HomeMy WebLinkAbout959186RECORDATION REQUESTED BY:
Commerce Bank m Wyoming, branch wwobraska*a
National Bank
/urs Dewar Drive, Suite 1oo
PO Box 3000
Rock Springs, wp 52e0
WHEN RECORDED MAIL TO;
Commerce Bank m Wyoming, branch wm"br°sk^Lew
National Bank
e7so"war o**. yuite/no
po Box oono
Rock Springs, w, 8.29D1
SEND TAX NOTIGES 70:
Commerce Ban* mw,wnuy branch ww"*"k"mnd
Nationmflank
1575 Dewar Drive. Suite mv
PO Box 3000
RECEIVED 5/5/2011 at 2:47 PM
RECEIVING 959186
BOOK: 766 PAGE: 370
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
000370
ap' ABOVE xmuwEm FOR RECORDER'S USE ONLY
CONSTRUCTION MORTGAGE
THIS MORTGAGE dated May 5, 201r.ismade and executed botween Sierra Homes Construction, nc whose
address is 470 N 2450 uv Tremvnm", UT 84341/ A Utah Corporation (referred to below as "Grantor") and
Commerce Bank of Wyoming, a branch of NebraskaLand National Bank, whose address is 1575 Dewar Drive, Suite
,00.po Box unVw. Rock Springs, wr 132901 (referred 10 below as 'Lender.
GRANT OF M0RTQAGE For valuable consideration, Grantor ,w conveys to Lender art wm right, tete, aryl 16 end to
the following described real property, together vvith all existing or subsequently erected or affixed buildings, improvements end fixtures; all
easements, rights of wey, and appurtenances; al water, water rights, watercourses and ditch rights (including stock in utilities with catch or
irrigation rights); and all other rights, royalties, and profits relating to the real properly, including without. limitation all minerals, ol, gaS.
geothermal and similar matters, (the "Real Property") located in Lincoln County, State of Wyoming;
ALL IN 4 OF THE A RIDGE SUBDIVISION, PHASE 1 AUGUST `o 2007
AS DOCUMENT NO. 32o59./mTws� l
OFFICE CLERK, LINCOLN COUNf� RECORDED 10,
The Real Property its address is cornmonly known 214 Hams Fork orive, Kemmerer, WY $3101. The Real
Property tax udentificatlon number is 12'2116'1+3'00-014.00.
In addition the Nom this Mortgage secures all Obligations, debts and liabilities, plus interest thereon, ot
Grantor to Lender, or any one or mons of them, Its well as all claims by Lender against Grantor or any one or more ot them, whether now
existing or hereafter arising, whether related or imrelated to the purpose of the Note. whether voluntary or otherwise, whether due or not due,
direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidatad, whether' Grantor may be liable Indrvidually or
jointly with others, whether oblIgered es guarantor, surely, accommodation party or otherwise, and whether recovery upon such artiountS may
be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may
Grantor presently assigns to Lender all of Grantor' future leases of the Property *wall Runts
from the Property, /"mditian. Grantor grants w Lender Uniform Commercial Coda security Interest the Personal Property and Rents,
FUTURE ADVANCES. In addition the Note, this Mortgage ll future advances made */Lender w Grantor whether or not the
advances aro made pursuant to a comnetment. Specifically, without emotion, this Mortgage secures, addition to the amounts specified
/o, Note, all future amounts Lender in its w=,mm" may form to Grantor, together with all interest thereon.
THIS MORTGAGE, INCLUCdNG THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS
GIVEN TO SECURE (Ai PAYMENT OF THE INDEBTEDNESS AND (8) F'ERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE,
THE RELATED DOCUMENTS. AND THIS MORTGAGE. THIS momruAas. TNCI.UDINT3 ThE ASSIGNMENT OF RENTS AND THE SECURITY
INTEREST IN THE RENT AND PERSONAL PROPERTY, IS ALSO GIVEN TO SECURE ANY AND ALt. 01' GRANTOR'S OBUGAT(ONS UNOER
THAT CERTAIN CONSTRUCTION LOAN AGREEMENT BETWEEN GRANTOR AND LENDER or EVEN DATE HEREWITH. ANY EVENT OF
DEFAULT UNDER THE CONSTRUCTION LOAN AGREEMENT, OR ANY OF THE RELATED DOCUMENTS REFERRED TO THEREIN, SHALL ALSO
88 AN EVENT 01' DEFAULT UNDER THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLIOWING TERMS:
PAYMENT AND PERFORMANCE. Except as provided in this Mortgage, Grantor shall pay w Lender all amounts secured by this
Mortgage as they become due and shall strictly perform all m Grantor's obligations under this Mortgage.
