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HomeMy WebLinkAbout909566 RECEIVED 6/28/2005 at 4:11 PM RECEIVING # 909566 BOOK: 589 PAGE: 556 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY 0055 State of Wyoming Space Above This Line For Recording Date MORTGAGE (With Future Advm~ce Clause) 1. DATE AND PARTIES. The date of this Mortgage (Security Instrument) is June 10, 2005, and the parties, their addresses and tax identification numbers, if required, are as follows: MORTGAGOR: T. Eli Hale and Alan D. Yeaman, Both Married People 1242 N. Washington Alton, WY 83110 [] If checked, refer to the attached Addendum incorporated herein, for additional Mortgagors, their signatures and acknowledgments. LENDER: HOMESTEAD CAPITAL COMPANY, INC. 2. CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and secure the Secured Debt (def'med below.) and Mortgagor's performance under this Security Instrument, Mortgagor's grants, bargains, conveys, mortgages and warrants to Lender, with power of sale, the following described property: Lot 51 of Star Valley Ranch Plat 14, Lincoln County, Wyoming as described on the official plat thereof. The property is located in Lincoln County, Alta Drive, Thayne, WY 83127 Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, all water and riparian rights, ditches, and water stock and all existing and future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described above (all referred to as "Property"). 3. MAXIMUM OBLIGATION LIMIT:,~a~incipal amount secured by this Security Instrument at any one time shall not exceed(SI 75,000.~0. This limitation of amount docs not include interest and other fees and charges validly nlada.gll/,axm~t to this Security Instrument. Also, this limitation does not apply advances made under the terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. 4. SECURED DEBT AND FUTURE ADVANCES. The term "Secured Debt" is defined as follows: A. Debt incurred under the terms of all promissory note(s), contract(s), guaranty(s) or other evidence of debt described below and all their extensions, renewals, modifications or substitutions. (When referencing the debts below if suggested that you include items such as borrowers' names, note amounts, interest rates, maturity dates, etc.) B. All future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of debt executed by Mortgagor in favor of Lender executed after this Security Instrument whether or not this Security Instrument is specifically referenced, I more than one person signs this Security Instrument, cacti Mortgagor agrees that this Security Instrument will secure all future advances and future obligations that are given to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. All future advances and other future ',-00557 obligations are secured by this Security Instrument even though all or part may not yet be advanced. All future advances and other future obligations are secured as if made on the date of this Security Instrument. Nothing in this Security Instrument shall constitute a commitment to make additional or future loans or advances in an amount. Any such commitment must be agreed to in a separate writing, C. All obligations Mortgagor owes to Lender, which may later arise, to the extent not prohibited by law including, but not limited to, liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by Lender for insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Security Instrument. This Security Instrument will not secure any other debt if Lender fails to give any required notice of the right of rescission. 5. PAYMENTS. Mortgagor agrees that all payments under the Secured Debt will be paid when due and in accordant with the terms of the Secured Debt and this Security Instrument. 6. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to under any notices that Mortgagor receives from the holder. C. Not to allow any modification or extension of, nor to request any future advances under any note o agreement secured by the lien document without Lender's prior written consent. 7. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payment? ground rents, utilities, and oilier charges relating to the Property when due. Lender may require Mortgagor t provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment Mortgagor will defend title to the Property against any claims that would impair the lien of this Security Instrument Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor or materials to maintain or improve the Property. 8. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of. or contract for the creation of, any lien, encumbrance transfer or sale of the Property, This right is subject to the restrictions imposed by federal law (12 C.F.R. 591), a applicable. This covenant shall mn with the Property and shall remain in effect until the Secured Debt is paid in full and this Security Instrument is released. 9. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor shall not commit or allow any wash impairment, or deterioration of the Property. Mortgagor will keep the Property free of noxious weeds and grasses' Mortgagor agrees that the nature of the occupancy and use will not substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender's pr/or written consent. Mortgagor will notify Lender of all demands, proceedings, claims and actions again! Mortgagor, and of any loss or damage to the Property. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose c inspecting the Property. Lender shall give Mortgagor notice at the time of or before an inspection specifying reasonable purpose for the inspection. Any inspection of the Property shall be entirely for Lender's benefit an Mortgagor will in no way rely on Lender's inspection. 10. AUTHORITY TO PERFORM. If Mortgagor fails to perform any duty or any of the covenants contained in the Security Instrument, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. Lender's right to perform for Mortgagor shall not create an obligation to perforn~, and Lender's failure to perform will not preclude under from exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's security interest in the Property, including completion of the construction. 11. ASSIGNMENT OF LEASES AND RENTS. Mortgagor irrevocably grants, bargains, conveys, mortgages an warrants to Lender as additional security all the right, title and interest in and to any and all existing or future leases, subleases, and any other written or verbal agreements for the use and occupancy of any portion of the Property, including any extensions, renewals, modifications or substitutions of such agreements (all referred to i "Leases") and rents, issues and profits (all referred to as "Rents"). Mortgagor will promptly provide Lender wit true and correct copies of all existing and future .00555 leases. Mortgagor may collect, receive, enjoy and use the Rents 5 long as Mortgagor is not in default under the terms of this Security Instrument. Mortgagor agrees that this assignment is immediately effective between the parties to this Security Instrument Mortgagor agrees that this assignment is effective >>s to third parties when Lender takes affirmative action prescribed by law, and that this assignment will remain in effect during any redemption period until the Secure Debt is satisfied. Mortgagor agrees that Lender may take actual possession of the property without the necessity i commencing legal action and that actual possession is deemed to occur when Lender, or its agent, notifies Mortgagor of default and demands that any tenant pay all future Rents directly to Lender. On receiving notice of default, Mortgagor will endorse and deliver to under any payment of Rents in Mortgagor's possession and will receive any Rents in trust for Lender and will not commingle the Rents with any other funds. Any amount collected will be applied as provided in this Security Instrument. Mortgagor warrants that no default exists und the Leases or any applicable landlord/tenant law. Mortgagor also agrees to maintain and require any tenant comply with the terms of the Leases and applicable law. 12. LEASEHOLDS; CONDOMINIUMS, PLANNED UNIT DEVELOPMENTS. Mortgagor agrees to comply with the provisions of any lease if this Security Instrument is on a leasehold. If the Property includes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor's duties under the covenants, by-laws, or regulations of the condominium or planned unit development. 13. DEFAULT. Mortgagor will be in default if any party obligated on the Secured Debt fails to make payment when due. Mortgagor will be in default if a breach occurs under the terms of this Security Instrument or any other document executed for the purpose of creating, securing or guarantying the Secured Debt. A good faith belief by Lender that Lender at any time is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment or the value of the Property is impaired shall also constitute an event of default. 14. REMEDIES' 'ON DEFAULT. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if Mortgagor is in default At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies provided by law, the terms of the Secured Debt. this Security Instrument and any related documents including, without limitation, the power to sell the Property. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lendei of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require complete cure of any existing default. By not exercising any remedy on Mortgagor's default. Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 15. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law. Mortgagor agrees to pay all of Lender's expenses if Mortgagor breaches any covenant in this Security Instrument. Mortgagor will also pay on demand any amount incurred by Lender for insuring, inspecting, preserving or otherwise protecting the Property and Lender's security interest. These expenses will bear interest from the date of the payment until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Mortgagor agrees to pay all costs and expenses incurred by Lender in collecting, enforcing or protecting Lender's rights and remedies under this Security Instrument. This amount may include, but is not limited to. reasonable attorneys' fees, court costs, and other legal expenses. This amount does not include attorneys' fees for a salaried employee of the Lender. This Security Instrument shall remain in effect until released. Mortgagor agrees to pay for any recordation costs of such release. 16. