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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. OR W er County properties propert es Contact: Walker County Appraisal District P. O. Box 1798 Huntsville, Texas 77342 -179 Phone: 936- ' -1402 Cp/aj,O U ' ,`✓a` 5, Buyer /-/- 5 zo7,5 Date FOR San Jacinto Cpun Cont San Jaci P. O. Bo Colds Pho ounty Appraisal District 70 ing, T as 77331 936 -65 1450 Date NOTE Loan # 165415 April 5, 2013 Huntsville TX [Date] [City] [State] 2001 Normal Park Dr, Huntsville, TX 77340 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $99,750.00, (this amount is called "Principal "), plus interest, to the order of the Lender. The Lender is First National Bank of Huntsville . I will make all payments under this Note in the form of cash, check, money order or electronic funds transfer. I understand 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. INTEREST RATE AND PAYMENTS (A) Interest Rate Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 5.000 %. If 1 am in default as described later in this Note, interest will accrue at the "Maximum Rate ". "Maximum Rate" means at the particular time in question the maximum rate of interest which, under applicable law, state and federal, may then be charged on this Note. If applicable law ceases to provide for such maximum rate of interest, the Maximum Rate means eighteen percent (18.00 %) per annum. (B) Payments (1) Place of Payments I will make my monthly payments at 1300 I1th Street, Huntsville, TX 77340 or at a different place if required by the Note Holder. (2) Amount and Time of Payments I will make payments as follows: Principal and interest are payable in monthly installments of $535.70 each month beginning May 5, 2013 and continuing regularly in like installments each period on the same day of the month in each period until April 5, 2043 (the "Maturity Date ") when all unpaid principal and interest is due and payable. Each installment will be applied first to payment of accrued interest on the unpaid principal, and the remainder will be applied to reduction of unpaid principal. (C) Accrual Method (1) Actual / 365 Method All payments of interest shall be computed on the per annum basis of a year of 365 days (or 366, as the case may be) and for the actual number of days elapsed. (2) True Daily Earnings Method Interest will be computed according to the true daily earnings method. The true daily earnings method is a method to compute an interest charge by applying a daily rate to the unpaid balance of the amount financed. The earned finance charge is computed by multiplying the daily rate by the number of days the actual principal balance is outstanding. The daily rate is the equivalent contract rate for a year with the number of days indicated in (C)(1) above. 3. PREPAYMENT I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a Prepayment. When 1 make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may Note 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 7614 M05242010] not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due dates of my monthly payment unless the Note Holder agrees in writing to those changes. 4. LOAN CHARGES 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: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 5. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (B) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. (C) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (D) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me 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. (E) Not Sufficient Funds Fees If not prohibited by applicable law, I agree to pay an amount charged by Lender not to exceed $28.00 (or the maximum amount allowed by applicable law if applicable law limits said fee to an amount less than $28.00) for each check, draft, order or other instrument or form of remittance made in payment on this note that is returned to Lender unpaid or dishonored for any reason. (F) Late Charges for Overdue Payments Notwithstanding anything to the contrary set forth in this Note, Mortgage /Deed of Trust or the other loan documents, to the extent not prohibited by Texas and applicable federal law, Borrower hereby agrees to the following: Late Fee. In the event any payment amount, or any part thereof, remains unpaid for more than Ten (10) days past the due date thereof as provided in this Note, Borrower shall pay to Note Holder, in addition to any other amounts to which Note Holder may be entitled hereunder, a reasonable late payment fee equal to Five (5.000 %) of the amount of said payment. This amount is stipulated by Borrower to be reasonable in order to compensate Note Holder for its additional costs incurred as a result of having to attend to such delinquency. This late charge should be paid only once, but promptly, as to each respective late payment. It is further agreed that the imposition of any such late payment fee shall in no way prejudice or limit Note Holder's rights or remedies against Borrower under this Note, Mortgage /Deed of Trust or the other loan documents or any other instrument. 6. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder Note 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 7614 M05242010] under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 2(B) above or at a different address if I am given a notice of that different address. 7. 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 also 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. This means that any one of us may be required to pay all of the amounts owed under this Note. 8. WAIVERS I and any other person who has obligations under this Note waive 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. 9. SECURITY This Note is secured by the Property referenced herein above [Property Address] on the top of the first page of this Note. As further security for this Note, I grant to the Note Holder a lien and contractual right of offset in and to all my money and property now or at any time hereafter coming within the custody or control of the Note Holder, including, without limitation, all certificates of deposit and other accounts, whether such certificates or accounts have [natured or not and whether exercise of such right of offset results in loss of interest or other penalty under the terms of the certificate or account agreement. This Note is further secured by,a Deed of trust of even date herewith, to Lorri Lehman, Trustee, covering the real property described to wit: 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. 10. APPLICABLE LAW This Note is being executed and delivered and is intended to be performed in the State of Texas and shall be construed and enforced in accordance with and governed by the laws of the State of Texas and applicable federal law. All legal proceedings brought to enforce or interpret this Note shall be in the appropriate court located in Walker County, Texas. In the event of a conflict between any provision of this Note and applicable law, the applicable law shall control to the extent of such conflict and the conflicting provisions contained in this Note shall be modified to the extent necessary to comply with applicable law. All other provisions in this Note will remain fully effective and enforceable. 11. SECURED NOTE In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument "), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. 12. DUE ON TRANSFER In addition to the protections given to the Lender under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument "), dated the same date as this Note, protects the Lender from possible losses which might result if Borrower does not keep the promises which Borrower makes in this Note. That Security Instrument Note 3 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 7614 M05242010] describes how and under what conditions Borrower may be required to make immediate payment in full of all amounts Borrower owes under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. 13. NO ORAL AGREEMENTS THIS NOTE CONSTITUTES A "WRITTEN LOAN AGREEMENT" PURSUANT TO SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE, IF SUCH SECTION APPLIES. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. emieley,to A:i&o_ '9543 Signature Date Candelario Rivas Signature Jacq e Rivas Date [Sign Originals Only] Note 4 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 7614 M05242010] Return to: WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS GF# //–/2s -1-3— 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. THE STATE OF TEXAS COUNTY OF Walker } } DEED OF TRUST (SECURITY AGREEMENT, FINANCING STATEMENT) Loan # 165415 KNOW ALL MEN BY THESE PRESENTS: THE UNDERSIGNED, Candelario Rivas and wife, Jacqueline Rivas, whose mailing address is as set forth opposite the signature of each, being the debtor(s) and hereinafter called "Grantors ", (whether one or more), in consideration of TEN AND NO /100 DOLLARS ($10.00), in hand paid, and the debt and trust hereinafter mentioned, have Granted, Sold and Conveyed, and by these presents do Grant, Sell and Convey unto Lorri Lehman Trustee(s), whose mailing address is P 0 Box 659 1300 11th Street, Huntsville, TX 77342 -0659, hereinafter called the "Trustee" (whether one or more), and to his successors in trust, the following described land and other property situated in the County of Walker, State of Texas, to -wit: 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 an address of: 2001 Normal Park Dr Huntsville, TX 77340 ( "Property Address "): together with all heating, plumbing, refrigeration, lighting fixtures, equipment, appliances and /or other personal property used in connection therewith whether or not now or hereafter attached thereto so as to become fixtures, and all accessions and additions thereto, and all buildings and improvements thereon and hereafter placed thereon: appurtenances, servitudes, rights, ways, privileges, prescriptions and advantages thereunto belonging or in any wise appertaining, hereinafter called the "Mortgaged Premises ". To the extent permitted by law, this Deed of Trust shall be construed to be a security agreement and financing statement. TO HAVE AND TO HOLD the Mortgaged Premises unto the Trustee forever, Grantors hereby bind themselves to warrant and forever defend the title to the Mortgaged Premises, or any part thereof, unto the Trustee against all Deed of Trust (Security Agreement, Financing Statement) 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] persons whomsoever claiming or to claim the same or any part thereof. 1. THIS CONVEYANCE, however, is made in trust to secure and enforce the payment of the following described indebtedness, obligations and liabilities: (a) A promissory note (the "Note ") of even date herewith in the principal sum of Ninety Nine Thousand Seven Hundred Fifty and 00 /100 Dollars ($99,750.00) executed by Grantors and payable to the order of First National Bank of Huntsville whose mailing address is P 0 Box 659, Huntsville, TX 77342 -0659 (hereinafter called "Beneficiary" or "Bank "), bearing interest as therein provided; (b) All promissory notes evidencing additional loans which Beneficiary may hereinafter make to Grantors (although it is understood that beneficiary is under no obligation to do so); (c) All other indebtedness and liabilities of all kinds of Grantors to Beneficiary now existing or hereafter arising (including overdrafts in bank accounts), whether fixed or contingent, joint and /or several, direct or indirect, primary or secondary and regardless of how created or evidenced, or whether they may, prior to acquisition by Beneficiary, be or have been payable to, or be or have been in favor of some other person, or have been acquired by Beneficiary in a transaction with one other than Grantors; (d) All sums advanced or costs or expenses incurred by Beneficiary which are made or incurred pursuant to or allowed by, the terms of this instrument, plus interest thereon at the maximum rate allowed by applicable law from the date paid until reimbursed; and (e) All renewals and extensions of the above, whether or not Grantors execute any renewal or extension agreement. All of the described indebtedness being hereinafter sometimes referred to collectively as the "debt" or "indebtedness ". 2. As additional security for the payment of said debt, Grantors hereby transfer and assign unto the Beneficiary: (a) All judgments, awards of damages and settlements hereinafter made resulting from condemnation proceedings or the taking of all or any part of the Mortgaged Premises under the power of eminent domain, or for any damage (whether caused by such taking or otherwise) to the Mortgaged Premises or any part thereof, or to any rights appurtenant thereto, including any award for change of grade of streets. The Beneficiary is hereby authorized, but shall not be required, on behalf and in the name of Grantors, to execute and deliver acquittances for, and to appeal from, any such judgments or awards. The Beneficiary may apply all such sums or any part thereof so received, after the payment of all expenses, including costs and attorney's fees, on the debt in such manner as the Beneficiary elects; (b) All bonuses, rents and royalties accrued or to accrue under all oil, gas or mineral leases, now existing or which may hereafter come into existence. Grantors direct payment of the same to the Beneficiary, at the option of the Beneficiary and upon written demand of the Beneficiary therefor, to be applied to the debt until paid, whether due or not, and either before or after any default under the terms of this Deed of Trust or Note; and (c) All of the rents, royalties, issues, profits, revenue, income and other benefits derived from the Mortgaged Premises (whether now existing or hereafter arising) 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 absolutely and unconditionally assigned, transferred, conveyed and set over to Beneficiary to be applied by Beneficiary in payment of the principal and interest and all other sums payable on the Note and any other indebtedness secured hereby. It is intended that this assignment is absolute, unconditional and presently effective and that it shall Deed of Trust (Security Agreement, Financing Statement) 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] never be necessary for Beneficiary to institute legal proceedings of any kind whatsoever to enforce the provisions of this Section 2 (c). Prior to the occurrence of any default hereunder, Grantor shall collect and receive all Rents and Profits as Trustee for the benefit of Beneficiary and Grantor, 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 default hereunder has occurred, the balance shall be distributed to the account of the Grantor. Grantor will not (i) execute an assignment of any of its right, title or interest in the Rents or Profits, or (ii) except where the lessee is in default thereunder, terminate or consent to the cancellation or surrender of any lease of the Mortgaged Premises 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 lessee whose lease was canceled, on substantially the same terms as the terminated or canceled lease, or (iii) modify any lease of the Mortgaged Premises or any part thereof so as to shorten the unexpired term thereof or so as to decrease the amount of 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 Premises or the security of this Deed of Trust. Grantor will not execute any lease of all or any substantial portion of the Mortgaged Premises except for actual occupancy by the lessee thereunder, and will at all times promptly and faithfully perform, or cause to be performed, each covenant, condition and agreement contained in each lease of the Mortgaged Premises now or hereafter existing, on the part of lessor thereunder to be kept and performed. Grantor shall furnish to Beneficiary, within ten (10) days after a request by Beneficiary to do so, a written statement containing the names of all lessees of the Mortgaged Premises, the terms of their respective leases, the spaces occupied, and the rentals payable thereunder. Beneficiary shall have no liability or obligation with respect to any lease of the Mortgaged Premises or any part thereof. (d) All of Grantors interest in, to, and under any and all leases, tenant contracts, construction contracts and other contracts, licenses and permits, whether written or oral, now or hereafter affecting all or any part of the Property, and any agreement for the use or occupancy of all or any part of said Property which may have been made heretofore or which may be made hereafter, including any and all extensions, renewals, and modifications of the foregoing and guaranties of the performance or obligations of any tenants thereunder, and all other arrangements of any sort resulting in the payment of money to Grantor or in Grantor becoming entitled to the payment of money for the use of the Property or any part thereof, whether such user or occupier is tenant, invitee, or licensee (all of the foregoing hereafter referred to collectively as the "Leases" and individually as a "Lease ", and said tenants, invitees, and licensees are hereafter referred to collectively as "Tenants" and individually as "Tenant" as the context requires), which Leases cover all or any portion of the Property. Grantor agrees to execute and deliver to Beneficiary such additional instruments, in form and substance satisfactory to Beneficiary, as may hereafter be requested by Beneficiary further to evidence and confirm said assignment; provided, however, that acceptance of any such assignment shall not be construed as a consent by Beneficiary to any Lease, or to impose upon Beneficiary any obligation with respect thereto; and provided, further, that permission is hereby given to Grantor unless and until Grantor is in default as provided herein, to collect the income, rents, issues and profits relating to the Property as they become due and payable but not in advance, except as provided herein below. 3. The proceeds of the Note to the extent that the same are utilized to take up any outstanding liens Deed of Trust (Security Agreement, Financing Statement) 3 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] against the Mortgaged Premises, or any portion thereof, have been advanced by the Beneficiary at Grantors' request and upon Grantors' representation that such amounts are due and are secured by valid liens against the Mortgaged Premises. The 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, however remote, regardless of whether said liens or debts are acquired by the Beneficiary by assignment or are released by the holder thereof upon payment. 