished and approved by Lender from time to time) by Borrower submitted to Lender
to correspond with and substantiate each Application for Advance.
1.5 Approved Budget. The term "Approved Budget" shall be prepared by the Borrower
and include the following documents: schedule of values and itemization of costs incurred, together
demonstrating a budget or a cost itemization, that specifies the cost by item of all labor, materials,
and services necessary for the construction of Improvements for which the proceeds of a Note are to
be used in accordance with the Plans and all Governmental Requirements.
1.6 Architect. This term is not applicable to this agreement.
1.7 Borrower. The term `Borrower" shall mean CITY OF HUNTSVILLE, a
political subdivision of the State of Texas.
1.8 Borrower's Deposit. The term "Borrower's Deposit" shall mean such cash sums as
Lender may deem necessary, from time to time until a Loan is paid in full, in addition to such Loan,
for the payment of the costs of labor, materials, and services required for the construction of the
Improvements, other costs and expenses specified in the Approved Budget, and other costs and
expenses required to be paid in connection with the construction of the Improvements in accordance
with the Plans and any Governmental Requirements.
1.9 Commencement Date. The term "Commencement Date" shall mean the date as of
even date herewith.
1.10 Completion. When all of the following have been delivered to Lender: (i)
certificate of occupancy (or its equivalent) from the appropriate governmental authority having
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jurisdiction over the Property, (ii) certificate of substantial completion from the Architect, if
applicable, or Inspecting Architect and (iii) an Affidavit and full release of liens in recordable
form from the Contractor, if applicable and, upon request of Lender, any other contractors or
subcontractors who have performed work on, or furnished materials for, the Improvements, or
other documentation specified by Lender.
1.11 Completion Date. The term "Completion Date" shall mean the date the
Improvements are constructed or rehabilitated to completion, but in no event later than August 31,
2011.
1.12 Construction Contracts: The term "Construction Contracts" shall mean any and all
contracts and agreements, written or oral, between Borrower and the General Contractor, between
Borrower and any other original contractor, between any of the foregoing and any subcontractor and
between any of the foregoing and any other person or entity relating in any way to the construction
of the Improvements, including, without limitation, the performing of labor or the furnishing of
standard or specifically fabricated materials in connection therewith.
1.13 General Contractor or Contractor. The term "General Contractor" or "Contractor"
shall mean any other general contractor engaged by Borrower and approved in writing by Lender to
construct the Improvements thereof
1.14 Debtor Relief Laws. The term "Debtor Relief Laws" shall mean any applicable
liquidation, conservatorship, bankruptcy, moratorium, rearrangement, insolvency, reorganization, or
similar laws affecting the rights or remedies of creditors generally, as in effect from time to time.
1.15 Deed of Trust. The term "Deed of Trust" shall mean an interim construction deed of
trust (with security agreement) of even date herewith executed by Borrower to Michael Gerber,
Trustee for Lender, securing the payment of the Note and conveying the Property.
1.16 Event of Default. The term "Event of Default" shall mean the occurrence of any one
of the following:
(a) Any indebtedness evidenced, governed or secured by any of the Loan Instruments is
not paid when due, whether by acceleration or otherwise.
(b) Any covenant in this Loan Agreement or any of the other Loan Instruments, is not
fully and timely performed, or the occurrence of any default or event of default thereunder.
(c) Any statement, representation or warranty in the Loan Instruments, any Financial
Statements or any other writing delivered to Lender in connection with the Loan is false, misleading
or erroneous in any material respect.
(d) Failure of the construction of Improvements or any materials for which an Advance
has been requested to comply with the Plans, any Governmental Requirements, or the requirements
of any contract purchaser of a lot(s) and Improvements, if applicable.
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(e) Failure of Borrower to satisfy any condition specified herein as precedent to the
obligation of Lender to make an Advance after an Application for Advance has been submitted by
Borrower to Lender.
(f) A reasonable determination by Lender that construction of the Improvements will
not be completed on or before the Completion Date.
(g) Borrower or any person obligated to pay any part of the indebtedness evidenced,
governed or secured by the Loan Instruments:
(1) does not pay its debts as they become due or admits in writing its inability to
pay its debts or makes a general assignment for the benefit of creditors; or
(2) commences any case, proceeding or other action seeking reorganization,
arrangement, adjustment, liquidation, dissolution or composition of it or its debts under any Debtor
Relief Laws; or
(3) in any involuntary case, proceeding or other action commenced against it
which seeks to have an order for relief entered against it, as debtor, or seeks reorganization,
arrangement, adjustment, liquidation, dissolution or composition of it or its debts under any law
relating to bankruptcy, insolvency, reorganization or relief of debtors, (i) fails to obtain a dismissal
of such case, proceeding or other action within sixty (60) days of its commencement, or (ii) converts
the case from one chapter of the Federal Bankruptcy Code to another chapter, or (iii) is the subject
of an order for relief; or
(4) conceals, removes, or permits to be concealed or removed, any part of its
property, with intent to hinder, delay or defraud its creditors or any of them, or makes or suffers a
transfer of any of its property which may be fraudulent under any bankruptcy, fraudulent
conveyance or similar law; or makes any transfer of its property to or for the benefit of a creditor at
a time when other creditors similarly situated have been paid; or suffers or permits, while insolvent,
any creditor to obtain a lien upon any of its property through legal proceedings which is not vacated
within sixty (60) days from the date thereof; or
(5) has a trustee, receiver, custodian or other similar official appointed for or
take possession of all or any part of the Property or any other of its property or has any court take
jurisdiction of any other of its property which continues for a period of sixty (60) days (except
where a shorter period is specified in the immediately following subparagraph (6)); or
(6) fails to have discharged within a period of ten (10) days any attachment,
sequestration, or similar writ levied upon any property of such person; or
(7) fails to pay immediately any final money judgment against such person.
(h) The holder of any lien, security interest or assignment on a Property institutes
foreclosure or other proceedings or takes other action for the enforcement of its remedies
thereunder.
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(i) The liquidation, termination, dissolution, death, or legal incapacity of Borrower.
(j) Reasonable belief by Lender that the prospect of payment or performance of any
obligation under any of the Loan Instruments is impaired.
(k) The occurrence of any material adverse change in the financial condition of
Borrower.
(1) Default in the payment of any other indebtedness or default in the performance of
any other obligation to Lender by Borrower.
(m) Breach of the NSP Contract, as defined herein.
(n) Default under the NSP Contract.
1.17 Financial Statements. The term "Financial Statements" shall mean such balance
sheets, profit and loss statements, reconciliations of capital and surplus, changes in financial
condition, schedules of sources and uses of funds, operating statements with respect to Borrower,
pro forma schedules of sources and uses of funds for ensuing twelve -month periods, and other
financial information of Borrower as shall be required by Lender, from time to time, which
statements shall be certified as true and correct by the party submitting such statements or, if
required by Lender, shall be certified by an independent certified public accountant.
1.18 Financing Statements. The term "Financing Statements" shall mean UCC -1
financing statements of even date herewith.
1.19 Governmental Authority. The term "Governmental Authority" shall mean the
United States, the State of Texas, the county, the city, or any other political subdivision in which the
Property is located, and any other political subdivision, agency, or instrumentality exercising
jurisdiction over Borrower or the Property.
1.20 Governmental Requirements. The term "Governmental Requirements" shall mean
all laws, ordinances, rules, and regulations of any Governmental Authority applicable to Borrower
or the Property or the construction or development of Improvements thereon, including, without
limitation, the following: the Civil Rights Act of 1964 (42 U.S.C. 2000(d); Executive Order
11063, as amended by Executive Order 12259; Executive Order 11246; Age Discrimination Act
of 1975 (42 U.S.C. 6101 et seq.); Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.); Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.); Fair Housing Act (42 U.S.C. 3601 et seq.); the
Americans with Disabilities Act of 1990 (P.L. 101 -336); of the Rehabilitation Act of 1973 (29
U.S.C. 794) and implementing regulations (24 CFR Part 8); Architectural Barriers Act of 1968
(42 U.S.C. 4151 et seq.); Federal Drug Free Workplace Act of 1988 and the regulations
promulgated thereunder including, without limitation, 54 CFR Part 4956, Section 3 of the
Housing and Urban Development Act of 1968; Executive Orders 11625, 12432 and 12138, as
amended; the Copeland "Anti- Kickback" Act (18 U.S.C. § 874 et seq.); the Davis -Bacon Act (40
U.S.C. § 276a et seq.); Sections 103 and 107 of the Work Hours and Safety Standards Act. (40
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U.S.C. § 327 et seq.); the Uniform Relocation Assistance and Real Property Acquisition Policies
Act (42 U.S.C. § 4201 et seq.); the Housing and Community Development Act of 1974; the
National Environmental Policy Act (42 U.S.C. § 4321 et seq.); 24 CFR Part 50, of the Housing
and Urban Development Act as applicable; and 24 CFR Part 58, 51, 52, and 55 of the Housing
and Urban Development Act; ( "NEPA "); the Lead -Based Paint Poisoning Prevention Act (42
U.S.C. § 4321 et seq.); ); Protection of Wetlands (Executive Order 11990, Mary 24, 1977);
Coastal Management Act (Sections 307 (c) and (d)); Safe Water Driving Act (42 U.S.C. 201,
300(0 and 21U.S.C. 349); Protection of the Environment, Sole Source Aquifers (40 CFR 149);
Endangered Species Act (50 CFR 402); Wild and Scenic Rivers Act (16 U.S.C. 1271 et seq. as
amended, particularly section 7(b) and (c)); Farmland Protection Policy Act (7 CFR 658);
Federal Actions to Address Environmental Justice in Minority Populations and Low Income
Populations (Executive Order 12898, February 11, 1994); Parts of Environmental Review
Procedures for Entities Assuming HUD Environmental Responsibilities: Noise Abatement and
Control (24 CFR 51B); Explosive and Flammable Operations (24 CFR 51C); Toxic Chemicals
and Radioactive Materials (24 CFR 58.5(a); Airport Clear zones and Accident Potential Zones
(24 CFR51 D);the State of Texas Senate Bill 1356; Title 8, and Chapter 92 of the Texas Property
Code; Solid Waste Disposal Act TEX. HEALTH & SAFETY CODE Ann. Ch. 361;
Comprehensive Municipal Solid Waste Management, Resource Recovery, and Conservation Act.
TEX. HEALTH & SAFETY CODE Ann. Ch 363; County Solid Waste Control Act. TEX.
HEALTH & SAFETY CODE Ann. Ch 364; Texas Clean Air Act, TEX. HEALTH AND
SAFETY CODE Ann. Ch.; and Hazardous Communication Act, TEXAS HEALTH AND
SAFETY CODE Ann. Ch. 502; and such Governmental Requirements as may be from time to
time amended or superseded and all of their implementing regulations, as may be amended.
1.21 Hazardous Materials. The term "Hazardous Materials" shall mean (a) any
"hazardous waste" as defined by the Resource Conservation and Recovery Act of 1976 (42 U.S.C.
Section 6901 et .seg.), as amended from time to time, and regulations promulgated thereunder; (b)
any "hazardous substance" as defined by the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seg.), as amended from time to
time, and regulations promulgated thereunder; (c) asbestos; (d) polychlorinated biphenyls, whether
in the form of electrical transformers, fluorescent light fixtures with ballasts, cooling oils, or any
other device or form; (e) underground storage tanks, whether empty, filled or partially filled with
any substance; (0 any substance the presence of which on a Property is prohibited by any
Governmental Requirements; and (g) any other substance which by any Governmental
Requirements requires special handling or notification of any federal, state or local governmental
entity in its collection, storage, treatment or disposal.
1.22 Hazardous Materials Contamination. The term "Hazardous Materials
Contamination" shall mean any contamination (whether presently existing or hereafter occurring) of
any Improvements, facilities, soil, groundwater, air or other elements on or of a Property by
Hazardous Materials, or the contamination of the buildings, facilities, soil, groundwater, air or other
elements on or of any other property as a result of Hazardous Materials at any time (whether before
or after the date of this Loan Agreement) emanating from a Property.
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1.23 Improvements. The term "Improvements" shall mean the permanent residential
dwelling unit to be constructed or rehabilitated on the Lot(s) or on the vacant land that is currently
designated for residential use.
1.24 Inspecting Architects/Engineers. If applicable, the term "Inspecting
Architects/Engineers" shall mean such employees, representatives and agents of Lender or third
parties, who may, from time to time, conduct inspections of a Property or offer other services
related thereto, when applicable.
1.25 Insurance Policies. The term "Insurance Policies" shall mean:
(a) All -risk builder's risk insurance during the construction of the Improvements and up
to the sale of the Improvements, in an amount equal to 100% of the replacement cost of
Improvements, providing all -risk coverage on the Improvements and materials stored on a Property
and elsewhere, and including the perils of collapse, damage resulting from error in design or faulty
workmanship or materials, water damage and, if requested by Lender, flood, earthquake, business
interruption, permission to occupy, interest costs and other risks;
(b) All -risk insurance after the completion of the construction of the Improvements, as
determined by Lender, in the amount of at least 100% of the replacement cost of such
Improvements or in such additional amounts as Lender may require, providing all -risk coverage in
the Improvements, and, if requested by Lender, to include the perils of flood, earthquake, business
interruption and other risks;
(c) Such other insurance as Lender may reasonably require.
The all -risk insurance policies referred to in this Section may include a reasonable deductible in an
amount approved by Lender.
All Insurance Policies shall be issued on forms and by companies satisfactory to Lender and shall be
delivered to Lender at the address set forth on page one hereof. All -risk Insurance Policies shall
have loss made payable to Lender as mortgagee together with a standard mortgagee clause which
provides Lender with at least fifteen (15) days prior notice of amendment or cancellation.
Commercial General Liability shall have a provision giving Lender at least fifteen (15) days prior
notice of cancellation or material change of the coverage.
1.26 Interim Construction Inspection Report. The term "Interim Construction Report"
shall mean a report (on a form provided and approved by Lender and is currently located on the
Lender's electronic library, under NSP, under "Forms" see:
http: / /www.tdhca .state.tx.us /nsp /forms.htm) and shall be completed by a third party inspector.
1.27 Lender. The term "Lender" shall mean TEXAS DEPARTMENT OF HOUSING
AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas.
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1.28 Loan. The term "Loan" shall mean the loan by Lender to Borrower pursuant to this
Loan Agreement in the amount of $106,797.65, on the terms and conditions set forth in the Note
and other Loan Instruments, from time to time during the period from the date of this Loan
Agreement up to Completion Date.
1.29 Loan Instruments. The term "Loan Instruments" shall mean the Loan Agreement,
the Deed of Trust, Note, Financing Statements, and such other instruments evidencing, securing, or
pertaining to the Loan as shall, from time to time, be executed and delivered by Borrower or any
other party to Lender pursuant to this Loan Agreement.
1.30 Lot(s). The term " Lot(s)" shall mean that certain lot located in Walker County,
Texas, and more particularly described as LOT NINE (9), BLOCK TWENTY -FOUR (24) of
HIGHLAND ADDITION No. 3, a subdivision within the City of Huntsville, P. Gray League, A -24,
Walker County, Texas according to the map or plat thereof recorded in Volume 1 Page 6 of the Plat
Records, Walker County, Texas, which has a property address of:
2001 Normal Park Drive, Huntsville, Walker County, Texas 77340.
1.31 Neighborhood Stabilization Program. The term shall mean "Neighborhood
Stabilization Program" (NSP) or (Program), as authorized by the (Housing and Economic Recovery
Act of 2008), as an adjunct to the Community Development Block Grant Program. Housing and
Economic Recovery Act of 2008, Pub. L. 110 -289, 112 STAT 2850).
1.32 Neighborhood Stabilization Contract. The term "Neighborhood Stabilization
Contract," hereinafter "Contract" shall mean the contract executed between Lender and
Contractor (as stated in the Contract) with a unique contract number of 77099999126 and
executed on September 1, 2009, in the original amount of $1,050,000.00, as increased and
amended.
1.33 Note. The term "Note" shall mean a promissory note in the amount of $106,797.65
of even date herein executed by Borrower payable to Lender.
1.34 Notice of Invalidity of Oral Agreements. The term "Notice of Invalidity of Oral
Agreements" shall mean the notice executed by Borrower on even date herein.
1.35 Plans. The term "Plans" shall mean an initial inspection, work write -up, estimate or
bid, or other work product as stated by Lender, which pertain to said construction of Improvements
prepared or possessed by the Engineer or Architect, if applicable, or others for such Construction
with respect to the residence to be constructed or Rehabilitated by Borrower, approved by Lender,
and all applicable Governmental Authorities. If an Architect or Engineer is included in the
construction or Rehabilitation, then any and all contracts and agreement, written or oral, between
the Architect or Engineer and the Borrower, shall also be included in the Plans.
1.36 Rehabilitation: The term "Rehabilitation" includes activities as described in 24
CFR Section 570.202(b), but limited to improvement or modification of an existing property
through an alteration, addition, or enhancement including the demolition of an existing
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residential property and the reconstruction (rebuilding of a structure on the same site in
substantially the same manner) of residential property.
1.37 Resolution Certificate. The term "Resolution Certificate" shall mean a corporate
resolution in the form attached hereto as Exhibit F.
1.38 Property. The term "Property" shall mean the Lots(s), Improvement, all other
property, personal property or mixed and fixtures constituting the Mortgaged Property as described
in the Deed of Trust.
1.39 Survey. The term "Survey" shall mean a current certified land title survey of the
Lot(s) satisfying the requirements of a Category 1A Real Property Title Survey (Condition II) as set
forth in the latest edition of the Manual For Practice for Land Surveying in Texas and certified as
such by the surveyor and including such other certificate as Lender may require in a certificate
addressed to Borrower, Lender, and the Title Company, signed by the Surveyor and bearing the
current date and the Surveyor's registration number and seal, and/or a recorded plat or map of the
property, as required by Lender, which plat or map shall be approved and accepted by all
Governmental Authorities having jurisdiction of the property.
1.40 Title Company. The term "Title Company" shall mean the title company, approved
by lender, issuing the Title Insurance.
1.41 Title Insurance. The term "Title Insurance" shall mean a loan title policy or
policies of insurance or loan title policy binder or binders on interim construction loan, as Lender
may require, in the amount of the Note described in the Deed of Trust, insuring or committing to
insure that such Deed of Trust constitutes a valid first and prior lien and subject only to those
exceptions and encumbrances which Lender may approve, issued by the Title Company.
ARTICLE 2 - ADVANCES OF THE LOAN
2.1 Interest on the Loan. Interest on the Loan, at the rate specified in the Note, shall be
computed on the unpaid principal balance which exists from time to time and shall be computed
with respect to each Advance only from the date of such Advance (as to the portion of each
Advance not constituting a portion of Borrower's Deposit).
2.2 Advances. Advances for the payment of costs of labor, materials, and services
supplied for the construction of the Improvements and the other items shown in an Approved
Budget shall be made by Lender, after actual commencement of construction of Improvements, for
work actually done during the preceding period. Loan proceeds advanced by Lender by journal
entry to pay interest required to be paid by Borrower pursuant to this Loan Agreement shall
constitute actual Advances to Borrower. From time to time, Borrower shall submit an Application
for Advance to Lender requesting an Advance for the payment of the acquisition costs of the Lot,
the interest on the Loan, the costs of labor, materials, and services supplied for the construction of
Improvements, and the marketing of the Property for sale, in accordance with and as specified in the
Approved Budget. Advances for payment of costs of construction of Improvements and the other
items shown in an Approved Budget shall be limited to the amounts shown in an Approved Budget
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and not exceed the aggregate of (a) the costs of labor, materials, and services incorporated into the
Improvements in a manner acceptable to Lender, including reasonable indirect costs approved by
Lender, less (b) all prior Advances for payment of costs of labor, materials, and services for the
construction of the Improvements actually incorporated into the Improvements. Each Application
for Advance shall be submitted by Borrower to Lender at least ten (10) business days prior to the
date on which an Advance is desired by Borrower (and each statement made in such application
must be true and correct at the time the requested Advance is to be made).
The final Advance for Rehabilitation, new construction, and reconstruction, including all retainage,
will not be made until the date which is thirty-one (31) days after completion of construction and
until the Lender has received the following: (1) an affidavit of completion in a form approved by
the Department and attached as Exhibit D (2) evidence that all Governmental Requirements have
been satisfied, (3) evidence that no mechanic's or materialman's lien or other encumbrance has been
filed and remains in effect against a Property, (4) final lien releases or waivers by Contractor and all
subcontractors, materialman, and other parties who have supplied labor, materials, or services for
the construction of Improvements, or who otherwise might be entitled to claim a contractual,
statutory, or constitutional lien against a Property in a form approved by Department and attached as
Exhibit E and (5) verification that the Title Insurance will be in effect for a minimum of six (6)
months after the final Advance.
2.3 Conditions to the First Advance. As a condition precedent to the first Advance
under the Note, Borrower must submit to Lender not later than fifteen (15) business days prior to
the anticipated date of the first Advance, a fully completed and executed Application for Advance
and must further satisfy the conditions required hereby and execute and deliver to, procure for and
deposit with, and pay to Lender and, if appropriate, record in the proper records with all filing and
recording fees paid, the documents, certificates, and other items that are noted by (x) on Exhibit A
attached hereto, together with such other documents, instruments, and certificates as Lender may
reasonably require. It is anticipated that the borrower will immediately request an advance for the
reimbursement of the acquisition costs for the Lot(s) securing the Note in the aggregate amount of
$100,000.00.
2.4 Conditions to Subsequent Advances. As a condition precedent to each subsequent
Advance under the Note other than the first Advance, in addition to all other requirements herein,
Borrower must satisfy the following requirements and, if required by Lender, deliver to Lender
evidence of such satisfaction:
(a) All conditions precedent to the first Advance shall have been satisfied;
(b) No Event of Default shall exist;
(c) A foundation survey, if required by Lender, shall have been furnished to Lender at
final draw, showing no encroachment of the improvements on any boundary line, easement,
building setback line, or other restricted area;
(d) The representations and warranties made in this Loan Agreement shall be true and
correct on and as of the date of each Advance, with the same effect as if made on that date;
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(e) Borrower will procure and deliver to Lender, if required by Lender, releases or
waivers of mechanics' liens and receipted bills showing payment of all parties who have furnished
materials or services or performed labor of any kind in connection with the construction of any of
the Improvements; and
(f) The Title Insurance shall be in effect.
2.5 Reallocation of Approved Budget. Lender reserves the right to make Advances
which are allocated to any of the designated items in an Approved Budget for such other purposes
or in such different proportions as Lender may, in its sole discretion, deem necessary or advisable.
Borrower may not reallocate items of cost or change an Approved Budget without the prior written
consent of Lender.
2.6 No Waiver. No Advance shall constitute a waiver of any condition precedent to the
obligation of Lender to make any further Advance or preclude Lender from thereafter declaring the
failure of Borrower to satisfy such condition precedent to be an Event of Default.
2.7 Conditions Precedent for the Benefit of Lender. All conditions precedent to the
obligation of Lender to make any Advance are imposed hereby solely for the benefit of Lender, and
no other party may require satisfaction of any such condition precedent or be entitled to assume that
Lender will refuse to make any Advance in the absence of strict compliance with such conditions
precedent. All requirements of this Loan Agreement may be waived by Lender, in whole or in part,
at any time.
2.8 Subordination. Lender shall not be obligated to make, nor shall Borrower be entitled
to, any Advance until such time as Lender shall have received, to the extent requested by Lender,
subordination agreements from Architect when applicable, Contractor, when applicable, and all
other persons furnishing labor, materials, or services for the design or construction of
Improvements, subordinating to the provisions of a Deed of Trust any lien, claim, or charge they
may have against Borrower or a Property.
2.9 Title Insurance. If any of the Title Insurance consists of Loan Title Policy Binders
on Interim Construction Loan, after expiration of the time periods specified in Section 2.2,
Borrower will replace such binders with a Loan Policy (or Policies) of Title Insurance, endorsed and
extended to cover the construction costs and acknowledge completion of construction of
Improvements without any encroachment and in compliance with all applicable matters of public
record and Governmental Requirements, with no additional exception objectionable to Lender.
ARTICLE 3 - REPRESENTATIONS AND WARRANTIES OF BORROWER
Borrower hereby represents and warrants as of the date of each Advance as follows:
3.1 Financial Statements. The Financial Statements are true, correct, and complete as of
the dates specified therein and fully and accurately present the financial condition of Borrower as of
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the dates specified. No material adverse change has occurred in the financial condition of Borrower
since the dates of the Financial Statements.
3.2 Suits, Actions, Etc. There are no material actions, suits, or proceedings pending or
to the knowledge of Borrower threatened in any court or before or by any Governmental Authority
against or affecting Borrower or the Property herein described, or involving the validity,
enforceability, or priority of any of the Loan Instruments, at law or in equity. The consummation of
the transactions contemplated hereby, and the performance of any of the terms and conditions
hereof and of the other Loan Instruments, will not result in a breach of, or constitute a default in,
any mortgage, deed of trust, lease, promissory note, loan agreement, credit agreement, partnership
agreement, or other agreement to which Borrower is a party or by which Borrower may be bound or
affected. Borrower is not in default of any order of any court or any requirement of any
Governmental Authority.
3.3 Valid and Binding Obligation. All of the Loan Instruments, and all other documents
referred to herein to which Borrower is a party, upon execution and delivery will constitute valid
and binding obligations of Borrower, enforceable in accordance with their terms except as limited
by Debtor Relief Laws.
3.4 Title to the Property. Borrower holds full legal and equitable title to the Property
herein described, subject only to title exceptions set forth in the Title Insurance.
3.5 Commencement of Construction. Prior to the recordation of the Deed of Trust
covering the Property herein described, no work of any kind that would give rise to a lien having
priority over the Deed of Trust (including the destruction or removal of any existing improvements,
site work, clearing, grubbing, draining, or fencing of the Property herein described in such Deed of
Trust), shall have commenced or shall have been performed on such Property, no equipment or
material shall have been delivered to or upon such Property for any purpose whatsoever, and no
contract (or memorandum or affidavit thereof) for the supplying of labor, materials, or services for
the construction of the Improvements shall have been recorded in the mechanic's lien or other
appropriate records in the county where such Property is located.
3.6 Disclosure. There is no fact that Borrower has not disclosed to Lender in writing
that could materially adversely affect the property, business or financial condition of Borrower or
the Property herein described.
3.7 Compliance with Environmental Requirements., No Hazardous Materials. To the
best of Borrower's knowledge:
(a) No Hazardous Materials are located on the Property herein described, released into
the environment, or deposited, discharged, placed or disposed of at, on, under or near such Property.
No portion of the Property herein described is being used or, to the knowledge of Borrower, has
been used at any previous time for the disposal, storage, treatment, processing or other handling of
Hazardous Materials nor is the Property affected by any Hazardous Materials Contamination.
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(b) No Hazardous Materials are located in the vicinity of the Property herein described.
No property adjoining the Property herein described is being used, or has ever been used at any
previous time, for the disposal, storage, treatment, processing or other handling of Hazardous
Materials. No property adjoining the Property herein described is affected by Hazardous Materials
Contamination.
(c) No investigation, administrative order, consent order, agreement, litigation or
settlement with respect to Hazardous Materials or Hazardous Materials Contamination is proposed,
threatened, anticipated or in existence with respect to the Property herein described. The Property
herein described and its existing and prior uses comply and at all times have complied with any
applicable Governmental Requirements relating to environmental matters or Hazardous Materials.
There is no condition on the Property herein described which is in violation of any applicable
Governmental Requirements relating to Hazardous Materials, and Borrower has received no
communication from or on behalf of any Governmental Authority that any such condition exists.
The Property herein described is not currently on and, to Borrower's knowledge after diligent
investigation and inquiry, has never been on any federal or state "Superfund" or "Superlien" list.
(d) No asbestos or asbestos - containing materials have been installed, used, incorporated
into, or disposed of on the Property herein described.
(e) No polychlorinated biphenyls or materials containing polychlorinated biphenyls are
located on or in the Property herein described, in the form of electrical transformers, fluorescent
light fixtures with ballasts, cooling oils, or any other device or form.
(f) No underground storage tanks are located on the Property or, to the best of
Borrower's knowledge, were previously located on the Property herein described and subsequently
removed or filled.
(g) Except for studies, audits, and reports pertaining to the Property, if any, which have
been made available to Lender, there have been no environmental investigations, studies, audits,
tests, reviews or other analyses conducted by or which are in the possession of Borrower or
available to Borrower in relation to the Property herein described.
(h) All representations and warranties contained in this Section 3.7 shall survive the
consummation of the transactions contemplated in this Loan Agreement.
3.8 System Compliance. To the best of Borrower's knowledge, after due inquiry, the
storm and sanitary sewer system, water system, all mechanical systems of the Property herein
described and other parts of the Improvements do (or when constructed will) comply with all
applicable environmental, pollution control and ecological laws, ordinances, rules and regulations,
and all Governmental Authorities having jurisdiction of the Property herein described have issued
all necessary permits, licenses or other authorizations for the construction, occupancy, operation,
and use of the Improvements (specifically including the named systems).
3.9 Utility Availability. Subject only to payment of fees to be paid from an Approved
Budget, all utility and municipal services required for the construction, occupancy and operation of
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the Improvements, including, but not limited to, water supply, storm and sanitary sewer systems,
gas, electric and telephone facilities, are available for use and tap -on at the boundaries of the
Property herein described and will be available in sufficient amounts for the normal and intended
use of the Improvements, and written permission has been or will be obtained from the applicable
utility companies or municipalities to connect the Improvements into each of said services.
3.10 Interstate Land Sales Full Disclosure Act. Borrower's development of the Property
herein described and the sale or lease of such Property by Borrower are exempt from the registration
and reporting requirements of the Interstate Land Sales Full Disclosure Act, 15 U.S.C. § 1701, et
seq., and the regulations promulgate thereunder. Any sale of the Property herein described by
Borrower shall be in full compliance with the Interstate Land Sales Full Disclosure Act and the
regulations promulgated thereunder.
3.11 Inducement to Lender. The representations and warranties contained in the Loan
Instruments are made by Borrower as an inducement to Lender to make a Loan and Borrower
understands that Lender is relying on such representations and warranties and that such
representations and warranties shall survive any (a) bankruptcy proceedings involving Borrower or
the Property herein described, or (b) foreclosure of the Deed of Trust or (c) conveyance of title to
such Property in lieu of foreclosure of the Deed of Trust. Acceptance of each Advance constitutes
reaffirmation, as of the date of such acceptance, of the representations and warranties of Borrower
in the Loan Instruments, on which Lender shall rely in making such Advance.
3.12 NPDES Permit. If applicable, Borrower has timely obtained a National Pollutant
Discharge Elimination System Permit ( "NPDES Permit ") or has filed a Notice of Intent to be
covered by an applicable NPDES Permit in connection with the Property herein described and has
otherwise complied with all filing and other applicable requirements of the Water Quality Act of
1987 (33 U.S.C. § 1251 et seg.) (the "Water Quality Act ") and regulations promulgated thereunder.
ARTICLE 4 - COVENANTS AND AGREEMENTS OF BORROWER
Borrower hereby covenants and agrees as follows:
4.1 Compliance with Governmental Requirements. Borrower shall timely comply with
all Governmental Requirements and deliver to Lender evidence thereof. Borrower assumes full
responsibility for the compliance of the Plans and the Property with all Governmental Requirements
and with sound building and engineering practices, and, notwithstanding any approvals by Lender,
Lender shall have no obligation or responsibility whatsoever for the Plans or any other matter
incident to the Property or the construction of Improvements. Immediately upon Borrower's receipt
of any notice from a Governmental Authority of noncompliance with any Governmental
Requirements, Borrower shall provide Lender with written notice thereof.
Any Rehabilitation of a foreclosed upon home or residential property under NSP shall be to the
extent necessary to comply with applicable, laws, codes, and other requirements related to
housing safety, quality, and habitability, in order to sell, rent, or redevelop such homes and
properties. Rehabilitation may include improvements to increase the energy efficiency or
conservation of such homes and properties or provide a renewable energy source or sources for
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such homes and properties. (Housing and Economic Recovery Act Section 2301 (d)(2) of 2008.)
The eligibility of renewable energy equipment on existing structures shall be determined by the
Beneficiary.
Housing that is constructed or Rehabilitated with NSP funds must meet all applicable local
codes, rehabilitation standards, ordinances, and zoning ordinances at the time of completion. In
the absence of a local code for new construction or Rehabilitation, the housing must meet the
most current International Building Code. In addition, all NSP funded housing must meet the
Texas Minimum Construction Standards, as published in the Texas NSP Program Guidelines.
NSP assisted new construction or Rehabilitation will comply with HUD Program lead -based
paint requirements including lead screening in housing built before 1978 in accordance with 24
CFR Part 92.355 and 24 CFR Part 35, subparts A, B, J, K, M, and R. Multifamily housing
assisted with NSP funds must meet the accessibility requirements at 24 CFR part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Section 794) and covered
multifamily dwellings, as defined at 24 CFR 100.201, and the design and construction
requirements at 24 CFR 100.205, which implement the Fair Housing Act (42 U.S.C. 3601 - 3619).
Finally, NSP assisted housing must meet Energy Efficiency Standards in accordance with
Section 2306.187 of the Texas Government Code. Section 2306.514 of the Texas Government
Code must be applied when single family homes are to be constructed.
4.2 Construction of the Improvements. On or after the Commencement Date as herein
defined, Borrower shall commence construction of the Improvements herein described and the
construction of the Improvements shall be prosecuted with diligence and continuity, in a good and
workmanlike manner, and in accordance with sound building and engineering practices, all
applicable Governmental Requirements as described in Section 4.1 above and the Plans.
4.3 Correction of Defects. Borrower, at its cost, shall correct or cause to be corrected (a)
any material defect in the Improvements, (b) any material departure in the construction of the
Improvements from the Plans or Governmental Requirements, or (c) any encroachment by any part
of the Improvements, or any structure located on the Property, on any easement, property line, or
restricted area, or any encroachment by any such structure on any building line.
4.4 Storage of Materials. Borrower shall cause all materials supplied for, or intended to
be utilized in, the construction of the Improvements, but not affixed to or incorporated into the
Improvements or the Property, to be stored on the Property or at such other location as may be
approved by Lender in writing, with adequate safeguards, as required by Lender, to prevent loss,
theft, damage, or commingling with other materials or projects.
4.5 Inspection of the Property. Borrower shall permit Lender, any Governmental
Authority, and their agents and representatives to enter upon the Property and any location where
materials intended to be utilized in the construction of the Improvements are stored, for the purpose
of inspection of the Property and such materials at all reasonable times.
4.6 Notices by Governmental Authority, Casualty, Condemnation. Borrower shall
timely comply with and promptly furnish to Lender true and complete copies of any notice or claim
by any Governmental Authority pertaining to a Property. Borrower shall promptly notify Lender of
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any fire or other casualty or any notice of taking or eminent domain action or proceeding affecting a
Property, or the threat of any such action or proceeding of which Borrower becomes aware.
4.7 Special Account. If requested by Lender, Borrower shall maintain a special account
at a bank or savings and loan association selected by Borrower and reasonably satisfactory to
Lender, into which all Advances (but no other funds), and excluding direct disbursements made by
Lender pursuant to Section 4.9 hereof, shall be deposited by Borrower, and against which checks
shall be drawn only for the payment of (a) costs of labor, materials, and services supplied for the
construction of the Improvements specified in each Approved Budget and (b) other costs and
expenses incident to the Loan and the construction of the Improvements specified in an Approved
Budget.
4.8 Application of Advances. Borrower shall disburse all Advances for payment of
costs and expenses specified in an Approved Budget, and for no other purpose.
4.9 Direct Disbursement and Application by Lender. Lender shall have the right, but
not the obligation, to disburse and directly apply the proceeds of any Advance to the satisfaction of
any of Borrower's obligations hereunder or under any of the other Loan Instruments. Any Advance
by Lender for such purpose, except Borrower's Deposit, shall be part of a Loan and shall be secured
by the Loan Instruments. Borrower hereby authorizes Lender to hold, use, disburse, and apply a
Loan and the Borrower's Deposit for payment of costs of construction of the Improvements,
expenses incident to a Loan and the Property, and the payment or performance of any obligation of
Borrower hereunder or under any of the other Loan Instruments. Borrower hereby assigns and
pledges the proceeds of each Loan and the Borrower's Deposit to Lender for such purposes. Lender
may advance and incur such expenses as Lender deems necessary for the completion of
construction of the Improvements and to preserve a Property, and any other security for a Loan, and
such expenses, even though in excess of the amount of a Loan, shall be secured by the Loan
Instruments and payable to Lender. Lender may disburse any portion of any Advance at any time,
and from time to time, to persons other than Borrower for the purposes specified in this Section 4.9
irrespective of the provisions of Section 2.3 hereof, and the amount of Advances to which Borrower
shall thereafter be entitled shall be correspondingly reduced.
4.10 Costs and Expenses. Borrower shall pay when due all costs and expenses required
by this Loan Agreement, including, without limitation, (a) all taxes and assessments applicable to
each Property, (b) all fees for filing or recording the Loan Instruments, (c) all fees and commissions
lawfully due to brokers, salesmen, and agents in connection with a Loan, or a Property, (d) all fees
and expenses of counsel to Lender, (e) all title insurance and title examination charges, including
premiums for the Title Insurance, (f) all survey costs and expenses, including cost of a Survey, (g)
all premiums for Insurance Policies, and (h) all other costs and expenses payable to third parties
incurred by Lender in connection with the consummation of the transactions contemplated by this
Loan Agreement.
4.11 Additional Documents. Borrower shall execute and deliver to Lender, from time to
time as requested by Lender, such other documents as shall reasonably be necessary to provide the
rights and remedies to Lender granted or provided for by the Loan Instruments.
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4.12 Inspection of Books and Records. Borrower shall permit Lender to examine and
copy the books and records of Borrower pertaining to a Loan and a Property, and all contracts,
statements, invoices, bills and claims for labor, materials, and services supplied for the construction
of the Improvements.
4.13 No Liability of Lender. Lender shall have no liability, obligation, or responsibility
whatsoever with respect to the construction of Improvements except to advance the Loan and the
Borrower's Deposit pursuant to this Loan Agreement. Lender shall not be obligated to inspect a
Property or the construction of Improvements, nor be liable or responsible for any defect in a
Property or Improvements by reason of inspecting same, nor be liable for the performance or default
of Borrower, the Inspecting Engineers, Architects, when applicable, General Contractor, when
applicable, Contractor, or any other party, or for any failure to construct, complete, protect or insure
Improvements, or for the payment of costs of labor, materials, or services supplied for the
construction of the Improvements, or for the performance of any obligation of Borrower
whatsoever. Nothing, including without limitation any Advance or acceptance of any document or
instrument, shall be construed as a representation or warranty, express or implied, to any party by
Lender.
4.14 No Conditional Sale Contracts. Without the prior written consent of Lender, no
materials, equipment, or fixtures shall be supplied, purchased, or installed for the construction or
operation of Improvements pursuant to security agreements, conditional sale contracts, lease
agreements, or other arrangements or understandings whereby a security interest or title is retained
by any party or the right is reserved or accrues to any party to remove or repossess any materials,
equipment, or fixtures intended to be utilized in the construction or operation of the Improvements.
4.15 Defense of Actions. Lender may (but shall not be obligated to) commence, appear
in, or defend any action or proceeding purporting to affect a Loan, a Property, or the respective
rights and obligations of Lender and Borrower pursuant to this Loan Agreement. Lender may (but
shall not be obligated to) pay all necessary expenses, including attorneys' fees and expenses
incurred in connection with such proceedings or actions, which Borrower agrees to repay to Lender
upon demand.
4.16 Prohibition on Assignment of Borrower's Interest. Borrower shall not assign or
encumber any interest of Borrower hereunder without the prior written consent of Lender.
4.17 Payment of Claims. Borrower shall promptly pay or cause to be paid when due all
costs and expenses incurred in connection with each Property and the construction of Improvements
thereon, and Borrower shall keep each Property free and clear of any lien, charge, or claim other
than the encumbrances of the Deed of Trust covering such Property and other liens approved in
writing by Lender. Notwithstanding anything to the contrary contained in this Loan Agreement,
Borrower (a) may contest the validity or amount of any claim of any contractor, consultant,
architect, or other person providing labor, materials, or services with respect to a Property, (b) may
contest any tax or special assessments levied by any Governmental Authority, and (c) may contest
the enforcement of or compliance with any Governmental Requirements, and such contest on the
part of Borrower shall not be a default hereunder and shall not release Lender from its obligations to
make Advances hereunder; provided, however, that during the pendency of any such contest
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Borrower shall furnish to Lender and Title Company an indemnity bond with corporate surety
satisfactory to Lender and Title Company or other security acceptable to them in an amount equal to
the amount being contested plus a reasonable additional sum to cover possible costs, interest, and
penalties, and provided further that Borrower shall pay any amount adjudged by a court of
competent jurisdiction to be due, with all costs, interest, and penalties thereon, before such judgment
becomes a lien on such Property.
4.18 Restrictions and Annexation. Borrower shall not impose any restrictive covenants,
easements or other encumbrances upon a Property, execute or file any subdivision plat affecting a
Property, or consent to the annexation of a Property to any city without the prior written consent of
Lender.
4.19 Tax Receipts. Subject to the provisions of Section 4.18 hereof, Borrower shall
furnish Lender with receipts or tax statements marked "Paid" or, if required by Lender, copies of tax
statements accompanied by copies of Borrower's checks issued in payment of such taxes to
evidence the payment of all taxes levied on the Property on or before the date such taxes become
delinquent.
4.20 Reporting by Borrower - NSP Subrecipient Activity Report. Until all NSP
obligation requirements are met, the NSP Subrecipient Activity Report shall be submitted
monthly. Thereafter, the NSP Subrecipient Activity Report shall be submitted quarterly. The
Beneficiary shall determine whether all NSP obligation requirements have been met and may
amend this rule from time to time or as needed.
4.21 Notice of Litigation, Claims, and Financial Change. Borrower shall promptly
inform Lender of (a) any litigation against Borrower or affecting a Property, which, if determined
adversely, might have a material adverse effect upon the financial condition of Borrower or upon
such Property, or might cause an Event of Default, (b) any claim or controversy which might
become the subject of such litigation, and (c) any material adverse change in the financial condition
of Borrower.
