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HomeMy WebLinkAbout915623 ) '---/ I'" ,i! 'IJ;. 1"\(\00-67 \.;~Ju ! RECORDATION REQUESTED BY: FIRST NATIONAL BANK - WEST Afton 314 South Washington St. P.O. Box 1620 Afton, WY 83110 WHEN RECORDED MAIL TO: FIRST NATIONAL BANK - WEST Afton 314 South Washington SI. P,O. Box 1620 Afton, WY 83110 RECEIVED 1/31/2006 at 12:44 PM RECEIVING # 915623 BOOK: 611 PAGE: 67 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY -.--:-----.----- SEND TAX NOTICES TO: FIRST NATIONAL BANK - WEST Afton 314 South Washington St. P.O. Box 1620 Afton. WY 83110 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE MAXIMUM LIEN. The lien of this Mortgage shall not exceed at anyone time $40,182.00. THIS MORTGAGE dated January 17, 2006, is made and executed between PAUL J, PETERSON and MARGO PETERSON, whose address Is POBOX 5091, ETNA, WY 83118 (referred to below as "Grantor") and FIRST NATIONAL BANK - WEST, whose address is 314 South Washington St., P.O. Box 1620, Afton, WY 83110 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all of Granlor's righI, lille, and interest in and to the following described real property, together with all existing or subsequenlly erected or affixed buildings, Improvements and fixtures; all easements, rights of way, and appurtenances; all water, waler rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royaltles{ and profils relatil)g to Ihe real propert~ Including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property"} located in LINCOLN County, ;)tate of Wyoming: SEE ATTACHED SCHEDULE "C" The Real Property or its address is commonly known as 656 CHOKECHERRY CR 113, ETNA, WY 83118. REVOLVING LINE OF CREDIT. This Mortgage secures the Indebtedness Including, without limitation, a revolving line of credit, which obligates Lender to make advances to Grantor so long as Grantor complies with all the terms of the Credit Agreement. Such advances may be made, repaid, and remade from time to time, subject to the limitation that the total outstanding balance owing at anyone time. not Including finance charges on such balance at a fixed or variable rate or sum as provided In the Credit Agreement, any temporary overages, other charges, and any amounts expended or advanced as provided In eIther the Indebtedness paragraph or thIs paragraph. shall not exceed the Credit LimIt as provided In the Credit Agreement. It Is the Intention of Grantor and Lender that this Mortgage secures the balance outstanding under the Credit Agreement from time to time from zero up to the Credit Limit as provided In the Credit Agreement and any Intermediate balance. Granlor presenlly assigns to Lender all of Grantor's right, tille, and Interest in and to all present and future leases of Ihe Property and all Renls from the Property. In addilion, 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 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: PAYMENT AND PERFORMANCE. Except as olherwlse provided In this Mortgage, Grantor shall pay to lender all amounts secured by Ihis Mortgage as they become due and shall slriclly perform all of Grantor's obligations under this Mortgage. . .~ POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of Ihe Property shall be governed by Ihe following provisions: Possession and Use. Until the occurrence of an Evenl of Defaull, Granlor may (1) remain in possession and conlrol of Ihe Property; (2) use, operate or manage Ihe Property; and (3) collect the Rents from Ihe Property. Duty to Maintain. Grantor shall maintain the Property in good condition and promplly perform all repairs, replacements, . and mainlenance necessary 10 preserve lis value. Compliance With EnvIronmental Laws. Grantor represents and warranls to lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generalion, manufacture, slorage, treatmenl, disposal, release or threalened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason 10 believe that there has been, except as previously disclosed 10 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 threalened release of any Hazardous Substance on, under, aboul or from the Property by any prior owners or occupants of the Property, or (c) any actual or Ihreatened liIigalion 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) neilher Grantor nor any tenant, conlractor, agenl or olher aulhorized 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 without limitation all Environmental laws. Granlor authorizes lender and ils agents 10 enter upon the Property to make such inspections and lesls, at Grantor's expense, as lender may deem appropriate to determine compliance of the Property with Ihis section of the Mortgage. Any Inspections or lests made by lender