4. Grantors further covenant and agree: (a) That Grantors will pay the principal of and interest on the Note in accordance with the terms thereof. That Grantors are seized of the Mortgaged Premises and are entitled to convey the same; that Grantors will make such further assurance of title as may be necessary to fully confirm to the Trustee the title to the Mortgage Premises; Grantors shall punctually and properly perform all of Grantors' 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; (b) That all awnings, door and window screens, storm window screens, storm windows and doors, mantels, cabinets, rugs, carpeting, linoleum, wall and in -a -door beds, stoves, shades, blinds, oil and other fuel - burning systems and equipment, water heaters, radiator covers, and all plumbing, heating, lighting, cooking, ventilating, cooling, air - conditioning and refrigerating apparatus and equipment, and such goods and chattels and personal property as are ever furnished by landlords in letting or operating an unfurnished building, or which are or shall be attached to said building by nails, screws, bolts, pipe connections, masonry or in other manner, and all additions thereto and replacements thereof, and such built -in equipment as shown by plans and specifications, are and shall be deemed to be fixtures and accessions to the Mortgaged Premises, being hereby agreed to be immovables and a part of the realty as between the parties hereto, and shall be deemed to be a part and portion of the Mortgaged Premises; (c) That Grantors will pay (prior to delinquency) all taxes and assessments levied or assessed upon the Mortgage Premises, or the interest created therein by this Deed of Trust, and exhibit the receipts therefor to the Beneficiary (unless such payments are made by the Beneficiary, as hereinafter provided), and will defend the title and possession of the Mortgaged Premises to the end that this Deed of Trust shall be and remain a first lien on the Mortgaged Premises until the debt is paid. That Grantors will pay all attorney's fees and expenses which may be incurred by the Beneficiary in enforcing the terms of the Note and this Deed of Trust or in any suit which the Beneficiary may become a party where this Deed of Trust or the Mortgaged Premises is in any manner involved, and all expenses incurred in presenting a claim against the estate of a decedent or a bankrupt. The word "assessments" as used in this Deed of Trust, whether in this paragraph or elsewhere, shall include not only assessments by political subdivisions, but also maintenance charges, regular assessments and special assessments assessed by subdivision restrictions, homeowner's declarations for planned unit developments and assessments by condominium agreements, if any; (d) That Grantors will keep all insurable Mortgaged Premises insured for the protection of the Beneficiary against loss by fire, hazards included within the term "extended coverage" and such other hazards as Beneficiary may require in such manner, in such amounts, and in such companies as the Beneficiary may approve at Beneficiaries sole discretion, and keep the policies therefor, properly endorsed, on deposit with the Beneficiary with standard mortgagees' clauses. If renewal policies are not delivered to the Beneficiary 30 days before the expiration of the Deed of Trust (Security Agreement, Financing Statement) 4 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] (e) (t) (i) existing policy or policies, with evidence of premiums paid, the Beneficiary may, but is not obligated to, obtain the required insurance on behalf of Grantors (or insurance in favor of the Beneficiary alone) and pay the premiums thereon. Grantors assign to Beneficiary all right and interest in all such policies of insurance and authorize the Beneficiary to collect for, adjust or compromise any losses under any insurance policy on the Mortgaged Premises, and loss proceeds (less expense of collection) shall, at the Beneficiary's option, be applied on the debt, whether due or not, or to the restoration of the Mortgaged Premises, or be released to Grantors, but such application or release shall not cure or waive any default. Grantors shall, at their expense, in addition to all other insurance obligations herein required, maintain or cause to be maintained workers' compensation insurance covering all persons employed by Grantors and Grantors shall provide Beneficiary with proof of insurance, notice of cancellation, and other information relating to such insurance coverage, in the same manner as required with respect to other insurance obligations of Grantor described in this Deed of Trust; That, when requested by the Beneficiary, Grantors will pay with and in addition to the payments of principal and interest payable under the terms of the Note, on the same day as the principal and interest installments are due and payable, a sum equal to one - twelfth of the estimated annual ground rents, taxes, hazard insurance premiums and assessments, if any, next due on the Mortgaged Premises. If the amount so paid is not sufficient to pay such ground rents, taxes, hazard insurance premiums and assessments when due, then Grantors will deposit immediately with the Beneficiary an amount sufficient to pay such ground rents, taxes, hazard insurance premiums, and assessments. If there is a default under any of the provisions of this Deed of Trust resulting in a sale of the Mortgaged Premises or foreclosure, or if the Beneficiary acquires the Mortgaged Premises otherwise after default, the Beneficiary shall apply, at the time of commencement of such proceedings or at the time the property is otherwise acquired, the balance then remaining of the funds accumulated under this provision as a credit against the amount then remaining unpaid under the Note. No interest shall accrue or be allowed on any payments made under the provisions of this paragraph. If the amount so paid is in excess of the amount needed to pay such ground rents, taxes, hazard insurance premiums and assessments in any calendar year, such excess shall be applied to the next maturing installments of principal and interest. All deposits made pursuant to this paragraph shall be held by the Beneficiary as additional security for the payment of the debt described herein and shall not be assigned, attached or otherwise alienated except when transferred by Grantors to a new owner of the Mortgaged Premises concurrently with a bona fide sale of the Mortgaged Premises; That Grantors will not commit or permit any waste on the Mortgaged Premises and will keep the buildings, fences and all other improvements now or hereafter erected on the Mortgaged Premises in sound condition and in good repair and will neither do nor permit to be done anything to the Mortgaged Premises that may impair the value thereof and the Beneficiary shall have the right of entry upon the Mortgaged Premises at all reasonable times for the purpose of inspecting the same; That Grantors will pay for the cost of any appraisal of the Mortgaged Premises which Beneficiary may require from time to time, such appraisal to be prepared by an appraiser and be in form acceptable to Beneficiary. To comply with all valid governmental laws, ordinances and regulations applicable to the Mortgaged Premises and its ownership, use and operation, and to comply with all, and not violate any easements, restrictions agreements, covenants and conditions with respect to or affecting the Mortgage Premises or any part thereof; To pay promptly all bills for labor and materials incurred in connection with the Mortgaged Premises and never to permit to be fixed against the Mortgaged Premises or any part thereof, any lien or security interest, even though inferior to the liens and security interests hereof, for any Deed of Trust (Security Agreement, Financing Statement) 5 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] such bill which may be legally due and payable, and never to permit to be created or exist in respect of the Mortgaged Premises, or any part thereof, any other or additional lien or security interest on a parity with or superior to the liens and security interests hereof; (j) At any time, and from time to time, upon request by Beneficiary forthwith to execute and deliver to Beneficiary any and all additional instruments and further assurances, and do all other acts and things as may be necessary or proper in Beneficiary's opinion to effect the intent of these presents, more fully evidence and perfect the rights, titles, liens and security interests herein created or intended to be created and protect the rights, remedies, powers and privileges of Beneficiary hereunder; (k) From time to time, upon request of Beneficiary, to furnish promptly to Beneficiary such financial statements and reports relating to Grantors and Grantors' business affairs as Beneficiary may reasonably request; (1) If Grantors are a corporation, to maintain continuously Grantors' corporate existence, good standing and its right to do business in Texas and in each other state where any part of Mortgaged Premises is situated; (m) Upon request of Beneficiary, to deliver to Beneficiary, within sixty (60) days after the end of each calendar year, then current annual statements itemizing the income and expenses of the Mortgaged Premises, all in such detail as shall be satisfactory to Beneficiary; (n) At any time that 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 debt, or any part thereof, immediately to pay all such taxes; provided, that, in the alternative, Grantors 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 debt in full within sixty (60) days after demand therefor by Beneficiary; (o) To furnish promptly at any time and from time to time, upon request, a written statement or affidavit in such form as shall be satisfactory to Beneficiary, stating the unpaid balance of the debt and that there are no offsets or defenses against full payment of the debt and the terms hereof, or, if there are any such offsets and defenses, specifying them; (p) To perform punctually and properly all of Grantors' covenants, duties and liabilities under any other security agreement, mortgage, deed of trust, collateral pledge agreement, loan agreement, contract or assignment of any kind now or hereafter existing as security for or in connection with payment of the debt, or any part thereof (each such being herein called "other security instrument "); (q) To allow Beneficiary to inspect the Mortgaged Premises and all records relating thereto or to the debt, and to make and take away copies of such records; and (r) Without the prior written consent of Beneficiary (which may be withheld with or without cause), not to cause or permit all or any portion of the Mortgaged Premises which is fixtures or personal property to be removed from the county or state where the real property is located. 5. If any of the indebtedness hereby secured shall become due and payable, the Trustee or the 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 Premises 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 Premises under the order of a court or the sale of the Mortgaged Premises 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. The Grantors agree, to the full extent that they or it lawfully may, that in case one or more of the defaults 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 Deed of Trust (Security Agreement, Financing Statement) 6 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] possession of all or any part of the Mortgaged Premises in the possession of Grantors, their or its successors or assigns, or its or their agents or servants and may exclude the Grantors, its or their successors or assigns and all persons claiming under the Grantors, and its or their agents or servants, wholly or partly therefrom; and holding the same, the Beneficiary may use, administer, manage, operate and control the Mortgaged Premises and conduct the business thereof to the same extent as the Grantors, its or their successors or assigns, might at the time do and may exercise all rights and powers of the Grantors, in the name, place and stead of the Grantors, 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 Grantors for any loss or damage thereby sustained unless due solely to the willful misconduct or gross negligence of Beneficiary. 6. In the event the ownership of the Mortgaged Premises, or any part thereof, becomes vested in a person other than Grantors, the Beneficiary may, without notice to Grantors, deal with such successor or successors in interest with reference to this Deed of Trust and to said debt in the same manner as with Grantors without in any way vitiating or discharging Grantors' liability hereunder or upon the debt. No sale of the Mortgage Premises and no forbearance on the part of the Beneficiary and no extension of the time for the payment of the debt hereby secured, given by the Beneficiary, shall operate to release, modify, change, or affect the original liability of Grantors, either in whole or in part. 7. The Beneficiary, without notice, may release any part of the Mortgaged Premises, or any person liable for the debt, without in any way affecting the lien hereof upon any part of the Mortgaged Premises not expressly released or the liability of any person not expressly released, and may agree with any party obligated on the debt, or having any interest in the Mortgaged Premises, to extend the time for payment of any part or all of the debt. Such agreement shall not in any way release or impair the lien hereof, but shall extend the lien hereof as against the title of all parties having any interest in the Mortgaged Premises which interest is subject to this Deed of Trust. 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 as otherwise provided herein, on all of the Mortgaged Premises not expressly released until the indebtedness secured hereby is completely paid. 8. Grantors waive the benefit of all laws now existing or that hereafter may be enacted provided for (i) any appraisement before sale of any portion of the Mortgaged Premises, commonly known as Appraisement Laws, and (ii) the benefit of all laws that may be hereafter enacted in any way extending the time for the enforcement of the collection of said debt or creating or extending a period of redemption from any sale made in collecting said debt, commonly known as Stay Laws and Redemption Laws, and Grantors hereby agree and contract that the laws of the State of Texas, save as above excepted, now in force relative to the collection of said debt and the application to the payment thereof, are expressly adopted and made a part hereof. To the extent that Grantors may lawfully do so, Grantors agree that Grantors shall not assert and hereby expressly waive, 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 Premises 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 Premises in preference to every other person and claimant whatever (only reasonable expenses of such sale being first deducted). Grantors expressly waive and relinquish any right or remedy which it or they 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 Deed of Trust (Security Agreement, Financing Statement) 7 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] remedies of sureties. 9. The Beneficiary may, at the Beneficiary's option, without demand or notice and without waiver of any right, pay or discharge any lien or claim upon the Mortgaged Premises or pay any delinquent tax or assessment, and, upon such payment the Beneficiary shall be subrogated respectively to the rights of the holder of such lien or claim or to the rights of the taxing authority; the Beneficiary may advance any unpaid insurance premiums, and whenever Grantors have failed properly to maintain the improvements, the Beneficiary may make repairs necessary for the proper preservation of the security. Grantors agree to pay to the Beneficiary, upon demand, any and all disbursements made under the provisions of the Deed of Trust together with interest thereon at the rate which the principal of the Note shall bear after default from the respective dates of such disbursements, and all such disbursements shall become a part of the debt, payable at the same place specified in the Note, and shall be secured by this Deed of Trust. 10. Acceptance by the Beneficiary of any payment in an amount less than the amount then due on said debt shall be deemed an acceptance on account only, and the failure to pay the entire amount then due shall be and continue to be a default. At any time thereafter, and until the entire amount then due on said debt has been paid, the Beneficiary shall be entitled to exercise all rights conferred upon it in this instrument upon the occurrence of a default. 1 I . Grantors shall be in default hereunder if Grantors shall default in the prompt payment when due of the indebtedness secured hereby, or any part thereof; or shall fail to keep and perform any of the covenants or agreements contained herein or in any other document securing the Note or any other security instrument; or if Beneficiary discovers that any statement, representation, or warranty in the Note, this Deed of Trust or in any writing delivered to Beneficiary in connection with the indebtedness secured hereby is false, misleading or erroneous in any material respect; or if Grantors, or any person liable for the indebtedness secured hereby, or any part thereof, including any guarantor of or any surety for the performance of any obligation hereunder, files a voluntary petition in bankruptcy; makes an assignment for the benefit of any creditor, is adjudicated as bankrupt or insolvent; admits in writing its inability to pay its debts generally as they become due, applies for or consents to the appointment of a receiver, trustee, or liquidator of Grantors or of any such guarantor or surety or of all or a substantial part of its assets; takes advantage of or seeks any relief under any bankruptcy, reorganization, debtor's relief or other insolvency law now or hereafter existing; files an answer admitting the material allegations of, or consenting to, or defaulting in, a petition against Grantors or any such guarantor or surety, in any bankruptcy, reorganization, or other insolvency proceedings; institutes or voluntarily is or becomes a party to any other judicial proceedings intended to effect a discharge of the debts of Grantors 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 right or powers of Beneficiary granted in the Note, this Deed of Trust or in any other instrument evidencing or securing the indebtedness secured hereby; or if an order, judgment or decree shall be entered by any court of competent jurisdiction appointing a receiver, trustee or liquidator of Grantors or of any guarantor or surety or of all or any substantial part of the assets of Grantors or any such guarantor or surety or if Grantors or any guarantor or surety shall fail to pay any money judgment against it at least ten (10) days prior to the date on which the assets of Grantors or any such guarantor or surety may be sold to satisfy such judgment; or if Grantors or any such guarantor or surety shall fail to have discharged within a period of ten (10) days after the commencement thereof any attachments, sequestration, or similar proceedings against any assets of Grantors or of any guarantor or surety; or if the Mortgaged Premises are placed under control or in the custody of any court, or if Grantors abandon any of the Mortgaged Premises. Upon the occurrence of any such default, Beneficiary, at its option, without notice, may pursue any rights and remedies it may have hereunder or at law, or in equity and Beneficiary may, without limitation and without notice of any kind (including notice of intention to accelerate maturity), declare the entire indebtedness secured hereby immediately due and payable, whereupon it shall be so due and payable. Deed of Trust (Security Agreement, Financing Statement) 8 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] 12. If Grantors shall perform faithfully each of the covenants and agreements herein contained, then, and only then, this conveyance shall become null and void and shall be released in due form, at Grantors' expense; otherwise, it shall remain in full force and effect. No release of this conveyance, or of the lien, security interest of assignment created and evidenced hereby, shall be valid unless executed by Beneficiary. 