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image19737State of TEXAS, County of WALKER Date: 05/24/2013 Note: Return to: WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS 77340 PARTIAL RELEASE OF LIEN rF# poi 3-03 1 Date: June 19, 2012 Original Principal Amount: $594,033.20 'e. Maker /Borrower: City of Huntsville Payee /Lender: Texas Department of Housing and Community Affairs, a public and official agency of the State of Texas Holder of Note and Lien: Texas Department of Housing and Community Affairs, a public and official agency of the State of Texas Holder's Mailing Address (including county): PO Box 13941 Austin, Travis County, Texas 78711 -3941 Note and Lien are described in the Following Documents: Deed of Trust dated June 19, 2012, filed for record under Volume 1029, Page 142, Official County Records of Walker County, Texas, executed by City of Huntsville, to Thomas K. Irvine, Trustee, and all terms, conditions and stipulations contained therein, including any additional indebtedness secured thereby, securing Note. Modification, Renewal and Extension Agreement dated December 13, 2012, filed for record under Volume 1052, Page 872, of the Official Public Records, Walker County, Texas, executed by City of Huntsville, and all terms, conditions and stipulations, contained therein, including any additional indebtedness secured thereby, securing Note. Property (including any improvements) To Be Released from Lien ( "Property "): SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. Property Address: 115 AVENUE D HUNTSVILLE, TX 77320 TXPARTIALRELOFLIENI Page I oft For value received, Holder of the Note and Lien hereby RELEASES on the Property from the Lien and from all other liens (including without limitation any vendor's lien) held by Holder of Note and Lien. When the context requires, singular nouns and pronouns include the plural. Executed this / day of VIA I( yO S 3 in (2 ra V' S County, Texas. Texas Department of Housing and Community Affairs, a public and official agency of the State of Texas BY: Name: 1/1V-\ Its: Duly Authorized Representative THE STATE OF Texas COUNTY OF Travis (Corporate or Other Entity Acknowledgement) This instrument was acknowledged before me o the c`f' ' day of to 1 L -j� , by fl /1 v�j4 .r.(1- �. f j// T1 -Jtt.4 , Duly Authorized Representative For the Texas Department df Housing and Community-Atfairs, a public and official agency of the State of Texas, on behalf of said Agency. "" - CONNIE NUNLEY 2 •' Notary Public, State of Texas 1 * '. *= Notary Without Bond V;;;;,. . , My Commission Expires �4 „11'"s AUGUST 12, 2014 - /2- 2°/y My Commission Expires: Notary Public, State of 11-eCh ri / 5 U / Notary's Name (printed) /-& AFTER RECORDING RETURN TO: City of Huntsville 1212 Avenue M Huntsville, Texas 77340 TXPARTIALRELOPLIEN 1 Page 2 of 2 METES AND BOUNDS DESCRIPTION of Lot 6 of Vann - Johnson Subdivision, Huntsville, Texas Being a 0.164 of an acre (7,126 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of Lot 6 of the Vann-Johnson Subdivision, as recorded in Volume 5, Page 81 of the Plat Records of Walker County, Texas (P.R.W.C.T.) same being a portion of that certain called 1.17 acre tract of land conveyed to the City of Huntsville by deed and recorded in Volume 955, Page 720 of Official Public Records of Walker County, Texas (O.P.R.W.C.T.); said 0.164 of an acre of land being more particularly described by metes and bounds as follows: BEGINNING at a found 5/8 -inch iron rod with cap in the westerly line of that certain called 50' Road as recorded in Volume 85, Page 161 of the Deed Records of Walker County, Texas (D.R.W.C.), being the northeasterly corner of Lot 5 of said Vann - Johnson Subdivision, same being the southeasterly corner of said Lot 6, and being in the easterly line of said 1.17 acre tract; THENCE, South 87 °24'13" West, a distance of 150.16 feet, along the northerly line of said Lot 5, being the southerly line of said Lot 6 to a found 5/8 -inch iron rod with cap in the easterly line of that certain called 0.62 acre tract of land conveyed to Abe Johnson by deed and recorded in Volume 96, Page 192 of said Deed Records, being the northwesterly corner of said Lot 5, same being the southwesterly corner of said Lot 6, and being in the westerly line of said 1.17 acre tract; THENCE, North 02 °35'47" West, a distance of 33.10 feet, along the easterly line of said 0.62 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found S/8 -inch iron rod with cap at the southwesterly corner of that certain called 0.032 acre tract of land conveyed to Cal Johnson by deed and recorded in Volume 977, Page 120 of said Official Public Records, being the northwesterly comer of said Lot 6, same being an interior corner in the westerly line of said 1.17 acre tract; THENCE, North 87 °24'13" East, a distance of 60.92 feet, along the southerly line of said 0.032 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the southeasterly corner of said 0.032 acre tract, being an interior corner in the westerly line of said Lot 6 and said 1.17 acre tract; THENCE, North 04 °14'21" West, a distance of 23.65 feet, along the easterly line of said 0.032 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northeasterly corner of said 0.032 acre tract, being the southeasterly corner of that certain called 3,000 sq. ft. tract of land conveyed to Cal Johnson by deed and recorded in Volume 215, Page 412 of said Deed Records, same being the southwesterly corner of that certain called 0.756 acre tract of land conveyed to the City of Huntsville by deeds and recorded in Volume 584, Page 299 and Volume 584, Page 305 of said Official Public Records, also being at northwesterly corner of said Lot 6 and said 1.17 acre tract; THENCE, North 86 °51'49" East, a distance of 89.93 feet, along the southerly line of said 0.756 acre tract, being the northerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northwesterly corner of said 50' Road, being the northeasterly corner of said Lot 6 and said 1.17 acre tract; 1'HENCE, South 02 °35'47" East, a distance of 57.59 feet, along the westerly line of said 50' Road, being the easterly line of said Lot 6 and said 1.17 acre tract to the Point of Beginning and containing 0.164 of an acre of land. EXHIBIT "A" PAGE _1_OF Horizontal Control is based on holding City of Huntsville Monuments No. 7574 (grid coordinate of North = 10,262,485.31 & East= 3,802,009.473) and 7575 (grid coordinate of North 10,262,526.24 & East= 3,801,780.255). Bearings described are related to the Texas Coordinate System of 1983, Central Zone. Distances shown are US Survey Feet in "Field Horizontal ". units and may converted to "GRID" units by multiplying by a combined scale factor of 0.99988. Plat of evert date accompanies this description. Prepared by: GeoSolutionst LLC 25814 Budde Road Spring, Texas Tel. 281- 681 -9766 Job No. 11 -249 -027 EXHIBIT "A' tom• r+T. A1,011 1 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. FOR Walker County properties properties Contact: Walker County Appraisal District P. O. Box 1798 Huntsville, Texas 77342 -179 ne: 936- ' -1402 uyer Date FOR an Jaci Contact: San Jaci e County Appraisal District Coun P.O.B.x l 0 Cold' Bring, Te as 77331 Phone: 936 -653 1450 6ZZ/ „)-1,2ct/5 Date File No.: 201303671 RECEIPT OF COPIES The undersigned parties acknowledge that they have received copies of all the documents signed at the closing. Due to space restrictions and the cost of storage, Walker County Title Company will not retain copies of all the documents the undersigned is receiving today. It is the sole responsibility of the undersigned and is not the responsibility of Walker County Title Company to maintain the records delivered today. In the event the undersigned needs copies of the documents in the future, they must be obtained from third parties, such as a lender or other provider involved in this transaction. SELLER SELLER BUYER BUYER ATTENTION LENDERS Walker County Title Company does not retain copies of lender documents. UCC FINANCING STATEMENT AMENDMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME 8 PHONE OF CONTACT AT FILER [optional] B. SEND ACKNOWLEDGMENT TO: (Name and Address) WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TX 77340 ATTN: JUDY THORNTON [5#201303671 WALKER COUNTY to: TY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS 77340 THE ABOVE SPA S Ppf,t F FIIING'Vrflakl.ISE ONLY la. INITIAL FINANCING STATEMENT FILE # Th EINAp1CIN6 STA1 E 4 NT AMENDMENT is RECORDED 07 -10 -12 DOC. NO 12- 0022037663 OFFICE OF SOS to N�,frled pin:toaFd4 (or reeorded) in the 1ZEAL;ESTA' RF.,(ORDS%) 2. TERMINATION: Effectiveness of the Financing Statement identified above is terminated with respect to security interest(s) of the Secure &Matti Ethodzind th.$ T,grn * on Statement 3. CONTINUATION: Effectiveness of the Financing Statement Identified above with respect to security interest(s) of the Secured Party at kprizing this tl ntintfetign Statement Is continued for the additional period provided by applicable law. ;. •" 4. .11 ASSIGNMENT (full or partial): Give name of assignee in item 7a or 7b and address of assignee in item 7c; and also give name of assignor in 10p 9. 