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HomeMy WebLinkAbout950511RECORDATION REQUESTED BY: 1st Bank Alpine 79 Highway 89 P.O. Box 3110 Alpine, VVY :131213 WHEN RECORDED MAIL TO: 1st Bank Alpine 79 Highway 89 P.O. Box 3110 Alpine, WY 83128 SEND TAX NOTICES TO: 1st Bank Alpine 79 Highway 89 P.O. Box 3110 Alpine, WY 83128 RECEIVED 11/13/2009 at 10:00 AM RECEIVING 950511 BOOK: 735 PAGE: 622 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY e SPAQE ABOVE THIS LINE IS FOR RECORDER';; USE ONLY CONSTRUCTION MORTGAGE THIS MORTGAGE dated November 9, 2009, is made and executed between MATTHEW F CAUDILL and LAURIE L CAUDILL, husband and wife, as tenants by the entireties (referred to below as "Grantor and 1st Bank, whose address is 79 Highway 89, P.O. Box 3110, Alpine, WY 83128 (referred to below as "Lender GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all of Grantor's right., title, end interest in and to the folluwirig described real property, together with all existing or subsequently erected nr affixed buildings, improvernents and fixtures; all easements, rights of way, and appurtenances; all water. water rIylits, watercourses end ditch rights (including stock in utilities with ditch or irrigation rights); and all other rIghte, royalties, and profits relating to the real property, Including without limitation all minerals, oil, gas, geothermal and shriller whetters, (the "Real Property located in LINCOLN County, State of Wyoming: LOT 2 OF TRAIL CREEK SUBDIVISION, LINCOLN COUNTY, WYOMING, AS SHOWN ON THE OFFICIAL PLAT THEREOF FILED APRIL 3, 2002 AS RECEIVING NO. 880072, IN THE OFFICE OF THE CLERK OF LINCOLN COUNTY, WYOMING, AS PLAT I�IO. 196 -F The Real Property or its address-is commonly known as TRD KARA STREET, ALPINE, WY 83128. Grantor presently assigns to Lender all of Grantor's right, title, and Interest In and to all present and suture leases of the Pmperty And all Rents from the Property, In addition, Grantor grants to Lender a Uniform Commercial Code se urIty interest in the Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT of THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY ANP ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in Lhis Mortgage, Grantor shalt pay to Lander all amounts secured by this Mortgage as they become due and shall strictly petforrn all of Grantor's oblIgatlons under this Mortgage. CONSTRUCTLON MORTGAGE. This Mortgage is a "construction mortgage" for the purposes of Sections 9 -334 and 2A -309 of the Uniform commercial Code, as those sections have been adopted by the State of Wyoming. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of rho Property shall be governed by the following provisions; Possession and Use. Until the occurrence of err Eve! of Default, Grantor may (1) remain in possession and ronlrol of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value, Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Properly, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on under, about or from the Property; (2) Grantor lies no knowledge of, or reason to believe that there has been, eecept as previously disclosed to and acknowledged by Leader In writing, (a) achy breach or vloletlon of any Environmental Laws, (b) any use, eeneratlerr, manufacture, storage, treatment, disposal, release or threatened release of any HezerdOu9 ;Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender In writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture., store, treat. dispose of or release any Hazardous Substanco on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all appllcablc federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such Inspectlorrs and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence In investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lander for indemnify or contribution In the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) egreee to Indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, panaltlos, and expenses which Lender may directly or indirectly sustain or suffer resulting from a tgeach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Properly, whether or not the lama 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 salisfacllon and reeur,vuyaIl1e of ttte Ilan of this Mortgage and shall not be affected by 1 •ender's acquisition of any interest in the Property, whether by foreclosure or othorwlso. Nuisance, Waste. Grantor shall not cause, conduct or perrnit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregolriy, Grantor will not remove. or grant to any other party the right to remove, any timber, minerals (Including oll and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of improvements. Grantor shall not demolish or remove any Impmvementa from the Real Property without Lender's prior written consent. AS a condition Lo Lhe removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to (.ender to replace such Irnpruvernents with Irnprovenients of at least equal value, Lender's Right to Enter, Lender arid Lender's agenda and representatives rnay 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 terms and conditions of title Mortgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeal°, so long as Grantor has hotlfled Lender in writing prior to doing so and so long es, in Lender's sole opinion, Lender's interests In the Pruperty arc not Jeopardized, Lender may require Grantor to post adequate security or a surety bond, reasonably sailsfactory re 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 ere reasonably necessary to protect and preserve the Iraita�l IroRi!6�8.