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HomeMy WebLinkAbout926243 000743 RECORD TION REQUESTED BY: 1st Ba k Afton 314 S uth Washington St. P.O. B x 1620 Afton, Y 83110 th Washington St. x 1620 Y 83110 RECEIVED 1/2212007 at 2:22 PM RECEIVING # 926243 BOOK: 646 PAGE: 743 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY SEND TA NOTICES TO: 1 st Ba k Afton 314 S th Washington St. P.O. B x 1620 Afton Y 83110 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE LIEN. The lien of this Mortgage shall not exceed at anyone time $70,492.84. THIS MO TGAGE dated January 16, 2007, is made and executed between DANIEL MAX WORTON, A MARRIED MAN (ref rred to below as "Grantor") and 1st Bank, whose address is 314 South Washington St., P.O. Box 1620, Afton, W 83110 (referred to below as "Lender"). GRANT OF ORTGAGE. For valuable consideration. Grantor mortgages and conveys to lender all of Grantor's right. title, and interest in and to the followin described real property, together with all existing or subsequently erected or affixed buildings. improvements and fixtures; all easements, ights of way, and appurtenances; all water. water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation ri ts); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal nd similar matters. (the "Real Property") located in LINCOLN County, State of Wyor:ning: f Hyde Park Subdivision, Lincoln County, Wyoming as described on the official plat thereof. roperty or its address is commonly known as 15 EASY STREET, AUBURN, WY 83111. REVOLVING LINE OF CREDIT. This Mortgage secures the Indebtedness including. without limitation, a revolving line of credit. which obligates lender to ke advances to Grantor so long as Grantor complies with all the terms of the Credit Agreement. Such advances may be made. repaid. and emade from time to time. subject to the limitation that the total outstanding balance owing at anyone time. not including finance charges on uch balance at a fixed or variable rate or sum as provided in the Credit Agreement, any temporary overages. other charges, and any amounts ex ended or advanced as provided in either the Indebtedness paragraph or this paragraph. shall not exceed the Credit Limit as provided in the Cred Agreement. It is the intention of Grantor and lender that this Mortgage secures the balance outstanding under the Credit Agreement om time to time from zero up to the Credit Limit as provided in the Credit Agreement and any intermediate balance. Grantor pre ently 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 Pr erty. In addition, Grantor grants to lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORT AGE. INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY. IS GIVEN TO ECURE (A) PAYMENT OF THE INDEBTEDNESS AND (BI PERFORMANCE OF EACH OF GRANTOR'S AGREEMENTS AND OBLIGATIO S UNDER THE CREDIT AGREEMENT. THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED N THE FOllOWING TERMS: PAYMENT ND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. POSSESSIO AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the followin provisions: Posses ion and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, op rate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform all repairs, replacements, and maintenance necess ry to preserve its value. Compli nce With Environmental laws. Grantor represents and warrants to lender that: (1) During the period of Grantor's ownership of the Pro erty, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substa ce by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, e cept as previously disclosed to and acknowledged by lender in writing, (a) any breach or violation of any Environmental laws, (b) an use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about 0 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 of the Property shall use, generate, manufacture, store, treat, dispose of or relea e 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 authori s lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as lender may deem appropr ate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by lender shall be for len er'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 I warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazard us Substances. Grantor hereby (1) releases and waives any future claims against lender for indemnity or contribution in the event antor becomes liable for c,leanup or other costs under any such laws; and (2) agrees to indemnify, defend, and hold harmless lender gainst any and all claims, Ilosses, liabilities, damages, penalties, and expenses which lender may directly or indirectly sustain or suffer r suiting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage. disposal, release r threatened release occu~ring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have be n known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify and defend, shall survive the pay ent of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by lender's acquisit on of any interest in the Pr~perty, whether by foreclosure or otherwise. Nuisanc ,Waste. Grantor shall no~ cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Pro erty or any portion of the ~roperty. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party th right to remove, any timber, minerals (including oil and gas), coal. clay, scoria, soil, gravel or rock products without lender's prior written onsent. I Remov 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 uch Improvements with Improvements of at least equal value. lender' Right to Enter. lender and lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to lend r's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Complia co with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances. and regulations. now or hereafter in effec , of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest in good faith any such loan No: 64003439 09262;:¡~j MOk I üAGE (Continued) 0007 Page 2 law,o inance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor as 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 jeopardiz d. Lender may re uire Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty t Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in additi n to those acts s t forth above in this section, which from the character and use of the Property are reasonably necessary to protect and reserve the Proper y. DUE ON S LE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secu ed by this Mortgage u on 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. "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether lega , beneficial or equitabl ; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contra for deed, leasehold in erest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any benefici interest in or to any la d trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. H ever, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Wyoming law. LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payme t. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessm nts, water charge and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work do e on or for service rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the int rest of Lender under this Mortgage, except for the Existing Indebtedness referred to in this Mortgage or those liens specifically agreed to in writing by Lender, and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragr ph. Right Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispu e over the obligat n 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 n npayment, Granto shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or ot er security satisfa tory to Lender in an amount sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other c arges that could ccrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any advers judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any rety bond furnish d in the contest proceedings. Eviden e of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessmen s and shall authori e the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessm ts against the Pr erty. f Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are f rnished, or terials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on ace unt of the ervices, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender t at Grantor will pay the cost of such improvements. PROPERTY AMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: ance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endor ements on ement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application oinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies uch form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from e ch insurer contai ng a stipulation that coverage will not be cancelled or diminished without a minimum of thirty (30) days' prior writte 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 endors ment providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Gra tor or any other p rson. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a speci I flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, for the maximum amo nt of your credit I ne and the full unpaid principal balance of any prior liens on the property securing the loan, up to the maximum polic limits set under t e National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of t e loan. ion of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property if the estimated cost f repair or ent exceeds $1,000.00. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualt . Whether or not ender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance an apply the procee s to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the operty. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improv ents in a manne satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, payor reimburse Grantor from the p ceeds for the rea onable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not bee disbursed within 80 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used irst to pay any a unt owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to t e principal balanc of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Gra tor's interests may appear. Compli nce with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, comp iance with the ins ranee provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with th insurance provisi ns under this Mortgage, to the extent compliance with the terms of this Mortgage would constitute a duplication 0 insurance require ent. If any proceeds from the insurance become payable on loss, the provisions in this Mortgage for division of pro eeds shall apply 0 Iy to that portion of the proceeds not payable to the holder of the Existing Indebtedness. LENDER'S PENDITURES. If Grantor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and ot er claims, (6) to provi e any required insurance on the Property, (C) to make repairs to the Property or to comply with any obligation to maint in Existing Indebtednes in good standing as required below, then Lender may do so. If any action or proceeding is commenced that would materially affect Lend r's interests in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender bel ves to be appropriate 0 protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear interest at the ra e charged under the C edit Agreement from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will bee me a part of the Inde tedness and, at Lender's option, will (A) be payable on demand; (6) be added to the balance of the Credit Agreem nt and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insura ce 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' maturity. The Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shall be n addition to any othe rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender s all not be construed a curing the default so as to bar Lender from any remedy that it otherwise would have had. WARRANT ; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage: Title. rantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear f all liens and en umbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or n any title insuran e policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgag ,and (b) Granto has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defens of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Prope ty against the law ul claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interes of Lender under t is Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proc ding, but Lender hall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own c oice, and Granto will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to p rmit such particip tion. Compli nce With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing appli ble laws, ordinan es, and regulations of governmental authorities. Surviva of Promises. All promises, agreements, and statements Grantor has made in this Mortgage shall survive the execution a d delivery of this ortgage, shall be continuing in nature and shall remain in full force and effect until such time as Grantor's Indebtednes is paid in Loan No: 64003439 O~26Z43 TION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Procee ings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such s eps 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 entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will de iver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit uch participation. Applic tion of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purcha e in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the In btedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reason ble costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITIO OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and ch rges are a part of this Mortgage: Curren Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whate er other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all tax s, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitati n 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 payme ts on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder f the Credit Agreement; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made y Grantor. uent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same ffect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless rantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens sectio and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY GREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortga e: Securit Agreement. This instrument shall constitute a Security Agreement to the extent any of· the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Securit Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's securit interest in the Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and withou further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Granto shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remov , sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the roperty in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days a er receipt of written demand from Lender to the extent permitted by applicable law. Addres es. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest grante by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortga e. FURTHER SSURANCES; 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 ma e, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecor ed, 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 f trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certific tes, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, contin ,or preserve (1) Grantor's obligations under the Credit Agreement, this Mortgage, and the Related Documents, and (2) the liens a d security interests created by this Mortgage on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibi d by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connec ion with the matters referred to in this paragraph. Attorn y-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 Granto and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpos of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion to accomplish the matters referred to in the preceding paragraph. FULL PERF RMANCE. If Grantor pays all the Indebtedness when due, terminates the credit line account, and otherwise performs all the obligations i posed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable sta ements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. G antor will 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 mi representation at any time in connection with the Credit Agreement. This can include, for example, a false statement about Grantor's in ome, assets, liabilities, or any other aspects of Grantor's financial condition. (B) Grantor does not meet the repayment terms of the Credit reement. (C) Grantor's action or inaction adversely affects the collateral or Lender's rights in the collateral. This can include, for example, fai ure to maintain required insurance, waste or destructive use of the dwelling, failure to pay taxes, death of all persons liable on the account, tra sfer of title or sale of the dwelling, creation of a senior lien on the dwelling without Lender's permission, foreclosure by the holder of another Ii n, or the use of funds or the dwelling for prohibited purposes. REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter but subject to any limitation in the Credit reement 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: Accele te Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due an payable, including any prepayment penalty which Grantor would be required to pay. UCC R medies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under t e 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 foreclo ure, whether judicial or non-judicial, and collect the Rents, including amoUf1ts past due and unpaid, and apply the net proceeds, over and ab ve Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the full. EXISTING I MORTGAGE (Continued) 000745 Page 3 Existin existin balanc terms: preven securit DEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Mortgage: Lien. The lien of this Mortgage securing the Indebtedness may be secondary and inferior to the lien securing payment of an obligation with an account number of 64002897 to FIRST NATIONAL BANK. The existing obligation has a current principal of approximately $41,600.00 and is in the original principal amount of $55,000.00. The obligation has the following payment $457.00 per Month. Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to any default on such indebtedness, any default under the instruments evidencing such indebtedness, or any default under any documents for such indebtedness. ification. Grantor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security agreement as priority over this Mortgage by which that agreement is modified, amended, extended, or renewed without the prior written of Lender. Grantor shall neither request nor accept any future advances under any such security agreement without the prior consent of Lender. No Mo which conse writte Loan No: 640034390926243 MORTGAGE (Continued) 000746 Page 4 Proper y to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocabl designates Lende as Grantor's attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotia e the same and c lIect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the ob igations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its right under this subpa agraph either in person, by agent, or through a receiver. Appoi t Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Proper y, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Ren s from the Proper y and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may s ve without bond i permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of t e Property excee s the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a recei r. Judici I Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property. Nonju icial Sale. Lender may foreclose Grantor's interest in all or in any part of the Property by non-judicial sale, and specificall by "power of sal " or "advertisement and sale" foreclosure as provided by statute. Defici ncy Judgment. If permitted by applicable law, lender may obtain a judgment for any deficiency remaining in the Indeb edness due to Len er after application of all amounts received from the exercise of the rights provided in this section. Tenan y at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or lende otherwise beco s entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of l der or the purch ser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Proper y immediately upon the demand of lender. Other emedies. Lender shall have all other rights and remedies provided in this Mortgage or the Credit Agreement or available t law or in equity Sale 0 the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property arshalled. In exe cising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in on sale or by separa e sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender will give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after hich any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall ean notice given t least ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conj nction with any sa e of the Real Property. Electio of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by lende to choose anyone remedy will not bar Lender from using any other remedy. If Lender decides to spend money or to per orm any of Grant's obligations under this Mortgage, after Grantor's failure to do so, that decision by Lender will not affect Lender's righ to declare Grant in default and to exercise lender's remedies. Attorn ys' Fees; Expenses. If lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall b entitled to recove such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any co rt action is involv d, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in lender's opinion are necessary t any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand an shall bear interes at the Credit Agreement rate from the date of the expenditure until repaid. Expenses covered by this paragraph inclu e, without limitati n, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and lender's legal expenses whether or not th re is a lawsuit, including reasonable attorneys' fees after default and referral to an attorney not Lender's salaried e ployee and expen es for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-j gment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), survey rs' reports, and a raisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in ad ition to all other ums