4.22 Hold Harmless. Borrower shall defend, at its own cost and expense, and hold
Lender harmless from, any proceeding or claim in any way relating to a Property or Loan
Instruments executed in connection with a Loan. All costs and expenses incurred by Lender in
protecting its interests hereunder, including all court costs and attorneys' fees and expenses, shall be
borne by Borrower. The provisions of this Section shall survive the payment in full of each Loan
and all other indebtedness secured by each Deed of Trust and the release of such Deed of Trust as to
events occurring and causes of action arising before such payment and release.
4.23 Hazardous Materials; Indemnification.
(a) Borrower agrees (i) that Borrower shall not receive, store, dispose or release any
Hazardous Materials on or to a Property or transport any Hazardous Materials, to or from a Property
or permit the existence of any Hazardous Materials Contamination; (ii) to give written notice to
Lender immediately upon Borrower's acquiring knowledge of the presence of any Hazardous
Materials on a Property or of the transport of any Hazardous Materials to or from a Property or the
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existence of any Hazardous Materials Contamination, with a full description thereof; (iii) to
promptly, at Borrower's sole cost and expense, comply with any Governmental Requirements
requiring the removal, treatment or disposal of such Hazardous Materials or Hazardous Materials
Contamination and provide Lender with satisfactory evidence of such compliance; (iv) to provide
Lender, within thirty (30) days after demand by Lender, with a bond, letter of credit or similar
financial assurance evidencing to Lender's satisfaction that the necessary funds are available to pay
the cost of removing, treating and disposing of such Hazardous Materials or Hazardous Materials
Contamination and discharging any assessments which may be established on a Property as a result
thereof; and (v) to insure that all leases, licenses, and agreements of any kind now or hereafter
executed which permit any party to occupy, possess or use in any way a Property or any part
thereof, whether written or oral, include an express prohibition on the disposal or discharge of any
Hazardous Materials at or affecting a Property, and a provision that failure to comply with such
prohibition shall expressly constitute a default under any such agreement.
(b) Borrower shall not cause or suffer any liens to be recorded against a Property as a
consequence of, or in any way related to, the presence, remediation or disposal of Hazardous
Materials in or about such Property, including any state, federal or local so- called "Superfund" lien
relating to such matters.
(c) Borrower shall at all times retain any and all liabilities arising from the presence,
handling, treatment, storage, transportation, removal or disposal of Hazardous Materials on a
Property. Regardless of whether any Event of Default shall have occurred and be continuing or any
remedies in respect of a Property are exercised by Lender, Borrower shall to the extent authorized
by law and subject to funds legally available for the purpose, defend, indemnify and hold harmless
Lender and any trustee named in the Deed of Trust covering such Property (and any successor to
such trustee) from and against any and all liabilities (including strict liability), suits, actions, claims,
demands, penalties, damages (including, without limitation, lost profits, consequential damages,
interest, penalties, fines and monetary sanctions), losses, costs and expenses (the foregoing are
hereinafter collectively referred to as "Liabilities ") which may now or in the future (whether before
or after the culmination of the transactions contemplated by this Loan Agreement) be incurred or
suffered by Lender or the trustee named in the Deed of Trust (or any successor to such trustee) by
reason of, resulting from, in connection with or arising in any manner whatsoever out of the breach
of any warranty or covenant or the inaccuracy of any representation of Borrower contained or
referred to in this Section or Section 3.7 of this Loan Agreement and the Deed of Trust or which
may be asserted as a direct or indirect result of the presence on or under, or escape, seepage,
leakage, spillage, discharge, emission, or release from a Property of any Hazardous Materials or any
Hazardous Materials Contamination or arise out of or result from the environmental condition of the
Property or the applicability of any Governmental Requirements relating to Hazardous Materials,
whether br not occasioned wholly or in part by any condition, accident of event caused by
Borrower. Such Liabilities shall include, without limitation: (i) injury or death to any person; (ii)
damage to or loss of the use of any property; (iii) the cost of any demolition and rebuilding of any
improvements now or hereafter situated on the Property or adjacent property, and the cost of repair
or remediation of any such improvements; (iv) any lawsuit brought, good faith settlement reached,
or governmental order relating to the presence, disposal, release or threatened release of any
Hazardous Materials on, from or under the Property; (v) the imposition of any lien on the Property
arising from the activity of Borrower or Borrower's predecessors in interest on the Property or from
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the existence of Hazardous Materials or Hazardous Materials Contamination upon the Property; and
(vi) the cost of any activity required by an Governmental Authority.
(d) The covenants and agreements contained in this Section shall survive the
consummation of the transactions contemplated by this Loan Agreement.
4.24 Notice to Proceed. Borrower must receive a Notice to Proceed from Lender prior to
the start of any construction activities and/or prior to disbursements of funding for Eligible Costs.
Improvements made to residential dwellings with Texas Neighborhood Stabilization Program
( "NSP ") funds are required to meet Davis Bacon Prevailing Wage Regulations and submit required
documents prior to the issuance of the Notice to Proceed. At a minimum, a Labor Standard Officer
(TDHCA Form 6.02) must be submitted to Lender to receive authorization for acquisition
disbursement. If construction of Improvements will begin within ten (10) days from the date hereof,
Borrower must have complied with the Lender's established Notice to Proceed policy and
procedures prior to the execution of this Agreement.
4.25 Lead -Based Paint. Borrower shall ensure that the Lot(s) and Improvements meet
the lead -based paint requirements set forth in 24 CFR Part 35 Subparts A, B, J, K, M, and R, as
applicable.
4.26 Accessibility. Borrower shall ensure that the Improvements meet the accessibility
requirements applicable to the Lot(s) and Improvements set forth in 24 CFR Part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 USC Section 794), and the design
and construction requirements set forth in 24 CFR Section 100.205, which implements the Fair
Housing Act (42 USC Sections 3601- 3619).
4.27 Federal Drug Free Workplace Act. Borrower shall comply with the Federal Drug
Free Workplace Act of 1988 and the regulations promulgated thereunder including, without
limitation, 54 CFR Part 4956.
4.28 Non - procurement, Debarment and Suspension. Borrower shall comply with non -
procurement, debarment and suspension standards set forth in 2 CFR Part 180, Subpart C, as
required by 2 CFR Part 2424 and shall not employ, award a contract to, or fund any person that
has been debarred, suspended, proposed for debarment or placed on ineligibility status by HUD
or the Department. Borrower shall post any notice of procurement and job opportunities related
to this Agreement on the Department's website on the workintexas.com website.
4.29 National Flood Protection Act. The Lot(s) and Improvements will be constructed
in compliance with elevation requirements that meet or exceed those in the QAP, the National Flood
Protection Act, HUD 24 CFR Part 55, and any local requirements.
4.30 Byrd Amendment: Prohibition for Influencing Federal Entities. To the best of
Borrower's knowledge, Borrower has complied with all restrictions, certifications and disclosure
requirements contained in the Byrd amendment to the fiscal 1990 appropriations measures for
the United States Department of the Interior (P.L. 101 -121) and any guidelines and rules issued
by any federal entity in connection therewith, if applicable.
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ARTICLE 5 - RIGHTS AND REMEDIES OF LENDER
5.1 Rights of Lender. Upon the occurrence of an Event of Default, Lender shall have
the right, in addition to any other right or remedy of Lender, but not the obligation, in its own name
or in the name of Borrower, to enter into possession of each Property; to perform all work necessary
to complete the construction of Improvements substantially in accordance with the Plans and
Governmental Requirements; and to employ watchmen and other safeguards to protect such
Property. To the extent authorized by law, Borrower hereby appoints Lender as the attorney -in -fact
of Borrower, with full power of substitution, and in the name of Borrower, if Lender elects to do so,
upon the occurrence of an Event of Default, to (a) use such sums as are necessary, including any
proceeds of the Loan and the Borrower's Deposit, make such changes or corrections in the Plans,
and employ such architects, engineers, and contractors as may be required for the purpose of
completing the construction of the Improvements substantially in accordance with the Plans and
Governmental Requirements, (b) execute all applications and certificates on Borrower's behalf
which may be required for completion of construction of the Improvements, (c) do every act with
respect to the construction of the Improvements which Borrower may do, and (d) prosecute or
defend any action or proceeding incident to the Property. The power of attorney granted hereby is a
power coupled with an interest and irrevocable. Lender shall have no obligation to undertake any of
the foregoing actions, and, if Lender should do so, it shall have no liability to Borrower for the
sufficiency or adequacy of any such actions taken by Lender.
5.2 Cessation of Advances. Upon the occurrence of an Event of Default, the obligation
of Lender to disburse the Loan and the Borrower's Deposit and all other obligations of Lender
hereunder shall, at Lender's option, immediately terminate, unless and until reinstated by Lender in
writing.
5.3 Acceleration. Upon the occurrence of an Event of Default, Lender may, at its
option, declare the Loan immediately due and payable without notice of any kind (unless notice is
required by applicable law).
5.4 Funds of Lender. Any funds of Lender used for any purpose referred to in this
Article 5 shall constitute Advances secured by the Loan Instruments and shall bear interest at the
rate specified in the Note executed in connection with the Loan for which funds are used to be
applicable after default thereunder.
5.5 No Waiver or Exhaustion. No waiver by Lender of any of its rights or remedies
hereunder, in the other Loan Instruments, or otherwise, shall be considered a waiver of any other or
subsequent right or remedy of Lender; no delay or omission in the exercise or enforcement by
Lender of any rights or remedies shall ever be construed as a waiver of any right or remedy of
Lender; and no exercise or enforcement of any such rights or remedies shall ever be held to exhaust
any right or remedy of Lender.
5.6 Role of Lender. Any term or condition hereof, or of any of the Loan Instruments to
the contrary notwithstanding, Lender shall not have, and by its execution and acceptance of this
Loan Agreement hereby expressly disclaims, any obligation or responsibility for the management,
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conduct or operation of the business and affairs of Borrower, and any term or condition hereof, or of
any of the Loan Instruments, permitting Lender to disburse funds, whether from the proceeds of the
Loan, the Borrower's Deposit, or otherwise, or to take or refrain from taking any action with respect
to the Borrower, the Property or any other collateral for repayment of the Loan, shall deem to be
solely to permit Lender to audit and review the management, operation and conduct of the business
and affairs of Borrower, and to maintain and preserve the security given by Borrower to Lender for
each Loan and may not be relied upon by any other person. Further, Lender shall not have, has not
assumed and by its execution and acceptance of this Loan Agreement hereby expressly disclaims
any liability or responsibility for the payment or performance of any indebtedness or obligation of
Borrower, and no term or condition hereof, or of any of the Loan Instruments, shall be construed
otherwise.
Borrower hereby expressly acknowledges that no term or condition hereof, or of any of the
Loan Documents, shall be construed so as to deem the relationship between Borrower and Lender to
be other than that of Borrower and Lender, and Borrower shall at all times represent that the
relationship between Borrower and Lender is solely that of Borrower and Lender. Borrower hereby
indemnifies and agrees to hold Lender harmless from and against any cost, expense or liability
incurred or suffered by Lender as a result of any assertion or claim of any obligation or
responsibility of Lender for the management, operation and conduct of the business and affairs of
Borrower or as a result of any assertion or claim of any liability or responsibility of Lender for the
payment or performance of any indebtedness or obligation of Borrower.
ARTICLE 6 - GENERAL TERMS AND CONDITIONS
6.1 Notices. All notices, demands, requests, approvals and other communications
required or permitted hereunder shall be in writing and shall be deemed to have been given when
deposited in a regularly maintained mail receptacle of the United States Postal Service, postage
prepaid, certified, return receipt requested, addressed to Borrower or Lender, as the case may be, at
the respective addresses set forth on the first page of this Loan Agreement, or such other address as
Borrower or Lender may from time to time designate by written notice to the other as herein
required. Notice given in any other manner shall be deemed effective only if and when received by
the party notified.
6.2 Entire Agreement and Modifications. The Loan Instruments constitute the entire
understanding and agreement between the undersigned with respect to the transactions arising in
connection with each Loan and supersede all prior written or oral understandings and agreements
between the undersigned in connection therewith. No provision of this Loan Agreement or the
other Loan Instruments may be modified, waived, or terminated except by instrument in writing
executed by the party against whom a modification, waiver, or termination is sought to be enforced.
6.3 Severability. In case any of the provisions of this Loan Agreement shall for any
reason be held to be invalid, illegal, or unenforceable, such invalidity, illegality, or unenforceability
shall not affect any other provision hereof, and this Loan Agreement shall be construed as if such
invalid, illegal, or unenforceable provision had never been contained herein.
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6.4 Election of Remedies. Lender shall have all of the rights and remedies granted in
the Loan Instruments and available at law or in equity, and these same rights and remedies shall be
cumulative and may be pursued separately, successively, or concurrently against Borrower or the
Property or any part thereof, at the sole discretion of Lender. The exercise or failure to exercise any
of the same shall not constitute a waiver or release thereof or of any other right or remedy, and the
same shall be nonexclusive.
6.5 Form and Substance. All documents, certificates, insurance policies, and other items
required under this Loan Agreement to be executed and/or delivered to Lender shall be in form and
substance satisfactory to Lender.
6.6 Limitation on Interest. All agreements between Borrower and Lender, whether now
existing or hereafter arising and whether written or oral, are hereby expressly limited so that in no
contingency or event whatsoever, whether by reason of acceleration of the maturity of the Loan , or
otherwise, shall the amount paid, or agreed to be paid to Lender for the use, forbearance, or
detention of the money to be loaned hereunder or otherwise or for the payment or performance of
any covenant or obligation contained herein or in any Note, Deed of Trust or in any other Loan
Instruments, exceed the maximum amount permissible under applicable law. If from any
circumstance whatsoever, fulfillment of any provision hereof or of any such Note, Deed of Trust or
other Loan Instruments, at the time performance of such provision shall be due, shall involve
transcending the limit of validity prescribed by applicable law, then ipso facto, the obligation to be
fulfilled shall be reduced to the limit of such validity, and if from any circumstance the Lender shall
ever receive as interest or otherwise an amount which would exceed the highest lawful rate, such
amount which would be excessive interest shall be applied to the reduction of the principal amount
owing on account of the Loan or on account of any other principal indebtedness of the Borrower to
the Lender, and not to the payment of interest, or if such excessive interest exceeds the unpaid
balance of principal hereof and such other indebtedness, such excess shall be refunded to the
Borrower. All sums paid or agreed to be paid to the Lender for the use, forbearance or detention of
the indebtedness of the Borrower to the Lender shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of such indebtedness until
payment in full so that the actual rate of interest on account of such indebtedness is uniform
throughout the term thereof. The term "applicable law" as used herein means (1) the law pertaining
to maximum rates of interest that is now in effect and (2) any law that comes into effect at any time
in the future allowing a higher maximum interest rate than the law now in effect. The terms and
provisions of this Section will control and supersede every other provision of all agreements
between Borrower and Lender.
6.7 No Third Party Beneficiary. This Loan Agreement is for the sole benefit of Lender
and Borrower and is not for the benefit of any third party.
6.8 Borrower in Control. In no event shall Lender's rights and interests under the Loan
Instruments be construed to give Lender the right to, or be deemed to indicate that Lender is in
control of the business, management or property of Borrower or has power over the daily
management functions and operating decisions made by Borrower..
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6.9 Number and Gender. Whenever used herein, the singular number shall include the
plural and the plural the singular, and the use of any gender shall be applicable to all genders. The
duties, covenants, obligations, and warranties of Borrower in this Loan Agreement shall be joint and
several obligations of Borrower and of each Borrower if more than one.
6.10 Captions. The captions, headings, and arrangements used in this Loan Agreement
are for convenience only and do not in any way affect, limit, amplify, or modify the terms and
provisions hereof.
6.11 Applicable Law. This Loan Agreement and the loan instruments shall be governed
by and construed in accordance with the laws of the State of Texas and the laws of the United States
applicable to transactions within such state.
6.12 INDEMNITY. TO THE EXTENT AUTHORIZED BY LAW, AND SUBJECT TO
FUNDS LEGALLY AVAILABLE FOR THAT PURPOSE, BORROWER HEREBY
EXPRESSLY ACKNOWLEDGES AND RECOGNIZES ITS RESPONSIBILITY FOR AND
AGREES TO INDEMNIFY AND HOLD LENDER AND ITS SUCCESSORS AND ASSIGNS
ABSOLUTELY HARMLESS FROM AND AGAINST ALL COSTS, EXPENSES, LIABILITIES,
LOSS, DAMAGE OR OBLIGATIONS INCURRED BY OR IMPOSED UPON LENDER OR ITS
SUCCESSORS AND ASSIGNS IN CONNECTION WITH THE ASSERTION OF (A) ANY
CLAIM FOR BROKERAGE, AGENCY OR FINDER'S FEES FOR COMMISSIONS IN
CONNECTION WITH THE LOAN; OR (B) ANY CLAIM FOR ATTORNEYS', APPRAISAL,
TITLE INSURANCE, INSPECTION OR OTHER FEES, COSTS AND EXPENSES INCURRED
IN CONNECTION WITH THE NEGOTIATION, CLOSING, ADMINISTRATION,
COLLECTION OR REFINANCING OF THE LOAN, WHICH ARISE BY, THROUGH OR ON
BEHALF OF THE BORROWER OR ANY AGENT OR REPRESENTATIVE OF BORROWER.
WITHOUT INTENDING TO LIMIT THE REMEDIES AVAILABLE TO LENDER WITH
RESPECT TO THE ENFORCEMENT OF ITS INDEMNIFICATION RIGHTS AS STATED
HEREIN OR AS STATED IN ANY LOAN INSTRUMENT, IN THE EVENT ANY CLAIM OR
DEMAND IS MADE OR ANY OTHER FACT COMES TO THE ATTENTION OF LENDER IN
CONNECTION WITH, RELATING OR PERTAINING TO, OR ARISING OUT OF THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, WHICH LENDER
REASONABLY BELIEVES MIGHT INVOLVE OR LEAD TO SOME LIABILITY OF
LENDER, BORROWER SHALL, IMMEDIATELY UPON RECEIPT OF WRITTEN
NOTIFICATION OF ANY SUCH CLAIM OR DEMAND, ASSUME IN FULL THE
PERSONAL RESPONSIBILITY FOR AND THE DEFENSE OF ANY SUCH CLAIM OR
DEMAND AND PAY IN CONNECTION THEREWITH ANY LOSS, DAMAGE,
DEFICIENCY, LIABILITY OR OBLIGATION. IN THE EVENT OF COURT ACTION IN
CONNECTION WITH ANY SUCH CLAIM OR DEMAND, THE BORROWER SHALL
ASSUME IN FULL THE RESPONSIBILITY FOR THE DEFENSE OF ANY SUCH ACTION
AND SHALL IMMEDIATELY SATISFY AND DISCHARGE ANY FINAL DECREE OR
JUDGMENT RENDERED THEREIN. THE LENDER SHALL HAVE THE RIGHT TO JOIN
THE BORROWER AS A PARTY DEFENDANT IN ANY LEGAL ACTION BROUGHT
AGAINST IT, AND THE BORROWER HEREBY CONSENTS TO THE ENTRY OF AN
ORDER MAKING IT A PARTY DEFENDANT TO ANY SUCH ACTION.
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6.13 Survival of Covenants. The covenants hereof shall survive the execution and
delivery of the Loan Instruments. It is agreed that the terms hereof and the terms of the Loan
Instruments shall be cumulative and all such terms shall be construed in a manner that the same are
not inconsistent; provided, however, if a conflict arises, the terms of this Loan Agreement shall
control.
6.14 Assignment. Borrower may assign this Contract only upon written consent of
Lender.
ARTICLE 7 - SPECIAL PROVISIONS
7.1 Continuing Liability. Borrower agrees to develop, construct and complete all of the
Improvements pursuant to the Plans and to the satisfaction of all Governmental Authorities. If
Borrower does not complete the Improvements or if the construction thereof is not satisfactory to
Governmental Authorities having jurisdiction thereon, Lender shall have the option to complete the
Improvements to the satisfaction of the Governmental Authorities. If Lender elects to construct and
complete the Improvements or take such other action as may be necessary to obtain the approval of
the Governmental Authorities for the construction of the Improvements, Borrower promises to pay
to Lender, in addition to any other amounts which may be owing under any of the Loan
Instruments, all sums expended by Lender to complete the Improvements to the satisfaction of the
Governmental Authorities, and such amounts owing to Lender shall be payable on demand and shall
bear interest at the rates provided in the Note secured by the Property on which such Improvements
have been completed by Lender.
7.2 Sales to NSP Eligible Household Requirement. It is the intent of Lender and
Borrower that 100% of the funds made available under NSP are to be used to meet the low and
moderate income requirement established in the (Housing and Economic Recovery Act Section
2301 (f)(3)(A) (i) and (ii) of 2008.) The low and moderate income requirement includes individuals
and families whose incomes do not exceed 120% of area median income as defined therein.
Such individuals and families will be considered an Eligible Household, as determined by
Beneficiary as stated herein and in accordance with any other corresponding provision of federal
law or provisions of succeeding laws as may be amended from time to time. The determination
of whether a purchaser is an Eligible Household shall be made by Beneficiary, in its sole
absolute discretion.
7.3 Counterparts. This Agreement and any amendments hereto may be executed in
several counterparts, each of which shall be deemed to be an original copy, and all of which
together shall constitute one agreement binding on all parties hereto, notwithstanding that all the
parties shall not have signed the same counterpart.
7.4 NSP Contract. Each term and provision of this Construction Loan Agreement is
expressly subject to the terms and condition of the Neighborhood Stabilization Program Contract
Number 77099999126 ( "Contract ") executed between Lender herein and Borrower herein, dated
to be effective September 1, 2009 in the original principal sum of $1,050,000.00, as increased
and amended, and as may be further amended from time to time, upon written request and
express approval under the Neighborhood Stabilization Program which is incorporated herein by
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reference. The lot or lots securing this loan must be improved with a single family dwelling
completed in good and workmanlike manner and sold to an Eligible Household who will
maintain the affordability period for rental or homeownership in accordance with the NSP. The
terms of the NSP contract shall govern over any conflicting provision hereof.
THIS WRITTEN CONSTRUCTION LOAN AGREEMENT, AND ANY OTHER
WRITTEN AGREEMENTS SIGNED CONTEMPORANEOUSLY WITH THE SIGNING
HEREOF REPRESENT 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.
EXECUTED AND DELIVERED as of the date first recited.
LENDER:
TEXAS DEPARTMENT OF HOUSING AND
COMMUNITY AFFAIRS, a public and official
agency of the State of j as
By:
Name: onw_KARAIKE
Its: Duly authorized representative
•
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BORROWER:
CITY OF HUNTSVILLE, a political subdivision
of the State of Texas
By:
Name: Bill Baine
Title: City Manager
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EXHIBITS
A - CONDITIONS TO FIRST ADVANCE
B - APPLICATION FOR ADVANCE - FOR REHABILITATION ( "APPLICATION FOR
ADVANCE ")
C - APPLICATION AND CERTIFICATE FOR PAYMENT
D - AFFIDAVIT OF COMPLETION
E - WAIVER AND SUBORDINATION OF MECHANIC'S LIEN CLAIMS
F - RESOLUTION EXHIBIT CERTIFICATE
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EXHIBIT A
CONDITIONS TO FIRST ADVANCE
1. The original, executed Note
2. Certified copy of the executed Deed of Trust
3. Approved Budget
4. The Title Insurance Policy
5. The Plans and Final draft of Construction Contracts
6. The Survey
7. Financing Statements (Form UCC -1) with respect to the security interest granted in the Loan
Instruments, together with evidence of the priority of the respective security interests perfected
thereby
8. Intentionally omitted
9. Building permit and all other permits required by the Governmental Requirements with
respect to the construction and development of the Property, if applicable
10. Evidence that all applicable zoning ordinances or restrictive covenants affecting the
Property permit the use for which the Property is intended and have been or will be complied with
11. Evidence of the Property's compliance with the requirements of all applicable
"environmental protection" laws, rules, and regulations, whether federal, state, or municipal
12. Evidence that all of the streets providing access to the Property either have been dedicated to
public use or established by private easement, duly recorded in the records of the County in which
the Property is located, and have been fully installed and accepted by Governmental Authority, that
all costs and expenses of the installation and acceptance thereof have been paid in full, and that
there are no restrictions on the use and employment of such streets that adversely affect, limit, or
impair Borrower's ability to develop and construct the Property or operate the Property for the
purposes and in the manner represented to Lender
13. Evidence of the availability of all utilities to the Property, including specifically, but without
limitation, gas, electricity, sewer, and water services
14. Evidence that all necessary action on the part of Borrower has been taken with respect to the
execution and delivery of this Loan Agreement and the consummation of the transaction
contemplated hereby, so that this Loan Agreement and all Loan Instruments to be executed and
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delivered by or on behalf of Borrower will be valid and binding upon Borrower or the person or
entity executing and delivering such document; specifically the Loan Instruments have been duly
authorized, executed and recorded or filed in accordance with applicable Governmental
Requirements and original counterparts thereof delivered to Lender, all before the commencement
of construction of the Improvements, the placing of any materials or supplies on the Lots(s), the
execution or recording of any Construction Contracts (written or oral) for any of the same or the
performance of any other act which could rise to a lien claim equal or superior to the liens and
security interests created by the Loan Instruments.
15. The Insurance Policies or Certificates of such Insurance Policies
16. Application for Advance
17. Application and Certificate for Payment
18. Certified resolutions of the board of directors of Borrower authorizing such corporation to
execute the Loan Instruments and perform its obligations thereunder
19. Tax or assessment certificates or other similar evidence of payment from all appropriate
bodies or entities which have taxing or assessing authority over any of the Property, stating that all
taxes and assessments are current
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r
Date:
EXHIBIT `B"
APPLICATION FOR ADVANCE FOR REHABILITATION
( "Application for Advance ")
Department: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
( "TDHCA "), a public and official agency of the State of Texas
Draw Request No.:
Requested Advance: $
(less retainage) $
Amount to be Funded: $
BORROWER: CITY OF HUNTSVILLE, a political subdivision of the State of Texas
PROJECT: Acquisition and rehabilitation of one (1) single family dwelling on property located
in Walker County, Texas more specifically described as:
LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND ADDITION No.
3, a subdivision within the City of Huntsville, P. Gray League, A -24, Walker
County, Texas according to the map or plat thereof recorded in Volume 1 Page 6
of the Plat Records, Walker County, Texas, with a property address of: 2001
Normal Park Drive, Huntsville, Walker County, Texas 77340
1. This application and the items accompanying this application (which are incorporated herein
for all purposes) are delivered pursuant to the Loan Agreement dated , 2011
between TDHCA and Borrower (the "Agreement"), each of the defined terms in the Loan
Agreement has the same meaning when used herein or in the attachments unless indicated
otherwise. Borrower hereby certifies to TDHCA that this application is true and correct in all
respects and that this application and every item incorporated herein are genuine; and Borrower
agrees that TDHCA may rely upon same in making the requested advances.
2. Borrower hereby requests to draw the principal amount of and
00 /100 Dollars ($ ) (the "Requested Advance ") less 10% required in the
amount of $ ( "Retainage "), for the total of and /100
Dollars ($ )( "Amount to be Funded ") from TDHCA during the normal business
hours, which when drawn will cause the balance remaining to be drawn on the Loan to
and 00 /100 Dollars ($ ), an amount which does not
exceed the committed sum. There is no minimum dollar amount per draw.
3. On the date hereof, and at the time the Amount to be Funded is to be made, (a) the
representations and warranties made in the Agreement and/or certificates delivered pursuant thereto
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are and will be true and correct in all material respects, (b) no Default or Event of Default has or
will have occurred and is or will be continuing, and (c) Borrower has performed all acts required in
the Loan Instruments to have been previously performed by Borrower.
4. All proceeds of all previous Advances have been, and the proceeds of the Amount to be
Funded will be spent only for Approved Costs and only for the purposes specified in all
Applications for Advance, and accompanying items, heretofore or herewith to TDHCA.
5. The sum of (a) the balance of the sums to be advanced by TDHCA under the Agreement
plus, (b) all other funds of Borrower available therefore and set aside in a manner which TDHCA
has indicated is satisfactory to it, will enable Borrower to complete the construction of the Project in
substantial accordance with the Plans.
6. All obligations for labor, materials, and other costs heretofore incurred by or on behalf of
Borrower in connection with the construction of the Project and included (a) in any previous
Advance have been paid, and (b) in the Requested Advance will be promptly paid upon
disbursement of the Amount to be Funded under said Requested Advance. Absolute ownership of
all materials, equipment, fixtures and other property heretofore incorporated in the construction of
the Project or otherwise installed therein or on the Real Property and paid for by Borrower with the
process of a previous Advance or otherwise is vested in Borrower, free and clear of all rights therein
of others except TDHCA or other persons holding rights under any Permitted Encumbrance.
Neither Borrower, nor any agent of Borrower, has been served with any notice, written or oral, that
a lien will be claimed for any amount unpaid for materials delivered, labor performed, or services
provided in connection with the construction of all or any portion of the Project, other than those
bonded against pursuant to the Agreement, a complete description of which, if any, is set forth on a
schedule annexed hereto; and, to the best of the undersigned's knowledge, no basis exists or the
filing or any other mechanic's liens with respect to all or any part of the Real Property for the
Proj ect.
BORROWER:
CITY OF HUNTSVILLE, a political subdivision
of the State of Texas
By:
Name: Bill Baine
Title: City Manager
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EXHIBIT C
APPLICATION AND CERTIFICATE FOR PAYMENT
Draw No.
Borrower: CITY OF HUNTSVILLE, a political subdivision of the State of Texas
Address: 1212 Avenue M, Huntsville, Walker County, Texas 77340
Project: Acquisition and construction of one (1) single family dwelling in the City of
Huntsville, Walker County, Texas, LOT NINE (9), BLOCK TWENTY -FOUR
(24) of HIGHLAND ADDITION No. 3, a subdivision within the City of
Huntsville, P. Gray League, A -24, Walker County, Texas according to the map or
plat thereof recorded in Volume 1 Page 6 of the Plat Records, Walker County,
Texas, with a property address of:
2001 Normal Park Drive, Huntsville, Walker County, Texas 77340.
BORROWER'S APPLICATION FOR PAYMENT
A. Original Construction Loan Amount
(Original Note amount minus
Acquisition costs) $6,797.65
B. Total Amount Drawn to Date $
C. Total Retainage Held to Date $
D. Current Balance Funded (A -B) $
E. Amount of Current Request $
F. Less Required Retainage $
G. Amount to be Funded This Draw (E -F) $
H. Remaining Balance [A- (B +G)] $
The undersigned Borrower certifies that to the best of the Borrower's knowledge, information
and belief, the work covered in this application for payment has been, or will be, completed in
accordance with the Loan Approval and Loan Agreement, Security Documents and the
Construction Loan Agreement; that all amounts to have been, or will be, paid by the Borrower
for work for which previous certificates for payment were issued and payments received from
the Owner; that current payments received from the Department will be utilized in accordance
with the Loan Approval and Loan Agreement, Security Documents and the Construction Loan
Agreement; and that the current draw is now due.
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BORROWER:
CITY OF HUNTSVILLE, a political subdivision
of the State of Texas
By:
Name: Bill Baine
Title: City Manager
Date:
ACKNOWLEDGEMENT OF RECEIPT
TEXAS DEPARTMENT OF HOUSING
AND COMMUNITY AFFAIRS, a public and
official agency of the State of Texas
By:
Name:
Its:
Date:
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otE
Ili �o iwt
'I' 7 F, p INTERIM CONSTRUCTION DEED OF TRUST
%t1 (WITH SECURITY AGREEMENT AND ASSIGNMENT OF RENTS)
tv `4" to 0 ( "Deed of Trust ")
O F-
g(s
NEIGHBORHOOD STABILIZATION PROGRAM
a„,....._,
cc a"` ova ding Federal Agency: United States Department of Housing and Urban Development
U TDHCA Federal Award Number: B- 08 -DN -48 -0001
Federal Award Year (Year of Award from HUD to TDHCA): 2008
* TDHCA Award Year (Year of TDHCA Board Approval): 2009
0
Q
0
THE STATE OF TEXAS
COUNTY OF WALKER
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING
INFORMATION FROM ANY 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.
ARTICLE I
Definitions
The following terms shall have the respective meanings assigned to them when used
herein.
1.01 Grantor: CITY OF HUNTSVILLE, a political subdivision of the State of Texas
1.02 Grantor's mailing address: 1212 Avenue M, Huntsville, Walker County, Texas 77340
1.03 Beneficiary: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY
AFFAIRS, a public and official agency of the State of Texas, and any lawful owner, holder,
pledgee, or assignee of any indebtedness secured hereby.
1.04 Beneficiary's mailing address: P.O. Box 13941, Austin, Travis County, Texas 78711-
3941.
1.05 Trustee: Timothy K. Irvine of Travis County, Texas.
1.06 Mortgaged Property: The Real Property and the Personal Property.
1.07 Proiect: Single - family dwelling to be constructed or rehabilitated on the Real Property.
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1.08 NSP: Neighborhood Stabilization Program or ( "Program ") as authorized by the Housing
and Economic Recovery Act of 2008 as an adjunct to the Community Development Block Grant
Program. (Housing and Economic Recovery Act of 2008, Pub. L. 110 -289, 112 STAT 2850.)
1.09 NOFA: Notice of Funding Availability issued by TDHCA for the NSP issued in 2009.
1.10 NOFA -R: Notice of Funding Availability Re- Allocation.
1.11 NOFA -R- SERIES 2: Neighborhood Stabilization Program Re- allocation — Series 2
(NSPR- Series 2) issued in 2010.
1.12 Eligible Household: Individual or families whose income[s] do not exceed 120% of
area median income ( "AMI ") as defined in the Housing and Economic Recovery Act 2301
(f)(3)(A)(i) and (ii) of 2008.
1.13 Financing Mechanisms: Mechanisms that provide affordable homeownership
opportunities to assist homebuyers to purchase and redevelop a foreclosed property at a discount
and/or rehabilitate the property as defined in the Housing and Economic Recovery Act 2301
(c)(3)(A) of 2008 and the Beneficiary.
1.14 Real Property: The real property more specifically described as:
LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND ADDITION No. 3, a
subdivision within the City of Huntsville, P. Gray League, A -24, Walker County, Texas
according to the map or plat thereof recorded in Volume 1 Page 6 of the Plat Records, Walker
County, Texas, together with (i) all improvements thereon, all rights, hereditaments and
appurtenances belonging thereto including rights of ingress and egress, easements, licenses, and
all reversionary rights or interests of Grantor; (ii) all fixtures and personal property now or
hereafter attached to the Real Property; (iii) all renewals or replacements thereof or articles in
substitution therefore, whether or not now or later attached to the Project in any manner; and (iv)
all other interests of every kind which Grantor now has or at any time hereafter acquires in and to
the Real Property.
1.15 Personal Property: (i) all furniture, equipment and other personal property now or
hereafter owned by Grantor, located on the Mortgaged Property, and all renewals or
replacements thereof or articles in substitution therefore, whether or not the same are or shall be
attached to the Project in any manner; (ii) all building materials and equipment now or hereafter
delivered to the Mortgaged Property and all building and construction materials, equipment and
parts intended to be installed in or on the Real Property or Project; (iii) all plans and
specifications for the Project; (iv) all contracts and subcontracts relating to the Project; (v) all
deposits (including tenant's security deposits, if any), funds, accounts (including any accounts in
which escrows are deposited as a reserve for the payment of taxes, assessments and insurance on
the Mortgaged Property), contract rights, instruments, documents, general intangibles (including
trademarks, trade names and symbols used in connection therewith), and notes or chattel paper
arising from or by virtue of any transactions related to the Mortgaged Property; (vi) all permits,
licenses, franchises, certificates, and other rights and privileges obtained in connection with the
Mortgaged Property; (vii) all bank accounts in which rental income from the Mortgaged Property
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is deposited; (viii) all proceeds arising from or by virtue of the sale, lease or other disposition of
any of the Real or Personal Property; (ix) all proceeds (including premium refunds) payable or to
be payable under each policy of insurance relating to the Project; (x) all proceeds arising from
the taking of all or a part of the Real Property or any rights appurtenant thereto, including change
of grade of streets, curb cuts or other rights of access, for any public or quasi - public use under
any law, or by rights of eminent domain, or by private or other purchase in lieu thereof; (xi) all
other interests of every kind and character which Grantor now has or at any time hereafter
acquires in and to the Personal Property and all property which is used or useful in connection
therewith.
1.16 Construction Loan Agreement: The NSP Construction Loan Agreement ( "Loan
Agreement") executed by and between Grantor (Borrower in Loan Agreement or the maker of
the Note if different from Grantor) and Beneficiary (Lender in Loan Agreement), dated June 6,
2011, and amended of even date herein, which Loan Agreement sets forth, among other things,
the procedure and requirements for disbursing the loan proceeds to be evidenced by the Note.
1.17 Note: The NSP promissory note ( "Note ") of even date herewith executed by Grantor
payable to the order of Beneficiary in the original principal sum of $110,188.25 payable as
therein provided and finally maturing August 31, 2012, and all modifications, extensions and
renewals thereof.
1.18 Loan Documents: The NSP Note, this Deed of Trust, the Construction Loan Agreement,
and any and all other documents or instruments heretofore or hereafter executed by Grantor (or
the maker of the Note if different from Grantor) securing, evidencing or in any way pertaining to
the indebtedness evidenced by the Note and hereafter are the ( "Loan Documents. ")
1.19 Governmental Requirements. All laws, ordinances, statutes, codes, rules, regulations,
orders and decrees of the United States, the state, the county, the city, or any other political
subdivision in which the Mortgaged Property is located, and any other political subdivision,
agency or instrumentality exercising jurisdiction over Grantor or the Mortgaged Property
including, without limitation, the following: the Civil Rights Act of 1964 (42 U.S.C. 2000(d);
Executive Order 11063, as amended by Executive Order 12259; Executive Order 11246; Age
Discrimination Act of 1975 (42 U.S.C. 6101 et seq.); Equal Credit Opportunity Act (15 U.S.C.
1691 et seq.); Fair Credit Reporting Act (15 U.S.C. 1681 et seq.); Fair Housing Act (42 U.S.C.
3601 et seq.); the Americans with Disabilities Act of 1990 (P.L. 101 -336); of the Rehabilitation
Act of 1973 (29 U.S.C. 794) and implementing regulations (24 CFR Part 8); Architectural
Barriers Act of 1968 (42 U.S.C. 4151 et seq.); Federal Drug Free Workplace Act of 1988 and the
regulations promulgated thereunder including, without limitation, 54 CFR Part 4956, Section 3
of the Housing and Urban Development Act of 1968; Executive Orders 11625, 12432 and 12138,
as amended; the Copeland "Anti- Kickback" Act (18 U.S.C. § 874 et seq.); the Davis -Bacon Act
(40 U.S.C. § 276a et seq.); Sections 103 and 107 of the Work Hours and Safety Standards Act.
(40 U.S.C. § 327 et seq.); the Uniform Relocation Assistance and Real Property Acquisition
Policies Act (42 U.S.C. § 4201 et seq.); the Housing and Community Development Act of 1974;
the National Environmental Policy Act (42 U.S.C. § 4321 et seq.); ( "NEPA "); the Lead -Based
Paint Poisoning Prevention Act (42 U.S.C. § 4321 et seq.); The Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970; the State of Texas Senate Bill 1356; Title 8,
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and Chapter 92 of the Texas Property Code; Solid Waste Disposal Act TEX. HEALTH &
SAFETY CODE Ann. Ch. 361; Comprehensive Municipal Solid Waste Management, Resource
Recovery, and Conservation Act. TEX. HEALTH & SAFETY CODE Ann. Ch 363; County
Solid Waste Control Act. TEX. HEALTH & SAFETY CODE Ann. Ch 364; Texas Clean Air
Act, TEX. HEALTH AND SAFETY CODE Ann. Ch.; and Hazardous Communication Act,
TEXAS HEALTH AND SAFETY CODE Ann. Ch. 502; and such Governmental Requirements
as may be from time to time amended or superseded and all of their implementing regulations, as
may be amended.
1.20 Anti - Terrorism Laws. Any and all present and future judicial decisions, statutes,
rulings, rules, regulations, permits, certificates, orders and ordinances of any Governmental
Authority relating to terrorism or money laundering, including, without limiting the generality of
the foregoing, the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001 (Pub. L. No. 107 -56); the Trading the Enemy
Act (50 U.S.C.A. App. 1, et seq.); the International Emergency Economic Powers Act (50 U. S.
C. A. §1701 -06); Executive Order No. 13224 on Terrorist Financing, effective September 24,
2001 (relating to "Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threatened to Commit, or Support Terrorism ") and the United States Treasury Department's
Office of Foreign Assets Control list of "Specifically Designated National and Blocked Persons"
(as published from time to time in various mediums, including, without limitation, at
http:www.treas. gov/ofac/tllsdn.pdf).
1.21 Prohibited Person. Any person or entity that (i) is specifically named or listed in, or
otherwise subject to, any Anti- Terrorism Laws, (ii) is owned or controlled by, or acting for or on
behalf of any person or entity specifically named or listed in, or otherwise subject to, any Anti -
Terrorism Laws, (iii) Beneficiary is prohibited from dealing with, or engaging in any transaction
with, pursuant to an Anti- Terrorism Laws, or (iv) is affiliated with any person or entity described
in clauses (i) - (iii) of this definition.
1.22 Environmental Laws and Regulations. Any federal, state, or local law, statute,
ordinance, or regulation, whether now or hereafter in effect, pertaining to health, industrial
hygiene, or the environmental conditions on, under, or about the Land or the Improvements,
including without limitation, the following, as now or hereafter amended, Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 ( "CERCLA "), 42 U.S.C.A.
§9601 et seq.; Resource, Conservation and Recovery Act ( "RCRA "), 24 U.S.C.A. §6901 et seq.
as amended by the Superfund Amendments and Reauthorization Act of 1986 ( "SARA "), Pub. L.
No. 99 -499, 100 Stat. 1613; the Toxic Substances Control Act, 15 U.S.C.A. §2601 et seq.;
Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C.A. §1101 et seq.;
Clean Water Act ( "CWA "), 33 U.S.C.A. §1251 et seq., Clean Air Act ( "CAA "), 42 U.S.C.A.
