Document:

EXHIBIT 10.14.10

RECORD AND RETURN TO:
John P. Bailey, Esq.
Smith, Gambrell & Russell, LLP
Suite 3100, Promenade II
1230 Peachtree Street, N.E.
Atlanta, Georgia 30309-3592

                     DEED TO SECURE DEBT, SECURITY AGREEMENT
                       AND ASSIGNMENT OF LEASES AND RENTS

         THIS DEED TO SECURE DEBT, SECURITY AGREEMENT AND ASSIGNMENT OF
LEASES AND RENTS (this  "Security  Deed") is made  and  delivered  as of the 3rd
day of May,  2000,  by ROBERTS  PROPERTIES  RESIDENTIAL,  L.P.  ("Borrower"),  a
Georgia  limited  partnership,  having a mailing  address of 8010 Roswell  Road,
Suite  120,  Atlanta,  Georgia  30305,  to and for the  benefit  of FIRST  UNION
NATIONAL BANK ("Lender"), a national banking association,  having as its address
999 Peachtree  Street,  N.E., Ninth Floor,  Atlanta,  Georgia 30309,  Attn: Real
Estate Portfolio Management, Mail Code 9068;

                              W I T N E S S E T H:

ARTICLE I.  DEFINED TERMS

For purposes hereof, the following terms shall have the following meanings:

                  1.1 "Borrower":  The  above-defined  Borrower,  whether one or
more, and its approved successors, successors-in-title and assigns.

                  1.2  "Construction  Contracts":  Any  and  all  contracts  and
agreements,  written or oral,  between Borrower and any other party, and between
parties  other than  Borrower,  in any way relating to the  construction  of the
Improvements (hereinafter defined) or the supplying of material, labor, supplies
or other services therefor and any and all permits, bonds, surveys,  licenses or
other  governmental  approvals  in any way  related to the  construction  of the
Improvements.

                  1.3 "Environmental Laws": Any and all federal, state and local
environmental,  health or safety laws,  standards,  ordinances,  regulations and
rules  of  common  law,  including,   but  not  limited  to,  the  Comprehensive
Environmental  Response,  Compensation and Liability Act, as amended (42 USC ss.
9601, et seq.) ("CERCLA"),  the Superfund Amendments and Reauthorization Act, as
amended  (42 USC ss.  9601,  et seq.),  the  Emergency  Planning  and  Community
Right-to-Know

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Act, as amended (42 USC ss.  11001,  et seq.),  the  Resource  Conservation  and
Recovery Act, as amended (42 USC ss. 6901, et seq.) ("RCRA"), the Clean Air Act,
as amended (42 USC ss. 7401,  et seq.) ("Clean Air Act"),  the Toxic  Substances
Control  Act, as amended (15 USC ss.  2601,  et seq.)  ("Substances  Act"),  the
Federal Water Pollution  Control Act, as amended (33 USC ss. 1251, et seq.), the
Hazardous  Materials  Transportation  Act, as amended (49 USC ss. 1802, et seq.)
("Transportation  Act") and the Clean  Water Act, as amended (33 USC ss. 466, et
seq.) ("Clean Water Act").

                  1.4 "Event of Default":  Any failure,  happening or occurrence
described in Article V hereinbelow.

                  1.5 "Fixtures": All materials,  supplies, equipment, apparatus
and other items now owned or hereafter acquired by Borrower and now or hereafter
attached  to,   installed  in  or  used  in  connection  with   (temporarily  or
permanently)  any of the  Improvements  or the Property  (hereinafter  defined),
including,  but not limited to, any and all building and construction  materials
and supplies, furniture,  furnishings,  apparatus, machinery, equipment, motors,
elevators, fittings, radiators, ranges, refrigerators, awnings, shades, screens,
blinds,  carpeting,  office equipment and other  furnishings,  and all plumbing,
heating, lighting, cooking, laundry, ventilating,  refrigerating,  incinerating,
air conditioning and sprinkler  equipment,  telephone  systems,  televisions and
televisions systems,  computer systems, and fixtures and appurtenances  thereto,
together with all accessions,  replacements,  betterments and  substitutions for
any of the foregoing and the proceeds thereof.

                  1.6 "General Partner": Roberts Realty Investors, Inc.

                  1.7 "Governmental  Authorities":  Any and all courts,  boards,
agencies, commissions, offices, officers, officials or authorities of any nature
whatsoever  (including,  without  limitation,  health and environmental) for any
governmental unit (federal, state or local).

                  1.8 Intentionally Omitted

                  1.9 "Hazardous Materials": Any hazardous substances, hazardous
wastes,  regulated  substances,  toxic substances,  or hazardous air pollutants,
including,  without  limitation,  asbestos,  PCBs, oil,  petroleum  products and
by-products,  substances  defined or listed as "hazardous  substances" or "toxic
substances"  or  otherwise  identified  in  or  pursuant  to  CERCLA,  hazardous
materials  identified in or pursuant to the Transportation Act, hazardous wastes
identified in or pursuant to RCRA, any chemical  substance or mixture  regulated
under the Substances Act, any "toxic  pollutant"  under the Clean Water Act, any
hazardous  air  pollutant  under the Clean Air Act,  and any  hazardous or toxic
substance or pollutant  regulated under any other applicable  federal,  state or
local Environmental Laws.

                  1.10 "Impositions":  (i) All real estate and personal property
taxes,  charges,  assessments,  excises  and levies and any  interest,  costs or
penalties with respect thereto, general and special, ordinary and extraordinary,
foreseen and unforeseen,  of any kind and nature  whatsoever,  which at any time
prior to or after the execution  hereof may be assessed,  levied or imposed upon
the

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Mortgaged  Property  (hereinafter  defined) or the ownership,  use, occupancy or
enjoyment  thereof,  or any portion  thereof;  (ii) any charges,  fees,  license
payments or other sums payable for any easement, license or agreement maintained
for the  benefit  of the  Mortgaged  Property;  and  (iii)  water,  gas,  sewer,
electricity,  telephone  and  other  utility  charges  and fees  related  to the
Mortgaged Property.

                  1.11  "Improvements":  Any  and all  improvements,  additions,
alterations,  betterments or appurtenances to the Property, whether now existing
or at any time hereafter situated,  placed or constructed upon the Property,  or
any part thereof.

                  1.12 "Indebtedness": (i) The principal of, interest on and all
other  amounts,  payments  and  premiums  due  under  or  secured  by  the  Note
(hereinafter defined), this Security Deed and any and all other documents now or
hereafter  executed by Borrower or any other person or party in connection  with
the loan  evidenced by the Note;  (ii) any and all  additional  sums advanced by
Lender to preserve the  Mortgaged  Property or its security  title in and to the
Mortgaged Property, or for taxes,  assessments or insurance premiums; (iii) such
additional  sums,  with  interest  thereon,  as may  hereafter be borrowed  from
Lender,  its  successors  or assigns,  by the then record owner of the Mortgaged
Property,  when evidenced by a promissory  note which,  by its terms, is secured
hereby (it being  contemplated  that such future  indebtedness may be incurred);
and (iv) such other and further indebtedness as may now be, or from time to time
hereafter shall become, owing to Lender by Borrower,  or any one or more of them
either  jointly  or  severally,   including  without  limitation,  any  and  all
obligations,  liabilities,  debts, indebtedness, etc. which may now or hereafter
be  owing  by  Borrower  to  Lender  or to any  "affiliate"  (as  that  term  is
hereinafter  defined) of Lender under any rate swap,  zero cost  collar,  or any
other  derivative  contract or product  ("Swap  Agreement")  entered into by and
between  Borrower and Lender or Borrower and any affiliate of Lender,  including
without  limitation,  that certain ISDA Master Agreement,  dated March 23, 2000,
between  Borrower and Lender.  For purposes of this  section  (iv),  "affiliate"
shall mean, as to Lender,  any person or entity which,  directly or  indirectly,
owns or controls, on an aggregate basis,  including all beneficial ownership and
ownership or control as a trustee,  guardian or other  fiduciary,  at least five
percent (5%) of the  outstanding  shares of capital stock having ordinary voting
power to elect a majority  of the board of  directors  or other  governing  body
(irrespective  of whether,  at the time,  stock of any other class or classes of
such  corporation  shall  have or  might  have  voting  power by  reason  of the
happening of any  contingency) of such person or entity or at least five percent
(5%) of the partnership or other ownership interest of such person or entity; or
which controls,  is controlled by or is under common control with such person or
entity; provided,  however, that in no event shall Borrower and Lender be deemed
or regarded as  affiliates of each other.  For the purposes of this  definition,
"control" means the possession,  directly or indirectly,  of the power to direct
or cause the direction of management and policies, whether through the ownership
of voting securities, by contract or otherwise.

                  1.13  "Leases":  Any  and  all  leases,  subleases,  licenses,
concessions  or other  agreements  (written or oral, now or hereafter in effect)
which grant a  possessory  interest  in and to, or the right to use,  all or any
part of the Mortgaged  Property,  together with all security and other  deposits
made in connection therewith.

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                  1.14 "Legal Requirements": (i) Any and all judicial decisions,
statutes,  rulings, rules, regulations,  permits,  certificates or ordinances of
any  Governmental  Authority in any way applicable to Borrower or applicable to,
affecting or impacting in any way the  Mortgaged  Property,  including,  without
limiting  the  generality  of the  foregoing,  the  ownership,  use,  occupancy,
possession,  operation,   maintenance,   alteration,  repair  or  reconstruction
thereof;  (ii) any and all covenants,  conditions and restrictions  contained in
any deed or other form of  conveyance  or in any other  instrument of any nature
that  relate  in any way or are  applicable  to the  Mortgaged  Property  or the
ownership,  use or occupancy thereof; (iii) Borrower's presently or subsequently
effective bylaws and articles of  incorporation,  partnership  agreement,  joint
venture  agreement,  trust  agreement  or  other  form of  business  association
agreement; (iv) any and all Leases; and (v) any and all other contracts (written
or oral) of any nature that relate in any way to the  Mortgaged  Property and to
which Borrower may be bound,  including,  without limiting the generality of the
foregoing,  any lease or other contract  pursuant to which Borrower is granted a
possessory interest in the Property.

                  1.15 "Lender":  The above-defined  Lender,  and any subsequent
holder or holders, from time to time, of the Note.

                  1.16 "Loan  Documents":  This Security  Deed,  the Note,  that
certain  Construction  Loan Agreement of even date herewith between Borrower and
Lender (the "Loan Agreement),  that certain Environmental Indemnity Agreement of
even date herewith from Borrower to Lender, any and all UCC Financing Statements
from  Borrower  to  Lender,  and any and all other  documents  now or  hereafter
executed  by  Borrower  or any other  person or party to  evidence or secure the
payment of the Indebtedness or the performance and discharge of the Obligations.

                  1.17  "Mortgaged   Property":   The  Property,   Improvements,
Fixtures, Personalty (hereinafter defined) together with:

                  (a)  all   rights,   privileges,   tenements,   hereditaments,
royalties,  minerals, oil and gas rights, rights-of-way,  easements,  appendages
and  appurtenances in anywise  appertaining  thereto,  and all right,  title and
interest,  if any, of Borrower,  in and to any streets,  ways, alleys, strips or
gores of land adjoining the Property or any part thereof; and

                  (b) all  betterments,  improvements,  additions,  alterations,
appurtenances,  substitutions,  replacements and revisions  thereof and thereto,
and all reversions and remainders therein; and

                  (c) all of Borrower's right,  title and interest in and to any
awards,  remunerations,  reimbursements,  settlements or compensation heretofore
made or hereafter to be made by any  Governmental  Authority  pertaining  to the
Property,  Improvements,  Fixtures or Personalty including,  but not limited to,
those for any  vacation  of, or change of grade in, any  streets  affecting  the
Property or the Improvements  and those for municipal  utility district or other
utility costs incurred or deposits made in connection with the Property; and

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                  (d) all of Borrower's right,  title and interest in and to any
proceeds of insurance required or maintained  pursuant to the terms of Paragraph
3.19 hereof; and

                  (e) subject to the provisions of Paragraph 8.3 hereof,  all of
the Leases and Rents; and

                  (f) the Construction Contracts and Plans; and

                  (g) any and all other security and  collateral,  of any nature
whatsoever,  now or hereafter given for the repayment of the Indebtedness or the
performance and discharge of the Obligations.

As used in this Security Deed, the term "Mortgaged  Property" shall be expressly
defined as meaning all or, where the context permits or requires, any portion of
the above,  and all or,  where the context  permits or  requires,  any  interest
therein.

                  1.18  "Note":  The  promissory  note  of even  date  herewith,
executed by Borrower payable to the order of Lender,  in the principal amount of
TWENTY-TWO  MILLION FIVE HUNDRED  THOUSAND AND NO/100 DOLLARS  ($22,500,000.00),
with final payment due on May 1, 2005, and any and all renewals, reinstatements,
extensions,  enlargements or rearrangements thereof,  amendments thereto, or any
promissory note or notes given therefor.

                  1.19 "Obligations":  Any and all of the covenants, conditions,
warranties,  representations  and  other  obligations  (other  than to repay the
Indebtedness) made or undertaken by Borrower to Lender, as set forth in the Loan
Documents,  the Leases and all other  documents  now or  hereafter  executed  by
Borrower  in  connection  with the loan  evidenced  by the Note and in any deed,
lease,  sublease or other form of conveyance or any other agreement  pursuant to
which Borrower is granted a possessory interest in the Property.

                  1.20 "Permitted  Encumbrances":  Those items listed on Exhibit
"B" attached hereto.

                  1.21  "Personalty":  All of the right,  title and  interest of
Borrower in and to all  furniture,  furnishings,  equipment,  machinery,  goods,
general  intangibles,  money,  insurance  proceeds,  accounts,  contract rights,
trademarks,  trade names, inventory, all refundable,  returnable or reimbursable
fees,  deposits or other funds or evidences of credit or indebtedness  deposited
by or on behalf of Borrower with any governmental agencies, boards, corporations
or providers of utility services, public or private, including specifically, but
without limitation, all refundable, returnable or reimbursable tap fees, utility
deposits, commitment fees and development costs, and all other personal property
(other than the  Fixtures) of any kind or character as defined in and subject to
the  provisions  of the Uniform  Commercial  Code of  Georgia,  which are now or
hereafter located or to be located upon, within or about the Mortgaged  Property
or  which  are  or may be  used  in or  related  to

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the planning,  development,  financing or operation of the  Mortgaged  Property,
together  with  all  accessories,  replacements  and  substitutions  thereto  or
therefor and the proceeds thereof.

                  1.22  "Plans":  Any  and  all  plans,   specifications,   shop
drawings,  and other  technical  descriptions  prepared for  construction of the
Improvements, and all amendments and modifications thereof.

                  1.23 "Property": The real estate or interest therein described
in Exhibit "A" attached hereto and  incorporated  herein by this reference,  and
all rights, titles and interests appurtenant thereto.

                  1.24 "Rents": The rents, income,  receipts,  revenues,  issues
and  profits  now due or which may  become  due or to which  Borrower  is now or
hereafter may become entitled or which Borrower may demand or claim,  arising or
issuing from or out of the Leases,  or from or out of the Mortgaged  Property or
any part thereof,  including,  without limiting the generality of the foregoing,
minimum rents,  additional rents,  percentage rents, parking maintenance charges
or fees, tax and insurance contributions,  proceeds of sale of electricity, gas,
chilled and heated water and other  utilities  and services,  deficiency  rents,
security  deposits and other  liquidated  damages  following  default,  premiums
payable by any Tenant upon the exercise of a cancellation privilege provided for
in any Lease and all proceeds  payable  under any policy of  insurance  covering
loss of rents resulting from untenantability  caused by destruction or damage to
the Mortgaged Property,  together with any and all rights and claims of any kind
which  Borrower  may have  against  any Tenant  under any Lease or  against  any
subtenants or occupants of the Mortgaged Property.

         1.25     "Tenant": The tenant or lessee under any Lease.

ARTICLE II.  GRANT AND CONVEYANCE

         2.1 Grant and Conveyance.  For and in  consideration  of the sum of Ten
and No/100  Dollars  ($10.00)  and other good and  valuable  consideration,  the
receipt and sufficiency of which are hereby  acknowledged,  Borrower does hereby
GRANT, BARGAIN, SELL, CONVEY, ASSIGN, TRANSFER,  PLEDGE and SET OVER unto Lender
the Mortgaged Property, subject, however, to the Permitted Encumbrances, TO HAVE
AND  TO  HOLD  the  Mortgaged  Property  and  all  parts,  rights,  members  and
appurtenances  thereof,  to the  use,  benefit  and  behoof  of  Lender  and the
successors and assigns of Lender,  IN FEE SIMPLE forever;  and Borrower warrants
and covenants  that  Borrower is lawfully  seized and possessed of the Mortgaged
Property as aforesaid, and has good right to convey the same subject only to the
Permitted Encumbrances,  and that Borrower does warrant and shall forever defend
the title thereto against the claims of all persons whomsoever, except as to the
Permitted Encumbrances.

         2.2 Security Deed.  This Security Deed is intended to operate and is to
be construed as a deed passing the title to the Mortgaged Property to Lender and
is made under  those  provisions  of the  existing  laws of the State of Georgia
relating to deeds to secure debt, and not as a mortgage,  and

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is given to secure the Indebtedness  and Obligations,  and any and all renewals,
modifications, consolidations, replacements and extensions thereof.

         2.3  Cancellation.  Should the  Indebtedness  be paid  according to the
tenor and effect thereof when the same shall become due and payable,  and should
Borrower  perform all  Obligations in a timely  manner,  then this Security Deed
shall be canceled and surrendered.

         2.4 Revolving Loan Account.  If this Security Deed secures a "revolving
loan  account"  as defined in Section  44-14-3 of the  Official  Code of Georgia
Annotated,  payment  of all  amounts  outstanding  on the Note from time to time
shall not cancel or release this Security Deed, and re-advances shall be secured
to the same extent as original obligations hereunder.

