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HomeMy WebLinkAbout914123 51281 4""\ i'"'\ .~ \./ \./ ',.,) \j':'1 0 V RECORDATION REQUESTED BY: First Interstate Bank Jackson Downtown Branch 802 West Broadway P. O. Box 11095 Jackson, WY 83002-1095 WHEN RECORDED MAIL TO: First Interstate Bank Jackson Downtown Branch 802 West Broadway P. O. Box 11095 Jackson, WY 83002-1095 RECEIVED 12/2/2005 at 10: 18 AM RECEIVING # 914123 BOOK: 606 PAGE: 488 JEANNE WAGNER LINCOLN COUNTY CLERK, ~<ElVltvIERER, WY SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONL Y - fl First Interstate Bank MORTGAGE MAXIMUM LIEN. The lien of this Mortgage shall not exceed at anyone time $15,000.00. THIS MORTGAGE dated November 29, 2005, is made and executed betWE:bn GEORGE TODD SMITH and ABBEY L. SMITH, husband and wife, whose address is 94 Appaloosa Trail aka County Rd 107, Ema, WY 83118, as joint tenants with full rights of survivorship (referred to below as ,. Grantor") and First Imerstate Bank, whose address is 802 West Broadway, P. O. Box 11095, Jackson, WY 83002-1095 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all oj Grantor's right, titlç, and interest in and to the following described real property, together with all existln\j or subsçquently erected or a jixed buildings, improvements and fixtures; all easements, rights oj way, and appurtenances; all water, water rights, ,vatercourses and ditch ri\jhts (including stock in utilities with dilch 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 WyonJing: NE1/4NE1/4 Section 34, Township 36 North, Range 119 West, 6th P.M., Wyoming. Excepting therefrom the following described land, to wit: BEGINNING at a point 80 south of the Southeast corner of Section 27, T36N, R 119W and running thence West 80 rods, thence NonÌì 2 rods, thence Eást 80 rods, thence South 2 rods to the POINT OF BEGINNING The Real Property or its address is commonly known as 94Appaloose Trail aka County Rd 107, Etna, WY 83118. The Real Property tax identification number is 3619263000 17üO. REVOL VING LINE OF CREDIT. This Mortgage secures the Indebtedness including, without limitation, a revolving line at credit, which obligates Lender to make advances to Gramor so long as Gralltor complies with all the terms ot the Credit Agreemem. Such advances may be máde, repaid, and remade from time to time, subject to the limitation that the total outstanding balance owing at anyone time, not includiJ,g finánce charges on such balance at a fixed or variable rate or sum as provided in the Credit Agreement, any temporary overáges. other chaJges, and any amounts expended or advanced as provided in either the Indebtedness piJriJgraph or this pariJgraph, shall not exceed the Credit Limit as provided in the Credit Agreement. It is the imention oj Grantor and Lender that this Mortgage se¡;ures the balance outstanding under the CI edit Agreement from time to time from zero up to the Credit Limit as provided in the Credit Agreement iJnd any intermediate biJlance. Grantor presently assigns [0 Lender all oj Grantor's right, title, and interest in and to all present and juture leasl;s of the Property and all Rents jrom the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security imerest in the Personal Property and Rems, 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 EACH OF GRANTOR'S AGREEMENTS AND OBLIGATIONS UNDER THE CREDIT AGREEMENT, 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 Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed bl' the following provisions: Possession and Use. Until the occurrence oj an Event of Default, Grantor may (1) remain in possession and culltrol oj the Property; (2) use, operate or manage the Property; and (3) collect the R"nts trom the Property. 3° q ! J~ Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform all repairs, replacell18llts, and nlalnknance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and livarrants to Lender that: (1) During the period of Grantor's olimership oj the Property, there has been no use, generation, manujacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge oj, or reason to believe IhiJI therç 11as 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, storag", treatment, disposal, release or threatened release of any Hazardous Substance on, under, abuut or jrom the PropE:rty by any prior owners or occupants oj the Property, or (ci any actual or threatened litigalion or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed 10 and dcknowledged by Lender in writing, (a) neither Gramur nor any tenant, contractor, agent or other authorized user oj the Property shall use, generate, manufacture, slOre, trçat, dispose oj or release any Hazardous Substance on, under, about or jrom the Property; ill1d (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, Including withúut lrmitation all EnvirGnmental Laws, Grantor iluthorizes Lender and its agents to enter upon the Property to make such Inspections and tests, al Grantor's expense, as Lender may deE:m appropriate to determine compliance oj the Property with this section oj the rvlortgdge. Any insrkctions or tests made by Lender shilll be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lend", to Grantor or to al1Y othc,r person, The representations and warranties contained herein are based on Grantor's due diligence in invçstigating the Property ¡or Hazardous Substances. Grantor hereby (1) releases and waives dny futurE: claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other CUStS under any such laws; and (21 agrees lO indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, pena:ties, and expenses which Lender rnay directly or indirE:clIy sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence oj any USE:, gE:ner~llon, mnnujacture, storagç, disposal, release or threatened release occurring prior