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HomeMy WebLinkAbout931671 RECORDATION REQUESTED BY: Centennial Bank, Inc. Ogden Branch 4605 Harrison Boulevard, Suite #1 Ogden, UT 84403 RECEIVED 7/27/2007 at 4:12 PM RECEIVING # 931671 BOOK: 667 PAGE: 215 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY WHEN RECORDED MAIL TO: Centennial Bank, Inc. Ogden Branch 4605 Harrison Boulevard, Suite #1 Ogden, UT 84403 SEND TAX NOTICES TO: DOUGLAS L. HARTMANN 1921 BERRY DRIVE KEMMERER. WY 83101 00021.5 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY CONSTRUCTION MORTGAGE MAXIMUM LIEN. The lien of this Mortgage shall not exceed at anyone time $171,000.00. THIS MORTGAGE dated July 18, 2007, is made and executed between DOUGLAS L. HARTMANN, whose address is 1921 BERRY DRIVE, KEMMERER, WY 83101 (referred to below as "Grantor") and Centennial Bank, Inc., whose address is 4605 Harrison Boulevard, Suite #1, Ogden, UT 84403 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages 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, Improvaments and fixtures; all easements, rights of way, and appurtenances; all water, water rights, waterçourses and ditch rights (including stock in utilities with ditch or Irrigation rights); and all other rights, royalties, and profits relatlnQ to the real property, Including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located In LINCOLN County, State of Wyoming: LOT 6-L-3 OF THE ROLLING HILLS FIRST ADDITION TO THE CITY OF KEMMERER RECORDED FEBRUARY 25, 1986 AT DOCUMENT NUMBER 650749 AT MAP NUMBER 324, IN THE OFFICE OF THE CLERK, LINCOLN COUNTY, WYOMING. The Real Property or its address is commonly known as LOT 6-L-3 ROLLING HILLS, KEMMERER, WY 83101. The Real Property tax identification number is 12-2116-22-4-01-002.00. 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 grants to Lender a Uniform Commercial Code security interest In the Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS ALSO GIVEN TO SECURE ANY AND ALL OF GRANTOR'S OBLIGATIONS UNDER THAT CERTAIN CONSTRUCTION LOAN AGREEMENT BETWEEN GRANTOR AND LENDER OF EVEN DATE HEREWITH. ANY EVENT OF DEFAULT UNDER THE CONSTRUCTION LOAN AGREEMENT, OR ANY OF THE RELATED DOCUMENTS REFERRED TO THEREIN. SHALL ALSO BE AN EVENT OF DEFAULT UNDER THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PA YMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. CONSTRUCTION MORTGAGE. This Mortgage Is a "construction mortgage" for the purposes of Sections 9-334 and 2A-309 of the Uniform Commercial Code, as those sections have been adopted by the State of Wyoming. ' POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property In good condition and promptly perform all repairs, replacements, and maintenance necessary to preserve Its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (21 Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender In writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, traatment, 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 (cJ 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 acknovyledged 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 release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted In compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and Its agents to enter upon the Property to make such Inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's, purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence In Investlgetlng the Property for f)JL Loan No: 38538112 MORTGAGE (Continued) 00021.6 Page 2 Hazardous Substances. Grantor hereby (1) releeses 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, penalties, and expenses which Lender may directly or Indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or Interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify 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. Nuisance, Wasta. Grantor shall not causa, conduct or permit any nuisance nor commit, permit, or suffer eny 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 party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soli, gravel or rock products without Lender's prior written consent. Removal of Improvements. Grantor shall not demolish or remove any Improvaments 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 Proparty at all reasonable times to attend to Lender's Interests and to inspact 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. Grantor may contest In good faith any such law, ordinance, or regulation and withhold complianca 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'a interests In the Property are not jaopardized. lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to lender, to protect lender's Interest. Duty to Protect. Grantor agrees neither to abandon or leave. unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the cheracter and use of the Property are reasonably necessary to protect and praserve the Property. CONSTRUCTION lOAN. If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete construction of any Improvements on the Property, the Improvements shall be completed no later than the maturity date of the Note (or such earlier date as lender may reasonably establish) and Grantor shall pay In full all costs end expenses In connection with the work. Lender will disburse loan proceeds under such terms and conditions as lender may deem reasonably nacessary to Insure that the interest creeted by this Mortgege shall have priority over all possible liens, Including thosa of material suppliers and workmen. lender may require, among other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of liens, construction progress reports, and such other documentation as Lender may reasonably request. DUE ON SALE - CONSENT BY LENDER. lender may, at Lender's option, declare Immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without lender's prior written consent, of all or any part of the Real Proparty, or any Interest In the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest In the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sele, deed, Installment sele contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest In or to any land trust holding title to the Real Property, or by any othar method of conveyance of an interest in tha Real Property. However, this option shall not be exercised by Lender If such exercise Is prohibited by federal law or by Wyoming law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property ere part of this Mortgage: Payment. Grantor shall pay when due (end in all events prior to delinquency) all taxes, payroll texas, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the Interest of lender under this Mortgage, except for those liens specifically agraed 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 Contest. 