13. If Grantors shall default hereunder, Grantors hereby authorize and empower 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 Premises, at public auction, to the highest bidder, for cash, at the door of the County Courthouse of the county in Texas in which such Mortgaged Premises or any part thereof, is situated, as herein described, between the hours of 10:00 o'clock a.m. and 4:00 o'clock p.m. on the first Tuesday of any month after giving notice of the time, place and terms of said sale, and the property to be sold, as follows: Notice of such proposed sale shall be given by posting written notice thereof at least twenty-one days preceding the date of the sale at the Courthouse door 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 Courthouse door of each county in which the property to be sold is situated. In addition, Beneficiary shall, at least twenty-one 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 Grantors may be addressed to Grantors at Grantors' address as stated herein. 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 the address of Grantors as is shown by the records of Beneficiary. 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. Grantors hereby authorize and empower the Trustee to sell all or any portion of the Mortgaged Premises, together or in lots of 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 Grantors. In no event shall the Trustee be required to exhibit, present or display at any such sale any of the personality 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 for commission and attorney's fees and costs of title evidence; (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 therefor, 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 Premises 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 Premises shall be sold; and if the proceeds of such sale or sales of less than the whole of such Mortgaged Premises 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 Premises just as though no sale or sales had been made; provided, however, that Grantors shall never have any right to require the sale or sales of less than the whole of the Mortgaged Premises but Beneficiary shall have the right, at its sole election, to request the Trustee to sell less than the whole of the Mortgaged Premises. If default is made hereunder, the holder of the indebtedness Decd of Trust (Security Agreement, Financing Statement) 9 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] 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 judicial proceedings or be 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. 14. In case of any sale hereunder, all prerequisites to the sale shall be presumed to have been performed, and in any conveyance given hereunder, all statements of facts, or other recitals therein made as to the nonpayment of money secured, or as to the request to the Trustee to enforce this trust, or as to the proper and due appointment of any substitute trustee, or as to the advertisement of sale, or time, place, and manner of sale, or as to any other preliminary fact or thing, shall be taken in all courts of law or equity as prima facie evidence that the facts so stated or recited are true. 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 Mortgage Premises free from, and despite the terms of, such grant of easement and rental or lease contract. 15. At the option of the Beneficiary, with or without any reason, a successor substitute trustee may be appointed by the Beneficiary without any formality other than a designation in writing of a successor or substitute trustee, who shall thereupon become vested with and succeed to all the powers and duties given to the Trustee herein named, the same as if the successor or substitute trustee had been named original Trustee herein; and such right to appoint a successor substitute trustee shall exist as often and whenever the Beneficiary desires. 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. 16. Neither the exercise of, nor the failure to exercise, any option given under the terms of this Deed of Trust shall be considered as a waiver of the right to exercise the same, or any other option given herein, and the filing of a suit to foreclose this Deed of Trust, either on any matured portion of the debt or for the whole debt, shall never be considered an election so as to preclude foreclosure under the power of sale after a dismissal of the suit; nor shall the filing of the necessary notices for foreclosure, as provided in this Deed of Trust, preclude the prosecution of a later suit thereon. 17. In the event of a trustee's sale hereunder and if at the time of such sale the Grantors occupy the portion of the Mortgaged Premises so sold, or any part thereof, Grantors 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 Premises 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 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. 18. Grantors will not, without the prior written consent of Beneficiary, execute or deliver any pledge, security agreement, mortgage or deed of trust covering all or any portion of the Mortgaged Premises (hereinafter called "Subordinate Mortgage "). 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 Deed of Trust (Security Agreement, Financing Statement) 10 ©PeirsonPatterson, LLP.-Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] any applicable law, Grantors 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: (a) 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; (b) 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 Premises will be named as a party defendant, nor will any action be taken with respect to the Mortgaged Premises which would terminate any occupancy or tenancy of the Mortgaged Premises without the prior written consent of Beneficiary; (c) That the Rents and Profits, 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 Premises; and (d) That if any action or proceedings 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. 19. Nothing herein contained shall be so construed or operate as to require Grantors to pay interest on the Note or Notes, or any other liability or debt now existing or hereafter to exist hereunder at a rate greater than that allowed by Law, and if any provisions herein contained do, or would, presently and prospectively, operate to make this Deed of Trust or any part thereof void, voidable or ineffective, then such provisions only shall be held for naught and as though not herein contained and shall be without effect upon or prejudice to the remaining provisions, which shall nevertheless remain operative. Any of said contracts for interest shall be held subject to reduction to the highest amount allowed under applicable law as now or hereafter construed by courts having jurisdiction. 20. If, while this trust is in force, the title of the Trustee to, or the interest of Beneficiary in, the Mortgaged Premises hereby conveyed or any part thereof, shall be endangered or shall be attached directly, or indirectly, Grantors hereby authorize Beneficiary, at Grantors' 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. 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, or any other indebtedness secured hereby, Grantors shall immediately pay all such taxes; provided that, in the alternative Grantors may, in the event of the enactment of such a law, and must, if it is unlawful for Grantors to pay such taxes, prepay the Note, and any other indebtedness secured hereby, in full with sixty (60) days after demand therefor by Beneficiary. Grantors 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 any other indebtedness secured hereby, and that there are no offsets or defenses against full payment of the Note, and any other indebtedness secured hereby, and performance of the terms hereof, or if there are any such offsets and defenses, specifying them. 21. Unless Grantors have provided a survey of the Mortgaged Premises which shows to the contrary, Grantors represent and warrant that none of the Mortgaged Premises, or any part thereof, is situated within a flood Deed of Trust (Security Agreement, Financing Statement) 11 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] plain, flood prone areas, special flood hazardous areas or the like, as so designated by the applicable Flood Hazard Boundary Map or any such similar map or plat issued or controlled by The Flood Insurance Administration and /or any other federal agency appointed to regulate such matters under the Federal Flood Disaster Protection Act, as amended, and Grantors hereby indemnify and hold Beneficiary harmless, from any claims and /or costs arising against or waived by Beneficiary if the Mortgaged Premises are, in fact, determined to be in such an area. In the event that the foregoing blank is checked, Grantors will keep the Mortgaged Premises insured for the protection of Beneficiary against loss by flood, and the provisions of this Deed of Trust concerning amounts of coverage, payment of premiums, endorsements, payment and application of insurance proceeds, and other matters regarding hazard insurance shall apply with equal force to Grantors' obligation herein to obtain flood insurance. 22. If the lien of this Deed of Trust is invalid or unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of the Mortgaged Premises, the unsecured or partially secured portion of the debt shall be completely paid prior to the payment of the remaining and secured or partially secured portion of the debt, and all payments made on the debt, whether voluntary or under foreclosure or other enforcement action or procedure, shall be considered to have been first paid on and applied to the full payment of that portion of the debt which is not secured or fully secured by the lien of this Deed of Trust. 23. Whenever used the singular number shall include the plural, the plural the singular, the use of any gender shall include all genders. The words "Grantors" and "Beneficiary" shall include their heirs, executors, administrators, successors and assigns and the word "Trustee" shall include his successors and substitute trustees. 24. 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 for which such property is sold credited on the debt then owing. 25. Grantors will pay all reasonable attorney's fees and expenses which may be incurred by the Beneficiary or Trustee, in enforcing the terms of the Note and this Deed of Trust, or in any suit to which the Beneficiary or Trustee may become a party where the Deed of Trust or the Mortgaged Premises are in any manner involved and all expenses incurred in presenting a claim against the estate of a decedent or a bankrupt and will also pay any attorney's fees and expenses reasonably incurred in connection with the assignment to Beneficiary of any leases subsequently entered into by Grantors which by the terms hereof are required to be assigned to Beneficiary as additional collateral to secure payment of the indebtedness herein secured as well as any and all such fees and expenses reasonably incurred prior to full and final payment of such indebtedness relating to future advances, transfer of title to the premises and similar matters not otherwise provided for herein. 26. With respect to any personal property herein described this Deed of Trust shall constitute a Security Agreement between Grantors and Beneficiary, and, cumulative of all other rights of Beneficiary hereunder, Beneficiary shall have all of the rights conferred upon secured partied by the Uniform Commercial Code, as amended, as to this property. This Deed of Trust, as a Financing Statement, covers the following types property: Minerals, crops and goods that are, or are to become, fixtures as more fully described herein, and related to the real estate described herein, and it is intended that as to those goods and the proceeds thereof, this Deed of Trust shall be effective as a Financing Statement filed as a mineral, crop and fixture filing from the date of its filing for record in the Real Estate Records of the County in which the land is located. Information concerning the security interest created by this instrument may be obtained from the holder of this indebtedness and secured party at the Post Office address as shown in Paragraph numbered 1 of this Deed of Trust. Until the lien of this Deed of Trust is released or satisfied of record, Grantors agree, if requested by Beneficiary so to do, to execute one or more Financing Statements covering such personal property, in the manner and form required by law and to the satisfaction of Beneficiary. Grantors agree to pay Beneficiary's charge, to the maximum amount permitted by law, for any statement by Beneficiary regarding the obligations secured by this Deed of Trust, requested by Grantors or on behalf of Grantors. On demand, Grantors will promptly pay all costs and expenses of filing Financing Deed of Trust (Security Agreement, Financing Statement) 12 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] Statements, continuation statements, partial releases and termination statements deemed necessary or appropriate by Beneficiary to establish and maintain the validity and priority of the security interest of Beneficiary or any modification thereof, and all 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 Uniform Commercial Code, as amended, with respect to such personal property, and it is expressly agreed that if upon default Beneficiary should proceed to dispose of the collateral in accordance with the provisions of the Uniform Commercial Code, as amended, ten (10) days notice by Beneficiary to Grantors shall be deemed to be reasonable notice under any provision of the Uniform Commercial Code, as amended, requiring such notice; provided, however, that Beneficiary may at its option dispose of the collateral in accordance with Beneficiary's rights and remedies in respect of the real property pursuant to the provisions of this Deed of Trust, in lieu of proceeding under the Uniform Commercial Code, as amended. 27. It shall be a default hereunder if Grantors should sell (be executory Contract for Deed or otherwise), assign or convey any part or all of the Mortgaged Premises (regardless of whether the buyer or assignee "assumes" the indebtedness hereby secured or takes "subject to" such indebtedness) without first obtaining the written Consent of Beneficiary; provided, however, this paragraph shall not apply to sales of standard inventory items of personal property in the ordinary course of Grantors' business. 28. Expenses; Indemnification. To the extent not prohibited by applicable law, Grantors will pay all costs and expenses and reimburse Bank for any and all expenditures of every character, including, but not limited to, the fees and expenses of counsel for Bank, incurred or expended from time to time, regardless of whether a default or event of default shall have occurred in connection with: (a) Bank's evaluating, monitoring, administering and protecting the Mortgaged Premises; and (b) Bank's creating, perfecting or realizing upon Bank's security interest in and liens on the Mortgaged Premises, and all costs and expenses relating to Bank's exercising any of its rights and remedies under this or any of the other security instruments or at law, including, without limitation, all appraisal fees, consulting fees, filing fees, taxes, brokerage fees and commissions, title review and abstract fees, Uniform Commercial Code search fees, other fees and expenses incident to title searches, reports and security interests, escrow fees, attorneys' fees, legal expenses, court costs, fees and expenses incurred in connection with it; provided, that no right or option granted by Grantors to Bank or otherwise arising pursuant to any provision of this or any other instrument shall be deemed to impose or admit a duty on the Bank to supervise, monitor or control any aspect of the character or condition of the Mortgaged Premises or any operations conducted in connection with it for the benefit of Grantors or any other person or entity other than the Bank. The Grantors agree to indemnify, defend and hold the Bank, its directors, officers and employees (collectively, "Indemnified Parties ") harmless from and against any and all loss, liability, obligation, damage, penalty, judgment, claim, deficiency and expense (including interest, penalties, attorneys' fees and amount paid in settlement), regardless of whether the same was caused in whole or in part by the negligence of any of the Indemnified Parties, to which the Indemnified Parties may become subject arising out of or in connection with this Agreement, the Note, any other security instruments hereto or any transaction contemplated herein to therein (other than those which arise by reason of the gross negligence of the Bank). Any amount to be paid hereunder by the Grantors to the Bank shall be a demand obligation owing by the Grantors to the Bank and shall bear interest from the date of expenditure at the highest lawful rate. 29. Environmental Matters. Without the Bank's prior written consent, Grantors shall not use, store, treat, generate, release, discharge, dispose or transport any Hazardous Materials on, under, in, above, to or from the Mortgaged Premises. For the purposes of this section, "Hazardous Materials" shall refer to any underground storage tank, petroleum, polychlorinated biphenyls or other substances, materials and wastes that are or become regulated as hazardous or toxic substances under any applicable local, state or federal law, regulation or order, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act and the Resource Conservation and Recovery Act, each as amended from time to time (herein collectively called Decd of Trust (Security Agreement, Financing Statement) 13 OPeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] "Environmental Laws "). Grantors shall indemnify, defend and hold Bank harmless from and against; (a) any loss, costs, expense, claim or liability arising out of any investigation, monitoring, clean -up, containment, removal, storage, remedial or restoration work ( "Remedial Work ") required by Bank, or any non - governmental entity or person, or any governmental agency or political subdivision which requires Remedial Work upon a reasonable belief that the Remedial Work is required by the Environmental Laws; and (b) any claims of third parties for loss, injury, expense or damage arising out of the use, presence, treatment, generation, release, discharge, disposal or transportation of any Hazardous Materials on, under, in, above, to or from the Mortgaged Premises. In the event any Remedial Work is so required under applicable Environmental Laws, Grantors shall perform or cause to be performed the Remedial Work in compliance with all Environmental Laws. All Remedial Work shall be performed by one or more contractors under the supervision of a consulting engineer, each contractor and the consulting engineer being selected by Grantors and approved in advance in writing by Bank. Grantors shall promptly provide the Bank with copies of the remedial plan and allow the Bank to attend meetings among Grantors, the consulting engineer, the contractors and any regulatory authority. In the even Grantors shall fail to commence the Remedial Work in a timely fashion or fail to prosecute diligently the Remedial Work to completion, Bank may, but shall not be required to, cause the Remedial Work to be performed, subject fully to the indemnification provisions of this section. It shall not be necessary for the Bank to incur any expense to enforce this indemnification, and the indemnification contained herein shall survive repayment of the Note and release of the lien of this Deed of Trust and shall be fully applicable notwithstanding any negligence on the part of any Indemnified Party. The liabilities and covenants of Grantors hereunder may not be assigned and any such assignment shall be null and void without the Bank's prior written consent. 