to Grantor's ownership or imerest in the PrGperty, whether or not the same was or should have bE:en known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify, shall survive Ihe payment of the Indebtedness and the satisjaction and reconveyance oj the lien of this Mortgage and shall not be affeckd by Lender's acquisition of any interest in the Property, whether by joreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or sutter any stripping of Dr wasle on or to the Property or any portion oj the Property. Without limiting the 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, cldY, scoria, soil, gravel or rock products without LendE:r's prior written consent. _J '. "'j! :'~L-2, 3 MORTGAGE (Continued) '-"('i,('ìð89· \) ; .1 Page 2 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 arrangements 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 Grimtor'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 j"opardized. Lender may 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. DUE ON SALE· CONSENT BY lENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land cuntract, contract for deed, leasehold interest with 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 shall not be 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 and liens on the Property are part of 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 charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the 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 those liens specifically agreed to in writing by Lender, and except for the 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 pa,!, so long as Lender's interest in the Property 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) da,!s after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other securit'! satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other charges tI'dt 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 shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactor,! 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 the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) da,!s before an,! work is commenced, any services are furnished, or any materials are supplied to the Property, if an,! mechanic's lien, materialmen's lien, or other lien 'could be asserted on account of the work, services, or materials and the cost exceeds $3,000,00. Grantor will upon request of Lender turnish to l,ender 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 the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements orl a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of an,! coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written b,! 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) da,!s' prior written notice to Lender and not containing an,! disclaimer of the 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 b,! an,! act, omission or ddault of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agenc,! as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 da,!s after notice is given by Lender that the Property is located in a special flood hazard area, for the maximum amount of your credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up to the maximum poliev limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notif'! Lender of an,! loss or damage to the Propert'! if the estimated cost of repair or replacement exceeds $ 3,000.00. Lender may make proof of loss if Grantor fails to do so within fifteen 115) days of the casualt,!. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Propert'!. If Lender elects to appl,! the proceeds to restoration and repair, Grantor shall 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 Mortgage. 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 the Property shall be used first to pay an,! amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. Compliance with Existing Indebtedness. During the period in which an,! Existing Indebtedness described below is in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the insurance provisions under this Mortgage, to the extent compliance with the terms of this Mortgage would COr IS titute 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 holder of the Existing Indebtedness. TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable law, Lender may require Grantor to maintain with Lender reserves for payment of annual taxes, assessments, and insurance premiums, which reserves shall be created by advance pa,!ment or monthl,! payments of a sum estimated by lender to be sufficient to produce, amounts at least equal to the taxes, assessments, and insurance premiums to be paid. The reserve funds shall be held b,! Lender as a general deposit from Grantor, which Lender may satisfy b,! pa,!ment of the taxes, assessments, and insurance premiums required to be paid by Grantor as they become due. Lender shall have the right to draw upon the reserve funds to pay such items, and Lender shall not be required to determine the validity or accurac,! of any item before paying it. Nothing in the Mortgage shall be construed as requiring Lender to advance other monies for such purposes, and Lender shall not incur any liability for anything it ma,! do or omit to do with respect to the reserve account. Subject to any limitations set by applicable law, if the reserve funds disclose a shortage or deficienc,!, Grantor shall pay such shortage or deficienc,! as required by Lender. All amounts in the reserve account are hereb,! pledged to further secure the Indebtedness, and Lender is hereb,! authorized to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not be required to pay any interest or earnings on the reserve funds unless required by law or agreed to b,! Lender in writing. Lender does not hold the reserve funds in trust for Grantor, and Lender is not Grantor's