Hi. Could you please explain what that means in a deed of trust?

Question

For the Purpose of Securing: 1 Performance of each agreement of Trustor incorporated by reference or contained herein 2 Payment of the indebtedness evidenced by one promissory note of even date herewith, and any extension or renewal thereof, in the principal sum of $20,000.00 executed by Trustor in favor of Beneficiary or order 3 Payment of such further sums as the then record owner of said property hereafter may borrow from Beneficiary, when evidenced by another note (or notes) reciting it is so secured. 
 
In what cases 20K needs to be paid? For example if the loan was refinanced, does 20k need to be paid?

James L. Arrasmith · Answer

The language in the deed of trust outlines the obligations secured by the trust deed. In essence: 
 
1. The deed secures the performance of any agreement the Trustor has made within this document or any incorporated by reference. 
2. The deed secures the repayment of the $20,000, as evidenced by a promissory note dated the same as the deed. 
3. The deed secures any additional amounts the property's then-record owner may borrow from the Beneficiary in the future, provided such loans are evidenced by notes stating they are secured by this deed. 
 
Regarding your specific query about the $20,000: This amount needs to be repaid as evidenced by the referenced promissory note. The terms of that note dictate when and how it should be repaid. If the loan was refinanced, the obligation to repay the $20,000 depends on the terms of the refinancing. Often, refinancing pays off the original loan, rolling it into a new one. However, it's vital to review the refinancing agreement and the original note to determine if the $20,000 was indeed paid off or if it's still owed under the new loan terms.

Q: Hi. Could you please explain what that means in a deed of trust?