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RECORDATION REQUESTED BY:
The Jeckson State Benk & Trust
Main Office
P,O. Box 17B8
112 Center Street
Jackson, WY 83001
WHEN RECORDED MAIL TO:
The Jackson State Bsnk & Trust
Main Office
P.O. Box H88
112 Center Street
Jackson, WY 83001
RECEIVED 5/17/2007 at 10:31 AM
RECEIVING # 929414
BOOK: 658 PAGE: 214
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
SEND TAX NOTICES TO:
The Jackson State Bank & Trust
Main Office
P,O. Box 1788
112 Center Street
Jackson. WY 83001
SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY
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111111111111111111111111111111111111111111111111111111III
·000000000033100538%0745 %051 52007 %000000000000000·
MORTGAGE
MAXIMUM LIEN. The lien of this Mortgage shall not exceed at anyone time $216.000.00.
THIS MORTGAGE dated May 15. 2007. is made and executed between KL & AS Investments LLC. a Wyoming
limited liability company. whose address is P.O. Box 9021. Jackson. WY 83002-9021 (referred to below as
"Grantor'" and The Jackson State Bank & Trust. whose address is P.O. Box 1788. 112 Center Street. Jackson.
WY 83001 (referred to below as "Lender").
GRANT OF MORTGAGE. For valuable consideration. Grantor mortgeges and conveys to lender all of Grantor's right, title. and Interest in and to
the following described real property. together with all existing or subsequently erected or affixed buildings, improvements end fixtures; all
easements, rights of way, and appurtenances; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or
irrigation :r¡~hts); and all other rights, royalties, and profits relatin\! to the real property, including without limitation all minerals. oil, gas,
geothermJt\.nd similar matters, (the "Real Property'" located In Lincoln County. State of Wyoming:
Lot 3 of the Miller Estates. Lincoln County. Wyoming according to that plat filed August 4. 2003. in the Office
of Lincoln County Clerk as Plat No. 137C
The Real Property or its address is commonly known as Lot 3 Miller Family Estates. Etna. WY 83118.
Grantor presently 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 grsnts to lender a Uniform Commercial Code security interest in the Personal Property and Rants.
THIS MORTGAGE. INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS
GIVEN TO SECURE (AI PAYMENT OF THE INDEBTEDNESS AND (BI PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE,
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 shell psy to lender all amounts secured by this
Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage,
POSSESSION AND MAINTENANCE OF THE PROPERTY. Grsntor agrees that Grentor's possession and use of the Property shall be governed by
the following provisions:
Poasesslon and Use. Until ,the occurrence of an Event of Default. Grantor may (1) remain in possession and control of the Property; (21
use, operate or menage the Property; and (3) collect the Rents from the Property.
Duty to Maintain. Grantor shall maintain the Property In tenantable condition and promptly perform all repairs, replacements, and
maintenance necessary to preserve its value.
Compliance With Environmental Laws, Grantor represents and warrants to lender thet: (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 eny Hazardous
Substance by eny 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,
Ib) 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 Ie) any actusl or threatened litigation or claims of any
kind by any person ralating 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 releese any Hazardous Substance on, under, about or from the Property; snd (bl any such activity shall be conducted in compliance
with all applicable federal, state, and local laws, regulations and ordinances, Including without limitation all Environmental lews, 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 eny 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, defend, and hold harmless
Lender against any and all claims, losses, liabilities, damages, penaltias, and expenses which Lender may directly or indirectly sustain or
suffer resulting from a breach,of this section of the Mortgsge or as a consequence of any use, generation, manufecture, storage, disposal,
releasa or threatened release occurring prior to Grantor's ownership or Interest in the Property, whether or not the seme was or should
have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to Indemnify and defend, shall survive
the payment of 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.