CONSTRUCTION MORTGAGE. This Mortgage le a "construction for the purposes m meeuv"o 9434 and 2A'30w"/ Uniform
Commercial Code, as'hott* sections have been adopted the State mWyoming.
POSSESSION AND MAINTENANCE 01' THE PR0PERfl'. Grantor agrees that Grantor's possession and "ee* the Property shell governed *v
the following provisions:
Possession and Use. Until the occurrence Event oi Default. Grantor may nI rerm+/" p^,"03,w" and control the p=~"
uS" ope*tem manage the Property; and 131 comet `he floo (ram t Property.
Duty *Maintain, Grantor shall maintain Properly ."terui"mww condition and promptly ow*"" all repairs, ,o**c".°°.'",and
maintenance necessary *preserve rts value,
Complancit °,thEnvironmental L o Ili During Grantor s ownership of
the Property, there bee been no use, generation. manufacture, storage, treatment, disposal, release or threatened release of any Hazardoua
Substance by any parson on, under, about Or from the Property: (2) Grantor has no knowledge oi, Or reasOn to believe that there has
been. exCept au previeuely disclosed to and acknowledged by Lender in writing, (a) any breacn or violation of any Environmental LawS,
any uso, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under,
about Or frem the Property by any prtor owners Or occupant$ of the PrOperty, or le) any actual or threatened litigation or Claims of any
kind by any perrion relating to such matterc and Mt Except as previously discloned to and acknowledged by Lender M writing, te) neither
Grantor nor any tenant, contractor, agent or Other authorized user of the Property shall use, generate, menufeeture, store, treat, dispose of
or release any Hazardous Substance on. under, about or from the Property; end (b) any such activity shalt be conducted in compliance
with all opplicable federal, state, and local laws, regulations and ordinances, including without linetation all Environmental Laws. Grantor
authorizes Leeder and ite agents to enter upon the PropertY lo Make suet) inspections end tests, at Grantor's expense, as Lender may deem
appropriate to determine compliance of the Proprerty with thls seotion Of the Mortgage. Aey inspections or tests made by Lender shall ha
for Lender'S purposes only and shah not be construed to create any responsibility or liability on tha part, of Lender to Grantor or to any other
person, The representations and werrenties contained herein are based on Grantor's due difigance in investigating the Property for
Hazardoue Svbetances. Grantor hereby (11 releases and waives any future cbsims against Lender for indenenity or contribution in tbe
event Grantor becomes liable for cleanup or other costs under any such taws; and (21 agrees to indemnify, defend, and hold harmless
Lander against any and all claims. losses. liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustaie or
suffer resulting from a breach of this section of the Mortgage or as consequence ot any use, generation, manufacture, storage. dispottal,
releaee or threatened release occurring prior to Grantor's ownership or interest in (he Property, whether or not. the same WeS shwa
have been known to Grantor. The provisions of this eeetion of the aeortgage, including the obligation to indemnify end defend. shad survive
the payment of the indebtedness and the satisfaction and reconveyance of the lien of tMs Mortgage and shall not be affected by Lender's
acquisition ol any interest in the Property. whether by foreclosure or otherwise,
Nuisance, Waste. Grantor shall not cause, conduct n, permit any nuisance nor commit, permit, suffer arty stripping "`p' waste
the Property or any ""mon of the Property. Without limiting the wen"*x,,* the foregoing, Grantor will not remove, or grant m any other
Loan No: 60826
MORTGAGE
(Continued)
Page 2
party the right to remove, any timber, minerals (including oil and gee), coat, clay, scone, soil, grovel °rock products weheut Lender's error
written cortsent.
Removal of Improvements. Grantor trivet not demolish or remove any Improvements from the Real Property _mw/Le"de,'" poor mince
consent. xm" condition m the removal of any Improvements, Lewitt( may require Grantor w"uf^ arrangements satisfactory m Lender m
replace such Improvements with Improvements m/a` feint wwm/value.
lendeatt Right to Enter. Lender and Lender's agents and mow"en'"'ive" may enter the Real Property at WI reasonable theme to attend
m Lender's interests and 'v inspect the Reel Property for purposes Grantor's compliance with the terms and condemns w this w"
Compliance with Governmental Requirements. Grantor sheet promptly ""°v/, with "x laws, ordinances, and regulations, now ~hereafter
in effect, of all governmental authorities mvplicam",* the uso w^,"wpa**a the prom,* including without limitation, the Amer/ca""
With Disabilities Act. Grantor may contest momm faith any such *w, ordinance, or =ou*'*n and withhold compliance owing any
proceeding, Including appropriate appeals, long Grantor has notified Lender a°/,°o prior mclo*o"" and long as, ."Lender's
sole opinion, «,er^,`"." the Property are not jeopardized, Lender may requite Grantor m poet adequate security oro surety bond.
reasonably sewu"*ry= Lander, to protect Lender's interest.
