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HomeMy WebLinkAbout921516 000858.. RECEIVED 8/21/2006 at 11 :34 AM RECEIVING # 921516 BOOK: 630 PAGE: 858 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY , , I ('; () ~ \ \t-.- I -~_.,._- '. -.--- State of Wyoming Space Above This line For Recording Data REAL ESTATE MORTGAGE (With Future Advance Clause) 1. DATE AND PARTIES. The date of this Mortgage is 06-29-2006 are as follows: and the parties and their addresses MORTGAGOR: T-COVENANT, INC., A WYOMING CORPORATION PO BOX 1010 THAYNE, WY 83127 ({ o Refer to the Addendum which is attached and incorporated herein for additional Mortgagors. LENDER: THE BANK OF STAR VALLEY ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF WYOMING 384 WASHINGTON STREET PO BOX 8007 AFTON, WY 83110 2. MORTGAGE. For good and valuable consideration, the receipt and sUfficiency of which is acknowledged, and to secure the Secured Debt (hereafter defined), Mortgagor grants, bargains, conveys, mortgages and warrants to Lender, with the power of sale, the following described property: SEE EXHIBIT A ATTACHED HERETO AND MADE A PART HEREOF The property is located in LINCOLN (County) at , THAYNE , Wyoming 83127 (Address) (City) (Zip Code) Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop producers, and all existing and future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described above (all referred to as "Property"). The term Property also includes, but is not limited to, any and all water wells, water; ditches, reservoirs, reservoir sites and dams located on the real estate and all riparian and water rights associated with the Property, however established. I ¡ I ! WYOMING. AGRICUL TURALlCOMMERCIALREAL ESTATE SECURITY INSTRUMENT (NOT FOR FNMA, FHLMC, FHA OR VA USE, ANO NOT FOR CONSUMER PURPOSES) .. (page 1 of 8) E.xf5EiìTl.M © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCQ·RESI·WY 1/16/2003 ~) f ";')', /. i.-"~' ~ -7. i / - ~ / .' ,.. '.'" .,' . :,~.; :J' ... I: ... : _, ';. "....,.,. ._,... . 0921.51.8 000859 3. MAXIMUM OBlIGATJON .LIMIT. The otal prin. . al Brry!?l;Jnt 9.1 th.~. Secured Debt (hereafter defined) secured by this ~'."'.'."" ...:; ...... Mortgage Bt Bny one time shBII n eed 20. ':':':"!~;" ~W;. .:¡,!,: . This limitation of .amount noes not '.'.' ,'.',' .','.' include interest, loan charges, com .: ment f , b~þ'ke om~ìisions, Bttorneys' iees Bnd other charges vBlidly made pursuant to this Mortgage Bnd noes r~.ot Bppl "':: an .... r infifest Bccrued on such Bdvances) made under the terms of this Mortgage to protect lender':':" rit n 0 pjrform Brj~ of the covenants contained in this Mortgage. future .advances are L:ontemplated Bnd, Blon h 0 ure1';bbligatio;:¡:~, Bre secured by this Mortgage even'though.all Dr part may not yet be BdvBnced. Nothing in this Mortgage, however, shall constitute B commitment to make Bdnitional Dr iuture loans Dr .advances in .any .amount. Any such L:ommitment would need to be Bgreento in B separ.ate writing. 4. SECURED DEBT DEFINED. The term "Secured Debt" inclunes, but is not limited to, the iollowing: A. The promissory note(s), !:ontract(s), guaranty(ies) or other evidence of nebt nescribed below Bnd .all extensions, renewals, modifications Dr substitutions. (When referencing lhe debts below it is suggested lhal you include items .such .as borrowers' names and addresses, note principal amounts, commercial revolving lo.an agreemenl'.s maximum .amount, interest rates, variable rate lerms, maturity dates, etc.) DNE PRDMISSDRY NDTEDATfD £/29/06INTtlE AMDUNT DF $11,12D.DO B. All iuture .adv.ances irom Ümder to Mortgagor Dr other iuture obligations of Mortgagor to lender under Bny promissory note, !:ontract, guar.anty, Dr other -evidence of nebtexisting now Dr executed Bfter this Mortgage whether Dr not this Mortgage is specifically referred to in the evidence of nebt. C. All obligations Mortgagor owes to lender, which now -exist or m.ay later .arise, to the extent not prohibited by law, including, but not limited to, liabilities ior overdrafts relating to Bny neposit Bccount agreement between Mortgagor .and lender. D. All Bdditional sums Bdv.anced .and expenses incurred .by lender ior insuring, preserving or otherwise protecting the PTDperty .and its v.alue .and Bny other sums .adv.anced Bnd -expenses incurred by lender under the terms of this Mortgage, plus