Nulsence, 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 Property, Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other
psrty 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 Improvementa. Grantor shall not demolish or remove any Improvements from the Real Property without lender's prior written
consent. As a condition to the removal of any Improvements, lender may require Grantor to make arrangements satisfactory to lender to
replace such Improvements with Improvements of at least equal value.
lender's Right to Enter. lender and lender's agents and representatives may enter upon the Real Property at all reasonable times to attend
to lender'a interests snd to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage,
Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter
In effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans
\O~2941.tðtlnoi\NO: 33100538
MO iE
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Pugu 2
00021.5
With Disabilities Act, Grantor may contest In good fsith any such lew, 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 interasts in the Property are not jeopardizad. lender may require Grantor to post adaquate 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, declere immediately due and payable all sums secured by this
Mortgage upon the sale or transfer, without lander's prior written consent, of all or any part of the Real Property, ,or any intarest 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,
lessehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of eny beneflciel 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. If any Grantor is
a corporation, partnership or limited liability company, transfer also includes any chenge in ownership of more than twenty-five percent (25%1 of
the voting stock, partnership interests or limited liability company interests, as the casa may be, of such Grantor. 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 pey when due (end 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 furnishad to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to
the interest of lender under this Mortgage, except for those liens specifically agreed to in writing by lender, and except for the lien of taxes
and assessments not due as further specified in the Right to Contest paragraph,
Right to Contut. Grantor may withhold payment 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 foraclosure or sale under the lien, In any contest, Grantor shall defend itself and lender and shall satisfy any
adverse judgment before enforcament against the Property. Grantor shall name lender as an additional obligea 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 lander at least fifteen (15) days before any work is commenced, any sarvices are furnished. or
any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be ssserted 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 INSUFtANCE. The following provisions relating to insuring the Property are a psrt of this Mortgage:
Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on
a replacemant basis for the full Insurable value covering all Improvements on the Real Prop arty In an amount sufficient to avoid application
of any coinsurance clause, and with a standard mortgagee clause in favor of lender. Grantor shall also procure and malnteln
comprehensive general liability insurance In such coveraga amounts as lender may request with lender being named as additional insureds
in such liability insurance policies. Additionally, Grsntor shall maintain such other insurance, including but not limited to hazard, business
Interruption and boiler Insurance as lender may require, Policies shall be written by such insurance companies and In such form as may be
reasonably acceptable to lender. Grantor shall deliver to lender certificatas of coverage from each Insurer containing a stipulation that
coverage will not be cancelled or diminished without a minimum of ten (10) 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 thst
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 maintein Faderal Flood Insurance, if available, for the full unpeld principal balance of the loan and any prior
liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwisa
required by lender, and to maintain such insurance for the term of the loan.
Application of Procaads. Grantor shall promptly notify lender of sny loss or damage to the Property. lender msy make proof of loss if
Grantor fails to do so within fifteen (15) dsys of the casualty, Whether or not lender's security is impaired, lender may, et lender's
election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtednass, payment of any lien
affecting the Property, or tha restoration and repair of tha Property, If lender elects to apply the proceeds to restoration and repair, Grantor
shall repair or replaca 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 reasoneble cost of repair or restoration if Grantor is not In default
under this Mortgage. Any proceeds which heve not been disbursed within 180 days after their receipt and which lender has not
committed to the repair or restoration of the Property shall be used first to pay any amount owing to lender under this Mortgage, then to
pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If lender holds any proceeds
after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may eppear.