ARTICLE III.  COVENANTS, WARRANTIES AND REPRESENTATIONS

         Borrower hereby unconditionally  covenants,  warrants and represents to
Lender as follows (which covenants, warranties and representations have been and
will be relied  upon by Lender in  advancing  funds to  Borrower  under the Loan
Documents,  and shall be  deemed  to be  continuing  covenants,  warranties  and
representations made on a daily basis by Borrower):

         3.1 Organization and Power. If Borrower,  or any signatory who signs on
its behalf, is a corporation,  general partnership,  limited partnership,  joint
venture,  trust, or other type of business  association,  it (a) as the case may
be,  is a  corporation  duly  incorporated  or a  general  partnership,  limited
partnership,  joint venture,  trust or other type of business  association  duly
organized,  validly existing and in good standing under the laws of the state of
its formation or existence, and has complied with all conditions prerequisite to
its doing business in the State of Georgia,  and (b) has all requisite power and
all governmental certificates of authority,  licenses,  permits,  qualifications
and  documentation  to own, lease and operate its properties and to carry on its
business as now being, and as proposed to be, conducted.

         3.2  Validity  of  Loan  Instruments.   The  execution,   delivery  and
performance by Borrower of the Loan Documents (a) if Borrower,  or any signatory
who  signs  on  its  behalf,  is a  corporation,  general  partnership,  limited
partnership,  joint venture,  trust or other type of business  association,  are
within Borrower's authority and have been duly authorized by Borrower's Board of
Directors,  shareholders,  partners,  venturers,  trustees  or  other  necessary
parties,  and all other requisite action for such  authorization has been taken;
(b) have received all (if any) requisite prior governmental approval in order to
be legally binding and enforceable in accordance with the terms thereof; and (c)
will not violate, be in conflict with, result in a breach of or constitute (with
due notice or lapse of time, or both) a default under any Legal Requirement,  or
result in the creation or imposition of any lien,  charge or  encumbrance of any
nature  whatsoever  upon  any  of  Borrower's  property  or  assets,  except  as
contemplated  by the  provisions  of the  Loan  Documents.  The  Loan  Documents
constitute  the legal,  valid and binding  obligations  of  Borrower  and others
obligated under the terms of the Loan Documents,  enforceable in accordance with
their respective terms.

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         3.3  Information.  All information,  reports,  papers and data given to
Lender with respect to Borrower or others  obligated under the terms of the Loan
Documents or the  Mortgaged  Property  are, or at the time of delivery  will be,
accurate,  complete  and correct in all  material  respects  and do not omit any
fact, the inclusion of which is necessary to prevent the facts contained therein
from being  materially  misleading.  Borrower has disclosed to Lender in writing
all  pending  or  threatened  litigation  involving  Borrower  or the  Mortgaged
Property.

         3.4  Title to  Mortgaged  Property  and  Priority  of this  Instrument.
Borrower has good,  marketable and indefeasible fee simple title to the Property
and Improvements,  and good and marketable title to the Fixtures and Personalty,
free and clear of any liens, charges, encumbrances,  security interests, claims,
easements, restrictions,  options, leases (other than the Leases), covenants and
other rights,  titles,  interests or estates of any nature whatsoever except the
Permitted  Encumbrances.  This Security Deed  constitutes a valid and subsisting
first  priority  deed to secure debt in and to the  Property,  Improvements  and
Fixtures, a valid,  subsisting first security interest in and to the Personalty,
Construction Contracts, Plans and, to the extent that the terms Leases and Rents
include items covered by Article 9 of the Uniform  Commercial  Code, Title 11 of
the  Official  Code of Ga.  Ann.  (Michie  1982),  Title  109A of Ga.  Code Ann.
(Harrison 1977), in the Leases and Rents; and a valid, subsisting first priority
assignment  of the  Leases  and  Rents not  covered  by said  Article  9, all in
accordance with the terms hereof.

         3.5 Taxes and Other Payments. Borrower has filed all federal, state and
local income and other tax returns  required to have been filed by them and have
paid all taxes owed by them,  and Borrower  knows of no basis for any additional
assessment  in  respect of any such  taxes,  except  that which may result  from
increased  valuation  resulting  from  the  construction  of  the  Improvements.
Borrower  has paid or will pay in full  (except  for such  retainages  as may be
permitted  or  required  by any Legal  Requirement  to be  withheld  by Borrower
pending  completion  of the  Improvements  and the Phillips  lien  referenced in
paragraphs  6.36 and 6.37 of the Loan  Agreement)  all sums owing or claimed for
labor,  material,   supplies,  personal  property  (whether  or  not  a  Fixture
hereunder) and services of every kind and character used, furnished or installed
in or on the Mortgaged Property and no lien for same exists or will be permitted
to be created.

         3.6 Hazardous  Materials.  (a) Borrower has  conducted all  appropriate
inquiry and  investigation  into the  presence  of  Hazardous  Materials  on the
Mortgaged  Property  and the  compliance  by the  Mortgaged  Property  with  all
Environmental  Laws. The Mortgaged  Property is, and at all times hereafter will
continue to be, in full compliance with all  Environmental  Laws. As of the date
of this Security Deed, the Mortgaged  Property has not been used to treat, store
or  dispose  of  any  Hazardous  Materials,  and  no  such  Hazardous  Materials
(including without limitation,  any materials containing asbestos),  are located
on,  in or  under  the  Mortgaged  Property  or used or  emitted  in  connection
therewith.  Borrower has obtained and shall  maintain all licenses,  permits and
approvals  required  with  respect  to  Hazardous  Materials,  and  is  in  full
compliance with all of the terms,  conditions and requirements of such licenses,
permits and approvals.

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                  (b) To the best of Borrower's knowledge and belief, no portion
of the Mortgaged Property is a wetland.

                  (c) Borrower shall promptly notify Lender of any change in the
nature or extent of any (i) Hazardous Materials,  maintained on, in or under the
Mortgaged Property or used or emitted in connection  therewith and (ii) wetlands
located on the Mortgaged  Property.  Borrower also has notified and shall notify
Lender  of  Borrower's  receipt  of  any  citations,  orders,  notices,  consent
agreements,  lawsuits, claims, or similar communication from a government agency
or third  party  alleging  a  violation  of any  Environmental  Laws  (including
allegations of a violation of the common law).

                  (d) Borrower shall indemnify and hold Lender harmless from and
against  any  and  all  damages,   penalties,   fines,  claims,   liens,  suits,
liabilities, costs (including clean-up costs), judgments and expenses (including
attorneys', consultants' or experts' fees and expenses) of every kind and nature
suffered by or  asserted  against  Lender as a direct or indirect  result of any
warranty, representation, or portion thereof, made by Borrower in this Paragraph
3.6,  being  false or untrue in any  respect  or as a result of any  requirement
under any  Environmental  Law, which  requires the  elimination,  treatment,  or
removal  of any  Hazardous  Materials.  Upon  demand by Lender,  Borrower  shall
diligently defend any claim arising under any Environmental  Laws or relating to
Hazardous  Materials which affects the Property or is made or commenced  against
Lender,  whether alone or together  with  Borrower or any other  person,  all at
Borrower's  own cost and  expense and by counsel to be approved by Lender in the
exercise of its reasonable judgment. In the alternative,  at any time Lender may
elect to conduct its own defense through  counsel  selected by Lender and at the
cost and expense of Borrower.

                  (e)  Lender  shall  have the  right at any time  prior to full
payment and  satisfaction  of the Note that Lender has a good faith  belief that
Hazardous  Materials are present on the Premises or that the Premises are not in
full  compliance  with  all  Environmental   Laws  to  arrange  for  or  conduct
environmental inspections of the Mortgaged Property (including,  but not limited
to, sampling of materials for laboratory analysis). The cost of such inspections
shall be borne as agreed  between  Borrower and Lender,  except that the cost of
any such  inspections  conducted in  contemplation of foreclosure or pursuant to
Paragraph 9.7 hereof shall be the obligation of Borrower.

                  (f)  Borrower's  obligations  under this Section 3.6 to Lender
shall not be limited to any extent by the terms of the Note,  and, as to any act
or occurrence  prior to payment in full and satisfaction of the Note which gives
rise to liability  hereunder,  shall continue,  survive and remain in full force
and effect notwithstanding payment in full and satisfaction of the Note and this
Security Deed or foreclosure  under this Security Deed, or delivery of a deed in
lieu of foreclosure.

                  3.7 No Default. Borrower is not in default in the performance,
observance or  fulfillment  of any of the  obligations,  covenants or conditions
contained in any agreement or instrument to which it is a party.

                                       9
<PAGE>

                  3.8 ERISA.  Borrower does not have a defined  benefit  pension
plan under the Employee  Retirement Income Security Act of 1974, as amended from
time to time, the unfunded  liabilities of which upon termination  could be held
to be a liability of Borrower by the Pension Benefit Guaranty Corporation.

                  3.9 Intentionally omitted.

                  3.10  Leases.  (a)  Borrower  has good title to the Leases and
Rents and all  requisite  right,  power and  authority  to assign the Leases and
Rents, and no other person, firm or corporation has any right, title or interest
therein;

                  (b)  Borrower  has  duly  and  punctually  performed,  all and
singular,  the terms,  covenants,  conditions  and  warranties  of the Leases on
Borrower's part to be kept,  observed and performed;  and the Tenants thereunder
are not in material  default of any of the terms or provisions of the respective
Leases;

                  (c) As of the date  hereof  the Leases  now in  existence  are
valid and  unmodified,  except as  indicated  herein,  and are in full force and
effect;  Borrower has not previously sold, assigned,  transferred,  mortgaged or
pledged the Leases or the Rents, whether now due or hereafter to become due; the
Rents now due, or to become due, for any periods  subsequent  to the date hereof
have not been collected more than one (1) month in advance,  and payment thereof
has not been anticipated more than one (1) month in advance, waived or released,
discounted,  setoff or otherwise discharged or compromised; and Borrower has not
received any funds or deposits  from any Tenant for which credit has not already
been made on account of accrued Rents.

                  (d) The form lease to be used by Borrower shall be approved by
Lender  in  writing  and such form  shall be used for all  Leases.  No  material
modification  of the form may be made to the form lease without  Lender's  prior
written approval.

                  3.11  Use.  Borrower  shall  use the  Mortgaged  Property  for
business purposes only. Borrower shall not use, maintain,  operate or occupy, or
allow the use, maintenance, operation or occupancy of, the Mortgaged Property in
any manner or for any purpose which (a) violates any Legal Requirement,  (b) may
be dangerous unless  safeguarded as required by law, (c) constitutes a public or
private nuisance,  or (d) makes void,  voidable or cancelable,  or increases the
premium of, any insurance then in force with respect thereto.

                  3.12  Alterations.  Borrower  shall not  commit or permit  any
waste of the  Mortgaged  Property  and shall not (subject to the  provisions  of
Paragraphs  5.6 and 5.8  hereinbelow),  without  the prior  written  consent  of
Lender,   which  consent  shall  not  be  unreasonably   withheld,   delayed  or
conditioned,  make or  permit to be made any  alterations  or  additions  to the
Mortgaged Property of a material nature.

                                       10
<PAGE>

                  3.13  Payment  and   Performance.   Borrower   shall  pay  the
Indebtedness, as and when called for in the Loan Documents, and on or before the
due dates  thereof,  and shall perform all of the  Obligations in full and on or
before the dates same are to be performed.

                  3.14 Existence. Borrower shall preserve and keep in full force
and effect its existence, rights, franchises and trade names.

                  3.15  Compliance  with  Legal  Requirements.   Borrower  shall
promptly and faithfully comply with,  conform to and obey all present and future
Legal   Requirements   including,   without   limitation,   the  Americans  with
Disabilities  Act of 1990, as amended (42 USC ss. 12101,  et seq.),  the Federal
Architectural  Barriers  Act, as amended (42 USC ss.  4151,  et seq.),  the Fair
Housing  Amendments  Act of 1988,  as amended (42 USC ss. 3601, et seq.) and the
Rehabilitation  Act of 1973,  as amended (29 USC ss.  794),  whether or not same
shall necessitate  structural changes in, improvements to, or interfere with the
use or enjoyment of the Mortgaged Property.

                  3.16 Prior  Security Deed Status.  Borrower  shall protect the
prior  security deed status of this  Security Deed and the other Loan  Documents
and shall not place,  or permit to be placed,  or  otherwise  convey,  mortgage,
hypothecate or encumber the Mortgaged  Property with, any other lien or security
deed or  interest  of any  nature  whatsoever,  regardless  of  whether  same is
allegedly or expressly  inferior to the title created by this Security  Deed. If
any such claim,  lien or security  interest  is asserted  against the  Mortgaged
Property,  Borrower shall  promptly,  and at its own cost and expense,  (a) give
Lender verbal notice  thereof  immediately,  together with written notice within
five (5) days from the date such claim,  lien or security  interest is asserted;
and (b) take  such  action  so as to cause  same to be  released  or  bonded  to
Lender's  satisfaction.  Such notice shall specify who is asserting  such claim,
lien or  security  interest  and  shall  detail  the  origin  and  nature of the
underlying facts giving rise to such asserted claim, lien or security interest.

                  3.17 Payment of  Impositions.  (a) Borrower shall duly pay and
discharge,  or cause to be paid and  discharged,  the Impositions not later than
the date the same shall become delinquent; provided, however, that Borrower may,
if, to the extent and in the manner permitted by law, (i) pay the Impositions in
installments if such  installment  payment would not create or permit the filing
of a lien  against the  Mortgaged  Property  and (ii) contest the payment of any
Impositions  in good  faith  and by  appropriate  proceedings  on the  following
conditions: (A) any such contests shall be prosecuted diligently and in a manner
not prejudicial to the rights,  liens and security title of Lender, (B) Borrower
shall  deposit funds with Lender or obtain a bond in form and substance and with
an issuing company  satisfactory to Lender in an amount  sufficient to cover any
amounts  which  may be  owing  in the  event  the  contest  may be  unsuccessful
(Borrower  shall  make such  deposit or obtain  such  bond,  as the case may be,
within five (5) days after demand  therefor  and, if made by payment of funds to
Lender,  the amount so  deposited  shall be  disbursed  in  accordance  with the
resolution of the contest  either to Borrower or the adverse  claimant),  (C) no
contest may be conducted and no payment may be delayed  beyond the date on which
the Mortgaged  Property could be sold for nonpayment and (D) Lender may pay over
to the taxing  authority  entitled  thereto  any or all of the

                                       11
<PAGE>

funds at any time when, in the opinion of Lender's  counsel,  the entitlement of
such authority to such funds is established.

                  (b) In the event of the passage of any federal, state or local
law,  order,  rule or regulation,  subsequent to the date hereof,  in any manner
changing or modifying  the laws now in force  governing the taxation of deeds to
secure debt, or security  agreements,  or assignments of leases or debts secured
thereby or the manner of collecting such taxes so as to adversely affect Lender,
Borrower  shall pay any such tax on or before the due date thereof.  If Borrower
fails to make such  prompt  payment or if, in the  opinion  of Lender,  any such
state, federal,  municipal, or other governmental law, order, rule or regulation
prohibits Borrower from making such payment or would penalize Lender if Borrower
makes such  payment or if, in the opinion of Lender,  the making of such payment
might result in the imposition of interest  beyond the maximum amount  permitted
by applicable  law, then the entire balance of the  Indebtedness  shall,  at the
option of Lender, become immediately due and payable.

                  3.18 Repair.  Borrower  shall keep the  Mortgaged  Property in
first  class  order and  condition  and shall  make all  repairs,  replacements,
renewals,  additions,  betterments,  improvements  and  alterations  thereof and
thereto,  interior and  exterior,  structural  and  nonstructural,  ordinary and
extraordinary,  foreseen  and  unforeseen,  which are  necessary  or  reasonably
appropriate to keep same in such order and condition.

                  3.19 Insurance. (a) Types of Insurance. Borrower shall procure
for,  deliver to, and maintain for the benefit of Lender during the term of this
Security Deed original paid up insurance policies or certified copies of paid up
insurance  policies (or, if there is blanket  coverage,  Lender shall require an
underlier  policy  with  the  Mortgaged  Property  identified  and  specifically
allocated  amounts  shown) in such amounts,  form and  substance,  and with such
expiration dates, as are acceptable to Lender,  and containing  non-contributory
standard  mortgagee  clauses  (naming "First Union National Bank, its successors
and/or  assigns"  as  first  mortgagee),  their  equivalent,  or a  satisfactory
mortgagee loss payable  endorsement in favor of Lender,  and being  addressed to
First Union National Bank,  Attention:  Insurance Group, P.O. Box 44215, FL0070,
Jacksonville,  Florida 32231,  providing the following types of insurance on the
Mortgaged Property:

                  (i)  Non-reporting  form "all risk"  Builder's  Risk Insurance
         (including   hazard   and   material   stockpile   clauses),    without
         co-insurance,  in an amount  equal to at least 100% of the  replacement
         cost  of the  Improvements.  The  policy  term  must  concur  with  the
         applicable  construction  period. In the event Lender provides any term
         financing  beyond the  construction  period,  the  policy  must then be
         converted to a Standard Fire  Insurance  Policy with Extended  Coverage
         Endorsement;

                  (ii)  Standard   Fire   Insurance   with   Extended   Coverage
         Endorsement   including  Vandalism  and  malicious  Mischief,   without
         co-insurance,  in an amount  equal to at least 100% of the  replacement
         cost of the Improvements;

                  (iii)  Coverage for the peril of Sprinkler Leakage;

                                       12
<PAGE>

                  (iv) Boiler and  Machinery  Insurance  to cover the sudden and
         accidental  breakdown  of  specific  types  of equipment as required by
         Lender;

                  (v) Rental Loss Insurance and Business Interruption  Insurance
         in an amount equal to the greater of (A) an amount  sufficient to cover
         debt service, real estate taxes, and insurance premiums for a period of
         at least  twelve (12)  months,  or (B) the rents and other  amounts due
         under all Leases for a period of at least twelve (12) months;

                  (vi) If any  Improvements  are or will be  located  in an area
         identified by the U.S.  Department of Housing and Urban  Development as
         an area having  "special flood  hazards",  flood insurance in an amount
         equal to the lesser of the maximum  principal amount of the Note or the
         maximum limit of coverage  available under the National Flood Insurance
         Act of 1968, the Flood Disaster Protection Act of 1973, and the Housing
         and Community Development Acts of 1974 and 1977, all as amended;

                  (vii) Single limit  comprehensive  general liability insurance
         in an amount  satisfactory  to Lender  against claims and liability for
         bodily  injury or property  damage to persons or property  occurring on
         the Mortgaged Property; and

                  (viii) Such other  insurance on the Mortgaged  Property or any
         replacements or substitutions  therefor and in such amounts as may from
         time to time be reasonably  required by Lender against other  insurable
         casualties  which at the time are commonly  insured against in the case
         of premises similarly  situated,  due regard being given to the type of
         the improvements, their construction,  location, use, and occupancy, or
         any replacements or substitutions therefor.