interest .at the highest r.ate in effect, iTDm time to time, .as provided in the Evidence of Debt. E. Mortgagor's performance under the terms of .any instrument evidencing .a nebt by Mortgagor to lender Bnd Bny Mortgage securing, gu.arBntying, or otherwise relating to the nebt. If more "than one person signs "this Mortgage as Mortgagor, each Mortgagor .agrees that "this Mortgage will secure BII iuture Bdv.ances Bnd iuture obligations nescribed Bbove that .are given to or incurred by .anyone Dr more Mortgagor, Dr Bny one Dr more Mortgagor Bnd others. This Mortgage will not secure Bny other nebt if lender i.ails, with respect to such other nebt, to make any required nisclosure about this Mortgage or if lender iails to give Bny required notice of the right Df rescission. E. PAYMENTS. Mortgagor Bgrees to m.ake BII payments on the Secured Debt when nue Bnd in Bccornance with the terms of the Evidence Df Debt Dr this Mortgage. 6. CLAIMS AGAINST TITLE. Mortgagor will pay .all taxes, Bssessments, liens, encumbr.ances, lease p.ayments, ground rents, utilities, Bnd other charges relating to the Property when nue. lender may require Mortgagor to provide to lender copies of BII notices that such amounts .are due Bnd the receipts evidencing Mortgagor's payment. Mortgagor will rlefenrl title to the PTDperty Bgainst .any daims that would impair the lien of this Mortgage. Mortgagor agrees to Bssign to lender, BS requesterl by lender, Bny rights, daims or nefenses which Mortgagor may have .against parties who supply labor or materials to improve Dr maintain the Property. I 7. PRIOR SECURITY JNTERESTS. With regard to .any other mortgage, rleed of trust, security Bgreement or other lien rlocurrient that created .a prior security interest or -enL:umbrBnce on the PTDperty Bnd that may have priority over this Mortgage, Mortgagor .agrees: A. 'To make BII payments when nue Bnd to perform or !:omply with BII L:ovenants. B. 'To pTDmptly deliver to lender Bny notices "that Mortgagor receives irom the holder. C. . Not to make Dr permit Bny modification Dr extension of, and not to request Dr .accept any iuture Bdvances under '.any note Dr agreement securerl by, the other mortgage, rleerl of trust Dr security Bgreement unless lender L:onsents in writing. B. DUE ON SAlE OR ENCUMBRANCE. lender may, .at its Dption, declare the entire balance of "the Secured Debt to be immediately rlue .and paYBble upon the creation of any lien, encumbrance, transfer, Dr sale, Dr contract ior Bny of these on the Property. tlowever, if the PTDperty includes Mortgagor's residence, this section shall be subject to the restrictions imposed by iederal law (12 C.f.R. 591), .as .applicBble. for the purposes of this section, the term "Property" Blso includes .any interest to .all Dr Bny part of the Property. This L:ovenant shall run with the Property and shall remain in eifect until the Secured Debt is paid in iull.and this Mortgage is released. ..2001 BankeuSyJrtems, Inc., St. L:loud, MN 'Form AGC (page 2 Df Bj ~ -y:- ;mm¡1!~m~~~~f¡ -..,-...-..................-..-...-.,.=... , ..................... 0921511~ 000860 S. TRANSfER Of AN INTEREST IN THE MORTGAGOR. If Mortgagor is lIn entity other than 11 naturlll person (such liS 11 corporlltion or other organization), le~~¡:;rnay :A~nd :.... i' . 'Vment if (1) 11 beneficial interest in Mortgagor is sold or transferred; (2) there is 11 change , r' e$1er *e iiinti .... of members of 11 partnership or similar entity; or (3) there is B change in ownership of rrtre than :'. p~~ce ng stock of 11 corporBtion or similar entity. -However, lender mllY not rlemand payment in .. .ov· ·..·on ibited by law BS of the date of this Mortgage. 10.ENTITY WARRANTIES AND REPRE' ATI If ortgagor JS lIn entity other than 11 naturBl Þ~rson (such liS 11 corporation or other organization). Mortgagor mllkes to lender the following wllrranties lInd representations which shlll1 be continuing liS Jong liS the Secured Debt remains outstandinfj: A. Mortgagor is lIn entity which is rluly orfjanized lInd vlllirlly existing in the Mortgagor's state of incorporlltion (or i organization). Mortgagor is in goorl standing in 1111 states in which Mortgagor transacts business. Mortfjagor has i the power lInd lIuthority to own the Property Bnd to carryon its business BS now being conducted Bnd, liS i lIpplicable, is ! ualified to rlo so in each state