30. Security Interest. Grantor also grants to the trustee a security interest in all oil, gas, and other minerals that might be produced from the land covered by this deed of trust. This deed of trust (i) is to be filed in the real property records of the county in which the land is located, (ii) covers all "as- extracted collateral," as defined in Texas Business and Commerce Code §9.102, attributable to the land, (iii) serves as a security agreement covering the as- extracted collateral, (iv) serves as an assignment of all payments made for damages or anticipated damages to the land, and (v) serves as a financing statement covering as- extracted collateral and fixtures as provided in Texas Business and Commerce Code §9.502. The provisions of this paragraph are cumulative of all other provisions of this deed of trust. ADDITIONAL PROVISIONS: The note secured hereby is primarily secured by the Vendor's Lien retained in the Deed of even date herewith conveying the property to Grantors, which Vendor's Lien has been assigned to Lender, this Deed of Trust being additional security therefore. ❑ The note secured hereby is in renewal and extension, but not in extinguishment of that certain indebtedness described on Renewal and Extension Exhibit attached hereto. ❑ Acknowledgment of Cash Advanced Against Non - Homestead Property. The Note represents funds advanced to Borrower on this day at Borrower's request and Borrower acknowledges receipt of such funds. Borrower states that Borrower does not now and does not intend ever to reside on, use in any manner, or claim the Property secured by this Security Instrument as a business or residential homestead. Borrower disclaims all homestead rights, interests and exemptions related to the Property. THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. Decd of Trust (Security Agreement, Financing Statement) 14 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. EXECUTED this Fifth day of April, 2013 GRANTOR(S) AND MAILING ADDRESS(ES): edP0/2/1"//0 V215 Signature Candelario Rivas Mailing address: 409 Kay Terrace Huntsville, TX 77340 STATE OF TEXAS COUNTY OF %7,--eig,t—/ Date The foregoing instrume t was acknowledged lario i ivas an cquelin as. Pr' d Nam Not. 'ubli 1 VA/)-- 4/ 3 Signature Jacque ivas Mailing address: 409 Kay Terrace Huntsville, TX 77340 before me this day of t M commission expires: g)-- AFTER RECORDING, RETURN TO: First National Bank of Huntsville P 0 Box 659 1300 11th Street Huntsville, TX 77342 -0659 Lorri Lehman Date [Sign Originals Only] 13 by Deed of Trust (Security Agreement, Financing Statement) 15 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 6506 M01072013] UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME Si PHONE OF CONTACT AT FILER [optional] B. SEND ACKNOWLEDGMENT TO: (Name and Address) First National Bank of Huntsville P O Box 659 1300 11th Street Huntsville, TX 77342 -0659 Attention: Lorri Lehman Return 10: WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS 77340 GF # 00/•?- / /T./ ' THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1. DEBTOR'S EXACT FULL LEGAL NAME- insert only one debtor name (la or 1 b) - do not abbreviate or combine names OR la. ORGANIZATION'S NAME 1 b. INDIVIDUAL'S LAST NAME Rivas FIRST NAME Candelario MIDDLE NAME SUFFIX 1c. MAILING ADDRESS 409 Kay Terrace CITY Huntsville STATE TX POSTAL CODE 77340 COUNTRY US 1d. SEE INSTRUCTIONS ADD'L INFO RE I le. TYPE OF ORGANIZATION ORGANIZATION DEBTOR 1f. JURISDICTION OF ORGANIZATION lg. ORGANIZATIONAL ID #, if any n NONE 2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do not abbreviate or combine names 2a. ORGANIZATION'S NAME OR 2b. INDIVIDUALS LAST NAME Rivas FIRST NAME Jacqueline MIDDLE NAME SUFFIX 2c. MAILING ADDRESS 409 Kay Terrace CITY Huntsville STATE TX POSTAL CODE 77340 COUNTRY US 2d SEE INSTRUCTIONS ADD'L INFO RE 12e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR 2f. JURISDICTION OF ORGANIZATION 2g. ORGANIZATIONAL ID #, if any n NONE 3. S EC U R ED PARTY'S NAME (or NAME of TOTAL ASSIGNEE of ASSIGNOR SIP) - insert only gpg secured party name (3a or 3b) 3a. ORGANIZATION'S NAME First National Bank of Huntsville OR 3b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 3c. MAILING ADDRESS P O Box 659, 1300 11th Street CITY Huntsville STATE TX POSTAL CODE 77340 COUNTRY US 4. This FINANCING STATEMENT covers the following collateral: See UCC Financing Statement Addendum, Rider A to UCC, and Exhibit A Legal Description attached hereto and made a part hereof. 5. ALTERNATIVE DESIGNATION [if applicable):nLESSEE /LESSOR nCONSIGNEE/CONSIGNOR 1 (BAILEE /BAILOR 1 ISELLER /BUYER IAG. LIEN ) INON -UCC FILING 6. n This FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL 7. Check to REQUEST SEARCH REPORT(S) on Debtor(s) ( All Debtors ( ( (Debtor 1 ( (Debtor 2 I 1 ESTATE RFCORDS Attach Addendum fif aoolicablel I fADDITIONAL FEEL footionall 8, OPTIONAL FILER REFERENCE DATA Filing Office: Walker County TX FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02) UCC FINANCING STATEMENT ADDENDUM FOLLOW INSTRUCTIONS (front and back) CAREFULLY 9. NAME OF FIRST DEBTOR (la or lb) ON RELATED FINANCING STATEMENT OR 9a. ORGANIZATION'S NAME 9b. INDIVIDUALS LAST NAME Rivas FIRST NAME Candelario MIDDLE NAME,SUFFIX 10. MISCELLANEOUS: THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 11. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME - insert only ong name (11a or 11b) - do not abbreviate or combine names 11a. ORGANIZATION'S NAME OR 11b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 11c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY US 11d SEEINSTRUCTIONS ADD'L INFO RE 111e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR 1 11f. JURISDICTION OF ORGANIZATION 11g. ORGANIZATIONAL ID #, if any nNONE 12.1 OR ADDITIONAL SECURED PARTY'S sr I ^I ASSIGNOR S /P'S NAME - insert only one name (12a or 12b) 12a. ORGANIZATION'S NAME First National Bank of Huntsville 12b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 12c. MAILING ADDRESS P O Box 659 1300 11th Street CITY Huntsville STATE TX POSTAL CODE 77340 COUNTRY US 13. 14. Lot a Walker recorded County, 15. This FINANCING STATEMENT covers , timber to be cut or . as- extracted 16. Additional collateral description: See Rider A to UCC attached hereto and made a part hereof. collateral, or is filed as a . fixture filing. Description of real estate: Nine (9), Block Twenty -Four (24) of Highland Addition No. 3, subdivision within the City of Huntsville, P. Gray League, A -24, County, Texas according to the map or plat thereof in Volume 1 Page 6 of the Plat Records, Walker Texas. Name and address of a RECORD OWNER of above - described real estate (if Debtor does not have a record interest): 17. Check only if applicable and check only one box. Debtor is a n Trust or n Trustee acting with respect to property held in trust or n Decedents Estate 18. Check only if applicable and check only one box. — effective 30 years — effective 30 years 1 Debtor is a TRANSMITTING UTILITY . Filed in connection with a Manufactured -Home Transaction 1 Filed in connection with a Public- Finance Transaction FILING OFFICE COPY — UCC FINANCING STATEMENT ADDENDUM (FORM UCC1Ad) (REV. 05/22/02) RIDER A TO UCC Debtor: Candelario Rivas and Jacqueline Rivas Secured Party: First National Bank of Huntsville In addition to the Property described in the Security Instrument, the following items now or hereafter attached to the Property to the extent they are fixtures are added to the Property description, and shall also constitute the Property covered by the Security Instrument: building materials, appliances and goods of every nature whatsoever now or hereafter located in, on, or used, or intended to be used in connection with the Property, including, but not limited to, those for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light, fire prevention and extinguishing apparatus, security and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached mirrors, cabinets, paneling, attached floor coverings, irrigation pipes and pumps, livestock fencing and pens and specifically: N/A all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security Instrument. All of the foregoing together with the Property described in the Security Instrument (or the leasehold estate if the Security Instrument is on a leasehold) are referred to herein as the "Property." RIDER A TO UCC 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 9696 M09172010] Exhibit "A" Legal Description For 2001 Normal Park Dr Huntsville, Texas 77340 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. RIDER A TO UCC 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 9696 M09172010] UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT AT FILER [optional] B. SEND ACKNOWLEDGMENT TO: (Name and Address) First National Bank of Huntsville P 0 Box 659 1300 11th Street Huntsville, TX 77342 -0659 Attention: Lorri Lehman L THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1. DEBTOR'S EXACT FULL LEGAL NAME - insertonlyon debtor name (1a or 1b) - do notabbreviate or combine names OR 1 a. ORGANIZATION'S NAME 1 b. INDIVIDUAL'S LAST NAME Rivas FIRST NAME Candelario MIDDLE NAME SUFFIX 1c. MAILING ADDRESS 409 Kay Terrace CITY Huntsville STATE TX POSTAL CODE 77340 COUNTRY US 1d. SEE INSTRUCTIONS ADD'L INFO RE 1 e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR 1f. JURISDICTION OF ORGANIZATION 1 g. ORGANIZATIONAL ID #, if any NONE 2. ADDITIONAL DEBTORS EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do not abbreviate or combine names OR 2a. ORGANIZATION'S NAME 2h. INDIVIDUALS LAST NAME Rivas FIRST NAME Jacqueline MIDDLE NAME SUFFIX 2c. MAILING ADDRESS 409 Kay Terrace CITY Huntsville STATE TX POSTAL CODE 77340 COUNTRY US 2d. SEE INSTRUCTIONS ADD'L INFO RE 2e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR 2f. JURISDICTION OF ORGANIZATION 2g. ORGANIZATIONAL ID #, if any nNONE 3. SECURED PARTY'S NAME (or NAME of TOTAL ASSIGNEE of ASSIGNOR S /P) - insert only ppg secured party name (3a or 3b) 3a. ORGANIZATION'S NAME First National Bank of Huntsville OR 3b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 3c. MAILING ADDRESS P 0 Box 659, 1300 11th Street CITY Huntsville STATE TX POSTAL CODE 77340 COUNTRY US 4. This FINANCING STATEMENT covers the following collateral: See UCC Financing Statement Addendum, Rider A to UCC, and Exhibit A Legal Description attached hereto and made a part hereof. 5. ALTERNATIVE DESIGNATION [if applicable]:fLESSEE/LESSOR nCONSIGNEE /CONSIGNOR nBAILEE /BAILOR 1 ISELLER /BUYER IAG. LIEN 1 INON -UCC FILING 6. T 1 This FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL 17. Check to REQUEST SEARCH REPORT(S) on Debtor(s) I All Debtors Debtor 1 I_IDebtor 2 It �I ESTATE RFCORDS Attach Addendum [if applicable) fADDITIONAI FFFI (optional) 8. OPTIONAL FILER REFERENCE DATA Filing Office: Walker County TX FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02) UCC FINANCING STATEMENT ADDENDUM FOLLOW INSTRUCTIONS (front and back) CAREFULLY 9. NAME OF FIRST DEBTOR (la or 1b) ON RELATED FINANCING STATEMENT OR 9a. ORGANIZATION'S NAME 9b. INDIVIDUALS LAST NAME Rivas FIRST NAME Candelario MIDDLE NAME,SUFFIX 10. MISCELLANEOUS: THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 11. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME - insert only me name (11a or 11 b) - do not abbreviate or combine names OR 11a. ORGANIZATIONS NAME 11 b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 11c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY US 11d. SEE INSTRUCTIONS ADD'L INFO RE 111 e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR I 11f. JURISDICTION OF ORGANIZATION 11g. ORGANIZATIONAL ID #, if any nNONE 12. OR 7 ADDITIONAL SECURED PARTY'S gr [1ASSIGNOR S /P'S NAME - insert only one name (12a or 12b) 12a. ORGANIZATIONS NAME First National Bank of Huntsville 12b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 12c. MAILING ADDRESS P O Box 659 1300 11th Street CITY Huntsville STATE TX POSTAL CODE 77340 COUNTRY US 13. 14. Lot a subdivision Walker recorded County, 15. This FINANCING STATEMENT covers . timber to be cut or as- extracted 16. Additional collateral description: See Rider A to UCC attached hereto and made a part hereof. collateral, or is filed as a , fixture filing. Description of real estate: Nine (9), Block Twenty -Four (24) of Highland Addition No. 3, within the City of Huntsville, P. Gray League, A -24, County, Texas according to the map or plat thereof in Volume 1 Page 6 of the Plat Records, Walker Texas. Name and address of a RECORD OWNER of above- described real estate (if Debtor does not have a record interest): 17. Check only if applicable and check only one box. Debtor is a n Trust or n Trustee acting with respect to property held in trust or n Decedent's Estate 18. Check Qnly if applicable and check only one box. — effective 30 years — effective 30 years II Debtor is a TRANSMITTING UTILITY . Filed in connection with a Manufactured -Home Transaction . Filed in connection with a Public- Finance Transaction FILING OFFICE COPY — UCC FINANCING STATEMENT ADDENDUM (FORM UCC1Ad) (REV. 05/22/02) RIDER A TO UCC Debtor: Candelario Rivas and Jacqueline Rivas Secured Party: First National Bank of Huntsville In addition to the Property described in the Security Instrument, the following items now or hereafter attached to the Property to the extent they are fixtures are added to the Property description, and shall also constitute the Property covered by the Security Instrument: building materials, appliances and goods of every nature whatsoever now or hereafter located in, on, or used, or intended to be used in connection with the Property, including, but not limited to those for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light, fire prevention and extinguishing apparatus, security and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached mirrors, cabinets, paneling, attached floor coverings, irrigation pipes and pumps, livestock fencing and pens and specifically: N/A all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security Instrument. All of the foregoing together with the Property described in the Security Instrument (or the leasehold estate if the Security Instrument is on a leasehold) are referred to herein as the "Property." RIDER A TO UCC I ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 9696 M09172010] Exhibit "A" Legal Description For 2001 Normal Park Dr Huntsville, Texas 77340 Lot Nine (9), Blocic 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. RIDER A TO UCC 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 9696 M09172010] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, TX 77340 Attorney Representation Notice Loan # 165415 This Attorney Representation Notice ( "Notice ") is entered into between PeirsonPatterson, LLP ( "We ", "our" or "us ") and Candelario Rivas and Jacqueline Rivas ( "you" or "your" whether one or more), herein referred to as "Borrower ". LOAN DOCUMENTATION. PeirsonPatterson, LLP (We ", "us" or "our ") has prepared the legal instruments involved in this loan using information supplied by the Lender and other third parties. We have acted only on behalf of the Lender. We and the Lender have not assisted or rendered legal advice to Borrower with respect to the loan or the Property securing it or the documents executed in connection with it. If Borrower has any questions about the meaning of any document or Borrower's legal rights, Borrower should retain personal legal counsel for advice in this transaction. DESCRIPTION OF LEGAL SERVICES PERFORMED. We may have prepared all or part of the following legal instruments affecting title to the Property: Deed (if a purchase transaction), Note, Security Instrument and Assignment of Lien (if requested). DISCLAIMER OF REPRESENTATION OR WARRANTY. We have not conducted a title search on the Property, and make no representation or warranty about condition of the title, access to the Property or any other matters that might be revealed from Borrower's examination of a survey, title information, or the Property itself. Borrower is cautioned to make sure the Deed delivered to Borrower conveys what Borrower has contracted to purchase. DATA SUPPLIED BY LENDER. The disclosure calculations and fee data have been supplied by the Lender. We make no representations regarding the value of the Property, conformance with any limitations on fees, waiting periods or any other matters outside our control. RESPONSIBILITY FOR PAYMENT OF FEES. As part of Borrower's obligation to pay the expenses of the Lender in connection with the preparation of the legal documentation, Borrower agrees to pay directly to us at loan closing, the amount indicated on the Attorney Invoice, unless Lender has noted otherwise in their closing instructions. BASIS FOR FEE. The document preparation fee charged by us is based on a per transaction charge rather than an hourly fee. This fee is intended to provide fair compensation for our services, taking into consideration the time and labor required, the complexities of the questions involved, and the skill required to perform the services. Other considerations include our expertise in the complexities of the real estate practice, the necessary overhead associated with the rendering of the services and our assumption of risk in the rendering of the services. There has been no charge made for any disclosures or information required by the Real Estate Settlement and Procedures Act, the Truth -in- Lending Act or the Homeowners' Protection Act. Attorney Representation Notice 1 ©PeirsonPatterson, LLP. - Arlington, Texas 2004 -2009 0945010413 [Doc Id 3138 M04182011] NOTICE TO BORROWER AND SELLER REGARDING DEED PREPARATION. We represent Lender and only Lender in this transaction. If we have prepared a draft deed, it has been at the request of Lender. Seller and Borrower are advised to consult their respective legal counsel with any questions before signing the draft deed. We have provided the draft deed as a convenience. IF THE DRAFT DEED WE PREPARED IS USED, SELLER AND BORROWER (OR THEIR ATTORNEYS) SHOULD REVIEW AND AMEND IT, IF NECESSARY, TO MAKE CERTAIN THAT IT IS CONSISTENT WITH THE SALES CONTRACT AND CORRECTLY REFLECTS THE CONDITION OF TITLE FOR THE PROPERTY AND THE OBLIGATIONS OF THE PARTIES TRANSFERRING RIGHTS TO REAL PROPERTY, AND IF APPLICABLE RESERVING CERTAIN RIGHTS, FOR EXAMPLE MINERAL INTEREST, IS AN INHERENTLY COMPLEX MATTER AND CONTEMPLATES THE INVOLVEMENTS OF ATTORNEYS. IF APPLICABLE, THE DEED SHOULD BE AMENDED TO REFLECT ANY MINERAL OR OTHER RESERVATION. BE CERTAIN THAT THE DEED EXPRESSES THE INTENT OF SELLER AND BORROWER. ANOTHER DEED, OR AMENDMENTS TO THE DRAFT DEED, MUST BE REVIEWED AND APPROVED BY US PRIOR TO ITS EXECUTION. To the extent Lender and Seller are the same, we further represent Lender in its capacity as Seller for purposes of Deed preparation only. Seller is signing this agreement only to receive the notices and to assent to the terms contained in this paragraph. Borrower and Seller hereby acknowledge receiving and reading a copy of this Notice and affirm the accuracy of their respective statements contained herein. gnature Candelario Rivas City of Huntsvil Date By: Matt City Manager Sign Jac:. ne Rivas Date [Sign Originals Only] Attorney Representation Notice 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 3138 M04182011] Residential Real Property Affidavit Date: April 5, 2013 Name of Affiant(s): City of Huntsville Description of Property: 2001 Normal Park Dr Huntsville, Texas 77340 County Walker, TX Name of Title Company: Walker County Title Company Before me, the undersigned notary for the State of Texas, personally appeared Affiant(s) who after by me being sworn, stated: 1. We are the owners of the Property. (Or, state other basis for knowledge by Affiant of the Property, such as lease, management, neighbor, etc. Example: Affiant is the manager of the Property for the record title owners.) 