                  (b)  Insurance  Companies,  Form of  Policies.  All  insurance
policies  maintained  pursuant to this Paragraph 4.9 must be issued by insurance
companies and agencies licensed by the Georgia Insurance Commissioner,  having a
rating of A- or better  (Excellent  or Superior)  and Class IX or better in A.M.
Best's Insurance Reports,  and otherwise acceptable to Lender. All such policies
shall require not less than thirty (30) days' prior written  notice to Lender of
any  cancellation,  termination,  expiration  or  change  in  coverage.  Without
limiting  the  discretion  of Lender with  respect to required  endorsements  to
insurance  policies,  all such  policies for loss of or damage to the  Mortgaged
Property shall contain a standard mortgagee clause (without contribution) naming
Lender as mortgagee with loss proceeds payable to Lender notwithstanding (i) any
act,  failure to act or negligence of or violation of any warranty,  declaration
or  condition  contained  in any such  policy  by any  named  insured;  (ii) the
occupation or use of the Mortgaged  Property for purposes  more  hazardous  than
permitted by the terms of any such policy; (iii) any foreclosure or other action
by Lender under the Loan Documents;  or (iv) any change in title to or ownership
of the Mortgaged  Property or any portion thereof,  such proceeds to be held for
application as provided in the Loan Documents.

                                       13
<PAGE>

                  (c) Proof of Insurance. At least thirty (30) days prior to the
expiration  date of each  policy  maintained  pursuant to this  Paragraph  3.19,
Borrower shall deliver to Lender a renewal or replacement  thereof  satisfactory
to Lender.  Borrower shall deliver to Lender receipts evidencing the payment for
all such insurance  policies and renewals or  replacements.  The delivery of any
insurance  policies  hereunder shall  constitute a collateral  assignment of all
unearned premiums as further security hereunder.  In the event of foreclosure of
this Security Deed or any other  transfer of title to the Mortgaged  Property in
extinguishment of the Indebtedness,  all right,  title, and interest of Borrower
in and to all  insurance  policies  then in force with respect to the  Mortgaged
Property shall pass to the purchaser or Lender.

                  (d) Borrower's Statement of Insurance Carried.  Borrower shall
furnish  to  Lender  on or before  thirty  (30) days  after the close of each of
Borrower's  fiscal year, a statement  certified by Borrower or a duly authorized
officer of Borrower of the amounts of insurance  maintained in  compliance  with
this  Paragraph  3.19,  of the  risks  covered  by  such  insurance,  and of the
insurance company or companies which carry such insurance.

                  (e)  Payment of  Proceeds  to Lender ; Minor  Loss.  Lender is
hereby authorized and empowered, at its option, to adjust or compromise any loss
under any insurance policies  maintained  pursuant to this Paragraph 3.19 and to
collect and  receive the  proceeds  from any such policy or  policies;  provided
however,  in the event of a "Minor  Loss"  (being  defined as a loss equal to or
less than $25,000.00, if the loan secured hereby is $10,000,000.00 or less, or a
loss equal to or less than  $50,000.00,  if the loan secured hereby is more than
$10,000,000.00),  Borrower  shall give  Lender  written  notice of such loss but
shall  retain  all  rights to adjust and  compromise  such loss with  Borrower's
insurance company, to collect and receive the proceeds with respect thereto, and
to apply the same to the restoration of the Mortgaged Property.  Borrower hereby
authorizes  and directs each  insurance  company to make payment for all losses,
excepting only Minor Losses,  directly to Lender.  Except in the case of a minor
Loss, in the event any insurance  company fails to disburse  directly and solely
to Lender but  disburses  instead  either  solely to Borrower or to Borrower and
Lender  jointly,  Borrower  agrees  immediately  to endorse  and  transfer  such
proceeds to Lender.  Upon the failure of Borrower to endorse and  transfer  such
proceeds as aforesaid, Lender may execute such endorsements or transfers for and
in the name of Borrower,  and Borrower  hereby  irrevocably  appoints  Lender as
Borrower's agent and  attorney-in-fact  to do so, such appointment being coupled
with an interest and being irrevocable.

                  (f) Application of Proceeds.  In the case of any loss which is
not a Minor  Loss,  after  deducting  from said  insurance  proceeds  all of its
expenses incurred in the collection and  administration of such sums,  including
reasonable attorneys' fees actually incurred,  Lender may apply the net proceeds
or any part thereof, at its option:

                           (i) to the  payment of the  Indebtedness,  whether or
         not due and in whatever order Lender elects;

                           (ii) to the repair or  restoration  of the  Mortgaged
         Property; or

                                       14
<PAGE>

                           (iii) for any other  purposes  or  objects  for which
         Lender is entitled to advance funds under the Loan Documents;

all without  affecting the security title of this Security Deed, and any balance
of such moneys then remaining shall be paid to Borrower.

                  3.20 Restoration  Following Casualty. If any act or occurrence
of any  kind or  nature,  ordinary  or  extraordinary,  foreseen  or  unforeseen
(including  any casualty for which  insurance  was not obtained or  obtainable),
shall result in damage to, or loss or  destruction  of, the Mortgaged  Property,
Borrower shall give notice thereof to Lender  immediately  and, if so instructed
by Lender and provided that Lender  elects to apply the  insurance  proceeds (if
any) to the restoration,  repair or replacement of the Mortgaged Property, shall
promptly,  at  Borrower's  sole cost and expense and  regardless  of whether the
insurance  proceeds (if any) shall be sufficient  for the purpose,  commence and
continue  diligently to completion to restore,  repair,  replace and rebuild the
Mortgaged  Property in accordance with the  requirements of Lender and all Legal
Requirements  as  nearly as  possible  to its  value,  condition  and  character
immediately prior to such damage, loss or destruction.

                  3.21 Disbursement of Proceeds for Repairs.  If the proceeds of
the  insurance  described in Paragraph  3.19(f)  hereinabove  are to be used for
restoration,  repair or replacement  (hereinafter  referred to as the "Work") of
the Mortgaged  Property,  such proceeds  shall,  in the case of a Minor Loss, be
paid  directly to Borrower,  and in all other cases be paid to Lender to be paid
out by Lender  from  time to time to  Borrower  (or,  at the  option of  Lender,
jointly to Borrower and the persons furnishing labor and/or material incident to
the Work or directly to such persons) as the Work  progresses,  substantially in
accordance with the disbursement  procedures under the Loan Agreement as if such
proceeds were loan proceeds subject to the following conditions:

                  (a) Prior to the  commencement  thereof (other than Work to be
         performed on an emergency  basis to protect the  Mortgaged  Property or
         prevent interference therewith),

                           (i) Borrower shall retain, at Borrower's  expense, an
                  architect or engineer, approved by Lender, who shall supervise
                  the Work;

                           (ii)  Borrower  shall  have  prepared,  submitted  to
                  Lender and secured  Lender's written approval of the plans and
                  specifications for such Work; and

                           (iii)  Borrower  shall have obtained and submitted to
                  Lender all  licenses  and permits  necessary  to complete  the
                  Work;

                  (b) Borrower  shall submit  requests for payment no more often
         than once per month. Each request for payment by Borrower shall be made
         on ten  (10)  days'  prior  written  notice  to  Lender  and  shall  be
         accompanied  by a  certificate  to be  executed  by  the  architect  or
         engineer supervising the Work (if one is required pursuant to Paragraph
         3.21(a)

                                       15
<PAGE>

         hereinabove),   otherwise   by   Borrower  or  an  executive officer of
         Borrower,  stating,  among  such  other  matters  as may be  reasonably
         required by Lender, that:

                           (i)  all of the  Work  completed  has  been  done  in
                  compliance   with  the  approved   plans  and   specifications
                  therefor;

                           (ii)  the  sum   requested  is  justly   required  to
                  reimburse  Borrower  for payments by Borrower to, or is justly
                  due to, the contractor, subcontractors, materialmen, laborers,
                  engineers,  architects or other persons rendering  services or
                  materials  for the Work  (giving a brief  description  of such
                  services and materials);

                           (iii)  when  added  to all sums  previously  paid out
                  Borrower,  in connection with the Work, the sum requested does
                  not  exceed  the  value of the  Work  done to the date of such
                  certificate; and

                           (iv) the balance of the insurance  proceeds and other
                  funds deposited by Borrower with Lender in connection with the
                  Work will be  sufficient  to pay for the Work in full (giving,
                  in such  reasonable  detail  as the  Lender  may  require,  an
                  estimate of the cost of completion of the Work);

                  (c) Each  request  shall be  accompanied  by  waivers of lien,
         satisfactory in form and substance to Lender, covering that part of the
         Work for which payment or reimbursement  is being  requested,  and by a
         search  prepared by a title company or licensed  abstractor or by other
         evidence  satisfactory  to Lender  that  there has not been  filed with
         respect to the Mortgaged  Property any  mechanic's  lien or other lien,
         affidavit  or  instrument  asserting  any lien or any lien  rights with
         respect to the Mortgaged Property;

                  (d) Each  request  shall  be  accompanied  by such  supporting
         documentation,  certificates  and other  instruments  and  materials as
         Lender may require;

                  (e) No Event of Default shall have occurred  since the hazard,
         casualty  or  contingency  giving  rise  to  payment  of the  insurance
         proceeds;

                  (f) In the case of the  request  for the  final  disbursement,
         such  request  shall be  accompanied  by a copy of any  Certificate  of
         Occupancy or other  certificate  required by any Legal  Requirement  to
         render  occupancy  of the  damaged  portion of the  Mortgaged  Property
         lawful; and

                  (g) if, in  Lender's  judgment,  the amount of such  insurance
         proceeds   will  not  be   sufficient   to  complete  the  Work  (which
         determination  may be made  prior to or during the  performance  of the
         Work),  Borrower shall deposit with Lender,  immediately upon a request
         therefor,  an  amount  of money  which,  when  added to such  insurance
         proceeds,  will be sufficient,  in Lender's  judgment,  to complete the
         Work.

                                       16
<PAGE>

If, upon  completion of the Work, any portion of the insurance  proceeds has not
been  disbursed to Borrower (or one or more of the other  aforesaid  persons) in
connection therewith,  Lender may, at Lender's option,  disburse such balance to
Borrower or apply such balance toward the payment of the  Indebtedness,  whether
or not then due. Nothing herein shall be interpreted to prohibit Lender from (y)
withholding  from each such  disbursement  ten  percent  (10%) (or such  greater
amount,  if  permitted  or  required  by any Legal  Requirement)  of the  amount
otherwise herein provided to be disbursed,  and from continuing to withhold such
sum,  until the time  permitted  for  perfecting  liens  against  the  Mortgaged
Property has expired (or such longer  period of time as permitted or required by
any Legal Requirement),  at which time the amount withheld shall be disbursed to
Borrower (or to Borrower and any person or persons  furnishing labor or material
for the Work or directly to such persons), or (z) applying at any time the whole
or any part of such insurance proceeds to the curing of any Event of Default.

                  3.22 Inspection.  Borrower shall permit Lender and its agents,
representatives   and  employees  to  inspect  the  Mortgaged  Property  at  all
reasonable times.

                  3.23 Hold Harmless. Borrower shall defend, at its own cost and
expense, and hold Lender harmless from any action, proceeding or claim affecting
the  Mortgaged  Property  or the Loan  Documents,  and all  costs  and  expenses
incurred  by Lender  in  protecting  its  interests  hereunder  in such an event
(including all court costs and  attorneys'  fees) shall be borne by Borrower and
secured hereby.

                  3.24  Books and  Records.  Borrower  shall  maintain  full and
accurate books of account and other records  reflecting its financial  condition
and the results of its operations of the Mortgaged  Property in accordance  with
generally accepted accounting principles consistently applied and shall furnish,
or cause to be furnished, to Lender, the following information and reports:

                  (a)      As to Borrower:

                           (i)  within  120 days  after the close of its  fiscal
                  year,  current audited  financial  statements  (annual balance
                  sheet and a profit/loss  statement) which must be certified to
                  First Union National Bank;

                           (ii)  within 45 days  after the close of each  fiscal
                  quarter a copy of its current financial statements as prepared
                  for such reporting period by its General Partner, signed by an
                  authorized  officer of General  Partner and  certified by such
                  officer to be true, correct and complete;

                           (iii)  within 90 days  after the close of its  fiscal
                  year, a statement  disclosing  all  contingent  liabilities if
                  these are not addressed in the audited financial statement;

                           (iv) such interim  statements  as may  reasonably  be
                  required by Lender from time to time; and

                                       17
<PAGE>

                           (v)  at  the  request  of  Lender,  all  registration
                  statements  and reports filed by the General  Partner with the
                  Securities and Exchange  Commission,  including Forms 10-K and
                  10-Q (or their equivalents).

         (c)  Borrower,  at its cost and  expense,  shall  quarterly  furnish to
Lender an  income  and  expense  statement  of the  operation  of the  Mortgaged
Property within 45 days after the close of each fiscal  quarter.  Each statement
shall show the total minimum annual rent,  total gross receipts from  operations
and total  expenses in detail  satisfactory  to the Lender.  Borrower shall also
furnish  such  interim  statements  to Lender as may be  reasonably  required by
Lender from time to time.

         (d) Borrower shall furnish to the Lender then-current signed rent rolls
or lease digests  quarterly  during the term of Note in a form  satisfactory  to
Lender, no later than 30 days after the close of each fiscal quarter,  certified
by  Borrower to be true,  correct  and  complete,  if the Lender  requests  such
information.

         (e)  Borrower  shall  advise  Lender of  Borrower's  respective  fiscal
year-end  dates and shall  notify  Lender,  in  writing,  of any  change in such
year-end dates.

At Lender's option, the financial  statements  required to be delivered pursuant
to this Paragraph 3.24 shall be certified by an officer of General  Partner.  At
any time and from time to time,  Borrower  shall  deliver  to Lender  such other
financial data as Lender shall reasonably request with respect to the ownership,
maintenance,  use and operation of the Mortgaged Property, and Lender shall have
the right, at reasonable times and upon reasonable notice, to audit, examine and
make copies or extracts of Borrower's  books of account and records  relating to
the Mortgaged  Property,  all of which shall be maintained and made available to
Lender and Lender's  representatives  for such purpose at the address  specified
herein for  Borrower  or at such other  location  as Lender  may  approve.  Upon
Lender's request,  Borrower shall also furnish Lender with convenient facilities
necessary for an audit of such statements.  If Borrower is a partnership,  joint
venture,  trust or other type of business  association,  Borrower  shall provide
Lender with any and all financial  statements  and other  documents and make any
and all  disclosures  to Lender with  respect to any of the  parties  comprising
Borrower as Borrower is required to provide and make, and in the manner required
to be provided  and made,  with respect to Borrower  pursuant to this  Paragraph
3.24.

                  3.25 Tax and Insurance  Escrow.  At Lender's  option after any
Event of Default or Default  Condition,  in order to implement the provisions of
Paragraphs  3.17 and 3.19  hereinabove,  Borrower  shall pay to Lender  monthly,
annually,  or as otherwise directed by Lender, an amount ("Escrowed Sums") equal
to the  sum  of (a)  the  annual  Impositions  (estimated  by  Lender,  wherever
necessary)  to become  due for the tax year  during  which  such  payment  is so
directed and (b) the  insurance  premiums for the same year for those  insurance
policies  as are  required  hereunder.  If Lender  determines  that any  amounts
theretofore  paid by Borrower are  insufficient  for the payment in full of such
Impositions  and  insurance  premiums,  Lender  shall  notify  Borrower  of  the
increased  amounts  required to provide a sufficient  fund,  whereupon  Borrower
shall pay to Lender within thirty (30)

                                       18
<PAGE>

days thereafter the additional amount as stated in Lender's notice. The Escrowed
Sums  may be  held  by  Lender  in  non-interest  bearing  accounts  and  may be
commingled  with Lender's  other funds.  Upon  assignment of this Security Deed,
Lender shall have the right to pay over the balance of the Escrowed Sums then in
its possession to its assignee whereupon the Lender shall then become completely
released from all liability with respect thereto.  Within  ninety-five (95) days
following the full payment of the Indebtedness (other than a full payment of the
Indebtedness  as a  consequence  of a  foreclosure  or  conveyance  in  lieu  of
foreclosure  of the liens and security title  securing the  Indebtedness)  or at
such earlier time as Lender may elect,  the balance of the Escrowed  Sums in its
possession  shall be paid over to  Borrower  and no other  party  shall have any
right or claim  thereto.  If no Event of  Default  shall  have  occurred  and be
continuing  hereunder,  the  Escrowed  Sums shall,  at the option of Lender,  be
repaid to Borrower in sufficient  time to allow  Borrower to satisfy  Borrower's
obligations  under the Loan  Documents to pay the  Impositions  and the required
insurance  premiums or be paid  directly to the  Governmental  Authority and the
insurance company entitled  thereto.  If an Event of Default shall have occurred
and be continuing hereunder, however, Lender shall have the additional option of
crediting the full amount of the Escrowed Sums against the Indebtedness.

