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HomeMy WebLinkAbout941241 'l'~nflH,1 . ,,'¡?r: ,. , RECORDATION REQUESTED BY: First State Bank of Pinedale P.O. Box 519 Pinedale. WY 82941 RECEIVED 8/13/2008 at 11:12 AM RECEIVING # 941241 BOOK: 702 PAGE: 229 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY WHEN RECORDED MAIL TO: First State Bank of Pinedal. P.O. Box 519 Pinedale. WY 82941 SEND TAX NOTICES TO: First State Bank of Pinedale P.O. Box 519 Pinedale. WY 82941 (;,0&229 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY CONSTRUCTION MORTGAGE MAXIMUM LIEN. The lien of this Mor.tgage shall ,not e~ç::}eçl ~t.any one time $267,425.00. THIS MORTGAGE dated July 24, 2008, is made and executed between Darren Mehler, a married man, whose address is P,Q. Box 162, LaBarge, WY 83123 (referred to below as "Grantor") and First State Bank of Pinedale, whose address is P.O, Box 519, Pinedale, WY 82941 (referred to below as "Lender"). GRANT OF MORTGAGE. for valuable conl/deratlon. Grantor mortgages and conveys to Lender all of Grantor's right. title. and Interest in and to the following described reel property. together with all exisling or subsequently erected or affixed buildings. Improvements and fixtures; all easements. rights of way. and appurtenances; all water, wa:er rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights. royalties, and profits relatin~ to the real property. Including without limitation all minerals. oil. gas, geothermal snd .imilar matters, (the "Real Property") loçated In lincoln County, State of Wyoming: Lot 14 of Eubank Foothill Estates Subdivision, linco!n County, Wyoming. 8S described on the official plat flied on March 6, 1985 as instrument No. 681486 of the records of the Lincoln County Clerk The Real Property or its address is commonly known as 311 Bondurant Road, LaBarge, WY 83123. Grantor presently assigns to Lender all of Grantor's right. title. and ¡ntgrest 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 IAI PAYMENT OF THE INDEBTEDNESS AND 181 PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE. THE RELATED DOCUMENTS. ANO THIS MORTGAGE. THIS MORTGAGE IS GIVEN ÀND ACCEPTED ON THE FOLLOWING TERMS: . , GRANTOR'S WAIVERS. Grantor waives all rights or defenses arising by reason of ~ny 'one action' or 'antl-deficiency' law. or any other, h~w which may prevent Lender from bringing any action against Grantor, in:;luding a claim for deficiency to the extent Lender:is otherwise ent~led,.to'. a claim for deficiency, before or after lender's commencement or completion of ,jny foreclosure action. either j~dlel..lly or,by:exercis~~!¡a:. power of sale. ., I··· !: " . ., ;:t, '. ".: ; . ..: ::~¥¡f': I GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warrants that: la)' ~Hís MOi1gLpe lis execUted' a~' ,B~rro~e<~ ~qU~st .an~+~f ~rt i·' the request of Lender; Ib) Grantor has the full power.. rIght. and authority to enterl~i to this M~rtgage and to hypothecate tlie Property; ¡;,{'é}, e11... provisions of this Mortgage do not conflict with. or result in a default under any agr ~ment or hthâr instrument binding:upon'Grantor andi~b'n, '\fii: : result in a violation of any law, regulation. court decree or order applic'lble to Grant r;', (d) Grantòrl has established adequate means of'olitåiíÎfti~1 ~¡! from Borrower on a continuing basis information about Borrower's financial condition; and Ie) Lender has made no representation to' Grá'nib¡-I,.~·! about Borrower (Including without limitation the creditwor-thin essofBo"rowerl. '. ; : .",.: ..' t:¡t~!Wt¡:. PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage. Borrower shall pay to Lender all Indebtedness secured bV·thls~·!' Mortgage as it becomes due. and Borrower and Grantor shall strictly perform all Borrower's and Grantor's obligations under this Mortgage; ~;:! ' ! ; . . " ;" ' CONSTRUCTION MORTGAGE. This Mortgage is a ·constrlction mortgage' for the purposes of Sections 9-334 and 2A-309 of the Uniform CommeroitJ/ Code. 1118 those seotions hsve been llldopted by the State of Wyoming. ; . , .:' POSSESSION AND MAINTENANCE OF THE PROPERTY. Borrower and Grantor agrJe that Borrower's and Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Us.. Until the occurrence of an Event of Default, Grantor mav (1) remain in possession and control of the Property; (2) use. operate or manage the Property; and (3) collect the Rents frJm the Property. Duty to Maintain. Grantor shall maintain the Property in good cc,dition and promptly perform all repairs. replacements. and maintenance necessary to preserve its value. Compliance With Environmental Laws, Grantor represents and W1rrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use. generation. manufacture, stc:age. treatment, disposal. release or threatened release of any Hazardous Substance by any person on. under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Le'lder in writing, (a) any breach or violation of any Environmental laws, (b) any use. generation. manufacture, 5torage, treatment. dispos;Jl. release or threatened re'ease of any Ha~ardous Substance