HomeMy WebLinkAboutDeedsEXHIBIT "A"
THIRD TRACT.
BEGINNING at a point in the Eastern right-of-way line of Owl's Lane (60 foot right -of way), said point
being located North 14° 42' West 663 38 feet from the intersection of the Easlem right-of-way line of
Owl's Lane with the Northern right -o( way line of Bavanan Lane (SR #1322) said interscction paint is
located South 77' 23' West 420.28 feet from intersection of Northern right -of way Itnc of Bavarian Lane
(60 foot right-af--way) with the Western right-of-way line of N C Highway # 132 (200 foot right -of way),
running thence with Eastern nght-of--way line of 0wl's Lane as above locate d 'No rth I4° 42' West 120.2
feet to a point in said right-of-way; thence North 75° 18' East 124.8 feet to a point; then cc South l4° 42'
East 120.2 feet to a point; thence South 75° 18' West 124 8 feet to the point of begsmmrig Togel her with a
60 foot nght-of--way (Owl's Lane) for Ingress and egress to and from said property, the Eastern right•of.
way of said Owl's Lane is located South 77' 23' West 420 28 feet From intersection of Northern right-of-
way line of Bavarian Lane (SR # 1322) and the Western nght-of-way line of N C Highway # 132 (200
foot rig ht -of -way). and said Eastern Iine oFOwl 's Lane runs North 14° 42' West beyond the abort
described lot
FOURTH TRACT
BEGINNING at a porn[ in the Eastern right-of-way line of Owl's Lane (60 foot right-of-way), said point
being located worth 14° 42' West 783.58 feet from the intersection of the Eastern nght of way line of
Owl's Lane with the Northern right -of --way line of Bavanan Lane (SR # 3322) said intersection point is
located South 77° 23' West 420.28 feet from said intersection of Northern right-of-way line of Bavanan
Lane (60 foot right-of-way) with the Western right-of-way line of N C. Highway 4132 (200 foot nght-of-
way), running thone c with Eastern right-of-way of Owl's Lane as above located 14° 42' West 100 00 fecL
to a point in said right -of --way, thence North 75' 18' East 150.0 feet to a point; thence South 14' 42' East
100,0 feet to a point, thence South 75° 18' West 150 0 feet to the point of BEGINNING, together with a
60 fool nght-of-way (Owl's Lan c) for ingress and egress to and from said property; the Eastern nght-of-
way ofsot d Owl's Lane is located South 77' 23' West 420 28 feet from intersection of Northem nght-of=
way ofBavartan Lane (SR #1322) and the Western right-of-way line of N C Highway # 132 (200 foot
right-of-way), and said Eastern lune of Owl's Lane runs North 14° 42' West beyond the above described
lot
FIFTH TRACT.
BEGINNING at a point in the Eastern nght-of-way line of Owl's Lane (60 foot right-of-way), said point
being located North 14' 42' West 883 58 feet from the imersection of the Eastern right- 0Fway lino of
Owl's Lane with the Northem right-of-way lune of Bavarian Lane (SIL #1322) said intersection point is
located South 77° 23' West 4 20.2 8 feet from interscction of Northern right-of-way iune of Bavanan Lane
(60 foot right-of-way) with the Western nght-of-way line of N. C Highway 4132 (200 foot right-of-way)
running thence with the Eastern right-of-way line of Owl's Lane as above located North 14° 42' West
100 0 feet to a point in said right-of-way; thence North 75* 18' East 150 0 feet to a point; thence South
14° 42' East 100.0 feet, to a point; thence South 75' 18' West 150 0 feet to Ute point of BEGINNING,
together with a 60 foot nght-of-way (Owl's Lane) for ingress and egress to and from said property The
Eastem right-of-way of Owl's Lane is located South 77° 23' West 420 28 feet from the Intersection of
Northern right-of-way line of Bavanan Lane (SR #1322) and the Western right-of-way line of N. C
Highway #132 (200 foot right-of-way) and said Eastern line of Owl's Lane runs North 14' 42' West
beyond the above described lot
SIX TRACT
BEGINNING at a point in the Eastern right -of --way line of Owl's Lane (60 foot nght-cf--way), said point
hctog located North 14' 42' West 983.58 feet from the intersection of the Eastem right-of-way IIne of
Owl's Lane with the Northern nght-of way line of Bavanan Lane (SR #1322) said intersection point Is
located South 77' 23' West 420 28 feet from said Intersection of Northern right-of-way line ofRavanan
Lane (60 foot right-of-way) with the Wes tem right -of --way line of N, C. Highway # 132 (204 foot right-of-
way) running thence with Eastern right-of-way line of Owl's Lane as above located North 14° 42' West
100 0 feet to a point in said right-of-way; thence North 75° 18' East 150.0 feet to a point, thence South
14' 42' East 100 0 feet to a point, thence South 75' 18' West 150 0 feet to the point of beginning,
together with a 60 foot nght-ofway (Owl's Lane) for ingress and egress to and from said property; the
Eastem right of way of said Owl's Lanc is located South 77° 23' West 420 28 feet from intersection of
Northem right -o€ way cine of Bavarian Lane (SR # 132 2) and the Wcstern nght-of-way line of C
Highway # 132 (200 foot nght-of--way), and said Eastern line of Owl's Lane runs North 14' 42' West
beyond the above desenbed lot
T VCeilyUDamptlonWotdmdeBapnetChmhi.oroi,4j,6 wpd
REBECCA T CHRISTIAN
REGISTER OF DEEDS, NEW HANOVER
216 NORTH SECOND STREET
WILMINGTON, NC 28401
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Filed For Registration: 06/2512003 03:09:11 PM
Book: RE 3957 Page: 343.360
Document No.: 2003039659
DR 19 PGS $62.00
Recorder: JACQUELINE NELSON
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State of North Carolina, County of New Hanover
The foregoing certificate of KELLY REPKO Notary Is certified to be correct. This 25TH of June 2003
By:
, REGISTER OF DEEDS
of
YELLOW PROBATE SHEET IS A VITAL PART OF YOUR RECORDED DOCUMENT.
PLEASE RETAIN WITH ORIGINAL DOCUMENT AND SUBMIT FOR RE-RECORDING.
*2003039659*
2003039659
FOR RREHECCA;tONCHRI57IEN OF fl££OS
NSW '0, 'M COQNN! Nc
2003 APR 25 03 i i , 41 PM
BK -1756 PG 496-512 FEE $59 00
ISO 12003420
DEED OF TRUST
WHEN RECORDED MAIL TO
Bank of America, N.A
NC1-014-13-07
P 0 Box 30120
Charlotte, NC 28254-3693
This Deed of Trust prepared by -
Rosalind N Crawford, Document Administrator -1004034
MAXIMUM LIEN The maximum principal amount secured by this Deed of Trust shall not exceed at any one
time $1,905,059 00
THIS DEED OF TRUST is dated April 25, 2003, among Northside Baptist Church of Wilmington, Inc , whose
address is 2501 N College Road, Wilmington, NC 28405 ("Grantor"), Bank of America, N A , whose address
is CCS -Small Business/Premier, NC1-014-13-07, 200 South College Street, 13th Floor, Charlotte, NC 28255
(referred to below sometimes as "Lender" and sometimes as "Beneficiary"), and PRLAP, Inc , whose address is
PRLAP, Inc c/o 1400 Best Plaza Drive, Richmond, VA 23227 (referred to below as "Trustee")
CONVEYANCE AND GRANT NOW, THEREFORE, as security for the Indebtedness, advancements and other
sums expended by the Beneficiary pursuant to this Deed of Trust and costs of collection (including attorneys'
fees as provided in the Note) and other valuable consideration, the receipt of which is hereby acknowledged,
Grantor has bargained, sold, given, granted and conveyed and does by these presents bargain, sell, give, grant
and convey to Trustee, and Trustee's heirs or successors and assigns, for the benefit of Lender as $enefimary,
all of Grantor's right, title, and interest in and to the following described real property, together with all existing
or subsequently erected or affixed buildings, improvements and fixtures, all easements, rights of way, and
appurtenances, • Il water, ay�r righ s ani/ ditch rights bncluding stock in utilities witl� ditch or irrigation rights),
DEED OF TRUST
Loan No, 01 -1004034 -RNC (Continued)
Page 2
and all other rights, royalties, and profits relating to the real property, including without limitation all minerals,
oil, gas, geothermal and similar matters, Ithe "Real Property") located in New Hanover County, State of North
Carolina
See See Exhibit "A", which is attached to this Deed of Trust and made a part of this Deed of Trust as if
fully set forth herein
The Real Property or its address is commonly known as 2501 N College Road, Wilmington, NC 28405
To have and to hold said Real Property with all privileges and appurtenances thereunto belonging, to the
Trustee, his heirs, successors and assigns forever, upon the trusts, terms and conditions and for the uses
hereinafter set forth
Grantor presently assigns to Lender (also known as Beneficiary in this Deed of Trust) all of Grantor's right, title,
and interest in and to all present and future leases of the Property and all Rents from the Property In addition,
Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents
THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE
RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B)
PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS
DEED OF TRUST THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS
PAYMENT AND PERFORMANCE Except as otherwise provided in this Deed of Trust, Grantor shall pay to
Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a timely manner
perform all of Grantor's obligations under the Note, this Deed of Trust, and the Related Documents
POSSESSION AND MAINTENANCE OF THE PROPERTY Grantor agrees that Grantor's possession and use of
the Property shall be governed by the following provisions
Possession and Use Until the occurrence of an Event of Default, Grantor may (1) remain in possession
and control of the Property, (2) use, operate or manage the Property, and (3) collect the Rents from the
Property
Duty to Maintain Grantor shall maintain the Property in tenantable condition and promptly perform all
repairs, replacements, and maintenance necessary to preserve its value
Compliance With Environmental Laws Grantor represents and warrants to Lender that (1) During the
period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage,
treatment, disposal, release or threatened release of any Hazardous Substance by any person on, Linder,
about or from the Property, (2) Grantor has no knowledge of, or reason to believe that there has been,
except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of
any Environmental Laws, 141 any use, generation, manufacture, storage, treatment, disposal, release or
threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners
or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person
relating to such matters, and (3) Except as previously disclosed to and acknowledged by Lender in
writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall
use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about
or from the Property, and (b) any such activity shall be conducted in compliance with all applicable
federal, state, and local laws, regufations and ordinances, including without limitation all Environmental
Laws Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and
tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with
this section of the Deed of Trust Any inspections or tests made by Lender shall be for Lender's purposes
only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to
any other person The representations and warranties contained herein are based on Grantor's due
diligence in investigating the Property for Hazardous Substances Grantor hereby (1) releases and waives
any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for
cleanup or other costs under any such laws, and (2) agrees to indemnify and hold harmless Lender
against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued)
Page 3
or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or as a
consequence of any use, generation, manufacture, storage, disposal, release or threatened release
occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should
have been known to Grantor The provisions of this section of the Deed of Trust, including the obligation
to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the
lien of this Deed of Trust and shall not be affected by Lender's acquisition of any interest in the Property,
whether by foreclosure or otherwise
Nuisance, Waste Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer
any stripping of or waste on or to the Property or any portion of the Property Without limiting the
generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any
timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's
prior written consent
Removal of Improvements Grantor shall not demolish or remove any Improvements from the Real Property
without Lender's prior written consent As a condition to the removal of any Improvements, Lender may
require Grantor to make arrangements satisfactory to Lender to replace such Improvements with
Improvements of at least equal value
Lender's Right to Enter Lender and Lender's agents and representatives may enter upon the Real Property
at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of
Grantor's compliance with the terms and conditions of this Deed of Trust
Compliance with Governmental Requirements Grantor shall promptly comply with all laws, ordinances,
and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or
occupancy of the Property, including without limitation, the Americans With Disabilities Act Grantor may
contest in good faith any such law, ordinance, or regulation and withhold compliance during any
proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing
so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized Lender
may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to
protect Lender's interest
Duty to Protect Grantor agrees neither to abandon or leave unattended the Property Grantor shall do all
other acts, in addition to those acts set forth above in this section, which from the character and use of the
Property are reasonably necessary to protect and preserve the Property
TAXES AND LIENS The following provisions relating to the taxes and liens on the Property are part of this
Deed of Trust
Payment Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes,
assessments, charges (including water and sewer), fines and impositions levied against or on account of
the Property, and shall pay when due all claims for work done on or for services rendered or material
furnished to the Property Grantor shall maintain the Property free of all liens having priority over or equal
to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and
except as otherwise provided in this Deed of Trust
Right to Contest Grantor may withhold payment of any tax, assessment, or claim in connection with a
good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized
If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the lien