Grantor's Report on Insurance. Upon raquest of lender, however not more than once a year, Grantor shall furnish to lender a report on
each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the
property Insured, the then current replacement value of such property, and the manner of determining that value; and (5) the expiration
date of the policy. Grantor shall, upon request of lender, have an independent appraiser satisfactory to lender determine the cash value
replacement cost of the Property,
lENDER'S EXPENDITURES. If any action or proceeding Is commenced that would materially affect lender's interest in the Property or if Grantor
fails to comply with any provision of this Mortgage or any Related Documents. including but not limited to Grantor's failure to discharge or pay
when due any amounts Grantor is required to dlscharga or pay under this Mortgage or any Related Documents, lender on Grantor's behalf may
(but shall not be obligated to) take any action that lender deems appropriate, including but not limited to discharging or paying all taxes, liens,
security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and
preserving the Property. All such expenditures incurred or paid by lender for such purposes will then bear interest at the rate charged under tha
Note from the date incurred or paid by lender to the date of repaymant by Grantor, All such expenses will become a part of the Indebtedness
and. at lender's option, will (AI be payable on demand; (8) be added to the balance of the Note 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 121 the remaining term of the
Note; or (C) be treated as a belloon payment which will be due and payable at the Note's maturity. The Mortgage also will secura payment of
these amounts. Such right shall be In addition to all other rights and remedies to which lender may be entitled upon Default.
WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage:
Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property In fee simple, free and clear of all liens
and encumbrances other then those set forth in the Reel Property description or in any title Insurance policy, title report. or final title opinion
issued in favor of, and accapted by, lender In connection with this Mortgage, and Ib) Grantor has the full right, power, and authority to
execute and deliver this Mortgage to lender.
Defansa of Tltla. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against
the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the Interest of lender
under this Mortgage, Grantor shall defend the action et Grantor's expense. Grantor may be the nominal perty In such proceeding, but
lender shall be entitled to partlcipata in the proceeding and to be represented in the proceeding by counsel of lender's own choice, and
Grentor will deliver, or cause to be delivered, to lender such instruments as lender may request from time to time to permit such
participation.
Compllanca With laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws,
Ü~~:9414pan..No: 33100638
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ordinancas, and ragulations of governmental authorities,
Survlvel of Representations end Werrentles. All representetions, warranties, and egreements made by Grantor in this Mortgage shall
survive the execution end delivery of this Mortgege, shali be continuing in nature, and shell remain in full force and effect until such time as
Grantor's Indebtedness shall be paid in fuli,
CONDEMN A TION. The following provisions relating to condemnotion proceedings ore a port of this Mortgoge:
Proceedings. If ony proceeding in condemnotion Is filed, Grentor sholi promptly notify Lender in writing, ond Grontor sholl promptly toko
such steps os moy be necessory to dofend the action snd obtain the oword, Grontor moy be the nomlnol pony in such proceeding, but
Lendor shall be entitled to ponicipoto In the proceeding end to be reprosontod In the proceeding by counsel of its own choice, ond Grontor
will deliver or ceUSe to be delivered to Lender such instruments ond documentotion ss moy be requested by Lender from time to time to
permit such penicipotion.
Appllcetlon of Net Proceeds. If oil or ony pon of the Propeny is condemned by eminent domein proceedings or by any procaeding or
purchasa in liau of condamnatlon, Lendar moy at Its elactlon require that ali or any portion of tha nat proceads of the oward be opplied to
tha Indabtedness or the repeir or restoretion of the Property. The net proceeds of the award shall mean the award after payment of ell
reosonoble costs, expenses, and ottorneys' fees incurred by Lander in connection with the condemnation,
IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES, The following provisions relating to governmenta' taxes,
faes ond charges ore e part of this Mongage:
Current Texes, Fees end Chorge.. Upon request by Lender, Grantor shall execute such documents in oddition to this Mongege and take
whetever other action Is requested by Lender to perfect and continue Lender's lien on the Real Property, Grantor shall raimbursa Lender for
all taxes. as described below, togethar with oli expenses Incurred in racording, parfecting or continuing this Mongage, Including without
limitotion all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage.
Texes. The following shall constitute taxes to which this section applies: (11 a specific tax upon this type of Mortgege or upon all or any
part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grontor 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 Mongage chargeable against the Lender or the
holder of the Note; and (4) 0 specific tax on oli or ony 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 subsaquent to the date of this Mortgage, this avent shall have tha
same effect os an Event of Default, and lender may exercise any or all of its available remedies for an Event of Defoult as provided balow
unless Grantor either (1) poys the tax before it becomes delinquent, or (21 contests the tax as provided above in the Taxes and Liens
section and deposits with Lender cash or 0 sufficient corporste surety bond or other security ..tisfactory to Lender.
