HomeMy WebLinkAbout913591
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51136
RECORDATION REQUESTED BY:
The Jackson State Bank & Trust
West Office
P.O. Box 1788
50 Buffalo Way
Jackson, WY 83001
WHEN RECORDED MAIL TO:
The Jackson State Bank & Trust
West Office
P.O. Box 1788
50 Buffalo Way
Jackson, WY 83001
SEND TAX NOTICES TO:
The Jackson State Bank & Trust
West Office
P.O. Box 1788
50 Buffalo Way
Jackson, WY 83001
RECEIVED 11/10/2005 at 10:42 AM
RECEIVING # 913591
BOOK: 604 PAGE: 370
JEANNE WAGNER
LINCOLN COUNTY CLERK, f<EMMERER, WY
SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY
MORTGAGE
MAXIMUM LIEN. The lien of this Mortgage shall not exceed at anyone time $50,000.00.
THIS MORTGAGE dated November 7, 2005, is made and executed between David Pearce and Melanie Pearce,
husband and wife, whose address is P.O. Box 3246, Alpine, WY 83128 (referred to below as "Grantor") and The
Jackson State Bank & Trust, whose address is P.O. Box 1788, 50 Buffalo Way, Jackson, WY 83001 (referred to
below as "Lender").
GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all of Grantor's right, title, and interest in and to
the following described real property, togetller with all existing or subsequently erected or affixed buildings, improvements and fixtures; all eaSelllGnts,
rights of way, and appurtenances; all water, water rights, watercourses and ditch rights (including stock in utilities willi ditch or irrigation rights); and all
other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the
"Real Property") located in Lincoln County, State of Wyoming:
Lot 35 of Trail Ridge Subdivision, Lincoln County, Wyoming according to that plat filed Octover 21, 2003 in
the office of the Lincoln County Clerk as Plat No. 225-E.
The Real Property or its address is commonly known as Lot 35, Lynx Trail, Alpine, WY 83128.
Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of tile Property and all Rents from the
Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents.
THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS
GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE,
THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:
PA YMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to '_Gnder all amounts secured by tllis Mortgage
as they become due and shall strictly periorm all of Grantor's obligatio. IS under this Mortgage.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the
following provisions:
/1 c,;- Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use,
LJ operate or manage the Property; and (3) collect the Rents from the Property.
Duty to Maintain. Grantor shall maintain tile Property in good condition and promptly periorrn all repairs, replacements, and maintenance
necessary to preserve its value.
Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) D'Jring the period of Grantor's ownership of the
/0 I Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
j Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been,
except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use,
generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from tile
Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating
to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant,
contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous
Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state,
and local laws, regulations and ordinances, including Witllout limitation all Environmental Laws. Grantor authorizes Lemler and its agents to enter
upon the Property to make such inspections and tesls, at Grantor's expense, as Lender may deem appropriate to determine compliance of the
Property with this section of the Mortgage. Any inspections or tests mac!e by Lender shall be for Lender's purposes Conly and shall not be
construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties
contained Ilerein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and
waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any
such laws; and (2) agrees to indemnify and hold harmless Lemler against any and all claims, losses, liabilities, damages, penalties, and expenses
which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Morlgage or as a consequence of any use,
generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property,
whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, inclucling the obligation to
indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be
affected by Lender's acquisition of any interest in the Property, whelher by foreclosure or otherwise.
Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the
Property or any portion of the Property. Without limiting tile generality of the foregoing, Grantor will not remove, or grant to any other party the
right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent.
Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written
consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arran~ ements satisfactory to Lender to replace
such Improvements with Improvements of at least equal value.
Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to
Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage.
Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in
effect, of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest in good faith any such law,
ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in
writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender lTIay require
Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set
forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property.
CONSTRUCTION LOAN. If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete construction of
any Improvements on the Property, the Improvements shall be completed no later than the maturity (late of tile Note (or such earlier date as Lender
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MORTGAGE
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may reasonably establish) and Grantor shall pay in full all costs and expenses in connection witil tile work. Lender will disburse loan proceeds under
such terms and conditions as Lender may deem reasonably necessary to insure that tile interest created by this Mortgage shall ilave priority over all
possible liens, including those of material suppliers and workmen. Lender may require, among otiler things, that disbursement requests be supported
by receipted bills, expense affidavits, waivers of liens, construction progress reports, and such other documentation as Lender may reasonably request.