arises or, if a lien is flied, within fifteen (15) days after Grantor has notice of the filing, secure the discharge
of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and
attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien In
any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before
enforcement against the Property Grantor shall name Lender as an additional obligee under any surety
bond furnished in the contest proceedings
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued)
Page 4
Evidence of Payment Grantor shall upon demand furnish to Lender satisfactory evidence of payment of
the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at
any time a written statement of the taxes and assessments against the Property
Notice of Construction Grantor shall notify Lender at least fifteen (15) days before any work is
commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's
lien, matenalmen's lien, or other lien could be asserted on account of the work, services, or materials
Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that
Grantor can and will pay the cost of such improvements
PROPERTY DAMAGE INSURANCE The following provisions relating to insuring the Property are a part of this
Deed of Trust
Maintenance of Insurance Grantor shall procure and maintain policies of fire insurance with standard
extended coverage endorsements on a replacement basis for the full insurable value covering all
Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause,
and with a standard mortgagee clause in favor of Lender Grantor shall also procure and maintain
comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee
and Lender being named as additional insureds in such liability insurance policies Additionally, Grantor
shall maintain such other insurance, including but not limited to hazard, business interruption, and boiler
insurance, as Lender may reasonably require Policies shall be written in form, amounts, coverages and
basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to
Lender Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates
of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or
diminished without at least thirty (30) days prior written notice to Lender Each insurance policy also shall
include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any
act, omission or default of Grantor or any other person Should the Real Property be located in an area
designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,
Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is
given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal
balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits
set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
insurance for the term of the loan
Application of Proceeds Grantor shall promptly notify Lender of any loss or damage to the Property
Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty Whether or
not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any
insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the
Property, or the restoration and repair of the Property If Lender elects to apply the proceeds to restoration
and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory
to Lender Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the
proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Deed of
Trust Any proceeds which have not been disbursed within 180 days after their receipt and which Lender
has not committed to the repair or restoration of the Property shall be used first to pay any amount owing
to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied
to the principal balance of the Indebtedness If Lender holds any proceeds after payment in full of the
Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear
Grantor's Report on Insurance Upon request of Lender, however not more than once a year, Grantor shall
furnish to Lender a report on each existing policy of insurance showing (1) the name of the insurer, (2)
the risks insured, (3) the amount of the policy, (4) the property insured, the then current replacement
value of such property and the manner of determining that value, and (5) the expiration date of the
policy Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender
determine the cash value replacement cost of the Property
LENDER'S EXPENDITURES If any action or proceeding is commenced that would materially affect Lender's
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued) Page 5
interest in the Property or if Grantor fads to comply with any provision of this Deed of Trust or any Related
Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is
required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Grantor's behalf
may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to
discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or
placed on the Property and paying all costs for insuring, maintaining and preserving the Property All such
expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the
Note from the date incurred or paid by Lender to the date of repayment by Grantor All such expenses will
become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand, (B) be added to
the balance of the Note and be apportioned among and be payable with any installment payments to become
due during either (1) the term of any applicable insurance policy, or (2) the remaining term of the Note, or
(C) be treated as a balloon payment which will be due and payable at the Note's maturity The Deed of Trust
also will secure payment of these amounts Such right shall be in addition to all other rights and remedies to
which Lender may be entitled upon Default
WARRANTY, DEFENSE OF TITLE The following provisions relating to ownership of the Property are a part of
this Deed of Trust
Title Grantor warrants that (a) Grantor holds good and marketable title of record to the Property in fee
simple, free and clear of all liens and encumbrances other than those set forth in the Real Property
description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted
by, Lender in connection with this Deed of Trust, and (b) Grantor has the full right, power, and authority
to execute and deliver this Deed of Trust to Lender
Defense of Title Subject to the exception in the paragraph above, Grantor warrants and will forever
defend the title to the Property against the lawful claims of all persons In the event any action or
proceeding is commenced that questions Grantor's title or the interest of Trustee or Lender under this Deed
of Trust, Grantor shall defend the action at Grantor's expense Grantor may be the nominal party in such
proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the
proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender
such instruments as Lender may request from time to time to permit such participation
Compliance With Laws Grantor warrants that the Property and Grantor's use of the Property complies
with all existing applicable laws, ordinances, and regulations of governmental authorities
Survival of Representations and Warranties All representations, warranties, and agreements made by
Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be
continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall
be paid in full
CONDEMNATION The following provisions relating to condemnation proceedings are a part of this Deed of
Trust
Proceedings If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing,
and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the
award Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in
the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will
deliver or cause to be delivered to Lender such instruments and documentation as may be requested by
Lender from time to time to permit such participation
Application of Net Proceeds If all or any part of the Property is condemned by eminent domain
proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require
that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or
restoration of the Property The net proceeds of the award shalt mean the award after payment of all
reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the
condemnation
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued)
Page 6
IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES The following provisions
relating to governmental taxes, fees and charges are a part of this Deed of Trust
Current Taxes, Fees and Charges Upon request by Lender, Grantor shall execute such documents in
addition to this Deed of Trust and take whatever other action is requested by Lender to perfect and
continue Lender's lien on the Real Property Grantor shall reimburse Lender for all taxes, as described
below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust,
including without limitation all taxes, fees, documentary stamps, and other charges for recording or
registering this Deed of Trust
Taxes The following shall constitute taxes to which this section applies (1) a specific tax upon this type
of Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust, (2) a specific
tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness
secured by this type of Deed of Trust, (3) a tax on this type of Deed of Trust chargeable against the
Lender or the holder of the Note, and (4) a specific tax on all or any portion of the Indebtedness or on
payments of principal and interest made by Grantor
Subsequent Taxes If any tax to which this section applies is enacted subsequent to the date of this Deed
of Trust, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of
its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax
before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section
and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to
Lender
SECURITY AGREEMENT, FINANCING STATEMENTS The following provisions relating to this Deed of Trust as
a security agreement are a part of this Deed of Trust
Security Agreement This instrument shall constitute a Security Agreement to the extent any of the
Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform
Commercial Code as amended from time to time
Security Interest Upon request by Lender, Grantor shall execute financing statements and take whatever
other action is requested by Lender to perfect and continue Lender's security interest in the Rents and
Personal Property In addition to recording this Deed of Trust in the real property records, Lender may, at
any time and without further authorization from Grantor, file executed counterparts, copies or
reproductions of this Deed of Trust as a financing statement Grantor shall reimburse Lender for all
expenses incurred in perfecting or continuing this security interest Upon default, Grantor shall not remove,
sever or detach the Personal Property from the Property Upon default, Grantor shall assemble any
Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor
and Le: -,der and ninka it available to Lender within three (3) days after receipt of written demand from
Lender to the extent permitted by applicable law
Addresses The mailing addresses of Grantor (debtor) and Lender (secured party) from which information
concerning the security interest granted by this Deed of Trust may be obtained (each as required by the
Uniform Commercial Code) are as stated on the first page of this Deed of Trust
FURTHER ASSURANCES, ATTORNEY-IN-FACT The following provisions relating to further assurances and
attorney-in-fact are a part of this Deed of Trust
Further Assurances At any time, and from time to time, upon request of Lender, Grantor will make,
execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and
when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such
times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds
of trust, security deeds, security agreements, financing statements, continuation statements, instruments
of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary
or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations
under the Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued) Page 7
created by this Deed of Trust as first and prior liens on the Property, whether now owned or hereafter
acquired by Grantor The lien of this Deed of Trust and the security interest granted hereby will
automatically attach, without further act, to all after-acquired property attached to and or used in the
operation of the Property or any part thereof Unless prohibited by law or Lender agrees to the contrary in
writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters
referred to in this paragraph
Attorney-rn-Fact If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may
do so for and in the name of Grantor and at Grantor's expense For such purposes, Grantor hereby
irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of making, executing, delivering,
filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to
accomplish the matters referred to in the preceding paragraph
FULL PERFORMANCE If Grantor pays all the Indebtedness when due, and otherwise performs all the
obligations imposed upon Grantor under this Deed of Trust, Lender shall execute and deliver to Trustee a
request for full reconveyance and shall execute and deliver to Grantor suitable statements of termination of any
financing statement on file evidencing Lender's security interest in the Rents and the Personal Property Any
reconveyance fee required by taw shall be paid by Grantor, if permitted by applicable law
DEFAULT Each of the following, at Lender's option, shall constitute an Event of Default under this Deed of
Trust
Payment Default Grantor fails to make any payment when due under the Indebtedness
Default on Other Payments Failure of Grantor within the time required by this Deed of Trust to make any
payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge
of any lien
Other Defaults Grantor fails to comply with or to perform any other term, obligation, covenant or
condition contained in this Deed of Trust or in any of the Related Documents or to comply with or to
perform any term, obligation, covenant or condition contained in any other agreement between Lender and
Grantor
Compliance Default Failure to comply with any other term, obligation, covenant or condition contained in
this Deed of Trust, the Note or in any of the Related Documents If such a failure is curable and if Grantor
has not been given a notice of a breach of the same provision of this Deed of Trust within the preceding
twelve (12) months, it may be cured (and no Event of Default will have occurred) if Grantor, after Lender