SECURITY AGREEMENT: FINANCING STATEMENTS. The following provisions raloting to this Mortgage as a security agreement are a part of
this Mongage:
Security Agreement. This instrument shali constitute a Security Agreement to the extent eny of the Property constitutes fixtures, and
Lender shali have ell of tha rights of a secured porty under the Uniform Commercial Coda as omandad from time to time,
Sacurlty Inter..t. Upon requast by Lendar, Grantor shall taka whatevar action Is raquestad by Landar to perfect and continua Lendar's
security intarast In tha Rents and Parsonol Property. In addition to racording this Mongage in the real propany racords, Lender may, at any
time and without further authorization from Grantor, file axecuted counterpans, copias or raproductions of this Mortgaga as a financing
statament. Grantor sholl raimbursa Lender for all expensas Incurred in perfecting or continuing this sacurity interast. Upon dafault, Grantor
shall not remove, saver or detach tha Parsonol Property from the Prop arty, Upon dafoult, Grantor shali assamble any Personal Propany not
affixad to the Prop arty in a manner and at a place raasonably conveniant to Grantor and Lendar and make it avoilable to Lender within three
(3) days ofter receipt of writtan dam and from lander to tha extent permitted by applicable low,
Addrasses. The mailing addresses of Grontor (debtor) and Lender (secured party) from which information concerning the security interest
gronted by this Mortgage moy be obtoined (each os requirad by tha Uniform Commercial Code) are os stated on the first poge of this
Mongage.
FURTHER ASSURANCES; ATTORNEY·IN·FACT. The foliowing provisions ralating to further a..urances and attorney-in-foct are a port of this
Mortgage:
Further Assurencas. At any time, and from time to time, upon request of Lendar, Grantor will make, execute and delivar, or will Couse to
ba 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 timas and In such offices and places as Lender may deem appropriate, any and all such mortgoges,
deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance,
certificates, and other documents as may, in the sole opinion of Lender, be necessary or deslrabla in order to effectuate, complete, perfect,
continue, or preserva (1) Grantor's obligations under the Note, this Mongage. and the Related Documanta, and 121 the liens and
security interests created by this Mongage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor.
Unleas prohibited by law or Lendar agrees to the contrary in writing, Grantor shall reimburae Lender for ell costs end expenses incurred in
connection with the matters referred to In this paragraph,
Attorney-In-Fect. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and In the nama of
Grantor and at Grantor's expense. For such purposes, Grantor heraby Irrevocably appoints Lender as Grantor's attornay.ln-fact for tha
purposa of making, executing. delivering, filing, recording, and doing all other things as may ba nacessary or desirable, In Lender's sola
opinion. to accomplish the matters referred to in the preceding paragraph,
FUll PERFORMANCE. If Grantor pays all tha Indebtedna.. whan dua. and otherwise parforms ali tha obligations imposed upon Grantor under
this Mortgage, Lander shall executa and daliver to Grantor a suitable satisfaction of this Mongaga and suitable stotamants of tarmination of any
financing statament on file evidencing Lender's security interest in the Rents and the Personal Property, Grantor will pay. if parmitted by
appliceble law, eny raasonable termination fee as determined by Lender from time to tima,
EVENTS OF DEFAULT. Each of the folio wing, at Lendar's option, shall constituta an Event of Dafault under this Mortgage:
Poyment Defoult. Grontor fails to maka any payment whan due under the Indebtadness,
D.foult on Other Peymenta. Failure of Grantor within the tima required by this Mortgage to make any payment for taxes or Insuronca, or
any other payment nacassary to pravent filing of or to affect discharge of any lien.
Othar Defeulta. Grantor falls to comply with or to parform any other term, obligation, covenant or condition conteined In this Mongage or
In any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contoined In any othar
agreement between Lender and Grantor.