Duty °Protect. Grantor agrees neither m abandon n, leave unattended the Property. Grantor shall 'm all other acts, m addition mthose
eels u, forth above /n this m"t^*. which from the character and use w the Property are reasonably "w^ wry to protect and preserve the
Properly.
CONSTRUCTION LOAN. n of the
construction ot any Improvements on the Property, the Improvements shall be completed no later than the maturity date of the Note (or such
earlier date as Londer may reasonably establish) and Gramor shell pay M lull coste and expenses in connection with the work. Lender will
disburse loan proceeds under such terma and conditions as Lender may deem reasonably necestary to inewe that the inteeest created by this
MOrtgage shalt have priority over all pOssibie liens, including those Of meted& 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, ancl sech other
docomentation as lender may reasonably request.
DUE nn SALE CONSENT a,LENDER. Lender may, o^ Lender's option, declare immediately due and payable all sums secured o, this
Mortgage upon the sale Oro*ne*r, without Lene,'* prior written *On^o'.**ow any part o the Reel Property, oro"' interest M the Real
roop^°, x 'sale transfer' means the conveyance m nvwpm ty or tiny right, «.w or intermit M th R /p whether legal, be /ic//
Of equitable; whether voluntary or involunory; whether by outright sale, dead, installment sale contract, land contract, contract for demi.
leant:hold interest with a term greeter than three (3) years, leasempeon contract, or by sato, assignment, or transfer of any beneficial interest in
tO »ny land trust heeling title to the Real Propony, or by any other method of conveyance of an interest in the final Property, If any Grantor ts
a corporation, pi:mashie or limited liability company, transfer also Includes any change in ownership or more than twentwrive percent (25%i of
the voting stock. pertnership intettests or limited liability company interests, as the case may be, of such Grentof. However, thie option eftail not
be exercised by Lender if such exereise is prohibited by federal law or by Wyoming law,
TAXES AND LIENS. The /pmow."o provisions ,.latmv*m" twee and liana ""the Property are part "f tree Mortgage;
Payment. s,w. or pay events prior to delinquency, wt*wpan*'ta special taxes, assessments, water
chargee and sewer service charges /vied against of on account of the Property, and "hao pay when due all claims for work tio," or tor
services rendered material furnished Property. Grantor shall maintain the Property meem any liens m= over equal
the interest u Lender under this Mortgage, except for those liens specifically agreed m/" writing ov Lender, and except for the fie"n'taxes
and ""se"="".° not due as further specified the Right to Contest paragraph.
Right Content. Grantor may withhold payment of any m° m°m or claw in con "w" with w«".m faith dispute over the
obligation to pay, so long as Leeder's interest in the Property et net jeopardized. If a lien arises or is feed as e result of nonpayment.
Grantor shall within fifteen 115) days after the lice arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing,
secure the discharge of the Nen, or it requested by Lender. depoeit with Lender cash or a sufficient corporate surety bond or Other Security
satisfactory tO Lender in an amount suffieient to discharge the lien plus any coats and reaeonable attorneys' fees, or other cherges that
could accrue as a result of a foreclosun, or sale under the lien. In any conteet, Grantor shall defend Itself and Lender and shall satisfy :my
adverse judgment before enforcement against the Property. Grantor shaft name Londe/ as an additional obligee under any surety bond
furnished M the contest proceedings.
Evidence wPayment, Grantor shall upon demand /vrnio*w Lender satisfactory evidence payment m the taxes assessments aryl shall
authorize the appropriate govem=m*o/ official w deliver Lender any time written statement the taxes and "p^""m=m°main"'
the Propene.
Notice "fConstruction. Grantor shall notify Lender least fifteen '1wdays be/vma^,"w*tsvwmvnc^o.u"vwe"msmmrur"s^"^
any materials are supplied ,v the Property, u=,m"cho~"'olien.mr'".*,=°,^w".mmw*`*""°uldo""`se*=o
serviette, n,materials, Grantor will upon request m Lender ruttish m Lender advance assura"m.easw*ctory* Lender that Grantor
can and will pay the cost v/ such /mp^~ww*".
