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FIRST FINANCIAL BANK MEMBER FDIC Principal $33,65001 PROMISSORY NOTE Lean Date 02-13-2013 Maturity. 02.13 2043; Loan Nn 25500000573 Cali /. Call I C2A :/.371 initials References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan o item. Any item above containing ""' * "" has been omitted due to text length limitations. Borrower: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 Principal Amount: $33,650.00 Interest Rate: 5.000% Date of Note: February 13, 2013 PROMISE TO PAY. I ( "Borrower ") promise to pay to First Financial Bank, N.A. ( "Lender "), or order, in lawful money of the United States of America, the principal amount of Thirty-three Thousand Six Hundred Fifty & 00 /100 Dollars ($33,650.00), together with interest on the unpaid principal balance from February 13, 2013, calculated as described in the "INTEREST CALCULATION METHOD" paragraph using an interest rate of 5.000% per annum, until maturity. The interest rate may change under the terms and conditions of the "POST MATURITY RATE" section. PAYMENT. I will pay this loan in 360 payments of $180.61 each payment. My first payment is due March 13, 2013, and all subsequent payments are due on the same day of each month after that. My final payment will be due on February 13, 2043, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. I will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. MAXIMUM INTEREST RATE. Under no circumstances will the interest rate on this Note exceed the lesser of 18.000% per annum or the maximum rate allowed by applicable law. INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of the interest rate over the number of days in a year (366 during leap years), multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All Interest payable under this Note is computed using this method. PREPAYMENT. I may pay without penalty all or a portion of the amount owed earlier than it is due. Prepayment in full shall consist of payment of the remaining unpaid principal balance together with all accrued and unpaid interest and all other amounts, costs and expenses for which I am responsible under this Note or any other agreement with Lender pertaining to this loan, and in no event will I ever be required to pay any uneamed interest. Early payments will not, unless agreed to by Lender in writing, relieve me of my obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in my making fewer payments. I agree not to send Lender payments marked "paid in full ", "without recourse ", or similar language. If I send such a payment, Lender may accept it without losing any of Lender's rights under this Note, and I will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, induding any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: First Financial Bank, N.A., 33 State Highway 75 North Huntsville, TX 77320. LATE CHARGE. If a payment is 15 days or more late, I will be charged 5.000% of the regularly scheduled payment. POST MATURITY RATE. I will continue to pay interest on all sums due after final maturity, whether by acceleration or otherwise, at the note rate in effect at the time of the final maturity. DEFAULT. I will be in default under this Note if any of the following happen: Payment Default. I fail to make any payment when due under this Note. Break Other Promises. I break any promise made to Lender or fail to perform promptly at the time and strictly in the manner provided in this Note or in any agreement related to this Note, or in any other agreement or loan I have with Lender. False Statements. Any representation or statement made or furnished to Lender by me or on my behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished. Death or Insolvency. Any Borrower dies or becomes insolvent; a receiver is appointed for any part of my property; I make an assignment for the benefit of creditors; or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. Taking of the Property. Any creditor or governmental agency tries to take any of the property or any other of my property in which Lender has a lien. This includes taking of garnishing of or levying on my accounts with Lender. However, if I dispute in good faith whether the claim on which the taking of the property is based is valid or reasonable, and if I give Lender written notice of the claim and furnish Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Defective Collateralization. This Note or any of the related documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Collateral Damage or Loss. Any collateral securing this Note is lost, stolen, substantially damaged or destroyed and the loss, theft, substantial damage or destruction is not covered by insurance. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable, it may be cured if I, after Lender sends written notice to me demanding cure of such default: (1) cure the default within twenty (20) days; or (2) if the cure requires more than twenty (20) days, immediately initiate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may declare the entire indebtedness, including the unpaid principal balance under this Note, all PROMISSORY NOTE Loan No: 25500009573 (Continued) Page 2 accrued unpaid interest, and all other amounts, costs and expenses for which I am responsible under this Note or any other agreement with Lender pertaining to this loan, immediately due, without notice, and then I will pay that amount. Upon default, after giving any required notice of default and after my failure to cure the default during any required cure period, Lender may declare due the entire indebtedness, induding the unpaid principal balance, accrued unpaid interest, and all other amounts, costs and expenses for which I am responsible under this Note or any other agreement with Lender pertaining to this loan and I will then pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire an attorney to help collect this Note if I do not pay, and I will pay Lender's reasonable attorneys' fees. I also will pay Lender all other amounts Lender actually incurs as court costs, lawful fees for filing, recording, releasing to any public office any instrument securing this Note; the reasonable cost actually expended for repossessing, storing, preparing for sale, and selling any security; and fees for noting a lien on or transferring a certificate of title to any motor vehicle offered as security for this Note, or premiums or identifiable charges received in connection with the sale of authorized insurance. JURY WAIVER. Lender and I hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or me against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Texas without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Texas. DISHONORED CHECK CHARGE. I will pay a processing fee of $25.00 if any check given by me to Lender as a payment on this loan is dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all my accounts with Lender (whether checking, savings, or some other account). This includes all accounts I hold jointly with someone else and all accounts I may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. I authorize Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. COLLATERAL. I acknowledge this Note is secured by the following collateral described in the security instrument listed herein: a Deed of Trust dated February 13, 2013, to a trustee in favor of Lender on real property located in WALKER County, State of Texas. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon me, and upon my heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. I may notify Lender if Lender reports any inaccurate information about my account(s) to a consumer reporting agency. My written notice describing the specific inaccuracy(ies) should be sent to Lender at the following address: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320. GENERAL PROVISIONS. NOTICE: Under no circumstances (and notwithstanding any other provisions of this Note) shall the interest charged, collected, or contracted for on this Note exceed the maximum rate permitted by law. The term "maximum rate permitted by law" as used in this Note means the greater of (a) the maximum rate of interest permitted under federal or other law applicable to the indebtedness evidenced by this Note, or (b) the higher, as of the date of this Note, of the "Weekly Ceiling" or the "Quarterly Ceiling" as referred to in Sections 303.002, 303.003 and 303.006 of the Texas Finance Code. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. I do not agree or intend to pay, and Lender does not agree or intend to contract for, charge, collect, take, reserve or receive (collectively referred to herein as "charge or collect "), any amount in the nature of interest or in the nature of a fee for this loan, which would in any way or event (including demand, prepayment, or acceleration) cause Lender to charge or collect more for this loan than the maximum Lender would be permitted to charge or collect by federal law or the law of the State of Texas (as applicable). Any such excess interest or unauthorized fee shall, instead of anything stated to the contrary, be applied first to reduce the principal balance of this loan, and when the principal has been paid in full, be refunded to me. The right to accelerate maturity of sums due under this Note does not include the right to accelerate any interest which has not otherwise accrued on the date of such acceleration, and Lender does not intend to charge or collect any uneamed interest in the event of acceleration. All sums paid or agreed to be paid to Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of the loan evidenced by this Note until payment in full so that the rate or amount of interest on account of the loan evidenced hereby does not exceed the applicable usury ceiling. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. I and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, notice of dishonor, notice of intent to accelerate the maturity of this Note, and notice of acceleration of the maturity of this Note, provided, however, that I shall be entitled to any required notice of default and shall be given all opportunity to cure as required by applicable law. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. This means that the words "I ", "me ", and "my" mean each and all of the persons signing below. PRIOR TO SIGNING THIS NOTE, I READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. I AGREE TO THE TERMS OF THE NOTE. I ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. BORROWER: X L.9.e k . 2214> esiree Fails LASER PRO Lending, Ver. 124.10.003 Copr. Harlan" Financial Solutions, Inc. 1991. 2013. All Rig. Reserved. - TX L IHFSICFNLPL1020.FC TR- 183100 PR -512 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY Z REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY tx LLI INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILE CB 'S RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRI LICENSE NUMBER. DEED OF TRUST RECORDATION REQUESTED BY: E u j \I First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 WHEN RECORDED MAIL TO: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 SEND TAX NOTICES TO: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY THIS DEED OF TRUST is dated February 13, 2013, among Desiree Fails ( "Grantor "); First Financial Bank, N.A., whose address is 33 State Highway 75 North, Huntsville, TX 77320 (referred to below sometimes as "Beneficiary"); and Robert Pate, whose address is 33 State Highway 75 North, Huntsville, TX 77320 (referred to below as "Trustee "). CONVEYANCE AND GRANT. For valuable consideration, Grantor conveys to Trustee in trust, with power of sale, for the benefit of Lender as Beneficiary, the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; and all easements, rights of way, and appurtenances; all water and water rights; and all other rights, royalties, and profits relating to the real property, including without limitation such rights as Grantor may have in all minerals, oil, gas, geothermal and similar matters, (the "Real Property ") located in WALKER County, State of Texas: BEING 0.179 of an acre of land, more or Tess, situated in the City of Huntsville, PLEASANT GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT ONE (1) of the OAKWOOD VIEW SUBDIVISION, according to the map or plat thereof recorded in Volume 4, Page 25, of the Plat Records, Walker County, Texas, said 0.179 of an acre of land being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof The Real Property or its address is commonly known as 921 AVENUE H, HUNTSVILLE, TX 77320 -4723. Grantor hereby absolutely assigns to Lender (also known as Beneficiary in this Deed of Trust) all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Grantor shall pay to Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's obligations under the Note, this Deed of Trust, and the Related Documents. VENDOR'S LIEN. The debt evidenced by the Note is in part or total payment of the purchase price of the Property; the debt is secured by both this Deed of Trust and by a vendor's lien on the Property, which is expressly retained in the deed of the Property to Grantor. This Deed of Trust does not waive the vendor's lien, and the two liens and the rights created by this instrument shall be cumulative. Lender may elect to foreclose under either of the liens without waiving the other or may foreclose under both. The deed wherein the vendor's lien is retained is incorporated into this Deed of Trust. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any DEED OF TRUST (Continued) Page 2 kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Deed of Trust, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Deed of Trust and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. This restriction will not apply to rights and easements (such as gas and oil) not owned by Grantor and of which Grantor has informed Lender in writing prior to Grantor's signing of this Deed of Trust. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Deed of Trust upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease- option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Texas law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and Lender's reasonable attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such other hazard and liability insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender, with DEED OF TRUST (Continued) Page 3 losses made payable to Lender. GRANTOR MAY FURNISH THE REQUIRED INSURANCE WHETHER THROUGH EXISTING POLICIES OWNED OR CONTROLLED BY GRANTOR OR THROUGH EQUIVALENT INSURANCE FROM ANY INSURANCE COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THE STATE OF TEXAS. If Grantor fails to provide any required insurance or fails to continue such insurance in force, Lender may, but shall not be required to, do so at Grantor's expense, and the cost of the insurance will be added to the Indebtedness. If any such insurance is procured by Lender, Grantor will be so notified, and Grantor will have the option of furnishing equivalent insurance through any insurer authorized to transact business in Texas. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. TAX AND INSURANCE RESERVES. For the purpose of creating a fund for the payment of taxes and insurance premiums on the Property, Grantor covenants and agrees to deposit monthly, or at such other interval as payments under the Note may be due, with Lender, in addition to the initial deposit to such fund, on the payment dates specified in the Note, a sum equivalent to one - twelfth (1/12), or equivalent fraction if payments are not monthly, of the estimated annual taxes and insurance premiums on the Property, such estimates to be made by Lender. Such periodic deposits shall be in addition to the payments called for in the Note, and Lender shall hold the deposits in trust, without bond and without the accrual of interest thereon, to pay such taxes and insurance premiums as they become due. Subject to any limitations set by applicable law, should the deposits at any time be insufficient to pay any taxes or insurance premiums when due, Grantor agrees to deposit the deficiency with Lender as required by Lender. If Lender discovers that the deposits have produced a surplus beyond the annual amounts due to be paid from the reserve funds by more than the cushion permitted by applicable law, but a payment on the Note has not been received within 30 days of the payment due date, Lender may retain the excess funds. All amounts in the fund are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Grantor covenants and agrees that any failure to make the deposits provided for in this paragraph shall constitute an Event of Default as provided below. LENDER'S EXPENDITURES. If Grantor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other claims, (8) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses paid by Lender for such purposes will then bear interest at the Note rate from the date paid by Lender to the date of repayment by Grantor. To the extent permitted by applicable law, all such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Trustee or Lender under this Deed of Trust, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Promises. All promises, agreements, and statements Grantor has made in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Grantor's Indebtedness is paid in full. CONDEMNATION, JUDGMENTS AND AWARDS. The following provisions relating to condemnation proceedings, judgments, decrees and awards for injury to the Property are a part of this Deed of Trust: Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to DEED OF TRUST (Continued) Page 4 permit such participation. Application of Net Proceeds. To the extent permitted by applicable law, all judgments, decrees and awards for injury or damage to the Property, or any part of the Property, and awards pursuant to proceedings for condemnation of the Property, are hereby absolutely assigned to Lender, and if all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award, judgment or decree shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of this Deed of Trust: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Personal Property. In addition to recording this Deed of Trust in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Deed of Trust as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Deed of Trust. FURTHER ASSURANCES; ATTORNEY -IN -FACT. The following provisions relating to further assurances and attorney -in -fact are a part of this Deed of Trust: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests created by this Deed of Trust as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Attorney -in -Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney -in -fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Deed of Trust, Lender shall execute and deliver to Grantor a release of this Deed of Trust lien and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. However, it is agreed that the payment of all the Indebtedness and performance of such obligations shall not terminate this Deed of Trust unless the liens and interests created hereby are released by Lender by a proper recordable instrument. Any filing fees required by law shall be paid by Grantor, if permitted by applicable law. EVENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Deed of Trust if any of the following happen: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Break Other Promises. Grantor breaks any promise made to Lender or fails to perform promptly at the time and strictly in the manner provided in this Deed of Trust or in any agreement related to this Deed of Trust. Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note or in any of the Related Documents. Default on Other Payments. Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. False Statements. Any representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Deed of Trust or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished. Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Taking of the Property. Any creditor or governmental agency tries to take any of the Property or any other of Grantor's property in which Lender has a lien. This includes taking of, garnishing of or levying on Grantor's accounts with Lender. However, if Grantor disputes in good faith whether the claim on which the taking of the Property is based is valid or reasonable, and if Grantor gives Lender written notice of the claim and furnishes Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. DEED OF TRUST (Continued) Page 5 Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. Right to Cure. If any default, other than a default in payment is curable, it may be cured if Grantor, after Lender sends written notice to Grantor demanding cure of such default: (1) cures the default within twenty (20) days; or (2) if the cure requires more than twenty (20) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may exercise any one or more of the following rights and remedies: Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by Lender to choose any one remedy will not bar Lender from using any other remedy. If Lender decides to spend money or to perform any of Grantor's obligations under this Deed of Trust, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare Grantor in default and to exercise Lender's remedies. Accelerate Indebtedness. Lender may declare the unpaid principal balance of the Indebtedness due and payable. In no event will Grantor be required to pay any unearned interest. Foreclosure. If Lender invokes the power of sale, Trustee, at the request of Lender, may sell all or any portion of the Property at public auction to the highest bidder for cash at the location within the courthouse designated by the County Commissioners Court, or if no such area has been designated, at the area designated in the notice of sale within the courthouse, between the hours of 10:00 A.M. and 4:00 P.M. on the first Tuesday of any month, after the Trustee or its agent has given notice of the time and place of sale and of the property to be sold as required by the Texas Property Code, as then amended. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. As additional security for the payment of the Indebtedness, Grantor hereby assigns to Lender all Rents as defined in the Definitions section of this Deed of Trust. Lender shall have the right at any time, and even though no Event of Default shall have occurred under this Deed of Trust, to collect and receive the Rents. Lender shall provide any notice required by applicable law with regard to such enforcement of its right to collect and receive the Rents. In addition, if the Property is vacant, Lender may rent or lease the Property. Lender shall not be liable for its failure to rent the Property, to collect any Rents, or to exercise diligence in any matter relating to the Rents; Lender shall be accountable only for Rents actually received. Lender neither has nor assumes any obligation as lessor or landlord with respect to any occupant of the Property. Rents so received shall be applied by Lender first to the remaining unpaid balance of the Indebtedness, in such order or manner as Lender shall elect, and the residue, if any, shall be paid to the person or persons legally entitled to the residue. Trustee's Powers. Grantor hereby jointly and severally authorizes and empowers Trustee to sell all or any portion of the Property together or in lots or parcels, as 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, or of lesser estates, and bills of sale and assignments, with covenants of general warranty made on Grantor's behalf. In no event shall Trustee be required to exhibit, present or display at any such sale any of the Property to be sold at such sale. The Trustee making such sale shall receive the proceeds of the sale and shall apply the same as provided below. Payment of the purchase price to Trustee shall satisfy the liability of the purchaser at any such sale of the Property, and such person shall not be bound to look after the application of the proceeds. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, (2) vacate the Property immediately upon the demand of Lender, or (3) if such tenants refuse to surrender possession of the Property upon demand, the purchaser shall be entitled to institute and maintain the statutory action of forcible entry and detainer and procure a writ of possession thereunder, and Grantor expressly waives all damages sustained by reason thereof. Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or the Note or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all rights to have the Property marshalled. In exercising its rights and remedies, the Trustee or Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Trustee may convey all or any part of the Property to the highest bidder for cash with a general warranty binding Grantor, subject to prior liens and to other exceptions to conveyance and warranty. Grantor waives all requirements of appraisement, if any. The affidavit of any person having knowledge of the facts to the effect that proper notice as required by the Texas Property Code was given shall be prima facie evidence of the fact that such notice was in fact given. Recitals and statements of fact in any notice or in any conveyance to the purchaser or purchasers of the Property in any foreclosure sale under this Deed of Trust shall be prima facie evidence of the truth of such facts, and all prerequisites and requirements necessary to the validity of any such sale shall be presumed to have been performed. Any sale under the powers granted by this Deed of Trust shall be a perpetual bar against Grantor, Grantor's heirs, successors, assigns and legal representatives. Proceeds. Trustee shall pay the proceeds of any sale of the Property (a) first, to the expenses of foreclosure, including reasonable fees or charges paid to the Trustee, including but not limited to fees for enforcing the lien, posting for sale, selling, or releasing the Property, (b) then to Lender the full amount of the Indebtedness, (c) then to any amount required by law to be paid before payment to Grantor, and (d) the balance, if any, to Grantor. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall be entitled DEED OF TRUST (Continued) Page 6 to recover such sum as the court may adjudge reasonable as Lender's attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including Lender's reasonable attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post - judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. In the event of foreclosure of this Deed of Trust, Lender shall be entitled to recover from Grantor Lender's reasonable attorneys' fees and actual disbursements that Lender necessarily incurs in pursuing such foreclosure. POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee are part of this Deed of Trust: Powers of Trustee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following actions with respect to the Property upon the written request of Lender and Grantor: (a) join in preparing and filing a map or plat of the Real Property, including the dedication of streets or other rights to the public; (b) join in granting any easement or creating any restriction on the Real Property; and (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust. Obligations to Notify. Trustee shall not be obligated to notify any other lienholder of the Property of the commencement of a foreclosure proceeding or of the commencement of any other action to which Lender may avail itself as a remedy, except to the extent required by applicable law or by written agreement. Trustee. In addition to the rights and remedies set forth above, with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender will have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. Substitute Trustee. Lender, at Lender's option, from time to time, and more than once, may appoint in writing a successor or substitute trustee, with or without cause, including the resignation, absence, death, inability, refusal or failure to act of the Trustee. The successor or substitute trustee may be appointed without ever requiring the resignation of the former trustee and without any formality except for the execution and acknowledgment of the appointment by the beneficiary of this Deed of Trust. The successor or substitute trustee shall then succeed to all rights, obligations, and duties of the Trustee. This appointment may be made on Lender's behalf by the President, any Vice President, Secretary, or Cashier of Lender. NOTICES. Any notice required to be given under this Deed of Trust, including without limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust. Any person may change his or her address for notices under this Deed of Trust by giving formal written notice to the other person or persons, specifying that the purpose of the notice is to change the person's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. It will be Grantor's responsibility to tell the others of the notice from Lender. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of Trust: Amendments. What is written in this Deed of Trust and in the Related Documents is Grantor's entire agreement with Lender concerning the matters covered by this Deed of Trust. To be effective, any change or amendment to this Deed of Trust must be in writing and must be signed by whoever will be bound or obligated by the change or amendment. Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be used to interpret or define the provisions of this Deed of Trust. Merger. There shall be no merger of the interest or estate created by this Deed of Trust with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Governing Law. This Deed of Trust will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Texas without regard to its conflicts of law provisions. This Deed of Trust has been accepted by Lender in the State of Texas. No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under this Deed of Trust unless Lender does so in writing. The fact that Lender delays or omits to exercise any right will not mean that Lender has given up that right. If Lender does agree in writing to give up one of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of this Deed of Trust. Grantor also understands that if Lender does consent to a request, that does not mean that Grantor will not have to get Lender's consent again if the situation happens again. Grantor further understands that just because Lender consents to one or more of Grantor's requests, that does not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presentment, demand for payment, protest, notice of dishonor, notice of intent to accelerate, and notice of acceleration. Severability. If a court finds that any provision of this Deed of Trust is not valid or should not be enforced, that fact by itself will not mean that the rest of this Deed of Trust will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Deed of Trust even if a provision of this Deed of Trust may be found to be invalid or unenforceable. Successors and Assigns. Subject to any limitations stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness. Time is of the Essence. Time is of the essence in the performance of this Deed of Trust. Waive Jury. All parties to this Deed of Trust hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by DEED OF TRUST (Continued) Page 7 any party against any other party. DEFINITIONS. The following words shall have the following meanings when used in this Deed of Trust: Beneficiary. The word "Beneficiary" means First Financial Bank, N.A., and its successors and assigns. Borrower. The word "Borrower" means Desiree Fails and includes all co- signers and co- makers signing the Note and all their successors and assigns. Deed of Trust. The words "Deed of Trust" mean this Deed of Trust among Grantor, Lender, and Trustee, and includes without limitation all assignment and security interest provisions relating to the Personal Property and Rents. Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ( "CERCLA "), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99 -499 ( "SARA "), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set forth in this Deed of Trust in the events of default section of this Deed of Trust. Grantor. The word "Grantor" means Desiree Fails. Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by- products or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Trustee or Lender to enforce Grantor's obligations under this Deed of Trust, together with interest on such amounts as provided in this Deed of Trust. Lender. The word "Lender" means First Financial Bank, N.A., its successors and assigns. The words "successors or assigns" mean any person or company that acquires any interest in the Note. Note. The word "Note" means the promissory note dated February 13, 2013, in the original principal amount of $33,650.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The maturity date of the Note is February 13, 2043. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Deed of Trust. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. The word "Rents" shall also mean all "Rents" as defined in Chapter 64 of the Texas Property Code. Trustee. The word "Trustee" means Robert Pate, whose address is 33 State Highway 75 North, Huntsville, TX 77320 and any substitute or successor trustees. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES TO ITS TERMS. GRANTOR: X 1x,Q,",��. �% - 742, t 06) Desiree Fails . DEED OF TRUST (Continued) Page 8 STATE OF INDIVIDUAL ACKNOWLEDGMENT This instrument was acknowledged before me on SS {IIlPll6l /r,� /' •'•QjpTAa�fp.,s by Des ;fee Fails. • Nota Public, S e of Texas •.F.h� FTEXPS °' ORES �° /,,7 ` eN��l�eN„,x0s. LASER PRO Lending, Ver. 12.4.10.003 Copr. Harland Financial Solutions, Inc. 1997, 2013. All Rights Reserved. - TX L: \HFS \CFI \LPL \G01.FC TR- 183700 PR -512 Exhibit A Being a 0.179 of an acre (7,812 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of Lot 1 of the Oakwood View Subdivision, as recorded in Volume 4, Page 25 of the Map, Records of Walker County, Texas; said 0.179 of an acre of land being more particularly described by metes and bounds as follows: BEGINNING at a' /cinch iron rod with aluminum cap found for the southwest corner of said Lot 1, being at the intersection of the northerly right -of -way line of 10th Street and the easterly right -of -way line of Avenue H (based on a width of 75 feet); THENCE, North 01 059 °57" West, a distance of 83.39 feet, along the westerly line of said Lot 1 and the easterly right -of -way line of Avenue H to a' /2 -inch iron rod with cap found for the northwest corner of said Lot 1 and the southwest corner of Lot 2, of said subdivision; THENCE, North 88 °00' 03" East, a distance of 93.38 feet, along the common line of said Lots 1 and 2. to a 1/2-inch iron rod with aluminum cap found in an easterly line of said subdivision, being the northeast corner of said Lot 1, the southeast corner of said Lot 2 and in the westerly line of that certain-tract of land conveyed to Omesa Mills Walker (currently owned by Patricia Robinson), and described in Volume 52, Page 611 of die Official Public Records of Walker County, Texas; THENCE, South 02 °59' 59" East, a distance of 82.65 feet, along the common line of said Lot 1 and said Robinson tract to a 1/2-inch iron rod with aluminum cap found in the northerly right -of -way line of 10th Street, being the southeast corner of said Lot 1 and the southwest corner of said Robinson tract; THENCE, South 87 °32'54" West, a distance of 94.82 feet, along the northerly right-of- way line of 10`h Street and the southerly line of said Lot 1 to the Point of Beginning and containing 0.179 of an acre of an acre of land. EXHIBIT "A" FIRST FINANCIAL BANK MEMBER FDIC DISCLOSURE STATEMENT Principal $33,.65.0.00 Loan Date 02-13-2013 fillaturlty 02 -13- 20.43„ Loan No ` 25500009573 call i coil 1C7A1,370 Account > FACO299 Officer LRS initials References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan o item. Any item above containing " * * *" has been omitted due to text length limitations. Borrower: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: References to "I ", "me ", "my" or "you" in this Disclosure Statement refer to Borrower. First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 ANNUAL PERCENTAGE FINANCE CHARGE Amount Financed Total of Payments RATE The dollar amount the credit The amount of credit The amount I will have paid The cost of my credit as a will cost me. provided to me or on my after I have made all yearly rate. behalf. payments as scheduled. 4.999% $31,369.60 $33,650.00 $65,019.60 NTEREST RATE AND PAYMENT SUMMARY PROPERTY INSURANCE. I may obtain property insurance from anyone I want that is acceptable to Lender. SECURITY. I am giving a security interest in the goods or property being purchased. In addition, Lender has also reserved a contractual right of setoff in my deposit accounts. LATE CHARGE. If a payment is 15 days or more late, I will be charged 5.000% of the regularly scheduled payment. ASSUMPTION. Someone buying my home cannot assume the remainder of the obligation on the original terms. PREPAYMENT. If I pay off early, 1 will not have to pay a penalty. I will look at my contract documents for any additional information about nonpayment, default, any required repayment in full before the scheduled date, and prepayment refunds. There is no guarantee that I will be able to refinance to lower my rate and payments. You are not required to complete thls agreement merely because you have received these disclosures or signed a loan application. I read and was given a completed copy of this Disclosure Statement on February 13, 2013, prior to signing the Note. BORROWER: X 1.92/14..A.o_, Desiree Fails Rate & Monthly Payment Interest Rate 5.000 % Principal + Interest Payment $ 180.61 Est. Taxes +Insurance (Escrow) $ 121.21 Total Est. Monthly Payment $ 301.82 PROPERTY INSURANCE. I may obtain property insurance from anyone I want that is acceptable to Lender. SECURITY. I am giving a security interest in the goods or property being purchased. In addition, Lender has also reserved a contractual right of setoff in my deposit accounts. LATE CHARGE. If a payment is 15 days or more late, I will be charged 5.000% of the regularly scheduled payment. ASSUMPTION. Someone buying my home cannot assume the remainder of the obligation on the original terms. PREPAYMENT. If I pay off early, 1 will not have to pay a penalty. I will look at my contract documents for any additional information about nonpayment, default, any required repayment in full before the scheduled date, and prepayment refunds. There is no guarantee that I will be able to refinance to lower my rate and payments. You are not required to complete thls agreement merely because you have received these disclosures or signed a loan application. I read and was given a completed copy of this Disclosure Statement on February 13, 2013, prior to signing the Note. BORROWER: X 1.92/14..A.o_, Desiree Fails DISCLOSURE STATEMENT Loan No: 25500009573 (Continued) Page 2 Amount Financed Itemization Amount paid to others on my behalf: $33,650.00 $33,650.00 to Walker County Title Company Note Principal: Prepaid Finance Charges: Amount Financed: $33,650.00 $0.00 $33,650.00 Other Charges Paid In Cash: $591.00 Owner's Title Insurance to Walker County Title Company $200.00 Lender's Title Insurance to Walker County Title Company $20.00 Tax Certificate to Walker County Title Company $6.00 Guaranty Fee to Walker County Title Company $124.00 Recording Fees to Walker County aerk $404.00 Homeowners Insurance Premium to Hochheim Prairie Farm Mutual $300.00 Settlement/Closing Fee to Walker County Title Company $17.00 Flood Certification to American Flood Research, Inc. $207.00 2nd Lien MTP /Endorsements to Walker County Title Company $25.00 Delivery Fee to Walker County Title Company $50.00 Homeowner Training to Texas Department of Housing and Community Affairs $56.00 UCC Recording Fees $2,000.00 LASER PRO Leming, Va,. 12.4.10.003 Cup, Harland f ar<ial Solutions: Inc. 1091. 