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HomeMy WebLinkAbout944548 RECORDATION REQUESTED BY: FI..t Inta..tata Bank Jackson Main aranch 842 Waat Broadway P. O. Box 11095 Jackson, WY 83002-1095 . .I~I\I~~-- IJwd lìtle _C9mpðn~ SINCE 1904 WHEN RECORDED MAIL TO: FI..t Interetata Bank Jackeon Main B..nch 842 Waal Broadway P. O. Box 11095 Jackeon,WY 83002-1095 00ú557 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY fJ. F'nlWler5Cafe Bark MORTGAGE MAXIMUM LIEN. The lien of this Mortgage shall not exceed at anyone time $47,500.00. THIS MORTGAGE dated January 2, 2009, Is made and executed between David Ruthanlt and Valerie Ruthann, husband and wife, whose address Is 370 Vista East Drive, Star Valley Ranch, WY 83127 (referred to below as "Grantor") and First Interstate Bank, whose address Is 842 West Broadway, P. O. Box 11095, Jackson, WY 83002-1095 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuabla consideration, Grantor mortgages and convays 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, watercourses and ditch rights (Including stock In utilities with ditch or irrigation rights); and all other rights" royalties, and profits relating to the real property, Includlnll without limitation all minerals, 011, gas, geothermal and similar mattera, (the Real Property") located In Lincoln County, State Of Wyoming: Lot 129 of Star Valley Ranch Plat 6(, Lincoln County, wyoming as described on the official plat filed June 7, 1971 as Instrument No. 431710 of t e records of the Lincoln County Clerk The Real Property or Its address Is commonly known as 370 Vista East Drive, Star Valley Ranch, WY 83127. REVOLVING UNE OF CREDIT. this Mortgage s.cures the Ind.bt.dn.ss Including, without limitation, a r.volvlng IIn. of credit, which obllgat.s L.nd.r to make .dvances to Borrower so long as Borrower compllss with all the t.rms of the Credit Agre.m.nl Such adv.nces may b. mad., repaid, and remade from tlm. to tlm., subJ.ct to the limitation that the totsl outatandlng balanc. owing at any on. time, not Including finance charg.s on such balsnc. at a flx.d or vsriabls rate or sum as provldad In the Credit Agreement, any t.mporary ov.rag.s, oth.r charges, and any amounts .xp.nd.d or advanc.d as provld.d In .Ith.r the Indsbt.dn.ss pe..graph or this paragraph, shall not .xceed the Credit Umlt as provld.d In the Credit Agreem.nl It Is the Intention of Grantor and Lend.r that this Mortgage secures the balanc. outstanding und.r the Credit Agre.m.nt from tlm. to tlm. from z.ro up to the Credit Limit as provld.d In the Cr.dlt Agr..m.nt and any Interm.dlat. b.l.nce. Grantor presentiy assigns to Lender all of Grantor's right, title, and interest In and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security Interest in the Personal Property end Rents, THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF EACH OF GRANTOR'S AGREEMENTS AND OBUGATlONS UNDER THE CREDIT AGREEMENT, THE RELATEO DOCUMENTS, ANO THIS MORTGAGE, THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: GRANTOR'S WAIVERS. Grentor waives all rights or defenses arising by reason of any "one action" or "anti-deficiency" law, or any other law which may prevent Lender from bringing any action against Granlor, including a claim for deficiency to the extent Lender Is otherwise entitled to a claim for deficiency, before or after Lender's commencement or completion of any forecloaure action, either Judicially or by exercise of a power of sale. GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warTSnts that: (a) this Mortgage Is executed at Borrower's request and not at the request of Lender; (b) Grantor has the full power, right, and authority to enter Into this Mortgage and to hypothecate the Property; (ç) the provisions of this Mortgaga do not conflict with, or result in a default under any agreement or other instrument binding upon Grantor and do not result In a violation of any law, regulation, court decree or order applicable to Grantor; (d) Grantor has established adequate means of obtaining from Borrower on a continuing basis information about Borrower's financial condition; and (e) Lender has made no representation to Grantor about Borrower (Including without limitation the creditworthiness of Borrower). PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Borrower shall pay to Lender elllndebledness secured by this Mortgage as It becomes due, and Borrower and Grantor shall slr1ct1y perform all Borrower's and Grentor's obligations under this Mortgage, POSSESSION AND MAINTENANCE OF THE PROPERTY. Borrower and Grantor agree that Borrower's and Grantor's possession and use of the Property shall be governed by the following provisions: Pos.esslon and Use. Until the occurrence of an Event of Default, Grantor may (1) remain In possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Renls from the Property, Duty to Maintain. Grantor shall melntain the Property in good condition and promptly perform all repairs, replacements, and maintenance necessary to preserve Its value. Compliance With Envlronm.ntal Lews. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, th.... has been no use, generation, manufacture, storage. treatment, dlsposel, release or threatened releese of any Hazardous Substance by any person on. under. about or from the Property; (2) Grantor has no knowtedge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender In writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage. treatment, disposal, release or threatened release of any.Hazardous Substance on, under, about or from the Property by any prior ownera or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowtadged by Lender In writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property ~hall use, generate, manufacture, store, treat, dlspoae of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted In compliance with all applicable federal, stele. and local laws, regulations and ordinances, Inciudlng without limitation all Environmental Laws. Grantor authorizes Lender and Its agents to enter upon the Property to make such Inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any Inspections or tests mede by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the pert of Lender to Grantor or to. any other person, The representations and warranties contained hareln are baaed on Grantor's due diligence In Investigating the Property for Hazardous Substances. Grantor hereby (1) releases and welves any future claims against Lender for Indemnity or conlr1butlon In the event Grantor becomes Iiabla for . cleanup or other costs under any euch laws; and (2) agrees to indemnify, defend, and hold harmless Lender against any and all cialms, losses, liabilities, damages, penalties, and expenses which lender may directly or Indirectly suataln or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storege, disposal, release or threatened release occurring prior to Grantor's ownerahlp or Interest In the Property, whether or not the aama was or should ·f ~. ~ 0::: w :! a:: w « ,... :! to It) 0::: :! N CO It) W W Ö -.::t Wz~ ..... It) - ; øø~ C\J «~o::: 0) en a.. w 0 0 W-l t::! : : : z U 00 ø Zç -. ..... z L5 z ~ N C .... J ::> W w ,... 0 >U ~ u -W 0 z Wa:: (.) 0 -I ID 0 W U a::: Z ::J 1hf..I''' Ii ~H I J. MORTGAGE (Continued) Page 2 ; Ha~" . . .0 to ·~f ~.fp~vions of this section of the Mortgage. Including the obligation to Indemnify and defend, shall survive ^00558.' the paym.ent. of e In lS~e~' ~~. satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's V ¡ a~fI.IoIt'~~ltI"J'I!'t th rty, whether by foreclosure or otherwise. '" .' "Nuß.'n3.~. cfrlinto haJt..aot.cause: conduct or pennlt any nuisance nor commit, pennlt, or suffer any stripping of or waste on or to . l the Property o. any portion of the Property. Without limiting the generellty of the foregoing, Grantor will not remove, or grant to any other 'Pa.J:IY.!!1,e, right ttr rilm.W&'Apy timber, minerals (Including oil and gas), coal, clay, scoria, soli, grevel or rock products without Lender's prior written êohsëht:' ..\r·..··~'-_.._' ..-.." . . Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent As a condition to the removal of any Improvements. Lender may require Grantor to maka arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. ·1Á.~J&~;·Rlght to Enter. Lender and Lender's egents and reprasentatives may enter upon the Real Property at all reasonable times to attend to Lender's Interests and to Inspect the Real Property for purposes of Grantor's compliance with the tenns and conditions of this Mortgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances. end 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 Grentor 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 acts, In addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender mey, at Lender's option, declare Immediately due and payable ell 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 'sele or transfer" meens the conveyance of Resl 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 tenn greater than three (3) years, lease-opt!on contract, or by sale, assignment, or transfer of any beneflclel 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 exercised by Lender If such exercise Is prohibited by federal law or by Wyoming law. ¡TAXES AND LIENS, The following provisions relating to the taxes and liens on the Property ere part of this Mortgage: I Payment Grantor shall pay when due (and In all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer sarvlce charges levied against or on account of the Property. and shall pay when due ell claims for work done on or for services rendered or material furnished to the Property, Grantor shall maintain the Property free of any liens heving priority over or equal to the Interest of Lender under this Mortgage, except for the Existing Indebledness referred to In this Mortgage or those liens specifically agreed to In writing by Lender, and except for the lien of taxes and assessments not due as further specified In the Right to Contest paragraph. Right to Contesl Grantor may withhold payment of any tax, assassment, or claim In connection with a good faith dispute over the obligation to pay, so long as Lender's Interest In the Property Is not jeopardized. If a lien arises or Is filed as s result of nonpayment, Grantor shall within fifteen (15) days efter the lien arises or, If a lien Is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or If requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender In an amount sufficient to discharge the lien plus any costs and reasonable attomeys' 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 Judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished In the contest proceedings. Evidence of PsymsnL Grantor shell upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shal/ authorize the appropriete governmental official to deliver to Lender et eny time a written statement of the taxes and assessments egelnst 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 lien could be asserted on account of the work, services, or materials and the cost exceeds $3,000.00, Grantor will upon request of Lender fumlsh to Lender edvance assurances satisfactory to Lender that Grantor can and will pay the cost of such Improvements, PROPERTY DAMAGE INSURANCE. The following provisions relating to Insuring the Property are a part of this Mortgage: Malntanance of Inauranca. 