Securities and Exchange Commission v. Nadel et al

Filing 1160

NOTICE by Branch Banking & Trust Co. Successor to Colonial Bank NA re 1159 MOTION for Release of Funds Turnover of Sale Proceeds of Filing in Support of DE 1159 (Attachments: # 1 Exhibit Ex. 1 - Declaration of Richard Miller, # 2 Exhibit Ex. 2 - Declaration of David Hendrix, # 3 Exhibit Ex. 3 - Declaration of Elizabeth B. Dombovary)(Garbett, David)

EXHIBIT 1
BB&T’S NOTICE OF FILING IN SUPPORT OF MOTION FOR TURNOVER
OF SALE PROCEEDS OF FAIRVIEW PROPERTY SUBJECT TO MORTGAGE
INTEREST AND SUPPORTING MEMORANDUM OF LAW
Securities and Exchange Commission v. Arthur Nadel et al.
U.S. District Court, Middle District of Florida
Case No. 8:09-cv-0087-T-26TBM

IN THE UNITED STATES DISTRlCT COURT
FOR THE MIDDLE DISTRlCT OF FLORlDA
TAMPA DIVISION
CASE NO.: 8:09-cv-0087-T-26TBM
SECURlTIES AND EXCHANGE
COMMISSION,
Plaintiff,
vs.
ARTHUR NADEL, SCOOP CAPITAL,
LLC, SCOOP MANAGEMENT, INC.,
Defendants,
SCOOP REAL ESTATE, L.P.,
VALHALLA INVESTMENT PARTNERS, L.P.,
VALHALLA MANAGEMENT, INC.,
VICTORY FUND, LTD,
VIKING IRA FUND, LLC,
VIKING FUND, LLC, AND
VIKING MANAGEMENT, LLC,
Relief Defendants.

----------------------~/
DECLARATION OF RICHARD MILLER
I, Richard Miller, declare as follows:
1.

I am an Assistant Vice President with Branch Banking and Trust Company

("BB&T") in the Mortgage Non-Performing Assets Division located in Greenville, South
Carolina.
2.

I base this declaration on personal knowledge and review of documents as

described below.

The documents record acts and events, were made at or near the time those

acts or events took place; were made by, or from information transmitted by, a person with

GARBETT, STI PHANY, ALLEN
80 SClJTtMEST EI GiTH STREET, SUI TE 3100,

&

ROZA, P.A., ATTORNEYS AT LAW
M AM, FLffil DA 33130 • TELEPH~E (305)

579- 0012

CASE NO.: 8:09-cv-0087-T-26TBM

knowledge; were made in the course of a regularly conducted business activity; and it was the
regular practice of the business entities to make the record.
3.

I submit this declaration in support of BB&T's position that the Court should

permit BB&T to recover $267,720.59, the net proceeds of the sale of the Fairview Property (as
defined below), even if Burton W. Wiand, as Receiver ("Receiver"), did not receive BB&T's
formal proof of claim on or before September 2,2010 on BB&T's residential loan secured by a
first mortgage on the Fairview Property.
4.

As of 2009 and continuing today, I oversee and manage non-performing

residential mortgage loans for BB&T.
5.

On June 14, 2004, BB&T made a purchase money loan of $268,000 to enable

Arthur and Marguerite J. Nadel (collectively ''the Nadels") to buy residential property at 131
Garren Creek Road, Fairview, North Carolina 28730 ("Fairview Property"). To evidence their
indebtedness for the loan ("Fairview Loan"), the Nadels delivered to BB&T a note dated June
14,2004 for $268,000 ("Nadel Note"), a copy of which is attached hereto as Exhibit A.
6.

On the same date, to secure the repayment of the Nadel Note, the Nadels

delivered to BB&T a first-priority Deed of Trust (''Nadel Mortgage"), which BB&T recorded on
June 14, 2004 in Official Record Book 3678 at Pages 318-341 of the Public Records of
Buncombe County, North Carolina, mortgaging the Fairview Property. A copy of the Nadel
Mortgage is attached hereto as Exhibit B.
7.

In 2009, the Nadels defaulted on the Fairview Loan. Thereafter, the file was

transferred to my department, and I was charged with supervising the collection and recovery
efforts.
2

CASE NO.: 8:09-cv-0087-T-26TBM

8.

I promptly caused the file to be sent to BB&T's counsel in North Carolina to

commence foreclosure proceedings against the Nadels. Thereafter, I learned of the filing of this
Receivership, as a result of which I halted the foreclosure process in North Carolina.

I

understood that BB&T engaged Gray Robinson, P.A. ("OR"), BB&T's Florida counsel, on a
very limited basis to provide periodic updates as to the status of the properties on which BB&T
held mortgages at issue in the Receivership and for limited research issues.
9.

There were two BB&T mortgage loans involved in the Receivership, the Fairview

Loan and a commercial loan to Laurel Preserve Ltd. ("Laurel Preserve") secured by a mortgage
on property in North Carolina owned by Laurel Preserve ("Laurel Preserve Loan"). Copies of
the note and mortgage on the Laurel Preserve Loan are attached hereto as Exhibits C and D.
10.

Two different BB&T departments were overseeing the non-performing loans-

the residential mortgage department was overseeing the Fairview Loan and the commercial loan
department was overseeing the Laurel Preserve Loan. It was BB&T's standard practice to
directly submit proofs of claim in bankruptcy proceedings and receiverships rather than to use
counsel for this purpose.
11.

On August 27, 2010, BB&T employee Kade Herrick ("Herrick"), who assisted

BB&T Vice President Michael Pocisk ("Pocisk") in the residential loan department, sent two
emails to a OR attorney, one attaching a proof of claim on the Fairview Loan completed and
signed by Pocisk ("Fairview POC"), with supporting documents, and the other indicating that
Herrick was going to send the Fairview POC to Maya M. Lockwood, Esq. ("Lockwood"), the
person designated by the Receiver to receive proofs of claim.

3

CASE NO.: 8:09-cv-0087-T-26TBM

12.

On or about October 19,2010, I became aware of information indicating that the

Fairview POC had been timely submitted in the Receivership, BB&T's interests were fully
protected, and we would have to await the Receiver's sale of the Fairview Property to receive
payment.
13 .

I understand that on April 26, 2012, the Receiver's counsel advised a GR attorney

that although the Receiver had timely received BB&T's proof of claim on the Laurel Preserve
Loan ("Laurel Preserve POC"), the Receiver had no evidence of receipt of the Fairview POCo
This is the first notice that BB&T had that there was an issue with the Fairview POCo

I

understand that in response, GR immediately sent the Fairview POC with supporting documents
to the Receiver's counsel.
14.

Herrick left BB&T on October 28, 2010. According to BB&T's retention policy

in effect, BB&T purged his emails, both incoming and sent items, within 120 days after his
departure. Accordingly, as of April 26, 2012, when the Receiver' s counsel notified GR of the
claimed non-receipt of the Fairview POC, BB&T was unable to review Herrick's sent emails or
obtain a copy of Herrick's email transmittal of the Fairview POC to Lockwood.
15.

BB&T intended to submit the Fairview POC on a timely basis to the Receiver,

just as it submitted the Laurel Preserve POC timely to the Receiver. Assuming that the Receiver
is correct in saying that he did not receive the Fairview POC, Herrick's failure to deliver it was
inadvertent and a clerical mistake, as he was tasked with the responsibility to send the Fairview
POC on time and expressed his intent to do so before the deadline.
I declare under penalty of perjury that the foregoing is true and correct.

ih

Executed thisc2r day of February, 2015.
4

~ :09-CV-0087-T-26TBM

, Richard Miller

5

EXHIBIT A
DECLARATION OF RICHARD MILLER
Securities and Exchange Commission v. Arthur Nadel et al.
U.S. District Court, Middle District of Florida
Case No. 8:09-cv-0087-T-26TBM

(Page 2

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230l

ADJUST ABLE RATE NOTE
(1 YCJr LIBOR Index - U,lle Caps· F1Jn~d

Rate ConvclsiOn O[ltWll)

(AssmllJble durlllg Llle of toau)hi l~\

IDO 15'QQ i~j J~3J Y71S

THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MV ItlTEREST HATE
AND MY MONTHLY PAYMENT nils NOTE LIMITS THE AMOUNl M'/ IN1ERES1 RAI\~
CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY TillS IWTE
ALSO CON1 AINS AN OPTION TO CONVERT MY AD,JUSTABLE !tHERES f RA 1 E 10 A
FIXED RATE

JUNE 14, 2004

AsheVllle
[ClIY]

IDalcj

131 Garren Creek Road,

Falrv~ew,

NC

North

Carol~na

iSlalej

28730
[Property Address I

1

BORROWER'S PROMISE 1 0 PAY
In return for a loan that [have received, I promise to PJy US $ 268,000 00
(tins nmounl
called "Prmclpal"), plus Interest, lC} the order of the Lender 'I he Lender IS Branch Bank ~ng and Trust Company

IS

I Will make all payment, under thiS Note In the form o! cash, check or money order
I understand tllat the Lender may

tr,m~rer

uus Note The Lender or anyone who L1kcs thIs Note by trd!1sfcr anc! who 1" crllllkd

10 receive paymcms under thIS Note lS Llllled HIe "Note Holder"

2

INfEREST

Interest will be dlJrged on· unpmdpnnclpal untll the full amounL of Pnnclpal has been P1Hd I.Wlllp,IYlnlcrcsl ,[I a yc,\rly
rate of
4 625% The mterest nile I Will P,lY Will change In accordanl-c wtlh Secl10ns 4 or 5 of !hlS Note .
The mtere~t rale reqUIred by tins SectIOn 2 JI1d Secuons 4 or 5 of thiS Note IS the fJtc I wlll pay both before and ,lfter any
defdult descnbed m Sct.tion 8(B) of thiS Note
3

PAYMENTS
(A) rtme and PlllCe of Payments

I wll] pay pnnclp,\l Jnd mteres! by makmg a p.lyment every month
J Will make my monthly payment on the first day of cach month begInning on August I, 2004........ .. .._ lwdlmakg.W.~~gJ}<!Yn.I.(;f1g,_<:_,,:~r.y[.~~~~~ __un[J! I have pmd all of the prmupal and mlereSt llod any olher charges tle~cnbcd below
thal I may owe under thiS Note Each 1110iiiElypiiyinenf \\illrbcapjmcU-a~r-ofl!SS-c:!Tedulr;dd\lc--date-Jndwll+be-applJe/J.--to-lOICrest before Pnnclpal If,oo July I, 2034
,1 slill owe amounts under Hus Note, 1 Will pay
those amount~ III full on thaI ddle, wInch IS called the "M,lluflty Dale"
r WIll make my monthly paymenL, al 223 ~lest Nash Street, Ihlson, Ne 27893
Or at il different place It flqUlred by the Note Hollier
(0) Amount of My IllItlaJ Monthly Payments
E.l('h of my lfllUfll monthly payments WII! be In the amount of US $ 1, 377 89
TIllS amouOl may
change
(C) Monthly P,I}mcni Ch.lOgcs
Changes In my monthly payment Wll! reflecl changes 10 the unpdlt! pnnclpuJ of my loan dlla III the IIltcrest ralC tlld( 1 must
pay The Note Holder will determme my new mtereSl r.lle and (he changer! amount of my monthly payment In ilcwrdance wlIh
Secuons 4 or 5 of lll!s Note
4

lNl ERES I RA I E AND MONTHLY PAYMENT CHANGES
(A) Change Dates

The HIlUoll mtereSI rate I Will pay may change on the fIrst ddy of July, 2007
, and Illay change on
that dJy every 12tll month thereHflcr Each date 011 wl1Jch my mterest r,llc could change IS cdllc(( a "ChJnge D,lIe ..
DOC # 533131

APPL # 7000466121

MUL TlSTATE CONVERnBLE ADJUSTABLE RATE NOTE· 1 Year USOR Index (Assumable)·
Single Family. Freddie Mac UNIFORM INSTRUM ENT

G

OMSO

®

LOAH # 6612432471

Form 35476101

taos

857M (010S)
VMP MOR,OAGE FORMS

Paglil .. '01 5

(600)5217291

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1/1111111111111111111111111

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(Page 3

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(II) The Indcx
Begmnmg wllh lhe flr~t Change Date, my tntcrcst rate.. wll! he b.ll.ct! on ,\I) lnd0x The "lmkx"
the OllC-YC<l( I m,((on
Interbank OfferedR.1K ("LlBOR") which l~ the averdge Di IlIlcrb,mk offc,cd folIes for one-yelll U <) c1111L\r-ilcnOrTllHHlul !lq)nSI1~ 1'1
the LondQn market, as puhlished lO The Wall S(reel TournaI 111C most reccnt Inekx !lgIllC llvdltlhk ns of Ihll d,llc 45 CLiYS htfole
each Change Date l~ cnllt,.,d the "CllHcnllnde)( "
If the Index IS no longt.r avmJdhle, the Notc Holder Wl!! choose d Jle..w Ind~x WllICl! )" hasC'd IIpon IOlllp:1f.\bh ml.lfflllll·jll
Thl.. NOle Holder W!1l give me nouee of lilb chOice
(C) CalculatIOn of Changes
Before each Change Date, the Note Holder Wll! calculate my new mterest rate by addtngTwo and One Quar.ter
percentage pOints (
2 250%) to th(' Currenllndex ThC' Note Holder will
then round the result or thIS addlUon to thc ne.lresl ollc'Clghlh of one percentage pOlnt (0125%) Sublect to lhe hmlls stalullil
ScctJon 4(D) below, UlIS rounded amount Will be my new Imercst rale lInlll the llext Change Date
The Note Holder WIll then de!ermmc the amount of the monthly payment Ihat woule! be sutrlclent to repdY the llIllhlld
pnnclpal that r am expeLled to owe at the Change Date tn filII on UlC Maturity Date at my new mterest rale III sllhslanHally equal
payments The result of thIS calcu!'llion win be ule new amount of my monthly payment
(D) Luntts 011 Interest Rate Changcs
The mterest rate I am requlfcd to pay <ll tile first Ch<lnge Dale wIll not be grc<lier than
6 625 % or Ic')~
than
2 625 % Thereafter, my mlerest fdle w1l1 never be m<.-redscd or dccreased on any smglc Ch,mgc DOLe- hy
by more than T\</o
percentllge poml(&) (
2 000%) from {he rdle of mterc~tI have been
paymg for the precedmg 12 months My mleres! nlle wIl! never be greater than
9 6:2 5 % (lite- "Maxllilum
Rale")
(E) Effective Ddte of Changes
My new !Dterest rate win become effecl.1vc on each Ch,mgc Dale I Will pay Ute amollnt of my new (fionihly paymCnL
beglnnmg on the fIrst monthly payment date after the Change Date unul the amount of my monlhly payment clJanges agdlll

i,

(F) NottteofChJuges .. .. ..
.....
....
..
The Note Holder WIll deliver or maJl I() liie a DOuce of any changes In my Interest rdte ali(I the amount of my monthly
payment before the e[fectlve date of any change The nouce WII! melude mformatlOn reqUIred by law [0 he g!V(m to me and also lht.
utle and telephone number of a person who WIll dIlswcr any ques!lon I may have rcganlmg thc nouce:
5
PIXED IN rEREST RATE CONVERSION OPTION
(A) OptIOn to Coo vert to FIxed Rate
I have d ConversIon Opuon WlllCh I can exercIse unless I am In defduH or thiS SectIOn 5(A) WI!! not pcnTllI me to lIo so The
"ConversIOn Opl1on" IS my opllon to convert the mleres! rate I dm reqlllred to pay by tIllS Note from dIl adJusldblc r,lle wllh mterest
... ..............

ralehm!l,'UQtl1t:f}x~r,lte calculalcdunderSec~!on5(B)

below

DOC" 533132

APPL

·place . on-a -dale(s)··

The conyers; ~H ·-c~i"o'nTy-'Wke
~peClficd-l5YtlicNo!e··T!O!clcf· drrrrn:gllre'·pcnodheg lHn Ingfln-lhc···
F~r6t
Change Date and endmg On the F1fth
Chdngc Dale Each date on whIch my ddJusldble lnterc.st rdte
can convert to the new fixed fdle IS called the "Conversion Date"
If I want to eXerCise the ConverslOn Opuon, I must fm,t meet cerlam contlluons Those condluons arc lhdt (I) [ mmt gIve the
NOle Holder fiouce that I want to do so, (11) on lhe ConverSIOn D.lte, T must not be In default under the Note Of the Security
Instrument, (m) by il ddte spcclCted by the Note Holder, I must Jlay the Note Holder a convcrslUO fee of US
$ 250 00
, and (IV) I musL &Ign and gIve the Now Holder any documents the Note Holder reqlures 10 effw the
conversion
(H) Caitulatl(ln of Fixed Rate
My new, fIxed mterest ralc Will be equal 10 the Feder,ll Home Loan Mortgage Corporauon's reqUIred neL YIeld J~ of a (j,HC
and ume of day speclfied by the Note Holder for (1) If the ong!ll<ll term of tlH~ NOle IS greuter than 15 years, 30-year fixed fdle
mortgages covered by apphcable 60-day mandatory debvery comm![ments, plus Zero and Fl ve Elghths
of one
percentage pomt (
625 %), or (II) If the ongmal term of tillS Note IS 15 years or tess, IS·year fixed mte
mortgages covered by applicable 60-day mandatory deltvery commitments, plus Zero and E' 1 ve Elghths of one perccnldge
poml (
625 %) If thiS rcqu\rt"ci net Yield Cdnnot be determmed becauhc the apphcJb1e commitments [lrc not
avmlable, the Note Holder will detcffmne my mterest ratc by llsmg comparable mfonnatlOn My new rate calculated under thl~
SecUOll 5(B) Will not be greater than the MaxnTlum R.rle staled In SectIon 4(D) above
(C) New Payment Amount and EffectlYC Date
rf [ choose to exercIse the ConverslOn Option, the Note Holder Will detennme the amount of the monthly payment that would
be suffiCient to repay the unpmu pnnclpdl r dill expected to owe 011 the ConversIOn Date III full on the MaturHY Date aL my new
flxed Interest r.lte In substanLJally equal payments The result of thiS calculatIon Will be the new amount of my monull)'
~

7000466121

LOAN

~

6612132471

Form 3547
G-857N {OIOSl
®

Page 2 01 5-

In'ilal.

81~

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(Page 4

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230)

p,\ylnem Begmmilg willI my first monillly payment 'lf1er the Conver,IOlI n,\te, I will pay !lIe Ilew d'nmmt [l', my lfIOlllhly pa') 1ll1!1l1
\lnlll the Matumy DJtc
6
nORROWER'S lUGUr IOPRENY
I have the fight 10 mdke P£\i'l11U\t~ .of PnilclpaJ at lilly WIlC bcfon" Ih.y dfC dlH;, A ptlymtnt of p, IllUpd! only IS L"(hl',l \1> ,I
"Prepayment" When lmake a Prcpaymelll, I will tclilhe Note Holdrr Ul willing ilia! T<1m dOing <() 1 mdY flOl (1r~lgn,I'e ,\["'Yh elll
<I, ,I PJCptlymenllfl hdVG nOl m,lde nil the mOlllhly !MYlilenls due IHldcl Ihe Note.
I IndY mJ\"e a full Prepayment or par:ral Prepayments WHholll pJYlIlg ,I Pltpdymelll chmgv I lie Note Untd, I IVill w,e lIl}
Prepayment.> to reducc [he amount of Pnnclpaltilat lowe undf'r tillS No{c Howc\rer, the Notl' 1ioldcI !JI,IY ,lpply my PIIIJ.!)'tn( ,II Ii)
the accrued JIld unpaid Interest on the Prepaymefll amollnt before appJymg my PrepJyment /0 wluce Ult P[1Hc!pJl Jl110llllt of Ihe
Note If 1 make a parLl,j1 PrepJ.yment, lhen! WIll be no dldnges m the due d~tes of my monthly payment unles, the NOle Hold(.-r
Jgrees m wntmg to tho~e changes My parllal Prepayment may reduce lhc amount of my monthly pLlymcnl$ nnc, the flfM Cllililge
Date foUowmg my pawal Prepayment However, ally reducLlon due to my pawal Prepayment [flJY be offset by an m!ereSl mle
UlcrcaSe
7

LOAN CHARGES

If a law, whlch applies to [hIS loan ami which selS maxImum loan charges, l~ fmally mlerprc!c(\ so that the mtcrc~t or other
loan charges collected or to be collected In conneCl1O!\ Wllh thiS loan exceed the penmttecl limns, thw (a) any ,1Ie.11 IOdn dl.\rge
"haH be reduced by the amount ncceSSJfY to reduce the charge to the pernliLlcd lImlt, and (b) any slims ,IJrc,ldy collected fTOm me
whIch exceeded penmtted illnJlS wtll be refunded to me The Note Holder may choo~e to In<lke [Jus refllnd by reducmg the
Prmclpall owe under UIlS Note or by makmg a direct paymcOi to me If a refund reduces Pnnclpal, the rc<lm,lJan Will be !rented liS
a parUal Prepayment
Ii
BORROWER'S FA!UJRE TO PAY AS REQUnmO
(A) Late Charges for Overdue Payments
If lhe Note .Holder has no1 reccIved UIC full amount of any monthly payment by the end of h f teen
c,llcndnr d,\ys after
the dale It IS due, 1 WII! pay ,I IJle charge 10 Ihe NOle Holder The amount ot (he c!J..uge Will he
4 000 %
of my overdue payment of pnnujl.ll and mteresl I wdl j)Jy till!> late (.ilarge promptly but only once on each IJle pnymrlll
(B)Defau!t .
If I do not pay the full amount of eden monthly paymcn! On ule ddte )[1, due, I WIl! be Hl dcfJ,lll
(C) NottLe of Default
If I am m default, lhe Notl. Hold(.r may ,COli me a wrmcn nOlice tellmg me tlial If r do not pay the oVLrduc 3!llOunl by a
certa1ll date, lhe Note Holder m.ly reqU1re me Lo pay Immedla(ely lhe full dmount of PnTIClp,\\ Which has not b{.en paul ,\1let ,\1\ lhe
mtcrest that lowe on thJt dmounL Thdl dJle must be at leasl30 d,lyS after the <lute OIl winch lhe neuce lS mmlcd to me nf dchverf'd
by o!.her means
(D) No Waiver By Note Holder
______ ~\'~~lJr!_~Lll~IIl1~.."_'!)en r .1m m def'lUlt, Ule Nott< Holdcrdoesnot reqUire me [0 pay ImmedlaLely In full il~ dcscnhed above,
the Note Heider Wi II sull have ihe-rlghl!O-aosoiTTami il dCfatihat rifiiiciTilne--------.... - ------------------. .-. -- . . . . . . . . . . -- . -

(E) Payment of Note Holder's Cost~ and Expenses
If lhe Note Holder has rcqUlred me to P,IY Immedtately m full ,IS descnbed above, (he Note Holder wIll have the nglH to be
patd baek by me for all of lIS cmlS and expenses III enforcmg IhlS Note to tbe extent not prohlbltcd bi' .1pphC,lbk law 1ho~c
expenses mclude, for example, reasonable auorneys' fees
9

GIVING OF NOTICES

mU~l be gIven to me nn(ler tillS Norc WIll be gIven hy
dellvermg It or by mrulmg it by fIrst class mml to me at the Properly Address above or at a dIfferent address If I give the Note
Holder a noLIce of my different address
Any nOUce thaI mu~t be given to the Note Ho!der tinder !hlS Note wlll be given by dellvermg 11 or by mmJmg It by first Cl,l~S
mall to tlle Nole Holder Jt the Jddress sUlted 111 SectJon 3(A) above or at a different addrc~s If I am given a notIce of thdt different
address

Unless apphcdble law requIres a different method, Jny nollce tlldl

OllLIGA 1 IONS OF PERSONS UNDER THIS NO fE
If more than one person sIgns llus Note, edch person l~ fully and personally obligatcd to keep JIl of the pronuscs m,ilje In 1!\lS
Note, mcludmg !.he promise to pay !.he full amount owed Any person who IS a guarantor, surelY Of endorser ot t!llS Note l~ also
obligated to do these thmgs Any persoll who wkes over these obligatIOns, mcludmg the obligations of a gu,lranlor, SlIfely or
endorser of tlw, Note, 11> also obllgated to keep all of the promlscs made 10 L1ns Note The Note Holder may enforce lIs nghts under
thiS Note agamst each person indlvldually or agUinsl all of us together ThIs me,ms that anyone of us m,IY be rcqmred 10 PJy all of
10

the amounts owed under thiS Note

DOC ff

533133

~-857N
®

APP4 # 7000466121

LOAN I 6612432471

Form 3547 S/J-.. \
(0108)

Pago 3015

IO,lIals

~...

f.J

(Page 5

of

230)

11 . WAIVERS

I drld any other person who hdS ohligatJons onder tillS Note waive lhe Jlgh(~ uf PrCSlAlllnwt ,wd NotlU.. 01 DI~honor
"Plesentlllcnt" means the nght to rcqlllrc the Note Holder to demand payment of dmounts dlle "Nflll('C of Dishonor" mc,UlS Ill..:
right to reqUlre [he Note Holder to glvCnO[lCC to Olher persons Ih31 dmount '> due [lHve nm l)ccn p,m!
UNIFORM SECURED NO rE

