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HomeMy WebLinkAbout876581RECORDATION REQUESTED BY: Wells Fargo Bank Northwest, N.A. Logan Residential Construction Dept. 15 South Main, 2nd Floor Logan, UT 84321 WHEN RECORDED MAIL TO: Wells Fargo Bank Northwest, N.A. Logan Residential Construction Dept. 15 South Main, 2nd Floor Logan, UT 84321 SEND TAX NOTICES TO: Welts Fargo .Bank Northwest, N.A. Logan Residential Construction Dept. 15 South Main, 2nd Floor Logan, UT 84321 RELEAS ,Hg /0 Thi Mortgage 860 S:Ef MORTSACE8 05037299 DEFINITIONS. The following words shall have the following meanings when used shall have the meanings attributed to such terms in the Uniform Commercial Code money of the United States of America. Grantor. The word "Grantor" means ROBERT R MEIKLE JAMIE The Grantor is the mortgagor under this Mongage. 316 81 �i'.• �Oi� CONSTRUCTION MORTGAGE S MEIKLE G3G1 7 PR PAGE 6 5 RECEIVED LINCOLN COUNTY CLERK OCT !D: 3 THIS MORTGAGE IS DATECOctober 2, 2001 ROBERT R. MEIKLE AND JAMIE S. MEIKLE whoseaddressis 821 WILDROSE, BLACKFOOT, ID 83221 (referred to below as "Grantor and Wells Fargo Bank Northwest, N.A. whoseaddressis 15 South Main, 2nd Floor Logan, UT 84321 (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, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights, water courses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other royalties. and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters. located in LINCOLN County, State of WYOMING (the "Real Property between LOT 32, PALIS PARK SUBDIVISION, ACCORDING TO PLAT NO. 165, BEING A PART OF THE N 1/2 SE 1/4 AND THE SW1 /4 NE1 /4 OF SECTION 29, T37N, R118W, 6TH P.M., LINCOLN COUNTY, WYOMING. The Real Property or its address is commonly known as 198 CANYON VIEW DRIVE. ALPINE, WY 83110 Grantor presently assigns to Lender all of Grantor's right, title, and interest In and to all leases of the property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code secr:rity interest in the Personal Proper and Rents. in this Mortgage. Terms not otherwise defined in this Mortgage All references to dollar amounts shall mean amounts In lawful Guarantor. The word "Guarantor" means and includes without limitation, each and all of the guarantors, sureties, and accommodation parties In connection with the Indebtedness. Improvements. The word "Improvements" means and includes without limitation all existing and future improvements, fixtures, buildings, structures, mobile homes affixed on the Real Property facilities, additions and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal and Interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses incurrod by Lender to enforce obligations of Grantor under thls Mortgage, together with interest on such amounts as provided in this Mortgage. Lender. The word "Lender" means Wells Fargo Bank Northwest, N.A. its successors and assigns. The Lender is the mortgagee under this Mortgage. CONWMTGA 05037299 0IS 58 1. MORTGAGE (Continued) 6 5 6 Page 2 Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender, and includes without limitation all assignments and security interest provisions relating to the Personal Property and Rents. Note. The word "note" means the promissory note or credit agreement dated October 2, 2001. In the original principal amount of One Hundred Thirty Thousand, Eight Hundred and No /100 130,800.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancing of, consolidations of, and substitutions for the promissory note or agreement. Property. The word 'Property" means collectively the Peal Properly and the Personal Property. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor. and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of. and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The work "Property" means collectively the Neat Property and the Personal Property. Real Property. The words "Real Property" mean the property, interests and rights described above in the "Grant of Mortgage" section. Related Documents. The words "Related Documents" mean and include without limitation all promissory notes, credit agreements, loan agreements, guaranties, security agreements, mortgages, deeds of trust, 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, royalties, profits, and other benefits derived from the Property. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS MORTGAGE AND THE RELATED DOCUMENTS. THIS MORTGAGE IS GIVEN AND ACCEPTED IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT 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. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of he Property shall be governed by the following provisions: Possession and Use. Until in default, Grantor may remain in possession and control of and operate and manage the Property and collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Hazardous Substances. The terms "hazardous waste,' "hazardous substance," "disposal," "release," and "threatened release." as used in this Mortgage, shall have the same meanings as set forth in 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 1901, et seq., the Resource Conservation and Recovery Act, 49 U.S.C. Section 6901, et seq., or other applicable state or Federal laws, rules, or regulations adopted pursuant to any of the foregoing. The terms "hazardous waste" and "hazardous substance° shall also include, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Grantor represents and warrants to Lender that: (a) During the period of Grantor's ownership of the Property. t there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any hazardous waste or substance by any person on, under, or about the Property; (b) Grantor has no knowledge of, or reason to believe that there has been. except as previously disclosed to and acknowledged by Lender in writing. (i) any use, generation, manufacture, storage, treatment, disposal; release, or threatened release of any hazardous waste or substance by any prior owners or occupants of the Property of (ii) any actual or threatened litigation or claims of any kind by ny person relating to such matters: and (c) Except as previously disolosed to and acknowledged by Lender in writing, (1) 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 waste or substance on, under, or about the Property to make such inspections and tests 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 created 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 waste. Grantor hereby (a) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws, and (b) agrees to indemnify and hold harmless Lender against arty and all claims, fosses, 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, shall survive the payment of the indebtedness and the satisfaction and of the lien of this Mortgage ano shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise, Nuisance, Waste. Grantor shall note cause, conduct or permit any nuisance nor commit, permit or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), soil, gravel or rock products without th'e prior written consent of Lender, F emcval Of Improvements. Grantor shall not demolish or remove any impro gerrtante from the, Reel :Property without the prior written consent of Lender. 