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 sufflclant to avoid application of any coinsurance clause, and with a standard mortgagee clause In favor of Lender. Policies shall be written by such Insurance companies and In such fonn as may be reasonably acceptable to Lender, Grantor shall deliver to Lender certificates of coverage from each Insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days' prior WlÍttan notice to Lender and not containing eny disclaimer of the Insurer's liability for failure to give such notice, Each Insurance policy also shall Include an endorsement providing that coverage In favor of Lender will not be Impaired in any way by any act, omission or default of Granlor or any other person. Should the Real Property be located In an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area. Grantor agrees to obtain and maintain Federal Flood Insurance. If available. for the maximum amount of Borrower's credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such Insurance for the tann of the loan. Application of Procaeds. Grantor shall promptly notify Lender of any loss or damage to the Property If the estimated coat of repair or replacement exceeds $3,000.00. Lender may make proof of loss If Grantor falls to do so within fifteen (15) days of the cesualty. Whethar or not Lender's security Is Impaired, Lender may, at Lender's election, receive and retain the proceeds of any Insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration end 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 shail, upon satisfactory proof of such expenditure, payor reimburse Grantor from the proceeds for the reasonable cost of repair or restoration If Grantor Is not In default under this Mortgage, MY proceeds which heve not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued Interest, and the remainder, If any, shall be applied to tha principal belance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's Interests may appear. Compliance with Existing Indebtedness. During the period In which any existing Indebtedness dascrlbed below Is In effect, compliance with the Insurance provisions contained In the instrument evidencing such Existing Indebtedness shall constitute compliance with the Insurance provisions under this Mortgage, to the extent compliance with the tanns of this Mortgage would constitute a duplication of Insurance requirement. If any proceeds from the Insurance become payable on loss, the provisions In this Mortgage for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the existing Indebtedness. TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable law, Lender may require Grantor to maintain with Lender reserveS for payment of annual taxes, assessments, and insurance premiums, which reserves shall be created by advsncepayment or monthly payments of a sum estimated by Lender to be sufficient to produce, amounts at least equal to the taxes, assessments, and Insurance premiums to be paid. The reserve funds shall be held by Lender as s general deposit from Grantor, which Lender may satisfy by payment of the taxes, assessments, and Insurance premiums required to be paid by Grantor as they become due. Lender shall have the right to draw upon the reserve funds to pay such Items, and Lender shall not be required to detennlne the validity or accuracy of any Item before peylng It. Nothing in the Mortgage shall be cons!rued as requiring Lender to advance other monies for such purposes, and Lender shall not Incur any liability for anything It may do or omit to do with respect to the reserve account. Subject to any limitations set by applicable law, If the reserve funds disclose s shortage or deficiency. Grantor shall pay such shortage or deflclency as required by Lender. All amounts In the reserve account are hereby pledged to further secure the Indebtedness, and Lender Is hereby authorized to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shail not be required to pay any interest or eamlngs on the reserve funds unless required by law or agreed to by Lender In writing. Lender does not hold the reserve funds in !rust for Grantor, and Lender Is not Grantor's agent for payment of the MORTGAGE (Continued) !, ~. Page 3 taxes and assessments required to be paid by Grantor. LENDER'S EXPENDrrURES. If Grantor falls (A) to keep the Property free of all taxes, . liens, security Interests, encumbrances, and other clelms,. " (8) to provide any required Insurance on the Property. (C) to make repairs to the Property or to comply with any obligation to maintain Existing ('. 