5. AMENDMENT (PARTY INFORMATION): This Amendment affects 0 Debtor of ❑ Secured Party of record. Check only one of these two boxes. Also check one of the following three boxes agd provide appropriate information in items 6 and /or 7. CHANGE name and /or address: Please refertothe detailed instructions DELETE name: Give record name inre. ardstochan •in.thename /addressofa. ally . , to be deleted in item 6a or 6b. 6. CURRENT RECORD INFORMATION: OR 1 ADD name: Complete item 7a or7b, and also item 7c; alsocom.leteitems7e -7 licable 6a. ORGANIZATION'S NAME CITY OF HUNTSVILLE 6b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7. CHANGED (NEW) OR ADDED INFORMATION: OR 7a. ORGANIZATION'S NAME 7b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY 7d SEEINSTRUCTIONS ADD'L INFO RE 17e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR .I 7f. JURISDICTION OF ORGANIZATION 7g. ORGANIZATIONAL ID #, if any II NONE 8. AMENDMENT (COLLATERAL CHANGE): check only one box. — Describe collateral deleted or Ei added, or give entire Elrestated collateral description, or describe collateral El assigned. SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. 9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT (name of assignor, if this is an Assignment). If this is an Amendment authorized by a Debtor which adds collateral or adds the authorizing Debtor, or If this is a Termination authorized by a Debtor, check here n and enter name of DEBTOR authorizing this Amendment 9a. ORGANIZATION'S NAME I I TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS OR 9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX FILING OFFICE COPY — UCC FINANCING STATEMENT AMENDMENT (FORM UCC3) (REV. 10.OPTIONAL FILER REFERENCE DATA NSP LN #770999991266 CITY OF HUNTSVILLE International Association of Commercial Administrators (IACA) METES AND BOUNDS DESCRIPTION of Lot 6 of Vaun- Johnson Subdivision, Huntsville, Texas Being a 0.164 of an acre (7,126 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of Lot 6 of the Vann- Johnson Subdivision, as recorded in Volume 5, Page 81 of the Plat Records of Walker County, Texas (P.R.W.C.T.) same being a portion of that certain called 1.17 acre tract of land conveyed to the City of Huntsville by deed and recorded in Volume 955, Page 720 of Official Public Records of Walker County, Texas (O.P.R. W.C.T.); said 0.164 of an acre of land being more particularly described by metes and bounds es follows: BEGINNING at a found 5/8 -inch iron rod with cap in the westerly line of that certain called 50' Road as recorded in Volume 85, Page 161 of the Deed Records of Walker County, Texas (D.R.W.C.), being the northeasterly corner of Lot 5 of said Vann - Johnson Subdivision, same being the southeasterly corner of said Lot 6, and being in the easterly line of said 1.17 acre tract; THENCE, South 87 °24'13" West, a distance of 150.16 feet, along the northerly line of said Lot 5, being the southerly line of said Lot 6 to a found 5/8 -inch iron rod with cap in the easterly line of that certain called 0.62 acre tract of land conveyed to Abe Johnson by deed and recorded in Volmne'96, Page 192 of said Deed Records, being the nortlnvesterly corner of said Lot 5, same being the southwesterly comer of said Lot 6, and being in the westerly line of said 1.17 acre tract; THENCE, North 02 °35'47" West, a distance of 33.10 feet, along the easterly line of said 0.62 acre tract being the westerly line of said Lot 6 and said 1.17 acre tract to a found S/8 -inch iron rod with cap at the southwesterly comer of that certain called 0.032 acre tract of land conveyed to Cal Johnson by deed and recorded in Volume 977, Page 120 of said Official Public Records, being the northwesterly corner of said Lot 6, same being an interior corner in the westerly line of said 1.17 acre tract; THENCE, North 87 °24'13" East, a distance of 60.92 feet, along the southerly line of said 0.032 acre tract, being the westerly Line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the southeasterly corner of said 0.032 acre tract, being an interior corner in the westerly line of said Lot 6 and said 1.17 acre tract; THENCE, North 04 °14'21" West, a distance of 23.65 feet, along the easterly line of said 0.032 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northeasterly comer of said 0.032 acre tract, being the southeasterly comer of that certain called 3,000 sq. ft, tract of land conveyed to Cal Johnson by deed and recorded in Volume 215, Page 412 of said Deed Records, same being the southwesterly corner of that certain called 0.756 acre tract of land conveyed to the City of Huntsville by deeds and recorded in Volume 584, Page 299 and Volume 584, Page 305 of said Official Public Records, also being at northwesterly corner of said Lot 6 and said 1.17 acre tract; THENCE, North 86 °51'49" East, a distance of 89.93 feet, along the southerly line of said 0.756 acre tract, being the northerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northwesterly corner of said 50' Road, being the northeasterly corner of said Lot 6 and said 1.17 acre tract; THENCE, South 02 °35'47" East, a distance of 57.59 feet, along the westerly line of said 50' Road, being the easterly line of said Lot 6 and said 1.17 acre tract to the Point of Beginning and containing 0.164 of an acre of land. EXHIBIT "A" DAc.P.. 1 (V Horizontal Control is based on holding City of Huntsville Monuments No. 7574 (grid coordinate of Notch = 10,262485.31 & East= 3,802009.473) and 7575 (grid coordinate of North = 10,262526.24 & East= 3,801,780.255). Bearipgs described are related to the Texas Coordinate System of 1983, Central Zone. Distances shown are US Survey .Feet in "Field Horizontal" units and may be converted to "GRID" units by multiplying by a combined scale factor of 0.99988. Plat of even date accompanies this description. Prepared by: GeoSohitionst LLC 25814 Buckle Road Spring, Texas Tel. 281- 681 -9766 Job No. 11 -249 -027 STEPHEN M. CHAUSZCZAK 5 EXHIBIT "A" 1 UCC FINANCING STATEMENT AMENDMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT AT FILER [optional] B. SEND ACKNOWLEDGMENT TO: (Name and Address) WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TX 77340 ATTN: JUDY THORTON I GF #201303671 T THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY la. INITIAL FINANCING STATEMENT FILE # 1 b. This FINANCING STATEMENT AMENDMENT is RECORDED 06 -27 -12 VOL 1029 PG 193 OPR WALKER COUNTY 1 A to be filed [for record] (or recorded) in the W I REAL ESTATE RECORDS. 2. TERMINATION: Effectiveness of the Financing Statement identified above is terminated with respect to security interest(s) of the Secured Party authorizing this Termination Statement 3. CONTINUATION: Effectiveness of the Financing Statement identified above with respect to security interest(s) of the Secured Party authorizing this Continuation Statement is — continued for the additional period provided by applicable law. 4. U ASSIGNMENT (full or partial): Give name of assignee in item 7a or 7b and address of assignee in item 7c; and also give name of assignor in item 9. 5. AMENDMENT (PARTY INFORMATION): This Amendment affects ❑ Debtor 1 ❑ Secured Party of record. Check only me of these two boxes. Also check dug of the following three boxes and provide appropriate information in items 6 and /or 7. LI CHANGE name and/oraddress: Please refer to the detailed instructions r7 DELETE Give record name ❑ ADD name: Complete item 7aor7b , and also item7c; in regards to changing thename/addressofaparty. to be deleted in item 6a or 6b. also complete items 7e- 7g (ifapplicable). 6. CURRENT RECORD INFORMATION: 6a. ORGANIZATIONS NAME CITY OF HUNTSVILLE OR 6b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7. CHANGED (NEW) OR ADDED INFORMATION: OR 7a. ORGANIZATION'S NAME 7b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY 7d SEE INSTRUCTIONS ADD'L INFO RE I7e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR 7f. JURISDICTION OF ORGANIZATION 7g. ORGANIZATIONAL ID #, if any 8. AMENDMENT (COLLATERAL CHANGE): check only one box. — Describe collateral ® deleted or ❑ added, or give entire ❑restated collateral description, or describe collateral assigned. SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. 