2013. All WO Reserved. - TN I VIF$CPN Pl 910.FC TR- 192700 PR•S12 FORST FINANCIAL BANK MEMBER FDIC DISBURSEMENT REQUEST AND AUTHORIZATION Principal $33,650.00 Loan Date 02 -13 -2013 Maturity 02 -13- 2043 Loan No 2550.0009573 ' call / coil 9C2A /;an Account; FACO299` Officer LRS initials References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan o item. Any item above containing " * * *" has been omit ed due to text length limitations. Borrower: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 LOAN TYPE. This is a non - precomputed Fixed Rate (5.000 %) Disciosable Installment Loan to an Individual for $33,650.00 due on February 13, 2043. PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for: ® Personal, Family or Household Purposes. ❑ Personal Investment. ❑ Business, Agricultural and All Other. SPECIFIC PURPOSE. The specific purpose of this loan is: Purchase home located at 921 Avenue H, Huntsville, TX 77320 from the City of Huntsville. DISBURSEMENT INSTRUCTIONS, I understand that no loan proceeds will be disbursed until any notice of the right to cancel time period specified has expired and all of Lender's conditions for making the loan have been satisfied. Please disburse the loan proceeds of $33,650.00 as follows: Amount paid to others on my behalf: $33,650.00 $33,650.00 to Walker County Title Company Note Principal: $33,650.00 CHARGES PAID IN CASH. I have paid or will pay in cash as agreed the following charges: Prepaid Finance Charges Pald in Cash: Other Charges Paid in Cash: $591.00 Owner's Title Insurance to Walker County Title Company $200.00 Lender's Title Insurance to Walker County Title Company $20.00 Tax Certificate to Wacker County Title Company $6.00 Guaranty Fee to Walker County Title Company $124.00 Recording Fees to Walker County Clerk $404.00 Homeowners Insurance Premium to Hochheim Prairie Farm Mutual $300.00 Settlement/Closing Fee to Walker County Title Company $17.00 Flood Certification to American Flood Research, Inc. $207.00 2nd Lien MTP /Endorsements to Walker County Title Company $25.00 Delivery Fee to Walker County Title Company $50.00 Homeowner Training to Texas Department of Housing and Community Affairs $56.00 UCC Recording Fees $0.00 $2,000.00 Total Charges Paid in Cash: $2,000.00 ESCROW ACCOUNT INFORMATION: Escrow Account Starting Balance: $ 242.40 Calculated Monthly Reserve Amount: $ 121.21 Monthly Discretionary Payment Amount: $ Loan Servicer: Anticipated Escrow Disbursements: Description: Homeowner's Insurance Amount: $ 404.00 (Annual Amount: $ 404.00 ) DISBURSEMENT REQUEST AND AUTHORIZATION Loan No: 25500009573 (Continued) Page 2 Periods Payable: February Description: Property Taxes Amount: $ 1,050.50 (Annual Amount: $ 1,051.00 ) Periods Payable: December TAX CONSEQUENCES. I understand that Lender makes no representation or warranty whatsoever concerning the tax consequences of this loan, including the deductibility of interest, and that I should consult with my own tax advisor for guidance on this subject. I also agree that Lender shall not be liable in any manner whatsoever should the interest paid on the loan not be deductible. FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, I REPRESENT AND WARRANT TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN MY FINANCIAL CONDITION AS DISCLOSED IN MY MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED FEBRUARY 13, 2013. BORROWER: X /yQ_,Q., LAza Y� Desiree Fails CREDIT INSURANCE DISCLOSURE VOLUNTARY CREDIT INSURANCE. CREDIT LIFE INSURANCE, CREDIT DISABILITY INSURANCE AND INVOLUNTARY UNEMPLOYMENT INSURANCE ARE NOT REQUIRED TO OBTAIN CREDIT. By signing below, I acknowledge that I am not obtaining credit insurance for this loan for one of the following reasons: (A) I am not eligible for credit insurance; (B) Credit insurance is not available from Lender; or (C) If I am eligible and credit insurance is available from Lender, I do not want it. Prior to signing this Credit Insurance Notice on February 13, 2013, I read and understood all of the provisions of this Disclosure. BORROWER: Desiree Fails USER PRO tandn0, tiny 13410003 C43, NaNn4 Finaroal 9ah,li0ns Inc. 1991. 3013. nu Rpms Resuvea • TX L'.11FSCFI11➢LY30.FC 39483100 P9012 FIRST FINANCIAL BANK MEMBER FDIC NEGATIVE INFORMATION DISCLOSURE Pr,nclpal Loan Date Maturity Loan No ca111 Golf ': Aecaur►t >dfficer: Initials $33650.00 02 -13 21113< 0;.:07.'".20.43.::::: : 2550000957 1 ZA r 370. > FACO293 i RS .: LL ......; . References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing " -***"" has been omitted due to text length limitations. Borrower: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report. I read and understood this Negative Information Disclosure on February 13, 2013. BORROWER: X (SZ Mc J 3../_00..) Desiree Fails LASER PRO Landon°. Ver. 12.x.10.003 Capr. Harland Emanuel Solutions, Inc. 1997. 2013. All Rights Reserved. . TX L.\HFS \CFI1LPL1B25.PC TR.183700 PR -512 FIRST FINANCIAL BANK MEMBER FDIC NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Princ€ pal $33,65 ::00 L Date f2 13 20 t . Maturity ; 0Z-134204 t)• N-. .. 2550000957:::....7C2A(378 cell t calf ; Account l=AG029..9 ;officer: lRS;: <. Initials .. .:: References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan o item. Any item above containing "' *"" has been omitted due to text length limitations. Applicant: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 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, of the Texas Penal Code, and; depending on the amount f the loan or value of the property, is punishable by imprisonment for a term of years to 99 years and a fine not to exceed $10,000. /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. APPLICANT: X 1051/12-4-4.4_; �GxG.Q4% Desiree Fails Date INDIVIDUAL ACKNOWLEDGMENT STATE OF / it - `, COUNTY OF )SS ) Before me, the undersigned notary, on the0 'k}f 20 43 personally appeared Desiree Fails, a person(s) whose identity is known to me. After I admini -. !�, t er /them, he /she /they said he /she /they read the above notice and that the facts stated therein are within his /her /their pe` �oOR*. afg,true and correct. 1 sT9TFOF��� • o •.EXPIRES / / / //, 8-14-2M al- 4 Notary' ublic in d for the State of Texas LASER PRO Leming, Ver. 12.0.10 003 Copr. Harland Financal Solution.. Inc. 1997, 2013. All Rights Reserved. - TX L FIFSICFILLPL.B93. FC TR- 183700 PR -512 FIRST FINANCIAL BANK MEMBER FDIC INITIAL ESCROW ACCOUNT DISCLOSURE STATEMENT Principal $33,6SO Oo L*ar Date q2- 1320't3 Maturity 02.1:3 2Q43 Loan NQ 2aa©A049573 Calt f GoIi 1cz i 37tt Account FAt 0209 Officar . IRS Initials References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing """ "" has been omitted due to text length limitations. Borrower: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 Servicer: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 Collect or Toll Free Phone: (936) 295 -2224 THIS IS AN ESTIMATE OF ACTIVITY IN YOUR ESCROW ACCOUNT DURING THE COMING YEAR BASED ON PAYMENTS ANTICIPATED TO BE MADE FROM YOUR ACCOUNT. Starting Balance $242.40 Month Payments to Escrow Account Payments from Escrow Account Description Escrow Account Balance March 121.21 363.61 April 121.21 484.82 May 121.21 606.03 June 121.21 727.24 July 121.21 848.45 August 121.21 969.66 September 121.21 1,090.87 October 121.21 1,212.08 November 121.21 1,333.29 December 121.21 1,050.50 Property Taxes 404.00 January 121.21 525.21 February 121.21 404.00 Homeowner's Insurance 242.42 (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: $242.42 YOUR MONTHLY MORTGAGE PAYMENT FOR THE COMING YEAR WILL BE $301.82; OF WHICH $180.61 WILL BE FOR PRINCIPAL AND INTEREST, $121.21 WILL GO INTO YOUR ESCROW ACCOUNT, AND $0.00 WILL BE FOR DISCRETIONARY ITEMS (SUCH AS LIFE INSURANCE, DISABILITY INSURANCE) THAT YOU MAY CHOOSE TO BE INCLUDED WITH YOUR MONTHLY PAYMENT. Consumer Disclosure for Voluntary Escrow Account Payments. The bills paid out of your escrow account are expected to increase substantially after the first year because Taxes were assessed prior to the purchase of your home. Upon your next evaluation, the property taxes will be calculated based upon the accurate exemption(s) for your home; therefore, increasing or possibly decreasing the amount of your property taxes and increasing or decreasing the amount of your Escrow Payment for the following tax year.. Under normal escrow practices, your monthly escrow payment in the second year could be much higher than in the first. You may voluntarily choose to make higher payments during the first year to reduce or eliminate the monthly payment increase in the second year. If you are interested in doing this, please contact: First Financial Bank, N.A., 33 State Highway 75 North, Huntsville, TX 77320. Phone number (936) 295 -2224. Fax number (936) 435 -9700. INITIAL ESCROW ACCOUNT DISCLOSURE STATEMENT Loan No: 25500009573 (Continued) Page 2 BORROWER ACKNOWLEDGMENT I acknowledge receipt of this Initial Escrow Account Disclosure Statement. BORROWER: X Desiree Fails 0� Date LASER PRO Lending. Ver. 12 4 10 000 Copr. Harland Finanaal Solutions, Inc. 1991, 2013 All Riglns Reserved. - TX L \HFSICFILLPL\ESCROW. FC TR-183700 PR -512 HOLD HARMLESS AGREEMENT ::Principal .: $ 3,65.0 OQ :. Lgafr!33Date 3 Q2 13-2013:: . Maturity Q2 13 2.043 Loatt NO..> 25530.000973 , Catl ] Cart taki.:116 CCQUr► €. FA+G0 939 ::Pft1:0er: ;: Ft3 ` i iltfalS. References in the boxes above are or Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing " " " "" has been omitted due to text length limitations. Borrower: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 HOLD HARMLESS AGREEMENT LENDER: First Financial Bank, N.A. GRANTOR(S): Desiree Fails LOAN AMOUNT: $33,650.00 PROPERTY ADDRESS: 921 Avenue H, Huntsville, TX 77320 The undersigned Grantor(s) have instructed Lender to NOT obtain a survey of the above referenced real property in connection with this loan. The undersigned accept full responsibility for not obtaining the survey and will hold Lender harmless from any loss and /or damages that may be incurred as a result of our action. �1 G Desiree Fails THE STATE OF TEXAS COUNTY OF Walker Before me, the undersigned authority, on this day personally appeared Desiree Fails, known to ♦litflr /e the person(s) whose name(s) is /are subscribed to the foregoing instrument, and acknowledged to me? that they executed the s c�JtIJ cp/oses and considerations therein expressed. Given under hand a.,.d cool of office this - day of 7 • `� � • �i Cep °I :::014!4--°2F:141P f P 1119 1VO'‘�'4gv���� Notary blic in E d for the State of Texas LASER PRO Lending, Vet. 12.0.10.003 Cap,. Harland Finanaal Solutions. Inc. 1997, 2013. All Rights Reserved. - TX L.IHFS\CFILLPLIG60 PC TR- 183700 PR -512 ERRORS AND OMISSIONS Prince at p .:.:.::.,$3.3i$5.0-40:-.::::::::::: I,aan Date :01t1 3.20 3;: Maturity Q:24.32043-:::. loan No .25500049:573 . Ca11 !Cork a&&A t 370 �CGaunt PA04 9:9 Qfficer LRS .