0 .n. 5 5 9 Indebtedness In good standing as required below, then Lender may do so. If any action or proceeding Is commenced that would meterially '1;...' V effect Lender'a Interests In the Property, then Lender on Grantor's behalf may. but is not required to. take any action that Lender believes to be appropriate to protect Lender's Interests. All expenses IncurTed or paid by Lender for such purposes will then bear Intarest at the rete charged under the Credit Agreement from the dete incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtadness and. at Lender's option, will (A) be payable on demand: (B) be edded to the balence of the Credit Agreement and be apportioned among and be payable with any Installment peyments to become due during either (1) the term of any applicable Insurance policy; or (2) the remaining term of the Credit Agreement; or (C) be treated es a balloon payment which will be due and payable at the Credit Agreement's maturity. The Mortgage also will secure payment of these amounts. The righta provided for In this paragraph shall be In addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be constroed as curing the default so as to bar Lander from any ramedy that it otherwise would have had, WARRANTY; DEFENSE OF mLE. The following provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor WSrTants that: (a) Grantor holds good and marketabie title of record to the Property In fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or In any tltie Insurance policy. tllle report, or final title opinion Issued In favor of, and accepted by, Lender In connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defens. of Title, Subject to the exception In the paragraph above, Grantor warrants and will forever defend the title to the Property egainst the lawful claims of all persons. In the event any action or proceeding Is commenced that questions Grentor'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 Instroments as Lendar may request from time to time to permit such partlcipellon, Compliance With Laws. Grantor warTants that the Property and Grantor's USe of the Property complies with all existing applicable laws, ordinances. and regulations of govemmental authorities, . Survival of Promises, All promises, agreements, and statements Grantor has made In this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing In nature and shall remain In full force and effect until such time as BOrTower's Indebtedness Is paid In full, EXISTING INDEBTEDNESS. The following provisions concemlng Existing Indebtedness are a part of this Mortgage: J:xlstlng Uen. The lien of this Mortgage securing the Indebtedness may be secondary and Inferior to an existing lien. Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such Indebtedness. any default under the Instroments evidencing such Indebtedness, or any default under any security documents for such Indebtedness. No Modlllcatlon. Grantor shell not enter Into any agraement with the holder of any mortgage. deed of trust, or other security agraement which has priority over this Mortgage by which that agreement Is modified, amended, extended, or renewed without the prior written consent of Lender. Grantor shall neither request nor accept any future advances under eny such security agreement without the prior written consent of Lender. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Procesdings. If any proceeding In condemnation Is flied, Granlor 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. Grentor may be the nominal party In such proceeding, but Lender shell be entitied 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 partlc;ipation. Application of Net Proceed.. If ail or any part of the Property Is condemned by eminent domain proceedings or by any proceeding or purchase In lieu of condemnation, Lender may at Jts election require that all or any portion of the net proceeds of the awerd be applied to the Indebtedness or the repeir or restoration of the Property. The net proceeds of the award shall meen the award after payment of all reasonable costs, expenses, and attomeys' fees IncurTed by Lender In connection with the condemnation. IMPOSITION DF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and cherges are a part of this Mortgage: Current Taxes, Fee. and Chargee. Upon request by Lender, Grantor shall execute such documents In addition to this Mortgage and take whatever other action Is requested by Lender to perfect and continue Lender's lien on the Real Property, Grantor shall reimburse Lender for all texes, es described below, together with all expenses Incurred In recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Borrower which Borrower Is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgege chargeabie against the Lender or the holder of the Credit Agreement; and (4) a specific tax on ail or any portion of the Indebtedness or on payments of principal and Interest mede by Borrower, 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 Defeult, and Lender may exercise any or ell of Its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before It becomes delinquent, or (2) contests the tax as provided above In the Taxes and Uens section and deposits with Lender cash or a sufficient corporate surety bond or other security satlsfectory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agrvement. This Instrument shall constitute e Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as emended from time to time, Security Interest. Upon request by Lender, Grantor shall take whatever action Is requested by Lender to perfect and continue Lender's security Interest in the Personal Property, In addition to recording this Mortgage In the real property records, Lender may, at any time and without further authorizetlon from Grantor, file executed counterperts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expense·s IncurTed 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 shell assemble any Personal Property not affixed to the Property In a manner and at a place reasonebly convenient to Grantor and Lender and make It available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addres.es. 