11 NONE 9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT (name of assignor, if this is an Assignment). If this is an Amendment authorized by a Debtor which adds collateral or adds the authorizing Debtor, or If this Is a Termination authorized by a Debtor, check here I I and enter name of DEBTOR authorizing this Amendment 9a. ORGANIZATIONS NAME OR TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS 9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 10.OPTIONAL FILER REFERENCE DATA NSP LN#770999991266 CITY OF HUNTSVILLE International Association of Commercial Administrators (IACA) FILING OFFICE COPY — UCC FINANCING STATEMENT AMENDMENT (FORM UCC3) (REV. 05/22/02) METES AND BOUNDS DESCRIPTION of Lot 6 of Vann- Johnson Subdivision, Huntsville, Texas Being a 0.164 of an acre (7,126 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of Lot 6 of the Vann- Johnson Subdivision, as recorded in Volume 5, Page 81 of the Plat Records of Walker County, Texas (P.R.W.C.T.) same being a portion of that certain called 1.17 acre tract of land conveyed to the City of Huntsville by deed and recorded in Volume 955, Page 720 of Official Public Records of Walker County, Texas (O.P.R.W.C.T.); said 0.164 of an acre of land being more particularly described by metes and bounds as follows: BEGINNING at a found 518 -inch iron rod with cap in the westerly line of that certain called 50' Road as recorded in Volume 85, Page 161 of the Deed Records of Walker County, Texas (D.R.W.C.), being the northeasterly corner of Lot 5 of said Vann- Johnson Subdivision, same being the southeasterly comer of said Lot 6, and being in the easterly line of said 1.17 acre tract; THENCE, Sottth 87 °24'13" West, a distance of 150.16 feet, along the northerly line of said Lot 5, being the southerly line of said Lot 6 to a found 5/8 -inch iron rod with cap in the easterly line of that certain called 0.62 acre tract of land conveyed to Abe Johnson by deed and recorded in Volume 96, Page 192 of said Deed Records, being the northwesterly corner of said Lot 5, same being the southwesterly corner of said Lot 6, and being in the westerly line of said 1.17 acre tract; THENCE, North 02 °35'47" West, a distance of 33.10 feet, along the easterly line of said 0.62 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the southwesterly comer of that certain called 0.032 acre tract of land conveyed to Cal Johnson by deed and recorded in Volutne 977, Page 120 of said Official Publio Records, being the northwesterly corner of said Lot 6, same being an interior corner in the westerly line of said 1.17 acre tract; THENCE, North 87 °24'13" East, a distance of 60.92 feet, along the southerly line of said 0.032 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the southeasterly corner of said 0.032 acre tract, being an interior corner in the westerly line of said Lot 6 and said 1.17 acre tract; THENCE, North 04 °14'21" West, a distance of 23.65 feet, along the easterly line of said 0.032 acre tract; being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northeasterly corner of said 0.032 acre tract, being the southeasterly comer of that certain called 3,000 sq. ft. tract of land conveyed to Cal Johnson by deed and recorded in Volume 215, Page 412 of said Deed Records, same being the southwesterly corner of that certain called 0.756 acre tract of land conveyed to the City of Huntsville by deeds and recorded in Volume 584, Page 299 and Volume 584, Page 305 of said Official Public Records, also being at northwesterly corner of said Lot 6 and said 1.17 acre tract; THENCE, North 86 °51'49" East, a distance of 89.93 feet, along the southerly line of said 0.756 acre tract, being the northerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northwesterly corner of said 50' Road, being the northeasterly corner of said Lot 6 and said 1.17 acre tract; THENCE, South 02 °35'47" East, a distance of 57.59 feet, along the westerly line of said 50' Road, being the easterly line of said Lot 6 and said 1.17 acre tract to the Point of Beginning and containing 0.164 of an acre of land. r EXHIBIT "A" maw nv Horizontal Control is based on holding City of Huntsville Monuments No. 7574 (grid coordinate of North = 10,262,485.31 & East= 3,802,009.473) and 7575 (grid coordinate of North = 10,262,526.24 & East= 3,801,780.255). Bearings described are related to the Texas Coordinate System of 1983, Central Zone. Distances shown are US Survey Feet in "Field Horizontar units and :nay be converted to "GRID" units by multiplying by a combined scale factor of 0.99988. Plat of even date accompanies this description. Prepared by: GeoSoiutions, LLC 25814 Budde Road Spring, Texas Tel. 281- 681 -9766 Job No 11- 249 -027 L' X"liDI IT :1An iwhl!'t r'il WAL,Krn CNPITY TITLE LE COMPANY UNIVERSITY AVENUE TEXAS 7734 Texas Neighborhood Stabilization Program (NSP Subordinate Lien Deed of Trust ( "Deed of Trust ") cAT 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. Date: MAY 24, 2013 Grantor: JAMES GAMBRELL AND WIFE, BRENDA GAMBRELL Grantor's Mailing Address: 115 AVENUE D, HUNTSVILLE, TX 77320 Trustee: Timothy K. Irvine of Travis County, Texas Trustee's Mailing Address: P.O. Box 13491 Austin, Travis County, Texas 78711 Beneficiary TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas. Beneficiary's Mailing Address: 211 East 11th Street Austin, Travis County, Texas 78701 NSP Deferred Forgivable Subordinate Lien (Note): Date: Of even date herewith. Original principal amount: Five Thousand Six Hundred Twenty -Three And Sixty- Nine /100 Dollars ($5,623.69) Maker: JAMES GAMBRELL and BRENDA GAMBRELL Payee: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas Maturity date: JUNE 01, 2018 Terms of Payment: As provided therein Property: SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. Prior Liens: TDHCANSPDOTHBA Page 1 of 9 Date: 5/24/2013 Grantor: JAMES GAMBRELL and BRENDA GAMBRELL Trustee: FRED WREN Amount: $86,600.00 Beneficiary: FIRST FINANCIAL BANK Recording Information: To be recorded in the Real Property Records of WALKER County, Texas. Other Exceptions to Conveyance and Warranty: 1. Visible and apparent easements on or across property which may not appear of record. 2. All coal, lignite, oil, gas and other minerals in, under and that may be produced from the land, together with all rights, privileges, and immunities relating thereto. 3. Restrictions, covenants, easements and outstanding mineral reservations, rights to royalties, if any shown of record in the hereinabove mentioned county and state, all to all zoning laws, regulations and ordinances of municipal and /or other governmental authorities, if any. 4. Ownership of all oil, gas and other minerals; and rights of all parties claiming by, through or under said mineral owner(s). For value received and to secure payment of Note, Grantor conveys the Property to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the Other Exceptions to Conveyance and Warranty. On payment of Note and all other amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Beneficiary will release it at Grantor's expense. A. Grantor's Obligations Grantor agrees to: 1. keep the Property in good repair and condition; 2. pay all taxes and assessments on the Property before delinquency; 3. defend title to the Property subject to the Other Exceptions to Conveyance and Warranty and preserve the lien's priority as it is established in this Deed of Trust; 4. maintain, in a form acceptable to Beneficiary, an insurance policy that: a. covers all improvements for their full insurable value as determined when the policy is issued and renewed, unless Beneficiary approves a smaller amount in writing; b. provides fire and extended coverage, including windstorm coverage; c. protects Beneficiary with a standard mortgage clause; d. provides flood insurance at any time the Property is in a flood hazard area; and e. contains such other coverage as Beneficiary may reasonably require. 5. deliver the insurance policy to Beneficiary within ten days of the date of this Deed of Trust and deliver renewals to Beneficiary at least fifteen days before expiration; TDHCANSPDOTHBA Page 2 of 9 6. obey all laws, ordinances, and restrictive covenants applicable to the Property; 7. keep any buildings occupied as required by the insurance policy; and 8. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior lien notes and abide by or cause to be abided by all prior lien instruments. B. Beneficiary's Rights 1. Beneficiary may appoint in writing a substitute trustee, succeeding to all rights and responsibilities of Trustee. 2. If the proceeds of Note are used to pay any debt secured by prior liens, Beneficiary is subrogated to all the rights and liens of the holders of any debt so paid. 3. Beneficiary may apply any proceeds received under the insurance policy either to reduce Note or to repair or replace damaged or destroyed improvements covered by the policy. If the Property is Grantor's primary residence and Beneficiary reasonably determines that repairs to the improvements are economically feasible, Beneficiary will make the insurance proceeds available to Grantor for repairs. 4. Notwithstanding note terms to the contrary, and unless applicable law prohibits, all payments received by Beneficiary from Grantor under Note or this Deed of Trust may, at Beneficiary's discretion, be applied first to amounts payable under this Deed of Trust and then to amounts due and payable to Beneficiary under Note, to be applied to late charges, principal, or interest in the order Beneficiary in its discretion determines. 5. If Grantor fails to perform any of Grantor's obligations, Beneficiary may perform those obligations and be reimbursed by Grantor on demand for any amounts so paid, including attorney's fees, plus interest on those amounts from the dates of payment at the rate stated in Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of Trust. 