HomeMy WebLinkAbout874857 03014998
RECORDATION REQUESTED BY'.
First Bank of Idaho fsb, dba First Bank Advisors R E t.~ ~ } V t:'~ D
First Bank of Idaho fsb, dba First Bank Advisors
170 E. Broadway LIN00L..N COL/NTY CLERK
P.O. Box 12860
Jackson, wY 83002 8 7
WHEN RECORDED MAIL TO:
First Ba,k of Idaho fsb, dba First Bank Advisors d E h [~ ~"4 ~: ',,'~ ,','~, t:~ ~,J E R
First Bank of Idaho fsb, dba First Bank Advisors i,[.~l~ :~,E.R, wY0r~3~NG
170 E. Broadway
P.O.Box 12860
Jackson, ~ 83002
SEND TAX NOTICES TO: BOOK_~pR PAGE
First Bank of idaho fsb, dba First Bank Advlsors
First Bank of Idaho fsb, dba First Bank Advisors
170 E. Broadway
P.O.Box 12860
Jackson WY ~3002
SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONEY
CONSTRUCTION MORTGAGE
MAXIMUM LIEN. The lien of this Mo~gage shall not exceed at any one time $75,000.00.
THIS MORTGAGE dated July.24, 2001, is made and executed between Kevin P. Hill and Shannon R. Hill,
husband and wife, as tenants by the entireties. (referred to below as 'Grantor") and First Bank of Idaho fsb, dba
First Bank Advisors, whose address is 170 E. Broadway, P.O.Box 12860, Jackson, WY 83002 (referred to below
as "Lender").
GRANT OF MORTGAGE. For valuable considerat~on, Grantor mortgages and conveys to Lender alt of Gra~tor's right, titie, and interest in and to
the following described real property, together with ail existing or subsequently erected or affixed buildings, improvements and fixtures; all easements,
rights of way, and appudenances; alt water, water rights: watercourses and ditch dghts (~nctuding stock in ut~lit es with ditch or irrigation rights); and all
other r ghts, roya ties, and profits relating to the rea~ prope~, including without limitation ali minerals, oil gas, geothermal an~ s~mflar matters, (the
'Real.Property,) located in Lincoln County, State of Wyoming:
Lot 3, Buckskin Crossing Subdivision, Lincoln Count , Wyoming,
in the Office of the Lincoln County Clerk as Plat No. ~5. according to that plat filed August 15, 1996
The Real Property or Its address is commonly known as Lot 3 Buckskin Crossing, Etna, WY 83118. The Real
Property tax ~denfification number is 36193410003200.
Grantor presently assigns to Lender a~ of Grantor's right, title. ~nd interest in and to ail present and future ~eases of the Prope~y and all Rents from the
Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest Jn the Personal Prope~y and Rents.
THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURI~ INTEREST iN THE RENTS AND PERSONAL PROPERS, IS
GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE,
THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY
INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS ALSO GIVEN TO SECURE ANY AND ALL OF GRANTOR'S OBLIGATIONS UNDER
THAT CERTAIN CONSTRUCTION LOAN AGREEMENT BE~EEN GRANTOR AND LENDER OF EVEN DATE HEREWITH. ANY EVENT OF
DEFAULT UNDER THE CONSTRUCTION LOAN AGREEMENT, OR ANY OF THE RELATED DOCUMENTS REFERRED TO THEREIN, SHALL ALSO
BE AN EVENT OF DEFAULT UNDER THIS MORTGAGE, THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:
PAYMENT AND PERFORMANCE. Except as other[se provMed in this Mortgage, Grantor shall pay to Lender a~ amounts secured by th~s Mo~gage
as' they become due and sba strictly pedorm all of Grantor's obligations 'under this Mortgage.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Propedy sha~ be governed by the
folbw ng provisions:
~, Possession and Use: Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Properly; (2) use,
operate or manage the PropeHy; and. (3) collect the Rents from the Prope~y.
, Duty tO Ma ntaln. Grantor shall maintain the PropeHy ~n good condition and promptly pedorm all repairs, replacements, and maintenance
necessa~ to preserve its value.
