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HomeMy WebLinkAbout918491 2~ì 000:333 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 St. P.O. Box 1620 Afton, WY 83110 RECEIVED 5/17/2006 at 11:33 AM RECEIVING # 918491 BOOK: 620 PAGE: 333 , JEANNE WAGNER LINCOLN COUNTY CLERK, KEMME~E~, "!'!... SEND TAX NOTICES TO: FIRST NATIONAL BANK - WEST Afton 314 South Washington St. P.O. Box 1620 Anon. 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 $45,175.00. THIS MORTGAGE dated May 4,2006, is made and executed between JACOB ANDREW GALLOWAY, A MARRIED MAN (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 Grantor's right, tille, and interest in and to the following described real property, together with all existing or subsequEÌntly erected or affixed buildings, Improvements and fixtures; all easements, rights 01 way, and appurtenances; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights royallies{ and profits relati~g to the real propert~ including without limitation all minerals, oil, gas, geothermal and similar maNers, (the "Real Property") located in LINCOLN Coumy, ;:,tate of Wyoming: Lot 4 of Western Sunset Ranchettes, Lincoln County, Wyoming as described on the official plat filed June 10, 2003 as Instrument No. 890909 of the records of the Lincoln County Clerk The Real Property or its address Is commonly known as 225 WESTERN DRIVE, SMOOT, WY 83126. REVOLVING LINE OF CREDIT. This Mortgage secures the In~ebtedness 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. Grantor presenlly assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGÊ,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 otherwise provided in this Mortgage, Grantor shall pay to lender all amounts secured by this Mortgage as they become due and shall striclly perform all af 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 by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain In possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to MaintaIn. Grantor shall maintain the Property in good condition and promplly perform all repairs, replacements, and maintenance necessary to preserve its value. , Compliance With Environmental Laws. Grantor represents and warrants to lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, 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 of, or reason to believe that there has been, except as previously disclosed to and aCknowledged by lender In writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user 01 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. . Grantor authorizes lender and its agents to enter upon the Property to make such Inspections and tests, at Grantor's expense, as lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, 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, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, Including the obligation to indemnify, shall survive the payment 01 the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, 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 the Property or any portion of the Properly. Without limiting the generality 01 the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without lender's prior written consent. Removal of Improvements. Grantor shall not demolish or remove. any Improvements from the Real Property without lender's prior written consent. As a condition to the removal of any Improvements, lender may require Grantor to make arrangements satisfactory to lender to replace such Improvements with Improvements of at least equal valuå. Lender's Right to Enter. lender and lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions 01 this Mortgage. Compliance with Governmental Requirements. Grantor shall promplly 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, ¡¡i.ï.·.·.~I!~¡i· ··¡:I~W:.:I.Ij.;:::i j.~. iM.·I~··~0 @f[~fl~~fl~ 091,,8491. !.¡:;:i*i*:::~:::::;: 1"·: Ò i ~!"+""" MdH''i''c:iÄGE (Continued) Lòan No: 64003341 COO;;.~4 Page 2 ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized, Lender 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 contract, 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 Iree 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 01 taxes and assessments not due as further specified In the Right to Contest paragraph. Right to Contest. Grantor may withhold paYQ'1ent of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the 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) 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 sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and lender and Shall satisfy any adverse judgmel)t 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 satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials, Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurançe with standard extended coverage endorsements on a replacement basis for the full Insurable value c~vering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgapee clause in fav9r of Lender. Policies shall be written by such insurance companies and in such lorm 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 ajdiminished without a minimum of thirty (30) 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 Management 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 credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such Insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property II the estimated cost of repair or replacement exceeds $1,000,00. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. 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 Property. 1/ Lender elects to apply 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 lirst to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, il any, shall be applied to the principal balance 01 the Indebtedness. 