12

Note JS n umlorm mstIllment wah II/mleo VdflaUons \1\ some Jnnsdld\\)n~ Tn atltiHloll (0 the plotu non~ given to the t rOlr
Holder under UlI& Note, J Mortgage, Deed of Tnt,l, or Secunty Dw! (tlic "SCC\!llty Instrument"), rImed IILe S,ln1C rl,jj(~ ,lS Ilu, r~()IC,
protects the Note Holder from 1)0351])le losses which might result If [ clo nOI keep the {1l1HTIloCS wIn( h ! m~k(" H1 \fll'. Noie 111 I
Sccunty Instrument des<..nbes how and under what conditions I may be reqUIred to mdh.c ImmcdldtL p,\ymcn! 10 fuJI of ,Ill olmOUllb
lowe under thiS Note Some of those wndluons arc dei>cnbed tlS follows
This

{A} UNTIL I EXERCISE MY CONVERSION OPTION UNDER HIE CONDITIONS ST>\TED IN SECTION 5
ABOVE, UNIFORM COVENANT 18 OF '( fiE SECURITY INSllWMENT IS DESCRIBED AS FOLLOWS

Transfcr of the Property or a Bencf!ll,11 Interest !II Borrower As used III tillS Secuon 18, "Interest In lhe
In the Properly, mcilldmg, but not limited 10, Ihos(, beneflcI.!i
Interests transferred 10 a bond for deed, contract for deed, mst.1Hmem sales contract or escrow agrecment, the mtent
of whIch IS the transfer of lHIe by Borrower at a fUlure dale to a purchaser
If all or any part of the Properly or any Intercqt In lhe Property IS sold or transferred (or If Borrower IS not a
natural person and a bencflClaillltcrest III Borrower IS sold or transferred) Wl\hollt Lender', pnor wnllen consent,
Lender may reqUIre Immediate payment In full 01 all sums secured hy [hi:' Secunty Instrument I [owever, II11S
opuon SIMI! not be exerCised by Lender If such exercise IS prohIbIted by Appllcdhle Law Lender al~o Slhlll not
cxerLlse tlus optIOn If (d) Borrower causes (0 be subrnl(ted 10 Lender mformalJon reqUlred by Lender [0 evaluate
the Imended transferee as If J new loan were bemg made to lhe transferee, and (b) Lender reasonably dLiemuncs
that Lender's security WIll not be unpaIred by the loan assumplion ,md lhnlthc mk of a brench of any covcnant or
agreemelll m tillS Secllflty Instrument IS accepwblc [0 Lender
To the extent permitted by Appllcable Law, Lender may charge a rc,\SOllab!e fee as a conclllioll 10 Lcnder's
consent to the loan assumptIon LendermdY .also.. reqlllfe t!JetralisferCi'l!pslgn,ll1 asslllnptlon agreement thal I)'
acceptable to Lemler <lnd th<lt obligates the transferee lO keep /ill the promls('s and ,lgrccments lnm\e!l1lheNo\c,IIld
III thIS Secunly Instrument BOlTowcr Will contmlle to be oblIgated under the Note.- and 11us Sccumy Instrument
unless Lender release:, Borrower m wntmg
If Lender exercises the opuon to reqmfC untnedlate payment m tun, Lender shall gIve Borrower nOlH..e at
accelerauon The nOllCc shaH proVIde a penod of nol less than 30 days from Ibc dnle the notice J~ g!ven If!
aecon\,)nce W1Ul ScctJon 15 wUhm which Bormwer must pay all ~ums secured by (jus Securny Tnstrument If
Borrower LuIs to pay these sums pnor to the expmmon of thl~ pef/oct, Lendcr mJy mvo!.e ,my remedies pcrmtltcd
_bYJl1!~Sel;!lEl!yrll~~Ir-n~nt WIthout further notIce or demand on BOlTower
Properly" means any Jegdl or beneflc!.!l mlerest

(ll) iF I EXERCISE MY C6N\TERSIOf~-(HjlTOl'rUNI}ERTHECONDlTHJNSSIA1'mllNSEen0N-S-kIlOVF,­
UNIFOUM COVENANT 18 OF lHE SFCURlTY INSIRUMENT DESCRlBIW IN SECTION J2(A) ABOYE
SHALL THEN CEASE TO BE IN EFFECT, AND UNIFORM COVENANT 18 OF 1 HE, SEUJlUl Y
INSTRUMENT SHALL INSTEAD BE DESCRlUED AS FOLLOWS

Transfer of the Property or a Belleftclalillterest III BOHower A~ used In tlus Section 18, "Intere~t 10 the
Properly" rnedrlS any legal or benefICIal mteresl H1 the Property, md\ldmg, but not lUnited 10, those hene-flucll
lnterests lran~ferred In a bond for deed, contract for dLed, m~tallmenl S,uLS contrac.t or escrow agrecmcnt, the Imenl
of which is [he transfer of ut1c by Borrower at a !u[ure date 10 a purchaser
If all or any part of the Property or any [nlerest In the ProperLY IS sold or !r,l!1sfcrred (or If Borrower IS not a
natural person dnd J benelkwl mteres! In Borrow<,r IS sold or transferred) wrtholl! Lcndcr'~ prior wnrten tOllsellt,
Lender m<lY reqUire Immedldte payment m full of all SUms secured by tillS SCCUfllY [m,tmmem However, IIllS
optIOn shall nOl be exerCised by Lender If such ex.erClse IS prohIbited by ApplIcable Law
If Lender exercises thIs optlOO, Lender shall give Borrower [lOUee of aeec!erallon TIle nouce shaH provltlc II
penod 01 nol less than 30 days from the date the noUce IS given m Jc(.ordJllCC With Section 15 wtthtn which
Borrower must pay all S\lms sec\lred by lim Security Instrumenl If Borrower fUlls to pay these sum., prior to the
expiration of lhlS penoel, Lender may Invoke any remedIes permlHed by thiS Security Inslmlllcnt wllhollt fmther
nOUce or demand all Borrower

DOC II 533134

APPL # 7000466121

LOAN # 661243217,

Form 3547 8101
G-S57N
®

(0106)

Page 4 01 5

InltJalS~

(Page 6

of

230)

WITNESS THE HAND(S) AND SEAL(S) OF 1 HE UNDERS!GNED

_ _~ ____ (Seal)
-Borrower

)~V\~, tb&:Jm:~4L__ (~~Jl)
n

~e

J

HadeI

Borro","r

_ _,, _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Se.ll)

(Sc-ll)

-Bono" or

Borrower

(Seal)

____________

~

____ (Scal)

Borrower

-Burrower

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ CSeaJ)

______,__________________ (Seal)

Borrower

Borrowe,

[SIgn ()nglllal Only!

poe ff 533135

~857N IOlOn}

APPL I

70D0466121

Page 5 af 5

Form 3547 8f(}1

EXHIBIT B
DECLARATION OF RICHARD MILLER
Securities and Exchange Commission v. Arthur Nadel et al.
U.S. District Court, Middle District of Florida
Case No. 8:09-cv-0087-T-26TBM

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009
Il/ot-kflO'11 No. 1800471
1800471
Workflow

2-1.

~

Page 1 of 24

III~IIIII~IIIIIII
III~IIIII~IIIIIII
10'
014816530024 TVDe: CRP

10'
TVDe: CRP
~~~ord~d:014816530024at 04:26:11 PM
~~~ord~d: 06/14/2004 at 04:26:11 PM
06/14/2004

Fee Amt: $83.00 Page 1 of 24
Fee Amt: $83.00 Page t of 24
Workflow# 1800471
Workflow# 1800471
g~~~o~e D~g~~~ï' R~16ter
g~~~o~eD~g~~~~'R~16ter

of Deeds
of Deeds

BK3678 PG318-341
BK3678 PG318-341

prepared by and retunf to: ~ N
bum, GoosmaM, BrazIl &Roee, PA
Post Office Box 7436

~~~JI3k¥:
~~~~JI3k¥-

Space
----r------:""-~--_f:Space Above This Line For Recording Data)
----r---=--~-__lSpace Above This Line For Recording D a t a ) I - - - - - - - -- - - - ata)I------- ---

DEED OF TRUST
NON

100159966124324715

o MI 100159966124324715
DEFINITIONS
Words used in multiple sections of th doc
reg
3,11, 13, 18,20 and 21. Certain rules reg'
e usa e
in Section 16.
(A) "Security Instrument" means this documen wht h is
together with all Riders to this document

u
ted

d other words are defined in Sections
in Sections
in this document are also provided

14, -2004
UNE 14 J ,2004

(;?
o
Borrower is the trustor under this Security Instrument.
Borrower is the trustor under this Security Instrent.

(C) "Lender" Branch Banking and Trust Company
(C)"Lender" is is Branch Banking and Trust Company

Lender is aCorporation
Lender is a Corporation
organizedand existing under thethe laws of NorthCarol ina
organized and existing under laws of North Carol ina
DOC #;523821523 821 APPL APPL #:7000466121
/I;
/I: 7000466121 LOAN /I: LOAN #:6612432471
6612432471
DOC

NORTH CAROLINA-Single Family-Fannie Mae/Freddie foIac UNIFORIIINSTRUMENT WITH MERS
Mae/Freddie "ac UNIFORIllINSTRUMENT WITH MERS
G-6AINC) (OlIO)
G-6AINC) (0110)

®
ø UMSO 0110
Pagelo115 UMSO 0110
Pagelo115

Form3034~1
Form 3034~1

a.c..... '< \J

Inl1lals: a. '( \J
'nlllsl,:
'nllls',:

VIAI' MORTGAGE FORIAS - [phone]
VMI' MORTGAGE FORMS [phone]

11111111111111111111111111111111111

11111111111111111111111111111111111

EXHIBITG
Book:3678,Page:318
Book:3678,Page:318

",-(;;- - ; '"

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 2 of 24

2.
Lender's address is 223 West Nash Street, Wilson, NC 27893
Lender's address is 223 West Nash Street, Wilson, NC 27893
(D) "Trustee" is is John C. Warren
(D) "Trustee" John C. Warren

(E) "MERS" isMortgage Electronic Registration Systems. Inc. MERS is aaseparatecorpraton th isisacting
(E) "MERS" is Mortgage Electronic Registion Systems. Inc. MES is
separ corporation that acting
solely as a anominee for Lender and Lender's successors and assigns. MERSis the beneficiary under this
solely as
nominee for Lender and Lender's successrs and asigns. MERS is the beneficiary under this
Security Instrument. MERS is organiz and existing under the laws of Delawar. and has an addrs and
Security Instrument. MERS is organized and existig under Ihe laws of Delaware, and has an address and
lephone number of P.O. Box 2026. Hint, MI 48501-2026, tel. (888) 679-MES.
lephone number of P.O. Box 2026, Hint, MI 48501-2026, tel. (888) 679-MERS.
ote" means the promissory note signed by Borrower and dated
as as the date hereof
(F) ote" meas the promissory note signed by Borrower and date of of the date hereof
(F)
Eight
The Nostates thatthat Borrower owes LenderSixtyTwo Hundred Sixty Eight Thousand and
and
The No e e states Borrwer owes Lender Two Hundred

Nol Dolls

Dollars

Nol

( .5. S S 8, 00.00 ) 00. 00
) plus interest Borrower has promised to pay this debt in regular Periodic
has promise to pay this debt in regular Periodic
( .S. 2 2 8
plus
ayments d to ay the debtin full not later thanthan July1, i 2034
ayments d to ay the debt in full not later July i
(G)" ope y"y" means the property that is described below underthe heading "Trasfer of Rights in the
(G) It ope meas the property that is describe below under the heading "Transfer of Rights in the
rty.h
rt."
It an" meas e debt evidenced by the Note. plus interest. any prepayment charges and late charges
an" means e debt evidenced by the Note, plus interest. any prepayment charges and late charges
due und e No an i sumsI due under Ù1isthis Security Instrument, plusinterest.
sums due under Securty Instrument. plus interest
due und e No
'ders lO this Security Instrument that are executed by Borrower. The following
(I) "R den" all 'ders to Ù1is Security Instrent that are execute by Borrower. The following
Riders 0 e e ute y Borrower (check box box applicable):
uted y Borrower [check as as applicable]:
I

(i Adjustable ate . er B!0n minium Rider
[i] Adjustable ate . er ~on minium Rider (X Secnd Home Rider
[X] Second Home Rider
D Balloon Rider
D Balloon Rider i: i UJr~~ment Rider 0 1-4 Family Rider
~ I UJIifDeve~~ment Rider 0 1-4 Family Rider

D VA A
ryY\Uder DOther(s) (speify)
D V RiderRider BiwBIW ry/PaY\Uder
DOther(s) [specify]

~~
~ca

(J) "Applicable Law" meas contr ~~ ~ca I feral. state and loca local statutes, regulations,
contro
I feral, state and statutes. regulations.
(J) "Applicable Law" means
ordinances and administrative rules rules d or(ers havhavee of law)law)well as all all applicablefinal,
t(t
of as as well as applicable final,
ordinances and administrative d or ers
non-appeble judicial opinions.
non-appeaIablejudicia opinions.
(K) "Community Association Dues, Dues, nd Assnd Ass . al dues. fees, fees, assessments and other
' all dues. assesments and other
(K) "Community Association Fees, Fee,
charges that are imposed on Borrower or e{: l7Qpert~ by a ndominium association. homeowners
chages that are imposed on Borrower or
t7Qpert~ by a
ndominium association,
assoiation or similar organiztion. "'
association or similar organization.
~
(L) "Electronic Funds Transfer" means any transfer f funds 0 0r r th saction originate by check.
than
saction originated by check,
(L) "Electronic Funds Transfer" meas any trsfer f funds
I phonic instrument,
draft, or similar paper instrument, which is initiated thi gh gh elec~' in I phonic instrment,
drt, or simila paper instrment, which is initite th
eiec~' ..tete in
computer, or magnetic tape soso as order, instruct, or autJi autJ fm fmcici in 'tu n to
a a
computer. or magnetic tape as to to order. insirct, or
in 'IU n to
account. Such term includes. is
is not liite to.
account. Such term includes, but butnot limited to, point-opoint-o sae . a
sale
, aiitrttmnlted
transactions,transfersinitiated byby telephone, transfers, and au
t
eari ghouse
trsations. transfers initiated telephone, wire wire trsfers, and au t ea ghouse
(M) "Escrow Items" meas those items that are describe in Section
(M) It Esrow Items" means those items that are described in Section
(N) ItMiscellaneousProceeds" means any compensation,settement. awar of d
"Miscellaneous Procees" meas any competion. settlement, awar of d
any third party(other than .insuranceproceeds paid under the coverages
any third par (other than .insurance procee paid under the coverages
any
damageto, or destrction of, the Property; (ii) condemnation or other taking of of any
daage lO, or destruction of. the Propert; (ii) condemnation or other taing
(iii) conveyance in lieu of condemnation; or (ív) misrepresetations of, or omissio
(iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissio
condition of the Property.
(0) "Mortgage Insurance" meas insurance protetig Lender agaist the nonpayment 0
(0) "Mortgage Insurance" means insurance protecting Lender against the nonpayment 0
Loan.
(P) "Periodic Payment" meas the regulaly scheduled amount due for (i) pn'ncipal and inteli t tund the
means the regularly scheduled amount due for (i) pn'ncipal and inteli und the
(P)
Note, plus (ii) any amounts under Section 3 of this Security Instrument.
(ii) any amounts under Section 3 of this Securty Instrment.
(Q) "RESPA" meas the Rea Estate Settement Procures Act (12 U.S.C. Section 2601 et seq.) and its
(Q) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et se.) and its
implementingregulation. Regulation XX(24 C.F.R. Part 3500). as they might be amended from time to time,
implementig regulation, Regulation
(24 C.ER. Pa 35(0), as they might be amended from tie to tie.
or any additional or successor legislation or regulation that governs thethe saesubject matter. As usedin this
or any additional or successor legislaon or regulation that governs same subject mattr. As us in this
Security Instrument, "RESPA" refers lo all requirements and retrctionsthat are impose in regard
Securty Instrment, "RESPA" refers to all requirements and restrictions that ar imposed in regard
DOC /I; 523822
DOC #.523822
.-6A(Ne) (0110)
.-6A(NC) (01101

~
®

APPL H ,7000466121
APPL #,7000466121
Page 20115

':.
~

LÇlAN /1:6612432471
L\lAN #:6612432471

Inllial.:~_
_ _ --t::~W
Iniiial.:~ W

Form 3034 1/01
3034 1/01

Book:3678,Page:311

\t:~9Ç' ~ .'JI l:i.J

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 3 of 24

~
to "federally related mortgage loan" even the Loan does not qualify as "federally related mortage loan"
to aa "federaly relate mortage loan" even if if theLoan does not qualfy as aa"federaly related mortgage loan"

under RESPA.
under RESPA.
(R) "Successor in Interest Borrower" meas any par that has taen title to to the Property. whether or not
(R) "Succesr in Interest of of Borrower" means any party that has taken title the Prperty, whether or not
that party has assumed Borrower's obligations under the Note and/or this Security Instrument.
that party has assumed Borrower's obligations under the Note and/or this Securty Instrment.
TRANSFER OF RIGHTS IN THE PROPERTY
TRANSFER OF RIGHTS IN TH PROPERTY
neficiary this Security Instrument is MERS (solely as nominee for Lender and Lender's successors
neficia ofof this Security Instrment is MERS (solelyas nominee for Lender and Lender's successors
'gns) and the succssors and assigns MERS. This Securty Instrent seur to
'gns) and the successors and assigns ofof MERS. This Security Instrument secures to
Len . the repayment of the Loan. and al renewals, extensions and modifications of the Note; and
Len ,(i) {i} the repayment of the Loan, and all renewals. extensionsand modifcations of the Note; and
(u the pe 0
ce of Borrower's covenants and agreements under this Security Instrument and the
(ü the pc 0 ce of Borrower's covenants and ageements under this Security Instrment and me
ote. For is
se, Borrower irrevocably grants and conveys to Trustee Truste's successors and
ote. For is se, Borrower ÚTevocbly grts and conveys to Truste andand Trustee's successors and

y of Buncombe

trust, with power of sale, the following
signs, in trst, with power of sale, the followingdescribed propert located in the
desbe property locte in the

of Buncombe

(N~me of Recording Jurisdic1ion)
(Name of Recording Junsdiciionl

urr~ the address of
ParcellDNullbe: 9696.03-11-8867.000 w'ch ureP _______ address of
the
~
[Street)

ParcellO Number: 9696.03-11-8867.000
131 Garren Creek Road
Fairview
("Property Address"):
("Property Addrs"):

13 i Garren Creek Road (Zip Codel
Fairview oli l87 0 ~__~ IStreel1
oli

~87 0

[Zip Code)

TO HAVEAND TO HOLD this propertyunto Trustee and Trustee's ere er as as 'gn forever,
forever,
TO HAVE AND TO HOLD this property unto Trustee and Truste's
'gn
together with all the the improvements now or hereter on the p on~anp ~an i m IS.
improvements now or hereafter erected erecte
1
m lS,
together with al
the
appurtenances, and fixtures now or or hereatepart of O.f property. AU replacemen and@ltlitions all so
appurtenaces, and fixtues now hereafter a a par the the propey. AU replacemen and~tions all so
be covered by by this Security Instrment All of the foregoing is referred S in 'Ins 'Ins ent the
be covered this Security Instrument All of the foregoing is referred to in this to this S ent the
"Property." Borrower understands andand agee thMERS holds only legal titI titI to e 'teests
"Prpey." Borrwer understads agrees that MES holds only legal to e' terests
granted by Borrower in this Security Instrument, but, if necessary to comply with law or c
grante by Lender and Lender's successors and assigns) has the
or c S
nominee for Borrower in this Securty Instrent, but, has the right: to exercise any lawall of S
for Lender and Lender's succesors and assigns) if necess to comply with or al of
nominee
right: to exercis any or
interests, including, but not limited to, the right to to foreclose and sell the Propey; andtaketae y
inteests. including, but not limited to, the right foreclose and sell the Property; and to to
y
required of Lender including, but not limited to, releasing and canceling this Security Instrument
requied of Lender including, but not limite to, releaing and caceling this Securty Instrment
BORROWER COVENANTSth Borrower isis lawfully seise of the estate herey conveyed and has
BORROWE COVEANS that Borrower lawfully seised of the estate hereby conveyed and has
the right to grant and convey the Property and that the Property is unencumbered,except for encumbrances of
the right to grant and convey the Propert and that the Prpert is unencumbered, except for encumbraces of
record. Borrower warrants and will defend generally the title to to the Prpertagainst all claimsand demands,
record. Borrwer warants and wil defend genery the title the Property agaist al clais and demands,
subject to any encumbrances of record,
subject to any encumbrances of record,
DOC #:523623
DOC II: 523623

