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HomeMy WebLinkAbout937956 REC¡ORDATION REQUESTED BY: First Interstate Bank Jackson Main Branch 842 West Broadway P. O. Box 11095 Jackson, WY 83002·1095 RECEIVED 4/1/2008 at 4:14 PM RECEIVING # 937956 BOOK: 691 PAGE: 39 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY 000039 WHEN RECORDED MAIL TO: First Interstate Bank Jackson Main Branch 842 West Broadway P. 0, Box 11095 Jackson, WY 83002-1095 SPACE ABOVE THIS LINE 15 FOR RECORDER'S USE ONLY lJ.First~Bank MORTGAGE MAXIMUM LIEN. The lien of this Mortgage shall not exceed at anyone time $50,000.00. THIS MORTGAGE dated March 31, 2008, is made and executed between Robert T. O'Donnell and Laura M. O'Donnell, as husband and wife, whose address is 125 Plute Drive, Thayne, WY 83127 (referred to below as "Grantor") and First Interstate Bank, whose address Is 842 West Broadway, P. O. Box 11095, Jac:kson, WY 83002·1095 (referred to below as "Lender'1. GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all of Grantor's right, title, and interest In and to lhe following described real property, together wilh all existing or subsequently erected or affixed buildings, Improvements and fixtures; all easements, rights of way, and appurienancas; all waler, water rights, watercourses and ditch rights (Including stock in utilities with ditch or irrigation rights); and all other righls, royaltlas, and profits relating to the real property, Includin¡¡ without limitation all minerals, 011, gas, geothermal and similar matters, (the "Real Property") located In Lincoln County, State of Wyoming: Lot 101 in Prater Canyon Estates Unit 4, Lincoln County, Wyomln{ , according to the plat thereof recorded July 6,1970 as Map Number ~and Document Number 42383. In the Office of the Clerk of Lincoln County, Wyoming 'be e The Real Property or its address is commonly known as 99 Piute Drive, Star Valley Ranch, WY 83127. The Real Property tax Identification number is 12-3519-25-1-06-116.00. Grantor presently assigns to Lender all of Grantor's right, tltie, and Interesl in and to all present and future leases of tha Property and all Rents from the Property. In addition, Grantor granls to Lender a Uniform Commercial Coda 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 IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE, Except as otherwise provided In Ihis Mortgage, Grantor shall pay 10 Lender all amounts secured by this Mortgage as they become due and shall slrictly peñorm all of Granlor's obligations under Ihis Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Unlil the occurrence of an Event of Default, Grantor may (1) remain In possession and control of lhe Property; (2) use, operate or manage the Property; and (3) collect the Renls from Ihe Property. Duty to Maintain, Grantor shall maintain tha Property In good condition and promptly peñorm all repairs, replacements, and maintenance necassary to preserve its value. Comptlance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledga of, or reason to believe that thare has bean, except as pravlously disclosed 10 and acknowledged by Lender In writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, slorage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating 10 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 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 aulhorizes 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 Mortgege. Any Inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in Investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any futura claims against Lender for Indemnity or contribution In the event Grantor becomes liable for cleanup or olher 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 Dreach of this section of Ihe 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 nol be affected by Lender's acquisition of any Inlerest in the Property, whether by foreclosure or otherwise. Nuisance, Waste, Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to Ihe Property or any portion of the Property. Wilhout limiting the generallly of Ihe foregoing, Grantor will not remove, or grant to any other party the right 10 remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of Improvements. Granlor shall nol demolish or remove any Improvemenls 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 sallsfactory to Lender to replace such Improvements with Improvements of alleast equal value. Lender's Right to Enter, Lender and Lender's agents and represenlalives may enter upon lhe Real Property al all reasonable times to attend to Lender's Interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements, Grantor shall prompliy comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable 10 the use or occupancy of Ihe Property. Grantor may contest In good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, Including appropriate appeals, so long as Grantor has nollfied Lender In writing prior to doing so and so long as, In Lender's sole opinion, Lender's Interesls in lhe Property are not Jeopardized. Lender MORTGAGE (Continued) UUUU40 Page 2 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 shell 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 Lende"s option. declare Immediately due end payeble ell sums secured by this Mortgage upon the sale or Iransfer, withoul Lende"s prior written consent, of all or any part of the Real Property. or any Interest In the Real Property. A "sale or transfer" means the conveyance of Real Property or eny right. Utle or Inlerestln the Real Property; whether