shall be for Lender's purposes only and shall nol be construed to creale any responsibilily or liability on the part of lender to Grantor or to any other person. The representations and warranties contained herein are based on Granlor'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 Ihe evenl Grantor becomes liable for cleanup or other cosls under any such laws; and (2) agrees to indemnify and hold harmless lender against any and all claims, losses, liabilities. damages, penallies, and expenses which Lender may direclly or Indireclly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufaclure, storage, disposal, release or threalened release occurring prior to Grantor's ownership or inlerest in the Property, whether or nollhe same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to Indemnify, shall survive the paymenl of the Indebtedness and the satisfaction and reconveyance of Ihe lien of Ihis Mortgage and shall not be affecled by lender's acquisition of any Interesl in the Property, whether 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 Ihe Property or any portion of the Property. Without limiting Ihe generality of the foregoing, Granlor will nol remove, or grant to any other party Ihe 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 condilion to the removal of any Improvements, lender may require Grantor to make arrangements satisfactory 10 lender to replace such Improvements wilh Improvemenls of at least equal value. Lender's Right to Enter. lender and lender's agents and representatives may enter upon Ihe Real Property at all reasonable times to attend to lender's inlerests and to inspeclthe Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements. Granlor shall promptly comply with all laws, ordinances, and regulations, now or hereafter In effect, of all governmenlal authorities applicable to the use or occupancy of the Property. Grantor may contest in good faith any such law, O~:lS623 .~:::~:::~~:::;::' Md~ftðAGE (Continued) no .....' \....: Loan No: 64003310 Page 2 ordinance, or regulallon and withhold compliance during any proceeding, Including appropriate appeals, so long as Granlor has notified Lender in writing prior 10 doing so and so long as, in Lender's sole opinion, Lender's Interesls in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory 10 Lender, to protect Lender's interest. Duty to Protect. Granlor agrees neither 10 abandon or leave unattended Ihe Property. Granlor shall do all olher acls, in addilion 10 those acts set forlh above in Ihis seclion, which from Ihe characler and use of the Property are reasonably necessary 10 prolecl 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 Ihe sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any Interesl in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, tille or Inlerest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whelher by outright sale, deed, Installment sale contract, land contract, conlract for deed, leasehold interest with a term grealer than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest In or to any land trusl holding tille 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 II such exercise Is prohibited by federal law or by Wyoming law. TAXES AND LIENS. The following provisions relating to the laxes and liens on the Property are part of this Mortgage: Payment. Granlor shall pay when due (and In all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, waler charges and sewer service charges levied against or on accounl of the Property, and shall pay when due all claims for work done on or for services rendered or malerlal furnished to the Property. Granlor shall maintain Ihe Property free of any liens having priority over or equal to the interest of Lender under this Mortgage, excepl for the Existing Indebtedness referred to In this Mortgage or those liens specifically agreed to In wriling 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. Granlor may withhold paymenl of any lax, assessmenl, or claim In connection with a good fallh dispute over the obligation to pay, so long as Lender's Inleresl in Ihe Property is nol 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 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 security satisfactory to Lender in an amount sufficienl to discharge the lien plus any costs and reasonable attorneys' fees. or other charges thaI could accrue as a result of a foreclosure or sale under Ihe lien. In any conlesl, Grantor shall defend itself and Lender and shall salisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an addilional obligee under any surety bond furnished in Ihe contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to lender satisfactory evidence