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 its agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the 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 compliance during any proceeding, Including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonable satisfactory to Lender. to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon nor leave unattended the property. Grantor shall do all other ants, in addition th 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 Properly. DUE ON SALE CONSENT .BY LENDER. Lender may, at its option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without the Lender'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 Fteal Property or any right, title or interest therein; whether legal or equitable; whether votuntyry or involuntary: whether by outright sale, deed, Installment sale 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 other method of conveyance of Real Properly interest. If any Grantor Is a corporation or partnership, transfer also includes any change in ownership of more than twenty-five percent (25 of the voting stock or partnership interests, as the case may be, of Grantor. However, this option shalt not be exercised by Lender it such exercise is prohibited by federal law or by WYOMING Law, 05037299 MORTGAGE (Continued) PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage. Page 3 TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a part of this Mortgage. Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shell 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 all liens having priority over or equal to the interest of Lender under this Mortgage. except for the lien of taxes and assessments not due, and except as otherwise provided in the following 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 note 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 satlsfactory to Lender in an amount sufficient to discharge the lien plus any posts or reasonable attorneys' fees or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgement before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond fumished 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 (15) 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 Ilen could be asserted on aocount of the work, services. or materials and the cost exceeds $500.00. 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. 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 clause in favor of Lender. Policies shall be written by such companies and in such form as may be reasonable 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 ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurers liability for failure to give such notice. Should the Real Property at any time become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, to the extent such insurance is required and is or becomes available, for the term of the loan and for the full unpaid principal balance of the loan, or the maximum limit of coverage that is available, whichever is less. 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 $500.00. Lender may make proof of Toss if Grantor fails to do so within fifteen (150 days of the casualty. Whether or not Lender's security is impaired, Lender may, at its election, apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the 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, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default hereunder. 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 amount owing to Lender under this Mortgage, then to prepay accrued interest. and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor. Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered by thls Mortgage at any trustee's sale or other sale held under the provisions of this Mortgage; or at any foreclosure sale of such Property. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: (a) the name of the Insurer, (b) the risk insured: (c) the amount of the policy; (d) the property insured, the then current replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Mortgage, or if any action or proceeding is commenced that would materially affect Lender's interests In the Property, Lender on Grantor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender expends in so doing will bear Interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses, at Lender's option, will (a) be payable on demand, (b) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (i) the term of any applicable insurance policy or (ii) 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. This 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 the 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 warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear and all lines and encumbrances other than those eet forth 'in the Real Property dcucdpdcn .w; in any Ste Insurance _policy, title report, or Mal 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 title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgage. Grantor shall defend the action at Grantor's expense. 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 Lander's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance with Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. CONDEMNATION. The following provisions relating to condemnation of the Property am a part of this Mortgage. Application of Net Proceeds. If all or any part of the Property is oondemned 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 repair or restoration of the Property. The net proceeds of the award shall man the award after payment of all reasonable costs, expenses, and attorney's fees Incurred by Lender in connection with the condemnation. 