G-6A(Ne) (0110)
.-6A(NC) (0110)
®

~

APPL #.7000466121
APPL # ,7000466121
Page 33 01 15
Page 01 15

~~LOAN #,6612432471
:,,:LOAN #:6612432471
inìtiali:~

....;~_:L..:....-l~'-'~~
Initial" ....;~'--'-:L-'-'~~~

Form 3034 1/01
Form 3034 1/01

Book:3678,Page:31
Book:3678,Page:31

j ,,-

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 4 of 24
L1

THIS SECURITY INSTRUMENT combines unifonn covenants
THIS SECURITY INSTRUMNT combines uniConn covenants for national use and non-uniConn
nationaJ use and non-unifonn
covenants with limite variations by jurisdiction to constitute uniform securty instrment coverig real
covenants with limited vartions by junsdiction to constituteaa uniform security instrument covering rea
propeny.
UNIFORM COVENANS. Borrower and Lender covenat
agre as follows:
UNIFORM COVENANTS. Borrower and Lender covenant and agreeas follows:
l.Payinent of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges.
1. Payment of Prcipal, Interest, Escrow Items, Prepayment Charges, and Late Charges.
Borrower shall pay when due the principal of, and intet on, the debt evidenced by the Note and any
Borrower shall pay when due the principaJ of, and intereston, the debt evidence by the Note and any
prepaymentcharges and late charges due under thethe Note. Borrwer sha al pay funds for Escow Items
prepayment charges and late eharges due under Note. Borrower shall also pay funds
Escrow Items
pursuant to Section 3. Payments due under the Note and Ihis Security Instrument shall be made in U.S.
pursuant to Section 3. Payments due under the Note and ihis Securty Instrent shall be made in U.S.
ency.However, if anyif anyor other instrment reived
However, eheck check or other instrUment received by Lender as payment under Ihe Note or this
Lender
Ihis
eney.
the
ec 'ty Instrment isretumed toto Lenderunpaid, Leder may requi that any or ali subseuent payments
ec 'ty Instrument is returned Lender unpaid, Lender may require that any or all subsequent payments
due un the Note and this Security Instrument mae in in one more of me following forms, as selected
due un the Note and this Secty Instrment bebe made one oror more of thefollowing fooos, as selecte
by r: (a) r: (a) cash;money order; (c) (c) certified check, bank check, treasurer's check or cashier's check,
cash; (b) (b) money order; certed check. ban check. treaurer's check or cashier's check,
by
pr idcd y uch check is drwn upon an institutionupon deposits
pr idcd y uch check is drawn whose an institution whose deposits are insured by a federal agency,
are insured by a federal agency.
stromen ity,o entity; or (d) Electronic Funds Transfer.
Pa l~~ are deemed received Lender when received at Ihe location designated in the Note or at
Pa en are deeed received byby Lenderwhen recived at the loction designate in the Note or at
C. ch erAaton as may or (d) Electronic by Lender in accordance wilh the notice provisions in Section 15.
eh er)o9ation as may designate by Funds Transfer.
strmen ity.o entity; be be designated Lender in accrdace with the notice provisions in Section is.
LenCler Jy1!y ry tu
LenCler iyy r tu
payment y payment or the payment
or par paymem if partial paymeOl if Ihe payment or partial payments aremsufficient to bring
par payments are insufficient to
9tI1icent. If If orrower has breached any covenant or agreementin mis Security Instrument and Lender
9t cent. orrower has breached any covenant or agreement in this Security Instrment and Lender
has ac le th blig' blig' ons of Borrower hereunder pursuant to Section22 the Lender may accet any
led th ons of Borrower hereunder pursuat to Secuon 22 the Lender may accept any
ha ac
payme or
p ymen insufficient to bring wan curent, without waiver of any rights hereunder
payme or pp. p .ymen insufficiem to bring thethe wan current, without waiver of any rights hereunder or
prejudice irig,h use use payment or or partial payments in futue, but Lender is not obligat to
prejudice irig, tor tor such such paymentparal payments in thethe future, but Lenderis not Obligated to
apply such pa rnents atat . .h payments are acpte. If eahIf each Periodic Payment is applied as of its
h payments are accepted. Periodic Payment is applied as of its
apply such pa rnnts
scheduled due
nder
ot pay interest on unapplied funds. Lender may hold such unapplied
scheduled due n nder ot pay inteest on unapplied funds. Lender may hold such unpplied
funds unti Borr es es
ent 0 ent .0 e Lo curnt. If Borrower doe does not do so within a
b
funds until Borro
b.
e Loan current. If Borrower not do sowithio a
reaonable period of
. Le de shall
uch funds or retu them to Borrower. If not applied
reasonable period of ti ti ,Le de shaJl i i r Iy Iy nch funds or return them to Borrower. If notapplied
earlier, such funds will wilap' to outs g' cipal balce baJance the Note Note immediately prior to
g . cipal under under the immediately prior to
ealier. such funds
ap' to
forelosure. offset or c1'
foreclosure. NoNo offset or cl' hi 0 ower r)w or in the in the future against Lender shall relieve
hi
or futue agaist Leder shal relieve
Borrwer from makg payments under il te d is Securty Insttument oror performing the
Borrower from making payments
te
d is Security Instrument performig Ihe
covenants and and agreements bseured b thís S t.
this S
t.
covenants agreements secured
2. Application of Payments or
c
as
~bed in this 2, all all payments
2. Appliction of Payments or c ptptas ~be in this SectionSection 2,payments
accepted andapplied by Lender shall beshal be a the f f o·~f~f priority:intert duedue under the
acepte and applied by Lender a
the o' priority: (a) (a) interest under the
Note; (b) principal due under Ihe Note; (c) (c) unts d e und Sec' n 3. 3. Such payments sha be applied to
Note; (b) principal due under the Note;
unts d e und Sec' n Such payments shall be applied to
each Periodic Payment in the order in which it it duèdue J\ny re ing ing amounts shall be applied first to
. amounts shal be applied first to
each Periodic Payment in the order in which
J\ny re .
late charges, second 10 any other other amounts due under urity ss l and tothen thenreduce the principal
and to to reduce the principal
late charges, second to any amounts due under
wity
balance of Ihe Note.
balce of the Note.
If Lender receives a payment from Borrower for
en ic Pay~which includes a
If Lender recives a payment from Borrower for e en ic Pay~which includes a
sufficient amount to paypay any charge due, thedue. the may appli
Ihe . ~ayment and the
suffcient amount to any late late charge payment payment may appli the . ~ayment and the
late charge. more than one one Periodic Payment is outstading,
received from
late charge. If If more than Periodic Payment is outstanding, Le er m Le erym y p entent receivedfrom
Borrower to the repayment of Ihe Periodic Payments if, and to to the nt at,
nt
h pa ent can be paid in
Borrower to the repayment of ihe Periodc Payments if, and the
full. To the extent that any excess exists after Ihethe payment is applied to full p
full p
one or more
full. To the extent that any exces exists after payment is applied to
Periodic Payments, such excess may be applied to any late charges due. Volun
shan be
Periodic Payments, such exces may be aplied to any late charges due.
applied first to any prepáyment charges and then as described in the Note.
applied first to any prepayment charges and ihen as describe in the Note.
Any application payments, insurance proceeds, or Miscellaneous Proceeds ~ ~ prÎal due
Any application ofof payments, insurce procees, or Millaeous Procees prit}ct\lal due
Note shall not extend or postpone the due date, or change the amount, of of the Perodc IvihnlS.
shal not
postpone the due date, or change ihe amount, the Periodic IvDre'nts.
3. Funds for EscrowItems. Borrwer shall pay to Lender on Ihe day Periodic PayPay ents e d under
3. Funds for Esrow Items. Borrower shall pay to Lender on the day Periodic ents e d under
Ihe Note, until the Note is is paid full,full, a(the "Funds") to provide for payment of amo aro eefor:
for:
ihe Note. until the Note paid in in a sum sum (the "Fuds") to provide for payment oC
taxes and assesments and other items which can attain priority over this Securty Instrent a lie or
a lie or
taes and assessments and other items which can at priority over this Security Instrument
encumbrance on ihe Property; (b) leaseholdpayments or ground rents on the Propeny, ifif any; (cJre iums
encumbrace on Ihe Property; (b) leahold payments ground rents on the Propeny. any; (cJ re iums
for any and all insurace required by Lender under Section and (d) Mortgage Insurance premiums,' any,
.tor any and all insurance required by Lender under Section 5;5; and (d) Mortgage Insurce premiums,' any,
or any sums payable by Borrower to Lender in lieu of the payment of Mortage Insurance premiums in
any sums payable by Borrower Lender in lieu
payment
Mortgage Insurance premiums in
accordancewith the provisions of Section 10. These items are called "Escrow Items." At origiaton or at any
accordace with the provisions of Section 10. Thes ites are caled "Esrow Ites." At origination or at any
time duringthe tem ofof theLoan, Lender may requir that Community Assoiation Dues. Fees, and
time durg the term
ihe wan, Lender may require that Community Association Dues, Fee, and
Assessments, if any. be escrowed by Borrower. and such dues, fees and assessments shall be an Escrow Item.
Borrower, and such dues, fee and assements shall be an Esow
Assesments. if any, be esrowed

·
C

OW

DOC
DOC

#:523624
# : 523824

G-6A(NC) (OlIO)
G-GA(NC) (0110)
®
(!

APPL # :7000466121
APPL #:7000466121
Page40115

~ .~LOAN #:6612432471
~ .~LOAN #:6612432471

'Inl1lal.: ~
nn'a'.: ---=..:.-!......~
Ot... Oi

Form 3034 1/01
Form 3034 1/01

Book:3678.Page:31

" 0";1' V,....'" ..
".i;l:d:l U'" . . , """I"

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 5 of 24

ç

Borrower shall promptly furnish Lender al notices of amounts to be paid under this Section. Borrower
Borrower shal promptly furish toto Lender all notices of amountsto be pad under this Section. Borrower
shall pay Lender the Funds
Escrow Ites unless Lender waives Borrower's obligation pay me Funds
shal pay Lender the Funds for Escrow Itemsunles Lender waives Borrwer's obligaton toto pay the Funds
for any or all Esrow Items. Lender may waive Borrower'sobligation to pay to Leder Funds for any or al
any or all Escrow Items. Lender may waive Borrwer's obligation pay Lender Funds for any or all
for
Escrow Items at any tie. Any such waiver may only be in writing. In the event of such waver, Borrwer
Escrow Items at any time. Any such waiver may only be in wrtig. In the event of such waiver, Borrower
shall pay directly, when and where payable, the amounts due for any Escrow Ites for which payment of
shall pay directly, when and where payable. the amounts due for any Escrow Itemsfor which payment of
Funds has ben waived
Funds has beenwaived by Lender and. if Lenderrequires, shall furnishto Lender recipts evidecing such
Leder and. if Lender requires, sha fuish to Lender receipts evidencing such
payment within such time
payment wimin such time period as Lender may require. Borrwer's obligation toto make such paymentsand
may reuire. Borrower's obligation make such payments and
to provide receipts shall for all purses be deemed to be a covenant and agreent contained in this Security
to provide receipts shall for all purposesbe deemed to be a covenant and agreementconianed in this Securty
ns mem, as Ihe phrase "covenant and agreement" is used in Section 9. If Borrwer is obligated to pay
ns ment. as me phrase "covenant and agreement"is used in Section 9. If Borroweris obligated to pay
Escrow terns directly, pursuant to waiver, and Borrower fai to pay me amount due for an Esrow Ite,
directly.
Esrow terns directly, pursuat to aawaiver, and Borrower fails to pay the amount due for an Escrow Item,
Len ay exercise its rights under Section 9 and pay such amount and Borrower shal then be obligate
ay exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated
Len
u Secti
u erer Secti nnto to repay to Lender any suchamount. Leder may revoke me the waiver as to any orall Escrow
repay to Lender any such amount Lender may revoke waiver as to any or all Escrow
fiS at
ms at time time notice given in accordace with Section 15IS and,upon such revoction, Borrower shall
y a y a notice given in accordance wilh Section and, upon such revocation, Borrower shan
pay 10 nd
I Funds, and in amounts, that are then required under this Section 3.
pay to nde i Funds, and in suchsuch amounts,lhat are then required under thisSection 3.
nd
, at any time, collect hold Funds in in an amount sufficient to permit Lender to apply
nd , at any tie. collect and and hold Fundsan amount (a) (a) sufficient topermit Lender to apply
specified RESPA. and and (b) to exce me maximum amount a a lender can
e Fu at e speified under under RESPA, (b) not not to exceed the maximum amount lender can
nder shall estimate the amount of Funds due the bais of curent data and
require un er RE nder sha estimate the amount of Funds due on on the basis of currentdata and
reason e estim es ex nditures of future Escrow Items or otherwise accordace with Applicable Law.
rean e estim es f exf nditues of future Escrow Items or otheris inin accordance withApplicable Law.
s
be h d institution whose deposits are insured by a feder agency, instrumentality,
TI un un I be h Id in an in an institution whose deposits areinsured by a federal agency. instrmentaity,
s
ng
~.
or entity (inc u 'ng Lenr r'
an
or entity (inc u 'ng Len r' ~. an~' institution whose deposits are so insured)or inin any FederHome
institution whose deposits are so insured) or any Federal Home
Loan Ban. Le er s hl apPl~
ds Ùle the Escrow Items no later than the tie specified under
LoanBank. Le er s ai apply ds to payto payEscrow Items no later than the time speifed under
RESPA. Lender
ot ch Borr wer
Iding and applying the Funds, annually analyzing the
RESPA.Lender sllsll ot ch gege Borrwer Iding and applying the Funds, annualy analyzing IDe
escrow account, or0' ver ;ogEscro 01 Le"" pays aono., ;0",1 on on the Funds and
veri ing th
nl
Lender pays Borrower interest !h Fuods an
escrw -"0'.
~~o
to m~
Applicable Law pennits ererto rnak chch age. nlessageement is mae in writig oror Applicable
Applicable Lawpennits
a ge. nles an an agreement is made in writing Applicable
r t be be required to Borrower any interest or
Law requires interest to be paiOmr1lie unds. i: shalshall required to pay pay Borrower any interestor
requires interest to be paìOöe unds,
in °tin, however, that interest shall be paid on the
'tin.
earnings on the Funds. Borrower Lender
eaings on IDeFundso Borrower an an Lender in 'tin, however, that interest shal be paid on IDe
Funds.
Funds. Lender shall give to Borrow wi wi out cft ge. ann ~ounting the Ihe Funds as required by
out cft ge,
Funds. Lender shall give to Borrow
ann ~ountig of of Funds as required by
RESPA.
RESPA,
If there is aasurplus of Funds held in escrow as asee in er RESPA, Leder shal account to
in
er RESPA, Lender shall account to
If there is surlus of Funds held in esow
Borrower for the excess funds in in accordace wiRE PA. there' a ashortge of Funds held in escrow, as
there
there' shortage of Funds held in esow. as
Borrower for the exces funds accordance wi
RE PA.
defined under RESPA, Lender shall notify Borrow Borrw requi b PA, and Borrwer sha pay to
requir b
PA, and BorrOwer shall pay to
Borrower
defined under RESPA, Lender shal notify
Lender the amount necessary to make upup the shorteacco ce with PA. but but in no more than 12
the shortage
PA, in no more than 12
Lender the amount neces to make
ac
monthly payments. If there is a deficiency of Funds heldheld i ed d(r,PA, Leder shall
ed d(rR:Es,PA, Lender shall
Funds 1
monthly payments. If ther is a deficiency of
notify Borrower as required by RESPA, RESPA, and Borrower sha pay iÌsa to make up
~sary to make up
notify Borrower as requir by and Borrower shall pay
the deficiency inin accordace with RESPA, but in no more 12 12 nIDI ym ts.
the deficiency accordance with RESPA, but in no more than than nthl
Upon payment in full of all sums sums seur this Security Instrll'""",,,y der s
Upon payment in full of all secured by by this Securty Instn
Borrowerany Funds held by Lender.
Borrwer any Funds held by Lender.
4. Charges; Liens. Borrower shall pay all taes. assessments, c c g
4. Charges; Liens. Borrower shal pay al taxes, assessments.
g
,Jeaspb"o d pay en or
attributable to Ihe Property which can attain priority over over Security rnstrumInsti . leao ö payen o~
attbutale to the Propert which can atian priority this IDis Securty
ground rents onon the Propey, any, any.Community Association Dues, Fees,Fee. and ssrhefits, if y. T the
the Property, if if and and Community Asiation Dues, and
y. T the
ground rents
ssihts. if
Sec . n 3
extentthat IDes items are EscrowEscrowBorrower shall pay them in the manner providthe manner provid
that these items are Items. Items, Borrower shall pay them in .
extent
unle
Borrower shall promptly disharge any lien which has priority over this this Security m tt unle
Borrower sha promptly discharge any lien which has priority over Security
m
Borrower: (a) agrees inin writing to the payment the the obligaton seured the the lienain a maner ceptab 10
Borrower: (a) agrees writing to Ihe payment of of obligation secured by by lien in manner ceptab to
Lender, but only so long asas Borrower is performg such agreement; (b) contests the lien inin goo . 'th y, or
perfonning
··th
Lender. but only so long Borrower is performing such ageeent; (b) contets the lien good . 'th y.or
defends against enforcement ofof the lien in, legal progs which in Lender's opinon operate to prevent the
the lien in, legal proceedings which in Lender's opinion operate 10 prevent the
to
defends against enforcement
enforcement of the lien while those proceedingsare pending. but only until such proceedings are concluded;
enforcment of Ihe lien while those proceengs are pending, but only until such proceeings are concluded;
0

0

0

DOC 11:523825
DOC 11;523825

APPL 1I:700046612l
APPL#:700046612l
,,: 7000466121

o

¡"¡\laiia."? o
'k

1"I\lalla...-

.6A(NC) (OlIO)

a6A(NC) (01101
®
l!

Page 550116
Page 0116

LOAN" :6612432471
LOAN" :6612432471
Form 3034 1/01
Form 3D34 1101

Book:3678,Page:31
Book:3678.Page:31

.,

\r:-C1~" U.lUi -''''f'J
.
,
\r:C1~'" U.l1 -''')

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 6 of 24
G

or (c) secures from the holder of the lien an agreement satifactory to Leder subordinating the lien 10 this
or (c) seures from the holder of the lien an agreement satisfactory to Lender subordintig the lien to this
Security Instrument. Lender determines that any par of the Property is subject to a lien which ca attain
Securty Instrent. If If Lender determines that any part of thePropert is subjet to a lien which canattan
priority over this seurty Instrument, Lender may give Borrower a notice identifying the lien. Within 10
priority over this SecuritY Instrent, Lender may give Borrower a notice identiying the lien. Within io
days of the date on which th noti is given. Borrower shall satisfy lien or tae one or more of the
days of the date on which that noticeis given. Borrower sh say thethe lien or take one or more of the
actions set forth above this Section 4.
actions set fort above inin this Section4.
Lender may require Borrower pay a one-time chage for a rea esta ta veriicaon and/or reportg
Lender may requi Borrower toto pay aone-time charge for a real estate laX verification and/or reporting
service use by Lender in connection with this Loan
service used by Lender in connection with this Loan.
5. Property Insurance. Borrower shall keep the improvements now existig or hereafter erected on the
5. Property Insurance. Borrower shal keep the imprvements now existingor hereater erecte on the
o rty y insuredagainst loss by rue. hazards included with the term "extended coverage." and any other
insured against loss by rue, hazds included within the term "extended coverage." and any other
azard including, but not limited to, earthquakes and floods, for which Lender requires insurance. This
aid including, but not liited to, eaquakes and floods. for which Lender requires insurce. This
inSUT
insur shallshallmaintaed in the amounts (including deductible levels) and for the periods that Lender
be be maintained in the amounts (including deductible levels) and for the periods that Lender
ires. Wander requires pursuant to the preceding sentences can change durg the te of the Loan.
ires. W a ndec requires pursuant tothe precing sentences can change during the tenn of the Loan.
e insu
e insu cece c ier providing the insurancesha be be chosen by Borrower subject to Lender's right to
c ier providing the insurance shall chosen by Borrower subject to Lender's right 10
disappro e B rrwer's choice. which right shall not be exercise uneaonably. Leder may require
B rrowec's choice, which right shall not be exercised unreasonably. Lender may require
disappro e
er
rr er ~ in ~ in connection with this Loan, either: (a)one-tie charge for floo zone determination,
connection with this Lo. either (a) a a one-time charge for flood zone determination,
certifica' n od i?g seices; or (b) a(b) a one-time charge for flood zone determination and certification
nd ii'aoking services; or one-tie charge for floo zone determination and certfication
certfica' n
seTVlces
subseq
charges time remapings or simila changes occur which reasonably might
services subse charges each each time remappings or similar changes ocur which reanably might
affect
deter m tion cecation. Borrwer shall also be resnsible for the payment of any fees
affect Ch deter m tion r r certification. Borrower shall also be responsible for the payment of any fee
irnpo
til E eral E Management Agency in connection with the review of any flood zone
impo ti F era F ergency ergency Management Agency in connection with the review of any flood zone
determinatio riling f: f: . tion byby Borrower.
. lion Borrwer.
deterinatio r iung
m;a'
If Borrw fail
m~'
n .
of coveres describe above, Lender may obta insurance
If Borrow fail m;a' n . of the the coverages described above, Lender may obtain insurce
coverage, at Len
coverage. at Len'ption Bo Bo owe' LenderLender is under obligation to purhas any
. plion
owe' nse. nse. is under no no obJigation to purchase any
particular type amou
fO~UC coverage shall cover Lender, but might might not
parcula ty oror amOD ofof ge. fO~UC coverage shall cover Lender. but might or or mightnot
v v ge.
protect Borrower, Borrow's equity' Pro
, contents of of Propert. agaist any risk, hazard
protet Borrower, Borrw 'sequity' eePr ,0 the 0 the contentsthethe Property, against anyrisk, hazd
or liabilty might proVl
vera
than was previously effect Borrower
or liability and and might provi or or e vera than was previously in in effect. Borrwer
I I e
acknowledges that thethe costthe the surce e s b' ed mightmight significantly exceed the cost of
cost of of surance
b . ed signifcantly excee the cost of
'
acknowledges that
insurance that Borrower could could have . An An amou by Lender under this this Section 5 shall
by Lender under Section 5 shall
insurance that Borrower have lain la .
become additional of Borrower seeu
en amounts shal be inteest at
beomeadditional debtdebt of Borrower secu Securt eo ThesThese amounts shaD bear interestat
the Note rate fromfrom the date of disburmem shal p ch interet. upon upon notice from Lender
ch interest, notice from Lender
the Note rate the date of disbursement
to Borrower requesting payment.
to Borrower reuesting payment.
All insurance policies required by Lender an
All insurance policies required by Leder an
right to disapprove such policies, shall include a s a s d 0 0age clau andand shall name Lender as
d
age clau
right to dispprove such policie, sha include
shall name Lender as
mortgagee andlor as an additional loss loss payee. Lender Il3 eli e ri t ri h ld Id ~íekies and renewal
payee,
mortgagee and/or as an additional payee. Lender sh
sh the the
t h ~\ePoltcies and renewal
certificates. If Lender requires, Borrower shall sha promptly give to Lend r rec',~ premiums and
certiicate, If Lender requires. Borrwer promptly give to Lend r rec',~ premiums and
renewal notices. If If Borrower obtasany fonn of insurance cover e.e, n the. se req . . ed by Lender, for
the. se req ed by Lender, for
renewal notices,
notices. Borrower obtains any fonn of insurance cover n
damage to, or destruction of, the Properly. such policy shal1 shal include d d mo age clauseand shall
include
damge to. or destrcûon of, the Properly. such policy
mo age clause and shall
name Lender as mortgagee and/or as an additional loss payee. additional loss ~
name Lender as mortagee and/or as an
payee. ~
In the event of loss,loss. Borrower sha give prompt notice to the'e
insurance
n n
der may
In the event of Borrower shall give prompt notice to the insurance'e
insurce'e e e der may
make proof of loss if not made made promptly by Borrower. Unless Lender and wer ise gr in
wer
make proof of loss if not promptly by Borrower. Unless Lender and
ise gr
writing, any insurance procees,whether oror not the underlying insurace was requ~ ~Lend ,sh be
,sh
wrung. any insurce proceeds, whether not the underlying insurance was
applied to restoration or or repai of the Prpert, if the restorationrepair is econo 'cally easi and
repair of the Property, if the restoration or or repai is econo 'caly eai and
applied to restoration
Lender's security isis not lessened. Durng such repairestoration period, Lender sh Lender sh right
right
Lender's seurty not lessened. During such repair and and restoration peiod.
hold such insurance proceeds until Lender has had an opportunityto inspet suchProperty to en e the VI, rk
hold such insurce proce unti Lender has ha an opportity to inspect such Propert to en e the VI rk
has been completed to Leder's satisfaction,provided that such inspection shall bebe underiaenro pOy.
has ben complete to Lender's satisfaction, provided that such inspetion shal undertaken ro ptly.
Lender may disburse proceeds for the repairs and restoration in aasingle payment or in ain a sees of gress
Lender may disburse procs for the repai and reration in single payment or series of
gres
payments asas the work is complete. Unles an agreeent is made writing or or Applicale Law reuir
payments the work is completed. Unless an agreement is made in in writig Applicable Law requires
interest to be paid on such insurance proceeds, Lender shal not be required to pay Borrower any interest
interet to be paid on such insurance proc, Lender shall not be required to pay Borrwer any interest

f:fj

requ~ ~Lend

DOC /1,523826
DOC II: 523826
G,:6A(NC) (01101
.6A(NC) (01101
®
~

APPL #:1000466121
APPL #: 1000466121
Page 66 of15
Page of 15

~~AN #:6612432471
~~AN #:6612432471

ln\iiai&;~
'n"la'&:~

Form 3034 1101
Form 3034 1101

Book:3678,Page:31
Book:3678. Page:31

..

\ïClgt= t '~I "i:4-J

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 7 of 24

7
7
or earnings on such proceeds. Fees for public adjusters, or other thir paes, retained by Borrower shall nol
or eaings on such procee. Fee for public adjusters. or other third parties,retaed by Borrower sha not
be paid out of the insurance procs and sha be the sole obligation of Borrower. the restoration or repair
be paid out of the insuranceproceeds and shall be the sole obligationof Borrower. IfIf the restoration or repai
is not economically feasible or Lender's security wou1d be lessened, the insurance proc sha be applied
is not ecnomicaly feaible or Leder's seurty would be lessened. the insurance proceeds shall be applied
tothe sums seured by this Security Insirment, whether or not then due, with not then due, with the exces, ifif any,paid to
the sums secured by this Security InslrUment, whether or
the excess, any, paid to
to
Borrower. Such insurance proceeds shall be applied in the order provided for Section 2.
Borrower. Such insurace procs shal be applied in the order provided for inin Section2.
If Borrower abandons the Property, Lender may file, negotiateand sette any available insurance claim
and settle any avaiable insurce cla
If Borrower abdons the Prpert, Leder may fie, negoti
and related matters. Borrower does not respond within 30 days to notice from Lender that the insurce
and relate mattrs. IfIf Borrowerdoe not respond with 30 days to aa notice from Lender that the insurance
carrier has offered to settle claim, then Lender may negotite and see the claim. The 30-day period wiU
carer has offered to settle a clam. then Lender may negotiate and settle the clai. The 30-day peod wiU
when the notice given. In either event, or if Lender acquires the Prpey under Section 22 or
g' .when the notice isis given.In either event, or if Lender acquires the Property under Section 22 or
otherw e. Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceedsinin anamount
otherw e, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance procs an amount
not t
eed the amounts unpaid under Note or or this Security Instrument, and (b) any other of Borrower's
not t ee the amounts unpaid under the the Note this Securty Instrment, and (b) any other of Borrower's
ri 18 (oth
the right to refund of uneaed premiums paid by Borrower) under all insurance
ri ts (oth the right to anyany refund of unearned premiums paid by Borrower) under al inurance
licies
ering e Property, insofar as such rights ar applicable
ticies co ering e Property. insofar as such rights areapplicable to the coverage of the Property.Lender
coverage of the Prpert. Lender
. surance proceeds either repa or restore the Property or to pay amounts unpaid under the
may use e'esurance proees either toto repair or restore thePrpert or to pay amounts unpad under the
thi
'ty Instrument, whether or nol then due.
thi 'ty Instrment, wheter or not then due.
6. ccu aney. orrower shal ocupy. establish, and use the Property as Borrower's pricipal residence
ccu aDey. orrower shall occupy, establish, and use the Property as Borrower's principal residence
6.
wi In 60
xecution of this Security InslJUment and shall contiue to occupy the Prope as
wi In 60 ys ys after xecution of this Security Insirment and shal continue to occupy the Property as
after
Borro s prin'
resi for at leat one yea afte the date of occupancy, unless Leder otherwise
Borro r r sprin' resi nce nce for at least one year after the date ofoccupancy, unless Lenderotherwise
agrees' wri' hich nsentnsent shall be unreanably withheld, or or unless extenuatig circumstances
agree' wr' g. g. hich
sha not not be unreasonably withheld, unless extenuating cirumstaces
exist which
yond
ewer~ntrol.
7. Preset tion
ain~en
mte'and Protection of the Property; Inspections. Borrower shall not
Protection
tbe Property; Inspections. Borrower shal not
7. Preset tion ain~en met "And
the
• allo
operty to deteriorate or commit waste on the Prpert.
destroy, damage or' p' the 00 . allo opert to deteriorate or commit waste on the Property.
destroy. daage or' p'
in in o rrwer shal shall maintain the Propertyorder totoprevent
rrower maita the Prperty in in order prevent
Whether or not Borrowe r r
Whether or not Borrowe is is i . ig . g e eo, ,
the Property from deteo ng or dec 'g e
the Property from deterio ..ng or dec 'g in in d e e d its ID its condition. Unlessis is determined pursuat to
lD e condition. Unless it it determined pursuant to
Section 5 5 that repai or restoran . onomi
Secuon that repair or restorau . not not onomì ìb , ib • orrower shall promptly repairthe Propertyifif
orrower shal promptly repai the Prpey
damaged to avoid further deterior tion orlion ~If ' ' or condemnation pros areare paidin
or condemnation proceeds paid in
daaged to avoid furer deterior
or ~If
connection with damage to. orto. or g
the
. the . g ,the , 0 shal be resnsible for repaig or
the
shall be responsible for repairing or
connection with daage
,0
restoring the Property only if Lender has has ß, rocs r r su ose. Leder may may disburseprocees
oses. Lender disburse proceeds
restorig the Propert only if Lender ~ roceeds su
for the repairs and and retoration in a single ent progress payments as as thework is
ent
progress payments the work is
for the repais restoration in a single
completed. If the insurance or condemnation p p are ot ot sufdent to reai or restore the Property.
are suf cient to repair or restore the Prope,
complete. If the insurance or condemnation
Borrower is not relieved of Borrower's obligation for
Borrower is not relieved of Borrwer's obligation mpleti
for mpletf~pairrestoration,
f~pai or or restoration,
make reasonable entri upo
inspectiofts the Propey. If it has
Lender or its agent may may make reanablè entr upo inspuoßs of of the Property. Ifit has
Lender or its agent
v v men on the erty. nder shall give
reasonable cause, Lender may inspect thethe interior of the men on the erty. nder shall give
reaonable cause, Lender may inspt interior of the
Borrower notice at the time of or prioror such an to such an inteor insptis S'fy' s Ie Ie cause.
S'fy'
Borrower notice at the tie of to prior interior inspecti
cause.
8. Borrower's Loan Application. Borrower shall shain defa defa if, 'ng Loan plication pros.
'ng
plication process.
8. Borrower's Loan Application. Borrwer be be in if,
wer's knowledge or
Borrower or any persons or or entities acung at the direction of Bor .. Bo wer's knowledge or
Borrwer or any pesons entities acting at the direction of Borro
s s tements nder r rfaied to
nder
failed to
consent gave materially false. misleading, or inaccurate infonnation or or tements
consent gave materily fal, misleaing. or inurte infonon
provide Lender with material information) in connection with the Loan. Ma Lo. r Ma . r non in ude, but
ude, but
provide Lender with matrial informaton) in connection with the .
are not limited to. representations concerning Borrower's occupancy of the Pro Pro as B9I er's ric at
ar not limite to, represntations conceing Borrwer's ocupancy of the
residence.
9. Protection of Lender's Interest in the Property aDd Rights Under this Seeu 'ty II
9. Protection of Lender's Interest in the Property and Rights Under this Seeu 'ly
(a) Borrowerfails to perform the covenants and agreements contained in this Security Ins
(a) Borrwer fails to perform the covenants and agreeents contaed in this Securty JnsuUl""","'"
Ins
a legal proceeding that might significantly affect Lender's interest in the Property and/or righ
a legal proeeing that might signifcatly affect Lender's interet in the Prpert and/or righ
Security Instrument (such asas a proceeing in banptcy. probate. for condemnation or fo fo tu for
for
Securty Instrment (such a proceeding in bankruptcy, probate. for condemnation or
enforcement ofof alien which may attain priority over this Security Instrument or to enforce Jaiâss or
a lien which may atta priority over this Security Instrment or to enforce
enforcement
or
regu1ations). or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is
regultions), or (c) Borrower has abadoned the Propey. then Leder may do and pay for whatever is

exist which yond øw'-nirl.