6. If there is a default on Note or if Grantor fails to perform any of Grantor's obligations and the default continues after any required notice of the default and the time allowed to cure, Beneficiary may: a. declare the unpaid principal balance and earned interest on Note immediately due; b. direct Trustee to foreclose this lien, in which case Beneficiary or Beneficiary's agent will cause notice of the foreclosure sale to be given as provided by the Texas Property Code as then in effect; and c. purchase the Property at any foreclosure sale by offering the highest bid and then have the bid credited on Note. 7. Beneficiary may remedy any default without waiving it and may waive any default without waiving any prior or subsequent default. C. Trustee's Duties If directed by Beneficiary to foreclose this lien, Trustee will: 1. either personally or by agent give notice of the foreclosure sale as required by the Texas Property Code as then in effect; 2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to Conveyance and Warranty and without representation or warranty, express or implied, by Trustee; TDHCANSPDOTHBA Page 3 of 9 3. from the proceeds of the sale, pay, in this order: a. expenses of foreclosure, including a reasonable commission to Trustee; b. to Beneficiary, the full amount of principal, interest, attorney's fees, and other charges due and unpaid; c. any amounts required by law to be paid before payment to Grantor; and d. to Grantor, any balance; and 4. be indemnified by Beneficiary against all costs, expenses, and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created by this Deed of Trust, which includes all court and other costs, including attorney's fees, incurred by Trustee in defense of any action or proceeding taken against Trustee in that capacity. D. General Provisions 1. If any of the Property is sold under this Deed of Trust, Grantor must immediately surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at sufferance of the purchaser, subject to an action for forcible detainer. 2. Recitals in any trustee's deed conveying the Property will be presumed to be true. 3. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any other remedy will not constitute an election of remedies. 4. This lien will remain superior to liens later created even if the time of payment of all or part of Note is extended or part of the Property is released. 5. Application of Payments. If any portion of Note cannot be lawfully secured by this Deed of Trust, payments will be applied first to discharge that portion. Unless applicable law provides otherwise, payments will be applied next, to principal due; third, to interest due; and last, to any late charges due under the Note. 6. Successors and Assigns Bound. This Deed of Trust shall bind, inure to the benefit of, and may be exercised by successors in interest of all parties. 7. Hazard or Property Insurance. It is recommended by Beneficiary that Grantor shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Beneficiary requires insurance in accordance with 24 CFR Part 58.6. If Grantor does not maintain coverage described above, Beneficiary may, at Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property in accordance with paragraph 9. Unless Beneficiary and Grantor otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the annual payments referred to in Note. If under part B, "Beneficiary's Rights" and part C, "Trustee's Rights ", the Property is acquired by Beneficiary, Grantor's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Beneficiary to the extent of the sums secured by this Deed in Trust immediately prior to the acquisition. 8. Usury; Interest. Interest on the debt secured by this Deed of Trust will not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess will be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt TDHCANSPDOTHBA Page 4 of 9 or, if the principal of the debt has been paid, refunded. This provision overrides any conflicting provisions in this and all other instruments concerning the debt. 9. Protection of Beneficiary's Rights in the Property. If Grantor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Beneficiary may take action under this paragraph 9, Beneficiary does not have to do so. Any amounts disbursed by Beneficiary under this paragraph 9 shall become additional debt of Grantor secured by this Deed of Trust. Unless Grantor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Beneficiary to Grantor requesting payment. 10. Mortgage Insurance. If Beneficiary required mortgage insurance as a condition of making the loan secured by this Security Instrument, Grantor shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Beneficiary lapses or ceases to be in effect, Grantor shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Grantor of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Beneficiary. If substantially equivalent mortgage insurance is not available, Grantor shall pay to Beneficiary each month a sum equal to one - twelfth of the yearly mortgage insurance premium being paid by Grantor when the insurance coverage lapsed or ceased to be in effect. Beneficiary will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Beneficiary, if mortgage insurance coverage (in the amount and for the period that Beneficiary requires) provided by an insurer approved by Beneficiary again becomes available and is obtained. Grantor shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Grantor and Beneficiary or applicable law. 11. Inspection. Beneficiary or its agent may make reasonable entries upon and inspections of the Property. Beneficiary shall give Grantor notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 12. Condemnation. Grantor assigns to Beneficiary all amounts payable to or received by Grantor from condemnation of all or part of the Property, from private sale in lieu of condemnation, and from damages caused by public works or construction on or near the Property. After deducting any expenses incurred, including attorney's fees and court and other costs, Beneficiary will either release any remaining amounts to Grantor or apply such amounts to reduce Note. Beneficiary will not be liable for failure to collect or to exercise diligence in collecting any such amounts. Grantor will immediately give Beneficiary notice of any actual or threatened proceedings for condemnation of all or part of the Property. 13. Subrogation. Any of the proceeds of the Note used to take up outstanding liens against all or any part of the Property have been advanced by Beneficiary at Grantor's request and upon Grantor's representation that such amounts are due and are secured by valid liens against the Property. Beneficiary shall be subrogated to any and all rights, superior titles, liens and equities owned or claimed by any owner or holder of any outstanding liens and debts, regardless of whether said liens or debts are acquired by Beneficiary by assignment or are released by the holder thereof upon payment. 14. Purchase Money; Vendor's Lien. Grantor represents that this Deed of Trust and Note are given for the following purposes: TDHCANSPDOTHBA Page 5 of 9 The funds advanced to Maker under Note are used to pay closing cost and part of the purchase price of the Property. Note also are primarily secured by a vendor's lien retained in the deed of even date with this Deed of Trust executed by CITY OF HUNTSVILLE conveying the Property to Maker, which vendor's lien has been assigned to Beneficiary, this Deed of Trust being additional security for such vendor's lien. The vendor's lien is TRANSFERRED to Beneficiary by this deed. The Deed of Trust does not waive the vendor's lien, and the two liens and the rights created by this Deed of Trust shall be cumulative. Beneficiary may elect to foreclose under either of the liens without waiving the other or may foreclose under both 15. Transfer of the Property or a Beneficial Interest in Grantor. IN THE EVENT THAT SALE OR CONVEYANCE IS MADE OF ALL OR ANY PORTION OF THE MORTGAGED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF BENEFICIARY TO SAID SALE, THEN BENEFICIARY MAY AT ITS ELECTION ACCELERATE THE MATURITY DATES OF NOTE AND DEMAND FULL PAYMENT OF THE BALANCE OF ALL PRINCIPAL AND INTEREST REMAINING DUE THEREON. If the Property is residential, real property containing fewer than five (5) dwelling units or a manufactured home occupied by Grantor, 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 operation of law on the death of a co- Grantor; (d) grant of a leasehold interest of three years or less without an option to purchase; (3) transfer to a spouse or children of Grantor or between co- Grantors; (f) transfer to a relative of Grantor on Grantor's death; and (g) transfer to an inter vivos trust in which Grantor is and remains a beneficiary and occupant of the Property. The restriction on the transfer of Property will automatically terminate if title to the Property is transferred by foreclosure or deed -in -lieu of foreclosure, or if the mortgage is assigned to the Secretary of the U. S. Department of Housing and Urban Development in accordance with 24 C.F.R. §203.41. 