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) ere as stated on the first page of this Mortgage, FURTHER ASSURANCES; ATTORNEY~N·FACT. The following provisions relating to further assurances and attorney-In-fact are a part of this Mortgage: Further Assurances. At any time, end from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee. and when requested by Lender, cause to be filed, recorded, reflled, or rerecorded, as the caSe may be, at such times and In such offices and places as Lender may deem appropriate, any and ail such mortgages, deeds of trust, security deeds. security agreements, financing stetements, contlnuetlon statements, Instruments of further essurance, certificates, and other documents as may, In the sole opinion of Lender. be necessary or desirable In order to effectuate, complete, perfect, continue, or preserve (1) BOrTower's and Grantor's obllgetions under the Credit Agreement, this Mortgage, and the Related Documents, and (2) the liens and security Interests created by this Mortgage on the Property, whether now owned or hereefter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary In writing, Grantor shall reimburse Lender for all costs and expenses Incurred In connection with the matters referTed to In this peragraph. OOii56û MORTGAGE (Continued) Page 4 Attorney-in-Fact. If Grantor falls to do any of the things referred to In the pracedlng 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 attomey,ln-fact for the purpose of making, executing, delivering. filing, recording, and doing all other things as may be necessary or desirable, In lender's sole opinion, to accomplish the matters referred to In the preceding paragraph. FUll PERFORMANCE. If Borrower and Grantor pay all the Indabtedness whan due, terminates the credit line account, and Grantor otherwise performs all the obligations Imposed upon Grantor under this Mortgage, lender shall execute and deliver 10 Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any Ilnanclng statement on Ille evidencing lender's security Interest In the Rents and the Personal Property, Grantor will pay, If permitted by applicable law, any reasonable termination fee as determined by lender from time to time. EVENTS OF DEFAULT. Grantor will be In default under this Mortgage If any of the following happen: (A) Grantor commits fraud or makes a material misrepresentation at any time in connection with the Credit Agreement. This can Include, for example, a false statement about Borrower's or Grantor's Income, assets, liabilities, or any other aspects of Borrower's ,or Grantor's financial condition, (B) Borrower does not meet the repayment terms of the Credit Agreement. (C) Grantor's action or Inaction adversely affects the collateral or lender's rlghta In the collateral. This can Include, for example, failure to maintain required Insurance, waste or destructive use of the dwelling, failure to pey taxes, death of all persons liable on the account, transfer of title or salel of the dwelling, creation of a senior lien on the dwelling without lender's permission, foraclosura by the holder of another lien, or the use of funds or the dwelling for prohibited purposes. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default end at any time therealter but subject to any limitation In the Credit Agreement or any limitation In this Mortgage, lender, at lender's option, may exercise anyone or more of the following rights and remedies, In addition to any other rights or remedies provided by law: I Accelerate Indsbtedness. lender shall have the right at its option without notice to Borrower gr Grantor to declara the entire Indebtedness Immediately due and payable, Including any prepaymant penalty that Borrower would be required to pay, UCC Remedies. With respect to all or any part of the Personal Property, ~ender shall have all the rights and remedies of a secured party under the Uniform Commercial Cods. ' Collect Rents. lender shall have the right, without notice to Borrower or 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 endorsa Instruments recel,ved in payment thereof in the name of Granlor and to negotiate the same end 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 damand existed. lendar may exercise Its rights under this subparagraph either In person, by agent, or through a receiver, I Appoint Receiver. lender shall have the right to have a receiver appointed, to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preCeding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivers~lp, against the Indebtedness, The receiver may serve without bond If permitted by law, lender's right to the appointment of a receiver, shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by lender ~hall not disqualify a person from serving as a receiver. Judicial Foreclosure. lender may obtain a judicial decree foreciosing Grantor's Interest in all or any part of the Property. NonJudlclsl Sala. lender may foreclose Grentor's Interest In all or In any pa~ of the Property by non-judicial sale, and specifically by "power of sale' or "advertisement and sale" foreclosure as provided by statute. ! Deficiency Judgment If permitted by applicable law, lander may obtain a Judgment for any dellciancy remaining In the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains In possesslQ/1 of the Property after the Property is sold 88 provided above or lender otherwise becomes entitled to possession of the Property upon default of Borrower or Grantor, Grantor shall become a tenant