                  3.26 Notice of Default.  Borrower  shall notify  Lender of (a)
any condition that would  constitute a default or Event of Default  hereunder or
under any other Loan Document,  (b) any litigation or proceeding that is brought
against  Borrower  or the  Mortgaged  Property  and that  has a stated  claim of
$100,000.00  or more,  and (c) any  material  adverse  change  in the  business,
properties or condition (financial or otherwise) of Borrower.

                  3.27 Estoppel Certificate.  Borrower shall, from time to time,
within ten (10) days after Lender's request,  furnish Lender or any other person
or  entity  designated  by  Lender,  an  affidavit  or  certificate  in  a  form
satisfactory to Lender which shall:

                           (i)      indicate  the  unpaid  principal balance and
                                    accrued interest on the Note;

                           (ii)     acknowledge  either that  Borrower is not in
                                    default of the terms and  conditions  of the
                                    Note  and  the  Loan  Documents  or  that  a
                                    default exists,  in which case, any defaults
                                    shall be described in detail; and

                           (iii)    state that Borrower has no defense, right of
                                    set-off or  counterclaim  to the  payment of
                                    the  Indebtedness,  or any part thereof,  or
                                    the   performance   of  any  obligation  (or
                                    describing  any such  defense,  set-off,  or
                                    counterclaim).

Lender and any  purchaser  or  assignee  of the Note and Loan  Documents  or any
participating  interest therein may rely on the  representations of the Borrower
contained in such affidavit or certificate.

ARTICLE IV.  CONDEMNATION

                                       19
<PAGE>

                  4.1  Condemnation.  (a) If all or any portion of the Mortgaged
Property is taken by condemnation  or eminent domain powers of any  Governmental
Authority (or any transfer by private sale in lieu thereof),  either temporarily
or  permanently,  then the  award  and  other  proceeds  payable  in  connection
therewith  shall be paid to Lender and  applied  to payment of the  Indebtedness
after  deducting any costs  incurred by Lender in connection  therewith.  To the
extent  that  Lender  determines  that the  remaining  portion of the  Mortgaged
Property is adequate to secure the  Indebtedness,  the proceeds will be held and
applied as provided on the conditions set forth in subparagraph (d) below.

                  (b)  Participation  in  Proceedings.  Borrower  shall promptly
notify Lender of any actual or  threatened  initiation  of any  condemnation  or
eminent  domain  proceeding as to any part of the  Mortgaged  Property and shall
deliver to Lender  copies of any and all papers served or received in connection
with such  proceedings,  and  Lender  shall have the right,  at its  option,  to
participate in such  proceedings at the expense of Borrower  (including  without
limitation the Lender's attorneys' fees).  Borrower shall execute such documents
and take such other steps as required to permit such participation.

                  (c) Right to Settle  Claims.  Lender is hereby  authorized  to
adjust,  compromise  and collect any  condemnation  or eminent  domain  award or
settle a claim for damages and to apply the same to the Indebtedness, subject to
the provisions of subparagraph (d) below.

                  (d) Use of  Proceeds.  Borrower  hereby  assigns to Lender any
proceeds or awards which may become due by reason of any  condemnation  or other
taking for public use of the whole or any part of the Mortgaged  Property or any
rights appurtenant thereto, and Lender is authorized,  at its option, to collect
and receive all such compensation, awards or damages and to give proper receipts
and  acquittances  therefor without any obligation to question the amount of any
such  compensation,  awards or damages.  The  proceeds of any such  condemnation
award  or  proceeds  or  any  part  thereof  may be  applied  by  Lender  to the
Indebtedness,  whether or not due and in such order as Lender  elects;  provided
that subject to the provisions of subparagraph (a) above, such proceeds shall be
applied to  restoration  of the property  taken if the following  conditions are
met:

                  (i) there exists no Event of Default or any event or condition
         which,  upon the giving of notice or the passage of time or both, would
         constitute an Event of Default;

                  (ii) Borrower presents  sufficient evidence to the Lender that
         (A) there are sufficient funds from the condemnation  award or proceeds
         and from equity funds, if needed,  to completely  restore the Mortgaged
         Property to an architectural whole as well as to maintain relevant debt
         service coverages and other operating expenses, and (B) the loss of the
         property taken will. not materially diminish the value of the Mortgaged
         Property;

                  (iii) all  parties  having  existing  or  expected  possessory
         interests  in the  Mortgaged  Property  (excluding  resident  apartment
         tenants) agree in a manner satisfactory to Lender that

                                       20
<PAGE>

         they will  continue or extend their  interests  and  arrangements  for
         the  contract terms then in effect following the restoration;

                  (iv) all parties  having  operating,  management  or franchise
         interests in, or arrangements concerning,  the Mortgaged Property agree
         that  they will  continue  their  interests  and  arrangements  for the
         contract terms then in effect following the restoration;

                  (v) all parties having  commitments to provide  financing with
         respect to all or any part of the Mortgaged  Property,  to purchase all
         or any part of Borrower's  interest in all or any part of the Mortgaged
         Property,  or to purchase all or any part of the Note agree in a manner
         satisfactory  to Lender that their  commitments  will  continue in full
         force and effect and, if necessary,  the expiration of such commitments
         will be extended by the time necessary to complete the restoration;

                  (vi) Borrower Presents  sufficient evidence to Lender that the
         Mortgaged Property will be restored to an architectural  whole prior to
         the maturity of the Note;

                  (vii) Lender will not incur any  liability to any other person
         as a result of such use or release of proceeds;

Lender shall hold and disburse the condemnation award or proceeds as restoration
progresses  subject  to the  conditions  of  Paragraph  3.21  hereof  as if such
proceeds were insurance proceeds.

                  (e)  Further  Assignment.  Borrower  agrees  to  execute  such
further  assignments of any compensation,  awards,  damages,  claims,  rights of
action and proceeds as Lender may require. If, prior to the receipt by Lender of
such  award  or  proceeds,  the  Mortgaged  Property  shall  have  been  bid  on
foreclosure of this Security  Deed,  Lender shall have the right to receive such
award or proceeds to the extent of any unpaid Indebtedness  following such sale,
with legal  interest  thereon,  whether  or not a  deficiency  judgment  on this
Security Deed or the Note shall have been sought or recovered, and to the extent
of attorneys'  fees,  costs and  disbursements  incurred by Lender in connection
with the collection of such award or proceeds.  If Borrower fails to assign such
compensation,  awards,  damages,  claims,  rights of  action,  and  proceeds  as
aforesaid, Lender may execute such endorsements or transfers for and in the name
of  Borrower  and  Borrower  hereby  appoints  Lender  as  Borrower's  agent and
attorney-in-fact  so to do, such appointment  being coupled with an interest and
being irrevocable.

                  4.2  Release of Property  from  Security  Deed.  If all or any
portion of the Mortgaged Property is taken by condemnation or eminent domain (or
any transfer by private sale in lieu thereof),  and the award and other proceeds
payable in connection  therewith are paid to Lender as required by Paragraph 4.1
above, then, at the request of Borrower, Lender will release said portion of the
Mortgaged  Property  from  this  Security  Deed  upon  satisfaction  of,  and in
accordance with, the following requirements and procedures:

                                       21
<PAGE>

                  (a)  Borrower's  request for a release shall be accompanied by
         (i) a survey of the portion of the  Mortgaged  Property to be released,
         (ii) a  metes  and  bounds  legal  description  of the  portion  of the
         Mortgaged  Property to be released,  (iii) the quitclaim  deed or other
         instrument  to be used to effect  such  release,  and (iv)  such  other
         documents and information as Lender may reasonably  request in order to
         process and effect such release,  all in form and substance  acceptable
         to Lender.

                  (b) All costs and  expenses  of  Lender  associated  with such
         release (including, without limitation,  attorneys' fees) shall be paid
         by Borrower.

The  execution  and  delivery of any such  release  shall not affect  Borrower's
Obligations hereunder or under the other Loan Documents.

ARTICLE V.  EVENTS OF DEFAULT

         The term  "Event of  Default,"  as used  herein  and in the other  Loan
Documents,  shall mean the occurrence or happening, at any time and from time to
time, of any one or more of the following:

                  5.1  Failure in Payment of  Indebtedness.  If  Borrower  shall
fail,  refuse or  neglect to pay,  in full,  any  installment  or portion of the
Indebtedness within ten (10) days after written notice from Lender that the same
is due and  payable,  whether  at the due date  thereof  stipulated  in the Loan
Documents,  or at a date fixed for prepayment,  or by acceleration or otherwise;
provided,  however,  that if such  installment  or portion  of the  Indebtedness
becomes due and payable as a result of Lender's accelerating the maturity of the
Indebtedness in accordance with the Loan Documents,  the ten (10) day notice and
cure period for payment set forth in this  Paragraph  5.1 shall not apply to the
accelerated due date.

                  5.2 Failure in Performance of  Obligations.  If Borrower shall
fail,  refuse or neglect to perform  and  discharge  fully and timely any of the
Obligations  as and when called for, and such failure,  refusal or neglect shall
either be incurable or, if curable,  shall remain uncured for a period of thirty
(30) days after the date of written  notice  thereof  from  Lender to  Borrower;
provided,  however,  that if such  default is curable  but  requires  work to be
performed,  acts to be done or conditions to be remedied which, by their nature,
cannot be  performed,  done or remedied,  as the case may be, within such thirty
(30) day period,  then  Borrower  shall  submit a plan to Lender for the cure of
such default,  and if Lender  approves such plan (which approval may be granted,
withheld or conditioned in Lender's sole and absolute  discretion),  no Event of
Default shall be deemed to have occurred if Borrower  commences such cure within
such  thirty  (30)  day  period  and  thereafter   diligently  and  continuously
prosecutes  the same to  completion  in  accordance  with the plan  approved  by
Lender.

                  5.3 False Representation.  If any representation,  warranty or
statement  made by  Borrower  or  others  in,  under  or  pursuant  to the  Loan
Commitment (as that term is defined in the Loan

                                       22
<PAGE>

Agreement),  the Loan Documents or any  affidavit,  instrument or other document
executed or delivered in connection  with the Loan  Documents  shall be false or
misleading  in any material  respect as of the date hereof or shall become so at
any time prior to the repayment in full of the Indebtedness.

                  5.4  Voluntary  Bankruptcy.  If Borrower  or, if Borrower is a
partnership,  joint venture, trust or other type of business association, if any
of the parties  comprising  Borrower  shall (a)  voluntarily  be  adjudicated as
bankrupt or insolvent,  (b) file any petition or commence any case or proceeding
under any  provision  or chapter  of the  Federal  Bankruptcy  Code or any other
federal  or  state  law  relating  to  insolvency,  bankruptcy,  rehabilitation,
liquidation or reorganization,  (c) make a general assignment for the benefit of
its creditors, (d) have an order for relief entered against it under the Federal
Bankruptcy  code, (e) convene a meeting of its creditors,  or any class thereof,
for the purpose of effecting a moratorium  upon or extension or  composition  of
its debts,  (f) fail to pay its debts as they mature,  (g) admit in writing that
it is generally  not able to pay its debts as they mature or  generally  not pay
its debts as they mature, or (h) become insolvent.

                  5.5 Involuntary Bankruptcy.  If (a) a petition is filed or any
case or  proceeding  described  in  Paragraph  5.4  above is  commenced  against
Borrower,  or, if Borrower is a partnership,  joint venture, trust or other type
of  business  association,  against any of the  parties  comprising  Borrower or
against the assets of any such persons or entities, unless such petition and the
case or proceeding  initiated  thereby is dismissed  within sixty (60) days from
the date of the filing,  (b) an answer is filed by Borrower or, if Borrower is a
partnership,  joint venture, trust or other type of business association, by any
of the  parties  comprising  Borrower,  admitting  the  allegations  of any such
petition, or (c) a court of competent  jurisdiction enters an order, judgment or
decree  appointing,  without  the  consent  of  Borrower  or, if  Borrower  is a
partnership,  joint venture, trust or other type of business association, of any
of the parties comprising Borrower, a custodian,  trustee, agent or receiver for
it, or for all or any part of its property, or authorizing the taking possession
by a custodian, trustee, agent or receiver of such entity, or all or any part of
its property unless such  appointment is vacated or dismissed or such possession
is  terminated  within  sixty  (60)  days from the date of such  appointment  or
commencement  of such  possession,  but not later than five (5) days  before the
proposed sale of any assets of Borrower or, if Borrower is a partnership,  joint
venture,  trust or other business association,  of any of the parties comprising
Borrower,  by such  custodian,  trustee,  agent or  receiver,  other than in the
ordinary course of the business of Borrower.

                  5.6 Intentionally Omitted

                  5.7  Dissolution,  Change or Encumbrance of Ownership.  (a) If
Borrower or if any of the parties  directly or  indirectly  comprising  Borrower
shall die,  dissolve,  terminate or liquidate,  or merge with or be consolidated
into any other  entity,  or shall  hypothecate,  pledge,  mortgage or  otherwise
encumber  all or any part of the  beneficial  ownership  interest in Borrower or
shall attempt to do any of the same;  or (b) if Borrower  shall amend or modify,
in a manner which would adversely affect Lender,  its articles of incorporation,
bylaws,  partnership  agreement,  certificate of partnership or other charter or
enabling  documents,  and Lender has not given its prior written consent to such

                                       23
<PAGE>

amendments or modifications  which approval shall not be unreasonably  withheld,
delayed or conditioned.  Lender  acknowledges  that (i) the limited  partners of
Borrower and the  shareholders  of general  partner of Borrower,  Roberts Realty
Investors, Inc., a real estate investment trust (hereinafter "RRI") may, without
Lender's consent,  transfer and assign limited partnership units in Borrower and
shares in RRI in the ordinary  course of business;  and (ii) Borrower or RRI may
complete any merger or consolidation  involving Borrower or RRI when Borrower or
RRI is the  surviving  entity;  provided,  however,  that  nothing  herein shall
release Borrower or RRI from its obligations under the Loan Documents.

                  5.8 Disposition of Mortgaged Property and Beneficial  Interest
in Borrower. If Borrower sells, leases, exchanges,  assigns, conveys,  transfers
or otherwise disposes of (herein  collectively  called  "Disposition") all or if
any portion of the  Mortgaged  Property (or any interest  therein) or all or any
part  of the  beneficial  ownership  interest  in  Borrower  (if  Borrower  is a
corporation,  partnership,  joint  venture,  trust  or  other  type of  business
association  or legal  entity) is sold,  transferred  or otherwise  disposed of,
without the prior written consent of Lender.  Lender  acknowledges  that (i) the
limited  partners of Borrower and the  shareholders of RRI may, without Lender's
consent, transfer and assign limited partnership units in Borrower and shares in
RRI in the ordinary  course of business;  and (ii)  Borrower or RRI may complete
any merger or  consolidation  involving  Borrower or RRI when Borrower or RRI is
the  surviving  entity;  provided,  however,  that nothing  herein shall release
Borrower or RRI from its obligations under the Loan Documents.

                  5.9 Encumbrance  Upon Mortgaged  Property.  If Borrower shall,
without  the prior  written  consent  of Lender,  create,  place or permit to be
created or  placed,  or through  any act or  failure  to act,  acquiesce  in the
placing  of, or allow to remain,  any  mortgage,  security  deed,  pledge,  lien
(statutory,   constitutional  or  contractual),   security  title  or  interest,
encumbrance  or  charge  on,  or  conditional  sale  or  other  title  retention
agreement,  regardless of whether same are expressly subordinate to the liens of
the Loan Documents,  with respect to the Mortgaged  Property,  the "Construction
Contracts"  or the "Plans"  (as those terms are defined in the Loan  Agreement),
other than the Permitted Encumbrances.

                  5.10 Intentionally omitted

                  5.11  Foreclosure of Other Liens. If the holder of any lien or
security  title,  interest or deed on the  Mortgaged  Property  (without  hereby
implying Lender's consent to the existence,  placing,  creating or permitting of
any such lien or security  title,  interest or deed)  institutes  foreclosure or
other proceedings for the enforcement of its remedies thereunder.

                  5.12 Default Under Other Loan Documents. In the event an Event
of Default shall occur under any other Loan Document  (even though not listed as
an Event of Default hereunder and the applicable cure period shall expire).

                  5.13 Default Under Other Loans. If Borrower should default in
the payment of any other loan from Lender to Borrower,  whether now or hereafter
existing, or fail to perform any of its obligations in connection therewith.

                                       24
<PAGE>

                  5.14 Failure of Other  Collateral.  If Borrower  shall fail to
deliver or maintain any collateral as required by the Loan Documents.

ARTICLE VI.  LENDER'S REMEDIES

                  6.1 Remedies.  If an Event of Default shall occur, Lender may,
at its sole election,  exercise any or all of the following rights, remedies and
recourses:

                  (a) Acceleration: Declare the then unpaid principal balance on
the Note,  the accrued  interest and any other accrued but unpaid portion of the
Indebtedness  to  be  immediately  due  and  payable,  without  further  notice,
presentment,  protest,  demand or action of any nature whatsoever (each of which
hereby is  expressly  waived  by  Borrower),  whereupon  the same  shall  become
immediately due and payable, time being of the essence in this Security Deed.

                  (b) Termination of License.  (i) Terminate the License granted
to  Borrower  in  Paragraph  8.3  hereof and  exercise  the  rights,  powers and
privileges  of  landlord  under the  Leases,  and then and  thereafter,  with or
without  taking  possession of the Mortgaged  Property,  in Borrower's own name,
demand,  collect,  receive,  sue for,  attach  and levy on the Rents  (including
demand for Rents  collected for the period in which the demand  occurs) and give
proper receipts, releases and acquittances therefor.