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 attorneys' fees, or other charges that could accrue as a result of a foreclosura or sale under the lien. In any contest, Grantor shall defend Itself and lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name lender as an additional obligee under any surety bond furnished In the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (16) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on sccount of the work, services, or materials. Grantor will upon request of Lender furnish to lender advance assurances satisfactory to lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to Insuring the Property are a pert of this Mortgege: Maintenance of Insurance. Grantor shall procure and maintain policies of fire Insurance with standard extended coverage endorsements on a replacement basis for the full Insurable value covering all Improvements on the Real Property In an amount sufficient to avoid application of any coinsurance clause, end with a stendsrd mortgagee clause In favor of Lender. Policies shall be written by such Insurance companies and in such form as may be reasonably acceptable to lender. Grantor shall deliver to Lender certificates of coverage from each Insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of thirty (30) days' prior written notice to lender and not containing any disclaimer of the Insurer's liability for failure to give such notice. Each insurance policy also shall Include an ---(jJ ~ Loan No: 38538112 MORTGAGE (Continued) 000217 Page 3 endorsement providing that coverage in favor of Lender will not be Impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergancy Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if evelleble, for the full unpaid principal balance of the loan end any prior liens on the property securing the loan, up to the maximum policy limits set under the Nstional Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Appllcetlon of Proceeds. Grentor shall promptly notify Lender of any loss or damage to the Property. Lender mey make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restorstlon and repelr of the Property. If Lender elects to apply the proceeds to restoration and repeir, Grentor shall repair or replace the damaged or destroyed Improvements In e menner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, payor reimburse Grantor from the proceeds for the reasonable cost of repsir or restoration if Grsntor is not In default under this Mortgage. Any proceeds which have not been disbursed within 180 daya after their receipt end which lender hss not committed to the repeir or restoretlon of the Property shall be used first to pay any smount owing to Lender under this Mortgage, then to psy accrued Interest, and the remainder, if any, shsll be spplled to the princlpsl belance 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 appear. lENDER'S EXPENDITURES. If Grantor falls (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other claims, IB) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lender's Interests. All expenses incurred or paid by lender for such purposes will then bear Interest st the rate charged under the Note from the date incurred or psid by lender to the date of repsyment by Grantor. All such expenses will become a part of the Indebtedness and, at lender's option, will (A) be payable on demand; (B) be added to the balence of the Note and be apportioned among and be payable with any instsllment payments to. become due during either (1) the term of any appliceble insurance policy; or [2) the remaining term of the Note; or ICI be treeted as a balloon payment which will be due and payable st the Note's msturity. The Mortgage slso will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which lendér may be entitled on account of eny defeult. Any such action by lender shall not be construed as curing the default so as to bar lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are e part of this Mortgege: Title. Grentor warrents thet: (a) Grentor holds good and merketable title of record to the Property in fee simple, free end cleer of ell liens and encumbrances other than those set forth in the Real Property description or in eny title insurance policy, title report, or final title opinion Issued in fevor of, and eccepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute end deliver this Mortgage to Lender, Defense of Title. Subject to the exception in the paregreph above, Grantor werrants end will forever defend the title to the Property against the lewful 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 shell defend the ection et Grantor's expense. Grentor may be the nominal party In such proceeding, but lender shall be entitled to pertlcipete in the proceeding end to be represented in the proceeding by counsel of Lender's own choice, end Grentor will deliver, or ceuse to be delivered, to lender such instruments as Lender may request from time to time to permit such perticipetion. Compliance With laws. Grantor warrants thet the Property and Grantor's use of the Property complies with ell existing eppllceble laws, ordinences, end regulations of governmental euthorlties. Survlvel of Promises. All promises, egreements, and statements Grentor has made In this Mortgege shall survive the execution and delivery of this Mortgege, shell be continuing in neture and shall remeln In full force and effect until such time es Grantor's Indebtedness Is paid in full. CONDEMNATION. The following provisions relating to condemnetlon proceedings ere e pert of this Mortgege: Proceedings. If any proceeding in condemnation Is filed, Grantor shall promptly notify Lender in writing, and Grentor shall promptly take such steps as may be necessary to defend the ection end obteln the ewerd. Grentor mey be the nominal party In such proceading, but Lender shall be entitled to pertlclpate in the proceeding end to be rep(esented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments end documentation es may be requested by Lender from time to time to permit such perticipetion. Applicetion of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be epplied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, end ettorneys' fees Incurred by Lender In connection with the condemnetlon. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions releting to governmental taxes, fees end charges ere a pert of this Mortgage: Current Taxes, Fees and Cherges. Upon request by Lender, Grantor shall execute such documents In addition to thIs Mortgage end take whatever other action is requested by lender to perfect end continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred In recording, perfecting or continuing this Mortgege, Including without limitetion all texes, fees, documentary stamps, and other charges for recording or registering this Mortgege. Taxes. The following shall constitute taxes to which this section applies: (1) e specific tax upon this type of Mortgage or upon all or eny pert of the Indebtedness secured by this Mortgage; (2) a specific tex on Grantor which Grentor Is authorl.zed or required to deduct from payments on the Indebtedness secured by this type of Mortgege; (3) e tax on this type of Mortgege chergeeble ageinst the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on peyments of principe I end interest made by Grentor. Subsequent Texes. If any tax to which this section applies Is enected subsequent to the dete of this Mortgege, this event shell have the seme effect as en Event of Default, and Lender may exercise any or ell of Its available remedies for an Event of Default as provided below unless Grentor either (1) pays the tex before It becomes delinquent, or (2) contests the tax as provided above in the Taxes end Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. fJJ~ Loan No: 38538112 MORTGAGE (Continued) 000218 Page 4 SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage liS e security egreement lire II pert of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and lender shall have all of the rights of a secured party under the Uniform Commercial Code es amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Personal Property. In addition to recording this Mortgage In the real property records, Lender may, at eny time and without further authorization from Grantor, file executed counterperts, copies or reproductions of thle Mortgege es II financing statement. Grantor shall reimburse Lender for all expenslls Incurred in perfecting or continuing this security Interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon defeult, Grantor shall assemble any Personal Property not affixed to the Property In a manner and at a place reasonably convenlant to Grantor and Lander and make it available to Lender within three (3) days after receipt of written demand from Lander to the extent permitted by applicable law. Addresses. The meiling addresses of Grantor (debtor) and Lender (secured party) from which Information concerning the security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-In-fact are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to lender or to lender's designee, and when requested by lender, cause to be flied, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, contlnuetlon statements, Instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1 Grantor's obligations under the Note, this Mortgage, end the Related Documents, and (2) the liens and security Interests created'by this Mortgage as first anc prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse lender for all costs and expenses Incurred In connection with the matters referred to In this peragraph. Attorney-In-Fact. If Grantor falls to do any of the things referred to in the preceding psragraph, Lender may do so for and In the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-In-fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, In Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grentor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file' evidencing Lender's security Interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. At Lender's option, Grantor will be In default under this Mortgage If any of the following happen: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Break Other Promises. Grantor breaks any promise made to Lender or fails to perform promptly at the time and strictly In the manner provided in this Mortgage or in any agreement related to this Mortgage. False Statements. Any representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is false or misleading In any material respect, either now or at the time made or furnished. Defective Collaterallzatlon. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at sny time and for any reason. Death or Insolvency. The death of Grantor, the Insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment. for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or Insolvency laws by or against Grantor. Taking of the Property. Any creditor or governmental agency tries to take any of the Property or any other of Grantor's property in which Lender has a lien. This includes tsklng of, garnishing of or levying on Grantor's accounts with Lender. However, if Grantor disputes in good faith whether the claim on which the taking of the Property is based is valid or reasonable, and If Grantor gives Lender written notice of the claim and furnishes Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or eny guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or IIsbillty under, eny Guerenty of the Indebtedness. In the event of e 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 guaranty In a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Insecurity. Lender in good faith believes Itself insecure. Right to Cure. If eny default, other 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 within the preceding twelve (121 months, it may be cured If Grantor, after receiving written notice from Lender demendlng cure of such defsult: (1) cures the default within fifteen (15) days; or (2) If the cure requires more than fIfteen 1161 days, immediately initiates steps which Lender deems In lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as ressonably practical. ~.