sends written notice demanding cure of such failure (a) cures the failure within fifteen (15) days, or (b) if
the cure requires more than fifteen (15) days, immediately initiates steps sufficient to cure the failure and
thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as
soon as reasonably practical
Default in Favor of Third Parties Should Grantor default under any loan, extension of credit, security
agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person
that may materially affect any of Grantor's property or Grantor's ability to repay the Indebtedness or
perform their respective obligations under this Deed of Trust or any of the Related Documents
False Statements Any warranty, representation or statement made or furnished to Lender by Grantor or
on Grantor's behalf under this Deed of Trust or the Related Documents is false or misleading in any material
respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter
Defective Collateralization This Deed of Trust or any of the Related Documents ceases to be in full force
and effect (including failure of any collateral document to create a valid and perfected security interest or
lien) at any time and for any reason
Insolvency The dissolution or termination of Grantor's existence as a going business, the insolvency of
Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of
creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued)
insolvency laws by or against Grantor
Page 8
Creditor or Forfeiture Proceedings Commencement of foreclosure or forfeiture proceedings, whether by
judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any
governmental agency against any property securing the Indebtedness This includes a garnishment of any
of Grantor's accounts, including deposit accounts, with Lender However, this Event of Default shall not
apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is
the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor
or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture
proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond
for the dispute
Breach of Other Agreement Any breach by Grantor under the terms of any other agreement between
Grantor and Lender that is not remedied within any grace period provided therein, including without
limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether
existing now or later
Events Affecting Guarantor Any of the preceding events occurs with respect to any guarantor, endorser,
surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or
accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under,
any Guaranty of the Indebtedness
Adverse Change A material adverse change occurs in Grantor's financial condition, or Lender believes the
prospect of payment or performance of the Indebtedness is impaired
Insecurity Lender in good faith believes itself insecure
RIGHTS AND REMEDIES ON DEFAULT If an Event of Default occurs under this Deed of Trust, at any time
thereafter, Trustee or Lender may exercise any one or more of the following rights and remedies
Election of Remedies Election by Lender to pursue any remedy shall not exclude pursuit of any other
remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under
this Deed of Trust, after Grantor's failure to perform, shall not affect Lender's right to declare a default and
exercise its remedies
Accelerate Indebtedness Lender shall have the right at its option wi-Lhout notice to Grantor to declare the
entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would
be required to pay
Express Power of Sale Provision Upon the application or request of Lender, it shall be lawful for and the
duty of the Trustee, and the Trustee is hereby authorized and empowered, to expose to sale and to sell the
Property at public auction for cash, after having first complied with all applicable requirements of North
Carolina law with respect to the exercise of powers of sale contained in deeds of trust or such other sales
appropriate under the circumstances, and upon any such sale, the Trustee shall convey title to the
purchaser in fee simple In the event of any sale under this Deed of Trust by virtue of the exercise of the
powers granted in this Deed of Trust, or pursuant to any order and any judicial proceeding or otherwise,
the Property may be sold as an entirety or in separate parcels and in such manner or order as Lender in its
sole discretion may elect Trustee shall be authorized to hold a sales pursuant to North Carolina General
Statute Chapter 45 If Trustee so elects, Trustee may sell the Property covered by this Deed of Trust at
one or more separate sales in any manner permitted by applicable North Carolina law, and any exercise of
the powers granted in this Deed of Trust shall not extinguish or exhaust such powers, until the entire
Property is sold or the Indebtedness is paid in full If such Indebtedness is now or hereafter further secured
by any chattel mortgages, pledges, contracts of guaranty, assignments of lease or other security
instruments, Lender may at its option exercise the remedies granted under any of the security agreements
either concurrently or independently and in such order as Lender may determine
Foreclosure With respect to all or any part of the Real Property, the Trustee shall have the right to
foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued) Page 9
case in accordance with and to the full extent provided by applicable law
UCC Remedies With respect to all or any part of the Personal Property, Lender shall have all the rights and
remedies of a secured party under the Uniform Commercial Code
Collect Rents Lender shall have the right, without notice to Grantor to take possession of and manage the
Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over
and above Lender's costs, against the Indebtedness In furtherance of this right, Lender may require any
tenant or other user of the Property to make payments of rent or use fees directly to Lender If the Rents
are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact to endorse
instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the
proceeds Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the
obligations for which the payments are made, whether or not any proper grounds for the demand existed
Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver
Appoint Receiver Lender shall have the right to have a receiver appointed to take possession of all or any
part of the Property, with the power to protect and preserve the Property, to operate the Property
preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and
above the cost of the receivership, against the Indebtedness The receiver may serve without bond if
permitted by law Lender's right to the appointment of a receiver shall exist whether or not the apparent
value of the Property exceeds the Indebtedness by a substantial amount Employment by Lender shall not
disqualify a person from serving as a receiver
Tenancy at Sufferance If Grantor remains in possession of the Property after the Property is sold as
provided above or Lender otherwise becomes entitled to possession of the Property upon default of
Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall,
at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the
Property immediately upon the demand of Lender
Other Remedies Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or
the Note or by law
Notice of Sale Lender shall give Grantor reasonable notice of the time and place of any public sale of the
Personal Property or of the time after which any private sale or other intended disposition of the Personal
Property is to be made Reasonable notice shall mean notice given at least ten (10) days before the time of
the sale or disposition Any sale of the Personal Property may be made in conjunction with any sale of the
Real Property
Sale of the Property To the extent permitted by applicable law, Grantor hereby waives any and all rights
to have the Property marshalled In exercising its rights and remedies, the Trustee or Lender shall be free
to sell all or any part of the Property together or separately, in one sale or by separate sales Lender shall
be entitled to bid at any public sale on all or any portion of the Property
Attorneys' Fees, Expenses If Lender institutes any suit or action to enforce any of the terms of this Deed
of Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys'
fees at trial and upon any appeal Whether or not any court action is involved, and to the extent not
prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time
for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness
payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid
Expenses covered by this paragraph include, without limitation, however subject to any limits under
applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit,
including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), appeals, and any anticipated post -judgment collection services, the cost
of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal
fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law Grantor also will
pay any court costs, in addition to all other sums provided by law
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued) Page 10
Rights of Trustee Trustee shall have all of the rights and duties of Lender as set forth in this section
POWERS AND OBLIGATIONS OF TRUSTEE The following provisions relating to the powers and obligations of
Trustee are part of this Deed of Trust
Powers of Trustee In addition to all powers of Trustee arising as a matter of law, Trustee shall have the
power to take the following actions with respect to the Property upon tl-ie written request of Leader and
Grantor (a) loin in preparing and filing a rnap or plat of the Real Property, including the dedication of
streets or other rights to the public, (b) loin in granting any easement or creating any restriction on the
Real Property, and (c) loin in any subordination or other agreement affecting this Deed of Trust or the
interest of Lender under this Deed of Trust
Trustee Trustee shall meet all qualifications required for Trustee under applicable law In addition to the
rights and remedies set forth above, with respect to all or any part of the Property, the Trustee shall have
the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure,
in either case in accordance with and to the full extent provided by applicable law
Trustee's Fees The Trustee's commission shall be five percent (5%) of the gross proceeds of the sale for
a completed foreclosure In the event foreclosure is commenced, but not completed, Grantor shall pay all
expenses incurred by Trustee and partial commission computed on five percent (5%) of the outstanding
Indebtedness, according to the following schedule one-fourth of the commission before Trustee issues a
notice of hearing on the right to foreclosure, one-half of the commission after issuance of notice of hearing,
three-fourths of the commission after a hearing, and the full commission after the initial sale
Express Power to Substitute a Trustee Lender shall have the irrevocable right to remove at any time and
from time to time without limit the Trustee named in this Deed of Trust without notice or cause and to
appoint a successor by an instrument in writing, duly acknowledged, in such a form as to entitle such
written instrument to be recorded in the State of North Carolina, and, in the event of the death or
resignation of the Trustee named in this Deed of Trust, Lender shall have the right to appoint a successor
by such written instrument, and any Trustee so appointed shall be vested with the title to the Property, and
shall possess all the powers, duties and obligations herein conferred on the Trustee in the same manner
and to the same extent as though the successor trustee were named in this Deed of Trust as Trustee
NOTICES Any notice required to be given under this Deed of Trust, including without limitation any notice of
default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when
actually received by talefecsimile (unless otherwise required by law), when deposited with a nationally
recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or
registered mail postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust
Any party may change its address for notices under this Deed of Trust by giving formal written notice to the
other parties, specifying that the purpose of the notice is to change the party's address For notice purposes,
Grantor agrees to keep Lender informed at all times of Grantor's current address Unless otherwise provided or
required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be
notice given to aft Grantors
ARBITRATION (a) This paragraph concerns the resolution of any controversies or claims between the parties,
whether arising in contract, tort or by statute, including but not limited to controversies or claims that arise out
of or relate to (i) this agreement (including any renewals, extensions or modifications►, or (u) any document
related to this agreement (collectively a "Claim") For the purposes of this arbitration provision only, the term
"parties" shall include any parent corporation, subsidiary or affiliate of the Bank involved in the servicing,
management or administration of any obligation described or evidenced by this agreement
(b) At the request of any party to this agreement, any Claim shell be resolved by binding arbitration in
accordance with the Federal Arbitration Act (Title 9, U S Code) (the "Act") The Act will apply even though
this agreement provides that it is governed by the law of a specified state
(c) Arbitration proceedings will be determined in accordance with the Act, the applicable rules and procedures
for the arbitration of disputes of JAMS or any successor thereof ("JAMS"), and the terms of this paragraph In
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued) Page 11
the event of any inconsistency, the terms of this paragraph shall control
(d) The arbitration shall be administered by JAMS and conducted, unless otherwise required by law, in any U
S state where real or tangible personal property collateral for this credit is located or if there is no such
collateral, in the state specified in the governing law section of this agreement All Claims shall be determined
by one arbitrator, however, if Claims exceed $5,000,000, upon the request of any party, the Claims shall be
decided by three arbitrators All arbitration hearings shall commence within 90 days of the demand for
arbitration and close within 90 days of commencement and the award of the arbitrator(s) shall be issued within
