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2012 NSP TDHCA promissory docs 770999991266Dear NSP Borrower, Enclosed please find the original Promissory Note and recorded Deed of Trust documents associated with your loan through TDHCA, which has been fully released. Please archive these documents with any other original documents associated to loan number 1709999 If you have any questions, please contact Melissa M. Whitehead by email at melissa .whiteheadptdhca.state.tx.us. You may also call (800) 298 -4013 or (512) 475-3349. IT HAS BEEN A PLEASURE DOING BUSINESS WITH YOUR ORGANIZATION. PAID IN FULL Liu w'I1 799994246 PROMISSORY NOTE ( "Note ") U.S. $594,033.20 June ,2012 NEIGHBORHOOD STABILIZATION PROGRAM ( "NSP ") Awarding Federal Agency: United States Department of Housing and Urban Development TDHCA Federal Award Number: B- 08 -DN -48 -0001 Federal Award Year (Year of Award from HUD to TDHCA): 2008 TDHCA Award Year (Year of TDHCA Board Approval): 2009 For value received, CITY OF HUNTSVILLE, a political subdivision of the State of Texas( "Maker ") promises to pay to the order of TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas ( "Payee ") at 221 E. 11th Street, P.O. Box 13941 in the City of Austin, Travis County, Texas 78711 -3941 (or at such other place in Austin, Travis County, Texas, as Payee may from time to time designate by written notice to Maker), the sum of Five Hundred Ninety Four Thousand Thirty Three and 20/100 Dollars $594,033.20, or so much thereof as may be advanced and outstanding, together with interest on the principal balance from the date hereof at a rate equal to Zero percent (0 %) per annum. No interest shall accrue on this Note unless the maturity of this Note has been accelerated as hereinafter provided. The principal and interest, if any, of this Note shall be due and payable upon the sale of the developed real property described below or on August 31, 2012, whichever occurs first ( "maturity "). Payee agrees to defer and waive repayment of the principal loan amount, but only in the event Maker: (1) has not at any time been in default under any terms of this Note or any document securing payment of this Note, including without limitation, the Deed of Trust; (2) has complied with the affordability requirements to wit, the rehabilitated or newly constructed single family residential dwelling must be set aside for an individual or family whose annual income does not exceed 120% of the area median income as defined in the Housing and Economic Recovery Act 2301(f)(3)(A)(i) and (ii) of 2008 ( "Eligible Household "); (3) has sold all the rehabilitated or newly constructed single family residential dwellings at an aggregate sales price not to exceed $594,033.20 (an amount equal to the acquisition cost of the property and cost to construct all single family residential dwellings to a decent, safe, and habitable condition); (4) has converted the deferred, waived principal loan amount to a permanent mortgage loan and /or down payment assistance loan under the NSP Program to an Eligible Household; and (5) has submitted to Payee evidence fully executed and recorded, if applicable, homebuyer assistance loans in a total amount not to exceed $594,033.20. Upon maturity or the sale of the last developed lot to an Eligible Household, whichever is earlier, any deferred, unpaid and unwaived balance remaining hereunder shall be forgiven, but only in the event Maker has not at any time been in default under any terms of this Note or any document securing same. T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Note - for reimbursement_20120227_v4.doc Page 1 of 6 DRIGINAL Computations of interest on the unpaid principal balance of this Note shall be made on the basis of 365 or 366 days in a year, as applicable. After maturity (by acceleration or otherwise) and until paid, the unpaid, unwaived principal balance and accrued interest then due shall bear interest at the lesser of (i) ten percent (10 %) per annum or (ii) the highest interest rate allowed by Applicable Law ( "Default Interest Rate "). Notwithstanding any other provision of this Note, the daily Default Interest Rate shall be calculated by dividing the Default Interest Rate per annum applicable for such day by the actual number of days in the calendar year (whether 365 or 366). This Note may be prepaid in part or in its entirety at any time, without notice or penalty but any amounts prepaid may not be reborrowed. Partial prepayment shall be applied first to accrued and unpaid interest, if any, with the balance to the principal installments in inverse order of maturity. Any payment received more than thirty (30) days before it is due shall be considered a prepayment, unless Maker otherwise designates in writing at the time such payment is made. Any amounts owing on this Note shall be payable at the address of Payee stated above (or at such other place in Austin, Travis County, Texas designated by Payee in writing delivered to Maker at the address of Maker set forth above) in lawful money of the United States of America that is legal tender for public and private debts at the time of payment. The making of any payment in other than immediately available funds, which Payee, at its option, elects to accept shall be subject to collection, and interest shall continue to accrue until the funds by which such payment is made are available to Payee for its use. If any payment required under this Note is not paid within 15 days after it becomes due and payable, then Maker shall pay to Payee, subject to the provisions of this Note limiting the amount of interest, the payment of a late charge (the "Late Charge ") to compensate Payee for the loss of use of funds and for the administrative expenses and costs of handling such delinquent payment equal to a one -time charge of five percent (5.00 %) of the amount of such payment that was not timely paid (but such Late Charge together with all interest payable hereon shall not exceed the maximum lawful rate under Applicable Law). The term "Applicable Law" as used herein means (1) the law pertaining to maximum rates of interest that is now in effect and (2) any law that comes into effect at any time in the future allowing a higher maximum interest rate than the law now in effect. Payee is not obligated to accept any past due payment that is not accompanied by a Late Charge, but may accept such payment without waiving its rights to collect the Late Charge. In no event shall a Late Charge be payable by reason of the acceleration of the indebtedness evidenced by this Note; therefore, a Late Charge would only be due and payable with respect to payments under this Note which became delinquent prior to the acceleration of the indebtedness evidenced hereby. Maker shall pay a charge of $25.00 for any check returned for any reason. If this Note is placed in the hands of an attorney for collection or is collected by legal proceedings of any kind, Maker agrees to pay all costs of collection, including reasonable attorneys' fee and costs to the extent allowed by law. T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Note - for reimbursement_20120227_v4.doc Page 2 of 6 Except as provided in this Note, Maker and each endorser and guarantor of this Note jointly and severally waive grace, presentment for payment, notice of renewals and extensions, notice of nonpayment, notice of protest, notice of and demand for payment of installments or other amounts coming due under this Note that are not paid when due, notice of intent or election to accelerate maturity or the actual acceleration of maturity of the indebtedness evidenced by this Note, and diligence in the collection of this Note, in filing suit on this Note and in seizing or foreclosing on any collateral securing this Note and agree to one or more extensions of maturity and partial payments before or after maturity without prejudice to rights of the holder of this Note. $559,033.20 is for payment of the construction costs and $35,000.00 of this Note is for the reimbursement of acquisition costs for the Property which is secured by an implied or equitable lien on the Property by operation of law in a Feneral Warranty Deed executed by William Harold Vann, Fannie Earline Vann, Vann G. Hawkins, Sr., and Lorrissa R. Lincoln, to Maker herein, dated September 29, 2010, filed for record on September 29, 2010, under Clerk's Document No. 00006463, Volume 955, Page 720, of the Official Public Records of Walker County, Texas (the "Records "). This Note is additionally secured by the liens and security interests granted in the interim construction deed of trust (with security agreement and assignment of rents) ( "Deed of Trust ") dated of even date herewith from Maker to Timothy K. Irvine, Trustee for Payee conveying the following property (hereinafter referred to as the "Property "): More particularly described in Exhibit A, attached hereto and made a part hereof. Any default under the Deed of Trust securing this Note shall be deemed to be a default under this Note. IF ANY PART OF THE COLLATERAL SECURING THIS NOTE IS TRANSFERRED OR CONVEYED WITHOUT PAYEE'S PRIOR CONSENT, THIS NOTE IS IMMEDIATELY DUE AND PAYABLE AND PAYEE MAY INVOKE ANY REMEDIES PROVIDED UNDER THE DEED OF TRUST SECURING THIS NOTE. If the collateral is residential real property containing fewer than five dwelling units or a residential manufactured home occupied by Maker, exceptions to this provision are limited to (a) a subordinate lien or encumbrance that does not transfer rights of occupancy of the property; (b) creation of a purchase money security interest for household appliances; (c) transfer by devise, descent, or operation of law on the death of a co- owner; (d) grant of a leasehold interest of three years or less without an option to purchase; (e) transfer to a spouse or children of owner or between co- owners; (f) transfer to a relative of owner or on owner's death; and (g) transfer to an inter vivos trust in which owner is and remains a beneficiary and occupant of the property In the event of default in the payment of any part of the principal or interest on this Note and Maker's failure to cure the default within thirty (30) days after Payee's delivery of written notice of default to Maker, or in the event of default in the performance of any other agreement contained in the Loan Agreement or any document securing the payment of this Note or otherwise executed in connection herewith, and Maker's failure to cure the default within thirty (30) days after Payee's delivery of written notice of the default to Maker, then the holder of this Note shall have the unconditional right, without demand, notice, or other action, to declare the unpaid principal balance of T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Note - for reimbursement_20120227_v4.doc Page 3 of 6 this Note, together with interest accrued on the unpaid principal balance, at once due and payable and to foreclose each lien and security interest securing the payment of this Note, either under any power of sale contained in any documents creating such lien or security interest or by court proceedings, as the holder may elect. Notice shall be deemed to have been delivered upon actual receipt or upon deposit, if deposited in an official depository of the United States Postal Service, properly addressed to the party entitled to the notice, marked certified mail, return receipt requested, and containing sufficient postage. For the purpose of notice, Maker's address is 1212 Avenue M Huntsville, Walker County, Texas 77340. Maker shall have the right to change its address and specify any other address within the United States of America by at least ten (10) days' written notice to Payee. All agreements and transactions between Maker and Payee, whether now existing or hereafter arising, whether contained herein or in any other instrument, and whether written or oral, are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of the maturity hereof, prepayment, demand for payment or otherwise, shall the amount contracted for, charged or received by Payee from Maker for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the maximum amount permissible under Applicable Law, it particularly being the intention of the parties hereto to conform strictly to the law of the State of Texas and of the United States of America, whichever is applicable. Any interest payable hereunder or under any other instrument relating to the loan evidenced hereby that is in excess of the legal maximum under Applicable Law, shall, in the event of acceleration of maturity, prepayment, demand for payment or otherwise, be automatically, as of the date of such acceleration, prepayment, demand or otherwise, applied to a reduction of the principal indebtedness hereof and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of such principal, such excess shall be refunded to Maker. To the extent permitted by Applicable Law, determination of the legal maximum amount of interest shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the period of the full stated term of the loan, all interest at any time contracted for, charged or received from Maker in connection with the loan, so that the actual rate of interest on account of such indebtedness is uniform throughout the term thereof. This Note shall be governed by and construed in accordance with the laws of the State of Texas and the United States of America from time to time in effect. Notwithstanding anything herein to the contrary, Payee shall have no recourse against Maker, nor against any guarantor, if any, for payment and performance of all of the obligations, covenants and agreements of Maker under this Note and the documents securing same including, but not limited to the Deed of Trust (said documents hereafter collectively called "Security Documents "), except to the full extent of all of the Property which constitutes security for this Note. If default occurs in the timely and proper payment of any portion of such indebtedness or in the timely performance of any of such obligations, agreement or covenants, any judicial proceedings brought by Payee against Maker or any guarantor shall be limited to the protection and preservation of the Property, the preservation, enforcement and foreclosure of the liens, mortgages, assignments, rights and security interests now or at any time hereafter securing the payment of the Note, and enforcement and collection of obligations, covenants and indebtedness for which Maker and any guarantors remain liable as provided in this paragraph. If there is a foreclosure of any such liens, mortgages, assignments, rights, and security T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Note - for reimbursement_20120227_v4.doc Page 4 of 6 interests securing the payment of this Note, by power of sale or otherwise, no judgment for any deficiency upon such indebtedness shall be sought or obtained by Payee against Maker. Notwithstanding the foregoing provisions of this paragraph or any other agreement, Payee shall have full recourse against Maker and all guarantors, if any, for: (a) fraud or misrepresentation by Maker or any guarantor in connection with the transactions herein contemplated; (b) failure to pay taxes, assessments, charges for labor or materials or other charges that can create liens on any portion of the Property; (c) the misapplication of (i) proceeds of insurance covering any portion of the Property, or (ii) proceeds of the sale or condemnation of any portion of the Property, or (iii) rentals received by or on behalf of Maker subsequent to the date on which Payee gives written notice of the posting of foreclosure notices, (d) failure to prevent waste to the Property unless Payee is compensated therefor by insurance proceeds collected by Maker; (e) the return to Payee of all unearned advance rentals and security deposits paid by tenants of the Property and not refunded to or forfeited by such tenants, (f) the return of, or reimbursement for, all personalty taken from the Property by or on behalf of Maker, (g) all court costs and for all attorneys' fees provided for in any instrument governing, securing or pertaining to the payment of the Note; and (h) failure to comply with any indemnification provision or covenants pertaining to environmental matters contained in the Security Documents. Each term and provision of this Note is expressly subject to the terms and conditions of the Neighborhood Stabilization Program Contract # 77099999126 executed between Office of Rural Affairs established within the Department of Agriculture, a public and official agency of the State of Texas, formerly known as Texas Department of Rural Affairs, and Maker herein, dated to be effective September 1, 2009 in the original amount of $1,050,000.00, as assigned and transferred to Payee by Assignment of Contract on August 30, 2011, and as amended and extended and as may be further amended from time to time ( "NSP Contract "), which provides acquisition and rehabilitation or new construction of lot(s) development under the NSP; said NSP Contract is incorporated herein by reference. The terms of the NSP Contract shall govern over any conflicting provisions hereof. THIS WRITTEN AGREEMENT AND THE OTHER WRITTEN AGREEMENTS, INCLUDING THE COLLATERAL AGREEMENTS, SIGNED CONTEMPORANEOUSLY WITH THE SIGNING HEREOF REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. T: \Idld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Note - for reimbursement_20120227_v4.doc Page 5 of 6 MAKER: CITY OF HUNTSVILLE, a political subdivision of the State of Texas By: Name: ac Woodw rd Title: Mayor T: \ldId\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Note - for reimbursement_20120227_v4.doc Page 6 of 6 Exhibit A- (Pages 1 -15) TRACT is BEING 0.185 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT ONE (1), VANN- JOHNSON SUBDIVISION, a subdivision in City of Huntsville. according to the map or plat thereof recorded in Volume 5. Page 81 of the Plat Records, Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A " attached hereto and made a pan hereof. TRACT 2: BEING 0.195 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT TWO (2), VANN- JOHNSON SUBDIVISION, a subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records, Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. TRACT 3: BEING 0.196 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County. Texas and being all of LOT THREE (3), VANN- JOHNSON SUBDIVISION, a subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81. of the Plat Records, Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. TRACT 4: BEING 0.196 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walter County, Texas and being all of LOT FOUR (4), VANN - JOHNSON SUBDIVISION,.* subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records, Wacker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. TRACT 5: BEING 0.196 of an acre of land, more or less, situated in the P. GRAY LEAGUE, 424, Walker County, Texas and being all of LOT FIVE (5), VANN - JOHNSON SUBDIVISION, a subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records, Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. TRACT 6: BEING 0.164 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT SIX (6), VANN- JOHNSON SUBDIVISION, a subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records, Wallcer County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. NOTE: The Company is prohibited from Insuring the area or quantity of land described herein. Any statement in the above legal description of the area or quantity of land is not a representation that such area or quantity is correct, but is made only for informational and/or identification purposes and does not override Item 2 of Schedule B hereof. Page 1 of 15 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc PARTIES AND BOVNDN IIESCUlPT10N of Lot 1 of VnnsJobuan Subdtvlaloa, RunMdSe,Teas Being a 0.115 of an acre (1,010 square feet) brat of land located In tbe Plaunt Gay Lope. Ababa 24, Walker Canny, Texas and being all of Let 1 of the Vann4ohneou Subdivision, as recorded In Voltam 5, Pap 11 of the Plat Records of Walker , Taco (P.R.W.C.t) acne deed mconloddud olume 955, Pep Pap 720 of the Official )�Recordsof Walker Count Teuaf (O..R.W.C.T,); said 0.115 of en care of land being more particularly described by mda and bounds as follows: DROWNING at a found 5/1 4tch Iron rod with cap at 611 soutbwuterly comer of that ceaeln called 50' Road as recorded In Volume 55, Pap 161 diked Recods of Wa1Wr County, Taco (D.RW.C.), being In the northerly Ike of that on1ak ailed 9.04 acre taut Oland conveyed to the City of Huatevillo by dad and recorded under Volume 110, Pap 99 died Dead Recede, come being the nordraly lbw of Second Street (50' Road Easement) of mead ender Volume 70, Pap 393 of aid Dad Ready and bring the southeasterly corner of said Lot 1 and said 1.17 acre trtat; THENCE, BOOM 86'31'13" West, • dletaaa of 50.19 hot, along the southerly lbw of said Lot 1 and said 1.17 tore beet, being the northerly 11nc of aid 9.04 tae test and said Second Street to e found 5/i inch Iron sod with cap at the simtheaetay corner of that esnaln tract of hod • conveyed to Plarine Raadle by deed and ',corded in Vohnne 179, Pap 541 of said Deed • Records, beln5lhe southwatedy comer of said Lot 1 and aid 1.17 acts Iraq PIT RRaandlee hut and sal LWert, nd ] 17 acre sta110.00 l 10 e hand 5/1 4nch ban nod with cap is the southerly line of Lot 2 clash VuuNolhneon SubdI nIon, Wag 611 sethastery oorner of said Flodie Randle knot, come being de nonhwesbrly caner ofaid Lot 1, and being and cones In the westerly line afraid 1.17 acre trash, THENCE, North 87•24'13" Eat, a distaaa of 10.17 hat, along the soutbery Ilna of cold Lot 2, being the uoAlacy line dish Lot 110 s fond 5/g -inch iron ad with cap In the wes041Y One of said 50' Road, being the southeasterly cemr of said Lot 2, ante belag 6e northeasterly comer of seal Lot and being lathe aetery line of aid 1.17 sae tram; THENCE, South 02'39'47" East, a Colones of 101.56 fist, along dm westerly tine of said 50' Road, being the eatery line of sold Lot 1 and said 1.17 acre tract to the !Ad of Deginatsg and containing 0.115 of an ass *florid. Horizontal Control Is band on holding City of HunNvllle Manumits No. 7574 (gild coordinate of North - 10,262,41531 & Posh' 3,102,009.473) and 7575 (grid 000rdlwq of North 10,262,526.24 & Ent- 3,101,780.755). Barley described are Mated tote Teas Coordinate System of 1913, Centel Zone. Winces shows are US Survey Pat la "PIe1d Horlmktal" units and may be converted to "GRID" units by multiplying by a combined sal, haler of 0 .99911. Plat craven date aeoompales Gila description.. Prepared by GeoSolutIous, LLC 25/14 Duda* Road Spring, Toms Tel. 281- 611.9766 Page 2 of 15 T: \Idid \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc R :rte SNO • MAO blOWIPIK• • Mre Mlle t ma raver. �.uw 'Mr' sic M wow %I II cl L. 4. 1011 sto.yare. vorkno'— 1 at:STA k co4 tit OPI Cg awlalrarr a rf Ago__ oo, IM IR 11 zosi "Mr" • U �d vane Id 1 �!i{ 1 mama! 1 1 rt�•ar. 1 Low oral swam 77 -w OP, RR a 1 Iwgr LOT 1 OF VANN-3OHNSON ar..M •i.► meg •• ww __ w rrr M • wr SUBDIVISION OF The PLEASANT . MAY MOUE, A -24 . s I•ww a•rr r IOW gm arm of of Mali 11••••••• NN WALKER COUNTY. TEXAS r. ��wwwwwlfw rMw. wpy -l•w. VA �� * *= . Solutions,LLC w „ r w dorm Mr IOW. l• •••••••••• p ~� - + • • ••r•o•• A .• •rr u.+W+• w /4L '=ice_— 'ZA.'.i1111111 _777111111A11111 MN= 011111 Page 3 of 15 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Exhibit A.doc I r Ml1'68 AND SO1 ND8 DLBCRIZTlON of Lot 2 of Vaawloimoe Subdivision, NontsvlJ., Tenn Being a 0.195 of an ism (1,512 agnate feet) tract eland located bt the Pleasant Gray Lagoa Abstract 24, Walker Coungr, Tau and being *N of Lot 2 of the Va"n.Johnwn Subdivision, r recorded In Volume 5, Pap 11 of*" Net Records of Walker Couayy, TOM (P.R.W.C.T.) some being a portion of that oedsln ailed 1.17 awe pent oflaud teamed tithe City otHunlsviM by deed and reworded ia Nolan 915, Pap 720 ofOtfelal public Ramada of Walker County, Terns (O.P.R.W.C.T.); said 0.191 of an acre of land being men particularly described by tastes and bounds a follows: BsG1NNING at a point in the weatgly Iles of that certain aged 50' Road as recorded in Volume 05, Pap 161 of Deed Records of Walker County, Toss (D.R.W.C.), being the southeast** caner of Lot 1 of aid Vamp/oho= OubdMalon, seas Wag the oomerof said Lot 2, being in the sesta*Nnaolrid 1.17 sore tract horn which "found h iron rod with cap boars South 57'23' Wry 0.421kaq u :NCI, South 02'35'47" Racy a distance 0157.00 Rat, sung 11a weapriy lbw of sold S0' Road, being *saute* gnu of rid Lot 2 and said 1.17 rte treat to a &and 5/O.Inoh Iron rod with cap at tin northaaesdy Darner of Lat 1 of old Vannhblsson Subdivision, being One southeasterly wear of said Lot 2, T110INCR, South 17'24'13" West, a Mums of 00.17 feet, along Oa northerly lino of said Lot 1, being the southerly line of said Lot 2 to a hand $/S -fnoh Iron rod with *at the uodhwnsry comer of wild Lot 1, being the northeasterly comer of that sssats1a tract of land conveyed to Florins Rutdle by deed and recorded in Vahan" 179, Pap 541 of said Deed Records. now being an el comer In the watery line of said 1.17 awn itaot; Ti1RNCI, Routh 00'31'13" Wort, a distance of 70.00 twit, along the northerly line of said Plod* Randle hall, being the southerly Has of said Lot 2, tune being the westerly Um of said 1.17 acre trace to a found N/ldmb Iron rod with cap in the outs* Rue of tiatoedabs alkd 0.21 acts twat of bad conveyed to IWO Bridal by deed sad recorded In Vc1oaa 94 pap 110 of said Deed Records, befog the northwedery wear of aid Florins Randle tract, some being the rathwestery.comer of said Lot 2; T13INCI, North 02'35'47" West, a Amu* of 55.64 tat, alongib. easterly Nor of said 0.21 acre mot, being he woody the of mkt Lot 2 and said 1.17 aura treat to a fbuatd 5/1.1och iron rod with o"p at the southwest.* corner of aid Lot 3, being the nathwas* corner Dried Lot 2 TURKS, North 17"24'13 "East, a dingoes of 150.16 feet, along the soalhvy line of said Lot 3, being the nativity lino ofald Lott to the Point of Bglanieg and containing 0.195 don acre of Wei. Page 4 of 15 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Exhibit A.doc Horizontal Control Is hosed an holding City of Huabvllis Monuments No. 7374 (grid oaondoale of North - 10,262,485.31 & Put.. 3,102,009473) and 7375 (grid eoonllaab of North 10,262,526.24 &Bat= 3,801,780.253). Badnp descrlbnd are related b the Texas Coordinate System of 1983, Cuiml Zone. Distances shown an 1)8 Survey Poet in "Field Horiwnbr unib and may be converted to "ORBY' "units by muldplyh:g by s combined sale War of 0.99911. Plat Maven dab accompenla Ibis description. Prepared by: CeoSoludons, LLC 25814 Budd. Road Wag, Texu Tel. 711-6814766 Job No. 11,249.027 Page 5 of 15 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Exhibit A.doc LEOE)10 .M .ONp Opt R ,- our 4. sa. 9 NMI NU 0 7NMtNW rt • (KNIWO w) MIN. —1~ PO= UO 77r. ItOn or AMMO f nasAILD. OA.�.0.1. MO4= *0*1 OJAI3CL M{Ndl t tf PIM rR1.4L WPM MYXOI =OM HMI *0.m 1' N 30' i I Nsari VPW R Ai% rdSirs;'r3`t"irer 01101 180.10• got we 1 ' P.. .•Sjm No, r tore ACRES R e 1�) 5a 4) %I DA Amur NO tl • °RA /•Q7. 1 11 a J 3N0.0/0710 !ham— N y� v to 7'0.00 ,I ft 8p7 7'W 00.1r V! ra .cc7a 7wR MI. M. /UMW IVJ MI. M. AA rn " g� h asaas i h I Wrt ERIMEYaxe COOTIFICATE 1 .NA, .Wily N M 01 p *NON. UN O* *.p •• ..w w M NINO .K4 .*lONl w Ammo N. ION MI Iw dbool..�1 owns* *mom M bb Mn /,KEW NONN M/ WRIT* owl NN EMI 1 ..NW N 7w M�1N�klli LIt. CY./RM t t./OJ. NOTE6 t'.n..OMi..6 7 .Y 4W.NN M...1 IM *NA of • N0. bo L *dm* W No W 1. NNW N W.1 NN .1 4 I *I IMw*.M NA 7074 ONO {.w.MN. N OWI.. I4Nt.M.al • cm. 3ADL000.473) Wnl N73 (.q .N.I.K. N NNp • 10. 101.001.14 k 1K1. 3.301.7*1*10 I .M. INMU W WNW N IM 71.q N..AN% SOW. .4 IMO. ONO* 0 CMNw NNE *. MI t.wfI 7K1 M •x101 N.gw1N' 044. soy N .m.W W M .NM N NANO* W• ...Nob NW ...Op M OINK L 1.•. N.1.,. MM. Moo SNW we Mw w NNO..rO.N .Mono NN M w *woo* Np nod M *NNW o4NN7 M M .Nn4M3 ..NM.KM3... 0. A MOO. 4•• NM •••.MwM. S.M W). 