on. under. about or from the Property by any prIor owners or occupants of the Property, or Ie) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as prwiously disclosed to and acknowledged by Lender in writing. (a) neither Grantor nor any tenant. contractor, agent or other authcrized 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 shaH 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 mai:e 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 ar 'I responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein 3re blJsed on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (11 releases and waiv~s any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup· or other costs under' å-:y 6uéli'laws; and (2) agreas to indemnify. defend. IJnd hold ..harmless Lender against any and all claims. losses, liabilities, damages. p9'lalties. and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or cs a consequence of any use, generation. manufactvre, storage, disposal, release or threatened release occurring prior to Grantor's owner~'¡'lÎp 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 reconv1"yance of the lien of this Mortgage and shell not be affected by Lender's acquisition of any interest in the Property, whether by foraclosure ")r 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 the Property or eny 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 011 and eas), coal, clay. scoria, soil. gravel or rock products without Lender's prior written consent, Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Þroperty without Lender's prior written consent. As a condition to the removal of any Improvements. Ler,der may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at leest equal value. lender's Right to Enter. Lender and lender's agents and represe"~8tives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purpose:! 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 usa or :¡ccupancy ofl the Property.: Grantor may contest in good faith anr;,,~~;c.~. ' I I 'dh~'i'llh ' Loan No: 110072246 MORTGAGE (Continued) OOô230 Page 2 law. ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals. so long a. 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 edequate 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 acta. in addition to those acts set forth above in this section. which from the character and use of the Property are ressonably necessary to protect and preserve 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 Improvementl lhaD be completed no tater than the maturity date of the Note (or IWch earlier date aa lender mey reasonably establish) and Grantor shell pay in full all costs and eltpenla8 In connection with the worti:. Lender will disburse loan proceeda under such terms and conditions as lender may deem reasonably nec..sary to insure that the Interest created by this Mortgage shell have priority over all possible liens. Including those 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 a8 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 Property. or any interest in the Real Property. A ·sale or tran.fer· means the conveyance of Real Property or any right, title or Interest In the Real Property; whether legal. beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract. contract for deed. leasehold interest with a term greater than three (3) years, lellse-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 an Interest in the Real Property. However, this option shall not be eltercised by Lender if such exercise is prohibited by federal law or by Wyoming taw. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property ara part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquancy) all taxes. payroll taxes. special taxe8, assessments. wlter charges and sewer service charges levied against or on eccount of the Property, and shall pay when due all clelms for work done on or for services rendered or mlterial furnished to the Property. Grantor shaD maintain the Property free of any liens having priority over or equal to the interest of Lender under this Mortgage. eltcept for those liens specifically agreed to in writing by Lender, and except for the lien of texes 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. 80 long as Lender's ir.uarest in the Property is not jeopardbed. If a lien ariao 01 ia filed 88 a re8ult of nonpaymont. Grantor shall within fifteen (15) days after the lien arise8 or. If a lien is filed. within tifteen (16) 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 reesonable attorneys' fees. or other charges that could accrue as a result of a foreclosure or II8Ie under the lien. In eny contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforceme.Qt.agalnst 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 taltes or .ssessments and shall authorize the appropriate governmental offiCial to deliver to lender at any time a written statement of the taxes and aSS8ssments 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. meterialmen's lien. or other lien could be asserted on account of the work. services. or