Defeult In Fevor of Third Pertlaa. Should Grontor dafault undar any loan, axtension of credit, security agreement, purchose or sales
agreement, or any other agreement, in favor of any othar creditor or person that mey meterially affect ony of Grantor's property or
Grantor's ability to repay the Indebtednass or Grantor's ability to parform Grantor's obligations undar this Mortgage or any related
document,
Felse Statemants, Any warranty. representation or statement made or furnished to Lander by Grantor or on Grantor's behalf under this
Mortgoge or the Relatad Documents is false or misleading in any matarial respect, aither now or at tha time made or furnished or becomes
falsa or misleading at any tima theraaftar,
Defactlva Colletarelizetlon. This Mortgage or any of the Related Documants ceases to be in full force and effect /including failure of any
collateral document to create a valid and perfected sacurity ¡ntarest or lien) at any tima and for any reason,
Deeth or Insolvancy. The dissolution of Grentor's (regardless of whether election to continue is mada), any member withdraws from the
limited liability company, or any othar termination of Grantor's existence as e going business or the death of any membar, the insolvency of
Grantor. the appointment of a recaivar for any part of Grantor's property, any assignmant for the banafit of creditors, any typa of craditor
workout, or the commencamant of any proceading undar any bankruptcy or insolvency laws by or against Grantor.
Creditor or Forfalture Proceedings. Cornman cement of foraclosura or forfeiture procaadings, whethar by Judicial procaading, salf-halp,
repossession or any other mathod, by any craditor of Grantor or by any govarnmental agancy against any proparty securing the
Indebtednass, This Includas a garnishmant of any of Grantor's accounts, including daposit accounts, with Lendar. Howaver, this Event of
Default shall not apply if thare is a good faith dispute by Grantor as to the validity or reasonebleness of the claim which is the basis of tha
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creditor or forfeiture proceeding end if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender
monies or a surety bond for the creditor or forfeiture proceeding, In an amount determined by Lender, in its sole discretion, as being an
adequate reserve or bond for the dispute,
Breech of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not
remedied within any grece period provided therein, including without limitation any agreement concerning any Indebtedness or other
obligation of Grentor to Lender, whether existing now or later,
Events Affecting Guerentor. Any of the preceding events occurs with respect to any Guarantor of eny of the Indebtedness or any
Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liebility under, eny Guerenty of the Indebtedness, In the
event of a'death, Lender, at Its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the
obligations arising under the gyaranty In a manner satisfactory to Lender, and, in doing so, cure any Event of Default,
Adverse Chenge. A materla¡ adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or
performanc,e of the Indebtedn ss is impaired.
Right to Cure. If any default, ther than a default In payment is curable and If Grantor has not been given a notice of a breach of the same
provision of this Mortgage wit in the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender
demanding'cure of such defa!!lt: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days,
immediately initiates steps wh ch Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and
completes all reasonable and ecessary steps sufficient to produce compliance as soon as reasonably practical.
RIGHTS AND REMEDIES ON DEFA LT. Upon the occurrence of an Event of Default and at any tima thareafter, Lander, at Lender's option. may
exarcise anyone or more of the fol wing rights and remedlas, in addition to any other rights or remedies provided by law:
Accelerete Indebtedness. Lan er shall hava the right at its option without notice to Grantor to declare the entire Indebtedness immediately
due and payable, including an prepayment penalty which Grantor would be required to pay,
UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party
under the Uniform Commercial Code.
Collect Rents. Lender shall h e the right, without notice to Grantor, to take possession of the Property, including during the pendency of
foreclosure. whether judicial 0 non-judicial, and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over
and above Lender's costs, a Inst 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 directly to Lender, If the Rents are collected by Lender, then Grantor Irrevocably designates
Lender as Grantor's attorney-in-fact to endorse Instruments received in payment thereof in the name of Grantor and to negotiate the same
and collect the proceeds. Payments by tan ants 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, Lander may exercise its rights under this
subparagraph either in person, by agent, or through a receiver.
Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the
power to protect and presarve the Property, to operate the Property praceding 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 Proparty
axceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver,
Judlclel Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property,
Nonjudlclel Sele. Lender may foreclose Grantor's Interest In all or in any part of tha Property by non-judicial sele, and specifically by "power
of sale" or "advertisement and sale" foreclosure as provided by statute.
Deficiency Judgment. If permitted by applicable law, Lender may obtain a Judgment for any deficiency remaining in the Indebtedness due
to Lender after application of all amounts received from the exercise of the rights provided in this section,
Tenency et Sufference. If Grantor remains In possession of the Property after the Property is sold as provided above or Lender otherwise
becomes entitled to possession of tha Property upon defeult of Grantor, Grantor shall bacome a tenant at suffarance of Lender or the
purchaser 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
Property Immediately upon the demand of Lender,
Other Remedies. Lender shall have all other rights end remedies provided In this Mortgage or the Note or available at law or In equity,
Sele of the Property. To the extent permitted by applicable law, Grantor heraby waives any and all right to have the Property marshalled.
In exercising its rights and remedias. Lender shall be free to sell all or any part of the Property together or separataly, 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 Sele. Lender shall give Grantor reasonable notice of the time and place of any public sala of the Personal Property or of the time
after which any private sale or other intended disposition of the Personal Property is to be made, Reasonable notice shall mean notice
given at least ten (10) days before the time of the sale or disposition, Any sale of the Personal Property may be made in conjunction with
any sale of the Real Property,
Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Grantor under this Mortgage, after Grantor's failure to perform. shall not affect
Lender's right to declare a default and exercise its remedies. Nothing under this Mortgage or otherwise shall be construed so as to limit or
restrict the rights and remedies available to Lender following an Event of Dafault, or in any way to limit or restrict the rights and ability of
Lender to proceed directly against Grantor and/or against any other co-maker, guarantor, surety or endorser and/or to proceed against any
other collateral directly or indirectly securing the Indebtedness.
Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to
recover such sum as the court may adjudge reasonable as attorneys' fees at trial end upon any appeal, Whether or not any court action is
involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time
for the protection of its Interest or the enforcement of Its rights shall become e part of the Indebtedness peyable on demand and shall bear
interest et the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation,
however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whethar or not there Is
a lawsuit, including reasonable attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), eppeals, and any anticipated post-judgment collection services, the cost of searching racords, obtaining title
reports (including foreclosure reports), surveyors' reports, and appraisal fees and title Insurence, to the extent permitted by applicable law,
Grantor also will pay any court costs. in addition to all other sums provided by law,
NOTICES. Any notice required to be given under this Mortgaga, including without limitation any notlca of default and any notice of sale shall be
given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when
deposited with a nationally recognized overnight courier, or, If mailed, when deposited in the Unltad States mall. as first class, certified or
registered mall 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 Mortgege shall be sent to Lender's address, as shown near the beginning of this Mortgage,
Any party may chenge Its address for notices under this Mortgage by giving formal written notice to the other perties, specifying thet the
purpose of the notice is to chenge the party's address, For notice purposes, Grantor agrees to keep Lender Informed at all times of Grantor's
current eddress, Unless otherwise provided or required by law, if there is more than one Grentor. any notice given by Lender to eny Grantor is
deemed to be notice given to all Grantors.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage:
Amendments. This Mortgege, together with any Releted Documents, constitutes the entire understanding and agreement of the parties es
to the matters set forth In this Mortgage. No alteretion of or amendment to this Mortgage shall be effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alteration or amendment.
Annuel Reports. If the Property is used for purposes other than Grantor's residence, Grentor shell furnish to Lender, upon request, a
certified stetement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as
Lender shan require. "Net operating Income" shell mean all cash receipts from the Property less all cash expenditures made in connection
with the operation of the Property.