t

residence. V

DOC #:523627
DOC /I: 523 827

O®6A(NC) (0110)
.~6A(NC) (0110)

APPL #:7000466121
APPL #: 7000466121
Page 77 of15
Page of 15

~LOAN #: 6612432471
~LOAN #:6612432471

,n"i,,\.:~
'n"I"I.:~

Form 3034 1/01
Form 3034 1/01

Book:3678,Page:3Book:3678. Page:3'

.~ ,

\.' -\'.... ... - 'f ,
,
\.'

-i»' .............

-

'f

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 8 of 24

g
reasonable or appropriate to protect Lender's interest in the Property and rights under this Securty
this Security
Instrument, including protecting and/or asing the value of the Propert, and seurg and/or reng
Insirent, includig protecting and/orassessingthe value of the Property, and securing and/or repairing
reanable or approprite to protet Lender's inteest in the Propert and rights under

the Property. Lender's actions include, but are not limite to: (a) paying any sums seured by a lien which
the Propert. Lender's acon cacan include. but are not limited to: (a) paying any sums secured by alien which
has priority
ha priority over this Security Instrument; (b) appearing incour and (c) payig reaonable attrneys' fees to
this Securty Instrment; (b) appeg in court; and (c) paying reasonable attorneys' fees to
protect its interest in the Property and/or rights under this Security Instrument, including its secured position
protet its interest in the Prope and/or rights under this Securty Instrment, including its seured position
in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Prpert to
in a banptcy procing. Secunng the Prpe includes. but is not limite to. enterig the Property to

make repairs, change locks, repla or board up doors and windows, dr wat from pipes, eliminate
make repais, change locks, replace or board up doors and windows, drain water frompipe, eliinate
building or other code violations or dangerous conditions, and have utilities tued on or off. Although
buiding or other coe violations or dagerous conditions. and have utiities turned on or off. Although
Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or
Lender may tae action under this Section 9, Lender doe not have to do so and is not under any duty or
b' tion to do so. It is agree that Leder incurs no liability for not tag any or all actions authoried
b' lion to do so. It is agreed that Lender incur no liabilty for not takingany or al actions authorized
oder Section 9.
nder is is Section9.
An amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower
An amounts disburse by Lender under this Section 9 shal beome additional debt of Borrower
sec ed by . Security Instrument. These amounts shall bear inlerest at the Note rate from the dat of
se ed by . Security Instrment. Thes amounts sha be inleresl aithe Note rale from the date of
. urseme t an shall be payable, with such interest, upon notice from Lender to Borrower requestig
to Borrower requesting

. urseme t an shal be payable, with such interest, upon notice from Lender

ayment.
ayment.
If is
Drity Insbllment is on a leasehold, Borrower shall comply al all provisions of the lease
If is urty Insb1ment is on a leahold, Borrower shal comply withwith the the provisions of the leae..
. title title Property, !he leahold and the the title shal not merge unless Lender
ow . es feees feeto theto the Property, the leasehold and fee fee title shall not merge unlessLender
e erg . writing.
ree e erg . writing.

rtgage
O. rtgage Dee. If Dee. If Lender required Mortgage Insurance a condition of maing the Loan,
Lender required Mortage Insurance as as a condition of making the Loan,

shal1 p,
e iums requir to to maintain the Mortgage Insurance effect If. for any rean,
Borrow, sha p, e pr pr iums requiredmaita the Mortgage Insurce inin effectIf, for any reason,
the Mo age ce . c erage required by Lender ceases avaiable from the mortgage insurer that
the Mo age su su cceerge required by Leder cea to beto be available from the mortgage insurerthat
previously
v'
ce and Borrower was required to searately designated payments
previously v' sucsuc ce and Borrwer wa required 10 make make separately designatedpayments
m in
toward the pre ium.s p orta. ge urce, Borrower sha paypay the premiums required to obtain coverage
ortgage urance, Borrower shall the premiums required to obla coverage
toward the pre ium.s
substantially equ ~t
substatiy equ ~t th::o t h : oa previously in effect,effect, cost substatiy equivalent to
a Insurce Insurance previously in at a at a cost substantiaJ)y equivalent to
the cost Borrower 0 0
age ns
the cost toto Borrower thethe00 age ns cece eviously in effect,from an alternatemortage insurr
eviously in effecl. from an alteat mortgage insurer
selected by Lender. If su s
e Insurance coverage not available, Borrower shall
selected by Lender. If su. s y equiequi t t a e aInsurce coverge is is not availe, Borrwer shal
. y
continue to pay to Lender
amount
sep
payments were due when the insuce
continue to pay to Leder amount ee sep 1yIy esi payments thatthat were duewhen theinsurance
esi
coverage ceased to be in effec ereril ill an t,la these lain these paymentsnon-refundable loss
an
coverage ce to be in effec
t,
payments as a as a non-refundable loss
reserve,
permitted under Applic Law
resrve.ifif peitt under Applic e e Law . . of of ort Insurance. Such lossreserve sha be
ort ge ge Insurance. Such loss rese shall be
non-refundable, notwithstanding the act th the
I paid fun, and Lender shall not be
non-refundable, notwithstading the act th the an i 1 . i paid in in fun, and Lendershal not be
.
required to pay Borrower any any intereting onon suc 10 if peitte under Applicable Law.
if permitted under Applicable Law.
required to pay Borrwer interest
ing sue 10
Lender can no longer requie loss pa ments if
ce coverage (in amount and for
Lender can no longer require loss reserve rese pa ments if ce coverage (in the the amount andfor
the period that Lender requires) provided b an in an in y Lender again becomes avaiable, is
y Lender again becomes available, is
the period thai Lender requir) provided b
obtained, and Lender requires separately design design the premiums forfor MortgageInsurce.
the premiums Mortage Insurance.
obtaed, and Leder requires separately
If Lender required Mortgage Insurance as a conditio a 0 m
and Borrower was required to
If Lender required Mortage Insurance as conditio 0 m and Borrwer was requir to
make separately designated payments toward the premi premi ngage Ins ceo Borrower shall pay the
rtgage Ins
ce, Borrower sh pay the
make separatly designate payments toward the
pe
der ~bIe Law, or to
premiums required to mainlain Mortgage Insurance in
premiums required to maiian Mortgage Insurance in pe dec ~ble Law, or to
provide a non-refundable loss reserve.resee. until Lender's requirent or I ge I ~s in in accordance
ge M ~s accordace
provide a non-refundable loss until Lender's requirement or M
with any written agreement betweenBorrower and Lender provid' for cli . aii or until tennintion
. ab or until tennination
with any wrttn agreement beee Borrower and Lender provid for eli
is required by Applicable Law. Nothing in in this Sectionaffects B B wee soigation pay inteest at the
is required by Applicable Law. Nothing this Section 10 10 affects wet so igaûon pay interest at the
rate provided in the Note.
Mortgage Insurance reimburse Lender (or any entity that purchases e Note
Mortgage Insurce reimburses Lender (or any entity that purhas e Note
6-"'>=--__
incur if Borrower does not repay the Loan as agreed. Borrower is not anot a par e ....-='"-incur if Borrower doe nol repay the Loan as agre. Borrower is party
Mortgageinsurers evaluate their total riskri on al such insurceinin forc 0
force 0
Mortage insurers evaluate their tota on all such insurance
enter into agreements with other parties that share or modify their risk, or reduce los
enter into agreements with other pares that share or modify their risk. or reduce los
on tenns and conditions that are safactory to the mortage insurer and the other p
on tenns and conditions tht ar satisfactory to the mortgage insurer and the other p
so
agreements. These agreements may require the mortgage insurer to make payments using
ageements. These agreements may require the mortgage inurer to make payments using so
that the mortgage insurer may have available (which may include funds obtained from Mortg
that the mortgage insurer may have available (which may include funds obtined from Mort
plemiums).
piemiums).
As a result of these agreements, Lender, any purehaser of the Note, another insurer, any rein ee any
As a resuII of thes agrements. Lender. any purchasr of the Note. another insurer. any rein
other entity, or any affiliate of any of the foregoing. may receive (directly or indiectly) amounts that derive
other entity. or any affiiate of any of the foregoing. may reive (dirtly or indirectly) amounts that derve
from (or might be characterized as)aa portion of Borrower's payments for Mortgage Insurance, in exchange
portion of Borrwer's payments for Mortage Insurce, in exchage
from (or might be chartenz as)
for sharingor modying fue mortage insurer's ns. or or reducing losses. If such agreement prvides that an
for sharg or modifying the mortgage insurer's risk, reducing losss. If such agreement provides that an
affIliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the
affiiate of Lender taes a share of the insur's rik in exchange for a share of the premiums paid to the
insurer. the arrangement is often termed "captive reinsurance." Further:
insurer, the argement is often teed "cative reinsurce." Furer:

p

#,523828
DOC #,523828 APPLAPPL #:7000466121
#:7000466121 ~~AN ,:,~AN #:6612432471
#:6612432471
inltlai.:~~
Inltlal':.:;.:~:::...:~~_
Inltlal':.:;.!~o::..=..~..l-_
Form 1/01
~8A(NC)
~8A(NC) (0110) Page 8 of 15 Form 3034 3034 1/01

DOC

(0110)

Page 8 of 15

Book:3678.Page:31
Book:3678,Page:31

\:ø~rs" -.i .L4oJ

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 9 of 24
e¡

(a) Any such agreements will not arrect the amounts that Borrower has agreed to pay for
(a) Any such agreements wil not affec the amounts that Borrower has agree to pay for
Mortgage Insurance, any other terms of the Loan. Such agreements will not increase tbe amount
Mortage Insurance, oror any other terms of the Loan. Such agreementswil not increase tbe amount

Borrower will owe for Mortgage Insurance, and they wiD not entitle Borrower to any refund.
Borrower wil owe for Mortgage Insurance, and they win not entitle Borrower to any refund.
(b) Any sucb agreements wiD not affec the rights Borrower has if any with respect to tbe
(b) Any sucb agreements wiD not affect the rights Borrower has -. if any. - with respectto tbe
Mortgage Insurance under the Homeowners Protection Act 1998 or any other law. These rights may
Mortgage Insurance under the Homeowners Prtecion Actoror 1998 or any other Jaw. These rightsmay
include tbe right to receive certain disclosures, to request and obtain cancellation of the Mortgage
include the right to receive certin disclosures, to reques and obtain cancelltion of the Mortgage
Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive refund of any
Insurance, to have the Mortage Insurance terminated automatically, and/or to receive aarefund of any
Mortgage Insurance premiums that were unearned at the time of such cancellation or termintion.
Mortgage Insurance premiums that were unearned at the time of such cancellation or termination.
11. Assignment of Miscellaneous Prees; Forfeiture. All Miscelleous Proceeds are hereby
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Procee are hereby
ned to and shall be paid to Lender.
. .ned to and shall be paid to Leder.
e Property is damaged. such Miscellaneous Proceeds be be applied to restoration or repair of the
e Prperty is daed. such Miscellaeous Proc shalshallapplied to restoration or repa of the
Propert if the restoration or repair economically feasible and Lender's securty is not lessned. Durg
Propert if the restoration or repai isis economically feaible and Lender's security is not lessened. During
suc repair d restoration period, Lender shall have the right hold such Miscellaneous Proceeds until
sue repai d restoration peiod. Lender shal have the right toto hold such MiUaneous Proc unti
der has ad
opportunity to inspect such Prpe to ensur the work has been completed Lender's
der has ad opportunity to inspet such Property to ensure the work hasben complete toto Lender's
atisfactio . pr . ed that such insption shal be undern promptly. Lender may pay for the repairs and
ausfactio • pr . ed that such inspection shall be undertaken promptly. Lender may pay forthe repais and
estora . n
a single disburment or in a series of progr payments as the work is completed.
estora' n ii a single disbursement or in a series of progress payments as the work is complete.
an
ment is made in writing or Applicable Law requires interest be pad on such
an ment is mad in writing or Applicable Law requi inteest toto be paid on such
eou Proc
, Lender not not be required to pay Borrower any interest or earnings on such
eou Prc , Leder shal shall be requied to pay Borrwer any interest or eaings on such
Prc)OO~.,.Jf the restoration or repair not economically feasible Lender's security would be
Prcoo~.,Jf
i an s . f the restoration or repai is notiseconomicaly feaible or or Lender's seurty would be
lesen , the aneo aneo shal be applied applied to sumssums secured by this Security Inslrument,
Prs Proceeds shall be to the the seur by this Securty Instrment,
e ith ith the excess, if any, paid Borrower. Such Misclleous Procees shall be
whethe r no e due,due, the excess, if any. paid to to Borrower. Such Miscellaneous Proceedsshal be
applied in
provi f . . Section 2.
applied in r rprovi éd ed f Section 2.
In theev of a
taking,
truction, or loss value of the Prpery, the Millaneous Procees
In theev tt of a taing, trction, or loss in in value of the Property, the Miscellaneous Proceeds
is Security Instrument, whether or then due, with the excess. if
shall be applied the s ms
shall be applied the s ms 72 b isbSecurty Instrment, wheter or not not then due, withthe exces. if
any. paid to Borrower.
any, paid to Borrower.
In the event of p mg, d
ss in value of the Property in which the fair market
In the event of a p a 'al 'al mg. d ss in value of the Prpety in which the fai market
, destruction, in value is equa to or greaer
value of the Property 'ately ber.
valueof the Property imm imm 'atly ber. , destruction. or lossor loss in value is equal to or greater
than Uie amount of the
ed
this
Ins ment immediately before the partial taking,
thanthe amount of the sums sums éd this Ins ment immediately before the paral taing,
er
. agree in writing, sums seured by this
destruction, or loss in value, unless orrower
destrction, or loss in value. unless orrower er . agee in writing. thethe sums secured by this
Security Instrment shall be by e
unt
. cellaneous Proceeds multiplied by the
SecurtyInstrument shall be redu redu by e unt 00 e e. celleous Prs multiplied by the
following fraction: (a) (a) the tota amount the sum se . te before the par taing, destruction.
. te before the partial taking, destruction,
foIJowing fraction:the total amount the sum sec
. mediately before the partial taking.
or loss inm value divided by (b) the fai ma value o~
or loss value divided by (b) the fair mar value ~
destruction, or loss in in value. Any balance shall padBo wer.
destruction. or loss value. Any balance shall paid Bo wer.
In the event of a a paraltaking, destruction, r r Iss' value
In the event of partial taing, destrction, 1 ss' value
value of the Property immediately before before the' g. dd , loss in loss in valueless than the
g,
,
value of the Property immedately the'
value is is less than the
amount of the sums secured immedialely before the the.alal . . g, destruc on, or loss in value, unles
amount of the sums seured immediately befote
.
g. destrc . .on, or loss in value, unless
us Pii s s alall (beapplied to the sums
Borrower and Lender otherwise agree in writing, the' the' us PI1
Borrower and Lender other agree in wrtig.
(6lied to the sums
secured by this Security Instrument whether or not the sums are th n dU~~~
seured by this Securty Instrment whether or not the sum are th n du . ~~
If the Property is abandoned by by Borrower, or if. afte notice Len~fìo orro that the Opposing
U
r 0 orro
that the Opposing
If the Propert is abandoned Borrower, or if, after notice
Party (as dermed in the next sentence) offers to offers to mae to seaward to se ~ or ges,Borrower fails
a . or
ges, Borrwer fai
Pary (as derined in the next sentence) make an award an
to respond to Lender within 3030 days afte date the the notice is given,iser is a o' collect and
er a o'
collect and
to resond to Leder wiuiin days after the the da notice is given,
apply the Miscellaneous Proceeds either to restoration or repair of reai of the Pro eor e s ed ed by this
or
s
apply the Miscellaeous Proc either to retoraon or the Pro
by this
Security Instrument, whether or not then not then due.Party" means the meas the . does orro'f
Security Instrment, whether or due. "Opposing "Opsing Par" . d o e s orro}'l
Miscellaneous Proceeds or the party againstwhom Borrower has a right of action regmd--to Misc ~Ianoous
pary agast whom Borrower has a right of action regai Misc ~ianoous
Miscellaeous Prcees or the
Proceeds.
V
Borrower shall be in default if any any action or prng.whether civil or crimm ,is is un at. in
Borrower shal be in default if action or proceeding. whether civil or crim .
un at, in
Lender's judgment, could result in forfeiture of the of the Prope or other material impaient 0 er' intere
er' intere
Lender's judgment, could result in forfeiture Property or other material impairment 0
in the Property or rights under this Security Instrument. Borrower can cure such a default and,' accelera' n
in the Propey or rights under this Security Instrment. Borrwer ca cur such a default and,' acler' n
has occurred. reinstate as provided in Section 19. by19. by causing the action or procngdism dism th a
has occurred, reinstate as provided in Section causing the action or proceeding to be to be
th a
ruling that. in Lender's judgment, precludes forfeiture of the Property or other materialmatri imp t of
ruing that, in Lender's judgment, precludes forfeitu of the Property or other imp
t of
Lender's interest inin the Prperty or rights under this Securty Instrument.proceeds of any award oror cla
Lender's interest the Property or rights under this Security Instrument. The The pro of any award claim
for damages that are attributable toto the impaient of Lender's interest in the Property are hereby assigned
for damages that are attbutable the impairment of Lender's inteest in the Propert are hereby asigned
and shall be paid to Lender.
and sha be paid to Lender.
All Miscellaneous Proceeds that are not applied to restorationor repair of the Property shall be applied
AU Miscellaeous Proc that are not applied to restoration or repai of the Propert shal be applied
in the order provided for in Section 2.
in the order provided for in Section 2.

!Z

Procees. V

DOC #:523829
DOC /1:523829
aSA(NC) (01101
®(!
Gl5A(NC) (01101

APPL #:7000466121
APPL #:7000466121
PagoOol15

~. LOAN #:6612432471
~LOAN /1:6612432471

Iniilal.: tl
lnitlal.:-,~"",,-"..2t-'~_
lnitlal.:",,~t:X:::."..2t-'...x...:'-

Form 3034 1/D1
Form 3034 11D1

Book:3678,Page:31
Book:3678.Page:31

\r''¡oe i\: U¡ L''lJ

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 10 of 24
10
10

12. Borrower Not Released; Forbearance By Lender Not Waiver. Extesion of the tie for
12. Borrower Not Releed; Forbearance By Lender Not a Waiver. Extension of the timefor
payment or modification of amortization of the sums seur by this Securty Intrent grate by Lender
payment or modification of amorttion of the sums secured by this Security Instrument grantedby Lender

to Borrower any Succsor In Interest Borrwer shall nOl operate releae the liabilty of Borrower or
to Borrower or any Successorín Interest of Borrower sha not opera to to release the liability of Borrower or
any Successors in Inteest of Borrower. Lender shal not required to commence procgs against any
any Succesors in Interest of Borrower. Lender shall not bebe requir to commence proceedings againstany
Successor Interest of Borrower or to refuse to extend tie for payment or otherise modify amorttion
Succssr inin Interestof Borrwer or to refus to extend timefor payment or otherwise modifyamortization
of the sums seured by this Securty Instrent by rean of any demand made by the origin Borrower or
of the Sums secured by this Security Instrument by reasonof any demd made by the originalBorrwer or
any Successors in Interest of Borrower. Any forbearance Lender in in exerciSing any right or remedy
any Succsors in Interest of Borrower. Any forbece by by Lender exercising any right or remedy
including, without limitation, Lender's acceptace of payments from third pens, entities or Successors in
including. without limitation, Lender's acceptance of payments from third persons, entitiesor Successrs in
rest of Borrower or in amounts less than the amount then due, sh not be a waiver of or preclude the
rest of Borrower or in amounts less than the amount then due, shall not be a waiver of orpreclude the
xe
xe ' .of of any rightor remedy.
any right or remedy.
1 Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and
1 Joint and Several Liabilty; Co-signers; Succesrs and Asigns Bound. Borrower covenats and
agr
at Borrower's obligations and liability shall be joint and sever. However, any Borrwer who
agr at Borrower's obligations and libilty shall be joint and several. However, any Borrower who
co igns th' , urity Instrument doe not not execute the Note (a "co-signer"): (a) is co-signing this Securty
co igns th' , urity Instrent but but does execute the Note (a "co-signer"): (a) is co-signing this Security
stroment nly mortgage. grant convey the co-signer's interest in the Property under the terms of this
strment nly ~ ~mortage, grt and and convey the co-signer's interestin the Prpey under the tems of this
Security ns
Security ns cm; cnt; (b) is not personally obligated to pay the sums secured by this Security Instrument; and
(b) is not personaly obligate to pay the sums seured by this Securty Instrent; and
ee at at Lenderand any other Borrowercan agree to extend.modify. forbe oror make any
Lender and any other Borrower ca ag to extend, modify. forbear make any
accomm Ii ti ns regard to the terms of this this Security Instrument thethe Note without the co-signer's
ns ' ' regard to the terms of Securty Instrment or or Note witlout tle co-signer's
tm.
Borrower who assumes Borrower's
S . L to th rovi' nsrovi . ns of Section 18, any Successor In Interest of Borrwer who assumes Borrower's
of Section 18. any Succesr in Interest of
is
urity Instrument in writing, and is approved by Lender, shall obtain all of
obligau ns un r is SSurty Instrment in wrtig. and is approved by Leder. shal obtan al of
nefits this this Security Instrument Borrower shall not be relea from
Borrwer 'h and nents underunder Securty Instrment. Borrower shall not be releasedfrom
Jab'
nder Securty Instrment unless Lender agrees to such release in
Borrwer's ob igations tab' i I nder th this Security Instrument unless Lenderagees to such relea in
of this Instrment shall shall bind (except as provided Section
wrtig. The co an d ag~en of this SecurtySecurity Instrumentbind (except as provided inin Section
20) and benefit the ssors d si of
ofl'-'V"'~'"