                           (ii)  Deliver a  written  demand  to any  Tenant  for
payment  of  Rents,  which  demand  shall be  sufficient  evidence  of each such
Tenant's obligation and authority to make all future payments of Rents to Lender
without the  necessity  for further  consent by the  Borrower.  Borrower  hereby
indemnifies  and agrees to hold each Tenant free and  harmless  from and against
all liability, loss, cost, damage or expense suffered or incurred by such Tenant
by reason of its compliance  with any demand for payment of Rents made by Lender
contemplated  by the preceding  sentence.  Borrower,  for itself and its agents,
covenants and agrees not to  countermand  any such written demand to Tenants for
payment of Rents.

                  (c) Entry on  Mortgaged  Property:  (i) Demand  that  Borrower
shall  forthwith  surrender  to Lender the actual  possession  of the  Mortgaged
Property,  and to the extent  permitted by law, enter and take possession of all
of  the  Mortgaged  Property  without  the  appointment  of a  receiver,  or  an
application  therefor,  and exclude Borrower and its agents and employees wholly
therefrom, and have joint access with Borrower to the books, papers and accounts
of Borrower.

                           (ii)  If  Borrower  shall  for  any  reason  fail  to
surrender  or deliver  the  Mortgaged  Property or any part  thereof  after such
demand by Lender,  Lender may seek a judgment or decree  conferring  upon Lender
the right to immediate  possession  or requiring  Borrower to deliver  immediate
possession of the Mortgaged Property to Lender, and Borrower hereby specifically
covenants and agrees that Borrower shall not oppose, contest or otherwise hinder
or delay Lender

                                       25
<PAGE>

in any  action  or  proceeding  by Lender to obtain  such  judgment  or  decree.
Borrower  shall pay to Lender,  upon  demand,  all  expenses of  obtaining  such
judgment or decree,  including reasonable  compensation to Lender, its attorneys
and agents,  and all such expenses and compensation  shall,  until paid,  become
part of the Indebtedness and shall be secured by this Security Deed.

                           (iii)  Upon  every  such  entering  upon or taking of
possession,  Lender  may hold,  store,  use,  operate,  manage and  control  the
Mortgaged Property and conduct the business thereof, and, from time to time, (A)
make all  necessary and proper  maintenance,  repairs,  renewals,  replacements,
additions,  betterments  and  improvements  thereto and thereon and  purchase or
otherwise acquire additional fixtures, personalty and other property, (B) insure
or keep the  Mortgaged  Property  insured,  (C) manage and operate the Mortgaged
Property  and  exercise all the rights and powers of Borrower to the same extent
Borrower  could in its own name or otherwise  act with respect to the same,  and
(D) enter into any and all agreements  with respect to the exercise by others of
any of the powers herein granted to Lender,  all as Lender from time to time may
determine  to be in its best  interest.  Anything in this  Security  Deed to the
contrary notwithstanding,  Lender shall not be obligated to discharge or perform
the duties of the landlord to any Tenant or incur any liability as the result of
any exercise by Lender of its rights under this Security  Deed, and Lender shall
be liable to account only for the Rents actually received by Lender.

                           (iv)  Make,   modify,   enforce,   cancel  or  accept
surrender of any Lease, remove and evict any Tenant,  increase or decrease Rents
under any Lease,  appear in and defend any action or  proceeding  purporting  to
affect  the  Mortgaged  Property,  and  perform  and  discharge  each and  every
obligation,  covenant and agreement of Borrower contained in any Lease,  whether
or not Lender takes possession of the Mortgaged Property.

                           (v) Neither the entering  upon and taking  possession
of the Mortgaged  Property,  nor the collection of any Rents and the application
thereof as aforesaid,  shall cure or waive any Event of Default  theretofore  or
thereafter  occurring,  or affect any notice of an Event of Default hereunder or
invalidate any act done pursuant to any such notice.  Lender shall not be liable
to Borrower,  anyone  claiming  under or through  Borrower,  or anyone having an
interest in the Mortgaged  Property by reason of anything done or left undone by
Lender  hereunder.  Nothing  contained in this  Paragraph  6.1(c) shall  require
Lender to incur any  expense or do any act. If the Rents are not  sufficient  to
meet the costs of taking control of and managing the Mortgaged  Property  and/or
collecting  the Rents,  any funds  expended  by Lender for such  purposes  shall
become  Indebtedness  of Borrower to Lender secured by this Security Deed.  Such
amounts,  together  with  interest  at the  Default  Rate  under  the  Note  and
attorneys'   fees,  if  applicable,   shall  be  immediately  due  and  payable.
Notwithstanding Lender's continuance in possession or receipt and application of
Rents,  Lender  shall be entitled to exercise  every right  provided for in this
Security Deed or by law upon or after the occurrence of an Event of Default. Any
of the actions  referred to in this Paragraph 6. 1 (c) may be taken by Lender at
such time as Lender  is so  entitled,  without  regard  to the  adequacy  of any
security for the Indebtedness hereby secured.

                                       26
<PAGE>

                           (vi) In the event  that all  interest,  deposits  and
principal  installments  and other sums due under any of the  terms,  covenants,
conditions  and  agreements of this  Security Deed and the other Loan  Documents
shall be paid and all Events of Default shall be cured,  and as a result thereof
Lender  surrenders  possession of the Mortgaged  Property to Borrower,  the same
right herein given to Lender shall continue to exist if any subsequent Events of
Default shall occur.

                  (d) Foreclosure  and Sale: Sell the Mortgaged  Property or any
part thereof at one or more public sales  before the door of the  courthouse  of
the  county in which  the  Property  or any part of the  Property  is  situated,
without notice except as required or set forth herein, to the highest bidder for
cash,  in order to pay the  Indebtedness,  and all  expenses  of sale and of all
proceedings in connection therewith, including reasonable attorneys' fees, after
advertising  the  time,  place  and terms of sale once a week for four (4) weeks
immediately  preceding such sale (but without regard to the number of days) in a
newspaper in which  Sheriff's  sales are advertised in said county.  At any such
public sale,  Lender may execute and deliver to the  purchaser or  purchasers at
such sale or sales a  conveyance  of the  Mortgaged  Property or any part of the
Mortgaged Property in fee simple, with full warranties of title, and to this end
Borrower hereby  constitutes and appoints Lender the agent and  attorney-in-fact
of Borrower to make such sale and conveyance,  and thereby to divest Borrower of
all  right,  title and equity  that  Borrower  may have in and to the  Mortgaged
Property  and to vest the same in the  purchaser or  purchasers  at such sale or
sales; and all the acts and doings of said agent and attorney-in-fact are hereby
ratified and confirmed and any recitals in said  conveyance or conveyances as to
facts  essential to a valid sale shall be binding upon  Borrower.  The aforesaid
power of sale and agency  hereby  granted are coupled  with an interest  and are
irrevocable  by death or  otherwise,  are  granted  as  cumulative  of the other
remedies provided hereby or by law for collection of the Indebtedness, and shall
not be exhausted by one exercise thereof but may be exercised until full payment
of all of the Indebtedness. In the event of any sale under this Security Deed by
virtue of the exercise of the powers herein granted, or pursuant to any order in
any judicial proceedings or otherwise,  the Mortgaged Property may be sold as an
entirety  or in  separate  parcels  and in such manner or order as Lender in its
sole  discretion  may  elect,  and if  Lender  so  elects,  Lender  may sell the
Personalty  covered by this Security  Deed at one or more separate  sales in any
manner permitted by the Uniform Commercial Code of the State of Georgia, and one
or more  exercises of the powers herein granted shall not extinguish nor exhaust
such powers,  until the entire Mortgaged Property is sold or the Indebtedness is
paid in full. If the  Indebtedness  is now or hereafter  further  secured by any
chattel mortgages, pledges, contracts of guaranty, assignments of lease or other
security  instruments,  Lender may at its option  exhaust the  remedies  granted
under any of said security  instruments,  either  concurrently or independently,
and in such order as Lender may determine.

                  Lender,  may,  in  addition  to and not in  abrogation  of the
rights covered under the  immediately  preceding  subparagraph,  or elsewhere in
this Article VI,  either with or without  entry or taking  possession  as herein
provided or otherwise,  proceed by a suit or suits in law or in equity or by any
other appropriate proceeding or remedy (i) to enforce payment of the Note or the
performance of any term, covenant,  condition or agreement of this Security Deed
or any other right and (ii) to pursue any other  remedy  available to it, all as
Lender at its sole discretion shall elect.

                                       27
<PAGE>

                  (e) Receiver: Lender, upon application to a court of competent
jurisdiction,  shall be entitled as a matter of strict right, without notice and
without regard to the adequacy or value of any security for the  Indebtedness or
the  solvency  of any  party  bound for its  payment,  to the  appointment  of a
receiver to take  possession  of and to operate the  Mortgaged  Property  and to
collect and apply the incomes,  rents, issues, profits and revenues thereof. The
receiver shall have all of the rights and powers permitted under the laws of the
State of  Georgia.  Borrower  shall  pay to Lender  upon  demand  all  expenses,
including  receiver's fees,  attorneys'  fees,  costs and agent's  compensation,
incurred  pursuant to the  provisions  of this  Paragraph  6.1(e),  and any such
amounts paid by Lender shall be added to the  Indebtedness  and shall be secured
by this Security Deed.

                  (f) Performance by Lender:  Pay,  perform or observe any term,
covenant or condition of this Security  Deed not paid,  performed or observed by
Borrower,  and all  payments  made or costs or  expenses  incurred  by Lender in
connection  therewith  shall be  secured  hereby and shall be,  without  demand,
immediately  repaid by Borrower to Lender with  interest  thereon at the Default
Rate  provided in the Note.  Lender shall be the sole judge of the necessity for
any such  actions and of the amounts to be paid.  Lender is hereby  empowered to
enter and to authorize  others to enter upon the Mortgaged  Property or any part
thereof for the purpose of  performing  or observing  any such  defaulted  term,
covenant or condition  without thereby becoming liable to Borrower or any person
in possession holding under Borrower.

                  (g) Relief From Automatic  Stay. In the event that Borrower is
the  subject  of  any   insolvency,   bankruptcy,   receivership,   dissolution,
reorganization,   or  similar  proceeding,   federal  or  state,   voluntary  or
involuntary, under any present or future law or act, Lender shall be entitled to
relief from the automatic  stay as to the  enforcement of its remedies under the
Loan Documents against the Mortgaged Property,  including specifically,  but not
limited to, the stay imposed by 11 U.S.C., Section 362, as amended, and Borrower
hereby consents to the immediate lifting of any such automatic stay and will not
contest any motion by Lender to lift such stay. Borrower expressly  acknowledges
that (i) the  Mortgaged  Property is not now and will never be  necessary to any
plan of  reorganization  of any type, and (ii) no  reorganization  of Borrower's
business is possible or feasible.

                  (h) Other:  Exercise  any and all other  rights,  remedies and
recourses granted under the Loan Documents (including, without limitation, those
set forth in Articles VII, VIII and IX hereinbelow) or now or hereafter existing
in equity, at law, by virtue of statute or otherwise.

                  6.2 Separate Sales. The Mortgaged  Property may be sold in one
or more parcels and in such manner and order as Lender,  in its sole discretion,
may elect,  it being  expressly  understood  and  agreed  that the right of sale
arising out of any Event of Default  shall not be  exhausted  by any one or more
sales.

                  6.3 Remedies Cumulative,  Concurrent and NonExclusive.  Lender
shall have all rights,  remedies and recourses granted in the Loan Documents and
available at law or equity (including  specifically those granted by the Uniform
Commercial  Code in effect  and  applicable  to the

                                       28
<PAGE>

Mortgaged Property or any portion thereof); and same (a) shall be cumulative and
concurrent, (b) may be pursued separately,  successively or concurrently against
Borrower or others obligated under the Note, or against the Mortgaged  Property,
or against any one or more of them, at the sole discretion of Lender, (c) may be
exercised as often as occasion therefor shall arise, it being agreed by Borrower
that the  exercise  or  failure  to  exercise  any of same  shall in no event be
construed  as a waiver  or  release  thereof  or of any other  right,  remedy or
recourse, and (d) are intended to be, and shall be, nonexclusive.

                  6.4 No Conditions  Precedent to Exercise of Remedies.  Neither
Borrower nor any other person hereafter obligated for payment of all or any part
of the Indebtedness,  or fulfillment of all or any of the Obligations,  shall be
relieved  of such  obligation  by reason of (a) the  failure of Lender to comply
with any request of Borrower or of any other person so  obligated,  to foreclose
this Security Deed or to enforce any provisions of the other Loan Documents, (b)
the release,  regardless  of  consideration,  of the  Mortgaged  Property or the
addition of any other property to the Mortgaged  Property,  (c) any agreement or
stipulation  between any subsequent  owner of the Mortgaged  Property and Lender
extending,  renewing, rearranging or in any other way modifying the terms of the
Loan Documents  without first having obtained the consent of, given notice to or
paid any  consideration  to  Borrower or such other  person,  and in such event,
Borrower and all such other persons shall  continue to be liable to make payment
according to the terms of any such extension or  modification  agreement  unless
expressly  released and discharged,  in writing,  by Lender, or (d) by any other
act or occurrence,  save and except the complete payment of the Indebtedness and
the complete fulfillment of all of the Obligations.

                  6.5 Release of and Resort to  Collateral.  Lender may release,
regardless of consideration,  any part of the Mortgaged Property without,  as to
the remainder, in any way impairing,  affecting,  subordinating or releasing the
conveyance,  lien,  encumbrance or security interests created in or evidenced by
the Loan Documents or their stature as a first and prior  security  deed,  lien,
encumbrance or security interest in and to the Mortgaged  Property.  For payment
of the  Indebtedness,  Lender may resort to any security therefor held by Lender
in such order and manner as Lender may elect.

                  6.6 Waiver of Appraisement,  Valuation,  etc. Borrower agrees,
to the full  extent  permitted  by law,  that,  in case of an Event of  Default,
neither  Borrower nor anyone  claiming  through or under  Borrower  will set up,
claim or seek to take advantage of any moratorium,  reinstatement,  forbearance,
appraisement,  valuation,  stay, extension,  homestead,  exemption or redemption
laws now or hereafter in force in order to prevent or hinder the  enforcement or
foreclosure  of  this  Security  Deed  or the  absolute  sale  of the  Mortgaged
Property,  the delivery of possession thereof immediately after such sale to the
purchaser  at such sale,  or the  exercise of any other  remedy  hereunder;  and
Borrower,  for  itself  and all who may at any time  claim  through or under it,
hereby  waives to the full extent that it may lawfully so do, the benefit of all
such laws, and any and all right to have assets subject to the security title of
this  Security  Deed  marshalled  upon any  foreclosure  or sale under the power
herein granted or a sale in inverse order of alienation.

                                       29
<PAGE>

                  6.7  Discontinuance of Proceedings.  In case Lender shall have
proceeded  to enforce any right,  power or remedy  under this  Security  Deed by
foreclosure, entry or otherwise, or in the event Lender commences advertising of
the  intended  exercise  of the sale under  power  provided  hereunder  and such
proceeding or advertisement shall have been withdrawn, discontinued or abandoned
for any reason, or shall have been determined adversely to Lender, then in every
such case (a) Borrower  and Lender  shall be restored to their former  positions
and rights,  (b) all rights,  powers and remedies of Lender shall continue as if
no such proceeding had been taken,  (c) each and every Event of Default declared
or  occurring  prior  or  subsequent  to  such  withdrawal,   discontinuance  or
abandonment shall be and shall be deemed to be a continuing Event of Default and
(d) neither this Security  Deed,  nor the Note,  nor the  Indebtedness,  nor any
other  Loan  Document,  shall be or shall be deemed to have been  reinstated  or
otherwise  affected  by such  withdrawal,  discontinuance  or  abandonment;  and
Borrower hereby  expressly  waives the benefit of any statute or rule of law now
provided,  or which may  hereafter  be  provided,  which would  produce a result
contrary to or in conflict with the above.

                  6.8 Application of Proceeds.  The proceeds of any sale of, and
the Rents and other  amounts  generated  by the holding,  leasing,  operation or
other use of, the Mortgaged Property (including, without limitation, the Leases)
shall be applied by Lender (or the receiver,  if one is appointed) to the extent
that funds are so available  therefrom to the following in the order of priority
that Lender, in its sole discretion, may determine:

                  (a) To the  payment  of  the  costs  and  expenses  of  taking
possession of the Mortgaged Property and of holding, using, leasing,  repairing,
improving and selling the same,  including,  without limitation,  (i) receivers'
fees, (ii) court costs,  (iii) attorneys' and  accountants'  fees, (iv) costs of
advertisement,  and (v) the payment of any and all Impositions,  liens, security
interests  or other  rights,  titles  or  interests  equal or  superior  to this
Security  Deed  (except  those to which  the  Mortgaged  Property  has been sold
subject  to and  without  in any way  implying  Lender's  prior  consent  to the
creation thereof);

                  (b) To the payment of all  amounts,  other than the  principal
balance of the Note and accrued but unpaid interest,  which may be due to Lender
under  the  Loan  Documents,  together  with  interest  on all such  amounts  as
provided;

                  (c) To the payment of all accrued but unpaid  interest  due on
the Note;

                  (d) To the  payment of the  principal  balance of the Note and
any remaining portion of the Indebtedness;

                  (e) To the extent funds are available therefor out of the sale
proceeds or the Rents, and to the extent known by Lender,  and permitted by law,
to the  payment of any  indebtedness  or  obligation  secured  by a  subordinate
interest in the Mortgaged Property; and

                                       30
<PAGE>

                  (f) Any remaining funds to Borrower.  Borrower SHALL BE LIABLE
FOR ANY DEFICIENCIES IN THE EVENT THE PROCEEDS ARE NOT SUFFICIENT TO COVER ITEMS
(a) THROUGH (d) ABOVE.

                  6.9 Leases.  Lender, at its option, is authorized to foreclose
this  Security  Deed  subject  to the  rights of any  Tenants  of the  Mortgaged
Property  under any Leases,  and the failure to make any Tenants  parties to any
such foreclosure  proceedings and to foreclose their rights shall not be, nor be
asserted to be by Borrower, a defense to any proceedings instituted by Lender to
collect the Indebtedness.