§7401 et seq.; Federal Water Pollution Control Act ( "FWPCA "), 33 U.S.C.A. §1251 et seq.; );
Protection of Wetlands (Executive Order 11990, Mary 24, 1977); Coastal Management Act
(Sections 307 (c) and (d)); Safe Water Driving Act (42 U.S.C. 201, 300(0 and 21U.S.C. 349);
Protection of the Environment, Sole Source Aquifers (40 CFR 149); Endangered Species Act (50
CFR 402); Wild and Scenic Rivers Act (16 U.S.C. 1271 et seq. as amended, particularly section
7(b) and (c)); Farmland Protection Policy Act (7 CFR 658); Federal Actions to Address
Environmental Justice in Minority Populations and Low Income Populations (Executive Order
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12898, February 11, 1994); Parts of Environmental Review Procedures for Entities Assuming
HUD Environmental Responsibilities: Noise Abatement and Control (24 CFR 51B); Explosive
and Flammable Operations (24 CFR 51C); Toxic Chemicals and Radioactive Materials (24 CFR
58.5(a); Airport Clear zones and Accident Potential Zones (24 CFR51 D); and any corresponding
state laws or ordinances including but not limited to the Texas Water Code ( "TWC ") §26.001 et
seq.; Texas Health & Safety Code ( "THSC ") §361.001 et seq.; Texas Solid Waste Disposal Act,
Tex. Rev. Civ. Stat. Ann. Art. 4477 -7; and regulations, rules, guidelines, or standards
promulgated pursuant to such laws, statute and regulations, as such statutes, regulations, rules,
guidelines, and standards are amended from time to time.
The environmental effects of each activity carried out with funds provided under the
NSP program must be assessed in accordance with the provisions of the Texas NSP NOFA,
National Environmental Policy Act of 1969 (NEPA) and the related activities listed in HUD's
implementing regulations at 24 CFR Parts 50, 51, 55 and 58. Each such activity must have an
environmental review completed and support documentation prepared complying with the
National Environmental Policy Act of 1969 and regulations at 24 CFR Parts 50, 51, 55 and Part
58. No funds may be requested or committed to an activity before the completion of the
environmental review process, including the requirements of 24 CFR §58.6, and written
clearance has been provided by the Department.
1.23 Permitted Exceptions. The exceptions from coverage found in Schedule B of the
commitment for mortgagee policy of title insurance issued by Stewart Title Guaranty Company,
GF #201201084, issued to Beneficiary herein on January 31, 2012.
ARTICLE II
Conveyance in Trust
2.01 Grant. Grantor, for and in consideration of the debt evidenced by the Note, has granted,
assigned, and conveyed, and by these presents does grant, assign and convey the Mortgaged
Property, in trust unto the Trustee, his successors and assigns, to have and to hold the Mortgaged
Property, unto Trustee, his successors and assigns, forever. To the extent permitted by law, the
Personal Property shall be deemed to be a part of and affixed to the Real Property. In the event
the estate of the Grantor in and to any of the Mortgaged Property is a leasehold estate, this
conveyance shall include and the lien and security interest and assignment created hereby shall
encumber and extend to all other, further or additional title, estates, interest or rights which may
exist now or at any time be acquired by Grantor in or to the property demised under the lease
creating such leasehold estate and including Grantor's rights, if any, to purchase the property
demised under such lease and, if fee simple title to any of such property shall ever become vested
in Grantor, such fee simple interest shall be encumbered by this Deed of Trust in the same
manner as if Grantor had fee simple title to such property as of the date of execution hereof.
Grantor hereby binds itself, its successors and assigns, to warrant and forever defend the
Mortgaged Property unto Trustee, his successors and assigns, against every person whomsoever
lawfully claiming or to claim the same or any part thereof.
2.02 Security. This conveyance is made in trust, however, to secure and enforce the payment
of the Note, the obligations of Grantor (and/or the maker of the Note, if different from Grantor)
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under the other Loan Documents and payment of the Other Indebtedness as defined herein. If
Grantor shall perform the covenants and agreements herein contained, then, and only then, this
conveyance shall become null and void and shall be released at Grantor's expense; otherwise it
shall remain in full force and effect. No release of this conveyance, or of the lien or security
interest or assignment created and evidenced hereby, shall be valid unless executed by
Beneficiary.
2.03 Other Indebtedness. This Deed of Trust shall secure, in addition to the Note, all funds
hereafter advanced by Beneficiary to or for the benefit of Grantor as contemplated by any
provision herein or for any other purpose, and all Other Indebtedness, of whatever kind or
character, owing or which may hereafter become owing by Grantor to Beneficiary, whether such
indebtedness is evidenced by note, open account, overdraft, endorsement, surety agreement,
guaranty, or otherwise, it being contemplated that Grantor may hereafter become indebted to
Beneficiary in further sum or sums ( "Other Indebtedness "); provided, however, in no event shall
this Deed of Trust secure payment of any installment loan or any open -end line of credit
established under Chapter 3, Chapter 4 or Chapter 15 of the Texas Finance Code. This Deed of
Trust shall also secure all renewals and extensions of any of the Other Indebtedness secured
hereby. If the Note or Other Indebtedness shall be collected by legal proceedings, whether
through a probate or bankruptcy court or otherwise, or shall be placed in the hands of an attorney
for collection after maturity, whether matured by the expiration of time or by any option given to
the Beneficiary to mature same, Grantor agrees to pay Beneficiary's attorney's and collection fees
in the amount set forth in the Note, and such fees shall be a part of the indebtedness secured
hereby.
ARTICLE III
Grantor's Covenants and Representations
Grantor hereby covenants, warrants and represents to and agrees with Beneficiary and
with Trustee as follows:
3.01 Payment and Performance. Grantor (i) will pay all of the indebtedness secured hereby,
together with the interest thereon, when the same shall become due, in accordance with the terms
of the Note or any other instrument evidencing, securing, or pertaining to such indebtedness or
evidencing any renewal or extension of such indebtedness, or any part thereof, and (ii) will
punctually and properly perform all of Grantor's covenants, obligations, and liabilities under any
other security agreement, mortgage, deed of trust, collateral pledge agreement, contract,
assignment, loan agreement or any other instrument or agreement of any kind now or hereafter
existing as security for, executed in connection with, or related to the indebtedness or other
obligations secured hereby, or any part thereof.
3.02 Title and Right to Convey. Grantor (i) has in its own right good and indefeasible title in
fee simple, except as otherwise provided herein, to the Mortgaged Property which is free from
encumbrance superior to the indebtedness hereby secured, except as otherwise provided herein,
and (ii) has full right to make this conveyance.
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3.03 Insurance. Grantor shall require the builder and/or its general contractor to obtain and
maintain at said builder's and/or general contractor's sole expense: (1) all -risk insurance with
respect to all insurable Mortgaged Property, against loss or damage by fire, lightning, windstorm,
explosion, hail, tornado and such hazards as are presently included in so- called "all -risk"
coverage and against such other insurable hazards as Beneficiary may reasonably require; in an
amount not less than the unpaid balance of the Note, or if available and requested by Beneficiary
100% of the full replacement cost, including the cost of debris removal, without deduction for
depreciation and sufficient to prevent Grantor and Beneficiary from becoming a coinsurer, such
insurance to be in Builder's Risk (non- reporting) form during and with respect to any
construction on the Real Property; (2) if and to the extent any portion of the Project is in a
special flood hazard area, a flood insurance policy in an amount equal to the lesser of the
principal face amount of the Note or the maximum amount available; (3) commercial general
liability insurance, on an "occurrence" basis, against claims for bodily injury, death or property
damage occurring on or about the Project, to afford protection in a "single limit" of not less than
$1,000,000 in the event of bodily injury to, or death of, any number of persons or of damage to
property arising out of one occurrence, for the benefit of Grantor and Beneficiary as named
insured; and (4) such other insurance on the Mortgaged Property as may from time to time be
reasonably required by Beneficiary, if available, (including but not limited to rent loss or boiler
and machinery insurance) and against other insurable hazards or casualties which at the time are
commonly insured against in the case of premises similarly situated, due regard being given to
the height, type, construction, location, use and occupancy of buildings and improvements. All
insurance policies shall be issued and maintained by insurers, in amounts, with deductibles, and
in form reasonably satisfactory to Beneficiary, and shall require not less than fifteen (15) days'
prior written notice to Beneficiary of any cancellation or change of coverage. All insurance
policies maintained, or caused to be maintained, by Grantor with respect to the Mortgaged
Property, except for public liability insurance, shall provide that each such policy shall be
primary without right of contribution from any other insurance that may be carried by Grantor or
Beneficiary and that all of the provisions thereof, except the limits of liability, shall operate in
the same manner as if there were a separate policy covering each insured. If any insurer which
has issued a policy of hazard, liability or other insurance required pursuant to this Deed of Trust
becomes insolvent or the subject of any bankruptcy, receivership or similar proceeding or if in
Beneficiary's reasonable opinion the financial responsibility of such insurer is or becomes
inadequate, Grantor shall, in each instance promptly upon the request of Beneficiary and at
Grantor's expense, obtain and deliver to Beneficiary a like policy (or, if and to the extent
permitted by Beneficiary, a certificate of insurance) issued by another insurer, which insurer and
policy meet the requirements of this Deed of Trust. All such policies for loss of or damage to the
Mortgaged Property shall contain a standard mortgage clause (without contribution) naming
Beneficiary as mortgagee with loss proceeds payable to Beneficiary notwithstanding (i) any act,
failure to act or negligence of or violation of any warranty, declaration or condition contained in
any such policy by any named insured; (ii) the occupation or use of the Mortgaged Property for
purposes more hazardous than permitted by the terms of any such policy; (iii) any foreclosure or
other action by Beneficiary under this Deed of Trust; or (iv) any change in title to or ownership
of the Mortgaged Property or any portion thereof, such proceeds to be held for application as
provided in this Deed of Trust. A copy of each initial insurance policy (or a satisfactory
certificate of insurance) shall be delivered to Beneficiary at the time of execution of this Deed of
Trust, with premiums fully paid, and each renewal or substitute policy (or certificate) shall be
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delivered to Beneficiary, with premiums fully paid, at least ten (10) days before the termination
of the policy it renews or replaces. Grantor shall pay all premiums on policies required
hereunder as they become due and payable and promptly deliver to Beneficiary evidence
satisfactory to Beneficiary of the timely payment thereof. If any loss occurs at any time when
Grantor has failed to perform Grantor's covenants and agreements in this section, Beneficiary
shall nevertheless be entitled to the benefit of all insurance covering the loss and held by or for
Grantor, to the same extent as if it had been made payable to Beneficiary. Upon any foreclosure
hereof or transfer of title to the Mortgaged Property in extinguishment of the whole or any part
of the secured indebtedness, all of Grantor's right, title and interest in and to the insurance
policies referred to in this section (including unearned premiums) and all proceeds payable
thereunder shall thereupon vest in the purchaser at foreclosure or other such transferee, to the
extent permissible under such policies. Beneficiary shall have the right (but not the obligation)
to receive the proceeds of, all insurance for loss of or damage to the Mortgaged Property. If
Grantor fails to act reasonably and promptly in making proof of loss for, or settling or adjusting
any claim under, any such insurance, then Beneficiary shall have the right to make such proof
and settle and /or adjust, such claim; and the expenses incurred by Beneficiary in the adjustment
and collection of insurance proceeds shall be a part of the secured indebtedness and shall be due
and payable to Beneficiary on demand. Beneficiary shall not be, under any circumstances, liable
or responsible for failure to collect or exercise diligence in the collection of any of such proceeds
or for the obtaining, maintaining or adequacy of any insurance or for failure to see, to the proper
application of any amount paid over to Grantor. Any such proceeds received by Beneficiary
shall, after deduction therefrom of all reasonable expenses actually incurred by Beneficiary,
including attorneys' fees, at Beneficiary's option be (a) released to Grantor, or (b) applied (upon
compliance with such reasonable terms and conditions as may be required by Beneficiary) to
repair or restoration, either partly or entirely, of the Mortgaged Property so damaged, or (c)
applied to the payment of the secured indebtedness in such order and manner as Beneficiary, in
its sole discretion, may elect, whether or not due; provided, however, that Beneficiary shall make
such proceeds available to Grantor to pay for restoration or repair of the Mortgaged Property, so
damaged, if either (i) the amount of such proceeds is less than $25,000.00, or (ii) Grantor agrees
to reasonable, Construction Loan provisions (primarily regarding advances of those proceeds and
Beneficiary's "pricing" of its activities and expenses connected therewith) and amendments to the
Loan Documents executed in connection with the Note, as then proposed by Beneficiary. In any
event, the unpaid portion of the secured indebtedness shall remain in full force and effect and the
payment thereof shall not be excused. Grantor shall at all times comply with the requirements of
the insurance policies required hereunder and of the issuers of such policies and of any board of
fire underwriters or similar body as applicable to or affecting the Mortgaged Property.
3.04 Taxes and Other Impositions. Grantor will pay all taxes and assessments against or
affecting the Mortgaged Property as the same become due and payable, and, if Grantor fails to do
so, Beneficiary may pay them, together with all costs and penalties thereon, at Grantor's expense
or out of an individual reserve account created to fund any necessary repairs for Mortgaged
Property maintained by a first lien lender or bank trustee. Grantor, however, may in good faith,
in lieu of paying such taxes and assessments as they become due and payable, contest by
appropriate proceedings the validity thereof, and pending such contest Grantor shall not be
deemed in default hereunder because of such nonpayment, (i) if prior to delinquency of the
asserted tax or assessment, Grantor furnishes Beneficiary an indemnity bond, conditioned that
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such tax or assessment with interest, cost and penalties be paid as herein stipulated, secured by a
deposit in cash, or security or surety acceptable to Beneficiary, in the amount of the contested tax
or assessment, and a reasonable additional sum to pay all possible costs, interest and penalties
imposed or incurred in connection therewith, and (ii) if Grantor promptly pays any amount
adjudged by a court of competent jurisdiction to be due, with all costs, penalties and interest
thereon, before such judgment becomes final or before any writ or order is issued under which
the Mortgaged Property may be sold pursuant to such judgment, whichever first occurs.
Grantor shall provide to Beneficiary, on or before January 31 of each year during the term of the
Note secured hereby, written evidence that all ad valorem taxes and other assessments against
the Mortgaged Property have been paid in full.
3.05 Tax and Insurance Escrow. Intentionally omitted.
3.06 Assignment of Awards. If the lien secured by this Deed of Trust is first and superior,
Grantor will hereby assign all judgments, decrees and awards for injury or damage to the
Mortgaged Property, all awards or settlements pursuant to proceedings for condemnation thereof,
in their entirety to Beneficiary, who may apply the same to the indebtedness secured hereby in
such manner as it may elect. Grantor will further hereby authorize Beneficiary to execute and
deliver valid acquittances for, and to appeal from, any such award, judgment or decree in the
name of Grantor. In the event Beneficiary, as a result of any such judgment or decree of award,
believes that the payment or performance of any obligation secured by this Deed of Trust is
impaired, Grantor authorizes Beneficiary to declare, without notice, all of the indebtedness
secured hereby immediately due and payable.
3.07 Trustee's Title and Future Laws. If, while this trust is in force, the title of Trustee to,
or the interest of Beneficiary in, the Mortgaged Property or any part thereof, shall be endangered
or shall be attacked directly or indirectly, Grantor authorizes Beneficiary, at Grantor's expense, to
take all necessary and proper steps for the defense of such title or interest, including the
employment of counsel, the prosecution or defense of litigation, and the compromise or
discharge of claims made against such title or interest. If at any time any law shall be enacted
imposing or authorizing the imposition of any tax upon this Deed of Trust, or upon any rights,
titles, liens, or security interests created hereby, or upon the Note, or any part thereof, Grantor
shall immediately pay all such taxes. In the alternative, Grantor may, in the event of the
enactment of such a law, and must, if it is unlawful for Grantor to pay such taxes, prepay the
Note and the Other Indebtedness in full within sixty (60) days after demand therefore by
Beneficiary. Grantor shall at any time and from time to time, furnish promptly, upon request, a
written statement or affidavit, in such form as may be required by Beneficiary, stating the unpaid
balance of the Note, and that there are no offsets or defenses against full payment of the Note
and performance of the terms hereof, or if there are any such offsets and defenses, specifying
them.
3.08 Repayment to Beneficiary. If, pursuant to any covenant contained herein or in any
other instrument executed in connection with the loan evidenced by the Note or in connection
with any Other Indebtedness secured hereby, Beneficiary shall expend any money chargeable to
Grantor or subject to reimbursement by Grantor under the terms of such covenant or agreement,
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Grantor will repay the same to Beneficiary immediately at the place where the Note or Other
Indebtedness secured hereby is payable, together with interest thereon at the rate of interest
payable on account of the Note or such Other Indebtedness in the event of a default hereunder
from and after the date of Beneficiary's making such payment. The sum of each such payment
shall be added to the indebtedness hereby secured and thereafter shall form a part of the same,
and it shall be secured by this Deed of Trust and, by subrogation to all of the rights of the person
or entity receiving such payment.
3.09 Condition of Property. Upon completion of certain renovations, additions and•
improvements to the Project, Grantor will keep every part of the Mortgaged Property in good
condition and presenting a good appearance, making promptly all repairs, renewals and
replacements necessary to such end, and doing promptly all else necessary to such end. Grantor
will discharge all claims for labor performed and material furnished therefore, and will not suffer
any lien of mechanics or materialman to attach to any part of the Mortgaged Property. Grantor
will guard every part of the Mortgaged Property from removal, destruction and damage, and will
not do or suffer to be done any act whereby the value of any part of the Mortgaged Property may
be lessened.
3.10 Successors. If the ownership, control or management of the Mortgaged Property or any
part thereof becomes vested in a person other than Grantor, or in the event of a change of
ownership of more than thirty percent (30 %) interest in any Grantor other than an individual,
Grantor agrees that Beneficiary may, without notice to Grantor, deal with such successor or
successors in interest with reference to this Deed of Trust and to the indebtedness hereby secured
in the same manner as with Grantor without in any way vitiating or discharging Grantor's
liability hereunder or upon the indebtedness hereby secured. No sale of the Mortgaged Property,
and no forbearance on the part of Beneficiary, and no extension of the time for the payment of
the indebtedness hereby secured, given by Beneficiary, shall operate to release, discharge,
modify, change or affect the original liability of Grantor or the liability of any guarantors or
sureties of Grantor, either in whole or in part.
3.11 Compliance with Governmental Requirements. Grantor covenants that the Mortgaged
Property and the improvements now or hereafter erected thereupon and the intended use thereof
by Grantor comply with all Governmental Requirements, including, without limitation, all
applicable restrictive covenants, zoning ordinances, subdivision and building codes, flood
disaster laws, applicable health and Environmental Laws and Regulations and all other
ordinances, orders or requirements issued by any state, federal or municipal authorities having or
claiming jurisdiction over the Mortgaged Property.
Any rehabilitation of an abandoned or foreclosed upon home or residential property under NSP
shall be to the extent necessary to comply with applicable, laws, codes, and other requirements
related to housing safety, quality, and habitability, in order to sell, rent, or redevelop such homes
and properties. Rehabilitation may include improvements to increase the energy efficiency or
conservation of such homes and properties or provide a renewable energy source or sources for
such homes and properties. Housing and Economic Recovery Act Section 2301 (d)(2) of 2008.
The eligibility of renewable energy equipment on existing structures shall be determined by the
Beneficiary.
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Housing that is constructed, including new construction, or rehabilitation with NSP funds must
meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the
time of completion. In the absence of a local code for new construction or rehabilitation, the
housing must meet the most current International Building Code. In addition, all NSP funded
housing must meet the Texas Minimum Construction Standards, as published in the Texas NSP
NOFA. NSP assisted new construction or rehabilitation will comply with HUD Program lead -
based paint requirements including lead screening in housing built before 1978 in accordance
with 24 CFR Part 92.355 and 24 CFR Part 35, subparts A, B, J, K, M, and R. Multifamily
housing assisted with NSP funds must meet the accessibility requirements at 24 CFR part 8,
which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Section 794) and
covered multifamily dwellings, as defined at 24 CFR 100.201, and the design and construction
requirements at 24 CFR 100.205, which implement the Fair Housing Act (42 U.S.C. 3601 - 3619).
Finally, NSP assisted housing must meet Energy Efficiency Standards in accordance with
Section 2306.187 of the Texas Government Code.
3.12 Money Laundering; Anti - Terrorism Laws.
(a) Grantor will furnish all of the funds for the purchase of the Mortgaged Property,
other than funds supplied by Beneficiary, and such funds will not be from sources that are
described in 18 U.S.C.A. §1956 and §1957 as funds or property derived from "specified
unlawful activity."
(b) None of Grantor, and constituent party nor Guarantor, if applicable, (nor any person
or entity owning an interest in Grantor, and constituent party or Guarantor, if applicable) (i) is a
Prohibited Person, or (ii) has violated any Anti- Terrorism Laws. No Prohibited Person holds or
owns any interest of any nature whatsoever in Grantor, any constituent party or Guarantor, if
applicable, as applicable, and none of the funds of Grantor, any constituent party or Guarantor, if
applicable, have been derived from any activity in violation of Anti- Terrorism Laws.
3.13 No Foreign Person. Neither Maker, nor Guarantor, if applicable, is a "foreign person"
within the meaning of §1445(0(3) of the Tax Code.
3.14 Payment of Labor and Materials. Grantor will promptly pay all bills for labor,
materials, and specifically fabricated materials incurred in connection with the Mortgaged
Property and never permit to exist in respect of the Mortgaged Property or any party thereof any
lien or security interest, even though inferior to the liens and security interest, hereof, for any
such bill, and in any event never permit to be created or exist in respect of the Mortgaged
Property or any part thereof any other or additional lien or security interest on a parity with,
superior, or inferior to any of the liens or security interest hereof, except for the Permitted
Exceptions.
3.15 Sources and Uses of Funds. Without limiting the requirements of Section 3.12 hereof,
Grantor has taken, and shall continue to take until the Indebtedness is fully repaid and each and
all of the Obligations are satisfied in full, such measures as are required by any and all Anti -
Terrorism Laws to assure that the funds invested in Grantor and/or used to make payments on the
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Indebtedness or the Obligations are derived from (a) transactions and sources that do not violate
any Anti- Terrorism Laws, nor to the extent such funds originate outside the United States, do not
violate the laws of the jurisdiction from which they originated; and (b) permissible sources
under Anti- Terrorism Laws or, to the extent such funds originate outside the United States, under
the laws of the jurisdiction from which they originated. If Beneficiary reasonably believes that
Grantor, Guarantor, if applicable, any constituent party, or any affiliate of any such parties may
have breached any of the representations, warranties or covenants set forth in this Deed of Trust
or the other Loan Documents relating to any Anti - Terrorism Laws, any violations of the Byrd
Amendment referenced herein and Section 3.16 hereof, or the identity of any person or entity as
a Prohibited Person, or person influencing or attempting to influence the federal persons
referenced herein and Section 3.16 hereof, then, Beneficiary shall have the right, with or without
notice to Grantor, to (1) notify the appropriate governmental authority and to take such action as
such governmental authority or applicable Anti- Terrorism Laws or Byrd Amendment may direct;
(2) withhold Loan advances and segregate the assets constituting the Loan or any of Grantor's
funds or assets deposited with or otherwise controlled by Beneficiary pursuant to the Loan
Documents; (3) decline any payment (or deposit such payment with an appropriate United States
governmental authority or court) or decline any prepayment or consent request; and/or (4)
declare an Event of Default and immediately accelerate the Loan in connection therewith,
Grantor agrees that none of Grantor, Guarantor, if applicable, nor any constituent party will
assert any claim (and hereby waives, for itself and on behalf of its affiliates, successors, assigns,
representatives or agents for any form of damages as a result of any of the foregoing actions,
regardless of whether or not Beneficiary 's reasonable belief is ultimately demonstrated to be
accurate. Without limiting the requirements of Section 3.11 hereof, Grantor has taken, and shall
continue to take until the Indebtedness is fully repaid and each and all of the Obligations are
satisfied in full, such measures as are required by the Byrd amendment to the fiscal 1990
appropriations measures for the United States Department of the Interior (P. L. 101 -121) and any
guidelines and rules issued by any federal entity in connection therewith, if applicable, to assure
that no federal appropriated funds have been paid or will be paid, by or on behalf of Grantor, (i)
to any person influencing or attempting to influence, or (ii) for influencing or attempting to
influence an officer or employee of any agency, a Member of Congress, an officer or employee
of Congress, or an employee of a Member of Congress in connection with this award and loan
under the NSP.
3.16 Byrd Amendment: Prohibition for Influencing Federal Entities. Grantor covenants
that, to the best of Grantor's knowledge, Grantor has complied with all restrictions, certifications
and disclosure requirements contained in the Byrd amendment to the fiscal 1990 appropriations
measures for the United States Department of the Interior (P.L. 101 -121) and with any guidelines
and rules issued by any federal entity in connection therewith, if applicable.
ARTICLE IV
Events of Default
4.01 Events of Default. The following shall be events of default ( "Events of Default ")
hereunder:
(a) The sale of the Mortgaged Property, or any part thereof without, the prior written
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consent of Beneficiary, except the sale to an Eligible Household.
(b) Grantor's agreement to or the granting of an easement, restrictive covenant or other
encumbrance affecting the Mortgaged Property without the prior written consent of Beneficiary.
(c) If Grantor is a corporation, partnership, or limited liability company, more than thirty
percent (30 %) of ownership of Grantor (determined by interest held and not by number of the
shareholders, partners or members, as applicable) changes other than changes resulting from the
transfer of shares or interest among the present owners of Grantor, such determination to be
made by aggregating all ownership changes (other than those involving only the present owners
of Grantor) occurring subsequent to the date hereof.
(d) Grantor's failure to promptly pay when due the indebtedness secured hereby, or any
part thereof and such failure continues for a period of thirty (30) days after written notice of such
failure is given by Beneficiary to Grantor; or Grantor's failure to keep and perform any of the
covenants (other than the failure to pay the indebtedness) or agreements contained herein or in
any of the other Loan Documents within thirty (30) days after written notice of such failure is
given by Beneficiary to Grantor.
(e) Beneficiary's discovery that any statement, representation or warranty in the Note,
this Deed of Trust or the other Loan Documents, or in any other writing delivered to Beneficiary
in connection with the indebtedness secured hereby is false, misleading or erroneous in any
material respect.
(f) If Grantor, or any person liable for the indebtedness secured hereby, or any part
thereof, including any guarantor of or surety for the performance of any obligation hereunder, (i)
files a voluntary petition in bankruptcy; (ii) makes an assignment for the benefit of any creditor;
(iii) suffers an order for relief in bankruptcy to be entered against it; (iv) admits in writing its
inability to pay its debts generally as they become due; (v) applies for or consents to the
appointment of a receiver, trustee, or liquidator of Grantor or of any such guarantor or surety or
of all or a substantial part of its assets; (vi) takes advantage of or seeks any relief under any
bankruptcy, reorganization, debtor's relief or other insolvency law now or hereafter existing; (vii)
files an answer admitting the material allegations of, or consenting to, or defaulting in, a petition
against Grantor or any such guarantor or surety, in any bankruptcy, reorganization, or other
insolvency proceedings; or (viii) institutes or voluntarily is or becomes a party to any other
judicial proceedings intended to effect a discharge of the debts of Grantor or of any guarantor or
surety, in whole or in part, or to effect a postponement of the maturity or the collection thereof,
or to effect a suspension of any of the rights or powers of Beneficiary granted in the Note, this
Deed of Trust or in any other instrument evidencing or securing the indebtedness secured hereby.
(g) If an order, judgment or decree shall be entered by any court of competent
jurisdiction appointing a receiver, trustee or liquidator of Grantor or of any guarantor or surety or
of all or any substantial part of the assets of Grantor or of any such guarantor or surety; or if
Grantor or any guarantor or surety shall fail to pay any money judgment against it within thirty
(30) days after any such judgment becomes final and non - appealable.
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(h) If Grantor or any such guarantor or surety shall fail to have discharged any
attachments, sequestration, or similar proceedings against any assets of Grantor or of any
guarantor or surety which remains undischarged and unstayed for a period of thirty (30)
consecutive days; or if the Mortgaged Property is placed under control or in the custody of any
court, or if Grantor abandons any of the Mortgaged Property.
(i) Grantor's execution or delivery of any pledge, security agreement, mortgage or deed
of trust covering all or any portion of the Mortgaged Property ( "Subordinate Mortgage ") without
the prior written consent of Beneficiary (which consent may be withheld). In the event of consent
by Beneficiary to the foregoing or in the event the foregoing prohibition is determined by a court
of competent jurisdiction to be unenforceable by the provisions of any applicable law, Grantor
will not execute or deliver any Subordinate Mortgage unless there shall have been delivered to
Beneficiary not less than ten (10) days prior to the date thereof a copy thereof which shall
contain express covenants to the effect:
(i) That the Subordinate Mortgage is in all respects unconditionally subject and
subordinate to the lien, security interest and assignment evidenced by this Deed of Trust and
each term and provision hereof;
(ii) That if any action or proceeding shall be instituted to foreclose the
Subordinate Mortgage (regardless of whether the same is a judicial proceeding or pursuant to a
power of sale contained therein), no tenant of any portion of the Mortgaged Property will be
named as a party defendant, nor will any action be taken with respect to the Mortgaged Property
which would terminate any occupancy or tenancy of the Mortgaged Property without the prior
written consent of Beneficiary;
(iii) That all of the rents, royalties (including, but not limited to, royalties arising
out of the sale of oil, gas, and any other minerals produced from the Mortgaged Property, or any
properties pooled with the Mortgaged Property), issues, profits, revenue, income and other
benefits derived from the Mortgaged Property or arising from the use or enjoyment of any
portion thereof or from any lease or agreement pertaining thereto, if collected through a receiver
or by the holder of the Subordinate Mortgage, shall be applied first to the obligations secured by
this Deed of Trust, including principal and interest due and owing on or to become due and
owing on the Note and the Other Indebtedness secured hereby and then to the payment of
maintenance, operating charges, taxes, assessments, and disbursements incurred in connection
with the ownership, operating and maintenance of the Mortgaged Property; and
(iv) That if any action or proceeding shall be brought to foreclose the Subordinate
Mortgage, written notice of the commencement thereof will be given to Beneficiary
contemporaneously with the commencement of such action or proceeding.
(j) The liquidation, termination, dissolution, merger, consolidation or failure to maintain
good standing in the State of Texas (or in the case of an individual, the death or legal incapacity)
of the owner of the Mortgaged Property or any person obligated to pay any part of the secured
indebtedness.
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(k) The liens, mortgages or security interests of Beneficiary in any of the Mortgaged
Property become unenforceable in whole or in part, or cease to be of the priority herein required,
or the validity or enforceability thereof, in whole or in part, shall be challenged or denied by
Grantor or any person obligated to pay any part of the secured indebtedness.
(1) If the ownership of any of the Mortgaged Property is forfeited or otherwise
transferred to any governmental agency under a federal or state law for which forfeiture of
property is a potential penalty or remedy.
(m) A default or event of default occurs under any other documents executed as security
for or in connection with the Note or under any other documents evidencing a loan or
indebtedness owed by Grantor to Beneficiary or any other agency of the State of Texas, and the
same is not remedied within the applicable period for curing such default (if any).
(n) Any portion of the surface of the Mortgaged Property is disturbed or otherwise
used by any person in connection with the exploration for or production of any oil, gas or other
minerals without the prior written consent of Beneficiary.
(o) If Grantor, without Beneficiary's consent, (i) seeks or acquiesces in a zoning
reclassification, zoning variance or special exception to zoning of all or any portion of the
Mortgaged Property, (ii) grants or consents to any easement, dedication, plat, or restriction (or
allows any easement to become enforceable by prescription), (iii) seeks or acquiesces to any
imposition of any addition of Governmental Requirements or any amendment or modification
thereof, .covering all or any portion of the Mortgaged Property.
4.02 Remedies. Upon the occurrence of any Event of Default, Beneficiary, at its sole
option, may declare the Note and all Other Indebtedness secured hereby immediately due and
payable and/or may pursue any rights and remedies it may have hereunder or at law or in equity.
ARTICLE V
Noniudicial Foreclosure and Sale
5.01 Trustee's Sale. Upon an Event of Default, Grantor authorizes and empowers the
Trustee, at the request of Beneficiary, at any time during the continuance of any default, to sell
all or any portion of the Mortgaged Property, at public auction, to the highest bidder, for cash or
for credit against the indebtedness secured hereby if Beneficiary is the highest bidder, at the
county court house of the county in Texas in which such Mortgaged Property or any part thereof
is situated, as herein described, in the area designated by the commissioners court for such
purpose pursuant to a recordation of such designation in the real property records of such county,
or if no such recorded designation by the commissioners court has been made, in the area at the
county court house designated in the notice of proposed sale posted, filed and served in
accordance with the further provisions of this paragraph, between the hours of 10:00 o'clock
A.M. and 4:00 o'clock P.M. on the first Tuesday of any month. The Trustee shall give notice of
the time, place and terms of said sale, and of the property to be sold, as follows:
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Notice of such proposed sale shall be given by posting written notice thereof at least
twenty -one (21) days preceding the date of the sale at the court house door, and by filing a copy
of the Notice in the office of the county clerk of the county in which the sale is to be made, and if
the property to be sold is situated in more than one county, one notice shall be posted at the court
house door and filed with the county clerk of each county in which the property to be sold is
situated. In addition, Beneficiary shall, at least twenty -one (21) days preceding the date of sale,
serve written notice of the proposed sale by certified mail on each debtor obligated to pay the
debt secured hereby according to the records of beneficiary. Service of such notice shall be
completed upon deposit of the notice, enclosed in a postpaid wrapper, properly addressed to such
debtor at the most recent address as shown by the records of Beneficiary, in a post office or
official depository under the care and custody of the United States Postal Service. The affidavit
of any person having knowledge of the facts to the effect that such service was completed shall
be prima facie evidence of the fact of service.
Any notice that is required or permitted to be given to Grantor may be addressed to
Grantor at Grantor's mailing address. Any notice that is to be given by certified mail to any other
debtor may, if no address for such other debtor is shown by the records of Beneficiary, be
addressed to such other debtor at Grantor's mailing address. Notwithstanding the foregoing
provisions of this paragraph, notice of such sale given in accordance with the requirements of the
applicable law of the State of Texas in effect at the time of such sale shall constitute sufficient
notice of such sale. Grantor hereby authorizes and empowers the Trustee to sell all or any
portion of the Mortgaged Property, together or in lots or parcels, as the Trustee may deem
expedient, and to execute and deliver to the purchaser or purchasers of such property, good and
sufficient deeds of conveyance of fee simple title with covenants of general warranty made on
behalf of the Grantor. In no event shall the Trustee be required to exhibit, present or display at
any such sale, any of the personalty described herein to be sold at such sale. The Trustee making
such sale shall receive the proceeds thereof and shall apply the same as follows: (i) first, he shall
pay the reasonable expense of executing this trust including a reasonable Trustee's fee or
commission; (ii) second, he shall pay, so far as may be possible, the indebtedness secured
hereby, discharging first that portion of the indebtedness arising under the covenants or
agreements herein contained and not evidenced by the Note; (iii) third, he shall pay the residue,
if any, to the person or persons legally entitled thereto. Payment of the purchase price to the
Trustee shall satisfy the obligation of the purchaser at such sale therefore, and such purchaser
shall not be bound to look after the application thereof. The sale or sales by the Trustee of less
than the whole of the Mortgaged Property shall not exhaust the power of sale herein granted, and
the Trustee is specifically empowered to make successive sale or sales under such power until
the whole of the Mortgaged Property shall be sold; and if the proceeds of such sale or sales of
less than the whole of such Mortgaged Property shall be less than the aggregate of the
indebtedness secured hereby and the expense of executing this trust, this Deed of Trust and the
lien, security interest and assignment hereof shall remain in full force and effect as to the unsold
portion of the Mortgaged Property just as though no sale or sales had been made; provided,
however, that Grantor shall never have any right to require the sale or sales of less than the
whole of the Mortgaged Property, but Beneficiary shall have the right, at its sole election, to
request the Trustee to sell less than the whole of the Mortgaged Property. If default is made
hereunder, the holder of the indebtedness or any part thereof on which the payment is delinquent
shall have the option to proceed with foreclosure in satisfaction of such item either through
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judicial proceedings or by directing the Trustee to proceed as if under a full foreclosure,
conducting the sale as herein provided without declaring the entire indebtedness secured hereby
due, and if sale is made because of default of an installment, or a part of an installment, such sale
may be made subject to the unmatured part of the Note and Other Indebtedness secured by this
Deed of Trust; and it is agreed that such sale, if so made, shall not in any manner affect the
unmatured part of the indebtedness secured by this Deed of Trust, but as to such unmatured part,
this Deed of Trust shall remain in full force and effect as though no sale had been made under
the provisions of this paragraph. Several sales may be made hereunder without exhausting the
right of sale for any unmatured part of the indebtedness secured hereby.
5.02 Successor Trustee. If the Trustee shall die or become disqualified from acting in the
execution of this trust, or shall fail or refuse to execute the same when requested by Beneficiary
to do so; or if, for any reason, Beneficiary shall prefer to appoint a substitute Trustee to act
instead of the Trustee named herein, Beneficiary shall have full power to appoint, by written
instrument, a substitute Trustee, and, if necessary, several substitute Trustees in succession, who
shall succeed to all the estate, rights, powers, and duties of the original Trustee named herein.
Such appointment may be executed by any authorized agent of Beneficiary; and if Beneficiary is
a corporation and such appointment is executed in its behalf by any officer of such corporation,
such appointment shall be conclusively presumed to be executed with authority and shall be
valid and sufficient without proof of any action by the board of directors or any superior officer
of the corporation. In the event of an assignment of the interests of Beneficiary under this Deed
of Trust, all rights and remedies granted to Beneficiary in this Deed of Trust shall inure to the
benefit of, and may be exercised by, the assignee.
5.03 Acts and Statements of Trustee. Grantor hereby agrees, in its behalf and in behalf of its
heirs, executors, administrators, successors, personal representatives and assigns, that any and all
statements of fact or other recitals made in any deed of conveyance given by the Trustee, with
respect to the identity of Beneficiary, or with respect to the occurrence or existence of any
default, or with respect to the acceleration of the maturity of any indebtedness secured hereby, or
with respect to the request to sell, the notice of sale, the giving of notice to all debtors legally
entitled thereto, the time, place, terms, and manner of sale, and receipt, distribution, and
application of the money realized therefrom, or with respect to the due and proper appointment
of a substitute Trustee, and, without being limited by the foregoing, with respect to any other act
or thing having been duly done by the Beneficiary or by the Trustee hereunder, shall be taken by
all courts of law and equity as prima facie evidence that the statements or recitals state facts and
are without further question to be so accepted, and Grantor hereby ratifies and confirms every act
that Trustee or any substitute Trustee hereunder may lawfully do in the premises by virtue
hereof.
5.04 Disaffirmance by Purchaser. The purchaser at any trustee's or foreclosure sale
hereunder may disaffirm any easement granted, or rental, lease or other contract made, in
violation of any provision of this Deed of Trust, and may take immediate possession of the
Mortgaged Property free from, and despite the terms of, such grant of easement and rental or
lease contract, subject to the Protecting Tenants at Foreclosure Act of 2009, Title VII of the
Helping Families Save Their Homes Act of 2009 (Public Law 111 -22, §702) and other
governmental requirements.
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5.05 Beneficiary May Bid. Beneficiary shall have the right to become the purchaser at all
sales to enforce this trust, being the highest bidder, and to have the amount of which such
property is sold credited on the indebtedness secured hereby which is then owing.
ARTICLE VI
Hazardous Materials
6.01 Definitions. For the purpose of this Deed of Trust, Grantor, Beneficiary and Trustee
agree that, unless the context otherwise specifies or requires, the following terms shall have the
meaning herein specified:
(a) Hazardous Materials: Any substance the presence of which on the Mortgaged
Property is regulated by any Governmental Requirements and Environmental Laws and
Regulations, including but not limited to: (i) any "hazardous waste" as defined by the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.), as amended from time
to time, and regulations promulgated thereunder; (ii) any "hazardous substance" as defined by
the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C. Section 9601 et seq.) ( "CERCLA" or "SuperFund "), as amended from time to time, and
regulations promulgated thereunder; (iii) asbestos; (iv) polychlorinated biphenyls; (v) any
petroleum -based products; and (vi) underground storage tanks, whether empty, filled or partially
filled with any substance.
(b) Hazardous Materials Contamination: The contamination (whether presently existing
or hereafter occurring) of the improvements, facilities, soil, groundwater, air or other elements
on, over or under the Mortgaged Property by Hazardous Materials, or the contamination of the
improvements, facilities, soil, ground- water, air or other elements on, over or under any other
property as a result of Hazardous Materials at any time (whether before or after the date of this
Deed of Trust) emanating from the Mortgaged Property.
6.02 Representations and Warranties. Grantor hereby represents and warrants that to the
best of Grantor's knowledge:
(a) No Hazardous Materials are located on the Mortgaged Property or have been
released into the environment, or deposited, discharged, placed or disposed of at, on, under or
near the Mortgaged Property, or transported to or from the Mortgaged Property. No portion of
the Mortgaged Property is being used or, to the best of Grantor's knowledge, has been used at
any previous time, for the disposal, storage, treatment, processing, manufacturing or other
handling of Hazardous Materials nor is any part of the Mortgaged Property affected by any
Hazardous Materials Contamination.
(b) No Hazardous Materials are located on property adjoining the Mortgaged
Property. No property adjoining the Mortgaged Property has ever been used at any previous
time for the disposal, storage, treatment, processing, manufacturing or other handling of
Hazardous Materials. No property adjoining the Mortgaged Property is affected by Hazardous
Materials Contamination.
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(c) No asbestos or asbestos containing materials have been installed, used,
incorporated into, or disposed of on the Mortgaged Property.
(d) No polychlorinated biphenyls or materials containing polychlorinated biphenyls
are located on or in the Mortgaged Property, in the form of electrical transformers, fluorescent
light fixtures with ballasts, cooling oils, or any other device or form.
(e) No underground storage tanks are located on the Mortgaged Property or, to the
best of Grantor's knowledge, were previously located on the Mortgaged Property and
subsequently removed or filled.
(0 No investigation, administrative order, consent order, agreement, litigation or
settlement with respect to Hazardous Materials or Hazardous Materials Contamination is
proposed, threatened, anticipated or in existence with respect to the Mortgaged Property. The
Mortgaged Property and its existing and prior uses comply and at all times have complied with
any applicable Governmental Requirements relating to environmental matters or Hazardous
Materials. There is no condition on the Mortgaged Property which is in violation of any
applicable Governmental Requirements relating to Hazardous Materials, and Grantor has
received no communication from or on behalf of any Governmental Authority that any such
condition exists. The Mortgaged Property is not currently on, and to the best of Grantor's
knowledge, has never been on, any federal, state or local "Superfund" or "Superlien" list.