1 1 LOT 2 OF VANN - JOHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUe,'A -24 IN WALXER COUNTY, TEXAS Page 6 of 15 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Exhibit A.doc } METER AND BOUNDS DESCRIPTION of Lot 3 of Vann- dsbnssn SubdIvAba; Arnbvl ls, Texas Being a 0.196 of an acre (8,539 square get) tout of land baled In thePbasnt Oray Leaps, Abstract 24, Walker Canty, Taos and being all of Lot 3 Mkt Vm uWohnson Subdivision, u recorded in Voloms S, Pads 81 of 1M Plat Records of Walker County, Teen (P.R.W.C.T.) same babg a portion of that amain called 117 awe knot otbad *awned to the City of Huntsville by deed and monied In Volume 9SS, Page 720 ofOffielal PubIto Records of Walker Comity, Teza (O.P.R.W.C.T.) said 0.196 of an acre of tend being mows particularly described by mats and bounds as follows; Voa INO at a point In the westerly !hts of that certain ailed SO' Road u recorded ht S, Page 161 of Dead Records of Wallow County, Taros (D.R.W.C), being the northeasterly corner of Lot 2 of sold Vann,Iohnaoa Subdlvbtoe, am* bobs the southasterly corner of aid I.at 3, and Ming In 8m ash* line Maid 1.17 awe snot, Door which a found 5/8- inch iron rod wilh cap bun South 57•23' West, 0.42 het•, TIOBNCE, Bondi 87•24'13" Waal, a dlsbra of 150.16 tat, along the northerly line ofsaid Lot 2, being the southerly line of Bald Lot 3 to a ibad 5/8-inch iron rod wild cep in the easterly line of that certain Galled 0.21 nom tract of land conveyed to Holy Rmhdst by dad end recorded In Vohune 94, pap 180 of said Deed Records, Meg the nodhwataly comer of said Lot 2, was being the southwesterly Lot 3, and being tea the westerly line °field 1.17 core tract; THENCE, North 02.35'47" West, a dielanes of 57.00 het, along the sate* line of sold 0.21 come tract, being tits westerly lins of said Lot 3 and sold 1.17 acre Out to a found Si$ -Inch iron rod with imp at the southwesterly comer of Lot 4 of said Venn - Johnson Subdivision, Ming the northwester coma of said Lot 3; THENCE, North 87'34'13" Rost, a dbbne. of 150.16 stet, along the southerly lino of said Lot 4, being the northerly Has of sold Lot 3 to a !band 5/I4noh iron rod with cep in the westerly Iins of mid 50' Road, being aM southeasterly comer of said Lot 4, same being the northeasterly corner of aid Lot 3, and being In the easterly lka of said 1.17 Nero tract; THENCE, South 02•35'47" Eat, a diatoms of 57.00 het, along the wutorly Ilre of said SO' Road, Mang tin easterly line of said Lot 3 and sold 1.17 acre trot to the Point of Beginning and conteinIng 0.196 don oars of land. Horizontal Control le based on holding City of Huntsville Monuments No. 7574 (grkt coordinate of North - 10,262,41.6.31 & Bast" 3,102,009.473) and 7575 (grid coordinate of North 10,262,526.24 & Saar. 3,801,710.255). Baring, deur@ed am related to tits Times Coordinate System of 1983, Central Zona. Distances shown ate US Survey Feet in "Field Horizonte!' twits and may M converted to "ORID" units by multiplying by a combined scale factor of 0.99988. Piet of evan dots accompanies this description. Prepared by: OaoSolntions, LLC 25814 Budd. Road Spring, Tans Tel. 281-681-9766 Job No. 11. 249427 Page 7 of 15 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc • LEGEND a WAWA VAL 7a•0 744Ar•rlrll (rye NOM) _1_- Met U1D 777 mar Of •••••• atm art + IA,IAn 0 wwa wLNi ,.0..= =rag •Ymq 0.M.0.0.T. .•I N,R. •A.1LC.T. (>D�IAIff w/71 79a76• AA.r ll LOT, aTOl ACRES (4U39 sa� Clan An CHI W A7yMl'W!4t 17L 1,4 AWt al0 Oita ear 'VICO our SOMA r . !d * Ii Ip J am wit $a724'.s'W Way IE li In LOT IIANWOMION SUMMON . 0uweVOWE COMFICATE w. MGM , UN*/ N A. w N l IaW an 4* •r•.• owl •••• 1011 1144 w 1 U.1 ON •n*, Gems* IM 11•I • b •• .•••• bbyIM l N M YNw 1.• � P M M MMN , 1 Tnr N 814•64404 •••••■••• w CNA. f UCM NO a• emu. Off 1. 1•b loony w ••10•441 .IRAN I4 Iw411 N • MN C..•a.ML 1. 1I M.. Conine 1. •.w w MMA ely N I4.I•• 1Mwn•ni• No IAN N14•••. M A.11 • 10.$NM• • OW. IAM,M• l) w 7,71 (1■ ••••••■44 ••1.. 10.1M1M1. • (4*. 1•••••••& 41•6144 n 141144 b 1►. Tom C.IIM• *non of IML omevi 7 C►I••• Mao we le *fly NA i1 vW •••••7• 444 w1 way M ••••• a 744 °.•4 M ••••• N • •••■•44 lab I•MI/ N MOM • xy •.IN1.1. Mr.,n• 7/ . fa p1 - /1» L 4. •NM IA* MI.• boon w a••44 ••••••••••/ 404 AO •Mew W •••••• ...447 N 4. A 4I•111b• • wog 441 ••••••••••• f•• •ML LOT 3 OF VANN - JOHNSON SUBDIVISION OP THE PLEASANT GRAY LEAGUE, A •24 IN WALKER COUNTY, TEXAS III Sol utions,LLC Page 8 of 15 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc METES AND BOUNDS DESCRIPTION of Lot 4 of Vaun iobnan Subdivision, Huafavl8y Tern Being a 0.196 of ecru (8,559 square hot) tract of lad located in the Pleasant Gay League, Abatraot 24, Walker County, Texas and being all of Lot 4 of the VannJobaon Subdivision, as recorded in Volume 5, P.go 81 Olio Plat Records of Walker County, Texas (P.R.W.C.T.) same being a portion of Mamma* called 1.17 *ore tract of land conveyed so to Clty ofHuntsvllle by deed end recorded in Vohme 955, Pap 720 of Moist Public Records of Walker County, Texas (O.P.R.W.C.T.); aid 0.196 of an acre of land being more partiatlady described by meta and bounds an follows BEGINNING at a !bond 5/11-Ind; Iron rod with sap in the westerly line of that certain called SO' lad as recorded in Volume 85, Page 161 of Deed Records of Walker County, Texas (D.R.W.C.), being the southeasterly comer of Lot S of said Vann-Johnsen Subdivision, sane being the northeasterly comer of said Lo14, and being in the easterly lire of cold 1.17 ace that; THENCE, South 80035'47" Eat, a dbhues of 57.00 feet, atonal the wutady Nate &said 50' Road, belog the study km of aid Lot 4 And aid 1.17 nu snot to a (band 5/8drolt Iron rod with cap for to northeasterly corner of Lot 3 of cold Vann,lolmson Subdivision, Ming the southeasterly corner of said Lot 4; THENCE, South 87°24'13" West, a distance of 150.16 feat, along the northerly line of said Lot 1, being the southerly line of said Lot 4 lea found 5/8 -incli iron rod with sap In the eubdy Ina of that certain celled 0.21 acre tract of lend conveyed to Betty Rental by deed and recorded 'In Volume 94, Pap 180 of aid Deed Records, being the nortMwaterly cover of said Lot 3, tune being de southwesterly estery comer of said Lot 4, and being in to westerly line of said 1.17 acre tmou THENCE, North 02'35'47" Wan, a distance of 57.00 feet, along de easterly the of said 0.21 acre tract and that certain called 0.62 sere tract of land conveyed to Abe Johnsen by deed and recorded In Volume' 96, Pap 192 of said Dad Records, being the westerly line °l aid Lot 4 and said 1.17 acre hat to a.tbund 5/8 -inch boa rod with cap at to southwesterly center of aid Lot 5, being the northwesterly comer of laid Lot 4; THENCE, North 87°14'13" Eat, a dberiee 06150.16 het, along the southerly the of said Lot S, being the northerly line of sold Lot 4 to the Point otBglnning and containing 0.196 don acre of land. • Horizontal Control Is based on holding City of Nututeville Monuments No. 7574 (grid coordinate of Nostb - 10,262,485.316° Bast" 3,802,009.473) and 7575 (grid coordinate of North 10,262,526.24 & Beat- 3,801,780.255). Bearings described are sainted to the Texas Coordinate System of 1983, Central Zone. Distances shown ere (18 Survey Peet In "Field Hodsontnl" units and tnny be converted to "GRID' main by multiplying by a combined sale factor of 0.99988. Plat of even date aocompanlu this description. Prepared byt GeoSotutlons, LLC 25114 Builds Road Spiting, Tuns 281 -611 -9766 Job No. 11-149427 Page 9 of 15 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc LEGEND • inri Novo) .0.411 I.11(M — — I) tn.I -777- 1XI et /Net.? a wow art 0 mew will ORrat. q0 Ot N in me ar ll.r are OIIbod. =roma •Iir&r. �Mln Ye•11a 000 ) le, tjek IF gi „se it 1i 1 0 t� It it tonic - J it CALLAO 41S ARTOS N8711413 AM 1014100, roc tr. mot 110 NO2 35'47'W 57.00' C41410 AO WSW AIL !I 7010 NO %I r IPQ1fd' W!7 F1 VAP7I0OHMION v01.%tuba 701051'0NYC TI0l7E 'owls 70 I. rowed e'.~.r'rnw 140 Ode t4 I1 101 N.l Ma **oleo tweedy .w. -l. IM reel. I.e4 n lbw a am* w bee Ma .Wane brew .N. Mees.e.•fe..�. le r. Mewl twee %a1r •1 ►nab fwnnw Olee 70 ew irwMlWas In • Oen1r1 Iiw M fowl. M *.l.I N.. Mast NOTED sonde. I. lele w /NMM MMw4 IM basil u • 1M. w a 1bb e1. OwMM a — « hob OW n IMMO. 1700700. w rob tW ...eea.l. of Merle • Oi .ticw.71 • inn &MbMA IM10 w• 711 .MW� •••0.-l..1 MMN . *.M0LM.04 Oee11M. asM{..M.R n t Conine ewe. 1..e17 MwM•ee Merry wain vo .Nn W .'■alley w • .44007.. W. Yet. M MOIL eem•flel le • w.. a.ab. I.l.a *we MM... w New w nIMMewr pwvw W N eM eue .7 .M....el IM .nabgl •eeI••4 n 1M Wee** enornmelelia. ' 4. M 6p►IMe M .we M. we.er.Nee M•s pee, LOT 4 OF VANN- JOHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE, A -24 IN WALKER COUNTY, TEXAS 11w7tlAril N fell -N1M7H ="1"1111311E2 711711111111111 ENE llff ti =: e>��tJl� Page 10 of 15 T: \Idld \Loan Docs\NSP\Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc METES AND BOUNDS DESCRIPTION of Lot 5 of VannJob:non Subdivision, Huntsville, Teas Being a 0.196 of an acre (8,559 mum. feet) tract of land hated In the Pleasant Orley Leaps, Abstast 24, Walker County, Tema and being all et Lot 5 of the Vann - Johnson Subdivision, a recorded hr Volume 5, Page 81 of the Plat Records of Walkee Courtly, Texas (P.R.W.C.T.) some being a portion of that cedilla ailed 1.17 acre tract of land conveyed to the City of Huntsville by deed and recorded In Volume 955, Pap 720 of Official Public Records of Walker County, Texas (O.P.R.W.C.T.); sold 0.196 of an acre of land being more particularly described by metes and bounds as PolIows: n1GINNING eta farad S /8-hnh iron rod with cap in the wetterly Ilan 'Odle certain called S0' Road as recorded Ie Volume 85, Pap '161 of Dad Meads of Walker . County, Texas (D.R.W.C.), being the northeasterly emir of La 4 of said V.nn•chuaou Subdivision, in being the southeuteedy caner of aid Lot 5, and being In the easterly lire ofaid 1.17 aces tact; THENCE, South 87'24'13" West, a &bane pf 150.16 fat, along tits northerly line of sold Lot 4, Wing the southerly line of aid Lot 5 to a bund 5/8-Inch iron rod with cap in the easterly line of that certain abed 0.62 acre trrnt of and eonyeyed to Abe labium by deed and recorded in Volume 96, Pap 192 of said Deed Records, being the nortMvestorly cemer of said Lot 4, ante bales the southwesterly comer of said Let 5, and bring in the westerly Iirn of aid 1.17 ems Iran; THENCE, North 0315'47" West, a distance of 57.00 sea along tin eagerly Nine of said 0.62 acre tact, being the westerly line of said Lot 5 and said 1.17 sore feet to a found 5 /8 -ineb Iron rod with cap at the soudrwesterly comer of Lot 6 of aid Venn- Jdraon Subdivision, being the northwesterly comer of sold Lot 5; '!HENCE, North 9714'13" East, a distant. of 150.16 fret, along the southerly line of geld Lot 6, belay the northerly Inc of aid 1.ot 5 to a found 5/8 -hash Iron td with tap in the westerly line ofaid 50' Road, being the southeasterly caner of said Lot 6, some being the northeasterly corner ofaid Lot 5, end being In the eastsrly line of sold 1.17 are tact; THENCE, 8onth 8215'47" Eat, a distance of 57.00 feet, along the westerly line of said S0' Rod, being the easterly line of sold Lot 5 and sold 1.17 eon traot to the Point of Beginning sod containing 0.196 eta gore eland. Iferinondi Control is based ore holding City of Huntsville Monuments No. 7574 (grid coordinate of North.. 10,262,485,51 k Bast 3, 803, 089.473) and 7575 (grid coordinate of North e 10,262,526.24 & Bast: 3,801,710.2551 Bearings described am misted to the Texas Coordinate System of 1983, Cintrai Zone. Distances shown are 1)8 Survey Pat in "Pield Horiconai" units and may be converted to "ORB)" units by multiplying by a combined sale Actor of 0.99981. Plat of even date accompanies lids description. Prepared bye G.oSolntions, LLC 25814 Rudd. Road Spring, Texas Tel. 281 - 681.9766 Job 14o. 11.249.027 Page 11 of 15 T: \Idld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville\Exhibit A.doc BUINIMgM O fforiO I I WV, wee 4 177 (147 N IM-N• 0771 7Vn Mw/ ••1 Ito Woo V 177 *vin? rood W (777 IN V 11 VA w1in +M4M W 5. 45�%717•Iy.N Vivo, IL M 1 two, flolet IL OMMIr11 V.L1 •w No NOT* 7. W qw, .N• vein.* MOW M 1771141 0 • IOW Oswwliwrl. 7. 01.1et1II GwW • 1•W to 1* a, •I thoolvillo ssowetln 11. 7474 (W ••s•M1• Y M•M w 1470.411571 • Col. 7.1107.001473) M A77 (vie •o1iM• N 5.47. w 10.477.5117• • WO 1•01.710.7171 %Vv. 111e•14 e• NOIM M M 7•.11 VoiM•Ip1 477 M 1111 C11e• 7177 Ololoo o Mow W Vi fume 7M N +U7 Mr11Wi' ••(4w N•I M wnwrlN o *11 7771 a7 Nulliely• 17 • 1.0011/ r:• IMO N WINK 1 Mow Wine Molt Vow tenet on 1.147 M n1rtM77ur Vivo •1. 70 ol-wrwoody 77* 11M 4711111774 •••••7 M 1.471.7 Netwn0N1• 0. 1 •ws►11et •1 von ••l1 ••w1•n• NY Mr. LOT B OF VANN- JOHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE, A -24 IN WALKER COUNTY, TEXAS ■ Solutlons,LLC 1wMSN1 -1/F 41 -4714771 vYIzyl.ime giiii =1 �'7� 7i17DNIIIMEI Page 12 of 15 T: \Idld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville\Exhibit A.doc METES AND BOUNDS DESCRQ1TON of Lot 6 of Von"dohwon Ssbdivklon, HeotavJgi, Tian Betas a 0.164 du pore (7,126 square bet) met of Ind bread in the Pleaesnt Gray League, Abstract 24, Walker County, Taw .n6 bolos W of Lot 6 of to Vatnt4obason Subdivision, as recorded in Volume 5, Pap 31 of the Plat Records of Walker Couegy, Texas (P.R.W.C.T.) genie being a portion of that outdo celled 1.17 ape trot of land amend to the CRiy ofHalavllle by deed and recorded In Volume 953, Pap 720 0!OOlclal Public Rereads of Walter Cowtty, Texas (O.P.R. W.C.T.) said 0.164 of an acre of land bang more pstlaululy described by mean .d bounds as follows BIf01NNISIO at a Onutd 5/5-Inch bon rod with cap In the westerly gm of that ceded called 50' Rod as recorded in Volume 55, Pap 161 of Se Dad Recalls of Walker County, Times (D.R.W.C.), being the northeasterly caner of Lot S of said VaniWohruon Subdivision,' came being the mut enterbaaner ofee d Sat 6, and being in the asarly Ibe of sold 1.17 acre ant; THENCE, South 07024'13" Way • dlatana of 150.16 !bet, along tbe northerly line of said Lot 3, being the eauthry line of said Lot 6 to a lbund5/$.bnah iron rodwbtr app ha the easterly line of tat outdo Gelled 0.62 son Pact of land conveyed to Abe Johnson by deed and recorded in Volume e 96, Pap 192 of said Did Paarda, being the northwesterly corer of aid Lot 5, same being the sonthwntery comer ofsaid Lot 6, pad being is dmwesterly line of said 1,17 acre Peet; THENCE, North 02035147" West, • dI.taics of 33.10 feat, slag the eatery line of said 0.62 eon trey being the westerly line of sold Lot 6 rid said 1.17 acre trot toe found 5/1 -Lndh Iron rod with cap et tin southwesterly comer of that certain relied 0.032 aoae tint of land conveyed to Cal Jobnaon by dead mid recorded N Volume 977, Pap 120 of aid O(lbi.1 Public Records, belag Pte northwesterly caner of said Lot 6, uw befog an interim comer In the westerly line of said 1.17 one tact; THENCE, North $7'24'13" least, a Cason of 60.92 feet, "long the southerly Ilse of said 0.032 sore treat, balq to westerly line dead Lot 6 and said 1,17 sere tract to a Rand 5/34nob Iron rod with cap at tin soutbeaeta ly comer of said 0.032 tore tract, beta an interior corner to the westerly lbw ofald lot 6 and Geld 1.17 toe bad; THENCE, North 04014'21" W%.t, a dbanceof23.65 hay .long*. easterly line of said 0.032 ate trot, betas the westerly line of said Lot 6 and aid 1.17 acre mot to a found 3/11•beh iron rod with cep at tin natheeetady coma staid 0.032 ads iraot, being the southeasterly pone of that cattalo alkd 3,000 aq.11. tract of land conveyed to Cal Johnson by deed and recorded in Volwne 215, Pep 413 of said Dud Rands, same being the eoathwestriy caner of *het wain' relied 0. 736 axe but of Im,d conveyed to the City of HuntnII e'by deals and esocedsd In Volume 554, Pap 299 and Volume 504, Pap 305 of said Official Public Records, also being at northwesterly comer stead Lot 6 td said 1.17 We tract • THENCE, North 16•5149" Rut, a distant. of 39.93 feet, along the southerly One of said 0.756 tare tact, belq the northerly line of said Lot 6 and add 1.17 are toot to a lbw! 5/I -Inc12 Iron rod with op at the nortbweearly corner of sold 30' Road, being the nosthaeary corner of maid Lot 6 and said 1.17 one trait THENCE, South 02035'47" Eat, s disarm 01'57.59 fed, along to westerly line of said SO' Rod, being the easterly Hoe of aid Lot'6 and add 1.17 acre had to the Point of Reghnn(ng and containing 0.164 Oen son of land. Page 13 of 15 T: \Idld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc Horizontal Control It based on holding City of Huntsville Monuments No. 7574 (arid coordinste of Nardi • 10,262,405.31 & 8u1 3,802.009.473) and 7575 (arid coordinate of North 4. 10,262,526,24 & &ut• 3. 001,700.255), Ekarlgt dsMatbed ars roi.ted to the Texa Cowdioate System of 1913, Control Zone. Distance, shown are US Survey Peat In "Field Horizontal ". units and any be converted to "OIUD" units by mnitiplylq by a combined scats taotor of 0.99900. Plat of even date aeoompanissthis deroriptioa. Prepared by: GeoSolutloa., LLC 23814 Budd. Road Sprig, Tax.. Tei.101 -6111 -9766 Job No, 11- 249427 Page 14 of 15 T: \Idld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc LEGEND m• xa Q CUM OH raved 111I01 red POW raft 7D•t OLA.C.i. O!= VAMP COX M Alrl•LT VIC, Vat 1JJ.w,CT. . raw.C.c Ca-•11C1 wN•q CALL/e AM 7/A MLL� 11L yRPG ALCI. • NO41471l' 1 a ( L' LIaa/A A as � rot so. Ai AV VOL IN R V Ai/irm Nii'814i6 LOT 0.114 Agin I I d L— (ArIK rs loR2 k gr s8/ 241.SW l/w 1 LC — — Jrlr•2•1'L'r'1 u maft"aao .. pl YOL M4 AWN ILO N6172443'[ i r ; inuotria".nectsirut yrA: tit 3.4 rivitAP A P4111 I 4'44 Ix TAT 6 VOL 6,pa.R P. LW.G7 A IVEIGN1 C TO KATE I ••N Welly 44111 1 w ass •11l•Ilr•N MI 11* NMj w •Mel M /lwr 4 1••Irr. - •••11 11 101 OnbAbp� N7 µ w /Me *ad 41 w • Mrwor l• w 17 MWq ARACI :CZ. NOUN A •r" — * ..d •INI•I w Noel w • I. • Ilrll •4 C. • — w Wen Q• Wm*** rl•rl•rr •a 7e74 tawMM •.•ar• M 11wU, • I0.71•4410.3I • •••1• 1.161.001.73) we 7171 (•r11 ••••••• •1 ••• • 1•fa•.Lp p r Wt. 3. 7M71p. Imbue .Illy.• w MOW • w Awe C1•Mw 1 I Onlwl tom ad7•wr gym In as n..• red •YIN IIIrY•nlll' I•r my may N ..1wr1M 1• 111111•0401 N •W•l•y W 1 arrikAl rlr helve of IOW. rwnwN Np4411••• Ir • Y', •• d• A A .14•41w M we 111. ••• ••9 1 4* 0.1. • III 6t7ALL T• w 11' „1,,. VI/CAP LOT 6 OF VANN- 3OHNSON SUBDIVISION OF THE PLEASANT GRAY Lemma,. A-24 IN WALKeR COUNTY, TEXAS Solutions,LLC Page 15 of 15 T: \Idld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville \Exhibit A.doc rrjociLic(9‘-(i )(42 PAID IN FULL Vor 1 00009,693 OR 105 MODIFICATION, RENEWAL AND EXTENSION AGREEMENT ( "Agreement ") 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 NSFERS 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: ep,p14-e/u L3 Holder of Note and Lien: , 2012 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official department of the State of Texas Holder's Mailing Address: P.O. Box 13941, Austin, Travis County, Texas 78711 -3941 Obligor: CITY OF HUNTSVILLE, a political subdivision of the State of Texas Obligor's Mailing Address: 1212 Avenue M, Huntsville, Walker County, Texas 77340 Promissory Note: Date: June 19, 2012 Original principal amount: Five Hundred Ninety -Four Thousand Thirty-Three and 20/100 Dollars ($594,033.20) Maker: CITY OF HUNTSVILLE, a political subdivision of the State of Texas Payee: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official department of the State of Texas Maturity date: August 31, 2012 Unpaid Principal and Interest on Note: Unpaid Principal of $0.00 (of which $594,033.20 has not been drawn down). Lien Documents: The Note being secured by an Interim Construction Deed of Trust (With Security Agreement and Assignment of Rents) ( "Deed of Trust ") of even date with the T: \ldld \Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsville770999991266 \FORMModify Extend (2).DOC Page 1 of 18 ENTERED JAN 1 7 2013 P9 872 B k 00009693 OR V a 1 102 Note executed by City of Huntsville, a political subdivision of the State of Texas, to Timothy K. Irvine, Trustee, filed of record on June 27, 2012 and recorded under Document Number 4670, Volume 1029, Page 142, of the Official Public Records of Walker County, Texas, (the Records "). Property (including any improvements): In Walker County, Texas, being more particularly described in the lien document described above and in Exhibit "A ", attached hereto and incorporated herein. Extended Maturity Date of Note: December 31, 2012 Modified Terms: "The principal and interest, if any, of this Note shall be due and payable upon the sale of the developed real property described below or on December 31, 2012, whichever occurs first ( "Extended Maturity Date ") Upon extended maturity or the sale of the developed lot or lots, whichever is earlier, any deferred, unpaid and unwaived balance hereunder shall be due and owing." The Note is secured by liens against the Property. Whether Obligor is primarily liable on the Note or not, Obligor nevertheless agrees to pay the Note and comply with the obligations expressed in the Note and the Lien Documents, as modified and extended pursuant to this Agreement. For value received, Obligor renews the Note, extends the maturity date, and promises to pay to the order of Holder of Note and Lien, according to the Modified Terms, the Unpaid Principal and Interest on Note. All unpaid amounts are due by the Extended Maturity Date of the Note. Obligor also extends the liens described in the Lien Documents. The Note and the Lien Documents continue as written, except as provided in this agreement and Obligor acknowledges and reaffirms its liability to Holder of Note and Lien thereunder. In the event of an inconsistency between this Agreement and the terms of the Lien Documents, this Agreement shall govern. Obligor warrants to Holder of Note and Lien that the Note and the Lien Documents, as modified, are valid and enforceable and represents that they are not subject to rights of offset, rescission, or other claims. Any default by Obligor in the performance of its obligations herein contained shall constitute a default under the Note and Deed of Trust, and shall allow Holder of Note and Lien to exercise all of its remedies set forth in the Note and the Lien Documents. T: \ldld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi11e77099999 1266 \FORMModify Extend (2).DOC Page 2 of 18 Ps 873 Et k Vo 1 F°�, 00009693 O R 1052 874 Holder of Note and Lien does not, by its execution of this Agreement, waive any rights it may have against any person not a party hereto. The terms and provisions hereof shall be governed by and construed in accordance with the laws of the State of Texas, except as otherwise expressly provided herein. THIS MODIFICATION EMBODIES THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OR PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO OR THERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIESE HERETO OR THERETO. When the context requires, singular nouns and pronouns include the plural. This Agreement is executed to be effective on August 31, 2012. OBLIGOR: By: ii)0 !�""` Name: Mac Woodw d Title: Mayor STATE OF TEXAS § COUNTY OF 1 § This instrument was acknowledged before me by Mac Woodward, Mayor of City of Hunt a ollo1rwlitical subdivi ' • n of the State of Texas, on behalf of said political su *Ilk 13 day of , 2012. (trap r. Q i '• ds • 0 T: \ldld\Loan Docs \NSP \ModExtRenewalAgmtFINAL\A_D \City of Huntsvi1le77099999 1266\FORMModify Extend (2).DOC Page 3 of 18 STATE OF TEXAS COUNTY OF TRAVIS Bi-; Vo 1 Po 0009693 OR 1052 875 HOLDER OF NOTE AND LIEN: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official department of the State of Texas By: Name: 1,14 264/Ler CI NO L(.040f1L% Its: Duly authorized officer or representative td— This instrument was acknowledged before me on this," day of 2012, by fV is 1j (t)- L. I. o„ , duly authorized officer or representative of the TEXAS DEPARTMENT OF RISING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas, on behalf of ch agency. (Seal) CONNIE NUNLEY pu,'Notary Public, State of Texas Notary Without Bond My Commission Expires AUGUST 12, 2014 PREPARED BY: TO: Texas Department of Housing and Community Affairs Legal Services Division 221 East 11th Street Austin, Texas 78701 (512) 475 -2574 Notary Public, State of Texas AFTER RECORDING RETURN Texas Department of Housing and Community Affairs Legal Services Division P.O. Box 13941 Austin, Texas 78711 -3941 Joniel Crim (512) 475 -3865 T: \Idld\Loan Does \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsville770999991266 \FORMModify Extend (2).DOC Page 4 of 18 Exhibit A- (1 of 15) Bk Vol Ps 00009693 OR 1052 876 • NUTS AND BOUNDS DZSCR1PT1ON of Lot 1 of Vata lohuloa $abilvbtow Haatwllle, Two Being a 0.115 elan acre (1,060 square Poet) trot of bold located In the ?Iowan* May Lagos, Annul 24, Walker County, Tan and being dl of Let 1 of Urn Vann4ohnwu Subdivishn, at recorded M Volans* 5, Pap S1 of the Plat Records of Walker Ceuaty, 'hem (P.R.W.C.T.) same dad recorded IInn VNume 955, called 720 of the ef0Mtslaall Public reRecords of Wdwkerr Coin Texas (0.P.R.W.C.T,)r said 0.115 of ten eon of land being mom partbululy dseorlbed by meta and bounds as follows; BROWNING at a found 5 /1•1ssh Iron rod with on at the autMwler)y comer of that certain celled 50' Road as recorded In Volume 03, Pep 161 of Dead Rants of Walker County. Texas (D,R.W.C.), ben; M On northerly Ilea of that aMain ..sad 0.01 son tract of land oonvsysd to the ay of Huntsville by dead and raeorded under Volume 110, Pap 99 of mid Dad Racada, same baton tint menhi ly he of Suoad Street (50' Read Easement) of mead under Volume 70, Pap 393 of said Dud R e c o r d s , and being the soothes*t) *emu d eed Lot 1 and mid 1.17 solstitial; THSNCE. South W31'13" Wasp • dbtenes of 10.19 feet, along the southerly lbw of said Lot 1 and a so id 1.17 n hot. being to nortndy Ilse of said 9A1 ten beet and sold &mond Street to a found 5/S.Ineh Inc. rod wish sip at to aoudnnandy saner of tut ordain met of hod conveyed to Florins Bandit by dad and carded in Vohmni 179, hp 541 of said Deed • Records, b.Mg.lhe soctbwutsdy tomer dead Lot I and odd 1.17 eels trop THRNCS, North 02'10'17" West, a dlsIaa of 100.00 MI, @long the Gammon line of add Piorine Rundle USN and mid Lot 1 told 1.17 ten PHI 10 s Ibnmd 544noh Iraniad wIIh cap In the southerly Ilene of Lot 2 of sold Vaan•oluuon Subdivision. being to northeasterly comer of mid ?Ma Randle tent, same bring the n nbolts er* comer of mid Ltd 1, and Will an ei ooroer In the %eaetvy the ofuld 1.17 eau trash TRZNCZ, North 07'21'13" let, a distaste of 00.17 Out along Om southerly Sae of sold Lot 2, belag the oorthedy lane of e1d Lot 1 to a fired 5/0•inoh iron rod with cap in the wand), Use of said 50' Road, being to 0C tnmste ly comer of wild Lot 2, some being the oortueterty corner of odd La 1 and Ming In the mouldy line of sold 1.17 eon bun nuns, south 02'3047"Ent, a dbhsne* of 101.06 feet, slag the wader* line ofuld 50' Road, being the easterly lino ofuld Lot 1 and said 1.17 are but to the Pettit of Haghdy and . containing 0.105 donna ofland. 1leriansal Costal le band on holding City of Huntsville Monuments No. 7574 (gild coordinate of North - 10,262,405.31 & &tI- '3,102,009.473) and 7575 (phi aardiatt. of North - 10,262,526.24 & last., 3,101,700.255), Heariny dnaibed ten nlaud to the Tun Cowden System of 1913, Cate) Zane. Maness drown an US Survey Pea In "Plaid Horizontal" units and maybe oaverted m "GRID" yobs by multiplying by a unbind scale haw of 0.99956. Plat of eve date aooennpulu tab duorlption.. ?repent! bye. OeoSelnthm, LLC 25014 Duda Deed Surtog, Tea Tel, 2a.6a -9766 T: \Idld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvil1e770999991266 \FORMModify Extend (2).DOC Page 5 of 18 1 WILL rea f /AI" rM Mmeer • ,imtao �a.�n ... • .Mat 'F7- 10 W AP" rll ' it 1 N tion F "'� V�l%� ii 1` d .w..to -p 4 tio UINIVOtt.eSttmo o111 Pal Os rfir UMW 1.4111, am( ••••.r ww M 1=0 w • n1r L 14441446411 MYr Y —w — q w 1rMi Ar•mpo ">a. r.+1.w w..wa� W w, Wr+yr,uyr Ire • M��l9aw Ab/t11M ��M►eaMrrrw ~M .a•M "OW1:: w3wr�}"1111'a�'a 4. A••i• 4•w— •0,•r•MPr.NIa4. 