legal, beneliclal or equiteble; whether voluntary or involuntary; whether by outright sale, deed, Installment sale contract. land contract, contract for deed. leasehold interest with a term greater than Ihrae (3) years, lease-option contracl, or by sale, assignment, or transfer of any beneficial Interest in or to any land trust holding title 10 Ihe Real Property, or by any other method of conveyance of an interest In the Reel Property. However. this option shall not be exercised by Lender If such exercise Is prohlbiled by federal law or by Wyoming law. TAXES AND LIENS, The following provisions relating to the taxes and liens on the Property are part of this Mortgage; Payment, Grantor shall pay when due (and In all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments. weter 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 meterlal furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or aqualto the Interest of Lender under this Mortgage. excepl 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 Contest, Grantor may withhold payment of any tax, assessmant, or claim In connection with a good faith dispute over the obligation to pay, so long as Lende"s Interest In the Property is not Jeopardized. If a lien arises or is flied as a result of nonpayment, Grantor shall within fiftean (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 dlscherge 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 rasult of a foreclosure or sale under the lien. In any contest, Granlor 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 delivar to Lender al any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work Is commenced, any services are fumlshed. or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials and the cost exceeds $3,000.00. Granlor 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 parI of Ihls Mortgage: 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, and with a standard mortgagee clausa in favor of Lender. Policies shall be wrlUen by such insurance companies and In such form as may be raasonably acceptable to Lander. 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 ten (10) days' prior written notice to Lender and not containing any disclaimer of the Insurer's liability for failure to giva such notice, Each Insurance policy also shall Include an endorsement providing that coverage In favor of Lender will not be impaired In any way by any act, omission or default of Grentor or any other person. Should the Real Property be located in an area designated by the Director of tha Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, If available, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to Ihe maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for Iha term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or replacement exceeds $3,000.00. Lender may make proof of loss if Grantor fails 10 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 tha restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements In a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, payor reimburse Grantor from the proceeds for the reasonable cosl of repair or restoration if Grantor Is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amounl owing to Lender under this Mortgage, then to pay accrued Interest, and the remainder, if any, shall be applied to the principal balance of tha Indebtedness. If Lender holds any proceads after payment in fun of tha Indebtedness, such proceeds shall be paid to Grantor as Granto"s Interests may appear. TAX AND INSURANCE RESERVES, Subject to any limitations sel by applicable law, Lender may require Grantor to maintain with Lender reserves for payment of annual laxes, assessmenls, and Insurance premiums, which reserves shall be created by advance payment or monthly payments of a sum estimated by Lender to be sufficient to produce, amounts at least equal 10 the taxes, assessments. and Insurance premiums to be paid. The reserve funds shall be held by Lender as a general deposit from Grantor, which Lender may satisfy by payment of the taxes, assessments, and Insurance premiums required to be paid by Grantor as they become due. Lender shall have the right to draw upon the reserve funds to pay such Items, and Lender shall not be required to determine the validity or accuracy of any item before paying it. Nothing In the Mortgage shall be construed as requiring Lender to advance other monies for such purposes, and Lender shall not Incur any liability for anything It may do or omit to do with respect to the reserve account. SUbject to any limitations set by applicable law, if the reserve funds disclose a shortage or deficiency, Grantor shall pay such shortage or deficiency as required by Lender. All amounts In the reserve account are hereby pledged to further secure the Indebtedness, and Lender Is hereby authortzed to withdraw and apply such amounts on'the Indebtedness upon the occurrence of an Event of Default. Lender shall not be required to pay any interest or earnings on the reserve funds unless required by law or agreed to by Lender In writing. Lender does not hold the reserve funds in trust for Grantor, and Lender is nol Grantor's agent for payment of the taxes and assessments required to be paid by Grantor. LENDER'S EXPENDITURES, If Grantor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or proceeding Is commenced that would materially affect Lende"s interests In the Property. then Lender on Granto"s behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses Incurred or paid by Lender for such