16. Loan Not a Home Equity Loan. The Loan evidenced by Note is not an extension of credit as defined by Section 50(a)(6) or Section 50(a)(7), Article XVI, of the Texas Constitution. If the Property is used as Maker's residence, then Maker agrees that Maker will receive no cash from the Loan evidenced by Note and that any advances not necessary to purchase the Property, extinguish an owelty lien, complete construction, or renew and extend a prior lien against the Property, will be used to reduce the balance evidenced by Note or such Loan will be modified to evidence the correct Loan balance, at Beneficiary's option. Maker agrees to execute any documentation necessary to comply with this Section. 17. Occupancy, Preservation, Maintenance and Protection of the Property. GRANTOR REPRESENTS THAT IT IS A HOUSEHOLD WITH AN INCOME AT OR BELOW ONE HUNDRED TWENTY PERCENT (120 %) OF AREA MEDIAN INCOME, AND WILL CONTINUE TO USE THE PROPERTY AS THEIR PRINCIPAL RESIDENCE. IF GRANTOR CEASES TO OCCUPY THE PROPERTY AS THEIR PRINCIPAL RESIDENCE, THE BENEFICIARY MAY AT ITS ELECTION ACCELERATE THE MATURITY DATES OF NOTE AND DEMAND FULL PAYMENT OF THE UNPAID AND /OR UNFORGIVEN BALANCE OF ALL PRINCIPAL AND INTEREST, IF ANY, REMAINING DUE THEREON. HOWEVER, THIS ELECTION SHALL NOT BE EXERCISED BY BENEFICIARY IF PROHIBITED BY FEDERAL LAW. Grantor shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Grantor shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Beneficiary's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Deed of Trust or Beneficiary's security interest. Grantor may cure such a default and reinstate, as provided under part B, "Beneficiary's Rights" and part C, "Trustee's Rights ", by causing the action or proceeding to be dismissed with a ruling that, in Beneficiary's good faith determination, precludes forfeiture of the Grantor's interest in the Property or other material impairment of the lien created by this Deed of Trust or Beneficiary's security interest. Grantor shall also be in default if Grantor, during the loan application process, gave materially false or inaccurate information or statements to Beneficiary (or failed to provide Beneficiary with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Grantor's occupancy of the Property as a principal residence TDHCANSPDOTHBA Page 6 of 9 18. Hazardous Substances. Grantor shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Grantor shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. Grantor shall promptly give Beneficiary written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Grantor has actual knowledge. If Grantor learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substances affecting the Property is necessary, Grantor shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 18, "Hazardous Substances" are those substances defined as toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 18, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. 19. Waiver of Notice of Intention to Accelerate. Grantor waives the right to notice of intention to require immediate payment in full of all sums secured by this Deed of Trust and the right to notice of acceleration, except in either case as provided under part B, "Beneficiary's Rights" and part C, "Trustee's Rights." 20. Substitute Trustee. Beneficiary, at its option and with or without cause, may from time to time remove Trustee and appoint, by power of attorney or otherwise, a successor trustee to any Trustee appointed hereunder. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by applicable law. 21. Grantor's Right to Reinstate. If Grantor meets certain conditions, Grantor shall have the right to have enforcement of this Deed of Trust discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Deed of Trust; or (b) entry of a judgment enforcing this Deed of Trust. Those conditions are that Grantor: (a) pays Beneficiary all sums which then would be due under this Deed of Trust and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Deed of Trust, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Beneficiary may reasonably require to assure that the lien of this Deed of Trust, Beneficiary's rights in the Property and Grantor's obligation to pay the sums secured by this Deed of Trust shall continue unchanged. Upon reinstatement by Grantor, this Deed of Trust and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under part B, "Beneficiary's Rights" and part C, "Trustee's Rights." 22. Release. Upon payment of all sums secured by this Deed of Trust, Beneficiary shall release this Deed of Trust without charge to Grantor. Grantor shall pay any recordation costs. 23. Severability. If any provision of this Deed of Trust is determined to be invalid or unenforceable, the validity or enforceability of any other provision will not be affected. 24. Partial Invalidity. In the event any portion of the sums intended to be secured by this Deed of Trust cannot be lawfully secured hereby, payments in reduction of such sums shall be applied first to those portions not secured hereby. 25. The term Note includes all extensions and renewals of Note and all sums secured by this Deed of Trust. TDHCANSPDOTHBA Page 7 of 9 25. When the context requires, singular nouns and pronouns include the plural. 26. If Grantor and Maker are not the same person, the term Grantor shall include Maker. 27. Second Lien. Notwithstanding any provision of this Deed of Trust to the contrary, the lien and security interest created hereby are expressly subordinate and inferior to the lien created by the Prior Lien. Upon the event of foreclosure or deed in lieu of foreclosure of the Prior Lien, any provisions herein, or any provisions in any other collateral agreement, restricting the use of the Property to low or moderate income households or otherwise restricting the Grantor's ability to sell the Property shall have no effect on subsequent owners or purchasers of the Property (other than the Grantor or a related entity of Grantor). Prior to taking any actions under part B, "Beneficiary's Rights" and part C, "Trustee's Rights ", Beneficiary shall notify the lienholder of the Prior Lien of the default, and shall provide the lienholder of the Prior Lien with the opportunity to cure any such default under this Deed of Trust. 28. Repayment Deferrals, Reductions and Forgiveness. Note provide for certain potential deferrals, principal reductions, forgiveness or other payment terms. Note also provide that full debt, if not paid or forgiven earlier, shall be due and payable on the sale of the Property (subject to paragraphs 15 and 17), refinance of any superior lien or acceleration of any superior lien note. 29. "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: r! Adjustable Rate Rider rl Balloon Rider ri 1 -4 Family Rider �.. GRANTOR: n .1 Condominium Rider r Planned Unit Development Rider ri Biweekly Payment Rider rl Second Home Rider r Renewal & Extension Addendum rl Other(s) [specify] JAMES GAMBRELL C , N i A GAMBRELL TDHCANSPDOTHBA Page 8 of 9 (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower ]Space Below This Line For Acknowledgment] State of TEXAS County of WALKER Before me, a Notary Public, on this day personally appeared JAMES GAMBRELL and BRENDA GAMBRELL known to me (or proved to me on the oath of or through [description of identity card or other document) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office this °�" day of —�.� , A.D. 0). i3 (Seal) My Commission Expires: \�01111i /i /PPi � •. JUDY447" r fgrrature o . PREPARED BY: BLACK, MANN & GRAHAM, L.L.P. 2905 CORPORATE CIRCLE FLOWER MOUND, TX 75028 (972)- 353 -4174 r*-I Title of Officer .crA (3:0 o -� y ..4)e -- AS ° ''PPPP11f9119VAR RECORDING RETURN TO: Texas Department of Housing and Community Affairs NSP Program Division P.O. Box 13941 Austin, Texas 78711 -3941 ATTN: JONIEL CRIM /SHIRLEY SMITHAM ricer TDHCANSPDOTHBA Page 9 of 9 METES AND BOUNDS DESCIUPTION of Lot 6 of Vann - Johnson Subdivision, Huntsville, Texas Being a 0.164 of an acre (7,126 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of Lot 6 of the Vann- Johnson Subdivision, as recorded' in Volume 5, Page 81 of the Plat Records of Walker County, Texas (P.R.W.C.T.) same being a portion of that certain called 1.17 acre tract of land conveyed to the City of Hu tsville by deed and recorded in Volume 955, Page 720 of Official Public Records of Walker County, Texas (O.P.R.W.C.T.); said 0.164 of an acre of land being more particularly described by metes and bounds as follows: BEGINNING at a found 518 -inch iron rod with cap in the westerly line adult certain called 50' Road as recorded in Volume 85, Page 161 of the Deed Records of Walker County, Texas (D.R.W.C,), being the northeasterly corner of Lot 5 of said Vann - Johnson Subdivision, same being the southeasterly corner of said Lot 6, and being in the easterly line of said 1.17 acre tract; THENCE, South 87 °24'13" West, a distance of 150.16 feet, along the northerly line of said Lot 5, being the southerly line of said Lot 6 to a found 518 -inch iron rod with cap in the easterly line of that certain called 0.62 acre tract of land conveyed to Abe Johnson by deed