AGREEMENT FOR RIGHTS UNDER
THIRD‑PARTY DEED OF TRUST
THIS AGREEMENT is made as of the ______ day of ___________________, __________, among _________________________________________
(“_____________________________________________________ “) and
___________________, ___________________________________, and
___________________________, (individually a “Debtor” and collectively
W I T N E S S E T H:
WHEREAS, Debtors have given to ________________________________,
______________________, __________________________(the “Bank”), their respective promissory notes each dated _______________, _______, and each made in the original principal amount of $ __________________(individually a “Note” and collectively the “Notes”);
WHEREAS, ____________________________ has given to the Bank a Land
Deed of Trust effective as of _______________, ______ (the “Deed of Trust”), by which certain land and improvements of __________________ (the “Land”) are given to secure the Notes; and
WHEREAS, ______________________________ and the Debtors desire to specify certain of their respective obligations and rights pursuant to ______________________ ‘s giving of the Deed of Trust.
NOW, THEREFORE, in consideration of the premises and mutual covenants hereinafter set forth, and other good and valuable consideration each to the other given, the parties hereto, intending legally to be bound, do hereby mutually agree as follows:
1. A. If any part of the Land is sold or conveyed pursuant to the Deed of Trust because of a default of a Note, _____________________________ shall have the right of subrogation against the Debtor of the defaulted Note and shall succeed to all of the rights of the Bank against that defaulting Debtor.
___________________________ shall have the right to receive immediate reimbursement from the defaulting Debtor of the total amount under the Note (including but not limited to interest, attorneys fees, and other costs) satisfied by the sale or conveyance. The defaulting Debtor shall have the obligation to make immediate reimbursement of that total amount to ________________________ .
B. If __________________________ makes any payment (including but not limited to interest, attorneys’ fees, and other costs) to the Bank because of a default of a Note, __________________________ shall have the right of subrogation against the Debtor of the defaulted Note and shall succeed to all of the rights of the Bank against that defaulting Debtor.
______________________ shall have the right to receive immediate reimbursement from the defaulting Debtor of the amount of the payment. The defaulting Debtor shall have the obligation to make immediate reimbursement of the amount of the payment to _____________________.
C. ____________________ shall also be entitled to receive from the defaulting Debtor (i) interest on the reimbursement under Paragraph 1A and 1B, at the rate specified in the defaulted Note and for the period from the date of sale or conveyance or of payment, whichever is applicable, through date of reimbursement, and (ii) all attorney fees and other costs incurred in obtaining reimbursement from the defaulting Debtor.
D. Upon a sale or conveyance under the Deed of Trust under Paragraph 1A or a payment to the Bank under Paragraph 1B, _______________________ shall have all of the rights, and the defaulting Debtor shall have all of the obligations, specified in this Paragraph 1 whether the sale or conveyance or payment was made in partial or full satisfaction of the defaulted Note or whether the sale or conveyance or payment was for amounts other than payments on the defaulted Note.
2. To the extent not specified in this Agreement, ____________________ and the Debtors shall have all of the obligations and rights provided under ________________________ law.
3. This Agreement shall be binding upon the parties hereto and their respective heirs, legal representatives, successors, and assigns.
4. This Agreement contains all of the terms and conditions agreed upon by the parties hereto, and no other agreement, oral or otherwise, shall be deemed to exist or to bind the parties hereto unless in writing and executed by the parties hereto.
5. If any provision of this Agreement is determined to be void, voidable, or otherwise unenforceable, that provision shall be inapplicable and deemed omitted to the extent so void, voidable, or otherwise unenforceable, but the remainder of the provisions of this Agreement shall not be invalidated thereby and shall be given full force and effect so far as possible.
6. This Agreement may be executed in any number of counterparts, each and all of which shall be deemed for all purposes to be one agreement.
7. _____________________________ law shall govern the application, construction, and interpretation of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
State Specific Real Estate Forms
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