FSA-2029- M Mortgage/Deed of Trust

Position 5
UNITED STATES DEPARTMENT OF AGRICULTURE
Farm Service Agency

FSA-2029-M
(08-03-16)

Form Approved - OMB No. 0560-0237
Expiration Date: 12/31/2025

MORTGAGE FOR [Enter State Name]
NOTE:

The following statement is made in accordance with the Privacy Act of 1974 (5 USC 552a – as amended). The authority for requesting the information identified
on this form is 7 CFR Part 764, 7 CFR Part 765, 7 CFR Part 766, the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.), and the Agricultural
Act of 2014 (Pub. L. 113-79). The information will be used to establish the borrower’s agreement to the terms and conditions for obtaining the requested FSA
Farm Loan Programs benefits. The information collected on this form may be disclosed to other Federal, State, Local government agencies, Tribal agencies, and
nongovernmental entities that have been authorized access to the information by statute or regulation and/or as described in applicable Routine Uses identified in
the System of Records Notice for USDA/FSA-14, Applicant/Borrower. Providing the requested information is voluntary. However, failure to furnish the requested
information may result in a denial of the requested FSA Farm Loan Programs benefits.
The provisions of criminal and civil fraud, privacy, and other statutes may be applicable to the information provided.
According to the Paperwork Reduction to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond
to, a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0560-0237. The time
required to complete this information collection is estimated to average 30 minutes per response, including the time for reviewing instructions, searching existing
data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. RETURN THIS COMPLETED FORM TO
YOUR COUNTY FSA OFFICE.

THIS MORTGAGE (''instrument'') is made on

, 20

. The mortgagor is

("Borrower") whose mailing address is

. This instrument is given to the United States of America acting
through the Farm Service Agency, United States Department of Agriculture ("Government") located at
.
This instrument secures the following promissory notes, assumption agreements, and/or shared appreciation agreements (collectively called ''note''),
which have been executed or assumed by the Borrower unless otherwise noted, are payable to the Government, and authorize acceleration of the
entire debt upon any default:
Date of Instrument

Principal Amount

Annual Rate
of Interest

Due Date of Final
Installment

(The interest rate for any limited resource farm ownership or limited resource operating loans secured by this instrument may be increased as
provided in Government regulations and the note.)
By execution of this instrument, Borrower acknowledges receipt of all of the proceeds of the loan or loans evidenced by the above note.
This instrument secures to the Government: (1) payment of the note and all extensions, renewals, and modifications thereof; (2) recapture of any
amount due under any Shared Appreciation Agreement entered into pursuant to 7 U.S.C. § 2001; (3) payment of all advances and expenditures, with
interest, made by the Government; and (4) the obligations and covenants of Borrower set forth in this instrument, the note, and any other loan
agreements.
In consideration of any loan made by the Government under the Consolidated Farm and Rural Development Act, 7 U.S.C. § 1921 et seq. as
evidenced by the note, Borrower irrevocably mortgages, grants and conveys to Government the following described property situated in the
State of
County or Counties of
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in
or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age,
marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded
by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.
Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible
Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in
languages other than English.
To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA
office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or
letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3)
email: [email protected]. USDA is an equal opportunity provider, employer, and lender.

Initial_________ Date_________

:

FSA-2029-M (08-03-16)

Page 2 of 5
See attached Exhibit A for legal description.