Caption Heedlngs. Caption headings in this Mortgege are for convenience purposes only and are not to be used to interpret or define the
000217
(Continued)
Page 6
000218
Loan"No: 33100638
U~~;:jqJ..'~'k
---- --- -- ---
provisions of this Mortgage,
Gov.rnlng law. This Mortgag. will be gov.rned by f.d.r.llaw appllcabl. to l.ndar and, to the ext.nt not prs.mpt.d by f.d.rallaw, tha
laws of the Stat. of Wyoming without r.gard to Ita confllcta of Isw provisions. This Mortgag. has be.n acc.pt.d by lender In the Stat. of
Wyoming.
Cholc. of V.nu.. If there is e lawsuit, Grantor agraas upon lander's request to submit to the Jurisdiction of the courts of Teton County,
State of Wyoming,
No Walv.r by landar. lender shall not be deemed to have waived any rights under this Mortgage unless such waiver Is given in writing
and signed by lender. No delay or omission on the part of lender in exercising any right shall operate as a waiver of such right or any
other right. A weiver by lender of a provision of this Mortgage shall not prejudice or constitute a waiver of lender's right otherwise to
demand strict compliance with that provision or eny other provision of this Mortgage. No prior waiver by lender, nor any course of dealing
between lender and Grantor, shall constitute a waiver of any of lender's rights or of any of Grantor's obligations as to any future
transactions. Whenever the consent of lender is required under this Mortgage, the granting of such consent by lender in any Instance
shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be
granted or withheld in the sole discretion of lender.
Sav.r.blllty. If a court of competent jurisdiction finds any provision of this Mortgage to, ba Illegal. invalid, or unenforceable as to any
circumstance, that finding shall not make the offending provision Illegal, invalid, or unenforceable as to any other circumstance. If feasible,
the offanding provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so
modified, it shall be considered deleted from this Mortgage, Unless otherwise required by law, the Illegality, invalidity, or unenforceability
of any provision of this Mortgage shall not affect the legality, validity or enforceability of any other provision of this Mortgage.
M.rg.r. There shall be no merger of the interest or estate craated 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, without the written consent of lendar.
Succ.ssors snd Assigns. Subject to any limitations stated in this Mortgage on transfer of 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 refarence 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 Ess.nce. Time Is of the assence in the performanca of this Mortgage,
Waiver of Homestead Exemption. Grsntor hereby releases and waives all rights and benefits of the homestead exemption laws of the State
of Wyoming as to ell Indebtedness secured by this Mortgage.
DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Mortgage. Unless specifically
stated to the contrary, all references to dollar amounts shall mean amounts In lawful money of the United States of America, Words and terms
used in the singular shall include the plural, and the plural shall include the slngulsr, as the context may require, Words and terms not otherwise
defined in this Mortgaga shall have the meanings attributed to such terms in the Uniform Commercial Code:
Borrower. The word "Borrower" means Kl & AS Investments llC, a Wyoming limited liability company and includes all co-signers and
co-makers signing the Note and all thair successors and assigns,
Default. The word "Default" means the Default set forth in this Mortgage in the section titled "Default".
Environmental Laws. The words "Environmental laws" mean any and sll stata, federal and local statutes, reguletlons and ordinances
relating to the protection of human health or the environment, including without limitetlon the Comprehensive Environmentel Response,
Compensetion, and liability Act of 1980, as amended, 42 U.S,C, Sactlon 9601, et seq, ("CERClA"I, the Superfund Amendments and
Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"I, tha Hazardous Materials Trensportation Act, 49 U.S.C, Section 1801, et seq.,
the Resource Conservation and Recovery Act, 42 U.S.C, Section 8901, et seq., or other applicable stata or federal laws, rules, or
regulations adopted pursuant thareto.
Event of Default. The words "Event of Default" maan any of the events of default set forth In this Mortgage in the events of dafault
section of this Mortgaga,
Gr.ntor. The word "Grantor" means Kl & AS Investments LLC, a Wyoming limited liability company,
Guar.ntor. The word "Guarantor" meens any guarentor, surety, or accommodation party of any or all of the Indebtedness.
