Note: When preparing this form, the attorney should carefully review Tex. Prop. Code §§ 51.0001, 51.0025, and 51.0075 and Tex. Bus. & Com. Code §§ 3.203 and 3.301 to ensure any reference to a person accurately describes the role the person holds or performs in the context of a foreclosure proceeding, e.g., references to “noteholder,” “beneficiary,” “owner,” “lender,” “obligor of the debt,” “mortgagor,” “mortgagee,” or “mortgage servicer” as appropriate.
Indemnity Agreement
This Indemnity Agreement (the “Agreement”) is entered into on [date] by [name of lender] (the “Lender”) for the benefit of the law firm of [specify] (the “Local Attorney”) and [name of substitute trustee] (the “Substitute Trustee”).
Lender is the owner and holder of a promissory note (the “Note”) in the original principal amount of $[amount] executed by [name of borrower] (the “Borrower”). The Note is secured by, among other things, the deed of trust from Borrower to [name of trustee], Trustee, filed in [recording data] of the real property records of [county] County, Texas, encumbering the property described in the deed of trust (the “Property”). [Include if applicable: The Property has been transferred to subsequent owners with the consent of Lender or its predecessor or assignors.]
Lender desires to appoint [name of substitute trustee] Substitute Trustee under the deed of trust and to conduct a foreclosure sale of the Property. [Include if applicable: Lender also desires Local Attorney to represent it in collection of the Note and associated foreclosure proceedings, including preparing demand, note acceleration, and notice-of-foreclosure letters and related services.]
[Name of substitute trustee], acting in the capacity of Substitute Trustee, will be requested to post a notice of foreclosure sale that contemplates a[n] [specify month and year] foreclosure sale of the Property.
Lender wishes to document certain agreements for the benefit of Local Attorney and Substitute Trustee.
Therefore, for valuable consideration paid by Local Attorney and Substitute Trustee to Lender, the receipt and sufficiency of which is acknowledged, Lender for itself, its successors, and assigns, agrees as follows:
Lender agrees to indemnify and hold harmless Local Attorney and Substitute Trustee, jointly and severally, from any and all liabilities, damages, costs, and expenses, including reasonable attorney’s fees and costs of court that either Local Attorney or Substitute Trustee may suffer or incur as a result of any claims that are asserted against either or both of them by reason of any disputes between Lender and Borrower, including without limitation claims, if any, of (1) usurious interest charges, (2) wrongful foreclosure, or (3) wrongful performance by [name of substitute trustee] of the duties of Substitute Trustee under the Deed of Trust, except this indemnity will not be applicable to the extent such claims arise out of the [include if applicable: grossly] negligent acts and/or omissions of Local Attorney and/or Substitute Trustee.
Executed on the above date in multiple copies, each of which is deemed an original.
[Name of lender]
[Name of local attorney]
State Bar No.:
[Email address]
[Address]
[Telephone]
[Telecopier]
[Name of substitute trustee]
This instrument was acknowledged before me on [date] by [name].
[SEAL] [Title of officer]
My commission expires: [date]