HomeMy WebLinkAboutAUGUSTA NEIGHBORHOOD IMPROVEMENT CORP DEED TO SECURE DEBT
I,
J'
Leonard' O. Fletcher, Jf.
Fletcher, Harley & Fletcher, LLP
429 Walker Street
Augusta, GA 30901
Book 01050:1330 Augusta - Richmond County
200602125004/21/200611 :04:35.03
$16.00 SECURITY DEED
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2006021250 Augusta - Richmond County
DEED TO SECURE DEBT
THIS INDENTURE, made this ~l,::il- day of m~. ,2006, between AUGUSTA
NEIGHBORHOOD IMPROVEMENT CORPORATION, INC., of Richmond County, State of Georgia
(hereinafter called the "Borrower"), and AUGUSTA, GEORGIA by and through the Augusta-Richmond County
Commission, (hereinafter called the "Lender").
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WITNESSETH: Borrower is indebted to Lender in the sum of $850,000 payable to Lender or Order.
As security for payment of said indebtedness and to insure performance of certain covenants,
Borrower hereby grants, bargains, sells and conveys unto the Lender the following described property, to wit:
(See Appendix I Property Description)
TO HAVE AND TO HOLD the said bargained premises, together with all and singular the rights,
members and appurtenances thereof (together with heating, plumbing, lighting, water-heating, refrigerating,
and air-conditioning fixtures, screens, awnings, flowers, shrubs and timber now or hereafter placed in or on
growing on said premises, all of which are hereby declared to be a part of said realty)to the use, benefit and
behoof of the Lender, forever in FEE SIMPLE.
The Borrower warrants and will forever defend the right and title of the above described property unto
the Lender against the lawful claims of all persons whomsoever.
This instrument is a deed passing title pursuant to the laws of the State of Georgia governing loan or
security deeds and is not a mortgage: and is made and intended to secure the payment of the following
indebtedness and obligations, to-wit:
The Lender has this date made available to Borrower the sum of $850,000 under its Community
Development Block Grant Program, to evidence which Borrower has made and delivered to Lender a
Promissory Note in the same amount. The amount of the note is a loan but becomes incrementally an
absolute grant at the completion of five years from date in that at the end of one year from date 20% thereof
shall abate, at the end of two years from date an additional 20% shall abate, and so on for each of the
remaining years. The abatement is conditional upon Borrower both properly maintaining the facility and
continuing to own the land above described. In the event that Borrower shall convey the land to another by
sale or gift within the five years from date, then such amount of the loan which has not abated shall become
immediately due and payable and if not paid Lender may exercise any power given it herein this deed.
Together with any and all other indebtedness now owing or which may hereafter be owing by the
Borrower herein to the Lender herein, however incurred and all renewal or renewals, extension or extensions
of said note or other indebtedness either in whole or in part.
It is agreed that the Lender shall be subrogated to the claims and liens of all parties whose claims or
liens are discharged or paid with the proceeds of this loan.
The Borrower agrees to pay all taxes, liens, assessments and charges of every character that may
accrue or be assessed against said property, unless he shall bona fidely dispute the same and shall have
taken such steps as in the opinion of Lender are necessary to protect Lender's security interest: to carry fire
and extended coverage insurance on the premises in the amount of the full insurable value of said premises
and as may be required to prevent the Lender from being or becoming a co-insurer, in an insurance company
or companies acceptable to the Lender, with loss, if any, payable to the Lender; to deposit with the Lender
policies with standard mortgage clause without contribution evidencing such insurance; to keep said premises
and all improvements thereon in first-class condition and repair.
The Borrower hereby agrees that should he fail to pay as the same mature any tax, assessment, lien
or charge that may lawfully accrue against said property, or should he fail to maintain the insurance as herein
provided for, or should he fail on ten (10) days written notice from the Lender to repair the premises in a
reasonable time, or should any proceedinQ under bankruotcv law~ hI" hrr'lllnht h" nr ~n...;n~~ DM'~',,__