14. Loan Charg Le d may ge~rr er fee for services peormed in connection with

Borrower's default, for urse rote Le del's interesi in the Property and rights wider this
Securty Instrment, including, ot ' íte , propert inspetion and valuaton fee. In

DOC

#;523830

APPL #,1000466121

~OAN

Ininal.: ~
Ininal.: ~ ~iJ0AN
G-6A(NC)

(0110)
G-6A(NC) (0110)
®
lÐ

Page 100116
Page 100116

#,6612432471

#,6612432471

Form 3034 1/01
Form 3034 1/01

Book:3678.Page:3~
Book:3678,Page:3'

;". Qlj'fJ

• I

'T,

\1, g~'. . y- yr. ~"TI

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 11 of 24
1/

16. Governing Law; Severability; Rules Construction. This Security Instrument shall be governed
16. Governing Law; Severabilty; Rule ofof Construction. ThisSecurty Instrment shal be governed

by federal law and the Jaw of the jurisdiction in which the Property is located. All rights and obligations
by federal law and the Jaw of the jurdiction in which the Property is locat. All rights and obligatons

contained in \his Security Instrument subject to any requirements and liitations of Applicable Law.
contaned in this Secty Instment areare subject to any requirements and limitations of Applicale Law.
Applicable Law might explicitly or implicitly allow the parties to agree by conlraCt it it might be silent, but
Applicable Law might explicitly or implicitly alow the pares to agree by conirt oror might be silent, but
by contrt In the event that any
such silence not be not be construed as a prohibition agaist agrent agreement by contract In the event that any
prohibition against
such silence shal shall constred as a
provision or claus of th Security Instrument or the Note conflicts with Applicale Law, such conflict sha
provision or clause of thisSecurty Instrment or the Note conflcts with Applicable Law. such conflct shall
not affect other provisions of this Securty Instrument or Ihe Note which can be given effect without the
not affect OUler provisions of this Security Instrment or the Note which ca be given effect without the
conflicting provision.
conflctig provision.
As used this Security Instrument: (a) words of the masculine gender shall mean and include
As use ißin this SecurityInstrment: (a) words of the masuline gender shal mea and include
nding neuter words
words of the feminine gender; (b) words in tile singular shall mean and
nding neuter words or words of the femine gender; (b) words in the singular shall mea and
II
gives sole disceuon without any obligation to lake
obligation to lae
inclu the and vice ver and (c) the word "may
incluthe plural -plural and vice versa; and (c) tile word "may" gives sole discretion without
anyacti n.
n.
anyacti
17.
wer's Copy. Borrower shall given one copy of the Note and of this Securty Instrent
17. B wer's Copy. Borrower shall bebe given onecopy of the Note and of this Security Instrument
18. Tans r the Property or a a Benencial Interest Borrower. As use in this Section 18,
18. Tans r of of the Property or Benencial Interest inin Borrower. As used in this Section18.
'Interest' the
perty" means any legal or beneficial interest the Prpert. including. but not limite to,
Property. including.
'Interest' the perty" meas any legal or beneficial inteest inin the Property, including, but not limited to,
tIlose
eft· interests transferred a bond for deed, contract for deed, installment saes contract escrow
those eft. interests trsferred in in a bond for dee, contrt for dee, instalment sales contract or or esw
(M en
. tent of which is the
(M en . tent of which is the tile transfer of title by Borrower at a future date to a purchaser.
transfer of title by Borrower at futue
to a purhaer.
If or any
If i lor any pp t t ofthe Prpe or any any Interest in the Property is sold transferred (or if Borrower is
of the Property or Interest in the Prpey is sold or or transferred (or if Borrower is
no a nalur person
natur
beneficial interest in Borrower is sold or transferred) without Lender's prior written
no a natur persn beneficia interest in Borrwer is sold or trsfered) without Leder's prior writtn
consen ,nder
req . e immediate payment in full sums secured by by Securty Instrument.
consen ,nder req . e immedat payment in full of al of all sums secured thisthis Security Instrument.
Howev this ti shallot be exercised by Lender if such exercise prohibite by Applicable Law.
Howev this ti shalot be exercised by Lender if such exercis is is prohibited by Applicable Law.
If Lè
ere'
lbi
tbi
tion, Lender shall give Borrower of acceleration. The notice shall
If Le erci thi tion, Lender shal give Borrower notice notice of acceleration. The notice shall
provide a peri of n
s than
ys from the date the notice is given accordance with Section 15
provide a peri dd of n s than ys from the dae the notice is given in in accordancewith Secuon 15
within w. Wch w rust äl l seured by by Securty Instrment. If Borrower fails to pay these
withinwhich Bo Bo w rustasu ssu s secured thisthis Security InstrumentIf Borrwer fai to pay thes
sums prior tile exp' tion f
the
n
may invoke remedies permitted by this Security
sums prior to to the exp" uon i s ' n may invoke any any remedies pett by this Securty
f is'
Instrument without forth ~o'c de
or
on rro er.
Instrmentwitllout furthfur ~o'c or de on rro er.
without
19. Borrower's Ri t to Re' s te A
A celeration. Borrower meets certain conditions,
19. Borrower's RI t to Re' s te A A celeration. If If Borrowermeets cert conditions.
'ty Instrument discontinued at any time prior
Borrower shall have the the
Borrower shall have right right e ee oreme Itt is 'ty Instrment discontinued at any time prior
e orceme
to the ealiest (a) five days be~ re sale 0
p any power of of sale contained in this
to the earliest of:of: (a) five days bei re sae 0 P uat to uant to any powersale contaed in this
Security Instrument; (b) such other 'od App
mi h specify for tile termination of Borrower's
the
Borrower's
Security Instnent; (b) such other '00 App mi h speify for the teination of
'ty strument, Those conditions are that
strUment,
right to reinstate; or (c) entryentr of a ju e tenrcing's 'ty strment. Those conditions are tht
right to reinstate; or (c) of a ju e ten rcing's
Borrower: (a)(a) pays Leder all which which n would . Securty Instment and and the Noteas
' Security Instrument the Note as
Borrower: pays Lender all sums sums n would
if no acceleration had occurred; (b) cures defa t t ofy olboth covenants agreements; (c) pays all
defa of
y covenants Or or agreements; (c) pays all
if no accleruon had occurred; (b) cures
expenses incurredin enforcing tIlis Security InsIns .ee 1,' tuding ut ul not limited to, reasonable attorneys'
expense incurr in enforcing this Security
t,' 1uding ut limite to. reanable attorneys'
not
fees, property inspection and valuation fees, andfee, and othe ee inc purse of proteung Lender's
purpose of protecting Lender's
fees, property inspetion and valuation ollle ees inc
interest in in the Prope and nghts under this Security trm such action as Lender may
such action as Lender may
interest the Property and rights under this Security trum
reasonably require to assureassure that Lender's interet in the'g
and and "g er ~urty Instrment,
er ~urity Instrument,
reaonably require to that Lender's interest in the
and Borrower's obligation to paypay sumssums securedSec this ISec me I s me !!~ue unchaged.
this
!@~ue unchanged,
and Borrwer's obligauon to the the secured by tIlis by 'ty s 'ty
Lender may require that Borrower pay such reinstatement sums an ex ex . 0 e oror ore of thefollowing
reinslatement
. 0 e ore of the following
Lender may require that Borrwer pay such reinsiament sums an
forms, asas selected by Leder: (a) (b) moneymoney order, (c) hec hec b chec treaur's check or
chec treasurer's check or
forms. selected by Lender: (a) cash; cah; (b) order, (c) certifi
ce b
cashier's check, provided any such check is drawn upon an institution w 0 w 0 eposits e' byby afederal
cahier'scheck. provided any such check is drwn upon an institution eposi1S'
chec.
a federal
agency, instrumentality or entity; or or (d) Eleclrnic Funds Transfer. Upo reinsta men b wer. this
EleclrOnic
wer, this
agency, instrmentaty or entity; (d) Electronic Funds Transfer, Upo reinsta men
Security Instrument andand obligauons secured hereby shal fully eftj fully eci 've el tion
el tion
Security Instrment obligations secured hereby shall remain remain 've
occurred. However, this right 10to reinstate sha not applythe the casacceleration dec~tron 18.
occured. However. this right reinstate shall not apply in in case of of acelertion der Sluon 18.
20. Sale oror Note; Change of Loan Servicer; Notice of Grievance. The Note a jl in est' the
a pattial in est' the
20. Sale Note; Change of Loan Servicer; Notice or Grievance. The Note
Note (togetller with this Security Instrument) can be sold soldor more more without pn pn ouce Bo ower.
one one or times ties without alice Bo ower,
mice
ower.
Note (together with this Security InsO'ument) ca be
A sale might result in a a change in the entity (kown as the "Loan Servicer") collects
Servicec")
IC aymen
A sae might result in change in the entity (known as the "Loan Servicer") that that collects 'ic aymen
due l,Inder the Note and Ihis Security Instrument and performs other mortgage loan servicin obliga' ns
due llnder the Note andtIlis Securty Instrment and performs other mortage loan servicin obliga' ns
this
under the Note, this Security Instrument, and Applicable Law, There also might be be one or mor chan .. of
mor
under ile Note, this Securty Instrment, and Applicable Law. There also might one or mar chan
of
the LoanService unrela to to sae ofof the Note, If thereis aachange ofof the Loan Service, Borrwill be
there
the Lo Servicer unrelated a a sale the Note. If tIlere is change the Loan Servicer, Borrow
il be
,,given written notice of the change which wil state Ihe name and address of the new Loan Servicer, the
given wrttn notice of the change which will state the nae and address of the new Loan Servicer, tile
the
address to which payments should be made and any other information RESPA requires in connection witll a
addres to which payments should be made and anyolher infonnaton RESPA requires in connectionwith a
other
with
the
notice of transfer of sericing. If the Note is sold and thereafter Ihe Loan is service by a Loan Servicer other
notice of trsfer of servicing. If tile Note is sold and thereatethe Lo is serviced by a Loan Sericer other
the
DOC /1:523931
DOC /1:523931

.-6A(Ne)

(OlIO)

®
G-6AINC) (OlIO)
~

APPL #:7000466121
APPL #; 7000466121
Page 11 01 1~
Page 11 01 1~

~OAN #:6612432471
~OAN #:6612432471
iniiiais:~ ')
\nil1alS!~ ' )

Form 3034 1/01
Form 3034 1101

Book:3678,Page:3'
Book:3678, Page:3'

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 12 of 24

,

-;,
, l,

than the purchaser of the Note. the mortgage loan servcing obligations Borrower wil remai with
than the purchasr of the Note. the mortgage loan servicing obligations to to Borrwerwill remain with
the Loan Servicer or be transferred to aasuccessor Lo Servicer and are not assumed by the Note purchaser
the Loan Service or be transferr to succsor Loan Servicer and are not assumed by the Note purcha
unlessotherwise provided by the Note purchaser.
unless otherise provided by the Note purhas.
Neither Borrower nor Lender may commence, jOin. or be joined to any judicial action (as either an
Neither Borrower nor Lender may commence. join, or be joined to any judicia action
individual litigant or the member of a class) thattht ar from the other party'sactions pursuant tothis Securty
individual
litigant or the member of a clas) arises from the other pa's actions puruat to this Security
Instrment Or tht alleges that the other par has breached any provision of, or any duty owed by rean of,
Instrument Or that alleges that the other party ha breahed any provision of, or any duty owed by reason of.
Security Instrment, until such Borrwer or Leder ha notified the other party (with such notice given
this Security Instrument, until such Borrower or Lender has notied the other par (with such notice given in
pIiace with the requirements of Section 15) of such alleged breach and afforded the other party hereto a
pliance with the requirements Section 15) of such aleged breah and afforded the other par hereto
easo ble period after the giving of such noticeto tae corrective acuon. If Applicable Law provides a time
provides a Ufe
ea ble period after the giving of such notice to take corrective action. If Applicable
period hich must elapse before cert action ca be taen. tht tie period will deemed to be reanable
period hich must elapse before certain action can be taken. that time period will bebe deeed to be reasonable
for ur this pargraph. The notice of acleration and and opportunity to cure given to Borrower pursuant
this paragraph. The notice of acceleration opportunity to cure given to Borrwer pursuant
for urpo
Borrower pursuant to Section 8 shall be deemed
Section 2 an the notice of acceleration given to Borrwer puruant to Section i 18shall be deemed to
Section 2 an the notice of acceleration given
satisfy no'no'andand opportunitytae take corrective action provisions of this Section 20.
satisfy
e e opportnity to to corrective action provisions of this Section 20.
rdous Substances. As use in this Section 21: (a) "Hadous Substances" are those
rdous Substances. As used in ths Section 21: (a) "Hazardous Substaces" are those
substan ss d fm toxictoxic hazdous substaces, pollutats, or wastes by Environmental Law and the
d fm
substa
or or hazardous substances, pollutants, or wastes by Envionmenta Law and the
following bstace. line. kerosene, other flmale or toxic petroleum products, toxic pesticides and
line, kerosene, other flammable or toxic petroleum products. toxic pesticides and
following bstance.
herbici es, vola' e e Iven, maierial containingasbeos or or formaldehyde,and radioactive materis; (b)
herbici es, vola'
Iven, materials containg asbestos formaldehyde. and radioactive materials; (b)
"Environ n s federa lawsfederallaws and the jursdiction where the the Property islocate tht relate
s and laws of laws of the jurisdiction where Property is located that relate
"Environ n
to heath, safe or en menmen
olection; (c) "Environmental Cleanup" includes response action,
to health. sae or en
otetion; (c) "Environmenta Cleaup" includes anyany responseaction.
remedia action, :i al attti n, as fined in Envirnmenta Law; and (d) an "Environmenta Condition"
al att.tias fined in Environmental Law; and (d) an "Environmental Condition"
n,
ntrib te or 0
ise trigger Environmental Cleaup.
meansaa condition that cau. ntrb te , ,or 0 is trgger ananEnvironmenta Cleanup.
condition that
meas
cau.
Borrower not not ru rep ncepuse, dissa, strage, or releae ofof any Hadous
Borrower shallshall u
/.
e
nce use. disposal, storage, or release any Hazardous
""""'''''-'''it]
dou
on in the Property. Borrower shall not do,
Substaces. or threaten to reH/H dou on or in theorPrpery. Borrower shal not do.
nor allow anyone else else to do. any affecti ) that )is in violaon of any Envirnmenta
affecti
that is in violation of any Environmental
nor allow anyone to do, any
Law. (b) which creates an Environ
(b) which creates an Environ tal CC nditi ,or (whi ue to thethe presence, use. or relea of a
whi
ue to presnce. use, or release of a
Law,
ta
nditi
HazardousSubstace. creates a conditio
Hazdous Substance, creates a conditio rselyaf ts IS
valu valu the the Property. The preceding two
of of Propey. The preceding two
sentences shall not apply to the presence. u
senteces shal not apply to the presnce, u or sto e n the Tty of small quantities of Hazardous
fl of smal quatities of Haous
'ate norm residential uses and to maintenance of
Substances thatare generally recognized to be roTO'ate norm residential uses and to maintenance of
Substaces that are generally regniz to be
thePropeny (including.
but not limited to. hazdous ces co
roducts).
the Propeny (including, but not limited to. hazardous su s su si ce i co roducts).
inves' aU n.
demand. lawsuit or
Borrower shall promptly givegive Leder wrtte not of (a inves' aU n, c c demand, lawsuit or
Borrower shall promptly Lender written noti of (a
other action by any governmental or regulatory agency 0 0 ri ate pp ty nvo vin the
ri ate ty nvo Yin the
other action by any governenta or regulatory agency
Hazdous Substance or Environmental Law of which Bo we hil:>---a~l.WU
Hazardous Substace or EnvirnmentaLaw of which Bo we h
EnvironmentalCondition. includig but not limited to. any spillin • , ean
Environmenta Condition, including but not liite to, any spilin eakin
releaseof any Hadous Substace, and (c) any condition cause by
relea of any Hazardous Substance. and (c) any condition caused by
Hazardous Substance which adversely affects the value of Ihe Propeny. If Ifrrow
Hazdous Substace which adversely affects the value of the Propeny.
rrw
any governmenta or regulatory authority. or any private party. thatany remov
governmental or regulatory authority. or any private par, tht any remov
Hazardous Substanceaffectingthe Property is is neces, Borrower shal promptly e alGtes
Hadous Substace affecting the Propert necessary. Borrower shall promptly
actions in accordance with Environmental Law. Nothing herein shallcreate any obligau
actions in acrdace with Environmenta Law. Nothing herein shall create any obligau
Environmental Cleaup.
Envirnmenta Cleanup.

DOC /1:523832
DOC #:523832
ca-SA(NC) (0110)
~.6A(NC) (0110)
®
~

APPL #:7000466121
APPL ": 7000466121
Poge 120115
Pege

/1.

~

LOAN ":6612432471
":6612432471

/1. ~
tnttlat'~~
inltlai,~~ LOAN

Form 3034 1101
Form 3034 1101

Book:3678,Page:31

\" ""U'" ."' ..', ..~I

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 13 of 24
13
13

NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree follows:
NON-UNORM COVENAN. Borrower and Leder furter covenant and agee asas follows:
22. Acceleration; Remedies. Lender shaD give notice
Borrower prior to acceleration following
22. Acceleration; Remedie Lender shaD give notice to Borrower prior to acceleration following

Borrower's breacb of any covenant or agreement in tbis Security Instrument (but not prior to
Borrower's breach of any covenant or agreement in this Seurity Instrument (but not prior to
acceleration under Secion 18 unles Applible Law provides otherwis). The notice shall specify: (0)
acceleration under Section 18 unless Applicable Law provides otherwise). Tbe notice shallspecify: (8)
the default; (b) tbe action required to cure the default; (c) a date, not less than 30 days from the date
the default; (b) the action required to cure the default; (e) a date, not les than 30 days from the date
the notice is
Borrower, by which the default
failure to cure tbe
the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the
cured; and
default on or before the date specified in the notice may result in acceleration of the sums secured by
on or before tbe date specified in the notice
acceleration
sums seured by
default
th ecurity Instrument andand sale of tbe Property.The notice shaD further iiform Borrower ofof theright
ecurity Instrument sale of the Property, The notice shaD further inform Borrower the right
th
to rein ate after acceleration and the right to asrt in the foreclosure proceeding the non-existence of
to rein ate after acceleration and the Tight to assert in the foreclosure proceeing thenon-existence of
a de
t or· any other Borrower to acceleration and sale. If the default
is not cured on or
a de t or' any other defense of defense of Borrower to acceleration and sale. If the default is not cured on or
b re the a
in the notice,
require immediate payment in full of all
b re the a specifed specified in the notice, Lender at its option may require immediate payment in full of all
urns se ed this Security Instrument without further demand and may invoke the power of sale
urns sec ed b b this Security Instment without further demand and may invoke the power of sale
and an oth remedies permitted Applicable Law. Lender shaD be entitled to collect aU expenses
and an oth remedies permitted by by Applicable Law. Lender shaD be entitled to collect aU expens
ed Ruing the remedies provided in this Section including, but not limited to, reasonable
ed i Ruing the remedie provided in this Setion 22,22, including, but not limitedto, reasonable
attorne 'r:
attorne 'i: an osts oststitle evidence.
of of title evidence.

23. Release. Upon payment of all sums secured by this S S urit In
In~uu!GJ:nN!,A'I.I~~
23. Release Upon payment of all sums seur by this
urt In~UUIM'~~
cancel this Security Instrument. If Trustee is requested to release th Sec
to releae th Sec
cacel
Securty Instrment. If Truste is reueste
debt secured by this Security Instrment shall be surrendered to Tru!;u:;I;...J;:pv,
debt seured by this Securty Instrument shall be surendered to Tru1>~"""''V,
Tru
costs. Lender may charge Borrower a fee for releasing this Security InsIns ent, but
ent, but
costs. Lender may charge Borrower a fee for releaing this Securty
third party for services rendered and the charging of the fee is is permitt unde
third pary
service rendered
the charging of the fee penniued
24. Substitute Trustee. Lender may from time to time remove Trustee and a
r
to any Trustee appointed hereunder by an instrument recorded in the county in which tnl r1ecuri~) Ins menl
is recorded. Without conveyance of the Property, the successor trustee shall succeed to a1l1heJitlb. wet .
duties conferred upon Trustee herein and by Applicable Law.
25. Attorneys' Fees. Attrneys' fee must be reasonable.
25. Attorneys' Fee. Attorneys' fees must reanable.

DOC #:523B33
DOC #:523B33

S-6A(NC) (01101
.-6A(NC) (01101
®

~

APPL #.7000466121
APPL # ,7000466121
Page 13 of 15
Page 13 of 15

~ LOAN ~:6612432471
~LOAN ~: 6612432471

lnillal~: ""'?
'n'I'a'~: ~~ ~
"""?

Form 3034 1/01
Form 3034 1/01

Book:3678,Page:31
Book:3678.Page:31

\I-Q~'W

I"' •

..."

... ..,.,

\I-Q~'W I"'. .. ....1

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 14 of 24

11

11

BY SIGNING UNDER SEAL BELOW, Borrwer acpts and agree to the terms and covenants
BY SIGNIG UNDER SEAL BELOW, Borrower accepts and agrees to the tes and covenants
contained in this Security Instrent and in any Rider executed by Borrower and recorded with it.
contaned in this Securty Instrument and in any Riderexecute by Borrwer and recrded with it.
Witnesses:
Witnesse:

_______________________
________________________

Arthur Nadel
Arthur Nadel

(Sea)

(S~)

-Borrower
-Borrower

~fNl-lLl~'""""(4~S.l.a:o\~=_'=..:~~~p.L.)_=92C""'_"lc("'__'-- (Sea)
(S~)

"l!\lUS\h.~L ~) cdçf
J_
Marguerite J. Nadel
Marguer~te J - Nadel

(S~)

.Borrower
-Borrower

_______________________
________________________

(Sea)

(S~)

.BOrTower
-BOrTower

(Sea)
(Seal)
-Borrower
-Borrower

(Seal)
(Sea)
·Bonower
.80no",er

DOC 1/:523634
DOC /I: 523634

~6A(NC) (0110)

G-6A(NC) (0110)
~

APPL ":1000466121
APPL II; 1000466121
Page 14 gf 15
Page 14 gf 15

LOAN /1:6612432411
LOAN 1/:6612432471

Form 3034 1/01
Form 3034 1/01

Book:3678.Page:3'
Book:3678.Page:3'

\rClUt:O tv
L""t/
\rCll;Ji: tv v. L""l
Vol

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 15 of 24

/5
15
STATE OF NORTH CAROLINA,
STATE OF NORTH CAROLINA,
BUNCOMBE
County ss:
BUNCOMBE County ss:
I, JOHN R. ROSE
i, JOHN R. ROSE
.,State of NorthCaolina. do hereby
a Notary Public the County of BUNCOMBE
State Nort Carolina. do hereby
a Nota Public ofof the Countyof BUNCOMBE
certify that Arthur Nadel, Margueri te J. Nadel, Husband and wife
cerúfythat Arthur Nadel, Margueri te J. Nadel, Husband and wife

y appeared before me this day and acknowledged the due execution of the foregoing instrent.
y appeed before me this day and acknowledged ile due execuúon of the foregoing instrument.
Witne hand andhand and official seal this 14TH day 14TH
this
day of JUNE, 2004
of
JUNE, 2004
Witne s s
offcial sea

4/18/2006

- '\~\\\\\III1III//~
~ 1l~R.RO~ ~

~~ .
~
~. · . . ~N Publ'
~ lAb~- Diary ie
:: ~
2? . ~O Ill'.
= . ,0" ~v ;:
..r_. =
. vB\.' . ~š'
,~
~\\~

d

County ss:

ST ATE OF NORTH CAROLINA,
STATE OF NORTH
The foregoing certificate of ~
The foregoing certca of ~
a Notary Publicof the County of
a Nota Public of the County of
is certified 10 be correct
is cerúfied to be correct.
This
14~
day of J..' . .

NC

"This 14~ day of ~

DOC #:523835
DOC 11:523835
_6A(NC)
ca-6A(NC) (0110)
~-6A(NC) (0110)
®
11

APPL #:1000466121
APPL II: 1000466121

Pag.15011S
Paga150115

~JLOAN #:6612432471

~JLOAN
Inllial.:Í4_~
Inllial.:""~~,,,,-.....l(
.