0 1 s 1 LOT 1 or VANN-JOHNSON SUDDIIRSION OP THE PLGASANT GRAY LEAGUE, A-24 IN WALKER COUNTY, TEXAS Solutlons,LLC - r:_.:._'.: ,. -H7-911111111 . Bk Vol Ps 1052 877 T: \ldld \Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi11e77099999 1266\FORMModify Extend (2).DOC Page 6of18 B k V() l Ps 00009693 OR 1052 873 METMB AND BOUNDS assou TloN sf Lot 2 of V...Joknco. Sybdivlba, NestedIle, Tow Bong • 0.193 of an eon (4,512 non loot) tract of kwd lasted in IM Pleasant Orgy Lague, Absuset 24, Walker County, Tape and bales aU of Lat 2 oldie VannJohman Sub ivlslon, u retarded In Volume 5, Pap 11 oath. Plat Records of walks County, Tau (P.R.W.C.T.) cone being a portion ofths attain wdhd 1.17 i111 tmitofhad o11w.).d 1.12. Cl son factor hod unwed *the City ofiiuntnvllleby deed sad reeorded in Volume 935, Pap 720 of Official Pv2H. Return of Walker County, Tea (O.P.R.W.C.T.); said 0.193 of se son of lad being tun particularly daoribad by nuns sod bounds as !Shwa: BEODUNAPO at a point In 1M wevtsdy Iku of that omsla called 50' Road u recorded In Volans 0, Pap 161 of Deed Records of Walker County, Team (D.R.W.C.), being the scattiest** y�w n cner of Lot 1. latterly Sumwblobstcun l ion rod with *burs South 57'23' Way 0.42 hoer THBftt3, loath 02'15'47" Bay s dlstenes of 5740 feat, along the westerly Ile of sold 50' Road, Mkt t . Utterly Una of sold Lot 2 and all 1.17 son trot to • (bond 5/14noh hoe sad whit oap n tq noidsaa0edy owner of Lat 1 of said Vano4oba st Subdivision, being the eontheubsly sums of said (at 2t THZNCZ, South 57'24'1311 Wes, . distance of 0017 fat, along the maw* Urn of sold Lot 1, being Mt southerly line of sold Lot 2 to a /bond 5/1.Inch Iron rod with sop at is nort wut rly saner of old tat I, losing 1M northseWsrly coma of that attain tract of lad conveyed to Florins Randle by dud and recorded In Volume 179, hp 541 of said Deed Records, ante being an *tomato the watedyUns ofald 1.17 sere tract THILNCI. South 11'31'13" Way n dhessee of 70.00 Oat, .long the natter* sin. of said Florin Randlo hay Wog th. southerly 11s druid Lot 2, earns Wins the westerly Use oink 1.17 en ant to a band 314.1oeh Iron rod wl h op In the easrly line of thscasia caned 0.21 ere hoot of land conveyed to Betty Randal by dud and Hooded in Valuta 94, pap 110 of add Deed tIrw ocoid�aofs the ld� ly cores of said Florins Racdte trot, ISMS being doe TNENCB, North 02'3547" Wet, • dbte.n of 55.64 feet, along doe easterly Use of sold 0.21 eon foot being the wooer* Uoa cloak! Lot 2 and sold 1.17 awn ass to a found 1/IJnah Iron rod with cap s Ute ecuthweeterly eager of add Lot 3, flag du n*skwostarly cornar of sold Lat 2; MINCE, North 17'24'13"l+ay a data.., of 150.16 het, along IM southerly line of said I.ot 3, Wing IM northerly hireil of said La 2 to the Point of Bytaol.g sod containing 0.193 do acre of lend. T: \Idld \Loan Docs \NSP \ModExtRenewalAgmtFINAL\A_D \City of Huntsville770999991266 \FORMModify Extend (2).DOC Page 7 of 18 • Horizontal Control Is baud on holding City of Huntsville Mouumeuts No. 7374 (grid oaordlnute of Nash • 10,261,413.31 & Rut.. 3,102,009,473) end 7373 (grid coordinate of North • 10,262,326.24 & Bast". 3,101,710.2331 Beadnp described are related In the Texas Coordinate System of 1933, Centre) Zone. Distances shown an US Survey peel In "Field Horizontal" unite and may bo converted to "GREY unite by multiplying bye combined sale hater of 0.99911. Plat of even date accompanies Ibis description. Prepared byr GeoSolutions, LLC 23114 Budde Road Spring, Tens T.I. 2$1- 611 -9766 Job No, 11449.027 1k T: \ldld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi11e770999991266 \FORMModify Extend (2).DOC Page 8 of 18 Ps 879 • B h< 00 009693 OR • LEGEND or, 144(4 mat 00.00 KU. Mr/ 11 7001 MIM IN — ti 70*0 WM /- /•-• /OM -nl- 141E or wow 10 1 vCN U. 150.10' IM at r LOU al ai. ACM (4512 fa 2r) 11 �` smRv ►m J ?LAc A1tM7R/" v 4. ADM WI 1M0 MINNI O MM1RMM 1*11p014�111 0.0.0.0.1. le10.1'R 101.0 MAII '4MAML4 M0 MR. 10.0{(4 MyMa IDES SUBDIVISION VOLSPGa t 1 7lii'fiTi'f- ' era *Ad -V•t - 1717.012'W 1. soYA1 W 70.00' w 0 17'. ruN.M. .uweu -7—" W 0AMIA 40 ., h1 tt 1_ II a1 I s*1WEVORS CEMICATIS wNMy.wry 00001. M Mw1.M. MI IMF YM....1 .Mb000 ..11/x.1 10. IO1 11.. . �q.w.�q Ate. t YN 1M�.1 .ii.MM t11"m n1I1wMY, ..ynN� Y M w 14M0MNM MW qMl r11.pMW1 ,r;4*°/ I. IM Y •• 140* •0*1 M Yw.M M • 4• 7. wMM.le 0.1010 Y Ire 1•6 , thy M 1.01.11. I...M.ww M.. 1511 (IN ..MA..1• M MMO • IA11110J. • Iwl. 3.07.0011.673) wd I!0. (I.10 ••• N MM. 10.1140040. 4 1..1. 4111.7MIIN. R•MM MMMM M N.W 10 W /•• ON.M1• Swim M IW tote 11 MM.. Wow WO 14 Om Minnow 0. �. MM..1 10..OA WOO R 1w.... MMAINMMM I.M..MI .nMMwl.MUw 1 grwwl M I•MM.•.I .Nwry .1 0. A 1001100 MY..YI. 0111109000. 00. ! b ti dial* O ! wk W IIMR LOT 2 OF VANN - JOHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE,' A -24 IN WALKER COUNTY, TEXAS WA MS q26 000070 YM4 i4�O.wM /NiO- INd110 I' I 71111L241/411111 =NENE T: \Idld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi11e770999991266 \FORMModify Extend (2).DOC Page 9 of 18 Bk 00009693 OR MRTZS AND BOIINDB DZBCRWTION of Lot 3 of Vance- Johnson 8ubdlvIsion ;Aunbvllle, Texas Being a 0.196 of on acre (1,559 square lief) tract of land located in Ihe.Pleagmt Oay Gagne, Abstract 24, Welker Count', Texas mid being all of Lot 3 of the VantWahuon Subdivision, a recorded ht Volume 3, Pap 81 of the Pig Records of Walker County, Texas (P.R,W.C.T,) rase being rat portion of that again called 1.17 sore that attend oonveyed to the City of Hunhvilta by deed and nearded In Volume 955, Pop 720 o0ORblal Atbiie Records of Walker County, Tana (O,P.R.W.C.T.); aid 0.196 of an acre of land being more pertleulary described by man end bounds a follows • DIMMING at a point in the westerly One of the certain celled 50' Road a mottled In Volume 15, Pap 161 of Deed Regards of Walker County, Taws (D.R.W.C.), bens the northeasterly comer of Lot 3 of aid Vtnn.JOMtan Subdlvblou, same being the southeasterly corner ofald Lot 3, and being In the utterly Ike :Weald 1.17 UM nut, Rom which a found 5/t- Inch Iron rod with cap ban South 57'23' West, 0.42 feet, THRNCZ, South 87•24'13" West, a distance 41'150.16 feet, along Ere northerly tine *flak Lot 2, being the southerly line of aald Lot 3 to a toed SA -neh Ira rod who up In the easterly lin of the certain allsd 0.21 um hag of land conveyed to Bay Randal by deed and recorded In Volume 94, pp 180 :dub! Dead Records, being the northwesterly owner of said Lot 2, same befog the southwatedy Lot 3, and being tar the westerly 1155 of sold 1.17 none treat; ' TIIZNCZ, North 03'35'47" Welt, a dlalaus et 57.00 Mt, along the ashy line of sold 011 acre tract, bang the westerly lloe of sold 1.013 and aid 1.17 acre treat roe found 5 /11-Inch Iron red with cap at the southwesterly corner of Lot 4 of geld Vanndohnson Subdivision, being In ttorIltwertery corner of ltd Lot 3; TRSNCR, North 17'24'13" Rut, a distance of 150.16 fat, along M southerly line of aid 1.ot 4, being the northerly line of said Lot 3 to 1 Rand 5/I4nah Wan rod with cep In the westerly line of sold 50' Road, being the southeasterly corner of said Lot 4, sane being the northeasterly comer of said Lot 3, end being In the eagerly lion of amid 1.17 awe hag; THRNCR, Bench 02'30'47" Rest, '1 Mama of 17.00 Mt, .long 111, westerly NO of said 30' Road, being the aatedy 11ne of said Lot 3 and aid 1.17 non tract to the Point of Beginning and containing 0.196 of e1 acre of land. Horisontel Control N hued on holding City of Huntwllle Monuments No. 7574 (grid coonllnme of North • 10,262,415,31 & Beet" 3,102,009.473) .04 7575 (grid coordinate ofNordt 10,262,526.24 & Mast- 3,101,780.355). Bearinp desodb*d *re related to do Tans Coordinate System of 1903, Guinn Zone. Distances shown are U3 Survey Peet In "Field Horlmntaf' efts and may be coawded 10 "010" units by multiplying by a omnbbud scale tutor of 0.99911. Pie of even date accompanies this description. Prepared by: Oao8ohalonq LLC 25114 Budd* Raul Opting, Texas T.L 281681.9766 Job No. 11449-027 105-7 T: \Idld \Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvil1e770999991266 \FORMModify Extend (2).DOC Page 10 of 18 Bk Vol Ps u$)1J1096913 OR 1012 •(IIIYIYG1f0 common 1 aa1Y atlA, N 11N w r MwlwMr uN M1 ulw/ -r1 0.010 N U�1M�rY�rMW wAMIM so AvAll G. 1011 NM N Nair M14 ; t uY1M1Ny�11 tNIrM�My Ifni r 1)1+10 WW�Tor TNI X.I' u1a-710. Pa �Y�I 4 Y- ~ WIWIMM b ThiFeo 1/0. law/137 )1010! I. Polo oorwo -+ Naomi •1111.4 14 1uN1 N 1 DIM >. ama-111m loam r mar on Am•• a4Iy� N Nr1w7 140..aana W. 7/N ($4 --ma1M 01110110 - 10.1.;4&71 • fob 7110&1314071) W AfMl *4MN MWI • I111311111311.14 CYM1.7�N �Sa{.w HNrf N W 110a IN4 M1 1413. 4Ym w� 50%.012.1'• 41 9Wt fmM11Wmlarw w.nr W1' b -�.4* . M 7 wMMM MMI m 4.11414. 3.. 1111.. Iwo MW- Mal a■/o w boo/ o rrMMmW Ibva of a a* 001000041 Wawa W r•lbr oat, N W 10mw/4• - __1011o. /. A /raYM of 1Y- MN oalw-b MY -. LOT 3 OF VANN - JOHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE, A +24 INWALKER COUNTY, TEXAS Solutlons,LLC T: \ldld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi11e770999991266 \FORMModify Extend (2).DOC Page 11 of 18 0.-11 to/ 2 00009693 OR METES AND BOUNDS DESCRIPTION et Lot 4 of VannJobaan Subdivision, Natalia, Tess Being a 0.196 eon um (8,559 Kara tbet) tract of land located in the Pleasant Gray Leaps, Abasing 24, Walker County, Tau and being all of Lot 4 oldie Vann-Johnson Subdivision, as recorded In Volume 5, Pap 01 of IM Plat Records of Walker County, Tema (P.R. W.C.T.) sane Using a portion of that stain °abed 1.17 are but of land conveyed to the City otHuntsville by deed end retracted In Volume 955, Pep 720 of Ottlel.l Pubilo Records of Walker County. Texu (O.P.R.W.C.T.); aid 0.196 of an acre of land being mom pertlalerly described by meta and bounds as fellows: BEGINNING at a !bond 5/6dneh Iron rod with cep in do westerly line of diet cabin called 50' Road as recorded In Volume 85, Pap 161 of Deed Records of Walker County, Texas being the southeasterly sorter of Lot 5 of sold Vsnst•ohneon Subdivision, same being the nurthesstaiy tomer of said Lot 4, and being in Me aWrly Itae ohetd 1.17 an tract; THENCE, Suds 6•35'47" Feet, a distance of 57.00 fat, along the westerly line of said 50' Road, being the easterly line of aid Lot 4 and sold 1,17 Dan Net to a found 5 /S4nch Iron rod with sap Ibr the nortlioasbrly comer of Lot 3 of aid Vnnn•ohruon Subdivision, batng the soudesterly comer of said Lot 4; THENCE, South 67•24'13" Waal , a sauna .1150.16 Rot, along the northerly line of said Lot 3, bans the southerly line of aid Lot 4 to n found 5/11-inch Iron rod with cap In the easnriy Ibre of bat certain tiled 0.21 ocn tract of land conveyed to Betty Riedel by deed And recorded 1u Volume 94, Pap 160 of sold Dead Records, being the northwesterly comer of slid Lot 3, Dame being the somhwestery comer of said Lot 4, and being In the westerly line dead 1.17 acre trim; THENCE, North 02•5'47" Wort, ri Mama 0(57.00 feat, along the easterly Ilse of said 0.21 sore tract and that eMdn called 0.62 tae toot of and convoyed to Abe Johnson by dad end recorded In Volume 96, Page 192 of said Dad Records, bang the westerly line of said 0.01 4 and said 1.17 acre tract toe found 5/S•Inak Iron rod with cop at the southwesterly comer of said Lot 5, being the northwesterly comer of sold Lot 4; THENCE, North 67'24'13" Eat, a dbmua of 150.16 tat, along the southerly the of aid Lot 3, being the northerly the of sell Lot 410 the Point of Beglutrmg and containing 0.196 of an son of lend. Heriaosml Control Is booed on bolding City of Huntsville Monument' No. 7374 (grid coordinate of Noah. 10,262,4115.31 # Best- 3,602,009,473) and 7575 (grid coordinate of North 10,262,526.24 & Bast. 3,801,710255). Ratings described am minted to the Texas Coordhem System of 1983. Cabal Yaffe. Distances ahowo we 113 Sunay Pat In '71.16 Horizontal" units and may be aonwn.d to "ORID" units by multiplying by a combined sal. Rotor *60.99938. Plat (Woven dote accompanies this ascription. Prepared bye GeoSolutlona, LLC 25014 Budd* Road Spring, Teen. Tel. 291 - 6619766 Job No. 11449.037 Val 10 T: \ldld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi11e770999991266 \FORMModify Extend (2).DOC Page 12 of 18 F• � 8 h< 00009693 OR • LEGEND • � lit) .... _ , WY -777— toot or AVOW 616/10 AN AGNS 4ir NION I POO ANA �r N I NO2•30 47'W 37.00' arI YOL N AMP NO, i 01 ON 2.tit.17 P. a pr/. wR 0. +rut ■ 0*76L p11y ry� 901 •r...r.S.t M1/I�I1.Ilb4MY.4%" MOAT. C7Y111 wW.. RI rill 440, tpta NOT 24.13V 1E0.70' W 410 Y.r SCOLD 1' . * u.r r LCI4 1 0.(00 ACRES MVP SQ. ET.) jQ i�7ll c o'• Ii ru Pvw rao J° L. a.JfEliiar" 001 7R 111 PI PA'w Will v VOt. W.C.T. P.RW.GT. GAWKING CBIPPIOAYE 1 way ..rw/ u M .r •I l.n1M• mat OM wow 11•. 1 r r w r �•r.l ! SON NII109* 0,.11• U Y• 1 Tors LWII •I rww 7.411. tl.rr .n• tw■M•un. W x..1.1 W. orllllr t iMY. 07.91 9. M/� L NO1'd! 1 . ` r on Moo. •111.1 w won u • WO. 1. wNwlr Onl.. I. 4• w MUM, .• w 1Y..I.N 1.00.w9* W H14 (.11 wM11M Wp. *pum3. •1yl. 3.161.010.160 M .q IW .01*9M .7 99.1 • 19.7•9..11. 1,1•0• ;N1,1p.tp Mr0Y w .....1 Y w Too. twww 7,1101 •11161. {Wm A.a owww. row... W 30710° r hol lI. M r1Ybv N • .w+ 4 wit YYew /179 0. 1 Soon %Mr 111. Ow. ro.w w 11911 r Mw...tool rww wO 4.01.1100.17 .I0.61•1 w 01.9094 Mower N W 'YAW/ nwolw.l•w.' ♦ A 1.1011• .I e.•. 9911 w•w•w• 911 9119. 1 a �. PR. V /tA LOT 4 OF VANN- 7OHNSON SUBDIVISION OP THE PLEASANT GRAY LEAGUE, A -24 IN WALKER COUNTY, TEXAS V 1052 T: \Idld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsville770999991266 \FORMModify Extend (2).DOC Page 13 of 18 884 Bk Vol F•9 00009693 OR 1052 885 METES AND BOUNDS DESCRIPTION of Lot 5 of Vanivslohneon Subdivision, Huntsville, Texas Being a 0.196 of an acre (8,559 square fast) 1,101 of land Located In the Plaaat Oay Lagne, • Abstract 24, Waller County, Tau and bong all of Lot S of the VanWohrison Subdivision, as recorded In Volume 5, Pap 81 of IM Plat Records of Walker County, Teats (P.R.W.C.T.) ems• being o portion of that auteln called 1.17 we tract of land convoyed to the City of Huntsville by dead and molded In Volume 955, Pap 720 of Official Public Records of Walker County, Tact (0.P.R.W.C.T.); sold 0.196 of on eon of land being mots porlbularly desulbed by mails and bounds as fgllows: BEGINNING st a found 5/8-Inch Imo rod with cap In die watery line of del arbin gaited 50' Road ee - recorded In Volume 85, Psgs 161 of Deed Records of Welker County, Twee (D.R.W.C.), being the northeutery caner of Let 4 of said Vann - Johnson Subdivision, same being the southaubry earner otakl Lot S. and being In the asterly 11na of sold 1,17 acre mot, THENCE, South 87'24'13" West,. distance *1150.16 feel, along Ills nonMrly Ile ofaid Lot 4, being the sout :My Inns of said Lot 5 to e bond 5/14ndn Iron rod with tap In the eaestrly line of that certain abed 0.62 are tract of land conveyed to Abe Johnson by dud and 'worded in Volume 96, Pap 192 of akl teed Ricardo, being the northwesterly coma of aid Lot 4, same being the southwesterly comer of aid Lot 5, and being In the westerly We of said 1.17 sore ham; THENCE, North 01•33'47" West, a distance of 57.00 tat, A10881116 pearly line of said 0.62 acre mot, being the wuterly Ilse of said Lot 5 and said 1.17 sore mot to a tbtund 5/1 -Inch Iron rod with cap at tM southwesterly Comer of Lot 6 of aid Vote- Johnson Subdivision, being the norlhwutuly corner of aid Lot 5; THE. NCE, North 17•24'13" East, a distance of 150.16 het, along the southerly the of old Lot 6, being IM northerly 11ne of said Lot 5 to a Pound 5/1 -Inch Icon rod with nap in the westerly line of sold 50' Road, being de southeasterly corner *fluid Lot 6, same being ate norlheaarly corner of said Lot 5, and being In the easterly 11no amid 1.17 are Tract; THENCE, South 01•35'47" Eat, a dlstnna of 57.00 feel, along the westerly line of said 50' Road, being the usbdy line of sold Lot 5 and said 1.17 sore Iran to the Point of Beginning lend contdnbng 0.196 of an sore of land. Horiaonlst Ceahwl is based on holding City of Hunbvllle Mammals No. 7574 (grid coordlnaa of Nall.. 10,262,445.31 & Bus- 3,802,009.473)) and 7575 (grid coordlnete of North 10,262,526.24 4 Bus- 3,801,780.255). Baring deecribed ere related to the Tease Coordinate System of 1913, Central Zone. Distaoa shown are U8 Survey Pea In "Plaid Horizontal" units and may be converted (0 "GRID" units by multiplying by a combined sale both, of 0.99988. Plat crown date asompanlss Ibis deseripdon. Popped by: Gakolntions, LLC 25814 Butldo Road Spring, Taw Tel. 281 - 6814766 Job No, 11449.027 T: \ldld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsville770999991266 \FORMModify Extend (2).DOC Page 14 of 18 B k 000 09693 OR LEGEND • man• 410 WPM R Sips mg -ti— .1•11 U4$ N rota 4014 //— 4•14 4•.u.r. leararmuali '747— 4001 d Mows,. 1IA..R.I, 01.001. PALO . q1 4.4 *4.4. COLON 0.0 1.2 ACM, AMMON VOL VO CA f g Valli mlAaAy SAW I.1 LI AR•Cf. 411401 10■18 1. • 30' n I� U7I1 4 ' FYI N07'24'3r - nrUnf1C.r_ SS X01! W r- Av.-R" LOT, 3" VANN-IMMO" 3. OWSOW111033 VOL. 3, ME p..W.CT. EU14*I01111 CIIRFICATIS 1 4..w .1.414 1. 114 Ml •1 4.14•W 14• f4. row was 1 0. ••.1ry i (4 1111••••. •.W -Iw •44141 Mm444 1.4 M .4* - • l•* M� •• Y•�•.1 •••••••••• 4742.4.41.447:, al Glw.ry IA _ Mw14 •' •...1 ., 1•4..4 11.44 .w 4411 NOVO LOTS OF VANN- OHNSON I. Imo .11 1,441.4.e4 1,441.4.e4 r... w• Wm* « •nip SUBDIVISION Of TH! PLEASANT . 4..•X1•.4 GRAY LEAGUE, A -24 4. *Wm.. 4.11• . 4w11 .4 1 .•.1•r. Won.. IN WALKER COUNTY, TEXAS .. 7•74 (4'n I..••.. Y .mu • 147I1.08.11 • b.. 4101141.474) M 1414 (P11 swim. *IN.. • 11.141.11114• . 4.41. 4.111.710214 4•..1.11....4 M. 1••4.4. 0. 11.w ••! NM . '1404 .44 .4 •.Y.4w1 1.44)1..41 •.4 X10 ler was •4.•1.1.4 w • ••••■• 1411. MI. •I 4Rw4& 4. 4•.1. .11•• 1.11414••1 W• w ■•.1 ..4*14 .11•• MOWN w Y MI •M.WI..•...1 x4 ••11"* 404•4n 44 ■•••y 1•.Iww.IM 4. 44w41• •••.11.•.•••• I•. WI. Vol 105- T: \ldld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi11e770999991266 \FORMModify Extend (2).DOC Page 15 of 18 B•k Vol P9 001 109693 OR 1052 METES AND BOUNDS DESCRIPTION of Lot 6 of Veen-Johnson $vbdivblen, Huntsville, Tara Bolos a 0.164 of as we (7,116 aguare get) tact of Ind loald a the Plaunt Grey League, About 24, Welker County, Tarty end bdos W of Lot 6 oldie Ve n •fohu*so 8obdMslon, as recorded In Volute S, Pip 3l ofthe Pat Records of Welker Cour(y, Tema (PStW.C.T.) come being a portion of tMN certain allied 1.17 awe tract of land wearied to Naafi of Humana* by died and recorded In Volume 955, Pap 720 of Mobil Publa Roads of Nether County, Teas (O.P,RW.CT.); said 0.161 of an awe of and bab.g more polouledy described by meta and bounds es ti:Mum BYOWNDgt3 u a grand 54-Inab ion and with cap in the measly lbw oldie amain celled S0' Road se recorded a Volume 05, Pap 161 of Ow Dad Records of Welker County, Testae (D.R.W.C.), being the northeasterly caner of Lot 5 of said Vao•ohneon Subdivision,' same being the southeasterly Goner of add Lg16, and being a the eabrly (Ina ofah11.17 awe nob THENCE, South 070413" West, a dataus of 100.16 fbei, along the northerly We of said Lot 3, being the southerly line of said Lot 6 to a found 5/01moh ken rod wIlh cap In the easterly 11a of that amain celled 0.62 acre tract of land oawayed to Abe Johnson by dad and r000rded In Volans 96, Pap 192 of said Dad Paeonds, bang the northwesterly owner of aid Lot 5, ume being to eouthwedvly comer of said Lot 6, and being In the melody lbw of add 1,17 acre neot; THENCE, North 00•35'17" Wet, a dbaoee of 33.10 feet, along the easterly ,Ins of said 042 •ore toot, being the westerly line of add Lot 6 end said 1.17 acre treot to a found 3114aoh hat rod wIto cap et the ec a sweeterly Mier Of that artaa called 0.032 awe taut eland smwayed to Cal Mimeo by dud and aoorded In Volans 977, Pap 120 of old Moist Public Records, being tie natbwatrly coma of add tat 6, same being an horses comer In the westerly line of seld 1.17 core teal THENCE, Norte 57'36'13" East, • Coteau of 60.92 fat, along the southerly Om of weld 0.032 eon tract, being the westerly 0ns of bald Lot 6 and said 1,17 cure tract to a found 5/$4aob Iron red with cap at the southweterly corner of said 0.032 am Ma, being an Interior corner is the westerly line of said Lot 6 and odd 1.17 awe tract; THENCE, North 01'11'21" Wut, a datum 052345 het, ebng Ow auterly tae of said 0.032 OM brat, being the wahrly line timid Lot 6 and said 1.17 awn Mot to a found 3/64ah inn rod with cep at the uMbwterly comer of sold 01132 awn tart, baag the southeasterly owner of . that mule called 3,000 sq,1L treat of land oomyed to Cal lama by dad and molded in Volute 213, Pep 411 of ald Dad Records, setae being the southwesterly raster of that aatea called 0.736 .ere Mat of lend convoyed to the City of Hosanna by dads and recorded In Volume 564, Pap 299 end Volume 301, Pap 305 of said O5Bdd Public Record*, oleo boas at northwesterly comes data Lot 6 and old 1.17 were teach • THENCE, Weak W6149" Eat, a distance of 69.93 t:at, along the southerly One of aid • 0.756 ears trail, being the northerly Ile of said Lei 6 and aid 1.17 urn tract to a found 3/01ach Iron rod with cap et the northwuhrly owner of aid 30' Rood, Meg the northeasterly corner of • said tat 6 and sae 1.17 acre treat; THEI'10E. South 02'35'17' Eat, a Osamu 803739 feet, along the watMy line of aid 50' Road, being the elderly lee of tell Lot 6 and said 1.17 eau hoc to the Point of Beginning and containing 0.164 aim we of and. T: \ldld \Loan Docs \NSP \ModExtRenewalAgmtFINAL\A_D \City of Huntsville77099999 1266 \FORMModify Extend (2).DOC Page 16 of 18 v v .7 L k V01 3 ;0009693 OR 105—> Uorizonial Control Is based on holding City of Minim/111e Monuments No. 7571 (grid coordinate of North • 10,262,485.31 R East. 3,302,009.473) and 7575 (grid eoordinete of North •• 10,262,526.24 &East• 3,101,710.255), Baring daorlbed ere related to the Tense Coordinate System of 1983, Csnlral Zone, Distances shows' are US Survey Peet in "Field Horizontal" units end may be converted to "GRID" units by multiplying by a combined sale factor of 0.99911. Plat of even date aoompantetthis description. Proposed by: OaSoiutbu, LLC 25814 Rudd. Road Spring, Texas Tel, 281-011-97611 Job No. 11'249427 T: \ldld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsvi1le770999991266 \FORMModify Extend (2).DOC Page 17 of 18 • B1< Vol 0� iI00969,3 OR __. -1052 LEGEND • MK NOM "'"°" it VW Our —r— 10•01 NMI OP ram roar — /1— 1DOX OMILLA wren warm Y1 -m— VOX M 1WT 1m "AA'A.t , rarla.t ••I urfl1,N _ off? rOLr At IN _' osl1- MUM Ara {YON env 1 K•/N" . A Nses1•y'r .4 Qa a•r p 1. I ntl. /NO.,A'tA LOT1 1g 1f WAN 1187/4 0.114 AOl15 14 11 RE" 1 ( is so. IT.) I Y 1! ,,ar -- ,nr1wlmr—� h ser241s•w vr� min. rc• 0I Ad M. oc aA Iwo ARA,:Cr. 4 VANN.JO10tON vl1IOIV 1 PJ.W.C.T. "0. 1 IIANIIMI1'0 0B\1PICAA1! I.MMpwlttr V M OM 1t %MON Vol WI wow w •.��11 d• rW.1 M Mror -N.Ml. 16 1t IYMw. N1I, �wi wM W Wi uF.INMYn /1� �wY•i wINMYY•�My•J/y ��.q�r�1 141 1.. l 17� O�•11F OwA1Yn 1 Mq / W111NMwrI�� NOM, 1 1 *moo — Al wd .NUM u• ION N • Nu ComoNotaol Mt.XV Opm M ! N Y t w a t • ••111.4•14. ..l • b/MNY `-'_ ..711:11611•••47.1....m... 41* 1 1 1. '1W IYYwI�'r+Y �• nom b •wrwlN N VINO M ..1y1Y• q • OMN N1rr Wk. LIMO. doom M hefty NNON 'lr Ammo* N• p-11NA 01 1. • 1441411• N •r•• MN N•rl•M1N AN 1.k sosaevrr anew LOT 6 OP VANN- JOHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE, A-24 IN WAUC6R COUNTY, TEXAS T: \ldld\Loan Docs \NSP\ModExtRenewalAgmtFINAL\A_D \City of Huntsville770999991266 \FORMModify Extend (2).DOC Page 18 of 18 Ps 889 B k 00009693 OR Filed for kecora in Walker County 1012 On: Dec 17, 2012 at 04 :22f- As a Recoraings Document Number: 00009693 Amount: 88,00 Receipt Number - 67319 Ey, Rachel Yarabec_k 890 STATE OF TEXAS COUNTY OF WALKER 1 hereby certify that this instrument was filed on the date and time stamped hereon by me and was duly recorded in the volume and page of the named records of: Walker County as stamped hereon by me. Dec 17,2012 Pari A. French, Walker County Clerk Walker County LU cc a CC U Ewa x Lez • j?i Bk Vol Ps 00004670 OR 1029 142 INTERIM CONSTRUCTION DEED OF TRUST (WITH SECURITY AGREEMENT AND ASSIGNMENT OF RENTS) ( "Deed of Trust ") NEIGHBORHOOD STABILIZATION PROGRAM ding Federal Agency: United States Department of Housing and Urban Development TDHCA Federal Award Number: B- 08 -DN -48 -0001 Federal Award Year (Year of Award from HUD to TDHCA): 2008 TDHCA Award Year (Year of TDHCA Board Approval): 2009 THE STATE OF TEXAS COUNTY OF WALKER NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. ARTICLE I Definitions The following terms shall have the respective meanings assigned to them when used herein. 1.01 Grantor: CITY OF HUNTSVILLE, a political subdivision of the State of Texas 1.02 Grantor's mailing address: 1212 Avenue M, Huntsville, Walker County, Texas 77340 1.03 Beneficiary: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas, and any lawful owner, holder, pledgee, or assignee of any indebtedness secured hereby. 1.04 Beneficiary's mailing address: P.O. Box 13941, Austin, Travis County, Texas 78711- 3941. 1.05 Trustee: Timothy K. Irvine of Travis County, Texas. 1.06 Mortgaged Property: The Real Property and the Personal Property. 1.07 Project: Six (6) Single- family dwellings to be constructed or rehabilitated on the Real Property. T: \Idld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 1 of 50 • •E.1 -: Vol Ps 00004670 OR 1029 143 1.08 NSP: Neighborhood Stabilization Program or ( "Program ") as authorized by the Housing and Economic Recovery Act of 2008 as an adjunct to the Community Development Block Grant Program. (Housing and Economic Recovery Act of 2008, Pub. L. 110 -289, 112 STAT 2850.) 1.09 NOFA: Notice of Funding Availability issued by TDHCA for the NSP issued in 2009. 1.10 NOFA -R: Notice of Funding Availability Re- Allocation. 1.11 NOFA -R- SERIES 2: Neighborhood Stabilization Program Re- allocation — Series 2 (NSPR- Series 2) issued in 2010. 1.12 Eligible Household: Individual or families whose income[s] do not exceed 120% of area median income ( "AMP') as defined in the Housing and Economic Recovery Act 2301 (f)(3)(A)(i) and (ii) of 2008. 1.13 Financing Mechanisms: Mechanisms that provide affordable homeownership opportunities to assist homebuyers to purchase and redevelop a foreclosed property at a discount and/or rehabilitate the property as defined in the Housing and Economic Recovery Act 2301 (c)(3)(A) of 2008. 1.14 Real Property: The real property as more particularly described in Exhibit A, attached hereto and made a part hereof, together with (i) all improvements thereon, all rights, hereditaments and appurtenances belonging thereto including rights of ingress and egress, easements, licenses, and all reversionary rights or interests of Grantor; (ii) all fixtures and personal property now or hereafter attached to the Real Property; (iii) all renewals or replacements thereof or articles in substitution therefore, whether or not now or later attached to the Project in any manner; and (iv) all other interests of every kind which Grantor now has or at any time hereafter acquires in and to the Real Property. 1.15 Personal Property: (i) all furniture, equipment and other personal property now or hereafter owned by Grantor, located on the Mortgaged Property, and all renewals or replacements thereof or articles in substitution therefore, whether or not the same are or shall be attached to the Project in any manner; (ii) all building materials and equipment now or hereafter delivered to the Mortgaged Property and all building and construction materials, equipment and parts intended to be installed in or on the Real Property or Project; (iii) all plans and specifications for the Project; (iv) all contracts and subcontracts relating to the Project; (v) all deposits (including tenant's security deposits, if any), funds, accounts (including any accounts in which escrows are deposited as a reserve for the payment of taxes, assessments and insurance on the Mortgaged Property), contract rights, instruments, documents, general intangibles (including trademarks, trade names and symbols used in connection therewith), and notes or chattel paper arising from or by virtue of any transactions related to the Mortgaged Property; (vi) all permits, licenses, franchises, certificates, and other rights and privileges obtained in connection with the Mortgaged Property; (vii) all bank accounts in which rental income from the Mortgaged Property is deposited; (viii) all proceeds arising from or by virtue of the sale, lease or other disposition of any of the Real or Personal Property; (ix) all proceeds (including premium refunds) payable or to be payable under each policy of insurance relating to the Project; (x) all proceeds arising from the taking of all or a part of the Real Property or any rights appurtenant thereto, including change T: \ldld \Loan Docs \NSP\Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 2 of 50 • B1-4 V01 P9 0000467W OR 1029 144 of grade of streets, curb cuts or other rights of access, for any public or quasi - public use under any law, or by rights of eminent domain, or by private or other purchase in lieu thereof; (xi) all other interests of every kind and character which Grantor now has or at any time hereafter acquires in and to the Personal Property and all property which is used or useful in connection therewith. 