DUE ON SALE· CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by tilis Mortgage
upon the sale or transfer, without Lender's prior written consent, 01 all or any part of the Real Property, or any interest in the Real Property. A "sale or
transfer" means tile conveyance of Real Property or any rigl1t, title or interest in tile Real Property; whether legal, beneficial or equitable; whether
voluntary or involuntary; wiletl1er by outrigllt sale, deed, installment sale contract, land contract, contract for deed, leasellold interest witll a term greater
than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real
Property, or by any other method of conveyance of an interest in the Real Property. However, this option silall not IJe exercised by Lender if such
exercise is prohibited by federal law or by Wyoming law.
TAXES AND LIENS. The following provisions relating to the taxes a..d iiens on [he Property are part ot this Mortgage:
Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges
and sewer service cl1arges levied against or on account of the Property, and silall pay when due all claims for work clone on or for services
rendered or material furnished to the Property. Grantor shall maintain tile Property free of any liens having priority over or equal to the interest of
Lender under this Mortgage, except for the Existing Indebtedness referred to in this Mortgage or tllose liens specifically agreed to in writing by
Lender, and except for tile lien of taxes and assessments not due as further specified in the Right to Contest paragraph.
Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to
pay, so long as Lender's interest in the Prop8l1y is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen
(15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of tile filing, secure the discharge of tile lien, or if
requested by Lender, deposit with Lender cash or a sufficient corporate suret\' bond or other security satisfactory to Lender in an amount sufficient
to discharge tile lien plus any costs and reasonable attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under
the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property.
Grantor silallname Lender as an additional obligee under any surety bond furnished in tile contest proceedings.
Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
authorize the appropriate governmental official to deliver to Lender at any time a written statement of tile taxes and assessments against the
Property.
Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any
materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services,
or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the
cost of such improvements.
PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring tile Proper1y are a part of this Mortgage:
Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a
replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any
coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies and in such
form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a
stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days prior writ1en notice to Lender and not containing
any disclaimer of tile insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that
coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real
Property be located in an area designated by tile Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor
agrees to obtain and maintain Federal Flood Insurance, if available, witilin 45 days after notice is given by Lender that tile Property is located in a
special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the
maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to mUlr1tain SUCll insurance for
the term of the loan.
Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor
fails to do so within fifteen (15) days of the casualty. Wt1ether or not Lender's security is impaired, Lender may, at Lender's election, receive and
retain the proceeds of any insurance and apply tile proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or
the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor sl1all repair or replace the
damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, payor
reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Morigage. Any proceeds
which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of tile Property
shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, it any, sllall be
applied to tile principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of tile Indebtedness, such proceeds shall
be paid to Grantor as Grantor's interests may appear.
Compliance with Existing Indebtedness. During tile period in wllich any Existing Indebtedness described below is in effect, compliance witl1 the
insurance provisions contained in the instrument evidencing such Existing Indebtedness sllall constitute compliance with the insurance provisions
under this Mortgage, to the extent compliance witll the terms of this Mortgage would constitute a duplication of insurance requirement. If any
proceeds from the insurance become payable on loss, the provisions in this Mortgage for division of proceeds shall apply only to that portion of
the proceeds not payable to the Ilolder of the Existing Indebtedness.
LENDER'S EXPENDITURES. If Grantor fails (A) to keep tile Property free of all taxes, liens, security interests, encumbrances, and other claims, (B)
to provide any required insurance on the Property, (C) to make repairs to tile Property or to comply witll any obligation to maintain Existing
Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding is commenced Hlat would materially affect
Lender's interests in the Property, then Lender on Grantor's behalf may, but is not required to, take any action tllat Lender believes to be appropriate to
protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear interest at tile rate charged under tile Note from
the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's
option, will (A) be payable on demand; (B) be added to the balance of tile Note and be apportioned among and be payable with any installment
payments to become due during either (1) ttle term of any applicable insurance policy; or (2) the remaining term of tile Note; or (C) be treated as a
balloon payment which will be due and payable at the Note's maturity. Tile Mortgage also will secure payment of tllese amounts. Tile rights provided
for in tllis paragraph sllall be in addition to any other rigllts or any remedies to whicll Lender may be entitled on account of any default. Any such
action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otllerwise would have had.
WARRANTY; DEFENSE OF TITLE. Ttle following provisions relating to ownership of the Property are a part of this Mortgage:
Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and
encumbrances other than tllose set forth in the Real Property descliption or in the Existing Indebtedness section below or in any title insurance
policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full
rigllt, power, and authority to execute and deliver this Mortgage to Lender.
Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against tile
lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under tllis
Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be
entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or
cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation.
Compliance With Laws. Grantor warrants that ttle Property and Grantor's use of the Property complies with all existing applicable laws,
ordinances, and regulations of governmental authorities.
