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  STACK METHOD — DRAFT TEMPLATE — NOT LEGAL ADVICE — ATTORNEY REVIEW REQUIRED
  Provided "as is," for education only. No liability accepted. [BRACKETS] = fill in.
  *** HIGHLY STATE-SPECIFIC. *** Some states use a Deed of Trust, others a
  Mortgage; recording forms, foreclosure process, and statutory language differ.
  Use your state's required form prepared by a local attorney/title company.
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            DEED OF TRUST / MORTGAGE (SECURITY INSTRUMENT)

This Security Instrument secures the Promissory Note (Doc 07) dated [DATE] in the
amount of $[AMOUNT].

Parties:
  • Borrower / Trustor / Mortgagor: [PROPERTY LLC NAME], LLC
  • Lender / Beneficiary / Mortgagee: [DEBT FUND/LENDER or SELLER]
  • Trustee (deed-of-trust states): [TITLE/TRUSTEE CO.]

Lien Position: [ ] First (Senior)   [ ] Second (Subordinate)

1.  GRANT. Borrower grants/conveys to [Trustee/Lender] the real property at
    [ADDRESS], legally described on Exhibit A (the "Property"), together with rents,
    improvements, and fixtures, to secure the Note.

2.  SECURED OBLIGATIONS. Payment of the Note and performance of all covenants here
    and in the related loan documents.

3.  BORROWER COVENANTS. Pay the Note; pay taxes, insurance, HOA, and any senior
    liens when due; maintain the Property and insurance; not commit waste; not
    further encumber without Lender consent (see Doc 04/05 covenants).

4.  SUBORDINATION (if Second). This instrument is subordinate to the Senior Loan
    recorded as [instrument #]; Borrower/Lender may execute a subordination
    agreement as required.

5.  ASSIGNMENT OF RENTS. Borrower assigns rents to Lender, which Lender may collect
    on default (subject to senior lender's rights and applicable law).

6.  DEFAULT & REMEDIES. On default under the Note or this instrument, and after any
    required notice and cure period (including the 60-day cure where applicable),
    Lender may [accelerate and foreclose] per [STATE] law (power of sale / judicial
    foreclosure) and exercise all remedies.

7.  RECORDING. To be recorded in [COUNTY], [STATE]. Prepared by [ATTORNEY/TITLE].

[STATE-REQUIRED notary blocks, legal description, and statutory language to be
added by local counsel/title company.]

Borrower: [PROPERTY LLC NAME], LLC
By: ____________________  Title: ______  Date: ______

Exhibit A — Legal Description