> Mitiais References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing ""`"" has been omitted due to text length limitations. Borrower: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 ERRORS AND OMISSIONS LETTER LENDER: First Financial Bank, N.A. GRANTOR(S): Desiree Fails LOAN AMOUNT: $33,650.00 PROPERTY ADDRESS: 921 Avenue H, Huntsville, TX 77320 The undersigned Grantor(s) for and in consideration of the above referenced Lender funding the closing of this loan agrees, if requested by Lender or Closing Agent for Lender, to fully cooperate and adjust for any clerical errors, misstatement of terms and provisions, or other inaccuracies, in any or all of the closing documentation if deemed necessary or desirable in the reasonable discretion of the Lender. Grantor(s) failure to initial or execute such documents as requested shall constitute a default under the Note evidencing and Deed of Trust securing the Loan. Please evidence your acknowledgment to the above by your execution of this instrument in the space provided below. GRANTOR: X /90.6 cc [Qn� Desiree Fails USER PRO Lending, Ver. 12.4.10.003 Copr. Harland Finanral Salulicns, Inc. 1997. 2013. All 1,6909 Reserved. - TX L11-IFSICFIILPLIO60.FC TR- 183100 PR -512 AGREEMENT TO PROVIDE INSURANCE Princi a p ! $3,65 3 011 Laan Date Q2- 13=261 Maturity 02.43:,404.3.:.1:. loan No 2a5U0009673 C�u l'Corl 1c2A; 370 : Account FACO299 t?fficer . LRS : Mtfials References in the boxes above are or Lender's use only and do not limit the applicability of this document to any particular loan o item. Any item above containing """ *" has been omitted due to text length limitations. Grantor: Desiree Fails PO BOX 6266 HUNTSVILLE, TX 77342 -6266 Lender: First Financial Bank, N.A. 33 State Highway 75 North Huntsville, TX 77320 INSURANCE REQUIREMENTS. I, Desiree Fails ( "Grantor"), understand that insurance coverage is required in connection with the extending of a loan or the providing of other financial accommodations to me by Lender. These requirements are set forth in the security documents for the loan. The following minimum insurance coverages must be provided on the following described collateral (the "Collateral "): Collateral: 921 AVENUE H, HUNTSVILLE, TX 77320 -4723. Type: Fire and extended coverage. Amount: Full Insurable Value. Basis: Replacement value. Endorsements: Standard mortgagee's clause with stipulation that coverage will not be cancelled or diminished without a minimum of 10 days prior written notice to Lender, and without disclaimer of the insurer's liability for failure to give such notice. Latest Delivery Date: By the loan closing date. INSURANCE COMPANY. I may obtain insurance from any insurance company I may choose that is reasonably acceptable to Lender. I understand that credit may not be denied solely because insurance was not purchased through Lender. FLOOD INSURANCE. Flood Insurance for the Collateral securing this loan is described as follows: Real Estate at 921 AVENUE H, HUNTSVILLE, TX 77320 -4723. Should the Collateral at any time be deemed to be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area. I agree to obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Flood insurance may be purchased under the National Flood Insurance Program or from private insurers. INSURANCE MAILING ADDRESS. All documents and other materials relating to insurance for this loan should be mailed, delivered or directed to the following address: First Financial Bank, N.A. Credit Department P.O. Box 701 Abilene, TX 79604 -0701 FAILURE TO PROVIDE INSURANCE. I agree to deliver to Lender, on the latest delivery date stated above, evidence of the required insurance as provided above, with an effective date of February 13, 2013, or earlier. I acknowledge and agree that if I fail to provide any required insurance or fail to continue such insurance in force, Lender may do so at my expense as provided in the applicable security document. The cost of any such insurance, at the option of Lender, shall be added to the indebtedness as provided in the security document. I ACKNOWLEDGE THAT IF LENDER SO PURCHASES ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO AN AMOUNT EQUAL TO THE LESSER OF (1) THE UNPAID BALANCE OF THE DEBT, EXCLUDING ANY UNEARNED FINANCE CHARGES, OR (2) THE VALUE OF THE COLLATERAL; HOWEVER, MY EQUITY IN THE COLLATERAL MAY NOT BE INSURED. IN ADDITION, THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL RESPONSIBILITY LAWS. If such insurance purchased by Lender is procured at a rate or charge not fixed or approved by the State Board of Insurance, I will be so notified, and I may at any time cause the cancellation of collateral protection insurance by providing proper evidence to Lender that I have obtained insurance as required by the security document. Texas Creditor - Placed Insurance Notice: Grantor is required to keep the Collateral insured against damage in the amount specified by Lender. Grantor will purchase the insurance from an insurer that is authorized to do business in Texas or an eligible surplus lines insurer. Lender shall be named as the person to be paid under such policy in the event of loss. If required by Lender, Grantor must deliver a copy of the policy and proof of the payment of premiums to Lender. If Grantor fails to meet any of these requirements, Lender may, but does not have to, obtain collateral protection insurance on Grantor's behalf at Grantor's expense. AUTHORIZATION. For purposes of insurance coverage on the Collateral, I authorize Lender to provide to any person (including any insurance agent or company) all information Lender deems appropriate, whether regarding the Collateral, the loan or other financial accommodations, or both. I ACKNOWLEDGE HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANCE AND AGREE TO ITS TERMS. THIS AGREEMENT IS DATED FEBRUARY 13, 2013. GRANTOR: X c0p.4_,1.r aQ .7t• 6..1 0 Desiree Fails 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: 77099991263C BORROWER NAME: DESIREE FAILS PROPERTY ADDRESS: 921 AVENUE H, HUNTSVILLE, TX 77320 MAILING ADDRESS: f 1,71)E4.. (.p 2 (oCp Hum 5 el; Ile Text S 7 7 3 (IL HOME PHONE: WORK PHONE: CELL PHONE: q 3 (0 - acy)-22..k© NEAREST RELATIVE (not living with you) CONTACT NAME AND PHONE NUMBER: 9,c,c ',� '�,�, ( ems 13c.- -29 Z ?�C7 TDHCANSPINITIALLNCONTACTINFO Page 1 of I Texas Neighborhood Stabilization Program (NSP) Homebuyer Assistance Deferred Forgivable Subordinate Lien Note ( "Note ") Date: FEBRUARY 13, 2013 Borrower: DESIREE FAILS Borrower's Mailing Address: 921 AVENUE H HUNTSVILLE, WALKER County, TX 77320 Lender: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas ( "TDHCA ") Lender's Mailing Address: 211 East 11th St., Austin, Texas 78701 P.O. Box 13941, Austin, Texas 78711 -3941 PROPERTY (which includes the real property and improvements thereon): 921 AVENUE H [Property Address] HUNTSVILLE WALKER TX 77320 [City] [County] [State] [Zip] more specifically described as, SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. [Legal Description] hereinafter referred to as "Property." 1. BORROWER'S PROMISE TO PAY Borrower promises to pay U. S. Thirty Thousand And No /100 Dollars ( "$30,000.00 ") ( "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 Ten percent (10 %) 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 10 equal annual installments of Three Thousand And No /100 Dollars ($3,000.00) each year beginning MARCH 01, 2014 (the "First Anniversary"), and shall continue annually until MARCH 01, 2023, the expiration of 10 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 TDHCANSPNOTEHBA Page I of 5 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 10% of Principal, Amount per year beginning on the First Anniversary and continuing annually until Maturity Date. (C) Place of Payment Borrower will make payment(s) at P. 0. Box 13941, Austin, Texas 7871 1- 394 1or at a different place if required by the Note Holder. (D) Due on Sale/Repayment If one of the following events should occur before said Maturity Date, the unpaid and unforgiven balance of this Note shall be immediately due and payable and Note Holder may invoke any remedies provided under the NSP Subordinate Deed of Trust securing this Note: (a) the note executed by Borrower made payable to FIRST FINANCIAL BANK( "First Lien Lender "), in the amount of $$33,650.00, of even date with this Note, hereinafter the "Superior Lien Note(s)" is paid in full upon its maturity and according to its terms; or (b) the Superior Lien Note(s) is refinanced in whole or in part or is assumed by a new borrower without the consent of the Note Holder; or (c) the unpaid balance(s) of the Superior Lien Note(s) becomes due and payable in full for any reason (whether by acceleration or according to its terms, and including, without limitation, because any maker of the Superior Lien Note(s) is in default); or (d) all or any part of the Property, or any interest in it, is leased, transferred or conveyed without Note Holder's prior, written consent; or (e) Borrower ceases to occupy the mortgaged property as his or her principal residence. If the collateral is residential real property containing fewer than five dwelling units or a residential manufactured home occupied by Borrower, exceptions to this provision are limited to (a) a subordinate lien or encumbrance that does not transfer rights of occupancy of the property; (b) creation of a purchase money security interest for household appliances; (c) transfer by devise, descent, or operation of law on the