(g) Except for studies, audits, and reports pertaining to the Mortgaged Property which
have been made available to Beneficiary, there have been no environmental investigations,
studies, audits, tests, reviews or other analyses conducted by or which are in the possession of or
available to Grantor in relation to the Mortgaged Property.
(h) All representations and warranties contained in this Section 6.02 shall survive the
consummation of the transactions contemplated by this Deed of Trust.
6.03 Covenants. Grantor agrees: (a) that Grantor shall not receive, store, dispose or release
any Hazardous Materials on or to the Mortgaged Property or transport any Hazardous Materials
to or from the Mortgaged Property or permit the existence of any Hazardous Materials
Contamination; (b) to give written notice to Beneficiary immediately upon Grantor's acquiring
knowledge of the presence of any Hazardous Materials on the Mortgaged Property or of the
transport of any Hazardous Materials to or from the Mortgaged Property or of the existence of
any Hazardous Materials Contamination, with a full description thereof; (c) promptly, at
Grantor's sole cost and expense, to comply with any Governmental Requirements requiring the
removal, treatment or disposal of such Hazardous Materials or Hazardous Materials
Contamination and provide Beneficiary with satisfactory evidence of such compliance; (d) to
provide Beneficiary, within thirty (30) days after demand by Beneficiary, with financial
assurance evidencing to Beneficiary's satisfaction that the necessary funds are available to pay
the cost of removing, treating and disposing of such Hazardous Materials or Hazardous Materials
Contamination and discharging any assessments which may be established on the Mortgaged
Property as a result thereof; and (e) to insure that all leases, licenses, and agreements of any kind
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now or hereafter executed which permit any party to occupy, possess, or use in any way the
Mortgaged Property or any part thereof, whether written or oral, include an express prohibition
on the disposal or discharge of any Hazardous Materials at or affecting the Mortgaged Property,
and a provision that failure to comply with such prohibition shall expressly constitute a default
under any such agreement.
6.04 Liens. Grantor shall not cause or suffer any liens to be recorded against the Mortgaged
Property as a consequence of, or in any way related to, the presence, remediation or disposal of
Hazardous Materials in or about the Mortgaged Property, including any so- called state, federal or
local "Superfund" lien relating to such matters.
6.05 Site Assessments. Beneficiary (by its officers, employees and agents) at any time and
from time to time, either prior to or after the occurrence of an Event of Default, may contract for
the services of persons (the "Site Reviewers ") to perform environmental site assessments ( "Site
Assessments ") on the Mortgaged Property for the purpose of determining whether there exists on
the Mortgaged Property any environmental condition which could result in any liability, cost or
expense to the owner, occupier or operator of such Mortgaged Property arising under any
Governmental Requirements relating to Hazardous Materials. The Site Assessments may be
performed at any time or times, upon reasonable notice, and under reasonable conditions
established by Grantor which do not impede the performance of the Site Assessment. The Site
Reviewers are hereby authorized to enter upon the Mortgaged Property for such purposes. The
Site Reviewers are further authorized to perform both above and below - ground testing for
environmental damage or the presence of Hazardous Materials or Hazardous Materials
Contamination on the Mortgaged Property and such other tests on the Mortgaged Property as
may be necessary to conduct the Site Assessments in the reasonable opinion of the Site
Reviewers. Grantor will supply to the Site Reviewers such historical and operational
information regarding the Mortgaged Property as may be reasonably requested by the Site
Reviewers to facilitate the Site Assessments and will make available for meetings with the Site
Reviewers appropriate personnel having knowledge of such matters. On request, Beneficiary
shall make the results of such Site Assessments fully available to Grantor, which (prior to an
Event of Default) may at its election participate under reasonable procedures in the direction of
such Site Assessments and the description of tasks of the Site Reviewers. The cost of
performing such Site Assessments shall be paid by Grantor upon demand of Beneficiary and any
such obligations shall be indebtedness secured by this Deed of Trust.
6.06 INDEMNIFICATION GRANTOR SHALL AT ALL TIMES RETAIN ANY AND
ALL LIABILITIES ARISING FROM THE PRESENCE, HANDLING, TREATMENT,
STORAGE, TRANSPORTATION, REMOVAL OR DISPOSAL OF HAZARDOUS
MATERIALS ON THE MORTGAGED PROPERTY. REGARDLESS OF WHETHER
ANY SITE ASSESSMENTS ARE CONDUCTED HEREUNDER, AND REGARDLESS
OF WHETHER ANY EVENT OF DEFAULT (AS DEFINED IN SECTION 4.01 OF THIS
DEED OF TRUST) SHALL HAVE OCCURRED AND BE CONTINUING OR ANY
REMEDIES IN RESPECT TO THE MORTGAGED PROPERTY ARE EXERCISED BY
BENEFICIARY, GRANTOR SHALL TO THE EXTENT AUTHORIZED BY LAW AND
SUBJECT TO FUNDS LEGALLY AVAILABLE FOR THE PURPOSE, DEFEND,
INDEMNIFY AND HOLD HARMLESS BENEFICIARY AND TRUSTEE (AND ANY
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SUCCESSOR TO THE TRUSTEE) FROM AND AGAINST ANY AND ALL
LIABILITIES (INCLUDING STRICT LIABILITY), SUITS, ACTIONS, CLAIMS,
DEMANDS, PENALTIES, DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST
PROFITS, CONSEQUENTIAL DAMAGES, INTEREST, PENALTIES, FINES AND
MONETARY SANCTIONS), LOSSES, COSTS AND EXPENSES (INCLUDING,
WITHOUT LIMITATION, REASONABLE ATTORNEYS' FEES AND REMEDIAL
COSTS) (THE FOREGOING ARE HEREINAFTER COLLECTIVELY REFERRED TO
AS "LIABILITIES ") WHICH MAY NOW OR IN THE FUTURE (WHETHER BEFORE
OR AFTER THE CULMINATION OF THE TRANSACTIONS CONTEMPLATED BY
THIS DEED OF TRUST) BE INCURRED OR SUFFERED BY BENEFICIARY OR
TRUSTEE (OR ANY SUCCESSOR TO THE TRUSTEE) BY REASON OF, RESULTING
FROM, IN CONNECTION WITH, OR ARISING IN ANY MANNER WHATSOEVER
OUT OF THE BREACH OF ANY WARRANTY OR COVENANT OR THE
INACCURACY OF ANY REPRESENTATION OF GRANTOR CONTAINED OR
REFERRED TO IN THIS ARTICLE VI OR IN ANY LOAN AGREEMENT MADE AND
ENTERED INTO BETWEEN GRANTOR AND BENEFICIARY RELATING TO THE
MORTGAGED PROPERTY OR WHICH MAY BE ASSERTED AS A DIRECT OR
INDIRECT RESULT OF THE PRESENCE ON OR UNDER, OR ESCAPE, SEEPAGE,
LEAKAGE, SPILLAGE, DISCHARGE, EMISSION OR RELEASE FROM THE
MORTGAGED PROPERTY OF ANY HAZARDOUS MATERIALS OR ANY
HAZARDOUS MATERIALS CONTAMINATION OR ARISE OUT OF OR RESULT
FROM THE ENVIRONMENTAL CONDITION OF THE MORTGAGED PROPERTY
OR THE APPLICABILITY OF ANY GOVERNMENTAL REQUIREMENTS
RELATING TO HAZARDOUS MATERIALS.
SUCH LIABILITIES SHALL INCLUDE, WITHOUT LIMITATION: (I) INJURY
OR DEATH TO ANY PERSON; (II) DAMAGE TO OR LOSS OF THE USE OF ANY
PROPERTY; (III) THE COST OF ANY DEMOLITION AND REBUILDING OF ANY
IMPROVEMENTS NOW OR HEREAFTER SITUATED ON THE MORTGAGED
PROPERTY OR ADJACENT PROPERTY, AND THE COST OF ANY REPAIR OR
REMEDIATION OF ANY SUCH IMPROVEMENTS; (IV) THE COST OF ANY
ACTIVITY REQUIRED BY ANY GOVERNMENTAL AUTHORITY; (V) ANY
LAWSUIT BROUGHT, GOOD FAITH SETTLEMENT REACHED, OR
GOVERNMENTAL ORDER RELATING TO THE PRESENCE, DISPOSAL, RELEASE
OR THREATENED RELEASE OF ANY HAZARDOUS MATERIALS, ON, FROM OR
UNDER THE MORTGAGED PROPERTY; AND (VI) THE IMPOSITION OF ANY
LIENS ON THE MORTGAGED PROPERTY ARISING FROM THE ACTIVITY OF
GRANTOR OR GRANTOR'S PREDECESSORS IN INTEREST ON THE
MORTGAGED PROPERTY OR FROM THE EXISTENCE OF HAZARDOUS
MATERIALS UPON THE MORTGAGED PROPERTY OR HAZARDOUS MATERIALS
CONTAMINATION. THE COVENANTS, WARRANTIES, AGREEMENTS AND
INDEMNIFICATIONS CONTAINED IN THIS ARTICLE VI SHALL SURVIVE THE
CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS DEED OF
TRUST.
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6.07 Right of Entry. Beneficiary shall have the right but not the obligation, without in any
way limiting Beneficiary's other rights and remedies under this Deed of Trust, to enter onto the
Mortgaged Property or to take such other actions as it deems necessary or advisable to clean up,
remove, resolve or minimize the impact of, or otherwise deal with, any Hazardous Materials or
Hazardous Materials Contamination on or under the Mortgaged Property following receipt of
any notice from any person or entity asserting the existence of any Hazardous Materials or
Hazardous Materials Contamination pertaining to the Mortgaged Property, or any part thereof
which, if true, could result in an order, notice, suit, imposition of a lien on the Mortgaged
Property, or other action, and/or which, in Beneficiary's sole opinion, could jeopardize
Beneficiary's security upon this Deed of Trust. All costs and expenses paid or incurred by
Beneficiary in the exercise of any such rights shall be indebtedness secured by this Deed of Trust
and shall be payable by Grantor upon demand.
ARTICLE VII
Additional Provisions
7.01 Rights of Beneficiary. If any of the indebtedness hereby secured shall become due and
payable, Trustee or Beneficiary shall have the right and power to proceed by a suit or suits in
equity or at law, whether for the specific performance of any covenant or agreement herein
contained or in aid of the execution of any power herein granted, or for any foreclosure
hereunder or for the sale of the Mortgaged Property under the judgment or decree of any court or
courts of competent jurisdiction or for the appointment of a receiver pending any foreclosure
hereunder or the sale of the Mortgaged Property under the order of a court or courts of competent
jurisdiction or under executory or other legal process, or for the enforcement of any other
appropriate legal or equitable remedy. Grantor agrees, to the full extent that it lawfully may, that
in case one or more of the Events of Default hereunder shall have occurred and shall not have
been remedied, then, and in every such case, the Beneficiary shall have the right and power to
enter into and upon and take possession of all or any part of the Mortgaged Property in the
possession of the Grantor, its successors or assigns, or its or their agents or servants, and may
exclude Grantor, its successors or assigns, and all persons claiming under Grantor, and it's or
their agents or servants, wholly or partly therefrom; and, holding the same, the Beneficiary may
use, administer, manage, operate and control the Mortgaged Property and conduct the business
thereof to the same extent as Grantor, its successors or assigns, might at the time do and may
exercise all rights and powers of Grantor, in the name, place and stead of Grantor, or otherwise
as the Beneficiary shall deem best; and in the exercise of any of the foregoing rights and powers
Beneficiary shall not be liable to Grantor for any loss or damage thereby sustained.
7.02 The Lien. Any part of the Mortgaged Property may be released by the Beneficiary
without affecting the lien, security interest and assignment hereof against the remainder. The
lien, security interest and other rights granted hereby shall not affect or be affected by any other
security taken for the same indebtedness or any part thereof. The taking of additional security, or
the extension or renewal of the indebtedness secured hereby or any part thereof, shall not release
or impair the lien, security interest and other rights granted hereby, or affect the liability of any
endorser, guarantor or surety, or improve the right of any permitted junior lienholder; and this
Deed of Trust, as well as any instrument given to secure any renewal or extension of the
indebtedness secured hereby, or any part thereof, shall be and remain a first and prior lien, except
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as otherwise provided herein on all of the Mortgaged Property not expressly released until the
indebtedness secured hereby is completely paid.
7.03 Waiver. To the extent that Grantor may lawfully do so, Grantor agrees that Grantor shall
not assert and hereby expressly waives, any right under any statute or rule of law pertaining to
the marshalling of assets, the exemption of homestead, the administration of estates of decedents,
or other matter whatever to defeat, reduce or affect the right of Beneficiary, under the terms of
this Deed of Trust, to sell the Mortgaged Property for the collection of the indebtedness secured
hereby (without any prior or different resort for collection) or the right of Beneficiary, under the
terms of this Deed of Trust, to the payment of such indebtedness out of the proceeds of sale of
the Mortgaged Property in preference to every other person and claimant whatever (only
reasonable expenses of such sale being first deducted). No provision of this Deed of Trust or any
other document securing or pertaining to the Note shall be construed to impose on Beneficiary
any duty to sell the Mortgaged Property or any other collateral for the Note for collection of the
indebtedness secured by this Deed of Trust or to pursue any other remedy in Beneficiary's power
whatsoever. Grantor expressly waives and relinquishes any right or remedy which it may have
or be able to assert by reason of the provisions of Chapter 34 of the Business and Commerce
Code of the State of Texas, pertaining to the rights and remedies of sureties. To the full extent
permitted by applicable law, Grantor waives any right to require Beneficiary to use diligence in
collection of any indebtedness secured by this Deed of Trust, to proceed against or exhaust any
security or collateral for the loan evidenced by the Note, to mitigate Beneficiary's damages in
connection with the loan evidenced by the Note, or to pursue any other remedy in Beneficiary's
power whatsoever.
7.04 Subrogation. To the extent that proceeds of the Note are used to pay an outstanding lien,
charge or encumbrance against or affecting the Mortgaged Property, such proceeds have been
advanced by Beneficiary at Grantor's request, and Beneficiary shall be subrogated to all rights,
interests and liens owned or held by any owner or holder of such outstanding liens, charges and
encumbrances, irrespective of whether such liens, charges or encumbrances are released of
record.
7.05 Limitation on Interest. All agreements between Grantor and Beneficiary, whether now
existing or hereafter arising and whether written or oral, are expressly limited so that in no
contingency or event whatsoever shall the amount paid, or agreed to be paid, to Beneficiary for
the use, forbearance, or detention of the money to be loaned pursuant to the Note or otherwise, or
for the performance or payment of any covenant or obligation contained herein, exceed the
maximum amount permissible under applicable law. If from any circumstance whatsoever
fulfillment of any provision hereof at the time performance of such provision shall be due shall
involve transcending the limit of validity prescribed by law, then, ipso facto, the obligation to be
fulfilled shall be reduced to the limit of such validity, and if from any such circumstance
Beneficiary shall ever receive as interest under such Note or this Deed of Trust or otherwise an
amount that would exceed the highest lawful rate, such amount that would be excessive interest
shall be applied to the reduction of the principal amount owing under the Note or on account of
the Other Indebtedness secured hereby and not to the payment of interest or if such excessive
interest exceeds the unpaid balance of principal of the Note and such Other Indebtedness, such
excess shall be refunded to Grantor, or to the maker of the Note or other evidence of
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indebtedness if other than Grantor. All sums paid or agreed to be paid to Beneficiary for the use,
forbearance, or detention of the indebtedness secured hereby shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the full term of such
indebtedness until payment in full so that the actual rate of interest on account of such
indebtedness is uniform throughout the term thereof. The terms and provisions of this Section
shall control and supersede every other provision of all agreements between Grantor, the maker
of the Note or other evidence of indebtedness if other than Grantor, and Beneficiary.
7.06 Waiver and Invalidity. No waiver of any default on the part of Grantor or breach of any
of the provisions of this Deed of Trust or of any other instrument executed in connection with the
indebtedness secured hereby shall be considered a waiver of any other or subsequent default or
breach, and no delay or omission in exercising or enforcing the rights and powers herein granted
shall be construed as a waiver of such rights and powers, and likewise no exercise or
enforcement of any rights or powers hereunder shall be held to exhaust such rights and powers,
and every such right and power may be exercised from time to time. If any provision of this
Deed of Trust is held to be illegal, invalid, or unenforceable under present or future laws
effective while this Deed of Trust is in effect, the legality, validity, and enforceability of the
remaining provisions of this Deed of Trust shall not be affected thereby, and in lieu of each such
illegal, invalid, or unenforceable provision there shall be added automatically as a part of this
Deed of Trust a provision as similar in terms to such illegal, invalid, or unenforceable provision
as may be possible and be legal, valid, and enforceable. If any of the liens, security interest or
assignment of rents created by this Deed of Trust shall be invalid or unenforceable, the
unsecured portion of the indebtedness secured hereby shall be completely paid prior to the
payment of the remaining and secured portion of such indebtedness and all payments made on
account of such indebtedness shall be considered to have been paid on and applied first to the
complete payment of the unsecured portion of such indebtedness.
7.07 Tenancy at Will. In the event of a trustee's sale hereunder and if at the time of such sale
the Grantor occupies the portion of the Mortgaged Property so sold, or any part thereof, Grantor
shall immediately become the tenant of the purchaser at such sale, which tenancy shall be a
tenancy from day to day, terminable at the will of either tenant or landlord, at a reasonable rental
per day based upon the value of the portion of the Mortgaged Property so occupied, such rental
to be due and payable daily to the purchaser. An action of forcible detainer shall lie if the tenant
holds over after a demand in writing for possession of such Mortgaged Property and premises;
and this agreement and any trustee's deed shall constitute a lease and agreement under which the
tenant's possession, each and all, arose and continued.
7.08 Security Agreement. With respect to any portion of the Mortgaged Property which
constitutes personal property or fixtures governed by the Uniform Commercial Code of the State
of Texas (hereinafter called the "Code "), this Deed of Trust shall constitute a security agreement
between Grantor as the Debtor and Beneficiary as the Secured Party, and Grantor hereby grants
to Beneficiary a security interest in such portion of the Mortgaged Property. Cumulative of all
other rights of Beneficiary hereunder, Beneficiary shall have all of the rights conferred upon
secured parties by the Code. Grantor will execute and deliver to Beneficiary all financing
statements that may from time to time be required by Beneficiary to establish and maintain the
validity and priority of the security interest of Beneficiary, or any modification thereof, and all
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costs and expenses of any searches reasonably required by Beneficiary. Beneficiary may exercise
any or all of the remedies of a secured party available to it under the Code with respect to such
property, and it is expressly agreed that if upon default Beneficiary should proceed to dispose of
such property in accordance with the provisions of the Code, then (10) days' notice by
Beneficiary to Grantor shall be deemed to be reasonable notice under any provision of the Code
requiring such notice; provided, however, that Beneficiary may at its option dispose of such
property in accordance with Beneficiary's rights and remedies with respect to the real property
pursuant to the provisions of this Deed of Trust, in lieu of proceeding under the Code.
7.09 Changes in Grantor's Identity. Grantor shall give advance notice in writing to
Beneficiary of any proposed change in Grantor's name, address, identity, or corporate structure
and will execute and deliver to Beneficiary, prior to or concurrently with the occurrence of any
such change, all additional financing statements that Beneficiary may require to establish and
maintain the validity and priority of Beneficiary's security interest with respect to any Mortgaged
Property described or referred to herein.
7.10 Fixtures. Some of the items of Mortgaged Property described herein are goods that are
or are to become fixtures related to the real estate described herein, and it is intended that as to
those goods, this Deed of Trust shall be effective as a financing statement filed as a fixture filing
from the date of its filing for record in the real estate records of the county in which the
Mortgaged Property is situated. Information concerning the security interest created by this
instrument may be obtained from Beneficiary, as secured party, at the address of Beneficiary
stated above. The mailing address of the Grantor, as debtor, is as stated in Section 1.02.
7.11 NSP Subrecipient Activity Report. Until all NSP requirements are met, the NSP
Subrecipient Activity Report shall be submitted monthly. Thereafter, the NSP Subrecipient
Activity Report shall be submitted quarterly. The Beneficiary shall determine whether all NSP
obligation requirements have been met and may amend this rule from time to time or as needed.
7.12 Applicable Law. All references in this Deed of Trust to the "law" or to "lawful rate"
shall be construed to be the laws of the State of Texas and the United States, whichever is
applicable. "Applicable law" as used herein means (a) the law pertaining to maximum rates of
interest that is now in effect, and (b) any law that comes into effect at any time in the future
allowing a higher maximum rate than the law now in effect.
7.13 Binding Effect. The covenants herein contained shall bind, and the benefits and
advantages shall inure to, the respective heirs, executors, administrators, personal
representatives, successors and assigns of the parties hereto, and to any substitute Trustee.
Whenever used, the singular number shall include the plural and the singular, and the use of any
gender shall be applicable to all genders. The duties, covenants, conditions, obligations and
warranties of Grantor in this Deed of Trust shall be joint and several obligations of Grantor and
each Grantor if more than one, and Grantor's heirs, personal representatives, successors and
assigns. Each party who executes this Deed of Trust (other than Beneficiary), and each
subsequent owner of the Mortgaged Property, or any part thereof, covenants and agrees that it
will perform, or cause to be performed, each condition, term, provision, and covenant of this
Deed of Trust.
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7.14 Right to Inspect. Beneficiary shall have at all times a right of access to and upon the
Mortgaged Property for purposes of inspection and, at Beneficiary's option, for purposes of
performing any obligations required of Grantor hereunder.
7.15 Notices. All notices, requests, consents, demands and other communications required or
which any part desires to give hereunder shall be in writing. Notice will be deemed effective
upon deposit in the United States mail, postage prepaid, by certified mail, return receipt
requested, addressed to the party to whom directed at the addresses specified in Article I of this
Deed of Trust (unless changed by notice in writing given by the particular party whose address is
to be changed). Notice given in any other manner shall be deemed effective only if and when
received by the party to be notified. Provided, however, service of a notice required by Texas
Property Code Section 51.002, as amended, shall be considered complete when the requirements
of that statute are met. Notwithstanding the foregoing, no notice of change of address shall be
effective except upon receipt. This section shall not be construed in any way to affect or impair
any waiver of notice or demand provided in the Note or any other instrument securing the Note
or to require giving of notice or demand to or upon any person in any situation or for any reason.
7.16 Assignment of Rents. All of the rents, royalties (including, but not limited to, royalties
arising out of the sale of oil, gas, and any other minerals produced from the Mortgaged Property,
or any properties pooled with the Mortgaged Property), issues, profits, revenue, income and
other benefits derived from the Mortgaged Property or arising from the use or enjoyment of any
portion thereof or from any lease or agreement pertaining thereto (hereinafter called the "Rents
and Profits ") are hereby assigned, transferred, conveyed and set over to Beneficiary as security
for (i) payment of the principal and interest and all other sums payable on the Note, (ii) payment
of any Other Indebtedness secured hereby and (iii) the performance and discharge of each and
every obligation, covenant and agreement of Grantor set forth herein or in the Note or in any
other instrument securing payment of the Note. Prior to the occurrence of any Event of Default
hereunder, Grantor shall collect and receive all Rents and Profits, and Grantor shall apply the
funds so collected first to the payment of the principal and interest and all other sums payable on
the Note and in payment of all Other Indebtedness secured hereby and thereafter, so long as no
Event of Default hereunder has occurred, the balance shall be distributed to the account of
Grantor. Grantor will not (i) execute an assignment of any of its right, title or interest in the
Rents and Profits, or (ii) except in the ordinary course of business, including but not limited to
where the lessee is in default thereunder, terminate or consent to the cancellation or surrender of
any lease of the Mortgaged Property or any part thereof, now or hereafter existing having an
unexpired term of one year or more except that any lease may be canceled, provided that
promptly after the cancellation or surrender thereof a new lease is entered into with a new lessee
having a credit standing, in the judgment of Beneficiary, at least equivalent to that of the lessee
whose lease was canceled, on substantially the same terms as the terminated or canceled lease, or
(iii) except in the ordinary course of business, modify any lease of the Mortgaged Property or
any part thereof so as to shorten the unexpired term thereof or so as to decrease any amount of
the rent payable thereunder, or (iv) accept prepayments of any installments of rent to become due
under any of such leases in excess of one month, except prepayments in the nature of security for
the performance of the lessee thereunder, or (v) in any other manner impair the value of the
Mortgaged Property or the security of this Deed of Trust. Upon an Event of Default in the
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payment of the Note or any Other Indebtedness secured hereby, Beneficiary may, at its option,
and without notice to Grantor receive and collect all Rents and Profits. Effective upon such
Event of Default and for the foregoing purpose Grantor has irrevocably made, constituted and
appointed, and by these presents does irrevocably make, constitute and appoint Beneficiary as its
true and lawful attorney for it and in its name, place and stead to receive and collect the Rents
and Profits, compromise and settle all claims therefore, and execute, deliver, cancel, modify and
to release any and all leases and lessees, giving and granting unto Beneficiary full power and
authority to do and perform all and every act and thing whatsoever, requisite and necessary to be
done in connection therewith, as fully, to all intents and purposes, as Grantor might or could do if
personally present and also giving and granting unto Beneficiary full power to substitute one or
more attorney or attorneys under it, concerning such matters. Default shall be presumed upon
Beneficiary's filing with the County Clerk of the County in which the Mortgaged Property is
located of an affidavit to the effect that an Event of Default has occurred hereunder and all
persons dealing with Beneficiary may rely upon such affidavit. Grantor agrees that all persons
dealing with Beneficiary and its substitutes that this power of attorney shall remain effective for
so long as there is an Event of Default under the terms hereof. Grantor agrees to indemnify and
hold Beneficiary and its substitutes harmless from any and all liability arising out of
Beneficiary's or its substitutes' acts pursuant to the authority herein granted to the extent allowed
by law. This power of attorney is one coupled with an interest.
7.17 Construction Mortaate. This Deed of Trust constitutes a "Construction Mortgage" as
defined in the Texas Business and Commerce Code and secures an obligation incurred for the
construction of improvements on the Real Property described herein.
7.18 Loan Agreement. It is understood and agreed that all or a portion of the funds to be
advanced under the Note are to be used in the construction or Rehabilitation of the Project in
accordance with the NSP Construction Loan Agreement dated on even date herewith made by
and between Grantor (Borrower in Loan Agreement or the Maker of the Note if different from
Grantor) and Beneficiary (Lender in Loan Agreement), which said Loan Agreement is
incorporated herein by reference to the same extent and effect as if fully set forth herein and
made a part hereof. This Deed of Trust secures the payment of all sums and the performance of
all covenants required by Grantor (or the Maker of the Note if different from Grantor) under the
Loan Agreement, and upon the failure of Grantor (or the maker of the Note if different from
Grantor) to keep and perform all the covenants, conditions and agreements of the Loan
Agreement, the indebtedness secured hereby shall, at the option of Beneficiary, become due and
payable, anything herein contained to the contrary notwithstanding.
7.19 Attorney in Fact. Grantor has irrevocably made, constituted and appointed, and by these
presents does irrevocably make, constitute and appoint Beneficiary its true and lawful attorney,
for it and in its name, place and stead in the Event of Default to contract for the sale of and
convey all or any part of the Mortgaged Property, giving and granting unto Beneficiary full
power and authority to do and perform all and every act and thing whatsoever requisite and
necessary to be done in connection therewith, as fully, to all intents and purposes, as Grantor
might or could do if personally present and also giving and granting unto Beneficiary full power
to substitute one or more attorneys under it, in or concerning such matters. Grantor agrees that
this power of attorney shall be effective upon an Event of Default in the payment of the Note or
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under any instrument executed as security therefore, and Grantor agrees and represents to those
dealing with Beneficiary, and its substitute or substitutes, that this power of attorney shall be
effective upon Beneficiary's filing with the County Clerk of the county in which the Mortgaged
Property is situated, an affidavit to the effect that an Event of Default has occurred under the
terms of the Note or any instruments executed as security therefore and such persons may rely
upon Beneficiary's representation with regard to the continuation of such default, Grantor agrees
with all persons dealing with Beneficiary, its substitute and substitutes that this power of attorney
shall remain effective for so long as there is an Event of Default under the terms of the Note or
any instruments executed as security therefore, and further agrees with such persons that they
may rely upon the representations of Beneficiary, its substitute and substitutes, with regard to the
continuation of such default. TO THE EXTENT AUTHORIZED BY LAW, AND SUBJECT
TO THE LIMITATIONS CONTAINED HEREIN, AND FUNDS LEGALLY AVAILABLE
FOR THE PURPOSE, GRANTOR AGREES TO INDEMNIFY AND HOLD BENEFICIARY
AND ITS SUBSTITUTES HARMLESS FROM ANY AND ALL LIABILITY ARISING OUT
OF BENEFICIARY'S OR ITS SUBSTITUTES' ACTS PURSUANT TO THE AUTHORITY
HEREIN GRANTED TO THE EXTENT ALLOWED BY LAW. THIS POWER OF
ATTORNEY IS ONE COUPLED WITH AN INTEREST.
7.20 Covenants Running with the Land. All of the covenants, conditions, warranties,
representations and other obligations made or undertaken by Grantor contained in this Deed of
Trust and the other Loan Documents are intended by Grantor, Beneficiary, and Trustee to be, and
shall be construed as, covenants running with the Mortgaged Property until the lien of this Deed
of Trust has been fully released by Beneficiary.
7.21 Foreclosure. If the Mortgaged Property becomes the subject of a foreclosure proceeding
that results in the sale of part or all of the Mortgaged Property, all sums in excess of those paid to
superior lien holders shall be paid to Beneficiary to apply to the outstanding balance under the
Note. If there are insufficient funds to pay off the Note secured herein, Beneficiary may in its
own discretion waive the payment of any or all of the outstanding loan balance under the Note.
7.22 Non- Recourse. Notwithstanding anything herein to the contrary, Beneficiary shall have
no recourse against Grantor, nor against any guarantor, if any, for payment and performance of
all of the obligations, covenants and agreements of Grantor under the Note and the documents
securing same including, but not limited to this Deed of Trust (said documents hereafter
collectively called "Security Documents "), except to the full extent of all of the Mortgaged
Property which constitutes security for the Note. If default occurs in the timely and proper
payment of any portion of such indebtedness or in the timely performance of any of such
obligations, agreement or covenants, any judicial proceedings brought by Beneficiary against
Grantor or any guarantor shall be limited to the protection and preservation of the Mortgaged
Property, the preservation, enforcement and foreclosure of the liens, mortgages, assignments,
rights and security interests now or at any time hereafter securing the payment of the Note, and
enforcement and collection of obligations, covenants and indebtedness for which Grantor and
any guarantors remain liable as provided in this paragraph. If there is a foreclosure of any such
liens, mortgages, assignments, rights, and security interests securing the payment of the Note, by
power of sale or otherwise, no judgment for any deficiency upon such indebtedness shall be
sought or obtained by Beneficiary against Grantor. Notwithstanding the foregoing provisions of
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this paragraph or any other agreement, Beneficiary shall have full recourse against Grantor and
all guarantors, if any, for: (a) fraud or misrepresentation by Grantor or any guarantor in
connection with the transactions herein contemplated; (b) failure to pay taxes, assessments,
charges for labor or materials or other charges that can create liens on any portion of the
Mortgaged Property; (c) the misapplication of (i) proceeds of insurance covering any portion of
the Mortgaged Property, or (ii) proceeds of the sale or condemnation of any portion of the
Mortgaged Property, or (iii) rentals received by or on behalf of Grantor subsequent to the date on
which Beneficiary gives written notice of the posting of foreclosure notices, (d) failure to prevent
waste to the Mortgaged Property unless Beneficiary is compensated therefore by insurance
proceeds collected by Grantor; (e) the return to Beneficiary of all unearned advance rentals and
security deposits paid by tenants of the. Mortgaged Property and not refunded to or forfeited by
such tenants, (f) the return of, or reimbursement for, all personalty taken from the Mortgaged
Property by or on behalf of Grantor, (g) all court costs and for all attorneys' fees provided for in
any instrument governing, securing or pertaining to the payment of the Note; and (h) failure to
comply with any indemnification provision or covenants pertaining to environmental matters
contained in the Security Documents.
7.23 Release. Subject to the following terms, Beneficiary will release the entire Mortgaged
Property or individual lots on the Mortgaged Property from all liens securing the Note upon
closing of a permanent mortgage loan (purchase money) with an Eligible Household utilizing the
Financing Mechanisms available under the NSP, when applicable:
(a) Grantor must not be in default under this Deed of Trust, Loan Agreement or the
Note at the time of the request for lot release.
(b) The release must be on a form approved by Beneficiary that is prepared and
recorded at Grantor's expense.
(c) The purchase price of Mortgaged Property to the Eligible Household shall be the
lesser of one the following amounts: (1) the cost to acquire and construct or rehabilitate the
Project to a decent, safe, and habitable condition, or (2) one hundred percent (100 %) of the
appraised value after rehabilitation or construction. In no instance shall the purchase price of the
Mortgaged Property to the Eligible Household exceed either of the amounts set out in this
Section 7.23 (c.)
(d) The constructed or rehabilitated single family dwelling must be made available
for sale to Eligible Households within twelve (12) months from the date of acquisition under the
NOFA or from completion of Rehabilitation under the NOFA -R.
(e) The lot to be released must be improved with a single - family dwelling completed
in a good and workmanlike manner in accordance with plans and specifications approved by
Beneficiary and must, at a minimum, meet the Texas Minimum Construction Standards (TMCS)
and the NSP Rehabilitation Standards as noted herein, and must incorporate construction
requirements imposed for single family affordable housing as cited as Texas Government Code,
Section 2306.514, as may be amended from time to time.
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(f) The lot release price upon closing of the permanent mortgage made to an Eligible
Household will be $110,188.25, the full unpaid principal balance of the Note. Upon receipt of
payment of the release price from the Grantor Beneficiary shall immediately credit said amount
against the principal balance of the Note.
As provided herein, Beneficiary may forgive some or all of the lot release price and said amount
shall be immediately credited against the principal balance of the Note as stated in Sections 7.23
(g) and (h) of this Deed of Trust.
(g) If Grantor utilizes Financing Mechanisms under NSP and the Eligible Household
qualifies, then in lieu of payment of the full lot release price, the Beneficiary may forgive up to
$30,000.00 in a deferred forgivable down payment assistance loan from Beneficiary to an
Eligible Household whose income exceeds fifty percent (50 %) but is less than one hundred
twenty (120 %) of the area median income as defined by NSP for the payment of down payment
assistance, reasonable closing costs, principal reductions and gap financing in conjunction with a
permanent mortgage loan for the purchase of the single family dwelling from a private mortgage
lender to said Eligible Household. The full amount of any partial release price for the Mortgaged
Property shall be immediately credited against the principal balance of the Note upon receipt of
the fully, executed subordinate, deferred forgivable down payment assistance loan in a form
approved by Beneficiary, in addition to payment of the remaining balance of the lot release price.
(h) If Grantor utilizes Financing Mechanisms under NSP, and the Eligible Household
qualifies, then in lieu of payment of the lot release price, Grantor may forgive up to an amount
equal to the full unpaid principal balance of the Note for the Mortgaged Property to a thirty (30)
year, zero percent (0 %) interest, fully amortizing permanent mortgage loan from Beneficiary to
an Eligible Household whose income does not exceed fifty percent (50 %) of area median income
as defined by NSP for the purchase of the single - family dwelling. For an Eligible Household
whose income does not exceed fifty percent (50 %) of the area median income as defined by
NSP, Grantor, in lieu of payment, may also convert up to $30,000.00 of the unpaid principal
balance of the Note per individual lot to a deferred forgivable down payment assistance loan
from Beneficiary to said Eligible Household for the payment of principal reductions and gap
financing in conjunction with and in addition to the permanent mortgage loan from Beneficiary
to said Eligible. The full amount of any partial release price for the Mortgaged Property shall be
immediately credited against principal balance of the Note upon receipt of fully, executed
permanent mortgage loan documents and, if applicable, homebuyer assistance loan documents,
in a form approved by Beneficiary.
(i) Grantor must provide Beneficiary ten (10) days notice of any requested release.
At the time a release is requested, the party requesting the release must furnish to the holder of
the Note a calculation of area by field notes and a plat or survey, indicating the area to be
released and its relationship to the portion of the Property not to be released and shall provide
evidence that the lot is being sold to an Eligible Household by submitting an income certification
in a form prescribed by Beneficiary. All expenses incident to the granting of release will be
borne by the party requesting the release, including but not limited to the cost of the survey,
Lender's attorney's fees, and recording costs.
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7.24 Low and Moderate Income Requirement. It is the intent of Beneficiary and Grantor
that 100% of the funds made available under NSP are to be used to meet the low and moderate
income requirement established in the Housing and Economic Recovery Act Section 2301
(f)(3)(A)(i) and (ii). The low and moderate income requirement includes individuals and
families whose incomes do not exceed 120% of area median income as defined therein.
Such individuals and families will be considered an Eligible Household, as determined by
Beneficiary as stated herein or in accordance with any corresponding provision of federal law or
provisions of succeeding laws as may be amended from time to time. The determination of
whether a purchaser is an Eligible Household shall be made by Beneficiary, in its sole absolute
discretion.
7.25 NSP Contract. Each term and provision of this Deed of Trust is expressly subject to the
terms and condition of the Neighborhood Stabilization Program Contract Number 77099999126
executed between Office of Rural Affairs established within the Department of Agriculture, a
public and official agency of the State of Texas, and Grantor herein, dated to be effective
September 1, 2009 in the original amount of $1,050,000.00, as assigned and transferred to
Beneficiary by Assignment of Contract on August 30, 2011, and as amended from time to time
( "NSP Contract ") which is incorporated herein by reference. The lot or lots securing this loan
must be improved with a single family dwelling completed in good and workmanlike manner
and sold to an Eligible Household who will maintain the affordability period for rental or
homeownership in accordance with the NSP. The terms of the NSP contract shall govern over
any conflicting provision hereof.
7.26 Due on Transfer - Nonresidential Property. BENEFICIARY MAY DECLARE THE
DEBT SECURED BY THIS DEED OF TRUST IMMEDIATELY DUE AND PAYABLE
AND INVOKE ANY REMEDIES PROVIDED IN THIS DEED OF TRUST FOR
DEFAULT IF GRANTOR TRANSFERS ANY OF THE MORTGAGED PROPERTY TO
A PERSON WHO IS NOT A PERMITTED TRANSFEREE WITHOUT
BENEFICIARY'S CONSENT. "PERMITTED TRANSFEREE" FOR A NATURAL
PERSON MEANS THAT PERSON'S SPOUSE OR CHILDREN, ANY TRUST FOR
THAT PERSON'S BENEFIT OR THE BENEFIT OF THE PERSON'S SPOUSE OR
CHILDREN, OR ANY CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY
COMPANY IN WHICH THE DIRECT AND BENEFICIAL OWNER OF ALL THE
EQUITY INTEREST IS A NATURAL PERSON OR THAT PERSON'S SPOUSE OR
CHILDREN OR ANY TRUST FOR THE BENEFIT OF THEM; AND THE HEIRS,
BENEFICIARIES, EXECUTORS, ADMINISTRATORS, OR PERSONAL
REPRESENTATIVES OF A NATURAL PERSON ON THE DEATH OF THAT PERSON
OR ON THE INCOMPETENCY OR DISABILITY OF THAT PERSON FOR PURPOSES
OF THE PROTECTION AND MANAGEMENT OF THAT PERSON'S ASSETS; AND
FOR A PERSON THAT IS NOT A NATURAL PERSON, ANY OTHER PERSON
CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH
THAT PERSON.
7.27 Renewal and Extension of Existing Deed -of -Trust Lien. The Note is for the principal
sum of $110,188.25 and is executed on the same date herein. A prior promissory note was issued
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for $106,797.65 for the Real Property. The Note added an additional $3,390.60 to the prior
promissory note, for a total of $110,188.25 on the Real Property. Therefore, the Note renews and
extends the balance of One Hundred Six Thousand Seven Hundred Ninety Seven and 65/100
Dollars ($106,797.65) that Grantor owes on the prior note which is dated June 6, 2011, executed
by City of Huntsville, a political subdivision of the State of Texas, and payable to the order of
Texas Department of Housing and Community Affairs, a public and official agency of the State
of Texas. The prior note is more fully described in and secured by a prior deed of trust on the
Property, which is dated June 6, 2011, and recorded under Document No.00003718, Volume
983, Page 85, June 7, 2011, in the Official Public Records of Walker County, Texas. Grantor
acknowledges that the lien securing the prior note is valid, that it subsists against the Property,
and that by this Deed of Trust, it is renewed and extended in full force to secure payment of the
Note.
7.28 Entire Agreement; Amendment. THIS DEED OF TRUST AND THE OTHER LOAN
DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES
HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS,
REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO.
THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO. The provisions
hereof and the other Loan Documents may be amended or waived only by an instrument in
writing signed by Grantor and Beneficiary.
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EXECUTED this day of April, 2012.
GRANTOR:
THE STATE OF TE
COUNTY OF
CITY OF HUNTSVILLE, a political subdivision
of the State of Texas
By:
Name: Bill Baine
Title: City Manager
This instrument was acknowledged before me on this 1/ day of 1 , 2012,
by Bill Baine, City Manager of City of Huntsville, a political subdivision of State of Texas,
acting on behalf of said political subdivision and in the official capacity herein stated.
�`�`��Q� y P BNro * .
(
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Seal) ; .....
=':2 \i ----iN co Q. = iL1
'•• % 6.):4 TE ° 5•. Notary P /.lic, St /- of Texas
I. �4 ...EXP ,�p, `��
PREPARED BY:
Texas Department of Housing
and Community Affairs
Legal Services Division
P.O. Box 13941
Austin, Texas 78711 -3941
(512) 475 -2574
AFTER RECORDING RETURN TO:
Walker County Title Company
1109 University Ave.
Huntsville, Texas 77340
Attn: Judy Thorton
GF # 201201084
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Page 33 of 33
PROMISSORY NOTE
U.S. $110,188.25 April 11 , 2012
NEIGHBORHOOD STABILIZATION PROGRAM ( "NSP ")
Awarding Federal Agency: United States Department of Housing and Urban Development
TDHCA Federal Award Number: B- 08 -DN -48 -0001
Federal Award Year (Year of Award from HUD to TDHCA): 2008
TDHCA Award Year (Year of TDHCA Board Approval): 2009
For value received, CITY OF HUNTSVILLE, a political subdivision of the State of Texas
( "Maker ") promises to pay to the order of TEXAS DEPARTMENT OF HOUSING AND
COMMUNITY AFFAIRS, a public and official agency of the State of Texas ( "Payee ") at 221 E. 11th
Street, P.O. Box 13941 in the City of Austin, Travis County, Texas 78711 -3941 (or at such other place
in Austin, Travis County, Texas, as Payee may from time to time designate by written notice to
Maker), the sum of One Hundred Ten Thousand One Hundred Eighty Eight and 25/100 Dollars
($110,188.25), or so much thereof as may be advanced and outstanding, together with interest on the
principal balance from the date hereof at a rate equal to Zero percent (0 %) per annum.