PROPERTY DAMAGE INSURANCE. The following provisions relating w insuring the Property part this Mortgage;
Maintenance ofinsurance. Grantor shall procure and maintain policies "/lire insurance with standard extended coverage endorsements
a replacement basis for the full insurable value coveting ell wr"ve=,*v"" the Real Property w= amount sufficient w avoid "n*i""io"
of any "x"sera~e *o",^ and With °=elam mortgagee rw"^" in m.or of Lender. Grantor also procure ^"o °"m`"/"
co"pmo*nsi. e general liability »""m"wmouch coverage amounts p° Lender may request with Lender »°."n named "o additional *,°"d"
in ouch liability Insurance policies, Additionally. Grantor shall mn*`w" such other insurance, including but not limited w hazard, u"""w""
interruption
reasonably w" to Lender; Grantor Wall deliver to Lend mnw°, of *ove from each stipulation thet
e,ovetwee will not be cancelled or diminished without a minimutn of ten (101 days' prior written notice to Lender and not containing any
disclelmer of the insurer's liabiety for lellure to give such notice. Each insurance policy also shall inelude an endorsement providing that
coverage ie favor of Lender will not be impaired M any way by any act, omission of defauft Grantor or any other person. Should the Real
Property be located in an area designated by the Director of the Federal Emergency Menagement Agency as e special ffotel hazard area.
Grantor agrees to obtain and maintain Federal Flood Insurance, if availeble, for the full unpaid' principal balance ol the loan aruf eny prior
liens on the properly securing the Man. up to the maximum policy limits set under the National Flood Insurartee Program, or as otherwese
required by Lancler, and to maintain such insurance for the term of the loan.
Application aProceeds. Grego: shall promptly notify Lender v/ any lose damage the Property. ten may m4110 proof w Mee
Grantor mils .p*,m within fifteen no) days of the Whether Lender's se=,/*." /mp"/"m, m"*^, may, al Lender's
election, receive and retain the pmeeede el eny Insurance and apply the proceeds to the reduction of the Indebtedness, of any lien
atteorine the Property, or the restoration and repair of the Property, If Lendor elects to apply the proceeds to restoration and repair, Grantor
stall repair or' reelect) the damaged or deetroyed Improvements in a manner satistactory to Lender. lender shall, upon :satisfactory proof 01
such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restaratioe if Granite is not M default
under this Mortgage. Any proceeds which have not been disburaed witnin 180 days after their receipt And which Leerier hes not
oornmetel to the repair or restoretion of the Property shaft be used first to pay any amount owing to Lender under this Mortgage, then to
pay accrued interest. anti the remainder, if any, shall tee applied to the principal balance al the Indebtefiness. If Lender holds any proceede
after payment in full of the Indebtedrieree, such proceeds shall be paid to Grantor as Gontoes interests may appear,
Grantor's Report on Insurance. Upon request of Lender, however not more than once year, Grantor shalt /"°ie^* Lender report
each ^p/eri" policy m insurance showing: n` the name the insurer; (2) the ^ek, insured; (3/ the amvon,m the policy; /^)the
property insured. w"then current replacement vol=of property, end 1110 nsonnor et determining ch", value; and m/ the expiration
date *fthe Grantor shall, upon request m Lender, ^"va"" independent appraiser satisfactory m Lender determine the cash value
,°*mte"en' cost of the Property,
LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest trs the Preperiy or if Grantor
faits to comply with any provision of this Mortgage or any Related Documents, including but not beefed to Grantor's failure to discharge or pay
when du* any amounts Grantor is required to diecherge or pay under thee Mortgage or any Related Doeuments, Lender on Grantor's belief( may
(hte shall not tea obligated to) Tao any action that Lender deems appropriate, including but not limited to discharging or paying al) taxes. liens,
security intermits. eneumbranees and other claims, et any time levied or placed on the Properly and peying all coats for ineuring, maintainino and
preserving the Property, All Such expenditures ineurred of paid by Lender ler such purposes Will then bear interest at the rate charged under the
Note from the data incurred or paid by Lender to the date of repayment by Grantor, Alt such expenses wfll become a part of the Indebtedneee
Loan No: 60826
K0Qn /w°vE
(Continued)
000372
Page 3
arid, at Lender's opti°°wfAl be =yabi" bc payebte
with any installment payments to become due during either (1) the term of any applicable insurance policy; or {21 the remaining term of Me
Note; or v+ be treated asaballoon payment wmch will be due and payable at "*Note'e rnaturity. The Mortgage oleo wit) secure payment of
these amounts, Such right than m,Maddition to all other and remedies w which Lender may b° entitled upon Default.