Compliance Wth Environmental Laws. Grantor represents and warrants to Lender tha:: (1) During the period of Grantor's ownership of the
Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
~ Substance by any person on, under, about or from the Properly; (2) Grantor has no knowledge 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,
generation, manufacture, storage, treatment, disposa, release or
Pr0peHy by any pror owners or ~ccupants of the Property, or (b) any use,
(c) threatened release o[ any Hazardous Substance on under, about or from the
any actual or threatened I~tigafion or c aims of any kind by any person relating
to such ma~ers; and (3) Except as prevbusly disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant,
~ cootractor, agent or other authorized user of the Properly shal~ use, generate, manufacture, store, treat, dispose of or release any Hazardous
:.Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state,
and local laws, regulations and ordinances, including without limitation ali Environmental Laws. Grantor authorizes Lender and its agents to enter
upon the Property ~o make such inspections and tests; at Grantor's expense, as Lender may deem appropriate to determine compliance o~ the
' ~ P'rober~ With th s section of the Modgage. Any inspectbns or tests made by Lender sha~l be for Lender's purposes only and shall not be
construed to create any responsibi ty or ~abil~ on the ,ad of L~nder to Grantor or to any other p~rson The representatons
' ' contained herein are based on Grantor's due diligence n '~nvesti atJ .
~ wawes any future claims against Lender for ind~m 'fy n ........ ~ ..ng t~e.PropeHy for Hazardous Substances Grat r h ........ ~nd.warrant~e~
such ~L] ~. ~u~I[~IDU[IOR IR ~ ~ve~ Grantor b~cnm~- ~:~,- , ' . ~.O. -~uy tU releases ano
,, wh[ch~aws; and (2) agrees to Indemnify and hold harmless Lender against any and a~l claims, losses, I~abi~ities, damages, penalties, and expenses
........ ~ ,,~u~ [or cleanup or other costs under any
. Lender may directly or indirectly sustain or suffer resulting from a breach of this s~tion of the Modga~e or as a consequence of any use,
,: generation, manufacture, storage, d~sposal, release or threatened re;ease occurring pdor to Grantor's ownership or interest in the Property,
whether or not the same was or should have been known to Grantor. The provisions of this section of the Modgag~, including the obligation to
indemnify, sh~ll survive the payment of the indebtedness and the satisfaction and reconveyance of the lien of this Modgage and shall not be
~ ~ afl.ted by Lender's acquisition of any interest in the Prope~y, wh~ther by foreclosure or otheAvise.
' Nulsance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, p~rmit, or suffer any stripping of or waste on or to the
Pr0peHy or any poH~on of the Properly Without Imitin the e '
right to remove, any timber minerals dnclud~ .... . --~ g . g ,ne?hty of the foregoMg, Grantor w~ll not remove, or grant to any other pady the
' , ,, ,~ ~,, ~.u gash coah c~ay, scoria, so~l gravel or rock products without Lender's prior wri~en consent.
Removal of Improvements, Grantor shall not demolish or remove any Improvements from the Real Prope~ without Lender's prior wri~en
consent. As a condition to the removal o¢ any Improvements, Londer may require Grantor to m~ke arrangg~e~t~ ~atisfacto~ to Lender to replace
such Improvements with Improvements of at least equal value.
Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Properly at all reasonable times to a~end to
Lender's interests and to inspect the Real Properly for purposes of Grantor's compliance with the terms and conditions of this Modgage.
effect, of all governmental authorities applicab e to the u
Compliance wlth Governmental Requirements. Grantor shall promptly comply with a~l taws, ordinances, and regulations, now or hereafter in
ordinance, or regulation and w t . ... se or occupancy of the Pro,%ed . Grantor
writing prior to doing so and s~h°ld comphance dunng any proceeding, including appr ri~'e may contest ~n good faith any such law,
appeals, so long as Grantor has notified Lender in
long as, in Lender's sore op nion Lender's interests in the Properly are not jeopardized. Lender may require
Grantor to post adequate secud~ or a surety bond, reasonably satisfaotory to Lender. to protect Lender's interest.