of payment of Ihe taxes or assessments and shall aulhorize the appropriale governmental official to deliver 10 lender at any time a written slatement of the taxes and assessments against Ihe Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work Is commenced, any services are furnished, or any matEÌrials are supplied to the Property, if any mechanic's lien, malerlalmen's lien, or other lien could be asserted on account of the work, services, or malerials. Grantor will upon request of lender furnish to Lender advance assurances satisfactory to lender that Grantor can and will pay the cost of such Improvemenls. PROPERTY DAMAGE INSURANCE. The following provisions relating 10 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 on a replacement basis for Ihe full insurable value covering all Improvements on the Real Property In an amounl sufficienl to avoid application of any coinsurance clause, and wilh 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 thaI coverage will not be cancelled or diminished without a minimum of Ihirty (3D) days' prior written notice to Lender and not containing any 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 by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Managemenl Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property Is located in a special flood hazard area, for the maximum amount of your credll line and Ihe full unpaid principal balance of any prior liens on the property securing Ihe loan, up to the maximum policy limits set under Ihe National Flood Insurance Program, or as otherwise required by Lender, and to mainlain such Insurance for the term of the loan. Application of Proceeds, Grantor shall promptly notify Lender of any loss or damage 10 Ihe Property if Ihe estimaled cost of repair or replacement exceeds $1,000.00. lender may make proof of loss If Granlor fails to do so within fifteen (15) days of Ihe casually. Whether or not Lender's security is impaired, lender may, at lender's eleclion, receive and retain the proceeds of any Insurance and apply the proceeds to the reduclion of the Indebledness, payment of any lien affecling the Property, or the resloratlon and repair of Ihe Property. If lender elecls to apply Ihe 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 Granlor from the proceeds for the reasonable cosl of repair or restorallon 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 Ihe Property shall be used first to pay any amount owing to lender under this Mortgage, then to pay accrued Inlerest, and the remainder, if any, shall be applied to the principal balance of Ihe Indebtedness. If Lender holds any proceeds after payment in full of the Indebledness, such proceeds shall be paid to Grantor as Grantor's Interests may appear. Compliance wIth ExIsting Indebtedness. During the period In which any Existing Indebtedness described below Is in effect, compliance with the insurance provisions contained In the instrument eVidencing such Existing Indebledness shall constitute compliance with the insurance provisions under this Mortgage, to Ihe extent compliance with the terms of this Mortgage would conslilute a duplicalion 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 Ihe proceeds not payable to Ihe holder of Ihe Existing Indebtedness. LENDER'S EXPENDITURES, If Grantor fails (A) to keep the Property free of all taxes, liens, security Interests, encumbrances, and other claims, (S) to provide any required insurance on the Property, (C) 10 make repairs to the Property or to comply with any obligation to maintain Existing Indebtedness In good standing as required below, Ihen Lender may do so. If any action or proceeding Is commenced Ihal would malerially affect lender's interesls in the Property, then Lender on Granlor's behalf may, bul is not required to, take any action Ihat Lender believes to be appropriate to protecl Lender's Interests. All expenses incurred or paid by lender for such purposes will then bear interesl at the rate charged under the Credit Agreement from the date Incurred or paid by lender to the date of repaymenl by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (S) be added to the balance of the Credil Agreement and be apportioned among and be payable with any installmenl 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 Ireated as a balloon payment which will be due and payable at the Credit Agreement's malurity. The Mortgage also will secure paymenl of these amounls, The rights provided for In Ihis paragraph shall be in addilion to any other rig hIs or any remedies to which Lender may be entilled on accounl of any default. Any such action by Lender shall not be construed as curing Ihe defaull so as to bar lender from any remedy thalli