WARRANTY: DEFENSE OF TITIE. The following provisions relating m ownership of the Property w part v' this Mortgage:
Tit*. Grantor warrants that: w Grantor ho od And *°,^,*m" ,me"/record m the Property fee simple), free anti ","o Ilene
and encumbrances other than those set forth a the Real Property description or any oele insurance policy, title report, o, final title opinion
issued in favor of, ^no*=^ptem Lender connection with this Mortgage, and (b) o,emo, flee the full right, pow". and authority to
"`°c"* and deliver this Mortgage mLender.
Defense of Title. Subject to tile exception M the paragraph above Property
the lawful claims of atl perscins. In the event any action or proceeding is commenced that questions Grantor's title or the intereet of Lender
under this Mortgage, Grantor shall defend the ection ei Grantor's expense, Grantor may be the nominal party in such proceeding, but
Lenear shall be entitled to participate in the proceeding and to be represehted in the proceeding by counsel of Lender's own choice, and
Grantor will deliver, or cause to be deliveree, ro Lender such instruments as tender may requeet from tree to 6111C permit such
Compliance With Laws. Grantor warrants that the p~=x, and Grantor's use m the Property =m,xo"with all mesv"napplicable /",e.
^m*"~ce^ and tenul° w"wvmw,"""nt"/^"*n*a^,
Survival of Representations and Warranties. All representations, ~o,""""". and agreements made by u,=^" in Mortgage shall
survive the execution and delivery this worw^°. shell be continuing m""'"= shall remain m lull force and Oleo until term al:
Grantor's Indebtedness "/°ube paid ulull.
CONDEMNATION. The lollowi"o provisions */wino'" condemnation proceedings ate part v' this Mortgage:
Proceedings, It any proceeding m condemnation filed, Grantor shalt promptly notify Lender .~w°n and Grantor shall promptly take
such *"sv* may be necessary .w defend the action and obtain the award. Grantor may the nominal party such proceeding, but
Lender shall bm emitted m participate the proceeding and wbe represented *,w proceeding counsel u/ its own choice, and Grantor
will deliver of w"Se rp delivered to Lend* ,w*)nwmm^wm and documentation as May be requested w Lender from time to '*le to
permit such participation.
Application of Net Proceeds. If all or eny part of the Property condemned by eminent o="ain proc.eedings or by any proceeding or
purchase M lieu Of condemnation, Lender may at its election require that on or any portion of the net proceedamthe award be appfieo to
the Indebtedness *,m~ repair or restoration of the Proper',. The net proceeds of the a°°rdv»e!/ mean the award otter payment all
reasonable costs. expenses, and attorneys' lees incurred o, Lender in connection with the condemnation.
lMPOSITON OF TAXS. FF AND CHAGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
tees and charges are o part m this Mortgage:
Current Taxes, Fees and Charges. "t by Lender, Grantor ehall execute such documents in /o° to this Mortgage and take
whateve,*ww amion is u by Lender to perfect and continue L°o*m's lien the Real Properly, Grantor shall reimburse Lender for
all taxes, wdescribed below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without
limitation 311 taxes, fees, documentary ,m=ps. and mop charges for recording ,^o/"*rino this Mortgage.
Taxes. The following mw constitute t to which this section applies: n` a specific tax this typo of tef"^o n or any
part of the Indebeedness scoured by this Ntortgage; (2) e specific tax on Grantor which Grantor is autherized or required to deduce from
payments on the Indebtedness secured by this type of Nlortgage; (3) a tax on this typo of MOrtgage chargeable against the Lender or the
holder of the Note; end (41 e specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by
Subsequent Taxes. oany tax to which this section applies uenacted subsequent to the date w this Mortgage, this event shall have the
^*ff w effect Event Default, and lender may exercise any v, all ",.w"va'*ule remedies for Event Default °s provided below
unless Grantor either pays the tax before .t^e*,m",ominvue"^v,m contests the w,e" provided *=ve in the and Liens
soww" and deposits wimmncfer MO or° sufficient corporate surety bond or other security satisfactory to Lender.
SECURITY AGREEMENT: FINANCING STATEMENTS. The following provisions ,w",'"v to this Mortgage as a w=.^* agreement are a v," of
this Mortgage:
Security Agreement. rem instrument shall constitute Security Agreement tee extent any the Property ="^m"wea=v"".and
Lender shall have all the rights "'o secured party under the Uniform Commercial Code amended from time wtime.