agent for payment of the taxes and assessments required to be paid by Grantor. lENDER'S EXPENDITURES. If Grantor fails (A) to keep the Pro pert'! free of all taxes, liens, securit'! interests, encumbrances, and other claims, (S) to provide any required insurance on the Property, (C) to make repairs to the Propert'! or to campi,! with any obligation to maintain Existing Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding is commenced that would materlall'j affect Lender's interests in the Property, then Lender on Grantor's behalf ma'!, but is not required to, take an,! action that Lender believes to be äppropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Credit Agreement from the date incurred or paid b,! lender to the date of repayment b,! Grantor, All such expenses will become a part of the Indebtedn2ss and, at Lender's option, will (AI be pa,!able on demand; (S) be added to the balance of the Credit Agreement and be ,'., ,j--1., ...~\ j'\ ,r.\1~¡1 ~d '':-J:~.¡.J ~""-~ MORTGAGE (Continued) rnr'L¥CQ '., \) U i 0 Page 3 ---~-- apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Credit Agreement; or (C) be treated a'i a balloon payment which will be due and payable at the Credit Agreement's maturity. The Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall liOt be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The 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 those set forth in the Real Property description 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 right, power, and authority to execute and deliver this Mortgag..:: 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 the 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 this 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 the 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 this Mortgage, shall be continuing in nature and shall remain in full force and effect until such time as Grantor's IndelJtedness 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 the Indebtedness may be secondary and inferior to an existing lien Grantor expressly covenants and agrees to pay, or see to the 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 mortgage, deed of trust, or other security agreement which has priority over this Mortgage by which that agreement is modified, amended, extended, or renewed without the prior writkl\ consent of Lender. Grantor shall neither request nor accept any future advances under any such security agreement VJìthout the prior written consent of Lender. CONDEMNA TION. The fuflowing 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 promptl'l take such steps as may be necessary to defend the action and obtain th8 award. Grantor may be the nominal party in such proce"d:11U, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, alld Granwr will deliver or cause to be delivered to Lender such instruments and documentation iJS may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If all or any part of the 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 the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shiJII mean the award alter payment of all reasonable costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: 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 shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, inclueJillCj without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes tu which this section arplies: (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 auainst the Lender or the holder of the Credit Agreement; 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 evr:nt 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 Dufault as provided below unless Grantor either (1) pays the tax before it becomes delinquent. or 12) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security auruement are a part of this Mortgage: 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 Lender's security interest in the Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this 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 the Uniform Commercial Code) are as stated all the first page of this Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorne'l-in-fact are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lendd, 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 statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, lie necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the Credit Agreement, this Mortgage, and the Related Documents, and 121 the 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, terminates the credit line account, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgaue and suitable statements of termination of any financing statement on file evidencing lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. '~L~~ilJ2~3 ~ r ... MORTGAGE {Continued} f' (ì 0, /.1 ('1 '.' ,) J i ,) Page 4 EVENTS OF DEFAULT. Grantor will be in default under this Mortgage if any of the following happen: (A) Grantor commits fraud or makes a material misrepresentation at any time in connection with the Credit Agreement. This can include, for example, a false statement about Grantor's income, assets, liabilities, or any other aspects of Grantor's financial condition. (81 Grantor does not mèet the repayment terms of the Credit Agreement. (C) Grantor's action or inaction adversely affects the collateral or Lender's rights in the collateral. This can include, for example, failure to maintain required insurance, waste or destructive use of the dwelling, failure to pay taxes, death of all persons liable on the account, transfer of title or sale of the dwelling, creation of a senior lien on the dwelling without Lender's permission, foreclosure by the ¡wider of another lien, or the use of funds or the dwelling for prohibited purposes. 