No interest shall accrue on this Note unless the maturity of this Note has been accelerated as
hereinafter provided.
The principal and interest, if any, of this Note shall be due and payable upon the sale of the
developed real property described below or on August 31, 2012, whichever occurs first ( "maturity ").
Payee agrees to defer and waive repayment of the principal loan amount, but only in the event
Maker: (1) has not at any time been in default under any terms of this Note or any document securing
payment of this Note, including without limitation, the Deed of Trust; (2) has complied with the
affordability requirements to wit, the rehabilitated or newly constructed single family residential
dwelling must be set aside for an individual or family whose annual income does not exceed 120% of
the area median income as defined in the Housing and Economic Recovery Act 2301(f)(3)(A)(i) and
(ii) of 2008 ( "Eligible Household "); (3) has sold the rehabilitated or newly constructed single family
residential dwelling at a sales price not to exceed $110,188.25 (an amount equal to the acquisition cost
of the property and cost to construct such single family residential dwelling to a decent, safe, and
habitable condition); (4) has converted the deferred, waived principal loan amount to a permanent
mortgage loan and/or down payment assistance loan under the NSP Program to an Eligible Household;
and (5) has submitted to Payee evidence fully executed and recorded, if applicable, homebuyer
assistance loans in a total amount not to exceed $110,188.25.
Upon maturity or the sale of the developed lot to an Eligible Household, whichever is earlier,
any deferred, unpaid and unwaived balance remaining hereunder shall be forgiven, but only in the
event Maker has not at anytime been in default under any terms of this Note or any other documents
securing same.
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Computations of interest on the unpaid principal balance of this Note shall be made on the basis
of 365 or 366 days in a year, as applicable.
After maturity (by acceleration or otherwise) and until paid, the unpaid, unwaived principal
balance and accrued interest then due shall bear interest at the lesser of (i) ten percent (10 %) per annum
or (ii) the highest interest rate allowed by Applicable Law ( "Default Interest Rate "). Notwithstanding
any other provision of this Note, the daily Default Interest Rate shall be calculated by dividing the
Default Interest Rate per annum applicable for such day by the actual number of days in the calendar
year (whether 365 or 366).
This Note may be prepaid in part or in its entirety at any time, without notice or penalty but any
amounts prepaid may not be reborrowed. Partial prepayment shall be applied first to accrued and
unpaid interest, if any, with the balance to the principal installments in inverse order of maturity. Any
payment received more than thirty (30) days before it is due shall be considered a prepayment, unless
Maker otherwise designates in writing at the time such payment is made.
Any amounts owing on this Note shall be payable at the address of Payee stated above (or at
such other place in Austin, Travis County, Texas designated by Payee in writing delivered to Maker at
the address of Maker set forth above) in lawful money of the United States of America that is legal
tender for public and private debts at the time of payment. The making of any payment in other than
immediately available funds, which Payee, at its option, elects to accept shall be subject to collection,
and interest shall continue to accrue until the funds by which such payment is made are available to
Payee for its use.
If any payment required under this Note is not paid within 15 days after it becomes due and
payable, then Maker shall pay to Payee, subject to the provisions of this Note limiting the amount of
interest, the payment of a late charge (the "Late Charge ") to compensate Payee for the loss of use of
funds and for the administrative expenses and costs of handling such delinquent payment equal to a
one -time charge of five percent (5.00 %) of the amount of such payment that was not timely paid (but
such Late Charge together with all interest payable hereon shall not exceed the maximum lawful rate
under Applicable Law). The term "Applicable Law" as used herein means (1) the law pertaining to
maximum rates of interest that is now in effect and (2) any law that comes into effect at any time in the
future allowing a higher maximum interest rate than the law now in effect. Payee is not obligated to
accept any past due payment that is not accompanied by a Late Charge, but may accept such payment
without waiving its rights to collect the Late Charge. In no event shall a Late Charge be payable by
reason of the acceleration of the indebtedness evidenced by this Note; therefore, a Late Charge would
only be due and payable with respect to payments under this Note which became delinquent prior to the
acceleration of the indebtedness evidenced hereby.
Maker shall pay a charge of $25.00 for any check returned for any reason.
If this Note is placed in the hands of an attorney for collection or is collected by legal
proceedings of any kind, Maker agrees to pay all costs of collection, including reasonable attorneys' fee
and costs to the extent allowed by law.
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Except as provided in this Note, Maker and each endorser and guarantor of this Note jointly and
severally waive grace, presentment for payment, notice of renewals and extensions, notice of
nonpayment, notice of protest, notice of and demand for payment of installments or other amounts
coming due under this Note that are not paid when due, notice of intent or election to accelerate
maturity or the actual acceleration of maturity of the indebtedness evidenced by this Note, and
diligence in the collection of this Note, in filing suit on this Note and in seizing or foreclosing on any
collateral securing this Note and agree to one or more extensions of maturity and partial payments
before or after maturity without prejudice to rights of the holder of this Note.
This Note is secured by the liens and security interests granted in the deed of trust (with security
agreement and assignment of rents) ( "Deed of Trust ") dated of even date herewith from Maker to
Timothy K. Irvine, Trustee for Payee conveying the following property (hereinafter referred to as the
"Property"):
LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND ADDITION No. 3, a
subdivision within the City of Huntsville, P. Gray League, A -24, Walker County, Texas
according to the map or plat thereof recorded in Volume 1 Page 6 of the Plat Records,
Walker County, Texas.
This Note is given in renewal and extension, and not in extinguishment, of the sum of One
Hundred Six Thousand Seven Hundred Ninety Seven and 65/100 Dollars ($106,797.65), left owing
and unpaid by Maker herein on that one certain promissory note in the original principal sum of One
Hundred Six Thousand Seven Hundred Ninety Seven and 65/100 Dollars($ 106,797.65), dated June 6,
2011, executed by Maker and payable to the order of Payee, more fully described in and secured by a
Deed of Trust of even date therewith to Michael Gerber, Trustee, duly recorded on June 7, 2011 under
Document No.00003718, Volume 983, Page 85, of the Official Public Records of Walker County,
Texas, and all liens, rights and interests securing same are hereby ratified, renewed and bought forward
for the benefit of Payee.
The construction costs will be advanced to Maker at its special instance and request in
accordance with the terms of that certain Construction Loan Agreement dated of even date herewith,
between Maker and Payee (collectively, the "Loan Agreement "), and incorporated herein by reference
for all purposes.
Any default under the Deed of Trust securing this Note shall be deemed to be a default under
this Note. IF ANY PART OF THE COLLATERAL SECURING THIS NOTE IS
TRANSFERRED OR CONVEYED WITHOUT PAYEE'S PRIOR CONSENT, THIS NOTE IS
IMMEDIATELY DUE AND PAYABLE AND PAYEE MAY INVOKE ANY REMEDIES
PROVIDED UNDER THE DEED OF TRUST SECURING THIS NOTE. If the collateral is
residential real property containing fewer than five dwelling units or a residential manufactured
home occupied by Maker, exceptions to this provision are limited to (a) a subordinate lien or
encumbrance that does not transfer rights of occupancy of the property; (b) creation of a
purchase money security interest for household appliances; (c) transfer by devise, descent, or
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operation of law on the death of a co- owner; (d) grant of a leasehold interest of three years or
less without an option to purchase; (e) transfer to a spouse or children of owner or between co-
owners; (f) transfer to a relative of owner or on owner's death; and (g) transfer to an inter vivos
trust in which owner is and remains a beneficiary and occupant of the property
In the event of default in the payment of any part of the principal or interest on this Note and
Maker's failure to cure the default within thirty (30) days after Payee's delivery of written notice of
default to Maker, or in the event of default in the performance of any other agreement contained in the
Loan Agreement or any document securing the payment of this Note or otherwise executed in
connection herewith, and Maker's failure to cure the default within thirty (30) days after Payee's
delivery of written notice of the default to Maker, then the holder of this Note shall have the
unconditional right, without demand, notice, or other action, to declare the unpaid principal balance of
this Note, together with interest accrued on the unpaid principal balance, at once due and payable and
to foreclose each lien and security interest securing the payment of this Note, either under any power of
sale contained in any documents creating such lien or security interest or by court proceedings, as the
holder may elect. Notice shall be deemed to have been delivered upon actual receipt or upon deposit, if
deposited in an official depository of the United States Postal Service, properly addressed to the party
entitled to the notice, marked certified mail, return receipt requested, and containing sufficient postage.
For the purpose of notice, Maker's address is 1212 Avenue M, Huntsville, Walker County, Texas
77340. Maker shall have the right to change its address and specify any other address within the
United States of America by at least ten (10) days' written notice to Payee.
All agreements and transactions between Maker and Payee, whether now existing or hereafter
arising, whether contained herein or in any other instrument, and whether written or oral, are hereby
expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of
the maturity hereof, prepayment, demand for payment or otherwise, shall the amount contracted for,
charged or received by Payee from Maker for the use, forbearance, or detention of the principal
indebtedness or interest hereof, which remains unpaid from time to time, exceed the maximum amount
permissible under Applicable Law, it particularly being the intention of the parties hereto to conform
strictly to the law of the State of Texas and of the United States of America, whichever is applicable.
Any interest payable hereunder or under any other instrument relating to the loan evidenced hereby that
is in excess of the legal maximum under Applicable Law, shall, in the event of acceleration of maturity,
prepayment, demand for payment or otherwise, be automatically, as of the date of such acceleration,
prepayment, demand or otherwise, applied to a reduction of the principal indebtedness hereof and not
to the payment of interest, or if such excessive interest exceeds the unpaid balance of such principal,
such excess shall be refunded to Maker. To the extent permitted by Applicable Law, determination of
the legal maximum amount of interest shall at all times be made by amortizing, prorating, allocating
and spreading in equal parts during the period of the full stated term of the loan, all interest at any time
contracted for, charged or received from Maker in connection with the loan, so that the actual rate of
interest on account of such indebtedness is uniform throughout the term thereof.
This Note shall be governed by and construed in accordance with the laws of the State of Texas
and the United States of America from time to time in effect.
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Notwithstanding anything herein to the contrary, Payee shall have no recourse against Maker,
nor against any guarantor, if any, for payment and performance of all of the obligations, covenants and
agreements of Maker under this Note and the documents securing same including, but not limited to
the Deed of Trust (said documents hereafter collectively called "Security Documents "), except to the
full extent of all of the Property which constitutes security for this Note. If default occurs in the timely
and proper payment of any portion of such indebtedness or in the timely performance of any of such
obligations, agreement or covenants, any judicial proceedings brought by Payee against Maker or any
guarantor shall be limited to the protection and preservation of the Property, the preservation,
enforcement and foreclosure of the liens, mortgages, assignments, rights and security interests now or
at any time hereafter securing the payment of the Note, and enforcement and collection of obligations,
covenants and indebtedness for which Maker and any guarantors remain liable as provided in this
paragraph. If there is a foreclosure of any such liens, mortgages, assignments, rights, and security
interests securing the payment of this Note, by power of sale or otherwise, no judgment for any
deficiency upon such indebtedness shall be sought or obtained by Payee against Maker.
Notwithstanding the foregoing provisions of this paragraph or any other agreement, Payee shall have
full recourse against Maker and all guarantors, if any, for: (a) fraud or misrepresentation by Maker or
any guarantor in connection with the transactions herein contemplated; (b) failure to pay taxes,
assessments, charges for labor or materials or other charges that can create liens on any portion of the
Property; (c) the misapplication of (i) proceeds of insurance covering any portion of the Property, or (ii)
proceeds of the sale or condemnation of any portion of the Property, or (iii) rentals received by or on
behalf of Maker subsequent to the date on which Payee gives written notice of the posting of
foreclosure notices, (d) failure to prevent waste to the Property unless Payee is compensated therefor by
insurance proceeds collected by Maker; (e) the return to Payee of all unearned advance rentals and
security deposits paid by tenants of the Property and not refunded to or forfeited by such tenants, (f) the
return of, or reimbursement for, all personalty taken from the Property by or on behalf of Maker, (g) all
court costs and for all attorneys' fees provided for in any instrument governing, securing or pertaining
to the payment of the Note; and (h) failure to comply with any indemnification provision or covenants
pertaining to environmental matters contained in the Security Documents.
Each term and provision of this Note is expressly subject to the terms and conditions of the
Neighborhood Stabilization Program Contract #77099999126 executed between Office of Rural
Affairs established within the Department of Agriculture, a public and official agency of the State of
Texas, and Maker herein, dated to be effective September 1, 2009 in the original amount of
$1,050,000.00, as assigned and transferred to Payee by assignment of Contract on August 30, 2011 and
as may be amended from time to time ( "NSP Contract "), which provides acquisition and rehabilitation
or new construction of lot(s) development under the NSP; said NSP Contract is incorporated herein by
reference. The terms of the NSP Contract shall govern over any conflicting provisions hereof.
THIS WRITTEN AGREEMENT AND THE OTHER WRITTEN AGREEMENTS,
INCLUDING THE COLLATERAL AGREEMENTS, SIGNED CONTEMPORANEOUSLY
WITH THE SIGNING HEREOF REPRESENT 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.
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MAKER:
CITY OF HUNTSVILLE, a political subdivision of the
State of Texas
By:
Name: Bill Baine
Title: City Manager
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FIRST AMENDMENT TO CONSTRUCTION LOAN AGREEMENT
( "Amendment ")
NEIGHBORHOOD STABILIZATION PROGRAM
Awarding Federal Agency: United States Department of Housing and Urban Development
TDHCA Federal Award Number: B- 08 -DN -48 -0001
Federal Award Year (Year of Award from HUD to TDHCA): 2009
TDHCA Award Year (Year of TDHCA Board Approval): 2009
On June 6, 2011, the TEXAS DEPARTMENT OF HOUSING AND COMMUNITY
AFFAIRS, a public and official agency of the State of Texas ( "Department ") and CITY OF
HUNTSVILLE, a political subdivision of the State of Texas ( "Borrower "), executed a
Construction Loan Agreement ( "Agreement ") which set forth, among other things, the procedure
and requirements for disbursing the loan proceeds of a loan made by Department to Borrower
evidenced by a promissory note from Borrower to Department in the original principal amount of
$106,797.65, as modified on even date herewith to the new principal amount of $110,188.25.
WHEREAS, the parties hereto desire to amend Section 1.11 of the Agreement to revise
the definition of the Completion Date.
NOW, THEREFORE, the parties hereto do hereby amend the definition of Completion
Date in Section 1.11 of the Agreement by deleting the defined term in the Agreement and
inserting in lieu thereof:
Completion Date: The term "Completion Date" shall mean the
date that the Improvements are constructed or rehabilitated to
Completion, but in no event later than August 1, 2012.
Except as amended hereby, the parties agree that all other terms of the Agreement shall
remain in effect as therein set forth and shall continue to govern except to the extent that said
terms conflict with the terms of this Amendment.
By signing this Amendment the parties expressly understand and agree that its terms shall
become a part of the Agreement as if they were set forth word for word therein.
THIS AGREEMENT CONSTITUTES A WRITTEN AMENDMENT TO A
CONSTRUCTION LOAN AGREEMENT AND REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES TO IT 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.
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This Amendment is executed to be effective on August 31, 2011.
AGREED TO AND EXECUTED BY:
DEPARTMENT:
TEXAS DEPARTMENT OF HOUSING AND
COMMUNITY AFFAIRS, a public and official
agency of the State of Texas
By: y/�
Name: , 1 I}r 1C, I pr---)}a
Title: Its duly authorized officer or representative
Date:
T: \Idld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi1e770999991261 \CLAAmendment.doc
Page 2 of 3
BORROWER:
CITY OF HUNTSVILLE, a political subdivision
of the State of Texas
By:
Name:
Title:
Date:
T: \Idld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi1e770999991261 \CLAAmendment.doc
Page 3 of 3
THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND
THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE
HAS COUNTERSIGNED BELOW.
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
STEWART TITLE
GUARANTY COMPANY
We, STEWART TITLE GUARANTY COMPANY, will issue our title insurance policy or policies (the
Policy) to You (the proposed insured) upon payment of the premium and other charges due, and compliance
with the requirements in Schedule B and Schedule C. Our Policy will be in the form approved by the Texas
Department of Insurance at the date of issuance, and will insure your interest in the land described in Schedule
A. The estimated premium for our Policy and applicable endorsements is shown on Schedule D. There may be
additional charges such as recording fees, and expedited delivery expenses.
This Commitment ends ninety (90) days from the effective date, unless the Policy is issued sooner, or failure to
issue the Policy is our fault. Our liability and obligations to you are under the express terms of this
Commitment and end when this Commitment expires.
In witness whereof, the Company has caused this commitment to be signed and sealed as of the effective date
of commitment as shown in Schedule A, the commitment to become valid and binding only when
countersigned by an authorized signatory.
stewart
Countersigned by:
title guaranty company
Mz
zfer�
Aut onzed Countersignat e
Walker County Title Company
Huntsville, TX
Rev. 11/1/09
Ai IIJi•=rI
Senior Chairman of t e Board
tiolv / ' 0
Chairman of the Board
President
rS'CPW21"f
title guaranty company
Form T -7: Commitment for Title Insurance
Stewart Title Guaranty Company
Form Prescribed by Texas Department of Insurance
SCHEDULE A
File No.: 201009849 Effective Date of Commitment: September 20, 2010 at 8:00 a.m
Issued: September 28, 2010 at 8:00 a.m.
1. The policy or policies to be issued are:
a. OWNER'S POLICY OF TITLE INSURANCE (Form T -1 )
(Not applicable for improved one -to -four family residential real estate)
Policy Amount:
PROPOSED INSURED:
b. TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE
-- ONE -TO -FOUR FAMILY RESIDENCES (Form T -1 R)
Policy Amount:
PROPOSED INSURED:
c. LOAN POLICY OF TITLE INSURANCE (Form T -2)
Policy Amount: $106,798.00
PROPOSED INSURED: Texas Department of Housing and Community Affairs
Proposed Borrower: City of Huntsville
d. TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T -2R)
Policy Amount:
PROPOSED INSURED:
Proposed Borrower:
e. LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T -13)
Binder Amount:
PROPOSED INSURED:
Proposed Borrower:
2. The interest in the land covered by this Commitment is:
Fee Simple
3. Record title to the land on the Effective Date appears to be vested in:
CITY OF HUNTSVILLE
(Vesting Deed dated August 20, 2010 from Banco Popular, North Amercia to City of Huntsville, recorded in
Volume 951, Page 539 of the Official Public Records, Walker County, Texas)
4. Legal description of land:
LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND ADDITION No. 3, a subdivision within the City of
Huntsville, P. Gray League, A -24, Walker County, Texas according to the map or plat thereof recorded in Volume 1 Page 6 of
the Plat Records, Walker County, Texas.
Schedule A of this Commitment consists of 1 page(s)
99 -C -1
Stewart
title guaranty company
Form: Commitment for Title Insurance Form Prescribed by Texas Department of Insurance (Revised 04/01/02)
Attached to and made a part of Stewart Title Guaranty Company Commitment for Title Insurance
GF No. 201009849
SCHEDULE B
EXCEPTIONS FROM COVERAGE
In addition to the Exclusions and Conditions and Stipulations, your policy will not cover loss, costs, attorney's fees and
expenses resulting from:
1. The following restrictive covenants of record itemized below (We must either insert specific recording data or
delete this exception):
Volume 128, Page 166 and Volume 256, Page 220 of the Deed Records, Walker County, Texas.
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any
overlapping of improvements.
3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the
Owner Policy only.)
4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments
or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays,
gulfs, or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or
c. to filled -in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that
area or easement along and across that area.
(Applies to the Owner Policy only.)
5. Standby fees, taxes and assessments by any taxing authority for the year2010 and subsequent years, and
subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or .
ownership but not those taxes or assessments for prior years because of an exemption granted to a previous
owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a
previous tax year. (If Texas Short Form Residential Mortgagee Policy of Title Insurance (T -2R) is issued, that
policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year2010
and subsequent years. ")
6. The terms and conditions of the documents creating your interest in the land.
7. Materials furnished or labor performed in connection with planned construction before signing and delivering the
lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the
Mortgagee Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence to us
before a binder is issued.)
8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage.
(Applies to Mortgagee Policy (T -2) only.)
Schedule B of this Commitment consists of 2 page(s)
99 -C -1
Stewart
title guaranty company
Form: Commitment for Title Insurance Form Prescribed by Texas Department of Insurance (Revised 04/01/02)
Attached to and made a part of Stewart Title Guaranty Company Commitment for Title Insurance
GF No. 201009849
9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential
Mortgagee Policy of Title Insurance (T -2R). (Applies to Texas Short Form Residential Mortgagee Policy of Title
Insurance (T -2R) only. Separate exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form
Residential Mortgagee Policy of Title Insurance (T -2R).
10. The following matters and all terms of the documents creating or offering evidence of the matters (We must insert
matters or delete this exception.):
a) One - sixteenth (1 /16th) of all oil, gas and other minerals, the royalties, bonuses, rentals and all other rights described
in instrument dated June 30, 1967 from W. L. Smither, et al to Highland Properties, Inc., recorded in Volume 207,
Page 633 of the Deed Records, Walker County, Texas; reference to which instrument is here made for all purposes,
together with all rights, express or implied in and to the property covered by this Policy arising out of or connected
with said interests and conveyance. Title said interest has not been checked subsequent to date of the aforesaid
instrument.
b) Subject to the restrictive covenants at Volume 128, Page 166 and additional restrictions as set out in instrument
dated December 29, 1972 from Highland Properties, Inc. to Tinsley Enterprises, recorded in Volume 256, Page 220
of the Deed Records, Walker County, Texas.
c) All streets, rights of ways, building lines and utility easements as shown on the subdivision plat recorded in Volume
1, Page 6 of the Plat Records, Walker County, Texas.
d) Any encroachment, encumbrance, violation or adverse circumstance affecting the title that would be disclosed by an
accurate and complete land survey of land.
e) Any easements that may affect the property, such as roadways, sewer, telephone, water and/or electrical lines.
f) Rights of Parties in Possession.
Schedule B of this Commitment consists of 2 page(s)
99 -C -1
Stewart
title guaranty company
FORM: Commitment for Title Insurance From Prescribed by Texas Department of Insurance (Revised 4/1/02)
GF No. 201009849
SCHEDULE C
Your Policy will not cover loss, costs, attorneys fees, and expenses resulting from the following requirements that will
appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date
the Policy is issued:
1. Documents creating your title or interest must be approved by us and must be signed, notarized and filed for
record.
2. Satisfactory evidence must be provided that:
• no person occupying the land claims any interest in that land against the persons named in paragraph 3 of
Schedule A,
• all standby fees, taxes, assessments and charges against the property have been paid,
• all improvements or repairs to the property are completed and accepted by the owner, and that all
contractors, sub - contractors, laborers and suppliers have been fully paid, and that no mechanic's,
laborer's or materialman's liens have attached to the property,
• there is legal right of access to and from the land,
• (on a Mortgagee Policy only) restrictions have not been and will not be violated that affect the validity and
priority of the insured mortgage.
3. You must pay the seller or borrower the agreed amount for your property or interest.
4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the
effective date of this Commitment.
5. Note: Procedural Rule P -27 as provided for in Article (9.39 A of the Texas Insurance Code requires that "Good
Funds" be received and deposited before a Title Agent may disburse from its Trust Fund Account.
6. PLEASE NOTICE: IF AN OLD SURVEY IS GOING TO THE BE USED FOR SURVEY DELETION AND /OR
ANY OTHER REASON IN THIS TRANSACTION, WE WILL REQUIRE A SURVEY AFFIDAVIT SIGNED BY
THE SELLER/BORROWER STATING NO CHANGES HAVE BEEN MADE SINCE THE DATE OF THE
SURVEY PLAT.
7. We will require that all STAND -BY FEES, TAXES and ASSESSMENTS by any Taxing Authority be paid up to and
including the year 2009.
8. At closing, Company must be provided with a photo identification of all parties executing documents.
9. "Rights of parties in possession" shown in the Schedule "B" of this Commitment will be deleted from the Owner's
Title Policy ONLY if an inspection is made and paid for which shown no parties in possession other than the
sellers. If such an inspection is not required, the purchaser must sign a Waiver of Inspection and acknowledge
that they understand that the Owners Title Policy will be issued subject to the Rights of Parties in Possession.
10. Item 2 above will be amended to read "Any shortages in area" in the Mortgagee's Title Policy if we are furnished
with a survey prepared by an approved licensed Surveyor who certifies that there are no discrepancies, conflicts in
boundary lines, or any encroachments, or any overlapping of improvements.
Schedule C of this Commitment consists of 2 page(s)
99 -C -1
stewarte
title guaranty company
FORM: Commitment for Title Insurance From Prescribed by Texas Department of Insurance (Revised 4/1/02)
GF No. 201009849
11. When amending the "area and boundary" exception in the mortgagee policy, the Company may rely upon a copy
of a prior survey and affidavit by the borrower on residential real property if the borrower executes an acceptable
affidavit. The Company may except to matters shown on the survey or the affidavit.
12. We will require that this Company be provided with a REQUEST FOR TAXPAYER IDENTIFICATION NUMBER
AND CERTIFICATION (FORM 1099 -S) executed by the Seller(s) on Sales.
13. We will require that this Company be provided with a INDEMNITY AND AFFIDAVIT AS TO DEBTS, LIENS AND
POSSESSION executed by the Seller(s) or Borrower(s).
14. If the record owner is married, we will require the owner's spouse to join in the conveyance if the property is
community property or is or may become the owner's homestead, either residential or business.
15. In the event the herein described is or would be the Proposed Borrower's Homestead, residential or business, then
we require that the lien be properly created for original purchase money and /or construction of improvements and,
if evidenced by existing liens, such liens transferred and assigned to the Proposed insured.
WALKER COUNTY TITLE COMPANY
BY:
99 -C -1
Authoriz d Counteure
Schedule C of this Commitment consists of 2 page(s)
stewart®
title guaranty company
FORM: Commitment for Title Insurance Form Prescribed by Texas Department of Insurance (04/01/02)
GF Number: 201009849
SCHEDULE D
The information contained in this Schedule (D) does not affect title to or the lien upon the land described in Schedule A hereof, to be
insured in any policy(ies) of title insurance to be issued in accordance with this Commitment.
As to Stewart Title Guaranty Company, the Underwriter herein, the following disclosures are made:
A -1. Shareholders owning, controlling or holding, either personally or beneficially, 10% or more of the shares of Stewart Title Guaranty
Company as of the last day of the year preceding the date hereinabove set forth are as follows:
Stewart Information Services Corporation - 100%
A -2. The members of the Board of Directors of Stewart Title Guaranty Company as of the last day of the year preceding the date
hereinabove set forth are as follows: Stewart Morris, Stewart Morris, Jr., Malcolm Morris, Matthew Morris, Max Crisp, Michael B.
Skalka, C.M. Hudspeth, Bruce Belin, Nita Hanks and Charles Howard.
The four designated officers of Stewart Title Guaranty Company as of the last day of the year preceding the date hereinabove set forth
are as follows: President: Michael B. Skalka, Executive Vice President: Glenn H. Clements, Secretary: Sue M. Pizzitola, Treasurer:
Ken Anderson, Jr.
As to WALKER COUNTY TITLE COMPANY (Title Insurance Agent), the following disclosures are made:
B -1. Shareholders, owners, partners or other persons having, owning or controlling 1% or more of Title Insurance Agent are as follows:
Lloyd C. Martin (50 %), Joe B. Henderson, Jr. (25 %) and Hurlene Savage (25 %)
B -2. Shareholders, owners, partners, or other persons having, owning or controlling 10% or more of an entity that has, owns, or
controls 1% or more of Title Insurance Agent are as follows: n/a
B -3. If Title Insurance Agent is a corporation, the following is a list of the members of the Board of Directors: Lloyd C. Martin, Joe B.
Henderson, Jr. and Hurlene Savage
B -4. If Title Insurance Agent is a corporation, the following is a list of its officers:
President: Lloyd C. Martin
Executive Vice President: Joe B. Henderson, Jr.
Vice President: Hurlene Savage
Secretary/Treasurer: Hurlene Savage
C -1. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this
commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or
corporation receiving any sum from the settlement of this transaction will be disclosed on the closing or settlement statement.
You are further advised that the estimated* title premium is:
Owner's Policy
Loan Policy
Endorsement
Charges
Total
$880.00
$880.00
Of this total amount $ or 15 % (complete one only) will be paid to Stewart Title Guaranty Company; $
or 85% (complete one only) will be retained by Title Insurance Agent; and any remainder of the estimated premium will be paid to
other parties as follows:
Amount Paid to Services
$ or % (complete only one)
$ or % (complete only one)
$ or % (complete only one)
*The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the
amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance.
99 -C -1
stewart®
title guaranty company
99 -C -1
FT (6/2001)
Stewart Title Guaranty Company
PRIVACY POLICY NOTICE
PURPOSE OF THIS NOTICE
File No. 201009849
Title V of the Gramm - Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its
affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the
institution provides you with a notice of its privacy policies and practices, such as the type of information that it
collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the
GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Stewart
Title Guaranty Company
We may collect nonpublic personal information about you from the following sources:
• Information we receive from you, such as on applications or other forms.
• Information about your transactions we secure from our files, or from our affiliates orothers.
• Information we receive from a consumer reporting agency.
• Information that we receive from others involved in your transaction, such as the real estate agent or lender.
Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal
information will be collected about you.
We may disclose any of the above information that we collect about our customers or former customers to our
affiliates or to nonaffiliated third parties as permitted by law.
We also may disclose this information about our customers or former customers to the following types of
nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing
agreements:
• Financial service providers such as companies engaged in banking, consumer finance, securities and insurance.
• Non - financial companies such as envelope stuffers and other fulfillment service providers.
WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE
FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW.
We restrict access to nonpublic personal information about you to those employees who need to know that
information in order to provide products or services to you. We maintain physical, electronic, and procedural
safeguards that comply with federal regulations to guard your nonpublic personal information.
Stewart
title guaranty company
GF No. 201009849
DELETION OF ARBITRATION PROVISION
(Not applicable to the Texas Residential Owner Policy)
ARBITRATION is a common form of alternative dispute resolution. It can be a quicker and cheaper
means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you
give up your right to take the Title Company to court and your rights to discovery of evidence may be
limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award.
Your policy contains an arbitration provision (shown below). It allows you or the Company to require
arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the
Company in case of a dispute over a claim, you must request deletion of the arbitration provision before
the policy is issued. You can do this by signing this form and returning it to the Company at or before
the closing of your real estate transaction or by writing to the Company.
The Arbitration provision in the Policy is as follows:
"Either the Company or the Insured may demand that the claim or controversy
shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of
the American Land Title Association ( "Rules "). Except as provided in the Rules,
there shall be no joinder or consolidation with claims or controversies of other
persons. Arbitrable matters may include, but are not limited to, any controversy or
claim between the Company and the Insured arising out of or relating to this policy,
any service in connection with its issuance or the breach of a policy provision, or to
any other controversy or claim arising out of the transaction giving rise to this
policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less
shall be arbitrated at the option of either the Company or the Insured, unless the
Insured is an individual person (as distinguished from an Entity). All arbitrable
matters when the Amount of Insurance is in excess of $2,000,000 shall be
arbitrated only when agreed to by both the Company and the Insured. Arbitration
pursuant to this policy and under the Rules shall be binding upon the parties.
Judgment upon the award rendered by the Arbitrator(s) may be entered in any
court of competent jurisdiction."
I request deletion of the Arbitration provision.
SIGNATURE: DATE:
99-C-1
Stewart Title Gyt rt®
title guaranty company
CONDITIONS AND STIPULATIONS
1. If you have actual knowledge of any matter which may affect the title or mortgage covered by this Commitment,
that is not shown in Schedule B, you must notify us in writing,. If you do not notify us in writing, our liability to
you is ended or reduced to the extent that your failure to notify us affects our liability. If you do notify us, or we
learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred.
2. Our liability is only to you, and others who are included in the definition of Insured in the Policy to be issued.
Our liability is only for actual loss incurred in your reliance on this Commitment to comply with its requirements
or to acquire the interest in the land. Our liability is limited to the amount shown in Schedule A of this
commitment and will be subject to the following terms of the Policy: Insuring Provisions, Conditions and
Stipulations, and Exclusions.
All notices required to be given the Company and any statement in writing required to be furnished the
Company shall be addressed to it at P.O. Box 2029, Houston, Texas 77252.
STEWART TITLE
GUARANTY COMPANY
- Stewart
•title guaranty company
Database: ItaWalker_WC_LIVE_6 Year: 2007 Instrument #: 1089
lifferr t &TITLE
Return To:
Banco Popular North
America
9600 West Bryn Mawr, 3rd
Floor
Rosemont, IL 60018
[Space Above Tbb Liao For Remedios Data
Volume: 793 Page: 429.00
WARRANTY DEED WITH VENDOR' S LIEN
THE STATE OF TEXAS )(
)( KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF Wa I ker )(
THAT ROSE ANN MCNAMAR, A SINGLE PERSON and TERESA MCNAMAR, A SINGLE
PERSON
, hereinafter called "Grantor" (whether one or more), for and in
consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration to Grantor
paid by OSCAR N. JUAREZ and FLOR DE MARIA NANCY VAZQUEZ, HUSBAND AND WIFE
, hereinafter called "Grantee" (whether one or more), the
receipt of which is hereby acknowledged and confessed, and the flutter consideration of the execution and
delivery by Grantee of one certain Promissory Note in the principal sum of One Hundred N i ne
Thousand Two Hundred Fifty and 00/100
, of even date
herewith, payable to the order of Banco Popu I a North America , A BANKING CORPORATION
hereinafter called " Mortgagee," bearing interest at the rate therein provided; said Note containing the usual
reasonable attorney's fee clause and various acceleration of maturity clauses in case of default, and being
secured by Vendor's Lien and superior title retained herein in favor of said Mortgagee, and being also
secured by a Deed of Trust of even date herewith from Grantee to J . M . CARR
817307JCIM
Warranty Owed With Vendor•, Lion 6105
470(TX) (0500)
VMP Mortgage Solutions, Inc. (000)621 -7291
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Page 1 of 3 Weal: :
, Trustee; and
6080817307
fBk Vol Ps
00001089 OR 793 429
Page 1 of 1
Database: hzWalker WC LIVE 6 Year: 2007 Instrument #: 1089
Volume: 793 Page: 430.00
WHEREAS, Mortgagee has, at the special instance and request of Grantee, paid to Grantor a portion
of the purchase price of the property hereinafter described, as evidenced by the above- described Note, said
Vendor's Lien Ind Deed of Trust lien against said property securing the payment of said Note are hereby
assigned, transferred and delivered to Mortgagee, Grantor hereby conveying to said Mortgagee the said
superior title to said property, subrogating said Mortgagee to all the rights and remedies of Grantor in the
premises by virtue of said liens; and
Grantor has GRANTED, SOLD and CONVEYED, and by these presents does GRANT, SELL and
CONVEY unto said Grantee, the following described property, to -wit:
LOT 9, BLOCK 24, OF HIGHLAND ADDITION NO. 3, IN THE CITY OF HUNTSVILLE,
WALKER COUNTY, TEXAS, ACCORDING TO THE PLAT OF RECORD IN VOLUME 1, PAGE 6
OF THE PLAT RECORDS OF WALKER COUNTY, TEXAS.
Parcel ID Number:
TO HAVE AND TO HOLD the above - described premises, together with all and singular, the rights
and appurtenances thereunto in anywise belonging unto said Grantee, his heirs and assigns, forever. And
Grantor does hereby bind himself, his heirs, executors and administrators, to warrant and forever defend
all and singular the said premises unto said Grantee, his heirs and assigns, against every person
whomsoever lawfully claiming or to claim the same or any part thereof.
Taxes for the current year have been prorated and their payment is assumed by Grantee.
This conveyance is made subject to any and all valid and subsisting restrictions, easements, rights of
way, reservations, maintenance charges together with any lien securing said maintenance charges, zoning
laws, ordinances of municipal and/or other governmental authorities, conditions and covenants, if any,
applicable to and enforceable against the above - described property as shown by the records of the County
Clerk of said County.
The use of any pronoun herein to refer to Grantor or Grantee shall be deemed a proper reference even
though Grantor and/or Grantee may be an individual (either male or female), a corporation, a partnership
or a group of two or more individuals, corporations and/or partnerships, and when this Deed is executed
by or to a corporation, or trustee, the words "heirs, executors and administrators" or "heirs and assigns"
shall, with respect to such corporation or trustee, be construed to mean "successors and assigns."
It is expressly agreed that the Vendor' s Lien is retained in favor of the payee of said Note against the
above- described property, premises and improvements, until said Note and all interest thereon shall have
been fully paid according to the terms thereof, when this deed shall become abso lute.
817307JCIM
44070(TX) (0608)
Pupa2013
6080817307
Bk Vol P9
00001089 OR 793 430
Page 2 of 2
Database: tiuWalker WC LIVE 6 Year: 2007 Instrument #: 1089
Volume: 793 Page: 431.00
B Vol PSI
00001089 OR 793 431
EXECUTED this 8th day of February 2007
42~ an", ))/c-)/ 4041V MUk-
ROSE ANN MCNAMAR TERESA MCNAMAR
GRANTEE'S ADDRESS:
2001 NORMAL PARK ROAD
HUNTSVILLE, TX 77340
STATE OF TEXAS
County ofkialgt✓Deb °rte.S. M Si
Before me on this day personally appeared
ROSE ANN MCNAMAR, A SINGLE PERSON and TERESA MCNAMAR, A SINGLE PERSON
,
known to me or proved to me on the oath of
t s
I '011
or through
to be the person whose nglne is subscribed to the foregoing
en ledged to me that he/sbelthey executed the same for the purposes and consideration
therein expressed.
Given under my band and
r "Y "' "'" , Deborah J. Masse
" y Notary Public .a STATE OF TEXAS,'
817307JC I M My Commi$$iofl leteTo Tx) (osoot ,' „fi'''r Expires 02i44S P1 aMroNwvNAN.4vN MMrr''f M
07
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Page 3 of 3
Database: ' `iixWalkur WC_LIVE_6 Year: �0 Instrument #: 3143 Vol 940 Page: 357
11'S No \WW -23R443 -C
Substitute Trustee's Decd
NOTTCF. OF CONFTT)FNTTATIT( RTOIlTS. JP YOU ARP. A NATURAL PERSON, YOU MAY REMOVE OR
STRIKE ANY OF TTTE FOT.T,OWTI Cr JNPORI+LITIN FROM TFTP rNSTRI J\•1E_NT BEFORE IT 1S FILED FOR
RECORD TN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NI JLi RRR OR YOUR. 1)1tIVER'S
i,TCF.NSF. T. MTiRTY,
STATE OF TEXAS
COUNTY OF Walker
WHF.RFAS, OSCAR N JI!AR[ ANT")._I.J; QR DE MARIA NANCY VAZOUEZ, HUSBAND
AND WIFE. in urder to secure the payment ate Note for the sum set furi)t in said Bute, payable to the ardor of
Banco Popular; North America, made, executed and delivered to J.M. CARR,'ltwlee, a uerlain Deed of
Trull data) 218:2007, resided in Vulume 793. lnstrarnem No. 00001090, Pan: 432 ot'the Rent Property
Records of Walker Cotmty,'1'exas, to which Deed of Ttusr and its rercvd reference is )+are made for a detailed
description of said ?lots, flit rerms and covenaIU, °l aid Deed of Trlt;t, and the lands and premises Were conveyed;
said land being more particularly deeuihed as follows.: •
1.01' 9, I3LDC7IC 24, t)I I11C1111.ANl) ADDDrl'ION NO 3, IN THE CITY OF
HUNTSVILLE, «':4L•KER COUNTY, TEXAS, ACCORDINti'l'O'J'HE PLAT OF
RECORD IN VOLUME 1, l'ACW. 6 UI1'17l>-: PLAT RECORDS OF WA1.KI ?R
COUNTY, TEXAS
iTTERF.AS, .;aid Note together with the liens securing sae [te wet 1rn n.`fcrred and assigned in due course fur value
hettre mantrity rn Tianen Popular, Norll+Aotelicu
VJTTF.RF. A S, i1 is. piorided in said Deed of trust !duct failure to make any oftho payments in the above described
Note as lice sfiue lr'ceuae due and payable, ur failure to comply with any or all of tie covenants and wndiuum uf
said Deed of "!rust, shill. at the optiun of Baste Popular. North Ameriura , Or the legal or equitable holder thereof,
nuiturr the whole uf said Note and in such event or events and at the request ui the owner or holder afield Note
secured by said Deed of Trust. the said Trustee or his succmisors shall eltfurue 'AO Tmstby selling the hereinbefore
described land and premises arcording to law. tmd in act:urdtmec with the pruvisipns of Said Deed of Trust. ail as
more full' set out in said Deed of Trust: J'rust: and,
W71C1U AS, Default was made in the payment uf said note accurding to Ike tints; tenor and effect thereof. and the
legal or equitable owner ur holder of said note, alter alt required notice-, were,grncn, evidenced by Aliidavit u1
Notice re Debrnr; and Alydav it oCMililary 9talus, uII.i Jted hereto and made a parr hetcot, declared the whole [tole
immediately hue air] payable and the Trustee routed in se id Deed of Trust having been removed. the owner And
holder of aid indcltrs,htesa appnin(arl the undersigned el 5ubttiutte Ttuctcc. and requested the trndrraigiard to sell
said land and prcmi.:es neon] ins:. to law and in accordnne with the provieions of said Deed oC Trust, in,atisfaetiou
attic indebtedness :.cured by said Deed. of Ti net And.