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C 9601 et seq.), and all other federal, state and local laws. regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public 00553 health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances." "hazardous waste" or "hazardous substance" under any Environmental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous Substance is or will be located, stored or released on or in the Property. This restriction does not apply to small quantities of Hazardous Substances that are generally recognized to be appropriate for the normal use and maintenance of the Property. B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are, and shall remain in full compliance with any applicable Environmental Law. C. Mortgagor shall immediately notify Lender if a release or threatened release of a Hazardous Substance occurs on, under or about the Property or there is a violation of any Environmental Law concerning the Property. In such an event Mortgagor shall take all necessary remedial action in accordance with any Environmental Law. D. Mortgagor shall immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any pending or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous Substance or the violation of any Environmental Law. 17. CONDEMNATION. Mortgagor will give Lender prompt notice of any pending or threatened action, by private or public entities to purchase or lake any or all of the Property through condemnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. 18. INSURANCE. Mortgagor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably associated with the Property due to its type and location. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property according to the terms of this Security Instrument. All insurance policies and renewals shall be acceptable to Lender and shall include a standard "mortgage clause" and, where applicable, "loss payee clause." Mortgagor shall immediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of paid premiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance carrier and Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless otherwise agreed in writing, all insurance proceeds shall be applied to the restoration or repair of the Property principal shall not extend or postpone the due date of the scheduled payment nor change the amount of an; payment. Any excess will be paid to the Mortgagor. If the Property is acquired by Lender. Mortgagor's right to an: insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender t< the extent of the Secured Debt immediately before the acquisition. 19. ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 20. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor will provide to Lender upon request any financial statement or information Lender may deem reasonably necessary. Mortgagor agrees to sign, deliver and file any additional documents or certifications that tender may consider necessary to perfect, continue, am preserve Mortgagor's obligations under this Security Instrument and Lender's lien status on the Property. 21. JOINT AND INDIVIDUAL LIABILITY} CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Security Instrument are joint and individual. If Mortgagor signs this Security Instrument but does not sign an evidence of debt, Mortgagor docs so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. If this Security Instrument secures a guaranty between Lender and Mortgagor, Mortgagor agrees to waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation these rights may include, but are not limited to, any anti-deficiency or one-action laws. Mortgagor agrees that Lender and any party to this Security Instrument may extend, modify or make any change in the terms of the Security Instrument or any evidence of debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Security Instrument. The duties and benefits of this Security Instrument shall bind and benefit the successors and assigns of Mortgagor and Lender. CONSTRUCTION LOAN AGREEMENT THIS AGREEMENT, made this ..... 10th ....... day of ............... June ........................... 2005 ........... by and between .................................... Eli Hale and Alan D. Yeaman, Both Married People ....................................................... .................................................................................................................................................................................. ("Borrower") and ............................... Homestead Capital Company, Inc ..................................................................... ("Lender"), a corporation organized and existing under the laws of the State of ......... Nebraska .......................... WITNESSETH THAT: WHEREAS, the following facts are true: 1. Borrower is the owner of certain real estate (the "Real Estate") located in ............. Lincoln .............. County, State of ........ Wyoming .............. the legal description of which is set forth in Exhibit "A" attached hereto and made a part hereof by reference. 2. Borrower is contemporaneously herewith executing and delivering to Lender a Note (the "Note") and a Security Instrument (the "Security Instrument") securing the Note which evidence a Loan to Borrower (the "Loan") in the amount of ................. .............. One Hundred Seventy Five Thousand Dollars .................................. ($ ........... 175,000.00 ........ ) (the "Loan Amount"), for construction financing to enable Borrower to erect a dwelling upon the Real Estate (such dwelling and any related facilities shall be referred to as the "Building", and the Building and Real Estate shall be collectively referred to as the "Premises"), in accordance with the plans and specifications approved by Lender and the City or County of ......................... Lincoln ............................... NOW, THEREFORE, in consideration of the Premises and of each act to be done by the parties hereunder and the mutual covenants and conditions hereinafter contained, the parties hereby agree as follows: 1. Through ....................... July 10 ................ 