otherwise would have had. W ARRANTY¡ DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of Ihis Mortgage: Title, Grantor warrants that: (a) Grantor holds good and marketable tille of record 10 the Property in fee simple, free and ciear of all liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness seclion below or in any title insurance policy, lille report, or final title opinion issued In favor of, and accepted by, Lender In connection wilh this Mortgage, and (b) Granlor has Ihe full righI, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title, Subject to the exception In Ihe paragraph above, Grantor warrants and will forever defend the title to the Property agalnslthe lawful claims of all persons. In Ihe event any action or proceeding Is commenced that questions Grantor's Ii lie or the interest of lender under Ihls Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party In such proceeding, but lender shall be enlilled 10 participate In the proceeding and to be represenled in the proceeding by counsel of lender's own choice, and Grantor will deliver, or cause to be delivered, to lender such inslruments as Lender may request from time to time 10 permit such participation, Compliance With laws. Granlor warrants Ihal the Property and Grantor's use of Ihe Property complies with all eXlsling applicable laws, ordinances, and regulations of governmental authorilies. Survival of Promises. All promises, agreements, and statements Grantor has made in Ihis 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 Granlor's Indebtedness Is paid in full. EXISTING INDEBTEDNESS, The following provisions concerning EXisling Indebtedness are a part of this Mortgage: Existing LIen, The lien of Ihls Mortgage securing the Indebledness may be secondary and inferior to an existing lien. Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebledness and 10 prevent any default on such indebtedness, any default " \. Loan No: 64003310 ü~lS623 MORTGAGE (Continued) ( n C·l'··: 6 9 .... \.... Page 3 under Ihe Instrumenls evidencing such Indebtedness, or any defaull under any security documents for such indebledness. No Modlflcallon, Granlor shall nol enter Into any agreement with the holder of any mortgage, deed of trust, or other security agreement which has priority over Ihis Mortgage by which that agreement is modified, amended, extended, or renewed withoul the prior written consent of Lender. Grantor shall neither request nor accept any future advances under any such security agreement wilhout Ihe prior written consenl of Lender. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings. If any proceeding In condemnation is filed, Grantor shall promplly notify Lender in writing, and Grantor shall promplly lake such steps as may be necessary to defend the acllon and oblain the award. Grantor may be the nominal party In such proceeding, but Lender shall be entilled 10 participate In the proceeding and to be represented In Ihe proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such Instrumenls and documentation as may be requested by Lender from lime to time to permit such participation. Appllcallon 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 Ihe Indebtedness or the repair or restoration of Ihe Property, The nel proceeds of the award shall mean Ihe award after paymenl of all reasonable costs, expenses, and attorneys' fees incurred by Lender in conneclion with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES, The following provisions relating 10 governmentallaxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execule such documenls In addition to Ihis Mortgage and lake whalever other aclion is requesled by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all laxes, as described below, togelher with all expenses Incurred In recording, perfecting or conlinuing this Mortgage, including wilhoullimitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall conslilute taxes 10 which 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 deducl from payments on Ihe Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or Ihe holder of Ihe Credit Agreement; and (4) a specific tax on all or any portion of Ihe Indebtedness or on payments of principal and interesl madE! by Grantor. SUbsequent Taxes. If any tax to which this section applies Is enacted subsequenlto Ihe date of Ihis Mortgage, Ihis event shall have the same effect as an Event of Defaull, and Lender may exercise any or all of lis available remedies for an Event of Defaull as provided below unless Grantor eilher (1) pays the tax before It becomes delinquent, or (2) 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 agreement are a part of this Mortgage: Security Agreement. This