V.1- RRF.AR, the hnldnr of the dell. by c rtifed nroU.ltae given when nmicc to the debtor al their Iasi known
address. that rite debtor WAS, in rlefaulr tlrt(lerlhe ,,stars of the Dead of Tins and giving tho drbtur at least dwdoty (lays
to cut the default (or 'Limy days lithe above tefetelnxd Dotal of Tmrt an etanc;i prior to the entire debt being
accelerated and the Nutice of Trusted Sale g,irerl. unit
WHEREAS, the said land above dessaibeJ war advertised fur aide, and written notice; of rat were posted in
act°, (Moue with Ike terms of said Deed uf Dust and in aveurdence with the laws of the State of Texas pertaining to
the foreclosure under the Deed of bus:, at least 21 days preordiug the date of the sale lathe Courthuu o Maur of
Walker Courtly, Irma, and
L'c31 F's
000.3'31 4.3 i3F. 9 4 O ?.47
Page 1 of 1
Database: • 'iixWalker WC_LIVE_6 Year: .0 Instrument #: 3143 Volt 940 Page: 358
TS No. WW- 23$44.3 -c:
wulslu:.nS, the holder of the debt requested the Sulxstiruw Trustee and by this instrument the Substitute Trustee
swears, deposes rind states tmdcr oath that there was served written nonce ofthc proposed ale by certified mad at
leas) twenty -one (21) daysprecedine the date of sale nn each debtor obl'.eatedto pay such debt according to the
records of such )tulder by deposit of the Notice, enclosed in a posrpaid wrapper, properly addressed. to raclt debtor at
the nn Osr Meld address shown by the retards of the holder of the debt, in a post office of official tkptvilory raider
the care need cut Ludy oldie United Stales Postal Set-vim; and aeon). await Notice of Salo was filed with the
County Clark of such County preceding the date oath is sale; and that the Mort'auor(s), bm (their), heirs audio,
'Mips are alive and are not in the military service and were not in the militmy on the day of sale our 9 numbs priur
lo the day of Side.
ME RL:AS, 1. the said Substitute Trustee, after all prerequisite.. required by law andror by saki Deed of Trust have
been duly salislrrd by the huldcruf the Note, and by said Substitute Trustee, did conduct the sale on 5I44,U10, said
gale beginning no earlier than 1:00 PM o'clock and being concluded within 3 hours ofsuch stamen¢ time on the dale
for which said sale was advertised, offering Orc said bind and premises for sale and conducting said sale in the tam
oldie Courthouse designated by the Commissioner's COUR, pnrarant to Section 51.002 of the Texas Property Cudc
as the phiue where foreclosure sales LTC mtake place and if no place was designated by the CommLteione is Court.
the sale was conducted at the plaice where the Notice ofTtvstee's Salo was posted in the County Courthouse; and.
WHEREAS. at 1bne said sale Banco Popular, Korth America, (hereinafter "Cirantee "). whose address is 9tiU0 Long
Apirut Iluuslott, 1'X PO55. bid for said land and premises the sum of S10S,000.00, which was the Wriest and bat
bid offered fur said and and promises, whereupon said land and premises were knocked oh' and sold feu said btuu w
the said eiranWe if r acuutdauce with the terms and provisions of said Deed of Trust;
NOW TT1'FRF,FQRl:. KNOW ALL MEN BY THESE PRESENTS: than 1, the said Subali[ulc'trustee, wood *R(1
appn'Died tattler the leans of said Deed uf'l'rust; acting heroin under and by virtue of power underfed upon nee by
the said Deed of'lruot, and in accordance with die laws of the State of Texas, for and in consideration of the sum bid
a.; afire aitl. whiuh amount has beep applied in accordance with dm terms of said Used of'lrust uu the iadebteduess
inured by il, du hereby. bargain, sell and convey unto the said Grrtrrrtecthc said hereinbeftme described hind and
premises, tugether with all and singular the rights and appurtcnnnces to ate same in anywise belunt:iog.
l'Cr 11AVL AND '[0 HULL) the said pmperty unto the said Grantee, itt uccnsaors and assigns, tbrever. in fee
simple. and 1, the said Suhsdtuts Truster, acting in the cRpooity And roamer afnrc.aid, by virtue ante power vested
iu me under the terms as-aid Dccd of Trust, dohcrelw hind and nhligprc the said moneagor(s ), his (theirs) heirs.
assigns. executors and adrninistrntnr.; m warrant and louver-delved all and singular etc right and citic to said
property unto the said (irantec, its successors and assigns. against every person whomsoever lawfully claiming or to
claim the state or any part thereof:
EXEC :111 LE, this instrument on
.sfrs/rd
K,24.,, 141 l +ovt�
S C:I3STI'fu'I' '1RLS1'l[L
ek
Vrj1 1•9
4 D:jr.)a143 C•f 94x7 3 ..;;1:
Page 2 of 2
batabase:• iixWalker_WC_LIVE_6 Year: .0 Instrument #: 3143 Volt 940 Page: 359
TS No. WW-238443-C
Mote cif Te'x
County nf 54N0 JAC71446
594SCR MET) AND SWORN 10 (OR AFFIRMED) hon./re Satnrirtitla, iitninfiiv on this
dav nf 1"1,4y by 14... /44—.
personally known so inG or proved
tn ine on the basis of satisfactory cvidenoe to ho the pervuu(s) wbv • varrd f<.i v inr
A._ A/kJ h LA.
MAW*
oeY8Ovssee
Auger ;:
RETURN TO: Laud Records of Texas
1325 W. Weinui Hill Lone
Suite 300
Irving, IX 73038
ILMY CON
.f.
7 IOISSIDIS EXPIRES
te; £440/97}10.1034NEDY
knan 11. XV
14,
Sigiia e of Notary Public
Ilahr4 .144,
wiz
MSG
ialltdeetoAVIV8
Ek
rb300;d14 3 OR.
94a
P
Page 3 of 3
Database:. `iixWalker_WC_LIVE_6 Year: 0 Instrument #: 3143 Volt 940 Page: 360
•
Executive Trustee Services, LLC
2255 North Ontario Street, Suite 400
Burbank, California 91504 -3120
T.S.# WW- 238443-: Suatc of California sc
Loan No 608081'73117 County of Loa Angeles
AFFIDAVIT' OF NON- MILiTARY SERVICE
I Sri_ Prischlt being duly sworn_ deposes and says; that
Oscar N Juarez AND Flor De Mario Nancy Vazquez. arc (is) not now, or within the period of
nine months prior to the making cifthis affidavit, ('a) in the Federal Service on active duty as a
member ot'the Army of the United States; or the United Stales Navy, or the United Spiky Air
Force, the Women's volunteer Naval Reserve, or the Marine Corps., or Women's Auxiliary
Morin Corps Reserve, or the Coast Cot ant Reserve, or the Women's Anny Corp. Or as an
officer or the Public Health Service; or (h) in training or being educated under the supervision of
the United States preliminary to induction into the roil itary service cif (t uru3cr orders to report
for induction under the Selective Training and Service Act of 19=10, or (d) a member of the
Enlisted Reserves Corps under (inlets to report for military service, or (e) an American Citizen,
serving wilh the force of any nation allied with the United States in the prosecution of war;
within; the purview of the Soldier's and Sailor's Civil Relict -Act of 1940. as amended or (1)
serving in the armed forces of the United States Pursuant to the Selective Service Act of 1948.
Thal this affidavit is made for the, above r frxenccd Foreclosure for the lnupose of inducing Ken
Hammond and Rebecca Hammond: Noel McNally, Cassandra Inouye or Erika Fuentes without
leave of court lust obtained, to cause said property to be sold under the taros of said decd of
trust pursuant to the power of sale contained therein.
Dated: May 11: 2010
Bv:
Eric
State of California
County of Ims Angeles
SUBSCRIBED and SWORN co (or all-mncd) before me this 11 day of May, 2010, by Eric
Prischtt, proved to me on the basis of satisfactory evidence to be the persons) who
appeared before me.
Signature
Notary Public in and for said State
Seal
Rae
t.lrjorx:. 1 4;3 CiR
I:•.t -
cr1
4r3
F'' g
Page 4 of 4
Database? iixWalker_WC_LIVE_6 Year: .0 Instrument #: 3143 Vol. 940 Page: 361
warAFrSavIi 1410271J
AFFIDAVIT OF MAILING
Executive Trustee Services
Date: 04/01/2010
Ref. No,: 6080817307
M a i lbatchl D: 2134074
STATE OF CALIFORNIA )
COUNTY OF RNERSIDE )
Thu declarant, whose signature appears below, states that he is over the age of eighteen (18)
years; Is employed in Riverside County. Ca'irornia; acting on behalf of Executive Trustee Servipe5;
is not a party to the within action; and that on April 01, 2010, he personally served the Notice, of
which the annexed Is a true copy, by depositing In the United States Mall a copy of such Notice in a
scaled envelope, sent first Class, with postage prepaid, such envelope being addressed to the
person(s) named at the addresses below.
I declare under p inulty of`. erjuy that the foregoing is Lruc and correct.
CC-
Affiant Eddie Solares
22;:2856325
r3N A: 1WW- 23141.0
OSCAR N JL1AR FZ
2001 NORMAL PARK DR
HU NrsvlL.LE. TX 770 -'034
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
}
2232BSS326
T5N C WIN- 235443 -C
FLO R DE MARIA NANCY VAZQUEZ
2001 NORMAI PARK DR
HUNTSVILLF,TX 77340 -4934
u) scrip ed and swom to (or affirmed) bernre me on this day of II (month),
/lL (year), by Eddie Solares, pruved to me on the basis of satisfactory evidence to be the
person who appeared before me.
A L -4BL
1 00
Pap. 1 c11
(Signature of Notary) (scalp! Notary)
.� llVor r F:::au. • ::hnrsa
• •.1 'r.rrl iR1 +•'•;I. =_ v h 2y
�.Pgw�o�rr- `►�r.i�u+0
F31<
Or'00 -3143 11Ft
Vr71
940
7.61
Page 5 of 5
Database: iixWalker_WC_LIVE_6 Year: 0 Instrument #: 3143
Voll. 940 Page: 362
VI
1
w8I A
Mill
14416!
AFFIDAVIT OF MAILING
Executive Trustee Services
Date: D4/01/2010
Ref. ND.: 6080817307
l'lailbatchlD; 283940
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
The declarant, whose signature appears below, states that he i5 over the age of eighteen (18)
years; is employed in Riverside County, California; acting an behalf of executive Trustee Services;
is not a party to the w ;lhln action; and Lhut an April 01, 2010, he personally served the Notice, of
which the annexed is a true copy, by depositing In the United States Mail a copy of such Notice In a
sealed envelope, sent Certified Mail, with postage prepaid, such envelope being addressed to the
persons) named at- the addresses below.
1 declare under pe;n
X
Afiant Eddie Solaces
of perky that the foregoing Is true and correct.
7113 42!7 1474 1198 3509
TSN Y. VAN- 235443 -C
OSCAR N. UARCZ
2X1 NORMAL PARK DR
HUrII SVILLE. TX 77346 4934
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )
7113E20 1474 1.110 0319
TSN * WW- 258443.0
TLOR OF MARIA NANCY VA2QUCZ
20171 NORMAL PARK DR
HUNTSVII I E, TX 77341.49i4
r✓ /!
Sub�scribed and sworn to (or affirmed) before me on this day of �� /s f (month),
!,}()/Q (year), by Eddie Solares, proved to me on the basis of satisfactory evidence to be the
p rson who appeared before me.
/-774-A _ %/..G4
1.00
Page 1 M 1
_ (Signature of Notary) (Seal of Notary}
•
C
C7 :7 !'uU
F:k Vo
rlO0:J3143 OR
94.4
P ,p
.7S 672
Page 6 of 6
batabase. iiltWalker WC_LIVE_6 Year: .0 Instrument #: 3143
Volt 940 Page: 363
Bk
IIv
isoor .:'143 OR
Filer :or Record
Walker Loots
On: NY I$r2010 at 02:30F
A: a
lecordinas
i _urent hushlr. Or;ih:1143
Anoint: 35.00
Rect..: Mincer — 4`'J6S
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STAFE OF TEAS COUNTY EF UAL EB
hershs certi:: that this n truaent uos
filed cn the dot. ow_ Elm ssaaved hcrean h: ae
end ok.h iuls recorded ie the vc)tac wad vase
Di tae ryr,t retards of:
Voi;er County
a5 5hdePK r!r?a:l os le.
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Page 7 of 7
Database: iixWat er_WC_LIVE_6 Year: '0 Instrument #: 5468 Volt 951 Page: 239
Pit/Mr,;
L1a ER ;tuff rr TIRE COMPANY
tin UNIVEHSIn• AVENUE
1?I94.r 11LLE,TE. 37,'",t
I3lc
L+40r,546e. OR
SPhi(:IAI. WAItRANTS'DEED
NOT10E OF CONi•twL.' iTALrrY RIGHTS: 11 rOU %111: n \:VL'L'6AL PtUM> \,
YU6 hue's la }l, t'E Ott sJ'Ittisk; A,1r t)st ALL OI' ,IiC. VOLLO'dING
INFORZL•&IION FROM ANY 1NSIRLMP.N1 ri1AT I'JL►NSt'LILS AN tNTLREAT LY
RB.iL PROV1L1tIY BLI'OILI. L11S 11Lf:J) M IK 62 LL.(:111tn 'i tfe Ft BLit HAA. V1tW5:
YOUR SOCIAL SECUftf'rY NUMBER Olt 'OUR DRIVER'S L1C1•JSI: NLMIILR.
T11r CT:.Tr. 0" !.c
i KNOW ALL MEN 1 Y THESE PI 55ENTS.
COLIN— Y or WALKER 5
Ti, •x, R4NM POPULAR, NORTH AMERICA. whose mailiag; allies is cr;. Stean,t
A.:ar.1 11 runnier: Caramel DJei,(!nri. 2N Alin �1rrr.,.,,,1r260, ItTiDe. Qrh4a C,nry ('m i•nr11•.1
4'i 14 (hemincier can.' "OvalleT i. and calla not and •,all:tbla :A sidrm(iol: it hand pas:! by
(, ITY Or UoNTS►ril:•l•C, a TtxaS Honcc -Role Sinslckpni Corphrsrlhn, wins- inn'I r;
nrdreyn is 1?!) Avenue M, YamrsrilL,. Walla County, I:xl'> 77i4O (I e.ip+trr railed
"fiT.mlee'L lAn -ureter or which is bin -thy ccknory'1sYlrsd, and fee wii.:h nn !inn, exprene or
nnplieal, i. T2lmrlesl err nh,r11 eci.u. hat c g TG•ri, 501.7) nn:d CONVEY! Tr. And b) :hen
p:mein ' J,re. ( :kA N'I'. .Ali l .1. and (;)<V1' Y ur.In the (i:amen a:11F c eer:ain peenenr alaaLci
Ir. Veallt.T t va:ILv. "$CX10. mid dc.. ibc:: s I::Ilnw.r.
L J I NINE ('J), BLOCK 19;1; \ J Y -PGUR i,2.1) of l l R r.` Ll rah L> ALJUi J iO :...\O.
.1, n subdiwision'F'idJU din City et Hsum.•i1L.:, P. Only Lcateu, A -24, Vidrirr
l'outlry, "•rams smead:Ii to ihn asap of plat llamnof retarded iu \ Dunne L. Pt,;? c,
ni the Plnr Rai—duds, WnIker C:71r1y', Ttxas.
Ic.i .ART r ilh ,rl' lad !cling.. uln :Tani Ie ache, rat,nroramanir hv,led aarwi ar alLsed lbr•ckf
(III `IT.r/11rCTtnL4'), ,LrL u I GI' (iT]TI[l+- E tight, rl'ie. and initne.r 1r. ,Ind al ad ea'xdrani .
Lencrlenl.. heredilamenl::; pririkfs and aprdrtelar:.e< in any wily :heir: i ing 1:1 six lard :du.c
Ile•. cn herd (Ihe "I_ncl "', :r Fn-pnarlrer.•a, irallxlire: stithro :: i,rans.un. i•) .,ry land
nddp°1r 1 al :he heel ar,mv hi�h,anc; owl; rand re irral,e. ore° ar Tiniipaixel. d-1 Irani
ahulhr.•; nr.xlannrg the r and, cii) any land lying; in or under Ihn he:L ora any creek, straiun- hu.vJ
Ire zsr.T rar.ning rhx:ugh, ah°ainl; M ncijacent 1a tIn i rind, (iii) any npsrian.•aprndr,su•.r, or
tibia Tigh::; .,t (irnklr appurtenant u + the I.alnl and Tnl:l.ing a>: IITL _ cr sunnwi s..: wa;skcs. lie)
any strips. gins or pieces 1cr printerly ahulurre. !alululi :1g.•r Y•F.IV:1 .rlja5vc1101 4./1-4 11tH: to
As: :.mld.:cn (v) all castrnerna righu- erway. r.letup al IIt4555..rf tb'h's5 an:: If•r..._.IY�T;.•
i,:ltse sus L: Teditlu5 L4 Laud.
PI s coneeAaanre is n;nie ncccptcd aob :o.I to ,fil any n'T n Il renrriainn:, renardaieinn,
revnarou. enndI :ions, noii;lnn ts. easel:news, 100inermanae Thrum% nrel lfr_ hors sccunna said
challis, rip ,ni•lernl ientns and rRSPrxjiag si sjai nni my_Iry ir.lrr'e.4' :um all tither Indies, if
any; .`fperrin1 Mtn pmpmtf, premises Ai impre.vrlprnll C nnsry ?li herein and nIY: 5e. reeee J h: alt
(Nlire of the Cromey Clerk arc :id ('o.,hy, lo Ihls exlrll, hat only lr, the zaU•n .. the went a c n0r.
in Imam and effect and relare is ..r d (=Ivy, rtz nisei ar irnpn+rar •n•a: ray 1;1
as,es,rnrlls den the. year 7I1') avid all tali tlen: yeah and mien/um/ :as'_•snczrlLt (MI IX:ar
yerz, doe In change- in land winger Iv aaarrcl,'p, which (i .,n,ee herelry a,nur 5. and ag,OS :e
ray, ?iii} any and all Ise,'. nrdionrcee ,nr. gni:estrr_rla! Tay'Ienu°s r ,w sp1ai..aldo t0 ta1L
enli,nelhle n-va:net final pmpnty, r erninec nr ice; n+annant' mad ihey all v:ublc or Apparent
elsemerlx, a crlxschrnenla and averImping urirnpruvernenLt. 1(any.
( R,ANI'OR AN 0 GA1tA NEE At:KYUN' LI1)B: V. AND AGREE, 1 IL•►1 GRANTOR
At7011114 tc) THE PI /ION:RIIc 1'HRQIJIJLl FOL LLUSLIM AFO CONAEOUEYT1.Y,
GRANTOR HAS LIY-rLE. Ile ANY. H \OY :LEDGE OF T11 PHYSICaI. OR
ECONOMIC CHAitACI'I:KIS'L4(:S or IRV, MOPERIY. A COR DINC(.V.
L:KAN'rOK HEKL:IJY SPV.(1111:.'►L.LY DISCLAIMS ANY REPRI'10ENTATI(r , IORAJ.
OR WKI1 YASI. ritFS2.NT OR I L'i'UItE. OF. AS TO. OR CLlN'N.ERNIK(:
THE NATURE AND CONDrr1ON OF THE PROPERTY, rvrl,I vlNC, wrrlluui
Vnj
f g
951 2.19
Page 1 of 1
Database: iixWa]ker_WC_LIVE_6 Year: 1.0 Instrument #: 5468 Vol : 951 Page: 240
I tNL IA1J (Ns , tit11 ANIS ALL IMI'J((IV h:SS !ATS sl i l):t C1:J) 1111:RL:(Ifa, ANS' AND
ALL PERSONAL PROPLRTY 5311= A'1't:U I1141N (PH A}'r XEll10 THE PROPERTY
Am) INCLUDED IN THIS SALE,'IBE WA' P...11. SOIL AND GMOLOGY AND THE
,ctITTARITTTV TTIFRF.OP, A'D Ut 111k. rcu111rTY TOR. ANY ANI) ALL
ACTIVTTIF.S A1I t ISe5 WIUCii GRANTEE MAY ELECT TO COND(ICT TTWF,RF.()l,
AND T riv. r)(: VI' ,ao<r ➢.h +li.; r.: \15.NTal HACa RCJS O( 1:V.tii11'IJ,i'i
TLIERr.Ofi OR rOhlrLIA CE WITH ALL APPLICABLE f,AwS, Ku Fs oR
RF,GIII.4TIONS; 01) THF• NAT ERE. AN(I F,(xENT OP ANY k IL.lIT•OF.WAY.
I.RAST, PrIMS WAS' tIN, LIEN, ENC•'US1RRANCE. 1.1(r.WS,i', 12F•SFRYATION•
COMIITIC) N f)R OTIFERMIS,: AND CM) THE COMFIT 1Xrs OF THE PROPERTY
DR rrs DTI :W1.Y1M 1trrll 4NS 1 .4 WS, MUM AN(r.S OR RTf1111 Ailtri.i rrr
ANY 11 O►'1 :I1 )JMVhT OR t1TIIFR R00V. 'IIIE rfM'FVA'Vcr or THE PIMP HMI
IS
'MADE ON AN ^AS 15" fASLS, ATVD GRA'IEF IixP11F5S1.V ACKNt)Wt,t:t)( F4
THAT, C.RS.1%1'0R MAKES NO WARRANTY OR RFP3LrSF.r'rATION, rxritt :s4 (IR
rMPI.1E1), Olt AFt ISINC RV orrRATION OF LAW, INC1.I.0iN( :. 111'7 Nit 1
L.IMIIU 10. ANY WARRANTY OF L:0101710', 1111Inn.1u OAT.
MLCRCHA.\J'AR0Ll'1'Y I)R ErnsEkS volt A PARE N :I)LSuu PI IRi•tl1l:, IN RESPECT
L ILK 1'HorF:ierV
'Ft)1L►►'K AFI)'I'(.1 1N)Ll) .hr said rrenr.ws. r gethcr wilh all mod sinvuler the tibia:.
Ju aajitauu;nls end a r:Judt maces :Inert: unto helonlriub urn the (:rwdce. iU sw:::sns
<)5sia .s. Cotettt_ fun, (ran101 1.14a het city broc C .I I. its saca'.1s:x9. uarruwo>
nI_o�lasl:alcr> to W<,1 l =mi EVtieel Lkrud a)L acel swbw:u 12,r ><.io }cauisc; tom 11
Or nnc' . 1iS Torrmsors hr..i nssiaus, agauosr r•t,:;' pet 3C0 Whodlnwriar .rhsfely (!'i rinc ar :u
o:1. ;iorf ,hc saran et doy' pall 111cnouf. wai.,u GWnlnr Y.:I ant
ntherwive
I:XIicLJTFI) :his rf Jday or Aug.oa. NI n.
RANG 11 Pi 11•111..1 K. NOIFTII ,t4 E1 0CA
Pit. ii r. rlt. or 17:11 1rnRMln S
§
CUUrrY Of O24NG£ §
On this i of
?• t'Ic Au.. 0C 'aflpertannll, nPre r I c. Vk,11 J11� 0; rf rs:m{:dh ha,wn > liner/
,n me inn 1wq,,,61 to me. on the basis nr sorist r.1My tti iewre) to he the pe i. onthj whits!• iu u clY)
io>':ore etbseribed u> the wilhtr. inelroraenl and acknowledged mine Led ha::he exccuxl Ikoc Abp:
jr, l.iS•harrtheir .xlthnrixd capari. (ir•.:), rnd lhal by hit.•her /their xgealurda) on the iooslruorrso(
the reesold.a). or he entity maim hehall'orwhici the per.::misi acted, eseerled the MAIL:rharc.
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00005463 OR 9'37 24C,
Page 2 of 2
IMPORTANT INFORMATION
FOR INFORMATION, OR
TO MAKE A COMPLAINT
CALL OUR TOLL -FREE TELE-
PHONE NUMBER
1- 800 - 729 -1902
ALSO
YOU MAY CONTACT
THE TEXAS DEPARTMENT
OF INSURANCE AT
1- 800 - 252 -3439
to obtain information on:
1. filing a complaint against an insurance
company or agent,
2. whether an insurance company or agent
is licensed,
3. complaints received against an insurance
company or agent,
4. policyholder rights, and
5. a list of consumer publications and
services available through the
Department.
YOU MAY ALSO WRITE TO
THE TEXAS DEPARTMENT OF
INSURANCE
P.O. BOX 149104
AUSTIN, TEXAS 78714 -9104
FAX NO. (512) 475 -1771
AVISO IMPORTANTE
PARA INFORMACION, 0
PARA SOMETER UNA QUEJA
LLAME AL NUMERO GRATIS
1- 800 - 429 -1902
TAMBIEN
PUEDE COMUNICARSE CON
EL DEPARTAMENTO DE SEGUROS
DE TEXAS AL
1- 800 - 252 -3439
para obtener informacion sobre:
1. como someter una queja en contra de una
compania de seguros o agente de seguros,
2. si una compania de seguros o agente de
seguros tiene licencia,
3. quejas recibidas en contra de una compania
de seguros o agente de seguros,
4. los derechos del asegurado, y
5. una lista de publicaciones y servicios para
consumidores disponibles a traves del
Departmento.
TAMBIEN PUEDE ESCRIBIR AL
DEPARTMENTO DE SEGUROS DE
TEXAS
P.O. BOX 149104
AUSTIN, TEXAS 78714 -9104
FAX NO. (512) 475 -1771
- cteWat"t°
title guaranty company
■
STEWART TITLE
GUARANTY COMPANY
TEXAS TITLE INSURANCE INFORMATION
Title insurance insures you against loss resulting from certain
risks to your title.
The commitment for Title Insurance is the title insurance
company's promise to issue the title insurance policy. The
commitment is a legal document. You should review it
carefully to completely understand it before your closing date.
El seguro de titulo le asegura en relacion a perdidas resultantes de
ciertos riesgos que pueden afectar el titulo de su propiedad.
El Compromiso para Seguro de Titulo es la promesa de la
compania aseguradora de titulos de emitir la poliza de seguro de
titulo. El Compromiso es un documento legal. Usted debe leerlo
cuidadosamente y entenderlo completamente antes de la fecha
para finalizar su transaccion.
Your commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your
title. It is a contract to issue you a policy subject to the Commitment's terms and requirements.
Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the title insurance
Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that
determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some
of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions.
These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to
determine the ownership of any mineral interest.
MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless
there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks
involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available
for purchase. If the title insurer issues the title policy with an exclusion or exception to the minerals and mineral rights, neither this
Policy, nor the optional endorsements, ensure that the purchaser has title to the mineral rights related to the surface estate.
Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met.
Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may
want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and
your use of the land.
When your Policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below.
- EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown
on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the
Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy.
- EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or
discussed in the Commitment.
- CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those
of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are
not the same as the Commitment Conditions.
You can get a copy of the policy form approved by the Texas Department of Insurance by calling the Title Insurance Company at 1 -800-
729 -1902 or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy
form from time to time.
You can also get a brochure that explains the policy from the Texas Department of Insurance by calling 1- 800 - 252 -3439.
Before the Policy is issued, you may request changes in the Policy. Some of the changes to consider are:
- Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must
furnish a survey. On the Owner Policy, you must pay an additional premium for the amendment. If the survey is acceptable to
the Company, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments
or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or
survey problems by making special exceptions in the Policy.
-Allow the Company to add an exception to "rights of parties in possession ". If you refuse this exception, the Company or the
title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific
persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the
inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and alow the Company to add
this exception to your Policy.
The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want
to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement.
FORM: Commitment for Title Insurance (Rev. 11/1/09)
stewart
title guaranty company
Database: iixWaticer_WC_LIVE_6 Year: 10 Instrument #: 5468 Voi : 951 Page: 241
.0:3nO5.468 OR
Vej
Filed far Record in;
Maker Counts
9S1
On: hum 24,20!9 at 0:1147;
As c
hecardioas
Caaareat NJr:•t': 0009546E
Mount: 15.04
Receipt lumber - 47099
Efr
Jeans Doan
243
STATE OF FEW MINTY OF WLKER
hereb: c riifs that this instrument was
flied on the date and time starred hereon by me
and mos dale recorded in the Mivre cni Page
ui the named records or:
Walker County
as stonaed hereon be re.
fen 24,2010
dirk: Felten; Ccuntm Clerk
Walker CeJnis
Page 3 of 3
17 /thbv,,O ,41z)2)/7-70,0 , ?s71ficTY0//S
THENCE 11. '16 deg. 24' W. with said fence 120 1 /10 vrs. to an angle
point in said
fence on n 24" red onk troo;
T111i110E N. 40 deg. 39' W. sacral course with said fence 123 3/10 vrs. to its inter-
section with the Northeast lino of tho said 120 acre tract and the Southwest line of tho said
7.5. Adams 37 06 /100 acre tract;
THENCE N. 44 do.;. 21' W. n,^nin with the Northeast line of the said 120 ncrn trn.ct,
at 57 vrs, as the '+Jost corner of the raid Adams 37 86/100 acre trnct and the South corner of
the Ory heath 46 acre tract and at 373 5 /10 vrs. THE PLACE OF BEGINNING.
Witnoss troos inrlcod X. Enc. Vr.r. f1 der. 15' E.
BEING tho same land act out and describod in deed from L.K. Snl.ker and E.L.
Walker to J.C. Walker, datod March 23rd, 1946, and recorded in Volume 116, pn,'o 280, De d
cords of Walker County,Texa3.
THIS COIiV..: »M1CP:, 110WE"1:11, is made `.t'J]J CT To a r ^aorvnt.ion of one.- sixteenth (1 /].Gth)
rnynity, that j3, one -hnUf (1 /2) of tho tt3nnl one- o.3rhth (1/9th) royalty on 411 oil, g03 2ne1
other mi.narnl3, non - purl ;icinotim; a3 to bonus and rontal pnynIeuto, herotoforn oxopted and re-
trained by Gibbs Brothers Company, co- iartn;:rnhip firm of Huntsville., Volker County,'.tc; :r.s.
I0 "''0 AdD 'Pi MOLD tho nlrovc described promises, to0other with all and singular
the ri_'ht•s and a• purtenances thereto in anyniso belonging, unto the said Veterans' Land Board
of the State of Texan, its successors s
a
and signs forever; rover; rod rrr, do hereby bind onrsclves, oar,
heirs, executors and ndmi.nistrators to 9,d7ant and Por•ovor Defend all and sinrntlar the said
promises unto tho said Veterans' Land l;onrd of tho 'State of 'Texas, its 3nccossors and assigns,
against every person nhomsoovor, lawfully cl!riminr or to clrim tho same or any part t.horoof.
IT IS UNDERSIOOD, !!0291 R, that Grantee shall assume all taxes for tho your 1950.
%T'TI .SS nor hands this 3rd dny of February, A.D. 1950.
'•`,9.95 Fed. Rev. Hereon.
THE STATE O1' TEXAS
COUNTY OP V0\17C177
J.C. WALKER.
DORO`iIiY B. WAIKFI1
P1:F0I7s I.5, the undorsi'.ned authority, on this`day personally npneerod J.C. ';lallcor
and wifo, Dorothy fit. a;allcor, both known to me to be tho por' ns whoso nryaee are subscribed to
tho i'orerning instrument, and aelcnoi lod,•od to me thnt they eacli\exocnted the same for the
purposes and cons:1d.orat.ion therein exnrossod; and the said Dorot}: ty B. Walker, wife of .tho sold
J.C. Walker, having been examined by me privily and apnrt from her ushand, and having said
instrument full;; explained to her by me, sho, the said Dorothy £;. Waller, ncknowlcdpod such
instrument to be her net and doed and declared that she had willingly si'-nod the scone for the
purposes and consideration thrrcin expressed, and thnt she dud not wish to retract it.
OIVis11 under, my hand and seal of office, on this llth day of Fobr tery, A.D.1950.
Lillie Welch, 'Notary Public
°cal.
Walker Connty,Tex'ss.
Filed for rocnrd tho llth dny of t'cbrucry, A.D. 1950 nt 9 O'Clock A.M.
Ilocordod the 14th dny of February, A.D. 1950 at 4 O'Clock P.M.
County C A]r Welkor Co.Texos,
.. .. .. .. . t :� ;: t? ,. - � is : :- : •.
,: :: .. ,;� :t is ;t :. .
80. 8049 John T. ;: • : ar ::•as ,t , ;: ;: ..
Smithor, et- nl TO Tho Public RESTRICTIVE COVENANTS
•' •• - -• .•..•
5'OE STATE OF TEXAS
er,t'1,TY OF WALKER I KNOW ALL 1.'Eil BY THESE i'Rh 15 /TS:
U
it
TIM' WE, John Smi
�
. t.hor, Wilbur L. &ei_ther, and Robert B. Smither, of Walker — -
County, Texas, owners of tho hereinafter described real estate, are desirous of subjecting
said real estate to the restrictions, covonants, reservations, easements and controls ns hero
inaftor sponi.:Ci.ed and ctthorined, and hove ns and of tho date hereof mutually covenanted be-
tween ourselves, rhich shall be bindine on our heirs and assigns, for the mutual rrotecti.on of
said property and occh future owner thereof, or of any nart thereof, to insure the hest use
a. girl
most appropriate development to prevent haphazard and inharmonious nprovnments of building sitl
to secure and :aintai.n proper at.r -ot dedications and get -h.
^cics from streets, uniform residen4
al housing;, recreational, coa3lorcial and miscellaneous areas, and in general to stabilize and
enhance the values of investments mado by p „rcha7er3 of building sites therein, to -wit:
to the
The property which in,
I.
and .shall be, hold, conveyed, transferred and sold subject
provisions hereof is situated. in Walker County,
FIRST TRACT: Being all those certain lands
LEAGUE, , Abstract Ilo. 24, in Walker County, Texas, more
n deed from Mary M. Pritchett, et al to John T. Smither
Smither, dated April 18th, 1945 and recorded in Volume
County, Texas, t:XCEPT:
(1) 2 acres, more or less, described in a deed from John T. Smither, et al to (lose
Parkhill, dated May 2nd, 1946 and recorded in Volume 114, pare 460, Deod Records of Walker
County, Texas; and
(2) 86/100 of an acre described in a deed from John T. Smither, et al to Charles
11. 'fhomaeou, et nx dated January 31st, 1947 and recorded in Volume 1].9, pate 166 of the Deod
Records of Walker County, Texas.
SECOIR) TRACT: Being, 5 /lOths of an acre of land described in a deed from Minnie
Alma Yenisei, et vir to John T. &hither, Wilbur L. Smi.thor, and Robert R. 5:•cithor, dated Jul
1pth, 1947 and recorded in Volume 120, page 88, of the Deed liocords of Walker rounty,7exas,
which said land is in the P. GRAY LEAGUE, abstract No. 24, Walker County, Texas.
Reference is hereby made to the above mentioned deeds for further and more com-
plete description of said lands, and for all legal purposes.
11.
These covenants aro to run with the land and shall be binding on all parties
hereto, and all persona claiming under them, until January 1st, 1990, at which time they shal
he automatically extended for successive periods of twenty -five (25) years, unless by a voto
the owners of a. majority of tho area on an election held not more than five (5) years nor
less than throe (3) years prior to the end of any termination period, it is agreed to chnmo
said cnnvenants.
Texas, and .further described as follows
and premises, a part of the P. (RAY
fully described by motes and bounds in
Wilbur L. Smither, and Robert: B.
109, page 470, Deed Records of Walker
v
III.
If the parties hereto, or any of these, or their heirs or assigns, shall violate
or attempt to violate any of the covenants herein, it shall be lawful for any other person or
persons, owning any real property situated in said tract, or the Property Owners' Committee,
or neighborhood Committee, hereinafter provided for, to prosecute any proceedin -s.at law or i
equity against the person or persons violating or attempting to violate any such covenants,
and either to prevent hint or them from so doing or to recover damages, or both, for such vio-
lation.
IV.
Invalidation of any one of those covenants, or any part thereof, or the action
or regulations of the Property Orner:r' Conc:.itto, or ,n 1lei- hhorhood Committee, by jurl ^mcnt or
Court order shall in no vine affect any of the other nrovi.sions, notions or regulations, r;h&c
shell remain in full force end affect.
V.
In order to cnrry out the purposes of these covenants, a supervisory committee
is horeby cronted, which Cnnmtittee shall be conntosed of throe (3) yr•party owners in the r.rca
covered hereby, and to Compose its original membership, we do hereby appoint Robert B. Smiths
for n term of one (1) year, Wilbur L. Smither for n term of trtl (2) years, n.nd John T. Smither
for a term of three (3) years from and after date as the Property r
F' y Owners Cotmnittee for the
purpose of platting, subdividing, establishing sections, arens, streets, rays and thoroughfare-,
and for other ourposen described herein and subject to tho following rules and regulations:
POWERS AND DUTIES:
The jurisdiction of snid Property Owners' Committee shell extend to the entire nreaj
subject; to ::aid covenants, and it shall have the following rowers and duties, wherever in the
exercise of its discretion i) may deem them necessary or advisable, providing•, that nothing
herein contained shall bo doomed to prevent any owner having the contractual right to do so,
from enforcing any protective covenant in his ov.•n name:
First: (a) To have platted anew recorded from time to time sections or subdivisions�
of the even covered hereby, together with npnropriat ;c dedications of public streets and thorour1
fares, which plats shall have each section and the lots and blocks therein designated and identi-
fied, and have shorn the minimum property set -hack lines, side lot linos•and utility easements
anplicnblo to the respective lots, and have attached thereto a designation of tho restrictive
use that may be made of the respective lots and areas included in such section, as to resident -,
iol, single or multiple family occupancy, commercial, recreational, educational, vocational, or
otherwise, n.nd when so rlo, the some shall be as binding hereunder as if originally included
herein.
(b) To approve or disapprove tho external design of all buildings for conformity
and harmony with existing structures in the subdivision, or, if there are no structures, to
determine the architectural character of structures to be placed thereon.
Second: To npprove or.disapprovo the location of all buildings with respect to
existing topograph or proposed finished ground elevations; and the location of all buildin -s
with respect to property ].inns except as otherwise provided in either the recorded covenants or
the recorded plat, or both.
Third: To norfornt such other duties for the benefit of the several owners of said
lots in the subdivision as may be authorized from time to time by vote of said lot owners as
hereinafter rrovidod.
Fourth: To adopt regulations -ovorninr the performance of its duties as set forth
heroin.
INTERI1.1 "ACANCIES:
A vacancy in the membership of the Committee, occurin•; for any reason whatsoever
prior to expiration of terms of offi.co, shall bo filled for tho Unexpired term of tue member
so replaced by appointment of a person elected by a majority vote of the remaining members of
the Committee, or, if less than two members of the Committee remain, by favorable vote of the
ownors of a majority of the lots in the subdivision.
TERM OF OFFICE:
Upon expiration of the term of office of each member originally appointed and for
successive terms thereafter, the vacancy shall be filled by appointment for a period of three
;'oars from the annual expiration ,irate of ono member who shell ho elected by vote of the owners
of n majority of said aroa.
ANNUAL !iL " ;CTIt1I!:
The annual election to soloct n member of the Committee shall be by voto of the
Owners of a majority of the said area at n meeting or by petition hold et the discretion of
'said owners during tho thirty (30) doys nrccoding the expiration date for the ntertho.rshin to
• ho Vinod. '1'heroa.ft ;cr onpn i.ntront shall bo by tho majority troth of tho remaining mombors of
tho Committer)
°f19Y.:; ;lf3 SERVE UNTIL 3!!Ii;nSE'11Ep:
All members of the Committee, previously nnnolnted or elected, shall continuo to
jserve with full powers and duties until reappointed or succeeded in the manner provided.
RP .NIT TO MOTE:
Each ormor may cost votes nt any election equal to the number of lots owned as
set forth on the .recorded plat; filed in the Deed Records of Wnikor County,Toxns, hut where thorb
flis more than ono owner of any lot or loge such joint ovmor.s shell he ontitled to only ono
vote for each lot so armed. In tho area whore no soctinn or subdivision Alai; has been filed,
if tho ormors votes shall he determined by the number of ncros owned.
DASI.S PON D'CISIOPIS:
Tho Conuni.t-teo may require contract plans and specifications for any proposed build
in'; or buildings coming under its jurisdiction bo_'othor with plot plan showing the loention of
said buildings or bu.ildin " ^s, together with any other pertinent dota nece ^ue
ry to its determin-
ation, to 1,0 submitted to it by tho bnildor, or owner, or his or their authorised representati vii
tlormoats for approval shall be either written or printed and shall be nccorinnniod by the noe-
1 essary elate.
i
WUAr COIISITITItTES NOTICE:
A 'Written or printed requost or notice thereof, deposited in the united Statos
Post Office, with postage thereon prepaid and addressed to the chairnnm of the Committee, or
the rnspoctivn ornnrs, at the last; address of record, shell ho deomod to he sufficient and
proper notice for this nurposo, or for any purpose of this contract, where r.ennests or noticos
are required.
D!CISIO1tS:
Notice of decisions of the Conuttitteo shall bo rendered in writing to the a npll-
cnnt. within thirty (50) days after request and plans have boon submitted to it. A rocord of al)
decisions shall he kept by the Committee, except that plans bearing approval or disapproval
shall ^o signed by the Cotmmittee members, or the Chairmen, and returned to the npplioant with
tho decision. Decisions of the Contmitteo may he recorded.
COMMITTEE ACTION NOT REE.UIR!;D.
It is not contempin.tod that Committen action will bo required except whnro there
to evidence of violation. It' tho Committee rails to approve or disapprove tho design or lo-
cation of a building, submitted to it for arnroval, within thirty (30) days after request and
plans hnvo been submitted to it, then such approval is not rooui.rod.
CU-AIRMAN:
The chairman of the Committee shall bo the member first: appointed for a term of
threo (5) ynnrs. Thereafter the Chairman shall be dosiynatod annually by the majority voto of
the Committee. The name of the Chairman shall be placed of record, provided, however, a chair -
.man in offico shall remain no long as he remains n member of tho Committee and until his
successor is olectod and a certificate thereof signed by a majority of the Committee has been
recorded.
ADDITIONAL DUTIES:
The Committee may he authorized or directed from time to time to assume coumntnity
detios other than those described above. Such nuthoriration shall be by vote of the owners of r
-tainrity of said lots and. shall he recorded as a further declaration of their Powers and. Dutie.
in the puhlis reeorrls.
VI.