Loan No: 190019687 (L.)~'~"'~ MORTGAGE
(Continued) %'~ fi ~:~ Page 2
Duty to Protect, Grantor agrees neither to abandon nor leave unattended the Property, Grantor shall do all other acts, in addition to those acts
set forth above in this section, which from the characte- and use of the Property are reasonably necessary to protect and preserve the Property,
CONSTRUCTION LOAN, If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete construction of
any Improvements on the Property, the Improvements shall be completed no later than the maturity date of the Note (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 have priority over ail
possible liens, including those of material suppliers and workmen. Lender may require, among other things, that disbursement requests be supported
by receipted bills, expense affidavits, waivers of liens, construction progress reports, and such other doc[. mentation as Lender may reasonably request.
TAXES AND LIENS, The following provisions relating to the taxes and liens on the Proeerty are part of this Mortgage:
Payment. Grantor shall pay when due fond ;- al~ events orior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges
and sewer service charges levied against or on account of the Property, and shall pay when cue al! claims for work done on or for services
rendered or material furnished tothe Property. Grantor shall maintain the Property free of any t~ens having priority over or equal to'the interest of
Lender under this Mortgage, except for those liens ~pecifically agreed to in writing by Lender. an(; exceot for the Iien of taxes and assessments not
due as further specified in the Right to Contest paragraph
Right to Contest, Grantor may withhold payment of any tax. assessment or claim 'n 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 a result of nonpayment, Grantor shall within fifteen
(15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if
requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient
to discharge the lien plus any costs and reasonable attorneys' fees, or other charges that could accrue as a 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 ~n the contest proceeo~ngs.
Evidence of Payment; Grantor shal ueon demand furnish to Lender satisfactory ewoence of payment of the taxes or assessments and shall
authorize the appropriate governmental officio' to deliver to Lende. 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 s commenced, any servtces are furnished, or any
materials are supplied to the Proper[y, if any mechanic's ien, materialmen's lien. or other lien co[. dee asserted on account of the work, services,
or materials. Grantor wil: upon request of Lender furnish to Lender advan.~e 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 Dart of this Mortgage:
Maintenance of Insurance. Grantor shall orocure and maintain policies of fire tnsu,ance with standard extended coverage endorsements on a
replacement basis for the full Insurable value covering all Improvements on the Real Prcoerty in an amount sufficient to avoid application of any
coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies and in such
form as may be reasonably acceetable 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 fifteen (15) days' prior written notice to Lender and not
containing any disclaimer of the nsurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing
that coverage in favor ef Lender wi: not be impaired q any way by any act. omission or default of Grantor or any other person. Should the Real
Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor
agrees to obtain and maintain Federal Flood Insurance, if available within 45 days after notice is given by Lender that the Properly is located in a
special flood hazard area for the full un2aid principal balance of the loan an'd any prior liens on the property securing the loan, up to the
maximum policy limits set under the Nat onal Flood Insurance Program, or as otherwise reduired Dy Lender. and to maintain such insurance for
the term Of the loan.
Application of Proceeds. Grantor shall promptly notify Lender of ar~y loss or damage to the Property, Lender may make proof of loss if Grantor
fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security s impaired Lender may, at Lender's election, receive and
retain the proceeds-of any insurance and apply the Proceeds to the reduction of the Indebtecqess payment of any lien affecting the Property, or
the restoration and repair of the Properly. If Lender elects to apply the proceeds to restorat on and repair. Grantor shall repair or replace the
damaged or destroyed improvements in a manner satisfactory to Lender. Lender shall. UDOR satisfactory proof of such expenditure, pay or
reimburse Grantor from the [~roceeds for the reasonable cost of repair or restc ration if Grantor is not in default under this Mortgage, Any proceeds
which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property
shall be used first to pay any amount owing to Lender under this Mortgage, th'eh to pay accrued interest, and the remainder, if any, shall be
app ed to the principal balance of the r~debtedness. If Lender hold~ any proceeds after payment r~ full of the Indebtedness, such proceeds shall
be paid to Grantor as Grantor's interests may appear.
U.rmxpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of. dna pass to. the purchaser of the Property covered by this
Mortgage at any trustee's sale or other sale held under the provisions of this Modgage, or at any foreclosure sale of such Property.