and recorded in Volume 96, Page 192 of said Deed Records, being the northwesterly corner of said Lot 5, same being the southwesterly corner of said Lot 6, and being in the westerly line of said 1.17 acre tract; THENCE, North 02 °35'47" West, a distance of 33.10 feet, along the easterly line of said 0.62 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the southwesterly corner of that certain called 0.032 acre tract of land conveyed to Cal Johnson by deed and recorded in Volume 977, Page 120 of said Official Public Records, being the northwesterly corner of said Lot 6, same being an interior corner in the westerly line of said 1.17 acre tract; THENCE, North 87 °24'13" East, a distance of 60.92 feet, along the southerly line of said 0.032 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the southeasterly corner of said 0.032 acre tract, being an interior corner in the westerly line of said Lot 6 and said 1.17 acre tract; THENCE, North 04 °14'21" West, a distance of 23.65 feet, along the easterly line of said 0.032 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northeasterly corner of said 0.032 acre tract, being the southeasterly comer of that certain called 3,000 sq. ft, tract of land conveyed to Cal Johnson by deed and recorded in Volume 215, Page 412 of said Deed Records, same being the southwesterly corner of that certain called 0.756 acre tract of land conveyed to the City of Huntsville by deeds and recorded in Volume 584, Page 299 and Volume 584, Page 305 of said Official Public Records, also being at northwesterly corner of said Lot 6 and said 1.17 acre tact; THENCE, North 86 °51'49" East, a distance of 89.93 feet, along the southerly line of said 0.756 acre tract, being the northerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northwesterly corner of said 50' Road, being the northeasterly corner of said Lot 6 and said 1.17 acre tract; THENCE, South 02 °35'47" East, a distance of 57.59 feet, along the westerly line of said 50' Road, being the easterly line of said Lot 6 and said 1.17 acre tract to the Point of Beginning and containing 0.164 of an acre of land. r EXHIBIT "A" PAGE__L_OF Horizontal Control is based on holding City of Huntsville Monuments No. 7574 (grid coordinate of North = 10,262,485.31 & East= 3,802,009.473) and 7575 (grid coordinate of North = 10,262,526.24 & East= 3,801,780.255). Bearings described are related to the Texas Coordinate System of 1983, Central Zone. Distances shown are US Survey Feet in "Field Horizontal ". units and may be converted to "GRID" units by multiplying by a combined scale factor of 0.99988. Plat of even date accompanies this description. Preparer, by: GeoSolutions, LLC 25814 Budde Road Spring: Texas Tel. 281 -681 -9766 Job No. °.1- 249 -027 STEPHEN ht. CHRUSZCZAK q V41 37 EXHIBIT "A" PAGE, c2 OF Texas Neighborhood Stabilization Program (NSP) Homebuyer Assistance Deferred Forgivable Subordinate Lien Note ( "Note ") Date: MAY 24, 2013 Borrower: JAMES GAMBRELL and BRENDA GAMBRELL Borrower's Mailing Address: 115 AVENUE D HUNTSVILLE, WALKER County, TX 77320 Lender: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas ( "TDHCA ") Lender's Mailing Address: 211 East 11th St., Austin, Texas 78701 P.O. Box 13941, Austin, Texas 78711 -3941 PROPERTY (which includes the real property and improvements thereon): 115 AVENUE D [Property Address] HUNTSVILLE WALKER TX 77320 [City] [County] [State] [Zip] more specifically described as, SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. [Legal Description] hereinafter referred to as "Property." 1. BORROWER'S PROMISE TO PAY Borrower promises to pay U. S. Five Thousand Six Hundred Twenty -Three And Sixty- Nine /100 Dollars ( "$5,623.69 ") ( "Principal Amount ") to the order of the Lender. Borrower understands that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. ANNUAL INTEREST RATE Zero percent (0 %) per annum ANNUAL INTEREST RATE ON MATURED, UNPAID AMOUNTS Twenty percent (20 %) per annum 3. PAYMENT TERMS; TIME AND PLACE OF PAYMENTS (A) Payment Terms; Time of Payments The loan repayment of the Principal Amount of this Note shall be due and payable in legal tender of the United States of America in 5 equal annual installments of One Thousand One Hundred Twenty -Four And Seventy- Four /100 Dollars ($1,124.74) each year beginning JUNE 01, 2014 (the "First Anniversary"), and shall continue annually until JUNE 01, 2018, the expiration of 5 years ( "Maturity Date "). At Maturity Date, the unpaid and un- forgiven amounts owing under this Note shall be due and payable in full. Each payment TDHCANSPNOTEHBA Page 1 of S installment will be applied first to accrued interest, if any, and the remainder to reduction of the Principal Amount. After Maturity Date, Borrower promises to pay any unpaid principal balance plus interest at the Annual Interest Rate on Matured, Unpaid Amounts. (B) Deferral and Annual Forgiveness Provided that the Borrower complies with the terms of this Note, the NSP Subordinate Deed of Trust, and any and all other documents evidencing, securing or executed in connection with this Note, the amounts of Principal Amount due and payable under this Note shall be deferred and waived annually at a rate of 20% of Principal, Amount per year beginning on the First Anniversary and continuing annually until Maturity Date. (C) Place of Payment Borrower will make payment(s) at P. 0. Box 13941, Austin, Texas 78711- 3941or at a different place if required by the Note Holder. (D) Due on Sale/Repayment If one of the following events should occur before said Maturity Date, the unpaid and unforgiven balance of this Note shall be immediately due and payable and Note Holder may invoke any remedies provided under the NSP Subordinate Deed of Trust securing this Note: (a) the note executed by Borrower made payable to FIRST FINANCIAL BANK( "First Lien Lender "), in the amount of $$86,600.00, of even date with this Note, hereinafter the "Superior Lien Note(s)" is paid in full upon its maturity and according to its terms; or (b) the Superior Lien Note(s) is refinanced in whole or in part or is assumed by a new borrower without the consent of the Note Holder; or (c) the unpaid balance(s) of the Superior Lien Note(s) becomes due and payable in full for any reason (whether by acceleration or according to its terms, and including, without limitation, because any maker of the Superior Lien Note(s) is in default); or (d) all or any part of the Property, or any interest in it, is leased, transferred or conveyed without Note Holder's prior, written consent; or (e) Borrower ceases to occupy the mortgaged property as his or her principal residence. If the collateral is residential real property containing fewer than five dwelling units or a residential manufactured home occupied by Borrower, 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 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. (E) Recapture Upon the sale of the mortgaged property, any unpaid or un- forgiven balance of the Note shall be due and payable in full from the available Net Proceeds from the sale of the mortgaged property pursuant to 24 CFR §92.254. Net Proceeds of a sale are the sales price of Property minus the closing costs, any superior lien loan repayment and any other necessary transaction costs. If the Net Proceeds are insufficient to repay the outstanding balance of the Note in full and Borrower's investment (which includes any portion of initial down payment paid by Borrower combined with the value of any capital improvements made with Borrower's funds), the Borrower's investment is paid in full first from the available proceeds from the re -sale and the Note is repaid to the extent that proceeds are available, but only in the event the mortgaged property was sold for an amount TDHCANSPNOTEHBA Page 2 of 5 not less than the current appraised value as then appraised by the appropriate governmental authority without the consent of Lender. If there are no Net Proceeds and the mortgage property was sold for an amount not less than the current appraised value as then appraised by the governmental authority, repayment of the Note is not required. 