together with all rights (including the rights to mining products, gravel, oil, gas, coal or other minerals), interests, easements, fixtures, hereditaments,
appurtenances, and improvements now or later attached thereto, the rents, issues and profits thereof, revenues and income therefrom, all water, water
rights, and water stock pertaining thereto, and all payments at any time owing to Borrower by virtue of any sale, lease, transfer, or condemnation of
any part thereof or interest therein (collectively called ''the property''). This instrument constitutes a security agreement and financing statement
under the Uniform Commercial Code and creates a security interest in all items which may be deemed to be personal property, including but not
limited to proceeds and accessions that are now or hereafter included in, affixed, or attached to "the property."
Borrower COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant and convey the property
and that the property is unencumbered, except for encumbrances of record. Borrower warrants and will defend the title to the property against all
claims and demands, subject to any encumbrances of record.
This instrument combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a
uniform mortgage covering real property.
UNIFORM COVENANTS. Borrower COVENANTS AND AGREES as follows:
1. Payment. Borrower shall pay promptly when due any indebtedness to the Government secured by this instrument.
2. Fees. Borrower shall pay to the Government such fees and other charges that may now or later be required by
Government regulations.
3. Application of payments. Unless applicable law or Government's regulations provide otherwise all payments received by the
Government shall be applied in the following order of priority: (a) to advances made under this instrument; (b) to accrued interest due
under the note; (c) to principal due under the note; (d) to late charges and other fees and charges.
4. Taxes, liens, etc. Borrower shall pay when due all taxes, liens, judgments, encumbrances, and assessments lawfully attaching
to or assessed against the property and promptly deliver to the Government without demand receipts evidencing such payments.
5. Assignment. Borrower grants and assigns as additional security all the right, title and interest in: (a) the proceeds of any award
or claim for damages, direct or consequential, in connection with any condemnation or taking by eminent domain or otherwise of any part of the
property, or for conveyance in lieu of condemnation; (b) all bonuses, rentals, royalties, damages, delay rentals and income that may be due or
become due and payable to the Borrower or Borrower's assigns under any existing or future oil, gas, mining or mineral lease covering any portion of
the property; and (c) all rents, issues, profits, income and receipts from the property and from all existing or future leases, subleases, licenses,
guaranties and any other agreements for the use and occupancy of any portion of the property, including any extensions, renewals, modifications or
substitutions of such agreements. Borrower warrants the validity and enforceability of this assignment.
Borrower authorizes and directs payment of such money to the Government until the debt secured by this instrument is paid in full. Such money
may, at the option of the Government, be applied on the debt whether due or not. The Government shall not be obligated to collect such money, but
shall be responsible only for amounts received by the Government. In the event any item so assigned is determined to be personal property, this
instrument will also be regarded as a security agreement.
Borrower will promptly provide the Government with copies of all existing and future leases. Borrower warrants that as of the date of executing this
instrument no default exists under existing leases. Borrower agrees to maintain, and to require the tenants to comply with, the leases and any
applicable law. Borrower will obtain the Government's written authorization before Borrower consents to sublet, modify, cancel, or otherwise alter
the leases, or to assign, compromise, or encumber the leases or any future rents. Borrower will hold the Government harmless and indemnify the
Government for any and all liability, loss or damage that the Government may incur as a consequence of this assignment.
6. Insurance. Borrower shall keep the property insured as required by and under insurance policies approved by the Government and,
at its request, deliver such policies to the Government. If property is located in a designated flood hazard area, Borrower also shall keep property
insured as required by 42 U.S.C. § 4001 et seq. and Government regulations. All insurance policies and renewals shall include a standard mortgagee
clause.
7. Advances by Government. The Government may at any time pay any other amounts required by this instrument to be paid by
Borrower and not paid by Borrower when due, as well as any cost for the preservation, protection, or enforcement of this lien, as advances for the
account of Borrower. Advances shall include, but not be limited to, advances for payments of real property taxes, special assessments, prior liens,
hazard insurance premiums, and costs of repair, maintenance, and improvements. All such advances shall bear interest at the same rate as the note
which has the highest interest rate. All such advances, with interest, shall be immediately due and payable by Borrower to the Government without
demand. No such advance by the Government shall relieve Borrower from breach of Borrower's covenant to pay. Any payment made by Borrower
may be applied on the note or any secured debt to the Government, in any order the Government determines.
8. Protection of lien. Borrower shall pay or reimburse the Government for expenses reasonably necessary or incidental to the protection
of the lien and its priority and the enforcement or compliance with this instrument and the note. Such expenses include, but are not limited to: costs
of evidence of title to, and survey of, the property, costs of recording this and other instruments, attorneys' fees, trustees' fees, court costs, and
expenses of advertising, selling, and conveying the property.
9. Authorized purposes. Borrower shall use the loan evidenced by the note solely for purposes authorized by the Government.

Initial_________ Date__________

FSA-2029-M (08-03-16)