LENDER'S EXPENDITURES. If Grantor fails fA) to keep the Proper-o/free of all taxes, liens security interests, encumbrances, and other claims, (Bi
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, but is not required to, take any action
that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear interest
at the rate charged under the Note from tne date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part
of the Indebtedness and, at Lender's option, will fA) be payable on demand; (Bi be added to the balance of the Note and be apportioned among
and be payable with any Installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term
of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Modgage also will secure payment of
these amounts, The rights provided for in this paragraoh shall be in addition to any other rights or any remedies to which Lender may be entitled on
account of any default. Any such action by Lender shall not be construed as curing the default so as to par Lender from any remedy that it otherwise
woud' have had.
WARRANTY; DEFENSE OF TITLE. The following provisions relating to owners~ p of the ProDer~y are a cart of this Mortgage:
Title, Grantor warrants that: fa) Grantor holds good and marketable title of record to the Property ~n fee simple, free and clear of all liens and
encumbrances other than those set forth in the Real Property descriotion or 'q any title insurance policy, title report, or final title opinion issued in
favor of, and accepted by, Lender in connection with this Mortgage, and (b Grantor has the ful right, power, and authority to execute and deliver
this Mortgage to Lender.
Defense of Title. Subject to the exception in the paragraph above Grantor warfares and wi~ forever defend the title to the Property against the
lawful claims of all persons. In the evem any action or proceeding is commenced that euestions Grantor s title or the interest of Lender under this
Mortgage, Grantor shall defend the action at Grantor's ex3ense. Grantor may be the nomroa party ~r~ such proceeding, but Lender shall be
entitled to Participate i~- the proceeding one to be reuresen{ed in the oroceeding by counse of Lender's own choice, and Grantor will deliver, or
cause to be delivered, to Lender such ~nstruments as Lender may request from time to time to oermit such oarticipation.
COmPliance With Laws. Grantor warrants tI~at the Prooerty and Grantor's use of the Property complies with all existing applicalSle laws,
ordinances and regulations of governmental authorities.
Survival of Promises. All promises, agreements anc statements Grantor nas made ,- this Mortgage shall survive the execution and delivery of
this Mortgage, shall be continuing . nature and sna, remain q fei force and effect unt~I sucn time as Grantors Indebtedness is paid in full.
CONDEMNATION. The follow]qg provisions relating to condemnation proceedings are a eart of this Mortgage:
Proceedings, If any proceeding in condemnatior is filed. Grantor sha~ prompw notify Lender in writing, and Grantor shall promptly take such
steps as may be necessary to defend the action and obtain the awar~ Grantor may ce the nominal party r~ Such proceeding, but Lender shall be
entitled to participate In the proceedin§ ano to oe represented in the ~roceeding by counsel of its own choice, and Grantor will deliver or cause to
be del vered to Lender such instruments and documentat on as may De requested 3y Lender from time to time to permit such participation,
Appllcation of Net Proceeds. If all or any 0art of the Property is condemr ed by eminent domain proceedings or by any proceeding or purchase
in lieu of condemnation. Lender may at its eiectior' redu~re that al or any nor[ion of the net proceeds of the award be applied to the Indebtedness
or the repair or restoration.of the Prooerty. The net orooeeds of the award shall mean the award after payment of all reasonable costs, expenses,
and attorneys' fees incurred by Lender in connection with the conoe~qatfon.
IMPOSITION OF TAXES FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following 2rovisior~s relating to governmental taxes, fees
Loan No: 190019687 O~7~,~'~ MORTGAGE
(Continued) ' 3'9~' Page3
and charges are a part of this Mortgage:
Current Taxes~ Fees and Charges, Upon request by Lender, Grantor shall execute such documents in addition to tbs Mortgage and take
w~atever other action IS requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for
faxes, as described below, together with all expenses incurred n recording, perfecting or continuing this Mortgaae, inc udlng 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 ail or any Dart of
the Indebtedness secured by this Mortgage; f2) a specific tax on Grantor which Grantor is authorized or require<; to deduct from. payments on
the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage cnargeable against the Lender or the holder el the Note;
and (4) a specific tax on al or any oortion of the Indebtedness or on payments of princtpa and interest made by Grantor.
Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same
effect as an Event of Default, and Lender may exercise any or all of its available remedies for am Event of Default as provided below unless Grantor
either (1) pays the tax before it becomes delinauent, or (2) contests the tax as provided above in the Taxes and Liens section anc~ deoosits 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 Dart of thls
Mortgage:
Security Agreement, This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall
have all of the rights of a secured party under the Uniform Commercia~ Code as amended from time to time.
Security Interest, Upon request by Lender Grantor shal execute financing statements and take whatever other 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 rea properly records, Lender
may, at any time and without Iurther authorization from Grantor, file executed counterparts, copies or reDroductions 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 Properly. Upon default. Grantor shall assemble any Personal Property not affixed to
the Property in a manner and at a place reasonably convenient to Grantor ant Lender and make it availab e to Lender within three (3) days after
receipt of written demand from Lender to the extent permitted by applicable law.
Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information cor~ceming the security interest
granted by this Mortgage may be obtained (each as reduired 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-fact are a Dart of this
Mortgage:
Further Assurances. At any time, and from time to time, upon request of Lender Grantor will make execute and deriver, or will cause to be
r~ade, executed dr delivered, to Lender or to Lender's designee, and when requested by Lender. cause to be filed, recorded, refiled or
rerecorded, as the case may be. at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages,
deeds of trust, security deeds, security agreements, financing statements continuation statements, instruments of further assurance, certificates.
and other documents as may, ~n the sole opinion of Lender. be necessary or desirable in order to effectuate, complete, perfect, continue, or
preserve (1) Grantor's obligations under the Note. this Mortgage, and the Related Documents, and (2) the liens and secunty 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 Lender for all costs and expenses incurred ,1 connection with the matters referred to in
this paragraph.
Attorney-In-Fact. If Grantor fairs to do any of the things referred to in the preceding paragraph, Lender may do so for and In the name of Grantor
and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the ouroose of
a~co~plmaking' sheXecut ng,the mattersdeliveringreferred filing,to In thereC°rding'precedingandparagraph.d°ing all other things as may be necessary or desirable, in Lender's sole opinion, to
FULL PERFORMANOE. If Grantor pays all the Indebtedness when due, and otherwise oerforms all the obligations imposed uoon Grantor under this
Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing
statement on file evidencing Lender's security interest in the Rents and the Personal Properly. Grantor will pay, if permitted Dy aoolicable raw. any
reasonable termination fee as determineo Dy l'ender 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 Dy this Mortgage to make any paymertt for taxes or insurance, or any
other payment necessary to prevent filing of or to effect discharge of any lien.
Break Other Promises. Grantor creaks any promise made to Lender or fails to perform prometty at the time and strictly in the manner erovided in
this Mortgage or n any agreement re ated to this Mortgage
Default In Favor of Third Parties. Should Grantor default under any Joan, extension of credit, security agreement, our:chase or sales agreement,
Or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's eroperty o~' Grantor's ability to repay the
Indebtedness or Grantor's ability to perform Grantor's obligations under th s Mortgage or any related document.
FalseStatemer~ts, 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 material respect, either now or at the t~me made or furnishea.
Defective Collaterallzation, This Mortgage or any of the Related Documents ceases Id be in fu 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 Grantor the insolvency of Grantor, the appointment of a receive- for any part of Grantor's property, any
assignment for the cenefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency
laws by or aga nst Grantor,
Taking of the Property, Any creditor or governmental agency tries to take any of the Property or any other of Grantor's ~)roperty in which Lender
has 'a lien. This includes ta~;rng of, garnishing of or levying on Grantor's accounts with Lender. However, if Grantor disputes n good faith whether
the Claim on which the taking of the Property is based is valid or reasonable, and =' Grantor gives Lender written notice of the claim and furnishes
Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply.
Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied
Lender,Within anYwhethergrace existingperi°d providednow or later.therein' including without limitatio- any agreement concerning any indebtedness or other obligation of Grantor ~o
Events Affecting Guarantor. Any of the Preceding events occurs with respect to any guarantor enaorser, surety, or accommodador- party of any
of the Indebtedness or any guarantor, endorser, surety, or accommodatic,~ party dies or becomes incompetent or revokes or d sputes the validity
of, 0~ liability Under, any Guaranty of the Indebtedness, In the event of a death, Lende, .
guarantor s estate to r at ts option may but shall not be re u~re
: ' ' assume unconditionally the obli~ ..... ; ....under" ' -. ' ., q ' d to, permit the
any Event of Default. ~,=L,U,,~ ~ '(ne guaranty ~n a manner satisfactory to Lender. and. in doing so, cure
Insecurity. Lender in good faith believes itself insecure.
Right to Cure. If such a failure is curable and ;¢ Grantor has not been given a notice of a breach of the same provision of this Mortgage within the
preceding twelve (12) months. ~t may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends written notice
demanding cure of such failure: fa) cures the failure with~ fiftee~ (15) days; or (b) ' the cure requires more than fifteef- (15) days, Immedlat64y
inltlates StePS sufficient to cure the failure and thereafter continues and completes all reasonab e and necessary steps sufficient to produce
compliance as soon as reasonably practical
RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may
exercise any one or more of the following rights and remedies, in addition to any other r~ghts or remedies provided by law:
Accelerate Indebtedness, Lender shall have the right at it option without notice to Grantor to declare the entire indebtedness immediately due '
and payable, including any 9repayment penalty which Granto- wouk~ be required ~o pay.
UCC Remedies. With respect to all or a~qy part of the Personal Property, Lender shal' have all the rights and remedies of a secure~ Dairy under
the'Uniform Commercial Code.
'~7 MORTGAGE
Loan No:~ 1900196870~7~z~C3
(Continued) 3 ~ ~ Page 4
Collect'Rents. Lender shall have the right, without notice to Grantor, to take possession of the Prooerty, including during the pendency of
foreclosure, whether iudicial or non- udc a 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
3ayments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's
attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds,
Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are mace,
whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraoh either in person, by agent, or
through a receiver.
Appoint ReCeiver, Lender shall have the right to have a receiver appointed to take possession of all or any cart 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 receivership, against the Indebtedness. The receiver may serve without bond if cermitted 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 Dy Lender shall not disqualify a oerson from serv qg as a receiver.
Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any 2art of the Property.
Nonjudicial Sale. Lender ~nay foreclose Grantor's interest in all or in any cart of the Property by non-,udicial sale, and specifically by "power of
sale" or "advertisement anc sale" foreclosure as provided by statute.
. Deficiency Judgment. ~f permitted by aoolicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to
Lender after application of all amounts received from the exercise of the rights provided ,- this section.
Tenancy at Sufferance. If Grantc, rema ns in possession of the. Property after the Property is sold as provided above or Lender otherwise
becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser
of the Prooerty and shall, at Lender's ootion, either (1) pay a reasonable rental for the use of tile Property, or (2) vacate the Property
mmediately uoon the demand of Lender.
Other Remedies. Lender shall have a other rights and remedies orovided in this Mortgage or the Note or available at law or in equity.
Sale of the Property, To the extent permitted by. aeBlicable law, Grantor hereby waives any and all right to have the Property marshalled. In
exercising its rights aha remedies. Lender shall be free to sell all or any part of the Properly together or separately, ~-' one sale or by separate
's'ales.' Lender shall be entitled to bid at any DUDIIO sale on all or any oortion of the Property.
Notice of Sale. Lender wil g ve Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after
Wt~ich any private sa e or other intended disposition of the Persona; Property s to be made. Reasonable notice shall mean notice given at least
tbd (t0) days before the t me of the sale or disposition.