1/ Lender holds any proceeds after payment in full 01 the Indebtedness, 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 Indebtedness shall constitute compliance with the insurance provisions under this Mortgage, to the extent compliance with the terms of this Mortgage would constitute a duplication of insurance requirement. If any proceeds from the Insurance become payable on loss, the provisions in this Mortgage for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness. LENDER'S EXPENDITURES. If Grantor fails (A) to keep the Property free of all taxes, liens, security Interests, encumbrances, and other claims, (B) to provide any required insurance on the Property, (C) to make repairs to the Property or to comply with any obligation to maintain Existing Indebtedness in good standing as required below, then Lender may do so. 1/ any action or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will. then bear interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date of repayment by Granlor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Credit Agreement and be 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 as 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 entilled on account of any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following provisions relating to o~nershlp of the Property are a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable tille 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 tille Insurance policy, tille report, or finaltille 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 Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the tille to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's tille 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 entilled 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 Indebtedness is paid in full. EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Mortgage: Existing LIen. The lien of this Mortgage securing 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 f<;" 091..8491, Lòan No: 64003341 MORTGAGE (Continued) C00335 Page 3 under the instruments evidencing such indebtedness, or any delault 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 written consent 01 Lender. Grantor shall neither request nor accept any future advances under any such security agreement without the prior written consent 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 take such steps as may be necessary to defend the action and obtain the award, Grantor may be the nominal party In such proceeding, but Lender shall be entilled to participate In the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such Instruments and documentation as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. II all or any part of the Property Is condemned by eminent domain proceedings or by any proceeding or purchase In lieu of condemnallon, Lender may at Its elecllon 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 shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by Lender In connecllon with the condemnallon. 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 sl1all 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 Rel,il PrOPf3r:ty~ Gr~nt9r sha.I,1 r~¡mþurse Lender for all taxes, as described below, together with all expenses Incurred In recording, perfecting or cpntinuingthls Môrtgage, Inèlu¡jllng without limitation all' taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. , Taxes. The following shall constitute taxes to 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 deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the 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 event shall have the same effect as an Event of Default, and Lender may exercise any or all of lis available remedies lor an Event of Default as provided below unless Grantor either (1) pays the tax before II 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 sallsfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as á security agreement 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 Unilorm Commercial Code as amended from time to lime. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and conllnue 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 on the first page of this Mortgage. FURTHER ASSURANCESj ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-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 Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds 01 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, be necessary or desirable In order to effectuate, complete, perfect, conllnue, or preserve (1) Grantor's obligations under the Credit Agreement, this Mortgage, and the Related Documents, and (2) 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 soie opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. II 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 Mortgage and suitable statements of termination of any ~nanclng statement on file evidencing Lender's sec'urlly interest in the Rents and the Personal Property. Grantorwill pay, If permitted by applicable law, any reasonable termination fee as determined by Lender from time to time, 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 connecllon 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. (8) Grantor does not meet the repayment terms of the Credit Agreement. (C) Grantor's action or Inacllon 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 tille or sale of the dwelling, creation 01 a senior lien on the dwelling without Lender's permission, foreclosure by the holder 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 Defaull 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 b'e required to pay. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party Under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without nollce to Grant,or, 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 may require any tenant or other user of the Property to make payments of rent or use fees dlreclly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-ln-Iact 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 lis rights under this subparagraph either In person, by agent, or through a receiver. Appoint Recelv'er. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from 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, 4;:r.i~11:::::::~~::;~ ~1d~':¡~j.,:,:' ;.:~m..~~, .;:::::~~~~::::,: Moi:ftG'AGE (Continued) Lòan No: 64003341091.8t.}91. C n n I) ,., 6 . " ',' ..) .1 Page 4 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 applièable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amountà received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession of the Pr9perty atler the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantór, Grantor shall become a tenant at sufferance of Lender or the purchaser 01 the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Credit Agreement or available at law or in ~~ ' 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 tlrne and place of any public sale of the Personal Property or of the time atler which any private sale or other Intended disposition 01 the Personal Property is to be made. Reasonable nolice shall mean notice given at least ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made In conjunction with any sale of the Real Property. Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by Lender to choose anyone remedy will not bar Lender from using any other remedy. II Lender decides to spend money or .to perform any of Grantor's obligations under this Mortgage, atler 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. II Lender Institutes any suit or action to ~nforce 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 Lenderlncurs that in Lender's opinIon are 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. Expens~s covered by this paragraph Include, without limitation, however subject to any limits under appliç:able law, Lender's reasonable attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees atler default and' referral to an attorney n9t 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 tille 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. NOTIC,ES. 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 rec~ived by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from the holder of any lien which 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, Lender Inlormed at all times of Grantor's current address. Unless otherwise provided or required by law, If there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. It will be Grantor's responsibility to tell the others of the notice from Lender.' , MISCELLANEOUS PROVISION,S. The followh1g miscellaneous provisions àrea 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 federallliw 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. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's raquestto submit to the jurisdiction 01 the courts of Lincoln County, State of Wyoming. No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under this Mortgage unless Lender does so iri writing. The fact that Lender delays or omits to exercise any right will not mean that Lender has given up that right. If Lender does agree In writing to give 4P .gn,e of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of this Mortgage. Grantor also understandS .that if Lender does consent to a request, that does not mean that Grantor will not have to get Lender's consent again if the situation happens again. Grantor further understarids that just because Lender consents to one or more of Grantor's requests, that does not mean Lender will ba required to consent to any of Grantor's future requests. Grantor waives presentment, demand lor 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. Severability. If a court finds that any provision of this Mortgage is not valid or should not be. enforced, that fact by itself will not mean that the rest 01 this Mortgage will not be valid or enforced. Therefore, a court will enforce the rest of the 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 interest or estate created by this Mortgage with any other Interest or estate In the Property at any time held by or for the benefit of Lender in any capacity, wilhoutthe written consent of Lender. Successors and Assigns. Subject to any limitations stated in this Mortgage on transfer 01 Grantor's interest, this Mortgage shall be binding upon and Inure to the benefit of the parties, their successors and assIgns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness. Time Is of the Essence. lime is of the essence in the performance of this Mortgage. Waiver of Homestead Exemption. Grantor hereby releases and wai'/es all rights and benefits of the homestead exemption laws of the State of Wyoming as to all Indebtedness secured by this Mortgage. DEFINITIONS. The following words shall have the following meanings when used in this Mortgage: Borrower. The word "Borrower" means JACOB ANDREW GALLOWAY and Includes all co-signers and co-makers signing the Credit Agreement and all their successors and assigns. Credit Agreement. The words "Credit Agreement" mean the credit agreement dated May 4, 2006, with credit limit of $45,175.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. NOTICE TO GRANTOR: THE CREDIT ,AGREEMENT CONTAINS A VARIABLE INTEREST RATE. EnvIronmental Laws. The words "Environmental Laws" mean any an,d all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, Including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S,C. Section 9601. et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U,S,C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage In the events of default section of this Mortgage. Existing Indebtedness. The words "Existing Indebtedness" mean the ' indebtedness described in the Existing Liens provision of this Mortgage. .. 091..8491' MORTGAGE (Continued) C003:i7 Page 5 Loan No: 64003341 Grantor. The word "Grantor" means JACOB ANDREW GALLOWAY. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may caU$e 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 limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also Includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The Word "Improvements" means all existing and future Improvements, buildings, structures, mobile homes affixed on 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, consolidations of and substitutions for the Credit Agreement or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with Interest on such amounts as provided In this Mortgage. Lender. The word "Lender" means FIRST NATIONAL BANK - WEST, its successors and assigns, The words "successors or assigns" mean any 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 ali 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 ali accessions, parts, and additions to, all replacements of, and ali substitutions for, any of such property; and together with ali 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 coliectively 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, security 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 benelits derived from the Property. VING READ AlL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. STATE OFwtJð(YIl ~ COUNTY OF /; ~~OIV'L. ) ) SS ) TRISTAN SMITH NOTARY PUBLIC COUNty .Ö/i ~.' '. ... stArt OF LlN(;:OLN ~ wYoMING MY., ~ÓMM ~§lðNÉXÞIF@AP.AJl ~2,.~QQQ On this day before me, the undersigned Noiary Public, personally appeared JACOB ANDREW GALLOWAY, to me known to be the individual described in and who executed the Mortgage, and acknowledged that he or she signed the Mortgage as his or her free and voluntary act and deed, for the uses and purposes therein mentioned. Given unde~~al this BY -:~ 0 . Þj day of 'p1~ , Residing at ~ My commission eXPlres~r' I ,20 ok:> . Notary Public In and for the State of ttr~·IJ ..zt .2OØi LASER PRO Lending, V.r. 5.31.00.004 Copr. Harl.nel fin&nc~1 SolUlions, Inc. 1i97, 2001" All Rlghlt Ru.'....'" _ WY D:\LASERPRO\fNB\CFI\LPL\G03FC TR.1741t PR-7 r,,·,j'W"''''1 '·'<"'--'-I",··..-.¡' : l~~~:;illiID~U!]~t. ~.:I~:IZ~jj~;:;>' ~:~~;:¡~~ili