2. We are familiar with the Property and the improvements located on the Property. 3. We are closing a transaction requiring title insurance and the proposed insured owner or lender has requested area and boundary coverage in the title insurance policy(cies) to be issued in this transaction. We understand that the Company may make exceptions to the coverage of the title insurance as Company may deem appropriate. We understand that the owner of the property, if the current transaction is a sale, may request a similar amendment to the area and boundary coverage in the Owner Policy of Title Insurance upon payment of the promulgated premium. 4. To the best of our actual knowledge and belief, there have been no: a. construction projects such as new structures, additional buildings, rooms, garages, swimming pools or other permanent improvements or fixtures; b. changes in the location of boundary fences or boundary walls; c. construction projects on immediately adjoining property(ies) which encroach on the Property d. Conveyances, replattings, easement grants and /or easement dedications (such as a utility line) by any party affecting the Property. 5. We understand that Title Company is relying on the truthfulness of the statements made in this affidavit to provide the area and boundary coverage and upon the evidence of the existing real property survey of the Property attached to this Affidavit. This affidavit is not made for the benefit of any other parties and this affidavit does not constitute a warranty or guarantee of the location of improvements. Residential Real Property Affidavit 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0946010413 [Doc Id 8016 M10192010] 6. We understand that we have no liability to Title Company of the Title Insurance Company that will issue the policy(ies) should the information in this Affidavit be incorrect other than information that we personally know to be incorrect and which we do not disclose to the Title Company City of Hunt c-- BT Matt enoit City Manager SUBSCRIBED AND SWORN TO BEFORE ME on the day of , 20 ll by of City of Huntsville, on behalf of said ntity. Notary Public (� Printed Name of Notary: .-----14-i ? y ! - f T �A }�� My Commission Expires: ` /St- 45)(7--- Residential Real Property Affidavit 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0946010413 [Doc Id 8016 M10192010] TRUTH -IN- LENDING DISCLOSURE STATEMENT (THIS IS NEITHER A CONTRACT NOR A COMMITMENT TO LEND) Version: 01/30/2011 Branch NMLS #: 483909 Loan Officer: Lorri Lehman Loan Officer NMLS #: 491167 CREDITOR: First National Bank of Huntsville P O Box 659, 1300 11th Street Huntsville, TX 77340 BORROWER(S): Candelario Rivas and Jacqueline Rivas MAILING ADDRESS: 409 Kay Terrace, Huntsville, TX 77340 PROPERTY ADDRESS: 2001 Normal Park Dr, Huntsville, TX 77340 Loan Number: 165415 Closing Date: Type of Loan: 04/05/2013 Cony ANNUAL PERCENTAGE FINANCE CHARGE Amount Financed Total of Payments RATE The cost of your credit as a The dollar amount the credit The amount of credit provided The amount you will have yearly rate will cost you to you on your behalf paid after you have made all payments as scheduled 5.0476% $93,600.03 $99,256.00 $192,856.03 INTEREST RATE AND PAYMENT SUMMARY Interest Rate Principal + Interest Payment $535.70 Est. Taxes + Insurance (Escrow) $244.61 Total Est. Monthly Payment $780.31 There is no guarantee that you will be able to refinance to lower your rate and payments. VARIABLE RATE FEATURE: SECURITY: ASSUMPTION: LATE CHARGE: PREPAYMENT: DEMAND FEATURE: REQUIRED DEPOSIT: FILING / RECORDING FEES: Truth in Lending Disclosure Statement Your loan does not have a variable rate feature. You are giving a security interest in the property located at: 2001 Normal Park Dr, Huntsville, TX 77340 Someone buying the property cannot, unless otherwise provided by federal law, be allowed to assume the remainder of the loan on the original terms If your payment is more than 10 days late, you will be charged a late charge of 5.000% of the overdue payment of principal and interest. If you pay off early, you will not have to pay a penalty. You will not be entitled to a refund of part of the finance charge. N/A N/A $124.00(e) 201303280115 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 7022 M07192012] TRUTH -IN- LENDING DISCLOSURE STATEMENT CONTINUED INSURANCE: The following insurance is required to obtain credit: Property insurance You may obtain the insurance from anyone you want that is acceptable to Lender. See your contract documents for any additional information about nonpayment, default, any required repayment in full before the scheduled date, and prepayment refunds and penalties. (e) means an estimate I/We have received these disclosures Signature Candelario Rivas Truth in Lending Disclosure Statement 513 Date Date /Sign Originals Only/ 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 7022 M07192012] APR & FINANCE CHARGE SUMMARY Lender: First National Bank of Huntsville P 0 Box 659, 1300 11th Street Huntsville, TX 77340 Borrower(s): Candelario Rivas and Jacqueline Rivas Mailing Address: Property Address: 409 Kay Terrace, Huntsville, TX 77340 2001 Normal Park Dr, Huntsville, TX 77340 Closing: 04/05/2013 Funding: 04/05/2013 Loan Amount: $99,750.00 Loan Term: 360 Note Rate: 5.000% Type of Loan: Conventional 1st Payment: 05/5/2013 Loan # 165415 Branch NMLS #: 483909 Loan Officer: Lorri Lehman Loan Officer NMLS #: 491167 Annual Finance Charge Amount Financed Total of Payments Total Sales Price Percentage Rate (1) (2) (3) (4) 5.0476% $93,600.03 $99,256.00 $192,856.03 Fanai:c- Charges: Flood certification Life of Loan Flood Certification Settlement or closing fee Attorney fee for docprep State Guaranty Fee Delivery Fee Total Prepaid Finance Charges Plus Interest for life of loan TOTAL FINANCE CHARGE 2. Calcuiation'of Amo int Fin ance Total Loan Amount Less Prepaid Finance Charges TOTAL AMOUNT FINANCED 3. Caiculatron of Total of Paymients Finance Charge Plus Amount Financed TOTAL OF PAYMENTS 4 .Calculationof Total Sales Price N/A 5. APR. Tolerance Disclosed APR Ending APR Difference Result 9.00 4.00 300.00 150.00 6.00 25.00 494.00 93,106.03 93,600.03 99,750.00 494.00 99,256.00 93,600.03 99,256.00 192,856.03 5.044% 5.048% 0.004% IN TOLERANCE APR & Finance Charge Summary 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 5905 M04262012] AMOUNT FINANCED ITEMIZATION LENDER: First National Bank of Huntsville P 0 Box 659, 130011th Street Huntsville, TX 77340 BORROWERS: Candelario Rivas and Jacqueline Rivas ADDRESS: 409 Kay Terrace Huntsville, TX 77340 PROPERTY ADDRESS: 2001 Normal Park Dr, Huntsville, TX 77340 Date: 04/05/2013 Funding: 04/05/2013 Mortgage Ins: No Loan Amount: $99,750.00 Loan Term: 360 months Note Rate: 5.000% Type of Loan: Cony I' Payment: 05/05/2013 Loan # 165415 SETTLEMENT AGENT MUST COMPLETE APPLICABLE BLANKS INDICATED WITH " *" FOR ALL THIRD PARTY CHARGES PAID BY BORROWER AND SHOWN ON THE SETTLEMENT STATEMENT PRIOR TO BORROWER'S EXECUTION. Itemization of the Amount Financed of $99,256.00 (per Truth in Lending) $ * Amount given to you directly $ * Amount paid on your account Amount(s) paid to others on your behalf (excluding Prepaid Finance Charges): $5.00 Credit report to CSC Credit Servces $669.00 $55.75 $944.30 ($446.04) $870.00 $200.00 $105.00 $10.00 $124.00 Homeowner's insurance premium to Tx Pioneer Farm Mutual Homeowner's insurance Property taxes Aggregate Escrow Adjustment Owner's title insurance to Walker County Title Company Lender's title insurance to Walker County Title Company 2nd Lien MTP + Endorsements to Walker County Title Company Tax Certificate to Walker County Title Company Government recording charges - Mortgage to Walker County Title Company Amount of Prepaid Finance Charges paid to other on your behalf: $9.00 Flood certification to Wolters Kluwer Financial Services $4.00 Life of Loan Flood Certification to Wolters Kluwer Financial Services $300.00 Settlement or closing fee to Walker County Title Company $150.00 Attorney fee for docprep to PeirsonPatterson, LLP $6.00 State Guaranty Fee to Walker County Title Company $25.00 Delivery Fee to Walker County Title Company Itemization of Amount Financed ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 4013 M02022011] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 First Payment Letter and Mailing Address Certification Loan # 165415 Your first payment will be due May 5, 2013. To assure proper credit on your account, please include your loan number as indicated above on all of your loan payment checks. Unless otherwise indicated in your promissory note, each loan payment is due on the 5th day of the month. Each payment should be mailed early enough for it to reach the holder of the note on or before that date. Payments received after that date are DELINQUENT and could affect your credit rating. Unless otherwise indicated in your note, payments received after the end of the 14th day of the month due are subject to late charges. Your Payment is itemized below. The payment may change due to changes in any of the components of the Payment (including a possible interest rate change if the loan contains a variable rate feature). New payment coupons (including any adjusted amounts) will be mailed to you at your last known address. If you do not receive your payment coupons before the date the FIRST PAYMENT IS DUE AND WE DO NOT NOTIFY YOU TO MAIL SAID PAYMENT DIRECTLY TO US, WHICH WE EXPRESSLY RESERVE THE RIGHT TO DO, please mail your check along with the temporary payment coupon enclosed. Your estimated "Payment" amount is $780.31, totaled from these payment elements: Description A Amo�in In order for Lender to provide Borrower(s) with mortgage coupon payment booklets and to correspond with Borrower(s) on matters of importance, Lender requests Borrower(s) to provide the following information: Present Mailing Address: City, State & ZIP Code: Present Telephone Number (include area cede): Anticipated Moving Date: New Mailing Address: 4. 0 City, State & ZIP Code: Wrioa j SV �l New Telephone Number (including area code)(if known): • (.0 - L.Q LD t If Borrowers) desires the mailing address to be different than the address of the Property indicated on the survey, Borrower(s) must provide the correct mailing address above. I /We, the above referenced Borrower(s), certify the above mailing information to be true and correct and further agree to notify the holder or servicer of the note immediately of any change of address by certified mail, return receipt requested, to the address stipulated in the Mortgage /Deed of Trust as being the address where Loan payments are to be mailed. No other knowledge, whether actual or constructive, by the holder of the note or any of its agents or employees, will be sufficient to put the holder of the note on notice of any change of Borrower(s) mailing address and/or telephone number. 1st Payment Letter & Mailing Add Cert /Coupons 0945010413 [Doc Id 7642 M06242010] eh0 lig,5. Signature Candelario Rivas 5�3 Date 11,—A( / Signatur Jacq, a Rivas Date [Sign Originals Only] 1st Payment Letter & Mailing Add Cert/Coupons 2 0945010413 [Doc Id 7642 M06242010] TEMPORARY PAYMENT COUPON 1st Payment Loan # 165415 PAYMENT AMOUNT $780.31 PAYMENT DUE DATE: 05/5/2013 BORROWER'S NAME: Candelario Rivas and Jacqueline Rivas PROPERTY ADDRESS: 2001 Normal Park Dr, Huntsville, Texas 77340 Note to Borrower: These temporary payment coupons should be used if you have not received your mortgage loan coupon booklet prior to the due date of this payment. The payment amount listed is only an estimate, since all the necessary data for your loan has not been compiled. Please cut out the coupon and remit it with your check to: First National Bank of Huntsville P O Box 659 1300 11th Street, P O Box 659 Huntsville, TX 77342 -0659 CUT HERE TEMPORARY PAYMENT COUPON 2nd Payment Loan # 165415 PAYMENT AMOUNT $780.31 PAYMENT DUE DATE: 06/5/2013 BORROWER'S NAME: Candelario Rivas and Jacqueline Rivas PROPERTY ADDRESS: 2001 Normal Park Dr, Huntsville, Texas 77340 Note to Borrower: These temporary payment coupons should be used if you have not received your mortgage loan coupon booklet prior to the due date of this payment. The payment amount listed is only an estimate, since all the necessary data for your loan has not been compiled. Please cut out the coupon and remit it with your check to: First National Bank of Huntsville P O Box 659 1300 11th Street, P O Box 659 Huntsville, TX 77342 -0659 CUT HERE TEMPORARY PAYMENT COUPON 3rd Payment Loan # 165415 PAYMENT AMOUNT $780.31 PAYMENT DUE DATE: 07/5/2013 BORROWER'S NAME: Candelario Rivas and Jacqueline Rivas PROPERTY ADDRESS: 2001 Normal Park Dr, Huntsville, Texas 77340 Note to Borrower: These temporary payment coupons should be used if you have not received your mortgage loan coupon booklet prior to the due date of this payment. The payment amount listed is only an estimate, since all the necessary data for your loan has not been compiled. Please cut out the coupon and remit it with your check to: First National Bank of Huntsville P 0 Box 659 1300 11th Street, P 0 Box 659 Huntsville, TX 77342 -0659 1st Payment Letter & Mailing Add Cert /Coupons 3 0945010413 [Doc Id 7642 M06242010] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 AFFIDAVIT REGARDING GOOD FAITH ESTIMATE 4/71, ' State ofr Loan # 165415 Branch NMLS #: 483909 Loan Officer: Lorri Lehman Loan Officer NMLS #: 491167 Before me, the undersigned authority, a Notary Public in and for the State q on this day personally appeared Candelario Rivas and Jacqueline Rivas and on oath such individual, or each of them, swears that the following statements are true: I. REPRESENTATIONS AND WARRANTIES: I am a borrower named in the Note (the "Note ") or the owner or spouse of an owner of the property described in the Security Instrument (the "Security Instrument" which term includes any riders to the Security Instrument), both bearing date of April 5, 2013, evidencing and securing a loan (the "Loan ") and providing for a lien on the following described property (the "Property") located in 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. [Legal Description] which has the address of: 2001 Normal Park Dr Huntsville, TX 77340 ( "Property Address "). I understand that the lender making the Loan is First National Bank of Huntsville (the "Lender "). I represent and warrant that the Good Faith Estimate ( "GFE ") dated November 27, 2012 is the GFE that Lender provided me in connection to this Loan. If a previous GFE was given by Lender or any agent of Lender to me any variance (if any) from the attached GFE was due to one of the following legally allowed "Changed Circumstances" or other circumstance allowing Lender or their agent to give a revised GFE disclosure: Changed circumstances affecting settlement costs. If changed circumstances result in increased costs for any settlement services such that the charges at settlement would exceed the tolerances for those charges, the loan originator may provide a revised GFE to the borrower. If a revised GFE is to be provided, the loan originator must do so within 3 business days of receiving information sufficient to establish changed circumstances. The revised GFE may increase charges for services listed on the GFE only to the extent that the changed circumstances actually resulted in higher charges. Changed circumstances affecting loan. If changed circumstances result in a change in the borrower's eligibility for the specific loan terms identified in the GFE, the loan originator may provide a revised GFE to the borrower. If a revised GFE is to be provided, the loan originator must do so within 3 business days of receiving information sufficient to establish changed circumstances. Affidavit Regarding Good Faith Estimate 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 4163 M12122011] Borrower - requested changes. If a borrower requests changes to the mortgage loan identified in the GFE that change the settlement charges or the terms of the loan, the loan originator may provide a revised GFE to the borrower. If a revised GFE is to be provided, the loan originator must do so within 3 business days of the borrower's request. Interest rate dependent charges and terms. If the interest rate has not been locked by the borrower, or a locked interest rate has expired, the charge or credit for the interest rate chosen, the adjusted origination charges, per diem interest, and loan terms related to the interest rate may change. If the borrower later locks the interest rate, a new GFE must be provided showing the revised interest rate - dependent charges and terms. All other charges and terms must remain the same as on the original GFE, except as otherwise allowed. New home purchases. In transactions involving new home purchases, where settlement is anticipated to occur more than 60 calendar days from the time a GFE is provided, the loan originator may provide the GFE to the borrower with a clear and conspicuous disclosure stating that at any time up until 60 calendar days prior to closing, the loan originator may issue a revised GFE. If no such separate disclosure is provided, the loan originator cannot issue a revised GFE, except as otherwise allowed. I represent and warrant that I received the attached GFE 1) within 3 business days of my loan application, 2) within 3 business days after Lender received information sufficient to establish "Changed Circumstance ", or 3) within the time period allowed above for one of the other circumstances described above allowing Lender or their agent to give a revised GFE disclosure. II. LENDER INDUCEMENT AND RELIANCE I understand that my execution of this Affidavit is made to induce Lender and its successors and assigns to make or purchase the Loan, and that Lender and its assigns will rely on it as additional consideration for making or purchasing the Loan. I also understand that each of the statements made in the Representations and Warranties Section is material and will be acted upon by the Lender and its assigns, and that if such statement is false or made without knowledge of the truth, the Lender and its assigns will suffer injury. III. STATEMENT UNDER OATH I hereby swear under oath that the representations and warranties referred to and set forth in Section I above are true and correct. I understand that this Affidavit is part of the Loan documentation. b% Signature Candelario Rivas IBEDAND SW, Date N TO BEFORE ME on the ine Xfjvas. Signature Jacqu No :t Publi �II n ^) Pr' ted Nam of Notary: V 001/ / 4/4 1 Y10t/d !a'" My Commission Expires: g-- !]r1--20//C e Rivas day of �`'`lt111fiBff(19 �� •�h rl';['Ir r °i ✓✓ • Date [Sign Originals Only] • _ •••• ;YPIRES .. • ��• by Candelario Affidavit Regarding Good Faith Estimate 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 4163 M12122011] ADVISORY NOTICE ALL STATEMENTS IN THE FOREGOING AFFIDAVIT AND ARE MADE UNDER OATH. IF ANY SUCH STATEMENT IS MADE WITH KNOWLEDGE THAT SUCH STATEMENT IS FALSE, THE PERSON MAKING SUCH FALSE STATEMENT MAY BE SUBJECT TO CIVIL AND CRIMINAL PENALTIES UNDER APPLICABLE LAW. Affidavit Regarding Good Faith Estimate 3 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 4163 M12122011] INITIAL ESCROW ACCOUNT DISCLOSURE STATEMENT Borrower(s) Name and Address Candelario Rivas and Jacqueline Rivas 2001 Normal Park Dr Huntsville, TX 77340 Lender /Servicer Name and Address First National Bank of Huntsville P O Box 659, 1300 11th Street, Huntsville, TX 77340 Phone: (936) 295 -5701 Mortgage Insurance /Case Number Loan # 165415 Your first payment is due May, 5 2013 and will be $780.31, of which $535.70 will be for the amount owed, and $244.61 will go into your escrow account. This is an estimate of activity in your escrow account during the next 12 months based on payments antici p ated to be made from your account. ESCROW ACCT. BALANCE 554.01 MONTH PAYMENTS TO ESCROW ACCT PAYMENTS FROM ESCROW ACCT DESCRIPTION Escrow Computation Year Beginning Balance: May 2013 244.61 0.00 798.62 Jun 2013 244.61 0.00 1,043.23 Jul 2013 244.61 0.00 1,287.84 Aug 2013 244.61 0.00 1,532.45 Sep 2013 244.61 0.00 1,777.06 Oct 2013 244.61 0.00 2,021.67 Nov 2013 244.61 0.00 2,266.28 Dec 2013 244.61 2,266.28 Property taxes 244.61 Jan 2014 244.61 0.00 489.22 Feb 2014 244.61 0.00 733.83 Mar 2014 244.61 0.00 978.44 Apr 2014 244.61 669.00 Homeowner's insurance 554.05 (Please keep this statement for comparison with the actual activity in your account at the end of the escrow accounting computation year.) Cushion selected by servicer: $244.61 By signing below, I /we acknowledge receipt of a copy of this Initial Escrow Account Disclosure Statement. //0 0/5 /3 Signature Date Candelario Rivas Initial Escrow Disclosure Date [Sign Originals Only] 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 5906 M04042011] CALCULATION OF AGGREGATE ESCROW ACCOUNT Borrower(s) Name and Address: Candelario Rivas and Jacqueline Rivas 2001 Normal Park Dr Huntsville, TX 77340 Lender /Servicer Name and Address First National Bank of Huntsville P 0 Box 659, 1300 11th Street, Huntsville, TX 77340 Loan # 165415 Phone: (936) 295 -5701 Mortgage Insurance /Case Number HUD -1 Reserve Account Entries Based on information available to preparer, the following can be used for computing HUD -1 Settlement Statement. HUD ACCOUNT ACCOUNT DESCRIPTION RESERVE MONTHS AMOUNT PER MONTH TOTAL RESERVE 1002 Homeowner's insurance 1 55.75 55.75 1004 Property taxes 5 188.86 944.30 1,287.84 Aggregate reserve adjustment 244.61 0.00 (446.04) 1,532.45 Total escrow required 244.61 0.00 554.01 Initial Escrow Account Disclosures MONTH PAYMENTS TO ESCROW ACCT PAYMENTS FROM ESCROW ACCT DESCRIPTION ESCROW ACCT. BALANCE Escrow Computation Year Beginning Balance: 554.01 May 2013 244.61 0.00 798.62 Jun 2013 244.61 0.00 1,043.23 Jul 2013 244.61 0.00 1,287.84 Aug 2013 244.61 0.00 1,532.45 Sep 2013 244.61 0.00 1,777.06 Oct 2013 244.61 0.00 2,021.67 Nov 2013 244.61 0.00 2,266.28 Dec 2013 244.61 2,266.28 Property taxes 244.61 Jan 2014 244.61 0.00 489.22 Feb 2014 244.61 0.00 733.83 Mar 2014 244.61 0.00 978.44 Apr 2014 244.61 669.00 Homeowner's insurance 554.05 Escrow Cushion For Mtg Insurance For Other Items Cushion Amount 0 Mo. 1 Mo. $244.61 Payments Beginning Amount Owed 05/05/2013 Escrow Payment Total Payment $535.70 $244.61 $0.00 $780.31 Aggregate Escrow Account Entry 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 5907 M04112011] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 TEXAS FRAUD NOTICE Loan # 165415 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 $10,000.00. "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." Texas Property Code Sec. 343.105 eot,-)alaf,(C) Signature Candelario Rivas X75/3 ate Signatu JacgJ e Rivas irwf Date [Sign Originals Only] Texas Fraud Notice 0945010413 [Doc 1d 8127 M01152013] STATE OF TEXAS COUNTY OF The foregoing instrumen was acknowledged before me this ' day of . •lario ivas and acqueline Alliiririi Nei Publ - 7!��� )'SID rt' P t Publ -: 7 A/ ��/L My commission expires. e /(J` 071-' � pNN�TyO����ii pRYPU�;I'��°'i�� • • • • 9it OFT TO -49,,r42014 11 ,0' by Texas Fraud Notice 2 0945010413 [Doc Id 8127 M011520131 Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Flood Insurance Coverage Subject to Possible Change Loan # 165415 If your property is or becomes zoned for required flood insurance and we assign, sell or transfer the servicing of your mortgage loan, your new lender /servicer may require more flood insurance coverage than the minimum amount that has been identified in your Notice of Special Flood Hazards (NSFH). The new lender /servicer may require coverage in an amount greater than the minimum, and has the right to require flood coverage at Least equal to 100% of the insurable value (also known as replacement cost value) of the building(s) used as collateral to secure the loan or the maximum available under the National Flood Insurance Program (NFIP) for the particular type of building. You should review your exposure to flood damage with your insurance provider, as you may wish to increase your coverage above the minimum amount required at the time of closing your loan versus what subsequently the new lender /servicer may require. Acknowledged by Borrower(s) this Fifth day of April, 2013. A. -1rQyS Signature Candelario Rivas =0`3 13 Date Signatures Jacqueline Rivas Date [Sign Originals Only] Flood Insurance Coverage Subject to Possible Change 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2011 0945010413 [Doc Id 2936 M11102011] BORROWER ACKNOWLEDGEMENT OF RECEIPT OF FEDERAL DISCLOSURES FOR MORTGAGE TRANSACTIONS SUBJECT TO RESPA Words used in this Acknowledgment are defined below. Words in the singular mean and include the plural and vice versa. "Borrower" is Candelario Rivas and Jacqueline Rivas. "Lender" is First National Bank of Huntsville , and its successors and assigns. "Property" means the property commonly known as 2001 Normal Park Dr, Huntsville, Texas 77340. Borrower acknowledges receiving the following notices and disclosures at the times indicated: REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) NOTICES If this is a purchase transaction, consumer booklet entitled Buying Your Home - Settlement Costs and Helpful Information (either at the time of application or by mail postmarked within three (3) business days of Lender's receipt of the application). Good Faith Estimate of closing costs (either at the time of application, electronically consistent with the E -Sign Act or by mail postmarked within three (3) business days of Lender's receipt of the application). Servicing Disclosure Statement (either at the time of application if there was a face -to -face interview, electronically consistent with the E -Sign Act or by mail postmarked within three (3) business days of Lender's receipt of the application). Uniform Settlement Statement HUD -1 or HUD -1A (at or before settlement) in which all charges paid or to be paid by Borrower in connection with the settlement were set forth. The statement was provided for Borrower's review at least one (1) business day prior to the settlement date, if requested by Borrower. TRUTH IN LENDING ACT (TILA) NOTICES Initial Truth in Lending Disclosure Statement (either at the time of application, electronically consistent with the E -Sign Act or by mail postmarked within three (3) business days of Lender's receipt of the application and before any charges were imposed upon me /us with the exception of a credit report fee). Final Truth in Lending Statement at least 3 days prior to consummation of the loan if last Truth in Lending was not in tolerance. If this loan is a refinance transaction and subject to Section 226.32 of Regulation Z, Final Disclosure Required by the Federal Truth in Lending Act and the Federal Reserve Regulation Z for Section 226.32 Mortgages (at least three (3) business days [including Saturdays] prior to consummation of the loan). If this is a rescindable transaction, two (2) Notices of Right to Cancel (at consummation of the loan). If the loan is to be secured by Borrower's primary residence and Borrower applied for an adjustable rate feature, Adjustable Rate Mortgage Program Disclosure and consumer booklet entitled Consumer Handbook on Adjustable Rate Mortgages (either at the time of application of before a non - refundable fee was paid, whichever was earlier, or by mail postmarked within three (3) business days of Lender's receipt of the application from an intermediary agent or broker). If this transaction was changed to a variable rate program during the processing period, Adjustable Rate Mortgage Program Disclosure and consumer booklet entitled Consumer Handbook on Adjustable Rate Mortgages (before Borrower Acknowledgement of Receipt of Federal Disclosures (Multistate) 0945010413 [Doc Id 3432 M10292012] consummation of the loan). NATIONAL FLOOD INSURANCE ACT (NFIA) NOTICE If the Property is or will be located in an area designated by the Federal Emergency Management Agency as an area having special flood hazards, Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance (at a reasonable time prior to closing). HOMEOWNERS PROTECTION ACT OF 1998 (HPA) NOTICES If this transaction has private mortgage insurance to be paid by Lender, Lender Paid Private Mortgage Insurance Notice (at or before the time of loan commitment). If this transaction has private mortgage insurance to be paid by Borrower, Private Mortgage Insurance Disclosure (at consummation of the loan). RIGHT TO RECEIVE COPY OF APPRAISAL Lender has provided me /us with a copy of the appraisal report of the Property either upon completion of the appraisal or at least three business days prior to closing, unless otherwise waived three days before closing not applicable to FHA or VA loans.. GRAMM- LEACH - BLILEY ACT (FINANCIAL PRIVACY) Notice Lender provided me /us with a copy of Lender's Financial Privacy Notice detailing Lender's policy on the matter. eZi2jek' fa A ✓ Signature Candelario Rivas -.573 Date Signature Jacqu ne Rivas Date [Sign Originals Only] Borrower Acknowledgement of Receipt of Federal Disclosures (Multistate) 2 0945010413 [Doc Id 3432 M10292012] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Appraisal Receipt Loan # 165415 Branch NMLS #: 483909 Loan Officer: Lorri Lehman Loan Officer NMLS #: 491167 I /We, the undersigned Borrower(s), hereby certify that I /we have received, reviewed and approved a copy of the appraisal dated 10/23/2012 prepared by Frank Roberts. (Blanks to be completed by Borrower(s) if not already completed.) I/We will forever hold Lender harmless from any complaint arising as a result of said appraisal. Signature Date Candelario Rivas rJ Signatur Date Jac s me Rivas [Sign Originals Only] Appraisal Receipt 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 3495 M09142012] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Date: April 5, 2013 Appraisal Report Disclosure Loan # 165415 Branch NMLS #: 483909 Loan Officer: Lorri Lehman Loan Officer NMLS #: 491167 The Equal Credit Opportunity Act (15 USC 1691(e)) and the Fannie Mae and Freddie Mac (FNMA/FHLMC) Appraiser Independence Requirements require that: The lender shall ensure that the borrower is provided a copy of any appraisal report concerning the borrower's subject property promptly upon completion at no additional cost to the borrower, and in any event no less than three business days prior to the closing of the loan. The borrower may waive this three business day requirement. The lender may require the borrower to reimburse the lender for the cost of the appraisal. ❑ By signing this document, Borrower acknowledges receipt of the completed appraisal report at least three business days prior to closing of the loan. ® By signing this document, Borrower acknowledges and agrees that at least three days prior to closing of the loan, Borrower waived the requirement that the completed appraisal report be delivered to Borrower at least three business days prior to the closing of the loan, and consented to delivery of the completed appraisal report at or before closing. ACKNOWLEDGMENT OF RECEIPT I hereby acknowledge receipt of this Appraisal Report Disclosure and further acknowledge that I understand its provisions. Words used in this document mean and include the plural and vice versa. eciza/e4i-iro Signature Candelario Rivas Date Signs Jacqu . ' e Rivas Date [Sign Originals Only] Appraisal Report Disclosure 91159MU 4/11 ©2009, The Compliance Source, Inc. 0945010413 [Doc Id 2057 M01032012] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Borrower's Closing Affidavit Loan # 165415 Before me, the undersigned authority duly authorized to take acknowledgements and administer oaths, personally appeared the above referenced Borrower(s) who, upon being duly sworn depose and says as follows: Words used in this Affidavit are defined below. Words in the singular mean and include the plural and vice versa. "Borrower" is Candelario Rivas and Jacqueline Rivas "Lender" is First National Bank of Huntsville , and its successors or assigns. "Loan" means the debt evidenced by the Note and all sums due under the Security Instrument. "Note" means the promissory note(s) dated April 5, 2013, signed by Borrower in favor of Lender. "Property" means the property commonly known as 2001 Normal Park Dr, Huntsville, Texas 77340. "Security Instrument" means the Deed of Trust /Mortgage /Security Deed /Security Instrument signed by Borrower in favor of Lender, securing payment of the Note. "Settlement Agent" is Walker County Title Company. BEFORE ME, the undersigned authority, on this day, personally appeared Borrower, known to me to be the person whose name is subscribed below and after being duly sworn by me did each on his or her oath state the following: 1. OCCUPANCY STATUS. [Check applicable box.] ® Primary Residence. The Property is /will be Borrower's primary residence. This means at least one (1) Borrower who executes the Note and Security Instrument will take title to and occupy the Property. The Property is now occupied as Borrower's primary residence or will be occupied as Borrower's primary residence no later than sixty (60) days after this date or the date the Property shall first become ready for occupancy as a habitable dwelling. That Borrower shall continue to occupy the Property as that Borrower's primary residence for at least one (1) year after the execution of the Loan documentation unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond that Borrower's control. Furthermore, all bills for utilities, water, and/or sewerage are in that Borrower's name. If applicable, Borrower(s) will not occupy the Property, nor allow any others to occupy the Property, until construction is complete and municipal approvals have been issued, if required, and Lender gives written consent following final inspection. Borrower(s) will not store any item in or on the Property, or allow others, that is not related to the construction of improvements on the Property. Borrower(s) hereby certify that upon completion the Property will be Borrower's principal residence. This means at least one of the Borrowers who executes the Note and Security Instrument has title to and upon completion, shall occupy the Property. Borrower shall continue to occupy the Property as Borrower's principal residence for at least one year after completion of the improvements unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld or unless extenuating circumstances exist which are beyond Borrower's Borrower's Closing Affidavit Closing 06303MU 12/00 Rev. 02/07 ©2007, The Compliance Source, Inc. 0945010413 [Doc Id 5721 M03282012] control. BORROWER(S) ACKNOWLEDGE THAT THIS OCCUPANCY AFFIDAVIT IS GIVEN AS A MATERIAL INDUCEMENT TO CAUSE LENDER TO MAKE A LOAN TO BORROWER(S) AND THAT ANY FALSE STATEMENTS, MISREPRESENTATIONS OR MATERIAL OMISSIONS SHALL CONSTITUTE A BREACH OF THE BORROWER(S) OBLIGATION TO LENDER AND THAT ALL THE PROVISIONS OF THE MORTGAGE /DEED OF TRUST INDENTURE CONCERNING DEFAULT IN THE NOTE WILL THEREUPON BE IN FULL FORCE AND EFFECT. 0 Secondary Residence. The Property is /will be Borrower's secondary residence. A secondary residence is a single - family property that is currently or will be occupied by at least one (1) Borrower in addition to that Borrower's primary residence. The property will not be income - producing. 0 Investment Property. The Property is /will be investment property. The Property will not be occupied or claimed as a primary or secondary residence by any Borrower, and may produce revenue. Each Borrower now owns, resides, uses, and claims another property or properties as a primary residential or homestead. 2. FINANCIAL STATUS. Borrower understands that Lender is granting the Loan based on the representations made in the Loan application given by Borrower to Lender. Borrower hereby certifies that all statements related to the Loan application, including but not limited to, financial, marital, and employment status, have not changed, and to the best of Borrower's knowledge, will not change in the foreseeable future. If the Property is being purchased by Borrower, the funds for down payment and closing costs are being paid from the source stated on the Loan application. There is no secondary financing in this transaction that has not been disclosed to Lender. Borrower certifies that if the Loan application states that other real estate was to be sold, that such transaction has taken place and Borrower no longer has title to that real estate. If the Property is currently owned by Borrower, Borrower certifies that there are no delinquent state, county, city, school, water district, utility district, or other governmental taxes or assessments due or owing against the Property and that no tax suit has been filed by any state, county, municipality, water district, utility district, or other governmental agency for taxes or assessments levied against Borrower which have not been disclosed in writing to Lender. Borrower also certifies that there are no unpaid paving or utility assessments or delinquent owner association dues. There are no suits filed by or pending against Borrower in any federal or state court which have not been disclosed in writing to Lender. 3. PROPERTY ACCEPTANCE. Borrower acknowledges that the Property and all of its improvements, fixtures, appliances, and other parts are in good and satisfactory working order and in the conditions contracted for. If the Property is new construction, Borrower finds that the improvements erected on the Property have been completed substantially in accordance with the plans and specifications. If this is the purchase of an existing dwelling, Borrower has accepted the condition thereof, and all terms of the sales contract (including any required repairs and inspections) have been met. If the Property is or will be initial construction, Borrower will sign an affidavit of completion once Borrower finds the improvements are completed substantially in accordance with the plans and specifications and to Borrower's satisfaction and that the terms of the contract between Borrower and the contractor have been fully carried out. The matters acknowledged in this paragraph are to the best of Borrower's knowledge and belief, and nothing in this Affidavit is to be construed as a waiver of any claims, damages, causes of action, or rights under any warranty, expressed or implied, against any party other than Lender. 