materials. Grantor will upon request of lender furnish to Lender advance assurances satisfactory to lander that Grantor can end will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenence of Insurance. Grantor shall procüre and malntlin policies of fire insurance with standard extended coverage endorsements on 8 replacement basis for the full il\SUl:Jib1Ìl '¡Îilue covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause. and w4h..astandard mortgagee clause in fevor of lender. Policies shall be written by such Insurance companies and In such form as may be reasonably acce ltable. to lender. Grantor shall deliver to Lender certificates of coverage from each Insurer containing a stipulation that coverage will I'\ortlacancelled or diminished without a minimum of ten (10) days' prior written notice to Lender and not containing any disclaimer ·of~nsr's liability tor failure to give such notice. Each Insurance policy also shall Include an endorsement providing that cOy'I:'r'i!gè'in favor of Lender will not be impaired in any way by any act. omlasion or default of Grantor or any other person. Should the Real Property be located In an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area. Grantor agrees tQ;obtain and maintain Federal Flood Insurance. if available, for the full unpaid principal balance of the loan and any prior liens on the.pul,perty Securing the loan. up to the ma~lmum policV limits set und., the National Flood lnaurance Program. or a8 otherwise required~der, and to maintain such insurance tor the term of the loan. Appllcetion of Proceeds. Grantor shall promptly notify lender of any loss or damage to the Property. Lender may make proof of loss /f 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 end rete;n the prOCfIB.'..'."y insurance end apply the proceeds to the reductlof\ of the Indebtedneaa, peyment of any lien affecting the Property. or the relltCitation 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 expendíture. payor reimburse Grantor from the proceeds tor the reasoneble cost of repair or restoration if Grantor is not In default under this Mortgage. Any proceeds_wJ~¡¿h have not been disbursed within 180 days atter their receipt and which Lender has not committed to the repair or re8~....f the Property shall be used first to pay any amount owing to Lender under this Mortgage. then to pay accrued interest. and the-nn'n1linder. if any. shall be applied to the principal balance of the Indebtedness. It 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 taUs _ (A).. to keep the Property free of all taxes. lians. lecurity intec:.sts, encumbrances. and other claims, (B) to provide any required Insurance-'on the Property. or ICI to make nspairs to the Property then Lender may do so. If any ection or proceeding is commenced that wõüld materially affect Lender's Intereste in the Property. then Lender on Grantor's behalf may. but Is not required to, take any action that Lender believes to be Ippropriate 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. All such expenses will becoma..a~t of the Indebtedness and. at lender's option. will (AI be payable on demand; (8) be added to the balance of the Note and be apportioned among and be payable with any Instellment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (CI be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage .also wiU..seeure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to wtric;trt:$nder may be entitled on account of any default. Any such action by Lander shall not be construed 88 curing the default so as i9"bai 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: Titl.. Grantor warrants that: (a) Grantor .holds good and marketable title of record to the Property in fee limple. free and clear of all liens and encumbrances other than those set forth in the Real Property description or .in any title insurance policy. title report. or final title opinion issued in favor of. and accepted by, lender in connection with this Mortgage. and (bl Grantor has the full right. power, and authority to execute and deliver this Mortgage to lender. Dele.... 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 Lender'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 Law.. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws. ordinances, lIod regulations of governmental authorities. Survival of Promla.., All promises, agreements, and st8tements Grantor has made in thl8 Mortgage shan survive t~e 8ltecutlon an~ deli~8~ of this Mortgage. shall be continuing in nature and shall remain in full force and effect until such time as Borrower a Indebtedness's pllld m full. Loan No: 110072246 MOR~:GAGE (Cominued) OOô231 Page 3 CONDEMNATION. The following provisions relating to conderr nation ~ ·oceedings are a part of this Mortgage: Proceedings. If any proceeding in oondemnation is filed, Grantor shall promptly notify lender in writing, and Grantor ehall promptly take such stepa as may be necessary to defend the action and obtair 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 may be requested by lender