in which Mortgagor operates. B. I The execution, rlelivery Bnd performance of this Mortgage by Mortfjagor Bnd the oblifjation evidenced by the : Evidence of Debt are within the power of Mortgagor, have been rluly lIuthorized, have received BII necessary ! fjovernmental approval, Bnd will not violate Bny provision of law, or orrler of court or fjovernmental agency. C. ' Other than rlisclosed in writing Mortgagor has not changed its name within the last ten years lInd has not used ! lIny other trade or fictitious name. Without lender's prior written consent, Mortfjagor rloes not lInd will not use . Bny other name and will preserve its existing name, trade names and frBnchises until the Secured Debt is satisfied. 11. PROPERTY CONDITION, ALìERATIONS AND INSPECTION. Mortgagor will keep the Property in fjood condition Bnd make 1111 repairs that Bre reasonably necessary. Mortfjagor will give lenrler prompt notice of Bny Joss or rJamage to the Property. Mortgagor will keep the Property free of noxious weeds and fjrasses. Mortgagor will not initiate, join in or consent to Bny chanfje in any private restrictive covenant, zoning orrlinance or other public or private restriction limiting or defining the uses which may be made of the Property Dr Bny part of the Property, without lender's prior written consent. Mortgagor will notify lender of all .demands, proceedings, claims, lInd actions Bgainst Mortgagor or any other .owner made under law Dr regulation regarding use, ownership and occupancy of the Property. Mortgagor will comply with all legal re! uirements Bnd restrictions, whether public Dr privBte, with respect to the use of the Property. Mortgafjor 1IIso Bgrees that the nature of the occupancy and use will not change without lender's prior written consent. No portion of the Property will be removed, rJemolisherl Dr materially 1IItered without lenrler's prior written consent except that Mortgagor has the right to Ti'!move items of personal property comprising a part of the Property that become worn Dr obsolete, provided that such personal property is replaced with other personal property Bt least equal in value to the replacerl personal property, free irom Bny title retention device, security Bgreement or other imcumbrance. Such replacement of personal property will be rJeemed subject to the security interest createrl by this Mortgage. MortfJagor shall not partition or subrlivide the Property without lender's prior written consent. Lender or Lender's Bgents may, lit lender's option, enter the Property at Bny reasonable time for the purpose of inspecting the Property. Any inspection of the Property shall be entirely ior lender's benefit lInd Mortgafjor will in no way rely on lender's inspection. 12. AUTHORITY TO PERFORM. If Mortgafjor iails to perform .any of Mortgagor's duties under this Mortgage, Dr .any other mortgage, rleed of trust, security lIgreement or other lien rlocument that has priority over this Mortgage, Lender may, without notice, perform the rJuties or cause 1hem 10 be performerl. Mortgagor lIppoints lender liS lIttorney in fact 10 sign Mortgagor's name or pay lIny lImount necessary for performance. If .any construction on the Property is rliscontinued Dr not carried on in a reasonable manner, lender may rJo whatever is necessary 10 protect lenrler's security interest in the Property. This may include completing the construction. lender's right to perform ior Mortgagor shall not create lIn obligation to perform, lInd Lender's iailure to perform will not preclurle lender irom exercising Bny of lender's other rights under the law or this Mortgage. Any .amounts paid by lender ior insuring, preservinfj or otherwise protecting the Property lInd lender's security interest will be rlue on rlemand .and will bear interest irom the rJate of the payment until paid in full lit 1he interest rate in effect irom time to time lIccorrling to the terms of the Evidence of Debt. 13. ASSIGNMENT OF l.EASES AND RENTS. Mortgagor lIssigns, grants, bargains, conveys, mortgages lInd wllrrants to Lender liS lIdditional security all the right, title lInd interest in the iollowing (Property). A. Existing Dr future leases, subleases, licenses, fjuaranties and lIny other written Dr verbal Bgreements for the 1Jse Bnd occupancy of the Property, including but not limited to, Bny extensions, renewBls, modifications Dr