30 days of the close of the hearing However, the arbitrator(s), upon a showing of good cause, may extend
the commencement of the hearing for up to an additional 60 days The arbitrator(s) shall provide a concise
written statement of reasons for the award The arbitration award may be submitted to any court having
jurisdiction to be confirmed and enforced
(e) The arbitrator(s) will have the authority to decide whether any Claim is barred by the statute of limitations
and, if so, to dismiss the arbitration on that basis For purposes of the application of the statute of limitations,
the service on JAMS under applicable JAMS rules of a notice of Claim is the equivalent of the filing of a
lawsuit Any dispute concerning this arbitration provision or whether a Claim is arbitratable shall be determined
by the arbitrator(s) The arbitrator(s) shall have the power to award legal fees pursuant to the terms of this
agreement
(f) This paragraph does not limit the right of any party to (i) exercise self-help remedies, such as but not
limited to, setoff, (ii) initiate judicial or nonjudicial foreclosure against any real or personal property collateral,
(iii) exercise'any judicial or power of sale rights, or (iv) act in a court of law to obtain an interim remedy, such
as but not limited to, injunctive relief, writ of possession or appointment of a receiver, or additional or
supplementary remedies
(g) The filing of a court action is not intended to constitute a waiver of the right of any party, including the
suing party, thereafter to require submittal of the Claim to arbitration
COUNTERPARTS This Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of Trust
Amendments This Deed of Trust, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this Deed of Trust No alteration
of or amendment to this Deed of Trust shall be effective unless given in writing and signed by the party or
parties sought to be charged or bound by the alteration or amendment
Annual Reports If the Property is used for purposes other than Grantor's residence, Grantor shall furnish
to Lender, upon request, a certified statement of net operating income received from the Property during
Grantor's previous fiscal year in such form and detail as Lender shall require "Net operating income" shall
mean all cash receipts from the Property less all cash expenditures made in connection with the operation
of the Property
Caption Headings Caption headings in this Deed of Trust are for convenience purposes only and are not to
be used to interpret or define the provisions of this Deed of Trust
Merger There shall be no merger of the interest or estate created by this Deed of Trust with any other
interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without
the written consent of Lender
Governing Law This Deed of Trust will be governed by, construed and enforced in accordance with
federal law and the laws of the State of North Carolina This Deed of Trust has been accepted by Lender in
the State of North Carolina
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued)
Page 12
Choice of Venue If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction
of the courts of any County, State of North Carolina
No Waiver by Lender Lender shall not be deemed to have waived any rights under this Deed of Trust
unless such waiver is given in writing and signed by Lender No delay or omission on the part of Lender in
exercising any right shall operate as a waiver of such right or any other right A waiver by Lender of a
provision of this Deed of Trust shall not prejudice or constitute a waiver of Lender's right otherwise to
demand strict compliance with that provision or any other provision of this Deed of Trust No prior waiver
by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of
Lender's rights or of any of Grantor's obligations as to any future transactions Whenever the consent of
Lender is required under this Deed of Trust, the granting of such consent by Lender in any instance shall
not constitute continuing consent to subsequent instances where such consent is required and in all cases
such consent may be granted or withheld In the sole discretion of Lender
Severability IF a court of competent jurisdiction finds any provision of this Deed of Trust to be illegal,
invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal,
invalid, or unenforceable as to any other circumstance If feasible, the offending provision shall be
considered modified so that it becomes legal, valid and enforceable If the offending provision cannot be so
modified, it shall be considered deleted from this Deed of Trust Unless otherwise required by law, the
illegality, invalidity, or unenforceability of any provision of this Deed of Trust shall not affect the legality,
validity or enforceability of any other provision of this Deed of Trust
Successors and Assigns Subject to any limitations stated in this Deed of Trust on transfer of Grantor's
interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors
and assigns If ownership of the Property becomes vested in a person other than Grantor, Lender, without
notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the
Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this
Deed of Trust or liability under the Indebtedness
Time is of the Essence Time is of the essence in the performance of this Deed of Trust
DEFINITIONS The following capitalized words and terms shall have the following meanings when used in this
Deed of Trust Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts
in lawful money of the United States of America Words and terms used in the singular shall include the plural,
and the plural shall include the singular, as the context may require Words and terms not otherwise defined in
this Deed of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code
Beneficiary The word "Beneficiary" means Bank of America, N A , and its successors and assigns
Borrower The word "Borrower" means Northside Baptist Church of Wilmington, Inc , and all other persons
and entities signing the Note in whatever capacity
Deed of Trust The words "Deed of Trust" mean this Deed of Trust among Grantor, Lender, and Trustee,
and includes without limitation all assignment and security interest provisions relating to the Personal
Property and Rents
Default The word "Default" means the Default set forth in this Deed of Trust in the section titled
"Default"
Environmental Laws The words "Environmental Laws" mean any and all state, federal and local statutes,
regulations and ordinances relating to the protection of human health or the environment, including without
limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as
amended, 42 U S C Section 9601, et seq ("CERCLA"), the Superfund Amendments and Reauthorization
Act of 1986, Pub L No 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U S C
Section 1801, et seq , the Resource Conservation and Recovery Act, 42 U S C Section 6901, et seq , or
other applicable state or federal laws, rules, or regulations adopted pursuant thereto
Event of Default The words "Event of Default" mean any of the events of default set forth in this Deed of
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued)
Trust in the default section of this Deed of Trust
Grantor The word "Grantor" means Northside Baptist Church of Wilmington, Inc
Page 13
Guaranty The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation
party to Lender, including without limitation a guaranty of all or part of the Note
Hazardous Substances The words "Hazardous Substances" mean materials that, because of their
quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or
potential hazard to human health or the environment when improperly used, treated, stored, disposed of,
generated, manufactured, transported or otherwise handled The words "Hazardous Substances" are used
in their very broadest sense and include without limitation any and all hazardous or toxic substances,
materials or waste as defined by or listed under the Environmental Laws The term "Hazardous
Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof
and asbestos
Improvements The word "Improvements" means all existing and future improvements, buildings,
structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other
construction on the Real Property
Indebtedness The word "Indebtedness" means the indebtedness evidenced by the Note or Related
Documents, including all principal and interest together with all other indebtedness and costs and expenses
for which Borrower or Grantor or any other borrower, guarantor, pledgor, obligor or accommodation party
is responsible under this Agreement or under any of the Related Documents, including any swap, option or
forward obligations
Lender The word "Lender" means Bank of America, N A , its successors and assigns
Note The word "Note" means the promissory note dated April 25, 2003, in the original principal amount
of $1,905,059 00 from Grantor to Lender, together with all renewals of, extensions of, modifications of,
refinancings of, consolidations of, and substitutions for the promissory note or agreement
Personal Property The words "Personal Property" mean all equipment, fixtures, and other articles of
personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real
Property, together with all accessions, parts, and additions to, all replacements of, and all substitutions for,
any of such property, and together with all proceeds (including without limitation all insurance proceeds
and refunds of premiums) from any sale or other disposition of the Property
Property The word "Property" means collectively the Real Property and the Personal Property
Real Property The words "Real Property" mean the real property, interests and rights, as further described
in this Deed of Trust
Related Documents The words "Related Documents" mean all promissory notes, credit agreements, loan
agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust,
security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now
or hereafter existing, executed in connection with the Indebtedness
Rents The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits,
and other benefits derived from the Property
Trustee The word "Trustee" means PRLAP, Inc , whose address is PRLAP, Inc c/o 1400 Best Plaza
Drive, Richmond, VA 23227 and any substitute or successor trustees
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued)
Page 14
GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND
GRANTOR AGREES TO ITS TERMS
IN WITNESS WHEREOF GRANTOR HAS CAUSED THIS DEED OF TRUST TO BE SIGNED IN GRANTOR'S
CORPORATE NAME BY GRANTOR'S DULY AUTHORIZED OFFICERS AND HAS CAUSED GRANTOR'S SEAL
TO BE AFFIXED TO THIS DEED OF TRUST BY THE AUTHORITY OF GRANTOR'S BOARD OF DIRECTORS ON
THE DATE SHOWN AT THE BEGINNNING OF THIS DEED OF TRUST
THIS DEED OF TRUST IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DEED OF TRUST IS AND
SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW
GRANTOR
NORTHSIDE BAPTIST CHURCH OF WILMINGTON, INC
By — �— (seal y
Clement Goodson, President of Northside Baptist Church of
Wilmington, Inc
. •� CA'
BYd4wc� � (Seal) ;:'(�.• �h
Diane F Waters, Sec \Treasurer of Northside Baptist Church of
.�'%•�
Wilmington, Inc -
ATTEST t • `�
SecretaryAssistant Secretary ! Corrpprateeal,�
••..
DEED OF TRUST
Loan No 01 -1004034 -RNC (Continued) Page 15
STATE OF
COUNTY OF
CORPORATE ACKNOWLEDGMENT
Nor4y► CCLroll nq
Mcw !- AVVocr
) SS
1, A Ir CitfAmij/l -45S , a Notary Public for said County and State,
certify that 5 _ __ __ -- personally came before me this day
and acknowledged that 4ar she is Secretary of Northside Baptist Church of Wilmington, Inc , a
corporation and that by authority duly given and as the act of the corporation, the foregoing instrument was
signed in its name by its President; Sec \Treasurer of Northside Baptist Church of Wilmington, Inc , respectively
sealed with its corporate seal, and attested by f,+fweal#er herself as its Secretary
Witness my hand and Notarial Seal this the . _ 25_
My Commission Expires
11141 A
( Affix Notarial Seal Here )
day of _Ai'I 1 _, 2003
Notbry Public
,`ti►11111 f 1 rrr��
`r• NOTARYit
SER ICc7�a� •`.
L—R PRO LIll DD ODE Cape ..Il— 1--.1 =1 M R gl.0 I-- RC T 001 M TR INN PR WL.
LEGA
A
LEGAL DESCRIPTION
First Tract•
BEING ALL of that certain tract or parcel of land containing 2.465 acres, more
or less and being more particularly described in the Deed to Northside Baptist
Church of Wilmington, Inc. recorded in Book 2810 at Page 0072 of the New
Hanover County Registry, reference to which is hereby made for a more
particular description,
Second Tract;
Located in Cape Fear Township, New Hanover County, North Carolina and
Beginning at a existing iron pipe in the eastern right of way line of Owls Lane
(60 foot public right of way) as it is recorded in Map Book 34 at Page 66 in
the New Hanover County Registry, said existing iron pipe is located North 14
degrees 42 minutes West - 394.38 feet from the point of intersection of the
eastern right of way line of Owls Lane and the northern right of Way line of
Bavarian Lane (SR #1322 - 60 foot public right of way). Running thence,
from the said point of beginning and with the eastern right of way line of Owls
Lane, North 14 degrees 42 minutes West - 268.8 feet to an existing iron pipe;
thence, North 75 degrees 18 minutes East - 124.80 feet to an existing iron
pipe; thence, North 14 degrees 42 minutes West -120.40 feet to an existing
iron pipe; thence, North 75 degrees 18 minutes East - 25.20 feet to an
existing iron pipe; thence, North 14 degrees 42 minutes West - 200.00 feet to
an existing iron pipe; thence, North 75 degrees 18 minutes East - 270.00 feet
to an existing iron pipe in the western right of way line of NC Highway #132
(200 foot public right of way); thence, with the western right of way line of
NC Highway #132, South 14 degrees 42 minutes East - 595.20 feet to an
existing iron pipe; thence, South 75 degrees 18 minutes West - 200.00 feet
to an existing iron pipe; thence, North 14 degrees 42 minutes West - 6.00
--feet-to ___feet_to an existing iron pipe; thence, South 75 degrees 18 minutes West -
220.0_0 feet to the point of beginning; containing 4.67 acres more or less and
— - —`- being those tracts of land recorded in Book 590 at Page 531, Book 847 at
Page 256, Book 802 at Page 341, Book 899 at Page 915, Book 950 at Page
646, Book 1096 at Page 68, and Book 1473 at Page 908 in the New Hanover
County Registry.
The First and Second Tracts are subject to a right-of-way and easement for
certain utilities recorded in Book 2810 at Page 0082 of the New Hanover
County Registry.