from time to time to permit such participation. Application of Net Proceeds. If all or any part of the Property ;s 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 repair or restoration of the Propsrty. The net proceeds of the eward shall mean the award after payme~t o! all reasonable costs, expenses, and attorneys' fees incurred by Lender I" connection with the condemnat¡on. " '; ::;.; ! I ! . ~. . IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORlTlEl The following provisions relating to governmentBllt8xes,1 : fees ~:~r:::~::e:~eF::Sa:::~~:r~:s~g~g:~n requ~st by (~nder, Grantor shall ex~d~ ~UCh~oc~me~t"in ~~di~¡~~ :t~t~h'i~:~~rtg8g~i'~~~ü~~rf whatever other action is requested by lender to perfect and continue lender's (I è':1 on the; ea ~ropertY. Grantor.,shall.relm,bur8e.lärjlietb~ : all taxes, as described below, together with all expenses incurred in recordin~I.'perfectin J continuing' this MOl1gage":1nCIui:ti~9'~f~l~ It'¡: limitation all taxes, fees, documentary stamps, and other charges for recording ~r registering t~iS Mortgage." ¡ .' . ;.I~~ ~ ,~ II; Taxes. The following shall constitute taxes to which this section applias: {1J !a spèclfic ~iJx lupon this tYPe of Mortgage or ùpon alr~Ót.j~....y -: part of the Indebtedness secured by this Mortgage; (2:1 a specific tax on Borrower which Borrower is authorized or required to '(jèdðët ' from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this tYpe'of Mortgage chargeable against the Lender!þr! I the holder of the Note; and (4) a specific tax on all or any porthn of the Indebtedness or on payments of .principal and interest made' by: ' Borrower. ' "'~. . I r t, . Subsequent Taxes. If any tax to which this section applies is er.acted subsequent to the,date of this Mortgage, this event shall have the' same effect 8S an Event of Default, and lander may exercise any or all of its available remedies for an Event of Default as provldsd'below unless Grantor either (1) pays the tax before it becomes de1ínq'Jent, or (2) contests 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 :.rovlsions 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, and Lender shall have all of the rights of a secured party under the Uni~orm Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take ';\ohatever action is requested by lender to perfect and continue Lender's security interest in the Personal PropertY. In addition to recordinr. this Mortgage in the real property records, Lender may, at any time and without further authorIzation from Grantor, file executed counter¡:-arts, copies or reproductions of this Mortgage 8S 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 Property in a manner and at a place reasonably convenier.t to Grantor and Lender and make it available to Lender within three (31 days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and lende- (secured party) from which information concerning the security interest granted by this Mortgage may be obtained (each as required b'i the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The fOllowing provis':ms relating to further assurences 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 designe9, and- when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the cese may be. at such timøs and in such offices and places 811 Lender may deem appropriate, any and all such mortgage8, deeds of trust, security deeds. security agreements, f'nancing ,'itatements, continuation statements, instruments of further assurence. certificates, and other documents as may, in the sole opinion of Umder, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) BorrowfH'S and Grantor's obligations 1¡1der the Note, this Mortgage, and the Related Documents, and (2) the liens and securitY 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 Lender agrees to the contr3ry in writing, Grantor shall reimburse Lender for aU costs and expenses incurred in connection with the matters referred to In this paragraf'h. 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 Grantor's expense. For such purposes, Grantor hereby irrevocably appoints lender as Grantor's attorney-in-fact for the purpose of making, executing. dellveriñg, filing, recording, and coing all other things as msy be necessary or desirable. in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Borrower and Grantor pay all the Ir.debtedne:)s when due, and Grantor otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender ShaJ execute and delivar tc Grantor a suitable satisfaction of this Mortgage and suitable stat9mant8 of termination of any financing statement-"n"1ile 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 deterr.1ined by Lender from time to time. . EVENTS OF DEFAULT. At lender's option, Grantor will be In default u:1der this Mortgage if any of the following happen: Payment Default. Borrower fails tp, make any payment when due 'Jnder the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to :make any payment for taxes or Insurance, ··o.r' : any other payment necessary to prevent filingofono effect discharge of an'lllen.. " .:.j::d Break Other Promises. Borrower or GaAror breaks any promislJ made to lender or fIJlls i~ perform promptlv at the time and 8triCtlV:I:'Jn'í!