replacements (leases). . B. Rents, issues Bnd profits, including but not limited to, security rleposits, minimum rents, percentage rents, .additional rents, common area maintenance charges, parking chBrges, real estate taxes, other lIpplicable taxes, insurance premium contributions, liquidaterl .damages iollowing rJefault, cancellation premiums, ~Ioss of rents" insurance, guest receipts, revenues, royalties, procee.ds, bonuses, .accounts, contrBct rights, general intangibles, .and ill! rights .and claims which Mortgagor may have that in Bny WBY pertain to or .are on lIccount of the use" or occupancy of the whole or ilny pilrt of the Property (Rents). In 1he event Bny item listed ilS .Leases Dr Rents is determined to be personal property, this Assignment will .also De regarded liS a security .agreement. ~M ©HI93, .2001Banker>õ Sy>õtena, Inc., St. Cloud, MN -Form AGCO-RESI-WY 1/16/.2003 " (page 3 Df B) "':'!"" . 'c. 'S'íT - ................. 'r" .,-,..~." '-' .....~~".__... .".,.....~~".._...,., "-"""""~"''''. '. ~'., , . ...... ......... .. '.'" ·..:O...."~,,-,,..,,~··_·-h ,~.,.~,.....:...... ...".,., ,.t".'....,_, . ..~..:.,......'.-._.:.. . i . I ! 0921..""ilG I ! 0008~a Mortg~gor will promptly provide Lender with copies of the Leases and will certify these Leases are true and correct copies. The existing Leases will be p. ed 0 ißcuti At:~ignment, and all of the future Leases and any other information with respect to these L will '~f¡ovi i "tely after they are executed. Mortgagor may collect, receive, enjoy and use the Rents so ng as .... rtg~sor :..:.:..,.... i ault. Mortgagor will not collect in advance any Rents due in future lease periods, unless tg~J or ~rst '.:' tai~:;fEmde written consent. Upon default, Mortgagor will receive any Rents in trust for Lender and Mo. a"or w co~mingle t Rents with any other funds. When.Lender so directs, Mortgagor will endorse and deliver' paym of ::Rents fr the Property to Lender. Amount's collected will be applied at Lender's discretion to the Secured Debts, the costs of managing, protecting and preserving the Property, and other necessary expenses. Mortgagor agrees that this Security Instrument is immediately effective between Mortgagor and Lender. This Security Instrument will remain effective during any statutory redemption period until the Secured Debts are satisfied. Unless otherwise prohibited or prescribed by state law, Mortgagor agrees that Lender may take actual possession of the Property without the necessity of commencing any legal action or proceeding. Mortgagor agrees that actual possession of the Property is deemed to Occur when Lender notifies Mortgagor of Mortgagor's default and demands that Mortgagor and Mortgagor's tenants pay all Rents due or to become due directly to Lender. Immediately after Lender gives Mortgagor the notice of default, Mortgagor agrees that either Lender or Mortgagor may immediately notify the tenants and demand that all future Rents be paid directly to Lender. As long as this Assignment is in éffect, Mortgagor warrants and represents that no default exists under the Leases, and the parties subject to the Leases have not violated any applicable law on leases, licenses and landlords and tenants. Mortgagor, at its sole cost and expense, will keep, observe and perform, and require all other parties to the Leases to comply with the Leases and any applicable law. If Mortgagor or any party to the Lease defaults or faifs to observe any applicable law, Mortgagor will promptly notify Lender. If Mortgagor neglects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender's option, enforce compliance. Mortgagor will not sublet, modify, extend, cancel, or otherwise alter the Leases, or accept the surrender of the Property covered by the Leases (unless the Leases so require) without Lender's consent. Mortgagor will not assign, compromise, subordinate or encumber the Leases and Rents without Lender's prior written consent. Lender does not assume or become liable for the Property's maintenance, depreciation, or other losses or damages when Lender acts to manage, . 'protect or preserve the Property, except for losses and damages due to Lender's gross negligence or intentional torts. Otherwise, Mortgagor will indemnify Lender and hold Lender harmless for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its remedies against any party obligated under the Leases. 14. CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. If the Property includes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor's duties under the covenants, by-laws, or regulations of the condominium or planned unit development. 15. DEFAULT. Mortgagor will be in default if any of the following Occur: A. Any party obligated on the Secured Debt fails to make payment when due; B. A breach of any term or covenant in this Mortgage, any prior mortgage or any construction loan agreement, security agreement or any other document evidencing, guarantying, securing or otherwise relating to the Secured Debt; C. The making or furnishing of any verbal or written representation, statement or warranty to Lender that is false or incorrect in any material respect by Mortgagor or any person or entity obligated on the Secured Debt; D. The death, dissolution, or insolvency of, appointment of a receiver for, or application of any debtor relief law to, Mortgagor or any person or entity obligated on the Secured Debt; E. A good faith belief by Lender at any time that Lender is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment is impaired or the value of the Property is impaired; F. A material adverse change in Mortgagor's business including ownership, management, and financial conditions, which Lender in its opinion believes impairs the value of the Property or repayment of the Secured Debt; or G. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. 16. REMEDIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure, mediation notices or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt and foreclose this Mortgage in a manner provided by law if this Mortgagor is in default. At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies provided by law, the Evidence of Debt, other evidences of debt, this Mortgage and any related documents including without limitation, the power to sell the Property. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether expressly set forth or not. The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require full and complete cure of any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 3, 2Ò01 Bankers Systems. Inc., St. Cloud. MN Form AGC9:;:\j _ 1/16/2003 . f~~~;iml ',;Jpage '! of 8) ,,'.' ~T ;,¡,. \ ~1¡;¡~~m1T¡¡] ....".............L.A>k.........,.... -,~. -'''-'''",,'''''' .'"-: . ~',.:..I,..;.',...,~..'-,.'", t'. ''''.',:" '..=' r __:=:.,"""",-""" ......_~..-,.',- '''', ,.,.;.................."'....., , '-,.,,- _...-,'-...,..,..,...,...."",....~_:. ·'..·..~""r·.!...:'.·...',· . ..... '.', .:..,~.~.>1';;:,.....:.-._...._,..__. .... ,.. ·.!...,'..~.~~.~.:I·." O.9Z1516 000862 20. INSURANCE. Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the Pr .'. in~~. ag 10 b't:Hire, theft and other hazards and risks reasonably associated with the Propert u to i~~ . e !r Other hazards and risks may include, for example, coverage against loss due t oods cit,~ flod"; ing i '>'~nce shall be maintained in the amounts and for the periods that Lender requires. h Le:~~ qu ,:, S pursu..... t to the preceding two sentences can change during the term of the Secured Debt. insJf car'iJer provi41rg the insurance shall be chosen by, Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property according to the terms of this Mortgage. All insurance policies and renewals shall be acceptable to Lender and shall include a standard "mortgage clause" and, where applicable, "lender loss payee clause.' Mortgagor shall immediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of paid premiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance carrier and Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless Lender and Mortgagor otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the Secured Debt, whether or not then due, with any excess paid to Mortgagor. If Mortgagor abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay the Secured Debt whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Mortgagor otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of scheduled payments or change the amount of the payments. If the Property is acquired by Lender, Mortgagor's right to any insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the extent of the Secured Debt immediately before the acquisition. B. Mortgagor agrees to maintain comprehensive general liability insurance naming Lender as an additional insured in an amount acceptable to Lender, insuring against claims arising from any accident or occurrence in or on the Property. C. Mortgagor agrees to maintain rental loss or business interruption insurance, as required by Lender, in an amount equal to at least coverage of one year's debt service, and required escrow account deposits (if agreed to separately in writing), under a form of policy acceptable to Lender. . 