#:6612432471
Form 3034 1/01
Form 3034 1/01

Book:3678,Page:31
Book:3678,Page:31

\.."9" "" Vi £'l)

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 16 of 24

I I (.I
(.I

;AITT ACHM
;A fACHMENT)

ADJUSTABLE RATE RIDER
ADJUSTABLE RATE RIDER

(1 Year LIBOR Index Rate Caps Fixed Rate Conversion Option)
(1 Year LIBOR Index --Rate Caps - -Fixed Rate Conversion Option)
(Assumable during Life of Loan)
(Asumable during Life of Loan)

S ADJUSTABLE RATE RIDER is made this

S ADJUSTABLE RATE RIDER is made Ulis 14TH day

14TH dayof
of

JUNE, 2004 ,and
JUNE. 2004
,and

IS corpor
. to and shall be deemed amend and supplement the Mortgage. Deed Trust, or Security
is' corpor . to and shall be deeed toto amend and supplementuie Mortage. De of of Trust,or Securty

eed (the 'Secun Instrument") of the same date given by the undersigned (the "Borrower") to secure the
ee (Uie 'Secun y y Instrument") of the same date given by the undersigned (Ule "Borrower") to seure the
Borrow'sjustable Rate Note (the "Note") to to Branch Banking and Trust Company
uustable Rate Note (Ule "Note") Branch Banking and Trust Company
Borrow's

at:

e date and covering me property descrbe in the Security Instrment and locte
e date and covering the property described in the Security Instrument and located
ere k Road, Fairview, NC 28730
ere k Road, Fairview, NC 28730

FOR
IN THE
ALLOWING FOR CHANGES IN THE

A. INTEREST RATE AND MONTHLY PA YM YM HAN S
HAN S
A. INTEREST RATE AND MONTHLY PA
The Note provides for an initial interestinterest rate of ~. S %. The Note provides for
The No.. prvid.. ¡", "'. initial rate Of@'S%'TheNoteproVidesfor
changes in the interestinterest monthlyand the as fo
:
~
changes in the rate and the rate payments monthly payments as fo : ~

~

4. INTEREST RATE AND MONTHLY PA YMENT CHANG
4. INTEREST RATE AND MONTHLY PA YMENT CHANG ~
(A) Change Dates
(A) Change Dates
The initial interest rate rate ipay may change on the rust day of day ofu u y ,y , 00
1i
The initial interest I will wil pay may change on the rirst
00
may change on that day every 12th month thereafter, Each date ondate on which in rr co Id
which
in
rra co Id
may change on that day every 12th month thereater. Each
called a "Change Date,"
0

called a "Change Date." 0

DOC /I: 533491 APPL #: 7000466121 LOAN #:n:6612432471
APPL n:7000466121
LOAN 6612432471
DOC n:533491
MULTISTATE CONVERTIBLE ADJUSTABLE RATE RIDER·1 Year UBOR Index (AuumatJ
MULTISTATE CONVERTIBLE ADJUSTABLE RATE RIDER.1 Year UBOR Index (AuumatJ
-- Freddie Mac UNIFORM INSTRUMENT
Freddie Mac UNIFORM INSTRUMENT

\

O.;857R (0108)
Form ä:~'
O.;857R (0108) Forma:~. \
Page 1 0161 016 Initials' N
Initials'
Page
N
VMP MORTGAGE FORMS _ [phone] UHSO 0108
UHSO 0108
VMPMORTGAGE FORMS _ [phone]

Book:3678,Page:31
Book:3678, Page:31

\rø~t1 '.1. VI. £.""J

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 17 of 24

11
11
(A TI ACHM
(ATI ACHMENT)

(8) The Index
(B) The Index
Beginning with thefust Change Date. my interet rate wil be baed on an Index. The "Index" is the
interest rate will be based on an Index. The "Index" is the
Beginning with thefust Change Dale,
ne ear London Interban Offered Rate rUBOR ") which is the average of interban offered rate for
ear London Interbank Offered Rate ("UBOR ") which is the average of interbank offered rateS for
ne

one-y
U.S. dollar-denominated deposits the London maret, as published in The Wall Street Journal.
one-y U.S. dollar-denominate deposits in in the London market, as published in The Wall StreetJournal.
The
t recent Index figure available of the date 45 days before eah Change Dale is caed the "Current
The t recent Index figure available asas of the date45 days before eachChange Date is calledthe "Curent
In ex."

If th Index is no longer avaiable, the Note Holder wil choose a new index which is based upon

comp Ie' ormaon. The Note Holder wil give me notice of this choice.
) tion of Changes

new interest rate by adding
B re eah hange Date. the Note Holder wil caculate my new interest rate by addig

Two and ne Q e r pecentage points ( 2 . 2 5 ~) to the

curen\finnddeeæx,x. ye ote older wil .then round the result of this addition to the neaest one-eighth of one

percentag~~y'Itj . 25%) Subjet to the limits state in Section 4(D) below, this rounded amount wil be my

new interest r until th n e Dat.

The Note Olde:; thte ine the amount of the monthy payment that would be suffcient to
repay the unpaid p' i tha ex ect e at the Change Date in full on the maturty dat at my
new interest rate in subs ti y uii p ): ts e uIt of this C3culation wiU be the new amount of my
monthly payment.

(D) Limits on Interest Ra a es
The interest rate I am req ired
6.625 % or less th
increa or decreaed on any single Ch

( 2. 000 %) from me rate 0

irst Change Date will not be greater than
2. 25
ereafter, my interest rate will never be
Tw
percentage point(s)
N'PlrJ'-.D<.Vmg
\"""~""''''Vlmg for the preceding 12 months. My

imerest rate wil never be greater than 9.6 5% (th 'Maimum Rate").
(E) Effective Date of Changes

My new inteest rate wil beome effective on g~. I w pay the amount of my new
monthly payment begining on the first monmly payment the ge atee amount of my

monthly payment changes agai. __"-

(F) Notice of Changes
The Note Holder wil deliver or mail to me a notice of any chang' 'terest te and Ule amount of
my monthly payment before the effective date of any chage. The notice w I include fo aUo equir by

law to be given to me and also the title and telephone numbe of a peson o. er y uestion I

may have regarding the notice.

DOC 11,533492
DOC #:53'3492

~857R (010S)
~857R (0108)

APPL #:7000~66121
APPL II: 7000~66121

LOAN ~:6612432471
LOAN ~,6612432471
Page 2 or 6
Page 2 01 6

InitiaI5:~Y
InitiaI5:~Y

Form 3147 8/01
Form 3147 8/01

Book:3678,Pago:3
Book:3678,Page:3

(Page 1ti of Z4)

(Pilge 1t of Z4)

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 18 of 24

ii
I~
~AITACHMENT)
~A IT ACHM

B. FIXED INTEREST RATE OPTION
B. FIXED INTEREST RATE OPTION
The Note provides for the Borrower's option convert from an adjusiable interest rate with interest rate
The Note provides for the Borrower's option to to convert from an adjustable interestrat with inteest rate
im' a a fIxed interest rate, as foUows:
im' to to fixed interest rate. as follows:

DOC ":5334.91
DOC ":533491

~pp~ ft:1000466121
ft: 1000466121

~pp~

~OAN ~:6612432471
~OAN ~: 6612432471

Initials: ()~..
G-S57R (0108)

G-S57R (0108)
®
ø

Page 3 0/6
Page 3 01 6

Form 3147 8/01
Form 3147 B/01

Book:3678.Page:3
Book:3678.Page:3

(l-'age 11(] OJ ':l'l) ,
(lage 11( OJ ':£'1) ,

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 19 of 24

,~
, ci

,A IT ACHN1
,A ITACHMENT)

C. TRANSFER OF THE PROPERTY OR BENEFICIAL INTEREST IN BORROWER
C. TRANSFER OF THE PROPERTY OR AA BENEFICIAL INTEREST INBORROWER
1. UNTIL BORROWER EXERCISES THE CONVERSION OPTON UNDER THE
1. UNTIL BORROWER EXERCISES THE CONVERSION OPTION UNDER THE
ITIONS STATED IN SECTION ABOVE, UNIFORM COVENANT 18 OF THE SECURITY
ITIONS STATED IN SECTION BBABOVE, UNFORM COVENANT 18 OF THE SECURITY
MENT IS AS FOLLOWS:
MENT IS AS FOLLOWS:

charge a reaonable fee as a
charge a reasonable fee as a
rna also require the trsferee to
rna also require the transferee to
obligates the trsferee to keep
obligates the transferee to keep
ecurty Instrument. Borrower wil
ecurity Instrument. Borrower will
ent unless Lender releae
eot unless Lender release

sign an assumption agreement that is
aU the promises and agreements made in
continue to be obligated under the Note an
Borrower in writing.
iIrniJe(llin~
If Lender exercises the option 10 require iml:iJe<fuU~
Borrower notice of acceleration, The notice shall provide a
the date the notice is given in accordance with Section 15 'thin
sums secured by this Security Instrument If Borrower fails
expiration of this period, Lender may invoke any remedies permi
without further notice or demand on Borrower.

DOC #:533494
DOC #:533494

APPu #:7000466121
APPu #:7000466121

uOAN #:6612432471
uOAN #:6612432471

Initials: :'S?~
~ ~ '"~

Initials:

G·857R (0108)

®
G.S57R (0108)
l!

Page 44016
Page 016

Form 3147 S/01
Form 31478/01

Book:3678,Page:3'
Book:3678,Page:3'

wage;," OJ':l4)

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 20 of 24

'-¿û

:,AITACHMENT)
:.A IT ACHEN

2. AFTER BORROWER EXERCISES THE CONVERSION OPTION UNDER THE
2. AFTER BORROWER EXERCISES THE CONVERSION OPTON UNDER THE
CONDITIONS STATED IN SECTION B ABOVE, UNIFORM COVENANT 18 OF THE SECURITY
CONDITIONS STATED IN SECTION B ABOVE, UNIFORM COVENANT 18 OF THE SECURIY
RUMENT SHALL BE AMENDED TO READ AS FOLLOWS:
RUMENT SHALL BE AMENDED TO READ AS FOLLOWS:

DOC
DOC

1I,53:)~95
1I,53::~9S

O®857R (0108)

4Dø857R (0108)

APPL i:1000466121
APPL l; 1000466121

LOAN ":6612432471
LOAN II: 6612~32471

Page 5 of 6
Page 5 of 6

inilials:~ "J~
Inilials:~:'i<~

Form 3147 8/01
Form 31478/01

Book:3678,Page:3
Book: 3678, Page:3

\:a~o L

J

VJ' £.'"tl

\:ø~o L J VJ' £.'"l

,~~-

,~~-

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 21 of 24

221
I
:,,1\ TTACHMENT)
j\ TTACHM

BY SIGNING BELOW, Borrower accepts and agrees to the teons and covenants contained in this Adjustable
BY SIGNING BELOW, Borrower accpts and agrees to the terms and covenants contaned in this Adjustable

Rate
er.
Rate . .er.

(Sea)
·Borrower
.Borrower

(Seal)
(Sea)

-----7~__~~_________
_ _----,,<--_-.::::=.~----

-t-~\-¥-'I-j~......,..CU,,~& ~\"'-~.lV><--.;;;~,,",,",,·~·
W=-=~=.:=.·
-f-~\+-'I-j~.....,...CU,,~& ~\"'-~.lVc......=~::;..>.<O··-=-·
W=~=",-'

(Seal)
(Sea)
_(Seal)
_~\~ Q0~lh8~'JL .ivsx . _
Marguerite J. Nadel
Marguerite J. Nadel

-ßOlTower
-Borrower

_ _ _ _ _ _ _ _ _ _ _ _(Sea)
_ _ _ _ _ _ _ _ _ _ _ _ (Sea1)
(Seal)
.Borrower
-Borrower