purposes will then bear Interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. An such expenses wiil become a part of the Indebtedness and, at Lende"s option, will (A) be payable on demand; (B) be edded 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 (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage also will secure payment of these amounts. The rights provided for In this paragraph shall be In addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that It otherwise would have had. WARRANTY; DEFENSE OF TITLE, The following provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warranls that: (a) Grantor holds good and marketable title of record to the Property In fee simple, free and clear of all liens and encumbrances olher than those set forth In the Real Property description or in any title insurance polley, title report, or final title opinion issued In favor of, and accepted by, Lender In connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title, Subject to the exception in the paragraph above, Grantor warrants and will forever defend the titie 10 the Property against Ihe 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 at Granlor's expense. Granlor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented In the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such Instruments as Lender may request from time to tima to permit such participation. MORTGAGE (Continued) 000041 Page 3 Compliance With laws. Grantor warrants thaI the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and ragulations of governmental authorities. Survival of Promises, All promises, agreements, and statements Grantor has made in this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing In neture and shall remain In full force and effect until such time as Grantor's Indebtedness Is paid in full. CONDEMNATION, The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings, If any proceeding In condemnation is filed, Grantor shall promptly notify lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award, Grantor may be the nominal party In such proceeding, but lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Its own choice, and Grantor will deliver or cause to be delivered to lender such instruments and documentation as mey be requested by lender from time to time to permit such participation, Application 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 applied to the Indebtedness or the repeir or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and atlorneys' fees incurred by lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES, The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges, Upon request by lender, Grantor shall execute such documents In addition to this Mortgage and take whatever other action is requested by lender to perfect and continue lender's lien on the Real Property. Grantor shall reimburse lender for all taxes, as described below, together with all expenses incurred In recording, perfecting or continuing this Mortgage, Including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. . Taxes, The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor Is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Tax.s, If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall heve the same effect es an Event of Default. and Lender may exercise any or all of its avalleble remedies for en Event of Default as provided below unless Grantor either (1) pays the tax before It becomes delinquent, or (2) contests the tax es provided ebove In the Taxes and Uens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to lender, SECURITY AGREEMENT: FINANCING STATEMENTS, The following provisions relating to this Mortgage as a security agreament are a part of this Mortgaga: 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 as amended from time to time. Security Interest. Upon request by lender, Granlor shall lake whatever action is requested by lender to perfect end continue lender's security interest in the Personal Properly. In addition to recording this Mortgage In the real property records, lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse lender for all expenses incurred In perfecting or continuing this security Interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Proparty in a manner'and at a place reasonably convenient to Grantor and lendar and maka It available to lander within thraa (3) days aftar racalpt of writtan damand from lander to the extant permitted by applicable law. Addrasses. The mailing addresses of Grantor (debtor) and lender (secured party) from which Informallon conceming the security interest granted by this Mortgage may be obtain ad (each as required by the Uniform Commercial Code) are as statad on tha first paga of this Mortgage. FURTHER ASSURANCES; ATTORNEY-iN-FACT, The following provisions relating to further assurances and allorney-In-fact are a part of this Mortgage: Furthar Assurancas. At any time, and from time to time, upon request of lender, Grantor will make, execute and deliver, or will cause to be rrade. executed or delivered, to Lender or to Lender's designee, end when requested by Lender, cause 10 be filed, recorded, refiled, or rerecorded, as the case rray be, at such times and in such offices and places as Lender may deem appropriate. any end all such mortgages, deeds of trust, security deeds, security agreements, finandng statements, continuation statements, instruments of further assurence, certlficatas, 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, and the