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 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 as may be requested by it from time to time to permit such participation. OONwMTGC 05037299 OT(.>i 658 MORTGAGE (Continued) Page 4 IMPOSITION OF TAXES, FEES, AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes. lees and charges are a part 01 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 Lenders 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 whhout 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: (a) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage: (b) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (c) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (d) a specific tax on all or any portion of the Indebtedness or on payments or principal and Interest made by Grantor. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of Default (as defined below). and Lender may exercise any or an of its available remedies for an Event' of Default as provided below unless grantor either (a) pays the tax before it becomes delinquent, or (b) contest the tax as provided above in the Taxes and Liens 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 agreement are a part of this Mortgage. Security Agreement. This instrument shall constitute a security agreement to the extent any of the Property constitutes fixtures or other personal property, and Lender shall have all of the rights of a secured party under the Uniform Commerciaf Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall execute financing statements and take whatever other action is requested by Lendor to perfect and continue Lender security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real properly records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproduotions 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 assemble the Personal Property In a manner and at a place reasonable convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender, Addresses. The mailing 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 Mongage. 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 10 be filed, recoreded, refited, or recoreded, as the case may 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, financing statements, continuation statements, instruments of furether assurance, certificates. and other documents as may, In the sole opinion of Lnnder, be necessary or desirable in order of effectuate, complete, perfect, continue, or preserve (a) the obligations fo Grantor under the NOte, this MOrtgago, and the Related Documents, and (b) the liens and seourity interests created by this Mortgage as first and prior liens on the property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or agreed to the contrary by lender in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Attorney -In -Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantors expense. For such purposes, Grantor hereby irrevocably appoints Lender as G rantor's attorney- in•faot for the purpose of making, executing, delivering, filing, reoording, 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. It Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor 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 Landers security interest in the Rents and the Personal Property. Grantor wilt pay, it permined by applicable law, any reasonable termination fee as determined by Lender from time to time. DEFAULT. Each of the following, at the option of Lender, shall constitute an event of default "Event of Default under thls Mongage: Default on Indebtedness. Failure of Grantor to make any payment when due on 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. Compliance Default. Failure to comply with any other term. obligation. covenant or condition contained in this mortgage, the Note or in any of the Related Documents. If such a Failure 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 (12) months, it may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends written notice demanding cure of such failure; (a) cures the failure within (15) days; or (b) if the cure requires more than fifteen (18) days, immediately initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. Breaches. Any warranty, representation or statement made or furnished to Lender by or on behalf of Grantor under this Mortgage, the Note or the Related Documents is. or at the time made or furnished was, false in any material respect. Insolvency. The insolvency of Grantor, appointment of a receiver for any pan of Grantor's property, any assignment for the benetit of creditors, the commencement of commencement of any proceeding under any bankruptcy or Insolvency laws by or against Grantor, or the dissolution or termination of Grantor's existence as a going business (if Grantor is a business). Exoept 10 the extend prohibited by federal law or WYOMING law, the death of Grantor (if Grantor is an individual) also shall oonstitute an Event of Default under this Mortgage. Foreclo,suro, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any of the Properly. however, this subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or forfeiture proceeding, provided that Grantor gives Lender written notice of such claim and furnishes reserves or n surety bond for the claim satisfactory to Lender, 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 ooncerning 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 of any of the Indebtedness or such Guarantor dies or becomes incompetent or any Guarantor revokes any guaranty of the Indebtedness. 