-Borrower
-Borrwer

_______________________ (Sea)
___________________ (Seal)
-Borrwer
-Borrower

______________ (Seal)
(Sea)
__~~~-____----------(Seal)

~~~~

-Borr

DOC U:533406
DOC U: 533406

•

.;857R (0106)

G.857R (0106)
~

APPL 1000466121
APPL #:#,1000466121

er

Page 6 016
Page 6 016

-Borrower
-Borrower

rm 31478/01

Book:3678,Page:3
Book: 3678. Page:3

(page z"

~-

QT' 24) .

(page ü 01' 24) .

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 22 of 24

J-2

[ATIACHMEN1)
(ATIACHNI

SECOND HOME RIDER
SECOND HOME RIDER
THIS SECOND HOME RIDER is made this·

THIS SECOND HOME RIDER is made this. 14TH day

14TH

day of JUNE, 2004
of JUNE, 2004

and is incorporated inlo and shal be deemed to amend and supplement the Mortgage, De
and is incorprate into and shall be deemed to amend and supplement the Mortgage, Deed
of T
or Security Deed (the "Security Instrument") of sae dae given by by undersigned (the
of T or Securty De (the "Security Instrment") of thethe same date given the the undersigned(the
"B rrower,
ether there are one or more persons undersigned) secure Borrower's Note to
"B rrower. ether there are one or more pens undersigned) to to secureBorrower's Nore to
ranch anki
and Trust Company
ranch anki 99 and Trust Company

the Property describe in the Securty Instrument (the
the Property described in the Security Instrment (the

Fairview, NC

28730

[Property Address I

In additio
further covenant an
the following:

8. Borrower's Loan Application. Borrower sh be in e ult if, du ' g the Loan application
process, Borrower or any persons or entities ac
t the 'ec 'on f
er or with
Borrower's knowledge or consent gave materia11y false, m' learn
statements to Lender (or failed to provide Lender with materi info
Loan. Material representations include, but are not limi
Borrower's occupancy of the Property as Borrower's second home.
DOC n:S19641
APPL #:7000466121
MULTISTATE SECOND HOME RIDER - Single Family
Fannie MaelFreddie Mac UNIFORM INSTRUMENT
Page 1 of 2
UH$O 0011
UH$O 0011
VMP MORTGAGE FORMS - [phone]
G®365R (9904)
(9904)
_,Ð365R

Book:3678,Page:~
Book:3678, Page:~

<'4]
wage'!'", or <'4]

wage ¿-. 01'"£4) ,

..

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 23 of 24

23
23
;A l"T ACH
;Al"TACHMEN1)

BY SIGNING BELOW, Borrower accepts and agree to the tenns and provisions contained in this
BY SIGNING BELW, Borrower accepts and agrees to the tenns and provisions contaed in this
SecondHome Rider.
Second Home Rider.
J....L;~~~~~~~
J....Lj~~~~~~~ _ _ _ {Seal)

(Se2)

• Borrower

____~~__~~---------~eaI)
~~--~~--------~eaI)
(Sea)

&~b~)~~L !Jcsd.C£
Marguerite J. Nadel

(Se2)
- Borrower

_______________________

(Sea)

~eaI)
~eaI)

.-Borrower
Borrower

- Borrower

_________________ (Sea)
(SeaI)
----------------~--4-~--~~_~-------------------------------B-O~O~~
- Borrower
- Borrower

-l--~~--_ _ _ _ _ _ _ _ _ _ _ (Sea1)
(Sea)
-+~~--------(Sea1)

. Borrower
- Borrower

DOC 11:519842
DOC 11:519842
~365R (9904)
_365R
~365R (9904)

APPL 11:7000466121
APpL II: 7000466121
APPL

Page 2 012
Page 2 012

Book:3678.Page::
Book:3678.
Book:3678. Page::

wage £4

f.j'. '~'1}

wage £4 i." '¿'Ii'

.

Case 8:09-cv-00087-RAL-TBM

Document 99-8

Filed 03/27/2009

Page 24 of 24

.21
EXHffiITA
EXHfflTA
way of
Garrn Creek
BEGINNING at an set in the center of
the sixty (60) foot right of
BEGINNING at an iron pin iron pin set in the center of the sixty (60) foot right of way of Garren Creek
Road (NCSR 2806) and from the point and place thus established; runs with the right of way of Garren
Road (NCSR 2806) anù from the point and place thus established; runs with the right of way of Garen
Creek Road, 52 deg_ 10' 53" 10' 194.22 feet to an feet to set.
thence North 49 deg. 39'02" East
Creek Road, NorthNorth 52 deg. East 53" East 194.22iron pin an iron pin set, thenceNorth 49 deg. 39'02" East
62.33 feet an ìron pin set; thence leaving the center line of
Garren Creek Road and runs North 71 deg.
62.33 feet to to an iron pin set; thence leaving the center line of Garren Creek Road and runs North 71 deg.
27'40" East 52.91 feet and iron pin set in the right of way of a a gravel drive, more particularly
27'40" East 52.91 feet toto and iron pin set in the right of way of gravel drive, asas more particularly
describedin Decd Book 2018 atat Page 367 of the BuncombeCounty, North Carolina Register's Offce;
described in Decd Book 2018 Page 367 of the Buncombe County, North Carolina Register's Office;
feet to an
thence continuing within said right of way ofgravel drive North 54 deg. i deg. II' 40" East 26.53feet to an
way of a a gravel drive North 54 I' 40" East 26.53
thence continuing within said right of
iron pin, thence North 42 deg. 07' 20" East441.12 feet to rebar setset in the center ofthat twenty (20) foot
that twenty (20) foot
l.2 feet to a a rebar in the center of
iron pin, thence North 42 deg. 07' 20" East
existing gravel right of way as described in Deed Book 1325 at Page 165 of the Buncombe County,
existing gTavel right of way as described in Deed Book 1325 at Page 165 of the Buncombe County.
North Carolina Register's Office; thence continuing within that said twenty (20) foot right of way the
North Carolina Register's Office; thence continuing within ihat said twenty (20) foot right of way the
following three (3) calls and distances: South 74 deg. 14' 10" East IIl.lI teet to an iron pin; thence
following three (3) calls and distances: South 74 deg. 14' 10" East 111. I feet to an iron pin; thence
South 47 deg. 54' lO"East 74.41 feet to an iron pin set; thence South 27 deg. 34' 10" East 91.3 feet to
South 47 ùeg. 54' lO"East 74.41 feet to an iron pin set; thence South 27 deg. 34' 10" East 91.13feet to
an ir n pI set in the common line of the Patricia R. Myers property as described in Deed Book 1325
an ir n pI set in the common line of the Patricia R. Myers property as described in Deed Book 1325
at
at ge ge 016 the Buncombe County, North Carolina Register's Offce; thence continuing with the
016 of of the Buncombe County, North Carolina Register's Office; thence continuing with the
mmo me of
said Myers property, North 53 deg. 54'30" West 55.41 feet to an iron pin set; thence
55.41 feet to an iron pin set; thence
mmo me of said Myers property, North 53 deg. 54'30" West
contil ing alo
contii ing alo th th commonline of the said Myers property, North 53 deg. 54'30" West 194.09 feet
commonlíne of the said Myers property. North 53 deg. 54' 30" West 194.09 feet
o a I "chcs ut ut snag. said point being the southernmost comer of of the saidMyers property; thence
a a snag, said point being the southernmost comer the said Myers property; thence
e. opel1y and along the commonline of the Ted Ted E. Linn property described
i . vin e. opei1y and running running along the commonline of the E. Linn property asas described
8 ge ge 0133 of the Buncombe County, North Carolina Register's Office, South 18
the Buncombe County, North Carolina Register'S Office, South 18
i 8 at at 0133 of
st 39. fee 0 iron pin set; thence continuing along the said Linn line, South 24 deg.
st 39. fee 0 an an iron pin set; thence continuing along the saidLinn line, South 24 deg.
103 0 t t an pin pin thence leaving the said Linn line and runs along the
31' 06" We. 103 0 eeteetan iron iron set: set: thence leaving the said Linn line and runs alongthe
Alan
roperty as described in Book 201S at at Page 0367 of the
commonline 0
coinmonline 0 Älan roperty as described in Deed Deed Book 201S Page 0367 of the
aro~i Rister's North 52 deg. deg. 0 I' 25" West 365.42 feet a pin
Buncombe County, 0
BuncombeCount, 0 aro~ì Rister's Offce,Office, North 52 0 I' 25" West 365.42 feet toto a pin
set in the eastern margO f tha 33 foo gr e e. t ofof way as described in Deed Book 2018 at Page
. t way as described in Deed Book 2018 at Page
set in the eastern margO
f tha
foo gr
grav
gh
w y, North 52 deg. 0 I' West 40.05 feet to pin
0367; thence crossing said
0367; thence crossing said 0 0 grav gh w y, North 52 deg, 01' 25" 25" West 40.05 feet toaapin
ay; running with the western margin
set in the western margin
setin the western margin of .of3 . 3 grave - .ay; thencethence running with the westernmargin
or said 30 foot gravel right of way t ollow' r ( ca s and distances:ca s and distances: South 2 deg. 30' 02" East
said 30 foot gravel right of way t
r(
of
South 2 deg. 30' 02"
South 3 deg. 4S' 07" West 68.57 feet:
93.22 fcet: thence South 0.0 deg. 24' i" W sl 07 fe th
9322 feet; thence South 0.0 deg. 24' 1" W st 55 07 fe tt th South 3 deg. 4S' 07" West 68.57 feet;
thence SOllth 3 3 deg. 23'38" East 48.36 iron i et the ine of of the above describedMcNab
Iron i et the ine the above described McNab
thence South deg. 23'38" East 48.36
ego 16' 10" 11 i .63 feet to an iron
propel1y; thence leaving said gravel right of of ay; ru 0 h ego 16' 10" WestWest 111.63 feet toan iron
propei1y; thence leaving said gravel right ay; ru
pin set in the northeusternmost corner of theof the . obe sobe s property,described inin DeedBook
. property, as as described Deed Book
pin set in the northeasternmost corner
1533 al Page 295 of the Buncombe County, No NoCaro'n egO r'sr's Office and runs withthe
1533 al Page 295 of the Buncombe County,
Caro'n egO Offce and runs with the
commonlinc of the said Roberts property North 56 de 38 0 "W hr gh gh on pin set a total of
cominonlinc of the said Roberts property North 56 de 38 0 "W hr
.
294.84 feet to the point and place of the BEGINNING; contui jng .2 acr, eo less, as shown on
the BEGINNING; contai ing .2
294.84 feet to the point and place of
an unrecorded survey performed by Wallace S. S. McAbee, PLS.f f l:ee nd A ociates, PA. entitled
an unrecorded survey performed by Wallace McAbee, PLS,
Survey for William P. P. Ayers wife, Judith Judith K. Ayers. dated 2.
Survey for Willam Ayers and and wife, K. Ayers, dated

19ht of
Together With and Subject To a perpetual and nonexclusive e
nt a
ingress, egress, and regress and installation of utilities, as shown on the abo e r~ence su y, an
described in Deed Book 2018 at page 368 of the Buncombe County, North ear . a R is s Offi e,
pr
30 feet in width for the existing private road as it leads from the above described prvp'goo\Juv
lands of Alan L. McNab, and others to Garren Creek Road (NCSR 2806); together
maintain and improve said private road.
Together With and Subject To is a perpetual and nonexclusive easement and right of way for
Together With and Subject To is a perptual and nonexclusive easement and right of way for
ingress, egre~s, and regress and installation of utilities, as shown on the above referenced survey, and
ingress. egress, and regress and installation of utilities, as shown on the above referenced survey, and
described in Deed Bookat Page 165Page 165 of the Buncombe County, North Carolina Register's Office,
1325 at of
the Buncombe County. North Carolina Register's Offce,
described in Deed Book 1325
20 feet in widlh for the existing private road as it leads from the above described property to and across
20 feet in widih for the existing private road as it leads from the above described property to and across
lands of Patricia R. Myers, and others to Garren Creek Road (NCSR 2806); together with the right to
lands of Patricia R. Myers. and others to Garn Creek Road (NCSR 2806); together with the right to
maintain and improve said private road.
maintain and improve said private road.
Together With and Subject To any and all existing rights of way and easements of record or as
Togethcr With and Subject To any and all existing rìghts of way and easements of record or as
shown on the aforesaid unrecorded survey, including those restrictive covenants recorded in Deed Book
shown on the aforesaid unrecorded survey, including those restrictive covenants reorded in Deed Book
2018 at Page 367 of the Buncombe County, North Carolina Register's Office.
2018 at Page 367 of the Buncombe County, North Caolina Register's Ofce.
And being all of thut property described in Deed Book 2811 iat Page 220 of the Buncombe
And being all of that property described in Deed Book 281 at Page 220 of the Buncombe
COUllty,y, NorthCarolina Register's Oflice; reference 10 which is hereby lIlade and incorporated for a more
Counl Nort II Carolina Register's Oflce; reference to which is hereby lIade and incorporated for a more
parliclilar description of said propcny.
pariit:ular description of said propel'y.

Book:3678.Page::
Book:3678, Page:,

EXHIBIT C
DECLARATION OF RICHARD MILLER
Securities and Exchange Commission v. Arthur Nadel et al.
U.S. District Court, Middle District of Florida
Case No. 8:09-cv-0087-T-26TBM

Borrower: LAUREL PRESERVE LLC
Account Number:

---"9""-5Lll,,,60=02,,,3,-,2~_ _ _ _ _ _ __

Note Number: -'0"'0,,00"-1<--_ _ _ _ _ _ _ _ _ __

BB&T

Address: 131 GARREN CREEK RD
FAIRVIEW. NC 28730-7604

"A..,S"H"'E'-'V"'IL"'L"'ElL_ _ _ _ _ _ _ _ _ , North Carolina
Date: May 1, 2007

PROMISSORY NOTE
THE UNDERSIGNED REPRESENTS THAT THE LOAN EVIDENCED HEREBY IS BEING OBTAINED FOR BUSINESS/COMMERCIAL OR
AGRICULTURAL PURPOSES AND NOT FOR PERSONAL. FAMILY, OR HOUSEHOLD PURPOSES. For value received. the undersigned, jointly and
severally. if more than one, promises to pay to BRANCH BANKING AND TRUST COMPANY, a North Carolina banking corporation (the "Bank"), or
order, at any of Bank's offices in the above referenced city (or such other place or places as may be hereafter designated by Bank), the sum of

THREE HUNDRED NINETY-FOUR THOUSAND DOLLARS & 001100
394,000.00

), in immediately available coin or currency

-;-:;--;-;-".-.,.=-,-_-;-:,---:-_ _ _ _ _ _ _ _ _ _ Dollar5 ($

of the United States of America.

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Borrower shall pay a prepayment penalty as set forth in the Prepayment Penalty Addendum attached hereto.

Interest shall accrue from the date hereof on the unpaid principal balance outstanding from time to time at the:

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Fixed rate of

% per annum.

W Variable rate of the Bank's Prime Rate plus

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0.250

% per annum to be adjusted Daily

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as the Bank's

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the interest rate will not exceed a(nl
fixed
average maximum rate of
% or
Prime Rate changes. If checked here
% or the Bank's Prime Rate; an'a'tJ::e interest rate will not decrease below a fixed
a Dfloating maximum rate of the greater of
%. If an average maximum rate is specified, a determination of any required reimbursement of interest by Bank
minimum rate of

D

D

will be made:
Fixed rate of

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when Note is repaid in full by Borrower
annually beginning on
% per annum through

which automatically converts on

to a variable rate equal to the Bank's Prime Rate plus _ _ _ _ _ __ % per annum which shall be adjusted
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ as such Prime Rate changes.

D _________________________________________________
D
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Principal and interest are payable as follows
Principal (plus any accrued Interest not otherWise scheduled hereinl}
d
. f II
IS ue In u at maturity on
Principal plus accrued interest
------------------

[X]

Payable In consecutive

Monthly

Installments of

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r;;l

LX.J

Pnncipal
}
.
commenCing on 06/05/2007
Principal and Interest
-'-''-'.==''----------

and continued on the same day of each calendar period thereafter, in

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59

equal payments of $ 3,796.19

, with one final payment of

all remaining principal and accrued interest due on 05105/2012
Choice Line Payment Option: 2% of outstanding ba-I"an"'c".=is""p-'-a"ya-bC'l:-e-m-o-n-thC'l-y-C-O-m-m-e-n-c:-in-g-O-'n
and continuing on the same day of each month thereafter, with one final payment of all remaining principal and accrued interest due

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on __~____-:-__~~________________
Accrued interest is payable

commencing on ______________ and continuing on the same day of

each calendar period thereafter, with one final payment of all remaining interest due on

D
D
D
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Bank

reserves

the

right

in

its

----------------------------

sale discretion to adjust the fixed payment due hereunder
on
and continuing on the same day of each calendar period thereafter, in order to maintain an
amortization period of no more than _,-_ _ months from the date of the initial principal payment due hereunder. Borrower understands the
payment may increase if interest rates increase.
Prior to an event of default, Borrower may borrow, repay, and reborrow hereunder pursuant to the terms of the Loan Agreement, hereinafter
defined.

Borrower hereby authorizes Bank to automatically draft from its demand deposit or savings account(s) with Bank or other bank, any
payment(s) due under this Note on the daters) due. Borrower shall provide appropriate account number(s) for account(s) at Bank or other
bank.
The undersigned shall pay to Bank a late fee in the amount of four percent (4%) of any installment past due for fifteen (15) or more
days. When any installment payment is past due for fifteen (15) or more days, subsequent payments shall first be applied to the past due
balance. In addition, the undersigned shall pay to Bank a returned payment fee if the undersigned or any other obligor hereon makes any
payment at any time by check or other instrument, or by any electronic means, which is returned to Bank because of nonpayment due to
non sufficient funds.
All interest shall be computed and charged for the actual number of days elapsed on the basis of a year consisting of three hundred
sixty (360) days. In the event periodic accruals of interest shall exceed any periodic fixed payment amount described above, the fixed
payment amount shall be immediately increased, or additional supplemental interest payments required on the same periodic basis as
specified above (increased fixed payments or supplemental payments to be determined in the Bank's sole discretion), in such amounts and
at such times as shall be necessary to pay all accruals of interest for the period and all accruals of unpaid interest from previous periods.
Such adjustments to the fixed payment amount or supplemental payments shall remain in effect for so long as the interest accruals shall
exceed the original fixed payment amount and shall be further adjusted upward or downward to reflect changes in the variable interest
rate; provided that unless elected otherwise above, the fixed payment amount shall not be reduced below the original fixed payment
amount. However, Bank shall have the right, in its sale discretion, to lower the fixed payment amount below the original payment amount.
This note ("NOTE") is given by the undersigned in connection with the following agreements (if any) between the undersigned and
the Bank:
Deed(s) of Trust 1 Mortgage(s) granted in favor of Bank as beneficiary 1 mortgagee:

[KJ dated

05/0112007

granted by

D

in the maximum principal amount of

$~3"9",4",0",0",0",.,,,00,,-_________________

LAUREL PRESERVE LLC

dated _________________ in the maximum principal amount of $ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
grantedby ___________________________________________________________________________________________________

ACCOUNT# / NOTE#

9511600232

1472NC

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00001

Page 1 of 4

Security Agreement(s) granting a security interest to Bank:

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dated

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dated _ _ _ _ _ _ _ _ _ _ _ ___ givenby ________________________~-----------------------------------

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Securities Account Pledge and Security Agreement dated ____________________________ , executed by

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Control Agreement(s) dated - - - - - - - - - - - - - - , covering

___________________________ givenby _________________________________________________________

D
D

D

Deposit Account(s)
Letter of Credit Rights

D
D

Investment Property
Electronic Chattel Paper

Assignment of Certificate of Deposit, Security Agreement, and Power of Attorney (for Certificated Certificates of Deposit) date'Qd_________
______________________ , executed by ____________________________________________________________________

o

__________________________________ ,executed
Pledge and Security Agreement for Publicly Traded Certificated Securities dated
by _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___

D

Assignment of Life Insurance Policy as Collateral dated _____________________________ , executed by

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Loan Agreement dated ______________ , executed by Borrower and

0

Guarantor(s).

0 _____________________________________________________________________________________________________________
0 __________________________________________________________________________________________________________
All of the terms, conditions and covenants of the above described agreements (the

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Agreements") are expressly made a part of this Note

by reference in the same manner and with the same effect as if set forth herein at length and any holder of this Note is entitled to the benefits of
and remedies provided in the Agreements and any other agreements by and between the undersigned and the Bank.
No delay or omission on the part of the holder in exercising any right hereunder shall operate as a waiver of such right or of any other
right of such holder, nor shall any delay, omission or waiver on anyone occasion be deemed a bar to or waiver of the same or of any other right
on any future occasion. Everyone of the undersigned and every endorser or guarantor of this note regardless of the time, order or place of
signing waives presentment, demand, protest and notices of every kind and assents to anyone or more extensions or postponements of the time
of payment or any other indulgences, to any substitutions, exchanges or releases of collateral if at any time there be available to the holder
collateral for this note, and to the additions or releases of any other parties or persons primarily or secondarily liable.
The failure to pay any part of the principal or interest when due on this Note or to fully perform any covenant, obligation or warranty on this
or on any other liability to the Bank by anyone or more of the undersigned, by any affiliate of the undersigned (as defined in 11 USC Section
(101) (2)), or by any guarantor or surety of this Note (said affiliate, guarantor, or surety are herein called Obligor); or if any financial statement or
other representation made to the Bank by any of the undersigned or any Obligor shall be found to be materially incorrect or incomplete; or if any
of the undersigned shall fail to furnish information to the Bank sufficient to verify the identity of the undersigned as required under the USA
Patriot Act; or in the event of a default under any of the Agreements or any other obligation of any of the undersigned or any Obligor; or in the
event the Bank demands that the undersigned secure or provide additional security for its obligations under this Note and security deemed
adequate and sufficient by the Bank is not given when demanded; or in the event one or more of the undersigned or any Obligor shall die,
terminate its existence, allow the appointment of a receiver for any part of its property, make an assignment for the benefit of creditors, or
where a proceeding under bankruptcy or insolvency laws is initiated by or against any of the undersigned or any Obligor; or in the event the Bank
should otherwise deem itself, its security interest, or any collateral unsafe or insecure; or should the Bank in good faith believe that the prospect
of payment or other performance is impaired; or if there is an attachment, execution, or other judicial seizure of all or any portion of the
Borrower's or any Obligor's assets, including an action or proceeding to seize any funds on deposit with the Bank, and such seizure is not
discharged within 20 days; or if final judgment for the payment of money shall be rendered against the Borrower or any Obligor which is not
covered by insurance or debt cancellation and shall remain undischarged for a period of 30 days unless such judgment or execution thereon is
effectively stayed; or the termination of any guaranty agreement given in connection with this Note. then anyone of the same shall be a material
default hereunder and this Note and other debts due the Bank by anyone or more of undersigned shall immediately become due and payable at
the option of the Bank without notice or demand of any kind. which are hereby waived. From and after any event of default hereunder. interest
shall accrue on the sum of the principal balance and accrued interest then outstanding at the variable rate equal to the Bank's Prime Rate plus
5% per annum ("Default Rate") until such principal and interest have been paid in full, provided that such rate shall not exceed at any time the
highest rate of interest permitted by the laws of the State of North Carolina; and further provided that such rate shall also apply after judgement.
In addition, upon default, the Bank may pursue its full legal remedies at law or equity, and the balance due hereunder may be charged against
any obligation of the Bank to any party including any Obligor. Bank shall not be obligated to accept any check, money order. or other payment
instrument marked "payment in full" on any disputed amount due hereunder. and Bank expressly reserves the right to reject all such payment
instruments. Borrower agrees that tender of its check or other payment instrument so marked will not satisfy or discharge Its obligation under
this Note, disputed or otherwise. even if such check or payment instrument is inadvertently processed by Bank unless in fact such payment is in
fact sufficient to pay the amount due hereunder.
Unless otherwise required under a Loan Agreement, if applicable, and as long as any indebtedness evidenced by this Note remains
outstanding or as long as Bank remains obligated to make advances, the undersigned shall furnish annually an updated financial statement in a
form satisfactory to Bank. which, when delivered shall be the property of the Bank.

1472NC

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Page 2 of 4

The term "Prime Rate," if used herein, means the rate of interest per annum announced by the Bank from time to time and adopted as its
Prime Rate. The Prime Rate is one of several rate indexes employed by the Bank when extending credit, and not necessarily the lowest rate. Any
change in the interest rate resulting from a change in the Bank's Prime Rate shall become effective as of the opening of business on the effective
date of the change. If this Note is placed with an attorney for collection, the undersigned agrees to pay, in addition to principal, interest and late
fees, if any, all costs of collection, including but not limited to reasonable attorneys' fees. All obligations of the undersigned and of any Obligor
shall bind his heirs, executors, administrators, successors, andlor assigns. Use of the masculine pronoun herein shall include the feminine and the
neuter, and also the plural. If more than one party shall execute this Note, the term "undersigned" as used herein shall mean all the parties signing
this Note and each 01 them, and aJl such parties shall be jointly and severally obligated hereunder. Wherever possible, each provision of this Note
shall be interpreted in such a manner to be effective and valid under applicable law, but if any provision of this Note shall be prohibited by or
invalid under such law, such provision shall be ineffective but only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions 01 this Note. All of the undersigned hereby waive all exemptions and homestead laws.
The proceeds of the loan evidenced by this Note may be paid to anyone or more of the undersigned.
From time to time the maturity date of this Note may be extended, or this Note may be renewed in whole or in part, or a new note of different
form may be substituted for this Note, or the rate of interest may be modified, or changes may be made in consideration of loan extensions, and
the holder hereof, from time to time may waive or surrender, either in whole or in part any rights, guaranties, secured interest, or liens, given for
the benefit of the holder in connection with the payment and the securing the payment of this Note: but no such occurrence shall in any manner
affect, limit, modify, or otherwise impair any rights, guaranties or security of the holder not specifically waived, released, or surrendered in
writing, nor shall the undersigned, or any obligor, either primarily or contingently, be released by reason of the occurrence of any such event. The
holder hereof, from time to time, shall have the unlimited right to release any person who might be liable hereon, and such release shall not affect
or discharge the liability of any other person who is or might be liable hereon. No waivers and modifications shall be valid unless in writing and
signed by the Bank. The Bank may, at its option, charge any fees for the modification, renewal, extension, or amendment of any of the terms of
the Note permitted by N.C.G.S.g 24-' .1. In case of a conflict between the terms of this Note and the Loan Agreement or Commitment Letter
issued in connection herewith, the priority of controlling terms shall be first this Note, then the Loan Agreement, and then the Commitment Letter.
This Note shall be governed by and construed in accordance with the laws of North Carolina.

(SIGNATURES ON FOLLOWING PAGE)

1472NC (0610)

Page 3 of 4

BB&T
PROMISSORY NOTE SIGNATURE PAGE
Borrower: LAUREL PRESERVE LLC
Account Number:
Note Amount:

-.:9~5ulJ.IQ!600~2c1.32L_ _ _ _ _ _ __

Note Number: ---"O"OO",O,-,I~_ _ _ _ _ _ _ _ _ _~

$!....o3~9'!4~,OO~0"',~OO~_ _ _ _ _ _ _ __

Date:

05101/2007

Notice of Right to Copy of Appraisal: If a '·4 family residential dwelling is pledged as collateral for this Note, you, the undersigned, have a right to
a copy of the real estate appraisal report used in connection with your application for credit. If you wish to receive a copy, please notify in writing
the branch office where you applied for credit. You must forward your request to the Bank no later than 90 days after the date of this Note. In
your request letter, please provide your name, mailing address, appraised property address, the date of this Note, and the Account and Note
Numbers shown on the front of this Note.

IN WITNESS WHEREOF, the undersigned, on the day and year first written above, has caused this note to be executed under seal.

If Borrower is a Corporation:

WITNESS:
NAME OF CORPORATION

By: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)

Title: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
By: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)
Title: ___________________

If Borrower is a Partnership, Limited Liability Company, Limited Liability Partnership or
Limited Liability Limited Partnership:

WI?;l~f6JO

)

By:-'.&~~~~~~~~:_:_::_:_:_:_:_-____:_:c:_
ARTHUR NADEL

(SEAL)

GENERAL PARTNER OR MANAGER

B y : - - - - -_ _ _ _ _ _ _ _ _ _ (SEAL)
GENERAL PARTNER OR MANAGER

By: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)
GENERAL PARTNER OR MANAGER

WITNESS:

WITNESS:

If Borrower is an Individual
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)

Additional Co-makers
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)

1472NC

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EXHIBIT D
DECLARATION OF RICHARD MILLER
Securities and Exchange Commission v. Arthur Nadel et al.
U.S. District Court, Middle District of Florida
Case No. 8:09-cv-0087-T-26TBM

Ii!orkflo\'l flo. 2366240 j(-r'

'R~-

r

r-I I I I I I -I I I I I I I-I I I I I I I I I ~I I I I I~I I I I I I I I I I I I \

- . '\

~IIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIII~ 11111111111111111111111111111111111111

I

.

Doc 10:
019980350009 Type: CRP
Recorded: 05/07/2007 at 03:14:22 PM
Fee Amt: $38.00 Page I of 9
Workflow# 2366240
Buncombe County, NC
Otto W. DeBruhl ReQister of Deeds

Doc 10:
020225260010 Type: CRP
Recorded: 08/02/2007 at 01:06:38 PM
Fee Amt: $39.00 Page I of 10
Workflow# 2387748
Buncombe County. NC
Otto W. DeBruhl ReQister of Deeds

BK4400 PG1534-1542

BK4444 PG1280-1289
'.

NORTH CAROLINA DEED OF TRUST AND SECURITY AGREEMENT
(Collateral Includes Fixtures)
SATISFACTION: The debt secured by this Deed of Trust, as
evidenced by the note or other document secured thereby, has
been satisfied in fulL This the
day of

,
Signed:

m:;ter recording to:

:r± ~

.

O~~,a.#a,

R
_/.2)(

2/

This instrument was prepared by:

~ob>£1: J, 'D~...l,t~~

- Bnef descnptlon tal'

lllUI!X:

.-

Recording: Time, Book and Page
-

-

--

THIS DEED OF TRUST AND SECURITY AGREEMENT ("Deed of Trust") is made as of this _ _ _ _ _ _ __
I_st
day of
May, 2007
, by and among:
TRUSTEE
BB&T Collateral Service Corporation
GRANTOR (Include Address)
1 W PACK SQ STE 400 P.O. BOX 450
ASHEVILLE. NC 28801-3404

LAUREL PRESERVE LLC

131 Garren Creek Road
Fairview, NC 28730-0000

o

BENEFICIARY
BRANCH BANKING AND TRUST
COMPANY, a
North Carolina banking corporation
1 W PACK SQ STE 400 P.O. BOX 450
ASHEVILLE. NC 28801-3404

IF BOX CHECKED, THIS DEED OF TRUST SECURES AN OBLIGATION INCURRED
FOR THE CONSTRUCTION OF AN IMPROVEMENT ON LAND.

THE FOLLOWING INFORMATION APPLIES TO THIS DEED OF TRUST:
I. The maximum principal amount of the Debt (defined below), including present and future advances, secured by this
Deed ofTrust is THREE HUNDRED NINETY-FOUR THOUSAND DOLLARS & OOilOO
($ 394,000.00
) Dollars.
2. The Debt, on the date hereof, is evidenced by a Note or other Document described by name, parties, dollar amount and
date as follows: (i) that Promissory Note dated
May 01
2007
in the amount of $l!'!Jj\1900'.OO $394,000.0
executed by LAUREL PRESERVE LLC
(the "Borrower" if not the Grantor) and may be evidenced y and shall be at all times deemed to include any other Note or
other Document now or hereafter evidencing any debt whatsoever incurred by Grantor and/or Borrower and payable to
Beneficiary, the terms of which are incorporated herein by reference; and (ii) all indebtedness and obligations of the
Grantor or Borrower to Beneficiary (or an affiliate of Beneficiary) under any interest rate swap transactions, interest rate cap
and/or floor transactions, interest rate collar transactions, swap agreements (as defined in 11 U .S.c. § 101) or other similar
transactions or agreements, including without limitation any ISDA Master Agreement executed by the Grantor or Borrower
and all Schedules and Confirmations entered into in connection therewith, hereinafter collectively referred to as a "Hedge
Agreement", the terms of which are incorporated herein by reference.
1764NC

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;

"

3. Pursuant to the provisions of Sections 45-67 et seq., of the North Carolina General Statutes, this Deed of Trust secures
the payment of the Debt, including present and future advances.
4. The current principal amount of the Debt advanced on the date hereof (including any outstanding amounts advanced
previously) by Beneficiary is $ None
(if none, so state).
5. No, execution of a written instrument or notation shall be necessary to evidence or secure any future advances made
hereunder. The period within which future advances are to be made shall be the fifteen year period beginning on the date of
this Deed of Trust.
6. The real property which is the subject of this Deed of Trust is located in or near the City of
BLACK MOUNTAIN
, in the Township of
,
in the County of
SO NCOMBE
, in the State of North Carolina, and the legal description
and the chain of title reference of the real property are set forth as follows:
SEE ATTACHED EXHIBIT A

STATEMENT OF PURPOSE: In this Deed of Trust reference shall be made simply to the "Note or other Document",
and such a reference is deemed to apply to all of the instruments which evidence or describe the Debt, or which secure its
payment, and to all renewals, extensions and modifications thereof, whether heretofore or hereafter executed, and includes
without limitation all writings described generally and specifically on the first page of this Deed of Trust in numbered
paragraph 2 above. This Deed of Trust shall secure the performance of all obligations of Grantor and of Borrower to
Beneficiary which are described in this Deed of Trust, in the Note or other Document, and such performance includes the
payment of the Debt. In this Deed of Trust the definition of "Debt" includes: (i) the principal; (ii) all accrued interest
including possible fluctuations of the interest rate if so provided in the Note or other Document; (iii) all renewals,
extensions and modifications of any obligation under the Note or other Document (even if such renewals or extensions are
evidenced by new notes or other documents); (iv) all indebtedness and obligations under a Hedge Agreement; (v) all other
obligations of Grantor to Beneficiary which are described in this Deed of Trust, or in the Note or other Document (for
example, payment of the attorneys fees of the Beneficiary, insurance premiums,ad valorem taxes, environmental reports
and appraisals); and (vi) all future advances to Grantor or Borrower, whether direct or indirect, including without
limitation any advances to pay drawings on any irrevocable standby or commercial letter of credit issued on the account of
Grantor or Borrower pursuant to an application therefor.
NOW, THEREFORE, for the purposes and under the conditions described in this Deed of Trust and in consideration of
the Debt and the mutual promises of Grantor and Beneficiary, Grantor hereby conveys to Trustee, in trust, with power of
sale, the real property described in this Deed of Trust, together with any improvements, equipment and fixtures existing or
hereafter placed on or attached to this real property, all proceeds thereof and all other appurtenant rights and privileges.
The term "the Property" shall include this real property, any such improvements, fixtures, and also all appurtenant rights
and privileges.
TO HAVE AND TO HOLD the Property, to Trustee, its successors and assigns, but upon the trust, and under the terms
and conditions of this Deed of Trust, to which Grantor, Trustee and Beneficiary hereby agree:
1. PERFORMANCE BY GRANTOR. Grantor shall fulfill all of Grantor's obligations set forth in this Deed of Trust and
the Note or other Document.
2. TAXES, DEEDS OF TRUST, OTHER ENCUMBRANCES. Grantor shall make timely payment of all ad valorem
taxes, assessments or other charges or encumbrances which may constitute a lien upon the Property. Grantor shall timely
pay and perform any obligation, covenant or warranty contained in any other deed of trust or writing (herein Other Deed of
Trust) which gives rise to any or which may constitute a lien upon any of the Property. Grantor shall upon request of
Beneficiary promptly furnish satisfactory evidence of such payment or performance. Grantor shall not enter into, terminate,
cancel or amend any lease affecting the Property or any part thereof without the prior written consent of Beneficiary.
Grantor shall timely pay and perform all terms of any lease or sublease of the Property or any part thereof.
3. INSURANCE. Grantor shall keep insured all improvements which are now existing and which might hereafter become
part of the Property, against loss by fire and other hazards, casualties and contingencies in such amounts and for such
periods as may be required from time to time by Beneficiary; and Grantor shall pay promptly, when due, any premiums on
the insurance. All insurance shall be carried with companies approved by Beneficiary, and Grantor shall cause all policies
and renewals thereof to be delivered to Beneficiary; and the policies shall contain loss payable clauses in favor of and in
form acceptable to Beneficiary. In the event of loss, Grantor shall give immediate notice to Beneficiary, and Beneficiary
may make proof of loss if such is not made promptly by Grantor. Any insurer is hereby expressly authorized and directed
to make payment for the loss directly and solely to Beneficiary. Further, Beneficiary may apply the insurance proceeds, or
any part thereof, in its sole discretion and at its option, either to the reduction of the Debt or to the restoration or repair of
any portion of the Property damaged.
4. ESCROW DEPOSITS. Upon demand of Beneficiary, Grantor shall deposit with or add to each payment required under
the Note or other Document the amount estimated by Beneficiary to be sufficient to enable Beneficiary to pay as they
become due all taxes, charges, assessments, and insurance premiums which Grantor is required to pay. Further, any
deficiency occasioned by an insufficiency of such additional payments shall be deposited by Grantor with Beneficiary upon
demand.
1764NC

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Page 2 of 8

3
5. PRESERVATION AND MAINTENANCE'OF THE PROPERTY. Grantor shall keep the Property in as good order and
repair as it now is (reasonable wear and tear excepted) and shall neither commit nor permit any waste or any other
occurrence or use which might impair the value of tne Property. Grantor shall not initiate or acquiesce in a change in the
zoning classification of the Property or make or permit any structural alteration thereof without Beneficiary's prior written
consent.
6. COMPLIANCE WITH LAWS. Grantor shall regularly and promptly comply with any applicable legal requirements of
the United States, the State of North Carolina or other governmental entity, agency or instrumentality re1ating to the use or
condition of the Property.
7 . CONDEMNATION AWARD. Any award for the taking of, or damages to, all or any part of the Property or any interest
therein upon the lawful exercise of the Jlower of eminent domain shall be payable solely to Beneficiary, which may apply
the sums so received to payment of the Debt.
.
8. PAYMENTS BY BENEFICIARY. If Grantor or Borrower shall be in default in the timely payment or performance of
any of Grantor's or Borrower's obligations, the Note or other Document, under this Deed of Trust or Other need of Trust,
Beneficiary may, but it is not obligated to, expend for the account of Grantor any sums, expenses and fees which
Beneficiary beheves appropriate for the protection of the Property and the maintenance and execution of this trust. Any
amounts so expended shall be deemed pnncipal advances fully secured by this Deed of Trust, shall bear interest from the
time expended until paid at the rate of interest accruing on the Debt, and shall be due and payable on demand.
9. RENTS AND PROFITS. Grantor hereby assigns to Beneficiary all future rents and profits from the Property as
additional security for the payment of the Debt and for the performance of all obligations secured by this Deed of Trust.
Grantor hereby appoints BenefiCiary as Grantor's attorney-in-fact to collect any rents and profits, with or without suit, and
to apply the same, less expenses of collection, to the Debt or to any obligations secured by this Deed of Trust in any manner
as Beneficiary may desire. Such appointment of Beneficiary shall be a power coupled with an interest and shall remain in
full force and effect as long as any portion of the Debt remains outstandmg. However, until default under the Note or other
Document or under this Deed of Trust, Grantor may continue to collect and retain the rents and profits without any .
accountability to Beneficiary. Beneficiary's election to pursue the collection of the rents or profits shall be in addition to all
other remedies which Beneficiary might have and may be put into effect independently of or concurrently with any other
remedy.
10. SECURITY INTEREST. AU the fixtures and equipment which comprise a part of the Property shall, as far as permitted
by law, be deemed to be affixed to the aforesaid lana and conveyed therewith. As to the balance of the fixtures, this Deed of
Trust shall be considered to be a security agreement which creates a security interest in such fixtures for the benefit of
Beneficiary. In that regard, Grantor grants to Beneficiary all of the rights and remedies of a secured party under the North
Carolina Uniform Commercial Code. Grantor agrees to execute and deliver to Beneficiary, concurrently with the execution
of this Deed of Trust and upon the request of Beneficiary from time to time hereafter, all financing statements and other
documents reasonably required to perfect and maintain the security interest created hereby. Grantor hereby irrevocably (as
long as the Debt remains unpaid) makes, constitutes and appoints BenefiCiary as the true and lawful attorney of Borrower to
sign the name of Grantor on any financing statement, contmuation of financing statement or similar document required to
perfect or continue such security interests. However to the extent allowed by law, this Deed of Trust shall be a financing
statement sufficient to perfect and maintain any security interest created hereby in the Property and its Proceeds.
11. GRANTOR'S CONTINUING OBLIGATION. This Deed of Trust shall remain as security for full payment of the Debt
and for performance of any obligation evidenced by the Note or other Document, notwithstanding any of the following: (a)
the sale or release of all or any part of the Property; (b) the assumption by another party of Grantor's obligations under this
Deed of Trust, the Note or other Document; (c) the forbearance or extension oT time for payment of the Debt or for
performance of any obligations under this Deed of Trust, the Note or other Document, whether granted to Grantor or to a
subsequent owner of the Property; or (d) the release of any party who has assumed payment of the Debt or who assumed
any other obligations under this Deed of Trust, the Note or other Document. None of the foregoing shall, in any way, affect
the full force and effect of the lien of this Deed of Trust or impair Beneficiary's right to a deficiency judgment in the event
of foreclosure against Grantor or any party who had assumed payment of the Debt or who assumed any other obligations the
performance of which is secured by tlils Deed of Trust.
12. SUBSTITUTION OF TRUSTEE. Beneficiary shall have the unqualified right to remove the individual designated as
Trustee on the first page of this Deed of Trust, and to appoint one or more substitute or successor Trustees by instruments
filed for registration in the County Registry where this Deed of Trust is recorded. Any such removal or appointment may be
made at any time and from time to time without notice, without specifying any reason therefor and without any court
approval. Any such appointee shall become fully vested with title to the Property and with all rights, powers and duties
conferred upon the inchvidual originally designated as Trustee, in the same manner and to the same effect as though that
party were named herein as the onginal Trustee.
13. INDEMNIFICATION IN EVENT OF ADVERSE CLAIMS. In the event that Beneficiary or Trustee voluntarily or
otherwise shall become parties to any suit or legal proceeding involving the Property, they shall be saved harmless and shall
be reimbursed by Grantor for any amounts paid, including all costs, charges and attorney s fees incurred in any such suit or
proceeding, and the same shall be secured by this Deed of Trust and payable upon demand.
14. INSPECTION. Beneficiary may at any reasonable time and from time to time make or cause to be made reasonable
entries upon, investigations, and inspections of the Property, including without limitation any inspections or investigations
such as sampling and testing which may be necessary or deSlfable to review compliance with Environmental Laws.
15. WARRANTIES. Grantor covenants with Trustee and Beneficiary that Grantor is seized of the Property in fee simple,
has the right to convey the same in fee simple, that title to the Property is marketable and free and clear of all
encumbrances, and that Grantor will warrant and defend the title against the lawful claims of all persons whomsoever,
subject only to any declarations, easements, restrictions or encumbrances listed in the title opinion or title insurance policy
whIch Beneficiary obtained in the transaction in which Beneficiary obtained this Deed of Trust.
16. ATIORNEYS' FEES. In the event that Grantor or Borrower shall default in its obligations under this Deed of Trust, the
Note or other Document, and Beneficiary employs an attorney to assist in the collection of the Debt or to enforce
compliance of Grantor with any of the provisions of this Deed of Trust, the Note or other Documents or in the event
Beneficiary or Trustee shall become parties to any suit or legal proceeding (including any proceeding conducted before any
United States Bankruptcy Court) concerning the Property, concerning the lien of thIS Deed of Trust, concerning collection
of the Debt or concerning compliance b¥ Grantor with any of the provisions of this Deed of Trust, the Note or other
Document, Grantor shall pay Beneficiary s reasonable attorneys' fees and all of the costs that may be incurred, and such
fees and costs shall be secured by this Deed of Trust and its payment enforced as if it were a part of the Debt. Grantor shall
be liable for such attorneys' fees and costs whether or not any suit or proceeding is commencea.

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17. ANTI-MARSHALLING PROVISIONS. Trustee and Beneficiary may grant releases at any time and from time to time of
all or any portion of the Property (whether or not such releases are required by agreement among the parties) agreeable to
Trustee and Beneficiary without notice to or the consent, approval or agreement of other parties and interests, including
junior lienors and purchasers subject to the lien of this Deed of Trust, and such releases shall not impair in any manner the
validity of or priority of this Deed of Trust on that portion of the Property remaining subject to this Deed of Trust, nor
release Grantor from personal liability for the Debt. Notwithstanding the existence of any other security interests in the
Property held by Beneficiary or by any other party, Beneficiary shall have the right to detennine the order in which any or
all of the Property shall be subjected to the remedies available to Beneficiary, and Beneficiary shall further have the right to
detennine the order in which any or all portions of the Debt are satisfied from the proceeds realized upon the exercise of any
remedy it has. Grantor, or any party who consents to this, or any party who has actual or constructive notice hereof, hereby
waives any and all rights to require the marshalling of assets in connection with the exercise of any of the remedies pennitted
by applicable law or provided herein.
18. ENVIRONMENTAL WARRANTIES, INDEMNITIES AND AGREEMENTS. Grantor for itself, its successors
and assigns represents, warrants and agrees that (a) neither Grantor nor any other person has generated,
manufactured, stored, treated, processed, released, discharged or disposed of any Hazardous Materials on
the Property or received any. notice from any Governmental Authority (hereinafter defined) or other person
with regard to a release of Hazardous Materials on, from or otherwise affecting the Property; (b) neither
Grantor or any other person has violated any applicable Environmental Laws (hereinafter defined) relating to
or affecting the Property; (c) the Property is presently being operated in compliance with all Environmental
Laws; there are no circumstances presently existing upon or under the Property, or relating to the Property
which may violate any applicable Environmental Laws, and there is not now pending, or threatened, any
action, suit, investigation or proceeding against Grantor relating to the Property (or against any other party
relating to the Property) seeking to enforce any right or remedy under any of the Environmental Laws; (d)
except in strict compliance with Environmental Laws, the Property shall be kept free of Hazardous Materials
and shall not be used to generate, manufacture, transport, treat, store, handle, dispose, process or release
Hazard Materials; (e) Grantor shall at all times comply with and ensure compliance by all other parties with all
applicable Environmental Laws and shall keep the Property free and clear of any liens imposed pursuant to
any applicable Environmental Laws; (f) Grantor has obtained and will at all times continue to obtain andlor
maintain all licenses, permits and other directives from any Governmental Authority necessary to comply
with Environmental Laws; Grantor is in full compliance with the terms and provisions of the Environmental
Requirements (hereinafter defined) and will continue to comply with the terms and provisions of the
Environmental Requirements; (g) Grantor shall immediately give Beneficiary oral and written notice in the
event that Grantor receives any notice from any Governmental Authority or any other party with regard to
any release or storage of Hazardous Materials on, from or affecting the Property and shall conduct and
complete all investigations, sampling, and testing, and all remedial, removal, and other actions necessary or
required to clean up and remove all Hazardous Materials on, from or affecting the Property in accordance with
all applicable Environmental Laws. Grantor hereby agrees to indemnify Beneficiary and hold Beneficiary
harmless from and against any and all losses, liabilities, damages, injuries (including, without limitation,
reasonable attorneys' fees) and claims of any and every kind whatsoever paid, incurred or suffered by, or
asserted against Beneficiary for, with respect to, or as a direct or indirect result of (i) the presence on, or
under, or the escape, spillage, emission or release on or from the Property of any Hazardous Material
regardless of whether or not caused by or within the control of Grantor, (ii) the violation of any Environmental
Laws or Environmental Requirements relating to or affecting the Property, whether or not caused by or within
the control of Grantor, (iii) the failure by Grantor to comply fully with the terms and provisions of this
paragraph, or (iv) any warranty or representation made by Grantor in this paragraph being false or untrue in
any material respect. The obligations and liabilities of Grantor under this paragraph shall survive the
foreclosure of the Deed of Trust, the delivery of a deed in lieu of foreClosure, the cancellation of the Note; or
if otherwise expressly permitted in writing by the Bank, the sale or alienation of any part of the Property.
In the event that any of the Grantor's representations or warranties shall prove to be materially false or
Grantor fails to satisfy any Environmental Requirement, Beneficiary, in its sole discretion, may (i) choose to
assume compliance with governmental directives and the Grantor agrees to reimburse Beneficiary for all
costs, expenses (including all reasonable attorneys' fees, whether in-house or independent), fines, penalties,
judgments, suits, or liabilities whatsoever associated with such compliance; or (ii) seek all legal and equitable
remedies available to it including, but not limited to, injunctive relief compelling Grantor to comply with all
Environmental Requirements relating to the Property. Beneficiary's rights hereunder shall be in addition to all
rights granted under the Note or other Document and payments by Grantor under this provision shall not
reduce Grantor's obligations and liabilities thereunder. In the event Beneficiary undertakes compliance with
Environmental Requirements which Grantor failed to perform or which Beneficiary determines is necessary to
sell all or any part of the Property, Grantor authorizes Beneficiary andlor Beneficiary's agents to prepare and
execute on Grantor's behalf, any manifest or other documentation relating to the removal andlor disposal of
any Hazardous Materials, from, at or on the Property. Grantor acknowledges that Beneficiary does not own,
or have a security interest in, any Hazardous Materials which exist on, originate from or affect the Property.
All amounts expended by the Beneficiary in connection with the exercise of its rights hereunder (including
reasonable attorneys' fees and the fees of any environmental consultants) shall become part of the
indebtedness secured by this Deed of Trust.
For purposes of this Deed of Trust: "Environm'ental Laws" means the Comprehensive Environmental
Response, Compensation and Liability Act, the Hazardous Materials Transportation Act, the Resource
Conservation and Recovery Act, and any "Super Fund" or Super Lien" law, or any other federal, state or local
law, regulation or decree regulating, relating to or imposing liability or standards of conduct concerning any
Hazardous Materials. "Environmental Requirement" means any administrative orders, directives, judgments,
consent orders, permits, licenses, authorizations, consents, settlements, agreements or other formal or
informal directions or guidance issued by or entered into with any Governmental Authority or private party,
including the provisions of any Environmental Law, which obligate or commit Grantor to investigate,
remediate, treat, monitor, dispose or remove Hazardous Materials. "Governmental Authority" means any
federal, state or local agency, department, court or other administrative, legislative or regulatory federal, state
or local governmental body, or any private individual or entity acting in place of such entities. "Hazardous
Materials" means and includes petroleum products, any flammable explosives, radioactive materials, asbestos
or any material containing asbestos, andlor any hazardous, toxic or dangerous waste, substance or material
defined as such in the Environmental Laws.
•
1764NC

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•

Page.4 01 8

19.EVENTS OF DEFAULT. Grantor shall be in default under this Deed of Trust upon the occurrence of any of the
following:
(a) Default in the payment or performance of any of the Debt, or of any covenant or warranty in this Deed of Trust, in the
Note or other Document, or in any other note of Grantor or Borrower to Beneficiary or any contract between Grantor and
Beneficiary; or in any contract between any third party and Beneficiary made for the benefit of Grantor; or
(b) Any warranty, representation or statement made or furnished to Beneficiary by or on behalf of Grantor or Borrower in
connection with this transaction proving to have been false in any material respect when made or furnished; or
(c) Loss, theft, substantial damage, destruction to or of the Property, or the assertion or making of any levy, seizure,
mechanic's or materialman's lien or attachment thereof or thereon; or
(d) Death, dissolution, tennination of existence, insolvency, business failure, appointment of a Receiver for any part of the
property of, assignment for the benefit of creditors by, or the inability to pay debts in the ordinary course of business of the
Grantor or Borrower or any co-maker, endorser, guarantor or surety therefor; or
(e) Failure of a corporate Grantor, Borrower or co-maker, endorser, guarantor or surety for Grantor to maintain its corporate
existence in good standing; or
(f) Upon the entry of any monetary judgment or the assessment of filing of any tax lien against Grantor or Borrower; or
upon the issuance of any writ of garnishment or attachment against any property of debts due or rights of Grantor or
Borrower; or

(g)The sale (inclUding sale by land contract upon delivery of possession), transfer or encumbrance of all or any part of the
Property or any interest therein, or any change in the ownership or control of any corporate or partnership Grantor or
Borrower, without Beneficiary's prior written consent; or
(h)If Beneficiary should otherwise deem itself, its security interests, the Property or the Debt unsafe or insecure; or should
Beneficiary otherwise believe that the prospect of payment or other performance is impaired.

20. REMEDIES OF BENEFICIARY UPON DEFAULT. Upon the occurrence of any event of default, Beneficiary may, at
its option, without prior notice to Grantor, declare the Debt to be immediately due and payable in full; and, on application
of Beneficiary, Trustee shall foreclose this Deed of Trust in any manner perrrutted by North Carolina law, including selling
the Property or any part thereof at public sale to the last and highest oidder for cash, free of any equity of redemption,
homestead, dower, curtesy or other state or federal exemption, all of which are expressly waived oy Grantor, after
compliance with applicable North Carolina laws relating to foreclosure sales under power of sale; and Trustee shall execute
and oeliver to the purchaser a Trustee's deed conveying the Property so sold without any covenant or warranty, expressed or
implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. The
proceeds of any such sale shall be applied in the manner and in the order prescribed by applicable North Carolina law, it
being agreed that the expenses of any such sale shall include a commission of five per cent of the gross sales price to Trustee
for holding such sale and for all services performed by him hereunder excluding expenses incurred in makmg sale. In the
event a foreclosure suit or special proceedmg is commenced, and no sale is held, then the Grantor shall pay to the Trustee:
1) all expenses incurred by Trustee and 2) a partial commission computed on five per cent of the balance of the unpaid Debt.
Beneficiary may bid and become the purchaser at any sale under this Deed of Trust. At any such sale Trustee may at his
election require the successful bidder llnmediately to deposit with Trustee cash in an amount equal to all or any part of the
successful bid, and notice of any such requirement need not be included in the advertisement of the notice of such sale.
Beneficiary may request the appointment of a Receiver for the Property and the Grantor hereby consents thereto. If
foreclosure proceedings are inslltuted under this Deed of Trust, Trustee is hereby authorized to take possession of the
Property and collect any rental, accrued or to accrue; or Trustee may lease the Property or any part thereof, receive the rents
and profits therefrom, and hold the proceeds remaining after payment of the expenses of managing and operating the
Property subject to the order of the court for the benefit of Beneficiary, pending final disposition of the foreclosure
proceedings, and during any period allowed by applicable law for the redemptlOn from any foreclosure sale ordered in such
proceedings; and Trustee may act irrespective of the value of the Property or its adequacy or inadequacy to secure or
oischarge the indebtedness then owing.
21. RELEASE AND CANCELLATION. Upon fulfillment of all of obligations, the performance of which is secured by this
Deed of Trust, and upon payment of the Debt, this Deed of Trust and the Note or other Document shall be marked
"Satisfied" and returned to Grantor, and this conveyance shall be null and void and may be cancelled of record at the request
and cost of Grantor, and title to the Property shall revest as provided by law.
22. MISCELLANEOUS. The captions and headings of the paragraphs of this Deed of Trust are for convenience only and
shall not be used to interpret or define any provisions. All remedies provided herein are distinct and cumulative to any other
right or remedy under thiS Deed of Trust or afforded by law or equity, and may be exercised concurrently, independently or
successively. All covenants contained herein shall bind, and the benefits and advantages shall inure to, the respective heirs,
executors, administrators, successors or assigns of the parties to this Deed of Trust, and the designations "Grantor",
"Trustee" and "Beneficiary" include the parties, their heirs, executors, administrators, successors and assigns. The
designations "Corporate", "Corporation", and "Partnership" include limited liability companies and limited liability
partnerships. Whenever used, the singular number shall include the plural, and the plural the singular, and the use of any
gender shilll be applicable to all genders. This Deed of Trust shall be governed by and construed under North Carolina law.
Any forbearance by Beneficiary m exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall
not be a waiver of or preclude the exercise of any such right or remedy. The procurement of insurance or the payment of
taxes or other liens or charges by Beneficiary shall not be a waiver of BenefiCiary's right to accelerate the matunty of the
Debt. Time is of the essence in the payment or performance of any of the obltgations, or of any covenant or warranty
contained in this Deed of Trust or in die Note, or other Document.

1764NC

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Page 5 of B

IN TESTIMONY WHEREOF, each individual Grantor has hereunto set his hand and adopted as his seal the
word "SEAL' appearing beside or near his signature, this sealed instrument being executed and delivered on
the date first above written.
Grantor: ________________________________________________ (SEAW

Grantor: ___________________________________________________ (SEAL)

Grantor: ___________________________________________________ (SEAL)

Grantor: ___________________________________________________ (SEAL)

IN TESTIMONY WHEREOF, the above corporate Grantor has caused this instrument to be executed under
seal in its corporate name by its duly authorized ___________________________________
________________________ , with this sealed instrument being delivered on the date
first above written.

NAME OF CORPORATiON

By: __________________________________ (SEAL)

Title: _______________________________

By: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (SEAL)

Title:

IN TESTIMONY WHEREOF, the above partnership Grantor, Limited Liability Company, Limited
Liability Partnership or Limited Liability Limited Partnership has caused this instrument to be executed in
the appropriate company or partnership name by its duly authorized general partner(s), manager(s) or
managing member(s), and has adopted as its seal the word "SEAL" appearing beside its name, this sealed
instrument being executed and delivered on the date fust above written.

LAUREL PRESERVE LLC

~
-----------------1'+-'--"-----------------NAMEOF PARTN

SHIP, LLC, LLP, OR LLLP

By: _____-l_./.f-=-==~__"_'_£~'=~c_------------(SEAL)

Il,A

Title:

ARTHUR NADEL

By: ______________________________________ (SEAL)
Title: ________________________________________

By: _____________________________________ (SEAL)
Title: ____________________________________________

1764NC

(0610)

t.

·.

For Individual:
STATE OF NORTH CAROLINA, COUNTY OF _ _ _ _ __
I,
,a Notary Public, do hereby certify that
:-::--_-::-:--:-_--,---,--_--,---:---:-:---;-::----:_---::--:----:-,--:-:::-' an individual, Grantor, personally appeared
before me this day and acknowledged that (s)he voluntarily signed this Deed of Trust for the purposes stated therein.
Witness my hand and official stamp or notarial seal, this __ day of _ _ _ _ _ _ , 20_.
[SEAL]
-,-_-"-.,,.-_ _ _ _ _ _ _ _ _ _ _ (SEAL)
Notary Public
My Commission Expires: _ _ _ _ _ _ _ _ _ _ __

For Individual:
STATE OF NORTH CAROLINA, COUNTY OF _ _ _ _ __
I,
,a Notary Public, do hereby certify that
:-::--_--:-:--:-_--,----,--_--:--:---:-:----::----::-----::--:----:-:-:-:::-' an individual, Grantor, personally appeared
before me this day and acknowledged that (s)he voluntarily signed this Deed of T\'llst for the purposes stated therein.
Witness my hand and official stamp or notarial seal, this __ day of _ _ _ _ _ _ , 20_
[SEAL]
::-:-_::-:--::-_ _ _ _ _ _ _ _ _ _ _(SEAL)
Notary Public
My Commission Expires: _ _ _ _ _ _ _ _ _ _ __

For a Corporation:
STATE OF NORTH CAROLINA, COUNTY OF _ _ _ _ __
I, _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , a Notary Public, do hereby certify that

personally came before me this day and
acknowledged that (s)he is the _ _ _ _ _ _ _ _ _ _ of _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , a

_____--,====-______corporation, Grantor, and that (s)he in such representative capacity
lstate of hmnanorij

voluntarily signea thlS Deed of Trust for the purposes stated therem.
Witness my hand and official stamp or notarial seal this __._ day of _ _ _ _ _ _ , 20__
[SEAL]

1764NC

(O610!

::-:-_::-:--::-_ _ _ _ _ _ _ _ _ _ _(SEAL)
Notary Public
My Commission Expires: _ _ _ _ _ _ _ _ _ _ __

Page 7 of 8

,

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.'

t.

'.

For a Partnership/LLC/LLP:

f"lo~\.k

STATE OF NORTH eAlt~t:IHr\, COUNTY OF

0..

vQ@;::X;h..

I,

a Notary Public, do hereby certify that
personally came before me this day and

acknowledged that (s)he is the

W.allllfle r

k",({<\
-

(indicate whether general partner, manager or managing member) of

\?ce..>erl[e. I I I C

<>

a

1\) C. LLC

(state of fonnation and type of entity)

,

Grantor,
,.-

and that (s)he in such representative capacity voluntarily signed this Deed of Trust for the purposes stated therein,
Witness my hand and official stamp or notarial seal this

2fI! day of

~

,

20Q~J

:~"""'''''M''''''''''''''''''''''''''''''''''
ICHELLE L BELL
•

[SEAL]

1~~ --"14.., j
. ffGt"'" ~ - - :
1 ~"i,,~i -FlOrida... (eao~i
:
...
"""~1I1

-~.

Aa__

InC :

·····'··· .. •• .. •• .. ••••• •• ;:-::::;t~......i

-:,:,WY1~-=LCJ1,,,,:,'
~l"-'('-'(.b'(___-'-d"-'----"'&u==-=--o'---__ (SEAL)
Notary Public
...
1
My Commission Expires:_--",'?29.-.""-..u.k9..."Cx",,,,)_o _ _ __

The foregoing or annexed certificate(s) of_ _ _ _ _ _ _ _ _ _ , Notary(ies) Public, has(have) been verified to have
the signature, commission expiration date, and official seal, if required. This instrument and this certificate are duly
registered at the date and time and in the Book and Page shown on the first page hereof.
_ _ _ _ _ _ _ _ _ _ REGISTER OF DEEDS FOR,_ _ _ _ _ _ _ _ _ _ COUNTY
By: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Deputyl Assistant - Register of Deeds.

a~o/
1764NC

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Page 8 of

a

,"

.'

..
~

,

'

EXHIBIT "A"
BEING ALL OF LOT A OF LAUREL MOUNTAIN PRESERVE AS SHOWN ON THE PLAT
THEREOF RECORDED IN PLAT BOOK 98. AT PGE 10. BUNCOMBE COUNTY
REGISTRY. REFRENCE TO WHICH IS HEREBY MADE AND INCORPORATED HEREIN
FOR A GREATER CERTAINTY OF DESCRIPTION.

/0

Prepared by and return to: Robert J. Deutsch, 75 N. Market St., Asheville, NC 28801

~;2>x. 1/

-

THIS DEED OF TRUST IS BEING RE-RECORDED IN ORDER TO CORRECT THE
AMOUNT OF INDEBTEDNESS SHOWN IN PARAGRAPH 2 ON PAGE 1 OF THE
ORIGINAL RECORDING WHICH REFERENCED THE INCORRECT AMOUNT OF
$395,000.00. THE CORRECT AMOUNT SHOULD HAVE BEEN $394,000.00, AND THIS
DOCUMENT IS RE-RECORDED TO CORRECT THE ORIGINAL ERROR AND
CORRECT THE AMOUNT OF INDEBTENDESS REFERRED TO IN PARAGRAPH 2 TO
$394,000.00.
DEED OF TRUST BOOK 4400, PAGE 1534.
RECORDED IN THE BUNCOMBE COUNTY REGISTRY
NAMES OF ALL PARTIES TO THE ORIGINAL INSTRUMENT:
GRANTOR/BORROWER:

LAUREL PRESERVE, LLC

GRANTEE/LENDER: BRANCH BANKING AND TRUST COMPANY
TRUSTEE:

BB&T COLLATERAL SERVICE CORPORATION

STATE OF NORTH CAROLINA
COUNTY OF BUNCOMBE
I, the undersigned, hereby certify that the following correction is hereby made in the
above named recorded instrument in accordance with the provisions of N.C.G.S. 47-36.1,
ratified June 30, 1986:
DESCRIPTION OF CORRECTION(S): Paragraph 2 on page 1 is hereby corrected to show the
correct amount of indebtedness as evidenced by a Promissory Note dated May 1, 2007, to be
$394,000.00.
I, on behalf of Branch Banking and Trust Company, drafted the original instrument.
This the 20th day of July, 2007.

n;:;;l~~~rn~u~=-;::;---___ '(Seal)
RO
. DEUTSCH, Attorney
75 Nort
arket Street
Asheville, NC 28801
[phone]
NC State Bar No. 5577

12301995