Related Documents, and (2) the liens and security interests created by this Mortgaga as first and prior liens on the Property, whether now ownéd or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grentor shall reirrburse Lender for all costs and expenses incurred in connection with the matlers referred to in this paragraph. Attorney-In-Fact. If Grantor fails to do any of tha things referred to in the preceding paragraph, lender may do so for and In the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints lender as Grantor's allorney-in-fact for the purpose of making, axecuting, delivering, filing, recording, and doing all other things as may be necessary or desirable, in lender's sole opinion, to accomplish the mallars referred to In the preceding paragraph. FULL PERFORMANCE, If Grantor pays ell the Indebtedness when due, and otherwisa perfonns all the obligallons imposed upon Grantor under this Mortgage, lender shall execute and dellvar to Granlor a suitable satisfaction of this Mortgage and suitable statements of termination of any finandng statement on file evidencing lender's security Interest in the Rents and the Personal Property, Grantor will pay, if permilled by applicable law, any reasonable terminellon fee as determined by lander 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 falls to make any payment when due under Ihe Indebtadness. Defeult on Other Payments, Failura of Grantor within the lima required by this Mortgage 10 maka any payment for taxes or insurance, or any other payment nacassary to prevant filing of or to effect discharge of any lien. Break Other Promises. Grantor braaks any promlsa made to lender or fails to parform promplly at tha time and strictly In the mannar providad in this Mortgage or in any agreement ralated to this Mortgage. Default In Favor of third Parties, Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreemant, In favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the Indabtadness or Grantor's ability to parform Grantor's obligations under this Mortgage or any related document. False Statements. Any representation or statement made or furnished to lendar by Grantor or on Grantor's behalf undar this Mortgaga or the Related Documents is falsa or misleading In any material respect, either now or at the lima made or fumlshed. Defactlve Collaterallzation. This Mortgaga or any of the Related Documents ceases to be In full force and effact (including failura of any collateral documant to creata a valid and perfectad security Intarest or lien) at any tima and for any reason. Death or Insolvency, Tha daath of Grantor, tha Insolvency of Grantor. tha appointment of a raceiver for any part of Grantor's proparty, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any procaeding under any bankruptcy or Insolvency laws by or against Grantor. Taking of the Proparty. Any craditor or govarnmantal agency tries to take any of the Property or any other of Grantor's property in which lender has a lIan. This Includes taking of, garnishing of or levying on Grantor's accounts with lender. Howaver, if Grantor dlsputaa in good faith whether tha claim on which the taking of the Property is based Is valid or reasonable, end If Grantor gives lender written nollce 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. MORTGAGE (Continued) 000042 Page 4 Br.ach of Oth.r Agr..m.nt. 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 limitetlon any agreement concemlng any indebtedness or other obligation of Grantor to lender, whether existing now or later. Ev.nts Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes Incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In..curlty. lender in good faith believes itself insecure. RIGHTS AND REMEDIES ON DEFAULT, Upon the occurrence of an Event of Default and at any time ther.aft.r, lend.r, .t l.nder's option, may ex.rcls. anyone or more of the following rights and rem.dles, In addition to any olher rights or rem.di.s provld.d by law: Acc.l.rat. Ind.bt.dn..., lend.r shall have Ih. right at its option withoul notice to Grantor to d.clara tha .ntire Ind.bt.dness Imm.dlat.ly dua and payabl., Including any prapayment p.naity that Grantor would b. r.quired to pay. UCC R.m.dl.s, With respect to all or any part of the P.rsonal Property, lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. ColI.ct R.nts, l.nder shall have the right, without notice to Grantor, to t.ke possession of the Prop.rty, Including during the pend.ncy of foreclosure, wh.th.r Judicial or non-judicial, and coll.cl tha R.nls, Including amounts past due and unpaid, and apply the n.t proc.eds, ov.r and above l.nd.r's costs, agaln.t the Ind.bt.dn.... In furth.ranc. of this right, l.nd.r may r.quire any t.nant or other user of the Prop.rty to make paym.nt. of r.nl or u.. f... dir.ctiy to l.nd.r. If th. R.nls are coll.ct.d by l.nd.r, th.n Grantor Irr.vocably d..ign.t.. l.nd.r a. Grantor'. attorn.y-In-fact to .ndors. Instrum.nts r.c.lv.d In paym.nt ther.of in Ih. name of Grantor and to n.gotiat. the sam. and coll.ct Ih. proce.ds. Payments by t.nants or oth.r us.rs to L.nder in r.spons. to l.nd.r's d.mand shall satisfy the obligation. for which the paym.nts are mad., wh.th.r or not any prop.r grounds for the d.mand .xlsted. l.nd.r may .x.rclse it. rights und.r this subparagraph .ith.r In p.rson, by ag.nt, or Ihrough a r.c.lv.r. Appoint R.c.lv.r, l.nd.r shall have the right to have a r.c.lver appoinl.d to t.k. poss.sslon of all or .ny part of the Prop.rty, with the pow.r to prolect and pr.s.rv. the Prop.rty, to op.ral. the