REBECCA T CHRISTIAN
REGISTER OF DEEDS, NEW HANOVER
216 NORTH SECOND STREET
WILMINGTON, NC 28401
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Filed For Registration: 04/25/2003 03:11:41 PM
Book: RE 3756 Page: 496-512
Document No.: 2003024425
DR 17 PGS $59.00
Recorder, JACQUELINE NELSON
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State of North Carolina, County of New Hanover
The foregoing certificate of AUDREY CLIFTON ROSS Notary is certified to be correct. This 25TH of April 2003
REWCAJ. CHP4SIThAN , REGISTER OF DEEDS
By:
�fyhksf Register of Deeds
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YELLOW PROBATE SHEET IS A VITAL PART OF YOUR RECORDED DOCUMENT.
PLEASE RETAIN WITH ORIGINAL DOCUMENT AND SUBMIT FOR RE-RECORDING.
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FOR REGISTRATION REGISTER OF DEEDS
REBECCA T. CHRISTIAN
NEW HANOVER COUNTY. NC
2002 JAN 22 04.01:41 PM
B 9 41 00
INSTRUMENT0 2CO2003379
WHEN RECORDED MAIL TO:
Bank of America, N.A.
NCI.014-19-02
P.O. BOX 33582
Charlotte, NC 28233-3582
SPACE ANVFT 12 LINE IS FOR AECORDEH'S UAE QNLY
This Dead of Trust prepared by:
X
Annette McKoy, Loan Administrator
DEED OF TRUST SECURING FUTURE ADVANCES
THIS DEED OF TRUST is dated January 21, 2002, among Northelde Baptist Church of Wilmington, Inc., whose
address Is 2501 N. College Road, Wilmington, NC 28405 ("Grantor"); Bank of America, N.A., whose address is
NCI -014-13-02, 100 North Tryon Street, Charlotte, NC 28255 (referred to below sometimes as "Lender" and
sometimes as "Beneficiary"); and PRLAP, Inc., whose address Is Portfolio Admin., VA2-410-02-01, 1400 Best
Plaza Drive, P. 0. Box 26865, Richmond, VA 23227 (referred to below as 'Trustee").
CONVEYANCE= AND GRANT. NOW, THEREFORE, as Security for the indebtedness, advancements and other suets expended by the
Beneficiary pursuant to this Deed of Trust and costs of collection (including attorneys' fees as provided In the Note) and other valuable
consideration, the receipt of which Is hereby ac4o vledged, Grantor has bargained, sold, given, granted and conveyed and does by these
presents bargaln, sell, give, grant and convey to Trustee, and Trustee's heirs or successors and assigns, for the benefit of Lender as
Beneficiary, ail of Grantor's right, tiflo, and interest in and to tate following described real property, together with all existing or subsequently erected or
affixed buildings, Improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights and ditch rights (Including stock in
ulltities with ditch or Irrigation rights); and all other righis, royalties, and profils relating to the real props ty including without limitation all minerais, oll,
gas, geothermal and similar matters, (the "Real Property") located In New Hanover County, State of North Carolina:
See Exhibit "A", which is attached to this Deed of Trust and made a part of this Deed of Trust as If fully set
forth herein.
The Real Property or Its address Is commonly known as 2501 and 2575 N. College Road, Wilmington, NC
28405.
To have and to hold said Real Property with all privileges and appurtenances thereunto belonging, to the
Trustee, his heirs, successors and assigns forever, upon the trusts, terms and conditions and for the uses
hereinafter set forth.
Grantor presently assigns to Lender (also known as Beneficiary In this Deed of Trust) all of Grantor's right, tMe, and interest in and to all present and
future leases of the Property and all Rents from the Property. In addition. Grantor grants to vendor a Uniform Commercial Code security Interest in the
Personal Property and Rents.
THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL
PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF: ANY AND ALL OBLIGATIONS
UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF
RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS ALSO GIVEN TO SECURE ANY AND ALL OF
GRANTOR'S OBLIGATIONS UNDER THAT CERTAIN CONSTRUCTION LOAN AGREEMENT BETWEEN GRANTOR AND LENDER OF EVEN DATE
HEREWITH. ANY EVENT OF DEFAULT UNDER THE CONSTRUCTION LOAN AGREEMENT, OR ANY OF THE RELATED DOCUMENTS
REFERRED TO THEREIN, SHALL ALSO BE AN EVENT OF DEFAULT UNDER THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN AND
ACCEPTED ON THE FOLLOWING TERMS:
FUTURE ADVANCES. The Indebtedness secured by this Dead of Trust is for present and suture obligations and this Dead of Trust is given to secure
all present and future obiigalions of Grantor to Benefldary. The period in which future obligations may be Incurred and secured by this Deed of Trust Is
the period between the date hereol and that date which Is fifteen (15) years from the date hereat. The amount of pressnl Cbllgalions Secured by INS
Deed of Trust is Five Hundred Thousand & 001100 Dollars ($5017,000.00) and the maximum principal amount, including present and future obligations,
which may be secured by this Deed of Trust a! any one ilme is Five Hundred Thousand & 001100 Dollars [$500,000.00,) Any addillonal amounts
advanced by Beneficiary pursuant to the provisions of this Deed of Trust shall be deemed necessary expenditures for the protection of the security.
Each future advance need not be evidenced by a written instrument or notation signed by Grantor or any other person evidencing or stipulating that
such advanca is secured by this Deed of Trust. All future obligations shall be considered to be made pursuant to the requirements of North Carolina
RETURN TO: DAVID C. BAREFOOT
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DEED OF TRUST
Loan No: AM -1004034 (Continued)
General Statutes Sections 45-67, et, seq., or any amendments thereto.
Page 2
PAYMENT AND PERFORMANCE. Except as otherwise provided in this Dead of Trust, Granter shall pay to Lender all amounts secured by this Deed of
Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's cKgations under the Note, this Deed of Trust, and the
Related Documents.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of theProperty shall be governed by the
following provisions:
Possession and Use. Until the occurrence of an Event of De'ault, Grantor may (1) remain In possession and control of the Property; (2) use,
operate or manage the Property; and (3) collect the Rents from the Properly.
Duty to Maintain. Grantor shall maintain the Property In tenantable condition and promptly perform all repairs, replacements, and maintenance
necessary to preserve Its value.
Compliance With Envlronmenial Laws. Grantor represents and warrants to lender that: (1) During the period of Grantor's ownership of the
Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been,
except as previously disclosed to and acknowledged by Lender In writing, (a) any breach or violation of any Environmental Laws, (b) any use,
generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the
Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating
to such matters; and (3) Except as previously disclosed to and acknowledged by Lender In writing, (a) neither Grantor nor any tenant,
contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous
Substance on, under, about or from the Property; and (b) any such actfvfty shall be conducted in compliance with all applicable federal, stale,
and local laws, regulations and ordinances, including without Ilmltalfon all Environmental Laws. Grantor authorizes Lender and its agents to enter
upon the Property to make such Inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the
Property with this secilon of the Deed of Trust. Any inspectlons or tests made by Lender shall be for Lender's purposes only and shall not be
construed to create any responsibility or Ilability on the part of Lender to Grantor or to any other person, The representations and warranties
contained herein are based on Grantor's due diligence In Investigating the Property for hazardous Substances. Grantor hereby (1) releases and
waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup of other costs under any
such laws; and (2) agrees to Indemnity and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses
which Lender may directly or Indirectly sustain or suffer resulting from a breach of this section of the Dead of Trust or as a consequence of any
use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownarshlp or interest In the Property,
whether or not the same was or should have been known to Grantor. The provisions of this section of the Dead of Trust, including the obllgalion
to Indemnity, shall survive the payment of the Indebtedness and the salksfaction and reconveyance of the lian of this Deed of Trust and shall not
be affected by Lender's acquisition of any interest In the Property, whether by foreclosure or otherwise.
Nuisance, Waste. Grantor shall not cause, conduct or permit any uisance nor commit, permit, or suffer any stripping of or waste on or to the
Properly or any portion of the Properly. Without Ilmiting the generality of the foregoing, Grantor will not remove, or grant to any other party the
right to remove, any timber, minerals (Including oil and gas), coal, clay, scoria, sell, gravel or rock products without Lender's prior written consent.
Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written
consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace
such Improvements with Improvements of at least equal value.
Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable tlmos to attend to
Lender's Interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Dead of Trust.
Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in
effect, of all governmental authorities applicable to the use ar occupancy of the Properly, Including without limilalon, the Amerlcans With
Disablillies Act, Grantor may contest In good lalth any such law, ordinance, or regulation and withhold compliance during any proceeding,
Including appropriate appeals, se long as Grantor has notified Lender In writing prior to doing so and so long as, In Lender's sole opinion,
Lender's interests In the Property are not jeopardlxad. Lender may require Grantor to post adequate security or a surety bond, reasonably
satisfactory to Lender, to protect Lender's Interest.
Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set
forth above In this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property.
Construction Loan. If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete construction of
any Improvements on the Properly, the Improvements shall be completed no tater than the maturity date of the foie (or such earlier date as
Lender may reasonably establish) and Grantor shall pay In full all Casts and expenses in connection with the work. Lander will d[SbUr5e loan
proceeds Under such terms and conditions as Lender may deem reasonably necessary to insure that the Interest created by this Deed of Trust
shall have priority over all possible liens, Including those of material suppliers and workmen. Lender may require, among other things, that
disbursement rectuesis be supported by rsceipled bills, expense affidavits, waivers of liens, oonslruetion progress reports, and such other
documentation as Lender may reasonably request.
DUE ON SALE — CONSENT BY LENDER, Lender may, at Lender's option, declare immediately due and payable all sums secured by this Deed of
Trust upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any Interest in the Heal Properly. A "sale
or transfer" means the conveyance of Real Property or any right, title or Interest in the Real Property; whether Iagal, beneficlal or equllebte; whether
voluntary or Involuntary; whether by outright sale, deed, Installment sale contract, land contract, contract for deed, leasehold Interest with a term greater
than three (3) years, lease—option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real
Property, or by any other method of conveyance of an Interest in the Real property. If any Grantor Is a corporation, partnership or limited liability
company, transfer also Includes any change In ownership of more than twenty—five percent (25%) of the voting stock, partnership Interests or limited
liabllity company Interests, as the case may be, of such Grantor. However, this option shall not be exercised by Lender if such exercise is prohlbiled by
federal law or by North Carolina law,
TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust:
Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and
sewer), fines and Impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services
rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of
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DEED OF TRUST
Loan No: AM -1004034 (Continued)
Page
Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust.
Right to Contest. Grantor may withhold payment of any tax, assessment, or claim In connection with a good faith dispute over the obligation to
pay, so long as Lender's interest in the Property is not jeopardized. It a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen
(15) days after the lien arises or, it a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the dischArg a of the Ren, or if
requested by Lander, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender In an amount sufflclent
to discharge the lien plus any costs and attorneys' fees, or other charges that couid accrue as a result of a foreclosure or sale under the lien. In
any contest, Grantor shall defend Itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall
name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the faxes or assessments and shall
authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
Property,
Notice of CDnstructlon. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any
materlals are supplied to the Property, It any mechanic's Ilan, materialmen's lien, or other lien could be asserted on account of the work, services,
or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender thal Grantor can and will pay the
cost of such improvements.