Election of Remedies. Ali of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election oy Lender to
Choose any one remedy will not bar Lender from using any other remedy, If Lender decides to spend money or to 3erform any of Grantor's
obligations under this Mortgage, after Grantor's failure to Od so. that decision by Lender will not affec~ 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 Modgage, Lender she; 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, and
tothe 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 "~ghts shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate
from the date of the exoenditure until reDaic Exoenses covered by this paragraph include, without limitation, however subject to any limits under
applicable laW, Lender's reasonable attorneys' fees and Lender's legal expenses whether or 3ct 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 reoods (including foreclosure reports), surveyors'
otherrep°rts'andsums providedappraisalbyfeeSlaw.and tit~e insurance, to the extent permitted Dy applicable aw. Grantor a,so will pay any court costs, in addition to all
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 wilting, and sha be effective wnen actually de vered when actually rece ved by te efacsim e (unless otherwise required by law), when deposited
with a nationally recognized overnight courier, or. if mailed, when deposited in the United States mail as first class, 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 hol:~er 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 t'o the other person or persons specifying that the purpose of the notice is to
change the e
r~ rson s address. For notice ourooses, Grantor agrees to keep Lender informed at all t~mes of Grantor's current address, Unless otherw'se
provided or required by aw if there s more than one Grantor, any notice g ven by Lender to any Grantor is deemed to be notice g~ven to all Grantors.
It will be Gra'nto~"S responsibi ty to tell the others of the not ce from Lender.
CONSTRUCTIONS DRAWS AND INSPECTIONS. The borrower(s) herein acknowledge that any draws/advances on the line shall be made upon the
receipt end review of all bills and nspect on of ~)roperty pr or to any advances. Borrowerfs) is aware that the lender or lender's agent may, at lender's
optio~, insp'ect the subject property during the construction term and any cost for same shall be paid by borrower(s).
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage:
A~endments, 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. To be effective, any change or amendment to this Mortgage must be in writing and must be signed by whoever will be
oound Or obligated 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
provislons of this Mortgage.
Governing Law. This Mortgage will be governed by and Interpreted In accordance with federal law and the laws of the State of Wyoming.
This Mortgage has been accepted by Lender In the State of Wyoming.
Joint and Several Liability, All obligations of Grantor under this Mortgage shall be joint and severa and all references to Grantor shall mean
each and every Grantor. This means that each Grantor signing below is responsible for al obligations ~ th~s Mortgage.
No Waiver by Lender, Grantor understands Lender will not give up any of Lender's rights under this Mortgage unless Lender does so in writing.
The fact that Lender delays or omits to exercise any right will not mean that Lender has grven uo that right, if Lender does agree in writing to give
up;one of Lender's rights, that does not meal Grantor will not have to comply with the othe' orovisions of this Mortgage, Grantor also
understands that if Lender does consent to a reouest, that (ices not mean that 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 Grantor's future requests. Grantor waives Dresentnnent demand for payment, protest, and notice of dishonor,
Grantor waives all rights of exemotion from execution- or simi ar aw '~ the Prooerty (includir~g without limitation, the homestead exemption), and
Grantor agrees that the rights of Lender in the Prooerty under this Modgage are or,or to Grantor's rights while this Mortgage remains ~n effect.
oS~Verablllty. If a court f nds that any provision of this Mortgage is not valic or should not De enforced, that fact by itself wilt not mean that the rest
this Mortgage w not be valid or enforced Therefore. a court will enforce the resl
Mortgace rr{a~; be found to be invalid or unenforceable, of the provisions of this Mortgage even if a DrOvision of this
Merger,' There shall be no merger of the ir~terest or estate created Dy this Mortgage with any other ~nterest or estate in the Property at any time
[~ed by or for the benefit of Lender ,~ any caoacity, without the written consent of Lender.
Successors and Assigns. Subject to any limitations stated in th s Mortgage on transfer of Grantor's interest this Mortgage shall be binding UPOn
and inure to the benefit of the parties their successors and assigns, rf ownership of the Property becomes vested in a person other than Grantor
Lender, without notice to Grantor may deal with Grar~tor's successors with referer]oe [o this Mortgage and tne Indebtedness by way of
forbearance or extenslor without re~easing Grantor from the obligations of this Mortgage or liability under the Indebtedness.