at sufferance of lender or the purchaser of the Property and shall, at lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property Immediately upon the demand of lender. Other Remedies. lender shall have all other rights and remedies provided In this Mortgage or the Credit Agreement or available at law or In equity, Sal. of the Property. To the extent permitted by applicable law, Borrower and Grantor hereby waive any and all right to have the Property marshallad. In exercising its rights and remedies, Lendar shall be free 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 will give Grantor reesonable notice of the time and place of any public sale of tha Þersonal Property or of the time aner which any private sale or other Intended disposition of the Personal Property Is to be made. Reasonable notice shall mean notice given at least ten (10) deys before the time of the sale or disposition. Any sale of the Personal Property may be made In conjunction with any sale of the Real Property. Election of Remedies. All of lender's rights and remedies will be cumulative and may be exercised alone or together. An election by lender to choose anyone ramedy will not bar Lender from using any other remedy, If lender decides to spend money or to perform any of Grantor's obligations under this Mortgage, alter Grantor's failure to do so, that decision by lender will not affect lender's right to declare Grantor in default and to exercise lender's remedies. Altorneys' Fees; Expenses. If lender Institutes any suit or action to enforce any of the terms of this Mortgage, lander shall be entitled to recover such sum as the court may adjudge reasonable as attomeys' fees at trial and upon any appeal. Whether or not any court action Is involved, and to the extent not prohibited by law, all reasonable axpenses 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 demend and shall bear Interest at the Credit Agreemant rate from the date of the expenditure until repaid. Expenses covered by this paragreph include, without limitation, however subject to any limits under applicable law, lender's reasonable aUomeys' fees and lender's legal expenses whether or not there Is a lawsuit, including reasonable attorneys' fees alter default and referral to an attomey not lender's salaried employee and expenses for bankruptcy proceedings (Including efforts to modify or vacate any automatic stay or Injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (Including foreclosure reports), surveyors' reports, and appraisal fees and title Insurance, to the extent permitted by applicable lew, Grantor also will pay any court costs, In addition to all other sums provided by law. . NOTICES. Any notice required to be given under this Mortgage, Including without limitation any notice of default and any notice of sale shall be given In writing, and shall be effective when actually delivered, when actually received by telefacslmlle (unless otherwise required by law), when depoaited with a nationelly recognized ovemlght courier. or, If mailed. when deposited In the United Statas mall, as Ilrst ciass, certified or raglstered mall postage prepaid, directed to the addresses shown near the beginning of this Mortgage, All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to lender's address, as shown near the beginning of this Mortgage. Any person may change his or her address for notices under this Mortgage by giving formal written notice to the other person or persons. specifying that the purpose of the notice Is to change the person's address. For notice purposes, Grantor agrees to keep lender Informed at all times of Grentor's current address. Unless otherwise provided or required by law, If there la more than one Grantor, any notice given by lender to any Grantor is deemed to be notice given to all Grantors. It will be Grantor's responsibility to tell the others of the notice from lender. MISCELLANEOUS PROVISIONS. The following mlscellanaous provisions are a part of this Mortgage: Amendments. What Is written In this Mortgage and in the Ralated Documents Is Grantor's enUre agreement with lender conceming the matters covered by this Mortgage. To be effective, any change or amendment to this Mortgage must be In writing and must be signed by whoever will be bound or obligated by the change or amendment Caption Headings. Caption headings In this Mortgage are for convenience purposes only and ere not to be used to interpret or dellne the provisions of this Mortgage. Governing law. this Mortgage will be governed by fede..1 law appllcsble to Lender and, to the extent not preempted by fede..1 law, the laws of the Stete of Wyoming without regard to Its conflicts of law provisions. this Mortgage has been accepted by Lender In the State of Wyoming. Joint and Several Liability. All obligations of Borrower and Grantor under this Mortgage shell be joint and several, and all references to MORTGAGe (Continued) 'fw'VV~O;.L Page 5 Grantor shall mean each and every Grantor, and all references to Borrower shall mean each and every Borrower. This means that aach Grantor signing belqw is responsible for all obligations in this Mortgage. . No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under this Mortgege unless Lender does so In writing. The fact that Lender deleys or omits to exercise any right will not mean that Lender has given up thet right. If Lendar does egree In writing to give up ona of Lender's rights, that does not meen Grantor will not heve to comply with the other provisions of this Mortgege. Grantor