2006 .... (the "Construction Period"), Lender will disburse the Loan amount to BorrowedBuilder by not more than ........ One Hundred Seventy Five Thousand Dollars ............ ($ ...... 175,000.00 .......... ) partial advances to be made upon request by Borrower/Builder, but only according to the schedule of disbursements. A disbursement requested by Borrower/Builder will not be made unless and until Lender is satisfied that: a. So much of the Building has been completed as is required by the Draw Schedule for the disbursement requested by Borrower and the total amount disbursed on the Loan after the requested disbursement is made does not exceed 80% of the value of the construction then in place; b. The Building is being constructed in accordance with the plans and specifications approved by Lender, the Construction Agreement between Borrower and Borrower's contractor (the "Construction Agreement"), and applicable building codes; c. All required approvals and certificates of government agencies have been obtained; d. On or before the date the requested disbursement is made, Borrower will have paid any sums required by the Draw Schedule in connection with such disbursement or otherwise required by this agreement; e. The Title Insurance Commitment or Policy for the Premises has been brought down to the date of such advance and shows nothing adversely affecting the priority of Lender's Security Instrument lien; f. The Building can be completed within the remaining time of the Construction Period; g. The undisbursed proceeds of the Loan plus the cash required from Borrower are sufficient to pay for the completion of the Building; h. There are no unpaid claims for labor, material, or services for which a claim has been made under any provision of the mechanic's lien laws of ............ Wyoming ................... ; and i. The Loan, this Agreement and the Construction Agreement are not otherwise in default. Any inspections by Lender of the Premises will be solely for Lender's benefit. Borrower understands and agrees that it is not relying on Lender to supervise or inspect the construction of the Building for Borrower's benefit and that Lender is not liable in any manner to Borrower even if the Building is not constructed in accordance with the plans and specifications or the Construction Agreement. 2. REPAYMENT OF THE LOAN Amounts advanced during the Construction Period will be added to the then outstanding principal balance on the Loan which will bear interest at the rate specified in the Note. Interest will accrue daily on the outstanding principal balance, with all principal and accrued interest due and payable in full on or before ............ July 10, 2006 ................ 3. INSUFb~.NCE The Borrower will furnish to Lender, premiums prepaid, insurance policies in companies, coverage and amounts satisfactory to Lender, insuring the premises against loss or damage by fire and other hazards, worker's compensation coverage, and public liability coverage, with appropriate mortgage clauses attached to such policies showing the interest of Lender. 4. SURVEY The Borrower must furnish to Lender a survey of the Premises showing no encroachment by any improvement constructed on the Premises or any adjoining property, street, alley, water course or public way, and showing no encroachment on the Premises by any other building, structure, or improvement of any kind. The survey must be prepared by a licensed surveyor and be in a form and content in all respects satisfactory to Lender. Until construction of the Building is completed, the survey must be amended and recertified by the surveyor, whenever requested by the Lender, to show the location of the improvements as constructed. 5. CHANGE ORDERS Borrower will provide to Lender copies of all change orders for work, or substitution of materials. Borrower will not permit the contractor to do any work not called for by the Construction Agreement until a written change order has been signed by Borrower and the contractor and Lender. Lender may object to any change order if Lender believes that the change if made, will adversely affect the value of the premises as security or will cause the completion of the Building to be delayed beyond the end of the Construction Period, or that Borrower does not have sufficient funds to pay for such change in cash. Borrower agrees to pay for all changes as work is performed to otherwise satisfy Lender that such work will be paid for in ordinary course. 6. REPRESENTATIONS AND WARRANTIES OF BORROWER "- 0 0 5 6 ~ Borrower warrants and represents to Lender that: a. There are no encroachments on the Real Estate, and any improvements on the Real Estate, including the Building, are and will be located entirely within its boundaries. b. The Real Estate is properly zoned, and its intended use complies with the uses permitted by such zoning. PROMISES OF BORROWER Borrower agrees that Borrower will: a. Cause the Building to be constructed and erected on the Real Estate in strict compliance with all Laws and ordinances, in a good and workmanlike manner, with materials and workmanship of the highest quality, and in strict accordance with the plans and specifications submitted to and reviewed by Lender. b. Furnish to Lender, within thirty (30) days after a demand by Lender, any and all additional security instruments or other docu- ments which may be required or necessary or appropriate to maintain or perfect the security of Lender in the Premises. c. Not create or permit to exist any security instrument, lien or other encumbrance on the Premises until the Loan is fully disbursed. 