Sierra Resource Group Inc. (fka SIRG)

[Actuate]

Deed of Trust:
Transactions involving trust deeds are normally structured, at least in theory, so that the lender gives the borrower/trustor the money to buy the property; the borrower/trustor tenders the money to the seller; the seller executes a grant deed giving the property to the borrower/trustor; and the borrower/trustor immediately executes a trust deed giving the property to the trustee (GRAND VIEW VENTURES) to be held in trust for the lender/beneficiary.

A deed of trust has a crucial advantage over a mortgage. If the borrower defaults on the loan, the trustee has the power to foreclose on the property on behalf of the beneficiary. In most U.S. states, a deed of trust (but not a mortgage) can contain a special "power of sale" clause that permits the trustee to exercise these powers. Here is the standard conveyance clause from a Freddie Mac "uniform instrument":

"Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property.."


What happens when you don't pay your mortgage? YOU LOSE YOUR HOME!

The difference here is that the notes in their entirety are due in less than 6 months. With no source of revenue, SIRG will likely be unable to pay the amount due. That will result in foreclosure on their interest in the mine.

Actually, SIRG was supposed to file a deed of trust against their 80% interest in the Chloride Copper Mine the first time to secure the two Grand View Ventures notes, but they failed to do so.

b. The Company has not filed a deed of trust securing the mining claim in the county of Arizona where the mining claims of the Company exist.

1. Ratification and Reaffirmation of Obligations and Liens. The Company hereby ratifies and reaffirms the validity and enforceability of all of the obligations under the February Note, the May Note, and the Security Agreement and agrees that its obligations under such agreements are its legal, valid and binding obligations enforceable against it in accordance with the respective terms hereof and thereof and that it has not asserted a defense (whether legal or equitable), set-off or counterclaim to the payment or performance of such obligations in
accordance with the terms of such agreements.

http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9021095