21. NO ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in à separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 22. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor will provide to Lender upon request, any financial statement or information Lender may deem necessary. Mortgagor warrants that all financial statements and information Mortgagor provides to Lender are, or will be, accurate, correct, and complete. Mortgagor agrees to sign, deliver, and file as Lender may reasonably request any additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Mortgage and Lender's lien status on the Property. If Mortgagor fails to do so, Lender may sign, deliver, and file such documents or certificates in Mortgag¿r's name and Mortgagor hereby irrevocably appoints Lender or Lender's agent as attorney in fact to do the things necessary to comply with this section. . I 23. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Mortgage are joint and individual. If Mortgagor signs this Mortgage but does not sign the Evidence of Debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. Mortgagor agrees that Lender and any party to this Mortgage may extend, modify or make any change in the terms of this Mortgage or the Evidence of Debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Mortgage. The duties and benefits of this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender. If this Mortgage secures a guaranty between Lender and Mortgagor and does not directly secure the obligation which is guarantied, Mortgagor agrees to waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation including, but not limited to, anti-deficiency or one-action laws. ~ ©1993. 2001 Bankers Systems. Inc.. St. Cloud. MN Form AGCO-RESI-WY 1/16/2003 {)~ ," .,}!' ;. .... "'i." (page 6 of 8) ~.-T. I J ,,'- \ , ., '''~-'''~-=----'''~'-'-''''''.''''''"''''''''.....-",:..___.''''''''''J'__'''''''-''''''''''''''''''_ .,.,:-.".,.c.-"''''.....~. -'>- _" ", .""""._~,~.. ,...,..,<'..,...~.....-&".I".......~...,. . '.' ",0;: ,:...".;A<...~........_!I4,_,..-..;.,.."......tio.i_~.,.~.,~....."""'..,,...,....;.. . ., ......";.,,',,...,.,..:.,.._.,',...,._,.,~... _. _'", .';":',; "~-''':.''''._''I,' ._,. 09Z1S1 (:) 000863 17. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COllECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of LendE!:~~~!!~xpe/l. . M go r~~ches any covenant in this Mortgage. Mortgagor will also pay on demand all of Lender's ~~pe¡~ses d Ie I1.f insuring, preserving or protecting the Property or in any inventories, audits, inspections ø~ other ti L'" in respect to the Property. Mortgagor agrees to pay all costs and expenses incurred by 'nder in ng ot g Lender's rights and remedies under this Mortgage, including, but not limited to, attornef.'!?,' f.~s, os ,and 0 ..¡. er legal expenses. Once the Secured Debt is fully and finally paid, lender agrees to release¡!i!~ms M a Mortgâgor agrees to pay for any recordatidn costs. All such amounts are due on demand and will bear interest from the time of the advance at the highest rate in effect, from time to time, as provided in the Evidence of Debt and as permitted by law. 18. ENVIRONMENTAL lAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) "Environmental Law" means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances; court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) "Hazardous Substance" means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environmental Law. Mortgagor represents, warrants and agrees that, except as previously disclosed and acknowledged in writing: A. No Hazardous Substance has been, is, or will be located, transported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in the ordinary course of business and in strict compliance with all applicable Environmental Law. B. Mortgagor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migrate