Security Interest. Upon request u, Lender, Grantor %hw take whatever action `s,^n""ated*, Lender *pe+et anti continue Lender's
security interest in the Re le and Personal n" rt addition m recording m/^ Mortgage M the real property records, Lender may, el any
time "a without further authorization from Grantor, file o counterparts, copies or reproductione of this Mortgage finencieg
etatement Grantor shall reimburse Lender for all expenset incurred in perfecting or continuing this security interest. Upon tlefauft, Grantor
shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shalt assemble any Personal Property not
affixed to the Property in a mariner and at a place reasonably convenient to Geantor and Lender and maks it available to Lender within throe
(3) days after receipt of written demand from Lender to the extent permitted by applicable law.
Addresses, The mailing addresses Grantor (oebtor) and Lender (secured from which information concerning the security interest
granted by this Mortgage may be obtained (each as required by the Uniform Commercial c°ea/ are as stated on the nag* of w"
Mortgage.
FURTHER mommAmCeo/xrrnxme,.Iw.F*cr, The following provisions wmmmto further as=ranceS arid *vor""'--fa* are part mthis
Mortgage:
Further /w" c" At any time. and from time w time, f Lend Grantor will makexecute and v°o will onuse
be made, executed or delivered, to Lender or to Lender's deeignee, and when requested by Lander, cause to be feed. worded. >Oiled, or
rerecorded, as the case may be, at such times and in such offices and placee as Lender may deem appropriate, any and 011 such mortgages,
eieeds of trust. security deeds, security agreernente, financing stalements. continuntion statements, instruments of furthee akISUfarICO,
certificates. and other documents as my, in the sole opinion of Lender, be necessary or desirable in ogler to effectuate, complete, peffeet,
continue, or preserve ft) Grantor's obligetione under the Note, this Mortgage, and the Related Documents, and (21 the hero end
security interests created by this Mortgage es first and prior liens on the Property, whether now owned or hereafter acquired try Grantor.
Unitise prohibited by law Or Lender agrees to the contrary in writing, Grantor shall reimburse Lender tor ail costs and expenses incurred in
connection with the mattere referred to in this paragraph,
If Grantor rails to do any of the things paragraph, Lender may o""~ for and in the °prn"m
Grantor anti at Grantor's expense, eor"m* purposes, Grantor hereby Irrevocable *pp"int` Lender as oro"""'o 311Or"",.in for the
n"rpnso"' making, executing, delivering, filing. "w"rd/"v, and doing 31/ othttr 1110,11 05 may be "^oe"*"ry^,desirable. Lender's sole
opinion, m accomplish the matters referred to/" the preceding paragraph.
FULL PERFORMANCE. w Grantor pays all the .rni"m°onew. including without limitation all future advances, when duo, and otherwise performs
all the Obligations imposed upon Grantor under this Mortgage, Lender shall execute m"^ **im, to Grantor suitable satisfaction of mel
Mortgage and nmtau* statements of termination "f any financing statement v^file evidencing Lender's security interest the Rents and the
n°So""/rm'"vr. Grantor will pay, permitted *^'"/i*bu law, any m**"^au*termination fee determined o' Lender from time mtime.
EVENTS oF DEFAULT. Each w the following, Lender's option, shall constitute o" Event w Default under this w^nog°.
Payment Default. Grantor tails m make any payment when due ""u°, the Indebtedness.
Default m. Other' Payments. Failure Grantor within the time required by this Mortgage w make payment for taxes insurance,
any other payment necessary prevent filing ",m," effect discharge of"",/e".
Other Defaults. n*m", fails w comply with mp perform any other term, obligation, covenant Ol condition co^wrney/"*a Mortgage ce
in any v' the Related Documents o,m comply with ",m perform any term, obligation, covenant o, condition contained m any ether
agreement between Lender and Grantor.
False Statements, Any warranty, representation or statement made w furnished to Lender by Grantor or on Grantor's behalf under this
MORTGAGE 000373
Loan NO: 60826 (Continued) Page 4
Mortgage or the Rotated Documents is false or misleading in any materiel reepeet, either now or at the time made or (erne or becomes
false or misleading el any lime thereaftet.
Defective Colletera Heaton, This Mortgage or any of the Related DiectiMentS ceases to be in full force and effect (including failure el any
collateral document to create a valid and perfected security interest or tent at any time and for any reason.