When a majority of tho lots aro owned by others than the parties signing this i.nstru
cent, or ('sir heirs and le;- »l representatives in any section hereunder which is platted and
recorded, then such majority lot owners may select n neighborhood Committee for their respect ;i
sections, which Neighborhood Committee shall be governed by the same rules and regulations and
be delegated with who some powers and duties rs to the section .involved ns the Property Owners
i :onunitteo is invested with as sot; out in Paragraph V horeinabove. Until such Neighborhood
Cenun.ittee is organized, the Property Owners' Committee shall retain all of its authority over
each section. Nothing herein shall he interpreted to prevent the same person from being a memh
of both the Property Owners' Committee, and one or more neighborhood Committees.
VII.
No residential lot now or hereafter des:lgnnted an such nor any building located ther.
an shall be used or occupied by any person or fancily except of the Caucasian Race, except that
this covenant shall not prevent the residing by domestic servants of a different race on tho
came nrnntlsno with his employer whore employed by nn owner or a tenant.
VIII.
The following .general covenants shall apply toe ach section as the same is subdivide,
platted and placed of record, as horoinbofore provided for:
(a) no building shall be located nearer to t ho front lot line or nearer to the side
street lino than the building setback lines shown on the recorded plat. In any event, no build
in;; shall be located on any residential building plot nearer than thirty (:50) foot to the fron
lot lino, nor nearer than twenty (20) feet to any side street line. No building, except detach
ed garage or other outbuildin,i, located sixty J (60) Poet or more from the front lot line, shall
be located nearer than ton (10) foot to any side lot line.
(h) Ito residential structure shall be erected or placed on any building plot, which
plot has an area of loss than 6,850 square feet or a width of less than sixty (60) feet at the
front building setback line.
(c) no noxious or offensive trade or activity shall bo curried on upon any lot nor
stall nnythlnr be done thereon which may be or become an annoyance or nuisance to the neighbor-
hood.
(d) no trailer, basement, tent, shack, garage, barn,
the tract shall at any time be used as a residence temporarily
structure of a temporary character be used ns a residence.
(e) Utility easements shall be restricted as shorn
attached thereto.
or other outbuilding erected in
or.rermanently, nor shall any
on recorded. plat or provisions
(f) Reasonable varint-ions from established building lines may be authorized by the
Property Owners' Committee or the Neighborhood Committees referred to above in order to c on-
fonn to existing physical conditions on the lot or its surroundings.
(g) Until such time as a sanitary sower system shall have been constructed to serve
the section, a sewage disposal system constructed in accordance with the requirements of the
State Health Department shall be installed to serve each dwelling. The effluent from septic tat
e
r
L'S
141
shall not ho pormi.tL-ed to d:ischnrgo into n stronm, storm sorer, open ditch or grain, unions
it has been first passed through an absorption field approved by the h-+rilth authority.
(h) No fonco, vial.]., hodro, or mass nlanti.n.•; shall bn permitted to a xtond nooror to
any street than the minimum bnlldiu' sntbnck lino except that nothing: shall prevent the erect-
ion of n necossnry rotaining wall, tho top of which does not extend morn than two (2) feet abov8
I thn fi.nishod rrado at the bncic of said rota:ininr nnll.�
'..'HESS 9 9 HANDS nt Huntsville, Texas, thin 2nd day of January, 1950.
John T. Smithcr
Wilbur L. SlnIthor
Robert B. Smithnr
THE STATE OF.TEx.fS
Cn11RTY OF WAidiIER 1
BEFORE NE, the undersigned authority, on this clay personally ny•per.red Jolnl T.
I Smithor, Wilbur L. Smithor, and Robert B. Slni.tlrer, known to mo to bo Lho persons ohoso names
faro snhncribod to the Coro.goin;; instrument, Ind acknowledged to mo that they each exocut.od the
seine for the rurnoaes and consi•ioration thoroin expressed.
GIVEN RIMER LTY HAND AHD SEAL OF OFFICE, this 2nd day of Jnnuary, A.D. 1950.
Seal.
(.laude Thomason, Notary Public,
Walker County,-Tcxas.
iFtiod for record the 14th day of Fnbrrrary, A.D. 1950 nt 9 :35 O'clock A.N.
I Rocor'dod the 14th d ^y of Fobrrrar„, A.D. 1950 nt 5 O'C_incdc P.'•i,
ounty Clerk, Walker County,'Te ns.
T.O. 0047 Luthor E. Hail of ux TO L.H. York • ;: a ;r ;: :: :� :; ;:
OIL, GAS AND r`.T.19 ° ?'AL iEASE
THIS A0REI9EHT, mode this 2nd day of Fobr,lary, 150, hetwoan Luther E. 11.211
and wife. Haney Elizabeth Troll, Lessor (whothor one or moro),'nnd•L.9. York Lessen (•:rhoth -r onn
or wore), WI'i'lJjSsi rH:
1. Lessor in consideration of Ton Dollars (.':10.00), in hand raid, of tho royalties
he,rei.n 1,1'7 1dod, and of the agrenmont. of Lessen horoi.n onn1'otnod ',orrhy grants, :Lenses and
lots o-clncivoly unto Loasco for the nurnoso of investigating, exploring, prospecting, drilling
and mining for and producing nil, gas and all other minorals, rocylin;- gan, laying pJ.po linos,
building tnul ;s, popper strt1ons, telephone lines and other structures tr•.eroon (including
roeycling ^ncd r asolino plants) to produce, save, take 'sro nf, treat, transport and or :n said
nrodncia, and housing its employees to recycle ,as, renrossru'o "orisons with gas input wells,
1;,o foll_owin, rdnscribed land in l:h.lkor County, Texas, to -grit:
All of one hundred twenty (120) acres, aoro or loss, of land not of the C.A.
Sleight Survey, Abstract Ho. 496, and being the same land ns th-t doacribed in a docd from
James 11. ?Tall to Haomi 1.i. Hall, dated December 5th, 1090, and recorded. in Volume• 5, Page 342
of tiro Deed Hocorcds of Walker County, Texas, and further doacribcd in a deed from Sidney E.
Cox rnd rife, Esther E. Cox to Luthor E. 11n11 and wife, Raney Elirnhnth Hall, dated January 4th
1244, a.nd recordnd in Volume 123, Paro 459 of the Dood Records of Wnikor Cnnnty,Te::nn.
For the purpose of calculating the payments and royalt.ios horojn ftor provided for,
said land is catinrttod, to comprise 120 acres, ohothor it actually comprises n:nro or less.
2. Subject to the othor provisions heroin contained, this loose shell be for .a term
of five (5) years from this date (crllod "primary term ") and as long thernaftor as oil, gas
or other :sinoral is produced from said.land or uni.ti.r..ed areo hereunder, and ns long ns operntjn rs
Database: iixWalker WC_LIVE_6 Year: 1967 Instrument #: 1499
o '713
Volume: 207 Page: 633.00
-- 01499-- WILBUR L. SMITHER, ET AL TO HIGHLAND PROPERTIES, INC -- WARRANTY
DEED
Ti'E STATE OF TEXAS
COUNTY GF WALKER 0 KNOW ALL MEW BY THESE PRESENTS:-
THAT WE, WILBUR L. SMITHER and ROBERT B. SMITHER, Individually
and as Independent Executors and Trustees under the will and of
the estate of John T. Smither, deceased, of Walker County, Texas,
for and in consideration of TEN ($10.00) DOLLARS and other valuable
consideration to us passing from HIGHLAND PROPERTIES, INC., the
receipt of which is hereby acknowledged and confessed, have (RANTED,
SOLD AND CONVEYED, and by these presents do GRANT, SELL AND CONVEY,
unto said Highland Properties, Inc., a corporation organized and
existing under and by virtue of the laws of the State of Texas, with
its principal office and place of business in Huntsville, Walker
County, Texas, the following described lands and premises situated
in 'Walker County, Texas, to -wit:
Being out of and a part of the P. GRAY LEAGUE, Abst. No. 24,
Walker County, Texas, within the corporate limits of the City of
Huntsville, Texas, and being all of that part of the land conveyed
in a deed from Mary M. Pritchett et al, to John T. Smither et al,
dated April 18, 1945, and recorded in Vol. 109, page 470 of the
Deed Records of Walker County, Texas, not heretofore sold and
conveyed by the grantees in said deed, lying South of 19th Street
and East of Interstate Highway 45.
This conveyance, however, is made subject to the dedication
-to the City of Huntsville, as and for the use and benefit of the .
public and the abutting property owners thereto, of the streets
set forth in that certain instrument' dated April 3, 1961, recorded
in Vol. 170, page 400 of the Deed Records of Walker County, Texas,
and the amendments thereof.
This conveyance is also made subject to the restrictive cove-
nants applicable to said land as set out in a certain instrument
executed by John T. Smither et al, dated January 2, 1950, and recorded
in Vol. 128, page 166 of the Walker County Deed Records.
Grantors do hereby except from this conveyance a 1 /16th non..
participating royalty on all oil, gas and all other minerals, produced,
saved and marketed from said land.
633
Page 1 of 1
Database: iixWalker WC_UVE_6 Year: 1967 Instrument #: 1499
).°1634
Volume: 207 Page: 634.00
TO HAVE AND TO HOLD the above described premises, together
with all and singular, the rights and appurtenances thereto in
anywise belonging, unto the said Highland Properties., Inc., its
successors and assigns forever; and we do hereby bind ourselves,
our heirs, successors, executors and administrators, to WARRANT
AND FOREVER DEFEND, the said premises unto said Highland Properties,
Inc., its successors and assigns Against all persons whomsoever
lawfully claiming or to claim the same or any part thereof.
WITNESS OUR HANDS this 30th day of June, 1967.
WILBUR L. SNITRIR, Individually and as
Independent Executor and Trustee of the
Estate of John T. Sm ther, deceased.
R$BEWT B. I , Individua ly and as
Independent Executor and Trustee of the
Estate of John T. Smither, deceased.
THE STATE OF TEXAS 1
COUNTY OF WALKER I BEFORE ME, the undersigned authority, on
this day personally appeared Wilbur L. Smither and Robert B. Smither,
known to me to be the persons whose names are subscribed to the
foregoing instrument, and acknowledged to me that they each executed
the same for the purposes and consideration therein expressed, and
in the capacities therein stated.
GIVEN UNDER MY HAND and seal of office this jZdday of June,
1967..
WL�R
'�' OTARY PUBLIC, COUNTY, TEXAS.
FILED FOR RECORD ON THE 1LhDAY OF July , 19_ AT h.nnp M.
224.th DAY OF July i 19_61, AT 8:OOA K.
J.L. FERGUSON, CLERIC
Br epn�.et_ , WALKER COUNTY, TEXAS
RECORDED ON THE
•
Page 2 of 2
- F1.-;0t7RTIES, TO TINSLEY ENTER PRI`_S ---WARRANTv DEED 4`: ;I�•�i:; :t:
LIB
VOL 256 PAG���
(i1S3'7,
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF WALKER §
That, HIGHLAND PROPERTIES, INC. , a Corporation organized
and existing under and by virtue of the laws of the State of Texas, with its
office and principal place of business in Huntsville, Walker County, Texas,
acting herein by its duly authorized officer, hereinafter referred to as
"GRANTOR ", for and in consideration of Ten ($10. 00) Dollars cash in
hand paid by TINSLEY ENTERPRISES, a partnership composed of J. B.
Tinsley, J. David Tinsley and Talmadge Tinsley, hereinafter referred to
as "GRANTEE ", and for the further consideration of advance interest
payment in the amount of Eight Thousand Eight Hundred Forty & No /100
Dollars ($8, 840. 00) and the execution and delivery of one promissory
Note in the amount of One Hundred One Thousand Six Hundred Sixty & No /100
Dollars ($101, 660.00) due and payable December 31, 1973,
bearing interest
from maturity at the rate of eight (8 %) per cent per annum, and providing
for reasonable attorneys fees for collection in the event of default and said
Note is placed in the hands of and attorney for collection or collected
through suit, Probate Court or Bankruptcy Court; has GRANTED, SOLD -
and CONVEYED, and by these presents do GRANT, SELL and CONVEY
unto the said Grantees the following described property situated in Walker
County, Texas:
Being situated in Subdivision No. 3 of the HIGHLAND ADDITION
in the City of Huntsville, Texas and in the P. GRAY LEAGUE, Abstract
No. '24, Walker County, Texas, and further described as follows, to -wit:
PARCEL 1: (a) Being situated in what is referred to as Block
No. 23 of Highland Addition No. 3, beginning on the East line of Interstate
45 at a point South 31° 00' East 258. 0 feet, a stake for corner;
THENCE South 31° 00' East with the East line of Interstate 45,
500 feet to the Southwest corner of said Block No. 23, Stake for corner;
THENCE North 58° 45' East 125 feet, 'stake for corner;
THENCE North 31° 00' West 500 feet, stake for corner;
THENCE South 58° 45' West 125 feet to the PLACE OF
BEGINNING.
PARCEL 1: (b) Being situated in what is referred to as Block
28, HIGHLAND ADDITION, Beginning on the East line of Interstate 45 at a
point North 31° 00' West 200 feet from the intersection of the North line of
22nd Street with the West line of Interstate 45, stake for corner;
THENCE North 59° 00' East 125 feet, stake for corner;
THENCE North 31° 00' West 560. 9 feet to the South line of 20th
Street extention,. being the North line of Block 28, stake for corner;
THENCE South 58° 45' West 125 feet to the West line of Interstate
45, stake for corner;
THENCE South 31° 00' East 560. 9 feet to the PLACE OF
BEGINNING.
Said Parcel 1 -a, and 1 -b is subject to a five (5) foot easement
for utilities along the East line thereof, and Parcel 1 -b is subject to a sewer
line easement in favor of the City of Huntsville for sanitary sewer purposes.
PARCEL 2: (a) Being situated in Block 23, HIGHLAND ADDITION
NO. 3, beginning at the Southeast corner of said Block 23 on the West line
of Normal Park Road at its intersection with the East line of 20th Street
extended, westerly to interstat e 45, stake for corner;
THENCE North 30° 57' West with the West line of Normal Park
Road and the East line of Block 23, 118.0 feet to an iron rod for corner on
curve- of street;
THENCE North 26° 11' West on cord of curve to the right of street
80. 0 feet to an iron rod for corner;
THENCE North 16° 19' West on cord of curve to the right of street
80 feet to an iron rod for corner;
THENCE North 7° 34' West on cord of street 57. 5 feet to aniron
rod for corner;
THENCE South 81° 19' West across block 23, 188.6 feet to an
iron rod for corner;
THENCE S 31° 00' East 400 feet to the South line of said Block
23, stake for corner;
THENCE North 58° 45' East 124.5 feet to the PLACE OF
BEGINNING.
PARCEL 2: (b) Being a part of Block 28 of HIGHLAND ADDITION
NO. 3, Beginning at the Southeast corner of said Block 28 at the intersection
of the West line of Normal Park Road with the North line of 22nd Street, a
stake for corner;
Vac as PAGE 2-'
VOL. a% PAGE ,2.Z
THENCE North 30° 57' West with the West line of Normal Park
Road 762.2 feet to the Northeast corner of said Block 28, stake for corner;
THENCE South 58° 45' West 124.1 feet, stake for corner;
THENCE South 31° 00' East at 560.9 feet to the Northeast
corner of a lot described in a Deed recorded in Volume 235, Page 417,
Walker County Deed Records, containing in all 76. 9 feet to the North
line of 22nd Street, being the South line of said Block 28, stake for corner;
THENCE North 59° 00' East 248. 7 feet to the PLACE OF
BEGINNING.
Said Parcel 2 -a is subject to a five (5) foot utility easement
along its West boundary line, and Parcel 2 -b is subject to a five (5) foot
utility easement along its West boundary line and subject to a sewer line
easement in favor of the City of Huntsville for a sanitary sewer system.
PARCEL 2: (c) 20th Street extended from Normal Park Road
to interstate 45 between Block 28 and Block 23 in HIGHLAND ADDITION NO.
3, and being 12, 475 square feet of land situated between said Block 28 and
Block 23, described as follows:
BEGINNING at the intersection of the West line of Normal Park
Road and the South line of 20th Street extended Westerly toward interstate
45, an iron rod for the Northeast corner of Block 28;
THENCE South 58° 45' West with the South line of 20th Street
extended to interstate 45 and the North line of Block 28, 249.5 feet to an
iron rod for the Northwest corner of Block 28 in the East line of Interstate
45; stake for corner;
THENCE North 31° 00' West with the East line of Interstate 45,
50.0 feet to an iron rod for corner of Block 23 at the North line of 20th Street
extended from Normal Park Road;
THENCE North 58° 45' East with the North line of 20th Street
extended and the South line of Block 23, 249.5 feet to an iron rod for the
Southeast corner of Block 23 in the West line of Normal Park Road, stake
for corner;
THENCE South 30° 57' East with the West line of Normal Park
Road 50.0 feet to the PLACE OF BEGINNING
Said Parcels 2 -a,b and c being subject to a five (5) foot easement
for utilities along the rear line thereof, and a sewer line easement in favor
of the City of Huntsville for sanitary sewer purposes.
PARCEL 3: Being situated in what is referred to as Block No. 24
of HIGHLAND ADDITION NO. 3; beginning at the intersection of the East line
of Normal Park Road and the South line of 20th Street, an iron rod for corner
at the Northwest corner of Block 24;
THENCE North 58° 49' East with the South line of 20th Street an
the North line of Block 24, 125.0 feet to an iron rod for corner;
THENCE South 30° 57' East 652. 9 feet to an iron rod for the North-
east corner of a lot conveyed to Lee Geeslin out of the Southwest corner of
Block 24, stake for corner;
THENCE South 59° 03' West with the North line of Block 24,
125.0 feet to an iron rod for the Northwest corner of said Geeslin lot at
the East line of Normal Park Road and at the West line of Block 24, stake
for corner;
THENCE North 30° 57' West with the East line of Normal Park
Road and the West line of Block 24, 652.3 feet to the PLACE OF BEGINNING.
Said Parcel 3 is subject to a five (5) foot utility easement along the
East line thereof.
PARCEL 4: Being Lots No's. 7 and 8 of Block 17 of Said HIGH-
. LAND ADDITION NO. 3 and further described as follows:
BEGINNING at the intersection of the South line of 22nd Street
with the East line of Normal Park Road for the Northwest corner of Lot No.
8 of Block No. 17, stake for corner;
THENCE South 30° 57' East with the East line of Normal Park Road
150 feet, stake for corner;
THENCE North 59° 18' East 90 feet to the Southeast corner of Lot
No. 8 and the Southwest corner of Lot No. 7, and continuing with the South
line of Lot No. 7, 57. 4 feet to an inside corner, stake for corner;
THENCE North 89° 42' East 18. 3 feet to the Southeast corner of
Lot No. 7 at the Southwest corner of lot No. 5 in said Block, stake for
corner;
THENCE North 0° 50' West with the West line of Lot No. 5 and the
East line of No. 7, 123. 0 feet to the South line of 22nd Street, Stake for corner;
THENCE Westerly following the curve to the South of 22nd Street at
122.0 feet the Northwest corner of Lot no. 7 and the Northeast corner of
Lot No. 8, continuing with the curve additionally 110. 0 feet to the PLACE
OF BEGINNING.
Said Lots No. 7 and 8 in Block 17 are subject to a five (5) foot
utility easement along the South lines of said lots.
This conveyance is subject to the restrictive covenants applicable
to said land per instrument dated January 1, 1950, and recorded in Volume
128, Page 166, Walker County Deed Records and to the following matters:
Said property contained in Parcel 2 -a and Parcel 2 -b may be subdivided into
lots of not less than 80' frontage on the West line of Normal Park Road, and
shall be limited to two family dwellings of not more than two stories in height,
and a minimum set back of not less than 25' from the front lot line on Normal
Park Road, and a minimum of 10' from the side lot line; the property contained
in Parcel 3, may be divided into lots of not less than 80' frontage on the East
side of Normal Park Road and shall be limited to single family dwellings
VOL. a 5b PAGE g„23
VOL 2,5& PAG
of not more than two stories in height, a minimum of 30' set back from the
front lot line and 20' from the side street line, and 10' from the side lot
line for improvements placed on said lots and to said five (5) foot easement
for utilities across the rear lot line; those lots contained in Parcel 4, shall
be limited to single family dwellings of not more than two stories in height,
a minimum set back of 30' from the front lot line, a minimum set back of
20' from the side street line and a minimum of 10' from the side lot lines
for improvement purposes as well as to the five (5) foot easement for
utilities across the rear lot lines; no horses, cows or other animals than
domestic household pets may be kept on or allowed to run at large therein;
no chickens or other fowls may be allowed to run at large or kept in such
a manner as to be a nuisance in the neighborhood, or unhealthy or un-
pleasant to the owners or occupants in the subdivision; Grantor shall reserve
the right to approve plans and specifications for improvements placed on said
premises; and the restrictions contained herein shall be subject to the same
enforcement provisions as set out in paragraph III of said restrictive cov-
enants.
This conveyance is also subject to the reservation of a 1 /16th
non - participating Royalty on minerals produced, saved and marketed from
said land as execpted in the deed to the Grantor of the land of which the above
described premises are a part.
TO HAVE AND TO HOLD the above described premises, together
with all and singular, the rights and appurtenances thereto in anywise be-
longing, unto the said Grantee, its successors and assigns, forever; and
Grantor does hereby bind itself, its successors and assigns, to WARRANT
AND FOREVER DEFEND, all and singular the said premises unto the said
Grantee, its successors and assigns, against every person whomsoever
lawfully claiming or to claim the same or any part thereof, subject only
to the reservations hereinbefore contained.
There is, however, specifically retained the Vendor's Lien on
• said premises in favor of the holder of said note until the full and final
payment thereof, principal, interest and attorney's fees; according to its
face, tenor, effect and reading, when this deed shall become absolute. ,
IN TESTIMONY WHEREOF these presents have been caused to
be executed this 29th day of December, 1972.
"" "THE STATE OF TEXAS
V .
§
HIGHLAND PROPERTIES, INC.
By: ( ac!` : 1/7 i1 1'
Robert B. Smither, President
COUNTY OF WALKER §
BEFORE ME, the undersigned authority, on this day personally
appeared ROBERT B. SMITHER, known to me to be the person and officer
whose name is subscribed to the foregoing instrument, and acknowledged
to me that he executed the same as the act and deed of said corporation
for the purposes and consideration therein expressed, and in the capacity
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 206 -rh'
day of
1971.
NURLEt;E SAVAGE NOTARY PUBLIC in and
Walker County, Texas .
VOL. .5(' PAGL,125
THE STATE OF TEXAS,
COUNTY OF WALKER I, J. L. FERGUSON. CLERK OF THE COUNTY COURT. CERTIFY
THAT THE FOREGOING INSTRUMENT WAS FILED FOR RECORD IN MY OFFICE THE
DAY OF `1YYI 4. , 1973 AT 3 =I'9 O'CLOCK.... M., RECORDED
ON THE 29 DAY OR' -`''° , 1973 AT F :01 O'CLOCK -^ - M.
BY d Z? el APO DEPUTY
COUNTY COURT; 'WALKER COUNTY, TEXAS
WALKER COUNTY TITLE COMPANY
Established 1898
LLOYD C. MARTIN
PRESIDENT
JOE B. HENDERSON, JR.
EXECUTIVE VICE PRESIDENT
City of Huntsville
Attn: Sherry McKibben
1212 Avenue M
Huntsville, Texas 77340
1109 UNIVERSITY AVENUE
HUNTSVILLE, TEXAS 77340
September 16, 2010
Re: GF# 201007634, Banco Popular, North America to
City of Huntsville; Lot 9, Block 24, Highland, Section 3
Dear Ms. McKibben:
HURLENE SAVAGE
VICE PRESIDENT
GENERAL MANAGER
TELEPHONE 936/295 -8173
FAX 936/295 -0371
In connection with the transaction we recently handled for you, we are pleased to enclose your
Owner's Title Policy together with the original recorded Warranty Deed.
Assuring you of our appreciation of this business and looking forward to serving you again.
Cordially,
WALKER COUNTY TITLE COMPANY
dy Thornton
Escrow Officer
Enc.
Serving San Jacinto County Since 1972
Texas Residential Owner's Policy of Title Insurance - One - to-Four Family Residence (2/1/2010)
STEWART TITLE
GUARANTY COMPANY
OWNER'S COVERAGE STATEMENT
This Policy insures your title to the land described in Schedule A — if that land is a one -to -four family residential property or condominium
unit.
Your insurance, as described in this Coverage Statement, is effective on the Policy Date shown in Schedule A.
This document is title insurance. It is not an opinion or report of your title. It is a contract of indemnity, meaning a promise to pay you or
take other action if you have a loss resulting from a covered title risk.
Your insurance under this contract is limited by the following:
• Exclusions on page 2.
• Exceptions in Schedule B, page 4.
• Conditions on pages 2 and 5
We insure you against actual loss resulting from:
• Any title risks covered by this Policy — up to the Policy Amount, and
• Any costs, attorneys' fees and expenses we have to pay under this Policy. We must approve the attorney before the
attorney begins to work. You have the right to disapprove our choice of attorney for reasonable cause.
COVERED TITLE RISKS
This Policy covers the following title risks subject to the Exceptions (p. 4) and Exclusions (p. 2), if they affect your title to the land on the
Policy Date. We do not promise that there are no covered risks. We do insure you if there are covered title risks.
1. Someone else owns an interest in your title.
2. A document is invalid because of improper signature, acknowledgment, delivery, or recording.
3. A document is invalid because of forgery, fraud, duress, incompetency, incapacity or impersonation.
4. Restrictive covenants apply to your title
5. There is a lien on your title because of:
• a mortgage or deed of trust,
• a judgment, tax, or special assessment, or
• a charge by a homeowner's or condominium association.
6. There are liens on your title for labor and material which have their inception before the policy date. However, we will not cover
liens for labor and material that you agreed to pay for.
7. Others have rights in your title arising out of leases, contracts or options.
8. Someone else has an easement on your land.
9. You do not have good and indefeasible title.
10. There are other defects in your title.
11. There are other liens or encumbrances on your title.
This Policy also covers the following title risk:
You do not have any legal right of access to and from the land.
OUR DUTY TO DEFEND AGAINST COURT CASES
We will defend your title in the part or parts of a court case involving a Title Risk covered by this Policy. We will pay the costs, attorneys'
fees, and expenses that we incur in that defense. We will not pay for the parts of a case not involving a covered title risk. You may
disapprove our choice of attorney for reasonable cause.
We can end this duty to defend your title by exercising any of our options listed in Item 4 of the Conditions, see page 5.
This Policy is not complete without Schedules A and B.
Signed under seal for the company, but this Policy is to be valid only when it bears an authorized countersignature.
Countersigned by:
Au orized Counters
ature
Walker County Title Company
Huntsville, TX
T -1R (Rev.2/1/2010)
Stewart
title guaranty company
Senior Chairman of t e Board
Chairman of the Board
Page 1 of
Policy Serial
No.
5890 - 633210
I
President
Stewart®
title guaranty company
File No.: 201007634 T -1R Form Prescribed by Texas Department of Insurance (Revised 02/1/10
Policy No.: 5890 633210
Stewart Title Guaranty Company
TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE
ONE -TO FOUR FAMILY RESIDENCES
SCHEDULE A
Policy Number: 5890 633210 File Number: 201007634
Policy Date: August 20, 2010
Policy Amount: $100,000.00
Premium: $843.00
1. Name of Insured:
City of Huntsville
2. We insure your interest in the land covered by this Policy is:
Fee Simple
3. Legal Description of land:
89 -c -1
LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND ADDITION No. 3, a subdivision within the City of Huntsville,
P. Gray League, A -24, Walker County, Texas according to the map or plat thereof recorded in Volume 1 Page 6 of the Plat
Records, Walker County, Texas.
Stewart Title Guaranty Company
stewart®
.title guaranty company
File No.: 201007634 T -1 R Form Prescribed by Texas Department of Insurance (Revised 02/1/10
Policy No.: 5890 633210
Stewart Title Guaranty Company
TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE
ONE -TO -FOUR FAMILY RESIDENCES
SCHEDULE B
EXCEPTIONS
We do not cover loss, costs, attorney's fees and expenses resulting from:
1. The following restrictive covenants of record itemized below (the Company must either insert specific recording data or
delete this exception):
Volume 128, Page 166 and Volume 256, Page 220 of the Deed Records, Walker County, Texas.
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping
of improvements.
3. Homestead or community property or survivorship rights, if any, of any spouse of any insured.
4. Any titles or rights asserted by anyone, including but not limited to; persons, the public, corporations, governments or other
entities,
a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or
oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or
c. to filled -in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation, or the right of access to that area or
easement along and across that area.
5. Standby fees, taxes and assessments by any taxing authority for the year 2010 and subsequent years, and subsequent taxes and
assessments by any taxing authority for prior years due to change in land usage or ownership but not those taxes or
assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas
Tax Code, or because of improvements not assessed for a previous tax year.
6. The following matters and all terms of the documents creating or offering evidence of the matters (The Company must insert
matters or delete this exception.):
99 -C -1
a. One - sixteenth (1 /16th) of all oil, gas and other minerals, the royalties, bonuses, rentals and all other rights described in
instrument dated June 30, 1967_ from W. L. Smither, et al to Highland Properties, Inc., recorded in Volume 207, Page
633 of the Deed Records, Walker County, Texas; reference to which instrument is here made for all purposes, together
with all rights, express or implied in and to the property covered by this Policy arising out of or connected with said
interests and conveyance. Title said interest has not been checked subsequent to date of the aforesaid instrument.
b. Subject to the restrictive covenants at Volume 126, Page 166 and additional restrictions as set out in instrument dated
December 29, 1972 from Highland Properties, Inc. to Tinsley Enterprises, recorded in Volume 256, Page 220 of the
Deed Records, Walker County, Texas.
c. All streets, rights of ways, building lines and utility easements as shown on the subdivision plat recorded in Volume 1,
Page 6 of the Plat Records, Walker County, Texas.
Stewart Title Guaranty Company
Stewart®
title guaranty company
File No.: 201007634 T -1 R Form Prescribed by Texas Department of Insurance (Revised 02/1/10
Policy No.: 5890 633210
d. Any encroachment, encumbrance, violation or adverse circumstance affecting the title that would be disclosed by an
accurate and complete land survey of land.
e. Any easements that may affect the property, such as roadways, sewer, telephone, water and/or electrical lines.
f. Rights of Parties in Possession.
WALKER COUNTY TITLE COMPANY
BY:
99-C-1
Authorized Countersi ature
Stewart Title Guaranty Company
stewart
-title guaranty company
FT (6/2001)
Stewart Title Guaranty Company
PRIVACY POLICY NOTICE
PURPOSE OF THIS NOTICE
File No. 201007634
Title V of the Gramm- Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its
affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the
institution provides you with a notice of its privacy policies and practices, such as the type of information that it
collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the
GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Stewart
Title Guaranty Company
We may collect nonpublic personal information about you from the following sources:
• Information we receive from you, such as on applications or other forms.
• Information about your transactions we secure from our files, or from our affiliates or others.
• Information we receive from a consumer reporting agency.
• Information that we receive from others involved in your transaction, such as the real estate agent or lender.
Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal
information will be collected about you.
We may disclose any of the above information that we collect about our customers or former customers to our
affiliates or to nonaffiliated third parties as permitted by law.
We also may disclose this information about our customers or former customers to the following types of
nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing
agreements:
• Financial service providers such as companies engaged in banking, consumer finance, securities and insurance.
• Non - financial companies such as envelope stuffers and other fulfillment service providers.
WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE
FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW.
We restrict access to nonpublic personal information about you to those employees who need to know that
information in order to provide products or services to you. We maintain physical, electronic, and procedural
safeguards that comply with federal regulations to guard your nonpublic personal information.
Stewart®
title guaranty company
File No.: 201007634
IMPORTANT NOTICE
To obtain information or make a complaint:
1. You may contact your title insurance agent at (936) 295 -8173.
2. You may call Stewart Title Guaranty Company's toll -free telephone number for
information or to make a complaint: (800) 729 -1900.
3. You may also write to Stewart Title Guaranty Company at P.O. Box 2029, Houston,
TX 77252 -2029.
4. You may contact the Texas Department of Insurance to obtain information on
companies, coverages, rights or complaints at 1- 800 - 252 -3439.
5. You may write the Texas Department of Insurance,
P.O. Box 149104
Austin, TX 78714 -9104
Fax: (512) 475 -1771
Web: http: / /www.tdi.state.tx.us
E -mail: ConsumerProtection @. tdi.state.tx.us
PREMIUM OR CLAIM DISPUTES:
Should you have a dispute concerning your premium or about a claim you should contact
the title insurance agent first. If the dispute is not resolved, you may contact the Texas
Department of Insurance.
ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not become a part or condition of the attached
document.
AVISO IMPORTANTE
Para obtener informacion o para someter una queja:
1. Puede comunicarse con su (title) al (936) 295 -8173.
2. Usted puede Ilamar al numero de telefono gratis de Stewart Title Guaranty
Company's para informacion o para someter una queja al: (800) 729 -1900.
3. Usted tambien puede escribir a Stewart Title Guaranty Company: P.O. Box 2029,
Houston, TX 77252 -2029.
4. Puede comunicarse con el Departamento de Seguros de Texas para obtener
informacion acerca de companias, coberturas, derechos o quejas al: 1- 800 -252-
3439
5. Puede escribir al Departamento de Seguros de Texas:
P.O. Box 149104
Austin, TX 78714 -9104
Fax: (512) 475 -1771
Web: http: / /www.tdi.state.tx.us
E -mail: ConsumerProtection @tdi.state.tx.us
DISPUTAS SOBRE PRIMAS 0 RECLAMOS:
Si tiene una disputa concerniente a su prima o a un reclamo, debe comunicarse con el
agente de seguro de titulo primero. Si no se resuelve la disputa, puede entonces
comunicarse con el departamento (TDI).
UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de informacion y no
se convierte en parte o condicion del documento adjunto.
(i)
99 -c -1
Stewart®
•title guaranty company
EXCLUSIONS
In addition to the Exceptions in Schedule B, we do not insure you against loss, costs, attorneys fees, and expenses resulting from these Exclusions:
1. We do not cover loss caused by the exercise of govemmental police power or the enforcement or violation of any law or govemment regulation. This
includes building and zoning ordinances and laws and regulations concerning:
a. Land use
b. Improvements on the land
C. Land division
d. Environmental protection
This exclusion does not apply to notices of violations or notices of enforcement that appear in the public records at Policy Date. However, there may
be an exception in Schedule B.
2. We do not cover the right to take the land by condemning it, unless:
a. a notice of exercise of the right appears in the public records on the Policy Date, or
b. the taking happened before the Policy Date and is binding on you if you bought the land without knowing of the taking.
3. We do not cover title risks:
a. that are created, allowed, or agreed to by you,
b. that are known to you, but not to us on the Policy Date unless they appeared in the public records,
c. that result in no loss to you, or
d. that first affect your title after the Policy Date — this does not limit the labor and material lien coverage in Item 6 of the Covered Title Risks.
4. We do not cover the effect of failure to pay value for your title.
5. We do not cover lack of a right:
a. to any land outside the area specifically described and referred to in Item 3 of Schedule A,
b. in streets, alleys, or waterways that touch your land
This exclusion does not limit the access coverage in the Covered Title Risks.
6. We do not cover any claim based upon allegations that your purchase of title (or acquisition of title by gift or otherwise):
a. was a fraudulent conveyance, fraudulent transfer, voidable distribution, or voidable dividend;
b. should be subordinated or recharacterized as a result of equitable subordination
c. was a preferential transfer unless;
(1) the Company or its issuing agent failed to timely file for record the deed to you after delivery or
(2) the recordation of the deed to you is not legal record notice.
(We do cover the two types of claims described in c.(1) and c.(2) above.)
7. We do not cover the refusal of any person to buy, lease or lend money on your land because of unmarketability of the title.
8. We do not cover claims conceming the physical condition of your land or of the access to your land.
CONDITIONS
1. DEFINITIONS
a. Actual Loss. This is the difference between the value of your land without the covered title risk and the value of your land with the covered title risk.
These values are the respective values at the time you must fumish proof of your loss.
b. Document. A deed or other conveyance of title to you or a prior owner.
c. Easement. A portion of your land someone else has the right to use for a special purpose.
d. Govemment Regulation. Any federal. state, or local law, constitutional provision, regulation, ordinance, or guideline.
e. Land. The land or condominium unit described in Schedule A and any improvements on the land that are real property.
f. Knowledge or known. Actual knowledge, not constructive knowledge or notice that may be imputed to an insured by the public records.
g. Mortgage. A type of lien on the land such as a deed of trust or other security instrument.
h. Public Records. Those records required by Texas law and maintained by public officials in the county where the property is located that give legal
notice of matters affecting your title.
I. Title. The ownership interest in the land, as shown in Schedule A.
j. We, us or our. The title insurance company. This is Stewart Title Guaranty Company.
k. You, your. The insured.
2. CONTINUATION OF COVERAGE
We insure you as long as you:
a. own your Title,
b. own a mortgage from anyone who buys your Title, or
c. are liable for any Title warranties you make.
We insure anyone who receives your title because of your death.
We do not insure your transferee or assignee.
3. YOUR DUTIES IF YOU MAKE A CLAIM
You must follow this process to make a claim:
a. You Must Give Us Notice of your Claim.
If anyone claims a right against your insured title, you must notify us promptly.
Send the notice to P.O. Box 2029, Houston, Texas 77252 or call 1 -800- 729 -1902 and ask for a claims attomey. If you initially notify us by phone, we
recommend that you also notify us in writing. Please include the Policy number shown in Schedule A. Our obligation to you is reduced or ended if:
you fail to give prompt notice, and
your failure affects our ability to dispose of or to defend you against the claim.
Our obligation is reduced only to the extent that your failure affects our ability to dispose of or to defend you against the claim.
b. You Must Give Us Proof of Your Loss if We Request It.
You must send to us, if we request, your signed proof of loss within 91 days of our request on a standard form supplied by us. Within 15 days after we
receive your notice of claim, we must request a signed proof of loss. If not, we waive our right to require a proof of loss. This waiver will not waive our
other rights under the policy. The statement must have the following information to the best of your knowledge:
(1) the Covered Title Risks which resulted in your loss,
(2) the dollar amount of your loss, and
(3) the method you used to compute the amount of your loss.
c. You Must Provide Papers We Request.
We may require you to show us your records, checks, letters, contracts, and other papers that relate to your claim of loss.
We may make copies of these papers.
If you tell us the information is confidential, we will not disclose it to anyone else unless we reasonably believe the disclosure is necessary to administer the
claim.
d. You Must Answer Questions Under Oath.
We may require you to answer questions under oath.
Page 2 (Conditions continued on Page 5)
�
cd wart®
title guaranty company
e. Effect of Failure to Cooperate.
Our obligation to you reduces or ends if you fail to refuse to:
(1) (a) provide a statement of loss.
(b) answer our questions under oath, or
(c) show us the papers we request, and
(2) your failure or refusal affects our ability to dispose of or to defend you against the claim.
4. OUR CHOICES WHEN YOU NOTIFY US OF A CLAIM
a. After we receive your claim notice or in any other way leam of a matter for which we are liable, we can do one or more of the following:
(1) Pay the claim against your title
(2) Negotiate a settlement.
(3) Prosecute or defend a court case related to the claim.
(4) Pay you the amount required by this Policy.
(5) Take other action under Section 4b.
(6) Cancel this policy by paying the Policy Amount, then in force, and only those costs, attorneys' fees and expenses incurred up to that time
that we were obligated to pay.
We can choose which of these to do.
b. If you report to us that a covered title risk exists, we will promptly investigate to determine if that covered title risk is valid and not barred by law or
statute. A covered title risk is a title risk that this Policy does not exclude or except.
If we conclude that your claim, or any part of your claim, is covered by the policy, we will take one or more of the following actions to the extent that it is
covered:
(1) Institute all necessary legal proceedings to clear the title to the property;
(2) Indemnify you pursuant to the terms of the policy;
(3) Issue a new title policy without making exception to the covered title risk. If another insurer issues the new title policy to your
purchaser, lender or other transferee without making exception to the covered title risk, we will indemnify the other insurer.
(4) Secure a release of the covered title risk.
c. If we deny your claim, or any part of your claim, not more than 15 days after we deny the claim, we will:
(1) notify you in writing, and
(2) give you the reasons for denial of your claim in writing.
5. HANDLING A CLAIM OR COURT CASE
You must cooperate with us in handling any claim or court case and give us all relevant information.
We must repay you only for those settlement costs, attorneys' fees and expenses that we approve in advance.
When we defend or sue to clear your title, we have a right to choose the attorney. You have the right to disapprove our choice of attorney for
reasonable cause. We can appeal any decision to the highest court. We do not have to pay your claim until your case is finally decided.
We do not agree that the matter is a covered title risk by defending.
6. LIMITS OF OUR LIABILITY
Our liability is limited by the following:
a. We will pay up to your actual loss or the Policy Amount in force when the claim is made — whichever is less.
b. If we remove the claim against your title with reasonable diligence or take other action under this policy after receiving notice of it, we will
have no further liability for it.
c. All payments we make under this policy — except for costs, attorneys' fees and expenses — will be subtracted from your Policy Amount.
d. If the Covered Title Risk is an easement, we may pay an insured mortgage holder instead of paying you when a written agreement
between you and the mortgage holder allows. If the claim involves another Covered Title Risk, we may pay the mortgage holder instead
of paying you. The amount paid to the mortgage holder is considered a payment to you under your policy and will be subtracted from
your policy amount.
e. If you do anything to affect any right of recovery or defense you may have, we can subtract from our liability the amount by which you
reduced the value of that right or defense. But we must add back to our liability any amount by which our expenses are reduced as a
result of your action.
7. TRANSFER OF YOUR RIGHTS
When we settle a claim, we have all the rights you had against any person or property related to the claim. You must transfer these rights to us
when we ask, and you must not do anything to affect these rights. You must let us use your name in enforcing these rights.
We will not be liable to you if we do not pursue these rights or if we do not recover any amount that might be recoverable
With the money we recover from enforcing these rights, we will pay whatever part of your loss we have not paid. We have a right to keep what
is left.
8. ARBITRATION
If it is permitted under Texas or federal law, you and we may agree to arbitration when you file a claim.
The arbitration may decide any matter in dispute between you and us
Arbitration is one means of altemative dispute resolution. It may lessen the time and cost of claims settlement. You may wish to consider
another form of mediation or use the court system. If you choose arbitration, you may give up some discovery rights and your right to sue.
The arbitration award may:
a. include attomeys' fees if allowed by state law, and /or
b. be entered as a judgment in the proper court.
The arbitration shall be under the Title Insurance Arbitration Rules of the American Arbitration Association. You may choose current Rules or
Rules in existence on Policy Date.