inslrument shall constill.ite a Security Agreement to the extent any of the Property conslllutes 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, Granlor shall take whatever action is requested by Lender 10 perfect and continue Lender's security '. Inlereslln the Personal Property. In addition to recording this Mortgage in Ihe real property records, Lender may, at any time and wilhout further aulhorization from Granlor, file execuled 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 Inlerest. Upon defaull, Grantor shall not remove, sever or detach the Personal Property from Ihe Property. Upon defaull, Grantor shall assemble any Personal Property not affixed 10 the Property In a manner and al a place reasonably convenient to Grantor and Lender and make It available to Lender within Ihree (3) days after receipt of written demand from Lender to Ihe extent permitted by applicable law. Addresses, The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning Ihe security Interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on Ihe first page of Ihis Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT, The following provisions relating to further assurances and attorney-In-fact are a part of Ihls Mortgage: Further Assurances, At any time, and from time 10 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 Lender, cause to be filed, recorded, refiled,or rerecorded, as the case may be, al 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 statemenls, continuation statements, Instrumenls of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable In order to effecluate, complete, perfecl, conlinue, or preserve (1) Grantor's obligations under the Credit Agreemenl, this Mortgage, and Ihe Related Documents, and (2) the liens and security inlerests created by Ihis Mortgage on Ihe Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the conlrary In writing, Grantor shall reimburse Lender for all cosls and expenses Incurred In connection with Ihe mailers referred to in this paragraph. Attorney-In-Fact. If Granlor fails to do any of Ihe 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 appoinls Lender as Granlor's attorney-in-fact for the purpose of making. execuling, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish Ihe matters referred to In the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, terminates the credllline account, and olherwise performs all the obligations Imposed upon Grantor under Ihis Mortgage, Lender shall execute and deliver to Grantor a suilable satisfaclion of Ihis Mortgage and suitable statements of termination of any financing statemenl on file evidencing Lender's security inlerest In Ihe 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. EVENTS OF DEFAULT. Granlor will be In defauil under Ihls Mortgage if any of the following happen: (A) Grantor commits fraud or makes a malerial mlsrepresenlation at any time in connection with the Credit Agreement. This can Include, for example, a false statement about Granlor's Income, assets, liabilities, or any other aspects of Grantor's financial condition. (B) Granlor does not meet Ihe repayment terms of Ihe Credit Agreement. (C) Granlor's action or inaction adversely affects the collateral or Lender's rig hIs In the collaleral. This can Include, for example, failure to maintain required insurance, waste or destruclive use of the dwelling, failure to pay taxes, death of all persons liable on the accounl, transfer of tille or sale of the dwelling, creation of a senior lien on Ihe dwelling without Lender's permission, foreclosure by the holder of anolher lien, or the use of funds or Ihe dwelling for prohibiled purposes. RIGHTS AND REMEDIES ON DEFAULT, Upon Ihe occurrence of an Evenl of Defauil and at any time fhereafter bul subject 10 any limitation In Ihe Credit Agreement or any limitation In this Mortgage, Lender, at Lender's option, may exercise anyone or more of the following righls and remedies, In addilion 10 any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have Ihe right at lis option without notice to Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penally which Grantor would be required to pay. UCC Remedies. With respeclto 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 right, without notice to Grantor, to take possession of the Property, including during the pendency of foreclosure, whelher judicial or non-judicial, and collect the Renls, including amounts past due and unpaid, and apply the nel proceeds, over and above Lender's cosls, against the Indebtedness. In furtherance of this right, Lender may require any tenant or olher user of the Property to make payments of renl or use fees direclly 10 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 