                  6.10 Purchase by Lender. Upon any foreclosure sale or sales of
all or any  portion of the  Mortgaged  Property  under the power of sale  herein
granted,  Lender may bid for and  purchase the  Mortgaged  Property and shall be
entitled  to  apply  all or any  part of the  Indebtedness  as a  credit  to the
purchase price.

                  6.11 Borrower as Tenant Holding Over. In the event of any such
foreclosure  sale or sales under the power  herein  granted,  Borrower  shall be
deemed a tenant  holding  over and shall  forthwith  deliver  possession  to the
purchaser or purchasers at such sale or be summarily  dispossessed  according to
provisions of law applicable to tenants holding over.

                  6.12 Suits to Protect the  Mortgaged  Property.  Lender  shall
have the power to institute  and maintain such suits and  proceedings  as it may
deem  expedient (i) to prevent any  impairment of the Mortgaged  Property by any
acts which may be unlawful or constitute an Event of Default under this Security
Deed, (ii) to preserve or protect its interest in the Mortgaged  Property and in
the Leases and Rents arising therefrom, and (iii) to restrain the enforcement of
or compliance  with any  legislation or other  governmental  enactment,  rule or
order that may be  unconstitutional  or otherwise invalid, if the enforcement of
or  compliance  with such  enactment,  rule or order would  impair the  security
hereunder or be prejudicial to the interest of Lender.

                  6.13  Proofs  of  Claim.  In the  case  of  any  receivership,
insolvency, bankruptcy, reorganization,  arrangement, adjustment, composition or
other proceedings affecting Borrower, its creditors or its property,  Lender, to
the extent  permitted by law, shall be entitled to file such proofs of claim and
other  documents as may be necessary or advisable in order to have the claims of
Lender allowed in such  proceedings for the entire amount of the Indebtedness at
the date of the institution of such proceedings and for any additional amount of
the Indebtedness after such date.

                  6.14  Occupancy  After  Foreclosure.   The  purchaser  at  any
foreclosure  sale  pursuant to Paragraph  6.1(d) shall become the legal owner of
the Mortgaged Property or the portion thereof foreclosed.  All occupants (except
those which have previously  executed a prior written  agreement with purchaser)
of the Mortgaged Property or any part thereof shall become tenants at sufferance
of the purchaser at the foreclosure  sale and shall deliver  possession  thereof
immediately to the purchaser upon demand.

                                       31
<PAGE>

                  6.15  Waiver  of  Borrower's  Rights.  BY  EXECUTION  OF  THIS
SECURITY DEED AND BY INITIALING THIS PARAGRAPH  6.15,  BORROWER  EXPRESSLY:  (A)
ACKNOWLEDGES THE RIGHT OF LENDER TO ACCELERATE THE INDEBTEDNESS EVIDENCED BY THE
NOTE AND ANY OTHER  INDEBTEDNESS  SECURED BY THIS SECURITY DEED AND THE POWER OF
ATTORNEY  GIVEN HEREIN TO LENDER TO SELL THE MORTGAGED  PROPERTY BY  NONJUDICIAL
FORECLOSURE  UPON AN EVENT OF DEFAULT BY BORROWER  WITHOUT ANY JUDICIAL  HEARING
AND  WITHOUT  ANY  NOTICE  OTHER THAN SUCH  NOTICE  (IF ANY) AS IS  SPECIFICALLY
REQUIRED TO BE GIVEN UNDER THE  PROVISIONS OF THIS SECURITY DEED; (B) WAIVES ANY
AND ALL RIGHTS  WHICH  BORROWER  MAY HAVE UNDER THE  CONSTITUTION  OF THE UNITED
STATES OF  AMERICA  (INCLUDING,  WITHOUT  LIMITATION,  THE FIFTH AND  FOURTEENTH
AMENDMENTS THEREOF), THE VARIOUS PROVISIONS OF THE CONSTITUTIONS FOR THE SEVERAL
STATES,  OR BY REASON OF ANY OTHER APPLICABLE LAW, (1) TO NOTICE AND TO JUDICIAL
HEARING PRIOR TO THE EXERCISE BY LENDER OF ANY RIGHT OR REMEDY  HEREIN  PROVIDED
TO LENDER,  EXCEPT SUCH NOTICE (IF ANY) AS IS SPECIFICALLY  REQUIRED TO BE GIVEN
UNDER THE PROVISIONS OF THIS SECURITY DEED AND (2)  CONCERNING THE  APPLICATION,
RIGHTS  OR   BENEFITS  OF  ANY  STATUTE  OF   LIMITATION   OR  ANY   MORATORIUM,
REINSTATEMENT,   MARSHALLING,   FORBEARANCE,   APPRAISEMENT,   VALUATION,  STAY,
EXTENSION,  HOMESTEAD,  EXEMPTION OR  REDEMPTION  LAWS;  (C)  ACKNOWLEDGES  THAT
BORROWER  HAS READ THIS  SECURITY  DEED AND ANY AND ALL  QUESTIONS  OF  BORROWER
REGARDING THE LEGAL EFFECT OF THIS SECURITY  DEED AND ITS  PROVISIONS  HAVE BEEN
EXPLAINED  FULLY TO  BORROWER,  AND  BORROWER  HAS  CONSULTED  WITH  COUNSEL  OF
BORROWER'S  CHOICE PRIOR TO EXECUTING  THIS  SECURITY DEED AND  INITIALING  THIS
PARAGRAPH 6.15; AND (D) ACKNOWLEDGES THAT ALL WAIVERS OF THE AFORESAID RIGHTS OF
BORROWER HAVE BEEN MADE  KNOWINGLY,  INTENTIONALLY  AND WILLINGLY BY BORROWER AS
PART OF A BARGAINED  FOR LOAN  TRANSACTION  AND THAT THIS SECURITY DEED IS VALID
AND ENFORCEABLE BY LENDER AGAINST  BORROWER IN ACCORDANCE WITH ALL THE TERMS AND
CONDITIONS HEREOF.

                                              INITIALED BY BORROWER:

                                              /s/ Charles S. Roberts
                                              --------------------------------

ARTICLE VII.  SECURITY AGREEMENT

                  7.1 Security  Interest.  This Security Deed shall be construed
as a deed to secure debt on the Mortgaged Property, and it shall also constitute
and serve as a "Security  Agreement" on personal property within the meaning of,
and shall constitute  until this Security Deed shall  terminate,  as provided in
Article II  hereinabove,  a first and prior security  interest under the Uniform
Commercial  Code  as  enacted  in the  State  of  Georgia  with  respect  to the
Personalty,  Fixtures,  Construction

                                       32
<PAGE>

Contract, Plans, Leases and Rents. To this end, Borrower has GRANTED, BARGAINED,
CONVEYED, ASSIGNED, TRANSFERRED and SET OVER, and by these presents, does GRANT,
BARGAIN,  CONVEY,  ASSIGN,  TRANSFER and SET OVER, unto Lender a first and prior
security interest and all of Borrower's right,  title and interest in, to, under
and with respect to the Personalty,  Fixtures,  Construction  Contracts,  Plans,
Leases and Rents  ("Collateral")  to secure  the full and timely  payment of the
Indebtedness  and  the  full  and  timely   performance  and  discharge  of  the
Obligations.  It is the intent of Borrower  and Lender that this  Security  Deed
encumber all Leases and Rents,  that all items  contained in the  definition  of
"Leases"  and  "Rents"  which  are  included  within  Article  9 of the  Uniform
Commercial Code of Georgia be covered by the security  interest  granted in this
Article VII and that all items  contained  in the  definition  of  "Leases"  and
"Rents"  which are  excluded  from Article 9 of the Uniform  Commercial  Code of
Georgia be covered by the provisions of Article II and Article VIII hereof.

         With  regard  to  the  Construction   Contracts  and  the  Plans,  this
assignment  is for the purposes of security  only,  and it does not and will not
operate or have the effect of delegating to the Lender any of Borrower's duties,
responsibilities  or liabilities under any of the Loan Documents until such time
as  Lender  has  notified  the  other  party  to  a  Construction  Contract,  if
applicable, and made independent arrangements with said party. Upon a default by
Borrower  under  any  of the  Loan  Documents  which  is not  cured  within  any
applicable  cure  period,  as therein  provided,  Lender  shall be and is hereby
permitted to, at its option,  exercise the rights granted hereunder by notifying
one or more of said parties of its  election.  Borrower  hereby  authorizes  any
other  party to any  Construction  Contract to rely upon notice from Lender that
Borrower is in default under any of the Loan Documents.

                  7.2 Financing  Statements.  Borrower hereby agrees with Lender
to execute and deliver to Lender, in form and substance  satisfactory to Lender,
such Financing  Statements and such further  assurances as Lender may, from time
to time, reasonably consider necessary to create,  perfect and preserve Lender's
security  interest  herein  granted,  and Lender may cause such  statements  and
assurances to be recorded and filed, at such times and places as may be required
or permitted by law, to so create, perfect and preserve such security interest.

                  7.3 Uniform  Commercial  Code Remedies.  Lender shall have all
the rights,  remedies and recourses  with respect to the  Personalty,  Fixtures,
Construction Contracts, Plans, Leases and Rents afforded to a "Secured Party" by
the Uniform  Commercial  Code of Georgia as to property within the scope thereof
and situated in the State of Georgia,  in addition to, and not in limitation of,
the other rights, remedies and recourses afforded by the Loan Documents.

                  7.4 Warranty.  Borrower  warrants that Borrower shall promptly
execute any financing statements or other instruments deemed necessary by Lender
to prevent any filed financing  statement from becoming misleading or losing its
perfected status.

                  7.5 Foreclosure of Security  Interest.  If an Event of Default
shall  occur,  Lender may elect,  in  addition to  exercising  any and all other
rights,  remedies  and  recourses  set forth in  Article  VI or

                                       33
<PAGE>

referred to in Paragraph 7.3 hereinabove or Article VIII hereinbelow, to proceed
in, the manner set forth in Article 9,  Section  501 of the  Uniform  Commercial
Code of Georgia, relating the procedure to be followed when a Security Agreement
covers both real and personal property.

                  7.6 Construction Mortgage. If the term "construction mortgage"
is  referenced  on the first page hereof,  this  Security  Deed  secures  future
advances to be used for construction of improvements on the Land pursuant to the
Loan  Agreement  and,  accordingly,   this  Security  Deed  shall  constitute  a
construction mortgage.

                  7.7 No  Obligation  of Grantee.  The  assignment  and security
interest herein granted shall not be deemed or construed to constitute Lender as
a trustee or mortgagee in  possession  of the  Mortgaged  Property,  to obligate
Lender to lease the  Mortgaged  Property  or attempt to do same,  or to take any
action,  incur any  expense or  perform or  discharge  any  obligation,  duty or
liability whatsoever under any of the Leases or otherwise.

ARTICLE VIII.  ASSIGNMENT OF LEASES AND RENTS

                  8.1  Assignment.  For and in  consideration  of the sum of TEN
DOLLARS  ($10.00),  and other good and  valuable  consideration,  including  the
Indebtedness,  the receipt and sufficiency of which are hereby acknowledged, and
in order to secure the full and timely payment of the  Indebtedness and the full
and timely  performance and discharge of the Obligations,  Borrower has GRANTED,
BARGAINED, SOLD, CONVEYED, ASSIGNED, TRANSFERRED, SET OVER and DELIVERED, and by
these, presents does hereby GRANT, BARGAIN, SELL, CONVEY, ASSIGN,  TRANSFER, SET
OVER and DELIVER  absolutely  unto Lender the Leases  (whether  now  existing or
entered  into  after  the  date  hereof)  and  the  Rents,  subject  only to the
hereinafter described License, TO HAVE AND TO HOLD the Leases and the Rents unto
Lender,  its  successors  and assigns,  forever,  and Borrower  does hereby bind
itself,  its  successors  and assigns to WARRANT and FOREVER DEFEND the title to
the Leases and the Rents unto Lender  against every person  whomsoever  lawfully
claiming or to claim the same or any part  thereof.  Upon the  occurrence  of an
Event of Default, Lender shall have the right, power and privilege (but shall be
under no duty) to demand  possession of the Rents,  which demand  shall,  to the
fullest extent  permitted by applicable  law, be sufficient  action by Lender to
entitle Lender to immediate and direct payment of the Rents (including  delivery
to Lender of Rents  collected  for the period in which the demand occurs and for
any subsequent  period),  for  application as provided  herein,  all without the
necessity of any further action by Lender,  including,  without limitation,  any
action to obtain possession of the Improvements or the Property. Borrower hereby
authorizes  and directs the tenants under the Leases to pay Rents to Lender upon
written  demand by Lender,  without  further  consent of  Borrower,  without any
obligation  to  determine  whether an Event of Default has in fact  occurred and
regardless  of  whether  Lender  has  taken  possession  of any  portion  of the
Property,  and the  tenants  may rely upon any written  statement  delivered  by
Lender to the tenants.  Any such payment to Lender shall  constitute  payment to
Borrower under the Leases,  and Borrower  hereby  appoints  Lender as Borrower's
lawful

                                       34
<PAGE>

attorney-in-fact   for  giving,   and  Lender  is  hereby   empowered  to  give,
acquittances to any tenants for such payments to Lender after a default.

                  8.2  Continuation  and Termination of Assignment.  If Borrower
shall pay or cause to be paid the Indebtedness as and when same shall become due
and  payable  and shall  perform  and  discharge  or cause to be  performed  and
discharged  the  Obligations  on or before the date the same are to be performed
and  discharged,  then this  assignment  shall thereupon be terminated and of no
further force and effect, and all rights, titles and interests conveyed pursuant
to this assignment  shall become  revested in Borrower  without the necessity of
any further act or requirement  by Borrower or Lender;  provided,  however,  the
affidavit,  certificate,  letter or statement  of any officer of Lender  stating
that  any  part  of the  Indebtedness  or the  Obligations  remains  unpaid  and
undischarged  shall  be and  constitute  conclusive  evidence  of the  validity,
effectiveness or continuing force of the within assignment, and any person, firm
or corporation may, and is hereby authorized to, rely thereon.

                  8.3 Limited  License.  Provided  that there exists no Event of
Default  hereunder  or under or in any Loan  Document,  Borrower  shall have the
right  under a limited  license  granted  hereby,  and Lender  hereby  grants to
Borrower a limited  license (the  "License"),  to collect upon, but not prior to
accrual,  all of the Rents arising from or out of the Leases, or any renewals or
extensions  thereof,  or  from  or out of the  Mortgaged  Property  or any  part
thereof, and Borrower shall receive such Rents and hold the same, as well as the
right and  license to receive  such Rents,  as a trust fund to be  applied,  and
Borrower  hereby  covenants  to apply the Rents,  to the payment of interest and
principal  becoming due on account of the Indebtedness,  to the satisfaction and
discharge of the Obligations, including specifically, but without limitation, to
the payment of taxes and assessments upon the Mortgaged  Property before payment
of  penalty  or  interest  are due  thereon,  to the  cost  of  such  insurance,
maintenance  and repairs as may be required by the terms of this  Security  Deed
and in  satisfaction  of all  obligations  under  the  Leases,  all prior to the
application by Borrower of the Rents for any other purposes.

                  8.4  Borrower's   Indemnities.   Borrower   hereby  agrees  to
indemnify  and hold  Lender  free and  harmless  from  and  against  any and all
liability,  loss,  cost,  damage or expense  which  Lender may incur under or by
reason of this assignment,  or for any action taken by the Lender hereunder,  or
by reason or in defense of any and all claims and demands  whatsoever  which may
be asserted  against Lender arising out of the Leases,  including  specifically,
but without limitation,  any claim by any Tenant of credit for Rents paid to and
received by  Borrower,  but not  delivered  to Lender,  for any period under any
Lease more than one (1) month in advance of the due date  thereof.  In the event
Lender incurs any such  liability,  loss,  cost,  damage or expense,  the amount
thereof,  including  reasonable  attorneys'  fees, with interest  thereon at the
Default  Rate  specified  in the Note,  shall be payable by  Borrower  to Lender
immediately,  without demand,  and shall be secured hereby and by all other Loan
Documents.

                  8.5 Appointment of  Attorney-in-Fact.  Borrower hereby further
constitutes  and appoints Lender the true and lawful  attorney,  coupled with an
interest, of the Borrower, and in the name, place and stead of said Borrower, to
subject and  subordinate at any time and from time to time any Lease

                                       35
<PAGE>

or any part thereof to the lien and security  title of the Security  Deed or any
other mortgage,  security deed, deed of trust or security agreement on or to any
ground  lease  of  the  Mortgaged  Property,  or  to  request  or  require  such
subordination,  where such reservation,  option or authority was reserved to the
Borrower under any such Lease, or in any case where the Borrower otherwise would
have the right,  power or  privilege  so to do.  The  foregoing  appointment  is
irrevocable  and  continuing,  and such rights,  powers and privileges  shall be
exclusive  in  Lender,  its  successors  and  assigns so long as any part of the
Indebtedness or the Obligations  secured hereby remains unpaid and undischarged,
and Borrower hereby warrants that Borrower has not at any time prior to the date
hereof exercised any such rights,  and Borrower hereby covenants not to exercise
any such right,  to subordinate any such Lease to the lien of this Security Deed
or to any other security deed, mortgage,  deed of trust or security agreement or
to any ground lease.