Time Is of the Essence. Time is of the essence . the [:erformance of this Mortgage,
Waiver of Homestead Exemption. Grantor hereby releases and waives a r,g~'s and benefits of the homestead exemotion laws of the State of
Wyoming as to all Indebtedness secure(] by this Mortgage,
DEFINITIONS. The following words shall nave the follow~r~g meanings wnen used in this Mortgage:
Loan No: 19001968'~"~57 MORTGAGE
(Continued) 3 ~) 6 Page 5
Borrower, The word "Borrower" means Kevin P. Hill and Shannon R. Hill. and all other persons aha entities signing the Note.
Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to
the protection of human health or tne environment, including without limitation the Comprehensive Envkonmental Response, Compensation, and
Liability Act of 1980, as amended. 42 U.S.O, Section 9601, et seq. ("CERCLA"), the Sueerfund Amendments and"~authorization Act of 1986, Pub.
L No. 99-499 ("SARA"), the Hazardous Materials Transportation Act. 49 U.S.C. Section 1801 et seq., the Re~'~ur~e Conservation and Recovery
Act, 42 U.S.C. Section 6901. at seq., or other applicable state or federal ~aws. rules, or regulations adopted pursuant thereto.
Event of Default, The words "Event of Default" mean any of the events of default set forth in this Mortgage in the events of default section of this
Mortgage.
Grantor, The word "Grantor" means Kevin P. Hill anc Shannon R. Hill.
Guaranty; The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without
imitat on a gua'ranty of alt or part of the Note.,
Hazardous Substances, The words "Hazardous Substances" mean mate rials that. because of their quantity, concentration or physical, chemical
or Infectious characteristics, may cause or pose a present or potential hazard to humar- health or the environment when improperly used, treated,
stored, disposed of, generated, manufactured, transported or otherwise nandlec The words "Hazardous Substances" are used in their very
broadest sense and include without limitation any and all hazardous or toxic suPstances, materiars or waste as defined by or listed under the
Environmental Laws. The term "Hazardous Substances" also includes, without imitation, petroleum and petroleum by-products or any fraction
thereof and asbestos.
Improvements. The word 'improvements" means all existing and. future ~mprovements. 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 Dnnc]pal, 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 advancec by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's
obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage.
Lender, The wore "Lender" means First Bank of idaho feb. dba First Bank Advisors ~rs 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 Modgage between Grantor and Lender.
Note. The word "Note" means the promissory note dated July 24, 2001, in the original principal amount of $75,000.00 from Grantor
to Lender, together with a renewals of extensions of, modifications of, refinancings of, consolidations of. and substitutions for the promissory note
or agreement. The maturity date of this Modgage is July 24, 2002.
Personal Property, The wores "Persona[ Property" mean all eau~pment, fixtures, and other artic es of personal property now or hereafter owned
by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions carts, and additions to, all replacements of,
and all substitutions for any of such proper[y; an~ 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 "Property" means collectively the Real Proeer[y and the Personal Properly.
Real Property..The words 'Real Property" mean the real property, interests and rights, as further described in this Mortgage.
Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness,
Rents; The word "Rents" means a~ present and future rents, revenues, income, issues, royalties, profits, and other benefits dedved from the
Property,
EACH' GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE. AND EACH GRANTOR AGREES TO ITS
TERMS.
GRANTOR:
..... =__ ,/
Kevln P. Hill, indi~ld'uaii~; ,, ,, . . ::::i:.ili ::;;i: ,~:; ,,iL,., ~.
=harmon R. Hill, Individually
INDIVIDUAL ACKNOWLEDGMENT
COUNTY OF ) SS
On this d~y before me, the undersigned Notary Pubhc ersonall a ) ~,~
descrbe~:in and who executed the ~ .......... ti , p, . y ppeared Kevin P, H ahd _ -
..~ ~.;.~ ......... ~v~u~t9~gu anu acKnow eeged that they sinne~ ~ M~ ...... ':~ ........... ' ~e known to be the ndw~dua s
~.u pu~puSes therein mentioned, ¢-/~., . u ~ t~M~,,u~u~ ~u ,heir free and voluma~ act and deed, for the uses
Glve~.,¢~ ~and and off c, seal this ~~ - . d- ) /'
'. ' ' - .... - :-- "~.._ Hesldlng at~~.~Sc(/ ~20c,/
Notary Public In and ,o, the State of /~.'z ¢~7_ _ My commission ~~.¢