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10. Repair and operation of property. Borrower shall: (a) maintain improvements in good repair; (b) make repairs required by the
Government; (c) comply with all farm conservation practices and farm management plans required by the Government; and (d) operate the property
in a good and husbandlike manner. Borrower shall not; (e) abandon the property; (f) cause or permit waste, lessening or impairment of the property;
or (g) cut, remove, or lease any timber, gravel, oil, gas, coal, or other minerals without the written consent of the Government, except as necessary
for ordinary domestic purposes.
11. Legal compliance. Borrower shall comply with all laws, ordinances, and regulations affecting the property.
12. Transfer or encumbrance of property. Except as provided by Government regulations, the Borrower shall not lease, assign, sell,
transfer, or encumber, voluntarily or otherwise, any of the property without the written consent of the Government. The Government may grant
consents, partial releases, subordinations, and satisfactions in accordance with Government regulations.
13. Inspection. At all reasonable times the Government may inspect the property to ascertain whether the covenants and agreements
contained in this instrument are being performed.
14. Hazardous substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any hazardous
substances on or in the property. The preceding sentence shall not apply to the presence, use, or storage on the property of small quantities of
hazardous substances that are generally recognized to be appropriate to normal use and maintenance of the property. Borrower covenants that
Borrower has made full disclosure of any such known, existing hazardous conditions affecting the property. Borrower shall not do, nor allow anyone
else to do, anything affecting the property that is in violation of any federal, state, or local environmental law or regulation. Borrower shall promptly
give the Government written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private
party involving the property and any hazardous substance or environmental law or regulation of which Borrower has actual knowledge. If Borrower
learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any hazardous substance affecting the
property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with applicable environmental law and regulations.
As used in this paragraph, ''hazardous substances'' are those substances defined as toxic or hazardous substances by environmental law and the
following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials
containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph, "environmental law'' means Federal laws and regulations
and laws and regulations of the jurisdiction where the property is located that relate to health, safety or environmental protection.
15. Adjustment; release; waiver; forbearance. In accordance with Government regulations, the Government may (a) adjust the
interest rate, payment, terms or balance due on the loan, (b) increase the mortgage by an amount equal to deferred interest on the outstanding
principal balance, (c) extend or defer the maturity of, and renew and reschedule the payments on the note, (d) release any party who is liable under
the note from liability to the Government, (e) release portions of the property and subordinate its lien, and (f) waive any other of its rights under this
instrument. Any and all of this can and will be done without affecting the lien or the priority of this instrument or Borrower's liability to the
Government for payment of the note secured by this instrument unless the Government provides otherwise in writing. HOWEVER, any forbearance
by the Government - whether once or often - in exercising any right or remedy under this instrument, or otherwise afforded by applicable law, shall
not be a waiver of or preclude the exercise of any such right or remedy.
16. Graduation. If the Government determines that Borrower may be able to obtain a loan from a responsible cooperative or private
credit source at reasonable rates and terms for loans for similar purposes and periods of time, Borrower will, upon the Government's request, apply
for and accept such a loan in sufficient amount to pay the note secured by this instrument and to pay for stock necessary to be purchased in a
cooperative lending agency in connection with such loan.
17. Forfeiture. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in the
Government's good faith judgment could result in forfeiture of the property or otherwise materially impair the lien created by this instrument or the
Government's security interest. Borrower may cure such default by causing the action or proceeding to be dismissed with a ruling that precludes
forfeiture of the Borrower's interest in the property or other material impairment of the lien created by this security instrument or the Government's
security interest.
18. False statement. Borrower also shall be in default if Borrower, during the loan application process, gave materially false or
inaccurate information or statements to the Government (or failed to provide the Government with any material information) in connection with the
loan evidenced by the note.
19. Cross Collateralization. Default under this instrument shall constitute default under any other security instrument held by the
Government and executed or assumed by Borrower. Default under any other such security instrument shall constitute default under this instrument.
20. Highly erodible land; wetlands. Any loan secured by this instrument will be in default if Borrower uses any loan proceeds for a
purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity as
provided in 7 CFR Part 12 and 7 CFR Part 799, or any successor Government regulation.
21. Non-discrimination. If any part of the loan for which this instrument is given shall be used to finance the purchase, construction or
repair of property to be used as an owner-occupied dwelling (herein called ''the dwelling'') and if Borrower intends to sell or rent the dwelling and has
obtained the Government's consent to do so (a) neither Borrower nor anyone authorized to act for Borrower will, after receipt of a bona fide offer,
refuse to negotiate for the sale or rental of the dwelling or will otherwise make unavailable or deny the dwelling to anyone because of race, color,
religion, sex, national origin, disability, familial status or age, and (b) Borrower recognizes as illegal and hereby disclaims, and will not comply with
or attempt to enforce any restrictive covenants on the dwelling relating to race, color, religion, sex, national origin, disability, familial status or age.
22. Notices. Notices given under this instrument shall be sent by certified mail unless otherwise required by law. Such notices shall be
addressed, unless and until some other address is designated in a notice, in the case of the Government to the State Executive Director of the Farm
Service Agency at the mailing address shown above, and in the case of Borrower at the address shown in the Government's Finance Office records
(which normally will be the same as the mailing address shown above).

Initial_________ Date_________

FSA-2029-M (08-03-16)