                  8.6  Exculpation  of Lender.  The acceptance by Lender of this
assignment of the Leases and Rents, with all of the rights,  powers,  privileges
and  authority  created  hereby  shall  not,  prior  to entry  upon  and  taking
possession  of the  Mortgaged  Property  by Lender,  be deemed or  construed  to
constitute Lender a "mortgagee in possession",  nor thereafter or at any time or
in any event obligate the Lender to appear in or defend any action or proceeding
relating  to the  Leases,  the Rents or the  Mortgaged  Property  or to take any
action  hereunder  or to expend  any money or incur any  expenses  or perform or
discharge  any  obligation,  duty or liability  under any Lease or to assume any
obligation  or  responsibility  for any  security  deposits  or  other  deposits
delivered to Borrower by any Tenant and not  assigned  and  delivered to Lender,
nor shall  Lender be liable in any way for any  injury or damage to  persons  or
property sustained by any person or persons, firm or corporation in or about the
Mortgaged Property.

ARTICLE IX.  MISCELLANEOUS

                  9.1 Performance at Borrower's  Expense.  Borrower shall pay to
Lender  immediately  upon  demand all costs and  expenses  incurred by Lender in
connection with: (1) the preparation of this Security Deed and any and all other
Loan Documents  contemplated  hereby (including any amendments hereto or thereto
or consents,  releases or waivers  hereunder or thereunder),  and the closing of
the loan evidenced by the Note and secured  hereby;  (2) the  administration  of
this  Security Deed and the other Loan  Documents for the term of the Note;  and
(3) the enforcement or  satisfaction by Lender of any of Borrower's  Obligations
under this Security Deed or under the Loan  Documents.  For all purposes of this
Security Deed,  Lender's costs and expenses shall include,  without  limitation,
all appraisal and re-appraisal fees, legal fees (including,  without limitation,
fees for trial,  appeal or other  proceedings),  accounting fees,  environmental
consultant  fees  (if  any),  auditor  fees,  and  the  cost  to  Lender  of any
documentary  taxes,  recording fees,  brokerage fees,  title search fees,  title
insurance  premiums and title surveys (including any such title related fees and
premiums  incurred in  connection  with title  updates).  In addition,  Borrower
recognizes and agrees that formal written  appraisals of the Mortgaged  Property
by a licensed  independent  appraiser  may be  required  by  federal  regulatory
reporting  requirements on an annual or specialized basis.  Except to the extent
that certain of these costs and expenses are included  within the  definition of
Indebtedness,  the payment by Borrower of any of these costs and expenses  shall
not be  credited,  in any  way or to any  extent,

                                       36
<PAGE>

against any portion of the  Indebtedness.  If any of the  services  described in
this  Paragraph  9.1 are  provided  by an  employee  of Lender,  Borrower  shall
reimburse Lender its standard charge for such services.

                  9.2 Survival of  Obligations.  Each and all of the Obligations
shall  survive  the  execution  and  delivery  of the  Loan  Documents,  and the
consummation  of the loan called for therein,  and shall  continue in full force
and  effect  until the  Indebtedness  shall  have  been  paid in full;  provided
however,   that  nothing  contained  in  this  Paragraph  9.2  shall  limit  the
obligations of Borrower as set forth in Paragraphs 3.6, 3.23 and 8.4 herein.

                  9.3 Further Assurances.  Borrower, upon the request of Lender,
shall execute,  acknowledge,  deliver and record or file, as  appropriate,  such
further  instruments and do such further acts as may be necessary,  desirable or
proper to carry out more  effectively  the purpose of the Loan  Documents and to
subject to the liens and security interests thereof any property intended by the
terms  thereof  to be  covered  thereby,  including  specifically,  but  without
limitation, any renewals, additions, substitutions, replacements, betterments or
appurtenances to the Mortgaged Property.

                  9.4  Recording  and  Filing.  Borrower  shall  cause  the Loan
Documents and all amendments and supplements thereto and substitutions  therefor
to be recorded, filed, re-recorded and refiled in such manner and in such places
as Lender shall  reasonably  request and shall pay all such  recording,  filing,
re-recording and refiling taxes, fees and other charges.

                  9.5 Notices. All notices or other  communications  required or
permitted  to be given  pursuant to this  Security  Deed shall be in writing and
shall be considered  as properly  given if mailed by  first-class  United States
mail, postage prepaid, registered or certified with return receipt requested, or
by delivering same in person to the intended addressee,  or by prepaid telegram,
telex or telecopy or by Federal  Express or other  reputable  overnight  courier
service.  Notice so mailed  shall be  effective  two (2) days after its deposit.
Notice given in any other manner shall be effective only if and when received by
the  addressee or receipt is refused.  For purposes of notice,  the addresses of
the parties shall be as set forth in the first  paragraph of this Security Deed;
provided,  however, that either party shall have the right to change its address
for notice hereunder to any other location within the continental  United States
by the giving of thirty  (30) days'  notice to the other party in the manner set
forth hereinabove.

                  9.6 No  Waiver.  Any  failure  by  Lender  to  insist,  or any
election by Lender not to insist,  upon strict performance by Borrower of any of
the terms, provisions or conditions of the Loan Documents shall not be deemed to
be a waiver of same or of any other term,  provision or condition  thereof,  and
Lender  shall  have the right at any time or times  thereafter  to  insist  upon
strict  performance  by  Borrower  of any and all  such  terms,  provisions  and
conditions.  No delay or  omission by Lender,  or by any holder of the Note,  to
exercise any right, power or remedy accruing upon any breach or Event of Default
shall exhaust or impair any such right, power or remedy or shall be construed to
be a waiver of any such breach or Event of Default, or acquiescence therein, and
every  right,  power and  remedy  given by this  Security  Deed to Lender may be
exercised  from time to

                                       37
<PAGE>

time and as often as may be deemed  expedient  by Lender.  No consent or waiver,
expressed  or  implied,  by Lender to or of any  breach or Event of  Default  by
Borrower in the performance of the  Obligations of Borrower  hereunder or to any
other Event of Default shall be deemed or construed to be a consent or waiver to
or of any other breach or Event of Default in the performance of the same or any
other  Obligations  of  Borrower  hereunder.  Failure  on the part of  Lender to
complain  of any act or  failure  to act or to  declare  an  Event  of  Default,
irrespective of how long such failure  continues,  shall not constitute a waiver
by Lender of its rights hereunder or impair any rights,  powers,  or remedies of
Lender hereunder.

         No act or omission by Lender shall release,  discharge,  modify, change
or otherwise affect the original liability under the Note, this Security Deed or
any other  Obligations of Borrower or any subsequent  purchaser of the Mortgaged
Property or any part  thereof,  or any maker,  cosigner,  endorser,  surety,  or
preclude Lender from exercising any right,  power or privilege herein granted or
intended to be granted in the event of any Event of Default  then made or by any
subsequent Event of Default,  or alter the security title,  security interest or
lien of this  Security  Deed,  except as expressly  provided in an instrument or
instruments  executed  by  Lender.   Without  limiting  the  generality  of  the
foregoing, Lender may:

                  (a) grant  forbearance or an extension of time for the payment
of all or any portion of the Indebtedness;

                  (b) take other or  additional  security for the payment of the
Indebtedness;

                  (c) waive or fail to exercise any right  granted  hereunder or
in the Note;

                  (d)  change  any  of  the  terms,  covenants,   conditions  or
agreements of the Note or this Security Deed;

                  (e) consent to the filing of any map, plat or replat affecting
the Mortgaged Property;

                  (f)  consent to the  granting  of any  easement or other right
affecting the Mortgaged Property;

                  (g)  make  or  consent  to  any  agreement  subordinating  the
security title, security interest or lien hereof; or

                  (h) take or omit to take any action whatsoever with respect to
the Note,  this  Security  Deed,  the  Mortgaged  Property  or any  document  or
instrument evidencing, securing or in-any way relating to the Indebtedness;

all without releasing,  discharging,  modifying,  changing or affecting any such
liability,  or  precluding  Lender  from  exercising  any such  right,  power or
privilege, or affecting the security title, security

                                       38
<PAGE>

interest or lien of this Security  Deed. In the event of the sale or transfer by
operation  of law or  otherwise  of all or any part of the  Mortgaged  Property,
Lender, without notice, is hereby authorized and empowered to deal with any such
vendee  or  transferee   with  reference  to  the  Mortgaged   Property  or  the
Indebtedness,  or with reference to any of the terms,  covenants,  conditions or
agreements  hereof,  as fully and to the same  extent as it might  deal with the
original  parties  hereto and without in any way  releasing or  discharging  any
liabilities, obligations or undertakings.

                  9.7  Lender's  Right to Perform the  Obligations.  If Borrower
shall fail, refuse or neglect to make any payment or perform any act required by
the Loan Documents, then at any time thereafter, and without notice to or demand
upon  Borrower  and without  waiving or  releasing  any other  right,  remedy or
recourse Lender may have because of same, Lender may (but shall not be obligated
to) make such  payment or perform such act for the account of and at the expense
of Borrower, and shall have the right to enter the Property and Improvements for
such  purpose  and to take all such  action  thereon  and  with  respect  to the
Mortgaged  Property as it may deem  necessary  or  appropriate.  If Lender shall
elect to pay any  Imposition  or other sums due with  reference to the Mortgaged
Property,  Lender may do so in reliance  on any bill,  statement  or  assessment
procured from the  appropriate  Governmental  Authority or other issuer  thereof
without  inquiring into the accuracy or validity thereof.  Similarly,  in making
any  payments  to  protect  the  security  intended  to be  created  by the Loan
Documents,  Lender  shall  not be bound to  inquire  into  the  validity  of any
apparent or threatened adverse title, lien, encumbrance,  claim or charge before
making an advance for the purpose of preventing  or removing the same.  Borrower
shall indemnify Lender for all losses,  expenses,  damages, claims and causes of
action,  including reasonable attorneys' fees, incurred or accruing by reason of
any acts performed by Lender pursuant to the provisions of this Paragraph 9.7 or
by reason of any other provision in the Loan Documents.  All sums paid by Lender
pursuant to this  Paragraph  9.7, and all other sums expended by Lender to which
it shall be entitled to be  indemnified,  together with interest  thereon at the
Default  Rate  (as  defined  in the  Note)  from  the  date of such  payment  or
expenditure, shall constitute additions to the Indebtedness, shall be secured by
the liens,  security titles,  security  interests and rights created by the Loan
Documents and shall be paid by Borrower to Lender upon demand.

                  9.8 Covenants Running with the Land. All obligations contained
in the Loan  Documents are intended by the parties to be, and shall be construed
as, covenants running with the Mortgaged Property.

                  9.9  Successors  and  Assigns.  All of the  terms  of the Loan
Documents  shall  apply to, be  binding  upon and  inure to the  benefit  of the
parties thereto, their successors, assigns, heirs and legal representatives, and
all other persons claiming by, through or under them.

                  9.10  Severability.  The Loan  Documents  are  intended  to be
performed  in  accordance  with,  and  only  to the  extent  permitted  by,  all
applicable Legal Requirements.  If any provision of any of the Loan Documents or
the application  thereof to any person or circumstance shall, for any reason and
to any extent,  be invalid or  unenforceable,  then neither the remainder of the
instrument  in which such  provision is contained  nor the  application  of such
provision to other persons or circumstances

                                       39
<PAGE>

nor the other instruments referred to hereinabove shall be affected thereby, but
rather, shall be enforced to the greatest extent permitted by law.

                  9.11 Entire Agreement and Modification. This Security Deed and
the other Loan  Documents  contain  the entire  agreements  between  the parties
relating to the subject  matter  hereof and  thereof,  and all prior  agreements
relative thereto which are not contained  herein or therein are terminated.  The
Loan  Documents may not be amended,  revised,  waived,  discharged,  released or
terminated orally,  but only by a written instrument or instruments  executed by
the  party  against  which  enforcement  of  the  amendment,  revision,  waiver,
discharge, release or termination is asserted. Any alleged amendment,  revision,
waiver,  discharge,  release or termination which is not so documented shall not
be effective as to any party.

                  9.12  Assignment.  This  Security Deed is assignable by Lender
and any  assignment  hereof by Lender shall  operate to vest in the assignee all
rights and powers herein conferred upon and granted to Lender.

                  9.13  Time  is of the  Essence.  Time is of the  essence  with
respect to each and every  covenant,  agreement and obligation of Borrower under
this Security Deed, the Note and any and all other Loan Documents.

                  9.14  Counterparts.  This Security Deed may be executed in any
number of  counterparts,  each of which shall be an  original,  but all of which
together shall constitute but one instrument.

                  9.15  Applicable  Law. This Security Deed shall be governed by
and construed according to the laws of the State of Georgia from time to time in
effect, except that United States federal law shall govern to the extent that it
permits Lender to contract for,  charge or receive a greater amount of interest,
and also giving  effect to all other United  States  federal laws  applicable to
national  banks.  It is  expressly  stipulated  and  agreed to be the  intent of
Borrower and Lender at all times to comply with  applicable law now or hereafter
governing the interest payable on the Note or-the loan evidenced thereby. If the
applicable  law is ever  revised,  repealed or judicially  interpreted  so as to
render  usurious  any amount  called for under the Note or under any of the Loan
Documents,  or contracted for, charged, taken, reserved or received with respect
to the Indebtedness or the Obligations, or if Lender's exercise of the option to
accelerate the maturity of the Note or if any prepayment by Borrower  results in
Borrower having paid Any interest in excess of that permitted by applicable law,
then it is  Borrower's  and  Lender's  express  intent  that all excess  amounts
theretofore collected by Lender be credited on the principal balance of the Note
(or, if the Note and all other Indebtedness or the obligations have been paid in
full,  refunded  to  Borrower),  and the  provisions  of the  Note  and the Loan
Documents immediately be deemed reformed and the amounts thereafter  collectible
hereunder and thereunder reduced,  without the necessity of the execution of any
new documents, so as to comply with the then applicable law, but so as to permit
the recovery of the fullest amount otherwise called for hereunder or thereunder.
All  sums  paid  or  agreed  to be paid  by  Borrower  to  Lender  for the  use,
forbearance or detention of the  Indebtedness  shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the term
of the

                                       40
<PAGE>

Note until  payment in full so that the rate or amount of interest on account of
such  Indebtedness does not exceed the usury ceiling from time to time in effect
and  applicable  to  the  Indebtedness  for  so  long  as  any  Indebtedness  is
outstanding.

                  9.16  Subrogation.  If any or all of the  proceeds of the Note
have  been used to  extinguish,  extend  or renew  any  Indebtedness  heretofore
existing  against the Mortgaged  Property,  then, to the extent of such funds so
used, the  Indebtedness and this Security Deed shall be subrogated to all of the
rights,  claims,  liens,  titles and interests  heretofore  existing against the
Mortgaged  Property  to secure the  indebtedness  so  extinguished,  extended or
renewed, and the former rights, claims, liens, titles and interests, if any, are
not  waived,  but  rather,  are  continued  in full force and effect in favor of
Lender and are merged  with the lien and  security  title and  interest  created
herein as  cumulative  security for the  repayment of the  Indebtedness  and the
satisfaction of the Obligations.

                  9.17  Headings.   The  Article,   Paragraph  and  Subparagraph
entitlements  hereof are inserted for convenience of reference only and shall in
no way  alter,  modify or  define,  or be used in  construing,  the text of such
Articles, Paragraphs or Subparagraphs.

                  9.18 No Joint Venture.  Notwithstanding anything in any of the
Loan Documents or in any other agreement or commitment to the contrary,  neither
the Loan Documents nor the transactions  described in the Loan Documents nor the
rights and obligations  granted therein shall in any way create or contribute to
the creation of a partnership  or joint venture or similar  arrangement  between
Borrower and Lender.

                  9.19 Inspection Fee. Following  completion of the Improvements
as provided in the Loan Agreement,  in furtherance of Lender's rights hereunder,
Lender may, at its option,  require an inspection of the Mortgaged Property,  by
an agent of Lender or any  other  party  contracted  by  Lender,  semi-annually.
Borrower shall pay all fees incurred by Lender for  inspections of the Mortgaged
Property.  Furthermore,  if  Lender  determines  in  connection  with  any  such
inspection that extra services will be required, Borrower shall pay, in addition
to the fees for such inspection, the cost of all such extra services.

                  9.20  Brokerage.  Borrower  represents  and warrants to Lender
that Borrower has not dealt with any person,  firm or corporation  who is or may
be entitled to any finder's fee, brokerage commission,  loan commission or other
sum in connection with the execution of this Security Deed, the  consummation of
the transactions contemplated hereby or the making of the loan secured hereby by
Lender to Borrower,  and Borrower does hereby indemnify and agree to hold Lender
harmless  from and against  any and all loss,  liability  or expense,  including
court costs and reasonable attorneys fees and expenses,  which Lender may suffer
or sustain should such warranty or  representation  prove inaccurate in whole or
in part.

                  9.21  CONSENT  TO  JURISDICTION;  WAIVER  OF RIGHT TO TRIAL BY
JURY. BORROWER HEREBY IRREVOCABLY  SUBMITS TO THE NON-EXCLUSIVE  JURISDICTION OF
ANY UNITED STATES FEDERAL OR STATE OF GEORGIA COURT

                                       41
<PAGE>

SITTING IN FULTON  COUNTY,  GEORGIA,  AND HEREBY  EXPRESSLY  WAIVES ANY RIGHT TO
TRIAL BY JURY OF, ANY CLAIM,  DEMAND,  PROCEEDING  ACTION OR CAUSE OF ACTION (A)
ARISING  UNDER  THIS  SECURITY  DEED,  ANY  OTHER  LOAN  DOCUMENT  OR ANY  OTHER
INSTRUMENT,  DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION  HEREWITH
OR THEREWITH,  OR (B) IN ANY WAY CONNECTED  WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF BORROWER AND LENDER WITH RESPECT TO THIS  SECURITY  DEED,  ANY OTHER
LOAN  DOCUMENT  OR ANY OTHER  INSTRUMENT,  DOCUMENT  OR  AGREEMENT  EXECUTED  OR
DELIVERED IN  CONNECTION  HEREWITH OR  THEREWITH,  OR THE  TRANSACTIONS  RELATED
HERETO OR THERETO,  IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING,  AND
WHETHER  SOUNDING IN CONTRACT OR TORT OR OTHERWISE;  AND BORROWER  HEREBY AGREES
AND  CONSENTS  THAT ANY SUCH CLAIM,  DEMAND,  ACTION OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT  TRIAL  WITHOUT A JURY,  AND THAT  LENDER MAY FILE AN  ORIGINAL
COUNTERPART OR A COPY OF THIS  PARAGRAPH  WITH ANY COURT AS WRITTEN  EVIDENCE OF
THE CONSENT OF BORROWER TO JURISDICTION  AND THE WAIVER OF ITS RIGHT TO TRIAL BY
JURY.  BORROWER  ACKNOWLEDGES  AND AGREES THAT THE WITHIN CONSENT AND WAIVER ARE
MATERIAL INDUCEMENTS TO LENDER TO MAKE THE LOAN.