Guar.nty. The word "Gueranty" means the gueranty from Guarsntor to Landar, Including without limitation a guaranty of all or part of the
Note,
Hazardous Substsnc.s. The words "Hazardous Substances" mean materlsls that, because of their quantity, concentration or physical,
chemical or infectious characteristics, may cause or pose a presant or potential hazard to human health or the environment when
improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise hendled, The words "Hezardous
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 tha Environmantal Laws, The term "Hazardous Substances" also includes, without limitation, petroleum
end petroleum by-products or any fraction thereof and asbestos,
Improvsmenta. 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.
Ind.bt.dn.... The word "Indebtedness" means all principal, interest, and other amounts, costs and expanses payable under the Note or
Related Documents, together with all renawals of, extensions of, modificstlons of, consolidstions of and substitutions for the Nota or
Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or axpenses incurred by Lender to
enforce Grantor's obligations under this Mortgage, together with interest on such amounts es provided in this Mortgage.
l.nder, The word "Lender" means The Jeckson Stete Bank & Trust, its successors and assigns.
Mortgage. The word "Mortgege" means this Mortgage batween Grantor and Lender,
Note. The word "Note" means the promissory note deted May 16, 2007, in the original principal amount of $216.000.00 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.
Personal Property, The words "Personal Proparty" 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 ell accessions. parts. and additions to, all
replacements of, and all substitutions for, any of such property; and together with all proceads (including without limitation all Insurance
proceeds and refunds of premiums) from any sale or other disposition of the Property,
Property, The word "Property" meens collectively the Real Property end the Personel Property,
R.al Property. Tha words "Real Property" mean the reel property, Interests and rights, as further described in this Mortgage.
Rel.tad Docum.nt.. Tha words "Reletad Documents" meen ell promissory notes, credit agreaments, loan agreements, environmentel
agreements, guaranties, security agreaments, mortgages, deeds of trust, security deeds, collaterel mortgages, and all other instruments,
agreements and documents, whether now or hereafter axisting, executed in connection with the Indebtedness.
Rent.. The word "Rents" means .11 present and futura rents. revanuas, income, issues, royalties, profits, and other benefits derived from
the Property.
~uu.. ..u. 33100538
Q~29i..11.::~
MC :;E
(CI.IIILIIIU~d)
I'age 6
000219
GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE. AND GRANTOR AGREES TO ITS TERMS.
GRANTOR:
By:
LIMITED LIABILITY COMPANY ACKNOWLEDGMENT
STATE OF W'\.CJJv'-\'J~
',," ' ¡SS
COUNTY OF '\ l~~
On this \ '\ day of , 20 ~, before me, the undersigned Notary Public, personally
appeared Karen Kristine Lawton, Member of KL 81 AS Inve ents LLC, a Wyoming limited liability company end Anne E. Schuler, Member of KL
81 AS Investments LLC, a Wyoming limited lIeblllty compeny, end known to me to be members or designated agents of the limited liability
company that executed the Mortgage and acknowledged the Mortgage to be the free end voluntary act and deed of the limited liability company,
by euthority of statute, Its articles of organization or Its operating agreement. for the usea end purposes therein mentioned, and on oeth stated
tha"~xey are authorized to ecute this Mortgage and In fact executed the Mortgage on behalf of the limited liability company.
ByV~ ,". Residing at \-t~
Notary Public In and for the Stata of W,\ OVv\ \""'- 1 My commlsalon explras ~ \.) \
LAlrfll PRO LMIIirIt. Vw. '.31.00.004 C..,. H.n.nd ''''''NI'oh,,-.nl, Inc. 1"1. :J001. AI """" !\Nww.. . wY f;,\tFl\I.PI..\003.FC TA.Um ""'-.
~ MELISSA CAPEN EA. NOTARY PUBUÓ f
County of ~ State of
Teton ~ Wyoming
My CommIssIon expIres 1 O/~9/2007 ~