1.16 Construction Loan Agreement: The NSP Construction Loan Agreement ( "Loan Agreement ") of even date herewith executed by and between Grantor (Borrower in Loan Agreement or the maker of the Note if different from Grantor) and Beneficiary (Lender in Loan Agreement), which Loan Agreement sets forth, among other things, the procedure and requirements for disbursing the loan proceeds to be evidenced by the Note. 1.17 Note: The NSP promissory note ( "Note ") of even date herewith executed by Grantor payable to the order of Beneficiary in the original principal sum of $594,033.20 payable as therein provided and finally maturing as therein provided, and all modifications, extensions and renewals thereof. 1.18 Loan Documents: The NSP Note, this Deed of Trust, the Construction Loan Agreement, and any and all other documents or instruments heretofore or hereafter executed by Grantor (or the maker of the Note if different from Grantor) securing, evidencing or in any way pertaining to the indebtedness evidenced by the Note and hereafter are the ( "Loan Documents. ") 1.19 Governmental Requirements. All laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the state, the county, the city, or any other political subdivision in which the Mortgaged Property is located, and any other political subdivision, agency or instrumentality exercising jurisdiction over Grantor or the Mortgaged Property including, without limitation, the following: the Civil Rights Act of 1964 (42 U.S.C. 2000(d); Executive Order 11063, as amended by Executive Order 12259; Executive Order 11246; Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.); Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.); Fair Credit Reporting Act (15 U.S.C. 1681 et seq.); Fair Housing Act (42 U.S.C. 3601 et seq.); the Americans with Disabilities Act of 1990 (P.L. 101 -336); of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations (24 CFR Part 8); Architectural Barriers Act of 1968 (42 U.S.C. 4151 et seq.); Federal Drug Free Workplace Act of 1988 and the regulations promulgated thereunder including, without limitation, 54 CFR Part 4956, Section 3 of the Housing and Urban Development Act of 1968; Executive Orders 11625, 12432 and 12138, as amended; the Copeland "Anti- Kickback" Act (18 U.S.C. § 874 et seq.); the Davis -Bacon Act (40 U.S.C. § 276a et seq.); Sections 103 and 107 of the Work Hours and Safety Standards Act. (40 U.S.C. § 327 et seq.); the Uniform Relocation Assistance and Real Property Acquisition Policies Act (42 U.S.C. § 4201 et seq.); the Housing and Community Development Act of 1974; the National Environmental Policy Act (42 U.S.C. § 4321 et seq.); ( "NEPA "); the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. § 4321 et seq.); The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970; the State of Texas Senate Bill 1356; Title 8, and Chapter 92 of the Texas Property Code; Solid Waste Disposal Act TEX. HEALTH & SAFETY CODE Ann. Ch. 361; Comprehensive Municipal Solid Waste Management, Resource Recovery, and Conservation Act. TEX. HEALTH & SAFETY CODE Ann. Ch 363; County Solid Waste Control Act. TEX. HEALTH & SAFETY CODE Ann. Ch 364; Texas Clean Air T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 3 of 50 •Bk Vol Ps 00004670 OR 1029 145 Act, TEX. HEALTH AND SAFETY CODE Ann. Ch.; and Hazardous Communication Act, TEXAS HEALTH AND SAFETY CODE Ann. Ch. 502; and such Governmental Requirements as may be from time to time amended or superseded and all of their implementing regulations, as may be amended. 1.20 Anti - Terrorism Laws. Any and all present and future judicial decisions, statutes, rulings, rules, regulations, permits, certificates, orders and ordinances of any Governmental Authority relating to terrorism or money laundering, including, without limiting the generality of the foregoing, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Pub. L. No. 107 -56); the Trading the Enemy Act (50 U.S.C.A. App. 1, et seq.); the International Emergency Economic Powers Act (50 U. S. C. A. §1701 -06); Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (relating to "Blocking Property and Prohibiting Transactions With Persons Who Commit, Threatened to Commit, or Support Terrorism ") and the United States Treasury Department's Office of Foreign Assets Control list of "Specifically Designated National and Blocked Persons" (as published from time to time in various mediums, including, without limitation, at http:www.treas.gov/ofachllsdn.pdf). 1.21 Prohibited Person. Any person or entity that (i) is specifically named or listed in, or otherwise subject to, any Anti- Terrorism Laws, (ii) is owned or controlled by, or acting for or on behalf of any person or entity specifically named or listed in, or otherwise subject to, any Anti - Terrorism Laws, (iii) Beneficiary is prohibited from dealing with, or engaging in any transaction with, pursuant to an Anti - Terrorism Laws, or (iv) is affiliated with any person or entity described in clauses (i) - (iii) of this definition. 1.22 Environmental Laws and Regulations. Any federal, state, or local law, statute, ordinance, or regulation, whether now or hereafter in effect, pertaining to health, industrial hygiene, or the environmental conditions on, under, or about the Land or the Improvements, including without limitation, the following, as now or hereafter amended, Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ( "CERCLA "), 42 U.S.C.A. §9601 et seq.; Resource, Conservation and Recovery Act ( "RCRA "), 24 U.S.C.A. §6901 et seq. as amended by the Superfund Amendments and Reauthorization Act of 1986 ( "SARA "), Pub. L. No. 99 -499, 100 Stat. 1613; the Toxic Substances Control Act, 15 U.S.C.A. §2601 et seq.; Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C.A. §1101 et seq.; Clean Water Act ( "CWA "), 33 U.S.C.A. §1251 et seq., Clean Air Act ( "CAA "), 42 U.S.C.A. §7401 et seq.; Federal Water Pollution Control Act ( "FWPCA "), 33 U.S.C.A. §1251 et seq.; ); Protection of Wetlands (Executive Order 11990, Mary 24, 1977); Coastal Management Act (Sections 307 (c) and (d)); Safe Water Driving Act (42 U.S.C. 201, 300(0 and 21U.S.C. 349); Protection of the Environment, Sole Source Aquifers (40 CFR 149); Endangered Species Act (50 CFR 402); Wild and Scenic Rivers Act (16 U.S.C. 1271 et seq. as amended, particularly section 7(b) and (c)); Farmland Protection Policy Act (7 CFR 658); Federal Actions to Address Environmental Justice in Minority Populations and Low Income Populations (Executive Order 12898, February 11, 1994); Parts of Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities: Noise Abatement and Control (24 CFR 51B); Explosive and Flammable Operations (24 CFR 51C); Toxic Chemicals and Radioactive Materials (24 CFR 58.5(a); Airport Clear zones and Accident Potential Zones (24 CFR51 D); and any corresponding T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 4 of 50 • EIFS Vol P s 00004670 OR. 1029 146 state laws or ordinances including but not limited to the Texas Water Code ( "TWC ") §26.001 et seq.; Texas Health & Safety Code ( "THSC ") §361.001 et seq.; Texas Solid Waste Disposal Act, Tex. Rev. Civ. Stat. Ann. Art. 4477 -7; and regulations, rules, guidelines, or standards promulgated pursuant to such laws, statute and regulations, as such statutes, regulations, rules, guidelines, and standards are amended from time to time. The environmental effects of each activity carried out with funds provided under the NSP program must be assessed in accordance with the provisions of the Texas NSP NOFA, National Environmental Policy Act of 1969 (NEPA) and the related activities listed in HUD's implementing regulations at 24 CFR Parts 50, 51, 55 and 58. Each such activity must have an environmental review completed and support documentation prepared complying with the National Environmental Policy Act of 1969 and regulations at 24 CFR Parts 50, 51, 55 and Part 58. No funds may be requested or committed to an activity before the completion of the environmental review process, including the requirements of 24 CFR §58.6, and written clearance has been provided by the Department. 1.23 Permitted Exceptions. The exceptions from coverage found in Schedule B of the commitment for mortgagee policy of title insurance issued by Walker County Title Company, a Texas corporation, as agent for Fidelity National Title Insurance, GF #201108784, issued March 22, 2012 to Beneficiary herein. ARTICLE II Conveyance in Trust 2.01 Grant. Grantor, for and in consideration of the debt evidenced by the Note, has granted, assigned, and conveyed, and by these presents does grant, assign and convey the Mortgaged Property, in trust unto the Trustee, his successors and assigns, to have and to hold the Mortgaged Property, unto Trustee, his successors and assigns, forever. To the extent permitted by law, the Personal Property shall be deemed to be a part of and affixed to the Real Property. In the event the estate of the Grantor in and to any of the Mortgaged Property is a leasehold estate, this conveyance shall include and the lien and security interest and assignment created hereby shall encumber and extend to all other, further or additional title, estates, interest or rights which may exist now or at any time be acquired by Grantor in or to the property demised under the lease creating such leasehold estate and including Grantor's rights, if any, to purchase the property demised under such lease and, if fee simple title to any of such property shall ever become vested in Grantor, such fee simple interest shall be encumbered by this Deed of Trust in the same manner as if Grantor had fee simple title to such property as of the date of execution hereof. Grantor hereby binds itself, its successors and assigns, to warrant and forever defend the Mortgaged Property unto Trustee, his successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof. 2.02 Security. This conveyance is made in trust, however, to secure and enforce the payment of the Note, the obligations of Grantor (and/or the maker of the Note, if different from Grantor) under the other Loan Documents and payment of the Other Indebtedness as defined herein. If Grantor shall perform the covenants and agreements herein contained, then, and only then, this conveyance shall become null and void and shall be released at Grantor's expense; otherwise it T: \ldld \Loan Docs \NSP\Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 5 of 50 Bk Vol Ps 00004670 OR 1029 147 shall remain in full force and effect. No release of this conveyance, or of the lien or security interest or assignment created and evidenced hereby, shall be valid unless executed by Beneficiary. 2.03 Other Indebtedness. This Deed of Trust shall secure, in addition to the Note, all funds hereafter advanced by Beneficiary to or for the benefit of Grantor as contemplated by any provision herein or for any other purpose, and all Other Indebtedness, of whatever kind or character, owing or which may hereafter become owing by Grantor to Beneficiary, whether such indebtedness is evidenced by note, open account, overdraft, endorsement, surety agreement, guaranty, or otherwise, it being contemplated that Grantor may hereafter become indebted to Beneficiary in further sum or sums ( "Other Indebtedness "); provided, however, in no event shall this Deed of Trust secure payment of any installment loan or any open -end line of credit established under Chapter 3, Chapter 4 or Chapter 15 of the Texas Finance Code. This Deed of Trust shall also secure all renewals and extensions of any of the Other Indebtedness secured hereby. If the Note or Other Indebtedness shall be collected by legal proceedings, whether through a probate or bankruptcy court or otherwise, or shall be placed in the hands of an attorney for collection after maturity, whether matured by the expiration of time or by any option given to the Beneficiary to mature same, Grantor agrees to pay Beneficiary's attorney's and collection fees in the amount set forth in the Note, and such fees shall be a part of the indebtedness secured hereby. ARTICLE III Grantor's Covenants and Representations Grantor hereby covenants, warrants and represents to and agrees with Beneficiary and with Trustee as follows: 3.01 Payment and Performance. Grantor (i) will pay all of the indebtedness secured hereby, together with the interest thereon, when the same shall become due, in accordance with the terms of the Note or any other instrument evidencing, securing, or pertaining to such indebtedness or evidencing any renewal or extension of such indebtedness, or any part thereof, and (ii) will punctually and properly perform all of Grantor's covenants, obligations, and liabilities under any other security agreement, mortgage, deed of trust, collateral pledge agreement, contract, assignment, loan agreement or any other instrument or agreement of any kind now or hereafter existing as security for, executed in connection with, or related to the indebtedness or other obligations secured hereby, or any part thereof. 3.02 Title and Right to Convey. Grantor (i) has in its own right good and indefeasible title in fee simple, except as otherwise provided herein, to the Mortgaged Property which is free from encumbrance superior to the indebtedness hereby secured, except as otherwise provided herein, and (ii) has full right to make this conveyance. 3.03 Insurance. Grantor shall require the builder and/or its general contractor to obtain and maintain at said builder's and/or general contractor's sole expense: (1) all -risk insurance with respect to all insurable Mortgaged Property, against loss or damage by fire, lightning, windstorm, explosion, hail, tornado and such hazards as are presently included in so- called "all- risk" T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 6 of 50 .BI-: Vol Ps 00004670 OR 1029 148 coverage and against such other insurable hazards as Beneficiary may reasonably require, in an amount not less than the unpaid balance of the Note, or if available and requested by Beneficiary 100% of the full replacement cost, including the cost of debris removal, without deduction for depreciation and sufficient to prevent Grantor and Beneficiary from becoming a coinsurer, such insurance to be in Builder's Risk (non- reporting) form during and with respect to any construction on the Real Property; (2) if and to the extent any portion of the Project is in a special flood hazard area, a flood insurance policy in an amount equal to the lesser of the principal face amount of the Note or the maximum amount available; (3) commercial general liability insurance, on an "occurrence" basis, against claims for bodily injury, death or property damage occurring on or about the Project, to afford protection in a "single limit" of not less than $1,000,000 in the event of bodily injury to, or death of, any number of persons or of damage to property arising out of one occurrence, for the benefit of Grantor and Beneficiary as named insured; and (4) such other insurance on the Mortgaged Property as may from time to time be reasonably required by Beneficiary, if available, (including but not limited to rent loss or boiler and machinery insurance) and against other insurable hazards or casualties which at the time are commonly insured against in the case of premises similarly situated, due regard being given to the height, type, construction, location, use and occupancy of buildings and improvements. All insurance policies shall be issued and maintained by insurers, in amounts, with deductibles, and in form reasonably satisfactory to Beneficiary, and shall require not less than fifteen (15) days' prior written notice to Beneficiary of any cancellation or change of coverage. All insurance policies maintained, or caused to be maintained, by Grantor with respect to the Mortgaged Property, except for public liability insurance, shall provide that each such policy shall be primary without right of contribution from any other insurance that may be carried by Grantor or Beneficiary and that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured. If any insurer which has issued a policy of hazard, liability or other insurance required pursuant to this Deed of Trust becomes insolvent or the subject of any bankruptcy, receivership or similar proceeding or if in Beneficiary's reasonable opinion the financial responsibility of such insurer is or becomes inadequate, Grantor shall, in each instance promptly upon the request of Beneficiary and at Grantor's expense, obtain and deliver to Beneficiary a like policy (or, if and to the extent permitted by Beneficiary, a certificate of insurance) issued by another insurer, which insurer and policy meet the requirements of this Deed of Trust. All such policies for loss of or damage to the Mortgaged Property shall contain a standard mortgage clause (without contribution) naming Beneficiary as mortgagee with loss proceeds payable to Beneficiary notwithstanding (i) any act, failure to act or negligence of or violation of any warranty, declaration or condition contained in any such policy by any named insured; (ii) the occupation or use of the Mortgaged Property for purposes more hazardous than permitted by the terms of any such policy; (iii) any foreclosure or other action by Beneficiary under this Deed of Trust; or (iv) any change in title to or ownership of the Mortgaged Property or any portion thereof, such proceeds to be held for application as provided in this Deed of Trust. A copy of each initial insurance policy (or a satisfactory certificate of insurance) shall be delivered to Beneficiary at the time of execution of this Deed of Trust, with premiums fully paid, and each renewal or substitute policy (or certificate) shall be delivered to Beneficiary, with premiums fully paid, at least ten (10) days before the termination of the policy it renews or replaces. Grantor shall pay all premiums on policies required hereunder as they become due and payable and promptly deliver to Beneficiary evidence satisfactory to Beneficiary of the timely payment thereof. If any loss occurs at any time when T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 7 of 50 • �GE. Vra 1 Po 00004671J OR 1029 149 Grantor has failed to perform Grantor's covenants and agreements in this section, Beneficiary shall nevertheless be entitled to the benefit of all insurance covering the loss and held by or for Grantor, to the same extent as if it had been made payable to Beneficiary. Upon any foreclosure hereof or transfer of title to the Mortgaged Property in extinguishment of the whole or any part of the secured indebtedness, all of Grantor's right, title and interest in and to the insurance policies referred to in this section (including unearned premiums) and all proceeds payable thereunder shall thereupon vest in the purchaser at foreclosure or other such transferee, to the extent permissible under such policies. Beneficiary shall have the right (but not the obligation) to receive the proceeds of, all insurance for loss of or damage to the Mortgaged Property. If Grantor fails to act reasonably and promptly in making proof of loss for, or settling or adjusting any claim under, any such insurance, then Beneficiary shall have the right to make such proof and settle and/or adjust, such claim; and the expenses incurred by Beneficiary in the adjustment and collection of insurance proceeds shall be a part of the secured indebtedness and shall be due and payable to Beneficiary on demand. Beneficiary shall not be, under any circumstances, liable or responsible for failure to collect or exercise diligence in the collection of any of such proceeds or for the obtaining, maintaining or adequacy of any insurance or for failure to see, to the proper application of any amount paid over to Grantor. Any such proceeds received by Beneficiary shall, after deduction therefrom of all reasonable expenses actually incurred by Beneficiary, including attorneys' fees, at Beneficiary's option be (a) released to Grantor, or (b) applied (upon compliance with such reasonable terms and conditions as may be required by Beneficiary) to repair or restoration, either partly or entirely, of the Mortgaged Property so damaged, or (c) applied to the payment of the secured indebtedness in such order and manner as Beneficiary, in its sole discretion, may elect, whether or not due; provided, however, that Beneficiary shall make such proceeds available to Grantor to pay for restoration or repair of the Mortgaged Property, so damaged, if either (i) the amount of such proceeds is less than 5% of the construction costs, or (ii) Grantor agrees to reasonable, Construction Loan provisions (primarily regarding advances of those proceeds and Beneficiary's "pricing" of its activities and expenses connected therewith) and amendments to the Loan Documents executed in connection with the Note, as then proposed by Beneficiary. In any event, the unpaid portion of the secured indebtedness shall remain in full force and effect and the payment thereof shall not be excused. Grantor shall at all times comply with the requirements of the insurance policies required hereunder and of the issuers of such policies and of any board of fire underwriters or similar body as applicable to or affecting the Mortgaged Property. 3.04 Taxes and Other Impositions. Grantor will pay all taxes and assessments against or affecting the Mortgaged Property as the same become due and payable, and, if Grantor fails to do so, Beneficiary may pay them, together with all costs and penalties thereon, at Grantor's expense or out of an individual reserve account created to fund any necessary repairs for Mortgaged Property maintained by a first lien lender or bank trustee. Grantor, however, may in good faith, in lieu of paying such taxes and assessments as they become due and payable, contest by appropriate proceedings the validity thereof, and pending such contest Grantor shall not be deemed in default hereunder because of such nonpayment, (i) if prior to delinquency of the asserted tax or assessment, Grantor furnishes Beneficiary an indemnity bond, conditioned that such tax or assessment with interest, cost and penalties be paid as herein stipulated, secured by a deposit in cash, or security or surety acceptable to Beneficiary, in the amount of the contested tax or assessment, and a reasonable additional sum to pay all possible costs, interest and penalties T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 8 of 50 •Bl: Vol Ps 00004670 OR 1029 150 imposed or incurred in connection therewith, and (ii) if Grantor promptly pays any amount adjudged by a court of competent jurisdiction to be due, with all costs, penalties and interest thereon, before such judgment becomes final or before any writ or order is issued under which the Mortgaged Property may be sold pursuant to such judgment, whichever first occurs. Grantor shall provide to Beneficiary, on or before January 31 of each year during the term of the Note secured hereby, written evidence that all ad valorem taxes and other assessments against the Mortgaged Property have been paid in full. 3.05 Tax and Insurance Escrow. Intentionally omitted. 3.06 Assignment of Awards. If the lien secured by this Deed of Trust is first and superior, Grantor will hereby assign all judgments, decrees and awards for injury or damage to the Mortgaged Property, all awards or settlements pursuant to proceedings for condemnation thereof, in their entirety to Beneficiary, who may apply the same to the indebtedness secured hereby in such manner as it may elect. Grantor will further hereby authorize Beneficiary to execute and deliver valid acquittances for, and to appeal from, any such award, judgment or decree in the name of Grantor. In the event Beneficiary, as a result of any such judgment or decree of award, believes that the payment or performance of any obligation secured by this Deed of Trust is impaired, Grantor authorizes Beneficiary to declare, without notice, all of the indebtedness secured hereby immediately due and payable. 3.07 Trustee's Title and Future Laws. If, while this trust is in force, the title of Trustee to, or the interest of Beneficiary in, the Mortgaged Property or any part thereof, shall be endangered or shall be attacked directly or indirectly, Grantor authorizes Beneficiary, at Grantor's expense, to take all necessary and proper steps for the defense of such title or interest, including the employment of counsel, the prosecution or defense of litigation, and the compromise or discharge of claims made against such title or interest. If at any time any law shall be enacted imposing or authorizing the imposition of any tax upon this Deed of Trust, or upon any rights, titles, liens, or security interests created hereby, or upon the Note, or any part thereof, Grantor shall immediately pay all such taxes. In the alternative, Grantor may, in the event of the enactment of such a law, and must, if it is unlawful for Grantor to pay such taxes, prepay the Note and the Other Indebtedness in full within sixty (60) days after demand therefore by Beneficiary. Grantor shall at any time and from time to time, furnish promptly, upon request, a written statement or affidavit, in such form as may be required by Beneficiary, stating the unpaid balance of the Note, and that there are no offsets or defenses against full payment of the Note and performance of the terms hereof, or if there are any such offsets and defenses, specifying them. 3.08 Repayment to Beneficiary. If, pursuant to any covenant contained herein or in any other instrument executed in connection with the loan evidenced by the Note or in connection with any Other Indebtedness secured hereby, Beneficiary shall expend any money chargeable to Grantor or subject to reimbursement by Grantor under the terms of such covenant or agreement, Grantor will repay the same to Beneficiary immediately at the place where the Note or Other Indebtedness secured hereby is payable, together with interest thereon at the rate of interest payable on account of the Note or such Other Indebtedness in the event of a default hereunder T: \ldld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 9 of 50 Bk Vol F's 00004670 OR 1029 151 from and after the date of Beneficiary's making such payment. The sum of each such payment shall be added to the indebtedness hereby secured and thereafter shall form a part of the same, and it shall be secured by this Deed of Trust and, by subrogation to all of the rights of the person or entity receiving such payment. 3.09 Condition of Property. Upon completion of certain renovations, additions and improvements to the Project, Grantor will keep every part of the Mortgaged Property in good condition and presenting a good appearance, making promptly all repairs, renewals and replacements necessary to such end, and doing promptly all else necessary to such end. Grantor will discharge all claims for labor performed and material furnished therefore, and will not suffer any lien of mechanics or materialman to attach to any part of the Mortgaged Property. Grantor will guard every part of the Mortgaged Property from removal, destruction and damage, and will not do or suffer to be done any act whereby the value of any part of the Mortgaged Property may be lessened. 