~ ; . manner provided in this Mortgage QT'm any agreement re.lated to this Mortgage:1 ¡! I :. ¡ .': . ;:'; ¡. r.", II'¡ I;¡: Default In Favor of Third Parties. Should Borro.wsr or any Grantor default und~ :ànv loan, !ext$nsion of creäìti!secu~¡tY agr8ement,'!p ¡ii.. or sales. agreement. or any oth8. r agreement, in favor of ,any other craditor ori ,erson thdt;msy mate~18Uf8~~ect å~y o.t: Bori'pw~:i"18} )t:·:¡ Grantor ~ property or Borrower.'s"1Jb1IirTtcírepay the, Indebtedness or Borrowar ~,:or Grantdr'1 ability to per~rn:' !h~I~:rea~ectlv8.o~l! .~tj1: ' under this Mortgage or any related docu~ent., !: I . .,.'. I·, , . : ,':;' t/ ~,'I,;,. False Statements, Any representation or statement made or furnished to le ,der by Borrower or Grantor or on! Borrower's or ·Gr~".. i~1r ' beh~1f under this Mortgage or the Rel~!a~ Documents is false or misleading in any mate,rlaI respect, either now br at the !time medi(lor: r: furnished. . . : " .' j ¡ .liffT, L: !. ',:..1. ;'.::. Defective Collateralization. This Mortgage or any of th~ Related Documents ceases to be in full force and effect (including failure of :àñy: ' collateral document to create II valid and perfected seculity Intere~t or lienJ at alÌy time and for any reason. . ';,; ;,! : Death or Insolvency. The death of 60rrower-or Orantor, the Inso;vency of Borr~wer or Grantor, tt1e appointment of a receiver for any part of Borrower's or Grantor's property, any assignment for the ben,~fit of creditors, any type of creditor workout,. or the commenC8ment of any proceeding under any bankruptcy or insolvency Jews by or against Borrower or Grantor. Taking of the Property. Any creditor or gQvernmental agency tr;e8 to take eny of the Property or any other of Borrower's or Grantor's property in which Lender has a lien. -:DDs includes taking of, gs·nishlng of or levying on Borrower's or Grantor's accounts with Lender. However, if Borrower or Grantor..disputes in good faith whether the claim on which the taking 'Of the Property is based is valid or reasonable, and if Borrower or Grantor gives Lender written notice of the claim and furnishes lender with monies or a surety bond satisfactory to lender to satisfy the cl~i.m.Jhen this default provisiQn will not apply. Breach of Other Agreement. Anv...breach by Borrower or Grantor Ilnder the terms of any other agreement between Borrower or Grantor and Lender that is not remedied within any grace period provide>:' therein, including without limitation any agreement concerning any Indebtedness or other obligation of Borrower or Grantor to Lender, whether existing now or later. Events Affecting Guarantor, Any oUhe preceding everts oCCurs ·.vlth 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 loan No: 110072246 MORTGAGE (Continued) OOö232 Page 4 disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the evant of a death, Lender, at its option, may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in dOing 80, cure eny Event of Default. Right to Cure. If any default. other than a default in payment is curable and It Grantor has not been given 8 notice ot a breach of the same provision of this Mongage within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default: 111 cures the default within fifteen (16) days; or (2) if the cure requires more than fifteen 1161 days, immediately initiates steps which Lender deems In Lender's 80le discretion to be sufficient to cure the default end thereafter continues and completes all reasonable and necessary steps suHiclent to produce complIance as soon as reasonebly practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of D8feult and at any time thereafter, Lender, at Lender'. option, may exercise any one or more of the following rights and remedies, in addition to eny other rights or remedies provided by law: Acc.....etelndebtedn.... Lender shall have the right at its option without notice to Borrower or Grantor to declare the entire Indebtedne.. immediately due and payable, including any prepayment penalty that Bol1'ower would be required to pay. UCC Remedle.. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents, Lender shall have the right, without notice to Borrower or Grontor, to toke possession of the Property, including during the pendency of foreclosure, whether judIcial or non-judicIal, and COllect the Rents, Including amounts pa.t 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 Propenv 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 peyment thereof in the name of Grantor and to negotiate the aeme and collect the proceeds. Payments by tenants or other U8era to Lender in response to Lender's demand shell s.tiefy the obligationa for which the payments are made, whether or not any proper grounda for the demand existed. Lender mey exercise its rights under this subparagraph either in person. by agent, or through a receiver. Appoint "-ceiver. Lender shall have the right to heve 