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 Credit Agreement or any limitation in this Mortgage, Lender, at Lender's option, may exercise anyone or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness 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 securecl party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, 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 Indebtedness. In furtherance of this right, Lender m¡;y require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocablV 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 the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights ullder 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 Propertv, with the power to protect i.l1d preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Renb from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may 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 Property. 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 Propertv 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 of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pava reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Credit Agreement 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 conjuncti()!) 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 mlmey 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 such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether 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 iJre necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Credit Agreement rate from the date of the expenditure 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 U"ited States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Morlu"ue. All copi¡;s of notices of foreclosure from the holder of any lien which has 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 address. For notice purposes, Grantor agrees to keep Lemler informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more tl,an one Grantor, any notice given bV lender to any Grantor is deemed to be notice given to all Grantors. It will be Grantor's responsibility to tell the others of the notice from Lender. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. What is written in this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the matters 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 the 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 the State of Wyoming without regard to its conflicts of law provisions. This Mortgage has been accepted by Lender in the State of Wyoming. Joint and Several Liability. All obligations of Grantor under this Mortgage shall be joint and several, and all referèr,,:c's to (~rantor 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 rights under this Mortgage unless Lender does so in writing. The fact that Lender delays or omits to exercise anv right will not mean that 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 complv with the other pruvisions of this Mortgage. Grantor also understands that if Lender does consent to a request, that does not mean that Grantor will not have to get Lender's consent alJain if the situation happens again. Grantor further understands that just because Lender consents to one or more of Grantol '0 requests, that does not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presentment, demand for payment, protest, and notice of dishonor. Grantor waives all rights 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. El1Iiiro\1men.ta! ~f\yý,~{:Ü'¡;b8 WbTdS'''Irivir'~hM~D1~ Laws" mean any and all state, federal and lucal statutes, regulations and ordinances reliHing JQ ¡l1aprotecti(m of-huniah' hèà1th 'or" the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, 8t seq, ("CERCLA"), the Superfund Amendments ånd Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resourc8 Cons8rvation 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 everlts uf ddault 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 GEORGE TODD SMITH and ABBEY L. SMITH. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without li"litation any and ail 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 the 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 Credit Agreement or Related Documents, together with all renewals of, extensions of, modifications of, consoliddtions of and substitutions for the Credit Agreement or Related Documents and any amounts expended or advanced by Lender to discharge Grdlitor'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 First Interstate Bank, its successors and assigns. The words "successors or assigns" mean dny person or company that acquires any interest in the Credit Agreement. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. 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 other disposition of the Property. Property. The word" Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, s8curity deeds, collateral mortgages, 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 the Property. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. GRANTOR: c? {/¡/;' ;/ j/ --/1 /¿ / ,J/(, /1.,::'./ ,t' // ..-/, / ~i.._~ .-,/ /';1 /) ",;;--;;,7"--- X ,f./l..c.·¡t.··":1-'{ :.>.ø / ( ,>-- -; -J-J/!/[/{// / GEORGE T9DD SIVIITH r--- /' // t;~~1(~f71{¿;L-7(~~_) \, .~;: ~~. .":.~ J'L;~:3 MORTGAGE {Continued} (ì !Î (! .1. 9 3 \.. ,) ) 1 Page 6 INDIVIDUAL ACKNOWLEDGMENT \ \ ' - STATEOF~~~ ~ -"- \ \j COUNTY OF -LiLi:6.V'\ ) ) SS On this day before me, the undersigned Notary Public, personally appeared GEORGE TODD SMITH and ABBEY L. SMITH, 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 mentioned. P,,1~~,d,er my ha, n,Aanq,OffiCia se, a,l thiS'() Ci day of -----1\JÙll_____________, 20_S,~S-~. , '" ',' : ""-I" -, \, -, B' ~-, \~') \, --". -.-~\---~,- Residing at-..,',"'\"'~,,',,(, \,' ,_ ,J' '" ) y.... 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