3.10 Successors. If the ownership, control or management of the Mortgaged Property or any part thereof becomes vested in a person other than Grantor, or in the event of a change of ownership of more than thirty percent (30 %) interest in any Grantor other than an individual, Grantor agrees that Beneficiary may, without notice to Grantor, deal with such successor or successors in interest with reference to this Deed of Trust and to the indebtedness hereby secured in the same manner as with Grantor without in any way vitiating or discharging Grantor's liability hereunder or upon the indebtedness hereby secured. No sale of the Mortgaged Property, and no forbearance on the part of Beneficiary, and no extension of the time for the payment of the indebtedness hereby secured, given by Beneficiary, shall operate to release, discharge, modify, change or affect the original liability of Grantor or the liability of any guarantors or sureties of Grantor, either in whole or in part. 3.11 Compliance with Governmental Requirements. Grantor covenants that the Mortgaged Property and the improvements now or hereafter erected thereupon and the intended use thereof by Grantor comply with all Governmental Requirements, including, without limitation, all applicable restrictive covenants, zoning ordinances, subdivision and building codes, flood disaster laws, applicable health and Environmental Laws and Regulations and all other ordinances, orders or requirements issued by any state, federal or municipal authorities having or claiming jurisdiction over the Mortgaged Property. Any rehabilitation of an abandoned or foreclosed upon home or residential property under NSP shall be to the extent necessary to comply with applicable, laws, codes, and other requirements related to housing safety, quality, and habitability, in order to sell, rent, or redevelop such homes and properties. Rehabilitation may include improvements to increase the energy efficiency or conservation of such homes and properties or provide a renewable energy source or sources for such homes and properties. Housing and Economic Recovery Act Section 2301 (d)(2) of 2008. The eligibility of renewable energy equipment on existing structures shall be determined by the Beneficiary. Housing that is constructed, including new construction, or rehabilitation with NSP funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 10 of 50 •Bk Vol Ps 00004670 OR 1029 152 time of completion. In the absence of a local code for new construction or rehabilitation, the housing must meet the most current International Building Code. In addition, all NSP funded housing must meet the Texas Minimum Construction Standards, as published in the Texas NSP NOFA. NSP assisted new construction or rehabilitation will comply with HUD Program lead - based paint requirements including lead screening in housing built before 1978 in accordance with 24 CFR Part 92.355 and 24 CFR Part 35, subparts A, B, J, K, M, and R. Multifamily housing assisted with NSP funds must meet the accessibility requirements at 24 CFR part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Section 794) and covered multifamily dwellings, as defined at 24 CFR 100.201, and the design and construction requirements at 24 CFR 100.205, which implement the Fair Housing Act (42 U.S.C. 3601 - 3619). Finally, NSP assisted housing must meet Energy Efficiency Standards in accordance with Section 2306.187 of the Texas Government Code. 3.12 Money Laundering; Anti - Terrorism Laws. (a) Grantor will furnish all of the funds for the purchase of the Mortgaged Property, other than funds supplied by Beneficiary, and such funds will not be from sources that are described in 18 U.S.C.A. §1956 and §1957 as funds or property derived from "specified unlawful activity." (b) None of Grantor, and constituent party nor Guarantor, if applicable, (nor any person or entity owning an interest in Grantor, and constituent party or Guarantor, if applicable) (i) is a Prohibited Person, or (ii) has violated any Anti- Terrorism Laws. No Prohibited Person holds or owns any interest of any nature whatsoever in Grantor, any constituent party or Guarantor, if applicable, as applicable, and none of the funds of Grantor, any constituent party or Guarantor, if applicable, have been derived from any activity in violation of Anti- Terrorism Laws. 3.13 No Foreign Person. Neither Maker, nor Guarantor, if applicable, is a "foreign person" within the meaning of §1445(f)(3) of the Tax Code. 3.14 Payment of Labor and Materials. Grantor will promptly pay all bills for labor, materials, and specifically fabricated materials incurred in connection with the Mortgaged Property and never permit to exist in respect of the Mortgaged Property or any party thereof any lien or security interest, even though inferior to the liens and security interest, hereof, for any such bill, and in any event never permit to be created or exist in respect of the Mortgaged Property or any part thereof any other or additional lien or security interest on a parity with, superior, or inferior to any of the liens or security interest hereof, except for the Permitted Exceptions. 3.15 Sources and Uses of Funds. Without limiting the requirements of Section 3.12 hereof, Grantor has taken, and shall continue to take until the Indebtedness is fully repaid and each and all of the Obligations are satisfied in full, such measures as are required by any and all Anti - Terrorism Laws to assure that the funds invested in Grantor and/or used to make payments on the Indebtedness or the Obligations are derived from (a) transactions and sources that do not violate any Anti- Terrorism Laws, nor to the extent such funds originate outside the United States, do not violate the laws of the jurisdiction from which they originated; and (b) permissible sources T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 11 of 50 •Bk Vol P9 00004670 OR 1029 153 under Anti - Terrorism Laws or, to the extent such funds originate outside the United States, under the laws of the jurisdiction from which they originated. If Beneficiary reasonably believes that Grantor, Guarantor, if applicable, any constituent party, or any affiliate of any such parties may have breached any of the representations, warranties or covenants set forth in this Deed of Trust or the other Loan Documents relating to any Anti - Terrorism Laws, any violations of the Byrd Amendment referenced herein and Section 3.16 hereof, or the identity of any person or entity as a Prohibited Person, or person influencing or attempting to influence the federal persons referenced herein and Section 3.16 hereof, then, Beneficiary shall have the right, with or without notice to Grantor, to (1) notify the appropriate governmental authority and to take such action as such governmental authority or applicable Anti- Terrorism Laws or Byrd Amendment may direct; (2) withhold Loan advances and segregate the assets constituting the Loan or any of Grantor's funds or assets deposited with or otherwise controlled by Beneficiary pursuant to the Loan Documents; (3) decline any payment (or deposit such payment with an appropriate United States governmental authority or court) or decline any prepayment or consent request; and/or (4) declare an Event of Default and immediately accelerate the Loan in connection therewith, Grantor agrees that none of Grantor, Guarantor, if applicable, nor any constituent party will assert any claim (and hereby waives, for itself and on behalf of its affiliates, successors, assigns, representatives or agents for any form of damages as a result of any of the foregoing actions, regardless of whether or not Beneficiary 's reasonable belief is ultimately demonstrated to be accurate. Without limiting the requirements of Section 3.11 hereof, Grantor has taken, and shall continue to take until the Indebtedness is fully repaid and each and all of the Obligations are satisfied in full, such measures as are required by the Byrd amendment to the fiscal 1990 appropriations measures for the United States Department of the Interior (P. L. 101 -121) and any guidelines and rules issued by any federal entity in connection therewith, if applicable, to assure that no federal appropriated funds have been paid or will be paid, by or on behalf of Grantor, (i) to any person influencing or attempting to influence, or (ii) for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this award and loan under the NSP. 3.16 Byrd Amendment: Prohibition for Influencing Federal Entities. Grantor covenants that, to the best of Grantor's knowledge, Grantor has complied with all restrictions, certifications and disclosure requirements contained in the Byrd amendment to the fiscal 1990 appropriations measures for the United States Department of the Interior (P.L. 101 -121) and with any guidelines and rules issued by any federal entity in connection therewith, if applicable. ARTICLE IV Events of Default 4.01 Events of Default. The following shall be events of default ( "Events of Default ") hereunder: (a) The sale of the Mortgaged Property, or any part thereof without, the prior written consent of Beneficiary, except the sale to an Eligible Household. T: \ldld \Loan Docs \NSP\Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 12 of 50 • Bk Vol P s 0000467W OR 1029 154 (b) Grantor's agreement to or the granting of an easement, restrictive covenant or other encumbrance affecting the Mortgaged Property without the prior written consent of Beneficiary. (c) If Grantor is a corporation, partnership, or limited liability company, more than thirty percent (30 %) of ownership of Grantor (determined by interest held and not by number of the shareholders, partners or members, as applicable) changes other than changes resulting from the transfer of shares or interest among the present owners of Grantor, such determination to be made by aggregating all ownership changes (other than those involving only the present owners of Grantor) occurring subsequent to the date hereof. (d) Grantor's failure to promptly pay when due the indebtedness secured hereby, or any part thereof and such failure continues for a period of thirty (30) days after written notice of such failure is given by Beneficiary to Grantor; or Grantor's failure to keep and perform any of the covenants (other than the failure to pay the indebtedness) or agreements contained herein or in any of the other Loan Documents within thirty (30) days after written notice of such failure is given by Beneficiary to Grantor. (e) Beneficiary's discovery that any statement, representation or warranty in the Note, this Deed of Trust or the other Loan Documents, or in any other writing delivered to Beneficiary in connection with the indebtedness secured hereby is false, misleading or erroneous in any material respect. (f) If Grantor, or any person liable for the indebtedness secured hereby, or any part thereof, including any guarantor of or surety for the performance of any obligation hereunder, (i) files a voluntary petition in bankruptcy; (ii) makes an assignment for the benefit of any creditor; (iii) suffers an order for relief in bankruptcy to be entered against it; (iv) admits in writing its inability to pay its debts generally as they become due; (v) applies for or consents to the appointment of a receiver, trustee, or liquidator of Grantor or of any such guarantor or surety or of all or a substantial part of its assets; (vi) takes advantage of or seeks any relief under any bankruptcy, reorganization, debtor's relief or other insolvency law now or hereafter existing; (vii) files an answer admitting the material allegations of, or consenting to, or defaulting in, a petition against Grantor or any such guarantor or surety, in any bankruptcy, reorganization, or other insolvency proceedings; or (viii) institutes or voluntarily is or becomes a party to any other judicial proceedings intended to effect a discharge of the debts of Grantor or of any guarantor or surety, in whole or in part, or to effect a postponement of the maturity or the collection thereof, or to effect a suspension of any of the rights or powers of Beneficiary granted in the Note, this Deed of Trust or in any other instrument evidencing or securing the indebtedness secured hereby. (g) If an order, judgment or decree shall be entered by any court of competent jurisdiction appointing a receiver, trustee or liquidator of Grantor or of any guarantor or surety or of all or any substantial part of the assets of Grantor or of any such guarantor or surety; or if Grantor or any guarantor or surety shall fail to pay any money judgment against it within thirty (30) days after any such judgment becomes final and non - appealable. (h) If Grantor or any such guarantor or surety shall fail to have discharged any attachments, sequestration, or similar proceedings against any assets of Grantor or of any T: \ldld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 13 of 50 Bk V a l Ps 0u004670 OR 1029 155 guarantor or surety which remains undischarged and unstayed for a period of thirty (30) consecutive days; or if the Mortgaged Property is placed under control or in the custody of any court, or if Grantor abandons any of the Mortgaged Property. (i) Grantor's execution or delivery of any pledge, security agreement, mortgage or deed of trust covering all or any portion of the Mortgaged Property ( "Subordinate Mortgage ") without the prior written consent of Beneficiary (which consent may be withheld). In the event of consent by Beneficiary to the foregoing or in the event the foregoing prohibition is determined by a court of competent jurisdiction to be unenforceable by the provisions of any applicable law, Grantor will not execute or deliver any Subordinate Mortgage unless there shall have been delivered to Beneficiary not less than ten (10) days prior to the date thereof a copy thereof which shall contain express covenants to the effect: (i) That the Subordinate Mortgage is in all respects unconditionally subject and subordinate to the lien, security interest and assignment evidenced by this Deed of Trust and each term and provision hereof; (ii) That if any action or proceeding shall be instituted to foreclose the Subordinate Mortgage (regardless of whether the same is a judicial proceeding or pursuant to a power of sale contained therein), no tenant of any portion of the Mortgaged Property will be named as a party defendant, nor will any action be taken with respect to the Mortgaged Property which would terminate any occupancy or tenancy of the Mortgaged Property without the prior written consent of Beneficiary; (iii) That all of the rents, royalties (including, but not limited to, royalties arising out of the sale of oil, gas, and any other minerals produced from the Mortgaged Property, or any properties pooled with the Mortgaged Property), issues, profits, revenue, income and other benefits derived from the Mortgaged Property or arising from the use or enjoyment of any portion thereof or from any lease or agreement pertaining thereto, if collected through a receiver or by the holder of the Subordinate Mortgage, shall be applied first to the obligations secured by this Deed of Trust, including principal and interest due and owing on or to become due and owing on the Note and the Other Indebtedness secured hereby and then to the payment of maintenance, operating charges, taxes, assessments, and disbursements incurred in connection with the ownership, operating and maintenance of the Mortgaged Property; and (iv) That if any action or proceeding shall be brought to foreclose the Subordinate Mortgage, written notice of the commencement thereof will be given to Beneficiary contemporaneously with the commencement of such action or proceeding. (j) The liquidation, termination, dissolution, merger, consolidation or failure to maintain good standing in the State of Texas (or in the case of an individual, the death or legal incapacity) of the owner of the Mortgaged Property or any person obligated to pay any part of the secured indebtedness. (k) The liens, mortgages or security interests of Beneficiary in any of the Mortgaged Property become unenforceable in whole or in part, or cease to be of the priority herein required, T: \ldld \Loan Docs \NSP\Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 14 of 50 is Vol Ps 00004670 OR 1029 156 or the validity or enforceability thereof, in whole or in part, shall be challenged or denied by Grantor or any person obligated to pay any part of the secured indebtedness. (1) If the ownership of any of the Mortgaged Property is forfeited or otherwise transferred to any governmental agency under a federal or state law for which forfeiture of property is a potential penalty or remedy. (m) A default or event of default occurs under any other documents executed as security for or in connection with the Note or under any other documents evidencing a loan or indebtedness owed by Grantor to Beneficiary or any other agency of the State of Texas, and the same is not remedied within the applicable period for curing such default (if any). (n) Any portion of the surface of the Mortgaged Property is disturbed or otherwise used by any person in connection with the exploration for or production of any oil, gas or other minerals without the prior written consent of Beneficiary. (o) If Grantor, without Beneficiary' s consent, (i) seeks or acquiesces in a zoning reclassification, zoning variance or special exception to zoning of all or any portion of the Mortgaged Property, (ii) grants or consents to any easement, dedication, plat, or restriction (or allows any easement to become enforceable by prescription), (iii) seeks or acquiesces to any imposition of any addition of Governmental Requirements or any amendment or modification thereof, covering all or any portion of the Mortgaged Property. 4.02 Remedies. Upon the occurrence of any Event of Default, Beneficiary, at its sole option, may declare the Note and all Other Indebtedness secured hereby immediately due and payable and/or may pursue any rights and remedies it may have hereunder or at law or in equity. ARTICLE V Noniudicial Foreclosure and Sale 5.01 Trustee's Sale. Upon an Event of Default, Grantor authorizes and empowers the Trustee, at the request of Beneficiary, at any time during the continuance of any default, to sell all or any portion of the Mortgaged Property, at public auction, to the highest bidder, for cash or for credit against the indebtedness secured hereby if Beneficiary is the highest bidder, at the county court house of the county in Texas in which such Mortgaged Property or any part thereof is situated, as herein described, in the area designated by the commissioners court for such purpose pursuant to a recordation of such designation in the real property records of such county, or if no such recorded designation by the commissioners court has been made, in the area at the county court house designated in the notice of proposed sale posted, filed and served in accordance with the further provisions of this paragraph, between the hours of 10:00 o'clock A.M. and 4:00 o'clock P.M. on the first Tuesday of any month. The Trustee shall give notice of the time, place and terms of said sale, and of the property to be sold, as follows: Notice of such proposed sale shall be given by posting written notice thereof at least twenty -one (21) days preceding the date of the sale at the court house door, and by filing a copy of the Notice in the office of the county clerk of the county in which the sale is to be made, and if T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 15 of 50 Sk Vol F` s 00004670 OR 1029 157 the property to be sold is situated in more than one county, one notice shall be posted at the court house door and filed with the county clerk of each county in which the property to be sold is situated. In addition, Beneficiary shall, at least twenty -one (21) days preceding the date of sale, serve written notice of the proposed sale by certified mail on each debtor obligated to pay the debt secured hereby according to the records of beneficiary. Service of such notice shall be completed upon deposit of the notice, enclosed in a postpaid wrapper, properly addressed to such debtor at the most recent address as shown by the records of Beneficiary, in a post office or official depository under the care and custody of the United States Postal Service. The affidavit of any person having knowledge of the facts to the effect that such service was completed shall be prima facie evidence of the fact of service. Any notice that is required or permitted to be given to Grantor may be addressed to Grantor at Grantor's mailing address. Any notice that is to be given by certified mail to any other debtor may, if no address for such other debtor is shown by the records of Beneficiary, be addressed to such other debtor at Grantor's mailing address. Notwithstanding the foregoing provisions of this paragraph, notice of such sale given in accordance with the requirements of the applicable law of the State of Texas in effect at the time of such sale shall constitute sufficient notice of such sale. Grantor hereby authorizes and empowers the Trustee to sell all or any portion of the Mortgaged Property, together or in lots or parcels, as the Trustee may deem expedient, and to execute and deliver to the purchaser or purchasers of such property, good and sufficient deeds of conveyance of fee simple title with covenants of general warranty made on behalf of the Grantor. In no event shall the Trustee be required to exhibit, present or display at any such sale, any of the personalty described herein to be sold at such sale. The Trustee making such sale shall receive the proceeds thereof and shall apply the same as follows: (i) first, he shall pay the reasonable expense of executing this trust including a reasonable Trustee's fee or commission; (ii) second, he shall pay, so far as may be possible, the indebtedness secured hereby, discharging first that portion of the indebtedness arising under the covenants or agreements herein contained and not evidenced by the Note; (iii) third, he shall pay the residue, if any, to the person or persons legally entitled thereto. Payment of the purchase price to the Trustee shall satisfy the obligation of the purchaser at such sale therefore, and such purchaser shall not be bound to look after the application thereof. The sale or sales by the Trustee of less than the whole of the Mortgaged Property shall not exhaust the power of sale herein granted, and the Trustee is specifically empowered to make successive sale or sales under such power until the whole of the Mortgaged Property shall be sold; and if the proceeds of such sale or sales of less than the whole of such Mortgaged Property shall be less than the aggregate of the indebtedness secured hereby and the expense of executing this trust, this Deed of Trust and the lien, security interest and assignment hereof shall remain in full force and effect as to the unsold portion of the Mortgaged Property just as though no sale or sales had been made; provided, however, that Grantor shall never have any right to require the sale or sales of less than the whole of the Mortgaged Property, but Beneficiary shall have the right, at its sole election, to request the Trustee to sell less than the whole of the Mortgaged Property. If default is made hereunder, the holder of the indebtedness or any part thereof on which the payment is delinquent shall have the option to proceed with foreclosure in satisfaction of such item either through judicial proceedings or by directing the Trustee to proceed as if under a full foreclosure, conducting the sale as herein provided without declaring the entire indebtedness secured hereby due, and if sale is made because of default of an installment, or a part of an installment, such sale T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 16 of 50 Ok Vol Ps 00004670 ❑R 1029 158 may be made subject to the unmatured part of the Note and Other Indebtedness secured by this Deed of Trust; and it is agreed that such sale, if so made, shall not in any manner affect the unmatured part of the indebtedness secured by this Deed of Trust, but as to such unmatured part, this Deed of Trust shall remain in full force and effect as though no sale had been made under the provisions of this paragraph. Several sales may be made hereunder without exhausting the right of sale for any unmatured part of the indebtedness secured hereby. 5.02 Successor Trustee. If the Trustee shall die or become disqualified from acting in the execution of this trust, or shall fail or refuse to execute the same when requested by Beneficiary to do so; or if, for any reason, Beneficiary shall prefer to appoint a substitute Trustee to act instead of the Trustee named herein, Beneficiary shall have full power to appoint, by written instrument, a substitute Trustee, and, if necessary, several substitute Trustees in succession, who shall succeed to all the estate, rights, powers, and duties of the original Trustee named herein. Such appointment may be executed by any authorized agent of Beneficiary; and if Beneficiary is a corporation and such appointment is executed in its behalf by any officer of such corporation, such appointment shall be conclusively presumed to be executed with authority and shall be valid and sufficient without proof of any action by the board of directors or any superior officer of the corporation. In the event of an assignment of the interests of Beneficiary under this Deed of Trust, all rights and remedies granted to Beneficiary in this Deed of Trust shall inure to the benefit of, and may be exercised by, the assignee. 5.03 Acts and Statements of Trustee. Grantor hereby agrees, in its behalf and in behalf of its heirs, executors, administrators, successors, personal representatives and assigns, that any and all statements of fact or other recitals made in any deed of conveyance given by the Trustee, with respect to the identity of Beneficiary, or with respect to the occurrence or existence of any default, or with respect to the acceleration of the maturity of any indebtedness secured hereby, or with respect to the request to sell, the notice of sale, the giving of notice to all debtors legally entitled thereto, the time, place, terms, and manner of sale, and receipt, distribution, and application of the money realized therefrom, or with respect to the due and proper appointment of a substitute Trustee, and, without being limited by the foregoing, with respect to any other act or thing having been duly done by the Beneficiary or by the Trustee hereunder, shall be taken by all courts of law and equity as prima facie evidence that the statements or recitals state facts and are without further question to be so accepted, and Grantor hereby ratifies and confirms every act that Trustee or any substitute Trustee hereunder may lawfully do in the premises by virtue hereof. 5.04 Disaffirmance by Purchaser. The purchaser at any trustee's or foreclosure sale hereunder may disaffirm any easement granted, or rental, lease or other contract made, in violation of any provision of this Deed of Trust, and may take immediate possession of the Mortgaged Property free from, and despite the terms of, such grant of easement and rental or lease contract, subject to the Protecting Tenants at Foreclosure Act of 2009, Title VII of the Helping Families Save Their Homes Act of 2009 (Public Law 111 -22, §702) and other governmental requirements. T: \ldld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville\Interim Construction Deed of Trust_20120227_ v4.doc Page 17 of 50 •BI< Vol Ps 00004670 OR 1029 159 5.05 Beneficiary May Bid. Beneficiary shall have the right to become the purchaser at all sales to enforce this trust, being the highest bidder, and to have the amount of which such property is sold credited on the indebtedness secured hereby which is then owing. ARTICLE VI Hazardous Materials 6.01 Definitions. For the purpose of this Deed of Trust, Grantor, Beneficiary and Trustee agree that, unless the context otherwise specifies or requires, the following terms shall have the meaning herein specified: (a) Hazardous Materials: Any substance the presence of which on the Mortgaged Property is regulated by any Governmental Requirements and Environmental Laws and Regulations, including but not limited to: (i) any "hazardous waste" as defined by the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et semc .), as amended from time to time, and regulations promulgated thereunder; (ii) any "hazardous substance" as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.) ( "CERCLA" or "SuperFund "), as amended from time to time, and regulations promulgated thereunder; (iii) asbestos; (iv) polychlorinated biphenyls; (v) any petroleum -based products; and (vi) underground storage tanks, whether empty, filled or partially filled with any substance. (b) Hazardous Materials Contamination: The contamination (whether presently existing or hereafter occurring) of the improvements, facilities, soil, groundwater, air or other elements on, over or under the Mortgaged Property by Hazardous Materials, or the contamination of the improvements, facilities, soil, ground- water, air or other elements on, over or under any other property as a result of Hazardous Materials at any time (whether before or after the date of this Deed of Trust) emanating from the Mortgaged Property. 