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 satisfaotory to Lender, and, in doing so, cure the Event of Default. Insecurity. Lender in good faith deems itself insecure. CONWMTGD 05037299 ONWI MORTGAGE (Continued) 659 Page 5 RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter but subject to any limitation in the Note or any limitation in this Mortgage, Lender, at its option. may exercise any one 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 is 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 respect to at or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall 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 tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor Irrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by 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 subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possission of all or any part of the Property, with the power to protect and preserve the preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from teh 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 rights to the appointment of a receiver shall exist whether or not the apparent value fo 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. NonJudlclal Sale. Lender may. foreclose Grantor's interest in all or in any part of the Property by nonjudicial sale, and specifically by "power of sale" or "advertisement and sale" foreclosure as provided by statute. Deficiency Judgement. If permitted by applicable law, Lender may obtain a judgement for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received from the exer5cise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession fo the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantro shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Property, or (b) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this mortgae or the Note or available at law or in equity. Sale of the Property. To the 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 fee to sell all or any part of the property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended dispostion of the Personal Property is to be made. Reasonable notice shall mean notice given at least ten 910) clays before the time of the sale or disposition. Waiver: Election of Remedies. A waiver by any party of a breach of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or take action to perform an obligation of Grantor under this Mortgage after failure of Grantor to perform shall not affect Lender's right to declare a default and exercise its remedies under this Mortgage, Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Leader shall be entitled th recover such sum as the court may adjudge reasonable as reasonable attorneys' fees, at trial and on any appeal, Whether or not any court action is involved, all reasonable expenses incurred by Lender that in Lender's opinion are necessary at any time for the protection of Its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest from the date of expenditure until repaid at the Note rata. expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lenders legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post judgement collection services, the cost of searching records, obtaining title reports (including foreclosure reports). surveyors' reports, and appraisal fees, 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 TO GRANTOR AND OTHER PARTIES. Any notice under this Mortgage, including without limitation any notice of default and any notice of sale to Grantor, shall be in writing and shall be effective when actually delivered or, if mailed, shall be deemed effective when deposited in the United States mail first class, registered mail, postage prepaid, directed to the addresses Shown near the beginning of this Mortgage. Any may change its address for notices under this Mortgage by giving formal written notice tot he other parties, specifying that the purpose of the notice is to change the party's address. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent tD Lender's address, as shown near the beginning of this Mortgage. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions am a part of this Mortgage: Amendments, This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth In this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender upon request, a certified statement of net operating income received from the Property during Grantors previous fiscal year In such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts for the Property less all cash expenditures made in connection with the operation of the Property. Applicable Law. This Mortgage has been delivered to Lender and accepted by Lender in the State of WYOMING This Mortgage shall be governed by and construed in accordance with the laws of the State of Wyoming. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret of define the provisions of this Mortgage. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate In the Properly at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Multiple Parties, All obligations of Grantor under this Mortgage shall be joint and several, and all references to Grantor shall mean each and every Grantor. This means that each of the persons signing below is responsible for all obligations in this Mortgage. OONWMTGE 05037299 GRANTOR: X RO: RT R MEIKLE MORTGAGE (Continued) 660 Severability. If a oourt of competent jurisdiction finds any provision of this Mortgage to be invalid or unenforceable as any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any suoh offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shalt be stricken and all other provisions of this Mortgage in all other respects shall remain valid and enforceable. Successors and Assigns. Subject to the limitations stated in this Mortgage on transfer of Grantors interest, this Mortgage shall be binding upon and insure to 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. Waivers and Consents. Lender shall not be deemed to have waived any rights under this Mortgage (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by any party of a provision of this Mortgage shall trot constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. No prior waiver by Lender, nor any course of dealing between Lender and Grantor. shall oonstitute a waiver of any of Lender's rights or any of Grantor's obligations as to any future transactions. Whenever consent by Lender is required in this Mortgage, the granting of such consent by Lender In any instance shall not constitute continuing consent to subsequent instances where such consent is required, EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. STATE OF 3 n rr .u/Y(-�. On ifts before t ttie J A M dIrErgS MEIKLE to m known bile,personally appeared R ME n to be the individuals described in and who executed the Mortgage, and acknowledged that they signed the MOrggage as their free and voluntary act and deed, for the uses and purposes therein mentioned. Given nder my hand a official seal this By JAMIE' S MEIKLE INDIVIDUAL ACKNOWLEDGMENT b Notary Public In and for the State of. CA s Notary My Commission Expires March 18, 2005 day of bez k ,o Residing at -G',.) My commission expires 3 (O G'S Page 6