from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Mortgagor has no knowledge of or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but not the obligation, to participate in any such proceeding including the right to receive copies of any documents relating to such proceedings. E. Mortgagor and every tenant have been, are and shall remain in full compliance with any applicable Environmental Law. F. There are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank, dump or well will be added unless Lender first consents in writing. G. Mortgagor will regularly inspect the Property, monitor the activities and operations on the Property, and confirm i that all permits, licenses or approvals required by any applicable Environmental Law are obtained and complied I . h ,Wit. , H. 'Mortgagor will permit, or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under or about the Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environmental Law. I. Upon Lender's request and at any time, Mortgagor agrees, at Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J. Lender has the right, but not the obligation, to perform any of Mortgagor's obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, warranty or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, which Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, lender may release this Mortgage and in return Mortgagor will provide Lender with collateral of at least equal value to the Property secured by this Mortgage without prejudice to any of Lender's rights under this Mortgage. L. Notwithstanding any of the language contained in this Mortgage to the contrary, the terms of this section shall survive any foreclosure or satisfaction of this Mortgage regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 3. 2001 Bankers Systems. Inc., St. Cloud, MN Form AGCO-. 19. CONDEMNATION. Mortgagor will give Lender prompt notice of any action, real or threatened, by private or public entities to purchase or take any or all of the Property, including any easements, through condemnation, eminent domain, or any other means. Mortgagor further agrees to notify Lender of any proceedings instituted for the establishment of any sewer, water, conservation, ditch, drainage, or other district relating to or binding upon the Property or any part of it. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims and to collect and receive all sums resulting from the action or claim. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Mortgage. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. .. . . ~'. .r: (page 5 of 8) n,.' <S.T , ,-', ;;-~;~:!;fl¡;¡::~~1:i~ .1;!¡;:~~:m:i:!:~;~i r~:~~1¡millm~m!ID ....-..."....."..,.... " ....-...-",.,....,....~,'". "",,·.··"'_c."'·....,-...'-, .......'.."."...,..................,......-,: ··n..".. O· fr~. --)I "'II r'. ... (-' , ·J~..\..,).L'U i I I Ii SIGNATURES: By signing below, Mortg attachments. Mortgagor also acknow I ! o Actual authority was granted to I 000864 covenants contained in this Mortgage and in any ortgage on the date stated above on Page 1. by r::~Folution signed and dated ~~¡ (Signature) (Date) (Signature) (Date) (Signature) (Date) o Refer to the Addendum which is attached and incorporated herein for additional Mortgagors, signatures and acknowledgments. ACKNOWLEDGMENT: STATE OF , COUNTY OF This instrument was acknowledged before me this by My commission expires: I } ss. day of Ilndividual) (Notary Public) STATE OF ~ . COUNTY OF 4AU":';~ This instrument s ackno edged before me this . ~Ð day of Q,~ h7 g. by . SHAREN TREFREN PRESIDENT AND SOLE SHAREHOLDER } ss. CBusin... or Entity Acknowledgment) of T·COVENANT.INC. a WYOMING CORPORATION My commission expires:3-~5-¿?¿' (Title(s)) (Name of Business or Entity) on behalf of the business or entity. 4/h,A1 ~ ~ / (J!:,y pu~ LUANN BRUHNS County of Lincoln State of Wyoming My Commission Expires March 25, 2007 ~ ©1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-AESI-WY 1/16/2003 'j 'n. -...,. (page 8 of 8) ) \ \ . .........._..~._. -.' . ~, - -,,',' ',"',',"1." :- .... 000865 24. APPLICABLE lAW; SEVERABILITY; INTERPRETATION. This Mortgage is governed by the laws of the jurisdiction in which lender is located, except to t.h~t~>.<ten. : ~rwi qulr:11'V the laws of the jurisdiction where the Property is located. This Mortgage is complet"Yan'¡! ful ,,'.., gr Thi~:¡, ortgage may not be amended or modified by oral agreement. Any section or clause iij[ this M ga men·..