The law used in the arbitration is the law of the place where the property is located.
You can get a copy of the Rules from us.
9. ENTIRE CONTRACT PROVISION
This policy and any endorsements we attach are the entire contract between you and us.
Any claim you make against us must be under this Policy and subject to its terms.
10. COMPLAINT NOTICE
Should any dispute arise about your premium or about a claim that you have filed, contact the agent or write to us. OUR TOLL -FREE
NUMBER IS 1-800 -729 -1902. If we do not resolve the problem, you also may write the Texas Department of Insurance, P.O. Box 149091,
Austin, TX 78714 -9091, Fax No. (512) 475 -1771. THE TOLL -FREE NUMBER FOR THE TEXAS DEPARTMENT OF INSURANCE IS 1-800-
252 -3439.
This notice of complaint procedure is for information only. It does not become a part or condition of this policy.
Page 5
e art®
-tit guaranty company
OWNER'S INFORMATION SHEET
Your Title Insurance Policy is a legal contract between you and Stewart Title Guaranty
Company. This policy is not an opinion or report of your title. It is a contract of indemnity,
meaning a promise to pay you or to take other action if you have a loss resulting from a covered
title risk.
It applies only to an improved one -to -four family residential property or condominium unit. If
your land is not either of these, contact us immediately.
Su Poliza de Seguro de Titulo es un contracto legal entre usted y Stewart Title Guaranty
Company. Esta poliza no es una opinion o reporte en relacion a su titulo de propiedad. Es un
contracto de indemnificacion, esto es, la promesa de reemolsarle o de tomar cualquier otro tipo
de accion si usted sufre una perdida como resultado de cualquier riesgo cubierto por la poliza.
Esta forma de poliza ha sido designada para ser utilizada exclusivamente en los casos de
propiedades en las cuales hay construidas viviendas para no mas de cuatro familias o en los
casos de unidades en condominios. Si su propiedad no es ninguna de las anteriores, por favor,
notifiquenos inmediatamente.
We insure you against certain risks to your land title. We list these risks on page 1. The
following limit your coverage:
• Exclusions on page 2.
• Exceptions on Schedule B.
• Conditions on pages 2 and 5.
You should keep the policy even if you transfer the title to your land. If you want to make a
claim, see section 3 under Conditions on page 2.
You do not owe any more premiums for the Policy.
This sheet is not your insurance Policy. It is only a brief outline of some of the important Policy
features. The Policy explains in detail your rights and obligations and our rights and obligations.
The Policy -- and not this sheet -- is the legal document. YOU SHOULD READ THE POLICY
VERY CAREFULLY.
THE TOLL -FREE NUMBER OF STEWART TITLE GUARANTY COMPANY IS 1- 800 -729-
1902. YOU MAY CALL THIS NUMBER TO DISCUSS THIS POLICY OR TO MAKE A
COMPLAINT. YOU MAY WRITE TO STEWART TITLE GUARANTY COMPANY AT THE
ADDRESS IN SECTION 3 UNDER CONDITIONS ON PAGE 2.
FStPwart®
title guaranty company
STEWART TITLE
GUARANTY COMPANY
TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE
ONE -TO -FOUR RESIDENCES
TABLE OF CONTENTS
1 PAGE
OWNER'S COVERAGE STATEMENT 1
COVERED TITLE RISKS 1
OUR DUTY TO DEFEND AGAINST COURT CASES
SCHEDULE A
Policy Number, Date and
1
3
6
Amount 6
1. Name of Insured 6
2. Interest in Land Covered 6
3. Description of Land
SCHEDULE B EXCEPTIONS 7
EXCLUSIONS 2
CONDITIONS 2 and 4
1. Definitions 2
2. Continuation of Coverage 2
3. Your Duties if You Make a Claim 2
4. Our Choices When You Notify Us of a Claim 3
5. Handling a Claim or Court Case 3
6. Limitations of Our Liability 3
7. Transfer of Your Rights 3
8. Arbitration 3
9. Entire Contract Provision 3
10. Complaint Notice 4
slewart
title guaranty company
Ratt1rP
WALKER COUNTY TIT LE COMPANY
,1109 UNIVERSITY AVENUE
ul'NTSVILLE, TEAS 77343 f
GF #a�0 /v Fi7 4'3/`
[31<
00005468 OR
SPECIAL WARRANTY DEED
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OR ALL Oc TIIE FOLLOWING
INFORMATION FROM ANY 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.
THE STATF. OF TEXAS §
§
COUNTY OF WALKER §
KNOW ALL MEN BY THESE PRESENTS:
That, BANCO POPULAR, NORTH AMERICA, whose mailing address is c/o Stewart
Asset Recovery. Carmen Delgado, 290 Main Street, Suite 260. Irvine, Orange County, California
92614 (hereinafter called "Grantor "), and other good and valuable consideration in hand paid by
CITY OF HUNTSVILLE, A Texas Home -Rule Municipal Corporation, whose mailing
address is 1212 Avenue M, Huntsville. Walker County, Texas 77340 (hereinafter called
"Grantee "), the receipt of which is hereby acknowledged, and for which no lien, express or
implied, is retained or shall exist, has GRANTED, SOLD and CONVEYED, and by these
presents does GRANT, SELL and CONVEY unto the Grantee, all that certain property situated
in Walker County, Texas, and described as follows:
LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND ADDITION, NO.
3, a subdivision within the City of Huntsville, P. Gray League, A -24, Walker
County, Texas according to the map or plat thereof recorded in Volume 1, Page 6
of the Plat Records, Walker County, Texas.
together with all buildings, structures or other improvements located thereon or affixed thereto
(the "Improvements "), and all of Grantor's right, title and interest in and to all easements,
tenements, hereditaments, privileges and appurtenances in any way belonging to the land above
described (the "Land ") or Improvements, including, without limitation, (i) any land to the
midpoint of the bed of any highway. street, road or avenue, open or proposed. in front of,
abutting or adjoining the Land, (ii) any land lying in or under the bed of any creek, stream, bayou
or river running through, abutting or adjacent to the Land, (iii) any riparian, appropriative, or
other rights of Grantor appurtenant to the Land and relating to surface or subsurface waters, (iv)
any strips, gores or pieces of property abutting, bounding or which are adjacent or contiguous to
the Land, and (v) all easements, rights -of -way, rights of ingress or egress and reversionary
interests benefiting the Land.
This conveyance is made and accepted subject to (i) any and all restrictions, reservations,
covenants, conditions, ordinances, easements, maintenance charges and the liens securing said
charges, all mineral leases and outstanding mineral and royalty interests and all other matters, if
any, affecting the property, premises or improvements conveyed herein and now of record in the
Office of the County Clerk of said County, to the extent, but only to the extent, the same are now
in force and effect and relate to said property, premises or improvements, (ii) all taxes,
assessments for the year 2010 and all subsequent years and subsequent assessments for prior
years due to change in land usage or ownership, which Grantee hereby assumes and agrees to
pay, (iii) any and all laws, ordinances and governmental regulations now applicable to and
enforceable against said property, premises or improvements, and (iv) all visible or apparent
easements, encroachments and overlapping of improvements, if any.
GRANTOR AND GRANTEE ACKNOWLEDGE AND AGREE THAT GRANTOR
ACQUIRED THE PROPERTY THROUGH FORECLOSURE AND CONSEQUENTLY,
GRANTOR HAS LITTLE, IF ANY, KNOWLEDGE OF THE PHYSICAL OR
ECONOMIC CHARACTERISTICS OF THE PROPERTY. ACCORDINGLY,
GRANTOR HEREBY SPECIFICALLY DISCLAIMS ANY REPRESENTATION, ORAL
OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, OR CONCERNING (I)
THE NATURE AND CONDITION OF THE PROPERTY, INCLUDING, WITHOUT
e,need for
V 1
951
ti
LIMITATION, A,Nl AND ALL IMPROVEMENTS SITUATED "THEREON, ANY AND
ALL PERSONAL PROPERTY SITUATED UPON OR AFFIXED TO THE PROPERTY
AND INCLUDED IN THIS SALE, THE WATER, SOIL AND GEOLOGY AND THE
SUITABILITY THEREOF, AND Of THE PROPERTY FOR ANY AND ALL
ACTIVITIES AND USES WHICH GRANTEE MAY ELECT TO CONDUCT THEREON,
,N1.) THE EXISIENCE O1' Ai\'2 IRON\SENTAL HAZARDS OR CO: \Li1w,∎
THEREON OR COMPLIANCE WITH ALL APPLICABLE LAWS, RULES OR
REGULATIONS; (1I) THE NATURE AND EXTENT OF ANY RIGHT -OF -WAY,
LEASE, POSSESSION, LIEN, ENCUMBRANCE, LICENSE, RESERVATION,
CONDITION OR OTHERWISE; AND (III) THE COMPLIANCE OF THE PROPERTY
OR ITS OPERATTON WITH ANY LAWS, ORDINANCES OR RFGUI- ATIONS OF
ANY GOVERNMENT OR OTHER BODY. THE CONVEYANCE OF THE PROPERTY
IS MADE ON AN "AS IS" BASIS, AND GRANTEE EXPRESSLY ACKNOWLEDGES
THAT, GRANTOR MAKES NO WARRANTY OR REPRESENTATION, EXPRECC OR
IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING, BUT NOT
LIMITED TO, ANY WARRANTY OF CONDITION, HABITABILITY,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, IN RESPECT
TO THE PROPERTY
TO HAVE AND TO HOLD the said premises, together with all and singular the rights,
hereditaments and appurtenances there unto belonging unto the Grantee, its successors and
assigns, forever; and, Grantor does hereby bind itself, its successors, executors and
administrators to Warrant and Forever Defend all and singular the said premises unto the
Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to
claim the same or any part thereof, when the claim is by, through or under Grantor but not
otherwise.
EXECUTED this
day of August, 2010.
BANCO POPULAR, NORTH AMERICA
By
Name
Title
THE STATE OF CALIFORNIA §
COUNTY OF ORANGE §
On this day of Aug t 201 rg, rile, \, v 11 l ( $ ( 0 # , Notary
Public, personally appeared 010 , personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is /are subscribed to the within instrument and acknowledged to me that he /she executed the same
in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS MY HAND AND OFFICIAL S
2
Bk Val P9
00005468 OR 951 240
B I<
00005468 OR
Vol
951
Filed for Record in:
Walker County
On: Aug 2472010 at 03:47P
As a
Recordings
Document Number: 00005468
Amount: 15.00
Receipt Number - 47009
By,
Jeans Doan
Ps
241
STATE OF TEXAS COMITY OF WALKER
I hereby certify that this instrument was
filed on the date and time stamped hereon by me
and was duly recorded in the volume and page
of the named records of:
Walker County
as stamped hereon by me.
Aug 2472010
James Patton, County Clerk
Walker County
EXECUTED on this day of
THE STATE OF TE §
COUNTY OF §
20 // .
OWNER/CONTRACTOR:
CITY OF HUNTSVILLE, a political subdivision
of the State of Texas
By:
Name: Bill Baine
Title: City Manager
SWORN TO, SUBSCRIBED AND ACKNOWLEDGED before me on this day of
, 2011, by Bill Baine, City Manager of CITY OF HUNTS ' LLE,
a political subdivision of the State of Texas, acting on behalf of said political subdivision and in
the capacity herein stated.
JUDY ANN THORN
MY COMMISSION EXPIRES
August 14, 2014
tate of Texas
T: \Idld \Loan Docs \NSP \Interim Construction Loans \1261 City of Huntsville \Interim Construction Loan Agreement2.doc
Page38of44
THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND
THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE
HAS COUNTERSIGNED BELOW.
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
STEWART TITLE
GUARANTY COMPANY
We, STEWART TITLE GUARANTY COMPANY, will issue our title insurance policy or policies (the
Policy) to You (the proposed insured) upon payment of the premium and other charges due, and compliance
with the requirements in Schedule B and Schedule C. Our Policy will be in the form approved by the Texas
Department of Insurance at the date of issuance, and will insure your interest in the land described in Schedule
A. The estimated premium for our Policy and applicable endorsements is shown on Schedule D. There may be
additional charges such as recording fees, and expedited delivery expenses.
This Commitment ends ninety (90) days from the effective date, unless the Policy is issued sooner, or failure to
issue the Policy is our fault. Our liability and obligations to you are under the express terms of this
Commitment and end when this Commitment expires.
In witness whereof, the Company has caused this commitment to be signed and sealed as of the effective date
of commitment as shown in Schedule A, the commitment to become valid and binding only when
countersigned by an authorized signatory.
r tewart
title guaranty company
.'(LE ;SP9
44-(.1.000 ++tee .i
*
i • 1908 .
Countersued by:
Auth s rized ountersignature
Walker County Title Company
Huntsville, TX
Rev. 11/1/09
Senior Chairman of t e Board
Chairman of the Board
President
Stewart®
title guaranty company
CONDITIONS AND STIPULATIONS
I. If you have actual knowledge of any matter which may affect the title or mortgage covered by this Commitment,
that is not shown in Schedule B, you must notify us in writing,. If you do not notify us in writing, our liability to
you is ended or reduced to the extent that your failure to notify us affects our liability. If you do notify us, or we
learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred.
2. Our liability is only to you, and others who are included in the definition of Insured in the Policy to be issued.
Our liability is only for actual Loss incurred in your reliance on this Commitment to comply with its requirements
or to acquire the interest in the land. Our liability is limited to the amount shown in Schedule A of this
commitment and will be subject to the following terms of the Policy: Insuring Provisions, Conditions and
Stipulations, and Exclusions.
All notices required to be given the Company and any statement in writing required to be furnished the
Company shall be addressed to it at P.O. Box 2029, Houston, Texas 77252.
STEWART TITLE
GUARANTY COMPANY
stewa.rt®
title guaranty company
Stewart Title Guaranty Company
Form T -7: Commitment for Title Insurance Form Prescribed by Texas Department of Insurance
SCHEDULE A
File No.: 201007634 Effective Date of Commitment: August 2, 2010at 8:00 a.m.
Issued: August 13, 2010 at 8:00 a.m.
1. The policy or policies to be issued are:
a. OWNER'S POLICY OF TITLE INSURANCE (Form T -1 )
(Not applicable for improved one -to -four family residential real estate)
Policy Amount:
PROPOSED INSURED:
b. TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE
-- ONE -TO -FOUR FAMILY RESIDENCES (Form T -1 R)
Policy Amount: $100,000.00
PROPOSED INSURED: City of Huntsville
c. LOAN POLICY OF TITLE INSURANCE (Form T -2)
Policy Amount:
PROPOSED INSURED:
Proposed Borrower: City of Huntsville
d. TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T -2R)
Policy Amount:
PROPOSED INSURED:
Proposed Borrower:
e. LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T -13)
Binder Amount:
PROPOSED INSURED:
Proposed Borrower:
f. OTHER
2. The interest in the land covered by this Commitment is:
Fee Simple
3. Record title to the land on the Effective Date appears to be vested in:
BANCO POPULAR, NORTH AMERICA
(Vesting Deed dated May 18, 2010, recorded in Volume 940, Page 357 of the Official Public Records, Walker
County, Texas)
4. Legal description of land:
LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND ADDITION No. 3, a subdivision within the City of
Huntsville, P. Gray League, A -24, Walker County, Texas according to the map or plat thereof recorded in Volume 1 Page 6 of
the Plat Records, Walker County, Texas.
Schedule A of this Commitment consists of 1 page(s)
99_C_1
stewart®
title guaranty company
Form: Commitment for Title Insurance Form Prescribed by Texas Department of Insurance (Revised 04/01/02)
Attached to and made a part of Stewart Title Guaranty Company Commitment for Title Insurance
GF No. 201007634
SCHEDULE B
EXCEPTIONS FROM COVERAGE
In addition to the Exclusions and Conditions and Stipulations, your policy will not cover loss, costs, attorney's fees and
expenses resulting from:
1. The following restrictive covenants of record itemized below (We must either insert specific recording data or
delete this exception):
Volume 128, Page 166 and Volume 256, Page 220 of the Deed Records, Walker County, Texas.
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any
overlapping of improvements.
3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the
Owner Policy only.)
4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments
or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays,
gulfs, or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or
c. to filled -in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that
area or easement along and across that area.
(Applies to the Owner Policy only.)
5. Standby fees, taxes and assessments by any taxing authority for the year2010 and subsequent years, and
subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or
ownership but not those taxes or assessments for prior years because of an exemption granted to a previous
owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a
previous tax year. (If Texas Short Form Residential Mortgagee Policy of Title Insurance (T -2R) is issued, that
policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of for the year2010
and subsequent years. ")
6. The terms and conditions of the documents creating your interest in the land.
7. Materials furnished or labor performed in connection with planned construction before signing and delivering the
lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the
Mortgagee Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence to us
before a binder is issued.)
8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage.
(Applies to Mortgagee Policy (T -2) only.)
9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential
Mortgagee Policy of Title Insurance (T -2R). (Applies to Texas Short Form Residential Mortgagee Policy of Title
Schedule B of this Commitment consists of 2 page(s)
99_C_1
stewart®
title guaranty company
Form: Commitment for Title Insurance Form Prescribed by Texas Department of Insurance (Revised 04/01/02)
Attached to and made a part of Stewart Title Guaranty Company Commitment for Title Insurance
GF No. 201007634
Insurance (T -2R) only. Separate exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form
Residential Mortgagee Policy of Title Insurance (T -2R).
10. The following matters and all terms of the documents creating or offering evidence of the matters (We must insert
matters or delete this exception.):
a) One - sixteenth (1 /16th) of all oil, gas and other minerals, the royalties, bonuses, rentals and all other rights described
in instrument dated June 30, 1967_ from W. L. Smither, et al to Highland Properties, Inc., recorded in Volume 207,
Page 633 of the Deed Records, Walker County, Texas; reference to which instrument is here made for all purposes,
together with all rights, express or implied in and to the property covered by this Policy arising out of or connected
with said interests and conveyance. Title said interest has not been checked subsequent to date of the aforesaid
instrument.
b) Subject to the restrictive covenants at Volume 126, Page 166 and additional restrictions as set out in instrument
dated December 29, 1972 from Highland Properties, Inc. to Tinsley Enterprises, recorded in Volume 256, Page 220
of the Deed Records, Walker County, Texas.
c) All streets, rights of ways, building lines and utility easements as shown on the subdivision plat recorded in Volume
1, Page 6 of the Plat Records, Walker County, Texas.
d) Any encroachment, encumbrance, violation or adverse circumstance affecting the title that would be disclosed by an
accurate and complete land survey of land.
e) Any easements that may affect the property, such as roadways, sewer, telephone, water and/or electrical lines.
f) Rights of Parties in Possession.
Schedule B of this Commitment consists of 2 page(s)
99_C_1
stewart®
title guaranty company
FORM: Commitment for Title Insurance From Prescribed by Texas Department of Insurance (Revised 4/1/02)
GF No. 201007634
SCHEDULE C
Your Policy will not cover loss, costs, attorneys fees, and expenses resulting from the following requirements that will
appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date
the Policy is issued:
1. Documents creating your title or interest must be approved by us and must be signed, notarized and filed for
record.
2. Satisfactory evidence must be provided that:
• no person occupying the land claims any interest in that land against the persons named in paragraph 3 of
Schedule A,
• all standby fees, taxes, assessments and charges against the property have been paid,
• all improvements or repairs to the property are completed and accepted by the owner, and that all
contractors, sub - contractors, laborers and suppliers have been fully paid, and that no mechanic's,
laborer's or materialman's liens have attached to the property,
• there is legal right of access to and from the land,
• (on a Mortgagee Policy only) restrictions have not been and will not be violated that affect the validity and
priority of the insured mortgage.
3. You must pay the seller or borrower the agreed amount for your property or interest.
4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the
effective date of this Commitment.
5. Note: Procedural Rule P -27 as provided for in Article (9.39 A of the Texas Insurance Code requires that "Good
Funds" be received and deposited before a Title Agent may disburse from its Trust Fund Account.
6. PLEASE NOTICE: IF AN OLD SURVEY IS GOING TO THE BE USED FOR SURVEY DELETION AND /OR
ANY OTHER REASON IN THIS TRANSACTION, WE WILL REQUIRE A SURVEY AFFIDAVIT SIGNED BY
THE SELLER/BORROWER STATING NO CHANGES HAVE BEEN MADE SINCE THE DATE OF THE
SURVEY PLAT.
7. We will require that all STAND -BY FEES, TAXES and ASSESSMENTS by any Taxing Authority be paid up to and
including the year 2009.
8. At closing, Company must be provided with a photo identification of all parties executing documents.
9. "Rights of parties in possession" shown in the Schedule "B" of this Commitment will be deleted from the Owner's
Title Policy ONLY if an inspection is made and paid for which shown no parties in possession other than the
sellers. If such an inspection is not required, the purchaser must sign a Waiver of Inspection and acknowledge
that they understand that the Owners Title Policy will be issued subject to the Rights of Parties in Possession.
10. Item 2 above will be amended to read "Any shortages in area" in the Mortgagee's Title Policy if we are furnished
with a survey prepared by an approved licensed Surveyor who certifies that there are no discrepancies, conflicts in
boundary lines, or any encroachments, or any overlapping of improvements.
11. When amending the "area and boundary" exception in the mortgagee policy, the Company may rely upon a copy
of a prior survey and affidavit by the borrower on residential real property if the borrower executes an acceptable
affidavit. The Company may except to matters shown on the survey or the affidavit.
Schedule C of this Commitment consists of 2 page(s)
99_C_1
-stewart®
title guaranty company
FORM: Commitment for Title Insurance From Prescribed by Texas Department of Insurance (Revised 4/1/02)
GF No. 201007634
12. We will require that this Company be provided with a REQUEST FOR TAXPAYER IDENTIFICATION NUMBER
AND CERTIFICATION (FORM 1099 -S) executed by the Seller(s) on Sales.
13. We will require that this Company be provided with a INDEMNITY AND AFFIDAVIT AS TO DEBTS, LIENS AND
POSSESSION executed by the Seller(s) or Borrower(s).
14. If the record owner is married, we will require the owner's spouse to join in the conveyance if the property is
community property or is or may become the owner's homestead, either residential or business.
15. In the event the herein described is or would be the Proposed Borrower's Homestead, residential or business, then
we require that the lien be properly created for original purchase money and /or construction of improvements and,
if evidenced by existing liens, such liens transferred and assigned to the Proposed insured.
WALKER COUNTY TITLE COMPANY
BY:
99 -C -1
Authoriz
Countersignature
Schedule C of this Commitment consists of 2 page(s)
stewart®
title guaranty company
FORM: Commitment for Title Insurance Form Prescribed by Texas Department of Insurance (04/01/02)
GF Number: 201007634
SCHEDULE D
The information contained in this Schedule (D) does not affect title to or the lien upon the land described in Schedule A hereof, to be
insured in any policy(ies) of title insurance to be issued in accordance with this Commitment.
As to Stewart Title Guaranty Company, the Underwriter herein, the following disclosures are made:
A -1. Shareholders owning, controlling or holding, either personally or beneficially, 10% or more of the shares of Stewart Title Guaranty
Company as of the last day of the year preceding the date hereinabove set forth are as follows:
Stewart Information Services Corporation -100%
A -2. The members of the Board of Directors of Stewart Title Guaranty Company as of the last day of the year preceding the date
hereinabove set forth are as follows: Stewart Morris, Stewart Morris, Jr., Malcolm Morris, Matthew Morris, Max Crisp, Michael B.
Skalka, C.M. Hudspeth, Bruce Belin, Nita Hanks and Charles Howard.
The four designated officers of Stewart Title Guaranty Company as of the last day of the year preceding the date hereinabove set forth
are as follows: President: Michael B. Skalka, Executive Vice President: Glenn H. Clements, Secretary: Sue M. Pizzitola, Treasurer:
Ken Anderson, Jr.
As to WALKER COUNTY TITLE COMPANY (Title Insurance Agent), the following disclosures are made:
B -1. Shareholders, owners, partners or other persons having, owning or controlling 1% or more of Title Insurance Agent are as follows:
Lloyd C. Martin (50 %), Joe B. Henderson, Jr. (25 %) and Hurlene Savage (25 %)
B -2. Shareholders, owners, partners, or other persons having, owning or controlling 10% or more of an entity that has, owns, or
controls 1% or more of Title Insurance Agent are as follows: n/a
B -3. If Title Insurance Agent is a corporation, the following is a list of the members of the Board of Directors: Lloyd C. Martin, Joe B.
Henderson, Jr. and Hurlene Savage
B -4. If Title Insurance Agent is a corporation, the following is a list of its officers:
President: Lloyd C. Martin
Executive Vice President: Joe B. Henderson, Jr.
Vice President: Hurlene Savage
Secretary/Treasurer: Hurlene Savage
C -1. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this
commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or
corporation receiving any sum from the settlement of this transaction will be disclosed on the closing or settlement statement.
You are further advised that the estimated* title premium is:
Owner's Policy
Loan Policy
Endorsement
Charges
Total
$843.00
$843.00
Of this total amount $ or 15 % (complete one only) will be paid to Stewart Title Guaranty Company; $
or 85% (complete one only) will be retained by Title Insurance Agent; and any remainder of the estimated premium will be paid to
other parties as follows:
Amount Paid to Services
$ or % (complete only one)
$ or % (complete only one)
$ or % (complete only one)
*The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the
amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance.
99_C_1
stewart®
-title guaranty company
FT (6/2001)
Stewart Title Guaranty Company
PRIVACY POLICY NOTICE
PURPOSE OF THIS NOTICE
File No. 201007634
Title V of the Gramm - Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its
affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the
institution provides you with a notice of its privacy policies and practices, such as the type of information that it
collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the
GLBA, we are providing you with this document, which notifies you of the privacy policies and practices ofStewart
Title Guaranty Company
We may collect nonpublic personal information about you from the following sources:
• Information we receive from you, such as on applications or other forms.
• Information about your transactions we secure from our files, or from our affiliates orothers.
• Information we receive from a consumer reporting agency.
• Information that we receive from others involved in your transaction, such as the real estate agent or lender.
Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal
information will be collected about you.
We may disclose any of the above information that we collect about our customers or former customers to our
affiliates or to nonaffiliated third parties as permitted by law.
We also may disclose this information about our customers or former customers to the following types of
nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing
agreements:
• Financial service providers such as companies engaged in banking, consumer finance, securities and insurance.
• Non - financial companies such as envelope stuffers and other fulfillment service providers.
WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE
FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW.
We restrict access to nonpublic personal information about you to those employees who need to know that
information in order to provide products or services to you. We maintain physical, electronic, and procedural
safeguards that comply with federal regulations to guard your nonpublic personal information.
Stewart®
title guaranty company
GF No. 201007634
DELETION OF ARBITRATION PROVISION
(Not applicable to the Texas Residential Owner Policy)
ARBITRATION is a common form of alternative dispute resolution. It can be a quicker and cheaper
means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you
give up your right to take the Title Company to court and your rights to discovery of evidence may be
limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award.
Your policy contains an arbitration provision (shown below). It allows you or the Company to require
arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the
Company in case of a dispute over a claim, you must request deletion of the arbitration provision before
the policy is issued. You can do this by signing this form and returning it to the Company at or before
the closing of your real estate transaction or by writing to the Company.
The Arbitration provision in the Policy is as follows:
"Either the Company or the Insured may demand that the claim or controversy
shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of
the American Land Title Association ( "Rules "). Except as provided in the Rules,
there shall be no joinder or consolidation with claims or controversies of other
persons. Arbitrable matters may include, but are not limited to, any controversy or
claim between the Company and the Insured arising out of or relating to this policy,
any service in connection with its issuance or the breach of a policy provision, or to
any other controversy or claim arising out of the transaction giving rise to this
policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less
shall be arbitrated at the option of either the Company or the Insured, unless the
Insured is an individual person (as distinguished from an Entity). All arbitrable
matters when the Amount of Insurance is in excess of $2,000,000 shall be
arbitrated only when agreed to by both the Company and the Insured. Arbitration
pursuant to this policy and under the Rules shall be binding upon the parties.
Judgment upon the award rendered by the Arbitrator(s) may be entered in any
court of competent jurisdiction."
I request deletion of the Arbitration provision.
SIGNATURE: DATE:
99-C-1
Stewart Title G
title guaranty company
IMPORTANT INFORMATION
FOR INFORMATION, OR
TO MAKE A COMPLAINT
CALL OUR TOLL -FREE TELE-
PHONE NUMBER
1- 800 - 729 -1902
ALSO
YOU MAY CONTACT
THE TEXAS DEPARTMENT
OF INSURANCE AT
1- 800 - 252 -3439
to obtain information on:
1. filing a complaint against an insurance
company or agent,
2. whether an insurance company or agent
is licensed,
3. complaints received against an insurance
company or agent,
4. policyholder rights, and
5. a list of consumer publications and
services available through the
Department.
YOU MAY ALSO WRITE TO
THE TEXAS DEPARTMENT OF
INSURANCE
P.O. BOX 149104
AUSTIN, TEXAS 78714 -9104
FAX NO. (512) 475 -1771
AVISO IMPORTANTE
PARA INFORMACION, 0
PARA SOMETER UNA QUEJA
LLAME AL NUMERO GRATIS
1- 800 - 429 -1902
TAMBIEN
PUEDE COMUNICARSE CON
EL DEPARTAMENTO DE SEGUROS
DE TEXAS AL
1- 800 - 252 -3439
para obtener informacion sobre:
1 como someter una queja en contra de una
compania de seguros o agente de seguros,
2. si una compania de seguros o agente de
seguros tiene licencia,
3. quejas recibidas en contra de una compania
de seguros o agente de seguros,
4. los derechos del asegurado, y
5. una lista de publicaciones y servicios para
consumidores disponibles a traves del
Departmento.
TAMBIEN PUEDE ESCRIBIR AL
DEPARTMENTO DE SEGUROS DE
TEXAS
P.O. BOX 149104
AUSTIN, TEXAS 78714 -9104
FAX NO. (512) 475 -1771
Stewart
title guaranty company
STEWART TITLE
GUARANTY COMPANY
TEXAS TITLE INSURANCE INFORMATION
Title insurance insures you against loss resulting from certain
risks to your title.
The commitment for Title Insurance is the title insurance
company's promise to issue the title insurance policy. The
commitment is a legal document. You should review it
carefully to completely understand it before your closing date.
El seguro de titulo le asegura en relacion a perdidas resultantes de
ciertos riesgos que pueden afectar el titulo de su propiedad.
El Compromiso para Seguro de Titulo es la promesa de la
compania aseguradora de titulos de emitir la poliza de seguro de
titulo. El Compromiso es un documento legal. Usted debe leerlo
cuidadosamente y entenderlo completamente antes de la fecha
para finalizar su transaccion.
Your commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your
title. It is a contract to issue you a policy subject to the Commitment's terms and requirements.
Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the title insurance
Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that
determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some
of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions.
These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to
determine the ownership of any mineral interest.
MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless
there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks
involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available
for purchase. If the title insurer issues the title policy with an exclusion or exception to the minerals and mineral rights, neither this
Policy, nor the optional endorsements, ensure that the purchaser has title to the mineral rights related to the surface estate.
Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met.
Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may
want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and
your use of the land.
When your Policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below.
- EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown
on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the
Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy.
- EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or
discussed in the Commitment.
- CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those
of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are
not the same as the Commitment Conditions.
You can get a copy of the policy form approved by the Texas Department of Insurance by calling the Title Insurance Company at 1 -800-
729 -1902 or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy
form from time to time.
You can also get a brochure that explains the policy from the Texas Department of Insurance by calling 1- 800 - 252 -3439.
Before the Policy is issued, you may request changes in the Policy. Some of the changes to consider are:
- Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must
furnish a survey. On the Owner Policy, you must pay an additional premium for the amendment. If the survey is acceptable to
the Company, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments
or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or
survey problems by making special exceptions in the Policy.
-Allow the Company to add an exception to "rights of parties in possession ". If you refuse this exception, the Company or the
title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific
persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the
inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and alow the Company to add
this exception to your Policy.
The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want
to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement.
FORM: Commitment for Title Insurance (Rev. 11/1/09)
StQww rt®
title guaranty company
Rmtim
d'AI.Kril COUNTY YI T, i LE COMPANY
.11K UNIVERSITY AVENUE
u11'`r svILLE, TEXAS 7734
GE# at /v 3/
SPECIAL WARRANTY DEED
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATUR AL PERSON,
YUU IcL:,i:iVE OR STRIKE ANY OR to L, vF THE FOLLOWING
INFORMATION FROM ANY 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.
THE STATE. OF TEXAS §
§
COUNTY OF WALKER §
KNOW ALL MEN BY THESE PRESENTS:
That. HANCO POPULAR, NORTH AMERICA, whose mailing address is c/o Stewart
Asset Recovery. Carmen Delgado, 290 Main Street. Suite 260, Irvine, Orange County, California
92614 (hereinafter called "Grantor "), and other good and valuable consideration in hand paid by
CITY OF HUNTSVILLE, A Texas Home -Rule Municipal Corporation, whose mailing
address is 1212 Avenue M, Huntsville, Walker County, Texas 77340 (hereinafter called
"Grantee "), the receipt of which is hereby acknowledged, and for which no lien, express or
implied, is retained or shall exist, has GRANTED, SOLD and CONVEYED, and by these
presents does GRANT, SELL and CONVEY unto the Grantee, all that certain property situated
in Walker County, Texas, and described as follows:
LOT NINE (9), BLOCK TWENTY -FOUR (24) of HIGHLAND ADDITION, NO.
3, a subdivision within the City of Huntsville, P. Gray League, A -24, Walker
County, Texas according to the map or plat thereof recorded in Volume 1, Page 6
of the Plat Records, Walker County, Texas..
together with all buildings, structures or other improvements located thereon or affixed thereto
(the "Improvements "), and all of Grantor's right, title and interest in and to all casements,
tenements, hereditaments, privileges and appurtenances in any way belonging to the land above
described (the "Land") or Improvements, including, without limitation, (i) any land to the
midpoint of the bed of any highway, street, road or avenue, open or proposed. in front of.
abutting or adjoining the Land, (ii) any land lying in or under the bed of any creek, stream, bayou
or river running through, abutting or adjacent to the Land, (iii) any riparian, appropriative, or
other rights of Grantor appurtenant to the Land and relating to surface or subsurface waters, (iv)
any strips, gores or pieces of property abutting, bounding or which are adjacent or contiguous to
the Land, and (v) all easements, rights -of -way, rights of ingress or egress and reversionary
interests benefiting the Land.
This conveyance is made and accepted subject to (i) any and all restrictions, reservations,
covenants, conditions, ordinances, easements, maintenance charges and the liens securing said
charges, all mineral leases and outstanding mineral and royalty interests and all other matters, if
any, affecting the property, premises or improvements conveyed herein and now of record in the
Office of the County Clerk of said County, to the extent, but only to the extent, the same are now
in force and effect and relate to said property, premises or improvements, (ii) all taxes,
assessments for the year 2010 and all subsequent years and subsequent assessments for prior
years due to change in land usage or ownership, which Grantee hereby assumes and agrees to
pay, (iii) any and all laws, ordinances and governmental regulations now applicable to and
enforceable against said property, premises or improvements, and (iv) all visible or apparent
easements, encroachments and overlapping of improvements, if any.
GRANTOR AND GRANTEE ACKNOWLEDGE AND AGREE THAT GRANTOR
ACQUIRED THE PROPERTY THROUGH FORECLOSURE AND CONSEQUENTLY,
GRANTOR HAS LITTLE, IF ANY, KNOWLEDGE OF THE PHYSICAL OR
ECONOMIC CHARACTERISTICS OF THE PROPERTY. ACCORDINGLY,
GRANTOR HEREBY SPECIFICALLY DISCLAIMS ANY REPRESENTATION, ORAL
OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, OR CONCERNING (I)
THE NATURE AND CONDITION OF THE PROPERTY, INCLUDING, WITHOUT
4,)
LIMITATION, ANY AND ALL IMPROVEMENTS S1TUAI ED THEREON, ANY AND
ALL PERSONAL PROPERTY SITUATED UPON Ok AFFIXED TO THE PROPERTY
AND INCLUDED IN THIS SALE, THE WATER, SOIL AND GEOLOGY AND THE:
SUITABILITY THEREOF, AND OF THE PROPERTY FOR ANY AND ALL
ACTIVITIES AND USES WHICH GRANTEE MAY ELECT TO CONDUCT THEREON,
THE EXISI NCE Ok AIN I .G.1',11.: ;<'-;LN-fAL HAZARDS Ok h .
THEREON OR COMPLIANCE WITH ALL APPLICABLE LAWS, RULES OR
REGULATIONS; (11) THE NATURE AND EXTENT OF ANY RIGHT-OF-WAY,
LEASE, POSSESSION, LIEN, ENCUMBRANCE, LICENSE, RESERVATION,
CONDITION OR OTHERWISE; AND (I1I) THE COMPLIANCE OF THE PROPERTY
OR ITS OPF,PATION WITH ANY LAWS, ORDINA7‘7CF4 OR RF.CUI,ATION.` (tF
ANY GOVERNMENT OR OTHER BODY. THE CONVEYANCE OF THE PROPERTY
IS MADE ON AN "AS IS" BASIS, AND GRANTEE EXPRESSLY ACKNOWLEDGES
THAT, GRANTOR MAKES NO WARRANTY OR REPRESENTATION, EXI'RF.CS OR
IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING, BUT NOT
LIMITED TO, ANY WARRANTY OF CONDITION, HABITABILITY,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, IN RESPECT
TO THE PROPERTY
TO HAVE AND TO HOLD the said premises, together with all and singular the rights,
hereditaments and appurtenances there unto belonging unto the Grantee, its successors and
assigns, forever; and, Grantor does hereby bind itself, its successors, executors and
administrators to Warrant and Forever Defend all and singular the said premises unto the
Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to
claim the saute or any part thereof, when the claim is by, through or under Grantor but not
otherwise.
EXECUTED this
day of August, 2010.
BANCO POPULAR, NORTH AMERICA
By
Name
Title
THE STATE OF CALIFORNIA
COUNTY OF ORANGE
On this . rday of Aug t 2010 b for me, \� Ill (0 0 Notary
Public, personally appeared 0`0 r
`pG�1J�� , personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is /are subscribed to the within instrument and acknowledged to me that he /she executed the same
in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS MY HAND AND OFFICIAL S
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WALKER COUNTY TITLE COMPANY
Established 1898
1109 UNIVERSITY AVENUE
HUNTSVILLE, TEXAS 77340
April 26, 2013
LLOYD C. MARTIN
PRESIDENT
JOE B. HENDERSON, JR.
EXECUTIVE VICE PRESIDENT
City of Huntsville
1212 Avenue M
Huntsville. Texas 77340
RE: GF No.: 2012111253
Sale to: Candelario Rivas
Property: 2001 Normal Park, Lot 9, Block 24, Highland, Section 3
HURLENE SAVAGE
VICE PRESIDENT
GENERAL MANAGER
TELEPHONE 936/295 -8173
FAX 936/295 -0371
Gentlemen:
In connection with the above transaction, we enclose your original recorded Release of Lien.
It is a pleasure to be of service to you.
Cordially,
WALKER COUNTY TITLE COMPANY
A,9444-6-K,
Judy T ornton
Escrow Officer t
Enc.
Serving San Jacinto County Since 1972
WALKER COUNTY TITLE GUMr�NT
1109 UNIVERSITY AVENUE
HUNTSVILLE, TEXAS 77340
Bk V ira 3
00002675 OR 1 068 1 59
Release of Lien
Date: April 5, 2013
Holder of Note and Lien: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
Holder's Mailing Address: P.O. BOX 13941, AUSTIN, TRAVIS COUNTY, TEXAS 78711 -3941
Note
Date: April 11, 2012
Original principal amount: $110,188.25
Borrower: CITY OF HUNTSVILLE
Lender: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
Maturity date: AUGUST 31, 2012
Note and Lien Are Described in the Following Documents: Deed of Trust dated June 6, 2011,
filed for record under Document No. 00003718, Official County Records of
Walker County, Texas, and Modification dated April 11, 2012 and file for record
under Document No. 00002772 executed by CITY OF HUNTSVILLE, to
Timothy K. Irvine, Trustee, and all terms, conditions and stipulations contained
therein, including any additional indebtedness secured thereby, securing Note.
Property (including any improvements):
LOT NINE (9), BLOCK TWENTY -FOUR (24) OF HIGHLAND ADDITION NO. 3, A SUBDIVISION
WITHIN THE CITY OF HUNTSVILLE, P. GRAY LEAGUE, A -24, WALKER COUNTY, TEXAS
ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLUME 1 PAGE 6 OF THE PLAT
RECORDS, WALKER COUNTY, TEXAS.
Holder of Note and Lien is the owner and holder of the Note and Lien described above.
For value received, Holder of Note and Lien releases the Property from the Lien.
Holder of Note and Lien expressly waives and releases all present and future rights to establish or enforce
the Lien as security for payment of any future or other indebtedness.
When the context requires, singular nouns and pronouns include the plural.
Executed this D day of April 5, 2013, N3 in -r-Ravi, County, Texas.
TEXAS DE ' ' T EN
BY:
Name:
Its: Duly Authorized Representative
OF HOUSING AND COMMUNITY AFFAIRS
THE STATE OF TEXAS
OF TRAVIS
his in trumipt w�
acknowledged before me on the
day of APRIL, 2013, by
duly authorized representative of the TEXAS
S, a public and official agency of the State of
D PARTMENT OF HOUSING AND COMMUNITY AFF
Texa
(Seal
MARTKA J. SUDDERTH
fe; Notary Public, State of Texas
*. ' ''* Notary Without Bond
�E�y *0,: My Commission Expires
MAY 1, 2013
1,I11'1Ak A
otary '' ublic, State a Z '
AFTER RECORDING RETURN TO:
CITY OF HUNTSVILLE
1212 AVENUE M
HUNTSVILLE, TX 77340
B k 1 P
000026 75 OR 1Y i6v 161 i
Filed for Record in:
Walker County
On: Apr O ,2Oi3 at O3:32P
As a
Record1055
Document Number: 000 02675
Amount 20.00
Receipt Number - 71191
$y►
Rachel Yarabeck
STATE OF TEXAS COUNTY OF WALKER
I hereby certify that this instrument was
filed on the date and time stamped hereon bs me
and was duly recorded in the volume and page
of the named records of:
Walker County
as stamped hereon bs me.
Apr 08,2013
lari A. French, Walker County Clerk
Walker County