PROPERTY DAMAGE INSURANCE. The following provisions relating to Insuring the Property are a part of this Deed of Trust
Maintenance of Insurance. Grantor shO procure and maintain policies of fire insurance with standard extended coverage endorsaments on a
replacement basis for the full insurable vacua covering all Improve manta on the Real Property in an amount sufficient to avoid application of any
coinsurance clause, and with a standard mortgagee clause In favor of Lender. Grantor shall also procure and maintain comprehensive general
Ilabillty insurance to such coverage amounts as Lender may request with Trustee and Lender being named as additional Insureds In such itablifty
insurance policies. Additlonelly, Grantor shall maintain such other Insurance, including but not limited to hazard, business interruption, and boiler
Insurance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender
and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to
time the policies or certificates of Insurance In form satlsfactory to Lender, Including stipulations that coverages will not be cancelled or diminished
Without at least thirty (30) days prior written notice to Lender. Each Insurance policy also shall Include an endorsement providing that coverage in
favor of Lander will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be
located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to
obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located In a special
flood hazard area, for the full unpaid princlpal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy
limits set under the National Flood insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
fog n.
Application of Proceeds. Grantor shall promptly notify Lender of any foss or damage to the Property. Lender may make proof of loss If Grantor
fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and
retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or
the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Granlor shall repair of replace the
damaged or destroyed improvements in a manner salisfaclory to Lender. Lender shall, upon satisfactory proof of such expendilure, pay or
reimburse Grantor from the proceeds for the reasonable cost of repair or restoration If Grantor is not In default under this Dead of Trust. Any
proceeds which have not been disbursed within 180 days aftar their receipt and which Lender has not committed 10 the repair or restoration of the
Property shall be used first to pay any amount owing to Lander under Ihls Deed of Trust, than to pay accrued interest, and the remainder, If any,
shall be applied to the principal balance of the indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such
proceeds shall be paid to Grantor as Grantor's Interests may appear.
Unexpired Insurance at Sate, Any unexpired insurance shall Inure to the benefit of, and pass to, the purchaser of the Property covered by this
Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of such Property.
Grantor's Report on insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lander a report on each
@xlsling policy of Insurance showing. (1) the name of the insurer; (2) the risks insured; {3) the amount of the policy; (4) the property insured,
the then current replacement valua of such property, and the mennor of delermIning that vacua; and (5) 1 h a exp iraflan data of the policy. Grantor
shall, upon request of Lender, have an Independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property.
LENDER'S EXPENDITURES. If any action or proceeding Is commenced !hal would materially affect Lender's Interest in the Property or if Grantor fails
to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due
any amounts Grantor is required to discharge or pay under this Dead of Trust or any Related Documents, Lender on Grantor's behalf may (but shall not
be obligated to) take any action that Lender deems appropriate, Including but not limited to discharging or paying all taxes, lions, security interests,
encumbrances and other Claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property.
All such expenditures incurred or paid by Lender for such purposes will then beer interest at the rate charged under the Note from the date incurred or
paid by Lender to the date of repayment by Grantor. Alt such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be
Payable on demand; (8) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become
due during either (1) the term of any app:icable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a baltoon payment
which wlli be due and payable at the Note's maturity. The Deed of Trust also will secure payment of Ihass amounts. Such right shall be In addilIon to
all other nghIs and remedies to which Lender may be entified upon Data uit.
WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
Title. Grantor warrants that (a) Grantor holds 90001 and marketable title of record to the Property In fee simple, tree and clear of all liens and
encumbrances other than those sel forth in the Rear Property description or in any title Insurance policy, Lille report, or final title opinion issued In
favor of, and fiCceptad by, Lender In connection with this Deed of Trust, and (b) Grantor has the full right, power, and authority td execute and
deliver this Deed of Trust to Lender.
Defense of Title. Subject 10 the exception In the paragraph above, Grantor warrants and will forever defend the till@ to the Property against the
lawful claims of all parsons. In the event any action or proceeding Is commenced that questions Grantor's tine or the interest of Trustee or Lander
under this Deed of Trust, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lander
Shell be entilled to participate In the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will
deliver, or cause to be delivered, to Lender such instruments as Lender may request from lime to lime to permit Such participation.
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DEED OF TRUST
Loan No: AM -1004034 (Continued)
Page
Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws,
ordinances, and regulations of governmental authorities.
Survival of Representations end Warranlles. All representations, warranties, and agreements made by Grantor In this Dead of Trust shall
survive the execution and delivery of this Dead of Trust, shall be continuing In nature, and shall remain In full force and effect until such time as
Grantor's Indebtedness shall be paid in full.
CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
Proceedings. If any proceeding in condemnellon is Fled. Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such
steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be
entitled to participate in the proceeding and to ba represented in the proceeding by counsel of its own choica, and Grantor wiit doIIvar or cause to
be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such parlicipalion.
Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase
in lieu of condemnation, Lender may at Its election require that all or any portion of the net proceeds of the award be applied to the indebtedness
or the repair or restoration of the Property. The net proceeds of the award shall mean the award after paymeni of all reasonable costs, expanses.
and allorneys' fees incurred by Trustee or Lender In canneciion with the condemnation.
IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees
and charges are a part of this Dead of Trust;
Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addilien to this Deed of Trust and take
whatever other action Is requested by Lender to perfect and continue Lander's lien on the Real Property. Grantor shall reimburse Lender for all
faxes, as described below, together with all expenses incurred In recording, perfecting or continuing this Deed of Trust, including without iimltallon
all taxes, fees, documentary 51amps, and other charges for recording or registering this steed of Trust.
Taxes. The following shall constitute taxes to which this section applles: (1) a specific tax upon this type of Deed of Trust or upon ail or any part
of the indebtedness secured by this Dead of Trust; (2) a specific tax on Grantor which Grantor Is authorized or required to deduct from
Payments an the Indebtedness secured by this type, of Deed of Trust; (3) a tax on this type of Deed of Trust chargsabie against the Lender or the
holder of the Nolo; and (4) a specific tax on all or any portlen of the Indabiadnass Or on payments of prino10at and inlerest made by Grentor,
Subsequent Taxes, Ii any tax to which this section applies is enacled subsequent Ic the date of this Deed of Trust, this avant shall have the same
affect as an Event of Date uit, and Lender may exercise any or ail of its avallable remedies for an Eveni of DolauIt as provided below unless Granlor
either (1) pays the lax before it becomes delinquent, or (2) contests the tax as provided above to the Taxes and Liens section and deposits with
Lender cash or a sufficient corporate surety bond or other security saIisfaclory io Lender.
SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of
this Doe of Trust:
Security Agreement. This Instrument shall constitute a Security Agreement to the extent any of the Prop" constitutes fixtures, and Lender shall
have all of the rights of a secured party under tha Uniform Commercial Code as amended from time to lime.
Security Interest. Upon request by Lender, Grantor shall execute Financing statements and take whatever other action is requested by Lender Io
perfect and continue Lander's security interest In the Rents and Personal property. In addition to recording this Deed of Trust in the real property
records, Lender may, at any lime and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Dead of
Trust as a Financing stalemenl. Grantor shall reimburse Lender for at; expenses Incurred in perfecting or continuing this security interest. Upon
default, Grantor Shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shalt assemble any Personal
Properly not affixed to the Properly In a manner and at a place reasonably Convenient to Grantor and Lender and make it available to Lender
within three (3) days attar recelpt of written demand from Lender to the extent parm iIled by appiIcable law.
Addresses. The mailing addresses of Grantor (debtor) and Lender (Secured party) from which Informatlon concerning the security Interest
granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Deed of
Trust.
FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney -In -fact are a part of this Deed
of Trust:
Further Assurances. At any time, and from ffrrma to Hme, upon request of Lender, Grantor will make, execula and deliver, or will Cause to be
made, executed or delivered, to Lender or to Lender's designee, and when requasted by Lender, cause to be filed, recorded, roofed, or
rerecorded, as the case may be, at such times and In such offices and places as Lender may deem approprlsta, any and all such mortgages,
deeds of trust, security deeds, security agreements, financing 5tatemenls, continuation statements, instruments of further assurance, certificales,
and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or
preserve (1) Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests
created by this Deed of Trust as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. The lien of this Deed
of Trust and the security Interest granted hereby will automatically attach, without further act, to all after-acqulred property allachad 10 and or used
in the operation of the Property or any part thereof. Unless prohibited by law or Lender agrees to the contrary in writing. Grantor shall reimburse
Lender for all costs and expenses Incurred in connection with the matters referred IQ in this paragraph.
Attorney -in -Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor
and at Grantor's expense. For such purposes. Grantor hereby Irrevocably appoints Lender as Grantor's altorney-in-Tact for the purpose of
making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, In Lender's sale opinion, to
accomplish the matters referred to in the preceding paragraph. ,
FULL PERFORMANCE. If Grantor pays all the indebtedness. Including without limitation all future advances, when due, terminates the lira of credit,
and otherwise performs all the ONigafions imposed upon Grantor under this Dead of Trust, Lender shall execute and deliver to Trustee a request for full
reconveyance and shall execute and deliver to Grantor suitable statements of termination of any financing statement On file evidencing Lender's security
interest in the Rents and the Personas Property. Any reconveyance tae requlred by iaw shall be paid by Grantor. If permitted by applicable law.
DEFAULT. Each of the following, at Lenders option, shall constitute an Event of Default under this Deed of Trust:
Payment Default. Grantor falls to make any payment when due under the Indebtedness,
Default on Other Payments. Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any
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DEED OF TRUST
Loan No; AM -1004034 (Continued)
Page
other payment necessary to prevent filing of or to effect discharge of any Ilen.
Other Defaults. Granter fails to comply with or to perform any other term, obligation, covenant or condition contained In this Dead of Trust or In
any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition conta€nad In any other agreement
between Lender and Grantor.
Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained In this Deed of Trust, the Note or in any of
the Related Documents. If such a failure Is curable and if Grantor has not been given a notice of a breach o1 the same provision of this Deed of
Trust within the preceding twelve (12) months, it may be Cured (and no Event of Default will have occurred) If Grantor, after Lender sends written
notice demanding cure of such failure: (a) euros the failure within fitteon (15) days; or (b) If the cure requires mora than fifteen (15) days,
immediately initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to
produce compliance as soon as reasonably practical.
Default In Favor of Third Parties, Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement,
or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the
Indebtedness or perform their respective obligations under this Deed of Trust or any of the Related Documents.
False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Deed of
Trust or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or
misleading at any time thereafter.
Defective Coll aterailxatian. This Deed of Trust or any of the Related Documents ceases to be In full force and effect (including failure of any
collateral document to create a valid and perfected security Interest or Ilen) at any time and for any reason.
Insolvency. The dissolution or termination of Grantor's existence as a going business, the insolvency of Grantor, the appointment of a receiver for
any part of Grantor's property, any assignment for the benefit of creditors, any type of Cradllor workout, or the commencement of any proceeding
under any bankruptcy or insolvency laws by or against Grantor.
Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by Judicial proceeding, self --help,
repossession or any other method, by any creditor of Grantor or by any governmental agency against any property securing the Indebtedness.
This Includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lander. However, this Even] of Default shall not apply
ft there is a good latth dispute by Grantor as to the valldlty or reasonablane ss of the claim which IS the basis of the Creditor or torfaifure proceading
and it Grantor gives Lander written notice of iha creditor or forfeiture proceeding and deposits with Lender montes or a surely bond for the credlIor
or forfeiture proceeding, In an amount delermined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.
Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lander that is not remedied
within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to
Lender, whether existing now or later.
Events Affecting Guarantor. Any of the preceding evens occurs with respect to any guarantor, endorser, surety, or accommodation party of any
of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes Incompetent, or revokes or disputes the validity
of, or liability under, any Guaranty of the Indebledness.
Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance
of the Indebtedness Is impaired.
Insecurity. Lender in good faith believes Itself insecure.
RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may exercise
any one or more of the following rights and remedies:
Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Grantor under this Deed of Trust, after Grantor's (allure to perform, shall not affect
Lender's right to declare a default and axe rclse Its remedies.
Acceterale Indebtedness. Lender shall have the right at Its option without notice to Grantor to declare the entire Indebtedness Immediately due
and payable, including any prepayment penalty which Grantor would be required to pay,
Express Power of Sale Provision, Upon the appficalion or request of Lander, it shall be lawful for and the duly of the Trustee, and the Trustee is
hereby authorized and empowered, to expose to sale and to sell the Property at public auction for cash, after having first complied wdri all
applicable requirements of North Carolina law with respect io the exercise of powers of sale contained in deeds of trust or such other safes
appropriate under the circumstances; and upon any such sale, the Trustee shall convey title to the purchaser in fee simple, in the event of any
sale under this Deed of Trust by virtue of the exercise of the powers granted In this Coed of Trust, or pursuant to any order and any Judicial
proceeding or otherwise, the Property may be sold as an entirety or In separate parcels and In such manner or order as Lender in Its sole
discretion may elect. Trustee shall be authorized to hold a sate pursuant to North Carolina General Statute Chapter 45. If Trustee so elects,
Trustee may sell the Property covered by this Deed of Trust at one or more separate sales In any manner permitted by applicable North Carolina
law, and any exercise of the powers granted In chis Deed of Trust shall not extinguish or exhaust such powars, untl1 the enure Property is sold or
the indebtedness Is paid in full. if such Indebiedness is now or hereafter further secured by any chatlef mortgages, pledges, contracts of
guaranty, assignments of tease or other security instruments, Lender may at Its option exercise the remedies granted under any of the security
agreements either concurrently or independently and in such order as Lender may determine,
Foreclosure. With respect to all or any part of the Real Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall
have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law,
UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under
the Uniform Commercial Code.
Collect Rents. Lender shall have the right, without notice to Grantor to take possession of and manage the Property and collect the rents,
including remounts past due and unpaid, and apply the net proceeds, over and agave Lender's costs, against the Indebtedness. In furtherance of
this right, Lender may require any tenant or other user of the Properly to make payments of rent or use fees directly to Lender. If the Rents are
collected by Lander, then Grantor irrevocably designates Lender as Grantor's attorney-Jnr-facl to endorse Instruments received in payment thereof
In the name of Grantor and to negotiate the same and collect the proceeds. Payments by lenanis or other users to Lender In response to Lender's
demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may
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DEED OF TRUST
Loan No: AM -1004034 (Continued) Page 6
exercise its rights under this subparagraph either in person, by agent, or through a receiver.
Appoint Ffecelver. Lander shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to
protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the
Proceeds, over and above the easl of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law.
Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a
substantial amount. Employment by Lender shalt not disqualify a person from serving as a receiver_
Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property Is sold as provided above or Lender otherwise
becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser
of the Properly and shall, at Lender's option, either (t) pay a reasonable rental for the use of the Property, or (2) vacate the Property
immediately upon the demand of Lender.
Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or the Note or by law.
Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public We of the Personal Property or of the time after
which any private sale or other Intended disposition Of the Personal Property is to be made. Reasonable notice shall mean notice given at least
ten (10) days before the time of the sale or disposition. Any sate of Personal Property may be made In conjunction with any sale of the deal
Property.
Safe of the Properly. To the extant permitted t)y applicable law. Grantor hereby waives any and all rights to have the Property marshalled. In
exercising its rights and remedies, the Trustee or Lender shall be free to sell all or any part of the Property together or separately, in one sale or by
separate sales. Lender shall be entitled to bld at any public sale on all or any portion of the Property.
Attorneys' Fees; Expenses. If Lender Institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall be entitled to
recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is
involved, and to the extent not prohibited by taw, all reasonable expenses Lender Incurs that in Lender's opinion are necessary at any time for the
protection of its interest or the enforcement of Its rights shall become a part of the Indebtedness payable On demand and shall bear interest at the
Note rate from the data of the expenditure until repaid. E=xpenses covered by this paragraph Include, without limitation, however subject to any
limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there Is a faWsufl, including attorneys' fees and
expenses for bankruptcy proceedings (including efforts to modlty or vacate any automatic stay or injunction), appeals, and any ar.ticipaled
post -Judgment collection services, the cost of searching records. obtaining title reports (including foreclosure reports), surveyors' reports, and
appraisal tees, title Insurapea, and fees for the Tru slea, to the extant permitted by appIlea blo few. Grantor also wlfl pay any court costs, in addiIlon
to all other sums provided by law,
Rights of Trustee. Trustee shall have all of the rights and duties of Lender as set forth In this section.
POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee are part of this Deed of Trust:
Powers of Trustee. In addition to all powers of Truslee arising as a matter of faw, Trustee shall have the power to take the following actions with
respect to the Property upon the written request of Lender and Grantor: (a) Join In preparing and filing a map or plat of the Real Property,
including the dedication of streets or other rights to the public; (b) Join In granting any easement or creating any restriction on the Real Property;
and (c) Join In any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust.
Trustee. Trustee shall meet all qualifications required for Trustee under applicable law. In addition to the rights and remedies set forth above,
with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to
foreclose by judicial toreclosure, In all her case in accordance with and to the full extent provided by applicable law,
Trustee's Fees. The Trustee's commission shall be five percent (5%) of the gross proceeds of the sale for a completed foreclosure. In the event
foreclosure Is commenced, but not compialed, Grantor shall pay all expenses incurred by Trustee and partial commission computed on five
percent (5%) of the outstanding indebtedness, according to the following schedule: one-fourth of the commission before Trustee issues a notice
of hearing on the right to foreclosure; one-half of the commission aller issuance of notice of hearing; three-fourths of the commission after a
hearing; and the full commission after the instal sale.
Express Power to Substitute a Truslee. Lander shall have the irrevocable right to remove at any lime and from time to time without limit the
Trustee named In this Deed of Trust without notice or cause and to appoint a successor by an Instrument In writing, duty acknowledged, in such a
form as to entitle such written Instrument to be recorded in the Slate of North Carolina; and, in the event of the death or resignation of the Trustee
named in this Deed of Trust, Lender shall have the right to appoint a successor by such written instrument, and any Trustee so appointed shall be
vested with the trtta to the Property, and shall possess all the powers, duties and obllgalloas herein conferred on the Trustee In the same manner
and to the same extent as though the successor trustee were named in this feed of Trust as Trustee.
NOTICES. Any notice required to be given under this Deed of Trust, Including wilhout limitation any notice of default and any notice of safe shall be
given In writing, and shall be effective when actually delivered, when actually received by tetelacsimile (unless otherwise required by law), when
deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mall
postage prepaid, directed to the addresses Shawn near the beginning of this Deed of Trust. Any party may change its address for notices under this
Deed of Trust by giving formal written notice to the other parties, specifying that the purpose Of the notice is to change the party's address. For notice
purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address, Unless otherwise provided or required by taw, if there is
more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors.
ARBITRATION. (a) This paragraph concerns the resolution of any controversies or claims between the parties, whether arising In contract, lort or by
statute. Including but not limited to controversies or claims that arlse out of or relate to: (1) this agreement (Including any renewals, extensions or
madlfications); or (11) any document relaled to this agreement; (collectively a "Claim").
(b) At the request of any party to this agreement, any Claim shall be resolved by binding arbitration in accordance with the Federal Arbitration Act (Title
9, U. S. Code) (the "Act"). The Act will apply even though this agreement provides that it Is governed by the law of a specified stale.
(c) Arbitration proceedings will be delermined In accordance with the Act, the applicable rules and procedures for tree arbilratlon of disputes of JAMS
or any successor thereof ("JAMS'), and the terms of this paragraph. In the event of any inconsistency, the terms of this paragraph shall control,
(d) The arbltralion shall be administered by JAMS and conducted, unless otherwise required by law, In any J. S. stale where real or tangible personal
property collateral for this credit is located Or if there is no such collateral, in the state specified fn the governing law section of this agreement. All
Claims shall be determined by one arbitrator; however, it Claims exceed $5,000,000, Upon the request of any party, the Claims shell be decided by
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DEED OF TRUST
Loan No: AM -1004034 (Continued) Page 7
three arbitralors. All arbitration hearings shall commence within 90 days of the demand for arbitration and close within 90 days of commencement and
the award of the arbilrator(s) shall ba issued within 30 days of the Gose c I h a hearing. However, the arbitrator(s), upon a showing of good cause, may
extend the commencement of the heart ng for up to an additional 60 days. The arbitrator(s) sheik provide a concise written statement of reasons for the
award. The arbilralion award may be submitted to any court having Jurisdiction to be confirmed and enforced.
(e) The arbitrator(s) will have the authority to decide whether any Claim Is barred by the statute of limitations and, If so, to dismiss the arbitration on that
basis. For purposes of the application of the statute of limitations, the service on JAMS under applicable JAMS rules of a notice of Claim is the
equivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision cr whether a Claim Is arbitratable shall be determined by the
arbltrator(s). The arbitrator(s) shall have the power to award legal fees pursuant to the terms of this agreement.
(1) This paragraph does not limit the right of any parly to: (i) exercise self-help remedies, such as but not limited to, setoff; (ti) Inlliate judicial or
nonjudlcial foreclosure against any real or personal property collateral; (til) exercise any judicial or power of sale rights, or (iv) act In a court of law to
obtain an interim remedy, such as but not limited to, Injunctive relief, writ of possession or appointment of a receiver, or addilional or supplementary
remedies.
(g) The filing of a court action is not Intended to constitute a waiver of the right of any party, Including the suing party, thereafter to require submittal of
the Claim to arbitration.
COUNTERPART SIGNATURES. This Agreement may be executed In any number of counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of Trust:
Amendments. This Deed of Trust, together with any Relaled Documents, constitutes the entire understanding and agreement of the parties as to
the matters set forth in this Deed of Trust. No alteration of or amendment to this Dead of Trust shall be effective unless given in writing and signed
by the party or parties sought to be charged or bound by the alteration or amendment.
Annual Reports. If the Proparty Is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified
statement of net operating income received from the Properly during Grantor's previous fiscal year In such form and detail as Lender shall require.
"Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the
Property,
Caption Headings. Caption headings In this Deed of Trust are for convenience purposes only and are not to be used to interpret or define the
provisions of this Deed of Trust.
Merger, There shall be no merger of the Interest or estate created by this Deed of Trust with any other Interest or estate In the Property at any
time held by or for the benefit of Lender In any capacity, without the written consent of Lender.