Ihereof In the name of Grantor and to negotiate the same and collect the proceeds. Paymenls by tenants or other users to Lender in response to Lender's demand shall satisfy the obligalions for which the payments are made, whether or not any proper grounds for the demand exisled, Lender may exercise ils rights under this subparagraph ellher 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 prolect and preserve the Property, 10 operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cosl of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appolntmenl of a receiver shall exist whelher or not the apparent value of the Property exceeds the Indebtedness by a subslanllal 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 intereslln all or any part of the Property. ~~m~lilif:I;~I~ Loan No: 64003310 091.5623 í;:¡:;:;:·:·:":~·i·;·:4: ,,~,.·ó·.·.·'~~'i'N¡ Md~:l~-:~)\GE (Continued) 2 0 0 O'D¡¡¡¡!&\¡:~¡:¡~ Page 4 Nonjudicial Sale. Lender may foreclose Grantor's Inlerest 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 slatute. Deficiency Judgment. If permitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the Indebledness due to Lender after application of all amounls received from Ihe exercise of Ihe rights provided in Ihls 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 al sufferance of Lender or the purchaser of the Property and shall, al Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate Ihe Property Immediately upon Ihe demand of Lender. Other Remedies. Lender shall have all other righls and remedies provided In this Mortgage or the Credll Agreement or available al law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all righlto have Ihe Property marshalled. In exercising its rig hIs 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 al 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 Ihe Personal Property or of the time after which any private sale or other inlended disposition of Ihe Personal Property Is to be made. Reasonable notice shall mean notice given alleast 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 Ihe 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 olher remedy. If Lender decides to spend money or 10 perform any of Grantor's obligations under this Mortgage, after Granlor's failure 10 do so, thaI decision by Lender will not affect Lender's rlghl to declare Grantor in defaull and to exercise Lender's remedies. Attorneys' Feesj Expenses. If Lender institules any suit or action to enforce any of the lerms 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. Whelher or not any court action is involved, and to the exlenl not prohibited by law, all reasonable expenses Lender Incurs that In Lender's opinion are necessary at any lime for Ihe prolection of its inleresl or Ihe e.nforcement of lis rig hIs shall become a part of the Indebtedness payable on demand and shall bear interesl al the Credit Agreemenl rale from the date of Ihe expendilure unlil repaid. Expenses covered by this paragraph Include, without limitalion, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whelher or not there is a lawsuil, including reasonable attorneys' fees after default and referral to an attorney nol Lender's salaried employee and expenses for bankruplcy proceedings (Including efforts to modify or vacale any automatic slay or Injunction), appeals, and any anticipated posl-judgment collection services, Ihe cost of searching records, oblalnlng title reports (including foreclosure reports), surveyors' reports, and appraisal fees and title Insurance, to Ihe extent permitted by applicable law. Granlor also will pay any court costs, in addition to all olher sums provided by law. NOTICES. Any notice required to be given under this Mortgage, Including without limitation any nolice of default and any notice of sale shall be given In wriling, and shall be effeclive when actually delivered, when actually received by telefacsimile (unless olherwise 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 nolices of foreclosure from the holder of any lien which has priority over this Mortgage shall be senlto Lender's address, as shown near Ihe beginning of this Mortgage. Any person may change his or her address for notices under Ihis Mortgage by giving formal written notice 10 the olher person or persons, specifying thatlhe purpose of Ihe nolice Is to change the person's address. 