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 s.le, end to collect the Re"" from the Property and apply the proceeds, over and above the coat of tha receIvership. &galnst the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to tha appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantiel amount. Employment by Lender shall not dIsqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree forecl08/ng Grantor's interest In a/l or any part of the Property. ~udicilll S.... Lender may foreclose Grantor's interest in all or in any pan of the Property by non-judlcialssle, and specifically by 'power of sale" or "advertisement and 8ale" foreclosure as provided by statute. Deficienoy Judgment. It permitted by applicable law, Lender may obtain a judgment for any defioienoy remeining in the Indebtedne.. due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenencyat SUff8rance, If Grantor remains in possession of the Property after the Property is sold 88 provided above or Lender otherwise becomes entitled to possession of the Property upon defsult of Borrower or Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser Of the Property and shall, at Lander's option, eIther (1) pava reasonable rental for the use of the Property, or (21 vacate the Property Immediately upon the demand of Lender, Other Remedlu. Lender shall have all other rights and remedies provided in this Mongage or the Note or available at law or in equity. Sa" of the Property. To the extent permitted by .ppIJclrbIe law, Borrower snd Grantor hereby wal"e any and all right to hall. the Property marshalled. In exercising its rights and remedies, Lender shell be free to 8ell 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 S.... Lender will give Grantor rea80nable notice of the time and piece of any public sale of the Personel Propeny or of the time atter which any private ..1. or other intended diaposition of tho Person.1 Property ia to be made. _ Re.aonabfe notice shall ,.,..n notloe given at least ten (10) days before the time of the s81e or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Re81 ·Property. Elecdon of R.medies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by Lender to choose anyone remedy wiH not bar Lender from using any other remedy. If Lender decide. to .pend money or to perform any of Grantor's obligations under this Mortgage, sfter Grantor's failure to do so, that decision by lender win not affect Lender's right to declsre Grantor in default and to exercise Lender's remedies. Anorneys' Fees; ExptInsas, If Lender Institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such tum as the court may adjudge reasonsble as attorneys' fses 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 interest or the enforcement of Its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the dete of the expenditure untit repaid. Expenses covered by this paragraph Include, without limitation, nowever subject to any limits under applicable 'aw, lender's reasonable ottorneya' fen and lender' a legal expenaea whether or not there is a law.uit, including reasonable 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 $88tching records, obtaining title reports (Including foreclosure reports), surveyol'8' repons, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any coun costs, In addition to all other sums provided bV law. NOTICES. Any notice required to be given under this Mortgage, including without limitation any notice of defeult and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by lawl, when deposited with a nationslly recognized overnight courier, Ot, if mailed, when deposited in the United St8tes mail, as fil'8t class, certified or registered mail postage prepaid, directed to the addressN shown near the beginning of this Mortgage, All copie. of notices of foreclosur. from the holder of any lien which has priority over this Mortgage shall be sent to Lender's address, a8 shown near the beginning of this Mongage. 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 chenge the person's address. For notice purposes, Grantor agrees to keep lender informed at all times of Grantor's current address. Unless otherwise ørovided or reQuired by law, if there Is more than one Grentor. any notice given by Lender to eny Grantor is deemed to be notice given to all Grantors, It will be Grantor's responsibility to tell the others of the notice from Lender. MISCELLANEOUS PROVISIONS. The following misceUeneous provisions are a pan of this Mongage: Amendments. What Is written in this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the matters covered by this Mongage. To be effective, any change or amendment to this Mortgage must be In writing end must be signed by whoever will be bound or obligated by the chenge or amendment. Ception Headinp. Caption headings in this Mongage are for convenience purpose. only and are not to be used to interpret or define the provisions of this Mortgage. Governing Law. This Mortgage will be governed by federal law applicllble to Lander and. to the extent not preampted by federal law, tha laws of tha