                  9.22   Further   Stipulations.   The   additional   covenants,
agreements and provisions set forth in Exhibit "C" hereto shall, in the event of
any conflict  between such further  stipulations and any of the other provisions
of this Security Deed, be deemed to control.

         IN WITNESS  WHEREOF,  Borrower has executed  this  Security  Deed under
seal, as of the day and year first above written.

                                  BORROWER
Signed, sealed and delivered
in the presence of:

                                  ROBERTS PROPERTIES RESIDENTIAL, L.P.,
                                  a Georgia limited partnership
/s/ Charles R. Elliott
-----------------------------
Unofficial Witness

                                  By: Roberts Realty Investors, Inc., a Georgia
                                      corporation, its sole general partner
/s/ Laurie Heberle
-----------------------------
Notary Public                           By: /s/ Charles S. Roberts
                                            ------------------------------------
                                        Name:   Charles S. Roberts
                                            ------------------------------------
Commission Expiration Date:             Title: _________________________________

8/19/03
-----------------------------
                                                (CORPORATE SEAL)

                   (NOTARIAL SEAL)

                                       42
<PAGE>

                                   EXHIBIT "A"

                          (Description of the Property)
                               (Legal Description)

All that tract or parcel of land lying and being  located in Land Lots 230, 231,
234, & 235, 1st District,  1st Section,  Fulton  County,  Georgia and being more
particularly described as follows:

BEGINNING at a 1/2" rebar set, said rebar being  located South  88(degree)50'38"
East, a distance of 335.79 feet along the South line of Land Lot 231 from a 3/4"
iron bar found at the common corner of Land Lots 197,  198,  230, & 231;  thence
continuing along said Land Lot line South  88(degree)50'38"  East, a distance of
45.92  feet to a 1/2"  rebar  found;  thence  leaving  said Land Lot line  North
13(degree)49'19"  East, a distance of 307.12 feet to a 1/2" rebar found;  thence
North  40(degree)49'28"  West,  a distance of 290.92 feet to a 1/2" rebar set on
the Southeast right of way (R/W) line of Jones Bridge Road (R/W varies);  thence
following said R/W line North  40(degree)49'28" West, a distance of 8.93 feet to
a 1/2" rebar  found;  thence North  49(degree)24'30"  East, a distance of 269.76
feet to a point;  thence an arc  distance  of 375.03  feet  along a curve to the
right, said curve having a chord of North  49(degree)12'38" East 374.91 feet and
a radius of 4217.21  feet to a point;  thence  North  50(degree)41'25"  East,  a
distance of 284.85 feet to a 1/2" rebar set;  thence leaving said R/W line South
43(degree)17'02"  East, a distance of 241.60 feet to a 1/2" rebar found;  thence
South  31(degree)12'02"  East,  a distance of 269.95 feet to a 1/2" rebar found;
thence  South  43(degree)12'02"  East, a distance of 169.97 feet to a 1/2" rebar
found; thence South  35(degree)12'02"  East, a distance of 199.96 feet to a 1/2"
rebar found; thence South  35(degree)06'54" East, a distance of 125.15 feet to a
1/2" rebar found; thence South  22(degree)26'33" East, a distance of 160.21 feet
to a 1/2" rebar found; thence South  29(degree)19'38" East, a distance of 149.93
feet to a 1/2" rebar found;  thence South  37(degree)41'40"  East, a distance of
154.92  feet to a 1/2"  rebar  found;  thence  South  47(degree)58'48"  East,  a
distance of 164.89 feet to a 1/2" rebar  found;  thence  South  71(degree)07'02"
West,  a  distance  of  134.90  feet  to  a  1/2"  rebar  found;   thence  South
86(degree)52'02"  West, a distance of 299.77 feet to a 1/2" rebar found;  thence
South  79(degree)37'02"  West,  a distance of 124.91 feet to a 1/2" rebar found;
thence  North  73(degree)51'50"  West, a distance of 173.42 feet to a 1/2" rebar
set;  thence  South  87(degree)15'00"  West, a distance of 300.00 feet to a 1/2"
rebar set;  thence South  75(degree)00'00"  West, a distance of 190.00 feet to a
point in a lake; thence North  65(degree)22'41"  West, a distance of 207.50 feet
to a 1/2" rebar found; thence South  51(degree)09'57" West, a distance of 243.72
feet to a 1/2" rebar set;  thence  North  33(degree)05'48"  East,  a distance of
258.89 feet to a 1/2" rebar set; thence North  11(degree)54'35" West, a distance
of 33.74  feet to a 1/2"  rebar  set;  thence  North  56(degree)54'17"  West,  a
distance of 178.55 feet to the POINT OF BEGINNING.

Said  tract  contains  approximately  30.524  acres  as  shown on a plat of that
certain ATLA/ACSM Boundary Survey prepared for Roberts  Properties  Residential,
L.P.,  First  Union  National  Bank and  Fidelity  Title  Insurance  Company  by
Rochester & Associates,  Inc.,  bearing the seal and  certification  of James C.
Jones,  Georgia  Registered Land Surveyor No. 2298, dated January 14, 2000, last
revised May 1, 2000.

TOGETHER WITH, a non-exclusive right, title and interest in and to the easements
appurtenant  to the above  described  Tract  created  pursuant  to that  certain
Reciprocal Easement,  Restrictive Covenant and Covenant Agreement by and between
Fulton County, a political subdivision of the State of Georgia, Roberts Property
Jones Bridge,  L.L.C., a Georgia limited liability company, and Roberts Property
Residential, L.P., a Georgia limited partnership, dated December 22, 1999, filed
for record on December  27,  1999,  and  recorded at Deed Book 28224,  page 083,
Fulton County, Georgia records.

TOGETHER WITH, a non-exclusive right, title and interest in and to the easements
appurtenant  to the above  described  Tract  created  pursuant  to that  certain
Declaration  of Easements  by Roberts  Properties  Residential,  L.P., a Georgia
limited  partnership,  dated  October 19, 1999,  filed for record on October 21,
1999, and recorded at Deed Book 27850, page 046, Fulton County, Georgia records;
as amended by that  certain  First  Amendment  to  Declaration  of  Easements by
Roberts  Properties  Residential,  L.P.,  dated May 2, 2000,  recorded  or to be
recorded in the aforesaid records.

<PAGE>

                                    EXHIBIT B

                            (Permitted Encumbrances)

1.       Taxes and  assessments  for the year 2000 and subsequent  years, a lien
         not yet due and payable; and the lien of additional real property taxes
         by reason of increased or amended assessments.

2.       The following  matters  which are disclosed on that certain  Survey for
         Roberts Properties Residential, L.P., Fidelity National Title Insurance
         Company  and First  Union  National  Bank,  prepared by James C. Jones,
         Georgia  Registered  Land  Surveyor No. 2298 of Rochester & Associates,
         Inc., dated January 14, 2000, last revised May 1, 2000:

         (a) 25-foot  building  lines  located  along the southerly and westerly
         boundary lines of subject property;
         (b) 50-foot building line located along the northwesterly boundary line
         of subject property;
         (c) 50-foot undisturbed buffer line located along the northeasterly and
         southerly boundary lines of subject property;
         (d)  10-foot   development   setback  line  along  the   southerly  and
         northeasterly boundary lines of subject property;
         (e) 20-foot  sanitary  sewer  easement and 8-inch  sanitary  sewer line
         running  through  the  southerly   portion  of  subject   property  and
         traversing  the  westerly  and  southerly  boundary  lines  of  subject
         property;
         (f) three (3)  36-inch  corrugated  metal  pipes and an outlet  control
         structure traverses the southerly boundary line of subject property;
         (g) portion of lake  traverses the  southerly  boundary line of subject
         property;
         (h) portion of detention pond traverses the southerly  boundary line of
         subject property;
         (i)  encroachment  of three (3) 36-inch  corrugated  metal pipes and an
         outlet control  structure across the 10-foot  development  setback line
         along the southerly boundary of the subject property;
         (j) encroachment of wooden foot bridge onto subject property across the
         northeasterly boundary line of subject property which bridge is located
         southwest of Lot 25, The Forest, Unit I;
         (k) encroachment of wooden foot bridge onto subject property across the
         northeasterly boundary line of subject property which bridge is located
         southwest of Lot 26, The Forest, Unit I;
         (l) encroachment of wooden foot bridge onto subject property across the
         northeasterly boundary line of subject property which bridge is located
         southwest of Lot 65, The Forest, Unit IV;
         (m) encroachment of wooden foot bridge onto subject property across the
         southerly  boundary  line of subject  property  which bridge is located
         north of Lot 19, Abbotts Cove Subdivision;
<PAGE>

         (n)  encroachment  of  bridge  onto the  subject  property  across  the
         northeasterly boundary line of subject property which bridge is located
         southwest of Lot 29, The Forest, Unit I;
         (o)  encroachment  of block  retaining  wall onto the subject  property
         across the  northeasterly  boundary line of subject property which wall
         is located southwest of Lot 44, The Forest, Unit II;
         (p)  encroachment  of 6-foot  wooden  fence onto the  subject  property
         across the northeasterly  boundary line of subject property which fence
         is located southwest of Lots 42 and 43, The Forest, Unit II;
         (q)  encroachment  of playhouse  onto the subject  property  across the
         northeasterly  boundary  line of subject  property  which  playhouse is
         located southwest of Lot 28, The Forest, Unit I;
         (r) gravel  walkway  traverses the  southerly  boundary line of subject
         property;
         (s) power and telephone line located along the  northwesterly  boundary
         line of subject property;
         (t) creek meanders along the northeasterly and southerly boundary lines
         of subject property;
         (u) drainage facilities running throughout the subject property;
         (v) sanitary sewer lines running throughout the subject property;
         (w)  encroachment  of  sanitary  sewer  easement  across the  southerly
         boundary line of subject property.

3.       Right-of-Way  Easement from R.C. Vaughn to Sawnee  Electric  Membership
         Corporation, dated March 15, 1963, filed for record March 26, 1963, and
         recorded in Deed Book 4032, page 244, aforesaid records.

4.       Right-of-Way Easement from Benton A. Wood to Sawnee Electric Membership
         Corporation,  dated June 4, 1964,  field for record June 26, 1964,  and
         recorded in Deed Book 4256, page 561, aforesaid records.

5.       Right-of-Way   Easement  from  Wallace  T.  Hale  to  Sawnee   Electric
         Membership  Corporation,  dated  September  11, 1974,  field for record
         October 31, 1974, and recorded in Deed Book 6164,  page 173,  aforesaid
         records.

6.       Right-of-Way  Easement  from  Jeffrey  R.  Novak and Stacy G.  Novak to
         Sawnee Electric  Membership  Corporation,  dated August 23, 1983, filed
         for record  September  26, 1983,  and recorded in Deed Book 8661,  page
         201, aforesaid records.

         NOTE:  A  containment  letter has been  obtained  from Sawnee  Electric
         Membership   Corporation   stating  that  Sawnee  Electric   Membership
         Corporation  claims no further  interest in the Easements  described in
         Exceptions  3 through 6 hereof  except the right to operate,  maintain,
         rebuild  and  renew  its  existing   facilities  within  its  presently
         maintained rights of way.

<PAGE>

7.       Floor Plain Indemnification from Roberts Properties  Residential,  L.P.
         in favor of Fulton  County,  dated  August 18,  1998,  filed August 19,
         1998, recorded in Deed Book 24983, page 330, aforesaid records.

8.       Declaration of Easements by Roberts Properties Residential, L.P., dated
         October 19, 1999, filed October 21, 1999,  recorded in Deed Book 27850,
         page 046, aforesaid records; as amended by that certain First Amendment
         to Declaration of Easements by Roberts  Properties  Residential,  L.P.,
         dated May 2, 2000, recorded or to be recorded in the aforesaid records.

9.       Reciprocal Easement,  Restrictive Covenant and Covenant Agreement among
         Fulton County,  Roberts  Properties  Jones Bridge,  L.L.C.  and Roberts
         Properties Residential, L.P., dated December 22, 1999, recorded in Deed
         Book 28224,  page 83,  aforesaid  records;  as  affected  by  Affidavit
         deposed by Brian J. Sullivan,  dated February 3, 2000, recorded in Deed
         Book 28576, page 325, aforesaid records.

10.      Grant of Easements from Roberts Properties Residential, L.P. to Roberts
         Properties Jones Bridge,  L.L.C.,  dated May 2, 2000, recorded or to be
         recorded in the aforesaid records.

11.      Right-of-Way  Easement  from Roberts  Properties  Residential,  L.P. to
         Sawnee Electric Membership  Corporation,  dated February 5, 1999, filed
         April  26,  1999,  recorded  in Deed  Book  26823,  page 85,  aforesaid
         records.  (Affects only areas encumbered by either of the two easements
         appurtenant to the Phase II Property).

         NOTE:  A  containment  letter has been  obtained  from Sawnee  Electric
         Membership   Corporation   stating  that  Sawnee  Electric   Membership
         Corporation  claims no further  interest in the Easements  described in
         Exception 11 hereof except the right to operate,  maintain, rebuild and
         renew its existing facilities within its presently maintained rights of
         way.

12.      Easement  contained  in that  certain  Right-of-Way  Deed from  Roberts
         Properties  Residential,  L.P. to Fulton County, dated August 18, 1998,
         filed  September  21,  1998,  recorded  in Deed Book  25219,  page 141,
         aforesaid records. (Affects Appurtenant Easement only).

13.      Rights of tenants in  possession of  individual  apartment  units under
         unrecorded  leases,  as tenants  only.  (Affects  Appurtenant  Easement
         only).

14.      All matters shown on Plat of Survey for Roberts Properties Residential,
         L.P. and Fidelity  National Title  Insurance  Company by Jordan Jones &
         Goulding,  bearing the seal and  certification  of Charles H.  Jackson,
         Georgia Registered Professional Land Surveyor No. 2351, dated September
         23, 1999, last revised October 19, 1999, and all matters  subsequent to
         October  19,  1999 which may be  disclosed  by a current  and  accurate
         survey and  inspection  of the subject  property.  (Affects  only areas
         encumbered by either of the two easements  appurtenant  to the Phase II
         Property).
<PAGE>

15.      Rights  of upper  and lower  riparian  owners  in and to the  waters of
         lakes,  rivers,  creeks or branches  crossing or adjoining  the subject
         property,  and the  natural  flow  thereof,  free  from  diminution  or
         pollution.

<PAGE>

                                   EXHIBIT "C"

                              FURTHER STIPULATIONS

1.  Attorney's  Fees.  Whenever  reference is made to the payment of "attorneys'
fees," "reasonable  attorney's fees" or words of similar import in this Security
Deed and the Note, the Construction Loan Agreement and the other loan documents,
the same shall mean and refer to the payment of actual  attorney's fees incurred
based upon the attorney's normal hourly rate and the number of hours worked, and
not the statutory attorney's fees defined in O.C.G.A.ss.13-1-11.EXHIBIT 10.14.11

                        DESIGN AND DEVELOPMENT AGREEMENT

         This  Agreement  made as of the 24th day of June 1998,  by and  between
ROBERTS  PROPERTIES  RESIDENTIAL,  L.P.,  a  Georgia  limited  partnership  (the
"Partnership"),  and  ROBERTS  PROPERTIES,  INC.,  a  Georgia  corporation  (the
"Developer"),

                              W I T N E S S E T H:

         WHEREAS, the Partnership has acquired approximately 49.14 acres of land
at the  intersection  of Abbotts  Bridge Road and Jones  Bridge Road in Atlanta,
 Georgia (the "Property") as described in the 1998 Form 10-K of Roberts Realty
Investors,   Inc.,  (the  "10-K"),  and  the  Partnership  intends  to  develop,
construct,  own and  operate  on the  Property  a 405 unit  apartment  community
("Abbotts Bridge") consisting of 118 townhomes and 287 garden-style  apartments;
and

         WHEREAS,  the  Partnership  desires that the Developer  perform certain
advisory, administrative and supervisory services relating to the Partnership's
design, development and construction of Abbotts Bridge;

           NOW, THEREFORE, the parties hereto hereby agree as follows:

                                       1.

                                    Services

         The  Developer  will create and develop  Abbotts  Bridge and manage the
team of professionals involved,  including engineers, land planners,  architects
and  designers,  and manage the design team involved in developing  the interior
design and models,  as well as selecting the materials,  finishes,  features and
colors for Abbotts Bridge. The Developer shall also provide supervisory services
to ensure that Abbotts Bridge is built in accordance with the approved Plans and
Specifications provided.

                                       2.

                                  Compensation

         For the  above  services,  the  Developer  shall be paid a total of Two
Million Twenty-Five  Thousand Dollars  ($2,025,000),  payable upon demand by the
Developer.

         IN WITNESS WHEREOF,  the parties hereto have executed this agreement as
of the date first above written.

ROBERTS PROPERTIES RESIDENTIAL,           ROBERTS PROPERTIES, INC., a
L.P., a Georgia limited partnership       Georgia corporation

By:  Roberts Realty Investors, Inc.,       By: /s/ Charles S. Roberts
       its General Partner                    ----------------------------------
                                                   Charles S. Roberts, President

By:  /s/  Charles R. Elliott
     -------------------------------------------
     Charles R. Elliott, Chief Financial Officer

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