� '�-v— Load No: 764005664 MORTGAGE (Continued) C 623 Page 2 Property. CONSTRUCTION LOAN. If some or all of the proceeds of the teat) creating the Indebtedness are to be used Lo construct or complete construction of any Improvements on the Property, the Improvements shall be completed no later than the maturity date of the Nutt (or such earlier date as Lender may reasonably establish) and Grantor shall pay in full all costs and expenses in connection with the work. Lender will disburse loan proceeds under such terms and conditions as Lender may deem reasonably necessary to Insure that the Interest created by this Mortgage shall Nava priority over all possible liens, Includlhy those of material suppliers and workman. Lender rney require, among other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of liens, construction progress reports, and such other documentation as Lender may reasonably request. TAXES AND LIENS, The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquency) all ewes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims far work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the Interest of Lender under thik Mortgage, except for those liens specifically agreed to In writing by Lender, and except for the lien of taxes and assessments not due as further spar:illed in the Right to Contest paragraph, Right to Cgnteet, Grantor may withhold payment of any tax, asseeterierrt, or claim in connection with a good faith dispute over the obligation to pay, eo long es Lender's interest in the Property Is not Jeupardlr_ad. If a lien area or is filed es a result of nonpayment, Grantor shall within fiieen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the Ilen, ar rl requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient lu dIsuharye the lien plus any costs and reeecrtable attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the Ilea. In any eohlest, Grenlor shall defend itself and Lender and shall satisfy any edveree judgment before enforcement against the Property. Grantor shall name Lender es an additional obligee under any surely bond furnished in the contest proceedings, Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written .statement of the taxes and assessments against the Property, Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials arc supplied to the Properly, H any mechanic's lien, materialmen's lien, or other lien creed be asserted on saco,ant of the work, senrlces, or materials, Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor non and will pay the cost of such improvements, PROPERTY DAMAGE INSURANCE. The follewlrg provisions relating to insuring the Properly are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the fuil insurable value covering all Improvements an the Real Property in an emount sufficient to avoid application of ahy coinsurance clause, and with a atandard mortgagee [.louse hi favor of Lender. Policies shall be written by such Insurance companies and In such forrri as may be reasonably acceptable to Leader. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of thirty (30) days' prior written notice to Lender and not containing any disclaimer of the insurer's Nobility for failure to give such notice. Each insurance policy also shall Include an endorsement providing that coverage In favor of Lender will hot be Impaired In any way by any act, omission or default of Grantor or any other person. Should the Reel Properly be located et 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 aesilable, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full iinpeid principal belence of the In and any prior liens on the property securing the loan, up to the maximum policy limits suit under the NatIonel Flood Insurance Program, or as otherwise required by l..ender, and to maintain such insurance for the term of the leery. Application of Proceeds. Grentor shall promptly notify Lender of any In er damage to the Properly if the estimated cost of repair or replacement exceeds $1,000.00. Lender may make proof of loss if Grantor fails to do so within fliteen (15) days of the casualty. Whether or not Lender's security is impaire=d, Lender may, at Lender's stealer,, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of shy Hem affcetlrig the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements 111 a manner satisfactory to Lender. Lander shall, upon satisfactory proof of such expenditure, pay or relrnburse Grarttor from the proceeds for the reasonable cost of repair or restoration if Grantor is hot In default under this Mortgage, Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall bo used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, If arty, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds [after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. LENDER'S EXPENDITURES. If Grantor fails (A) to keep the Property free or all taxes, (lens, security interests, encumbrances, and other claims, (t3) to provide any required Insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Grantor's behalf may hut is not required to, take any action that Lender believes to be appropriate to protect Lender's intereste. All expenses incurred or paid by Lerider for such purposes will them boar Interest at the rate charged under the No from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness arid. at Lender's option, will (A) be payable on demand: (B) be added to the balance of the Note and be apportioned ?morel and be payable with any installment paymahte to become clue during either (1) the term of any applicable insurance policy; er (2) the remaining tern, of the Note; or (C) be treated as a balloon payment which will be due arid payable at the Note's maturity. The Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which bender may be Retitled on account of any default, Any such action by Lender shall not be construed as curing the default so as to ber Lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE_ The following provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Properly Ih fee simple, 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 connectian with this Mortgage, and (h) Grantor has the full right, power. and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception In the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any acliuh ur 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 represehted Irr the proceeding by counsel of Lender's own choice, and Grantor will deliver, or oausa to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulatioris of governmental authorities. Survival of Promises. All promises, agreements, arid statements Grantor has made in this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing In haturo and shall remain in full force and effect until such time as Grantor's Indebtedness is paid In full, CONDEMNATION. The following provisions relating to condemnation proceedings are part of this Mortgage: Proceedings. If any proceeding in condemnation Is filed, Grantor shall promptly notify Lender In writing, and Grantor shell promptly take ouch steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party In ouch proceeding, but Leader shall be entitled to participate in the proceeding end to be represented in the proceeding by caunsel of Its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by (..ender from time to lime to permit such participatloh. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase In Ilan 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 restoretion or the Property. The net proceeds of the award shall mean the award after payment of all i�ti$VaVra_!� 4nlif~iaVr���C_ Loan No: 764005664 MORTGAGE (Continued) ra i t 24 Page 3 reespnable costs, expenses, arid attorneys' fees incurred by Lender in connection with the condemnation, IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges aro a part cif this Mortgage: current Taxes, Fees and Charges. Upon request by Larder, Grantor shell execute such documents In addition to this Mortgage and take whatever other action Is r'aqueeted by Lender to perfect and cuntihue Lender's lien on the Real Properly. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred In recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording er registering this Mortgage, Taxes. The fnlluwlhg shall constitute taxes to which this section applies; (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness Secured by this Mortgage; (2) a specific tax on Grantor which Grantor ie authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (4) a s pecific, tax on all or any portion of the Indebtedness or on payments of prihcipal and interest made by Grantor. Subsequent Taxos. If any lax to which this section applies Is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of Default, and Lender may exercise any or El II of its available remedies for an Event of Default as provided below uhleee Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax es provided above In the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security Satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agreement. This irietrumenl shell constitute et Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor serail take whatever action is requested by Lender to perfect end continue Lender's security Interest In the Nereor,al Property, In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorIzatlon Irom Grantor, file executed counterparts, melee- or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security Interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Preperty, Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and et a place reasonably convenient to Grantor and Lender And make it available to Lender within three (3) days efler receipt of written demand front Lender to the extent permitted by applicable law, Addresses. The mailing addr'essea of Grantor (debtor) and Lender (secured party) from which Iriforrnation concerning the security interest granted by this Mortgage may he obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage, FURTHER ASSURANCES; ATTORNEY -IN -FACT. The following provisions relating to further assurances and attorney -in -feet are a part of this Mortgage: Further Assurances, At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be flied, rouurded, refired, or rerecorded, as the case may be, it such limes and in such offices and places as (.,ender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing etaterneres, eontihuation statements, instruments of further assurance, certificates, and other documents as may in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continua, or preserve (1) Grantors obligations under the Note, this Mortgage, and the Related Documents, and (2) the Ilene 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 contrary In writing, Grantor shall reimburse Leader for all costs and expenses incurred in connection with the matters referred to in this paragraph. A torneylreFact If Grantor Mils lo 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 appoint (..ender ea Grantor's attomey -in -fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be neces ary or deelrable. In Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, end otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable setlefacliioh of this Mortgage and sUitable statements of termination of any financing statement on file evidencing Lender's security Interest In the Rents and the Personal leruperty. Grantor will pay, if permitted by applicable law, any reespnable termination fee as determined by Lender from time to time, EVENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Mortgage if any of the following happen: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent tiling of or to effect discharge of ahy lien. Break Other Promises, Grantor breaks any promise made to Lender or fails to perform promptly at the time and strictly in the manner provided In this Mortgage or In any agrererrwht related to this Mortgage. False Statements. Any representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any materiel respect, either now or- at the time made or furnished. Defective CollaterollzatIon. This Mortgage or any of the Related Documents ceases to be In full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Granter, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, arty assignment for the benefit of creditors, any type of creditor workout, or the cornrnencameht of any proceeding under any bankruptcy or Insolvency laws by or against Grantor. Taking of the Property, Any creditor or governmental agency tries to take any of the Property or any other of Grantor's properly in whiulr Lender has e lien, Thie inr,,ludes taking of, garnishing of or levying on Grantor's accounts