4. SURVEY. Borrower's Closing Affidavit 2 Closing 06303MU 12/00 Rev. 02/07 ©2007, The Compliance Source, Inc. 0945010413 [Doc Id 5721 M03282012] If a Survey is required then, Borrower hereby certifies that Borrower has received, reviewed, and approved a copy of the survey which is incorporated herein by reference and has signed or initialed and dated same for identification purposes. Borrower is aware of the indicated encroachments, protrusions, easements, limitations, access, dimensions, and /or other conditions shown on the survey. In consideration of Lender making the Loan to Borrower, Borrower hereby indemnifies and holds Lender harmless from any claims, costs, damages, causes of action, and expenses in any way arising as a result of the Property condition or any matters indicated in the survey. If a current Survey is acceptable then, since the date of the survey provided by Borrower, which survey has been signed or initialed and dated for identification purposes, Borrower certifies and represents that no improvements or structural changes or additions to the Property have been made. Borrower is aware of the indicated encroachments, protrusions, easements, limitations, access, dimensions, and /or other conditions shown on the survey. In consideration of Lender making the Loan to Borrower, Borrower hereby indemnifies and holds Lender harmless from any claims, costs, damages, causes of action, and expenses in any way arising as a result of the Property condition or any matters indicated in the survey. If a Survey is not required then, Borrower understands that a current survey is not required by Lender for this transaction, however, if Borrower desires, Borrower may have a current survey made. Borrower represents to Lender that Borrower understands that a survey would indicate existing encroachments, protrusions, easements, limitations, access, dimensions, or other conditions. Borrower represents to Lender that Borrower has not received from any third party any notice or claim of any limitation of the use and enjoyment of the Property not indicated by the most recently obtained survey. 5. TITLE INSURANCE. If Title Insurance is required by Lender, Borrower certifies that Settlement Agent has provided Borrower with a copy of the Commitment for Title Insurance and that Borrower has reviewed and consents to all of the exceptions to title which would appear in an Owner's Title Policy for the Property. In consideration of Lender making the Loan to Borrower, Borrower hereby indemnifies and holds Lender harmless from any claims, costs, damages, causes of action and expenses in any way arising as a result of the Property condition and performance under any contract of sale between Borrower and any Seller of the property, or any matters indicated as exceptions stated in the Commitment for Title Insurance, and the Owner's and Mortgagee's Title Insurance Policies. 6. HOLD HARMLESS. Borrower has been made aware of the following specific conditions affecting the Property and does hereby indemnify and hold harmless Lender from any claims, costs, damages, causes of action, and expenses in any way arising from the following conditions or other matters: Location of fence(s) all as shown on survey dated July 26, 2010, prepared by Jarrod Antley, RPLS #6071. ACKNOWLEDGMENT OF RECEIPT Borrower acknowledges that this Borrower's Closing Affidavit is given as a material inducement to cause Lender to make the Loan to Borrower. Borrower understands that it is illegal to provide false information in an application for a mortgage loan. Mortgage fraud is punishable by up to 30 years in federal prison or a fine up to $1,000,000 or both under the provisions of title 18, United States Code, Sec. 1001, et seq. The agreements and covenants contained herein shall survive the closing of this Loan transaction. Borrower's Closing Affidavit 3 Closing 06303MU 12/00 Rev. 02/07 ©2007, The Compliance Source, Inc. 0945010413 [Doc Id 5721 M03282012] V QM oi / P' Signature Candelario Rivas Date SUBSCRIBED AND SWORN TO BEFORE ME on the Riva : s cqu line R. '/as. (Th Signature Jacque No Prin My re ame o s otary: ommission Expires: day of vas ,0011111100 `mot .�pfPRYh1/4- r)0.`% Y -,a o o • Nl, S • FOF Tel' • -.P1RES••••• 1-5-g Date [Sign Originals Only] , 20 /3 by Candelario Borrower's Closing Affidavit 4 Closing 06303MU 12/00 Rev. 02/07 ©2007, The Compliance Source, Inc. 0945010413 [Doc Id 5721 M03282012] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Document Correction Agreement Loan # 165415 AGREEMENT TO CORRECT OR PROVIDE ADDITIONAL DOCUMENTATION OR FEES: In consideration of Lender disbursing funds for the closing of the Loan secured by the Property being encumbered, and regardless of the reason for any loss, misplacement, or inaccuracy in any loan documentation, Borrower(s) agrees as follows: That, should a document be lost or misplaced, misstated or inaccurately reflect the true and correct terms and conditions of the Loan, upon the request of the Lender (including persons acting on behalf of the Lender) or Settlement Agent, Borrower(s) will comply with Lender's request to execute, acknowledge, initial and deliver to Lender any documentation Lender deems necessary to replace or correct the lost, misplaced, misstated or inaccurate documents(s). Borrower's completed and accepted final application and any disclosure statements provided by Lender shall be evidence of Borrower's and Lender's intent regarding the agreed terms and conditions of the loan. If a replacement note is executed, the Lender hereby indemnifies the Borrower(s) against any loss associated with a demand on the original executed note. The documents Lender requests Borrower(s) to execute, acknowledge, initial and deliver pursuant to this Paragraph shall hereinafter be referred to as "Replacement Documents." Borrower(s) agrees to deliver the Replacement Documents within ten (10) days after receipt by Borrower(s) of a written request from Lender for such replacement. Borrower(s) also agrees that upon the request of the Lender (including persons acting on behalf of the Lender) or Settlement Agent, Borrower(s) will comply with Lender's reasonable request to supply additional documentation and/or to pay Lender any additional sums previously disclosed to Borrower(s) as a cost or fee associated with the Loan which for whatever reason was not collected at closing. The documents or fees Lender requests Borrower(s) to provide pursuant to this Paragraph shall hereinafter be referred to as "Additional Documents or Fees." REQUEST BY LENDER: Any request by the Lender, (including persons acting on behalf of the Lender) or Settlement Agent for any Additional Documents or Fees shall be prima facie evidence of the necessity for same. A written statement from Lender, (including persons acting on behalf of the Lender) or Settlement Agent, addressed to Borrower(s) at the address indicated in the documentation shall be considered conclusive evidence of the necessity for said Additional Documents or Fees or corrections thereof. FAILURE TO DELIVER REPLACEMENT OF ADDITIONAL DOCUMENTS OR FEES MAY CONSTITUTE DEFAULT: Borrower(s')'s failure or refusal to comply with the terms of the Lender's request may, at Lender's election, constitute a default under the note and/or mortgage /deed of trust and give Lender the option of declaring all sums secured by the loan documents immediately due and payable. BORROWER LIABILITY: If Borrower(s) fails or refuses to execute, acknowledge, initial and deliver the Replacement Documents or provide the Additional Documents or Fees to Lender more than ten (10) days after being requested to do so by Lender, and understanding that Lender is relying on these representations, Borrower(s) agree(s) to be liable for any and all loss or damage which Lender sustains thereby including but not limited to all attorney's fees and costs incurred by Lender. Document Correction Agreement 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 3137 M06242010] This Agreement shall inure to the benefit of Lender's successors and assigns and be binding upon the heirs, devisees, personal representatives, successors and assigns of Borrower(s). eQ% • `1e Signature Candelario Rivas 5l/3 Date Signature Jacque Rivas Date [Sign Originals Only] Document Correction Agreement 2 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 3137 M06242010] Lender: Lender Address: Borrower: Property: First National Bank of Huntsville P 0 Box 659, 1300 11th Street, Huntsville, TX 77340 Candelario Rivas and Jacqueline Rivas 2001 Normal Park Dr, Huntsville, Texas 77340 Fair Credit Reporting Act Notice (Prior to Furnishing Negative Information to Nationwide Consumer Reporting Agency) Loan # 165415 Branch NMLS #: 483909 Loan Officer: Lorri Lehman Loan Officer NMLS #: 491167 Pursuant to the Fair Credit Reporting Act and Regulation V, we are required to provide you with the following information: We may report information about your loan and /or account to credit bureaus. Late payments, missed payments, or other defaults on your loan and /or account may be reflected in your credit report. ACKNOWLEDGMENT I /We have read the above statement and acknowledge receiving a copy by signing and dating below. npa/d,,,,f0 Signature Date Candelario Rivas Signatu Jac. ne Rivas Date [Sign Originals Only] Fair Credit Reporting Act Notice (Prior to Furnishing Negative Information to Nationwide Consumer Credit Agency) (Multistate) 40738MU 07/04 ©2006, The Compliance Source, Inc. 0945010413 [Doc Id 4628 M12122011] MORTGAGE FRAUD IS INVESTIGATED BY THE FBI Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution. Some of the applicable Federal criminal statutes which may be charged in connection with Mortgage Fraud include: 18 U.S.C. § 1001 - Statements or entries generally 18 U.S.C. § 1010 - HUD and Federal Housing Administration Transactions 18 U.S.C. § 1014 - Loan and credit applications generally 18 U.S.C. § 1028 - Fraud and related activity in connection with identification documents 18 U.S.C. § 1341 - Frauds and swindles by Mail 18 U.S.C. § 1342 - Fictitious name or address 18 U.S.C. § 1343 - Fraud by wire 18 U.S.C. § 1344 - Bank Fraud 42 U.S.C. § 408(a) - False Social Security Number Unauthorized use of the FBI seal, name, and initials is subject to prosecution under Sections 701, 709, and 712 of Title 18 of the United States Code. This advisement may not be changed or altered without the specific written consent of the Federal Bureau of Investigation, and is not an endorsement of any product or service. 2nie liar, n Signature Candelario Rivas Date Signature Jacqu e Rivas Date [Sign Originals Only] Mortgage Fraud Warning 0945010413 [Doc Id 1780 M01032013] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Error and Omissions / Compliance Agreement Loan # 165415 The undersigned borrower(s) for and in consideration of the above - referenced Lender this date funding the closing of this loan agrees, if requested by Lender or Closing Agent for Lender, to fully cooperate and adjust for clerical errors, any or all loan closing document if deemed necessary or desirable in the reasonable discretion of Lender to enable Lender to sell, convey, seek guaranty or market said loan to any entity, including but not limited to an investor, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Government National Mortgage Association, Federal Housing Authority, Department of Veterans Affairs or the Federal Agricultural Mortgage Corporation (FAMC). The undersigned borrower(s) do hereby so agree and covenant in order to assure that this loan documentation executed this date will conform and be acceptable in the marketplace in the instance of transfer, sale or conveyance by Lender of its interest in and to said loan documentation. DATED effective this Fifth day of April, 2013. eiPie 114 5 • *5 .13 Date Signature Candelario Rivas STATE OF TEXA COUNTY OF Signatu/ Jacduel'ine Rivas Date [Sign Originals Only] T •regoing instrument was acknowledged before me this ` 0` .1443 -if ' ,�/, �'` , 20 (3 by yi , -ORY Pit tiU N - Publi N Si P i ted Na v1afi �y.� (�1 � %% TireOFY °S — My commission expires: ��Zt7/ i ••• ° FIRES... • ,,, . qiiiiiiiillow Iv s an acquelin Error & Omissions /Compliance Agreement 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 5923 M06242010] Lender: First National Bank of Huntsville Borrower: Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Name Affidavit Loan # 165415 In reference to the above - described loan transaction, I the undersigned, and being named party in the loan documents for said transaction, on oath do swear that I am one and the same person as: Signatur Jacqueline Rivas Date SU:' REED AND SWORN TO BEFORE ME on the day of Printe6�Name otaryri. \0auwire Qy PN,Tyg � Z1 Th : �PAP(g N t�� �Notary ublic My Commission Expires: g- /q e • s _ • ,, 8 RS' 1 11 1 1��1\�� [Sign Originals Only] 0 73-by Jacqueline Name Affidavit - Borrower 2 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0945010413 [Doc Id 3492 M06152010] Lender: First National Bank of Huntsville Borrower: Candelario Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Name Affidavit Loan # 165415 In reference to the above - described loan transaction, I the undersigned, and being named party in the loan documents for said transaction, on oath do swear that I am one and the same person as: 24.,10/6,h)vo Date Signature Candelario Rivas S = _ CRIBED AND SWORN TO BEFORE ME on the 0- ‘"G HMO , ,� Not Pubh ✓ n �'� i :� Q ; Pri j d Na of Notary: �i `)Olf !�N LC�/zN�i �' F 5 My Commission Expires: g —/� >N • �A 11 -. , [Sign Originals Only] 20' by Candelario Name Affidavit - Borrower 1 1 ©PeirsonPatterson, LLP.-Arlington, Texas 2004 -2009 0945010413 [Doc Id 3491 M06152010] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Notice of No Oral Agreements Loan # 165415 Branch NMLS #: 483909 Loan Officer: Lorri Lehman Loan Officer N..MLS #: 491167 THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. Receipt of Notice: The undersigned hereby represents and warrants that I /we have each received and read a copy of this Notice on or before the execution of the "Loan Agreement." "Loan Agreement" means one or more promises, promissory notes, agreements, undertakings, security agreements, deeds of trust or other documents, or commitments, or any combination of those actions or documents, pursuant to which a financial institution loans or delays repayment of or agrees to loan or delay repayment of money, goods, or any other thing of value or to otherwise extend credit or make a financial accommodation. e07hlS7/ia Signature Candelario Rivas Date Signature Jacqueli i' Rivas Date [Sign Originals Only] Notice of No Oral Agreements (Texas) 05502TX 11/97 ©2001, The Compliance Source, Inc. 0945010413 [Doc Id 3139 M12122011] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Quality Control Release Loan # 165415 We, the undersigned applicants, understand that our mortgage application may be selected by the Lender and/or its Assigns or Agent for a Quality Control Review. This review is designed to produce and maintain quality service for our borrowers and to comply with agency and Investor guidelines. The quality control review will involve verification of all of the credit information (including employment history, income, bank accounts, and credit references) as well as the property valuation. We agree to cooperate with the Lender and /or its assigns or its agents to the extent necessary to accomplish this review. It is understood that the information may be verified with third parties such as our employees, depository institutions or a credit reporting agency. We therefore have signed below authorizing the release of employment and/or financial information to assist in the Quality Control review process. (20"-Iie/p,70 veA, Signature Date Signature Candelario Rivas Jacqu e Rivas Date [Sign Originals Only] Quality Control Release 1 ©PeirsonPatterson, LLP.- Arlington, Texas 2004 -2009 0946010413 [Doc Id 3514 M06242010] Lender: First National Bank of Huntsville Borrower: Candelario Rivas and Jacqueline Rivas Property: 2001 Normal Park Dr, Huntsville, Texas 77340 Collateral Protection Insurance Notice (Texas) Loan # 165415 Branch NMLS #: 483909 Loan Officer: Lorri Lehman Loan Officer NMLS #: 491167 Pursuant to Texas law (Tex. Finance Code § 307.052), Lender is required to give the following notice at the time the credit agreement is executed. You have entered into a credit agreement that requires you to maintain Collateral Protection Insurance for the above property. As part of this agreement, you are required to: 1. Keep the collateral insured against damage in the amount the Lender specifies; 2. Purchase the insurance from an insurer that is authorized to do business in this state or an eligible surplus lines insurer; 3. Name Lender as the party to be paid under the policy in the event of a loss; and 4. If required by Lender, deliver to Lender a copy of the policy and proof of the payment of premiums. If you fail to meet any requirement listed above, Lender may obtain Collateral Protection Insurance on your behalf and at your expense. ACKNOWLEDGMENT I /We hereby acknowledge receipt of this Collateral Protection Insurance Notice and further acknowledge that Uwe understand its provisions. eafia/e'hk,'a A., Signature Candelario Rivas -573 Date Signature Jacque [Sign Originals Only] Collateral Protection Insurance Notice (Texas) 06520TX 12/01 Rev. 09/03 ©2003, The Compliance Source, Inc. 0946010413 [Doc Id 7559 M02142012] Texas Neighborhood Stabilization Program (NSP) Homebuyer Assistance Deferred Forgivable Subordinate Lien Note ( "Note ") Date: APRIL 05, 2013 Borrower: CANDELARIA RIVAS and JACQUELINE RIVAS Borrower's Mailing Address: 2001 NORMAL PARK DRIVE HUNTSVILLE, WALKER County, TX 77340 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): 2001 NORMAL PARK DRIVE [Property Address] HUNTSVILLE WALKER TX 77340 [City] [County] [State] [Zip] 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. [Legal Description] hereinafter referred to as "Property." 1. BORROWER'S PROMISE TO PAY Borrower promises to pay U. S. Six Thousand Nine Hundred Sixty -Nine And Fifty- One /100 Dollars 06,969.51") ( "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 Three Hundred Ninety -Three And TDHCANSPNOTEHBA Page 1 of 5 Ninety /100 Dollars ($1,393.90) each year beginning MAY 01, 2014 (the "First Anniversary"), and shall continue annually until MAY 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 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. O. 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 NATIONAL BANK OF HUNTSVILLE( "First Lien Lender "), in the amount of $$99,750.00, 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 TDHCANSPNOTEHBA Page 2 of 5 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 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 TDHCANSPNOTEHBA Page 3 of 5 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. (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 Ninety -Nine Thousand Seven Hundred Fifty And No /100 Dollars ($99,750.00), dated 4/5/2013 and executed by CANDELARIA RIVAS and JACQUELINE RIVAS, payable to the order of FIRST NATIONAL BANK OF HUNTSVILLE. 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. TDHCANSPNOTEHBA Page 4 of 5 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 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. dj7o el/e/4/.0 CANDELARIA RIVAS (Seal) - Borrower (Seal) JA 011 LINE RIVAS - Borrower TDHCANSPNOTEHBA Page 5 of 5 (Seal) - Borrower (Seal) - Borrower • Return to: wALKrn COUNTY' TITLE COMPANY 1109 &JNIVERSITY AVENUE HUNTSVILLE, TEXAS 77340 GF1 pia -�a Texas Neighborhood Stabilization Program (NSP) Subordinate Lien Deed of Trust ( "Deed of Trust ") NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM 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: APRIL 05, 2013 Grantor: CANDELARIA RIVAS AND WIFE, JACQUELINE RIVAS Grantor's Mailing Address: 2001 NORMAL PARK DRIVE, HUNTSVILLE, TX 77340 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: Six Thousand Nine Hundred Sixty -Nine And Fifty- One /100 Dollars ($6,969.51) Maker: CANDELARIA RIVAS and JACQUELINE RIVAS Payee: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas Maturity date: MAY 01, 2018 Terms of Payment: As provided therein 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. TDHCANSPDOTHBA Page I of 9 Prior Liens: Date: 4/5/2013 Grantor: CANDELARIA RIVAS and JACQUELINE RIVAS Trustee: LORRI LEHMAN Amount: $99,750.00 Beneficiary: FIRST NATIONAL BANK OF HUNTSVILLE 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 I. 