· or any agreement related to the Secured Debt that conflicts with applicable law will nof1:þ'e ~tfec~w at la xpressly or impliedly permits the variations by written agreement. If any section or clause "~1:,;,;~rs M"" nnot be nforced according to its terms, that. section or clause will be severed and will not affect the "ê'ñforcea of e remainder of this Mortgage. Whenever use'd, the singular shall include the plural and the plural the singular. The captions and headings of the sections of this Mortgage are for convenience only and are not to be used to interpret or define the terms of this Mortgage. Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise required by law, any notice shall be given by -delivering it 9r:by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or to any other address èlesignated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 26. WAIVERS. Except to the extent prohibited by law, Mortgagor waives any right regarding the marshalling of liens and assets and all homestead exemption rights relating to the Property~ 27. U.C.C. PROVISIONS. If checked, the following are applicable to, but do not limit, this Mortgage: o Construction loan. This Mortgage secures an obligation incurred for the construction of an improvement on the Property. .' o Fixture Filing. Mortgagor grants to lender a security interest hi all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Property. o Crops; Timber; Minerals; Rents, Issues and Profits. Mortgagor grants to lender a security interest in all crops, timber and minerals located on the Property as well as all rents, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Payment in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term "Property"). o Personal Property. Mortgagor grants to lender a security interest in all personal property located on or connected with the Property. This security interest includes all farm products, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all other items of personal property Mortgagor owns now or in the future and that are used or useful in the construction, ownership, operation, management, or maintenance of the Property. The term "personal property" specifically excludes that property described as "household goods" secured in connection with a "consumer" loan as those terms are defined in applicable federal regulations governing unfair and deceptive credit practices. o Filing As Financing Statement. Mortgagor agrees and acknowledges that this Mortgage also suffices as a financing statement and as such, may be filed of record as a financing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, image or other reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this Mortgage: o Line of Credit. The Secured Debt includes a revolving line of credit provision. Although the Secured Debt may be reduced to a zero balance, this Mortgage will remain in effect until released. o Separate Assignment. The Mortgagor has executed or will execute a separate assignment of leases and rents. If the separate assignment of leases and rents is properly executed and recorded, then the separate assignment will supersede this Security Instrument's "Assignment of leases and Rents" section. o Additional Terms. 3, 2001 Bankors Systoms, Inc., St. Cloud, MN Form AGC ~ ( ~. '- (page 7 of 8) , <;;~T: 1/16/2003 :~ ;~: :~~i~~~;mm!;iW ~"'_"-"~'~..'.'........" I"" .,.,.,'.... .......,..............~ .,~., ....- '''-' .-.....'-"---"-'",''' . ',.:,'...................,..,.,.......- ". ,..",.",..,.,..,,,....,-..,,,- ".",. . ,,'. '~rf. ',~.",. " ......,............. '. ... .. ,.. .:...,..__ .'o-~......_..... , 092151t~ 000866 EXHIBIT A PARCEL 2: A part of the SE1/4SW1/4 or Sectio~ 1¡9 west, located 1 1/4 m~les North described as follows: . 1, ~oWnship 3~ Northr Range f ThaYh~ and more pa~ticu¡a~~y ! Beginhing at a point Wbich lias 1r32!1 52/E ahd 678.00 fe~t a~ a b~arihg of corner of said Section 11, said poin of Bighway U.S. 89, thence r~n~ing N' line 150.0 fa2t, thence leaving s~id¡ SBge44'E, 2~O.40 !~et, thenc~ Soo13' 150.00 feet, thence N89Þ44'W. 290.40 .00 feet at a b~arin~ of S8.9~ OC~3/W iron the southwest lying ih the Easterly line 13'W along 5~id Easterly asterly line ahd running paral¡~l with 5aid Highway ~et to the point of begi1'1ning. J , )