with Lender. However, if Grantor disputes in geed faith whether the doin) an which the tarring of the Property Is based Is valid or reasonable, and If Grantor gives Lender written notice of the claim and furrrlshes Lender with monlas or a suroty bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Breach of Other Agreement. Any breach by Grantor under the terms of Any other ,agreement between Granter and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any Indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accanir nedatiah party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtednees. Insecurity. Lender in good faith believes itself insecure, RIGHTS AND REMEDIES ON DEFAULT. Upor, the occurrence of ail L-veht of Default and at any time therealter, Leader, al Lender's option, may exercise any one or inure of the folluwlrg rights and rernedles, Irr addition to any ether rights or remedies provldad by law: Accelerate Indebtedness. (,ender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty that Granter would be required to pay, UCC Remedies. 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 Grantor, to take posaesaion of the Property, including during the pendency of foreclosure, whether judicial or norr-Judictal, and collect the Fonts, Includlr,g enemas past due and unpaid, and apply the net proceeds over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor Irrevocably designates Lender as Grantor's attorney -in -fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the samo tnl Gals 1 MORTGAGET Loan No: 764005664 (Continued) 00;62 Page 4 and collect the proceeds, Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise Its rights under this subparagraph either in person, by agent, or through H receiver, 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 sate, and to collect the Rents front the Property and apply the proceeds-;, over and above the cost of the receivership, against the Indebtedness, The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent ,ralue or the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's Interest In all or any part of the Property. Nonjudicial Sale. Lender may foreclose Grantors Interest In all ur In any pert of the Property by non judicial sate, and specifically by "power of sale" or "advertisement and sale" foreclosure. as provided by statute. Deficiency Judgment. If permitted by applicable law, Lender may obtain a judgment for any deficiency rernalhing 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 remake. In possession of the Property after the Property is sold as provided above or Lender otherwlso beoomee entitled to possession of the Property upon default of Grantor, Granter shall become a terror t at sufferanoe of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental foe the use of the Property, or vacate the Property Immediately upon the demand of Lender, Other Remedies. Lender shall have all other rlgiits and rcrnodlrs provided in this Mortgage or the Note or available at law or in equity, Sale of the Property, To the extent permitted by applicable law, Grantor hereby walvee airy and ail right to have the Properly marshalled. In exerelslhg Its rights and remedies, Leader shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender Shat) be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender will give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the erne after which any private sete or other intended disposition cf the Personal Property le to be made, Reasonable notice shall mean notice given et least ten (10) days before the time of the Yale or disposition. Any eaIe of the Personal Pmperty may be made in conjunction with any sale of the Real Property, Election of Remedies. All of Lender's rights and remedies will he cumulative and may be exercised alone or together, An election by Lender to choose any one remedy will riot bar Lender from using arty other remedy. If Lender decides to bperrd rnaney or to perform any of Granters obligations under this Mortgage, crier Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare Grantor in default and to exercise Lender's remedies. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Leader shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action Is involved, end 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 bccorrrc a part of the Indebtedness payable on demand and shall bear Interest at the Note rate from the date of the expenditure until repaid, Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, lender's neseonable attorneys' fees and Landers legal expens whether ur not there Is a lawsuit, 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 searching records, obtaining title reports (Including foreclosure reports), surveyors' reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to ell other sums provided by law. NOTICES. Ahy melee required to be given under this Mortgage, including without limitation any notice of default and any hoticca of sale shall be given In writing, and shalt be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with is nationally recognized overnight courier, or if mailed, when deposited In the United States mail, as first orated, certified or registered mail 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 he 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 forrrral written notice to the other person or persons, epeclfying that the purpose of the notice is to change the person's address. For notice purposes, Grantor agrees to keep Lender Informed at all tlriros of Grantor's current address, Unleee otherwise provided or required by law. if there is more than ane Grantor, any notice given by Lender to any Grantor is deemed to be notice glven to all Grantors, It will he Grantor's responsibility to tell tho others of the notice from Lender. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage; amendments. What Is written in this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the matters covered by this Mortgage. 