Stete of Wyoming without ragard to its conflicts of law provisions. This Mortgaga hø been accepted by L....der in the Stata of Wyoming. Choice of Venue. If there is a lawsuit, Grantor agre88 upon Lender's request to submit to the jurisdiction of the courts of Sublette County. State of Wyoming. Joint and Severe! LiIIbIIIty. All obligations of Borrower and Grantor under this Mortgage shall be joint and several, and all references to Grantor shall mean each and every Grantor, and 811 references to Borrower shall mean each and every Borrower. This means that each Grantor signing below is responsible tor all obligetlons I" thla Mortgage. No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under this Mongage unless Lander does so in writing. The fact that Lender delays or omits to exercise any right will not mean that Lander has given up that right. If Lender does agree in writing to give up one ot I.ender's rights, that does not mean Grantor will not have to comply with the other provisions of this Mortgage. Grantor also understands thet If Lendar does consent to a request, that does not mean that Grantor will not have to get LendSf's consent again if the situation happens again. Grantor funher understands that just because Lender consents to one or more of Grantor's requests, that does not mean Lender will be required to con.ent to any of Grantor's future requests.. Grantor waives presentment, demand for Loan No: 110072246 MORTGAGE (Continued) 000233 Page 5 payment, 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. Severllbility. 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 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 Interest or estate in the Property at any time held by or for the benefit of Lender in any capacity. without the written consent of Lender. Successors and Assigns. Subject to any limitations stated in this Mortgage on transfer of Grantor's interut. this Mortgage Shall be blndtng 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 Es.ence. Time is of the essence in the performance of this Mortgage. Waiver of HomeltHd 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. DEFINIT10NS. The following words shall have the following meanings when used in this Mortgage: Borrower. The word "Borrower" means Darren Mehler Bnd 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, fed8lal 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. 8S amended, 42 U.S.C. Section 9601, et seq. ("CERCLA "I, the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 {"SARA"I, the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery 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 Darren Mehler and Christine Mehler. 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 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, facilities, additions, replacements and otMr construction on the Real Property. Inde~esa. The word "Indebtedness" means all principal, interest, and other IImounts, colts and expenses payllble 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 eny 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 First State Bank of Pinedale, its successors and 8sslgns. 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 24,2008, in the original principal amount of $267.425,00 from Borrower 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. Parsonal 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 a/l accessions, parts, and additIons to, all replacaments 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 tha 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 Documenu" 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, whather now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues. income, issues, royaitlas. profits, and other benefits derived from the Proparty. CH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE. AND EACH GRANTOR AGREES TO ITS RMS. x~~ 11M . i'l :, . , '.;W~~J.!:NO: 1,10072246 . ! ":!f-!1."" , MORTGAGE (Continued) 00v234 Page 6 , , : I i INDIVID1AL ACKNOWLEDGMENT ~':'I . , "I· , ' .'1' . I, ~, ":;; I " 55 " .' ., " . , 'I... On' this day before me, the undersigned Notary Public, personally appeared Darren Mehler. to me known t~ be the irldividueL described in and who executed the Mortgage, and acknowledged that he 9r'she signed tr.e Mortgage as 's or her free and vOlun~ary...act and deed, for the uses and purposes therein mentioned..or . ' d Given U 8 hand and official s . is '- day:>f .20 tJð. ,\ "..f\.,\ By ~ My commission expires ::::::±~ . INDIVIDUAL ACKNOWLEDGMENT ) )SS I , , , ", ;' On this day before me, the undersigned Notary Public, personally appear'3d Christine Mehler. to me known to be'the individual described in and who executed the Mortgage. and acknowledged that he or she signed the Mortgage his or her free andvoh.intary ~ot end,d,ed. for the uses and purposes therein mentioned. d ' "~d" I Given u er y ha and offici eal this - day ~f . 20 -fLfJ.:..:-., By My commission expires LASt" PRO l.Mdin.. v.. 6.3I.IØ,(QI Co.,. H",-" htan.¡tI s........n.. 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