Prop.rly prec.dlng for.closur. or sala, and to coll.ct the R.nts from the Property and apply the proc..ds, ov.r and above the cost of the rec.iv.rship, agalnsl the Indebt.dn.ss. Th. r.celv.r may s.rv. wilhout bond If p.rmitt.d by law. l.nd.r's right to the appointment of a r.c.iv.r shall .xlst wh.th.r or not the appar.nt valu. of the Properly .xc..ds Ih. Ind.bt.dn.ss by a subslantlal amount. Employm.nt by L.nd.r shall not disqu.llfy a p.rson from s.rvlng as a r.c.lv.r. Judlclsl For.clo.ure, l.nder may oblain a judicial d.cre. for. closing Grantor's Int.r.st in all or any part of the Prop.rty. Nonjudicial Sal., l.nder may for.clos. Grantor's Int. rest in all or In any part of the Prop.rly by non-judicial sal., and sp.clflcally by 'pow.r of sal.' or 'adv.rtisement and sale' foreclosur. as provided by slatut.. D.flcl.ncy Judgm.nt. 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. Tanancy at Sullaranca, 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 Grentor, Grantor shall become a tenant at sullerance 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. Oth.r R.m.dlas, lend.r shall have all olh.r rights and r.m.di.s provid.d in this Mortgag. or the Not. or available at law or In .quity. Sala of the Prop.rty. To the .xt.nt permitted by applicable law, Granlor hereby waives eny and all right to have the Prop.rty marshall.d. In .x.rcislng ils rights and r.medies, Lender shall be frae to sell all or any part of the Property togeth.r or separately, in one sale or by separate sales, lend.r shall b. entitied to bid at any public sal. on all or any portion of the Prop.rty. Notlc. of Sale, l.nd.r will give Grantor reasonable notice of the time and place of any public sale of the Personal Properly or of the time after which any private sale or other intend.d disposition of Ihe P.rsonal Proparty Is to be mad.. Reasonabl. notic. shall mean notice given alleasllen (10) days before the time of the sale or disposition. Any sale of the Personal Properly may be made In conjunction with any sale of the R.al Property. Election of Remedl.., All of lender's rights and remedi.s will be cumulativ. and may be exercised alone or together. An election by lender to choose anyone remedy will not bar lender from using any oth.r r.medy. If lender decides to spend mon.y or to perform any of Grantor's obligations under this Mortgage, after Grantor's failure to do so, that decision by lend.r will not allect lend.r's right to declare Grantor In default and to ex.rcls. lender's remedi.s, AUorneys' Fe.s; Expenses: If lender Institut.s any suit or action to enforce any of the t.rms of this Mortgage, l.nder shall be entitled to recover such sum es the court may adjudge reasonable as ettorneys' fees at trial and upon any appeal. Wh.ther or not any court action is Involved, and to the extent not prohibited by lew, all reasonable expenses lender Incurs that In lender's opinion ara necessary at any time for the protection of Its Interest or the enforc.ment of its rights shall become a part of the Indebtedness payable on d.mand and shall bear interest at the Not. 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 lagal expenses whether or not there Is a lawsuit, including reasonabl. attornays' f.es and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, end any anticipated post-judgment collection s.rvlces, the cost of searching records, obtaining title r.ports (Including foreclosure reports), surveyors' reports, and appraisal fees and title insuranc., 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 Mortgage, Including without limitation any notice of dafault and any notlc. of sale shall be given in writing, and shall be effective when actually dellv.r.d, wh.n actually received by telefacslmile (unless oth.rwise required by law), when deposited with a nationally r.cognlzed ov.rnight courier, or, If mailed, when deposited in the Unlt.d States mail, as first class, certified or registered mail postage prepaid, dir.cted to Ihe addresses shown near the beginning of this Mortgage, All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to lender's addr.ss, as shown near the beginning of this Mortgage. Any person may change his or her address for notices under this Mortgage by giving formal written nollce to the oth.r person or persons, specifying that the purpose of the notice Is to chang. the person's address. For notice purpos.s, Grantor agrees to keep l.nder Informed at all tim.s of Grantor's current address. Unless otherwise provided or required by law, If there Is more than one Grantor, any notice given by lender to any Grantor Is deemed to be notice given to all Grantors. It will be Grantor's responsibility 10 teil the others of the notice from lender. MISCELLANEOUS PROVISIONS, The following misc.llaneou. provisions are a part of this Mortgag.: Am.ndm.nts, What Is writt.n In this Mortgage and In the Related Documents Is Grantor's entlr. agre.ment with lender conc.mlng the maUers covered by this Mortgag.. To b. eff.ctiv., any change or am.ndment to this Mortgage must be in writing and must be signed by whoever will be bound or obligated by the change or amendment. Caption Heading., Caption headings In this Mortgage are for convenience purposes oniy and are nol to be used to interpret or define the provisions of this Mortgag.. Govemlng law. Thla Mortgage wltl be gov.rned by f.deral law applicable to lender and, to the extent not pre.mpt.d by fed.rallaw, the laws of the State of Wyoming without r.gard to Its conflicts of law provision., This Mortgage he. b.en accepted by lender In the