death of a co- owner; (d) grant of a leasehold interest of three years or less without an option to purchase; (e) transfer to a spouse or children of owner or between co- owners; (f) transfer to a relative of owner or on owner's death; and (g) transfer to an inter vivos trust in which owner is and remains a beneficiary and occupant of the property. (E) Recapture Upon the sale of the mortgaged property, any unpaid or un- forgiven balance of the Note shall be due and payable in full from the available Net Proceeds from the sale of the mortgaged property pursuant to 24 CFR §92.254. Net Proceeds of a sale are the sales price of Property minus the closing costs, any superior lien loan repayment and any other necessary transaction costs. If the Net Proceeds are insufficient to repay the outstanding balance of the Note in full and Borrower's investment (which includes any portion of initial down payment paid by Borrower combined with the value of any capital improvements made with Borrower's funds), the Borrower's investment is paid in full first from the available proceeds from the re -sale and the Note is repaid to the extent that proceeds are available, but only in the event the mortgaged property was sold for an amount not less than the current appraised value as then appraised by the appropriate governmental authority without TDHCANSPNOTEHBA Page 2 of 5 the consent of Lender. If there are no Net Proceeds and the mortgage property was sold for an amount not less than the current appraised value as then appraised by the governmental authority, repayment of the Note is not required. 4. BORROWER'S RIGHT TO PREPAY Borrower has the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment." Borrower may make a full prepayment or partial prepayments without paying any prepayment charge. The Note Holder will use all of the prepayments to reduce the amount of principal that Borrower owes under this Note. If Borrower makes a partial prepayment, there will be no changes in the due date or in the amount of the payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES: NO USURIOUS INTENT If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (i) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. The Note Holder may choose to make this refund by reducing the principal owed under this Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Default If Borrower does not make the full amount of the annual payment on the date said annual installment payment is due, Borrower will be in default. Additionally, Borrower will be in default under this NSP Deferred Subordinate Lien Note: (i) if Borrower fails to perform any obligation required of Borrower under the deed of trust securing this Note or takes any action prohibited under the deed of trust securing this Note, (ii) if any representations made by Borrower in connection with this loan was false in any material respect when made, or (iii) if any default occurs under the Superior Lien Note(s) described herein or under the deed of trust securing said Superior Lien Note(s). Any default under the NSP Subordinate Deed of Trust securing this Note shall be deemed to be a default under this Note. (B) Notice of Default If Borrower is in default, the Note Holder may send Borrower a written notice telling Borrower that if Borrower does not pay the overdue amount by a certain date, the Note Holder may require Borrower to pay immediately the full amount of principal which has not been paid. That date must be at least 30 days after the date on which the notice is delivered or mailed to Borrower. (C) No Waiver By Note Holder Even if, at a time when Borrower is in default, the Note Holder does not require Borrower to pay immediately in full as described above, the Note Holder will still have the right to do so if Borrower is in default at a later time. TDHCANSPNOTEHIA Page 3 of 5 (D) Payment of Note Holder's Costs and Expenses If the Note Holder requires Borrower to pay immediately in full as described above, the Note Holder will have the right to be paid and reimbursed for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice to Borrower under this Note will be given by delivering it or by mailing it by first class mail to Borrower at the Property Address above or at a different address if Borrower gives the Note Holder a notice of the changed in address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3 above or at a different address if Borrower is given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. 9. SUBORDINATION TO SUPERIOR LIENS This is a subordinate lien note, subject and subordinate in all respects to the lien, terms, covenants and conditions of the Superior Lien Note(s) described herein and the deed of trust securing payment of said Superior Lien Note(s). Borrower understands that any default under the Superior Lien Note(s) described herein or the deed of trust securing it will be a default under this Note. The lien(s) securing this Note is /are subordinate to the lien securing another note in the original principal amount of Thirty -Three Thousand Six Hundred Fifty And No /100 Dollars ($33,650.00), dated 2/13/2013 and executed by DESIREE FAILS, payable to the order of FIRST FINANCIAL BANK. 10. WAIVERS Borrower and any other person who has obligations under this Note waive notice of intention to accelerate, except as provided in except as provided in Section 6 (C) above, and the rights of presentment and notice of dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11. SECURITY FOR PAYMENT This Note is secured by a vendor's lien granted in a deed to Borrower dated the same date as this Note and the liens and security interests granted in the NSP Subordinate Deed of Trust (the "Security Instrument "), dated of even date herewith, from Borrower to Timothy K. Irvine, Trustee, for the benefit of Lender, upon and against the Property. 12. GOVERNING LAW The laws of the State of Texas and applicable federal law shall govern this Note. If applicable federal law permits any charge, fee or other item that is contracted for, charged, taken, reserved or received under this Note TDHCANSPNOTEHBA Page 4 of 5 which is not permitted or in excess of the amount permitted under Texas law, the applicable federal law shall control. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. c9 W • -e,'Q4 DESIREE FAILS TDHCANSPNOTEHBA Page 5 of 5 (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower Exhibit A Being a 0.179 of an acre (7,812 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of Lot 1 of the Oakwood View Subdivision, as recorded in Volume 4, Page 25 of the Map Records of Walker County, Texas; said 0.179 of an acre of land being more particularly described by metes and bounds as follows: BEGINNING at a 1/2-inch iron rod with aluminum cap found for the southwest corner of said Lot 1, being at the intersection of the northerly right -of -way line of 10th Street and the easterly right -of -way line of Avenue H (based on a width of 75 feet); THENCE, North 01 °59 °57" West, a distance of 83.39 feet, along the westerly line of said Lot 1 and the easterly right -of -way line of Avenue H to a'' /2 -inch iron rod with cap found for the northwest corner of said Lot 1 and the southwest corner of Lot 2, of said subdivision; THENCE, North 88 °00' 03" East, a distance of 93.38 feet, along the common line of said Lots 1 and 2 to a 1/2-inch iron rod with aluminum cap found in an easterly line of said subdivision, being the northeast corner of said Lot 1, the southeast corner of said Lot 2 and in the westerly line of that certain'tract of land conveyed to Omesa Mills Walker (currently owned by Patricia Robinson), and described in Volume 52, Page 611 of die. Official Public Records of Walker County, Texas; THENCE, South 02 °59' 59" East, a distance of 82.65 feet, along the common line of said Lot 1 and said Robinson tract to a''% -inch iron rod with aluminum cap found in the northerly right -of -way line of 10th Street, being the southeast corner of said Lot 1 and the southwest corner of said Robinson tract; THENCE, South 87 °32'54" West, a distance of 94.82 feet, along the northerly right -of- way line of 10th Street and the southerly line of said Lot 1 to the Point of Beginning and containing 0.179 of an acre of an acre of land. EXHIBITt "A" PAGE -LOFL RI rinno∎awa HUNTSVILLE, TEXAS 77340 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: FEBRUARY 13, 2013 Grantor: DESIREE FAILS, A SINGLE PERSON Grantor's Mailing Address: 921 AVENUE H, HUNTSVILLE, TX 77320 Trustee: Timothy K. Irvine of Travis County, Texas Trustee's Mailing Address: P.O. Box 13491 Austin, Travis County, Texas 78711 Beneficiary TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas. Beneficiary's Mailing Address: 211 East 11th Street Austin, Travis County, Texas 78701 NSP Deferred Forgivable Subordinate Lien (Note): Date: Of even date herewith. Original principal amount: Thirty Thousand And No /100 Dollars ($30,000.00) Maker: DESIREE FAILS Payee: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas Maturity date: MARCH 01, 2023 Terms of Payment: As provided therein Property: SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. Prior Liens: TDHCANSPDOTHBA Page 1 of 9 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]: ri Adjustable Rate Rider (T.., Balloon Rider 1` 1 -4 Family Rider GRANTOR: fl Condominium Rider 17 Planned Unit Development Rider rl Biweekly Payment Rider r Second Home Rider ri Renewal & Extension Addendum rl Other(s) [specify] [OA,y_..ij DESIREE FAILS TDHCANSPDOTHBA Page 8 of 9 (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower [Space Below This Line For Acknowledgment' State of TEXAS § County of WALKER § Before me, a Notary Public, on this day personally appeared DESIREE FAILS known to me (or proved to me on the oath of or through [description of identity card or other document] to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. /, Given under my hand and seal of office this `3 day of G' �ed (Seal) My Commission Expires: _let yhilli*, ,J� D -PRY NU. ;..liA-1. g. iok PREPARED BY: s BLACK, MANN & GRAHAM, L �p Tq�oFtsPS FLOWER