8. ADDITIONAL FUNDS FROM BORROWER If at any time during the Construction Period Lender determines that the undistributed balance of the Loan proceeds, or of insurance or condemnation proceeds in the case of casualty or condemnation and the election of Borrower to repair, rebuild, and replace the Premises as permitted pursuant to the Security Instrument, are not sufficient to complete the Building in accordance with the plans and specifications, Borrower agrees to promptly deposit with Lender sufficient sums to insure completion of the Building in accordance with the plans and specifications. Such sum shall be held by Lender and disbursed by Lender from time to time for the payment of labor and materials incurred in connection with the construction of the Building. Such sums shall be disbursed prior to any further disbursements of the Loan proceeds or, at the option of Lender, may be applied to the principal balance then outstanding on the Loan. 9. CERTIFICATE OF OCCUPANCY The borrowers will be required to provide the lender a copy of the certificate of occupancy and paid homeowners insurance binder before occupying the home. If the borrower is building in an area where no occupancy certificate is issued the borrower will not be allowed to move into the home until a permanent thirty year mortgage is place on the property and the borrower has repaid the lender in full. 10. EVENTS OF DEFAULT The following shall be events of default by Borrower under the terms of this Agreement: a. Failure to pay accrued interest when due, during the Construction Period; or b. The occurrence of an event of default under the Note or the Security Instrument; or c. Failure in the observance or performance by Borrower of any of the covenants and conditions set forth in this Agreement; or d. If any representation or warranty made by Borrower herein or in any of the documents executed by Borrower in connection with the Loan or its disbursement under this Agreement shall prove untrue; or e. If the construction on the Building is at any time unreasonably discontinued or not carried on with reasonable dispatch in the judgment of Lender; or f. If the Building is, in Lender's judgment, not being constructed in accordance with either the plans or specifications approved by Lender or applicable building codes; or g. Failure to complete construction of the Building during the Construction Period, including any extensions agreed to by the Lender in writing. In the event that any of the above-mentioned acts of default occurs, Lender may immediately terminate this Agreement, and Lender may declare the Note due and payable without further notice of any kind, anything contained herein or in the Note to the contrary notwithstanding, and the Security Instrument and any other security instruments may forthwith be foreclosed or otherwise enforced in accordance with the terms of such instrument. In addition, Lender may assume control of the construction, make payments directly to those persons providing labor, materials, or services for the construction of the Building, and take all steps it considers necessary or appropriate to complete the construction or to otherwise protect its security and any amounts expended by Lender shall be secured by the Security Instrument. These remedies are in addition to any other remedies available to Lender at law or in equity. 11. COLLATERAL The Collateral shall consist of the following goods and property: All buildings, structures, goods, equipment, inventory, furniture, furnishings, tangible personal property, fixtures, accounts, contract rights, chattel paper, and general intangibles which are or may hereafter be located on or relate to the real property described below as well as collateral which is more particularly described as: Alta Drive, Thayne WY 83127 . Legal Description is Lot 51 of Star Valley Ranch Plat 14, Lincoln County, Wyoming as described on the official plat thereof. a. All monies or instruments pertaining to the collateral describe above; b. All proceeds and products of the Collateral described above as well as any replacements, accessions, substitutions and additions to the Collateral; and c. All supporting obligations of any of the above. 12. GENERAL PROVISIONS a. Neither the failure to exercise nor any delay on the part of Lender in exercising any right, power or privilege or any single of partial exercise of any right, power of privilege under this Agreement, nor under any of the documents executed by Borrower in connection herewith, shall preclude any further exercise thereof by Lender of the exercise of any other right, power or privilege. b. No modifications or waiver of any provision of this Agreement shall be effective unless in writing, and then only in the specific instance for which it is given. c. This Agreement shall be deemed to be a contract made in the State of ......................... Wyoming .......................... and entered into, under and pursuant to federal taw and the laws of such state, and to be governed, construed and enforced in accordance with such laws. 13. WAIVER OF JURY TRIAL Each party to this agreement hereby expressly waives any right to trial by jury of any claim, demand, action or cause of