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 TDHCANSPDOTHBA Page 4 of 9 automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt 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]: 17 Adjustable Rate Rider n Balloon Rider fl 1 -4 Family Rider GRANTOR: n/' Condominium Rider {,, 7 Planned Unit Development Rider C] Biweekly Payment Rider C.. Second Home Rider [.1 Renewal & Extension Addendum Other(s) [specify] C0//40 1/�3 CANDELARIA RIVAS (Seal) - Borrower A, (Seal) JA PI NE ' IVAS - Borrower TDHCANSPDOTHBA Page 8 of 9 (Seal) - Borrower (Seal) - Borrower State of TEXAS County of WALKER [Space Below This Line For Acknowledgment] Before me, a Notary Public, on this day personally RIVAS known to me (or proved to me on th oath of identity card or other document] ` -/A--2-L0 the foregoing instrumentodianim wled g ed to me that therein expressed. JQ� P "NTNpf.,/.9 Given under n>ri Ottrt • jpftice this (41) : z m My Commission Expit44;6•,4 101111111 PREPARED BY: BLACK, MANN & GRAHAM, L.L.P. 2905 CORPORATE CIRCLE FLOWER MOUND, TX 75028 (972)- 353 -4174 TDHCANSPDOTHBA appeared CANDELARIA RIVAS and JACQUELINE or through [description of to be the person whose name is subscribed to he executed the same for t purposes and consideration C,, ay of 'i j j? ,A. ignature cer l'i— It( 4 01/4 ) Title of Office AFTER RECORDING RETURN TO: Texas Department of Housing and Community Affairs NSP Program Division P.O. Box 13941 Austin, Texas 78711 -3941 ATTN: SHIRLEY SMITHAM Page 9 of 9 UCC FINANCING STATEMENT AMENDMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT AT FILER [optional] JUDY TIIORNTON 936- 295 -8173 B. SEND ACKNOWLEDGMENT TO: (Name and Address) WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS 77340 GF# 2012111253 L Return to: WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS 77340 GF# THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY la. INITIAL FINANCING STATEMENT FILE# RECORDED 06/20/2011 DOC. NO 11- 0018075851 OFFICE OF SOS 1 b. This FINANCING STATEMENT AMENDMENT is ri to be filed [for record] (or recorded) in the 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, 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 Ei Debtor gr ['Secured Party of record. Check only one of these two boxes. Also check one of the following three boxes 6n,Q provide appropriate information in items 6 and /or 7. ❑CHANGE name and /or address: Please referto the detailed instructions LI LI item DELETE name: Give record name ADD name: Completeite7aor7b , and also item 70; in regards to changing the name /address of a party. to be deleted in item 6a or 6b. also complete items 7e -7q (if applicable). 6. CURRENT RECORD INFORMATION OR 6a. ORGANIZATION'S NAME CITY OF HUNTSVILLE 613. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7. CHANGED (NEW) OR ADDED INFORMATION OR 7a. ORGANIZATION'S NAME TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS 7h. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7c. MAILING ADDRESS P.O. BOX 1.3941 CITY AUSTIN STATE TX POSTAL CODE 78711 -3941 COUNTRY USA 7d SEE INSTRUCTIONS ADD'L INFO RE 17e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR I 7f. JURISDICTION OF ORGANIZATION 7g. ORGANIZATIONAL ID #, if any 111 NONE 8. AMENDMENT (COLLATERAL CHANGE): check only one box. — Describe collateral ® deleted or ❑ added, or give entireLrestated collateral description, or describe collateral Dassigned. 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 TIIE MAP OR PLAT THEREOF RECORDED IN VOLUME 1 PAGE 6 OF THE PLAT RECORDS, WALKER COUNTY, TEXAS. 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 ['1 and enter name of DEBTOR authorizing this Amendment. OR 9a. ORGANIZATION'S NAME TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS 9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 10.OPTIONAL FILER REFERENCE DATA NSP LN #770999991261: CITY OF HUNTSVILLE International Association of Commercial Administrators (IACA) FILING OFFICE COPY — UCC FINANCING STATEMENT AMENDMENT (FORM UCC3) (REV. 05/22/02) Instructions for UCC Financing Statement Amendment (Form UCC3) Please type or laser -print this form. Be sure it is completely legible. Read all Instructions, especially Instruction 1 a; correct file number of initial financing statement is crucial. Follow Instructions completely. Fill in form very carefully; mistakes may have important legal consequences. If you have questions, consult your attorney. Filing office cannot give legal advice. Do not insert anything in the open space in the upper portion of this form; it is reserved for filing office use. An Amendment may relate to only one financing statement. Do not enter more than one file number in item 1a. When properly completed, send Filing Office Copy, with required fee, to filing office. If you want an acknowledgment, complete item B and, if filing in a filing office that returns an acknowledgment copy furnished by filer, you may also send Acknowledgment Copy, otherwise detach. Always detach Debtor and Secured Party Copies. If you need to use attachments, you are encouraged to use either Amendment Addendum (Form UCC3Ad) or Amendment Additional Party (Form UCC3AP). Always complete items 1a and 9 A. To assist filing offices that might wish to communicate with filer, filer may provide information in item A. This item is optional. B. Complete item B if you want an acknowledgment sent to you. If filing in a filing officethat returns an acknowledgment copy furnished by filer, present simultaneously with this form a carbon or other copy of this form for use as an acknowledgment copy. 1a. File number: Enter file number of initial financing statement to which this Amendment relates. Enter only one file number. In some states, the file number is not unique; in those states, also enter in item 1 a, after the file number, the date that the initial financing statement was filed. 1 b. Only if this Amendment is to be filed or recorded in the real estate records, check box 1b and also, in item 13 of Amendment Addendum, enter Debtor's name, in proper format exactly identical to the format of item 1 of financing statement, and name of record owner if Debtor does not have a record interest. Note: Show purpose of this Amendment by checking box 2, 3, 4, 5 (in item 5 you must check two boxes) or 8; also complete items 6, 7 and /or 8 as appropriate. Filer may use this Amendment form to simultaneously accomplish both data changes (items 4, 5, and /or 8) and a Continuation (item 3), although in some states filer may have to pay a separate fee for each purpose. 2. To terminate the effectiveness of the identified financing statement with respect to security interest(s) of authorizing Secured Party, check box 2. See Instruction 9 below. 3. To continue the effectiveness of the identified financing statement with respect to security interest(s) of authorizing Secured Party, check box 3. See Instruction 9 below. 4. To assign (i) all of assignor's interest under the identified financing statement, or (ii) a partial interest in the security interest covered by the identified financing statement, or (iii) assignor's full interest in some (but not all) of the collateral covered by the identified financing statement: Check box in item 4 and enter name of assignee in item 7a if assignee is an organization, or in item 7b, formatted as indicated, if assignee is an individual. Complete 7a or 7b, but not both. Also enter assignee's address in item 7c. Also enter name of assignor in item 9. If partial Assignment affects only some (but not all) of the collateral covered by the identified financing statement, filer may check appropriate box in item 8 and indicate affected collateral in item 8. 5,6,7.To change the name of a party: Check box in item 5 to indicate whether this Amendment amends information relating to a Debtor or a Secured Party; also check box in item 5 to indicate that this is a name change; also enter name of affected party (current record name) in item 6a or 6b as appropriate; and enter new name (7a or 7b). If the new name refers to a Debtor complete (7c); also complete 7e -7g if 7a was completed. 5,6,7.To change the address of a party: Check box in item 5 to indicate whether this Amendment amends information relating to a Debtor or a Secured Party; also check box in item 5 to indicate that this is an address change; also enter name of affected party (current record name) in item 6a or 6b as appropriate; and enter new address (7c) in item 7. 5,6,7.To change the name and address of a party: Check box in item 5 to indicate whether this Amendment amends information relating to a Debtor or a Secured Party; also check box in item 5 to indicate that this is a name /address change; also enter name of affected party (current record name) in items 6a or 6b as appropriate; and enter the new name (7a or 7b). If the new name refers to a Debtor complete item 7c; also complete 7e -7g if 7a was completed. 5,6. To delete a party: Check box in item 5 to indicate whether deleting a Debtor or a Secured Party; also check box in item 5 to indicate that this is a deletion of a party; and also enter name (6a or 6b) of deleted party in item 6. 5,7. To add a party: Check box in item 5 to indicate whether adding a Debtor or Secured Party; also check box in item 5 to indicate that this is an addition of a party and enter the new name (7a or 7b). If the new name refers to a Debtor complete item 7c; also complete 7e -7g if 7a was completed. To include further additional Debtors or Secured Parties, attach Amendment Additional Party (Form UCC3AP), using correct name format. Note: The preferred method for filing against a new Debtor (an individual or organization not previously of record as a Debtor under this file number) is to file a new Financing Statement (UCC1) and not an Amendment (UCC3). 7d. Reserved for Financing Statement Amendments to be filed in North Dakota or South Dakota only. If this Financing Statement Amendment is to be filed in North Dakota or South Dakota, the Debtor's taxpayer identification number (tax ID #) — social security number or employer identification number must be placed in this box. 8. Collateral change. To change the collateral covered by the identified financing statement, describe the change in item 8. This may be accomplished either by describing the collateral to be added or deleted, or by setting forth in full the collateral description as it is to be effective after the filing of this Amendment, indicating clearly the method chosen (check the appropriate box). lithe space in item 8 is insufficient, use item 13 of Amendment Addendum (Form UCC3Ad). A partial release of collateral is a deletion. If, due to a full release of all collateral, filer no longer claims a security interest under the identified financing statement, check box 2 (Termination) and not box 8 (Collateral Change). If a partial assignment consists of the assignment of some (but not all) of the collateral covered by the identified financing statement, filer may indicate the assigned collateral in item 8, check the appropriate box in item 8, and also comply with instruction 4above. 9. Always enter name of party of record authorizing this Amendment; in most cases, this will be a Secured Party of record. If more than one authorizing Secured Party, give additional name(s), properly formatted, in item 13 of Amendment Addendum (Form UCC3Ad). If the indicated financing statement refers to the parties as lessee and lessor, or consignee and consignor, or seller and buyer, instead of Debtor and Secured Party, references in this Amendment shall be deemed likewise so to refer to the parties. If this is an assignment, enter assignor's name. If this is an Amendment authorized by a Debtor that adds collateral or adds a Debtor, or if this is a Termination authorized by a Debtor, check the box in item 9 and enter the name, properly formatted, of the Debtor authorizing this Amendment, and, if this Amendment or Termination is to be filed or recorded in the real estate records, also enter, in item 13 of Amendment Addendum, name of Secured Party of record. 10. This item is optional and is for filer's use only. For filer's convenience of reference, filer may enter in item 10 any identifying information (e.g., Secured Party's loan number, law firm file number, Debtor's name or other identification, state in which form is being filed, etc.) that filer may find useful. UCC FINANCING STATEMENT AMENDMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT AT FILER [optional] JUDY T.HORNTON 936-295-8173 B. SEND ACKNOWLEDGMENT TO: (Name and Address) ' WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TX 77340 GF #2012111253 L 1 THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1a. INITIAL FINANCING STATEMENT FILE # 1 b. This FINANCING STATEMENT AMENDMENT is to be RECORDED 06 -07 -2011 DOC. NO 00003719 OPR WALKER COUNTY E1 REAL filed EST(ATE RECORor recorded) in the 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. 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. L._I 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 bem 9. 5. AMENDMENT (PARTY INFORMATION): This Amendment affects ❑ Debtor or ❑ Secured Party of record. Check only one of these two boxes. Also check gne of the following three boxes and provide appropriate information in items 6 and /or 7. LJ Lj CHANGE name and /oraddress: Please referto the detailed instructions DELETE name: Give record name ADD name: Complete item 7a or7b, and also item 7c; in regards to changing the name /address of a party. to be deleted in item 6a or 6b. LIalsocompleteitems7e -7q (if applicable). 6. CURRENT RECORD INFORMATION: OR 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 $EE INSTRUCTIONS ADD'L INFO RE 17e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR 7f. JURISDICTION OF ORGANIZATION 7g. ORGANIZATIONAL ID #. if any 1 NONE 8. AMENDMENT (COLLATERAL CHANGE): check only one box. Describe collateral ® deleted or ❑ added, or give entire ❑restated collateral description, or describe collateral El assigned. LOT NINE (9), BLOCK TWENTY -FOUR (24) OF HIGHLAND ADDITION NO. 3, A SUBDIVISION WITHIN TILE CITY OF HUNTSVILLE, P. GRAY LEAGUE, A -24, WALKER COUNTY, TEXAS ACCORDING TO TI-IE MAP OR PLAT THEREOF RECORDED IN VOLUME 1 PAGE 6 OF THE PLAT RECORDS, WALKER COUNTY, TEXAS. 9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT (name of assignor, if this is an Assignment). 9 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 1 and enter name of DEBTOR authorizing this Amendment. 9a. ORGANIZATION'S NAME TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS OR 9b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 10.OPTIONAL FILER REFERENCE DATA NSP LN #770999991261: CITY OF HUNTSVILLE International Association of Commercial Administrators (IACA) FILING OFFICE COPY — UCC FINANCING STATEMENT AMENDMENT (FORM UCC3) (REV. 05/22/02) Please give this letter to borrower at closing. APRIL 05, 2013 CANDELARIA RIVAS and JACQUELINE RIVAS 2001 NORMAL PARK DRIVE HUNTSVILLE, TX 77340 Re: Loan Number 77099991261c Dear CANDELARIA RIVAS and JACQUELINE RIVAS: 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 MAY 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. 11th 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 77099991261c MAY 01, 2014 CANDELARIA RIVAS and JACQUELINE RIVAS Principal & Interest: Escrow: Total Payment: TDHCANSPPAYLTAHBA Page 1 of 1 $1,393.90 $0.00 $1,393.90 (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 2001 NORMAL PARK DRIVE, HUNTSVILLE WALKER County, TX 77340 dated APRIL 05, 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. eat-nlehr-/D CANDELARIA RIVAS - Borrower JACQUE - Borrower - Borrower NE RIVAS - Borrower - Borrower - Borrower THE STATE OF TES S COUNTY OF ACKNOWLEDGEMENT wad signed and acknowledged on �` , 20 7--by THE STATE OF c COUNTY OF Nota !Public, ll My Commission Expires: [Typed / Printed Name] &/y— Before me, this instrument was signed and acknowledged on , 20 by Notary Public, State of Texas (SEAL) My Commission Expires: TDHCANSPOCCUPAN Page I of I [Typed / Printed Name] 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 /ore 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 1 /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: FENCE ENCROACHES EASEMENT AND DOES NOT FOLLOW PROPERTY LINE. EXECUTED this ,7, day of BORROWER: &hh7,o `✓a/5 CANDELARIA RIVAS JACQUE, E RIVAS TDHCANSPSURVEY Page 1 of 1 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 $6,969.51 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: 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. 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. I /We, 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, (MAY 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 (MAY 01, 2018) year period, the balance of the Note, including interest (if applicable), will become immediately due and payable to Lender. I /We 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 Property as my /our principal residence." EXECUTED this 3 day of /2-d , 20 L3 . BORROWER: By: <2,r7 h r'0 By: Name: CANDELARIA RIVAS Name: Title: Title: By: By: Name: Name: Title: Title: TDHCANSPDUEONSALEHBA Page 1 of Applicants /Borrowers: JACQUELINE RIVAS Property Address: 2001 NORMAL PARK DRIVE, HUNTSVILLE, TX 77340 Loan No: 77099991261c 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. JA 1 1 ' LINE RIVAS STATE OF ( TEXAS ) COUNTY OF ( WALKER ) This instrument was ackwiti d before me on (Seal) , ``O 61g4( ), 4% My commission expire_s:r v Py e -- t— 20/ �qTrf Of�c�` rA 8 -14 :201 %\�`� FlINf111111N1 Z (3 by JACQUELINE RIVAS . blic, Stafe /of TEXAS typed or rated name: U07 TXPENALTYB2 Page 1 of 1 ,t/e -407AJTV(1) Applicants /Borrowers: JACQUELINE RIVAS Property Address: 2001 NORMAL PARK DRIVE, HUNTSVILLE, TX 77340 Loan No: 77099991261c 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 ead, and executed this written Notice. ELINE RIVAS STATE OF ( TEXAS ) COUNTY OF ( WALKS P UTUH1Oy / 0 , i This instrumeAfa � C • . )\ (Seal) Is' _g`(• ry Publ. My c misss_ion expii`�: Pia ' 4.1; tary's typ ' before me on by JACQUELINE RIVAS . State of TEXAS or printed name: TXPENALTY82 Page 1 of 1 7 Applicants /Borrowers: CANDELARIA RIVAS Property Address: 2001 NORMAL PARK DRIVE, HUNTSVILLE, TX 77340 Loan No: 77099991261c 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. CaVe/i2t/ a Awe- CANDELARIA RIVAS STATE OF ( TEXAS) p,NN�THpq��s�,��� COUNTY OF ( WALKE; ) �`�•'cj Y This instrument asAckno d tiScf4p. me on il (Seal) = _ y � 9 P % „1-_OF kea i 'ublic, to of TEXAS �% My commission expires: '�1iio /8 l�g�1I ,1����� ota s typed printed name: A-4(A) / 0 S 2913 b DELARIA RIVAS . TXPENALTYB1 Page 1 of 1 Applicants /Borrowers: CANDELARIA RIVAS Property Address: 2001 NORMAL PARK DRIVE, HUNTSVILLE, TX 77340 Loan No: 77099991261c 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 $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We received, read, and executed this written Notice. eij//'//12 yee$ CANDELARIA RIVAS STATE OF (TF4, COUNTY O Thin0uen I (Seal) 1 174. E;% ` My co miss( €49450..**** 0‘- ��f ' GIJf wledged before me on • n•2 b CANDELARIA RIVAS . Nota,' Public, ate of TEXAS Notary's type r printed name: �c _,' /1o.L�f4""` TXPENALTYB1 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: 77099991261c BORROWER NAME: CANDELARIA RIVAS and JACQUELINE RIVAS PROPERTY ADDRESS: 2001 NORMAL PARK DRIVE, HUNTSVILLE, TX 77340 MAILING ADDRESS: HOME PHONE: WORK PHONE: CELL PHONE: NEAREST RELATIVE (not living with you) CONTACT NAME AND PHONE NUMBER: ozoo1 Noy ry\ Q UG fkn-ts-v i‘ t Ty o q 3 (s) — co (Ltp TDHCANSPINITIALLNCONTACTINFO Page 1 of 1