--"."""",.,- f)Jkn- Loan No: 38538112 MORTGAGE (Continued) 00021.9 Page 5 RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, lender, at lender's option, may exercise anyone or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. lender shall have the right at Its option without notice to Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay. UCC Remedies. With raspect to all or any part of the Personal Proparty, lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. lender shall have the right, without notIce to Grantor, to take possession of the Property, including during the pendency of foreclosure, whether Judicial or non-JudicIal, and collect the Rents, Including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, lender may require any tenent 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 neme of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subpsragraph either In person, by agent, or through a receiver. Appoint Receiver. lender shall have tha right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property. Nonjudicial Sale. Lender may foreclose Grantor's Interest in all or In any part of the Property by non-Judicial sale, and specifically by ·power of sale" or "advertisament and sale" foreclosure as provided by statuta. Deficiency Judgment. If parmitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lander after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. if Grantor remains in possession of the Property after the Property Is sold as provided above or lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of lender or the purcheser 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 and remedies provided in this Mortgage or the Note or available at law or In equity. Safe of the Property. To tha extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in ona sale or by separate sales. lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender wili giva Grantor reasonable notice of tha time and place of any public sale of the Personal Property or of the time after which any private sele 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 mede In conjunction wIth any sale of the Real Property. Election of Remedies. All of Lender's rights and remedies will ba cumulative and may be exercised alone or together. An election by Lender to choose anyone remedy will not bar Lender from uSing any other remedy. If Lender decides to spend money or to perform any of Grantor's obligations under this Mortgege, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare Grantor in default and to exercise Lender's remedies. Attorneys' Fees; Expenses. 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 and 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 Interast or the enforcement of its rights shall become a part of the Indebtednass payable on demand and shell bear Interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits undar applicable law, lender's attorneys' fees and lander's legal expenses whether or not there Is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (Including efforts to modify or vacate any automatic stay or injunction). appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (Including foreclosure reports). surveyors' reports, and appraisal feas and title insurance, to the extent permitted by applicable law. Grantor also will pay any court COStS, in addition to all other sums provIded by law. NOTICES. Any notice required to ba,given under this Mortgage, including without limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacslmíle (unless otherwIse required by lawl, when deposited with a nationally racognized overnight courier, or, if mailed, when deposited in the United States mall, as first class, certified or raglstered mall postage prepaid, directed to the addresses shown near the beginning of this Mortgaga. All coplas of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to Lendar's address, as shown near tha beginning of this Mortgage. Any person may change his or her address for notices under this Mortgage by giving formal written notice to the other person or persons, specifying that the purpose of the notice Is to changa the person's address. For notice purposes, Grantor agrees to keep lendar Informad at all times of Grantor's current address. Unlass otherwise provided or requirad by law, if there is more than one Grantor, any notice given by lender to any Grantor is deemed to be notice given to all Grantors. It will ba Grantor's responsibility to tell the others of the notice from Lender. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. What is written in this Mortgage and in the Relatad Documents is Grantor's entire agreement with Lender concerning the matters covered by this Mortgage. To ba effective, eny change or amendment to this Mortgage must be in writing and must be signed by whoever will be bound or obligated by the change or amendment. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to Interpret or define the provisions of this Mortgage. (JJI- Loan No: 38538112 MORTGAGE (Continued) 000220 Page 6 Governing Law. With respect to procedural matters related to the perfectIon and enforcement of Lender's rights against the Property, this Mortgage will be governed by federal law applicable to Lender and to the extent not preempted by federal law, the laws of the State of Wyoming. In all other respects, this Mortgage will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Utah without regard to its conflicts of law provisIons. However, If there ever Is a question about whether any provisIon of this Mortgage Is valid or enforceable, the provision that Is questioned will be governed by whichever state or federal law would find the provIsion to be valid and enforceable. The loan transaction that Is evidenced by the Note and this Mortgage has been applied for, considered, approved and made, and all necessary loan documents have been accepted by Lender In the State of Utah. Choice of Venue. If there Is a lawsuit, Grantor agrees upon Lender's request to submit to the Jurisdiction of the courts of Weber County, State of Utah. No Waiver by lender. Grantor understands Lender will not give up eny 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 writing to give up one of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of this Mortgage. Grantor also understands that If Lander does consent to a request, that does not mean that Grantor will not have to get Lender's consent again if the situation happens again. Grantor further understands that just because Lender consents to one or more of Grantor's requests, that does not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presentment, demand for peyment, protest, and notice of dishonor. Grantor waives all rights of exemption from execution or similar law in the Property, and Grantor agrees that the rights of Lender in the Property under this Mortgage are prior to Grantor's rights while this Mortgage remains in effect. Severability. If a court finds that Bny provision of this Mortgage Is not vBlld or should not be enforced, that fact by itself will not mean that the rest of this Mortgage will not be valid or enforced. Tharefore, s court will enforce the rest of the provisions of this Mortgage even if a provision of this Mortgage may be found to be invalid or unenforcaable. Merger. Thare shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in sny capacity, without the written consent of Lender. Successors and Assigns. Subject to any limitations statad 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 ownarshlp of the Property becomes vested In a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness. Time Is of the Essence. Time is of the essence in the performance of this Mortgage. Waiver of Homestead ExemptIon. Grantor hereby releases and waives ail rights and benefits of the homestead exemption laws of the State of Wyoming as to ail Indebtedness secured by this Mortgage. DEFINITIONS. The following words shail have the following meanings when used In this Mortgage: Borrower. The word "Borrower" means DOUGLAS l. HARTMANN and Includes all co-signers and co-makers signing the Note and all their successors and assigns. Environmental laws. The words "Environmental Laws" mean any and ail state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, Including without limitation the Comprehensive Environmental Response, Compensation. and liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA " , the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA "), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation Bnd Racovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage In the events of default section of this Mortgage. Grantor. The word "Grantor" means DOUGLAS L. HARTMANN. Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or Infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when Improparly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used In their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmantal Laws. Tha term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future Improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with Interest on such amounts as provided In this Mortgage. Lender. The word "Lender" means Centennial Bank, Inc., Its successors and assigns. The words "successors or assigns" mean any person or company that acquires any Interest in the Note. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. Note. The word "Note' means the promissory note dated July 18, 2007, in the original principal amount of $171,000.00 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. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Property" mean ail 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 replacements of, and ail substitutions for, any of such property; and together with all proceeds (Including without limitation all insurance f)J;L I MORTGAGE . 000221 Loan No: 38538112 (Continued) Page 7 I proceeds end refunds of premiums} from any sale or other ~iSPosition of the Property. Property. The word "Property" means collectively the Reali Property and tha Personal Property. Real Property. The words "Real Property" mean the real p~operty, Interests and rights, as further described in this Mortgage. Related Documents. The words "Related Documents" I1i1j ean all promissory notes, credit agreements, loan agreements, environmental agreements, guarenties, security agreements, mortgages, ,deeds of trust, security deeds, collateral mortgages, and all other Instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" maans all present and future rehts, revenues, Income, issues, royalties, profits, and other benefits derived from the Property. I i I I GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISlrS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. zv~ i OUGLAS L. HARTMANN I I i INDIVIDUAIl ACKNOWLEDGMENT I ! I I I On this day before me, the undersigned Notary Public, persopally appeared DOUGLAS L. HARTMANN, to me known to be the Individual described in and who executed the Mortgage, and acknowledged that he or she signed the Mortgege as his or her free and voluntary act and deed, for tha uses and purposes therein mentionedïO I, I} 1 01. h.. d" I... hi. tL- L d'f " dfA :J k" P1' 2cO...L. I "n"m, " ~~ ffJ'A" I My commission expires 2-' 0 :::::-:it4~ ) SS } LeANN BRQADHEAD·NDTARYPUBUQ County ~ . State of Uncal" WyomIng M Cornmllllorl Sept. 21.2010 I LA"R PRO l..d~.. Vw. '.",00,'" c.... H.....d ""...IoI.r.... ,... ''''. 200'. .. ".h" R......., . WYNT ""CA\LPI.\Q03.'C ,....,. ..... I I I --.-..--.-..-----.