action (1) arising under this agreement or any other instrument, document or agreement executed or delivered in connection herewith, or (2) any way connected with or related or incidental to the dealings of the parties hereto or any of them with respect to this agreement or any other instrument, document or agreement executed or delivered in connection herewith, 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 each party 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 any party to this agreement may file an original counterpart of a copy of this section with any court as written evidence of the consent of the parties hereto the waiver of their right to trial by jury. IN WITNESS WHEREOF, this Agreement has been executed the day and year first above written. Contractor's Consent: Contractor agrees to accept payment for construction in the amounts and according to the draw schedule. Payments are subject to the conditions set fourth in the Construction Loan Agreement of which this is a part, notwithstanding anything in the Construction Loan Agreement to the contrary. EXHIBIT "A" Borrower: Eli Hale Lender: (SSN: 520-17-0559) and Alan D. Yeaman (SSN: 546-78-2403) 1242 N. Washington Afton, WY 83127 Homestead Capital Company, Inc. 104 W. 1st Street Wayne, NE 68787 This EXHIBIT "A" is attached to and by this reference is made a part of the Construction Loan Agreement, dated .......... June 10 .............. 20..05..., and executed in connection with a loan or other financial accommodations between HOMESTEAD CAPITAL COMPANY, INC., OF WAYNE, NE and ELI HALE AND ALAN D. YEAMAN, BOTH MARRIED PEOPLE. LEGAL DESCRIPTION: Lot 51 of Star Valley Ranch Plat 14, Lincoln County, Wyoming as described on the official plat thereof. THIS EXHIBIT "A" IS .EXECUTED ON ..................... June 10 ...................... ,20 ..05.. BORROWERS: LENDER: HOMESTEAD CAPITAL COMPANY, INC. Alan I~i' ~'~'~'r~b~--~ ............................ By: ..................... Angie Ohlrich ......................................... 22. APPLICABLE LAW; SEVERABIUTY; INTERPRETATION. This Security Instrument is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise required by the laws of the jurisdiction where the Property is located. This Security Instrument is complete and fully integrated. This Security Instrument may not be amended or modified by oral agreement. Any section in this Security Instrument, attachments, or an) agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that taw expressly or impliedly permits the variations by written agreement. If any section of this Security Instrument cannot be enforced according to its terms, that section will he severed and will not affect the enforceability of the remainder of this Security Instrument. Whenever used, the singular shall include the plural and the plural the singular. The captions and headings of the sections of this Security Instrument are for convenience only and are not to be used to interpret or define the terms of this Security Instrument. Time is of the essence in this Security Instrument. 23. NOTICE. Unless otherwise required by law, any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Security Instrument, or to any other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 24. WAIVERS. Except to the extent prohibited by law, Mortgagor waives any right regarding the marshalling of liens and assets and all homestead exemption rights relating to the Property. 25. OTHER TERMS. If checked, the following are applicable to this Security Instrument: [] Line of Credit. The Secured Debt includes a revolving line of credit provision. Although the Secured Debt may be reduced to a zero balance, this Security Instrument will remain in effect until released. [] Construction Loan. This Security Instrument secures an obligation incurred for the construction of an improvement on the Property. tn Fixture Filing. Mortgagor grants to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Property. This Security Instrument suffices as a financing statement and any carbon, photographic or other reproduction may be filed of record for purposes of Article 9 of the Uniform Commercial Code. [] Riders. The covenants and agreements of each of the riders checked below are incorporated into and supplement and amend the terms of this Security Instrument. (Check all applicable boxes] n Condominium Rider "Planned Unit Development Rider nOther ............................................ [] Additional Terms. SIGNATURES: By signing below, Mortgagor agrees to the terms and covenants contained in this Security Instrument and in any attachments. Mortgagor also acknowledges receipt of a copy of this Security Instrument on the date stated on page 1. ACKNOWLEDGEMENT: June 10, 2005 Alan D. Y~ June 10, 2005 STATE OF WYOMING , COUNTY OF This in~qar~en[ ~as,acknowledged before me this / ~ ~ by ~ l t~lOatC My commission expires: ~ LINCOLN }ss. day of --](Axx~x_. 2005 8HELI. EY 8Y~DAJ.. · NOTARY PU6UC ..00565 State of Kansas ) ) SS. County of Wyandotte ) This instrument wasacr, now~ec~gec~-- '' ' before me on by ~[C] FI ~. XJ~C~ f'Y-)OFl~ '"- Name of Signer{s) Date My appointment expires: }*//,/')f] ................................................... OPTIONAL ................................................... Though the information in this section is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type ofDocument: ~Gfqt~C4¢~f_.~ X00CUcF~F3~L Document Date: (_O /~)[O ~ N, umber of Pages ] Signer(s) Other Than Named Above: ¢OFI¢_