4. BORROWER'S RIGHT TO PREPAY Borrower has the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment." Borrower may make a full prepayment or partial prepayments without paying any prepayment charge. The Note Holder will use all of the prepayments to reduce the amount of principal that Borrower owes under this Note. If Borrower makes a partial prepayment, there will be no changes in the due date or in the amount of the payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES: NO USURIOUS INTENT If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (i) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. The Note Holder may choose to make this refund by reducing the principal owed under this Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Default If Borrower does not make the full amount of the annual payment on the date said annual installment payment is due, Borrower will be in default. Additionally, Borrower will be in default under this NSP Deferred Subordinate Lien Note: (i) if Borrower fails to perform any obligation required of Borrower under the deed of trust securing this Note or takes any action prohibited under the deed of trust securing this Note, (ii) if any representations made by Borrower in connection with this loan was false in any material respect when made, or (iii) if any default occurs under the Superior Lien Note(s) described herein or under the deed of trust securing said Superior Lien Note(s). Any default under the NSP Subordinate Deed of Trust securing this Note shall be deemed to be a default under this Note. (B) Notice of Default If Borrower is in default, the Note Holder may send Borrower a written notice telling Borrower that if Borrower does not pay the overdue amount by a certain date, the Note Holder may require Borrower to pay immediately the full amount of principal which has not been paid. That date must be at least 30 days after the date on which the notice is delivered or mailed to Borrower. (C) No Waiver By Note Holder Even if, at a time when Borrower is in default, the Note Holder does not require Borrower to pay immediately in full as described above, the Note Holder will still have the right to do so if Borrower is in default at a later time. TDHCANSPNOTEHBA Page 3 of 5 (D) Payment of Note Holder's Costs and Expenses If the Note Holder requires Borrower to pay immediately in full as described above, the Note Holder will have the right to be paid and reimbursed for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice to Borrower under this Note will be given by delivering it or by mailing it by first class mail to Borrower at the Property Address above or at a different address if Borrower gives the Note Holder a notice of the changed in address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3 above or at a different address if Borrower is given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. 9. SUBORDINATION TO SUPERIOR LIENS This is a subordinate lien note, subject and subordinate in all respects to the lien, terms, covenants and conditions of the Superior Lien Note(s) described herein and the deed of trust securing payment of said Superior Lien Note(s). Borrower understands that any default under the Superior Lien Note(s) described herein or the deed of trust securing it will be a default under this Note. The lien(s) securing this Note is /are subordinate to the lien securing another note in the original principal amount of Eighty -Six Thousand Six Hundred And No /100 Dollars ($86,600.00), dated 5/24/2013 and executed by JAMES GAMBRELL and BRENDA GAMBRELL, payable to the order of FIRST FINANCIAL BANK. 10. WAIVERS Borrower and any other person who has obligations under this Note waive notice of intention to accelerate, except as provided in except as provided in Section 6 (C) above, and the rights of presentment and notice of dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11. SECURITY FOR PAYMENT This Note is secured by a vendor's lien granted in a deed to Borrower dated the same date as this Note and the liens and security interests granted in the NSP Subordinate Deed of Trust (the "Security Instrument "), dated of even date herewith, from Borrower to Timothy K. Irvine, Trustee, for the benefit of Lender, upon and against the Property. 12. GOVERNING LAW The laws of the State of Texas and applicable federal law shall govern this Note. If applicable federal law permits any charge, fee or other item that is contracted for, charged, taken, reserved or received under this Note TDHCANSPNOTEHBA Page 4 of 5 which is not permitted or in excess of the amount permitted under Texas law, the applicable federal law shall control. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. MES GA BRELL ► : A AMBRELL TDHCANSPNOTEHBA Page 5 of 5 (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower METES AND BOUNDS DESCRIPTION of Lot 6 of Vann- Johnson Subdivision, Huntsville, Texas Being a 0.164 of an acre (7,126 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of Lot 6 of the Vann - Johnson Subdivision, as recorded in Volume 5, Page 81 of the Plat Records of Walker County, Texas (P.R.W.C.T.) same being a portion of that certain called 1.17 acre tract of land conveyed to the City of Huntsville by deed and recorded in Volume 955, Page 720 of Official Public Records of Walker County, Texas (O.P.R.W.C.T.); said 0.164 of an acre of land being more particularly described by metes and bounds as follows: BEGINNING at a found 5/8 -inch iron rod with cap in the westerly line of that certain called 50' Road as recorded in Volume 85, Page 161 of the Deed Records of Walker County, Texas (D.R.W.C.), being the northeasterly corner of Lot 5 of said Vann-Johnson Subdivision, same being the southeasterly corner of said Lot 6, and being in the easterly line of said 1.17 acre tract; THENCE, South 87 °24'13" West, a distance of 150.16 feet, along the northerly line of said Lot 5, being the southerly line of said Lot 6 to a found 5/8 -inch iron rod with cap in the easterly line of that certain called 0.62 acre tract of land conveyed to Abe Johnson by deed and recorded in Volume 96, Page 192 of said Deed Records, being the northwesterly corner of said Lot 5, same being the southwesterly corner of said Lot 6, and being in the westerly line of said 1.17 acre tract; THENCE, North 02 °35'47" West, a distance of 33.10 feet, along the easterly line of said 0.62 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the southwesterly corner of that certain called 0.032 acre tract of land conveyed to Cal Johnson by deed and recorded in Volume 977, Page 120 of said Official Public Records, being the northwesterly corner of said Lot 6, same being an interior corner in the westerly line of said 1.17 acre tract; THENCE, North 87°24'13" East, a distance of 60.92 feet, along the southerly line of said 0.032 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the southeasterly corner of said 0.032 acre tract, being an interior corner in the westerly line of said Lot 6 and said 1.17 acre tract; THENCE, North 04 °14'21" West, a distance of 23.65 feet, along the easterly line of said 0.032 acre tract, being the westerly line of said Lot 6 and said 1.17 acre tract to a found 518 -inch iron rod with cap at the northeasterly corner of said 0.032 acre tract, being the southeasterly comer of that certain called 3,000 sq. ft. tract of land conveyed to Cal Johnson by deed and recorded in Volume 215, Page 412 of said Deed Records, same being the southwesterly corner of that certain called 0.756 acre tract of land conveyed to the City of Huntsville by deeds and recorded in Volume 584, Page 299 and Volume 584, Page 305 of said Official Public Records, also being at northwesterly corner of said Lot 6 and said 1.17 acre tract; THENCE, North 86 °51'49" East, a distance of 89.93 feet, along the southerly line of said 0.756 acre tract, being the northerly line of said Lot 6 and said 1.17 acre tract to a found 5/8 -inch iron rod with cap at the northwesterly corner of said 50' Road, being the northeasterly corner of said Lot 6 and said 1.17 acre tract; THENCE, South 02 °35'47" East, a distance of 57.59 feet, along the westerly line of said 50' Road, being the easterly line of said Lot 6 and said 1.17 acre tract to the Point of Beginning and containing 0.164 of an acre of land. EXHIBIT "At' PAGE _.i_OF� Horizontal Control is based on holding City of Huntsville Monuments No. 7574 (grid coordinate of North = 10,262,485.31 & East= 3,802,009.473) and 7575 (grid coordinate of North = 10,262,526.24 & East= 3,801,780.255). Bearings described are related to the Texas Coordinate System of 1983, Central Zone. Distances shown are US Survey Feet in "Field HorizontaP'. units and may be converted to "GRID" units by multiplying by a combined scale factor of 0.99988. Plat of even date accompanies this description. Prepared by: GeoSolutions, LLC 25814 Budde Road Spring, Texas Tel. 281-681-9766 Job No. 11-249-027 STEPHEN M.CHRUSZCZAK ° 5 37 +Pi �4Ai '•a¢• "IOQ. SURVE EXHIBIT "A" DA 17110 (W .