Page 4 of 5

23. Governing law; severability. This instrument shall be governed by Federal law. If any provision of this instrument or the note or its
application to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this instrument or the
note which can be given effect without the invalid provision or application. The provisions of this instrument are severable. This instrument shall be
subject to the present regulations of the Government, and to its future regulations not inconsistent with the express provisions hereof. All powers and
agencies granted in this instrument are coupled with an interest and are irrevocable by death or otherwise; and the rights and remedies provided in
this instrument are cumulative to remedies provided by law.
24. Successors and assigns; joint and several covenants. The covenants and agreements of this instrument shall bind and benefit the
successors and assigns of Government and Borrower. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs
this instrument but does not execute the Note: (a) is co-signing this instrument only to mortgage, grant and convey that Borrower's interest in the
property under this instrument; (b) is not personally obligated to pay the sums secured by this instrument; and (c) agrees that the Government and
any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this instrument or the note
without that Borrower's consent.
25. No merger. If this instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires
fee title to the property, the leasehold and the fee title shall not merge unless the Government agrees to the merger in writing. If the property is
conveyed to the Government, title shall not merge (unless the Government elects otherwise) and the lien provided under this instrument shall not be
affected by such conveyance.
26. Time is of the essence. Time is of the essence in the Borrower's performance of all duties and obligations under this instrument.
NON-UNIFORM COVENANTS. Borrower further COVENANTS AND AGREES as follows:
27. Default; death; incompetence; bankruptcy. Should default occur in the performance or discharge of any obligation in this
instrument or secured by this instrument, or should the Borrower die or be declared incompetent, or should the Borrower be discharged in bankruptcy
or declared an insolvent or make an assignment for the benefit of creditors, the Government, at its option, with or without notice, may: (a) declare
the entire amount unpaid under the note and any debt to the Government hereby secured immediately due and payable, (b) for the account of
Borrower incur and pay reasonable expenses for repair or maintenance of, and take possession of, operate or rent the property, (c) upon application
by it and production of this instrument, without other evidence and without notice of hearing of said application, have a receiver appointed for the
property, with the usual powers of receivers in like cases, (d) foreclose this instrument and sell the property as prescribed by law; and (e) enforce any
and all other rights and remedies provided herein or by present or future law.
28. State law. Borrower agrees that the Government will not be bound by any present or future State laws, (a) providing for valuation,
appraisal, homestead or exemption of the property, (b) prohibiting maintenance of any action for a deficiency judgment or limiting the amount
thereof or the time within which such action must be brought, (c) prescribing any other statute of limitations, (d) allowing any right of redemption or
possession following any foreclosure sale, or (e) limiting the conditions which the Government may by regulation impose, including the interest it
may charge, as a condition of approving a transfer of the property to a new Borrower. Borrower expressly waives the benefit of any such State laws.
29. Assignment of leases and rents. Borrower agrees that the assignment of leases and rents in this instrument is immediately effective
on the recording of this instrument. Upon default, the Borrower will receive any rents in trust for the Government, and Borrower will not commingle
the rents with any other funds. Any amounts collected shall be applied at the Government's discretion first to costs of managing, protecting and
preserving the property, and to any other necessary related expenses. Any remaining amounts shall be applied to reduce the debt evidenced by the
note(s). Borrower agrees that the Government may demand that Borrower and Borrower's tenants pay all rents due or to become due directly to the
Government if the Borrower defaults and the Government notifies Borrower of the default. Upon such notice, Borrower will endorse and deliver to
the Government any payments of rents. If the Borrower becomes subject to a bankruptcy, then Borrower agrees that the Government is entitled to
receive relief from the automatic stay in bankruptcy for the purpose of enforcing this assignment.
30. Application of foreclosure proceeds. The proceeds of foreclosure sale shall be applied in the following order to the payment
of: (a) costs and expenses incident to enforcing or complying with this instrument, (b) any prior liens required by law or a competent court to be so
paid, (c) the debt evidenced by the note and all other debt to the Government secured by this instrument, (d) inferior liens of record required by law
or a competent court to be so paid, (e) at the Government's option, any other debt of Borrower to the Government, and (f) any balance to Borrower.
If the Government is the successful bidder at foreclosure or other sale of all or any part of the property, the Government may pay its share of the
purchase price by crediting such amount on any debts of Borrower owing to the Government in the order prescribed above.

FSA-2029-M (08-03-16)

Page 5 of 5

By signing below, Borrower accepts and agrees to the terms and covenants contained in this instrument and in any rider executed by Borrower and
recorded with this instrument.
___________________________________ (SEAL)

___________________________________ (SEAL)

___________________________________ (SEAL)

___________________________________ (SEAL)

ACKNOWLEDGMENTS

}

STATE OF
COUNTY OF
On this

ss.

(Individual)

day of

, before me personally appeared
to be known to me to be the same whose name is subscribed to the foregoing
instrument, and acknowledged that (he or she) signed and delivered the instruments as (his or her) free and voluntary act, for the uses and purposes
set forth.
My commission expires:

NOTARY PUBLIC
Note: Page 5 of 5 applies to entities only and will not be recorded for individuals.

STATE OF
COUNTY OF

}

ss.

(Corporation)

This foregoing instrument was acknowledged before me this
day of
, President and
Secretary of
,a
of the corporation.

, by
corporation, on behalf

My commission expires:

NOTARY PUBLIC
STATE OF
COUNTY OF

}

This foregoing instrument was acknowledged before me this
,a

ss.

(Partnership)

day of
Partners on behalf of the

, by
partnership.

My commission expires:

NOTARY PUBLIC
Initial_________ Date__________

,

,