Form 8-7

Partial Release Clauses

Clause 8-7-1

If no default exists under any of the terms and conditions of this deed of trust or the Note, and if no event has occurred that, with notice, passage of time, or both, would be an event of default, Grantor is entitled to partial releases of the lien of the deed of trust on the following terms and conditions:

1.Releases will be granted by tracts of not less than [number] acre[s] each, successively and contiguously, beginning with the [specify] portion of the Property and proceeding [specify]. Each tract to be released will be approximately [specify, e.g., rectangular] in shape and will have as its boundary a portion of the Property’s frontage on [specify], and as its [specify] boundary an approximately equal portion of the [specify] boundary of the Property. No release will be granted that would deny frontage or disproportionately reduce the frontage on [specify] available to the unreleased portion of the Property or cause the unreleased portion of the property to be less than [specify area]. Access from the unreleased portion of the Prop­erty to [specify] must be at least [number] ([number]) feet wide.

2.To obtain a release, a principal amount of $[amount] per [acre/square foot] in cash must be paid on the Note. All payments for partial releases will be applied as a prepayment on the Note.

3.At the time a partial release is requested, the party requesting the release must furnish to the holder of the Note a calculation of area by field notes and a plat of survey, indicating the area to be released and its relationship to the portion of the Property not to be released. All expenses incident to the granting of partial releases will be borne by the party requesting the release, including but not limited to the cost of the survey, Lender’s attorney’s fees, and recording costs. Under no circumstances will the unreleased portion be inca­pable of supporting a building permit.

Clause 8-7-2

If no default exists under the Note or this deed of trust, and if no event has occurred that, with notice, passage of time, or both, would be an event of default, Grantor may have released from all liens securing the Note one or more lots out of the Property by paying to Lender the release price per lot as follows:

1.The release price per lot will be the greater of $[amount] or the net proceeds from the sale of that lot. “Net proceeds” is the gross sales price received by Grantor, or any person or entity related to or affil­iated with Grantor, less the expenses of sale, including title insur­ance premiums, survey fees, real estate commissions not to exceed 6 percent of the gross sales price, reasonable attorney’s fees, filing fees, recording fees, and other reasonable and customary closing costs in connection with the sale. Only those real estate commis­sions paid to parties other than Grantor, including persons or enti­ties affiliated with Grantor, may be counted as deductible expenses.

2.The release price paid by Grantor will be applied by Lender as a prepayment on the Note. All payments for partial releases will be applied as a prepayment on the Note.

3.At the time a partial release is requested, the party requesting the release must furnish to the holder of the Note a calculation of area by field notes and a plat of survey, indicating the area to be released and its relationship to the portion of the Property not to be released. All expenses incident to the granting of partial releases will be borne by the party requesting the release, including but not limited to the cost of the survey, Lender’s attorney’s fees, and recording costs.

Clause 8-7-3

Grantor is entitled to partial releases from the vendor’s lien and this deed of trust as provided in an agreement of even date between Grantor and Lender.