State of Wyoming. Joint and S.veral liability, All obligations of Grantor under this Mortgage shall be joint and several, and all referencas to Grantor shall mean each and .very Grantor, This means that each Grantor signing below Is responsible for all obligations In this Mortgage. No Waiver by l.nd.r. Grantor understands lender will not give up any of lender's rights under this Mortgage unless l.nd.r does so In writing. Th. fact that lend.r delays or omits to exercise any right will not mean Ihat lend.r 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 .Iso understands that If lend.r do.s consent to a request, thai does not mean that Grantor will not have to g.t l.nder's consent again if the slluation happ.ns again. Grantor further understands that just b.cause l.nd.r cons.nts to one or more of Grantor's requests, that does not mean lender will be r.quired to consent to any of Grantor's future requests. Granlor waives presenlment, demand for payment, protest, and notice of dishonor. Grantor waives ail rights of exemption from ex.cutlon or similar law In the Property, and Grantor agr..s that the rights of l.nder In the Property under this Mortgage are prior to Grantor's rights whll. this Mortgag. r.malns in .ffect. Severability. If a court finds that any provision of this Mortgage Is not valid or should not be enforced, that fact by Itself will not mean that MORTGAGE (Continued) 000043 Page 5 the rest of this Mortgage will not be valid or enforced, Therefore, a court will enforce the rest of the provisions of this Mortgage even If a provision of this Mortgage may be found to be Invalid or unenforceable. Merger. There shall be no merger of the Interest or estate created by this Mortgage with any other Interast or estate in the Property at any time held by or for the benefit of Lender In any capacity, without the written consent of Lender. Succe..ors and Assigns, Subject to any limitations stated In this Mortgage on transfer of Grantor's Interest, this Mortgage shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness, Time Is of the Essence. Time is of the essence In the performance of this Mortgage. Waiver of Homestead Exemption, Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of Wyoming as to all Indebtedness secured by this Mortgage. DEFINtTIONS. The following words shall have the following meanings when used in this Mortgage: Borrower. The word 'Borrower' means Robert T. O'Donnell and Laura M. O'Donnell 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 all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1 980, as amended, 42 U.S.C. Section 9601, et seq. ('CERCLA'), the Superfund Amendments and Reauthorizetlon Act of 1986, Pub. L. No. 99-499 ('SARA'), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovary 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' meens Robert T. O'Donnell and Leura M. O'Donnell. 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 Substancas. 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 Improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words 'Hazardous Substances' are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term 'Hazardous Substances' also Includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word 'Improvements' means all existing and future Improvements, buildings, structures, mobile homes affixed on the Real Property, facllllies, 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, togathar with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts axpanded or advancad by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. lender, The word 'Lender' means First Interstate Bank, 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 betwean Grantor and Lender. Note. The word 'Note' means the promissory note dated March 31, 2008, in the original principal amount of $50,000.00 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. The maturity date of this Mortgage Is March 30, 2013. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words 'Personal Proparty" mean all aquipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter altachad or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all procaeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word 'Property' means collectively the Real Property and the Personal Property. Real Property, The words 'Real Property' mean the real property, interests and rights, as further described in this Mortgage, Related Documents. The words 'Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other Instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents, The word 'Rents' means all present and future rents, revenues, income, issues, royallles, profits, and other benefits derived from the Property. EDGES HAVING READ ALL THE PROVISIONS OF THIS MDRTGAGE, AND EACH GRANTOR AGREES TO ITS ,~ laura M, O'Donnell MORTGAGE (Continued) 000044 Page 6 INDIVIDUAL ACKNOWLEDG LA. JONES - NOTARY PUBLIC County Of. StIlle of Lincoln Wyoming My Commission ExpIre. Feb. 4, 2009 . STATE OF ill~'(\\~ COUNTY OF U~X\ ) ) S5 ) On this day bafore ma, tha undarsignad Notary Public, parsonally appaarad Robart T. O'Donnall and Laura M. O'Donnall, to me known to be the Individuals described In and who executed the Mortgage, S{'d acknowledged that they signed the Mortgage as their free and voluntary act and deed, for the uses and purposes therein mentloned.~ \~ ~ n er my hand cl I eal this ~ day of . 20 . Y LASER PRO Lending, Ver. 5.39,00.008 Copr. Harland Financial Solutions, Inc. 1997, 2008. All R,Ights Rasarved. ~ WY K:\CFI\LPLlG03.FC TR-176043 PR-744 I'.