OUND, TX 75028 / / / /�� // 4l i 4�1�e‘'�,�\` (972)- 353 -4174 Es etend fficer Title of Officer , A.D. AFTER RECORDING RETURN TO: Texas Department of Housing and Community Affairs NSP Program Division P.O. Box 13941 Austin, Texas 78711 -3941 ATTN: JONIEL CRIM TDHCANSPDOTI-IBA Page 9 of 9 Exhibit A Being a 0.179 of an acre (7,812 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of Lot 1 of the Oakwood View Subdivision, as recorded in Volume 4, Page 25 of the Map. Records of Walker County, Texas; said 0.179 of an acre of land being more particularly described by metes and bounds as follows: BEGINNING at a'' /z -inch iron rod with aluminum cap found for the southwest corner of said Lot 1, being at the intersection of the northerly right -of -way line of 10th Street and the easterly right -of -way line of Avenue H (based on a width of 75 feet); THENCE, North 01 °59 °57" West, a distance of 83.39 feet, along the westerly line of said Lot 1 and the easterly right -of -way line of Avenue H to a''% -inch iron rod with cap found for the northwest corner of said Lot 1 and the southwest corner of Lot 2, of said subdivision; THENCE, North 88 °00' 03" East, a distance of 93.38 feet, along the common line of said Lots 1 and 2 to a'' /2 -inch iron rod with aluminum cap found in an easterly line of said subdivision, being the northeast corner of said Lot 1, the southeast corner of said Lot 2 and in the westerly line of that certain tract of land conveyed to Omesa Mills Walker (currently owned by Patricia Robinson), and described in Volume 52, Page 611 of the. Official Public Records of Walker County, Texas; THENCE, South 02 °59' 59" East, a distance of 82.65 feet, along the common line of said Lot 1 and said Robinson tract to a'' /2 -inch iron rod with aluminum cap found in the northerly right -of -way line of 10th Street, being the southeast corner of said Lot 1 and the southwest corner of said Robinson tract; THENCE, South 87 °32'54" West, a distance of 94.82 feet, along the northerly right -of- way line of 10th Street and the southerly line of said Lot 1 to the Point of Beginning and containing 0.179 of an acre of an acre of land. EXHIBIT "A" PAGE =4FJ Form W -9 (Rev. December 2011) Department of the Treasury Internal Revenue Service Request for Taxpayer Identification Number and Certification Give form to the requestor. Do Not send to the IRS. c 0 0 0. U ...-- N 0 . O .. _ n a2 G1 0. at m Name (as shown on your income tax return) DESIREE FAILS Business name /disregarded entity name, if different from above Check appropriate box Classification (required): rr Individual /Sole proprietor ri C Corporation ri S Corporation .r Partnership rr. Trust/estate (.r Limited liability company. Enter the tax classification (C =C corporation, S =S Corporation, P= partnership) • C' Other (see Instructions) • Address (number, street, and apt, or suite no.) 921 AVENUE H %r Exempt payee City, state, and ZIP code HUNTSVILLE, TX 77320 Requestor's name and address (optional) List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on the "Name" line to avoid backup withholding. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose number to enter. Part II Certification Social Security number 465 -47 -7004 Employer identification number Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. See the instructions on page 4. Sign Signature of Here U.S. Person ■ Date • General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA. Use Form W -9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to: 1. Certify the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income. Note. If a requester gives you a form other than Form W -9 to request your TIN, you must use the requester's form if it is substantially similar to this Form W -9. Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: • An individual who is a U.S. citizen or U.S. resident alien, • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, • An estate (other than a foreign estate), or • A domestic trust (as defined in Regulations section 301.7701 -7). Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax on any foreign partners' share of income from such business. Further, in certain cases where a Form W -9 has not been received, a partnership is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W -9 to the partnership to establish your U.S. status and avoid withholding on your share of partnership income. The person who gives Form W -9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States is in the following cases: • The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X Form W -9 (Rev. 1 -2011) 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 Walker; ounty properties properties Contact: Walker County Appraisal District P. 0. Box 1798 Huntsville, Texas 77342 -1798 Phone: 936-295-1' 12 Buyer Date FOR San Jacin 'o Coun Con San Ja ' o County Appraisal District P. O.: ox 70 Cole pring, Texas 77331 P ne: 936- 653 -1450 Buyer Date File No.: 2012111159 RECEIPT OF COPIES The undersigned parties acknowledge that they have received copies of all the documents signed at the closing. Due to space restrictions and the cost of storage, Walker County Title Company will not retain copies of all the documents the undersigned is receiving today. It is the sole responsibility of the undersigned and is not the responsibility of Walker County Title Company to maintain the records delivered today. In the event the undersigned needs copies of the documents in the future, they must be obtained from third parties, such as a lender or other provider involved in this transaction. SELLER SELLER C4r�' BUYER BUYER ATTENTION LENDERS Walker County Title Company does not retain copies of lender documents. 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 $30,000.00 of even date to the Texas Department of Housing and Community Affairs, a public and official agency of the State of Texas ( "Lender "), to -wit: SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. Whereas, said Deed of Trust and Note contain federal HOME Program due on sale clauses and affordability requirement provisions under 24 CFR Section 92.254 associated with and as adopted by the Texas NSP Homebuyer Assistance Program loan. 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 10, (MARCH 01, 2023) years and repay the loan to the Lender according to the terms of the Note and Deed of Trust and that if 1 /we should sell or move from the Property prior to the end of 10 (MARCH 01, 2023) 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 /2 day of BORROWER: ,202. By: (Y.Q✓a.ta.R.R— �i By: Name: DESIREE FAILS Name: Title: Title: By: By: Name: Name: Title: Title: TDHCANSPDUEONSALEHBA Page I of I 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 921 AVENUE H, HUNTSVILLE WALKER County, TX 77320 dated FEBRUARY 13, 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. DESIREE FAILS - Borrower - Borrower - Borrower - Borrower - Borrower - Borrower THE STATE OF TEX , COUNTY OF L— /� / /42-L X ore me, this instru a signed `r,'j Of {QS * /.. •• 41201 ••0 , \a`\~1 (SEAL) ACKNOWLEDGEMENT and acknowledged one / 20 L by THE STATE OF TEXAS COUNTY OF .y) Notary ublic, t t of Texas My Commission Expires: [Typed / Printed Name] f4; z^! f Before me, this instrument was signed and acknowledged on , 20 by Notary Public, State of Texas (SEAL) My Commission Expires: TDHCANSPOCCUPAN Page 1 of I [Typed / Printed Name] Applicants /Borrowers: DESIREE FAILS Property Address: 921 AVENUE H, HUNTSVILLE, TX 77320 Loan No: 77099991263C 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 $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We received, read, and executed this written Notice. DESIREE FAILS STATE OF ( TEXAS ) COUNTY OF ( WALKER ) Ii � 0 This instrument p �� �J Pl%•• �. / (Seal) • •4a.�pt�Y (i�; : L • d before me on 3, 2c'/3 by DESIREE FAILS . Notary Publi /State EXAS or prima name: My co fission expit$s: ; % P5 • ]rotary's typ 41 i B f 001111610`\\\,` TXPENALTYB1 Page 1 of 1 Applicants /Borrowers: DESIREE FAILS Property Address: 921 AVENUE H, HUNTSVILLE, TX 77320 Loan No: 77099991263C 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. 0/4 ,-2 DESIREE FAILS STATE OF ( TEXAS ) COUNTY OF ( WALKER ) (Seal) This instrument was acOtN� pre me on �\\ �0 4 -SPR VP'. 0 /9 /••• k Notary k My c mission expire: -� - 22/(, (f;9 ATAIotaryS' ' 1 81 H I I 1 l 11 0 ic, Stat ped or p TXPENALTYB1 Page 1 of 1 by DDEESIREE FAILS . SURVEY AND TITLE LETTER I /We the undersigned Borrower(s) hereby certify that I /we have received, reviewed, and approved a copy of the attached survey which is incorporated hereto by reference and have signed or initialed and dated same for identification purposes. I /We am /are aware of the indicated encroachments, protrusions, easements, limitations, access, dimensions, and /or other conditions shown on the survey. I /We further certify that the Settlement Agent has provided me /us with a copy of the Commitment for Title Insurance and that I /we have reviewed and consent to all of the exceptions to title which would appear in an Owner's Title Policy for the Property. IN CONSIDERATION OF THE LENDER MAKING A LOAN TO BORROWER(S), I /WE HEREBY HOLD LENDER HARMLESS FROM ANY COMPLAINT ARISING AS A RESULT OF ANY MATTERS INDICATED IN THE SURVEY, THE EXCEPTIONS STATED IN THE COMMITMENT FOR TITLE INSURANCE, AND THE OWNER'S AND MORTGAGEE TITLE INSURANCE POLICIES. IN ADDITION TO BUT NOT IN LIEU OF THE ABOVE AND FOR THE CONSIDERATION RECITED ABOVE, I /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 DOES NOT FOLLOW PROPERTY LINE DRIVEWAY ENCROACHES EASEMENT EXECUTED this 43 day of BORROWER: LP2 k DESIREE FAILS TDHCANSPSURVEY Page I of 1 , (3 Please give this letter to borrower at closing. FEBRUARY 13, 2013 DESIREE FAILS 921 AVENUE H HUNTSVILLE, TX 77320 Re: Loan Number 77099991263C Dear DESIREE FAILS: 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 MARCH 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 77099991263C MARCH 01, 2014 DESIREE FAILS Principal & Interest: Escrow: Total Payment: TDHCANSPPAYLTRHBA Page I of I $3,000.00 $0.00 $3,000.00 (if not forgiven)