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 Ihan one Granlor, any notice given by Lender to any Granlor is deemed 10 be notice given to all Grantors. It will be Granlor's responsibility to telllhe olhers of the nolice from Lender. MISCELLANEOUS PROVISIONS, The following miscellaneous provisions are a part of this Mortgage: Amendments, What is writlen In this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the matters covered by this Mortgage. To be effeclive, any change or amendmenl to Ihis Mortgage musl be in writing and must be signed by whoever will be bound or obligated by the change or amendment. Capllon 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 ot 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 sub mil to the jurisdicllon of Ihe courts of Lincoln County, Slate of Wyoming. Joint and Several Liability, All obligalions of Grantor under Ihls 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. Granlor understands Lender will not give up any of Lender's rights under Ihis Mortgage unless Lender does so In writing. The fact that Lender delays or omlls to exercise any right will nol mean that Lender has given up thaI right. If Lender does agree In writing to give up one of Lender's rights, Ihat does not mean Grantor will not have to comply with the olher provisions of this Mortgage. Grantor also understands Ihal if Lender does consenl to a request, Ihal does not mean that Grantor will nol have to get Lender's consent again if the situation happens again. Grantor further understands that just because Lender consents to one or more of Grantor's requesls, that does not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presenlment, demand for paymenl, prolesl, and notice of dishonor. Grantor waives all rights of exemption from execution or similar law in Ihe Property, and Grantor agrees thaI 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 Ihat any provision of this Mortgage is not valid or should not be enforced, Ihat fact by itself will not mean thaI the rest of this Mortgage will nol be valid or enforced. Therefore, a court will enforce the rest of Ihe provisions of this Mortgage even if a provision of this Mortgage may be found to be invalid or unenforceable. Merger. There shall be no merger of the Inlerest or estate created by Ihis Mortgage wilh any olher Inlerest or estate in the Property al any time held by or for the benefit of Lender In any capacity, withoul the written consent of Lender. Successors and Assigns, Subject to any limitations stated in Ihls Mortgage on transfer of Grantor's ¡nteresl, this Mortgage shall be binding upon and inure to Ihe benefil of Ihe parties, their successors and assigns. If ownership of the Property becomes vested in a person olher than Granlor, Lender, wilhout nolice 10 Grantor, may deal with Grantor's successors wilh reference to this Mortgage and Ihe Indebtedness by way of forbearance or extension wilhout 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. Granlor hereby releases and waives all rights and benefits of Ihe homestead exemplion laws of the State of Wyoming as 10 all Indebtedness secured by this Mortgage, DEFINITIONS. The following words shall have Ihe following meanings when used in this Mortgage: Borrower, The word "Borrower" means PAUL J. PETERSON and MARGO PETERSON and Includes all co-signers and co-makers signing the Credll Agreement and ali their successors and assigns. Credit Agreement. The words "Credll Agreemenl" mean the credit agreement daled January 17, 2006, with credit limit of $40,182.00 from Grantor to Lender, together wllh all renewals of, extensions of, modificalions of, refinancings of, consolidalions of, and substilullons for Ihe promissory note or agreement. NOTICE TO GRANTOR: THE CREDIT AGREEMENT CONTAINS A VARIABLE INTEREST RATE. EnvIronmental Laws, The words "Environmental Laws" mean any and all slate, federal and local statutes, regulations and ordinances relallng to the protection of human heallh or the environ men I, including withoullimilation 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 Reaulhorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Acl, 49 U.S.C. Seclion 1801, et seq., the Resource Conservation and Recovery Acl, 42 U.S.C. Secllon 6901, el seq., or other applicable state or federal laws, rules, or regulations adopted pursuantlhereto. Event of Default. The words ''Event of Default" mean any of the events of defaull set forth In this Mortgage In the events of default section of Ihls Mortgage. / loan No: 64003310 ,.. r '.~'.i t:.:,T··r··, .'}J'.....) .J ~ .L...¡ \}-",Ù MORTGAGE (Continued) .! 