also understands that if Lender does consent to a request, that doas not mean that Grentor will not hava to get Lender's consent again If the situation heppens again. Grantor further understands that Just because Lender consents to one or more of Grantor's requests, that does not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presentment, demand for 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 remelns In effect. Severability, If a court finds that any provision of this Mortgage Is not valid or should not be enforced, that fact by Itself will not mean that the rest of this Mortgsge will not be valid or enforced. Therefore, s court will enforce the rest of the provisions of this Mortgage even if a provision of this Mortgage may be found to be Invalid or 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 tlma 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 Interest, this Mortgage shall be binding upon and Inure to tha benefit of the parties, their successors and assigns. If ownership of tha Property becomas vested In a person other than Grantor, Lender, without notice to Grantor, may daal with Grantor's successors with reference to thia 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. DEFINITIONS. Tha following words shall hava the following meanings when used in this Mortgage: Borrower. Tha word "Borrower" maans David E. Ruthardt and Valerie H. Ruthardt and includes all co-signers and co-makars signing the Credit Agreement and all their successors and assigns. Credit AlLreemenL The words "Credit Agreement" mean the credit agreement dsted January 2, 2009, with credit limit of $47,500.00 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. The maturity date of this Mortgage Is January 2, 2019, NOTICE TO GRANTOR: THE CREDIT AGREEMENT CONTAINS A VARIABLE INTEREST RATE, Environm.ntal Laws. The words "Environmental Laws" mean any snd ell state, federal and local statutes, ragulatlons .nd ordinances relating to the protection of human health or the environment, Including without limitation the Comprehensive Envtronmental Response, Compensation, and Lieblllty Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. Ç'CERCLA'), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Haz.rdous Materials Transportetlon Act, 49 U.S,C. S.ctlon 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal lews, rules, or regulations adopted pursuant thereto, Ev.nt of D.fault. The words "Event of Default" mean any of the events of default set forth In this Mortgage In the events of defeult section of this Mortgage. Exi.tlng Ind.bt.dn.... The words "Existing Indebtadness' mean the indebtedness described In the Existing Uens provision of this Mortgage. G..ntor. The word "Grantor" means Devid Rutherdt and Valerie Ruthardt. Hazardous Substances. The words "Hazerdous Substances" mean materi.ls that, because of their quantity, concentration or physical, chemical or Infectious characteristics, may cause or pose S 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 end all hazardous or toxic substences, materials or waste as defined by or Ii.ted under the Environmental Laws, The tenn "Hazardous Substances' also includes, without limitation, petroleum and petroleum by-products or any fraction thereof snd asbestos. Improv.mente. The word "Improvements" means all existing and Mura Improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Reel Property. Ind.btedn.... The word "Indebtedness" means all principal, Interest, and other amounts, costs and expenses psyable under the Credit Agreement or Relaled Documents, together with all renewals of, extensions of, modifications of, consolidations of snd substitutions for the Credit Agraement or Related Docum.nts and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses Incurred by Lender to enforce Grantor's obligations under this Mortgage. together with Intarast on such amounts as provided In this Mortgege. L.nd.r. The word "Lender" means First Interstate Bank. Its successors and assigns. The words "successors or assigns" mean any person or company that acquires any Interest In the Credit Agreement. Mortgage. Th. word "Mortgage" means this Mortgage between Grantor and Lander. P...onal Prop.rty. The words "Personal Property' mean all equipment, fixtures. and othar articles of personal property now or hereafter owned by Grantor, and now or heresfter 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 ell insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. R.sl Property. The words "Real Property" mean the reel property, interests and rights. as further described In this Mortgege. R.lat.d Documenta. The words "Releted Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds. collateral mortgeges, and all other Instruments, agreements and documents, whether now or hereafter existing, executed In connection with the Indebtedness. Rente. Th. word "Rents" means all present end future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. GRANTOR: xil~ Ed4p/eCl x~f~ alerl. Ruthardt MORTGAGE (Continued) INDIVIDUAL ACKNOWLEDGMENT State oÅ.. \...\~ County of \".0 \-C:'''ì. This Instrument was acknowledged before me on \ - J.. - 1) c¡ (date) by David Ruthanlt and Valarle Ruthanlt. (~ ~í~3 ~ ~ -.. \"') .~,,_.~. (~ ~~r (Notarial Signature) My comm PATTI B. PAliERSON . NOTARY PUBUC County or Stall or Teton WyomInG My Commission expires June 7. 2012 Page 6 LASER PRO Lending, Ver, 5.41.00.004 Copr. Harland Financial Solutions, Inc. 1997, 2009. All Rights Reserved. - WY K:ICFIILPLIG03.FC TR-45073 PR-673 00&562