Governing Law. This Deed of Tru at will be governed by, construed and enforced In accordance with federal law and the laws of the State
of Horth Carolina. This heed of Trust has been accepted by Lender In the Slate of North Carolina.
Choice of Venue. If there Is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Mecklenburg County,
State of North Carolina.
No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Deed of Trust unless such waiver is given In writing and
signed by Lender. No delay or omisslon on the part of Lender In exercising any right shall operate as a waiver of such right or any other right. A
waiver by Lender of a provision of this Deed of Trust shall not prejudice or consl€tule a waiver of Landier's right otherwise Io demand slrlcl
compliance with that provision or any other provision of this deed of Trust. No prior waiver by Lender, nor any course of dealing between Lender
and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any luture transaclions. Whenever the
consent of Lender Is required under this Dead of Trust, the granifng of such consent by Lender in any Instance shall not constitute continuing
consent to subsequent instances where such Consent Is required and In all cases such consent may be granted or withheld In the sole discralion
of Lender.
Severability. II a court of competent jurisdiclion finds any provision of this Deed of Trust to be Illegal, invalid, or unenforceable as to any
circumstance, that finding shall not make the offending provision Illegal, Invalid, or unenforceable as to any other circumstance. If feasible, the
offending provision shall be considered modified so that It becomes legal, valid and enforceable. If the offending provislon cannot be so modified,
It shall be considered deleted from this Deed of Trust. Uniess otherwise required by law, the Illegality, Invalldity, or unenforceability of any
provision of this Deed of Trust shall not affect the legality, validity or enforceabllity of any other provision of this Deed of Trust,
Successors and Assigns. Subject to any limitations stated In this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be
binding upon and Inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested Ina parson other
than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by
way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness.
Time Is of the Essence. Time is of the essence In the performance of this Deed of Trust.
DEFINITIONS. The following capitalixed words and terms shall have the following meanings when used In this Used of Trust. Unless speclflcally
stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United Status of America, Words and terms used in
the singular shall Include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this
Deed of Trust shall have the meanings attributed to such terms in the Uniform Commerdal Code:
Beneficiary. The word "Beneficlary" means Bank of America, N.A„ and its successors and assigns.
Borrower. The word "Borrower" means Northside Baptist Church of Wilmington, Inc., and all other persons and entities signing the Note in
whatever capacity.
Deed of Trust. The words 'Dead of Trust" mean this Deed of Trust among Grantor, Lender, and Trustee, and includes without limitation all
assignment and security Interest provisions relating to the Personal Property and Rents.
Default. The word "DelauH" means the Default set forth in this Deed of Trust In the section tliled "Default".
Environmental Laws. The words 'En0onmer.lal Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to
the protection of human health or the environment, including without limliallon the Comprehensive Environmental Response, Compensation, and
Llebility Act of 1980, as amended, 42 11.5.0. Sao Ilon 9601, at seq. ("CERCLA"), the Supe rfund Amendments and Reauthorization Ac c 1986, Pub.
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DEED OF TRUST
Loan No: AM -1004034 (Continued) Page 8
L. No. 98-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, at seq., the Resource Conservation and Recovery
Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.
Event of Default. The words "Event of Default" mean any of the events of default set forth in thls Deed of Trust In the default section of this Deed
of Trust.
Grantor. The word "Grantor" means Northside Baptist Church of Wilmington, Inc..
Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without
lirmiaticn a guaranty of all or part of the Note.
Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical
or infectious characteristics, may cause or pose a present or potenllal hazard to human health or the environment when Improperly used, Treated,
stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used In their very
broadest sense and Include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the
Environmental Laws. The term "Hazardous Substances" also includes, without Iimilation, petroleum and petroleum by --products or any fraction
thereof and asbestos.
Improvements. The word "Improvements" means all existing and future Improvements, buildings, structures, mobile homes affixed on the Real
Property, facldlles, additions, replacements and other construction on the Real Property.
indebtedness. The word "Indebtedness" means all princlpal, In forest, and other amounts, costs and expenses payable under the Nola or Related
Documents, together with all renewals of, extensions of, modifications of, consolidations of and subshluliors for the Note or Related Documents
and any amounts expanded or advanced by Lender to discharge Grantor's obligations or expenses incurred by Trustee or Lander to enforce
Grantor's obligations under this Deed of Trust, together wilh interest on Such amounts as provided In this Dead of Trust.
Lender, The word 'Lender" means Bank of America, N.A., Its successors and assigns.
Note. The word "Note" means the promissory note dated January 21, 2002, In the original principal amount of $500,000.00 from
Grantor to Lander, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the
promissory note or agreement. The maturity dale of this Deed of Trust is July 17, 20U9.
Personal Property, The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned
by Grantor, and now or hereafter attached or affixed to the Heal Property; together with all accessions, parts, and additions to, all replacements of,
and all substitutions for, any of Such property; and together with all proceeds (Including without ilmitatlon all insurance proceeds and refunds of
Premiums) from any sale or other disposition of the Property.
Property. The word "Property" means collectively the Real Property and the Personal Property.
Real Property. The words "Real Property" mean the real property, Interests and rights, as further described in this Deed of Trust.
Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranlies, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and al. other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness.
Renta. The word "Rents" means all present and future rents, revenues, Income, Issues, royalties, profits, and other benefits derived from the
Property.
Trustee. The word "Trustee" means PRLAP, Ino., whose address Is Portfolio Admin., VA2-410-02-01, 1400 Best Plaza Drive, P. 0. Box 26865,
Richmond, VA 23227 and any substitute or successor trustees.
GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES TO ITS TERMS.
IN WITNESS WHEREOF GRANTOR HAS CAUSED THIS DEED OF TRUST TO BE SIGNED IN GRANTOR'S CORPORATE NAME BY GRANTOR'S
DULY AUTHORI2ED OFFICERS AND HAS CAUSED GRANTOR'S SEAL TO BE AFFIXED TO THIS DEED OF TRUST BY THE AUTHORITY OF
GRANTOR'S BOARD OF DIRECTORS ON THE DATE SHOWN AT THE 13EGINNNING OF THIS DEED OF TRUST.
THIS DEED OF TRUST IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DELA OF TRUST IS AND SHALL CONSTITUTE AND HAVE THE
EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.
GRANTOR:
NORTHSIDE BAPTIST CHURCH OF WILMINGTON, INC
By: (Seal)
and oodso , resident of Norlfhslde Baptist
Church of Wilmington, Inc.
ATTEST:
or
By'. Seal)
[ane Walters, Secretary of Northside Bapllal
Church of Wilmington, Inc.
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DEED OF TRUST
Loan No: AM -1004034 (Continued)
CORPORATE ACKNOWLEDGMENT
STATE OF NORTH CAROLIMA
) SS
COUNTY OF NM R&W ER
Page
I,Amv R Pedneeu , a Notary Public for sald County and State, Certify that
Diane'r,Vatters personally carne before me this day and acknowtedged that he or she is
Secretary of Northside baptist Church of Wilmington, Inc„ a corporation and that by authority duly given and as the act of the
corporation, the foregoing instrument was signed In Its name by Its President; Secretary of Northside Baptist Church of Wllmfnglon, Inc.,
respectively sealed with its corporate seal, and attested by himself or herself as Its Secretary.
Witness my hand and Notarial Seal this the 22nd day of January , zo 02
1gnsue+�y, Notary public
My Commission Expires:L .••' PE p''++,�r,
8/20/2005 e
% Gr.
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AR i
(Affix Notarial Seal Hero) `_ s
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EXHIBIT A
TO
DEED OF TRUST FROM
NORTHSIDE BAPTIST CHURCH OF WILMINGTON, INC.
TO
PRLAP, INC., TRUSTEE FOR
BANK OF AMERICA, N.A.
First Tract -
BEING ALL of that certain tract or parcel of land containing 2.465 acres, more or less
and being more particularly described in the Deed to Northside Baptist Church of
Wilmington, Inc. recorded in Book 2810 at rage 0072 of the New Hanover County
Registry, reference to which is hereby made for a more particular description.
Second Tract:
Located in Cape Fear Township, New Hanover County, North Carolina and Beginning at
an existing iron pipe in the eastern right of way line of Owls Lane (60 foot public right of
way) as it is recorded in Map Book 34 at Page 66 in the New Hanover County Registry,
said existing iron pipe is located North 14 degrees 42 minutes West — 394.38 feet from
the point of intersection of the eastern right of way line of Owls Lane and the northern
right of way Iine of Bavarian Lane (SR #1322 — 60 foot public right of way). Running
thence, from the said point of beginning and with the eastern right of way line of Owls
Lane, North 14 degrees 42 minutes West — 268.8 feet to an existing iron pipe; thence,
Nortb 75 degrees 18 minutes East — 124.80 feet to an existing iron pipe; thence, North 14
degrees 42 minutes West — 120.40 feet to an existing iron pipe; thence North 75 degrees
18 minutes East — 25.20 feet to an existing iron pipe; thence, North 14 degrees 42
minutes West — 200.00 feet to an existing iron pipe; thence North 75 degrees 18 minutes
East — 270.00 feet to an existing iron pipe in the western right of way Iine of NC
Highway #132 (200 foot public right of way); thence, with the western right of way line
of NC Highway #132, South 14 degrees 42 minutes East — 595.20 feet to an existing iron
pipe; thence, South 75 degrees 18 minutes West — 200.00 feet to an existing iron pipe;
thence, North 14 degrees 42 minutes West — 6.00 feet to an existing iron pipe; thence,
South 75 degrees 18 minutes West — 220.00 feet to the point of beginning; containing
4.67 acres more or less and being those tracts of land recorded in Book 590 at Page 531,
Book 847 at Page 256, Book 802 at Page 341, Book 899 at Page 915, Book 950 at Page
646, Book 1096 at Page 68, and Book 1473 at Page 908 in the New Hanover County
Registry.
The first and second tracts are subject to a right-of-way and easement for certain utilities
recorded in Book 2810 at Page 0082 of the New Hanover County Registry,
CAMP DocumenL500"iption3\NorthoideBaptist doc
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REBECCA T. CHRISTIAN
REGISTER OF DEEDS, NEW HANOVER
JUDICIAL BUILDING
316 PRINCESS STREET
WILMINGTON, NC 28401
F#!**fifR*R*RR*x#*RR*******4,110.*R#R*##**A*R*Rif#R*x**f****R*#R# *At RR#*****#*#�lM*#R*R*#x*Rff*A*r# �#*xR+*#f*#R*f*xAf*r
Filed For Registration:
Book:
Document No.:
Recorder:
01/22/2002 04:01:41 PM
RE 3177 Page: 964.974
2002003378
DIT 11 PGS $41.00
JACQUELINE NELSON
*•*+x*R#RA*fRrRAx#►f*xf#RR*R##ex■x##*Ri*xxf*AxA**0R*i#014i*•**A**4R■R0*A**f*fARia+*AfrA#R#x■+#4A*++x*##►xff#•ff AA1*A*rr*i
State of North Carolina, County of New Hanover
The foregoing certificate of AMY R PEDNEAU Notary Is certified to be correct. This 22 ND of January 2002
T.
By:
of Deeds
OF DEEDS
*2002003378*
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