� Please give this letter to borrower at closing. MAY 24, 2013 JAMES GAMBRELL and BRENDA GAMBRELL 115 AVENUE D HUNTSVILLE, TX 77320 Re: Loan Number 77099991267C Dear JAMES GAMBRELL and BRENDA GAMBRELL: The Texas Department of Housing and Community Affairs would like to welcome you as a new customer. Your first payment on your mortgage loan will be due JUNE 01, 2014. Please use the temporary coupon attached below when mailing your first payment. Your loan may include an escrow account, which is used to pay your taxes and insurance. Annually, we will analyze the escrow account, and your payment may be adjusted accordingly. If, for example, your property taxes increase, your payment may also increase. At the end of each year, the Department will send you an annual statement for your records. This information will also be transmitted to the Internal Revenue Service for income tax purposes. If you have any questions or concerns regarding your mortgage loan, please don't hesitate to contact us at the number listed below. We look forward to servicing your mortgage loan. Texas Department of Housing and Community Affairs If by mail: P.O. Box 13941, Austin, Texas 78711 -3941 If by overnight delivery service: 221 E. Ilth Street, Austin, Texas 78701 Toll Free: 800.298.4013 FAX Number: 512.472.7500 CUT HERE FOR FIRST PAYMENT COUPON Mail to: Loan Number: Payment Due Date: Borrower Name: Mortgage Loan Payment: Texas Department of Housing and Community Affairs P.O. Box 13245 -C3 Austin, Texas 78711 -3245 77099991267C JUNE 01, 2014 JAMES GAMBRELL and BRENDA GAMBRELL Principal & Interest: Escrow: Total Payment: TDHCANSPPAYLTRHBA Page 1 of 1 $1,124.74 $0.00 $1,124.74 (if not forgiven) Affidavit of Occupancy Borrower hereby certifies and acknowledges that home being purchased under the Texas Neighborhood Stabilization Program is same property described in Appraisal Report (appraisals must conform to the Uniform Relocation Act ( "URA ") requirements under 49 CFR 24.103) for 115 AVENUE D, HUNTSVILLE WALKER County, TX 77320 dated MAY 24, 2013. The Borrower(s) hereby certifies and acknowledges that the above reference property will be their primary residence and will be occupied within 30 days of closing the mortgage loan. JAMES GA BRELL - Borrower - Borrower - Borrower DA GAMBRELL - Borrower - Borrower - Borrower ACKNOWLEDGEMENT THE STATE OF COUNTY OF ore me, this instr ent was signed and acknowledged on \ 40 !:1:11‘i. Tyq, ° AR 4.� i ' Ngiy Publ, State of Texas y ,FXaFTEX�S �/ P /RES �° (SEAL) THE STATE OF TEX COUNTY OF [Typed / Printed Name] °'si, 8.��•••• ^° ���� My Commission Expires: g---/V--261 B- ore me, this in rument was signed and acknowledged \SS) ANN Tyo9 4 �o � °�p'$ARYP!% •.y2�j f %�.� • • 4j41. • : ip0.1 FTE" :RES,, •.• I ,,, '4-01 �E�pO\\\ *` (SEAL) TDHCANSPOCCUPAN Page 1 of 1 on �/ / (L A e2 , 20/L-5 by Notary Phi •;Jc) Dc; [Typed / Printed Name] My Commission Expires: /c- Zd /L SURVEY AND TITLE LETTER I /We the undersigned Borrower(s) hereby certify that I /we have received, reviewed, and approved a copy of the attached survey which is incorporated hereto by reference and have signed or initialed and dated same for identification purposes. I /We am /are aware of the indicated encroachments, protrusions, easements, limitations, access, dimensions, and/or other conditions shown on the survey. I /We further certify that the Settlement Agent has provided me /us with a copy of the Commitment for Title Insurance and that I /we have reviewed and consent to all of the exceptions to title which would appear in an Owner's Title Policy for the Property. IN CONSIDERATION OF THE LENDER MAKING A LOAN TO BORROWER(S), I/WE HEREBY HOLD LENDER HARMLESS FROM ANY COMPLAINT ARISING AS A RESULT OF ANY MATTERS INDICATED IN THE SURVEY, THE EXCEPTIONS STATED IN THE COMMITMENT FOR TITLE INSURANCE, AND THE OWNER'S AND MORTGAGEE TITLE INSURANCE POLICIES. IN ADDITION TO BUT NOT IN LIEU OF THE ABOVE AND FOR THE CONSIDERATION RECITED ABOVE, 1 /WE HAVE BEEN MADE AWARE OF THE FOLLOWING SPECIFIC CONDITIONS AFFECTING THE ABOVE - DESCRIBED PROPERTY AND I/WE DO HEREBY AGREE, INDEMNIFY AND HOLD HARMLESS LENDER, ITS SUCCESSORS AND ASSIGN FROM ANY CLAIMS, COSTS, DAMAGES, CAUSES OF ACTION AND EXPENSES IN ANY WAY ARISING FROM THE FOLLOWING CONDITIONS: CONCRETE DRIVEWAY AND OVERHEAD UTILITY LIES INTO EASEMENT. OVERHEAD UTILITY CROSSES OVER PROPERTY. EXECUTED this / day of BORROWER: MES GAMBRELL TDHCANSPSURVEY Page 1 of 1 7)/.‘oZ,L,,(/ GAM RELL TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Texas Neighborhood Stabilization Program (NSP) (Homebuyer Assistance) DUE ON SALE /AFFORDABILITY PROVISION On this date the undersigned Borrower has executed a NSP Subordinate Deed of Trust ( "Deed of Trust ") on the following property to secure a NSP Deferred Forgivable Subordinate Lien Note (HBA) ( "Note ") in the amount of $5,623.69 of even date to the Texas Department of Housing and Community Affairs, a public and official agency of the State of Texas ( "Lender "), to -wit: SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. Whereas, said Deed of Trust and Note contain federal HOME Program due on sale clauses and affordability requirement provisions under 24 CFR Section 92.254 associated with and as adopted by the Texas NSP Homebuyer Assistance Program loan. UWe, the undersigned Borrower, hereby acknowledge(s) the following: "The due on sale provisions and the affordability requirements contained therein have been explained to me /us and I /we fully understand these provisions. I /we further understand that the loan is being made to me /us based upon my /our assurance that I /we will live in the house on the Property, as my /our principal place of residence for a period of 5, (JUNE 01, 2018) years and repay the loan to the Lender according to the terms of the Note and Deed of Trust and that if I /we should sell or move from the Property prior to the end of 5 (JUNE 01, 2018) year period, the balance of the Note, including interest (if applicable), will become immediately due and payable to Lender. UWe further acknowledge that the resale and recapture calculation examples have been explained to me /us and that I /we understand the calculations and the circumstances under which the due on sale will be triggered. I /We also acknowledge that, I /we understand that it is my /our responsibility to recertify to the Lender that I /we am /are still residing in the house on the Prope as my /our principal residence." EXECUTED this/ day of 0- _ , 20 BORROWER: By:, -r(, Name: AMES GAMBRELL Title: By: Name: Title: TDHCANSPDUEONSALEHBA Page 1 of 1 By: Name: Title: By: Name: Title: BRENDA GAMBRELL G.F. NO.: 201303671 POLICY NO. 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 Tess. 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. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS By: Its: Duly Authorized Representative DATE: Loan No.: 77099991267C TDHCADELARB Page 1 of 1 Applicants /Borrowers: JAMES GAMBRELL Property Address: 115 AVENUE D, HUNTSVILLE, TX 77320 Loan No: 77099991267C NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Warning: Intentionally or knowingly making a materially false or misleading written statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We received, read, and executed this written Notice. ES GAMBRELL STATE OF ( TEXAS ) COUNTY OF ( WALKER ) This instrument was acicnovK .t +, me on P 4 ota My commi sio(n.ex ires• . (, �otgryh teed l,'/ �000' (Seal) c./ l/(.3 by JAMES GAMBRELL . ate of TEXAS r printed name: 7—r , i) TXPENALTYB1 Page 1 of 1 Applicants /Borrowers: JAMES GAMBRELL Property Address: 115 AVENUE D, HUNTSVILLE, TX 77320 Loan No: 77099991267C NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Warning: Intentionally or knowingly making a materially false or misleading written statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We received, read, and executed this written Notice. AMES GAM RELL S ATE OF ( TEXAS ) '� \11it{�firtra/ COUNTY OF ( WALKER) re�\�y p,NN TyU ,9'4,11✓ This instrument was ac10 . ®,0" X14. '` ' fc, ate of TEXAS My com ission expir s: % "�< •'••;1'PlF1 .. : �Lyped r printed name: K-111- 20/ e <,'��e 74-i t �aNe'�,\e %M (Seal) on )2?(-4 ,2 201 by JAMES GAMBRELL . l /4141 //ebe-4/10) TXPENALTYBI Page 1 of 1 Applicants /Borrowers: BRENDA GAMBRELL Property Address: 115 AVENUE D, HUNTSVILLE, TX 77320 Loan No: 77099991267C NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Warning: Intentionally or knowingly making a materially false or misleading written statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We rec - . - . , re . d, and executed this written Notice. STATE OF ( TEXAS ) COUNTY OF ( WALKER ) This instrument was acknowledged before (Seal) ��velNtOq 8 kf f it /��,��� \\��\�' 9' ANN 6 9otary Pu c, State oy/rEXAS My commission expires °•��T�OYp��,fl2X4tary's ped or pri d name: _ I rft :52 s. •.F_ OF TEXP' \, by BRENDA GAMBRELL . TXPENALTY82 Page 1 of 1 Applicants/Borrowers: BRENDA GAMBRELL Property Address: 115 AVENUE D, HUNTSVILLE, TX 77320 Loan No: 77099991267C NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Warning: Intentionally or knowingly making a materially false or misleading written statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We rece ved, read, and executed this written Notice. STATE OF ( TEXAS ) COUNTY OF ( WALKER ) This instrument was acknowledged) (Seal) My commission expires: g -/� zap U by BRENDA GAMBRELL . ����Oi RY R�T' N. ubliiy, s'.te of TEXAS 11 • 94, eta ;. typed offprinted name: ,.,,,,..15 JL7 Ar 4✓ s. • • Of TAP' !e,, •••F?"pIHES..•• ca< **,,,,87 OilO1N11�aa��\�\,\ TXPENALTYB2 Page 1 of 1 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TEXAS NEIGHBORHOOD STABILIZATION PROGRAM TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS LOAN SERVICING DEPARTMENT INITIAL LOAN CONTACT INFORMATION LOAN NUMBER: 77099991267C BORROWER NAME: JAMES GAMBRELL and BRENDA GAMBRELL PROPERTY ADDRESS: 115 AVENUE D, HUNTSVILLE, TX 77320 MAILING ADDRESS: / %s" /Afe tiv! 7/5urpe -773„ HOME PHONE: WORK PHONE: CELL PHONE: NEAREST RELATIVE (not living with you) CONTACT NAME AND PHONE NUMBER: 667 -&9�� 9.5 &- V59 -V /e3 TDHCANSPINITIALLNCONTACTINFO Page I of I X Cn (7 (6,2 - PC'Dt