6.02 Representations and Warranties. Grantor hereby represents and warrants that to the best of the Grantor's knowledge: (a) No Hazardous Materials are located on the Mortgaged Property or have been released into the environment, or deposited, discharged, placed or disposed of at, on, under or near the Mortgaged Property, or transported to or from the Mortgaged Property. No portion of the Mortgaged Property is being used or, to the best of Grantor's knowledge, has been used at any previous time, for the disposal, storage, treatment, processing, manufacturing or other handling of Hazardous Materials nor is any part of the Mortgaged Property affected by any Hazardous Materials Contamination. (b) No Hazardous Materials are located on property adjoining the Mortgaged Property. No property adjoining the Mortgaged Property has ever been used at any previous time for the disposal, storage, treatment, processing, manufacturing or other handling of Hazardous Materials. No property adjoining the Mortgaged Property is affected by Hazardous Materials Contamination. T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 18 of 50 • • Bk Vol P9 00004670 OR 1029 160 (c) No asbestos or asbestos containing materials have been installed, used, incorporated into, or disposed of on the Mortgaged Property. (d) No polychlorinated biphenyls or materials containing polychlorinated biphenyls are located on or in the Mortgaged Property, in the form of electrical transformers, fluorescent light fixtures with ballasts, cooling oils, or any other device or form. (e) No underground storage tanks are located on the Mortgaged Property or, to the best of Grantor's knowledge, were previously located on the Mortgaged Property and subsequently removed or filled. (f) No investigation, administrative order, consent order, agreement, litigation or settlement with respect to Hazardous Materials or Hazardous Materials Contamination is proposed, threatened, anticipated or in existence with respect to the Mortgaged Property. The Mortgaged Property and its existing and prior uses comply and at all times have complied with any applicable Governmental Requirements relating to environmental matters or Hazardous Materials. There is no condition on the Mortgaged Property which is in violation of any applicable Governmental Requirements relating to Hazardous Materials, and Grantor has received no communication from or on behalf of any Governmental Authority that any such condition exists. The Mortgaged Property is not currently on, and to the best of Grantor's knowledge, has never been on, any federal, state or local "Superfund" or "Superlien" list. (g) Except for studies, audits, and reports pertaining to the Mortgaged Property which have been made available to Beneficiary, there have been no environmental investigations, studies, audits, tests, reviews or other analyses conducted by or which are in the possession of or available to Grantor in relation to the Mortgaged Property. (h) All representations and warranties contained in this Section 6.02 shall survive the consummation of the transactions contemplated by this Deed of Trust. 6.03 Covenants. Grantor agrees: (a) that Grantor shall not receive, store, dispose or release any Hazardous Materials on or to the Mortgaged Property or transport any Hazardous Materials to or from the Mortgaged Property or permit the existence of any Hazardous Materials Contamination; (b) to give written notice to Beneficiary immediately upon Grantor's acquiring knowledge of the presence of any Hazardous Materials on the Mortgaged Property or of the transport of any Hazardous Materials to or from the Mortgaged Property or of the existence of any Hazardous Materials Contamination, with a full description thereof; (c) promptly, at Grantor's sole cost and expense, to comply with any Governmental Requirements requiring the removal, treatment or disposal of such Hazardous Materials or Hazardous Materials Contamination and provide Beneficiary with satisfactory evidence of such compliance; (d) to provide Beneficiary, within thirty (30) days after demand by Beneficiary, with financial assurance evidencing to Beneficiary's satisfaction that the necessary funds are available to pay the cost of removing, treating and disposing of such Hazardous Materials or Hazardous Materials Contamination and discharging any assessments which may be established on the Mortgaged Property as a result thereof; and (e) to insure that all leases, licenses, and agreements of any kind now or hereafter executed which permit any party to occupy, possess, or use in any way the T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 19 of 50 SEk Lrot ` �� 00004.67 0 OR 1029 161 Mortgaged Property or any part thereof, whether written or oral, include an express prohibition on the disposal or discharge of any Hazardous Materials at or affecting the Mortgaged Property, and a provision that failure to comply with such prohibition shall expressly constitute a default under any such agreement. 6.04 Liens. Grantor shall not cause or suffer any liens to be recorded against the Mortgaged Property as a consequence of, or in any way related to, the presence, remediation or disposal of Hazardous Materials in or about the Mortgaged Property, including any so- called state, federal or local "Superfund" lien relating to such matters. 6.05 Site Assessments. Beneficiary (by its officers, employees and agents) at any time and from time to time, either prior to or after the occurrence of an Event of Default, may contract for the services of persons (the "Site Reviewers ") to perform environmental site assessments ( "Site Assessments ") on the Mortgaged Property for the purpose of determining whether there exists on the Mortgaged Property any environmental condition which could result in any liability, cost or expense to the owner, occupier or operator of such Mortgaged Property arising under any Governmental Requirements relating to Hazardous Materials. The Site Assessments may be performed at any time or times, upon reasonable notice, and under reasonable conditions established by Grantor which do not impede the performance of the Site Assessment. The Site Reviewers are hereby authorized to enter upon the Mortgaged Property for such purposes. The Site Reviewers are further authorized to perform both above and below - ground testing for environmental damage or the presence of Hazardous Materials or Hazardous Materials Contamination on the Mortgaged Property and such other tests on the Mortgaged Property as may be necessary to conduct the Site Assessments in the reasonable opinion of the Site Reviewers. Grantor will supply to the Site Reviewers such historical and operational information regarding the Mortgaged Property as may be reasonably requested by the Site Reviewers to facilitate the Site Assessments and will make available for meetings with the Site Reviewers appropriate personnel having knowledge of such matters. On request, Beneficiary shall make the results of such Site Assessments fully available to Grantor, which (prior to an Event of Default) may at its election participate under reasonable procedures in the direction of such Site Assessments and the description of tasks of the Site Reviewers. The cost of performing such Site Assessments shall be paid by Grantor upon demand of Beneficiary and any such obligations shall be indebtedness secured by this Deed of Trust. 6.06 INDEMNIFICATION GRANTOR SHALL AT ALL TIMES RETAIN ANY AND ALL LIABILITIES ARISING FROM THE PRESENCE, HANDLING, TREATMENT, STORAGE, TRANSPORTATION, REMOVAL OR DISPOSAL OF HAZARDOUS MATERIALS ON THE MORTGAGED PROPERTY. REGARDLESS OF WHETHER ANY SITE ASSESSMENTS ARE CONDUCTED HEREUNDER, AND REGARDLESS OF WHETHER ANY EVENT OF DEFAULT (AS DEFINED IN SECTION 4.01 OF THIS DEED OF TRUST) SHALL HAVE OCCURRED AND BE CONTINUING OR ANY REMEDIES IN RESPECT TO THE MORTGAGED PROPERTY ARE EXERCISED BY BENEFICIARY, GRANTOR SHALL, TO THE EXTENT AUHORIZED BY LAW AND SUBJECT TO FUNDS LEGALLY AVAILABLE FOR THE PURPOSE, DEFEND, INDEMNIFY AND HOLD HARMLESS BENEFICIARY AND TRUSTEE (AND ANY SUCCESSOR TO THE TRUSTEE) FROM AND AGAINST ANY AND ALL T: \Idld \Loan Docs \NSP\Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 20 of 50 • k Leal Ps 00004670 OR. 1029 162 LIABILITIES (INCLUDING STRICT LIABILITY), SUITS, ACTIONS, CLAIMS, DEMANDS, PENALTIES, DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, CONSEQUENTIAL DAMAGES, INTEREST, PENALTIES, FINES AND MONETARY SANCTIONS), LOSSES, COSTS AND EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS' FEES AND REMEDIAL COSTS) (THE FOREGOING ARE HEREINAFTER COLLECTIVELY REFERRED TO AS "LIABILITIES ") WHICH MAY NOW OR IN THE FUTURE (WHETHER BEFORE OR AFTER THE CULMINATION OF THE TRANSACTIONS CONTEMPLATED BY THIS DEED OF TRUST) BE INCURRED OR SUFFERED BY BENEFICIARY OR TRUSTEE (OR ANY SUCCESSOR TO THE TRUSTEE) BY REASON OF, RESULTING FROM, IN CONNECTION WITH, OR ARISING IN ANY MANNER WHATSOEVER OUT OF THE BREACH OF ANY WARRANTY OR COVENANT OR THE INACCURACY OF ANY REPRESENTATION OF GRANTOR CONTAINED OR REFERRED TO IN THIS ARTICLE VI OR IN ANY LOAN AGREEMENT MADE AND ENTERED INTO BETWEEN GRANTOR AND BENEFICIARY RELATING TO THE MORTGAGED PROPERTY OR WHICH MAY BE ASSERTED AS A DIRECT OR INDIRECT RESULT OF THE PRESENCE ON OR UNDER, OR ESCAPE, SEEPAGE, LEAKAGE, SPILLAGE, DISCHARGE, EMISSION OR RELEASE FROM THE MORTGAGED PROPERTY OF ANY HAZARDOUS MATERIALS OR ANY HAZARDOUS MATERIALS CONTAMINATION OR ARISE OUT OF OR RESULT FROM THE ENVIRONMENTAL CONDITION OF THE MORTGAGED PROPERTY OR THE APPLICABILITY OF ANY GOVERNMENTAL REQUIREMENTS RELATING TO HAZARDOUS MATERIALS. SUCH LIABILITIES SHALL INCLUDE, WITHOUT LIMITATION: (I) INJURY OR DEATH TO ANY PERSON; (II) DAMAGE TO OR LOSS OF THE USE OF ANY PROPERTY; (III) THE COST OF ANY DEMOLITION AND REBUILDING OF ANY IMPROVEMENTS NOW OR HEREAFTER SITUATED ON THE MORTGAGED PROPERTY OR ADJACENT PROPERTY, AND THE COST OF ANY REPAIR OR REMEDIATION OF ANY SUCH IMPROVEMENTS; (IV) THE COST OF ANY ACTIVITY REQUIRED BY ANY GOVERNMENTAL AUTHORITY; (V) ANY LAWSUIT BROUGHT, GOOD FAITH SETTLEMENT REACHED, OR GOVERNMENTAL ORDER RELATING TO THE PRESENCE, DISPOSAL, RELEASE OR THREATENED RELEASE OF ANY HAZARDOUS MATERIALS, ON, FROM OR UNDER THE MORTGAGED PROPERTY; AND (VI) THE IMPOSITION OF ANY LIENS ON THE MORTGAGED PROPERTY ARISING FROM THE ACTIVITY OF GRANTOR OR GRANTOR'S PREDECESSORS IN INTEREST ON THE MORTGAGED PROPERTY OR FROM THE EXISTENCE OF HAZARDOUS MATERIALS UPON THE MORTGAGED PROPERTY OR HAZARDOUS MATERIALS CONTAMINATION. THE COVENANTS, WARRANTIES, AGREEMENTS AND INDEMNIFICATIONS CONTAINED IN THIS ARTICLE VI SHALL SURVIVE THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS DEED OF TRUST. 6.07 Right of Entry. Beneficiary shall have the right but not the obligation, without in any way limiting Beneficiary's other rights and remedies under this Deed of Trust, to enter onto the T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 21 of 50 01)004670 OR V o 1 029 Mortgaged Property or to take such other actions as it deems necessary or advisable to clean up, remove, resolve or minimize the impact of, or otherwise deal with, any Hazardous Materials or Hazardous Materials Contamination on or under the Mortgaged Property following receipt of any notice from any person or entity asserting the existence of any Hazardous Materials or Hazardous Materials Contamination pertaining to the Mortgaged Property, or any part thereof which, if true, could result in an order, notice, suit, imposition of a lien on the Mortgaged Property, or other action, and/or which, in Beneficiary's sole opinion, could jeopardize Beneficiary's security upon this Deed of Trust. All costs and expenses paid or incurred by Beneficiary in the exercise of any such rights shall be indebtedness secured by this Deed of Trust and shall be payable by Grantor upon demand. ARTICLE VII Additional Provisions 7.01 Rights of Beneficiary. If any of the indebtedness hereby secured shall become due and payable, Trustee or Beneficiary shall have the right and power to proceed by a suit or suits in equity or at law, whether for the specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, or for any foreclosure hereunder or for the sale of the Mortgaged Property under the judgment or decree of any court or courts of competent jurisdiction or for the appointment of a receiver pending any foreclosure hereunder or the sale of the Mortgaged Property under the order of a court or courts of competent jurisdiction or under executory or other legal process, or for the enforcement of any other appropriate legal or equitable remedy. Grantor agrees, to the full extent that it lawfully may, that in case one or more of the Events of Default hereunder shall have occurred and shall not have been remedied, then, and in every such case, the Beneficiary shall have the right and power to enter into and upon and take possession of all or any part of the Mortgaged Property in the possession of the Grantor, its successors or assigns, or its or their agents or servants, and may exclude Grantor, its successors or assigns, and all persons claiming under Grantor, and its or their agents or servants, wholly or partly therefrom; and, holding the same, the Beneficiary may use, administer, manage, operate and control the Mortgaged Property and conduct the business thereof to the same extent as Grantor, its successors or assigns, might at the time do and may exercise all rights and powers of Grantor, in the name, place and stead of Grantor, or otherwise as the Beneficiary shall deem best; and in the exercise of any of the foregoing rights and powers Beneficiary shall not be liable to Grantor for any loss or damage thereby sustained. 7.02 The Lien. Any part of the Mortgaged Property may be released by the Beneficiary without affecting the lien, security interest and assignment hereof against the remainder. The lien, security interest and other rights granted hereby shall not affect or be affected by any other security taken for the same indebtedness or any part thereof. The taking of additional security, or the extension or renewal of the indebtedness secured hereby or any part thereof, shall not release or impair the lien, security interest and other rights granted hereby, or affect the liability of any endorser, guarantor or surety, or improve the right of any permitted junior lienholder; and this Deed of Trust, as well as any instrument given to secure any renewal or extension of the indebtedness secured hereby, or any part thereof, shall be and remain a first and prior lien, except as otherwise provided herein on all of the Mortgaged Property not expressly released until the indebtedness secured hereby is completely paid. T: \ldld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville\Interim Construction Deed of Trust_20120227_ v4.doc Page 22 of 50 Ps 16.3 • • Bk Vol Ps 00004670 OR 1029 164 7.03 Waiver. To the extent that Grantor may lawfully do so, Grantor agrees that Grantor shall not assert and hereby expressly waives, any right under any statute or rule of law pertaining to the marshalling of assets, the exemption of homestead, the administration of estates of decedents, or other matter whatever to defeat, reduce or affect the right of Beneficiary, under the terms of this Deed of Trust, to sell the Mortgaged Property for the collection of the indebtedness secured hereby (without any prior or different resort for collection) or the right of Beneficiary, under the terms of this Deed of Trust, to the payment of such indebtedness out of the proceeds of sale of the Mortgaged Property in preference to every other person and claimant whatever (only reasonable expenses of such sale being first deducted). No provision of this Deed of Trust or any other document securing or pertaining to the Note shall be construed to impose on Beneficiary any duty to sell the Mortgaged Property or any other collateral for the Note for collection of the indebtedness secured by this Deed of Trust or to pursue any other remedy in Beneficiary's power whatsoever. Grantor expressly waives and relinquishes any right or remedy which it may have or be able to assert by reason of the provisions of Chapter 34 of the Business and Commerce Code of the State of Texas, pertaining to the rights and remedies of sureties. To the full extent permitted by applicable law, Grantor waives any right to require Beneficiary to use diligence in collection of any indebtedness secured by this Deed of Trust, to proceed against or exhaust any security or collateral for the loan evidenced by the Note, to mitigate Beneficiary's damages in connection with the loan evidenced by the Note, or to pursue any other remedy in Beneficiary's power whatsoever. 7.04 Subrogation. To the extent that proceeds of the Note are used to pay an outstanding lien, charge or encumbrance against or affecting the Mortgaged Property, such proceeds have been advanced by Beneficiary at Grantor's request, and Beneficiary shall be subrogated to all rights, interests and liens owned or held by any owner or holder of such outstanding liens, charges and encumbrances, irrespective of whether such liens, charges or encumbrances are released of record. 7.05 Limitation on Interest. All agreements between Grantor and Beneficiary, whether now existing or hereafter arising and whether written or oral, are expressly limited so that in no contingency or event whatsoever shall the amount paid, or agreed to be paid, to Beneficiary for the use, forbearance, or detention of the money to be loaned pursuant to the Note or otherwise, or for the performance or payment of any covenant or obligation contained herein, exceed the maximum amount permissible under applicable law. If from any circumstance whatsoever fulfillment of any provision hereof at the time performance of such provision shall be due shall involve transcending the limit of validity prescribed by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstance Beneficiary shall ever receive as interest under such Note or this Deed of Trust or otherwise an amount that would exceed the highest lawful rate, such amount that would be excessive interest shall be applied to the reduction of the principal amount owing under the Note or on account of the Other Indebtedness secured hereby and not to the payment of interest or if such excessive interest exceeds the unpaid balance of principal of the Note and such Other Indebtedness, such excess shall be refunded to Grantor, or to the maker of the Note or other evidence of indebtedness if other than Grantor. All sums paid or agreed to be paid to Beneficiary for the use, forbearance, or detention of the indebtedness secured hereby shall, to the extent permitted by T: \ldld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 23 of 50 irk Vo 1 Ps 00004670 OR 1029 165 applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full so that the actual rate of interest on account of such indebtedness is uniform throughout the term thereof. The terms and provisions of this Section shall control and supersede every other provision of all agreements between Grantor, the maker of the Note or other evidence of indebtedness if other than Grantor, and Beneficiary. 7.06 Waiver and Invalidity. No waiver of any default on the part of Grantor or breach of any of the provisions of this Deed of Trust or of any other instrument executed in connection with the indebtedness secured hereby shall be considered a waiver of any other or subsequent default or breach, and no delay or omission in exercising or enforcing the rights and powers herein granted shall be construed as a waiver of such rights and powers, and likewise no exercise or enforcement of any rights or powers hereunder shall be held to exhaust such rights and powers, and every such right and power may be exercised from time to time. If any provision of this Deed of Trust is held to be illegal, invalid, or unenforceable under present or future laws effective while this Deed of Trust is in effect, the legality, validity, and enforceability of the remaining provisions of this Deed of Trust shall not be affected thereby, and in lieu of each such illegal, invalid, or unenforceable provision there shall be added automatically as a part of this Deed of Trust a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and enforceable. If any of the liens, security interest or assignment of rents created by this Deed of Trust shall be invalid or unenforceable, the unsecured portion of the indebtedness secured hereby shall be completely paid prior to the payment of the remaining and secured portion of such indebtedness and all payments made on account of such indebtedness shall be considered to have been paid on and applied first to the complete payment of the unsecured portion of such indebtedness. 7.07 Tenancy at Will. In the event of a trustee's sale hereunder and if at the time of such sale the Grantor occupies the portion of the Mortgaged Property so sold, or any part thereof, Grantor shall immediately become the tenant of the purchaser at such sale, which tenancy shall be a tenancy from day to day, terminable at the will of either tenant or landlord, at a reasonable rental per day based upon the value of the portion of the Mortgaged Property so occupied, such rental to be due and payable daily to the purchaser. An action of forcible detainer shall lie if the tenant holds over after a demand in writing for possession of such Mortgaged Property and premises; and this agreement and any trustee's deed shall constitute a lease and agreement under which the tenant's possession, each and all, arose and continued. 7.08 Security Agreement. With respect to any portion of the Mortgaged Property which constitutes personal property or fixtures governed by the Uniform Commercial Code of the State of Texas (hereinafter called the "Code "), this Deed of Trust shall constitute a security agreement between Grantor as the Debtor and Beneficiary as the Secured Party, and Grantor hereby grants to Beneficiary a security interest in such portion of the Mortgaged Property. Cumulative of all other rights of Beneficiary hereunder, Beneficiary shall have all of the rights conferred upon secured parties by the Code. Grantor will execute and deliver to Beneficiary all financing statements that may from time to time be required by Beneficiary to establish and maintain the validity and priority of the security interest of Beneficiary, or any modification thereof, and all costs and expenses of any searches reasonably required by Beneficiary. Beneficiary may exercise any or all of the remedies of a secured party available to it under the Code with respect to such T: \ldld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville\Interim Construction Deed of Trust_20120227_ v4.doc Page 24 of 50 ®8k Val P9 00004670 OR 1029 166 property, and it is expressly agreed that if upon default Beneficiary should proceed to dispose of such property in accordance with the provisions of the Code, then (10) days' notice by Beneficiary to Grantor shall be deemed to be reasonable notice under any provision of the Code requiring such notice; provided, however, that Beneficiary may at its option dispose of such property in accordance with Beneficiary's rights and remedies with respect to the real property pursuant to the provisions of this Deed of Trust, in lieu of proceeding under the Code. 7.09 Changes in Grantor's Identity. Grantor shall give advance notice in writing to Beneficiary of any proposed change in Grantor's name, address, identity, or corporate structure and will execute and deliver to Beneficiary, prior to or concurrently with the occurrence of any such change, all additional financing statements that Beneficiary may require to establish and maintain the validity and priority of Beneficiary's security interest with respect to any Mortgaged Property described or referred to herein. 7.10 Fixtures. Some of the items of Mortgaged Property described herein are goods that are or are to become fixtures related to the real estate described herein, and it is intended that as to those goods, this Deed of Trust shall be effective as a financing statement filed as a fixture filing from the date of its filing for record in the real estate records of the county in which the Mortgaged Property is situated. Information concerning the security interest created by this instrument may be obtained from Beneficiary, as secured party, at the address of Beneficiary stated above. The mailing address of the Grantor, as debtor, is as stated in Section 1.02. 7.11 NSP Subrecipient Activity Report. Until all NSP requirements are met, the NSP Subrecipient Activity Report shall be submitted monthly. Thereafter, the NSP Subrecipient Activity Report shall be submitted quarterly. The Beneficiary shall determine whether all NSP obligation requirements have been met and may amend this rule from time to time or as needed. 7.12 Applicable Law. All references in this Deed of Trust to the "law" or to "lawful rate" shall be construed to be the laws of the State of Texas and the United States, whichever is applicable. "Applicable law" as used herein means (a) the law pertaining to maximum rates of interest that is now in effect, and (b) any law that comes into effect at any time in the future allowing a higher maximum rate than the law now in effect. 7.13 Binding Effect. The covenants herein contained shall bind, and the benefits and advantages shall inure to, the respective heirs, executors, administrators, personal representatives, successors and assigns of the parties hereto, and to any substitute Trustee. Whenever used, the singular number shall include the plural and the singular, and the use of any gender shall be applicable to all genders. The duties, covenants, conditions, obligations and warranties of Grantor in this Deed of Trust shall be joint and several obligations of Grantor and each Grantor if more than one, and Grantor's heirs, personal representatives, successors and assigns. Each party who executes this Deed of Trust (other than Beneficiary), and each subsequent owner of the Mortgaged Property, or any part thereof, covenants and agrees that it will perform, or cause to be performed, each condition, term, provision, and covenant of this Deed of Trust. T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 25 of 50 •Bk Vol Ps 00004670 OR 1029 167 7.14 Right to Inspect. Beneficiary shall have at all times a right of access to and upon the Mortgaged Property for purposes of inspection and, at Beneficiary's option, for purposes of performing any obligations required of Grantor hereunder. 7.15 Notices. All notices, requests, consents, demands and other communications required or which any part desires to give hereunder shall be in writing. Notice will be deemed effective upon deposit in the United States mail, postage prepaid, by certified mail, return receipt requested, addressed to the party to whom directed at the addresses specified in Article I of this Deed of Trust (unless changed by notice in writing given by the particular party whose address is to be changed). Notice given in any other manner shall be deemed effective only if and when received by the party to be notified. Provided, however, service of a notice required by Texas Property Code Section 51.002, as amended, shall be considered complete when the requirements of that statute are met. Notwithstanding the foregoing, no notice of change of address shall be effective except upon receipt. This section shall not be construed in any way to affect or impair any waiver of notice or demand provided in the Note or any other instrument securing the Note or to require giving of notice or demand to or upon any person in any situation or for any reason. 