'ì (' 0"; 71 '" u v , Page 5 Existing Indebtedness, The words "Existing Indebledness" mean the indebtedness described In Ihe Exisling Liens provision of this Mortgage. Grantor. The word "Grantor" means PAUL J. PETERSON and MARGO PETERSON. Hazardous Substances. The words "Ha:zs.rdous Substances" mean materials that, because of their quanlity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential ha:zs.rd 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 limitation any and all ha:zs.rdous or toxic subslances, materials or waste as defined by or listed under the Environmental Laws. The lerm "Hazardous Subslances" also includes, wilhoutlimilation, pelroleum and petroleum by-producls or any fraction Ihereof and asbestos. Improvements. The word "Improvements" means all existing and future Improvements, buildings, struclures, mobile homes affixed on the Real Property, facilities, additions, replacements and olher conslruction on Ihe Real Property, Indebtedness, The word "Indebtedness" means all principal, Interest, and other amounts, cosls and expenses payable under the Credit Agreement or Related Documents, together wilh all renewals of, extensions of, modifications of, consolidations of and substilutions for the Credit Agreement or Related Documenls 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, togelher with inlerest on such amounls as provided In Ihis Mortgage. Lender. The word "Lender" means FIRST NATIONAL BANK - WEST, ils successors and assigns. The words "successors or assigns" mean any person or company that acquires any Interest In the Credil Agreement. Mortgage, The word "Mortgage" means Ihls Mortgage between Grantor and Lender, Personal Property, The words "Personal Properly" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed 10 the Real Property; togelher with all accessions, parts, and addllions to, all replacemenls of, and all subslilutlons for, any of such property; and together wllh all proceeds (including withoul limitation all Insurance proceeds and refunds of premiums) from any sale or other disposllion of the Property. Property, The word "Properly" means collectively Ihe Real Property and the Personal Property_ Real Property. The words "Real Properly" mean the real property, ¡nteresls and rig hIs, as further described In Ihis Mortgage. Related Documents. The words "Related Documents" mean all promissory notes, credit agree men Is, loan agreements, environmenlal agreemenls, guaranties, security agreemenls, mortgages, deeds of trust, security deeds, collaleral mortgages, and all other Instruments, agreements and documenls, whether now or hereafter existing, executed In connection wilh the Indebtedness. . Rents. The word "Renls" means all present and future rEmIs, revenues, income, Issues, royal lies, 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: x~ x~~ INDIVIDUAL ACKNOWLEDGMENT STATE OF ~OJ"1'?/"') COUNTY OF /;Y1 1'0/1'\- ) ) SS ) TRISTAN SMITH NOTARY PUBUC COUNTY OF. STATE OF LINCOLN WYOMING MY COMMISSION EXPIRES APRIL 22, 2009 On this day before me, the undersigned Notary Public, personally appeared PAUL J. PETERSON and MARGO PETERSON, to me known to be Ihe individuals described In and who executed the Mortgage, and acknowledged thatlhey signed Ihe Mortgage as Iheir free and voluntary act and deed, for the uses and purposes therein mentioned. Given under my hand a~thls B~ /7 day of jQ.nv~~ Residing at ~""""-- My commissIon eXPlres~.r.d ,20 ~ Notary Public In and for the State of ~~~ ~ Â.CtJ9 lASER PRO Lending, Ver. 5..10.00.004 Copr. Harl&nd finantta. Solution., Inc. 1Qiil7, 200.0 AM Righls R'urvd. .. WY Þ:\LASERPRO\FN8\CfI\LPL\G03FC fR-eS1 PR...7 ~:::f:::~:~~J:Ut ~:r:::~~¡~~~!~:~¡; ;"...,' " . .,','1 ',.;....,. . ., . ~;,:-,,:' 1.:,:';,-,;: ------ ....--"-.-- \·,~0666 .. ü~i56~~O_iO::'O í\ L'00072 SCHEnTJLE c ,; PJ\.RCEL A.. 2,000 Acres A Portion of the property referred to in the Deed recorded in book 77PR, on Page 68 within the NW1/4NE1I4 of Section 23, T35N Rl19W of the 6th P.M., Lincoln County, Wyoming, being more Particularly described as follows: I· BEGINNING at ånlron Pipe set at a point in the North Line of said NWl/4NEl/4said pointb:ing 782.45 feet S89004'2311E along said North Jine from the BLM type Monument marking the Marlowe A. Scherbel PLS 5368 1992 location for the 1/4 CornIer b~tween Section 14 8Ild Section 23 (1/4 8],4/23); thence S89°04'23"E,:~ontinuing along said North Line, 313.07 feet to a Cotton Gin Spike set at a point in the Center Line of East Side C8Ilal; thence Southeasterly, along said Center Line, to Spikes set the following: S02°29'05"E" 14.86 feet, 814°1'6'40"E 45.42 feet, S06°22'37"E 120.65 feet and S02°42'39"E 82.01 feet; thence ,West 342.15 feet to an Iron Pipe set; North 265.74 feet, tp the Point ofBégiIUÚng, containing 2.000 Acres of land. ' SUBJECT TO a 30 foot wid~WW Easement along the North Line of the above described Parcel, being:t~hokecheny County Road No. 12-113 as referred to in the Right-of-Way agreement recorded in Book 177, Page 27, and also, I I I ., I I . }',' SUBJECT TO an Easement~~ Exceptions, Restrictions, Reservations, Rights- of-Way, and Improvements of sight and/or record.