Outline Of Remarks

OUTLINE OF REMARKS 1. Overall legal structure 2. Statutory language 3. Master Form and Security Instrument Long Form 4. Short Form

ENABLING STATUTE

CHAPTER 47.  PROBATE AND REGISTRATION   ARTICLE 2.  REGISTRATION   N.C. Gen. Stat. § 47-21  (2007)   § 47-21. Blank or master forms of mortgages, etc.; embodiment by reference in instruments later filed     It shall be lawful for any person, firm or corporation to have a blank or master form of mortgage, deed of trust, or other instrument conveying an interest in, or creating a lien on, real and/or personal property, filed, indexed and recorded in the office of the register of deeds. When any such blank or master form is filed, the register of deeds shall record it and shall index it in the manner now provided by law for the indexing of instruments recorded in the office of the register of deeds, except that the name of the person, firm or corporation whose name appears on such blank or master form shall be inserted in the indices as grantor and also as grantee. The fee for filing, recording and indexing such blank or master form shall be that for recording instruments in general, as provided in G.S. 161-10(a)(1).   When any deed, mortgage, deed of trust, or other instrument conveying an interest in, or creating a lien on, real and/or personal property, refers to the provisions, terms, covenants, conditions, obligations, or powers set forth in any such blank or master form recorded as herein authorized, and states the office of recordation of such blank or master form, book and page where same is recorded such reference shall be equivalent to setting forth in extenso in such deed, mortgage, deed of trust, or other instrument conveying an interest in, or creating a lien on, real and/or personal property, the provisions, terms, covenants, conditions, obligations and powers set forth in such blank or master form. Provided this section shall not apply to Alleghany, Ashe, Avery, Beaufort, Bladen, Camden, Carteret, Chowan, Cleveland, Columbus, Dare, Gates, Granville, Guilford, Halifax, Iredell, Jackson, Martin, Moore, Perquimans, Sampson, Stanly, Swain, Transylvania, Vance, Washington and Watauga Counties.

Master Form Cover Page (North Carolina)

After recording, return to: _______________________ _______________________ _______________________ _______________________

MASTER FORM Deed of Trust   This Master Form Deed of Trust is recorded by or on behalf of _________________________________________________________________________. [Nname of Lending Institution Causing the Instrument To Be Recorded]

This title page is hereby incorporated into, and made a part of, the attached Deed of Trust, both of which together comprise the Master Form Deed of Trust. This Master Form Deed of Trust is being recorded pursuant to N.C. Gen. Stat. § 47-21 (2006).

___________________ [Space Below This Line For Acknowledgment] _____________

NORTH CAROLINA--Single Family--Fannie Mae/Freddie Mac MASTER FORM DEED OF TRUST TITLE PAGE Form 3034-MF 6/07

Fannie Mae/Freddie Mac “Long Form” Security Instrument (First Part)

After Recording Return To: ____________________________________ ____________________________________ ____________________________________ ____________________________________

____________________[Space Above This Line For Recording Data]___________________

DEED OF TRUST DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) “Security Instrument” means this document, which is dated _____________________, __________, together with all Riders to this document. (B) “Borrower” is __________________________________________________________. Borrower is the trustor under this Security Instrument. (C) “Lender” is ____________________________________________________________. Lender is a _____________________________________ organized and existing under the laws of ________________________________. Lender’s address is __________________________ _____________________________________________________________________. Lender is the beneficiary under this Security Instrument. (D) “Trustee” is ____________________________________________________________. (E) “Note” means the promissory note signed by Borrower and dated ______________________________________, __________________. The Note states that Borrower owes Lender ___________________________________________________________ Dollars (U.S. $_______________________________________) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than ____________________________________. (F) “Property” means the property that is described below under the heading “Transfer of Rights in the Property.” (G) “Loan” means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest.

NORTH CAROLINA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01

(page 1 of 3 pages)

(H) “Riders” means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]:   

Adjustable Rate Rider Balloon Rider 1-4 Family Rider

 Condominium Rider  Planned Unit Development Rider  Biweekly Payment Rider

 Second Home Rider  Other(s) [specify] _____________

(I) “Applicable Law” means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) “Community Association Dues, Fees, and Assessments” means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) “Electronic Funds Transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) “Escrow Items” means those items that are described in Section 3. (M) “Miscellaneous Proceeds” means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) “Mortgage Insurance” means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) “Periodic Payment” means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) “RESPA” means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, “RESPA” refers to all requirements and restrictions that are imposed in regard to a “federally related mortgage loan” even if the Loan does not qualify as a “federally related mortgage loan” under RESPA. (Q) “Successor in Interest of Borrower” means any party that has taken title to the Property, whether or not that party has assumed Borrower’s obligations under the Note and/or this Security Instrument. NORTH CAROLINA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01 pages)

(page 2 of 3

TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower’s covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee and Trustee’s successors and assigns, in trust, with power of sale, the following described property located in the ________________________________________ [Type of Recording Jurisdiction] of __________________________________________: [Name of Recording Jurisdiction]

which currently has the address of _______________________________________________ [Street] _________________________, North Carolina ___________________ (“Property Address”): [City] [Zip Code] TO HAVE AND TO HOLD this property unto Trustee and Trustee’s successors and assigns, forever, together with all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the “Property.” BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and nonuniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:

NORTH CAROLINA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01

(page 3 of 3 pages)

Short Form

After Recording Return To: ______________________ ______________________ ______________________ ______________________