provided by law. NOTICES. ny notice required to be given under this Mortgage, including without limitation any notice of default and any notice of ale shall be given in w( ing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited ith a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered ail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of fore osure from the holder f any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of thi Mortgage. Any perso may change his or her address for notices under this Mortgage by giving formal written notice to the other person r persons, specifying t at the purpose of the notice is to change the person's address. For notice purposes, Grantor agrees to keep Lender inf rmed at all times of Gr ntor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice give by Lender to any Gra or is deemed to be notice given to all Grantors. It will be Grantor's responsibility to tell the others of the notice from Len er. MISCELlA EOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amen ments. What is written in this Mortgage and in the Related Documents is Grantor's entire agreement with lender co erning the matter covered by this Mortgage. To be effective, any change or amendment to this Mortgage must be in writing and must b signed by whoev r will be bound or obligated by the change or amendment. Captio Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret 0 define the provisi ns of this Mortgage. Gover ing law. This Mortgage will be governed by federal law applicable to lender and, to the extent not preempted by fede allaw, the laws 0 the State of Wyoming without regard to its conflicts of law provisions. This Mortgage has been accepted by lender in he State of Wyom g. No W ver by lender. Grantor understands Lender will not give up àny of Lender's rights under this Mortgage unless Lender does so in 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 writi g to give up one of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of thi Mortgage. Granto also understands that if lender does consent to a request, that does not mean that Grantor will not have to get lend's consent again i the situation happens again, Grantor further understands that just because lender consents to one or more of Grantor requests, that d es not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presentment, emand for payme t, protest, and notice of dishonor. Grantor waives all rights of exemption from execution or similar law in the Property, nd Grantor agrees that the rights of Lender in the Property under this Mortgage are prior to Grantor's rights while this Mortgage remains in ffect. Severa ility. If a court finds that any provision of this Mortgage is not valid or should not be enforced, that fact by itself will no mean that the res of this Mortgage will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Mortga e even if a provisi n of this Mortgage may be found to be invalid or unenforceable. Merge There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Pro erty at any time h Id by or for the benefit of Lender in any capacity, without the written consent of Lender. Succe ors and Assigns. Subject to any limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shal be binding upon a d inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a p rson other than G antor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the In ebtedness by wa of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebte ness. Time i of the Essence. Time is of the essence in the performance of this Mortgage. Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of the homestead exemption laws f the State of Wy ing as to all Indebtedness secured by this Mortgage. DEFINITION . The following words shall have the following meanings when used in this Mortgage: r. The word "Borrower" means DANIEL MAX WORTON and includes all co-signers and co-makers signing the Credit Agreement heir successors and assigns. Credit greement. The words "Credit Agreement" mean the credit agreement dated January 16, 2007, with credi limit of $70, 92.84 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consol dations of, Loan No: 6400343t)9Z6243 MORTGAGE (Continued) Page 5 and s bstitutions for the promissory note or agreement. NOTICE TO GRANTOR: THE CREDIT AGREEMENT CONTAINS A VÀRIABLE INTER ST RATE. Enviro mental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relatin to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Comp nsation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reaut orization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the R source Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regula ions adopted pursuant thereto. Event f Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage in the events of default sectio of this Mortgage. Existin Indebtedness. The words "Existing Indebtedness" mean the indebtedness described in the Existing Liens provision of this Mortg ge. Grant . The word "Grantor" means DANIEL MAX WORTON. Hazar ous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemi al or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when impro erly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Subst nces" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste s defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and p roleum by-products or any fraction thereof and asbestos. Impro ements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real P operty, facilities, additions, replacements and other construction on the Real Property. Indebt dness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Credit Agree ent or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Credit greement or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurr by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortg ge. Lende The word "Lender" means 1st Bank, its successors and assigns. The words "successors or assigns" mean any person or compa y that acquires any interest in the Credit Agreement. Mortg ge. The word "Mortgage" means this Mortgage between Grantor and Lender. Perso I Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replac ments of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance procee s and refunds of premiums) from any sale or other disposition of the Property. Prope y. The word "Property" means collectively the Real Property and the Personal Property. Real P perty. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Relate Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agree ents, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agree ents and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Pr perty. GRANTOR CKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. GRANTOR: .,... ~ INDIVIDUAL ACKNOWLEDGMENT STATE OF /'11.-''./ ) ) SS ......--_....~:;.-:::::::-.~t;.::~'..":.~~ ROGER J. COLES N(11A,IV PUBLIC COUNlY OF STATE OF LINCOLN WYOMING MY COMMISSION EXPIRES JA~~3.~ 29, 2008 --.------.............. COUNTY 0 On this day before me, the undersigned Notary Public, personally appeared DANIEL MAX WORTON, to me known to be the individual described in and who xecuted 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 pu poses therein mentioned. Given under 1'tI'II' hand and official !leal this .;)- / h [.:'1 7 '1.,/.....s..- / / -" ¡.--'--;- By .// .1/ v' (/ Notary Publi Yand fí day of WY't-l/'V / I.. Residing at . ~¡:::;';;, /' .20J2jL. WV ~"""1ll! f' / ,/ /'/ My commission expires . ..., I""" I./"'~ . 7'"' ¿)g'" ." LASER PRO L'"ding. V.r. 6.34.00.003 COpl. H...I,nd fin~c'" 5QI...llonl, Inc. 1997,2007. All Rlghtl R..'tv,d. . WY D:\I.ASERPRO\FN8\CFI\LPl\GOJ.FC TA.3645 PR-7