Insolvency. The dissolution or termination of Grantor's existence as a going business, the insolvency 01 Grantor, the appointment of a
tecelver for any part of Grantor's property, any assignment for the benefit of veditore, any type of creditor workout, or the commencement
of any proceeding under any bankruptcy or insolvency lows by or against Grantor
Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self. help,
repossession or any other method, by any creditor of Grantor or by any governmental agency agalnat any property securing the
Indeblednerre. This includes a garnishment of any of Grantee's aeCounts, including deposit «counts, with Lender. elowever, this Event of
Default shall not ripply if there is a good faith dispute by Grantor as to tho validity or reasonableness of the claim which is the basis ot the
creditor or forfeiture proceeding end t Grantor V02 Lender written notice of the creditor or forfeiture proceeding end deposits with Lender
monies or 0 surety bond f« the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, es being an
atlequate reserve or bond for the dispute.
Breach of Other Agreement. Any breech by Grantor under the terms of any tether agreement between Grantor and Lender that is not
remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other
obligation oi Grantor to Lender, whether existing now or later.
Events Affecting Guarantor, Any of the preceding events occurs with respect to any Guarantor of aey of the Indebtedness or tiny
Guarantor dies or becomes ineompethrd, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.
Adverse Change, A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or
performance of the Indebtedness impaired.
Insecurity. Lender in good faith believes itself insecure.
Right to Cure. if any cktfaull, other then a default in payment is curable and if Grantor has not boon given a notice of A breach or the in
proton of this Mortgage within the preceding twelve 1121 months, it may be cured if Grentor, after Lender fiends written notice to
Grantor demanding cure of such default; (1) cures the default within film« (lel days; or lel if the cure requires more than fifteen (lel
days, immediately initiates tip which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter
c,ontintres and completes WI reasonable and necessary steer; sufficient to produce compliance as noon as reasonably practical.
RIGHTS ANO REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender it option, may
exercise any one or more of the following rights and remedies. M addition to any other rights or remedies provided by law:
Accelerate Indebtedneas. Lender shell have the right at its option without notice to Grentor to declare the entire Indebtedness immediately
due and payable, including any prepayment penalty that Grantor would be tequired to pay,
UCC Remediee. With respect to all Or any pert of the Personal Property, Lender shall have all the rights and remedies o e secured party
under the Uniform Commercial Code.
Collect Renee Lender shall have the right, without notice to Grime«, to take possession of the Property, including during the pendency of
foreclosure, whether judicial or nonaudieial, and collect the Rents, including emounts past due and unpeid, and apply the net proceeds, over
and above Lender's costs, against the Indebtedness, In furtherance of this tight. Lender may require any tenant or he user of the
Property le make payments of rent or use lees directly o Lendee If the Rents are collected by Lender, then Granter irrevocebty designete$
Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof M the name ot Grantor and to negotiate the same
and eeeeel the Proceeds Payments by tenants or other users to Lender M response to Lender's demand shalt eatisfy the obligations or
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, err through n 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 Properly 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 H permitted by lew. Lender's right to the appointment of a receiver' shall exist whether or not the apparent value of the Property
exceed') the Indebtedness by a subeternial amount. Employment by Lender shell not disqualify a person from serving as a receiver,
Judicial Foreclosure. tender may obtain a judicial decree foreclosing Grantor's interest in ell of any pan of the Property,
Noreudiciel Sale. Lender may foreclose Grantor's interest in all o M any pate of the Property by nonirudicial sate, and specifically by lower
1 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 remaining in the Indebtedness due
to Lender after application of all amounts received from the exerCiSe of the rights provided in thin section.
Tenancy at Sufferance. 0 Grantor remains in possession of the Property after the Property is sold as provided above or Lander otherwise
becomes entitled to possession of the Properly upon default of Grantor, Grantor shall become a tenant at sufferance or Lender ur the
Purchaser of the Property and Shall, at Leeder's option, either 11) pay a reasonable rental for the use of the Property, or (21 vacate the
Property immereately upon the demand of Lender,
Other Remedies, lender shall have all other rights and remedies provided M this Mortgage or the Note or available at law Of In equite.
Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled,
In exercising its tights and remedies, Lender shaft be free 10 sell all or any pert of tho Property together or separatelYi in one Side or by
separate sales. Lender shell be entitled to bid at any public safe on all Or any portion of the Property
Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time
after which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean notice
given et least ten 1.10) days before the time of the sale or disposition, Any sale of the Personal Property may be made in conjunction with
any little of the Real Property
Election of Remedies, Election by Lender to pursue any remedy shill not exclude pursuit of any other remedy, anti an election itt make
expenditures or to take action to perform an obligation of Grantor under this Mottgage. after Grantor's failure to perform, shall not effect
Lender's right to declare a default and exercise its remedies, Nothing under this Mortgage or otherwise shall be construed so as to limit or
restrict the rights end remedies available to Lender following an Event of Default, ot in any way to limit or restrict the tights and ability of
Lender to proceed directly against Grantor andfor against any other comelier, guarantor, surety or endorser anceor to proceed against any
other collateral directly or indirectly tiecurMg the Indebtedness.