7.16 Assignment of Rents. All of the rents, royalties (including, but not limited to, royalties arising out of the sale of oil, gas, and any other minerals produced from the Mortgaged Property, or any properties pooled with the Mortgaged Property), issues, profits, revenue, income and other benefits derived from the Mortgaged Property or arising from the use or enjoyment of any portion thereof or from any lease or agreement pertaining thereto (hereinafter called the "Rents and Profits ") are hereby assigned, transferred, conveyed and set over to Beneficiary as security for (i) payment of the principal and interest and all other sums payable on the Note, (ii) payment of any Other Indebtedness secured hereby and (iii) the performance and discharge of each and every obligation, covenant and agreement of Grantor set forth herein or in the Note or in any other instrument securing payment of the Note. Prior to the occurrence of any Event of Default hereunder, Grantor shall collect and receive all Rents and Profits, and Grantor shall apply the funds so collected first to the payment of the principal and interest and all other sums payable on the Note and in payment of all Other Indebtedness secured hereby and thereafter, so long as no Event of Default hereunder has occurred, the balance shall be distributed to the account of Grantor. Grantor will not (i) execute an assignment of any of its right, title or interest in the Rents and Profits, or (ii) except in the ordinary course of business, including but not limited to where the lessee is in default thereunder, terminate or consent to the cancellation or surrender of any lease of the Mortgaged Property or any part thereof, now or hereafter existing having an unexpired term of one year or more except that any lease may be canceled, provided that promptly after the cancellation or surrender thereof a new lease is entered into with a new lessee having a credit standing, in the judgment of Beneficiary, at least equivalent to that of the lessee whose lease was canceled, on substantially the same terms as the terminated or canceled lease, or (iii) except in the ordinary course of business, modify any lease of the Mortgaged Property or any part thereof so as to shorten the unexpired term thereof or so as to decrease any amount of the rent payable thereunder, or (iv) accept prepayments of any installments of rent to become due under any of such leases in excess of one month, except prepayments in the nature of security for the performance of the lessee thereunder, or (v) in any other manner impair the value of the Mortgaged Property or the security of this Deed of Trust. Upon an Event of Default in the payment of the Note or any Other Indebtedness secured hereby, Beneficiary may, at its option, T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 26 of 50 0k VD1 F'9 00004670 OR 1029 168 and without notice to Grantor receive and collect all Rents and Profits. Effective upon such Event of Default and for the foregoing purpose Grantor has irrevocably made, constituted and appointed, and by these presents does irrevocably make, constitute and appoint Beneficiary as its true and lawful attorney for it and in its name, place and stead to receive and collect the Rents and Profits, compromise and settle all claims therefore, and execute, deliver, cancel, modify and to release any and all leases and lessees, giving and granting unto Beneficiary full power and authority to do and perform all and every act and thing whatsoever, requisite and necessary to be done in connection therewith, as fully, to all intents and purposes, as Grantor might or could do if personally present and also giving and granting unto Beneficiary full power to substitute one or more attorney or attorneys under it, concerning such matters. Default shall be presumed upon Beneficiary's filing with the County Clerk of the County in which the Mortgaged Property is located of an affidavit to the effect that an Event of Default has occurred hereunder and all persons dealing with Beneficiary may rely upon such affidavit. Grantor agrees that all persons dealing with Beneficiary and its substitutes that this power of attorney shall remain effective for so long as there is an Event of Default under the terms hereof. Grantor agrees to indemnify and hold Beneficiary and its substitutes harmless from any and all liability arising out of Beneficiary's or its substitutes' acts pursuant to the authority herein granted to the extent allowed by law. This power of attorney is one coupled with an interest. 7.17 Construction Mortgage. This Deed of Trust constitutes a "Construction Mortgage" as defined in the Texas Business and Commerce Code and secures an obligation incurred for the construction of improvements on the Real Property described herein. 7.18 Loan Agreement. It is understood and agreed that all or a portion of the funds to be advanced under the Note are to be used in the construction or Rehabilitation of the Project in accordance with the NSP Construction Loan Agreement dated on even date herewith made by and between Grantor (Borrower in Loan Agreement or the Maker of the Note if different from Grantor) and Beneficiary (Lender in Loan Agreement), which said Loan Agreement is incorporated herein by reference to the same extent and effect as if fully set forth herein and made a part hereof. This Deed of Trust secures the payment of all sums and the performance of all covenants required by Grantor (or the Maker of the Note if different from Grantor) under the Loan Agreement, and upon the failure of Grantor (or the maker of the Note if different from Grantor) to keep and perform all the covenants, conditions and agreements of the Loan Agreement, the indebtedness secured hereby shall, at the option of Beneficiary, become due and payable, anything herein contained to the contrary notwithstanding. 7.19 Attorney in Fact. Grantor has irrevocably made, constituted and appointed, and by these presents does irrevocably make, constitute and appoint Beneficiary its true and lawful attorney, for it and in its name, place and stead in the Event of Default to contract for the sale of and convey all or any part of the Mortgaged Property, giving and granting unto Beneficiary full power and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in connection therewith, as fully, to all intents and purposes, as Grantor might or could do if personally present and also giving and granting unto Beneficiary full power to substitute one or more attorneys under it, in or concerning such matters. Grantor agrees that this power of attorney shall be effective upon an Event of Default in the payment of the Note or under any instrument executed as security therefore, and Grantor agrees and represents to those T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227 v4.doc Page 27 of 50 Ok V o 1 Ps 00004-670 OR 1029 169 dealing with Beneficiary, and its substitute or substitutes, that this power of attorney shall be effective upon Beneficiary's filing with the County Clerk of the county in which the Mortgaged Property is situated, an affidavit to the effect that an Event of Default has occurred under the terms of the Note or any instruments executed as security therefore and such persons may rely upon Beneficiary's representation with regard to the continuation of such default, Grantor agrees with all persons dealing with Beneficiary, its substitute and substitutes that this power of attorney shall remain effective for so long as there is an Event of Default under the terms of the Note or any instruments executed as security therefore, and further agrees with such persons that they may rely upon the representations of Beneficiary, its substitute and substitutes, with regard to the continuation of such default. TO THE EXTENT AUTHORIZED BY LAW AND SUBJECT TO THE LIMITATIONS CONTAINED HEREIN, AND FUNDS LEGALLY AVAILABLE FOR THE PURPORSE, GRANTOR AGREES TO INDEMNIFY AND HOLD BENEFICIARY AND ITS SUBSTITUTES HARMLESS FROM ANY AND ALL LIABILITY ARISING OUT OF BENEFICIARY'S OR ITS SUBSTITUTES' ACTS PURSUANT TO THE AUTHORITY HEREIN GRANTED TO THE EXTENT ALLOWED BY LAW. THIS POWER OF ATTORNEY IS ONE COUPLED WITH AN INTEREST. 7.20 Covenants Running with the Land. All of the covenants, conditions, warranties, representations and other obligations made or undertaken by Grantor contained in this Deed of Trust and the other Loan Documents are intended by Grantor, Beneficiary, and Trustee to be, and shall be construed as, covenants running with the Mortgaged Property until the lien of this Deed of Trust has been fully released by Beneficiary. 7.21 Foreclosure. If the Mortgaged Property becomes the subject of a foreclosure proceeding that results in the sale of part or all of the Mortgaged Property, all sums in excess of those paid to superior lien holders shall be paid to Beneficiary to apply to the outstanding balance under the Note. If there are insufficient funds to pay off the Note secured herein, Beneficiary may in its own discretion waive the payment of any or all of the outstanding loan balance under the Note. 7.22 Non - Recourse. Notwithstanding anything herein to the contrary, Beneficiary shall have no recourse against Grantor, nor against any guarantor, if any, for payment and performance of all of the obligations, covenants and agreements of Grantor under the Note and the documents securing same including, but not limited to this Deed of Trust (said documents hereafter collectively called "Security Documents "), except to the full extent of all of the Mortgaged Property which constitutes security for the Note. If default occurs in the timely and proper payment of any portion of such indebtedness or in the timely performance of any of such obligations, agreement or covenants, any judicial proceedings brought by Beneficiary against Grantor or any guarantor shall be limited to the protection and preservation of the Mortgaged Property, the preservation, enforcement and foreclosure of the liens, mortgages, assignments, rights and security interests now or at any time hereafter securing the payment of the Note, and enforcement and collection of obligations, covenants and indebtedness for which Grantor and any guarantors remain liable as provided in this paragraph. If there is a foreclosure of any such liens, mortgages, assignments, rights, and security interests securing the payment of the Note, by power of sale or otherwise, no judgment for any deficiency upon such indebtedness shall be sought or obtained by Beneficiary against Grantor. Notwithstanding the foregoing provisions of this paragraph or any other agreement, Beneficiary shall have full recourse against Grantor and T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 28 of 50 • OBk Vol F`9 00004670 OR 1029 170 all guarantors, if any, for: (a) fraud or misrepresentation by Grantor or any guarantor in connection with the transactions herein contemplated; (b) failure to pay taxes, assessments, charges for labor or materials or other charges that can create liens on any portion of the Mortgaged Property; (c) the misapplication of (i) proceeds of insurance covering any portion of the Mortgaged Property, or (ii) proceeds of the sale or condemnation of any portion of the Mortgaged Property, or (iii) rentals received by or on behalf of Grantor subsequent to the date on which Beneficiary gives written notice of the posting of foreclosure notices, (d) failure to prevent waste to the Mortgaged Property unless Beneficiary is compensated therefore by insurance proceeds collected by Grantor; (e) the return to Beneficiary of all unearned advance rentals and security deposits paid by tenants of the Mortgaged Property and not refunded to or forfeited by such tenants, (f) the return of, or reimbursement for, all personalty taken from the Mortgaged Property by or on behalf of Grantor, (g) all court costs and for all attorneys' fees provided for in any instrument governing, securing or pertaining to the payment of the Note; and (h) failure to comply with any indemnification provision or covenants pertaining to environmental matters contained in the Security Documents. 7.23 Release or Partial Release. Subject to the following terms, Beneficiary will release the entire Mortgaged Property or partially release individual lots on the Mortgaged Property from all liens securing the Note upon closing of a permanent mortgage loan (purchase money) with an Eligible Household utilizing the Financing Mechanisms available under the NSP, when applicable: (a) Grantor must not be in default under this Deed of Trust, Loan Agreement or the Note at the time of the request for lot release. (b) The release must be on a form approved by Beneficiary that is prepared and recorded at Grantor's expense. (c) The purchase price of Mortgaged Property to the Eligible Household shall be the lesser of one the following amounts: (1) the cost to acquire and construct or rehabilitate the Project to a decent, safe, and habitable condition; or (2) one hundred percent (100 %) of the appraised value of the lot on the Mortgaged Property after rehabilitation or construction. In no instance shall the purchase price of the Mortgaged Property to the Eligible Household exceed either of the amounts set out in this section 7.23(c.) (d) The constructed or rehabilitated single family dwelling must be made available for sale to Eligible Households within twelve (12) months from the date of acquisition under the NOFA or from completion of Rehabilitation under the NOFA -R. (e) The lot to be released must be improved with a single - family dwelling completed in a good and workmanlike manner in accordance with plans and specifications approved by Beneficiary and must, at a minimum, meet the Texas Minimum Construction Standards (TMCS) and the NSP Rehabilitation Standards as noted herein, and must incorporate construction requirements imposed for single family affordable housing as cited as Texas Government Code, Section 2306.514, as may be amended from time to time. T: \Idld \Loan Docs\NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 29 of 50 Bk Vol. Ps 00004670 OR 1029 171 (f) The lot release price upon closing of the permanent mortgage made to an Eligible Household will be as listed in Exhibit B attached hereto and made a part hereof. Upon receipt of payment of the release price from the Grantor, Beneficiary shall immediately credit said amount against the principal balance of the Note. As provided herein, Beneficiary may forgive some or all of the lot release price and said amount shall be immediately credited against the principal balance of the Note as stated in sections 7.23(g) and (h) of this Deed of Trust. (g) If Grantor utilizes Financing Mechanisms under NSP and the Eligible Household qualifies, then in lieu of payment of the full lot release price, the Beneficiary may forgive up to $30,000.00 in a deferred forgivable down payment assistance loan from Beneficiary to an Eligible Household whose income exceeds fifty percent (50 %) but is less than one hundred twenty (120 %) of the area median income as defined by NSP for the payment of down payment assistance, reasonable closing costs, principal reductions and gap financing in conjunction with a permanent mortgage loan for the purchase of the single family dwelling from a private mortgage lender to said Eligible Household. The full amount of any partial release price for the Mortgaged Property shall be immediately credited against the principal balance of the Note upon receipt of the fully, executed subordinate, deferred forgivable down payment assistance loan in a form approved by Beneficiary in addition to payment of the remaining balance of the lot release price. (h) If Grantor utilizes Financing Mechanisms under NSP, and the Eligible Household qualifies, then in lieu of payment of the lot release price, Beneficiary may forgive up to an amount equal to the full unpaid principal balance of the Note per individual lot by the execution of a thirty (30) year, zero percent (0 %) interest, fully amortizing permanent mortgage loan from Beneficiary to an Eligible Household whose income does not exceed fifty percent (50 %) of area median income as defined by NSP for the purchase of the single - family dwelling. For an Eligible Household whose income does not exceed fifty percent (50 %) of the area median income as defined by NSP, Grantor, in lieu of payment, may also convert up to $30,000.00 of the unpaid principal balance of the Note per individual lot to a deferred forgivable down payment assistance loan from Beneficiary to said Eligible Household for the payment of principal reductions and gap financing in conjunction with and in addition to the permanent mortgage loan from Beneficiary to said Eligible. The full amount of any partial release price for the Mortgaged Property shall be immediately credited against principal balance of the Note upon receipt of fully, executed permanent mortgage loan documents and, if applicable, homebuyer assistance loan documents, in a form approved by Beneficiary. (i) Grantor must provide Beneficiary ten (10) days notice of any requested release. At the time a release is requested, the party requesting the release must furnish to the holder of the Note a calculation of area by field notes and a plat or survey, indicating the area to be released and its relationship to the portion of the Property not to be released and shall provide evidence that the lot is being sold to an Eligible Household by submitting an income certification in a form prescribed by Beneficiary. All expenses incident to the granting of release will be borne by the party requesting the release, including but not limited to the cost of the survey, Beneficiary's attorney's fees, and recording costs. 7.24 Low and Moderate Income Requirement. It is the intent of Beneficiary and Grantor that 100% of the funds made available under NSP are to be used to meet the low and moderate T: \Idld \Loan Docs \NSP\Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 30 of 50 •BI< Vo 1 Ps 00004670 OR 11329 172 income requirement established in the Housing and Economic Recovery Act Section 2301 (f)(3)(A)(i) and (ii). The low and moderate income requirement includes individuals and families whose incomes do not exceed 120% of area median income as defined therein. Such individuals and families will be considered an Eligible Household, as determined by Beneficiary as stated herein or in accordance with any corresponding provision of federal law or provisions of succeeding laws as may be amended from time to time. The determination of whether a purchaser is an Eligible Household shall be made by Beneficiary, in its sole absolute discretion. 7.25 NSP Contract. Each term and provision of this Deed of Trust is expressly subject to the terms and condition of the Neighborhood Stabilization Program Contract Number 77099999126 executed between Office of Rural Affairs established within the Department of Agriculture, a public and official agency of the State of Texas, formerly known as Texas Department of Rural Affairs, and Grantor herein, dated to be effective September 1, 2009, in the original amount of $1,050,000.00, as amended and extended and as may be further amended from time to time, as assigned and transferred to Beneficiary by Assignment of Contract on August 30, 2011 ( "NSP Contract ") which is incorporated herein by reference. The lot or lots securing this loan must be improved with a single family dwelling completed in good and workmanlike manner and sold to an Eligible Household who will maintain the affordability period for rental or homeownership in accordance with the NSP. The terms of the NSP Contract shall govern over any conflicting provision hereof. 7.26 Due on Transfer - Nonresidential Property. BENEFICIARY MAY DECLARE THE DEBT SECURED BY THIS DEED OF TRUST IMMEDIATELY DUE AND PAYABLE AND INVOKE ANY REMEDIES PROVIDED IN THIS DEED OF TRUST FOR DEFAULT IF GRANTOR TRANSFERS ANY OF THE MORTGAGED PROPERTY TO A PERSON WHO IS NOT A PERMITTED TRANSFEREE WITHOUT BENEFICIARY'S CONSENT. "PERMITTED TRANSFEREE" FOR A NATURAL PERSON MEANS THAT PERSON'S SPOUSE OR CHILDREN, ANY TRUST FOR THAT PERSON'S BENEFIT OR THE BENEFIT OF THE PERSON'S SPOUSE OR CHILDREN, OR ANY CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY COMPANY IN WHICH THE DIRECT AND BENEFICIAL OWNER OF ALL THE EQUITY INTEREST IS A NATURAL PERSON OR THAT PERSON'S SPOUSE OR CHILDREN OR ANY TRUST FOR THE BENEFIT OF THEM; AND THE HEIRS, BENEFICIARIES, EXECUTORS, ADMINISTRATORS, OR PERSONAL REPRESENTATIVES OF A NATURAL PERSON ON THE DEATH OF THAT PERSON OR ON THE INCOMPETENCY OR DISABILITY OF THAT PERSON FOR PURPOSES OF THE PROTECTION AND MANAGEMENT OF THAT PERSON'S ASSETS; AND FOR A PERSON THAT IS NOT A NATURAL PERSON, ANY OTHER PERSON CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH THAT PERSON. 7.27 Vendor's Lien. $35,000.00 of the funds to be advanced under the Note secured by this Deed of Trust has been given in payment for reimbursement of the purchase price for the Property and $559,033.20 of the Note secured by this Deed of Trust is for payment of T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 31 of 50 • le k loci 1 F' 9 00004671• OR 1029 173 construction costs. The Note is secured both by this Deed of Trust and an implied or equitable vendor's lien on the Property by operation of law in a General Warranty Deed dated September 29, 2010, executed by William Harold Vann, Fannie Earline Vann, Vann G. Hawkins, Sr., and Lorrissa R. Lincoln, to Grantor, filed for record September 29, 2010, in Document No. 00006463 under Vol. 955, Page 720, of the Official Public Records of Walker County, Texas. 7.28 Entire Agreement; Amendment. THIS DEED OF TRUST AND THE OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO. The provisions hereof and the other Loan Documents may be amended or waived only by an instrument in writing signed by Grantor and Beneficiary. T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 32 of 50 EXECUTED this • day of June, 2012. THE STATE ¶ T XAS § COUNTY OF i § • Bk 00004670 OR GRANTOR: VD1 Ps 1 029 174 CITY OF HUNTSVILLE, � political subdivision of the State of Texas By: Name: Ma a Woodward Title: Mayor This instrument was acknowledged before me on this / day of by Mac Woodward, Mayor of City of Huntsville, a political subdivision acting on behalf of said political subdivision and in the capacity herein stated. (Seal) JUDY ANN THORNTON MY COMMISSION EXPIRES August 14, 2014 PREPARED BY: Texas Department of Housing and Community Affairs Legal Services Division P.O. Box 13941 Austin, Texas 78711 -3941 (512) 475 -2574 2012, he State of Texas, , State of Texas AFTER RECORDING RETURN TO: Walker County Title Company 1109 University Ave. Huntsville, Texas 77340 Attn: Judy Thorton GF # 201108784 T: \ldld \Loan Docs \NSP \Interim Construction Loans\ 1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 33 of 50 .BIB€ Vol F`9 000004470 OR 1029 175 Exhibit A — consisting of 15 pages TRACT I: BEING 0.185 of an acre eland, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT ONE (1), VANN- JOHNSON SUBDIVISION, a subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records, Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a pan hereof. TRACT 2: BEINO 0.195 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT TWO (2), . VANN-JOHNSON SUBDIVISION, a subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records; Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. TRACT 3: BEING 0.196 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT THREE (3), VANN - JOHNSON SUBDIVISION, a subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81. of the Plat Records, Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a pan hereof. TRACT4: BEING 0.196 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT FOUR (4), VANN - JOHNSON SUBDIVISION, a. subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records, Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. TRACT 5: BEING 0.196 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT FIVE (5), VANN - JOHNSON SUBDIVISION, a subdivision In City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records, Walker County, and bounds on Exhibit "A" attached hereto and made a part hereopnty, Texas, and being more particularly described by TRACT 6: BEING 0.164 of an acre of land, more or less, situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT SIX (6), VANN- JOHNSON SUBDIVISION, a subdivision in City of Huntsville, according to the map or plat thereof recorded in Volume 5, Page 81 of the Plat Records, Walker County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a pan hereof. NOTE: The Company is prohibited from Insuring the area or quantity of land described herein. Any statement in the above legal description of the area or quantity of land is not a representation that such area or quantity is correct, but Is made only for informational and/or identification purposes and does not override Item 2 of Schedule.B hereof. T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Interim Construction Deed of Trust_20120227_ v4.doc Page 34 of 50 • Bk Vol F`s 0J00'04670 OR 1029 176 • METES AND BOUNDS DYSCR?PTZON of Lot 1 of V.nn,lobuson Sshdivleleu, Iifrntav111e, Texas Beings 0.1I S of an see (1,010 square fat) tract of lad located la the Pleaunt Why League, Abating 24, Walker Carry, Teas and being all of tat 1 of this Vaan lohaou Subdivision, as recorded In Volume 5, Page SI tithe Plat Records of Welker County, Toss (P.R.W.C.T.) lams being a portion of that attest called 1.17 acre tract of lad ecnveyed to the City of Huntsville by deed and needed In Volume 955, Pap 720 of the Official ?Olio Records of Welker County, Tarr (O.P.1LW.C.T.); has 0.115 of a sore of land Ming mar particularly described by meta and bounds u follow: DROWNING at a hand 5/1 -lads Iron rod with cap et to souduwuterly comer of the again called 50' Road as recorded In Voltane IS, Page 161 of Deed Recede of Walker County, Texas (D.A.W.C.), befog In de'narterly line of that detain sled 9.01 sere but of land conveyed to the City of Huntsvlllo by dad end raided under Valais 110, Pap 99 of said Dad Recede, ms being the soldierly lace of Second Stmt (50' Road Raiment) of record radar Volume 70, Pap 193 of maid Deed Records, and being the atdluatsry corner of said Lot 1 and aid 1.17 son trail; THILNCII. Beath 08631'13" Wet„ • dkaaa of 00.19 feet, slay the southerly line of said Lot I and said 1.17 sore beet, bolus 1he northery line of add 9.04 acre teal and said Second Street to a hood 5/14neh iron rod whb cep at the southeasterly caner of that certain tract of lad conveyed to Florin* Radio by deed sad needed !A Volume 179, Pap 541 of said Dad • Recordy Wahine southwesterly comer of aid Lot 1 and said 1,17 acre tract ITIZNtp, North 02'35'47" West, • Mama of 111.00 tiny along do common line of aid Florin, Randle tact and aid Lot 1 and 1.17 sore tnei to s Wad 54-Mdu iraniod with cap in the southerly Ile of Lot 2 *Fuld VmanJdtaon Subdivision, being to nohhwury Diner of aid Florins Rode Pat, am being to aouihwwMrly comer afield Let 1, and being an al actor in the westerly ins afraid 1.17 we trap; Tle10E, Notch 17'24'13" East,* distance of 00.17 Wt, along the southerly lbw of said Lot 2, Meg the northerly lire desk! Lot 1 to a found 5/1-inch ban rod with cep in the wayuy line of said 50' Road, being the southeasterly comer afraid Lot 2, amp being the nosd aatery comer of sold Lot 1 and being la the outs* Hoe of said 1.17 sore hew; THERM, South 02•36'17" East, a dfelsua of 101.06 fat, along the westerly One of said S0' Road, Ming the easterly flood aid Lot I sad said 1.17 eon hat to the Pebnf of Bsginalq and containing 0.115 of an ecre of land. Horizontal Control le loved on holding City of Huntsville Monuments No. 7574 (grid coordinate of North - 10,262,415.91 Sr Fait- 3,102,009.473) and 7575 (grid coordhoa of North 10,262,326.24 dr Bat- 3,101,700.255), Dating daorbed ere misted to the Tea Ccordlnute System of 1913, Central 20ae. Mumma shout are lkl Raney Pest le "Plead Horh;ohtal" unite and maybe converted to "ORMD" asks by multiplying by a combined seals factor of 0.99909. Piet ofeva date saompala this description.. Pnpaved Geo8olntlw , LLC 25114 Duthie Road Sprlog, Tea T.I. 2014019766 T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 35 of 50 Bk Vo 1 Ps 00004670 OR I. Ca ICY """111111042Ver . • AI'�t woo Watt 'wi'..4°o MCI 1777- oft M NOW PI i 4. Itr71 IF Ir virunar71 •fir arliV ONO r • SO �rlt itinta 14010 SAFI son 13 R le I on* id LIMut Ivan !tj 1 L,.c ^xa1 swore is carrom1 ' Ira"' sod ledi eirorpors...