__________________ [Space Above This Line For Recording Data] ___________________

SHORT FORM DEED OF TRUST DEFINITIONS Words used in multiple sections of this Security Instrument are defined below, in the “Definitions” Section of the Master Form, and in Sections 3, 11, 13, 18, 20 and 21 of the Master Form. Certain rules regarding the usage of words used in this Security Instrument are also provided in Section 16 of the Master Form. “Master Form” means that certain Master Form Deed of Trust recorded in the Office of the Register of Deeds on ____________________________________, 20____, in Book _______, at Page(s) _____, in the County of ________________________________________. [Name of Recording Jurisdiction] (A) “Security Instrument” means this document, which is dated______________, _______, together with all Riders to this document. (B) “Borrower” is __________________________________________________. Borrower is the trustor under this Security Instrument. (C) “Lender” is ______________________________________________________. Lender is a ____________________________ organized and existing under the laws of ____________. Lender’s address is _____________________________________________________________. Lender is the beneficiary under this Security Instrument. (D) “Trustee” is ________________________________________________________. (E) “Note” means the promissory note signed by Borrower and dated ____________, _____. The Note states that Borrower owes Lender ______________________________________ Dollars (U.S. $__________________) plus interest. Borrower has promised to pay this debt in regular Periodic Payments (as defined in the Master Form) and to pay the debt in full not later than __________________________. (F) “Property” means the property that is described below under the heading “Transfer of Rights in the Property.” (G) “Loan” means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest.

NORTH CAROLINA--Single Family--Fannie Mae/Freddie Mac SHORT FORM DEED OF TRUST Form 3034-SF 6/07 (page 1 of 3 pages)

(H) “Riders” means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: Adjustable Rate Rider Balloon Rider 1-4 Family Rider

Condominium Rider Planned Unit Development Rider Biweekly Payment Rider

Second Home Rider Other(s) [specify] _______________

All references to section numbers in the Security Instrument that are contained in the Riders refer to those sections of the same number incorporated from the Master Form. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower’s covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, and Trustee’s successors and assigns in trust, with power of sale, the following described property located in the County of ______________________________: [Name of Recording Jurisdiction]

which currently has the address of ______________________________________________ [Street] ____________________________, North Carolina ________________ (“Property address”). [City] [Zip Code] TO HAVE AND TO HOLD this property unto Trustee and Trustee’s successors and assigns, forever, together with all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the “Property.” BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and nonuniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property.

NORTH CAROLINA--Single Family--Fannie Mae/Freddie Mac SHORT FORM DEED OF TRUST Form 3034-SF 6/07 (page 2 of 3 pages)

INCORPORATION OF MASTER FORM PROVISIONS Paragraph (I) through and including paragraph (Q) of the “Definitions” Section of the Master Form, and Section 1 through and including Section 25 of the Master Form, are incorporated into this Security Instrument by reference. Borrower acknowledges having received a copy of the Master Form and agrees to be bound by the Sections and paragraphs of the Master Form incorporated into this Security Instrument. BY SIGNING UNDER SEAL BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument (including those provisions of the Master Form that are incorporated by reference) and in any Rider executed by Borrower and recorded with it.

______________________________

___________________________________ (Seal) - Borrower

______________________________

___________________________________ (Seal) - Borrower

__________________ [Space Below This Line For Acknowledgment] ____________________

NORTH CAROLINA--Single Family--Fannie Mae/Freddie Mac SHORT FORM DEED OF TRUST Form 3034-SF 6/07 (page 3 of 3 pages)

Instructions

6.10.1: Master Form and Short Form Security Instruments (02/23/07) (b) Instructions for use of Master Form Security Instrument; Short Form Security Instrument Master Form Security Instrument - The Seller must: 1. Complete the title page by inserting the names and relevant information in the applicable places and have the title page signed or acknowledged, if required 2. Attach the title page to the front of the current Security Instrument for the State 3. Record the title page and Security Instrument together in the recorder's office serving the recording district(s) in which the Seller anticipates subsequently recording Short Form Security Instruments 4. In Ohio, complete the information in the box at the top of the first page of the Master Mortgage Form by inserting the names and relevant information in the applicable places and have the title page signed 5. In Wisconsin, complete the title page and the certificate by inserting the names and relevant information in the applicable places; do not sign or acknowledge the title page but have the certificate acknowledged The Security Instrument to which the title page is attached (or in Ohio, on which the Master Form information is provided) should not have any information completed and should not be signed or acknowledged. In the event Freddie Mac revises the Uniform Security Instrument for the applicable State, the Seller must record the revised Master Form Security Instrument in all applicable local recording offices. The previously recorded Master Form Security Instrument must not be released or superseded. Mortgages originated after the effective date of a revised Uniform Security Instrument must be originated using a Short Form Security Instrument that references the new recorded Master Form Security Instrument. Short Form Security Instrument - The Seller must: 1. Insert the recording information from the Master Form Security Instrument in the first paragraph of the "Definitions" section (The recording information must be that of the Master Form Security Instrument that was recorded in the recording district in which the Mortgaged Premises is located)

1.

Insert information for all blank spaces in the "Definitions" section

2.

Check the applicable Rider boxes

3.

Insert the property description information

4.

Provide the Borrower with an exact copy of the recorded Master Form Security Instrument (the completed title page with recordation information and the applicable current Fannie Mae/Freddie Mac Uniform Security Instrument for the State)

5.

Arrange for the Short Form Security Instrument to be executed by the Borrower(s) and acknowledged

6.

Arrange for any applicable Riders to be executed by the Borrower(s)

7.

Record the Short Form Security Instrument and any applicable Riders in the recorder's office serving the recording district in which the Mortgaged Premises is located