Survival of Promises. All promises, agreements, and statements Grantor has made in this Mortgage shall survive the execution and delivery of
tllis Mortgage, shall be continuing in nature and sl1all remain in full force and effect until such time as Grantor's Indebtedness is paid in full.
EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Mortgage:
Existing Lien. The lien of this Mortgage securing ttle Indebtedness may be secondary and inferior to an existing lien. Grantor expressly
covenants and agrees to pay, or see to tile payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any default
under the instruments evidencing such indebtedness, or any default under any security documents for such indebtedness.
No Modification. Grantor shall not enter into any agreement with the holder of any mor1gage, deed of trust, or other security a!Jreement which
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Loan No: 33056248
MORTGAGE
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has priority over this Mortgage by which that agreement is modified, amended, extended, or renewed without the prior written consent of Lender.
Grantor shall neither request nor accept any future advances under any suct) security agreement without (he prior written consent of Lemler.
CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage:
Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such
steps as may be necessary to defend the action and obtain tile award. Grantor may be the nominal pal1y in such proceeding, but Lender shall be
entitled to participate in the proceeding and to be represented in tile proceeding by counsel of its own clloice, and Grantor will deliver or cause to
be delivered to Lender SUCll instruments and documentation as may be requested by Lender from time to time to permit SUCll participation.
Application of Net Proceeds. If all or any part of tile Property is condemned by eminent domain proceedings or by any proceeding or purchase
in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of tile award be applied to the Indebtedness
or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses,
and attorneys' fees incurred by Lender in connection with tile condemnation.
IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees
and charges are a part of tllis MOllgage:
Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take
whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor sllall reirnburse Lender for all
taxes, as described below, together with all expenses incurred in recording, perfecting or continuing tllis Mortgage, including without limitation all
taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage.
Taxes. The following shall constitute taxes to whicll this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of
the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on
the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note;
and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor.
Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same
effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor
either (1) pays the tax before it becomes delinquent, or (2) contests tile tax as provided above in the Taxes and Liens section and deposits with
Lender cash or a sufficient corporate surety bond or otller security satisfactory to Lender.
SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this
Mor1gage:
Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall
have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time.
Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lencler's security
interest in the Personal Property. In addition to recording this Mortgage in the real property r(ò.cords, Lender may, at any time and without further
authorization from Grantor, file executed counterparts, copies or reproductions of this MortgaY8 as a financing statement. Grantor shall reimburse
Lender for all expenses incurred in perfecting or continuing tI)is security interest. Upon default, Grantor shall not remove, sever or detach the
Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a
place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from
Lender to the extent permitted by applicable law.
Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest
granted by this Mortgage may be obtained (each as required by tile Uniform Commercial Code) are as stated on the first page of this Mortgage.
FURTHER ASSURANCES; ATTORNEY-iN-FACT. The following provisions relating to further aSSUlal..uS and attorney-in-fact are a part of this
Mortgage:
Further Assurances. At any time, and from time to time, upon request of Lend\3r. Grantor will make, execute c¡nd deliver, or will cause to be
made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or
rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages,
deeds of trust, security deeds, security agreements, financing statemGnts, continuation statements, instrumGnts of furtller assurance, certificates,
and otller documents as may, in tile sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or
preserve (1) Grantor's obligations under the Note, this Mortgage, and the Related Documents, and (2) tile liens and security interests created
by this Mortgage on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the
contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph.
Attorney-In-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor
and at Grantor's expense, For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of
making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to
accomplish the matters referred to in the preceding paragraph.
FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this
Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing
statement on file evidencing Lender's security interest in tile Rents and the Personal Property. Grantor will pay, if perrnilted by applicable law, any
reasonable termination fee as detellnined by Lender from time to time.
EVENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Mortgage if any of the following happen:
Payment Default. Grantor fails to make any payment wilen due under the Indebtedness.
Defautt on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any
otller payment necessary to prevent filing of or to effect discharge of any lien.
Break Other Promises. Grantor breaks any promise miJde to Lender or fails to perform promptly at the time and strictly in the manner provided in
this Mortgage or in any agreement related to this Mortgage.
Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement,
or any other agreement, in favor of any other creditor or person tlmt may materially affect any of Grantor's propelty or Grantor's ability to repay the
Indebtedness or Grantor's ability to perform Grantor's obligations under this Mortgage or any related document.
False Statements. Any representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the
Related Documents is false or misleading in any material respect, either now or at the time made or furnished.
Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral
document to create a valid and perfected security interest or lien) at any time and for any reason.
Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency
laws by or against Grantor.
Taking of the Property. Any creditor or govemmental agency tries to take any of tile Property or any otiler of Grantor's ¡Jropeiiy in which Lender
has a lien. This includes taking of, garnislling of or levying on Grantor's accounts with Lender. However, if Grantor disputes in good faith wllether
the claim on which the taking of the Property is based is valid or reasonable, and if Grantor gives Lender written notice of the claim and fumislles
Lender with monies or a surety bond satisfactory to Lender to satisfy tile claim, then this default provision will not apply.
Existing Indebtedness. The payment of any installment of principal or any interest on the Existing Indebtedness is not made within t!)e time
required by the promissory note evidencing such indebtedness, or a default occurs under the instrument securiny such imjetJtedness and is not
cured during any applicable grace period in such instrument, or any suit or other action is commGnced tc foreclose any existing lien on the
r roperty,
Breach of Other Agreernent. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied
witl)in any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obliyation of Grantor to
Lender, whether existing now or later.
Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any
of the Inclebtedness or any guarantor, endorser, surety, or accommodation party dies or IJecomes incompetent, or revokr¡s or diè;putes the validity
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of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option, may, but shall not be required to, permit the
guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure
any Event of Default.
Right to Cure. If any default, other tllan a default in payment is curable and if Grantor Ilas not been given a notice of a breacll of the same
provision of this Mortgage within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender
demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately
initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the d¡,fault and thereafter confinues and completes all
reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.
RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter but subject to any limitation in the
Note or any limitation in this Mortgage, Lender, at Lender's option, may eXGrcise anyone or more of the following rights and remedies, in addition to
any other rights or remedies provided by law:
Acce!erate !ndebtednei>s. Lender sÎlall ilave the right at its option without notice to Grantor to declare the entire InrJebtedness immediately due
and payable, including any prepayment penalty which Grantor would be required to pay.
UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under
the Uniform Commercial Code.
Collect Rents. Lender shall have the rigllt, without notice to Grantor, to take possession of the Property, including during the pendency of
foreclosure, whether judicial or non-judicial, and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and
above Lender's costs, against the tndebtedness. In furtherance of this right, Lender may require any tenant or other user of tile Property to make
payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's
attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds.
Payments by tenants or other users to Lender in response to Lender's demand shall satisfy tile obligations for which the payments are made,
whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or
through a receiver.
Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to
protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from It1£? Property and apply the
proceeds, over and above the cost of the receivership, against tile Indebtedness. The receiver Illay serve without bond if permitted by law.
Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a
substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver.
Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Propeliy.
Nonjudicial Sale. Lender may foreclose Grantor's interest in all or in any part of the Property by non-judicial sale, and specifically by "power of
sale" or "advertisement and sale" foreclosure as provided by statute.
Deficiency Judgment. If permitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to
Lender after application of all amounts received from the exercise of the rights provided in this section.
Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise
becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance or Lender or the purchaser
of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property
immediately upon the demand of Lender.
Other Remedies. Lendcn shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity.
Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled. In
exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate
sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property.
Notice of Sale. Lender will give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after
which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean notice given at least
ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Real
Property.
Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by Lender to
choose anyone remedy will not bar Lender from using any other remedy. If Lender decides to spend Illoney or to perform any of Grantor's
obligations under this Mortgage, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare Grantor in default
and to exercise Lender's remedies.
Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover
SUCll sum as the coul1 may adjudge reasonable as attorneys' fees at trial and upon any appeal. Wllether or not any court action is involved, and
to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for tile protection of
its interest or tile enforcement of its rights sllall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate
from the date of the expellCJiture until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under
applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including reasonable attorneys'
fees after default and referral to an attorney not Lender's salaried employee and expenses for bankruptcy proceedings (including efforts to modify
or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records,
obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees and title insurance, to the extent permitted by
applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law.
NOTICES. Any notice required to be given under this Mortgage, including without limitation any notice of default and any notice of sale shall be given
in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited
with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage
prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from the holder of any lien which
Ilas priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any person may change his or her
address for notices under this Mortgage by giving formal written notice to the other person or persons, specifying that the purpose of the notice is to
change the person's aeJdress. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise
provided or required by law, if there is more than one Granter, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors.
It will be Grantor's responsibility to tell tile others of the notice from Lender.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a pari of this Mortgage:
Amendments. W/lat is written in this Mortgage and in the Related Documents is Grantor's entire agreement Witll Lender concerning the matiers
covered by this Mortgage. To be effective, any change or amendment to this Mortgage must be in writing and must be signed by whoever will be
bound or obligated by tile change or amendment.
Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the
provisions of this Mortgage.
Governing Law. This Mortgage will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the
laws of tile State of Wyoming without regard to its conflicts of law provisions. This Mortgage has been accepted by Lender in the State
of Wyoming.
Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Teton County, State of
Wyoming.
Joint and Several Liability. All obligations of Grantor under this Mortgage shall be joint and several, and all references to Grantor shall mean
each and every Grantor. This means that each Grantor signing below is responsible for all obligations in this Mortgage.
No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rig/lts under tllis Mortgage unless Lender cJoes so in writing.
The fact that Lender delays or omits to exercise any right will not mean tl1at Lender has given up that right. If Lender does agree in writing to give
up one of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of this Mortgage. Grantor also
understands that if Lender does consent to a request, that does not mean tllat Grantor will not have to get Lender's consent again if the situation
happens again. Grantor further understands that just because Lerlder consents to one or more of Grantor's requests, that does not mean Lender
will be required to consent to any of Grantor's future requesh. Grantor waives presentment, demand for payment, protes\ and notice of dishonor.
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MORTGAGE
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Loan No: 33056248
Grantor waives all rigllts of exemption from execution or similar law in the Property, and Grantor agrees that the rights of Lender in the Property
under this Mortgage are prior to Grantor's rights while this Mortgage remains in effect.
Severability. If a court finds that any provision of this MOJigage is not valid or should not be enforced, tllat fact by itself will not mean that the rest
of this Mortgage will not be valid or enforced. Therefore, a court will enforce the rest of tile provisions of tllis Mortgage even if a provision of this
Mortgage may be found to be invalid or unenforceable.
Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time
held by or for the benefit of Lender in any capacity, without the written lunsent of Lender.
Successors and Assigns, Subject to any limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding upon
and inure to the benefit of the pal1ies, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor,
Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of
forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness.
Time is of the Essence. Time is of the essence in the performance of this Mortgage.
Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of
Wyoming as to all Indebtedness secured by this Mortgage.
DEFINITIONS. The following words shall have the following meanings when used in this Mortgage:
Borrower. The word "Borrower" means David Pearce and Melanie Pearce and includes all co-signers and co-makers signing the Note.
Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to
the protection of human healtll or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub.
L. No. 99-499 ("SARA"). the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery
Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.
Event of Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage in the events of default section of this
Mortgage.
Existing Indebtedness. The words "Existing Indebtedness" mean the indebtedness described in the Existing Liens provision of this Mortgage.
Grantor. The word "Grantor" means David Pearce and Melanie Pearce.
Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommoeJation party to Lender, including without
limitation a guaranty of all or part of the Note.
Hazardous Substances. The words "Hazardous Substances" llIean materials that, because of tlleir quantity, concentration or physical, cllemical
or infectious characteristics, may cause or pose a present or potential hazard to humall health or tile ellvironment wllell improperly used, treated,
stored, disposed of, generated, manufactured, transported or otherwise Ilandled. The words "Hazardous Substances" are used in their very
broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the
Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction
thereof and asbestos.
Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on ttle Real
Property, facilities, additions, replacements and other construction on the Real Property.
Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related
Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents
and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's
obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage.
Lender. The word "Lender" means Tile Jackson State Bank & Trust, its successors and assigns. The words "successors or assigns" mean any
person or company tllat acquires any interest in tile Note.
Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender.
Note. The word "Note" means tile promissory note dated November 7,2005, in the original principal amount of $50,000.00 from
Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the
promissory note or agreement. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARtABLE INTEREST RATE.
Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned
by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of,
and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of
premiums) from any sale or otller disposition of the Property.
Property. The word "Property" means collectively the Real Property and the Personal Property.
Real Property. The words "Real Property" mean tIle real property, interests and rights, as further described in this Mor1gage.
Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan aCJreements, environmental
agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral rnortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness.
Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from tile
Property.
EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS
TERMS.
GRANTOR:
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David Pearce
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INDIVIDUAL ACKNOWLEDGMENT
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On this day before me, the undersigned Notary Public, personally appeared David Pearce and Melanie Pearce, to me known to be the individuals
described in and who executed the Mortgage, and acknowledged that they signed the Mortgage as their free and voluntary act and deed for the uses
and purposes therein mention. ed. aT f'~ ~ \ .' \,. . .l . .. ._",
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Notary Public in and lor the State Of--.J:~~t\ ¡ \ \ My commission~~pires\¡ .' ,',.in" . .'::~,,:_;~-;¡L ",j.""¡':J II
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