- .00 • ,us 1d► ir•_,a++ -rr a 1 MOD LOT 1 OF VANN ]OHNSON ew, a� + wrwr M4wt w rA M • M SU90MSfON OF TH! PLEASANT . GRAY LEAOUE, A-24 . w.wr •IrIM i ONION hafte Mr M OrIIi 11r orA• 1111 WALKER COUNTY, TEXAS w• f114 ••••• too . swamp • y� titrz w ~I�'"'.,w„�"',.,�" ' ■ SOlUt(d11s,LLC =tuns 6OZWO •e•:=A =. rMsr wiilt 1 Iwo *dap IMO *or brow w W Hw r w wIil• O w ad •86 wIoI M /1�� 1101/0" M IYd o • A *sold* M ors MY rrlyrr w Or "111111,11 7911111111 1029 177 T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 36 of 50 Bk Vol 00004670 OR 1029 • MITES AND BODND8Dtgt3<QThoNof Lot2 of Vuuniokoon B.Wlvldos,aerpvt1 u, Tao Being a 0.193 of an saw (1,512 snare het) tract of had heated it ds Pleasant Orsy Lague, Abebsnt 24• WNW, Oounty. Terre and being ell of Lot 2 otlba VautWohnoern Subdivision, as ruched In Volume 5, hp 01 of the plat Records of Walker County, has (P.R.W.C.T.) same being a portion enlist oaten called 1.17 acre botothid conveyed lithe Clty of lhmnteviil by deed and recorded In Whims 933, Pap 720 of Omoisl Poblb Records of Weikar County, Touts ( W.0 0.195 of an sons of land bang mon particularly described by mates and bounds as fo1lowi BEGINNING at a point in du watery lire of bit euhin called S0' Road as recoiled to Volume 15, pap 161 of Deed Records of Walker County, Tem (D.R.W.C.), being the southeasterly ounce of Lot 3. of said Vamndob000 $ubdMshn, cams bang the mdrn,ta(y comerof said Lot 2, being in the astedygo of aid 1.17 acre teak Sus which 'found 34•nch Iron rod with cap bars South 57'23' Wet, 0.42 AA THENCE, Boot 02'35'47" Rant, s distaste of 57.00 hat, shag the westerly Ice of aW 50' Road, bang the -innerly ma of said Lot 2 and said 1.17 ore tract to a Potmd 5/114noh bce rod with cap at the northeasterly coma of Lot 1 of said Vase- Johnson Subdivision, being the esnl einewly opener of said Lot 2; TARNCZ. Booth 01•24'13" Wet, • distaste of 1047 hat, slug One norOtedy lie of said Lot 1, bang the eouthedy line ofald Lot 2 to a A>und $/l-Inch Iron rod with cap alike noehwaterly comer of old Lot 1, being tis nmdtastar(y corm of that outdo tract of land convoyed to Morino Randle by and and raeacded in Volume 179, Page 541 01.4W Dad Records, aria Ming an el corer in the watedy lino child 1.17 sere root T1I&NCE, South W31'13" Mat, a- Magna of 70.00 tat. along tM northerly Zino of said Plain Rundle tract, befog Oro southerly Ilea of add Lai 2, ate Ming the Hu of said 1.17 sore tract fo a found 5/11-inch bun rod with cap kt the easterly h of Into erh� called 0.21 eon tract of Ind ccnvo wdto Bent' Ruda by Peed and recorded in Vaunts 94, pap 110 of said Deed Ratords, being the northrwstoly aoroer of aid Fiorito Randle tact, isms being the southwester4 .comer of said Lot 2; =NCR, North 0P35'47" West,* distance of 55.64 Rot, along tie easterly Its of aid 0.21 acre rant, being the westerly Um of said Lot 2 and said 1.17 awe Naar to a ibnnd 3/1deh Iron and with cap N the southwesterly caner of said Lot 3, belay the mpWwoyrlyconew of sold Lat 2i TH*NCR, North 117•24113° Sato a dlaanes of 150.16 het, Gong the southerly Ike of sold Lot 3, enghanortherlylinoofailLot2wthePointoVHagiool gandoattdoing0.195ofansore T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 37 of 50 Ps 178 • • Bk Val Ps 00004670 OR 1029 179 • Horimnlal Control Is based on holding City of Huntsville Monuments No. 7374 (grid coordinate ofNotth- 10,262,4113.31 & Boo- 3,503,009.473) end 7373 (geld coordinate of North 10,262,526.24 & But= 3,801,7I0.255). Badnp described are related b the Texas Coordinate System of 1903, Carmel Zone. Distances shown as US Survey Peet In "Held Horlrontsr units and may be converted to OR units by mulliplying by s combined scale Ihomar of 0.99905. Plat of even date accompanies this description. Prepared bys GeoSolutions, LLC 25814 Budd. Road Spring, Texas To. 2111-61114766 Job No. 11449-027 T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 38 of 50 "="111::111115 0911111 Bk VD1 Ps 000046.70 OR 1029 180 • LE6EN0 4 arc UM $ p0M qr + p KU T1 1.1[ mom B 51•711 mu O NM ..p 514151 000 .10101■0150 (05'5 /111110 ..4t •-••— •'MrtEO —17— 01 0101 0101 70 •Ol.55,.5 . rl� OIM4.MOO 777 4005 Of /N NW 4 b no. 'u. PIN 1150403. MIMS LOTS v SUSOWSION I VOL. S,70.81 i g r.R.W.CT. /a Tr(—WCRend 160.10' .r aalo5 LOTS ` Y 4 eW is,rC i$ t1 aRRaar. • II ---a-! .Y"1Y -1Mr.SVI`)R S�7"1 3'W 7000' W 00.17'. PLONAT W� I-- f04r7aINtq = �I tA. a.Erar. I I4 LAYS 1 eumerare a or *TIS 1 •1•*, ••Ery M 0. Oly of Ila•IM• 5.•I 1701 v.ry ow 5.4. on Or snood .M •.5,15110 . Moog is 1051 Lel.1aIIO5 b.✓MI* W A�'MMM 11• MM MIO of Le MMWn•i yMry yi�M A.W M•f�Mri✓ Mr A1•7••r IM ErMMn O Lary. • I .4 a NOTES. LOT 2 OF VANN - JOHNSON I• ea •.•■• •. rWl•nr •w.l uw ■•••p N • 105. SUBDIVISION OF THE PLEASANT O••••On.l - GRAY LEAGUE, A -24 IN WALKER COUNTY, TEXAS 1. 55.1•.• d •100 1•.••05 w •10h q) ✓ 15451050 Iquorr.. O. 7574 (5,11 •..1w• • ONO • 5051.•03. • E.1. 10015001471) .I Sri (1•1•.r✓n1• • Loa • 0.51.100 Y 5.... 5101.74&71E5. 11.4.1,40 *NAN on 5I•114 u 11• /r. 44.4.0. SWIM of IW 5•111 1.• 111.5.• ✓y. on 01 11al rw 5. Y W 15.44n15' 0.00 1• .5,r1•.00.11• 050 0•10 05.0111007 Sy • 41•1•.4#.1.1.1.05✓ 11011 1. 01.• 1.1.0 WO. 0••• Woo w 0.0w on •WI00.W. ✓•0•.• •00 1. •• .••.w0y n11••NI W OMM1w 000..7 41 105 .5.4557 0.005I 4, • MM' ►005 of a •• 014 .MUE.40 055 NN. 75O0 y��07N 4 055.•.7 1•M TL.S•y )��•J•5p /07/1 111•1771 T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 39 of 50 Bk Vol Ps 00004670 OR 1029 181 • METE/ AND BOUNDS DZBCRIPTION of Lot 3 of Vrnr- lelwon thibdIvielen, Arnbvltle, Texas Bring a 0.196 of an acre (8,559 square het) tract of land looted in Ihe,Pleunnt Gray League, Abstract 24, Walker County, Tans and being ell of Lot 3 ditto Veins-Johnson Subdivision, a recorded la Volume 5, Pap 81 of the Plat Records of Walker Quincy, Tmua (P.R.W.C,T.) nine being a portion of that certain anted 1.17 acre tract eland conveyed to the City of Huntsville by deed and reoorded In Volume 9SS, Page 720 ofOfflolal Public Records of Walker County, Tiaas (O.P.R.W.C.T.); aid 0.196 of an acre of land being mom particularly described by melee and bounds as ddlows: • DEO1NNIN° al a polar in the westerly Ike of that certain celled 50' Road as recorded in Pap 161 of Dad Records of Walker County, Toms (D.R.W.C.), being the northeasterly owner of Lot 2 of said Vann -Johnson Subdivision, same being the southeasterly corner of said La 3, sad being in 6e easterly lane *field 1.17 awe boot, Rom which a found 5/8- inch Iran rod with cop bean South 57°23' West, 0.42 feet•, THENCE, 8ontb 87624'13" West, s detalu of 150.16 tut, along the northerly line of sold Lot 2, being the mmherty line of said Lot 3 a a found 3/84neh Iron rod with cap in the easterly line of that certain ailed 0.21 on Pact of land conveyed to Hay Randal by deed end recorded in Volume 94, pegs 180 of said Deed Records, bolmg the nortirneaterly earner of said Lot 2, same being the southwesterly Lot 3, and being in the wrstedy line of said 1.17 we tract; • THENCZ, No tb 0'35'47" West, a Selena of 57.00 hot, along the ssslerly 11ne of sold 0.21 acre tract, bel g the westerly line of sold Lot 3 and aid 1.17 acre tract to a found S/8 -inch Iron rod with cap at the southwesterly comer of Lot 4 of slid Vann4ohnson Subdivision, being the awrtttwuwrty corner of sold Lot 3; THENCE, North 87'24'13" Eat, a dletanes 01150.16 AM, along the southerly lire of sold Lot 4, being the northerly line of sold Lot 3 to a hund S/14noh tom rod with cop la the westerly line of said 50' Road, being 11e solduwterly comer of sold Lot 4, awe being ON northeasterly comer of sold Lost 3, sad beleg In the easterly lie of said 1.17 sore tram; THENCE, 8014110235'47" East, a distance of 57.00 Mt, along the westerly line of said 50' Road, being Oe easterly the of sold Lot 3 and sold 1.17 non tract to Elm Point of Beglanlog and containing 0.196 ohm son of land. Horizontal Control b based on holding City of Runlet/10 Monuments No. 7574 (grit coordinate of North - 10,262,483.31 & Hasty 3,102,009.473) and 7575 (grid coordinate of North 10,262,526.24 &.Casa, 3,801,710355). &whip described an related to the Tema Coordinate System of 1913, Central Zone. Menem shown ate US Survey Peat In "Fiend Horizontal" unite and may be convened to "GRID" units by multiplying by a combined tole factor of0.99988. Plat of even date accompanies dill description. Prepared by: 00080Iutions, LLC 25814 Budd. Road Spring, Turns Tel. 281- 681 -f766 Job No. 1144P-027 T: \Idld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 40 of 50 O MIed 1nl • Mt 5 1 M5 1 111 1-- /Aged Ural f111K LEGEND Bk V01 Ps 0000467') OR 1029 182 R CLAM CUT ra wow e unsa 1([1G1p55tp1 /.R.•CG.t. M�YIIr 70111iY1ed MAX MIA KM= WIWI UMW TWA NAT 18 ""° 49111 1.N1.11.1. 0.11.11/.5.1. Kola r . 70' 110,714.13'W LOT VATO4401e0014 vol. 5. PALW.CT. '141 5, VN• 4 yo Ogg l .aywl •y M M YM 1.4 Km 1511 1511 •1•511 .....y1 IIy.IMw 11. weed wed• a p. going.gMwr, wN 1551 Nw Tge• B e •41 ►n„WMrW 1441..1 W 14 •YW 1111 . G•1.1.111, h. • Angry • I I. .I.. ONt NOTE* 1. loft .w.Y •.1 r.druM •115141 15. 1aw1 .1 • nu* e.l..nw «e f. wdw.wl Gage w tow go WO, 4W N twiner MMmas y.. IAN (yW ••.r4s5 N 1155 • 111.1111.4111.21 • del. 7.•25511.0t1) W AA (lee g.rlyl.earth . 1•55L55L74 • 1w1. 1551.711 4...ww we Mooed 1 Igo N.w Gf..�W,..YUN M1m MI 41111148.. 4.l..... MM..w "G Pod w YW 1a•1W golr .M 11117 M amgrl.4 b '180 gods M .MYMy H • •5-4141 1 Noir of 011551 7• 1yr 41.1. 1.141 11.w 1.1.1 w YAM w r.YS.•1.oi, 14141 1141 b �••••d w 'WNW .mawr .1 4. A Arrj1M M ..a Aw .w.ry.ew W 4111 . 'l nave rw tg �uap o =WASW AS $R1J11a4r lisatt LOT 3 OF VANN- 3OHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE, A.24 IN WALKER COUNTY, TEXAS Solutions,LLC Nem1•1•N 4,h 141 f11W1 -1170 T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Interim Construction Deed of Trust_20120227_ v4.doc Page 41 of 50 • • Bk Val1 Ps 00004670 OR 1029 183 • METES AND BOUNDS DE8CB1PT10N of Lot 4 et Vern .Yobaon Subdividon, BuutsvRie, Tens Being a 0.196 of are (8,559 square Set) trot of land located In the Pleasant Cray League, Abstract 24, Walker County, Texas cad being ell of Lot 4 of the VianJohnau Subdivision, as recorded In Volume S, Page 81 of the Plat Records of Welker County, Texas (P.ILW.0 T) same being a portion of Ihat certain called 117 sore trot of land convoyed to the City ofluutsville by deed end ;worded h Vohnne 955, Pap 720 of OR9ohl Pubib Records of Welker County, Texas (O.P.R.W.C.T.) ad 0.196 of an sae of land being mom particularly described by meta and bounds as tbilows: BEGIIVNWO at a hand 5/11-inch boa rod with cap in the westerly Ike of that certain called S0' Road as recorded la Volume 85, Pap 161 of Deed Records of Walker County, Texas (D.R,W.C.) being the southeasterly comer of Lot S of said Vann-Johnson Subdivision, are being*. northeastely comer otaid Lot 4, and being in the eats* the amid 1.17 acre treat; 71111101CR, South 92'35'47" Xe. h a distance of 57.00 feet, along 61e westerly Ike amid 50' Road, being the snhrly One of said Let 4 and said 1.17 are treat to a hand S/8•Inelr Iron rod with tap tar the northeasterly corner of Lot 3 of sold Ve nr,3obnaa Subdivision, being the southeasterly COW of said 1.ot 4; THENCE, South 17'24'03" West, a diatoms .1150.16 feet, along the northerly One of said Lot 3, being the southerly line of said Lot 410 a found 5/8.ineh iron rod with oap N the easterly Ike of that certain celled 0.21 acre Mat of lad conveyed 10 Belly Bendel by deed and recorded la Volume 94, Pap 180 of said Deed Reefed., being the nortlnvashdy comer amid Lot 3, same being the soutlnwerteriy coney °t ask! Lot 4, and being in de westerly Ilse of seid 1.17 sera treat; TI INCE, North 02035'47" West, o distance .157.00 feet, slag the easterly Rue of said 0.21 are Matt and that certain celled 0.62 are tract of lard conveyed to Abe Johnson by dud and r.couded in Volume 96, Pap 192 otuN Decd Records, being*. westerly One of said Lot 4 and said 117 acre had ;.found S/8 -inch bon rod with asp et the soutbwestedy canter of said Lot 5, being the northwesterly coma of kW Lot 4; THZNCE, North 87024'13" East, a Meanies .1150.16 het, shag the southerly line of aid Lot 5, being the northerly the of seal Lot 4 to the Point of Beginning and *entrant's(' 0.196 of en sore of lad. Herhoatal Control Is breed as holdhtg City of Huntsville Monument. No. 7574 (grid coordiaM, ofNatb- 10,262,48531 & Best - 3,102,009473) and 7575 (grid coordinate of North 1%262,526.24 & Bast.. 3,801,780.255). Baring described are related to the Texas Coordinate System of 1983. Canon! Zone. Distances shown are US Survey Pat In "Field Horizontal* units and may be converted to "ORB)' units by multiptying by a combined sale factor 010.99988. • Prat Omen dab accompanies this daedption. Prepared byt GeoSotulloue, LLC 25114 Budd. Brad Spring, Tans Tel. 281.6319766 Job 14o, 11-249427 T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 42 of 50 Bk Vol Ps 000046 79 OR 1029 184 • LEGEND —P-- • POW* WWI —a— Met -IA- nat N Norma CA44OfPty POI. ARXPAC API NO2JO'47'W 57.00. s • 11N«1R.w was" 11 U*W.tr. "Gomm, MAO PAWAbT. NIIMIY ./YIIN .0).4 Iq 1 Ip 11 wra it It or al sorsa — N67114'13".6 MAW Xf CAMP Alf AG RIMafL VOL '4 PACO AMA N goer. dP°ais'it au i uxa amoivitiON Vol.s MIS nalw.c.T. SUMMITS CERIFIOATI 1 i.NW ..Nh 11 R. PAP N NwI.NN m.. U11 w•.., w toot IN Ilr .n��..WMy�..•wywrw WNW 114 PMMMP hood giymWl 1.4 IM..MP14 M� .1 TwM i.d.lIM'�1, ... =PC PINK* w yww.0 w • Now H ». *ALL W. WO Nowa w P.IMM.t..Y. 4?oI N I •...PI u • Mw 7N• � ( �� Nowononio 1141.0•1. N MH . 441.NNi Lw SIL47 M '4W.— .0 ✓ 1..P• 111.11111.111•44 Pp• coml.* Now of INA NAN bow Obionow Non on 1111 lump /M f. 4Y/ N0MMW Wb 414 w.r•�I M pwlM to • 111 41w y •NPPNI.4 11..41..Yw..NP NW H MINK • INN M.1q. INN Now 1..w p 'Wood r MNm4IMN *..4111 NI N •.t +..may rennet N.. NOON ww Loy N IP. 11401144,4414144M4140141: . 4. A *NOM 44 inv. No wombs WY OM. LOT 4 OF VANN-3OHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE, A -24 IN WALKER COUNTY, TEXAS T: \ldld\Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Interim Construction Deed of Trust_20120227_ v4.doc Page 43 of 50 • • Bk Vol F`9 00004670 OR 1029 185 • METES AND BOUNDS DESCRIPTION of Lot 5 of Vant Johnson Subdivision, Huntsville, Texas Being a 0.196 of an acre (8.559 equate fat) tract of land located In the Pleasant Only Lugoe, Abstract 24, Walker County, Texas and being all of Lot S of the Vann-Johnson Subdivision, as recorded in Volume 5, Page 81 of the Plat Reeerds of Walker Counity, Texas (P.R.W.C.T.) ame being a portion of that certain alId 1.17 ten greet offend convoyed to the City of Huntsville by dad and recalled In Volume 955, Pap 720 of Official Public Records of Walker Comity, Texas (0.P.R.W.C.T.); said 0.196 of an acre of had being more particularly described by aims and bawds u fbOoun: BEGINNING at a farad $/d -hush iron rod with cap i t the westerly the of that canto called SO' Road as recorded In Volume ES, Pap 161 of Deed 1leemds of Walker Canty, Texas (D.R.W.C.), being the northeasterly corner of La 4 of said Vann.Iohusau Subdivision, same being the sautheaetsdy comer dead Lot 5, and being in the easterly Ilea of aid 1.17 awe treat; THENCE, South 87114'13" West, a distance pf 150.16 feat, along tits nortMrly line of odd Lot 4, being the southerly line of said lot 3 to a Sound 5/11.1sch Iron rod with cap in the easterly line of that eaetain abed 0.62 acre Imct of land conveyed to Abe Johnson by deed and recorded in Volune 96, Pap 192 of said Deed Recads, being the northwesterly canner of said Lot 4, same beteg the southwesterly comer of aid Lot 3, end being bt the westerly Tina otsatd 1.17 acre tract; THENCE, North 03°35'47" West, a dlataoce of 57.00 feet, along the eastedy Sue of said 0.62 acre tract, beteg row westerly IGe of said Lot 5 and said 1.17 acre front to a found 5/5-inch iron rod with cap M the southwesterly comer of Lot 6 of said Vmie-Johnnson Subdivision, being the north wstedycorner *fund Lot Si THENCE, North 87'24'13" East,* distance of 150.16 het, slang the southerly tine of said Lot 6, being the uorlherly Ilse of mild lot 5 to a found S/8 -Moir Iron rod maims In the westerly line of mild 30' Road, being the southeasterly corner of said Lot 6, same being the northeasterly caner of aid Lot 5, and being In the easterly line ofseld 1.17 eon treat; THENCE, South 02°31'47" Eu1, a distance of 57.00 fat, along the westerly line of said 50' Road, being the easterly line of old Lot 3 and acid 1.17 acre tram ta the Point ol'Deglnning end containing 0.196 of la tore eflud. Horisont,d Control is based ore holding City of Huntsville Monuinenta No. 7574 (grid coordinate of North., 10,262,455.31 sit Bum 3.$02,009A73) and 7575 (grid coordinate of North 10,262,526.24 & Bach 3,101,750.255). Beeringa described are reined to the Texas Coordinate System of 1983. Cadre! Zone. Distances shown ere US Survey Pest ins "Nerd Horlsordai" units and may be convened to "ORID" units by multiplying by a combined eats factor of 0.99981. Plat of even dos accompanies Ibis description, Prepared byt GeoSolntbu, LLC 25E14 Budd* Road Spring, Texas Tel. 281- 681.9766 Job 1h.11- 249.027 T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 44 of 50 iii♦ - �41a:7.I� =MLA= 1117411111111111111 Bk Vol P9 00004670 OR • 1029 186 LEGEND MUM 1•r•1p ROC NaSO) POMO 13•33 U E! SOON Or 0114.337 utw our A� 7g1a rat 01.W.1.7• CM= WNW M.1.rA7. riZ 0011177, 110330 CAL22 A IM" pw. s a »! iltA .SCALD N' . 3tl qtr (are 14 -Inns Par N07'24''J'L .x111. • O r•"` ii�'i �n CAL/•!O O.SI ANSI Y06%570+ akrar. S87'a4N3 .W r —71E1100 - 1.att v sustayssoar voi. LTG. n P.LW.CT. SI Wel0IYQ CCIIPICAIE 1414 ..wry N 71. M/ N AWN", *4* *1... {•41•• .. l*111N 114* 11N* 1 wry w4•01* 1iM� .N 1* y Oli�.rl .1.w1 o.OW Oi�1.W1..i1 LMMMw• 141414 • 3•4••4 c.i M 17,..1. 11414.1. wr...• 11.(2 No. 3y7 NOM 1..., — 141..414 •11441 1114 1...•33 .1 . TO. 7. N4.•• (NNW • 0•• w •I144 q •11001.MN ws.4...1. N.. 71174 (W ••••••• M .W11 • 141.21011131 S Ow• ).1102004•3) 4.. 7117 (Oa ...411• N N4* • 11.014.11104 L•N. 214.7)0.111} •••1.• 41.4\14... *4•• 1• M tw.. •■••• 44•• N 1112 Coded LM 01••••• •••••• w 41 4.4 HIM F +w *Awe .4. .r u.I w ...r• IS ••••• w0.•7.1414.317 M. ...11.14 ...h M1.. N 011111 4 NWn •••• 1.IN 141.. 1W.. 4...14 on 41404.4. Oisum NMI .i 1I !wu•• 0....N./ •..414 M I7 .. 7. •••••14. • — ale •••••• wti/ 1141. LOT 5 OF VANN- JOHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE, A -24 IN WALKER COUNTY, TEXAS 11111Solutions,LLC A1 4....111 /1. 7 SOD1.411 -1770 T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville\Interim Construction Deed of Trust_20120227_ v4.doc Page 45 of 50 • • Bit Vol 00004670 OR METES AND BOUNDS DESCRIPTION of Lot 6 of Venial eon Subdivision, Hantevthe, Terra Being a 0.164 of en sots (7,126 sgurs Net) treat of Dad located in the Pleasant Only Lague, Abduct 24, Water County, Texas end bolog ell of Lot 6 oldie Venn4obaeon Subdivision, as recorded In Volume 5, Page I3 of the Plat Records of Walker Comity, Texas (PRW.C.T.) isms being a portion enlist easels celled L17 ape Kent of land conveyed to the sty of Huntsville by deed and recorded in Volume 955, Pep 720 of Mobil PnbW Reams 0f WaUoer Comity, Texas (0.P.IL W.C.T.g said 0.164 of an meet of land being arose psrdeulwiy described by meta and bounds u follewe: BRGHINJ1(O at a Rand 51$ 40 ban rod with rep in the won lady Una of that certain tolled S0' Road as worded 1e Vobme 63, Pap 161 of the Deed Records of Welker Cony, 'lbws (D.R.W.C.), belong the no:t udesty donut of Lot 5 of said VwsJohnsoa Subdivision,' same being the southeasterly comer of said Let 6, end being la the easterly Una ofuid1.17 men tract; 'THERM Soulh117,24'13" west, a distaste. of 150.16 het, alms the nottherylineofieldLet 5, being the somberly Iins of sold Lot 6 to m found 5/6 -molt Iran wbh cap la We easterly line of dot outdo Galled 0.62 acre out of lend conveyed to Abe Johnson by deed end recorded in Volans 96, Pep 192 of soil Dad Records, being the nortinneterly comer of said Lot 5, same being the santhweeterly comas of said Lot 6, and being In dawns/sty One of aid 1,17 acre Kest; THENCE, North 0263S47* Wee% a Allstate* of 33.10 feet, slag the elderly Hu of aid 0.62 sore hut, being the westerly 111e of said Lot 6 end said 1.17 men trot to • found 5/14nalo Iron rod with up at the southwesterly comer of dot outdo sailed 0.032 sop trot of lend conveyed to Cal Johnson by deed and recorded in Volume- 977, Pap 120 of said Motel Pablb Records, being the nardtwaealy comer of RN Lot 6,'ame being an interior comer In the westerly line of aid 1.17 we had; THENCE, Nertb117'24'13" ]tar, a Odom* of 6032 Aat, slang the southerly lino of said 0.032 sae treat, being the westerly Ike of said Lot 6 and said 1,17 doe tract to a fboed SW 46 Inn rad with rep et the soutbeestady canner of aid 0.032 more hoot, being an interior comer is the westerly lbw of add lot 6 and a1/ 1.17 sore tract; THENCE, North 04•14'21" Wart, a Selma of 23.65 het, along*, eatery Ike dead 0.032 acre Irsot, beteg the westerly line of said Lot 6 and aid 1.17 age teat to a found 5/1 -Itch iron rod with top at the nodtaatery earner Walt 0.032 can Ireek belH the southeasterly earner of . that certain ailed 3,000 q. A, Dart of lad conveyed to Cal Jamb by deed end recorded in Volume 215, Pap 412 of said Decd Raid% sae being de southwesterly comer of thr attain' called 0.756 awe trial of land soave* to the City of !manilla by dads and reseeded In Volans 524, lap 299 and Volume 514, Pap 305 of aid OMdel Public Records, also being at northwesterly meow ofsaid Lot 6 sad said 1.17 sore mach THENCE. North 16'51'49" Rut, a distant' of 1933 feet, along the southerly One of told 0.756 awe trot, being de northerly line of told Lot 6 and told 1.17 acre tact to a Pound 5/1 -lnel Iron rod with up et the northwatariy comer of said 30' Road, being the northeasterly sonar of • said Lot 6 and said 1.17 ante hat; THENCE, thumb 02'35'47" Rut, s dlataam .157.59 feet, along the westerly line of said 50' Road, being the easterly Use of said Loth and said 1.17 use hard to the Foist of Hegtaaing end containing 0.164 of an sore of tend. Ps 1029 187 T: \ldld \Loan Docs \NSP\Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 46 of 50 • • Bk Vol Ps 00004670 OR 1029 188 Horizontal Control It band on holding City of Husesvilie Monuments No 7574 (grid coordinate of Norib - 10,262,485.31 R Eastw 3,802,009.473) and 7575 (grld con dIoate of North 10362326634 dr East- 3,801,780333). B wings dosadbsd are related to the Texas Coordinate System of 1983, Ct*.1 Zone. Dhtancea shown are US Survey Prot in "Plaid Horizontal'. units end mey be convened to "Olt1D" unite by multiplying by a combined scale factorof0.99988. Plot of even date ecoompanlss this description. Prepared by: CeoSodutloxs, LLC 25814 Dudde Road Spring, Turns TM. 281-6111-9765 Job No. 11-244427 T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 47 of 50 Bk 00004670 OR Vol 1029 T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 48 of 50 Ps 189 00004,670 Bk OR V o 1 LEGEND • •XLIRNIRIN R awl ON •••s— MCP WS .N row rat --B— row xn � 1n lw 1vO1-fir- MX N •wwwi11.cr. Own. u PLW !. M• R`um a•41.10 am 40000 cvrrmamms CAUSD 000 aa� w ru AO. x LS A A VOA df VOL Of ORY.Cr. � . N04Y�Rt• MM1LtT•R N810i1'4�'C M�1yt1 mil MPS _ nr61orIr" yam, Ne7-2Q'2117^C 11t maxi" nw$A1#. P tart 1i w gtw w► 1 (t21 sou rrd ik ! Le. Ilk 764d —..W..41/20M-1 cata .� a?7#P Ar t ' I t ir �.)< )4,,,OP �'� VOL aSS A Ip lki ~� vOi.r•rts.a t.RW.CS. 1CAD 1•r ld 1 Mry olWp 1 • a• N Solon 8111 MM runs no •d• o •r rood W •r•kw o Moat It. 2M IInt N •� y N IM ON IoM Inn/ •1 M rn1woo1111ooM1�yyMr =en I' w':1 ( l•lo ..11".1 WIty 11 MAMi RA L* 11s 1•yr HOTS/ 1 AM `own — wn ro • •414•1 W Mon •I • NO Csavallon i Nwon1• Conn 4 MM o MMMR aM •I MIDI• NI••1N•t. In NM tr• •••••• • ••■ • l/it•tl1. • dr. 7A3LIKII1 3 N SOS aril •••I1•1• mil Moro • 11S)Jq.1d ton • 3•11.7011$4 1•My Awned ON NOW M Yr Ono Sw••M loot 1 1111 0.111.1 too llre.M now en W Mn. Ind • SW t nolm• own an en N among M Mae min sr • nor nob Inn of MOOR A Ono* IINOM Inds •w Arl•n on MW w onewsn • Mom Mp1d~y m alls1 w't'M•N+l to WIMI• moon M 1. • MIeYOO M on Ms 1•rronM On IMl, LOT 6 OF VANN - JOHNSON SUBDIVISION OF THE PLEASANT GRAY LEAGUE, A-24 IN WALKER COUNTY, TEXAS 1 0 2g_ T: \ldld \Loan Docs \NSP \Interim Construction Loans \1266 City of Huntsville \Interim Construction Deed of Trust_20120227_ v4.doc Page 49 of 50 19 0 Q J co c 2 I� (0 w N_ 4J 7 c 0 To 03 so G 'L Qa Exhibit B — Lot Release Price c 0 v N C c 0 U L VI H 4..� U U c 0 y a in Q c , i v f0 L - Legal Description • N N N N N t0 0000 Ol Ln Ln N 01 Lf1 M O Ol t0 00 0 -1 CO R R eI. 00 R d Ni ,-1 i-1 N ,--1 ,--I (-4 ei c-1 i-1 ei e•i ei e-1 if). .V1• V? i/i if? tn. in• .-i e i--1 1--1 ei t e 1 . 1-i 0 N N N N N t0 lD t0 0, Ln M t0 t0 O r1 Ln N ,-I rl N 00 Lf1 t0 N 00 in 0 00 cn" O O if) -V? in. if)• 1/1- if1. i/) m M m 0 m m O O tD O O e-1 t0 N t0 r-1 co cm Ln N M e-1 0 in e- N 00 0 Ol N 01 01 e-.1 01 0l in in if? tn- tn. Ln O M M 0 0 ei if1• 0 O O O 0 0 N Ni Ni Ni N Ol N Tr Ln N N. N 01 01 01 01 01 01 in• in tn. tn. ill- CO M M M M LC) Cr) rv1 M M M M M M M M M M M CO M CO M M 00 CO CO 00 00 00 Ln Lf1 Ln Lrl Ln Li1 i/? in• i/) V} i/1 tn. e-I N M Cl Ln t0 ai a ai a; ai rr0 0 0 r°00 o 0 r0 0 0 to *' C r�0 0 0 .N a °•� °•� v O•v, v °.N >- ... > a 9- > a o > � 0 ->- o > r0 -0 r0 'O CO _ -0 r0 '•Z3 CO 10 0 f0 M C7 f6 = C7 f° = W r6 0 r0 = c 0.0 N c Ln c Ln c N c v1 O O O N co-0 O H O .0 CU -0 L a) t a) -p O t a) -p CI c- O • c' O a c 0 n. c o a c 0 c r0 c `° c r0 _' c `0 ' c to _, .- c .- 't7 c • - c •- c •- O N c a) N c a) Ni C a) NC a) NC cvo.U> m 0> R U> co U> m U> 00 00 t0 fL6 t0 fL0 l0 co L a) ri -C2 4" e•-1 . -0 4- e1 i -a 4- e 1 4� ei -0 4- 0 Q 0 Q 0 0 < o 0 Q 0 0 Q 0 C CO C7 CCI r0 a) a c •N 0) L 0 r0 t0 0 �o 00 .0) Tr- N 0 c0 .0 Q N 00 J 0 c t 0 c r0 > 0) t 0 0 tD 0 : 9 0 v1 0 0 0 0 0 4 > 4 4 4 N a, v Ln r - e-1 N N ii 1-1 + ei c-1 e•1 a-i % 1 00 0 0 00 00 0 LID t0 t0 t0 (.0 t0 N N N N N N ei ei ei 1--1 e-1 • • Bk Vol 00004670 OR 1029 192 Filed for kecord in Walker county On: Jun 27/2012 at 01:33P As a Recordings Document Number: 0000,670 Amount: 216.00 Receipt Number - 62166 89, Rachel Yarabeck STATE OF TEXAS COUNTY OF WALKER I hereby certify that this instrument was filed on the date and time stamped hereon b9 me and was duly recorded in the volume and page of the named records of: Walker county as stamped hereon b9 me. Jun 27.2012 kari A. French/ Walker county Clerk Walker county RESOLUTION NO 2012-21 A RESOLUTION OF. THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, REPLACING THE CITY'S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL MATTERS PERTAINING TO THE CITY'S PARTICIPATION IN THE NEIGHBORHOOD STABILIZATION GRANT PROGRAM. WHEREAS blight is a problem for Huntsville as is affordable housing for low - income residents. This award will allow for the removal of blighted structures and provide new homes for low - income residents; and WHEREAS it was necessary and in the best interest of the City to apply for funding under the 2009 Neighborhood Stabilization Grant Program. NOW, THEREFORE, be it resolved by the City Council of the City of Huntsville, Texas, that: SECTION 1: The City Council amends Resolution 2009 -04 Section 5 to replace City Manager Bill Baine as the Chief Executive Officer and Authorized Representative and granting this authority to the Mayor, City Manager and /or Interim City Manager. PASSED AND APPROVED this 7th day of May 2012. ATTEST; oodward, City Secr ry APPR • VED (j/ TO FORM: - n Av. chneider, City Attorney THE CITY OF HUNTSVILLE 44- ill Mac Woodw. d, Mayo sCANNED53 ENTERED JUL 1 6 2012 RESOLUTION NO..2009 -04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE SUBMISSION OF A..NEIGHBO.RHOOD STABILIZATION PROGRAM (NSF) GRANT APPLICATION TO THE TEXAS DEPARTMENT OF COMMUNITY AND HOUSING AFFAIRS (TDHCA) FOR THE HUNTSVILLE NEIGHBORHOOD STABILIZATION PROJECT; .AND AUTHORIZING THE CITY MANAGER TO ACT AS THE CITY'S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL MATTERS PERTAINING TO THE CITY'S PARTICIPATION IN THE NEIGHBORHOOD STABILIZATION GRANT PROGRAM. WHEREAS Blight is a problem for Huntsville as is affordable housing for low - income residents. This award will allow for the removal of blighted structures and provide new homes for low- income residents; and WHEREAS It is necessary and in the best interest of the City to apply for funding -under the 2009 Neighborhood Stabilization Grant.Program. • NOW, THEREFORE, beit resolved by the City Council ofthe.City ofHuntsville, Texas, that: Section 1: An application is hereby authorized to be filed on behalf of the City and be placed in competition for funding under the. Neighborhood Stabilization Grant Program. Section 2: The application will be for $1,000,000 of grant funds to implement the .Neighborhood Stabilization Project. Section 3: It is understood that the NSP is a-reimbursement program. Section 4: The Mayor and City Council :strongiy.support this application t� address:the blight removal and low-income housing production for the city and residents of Huntsville. Section 5: The City Council directs. and .designates the City Manager, Bill Baine, as the City's Chief Executive .Officer and Authorized Representative to act in all matters in connection with this application and the City's participation in the Neighborhood Stabilization Grant.Program. PASSED AND APPROVED this 7th day of April, 2009. ATTEST: 4, -Fstephanie-Brint, City Secretary A ,vAJ Sin; APPROVED AS TO FORM: Schneider, Interim City Attorney F HUNTSVILLE, TEXAS J. Turner, Mayor