'i'e be effective, any change or amendment to thls Mortgage rnust be in writing end must be elghed by whoever will be bound or ohligated by the change or amendment, caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to Interpret or define the provisions of this Mortgage, Governing Law. This Mortgage will be governed by federal law applicable to Lender arid, to the extent not preempted by federal luw, the laws of the State of Wyoming without regard to its conflicts of law provisions. This Mortgage has been accepted by Lender In the State of Wyoming. Choice of Venue. If there Is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction or the courts of Lincoln County, stale of Wyoming. Joint and Several Liability. All obliyatlurrs of Grantor under this Mortgage shall be joint and several, and all references to Grantor shall mean each and every Granter. This means that each Grantor signing below Is responsible for all obligations in this Mortgage. No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rlghla under this Mortgage unless Lender does so in writing. The faot that Lender delays or omits to exercise any right will hot mean that Lender has given up that right. If Lender does agree in writing Lo give up one of Lender's rights, that does nut mean Grantor will not have to comply with the other provisions of this Mortgage. Grantor also understands that if Lender does consent to is request, that does not mean Chet Grantor will not have to get Lender's consent again if the situation happens again. Grantor further understands that Just because Lender consents to one or more of Grantor's requests, that does not mean Lender will be required to consent to Any of Granter's future requests. Granter waives presentment, demand for peyniertl, protest, and notice of dishonor, Grantor wolves all rights of exemption from execution or similar law in the Property, acrd Grantor agrees that the rights of Lender in the Property under this Mortgage are prior to Grantor's rights While this Mortgage remains in effect. Severability. If a court finds that any provision of this Mortgage ie net 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, is 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 Marty 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 Interest, this Mortgage shall be binding upon and inure to the benefit of the parties, their successors and eeeigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal wlih Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness. Time is of the Essence. Time Is of the essence in the performance of this Mortgage, Waiver of Homestead Exemption. Grantor hereby releases and waives ell rights and benefits of the homestead exemption laws of the State of Wyoming as to all indebtedness secured by this Mortgage, DEFINITIONS, The following words shall have the following rnear when used in this Mortgage: Borrower, The word "Borrower" rnoans MATTHEW F CAUDILI, and LAURIE L CAUDILL and includes all co- signers and co- rnekers signing the Note and all their euccessore and aeslgris. Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances I�II Ifllall^ 2 Initialas. Loan No: 764005664 relating to the protectlun of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Apt of 1980, as amended, 42 U.S.C. Section 9601, et seq. "CERCLA the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99 -499 "SARA the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq„ the Resource Conservation 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 wurds "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" tueens MATTHEW F CAUDILL arid LAURIE L CAUDILL, 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, yeherated, 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, materiels or 'waste as defined by or listed under the Environmental Laws. The terrn "Hazardous Substances" also includes, without limitation, petroleum and petroleum by- products or any fraetlun thereof and asbestos, Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, Extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses Incurred by Lender to enforce Granters obligations under this Mortgage, together with Interest on such amounts as provided in this Mortgage, Lender. The word "Lender" means 1st Bank, its successors and assigns. The words "successors or assigns" mean any person or company that acquires any Interest in the Note. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Luhder. Note, The word "Note" means the promissory note dated November 9, 2009, in the original principal amount of $250,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. Personal Property. The words "Personal Prnperty" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter altactiod or affixed la the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property, Property, The word "Properly" means collectively the Real Properly and the Personal Property, Real Property. The words "Real Property" mean the real property, Interests and rights, as further described In this Mortgage. Related Documents, The words "Related Documents" mean all promissory notes, credit agreements, Ivan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, end all other instruments, agreements and documents, whether now or hereafter existing, executed Ih connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. i •CH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PRovISIONS of THIS MORTGAGE, AND EACH GRANTOR AGREES TO 1T5 TERMS, GRANTOR: State of HEW F CAUDILL X./6,Jc, r MORTGAGE (Continued) Page 5 LAURIE L CAUDILL INDIVIDUAL ACKNOWLEDGMENT County of (A-4-4,9110 This instrument was acicnowledyod before me on H/17o e (date) by MATTHEW F CAUDILL. otarial Signatur 00O626 My commission expires; 1 /2. C a Loan No: 754005664 State of c�� r�✓�.*�� County of 1: T>✓ This instrument was acknowledged before me on s JACQUELINE JACK S'' COMM. #1625495 e G) NOTARY PUBLIC CALIFORNIA L- 1/0 LASSEN COUNTY F.04 My Comm. Expires Nov. 29, 2009 w_A SON MORTGAGE (Continued) INDIVIDUAL ACKNOWLEDGMENT i( g -G29 TR -11179 PR -13 (data) by LAURIE L CAUDILL, 000627 My commission 13 xplres: Page 6 LASER PRO Lending, Ver, 5,46.00.003 Copr. Harland Financial Solutions, Inc. 1997, 2009, All Rights Reserved. VVY L: \CFI \LPL \G03.FC