Attorneys Fees; Expenses. 1 Lender inatiftees any suit or ection to enforce any of the terms Of this MOrCtjage. Lander Shan 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 «eon is
involved, and to the extent not prohibited by law, fill reasonable expenses Lender incurs that M Lender's opinion ere necessary at any time
far the protection of its interest or the enforcement of its rights shall become a part of the indebtedness payable on demand and shall beer
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, Lander's reasonable attorneys' tees arid Lender's legal expenses whether or not there is
a lawcuit, including reasonable attorneys' lees and expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), appeels, end any anticipated pose collection aervices, the cost of searching rather«). obtaining title
reports (including foreclosure reports), surveyor%) reporte, and appraisal fees and title insurance, to the extent permitted by applicable few.
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 tale shell be
given in writing, and shall be effective when °Meetly delivered, when actually Waived by tele(aceimile runless otherwise required by IOW), When
depaSitad with a nationailly recognized overnight courier, or, if mailed, when deposited in the United Stew mail, as first class, certified or
registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage., Ali °epics of notices of foreclosure from
the holder of any lien which has priority over this Mortgage shall be sent 10 Lender's addrees, as shown near the beginning of this Mertgage.
Any parry may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that tha
purpose of the notice is to change the party's address, For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's
current addrees. Unless otherwise provided or required by law, if there Is more than one Grantor, any notice given by Lender to tiny Grantor ie
Loan NG: 60826
IVIOF.
(Continued)
000374
Page 5
deemed m»" notice given all «ra"*=.
MISCELLANEOUS PROVISIONS. The following */st°w""*° provisions are pan m this Mortgage;
Amendments. This Mortgage. together with any n*aw* uoc"m,"," von"m"=. the entire understanding end agreement el the parties as
m the matters set forth this Mortgage, ,w alteration amendment this Mortgage shall be effective unless given *°'itiw
signed o, the party orwhoa sought to be charged v, bound w the alteration °amendment,
Annual Reports. vow Property ie used for purposes than Grantor's residence, Grantor shaft w.~w^ Leitrim, v="^°..
certified statement net operating income received from the Property during ora"m,'" p*viow, fiscal year ."""c* form *"o detail vp
Lender shall require. 'Net operating income' shalt mean alt cash receipts from the Property lose "x cash .x,env/t~"^ made /""nnnec"°"
with the Operation the Property,
Caption Headings. Caption headings in this Monona ere for convenience purposes only and are not wm used w interpret *mconethe
pr".**""m this *w*wv".
Governing Law. This Mortgage will governed bnm*wu*°»,*meble mww.,fino.tomo°`w","w preempted o federal few, the
laws w the State mw*=°m* without regard w its conflicts v, law provisions. This M"ngavv has been accepted Lender m the State n/
Wyoming.
Choice a Venue, there w^la°w"/t. Grantor agrees upon Lender's miaow m submit the /w/°mvo=of the courts ofSweetwater
County, State wWyoming,
wv Waiver o'Lender. Lender shall not deemed whave waived any rights under this Mongage umess auch waiver is given in w
arid signed by Lender. No deley or omission en the part M Lender M exercising any tight shall Opeade ea a waiver et such right nr arty
011101 right, A waiver by Lender of a provision of this Mertgege shall not prejudice or constitute a waiver 01 1.anders right etheravate
demand strict compfiance with that provision or any other prevision of this Mortgage. No prior waiver by Lender, nor any counter of dealtne
between Lender and Grantor. shall constitute a waiver of any of Lender's rights or of any of Grantor's obligetions as to noy haute
transactions. Whenever the consent of Lender is required under that Mortgage, the granting of such consent by Lender in any insult
shall not conedrute continuing consent to subaequent Instances where such consent is required and in ail cam; such consent (nay be
granted or withheld M the sole discretion of Lender,
oevemxa* o^ court m competent jurisdiction finds any provision M this Mortgage to w illegal, invalid, unenforceable as any
circumstance, that finding ow not make the offending provieion illegal, invalid, or unenforceeble as te any other circumatance. 0 feasible,
the offending provision WO be considered modified so that it becomes legal, valid and enforceable. if the offending provision eannot be se
modified, it shall Lie considered deleted from this Mortgage, Unless otherwise required by law, the iltegalify, invalidity, or unenforceabilita
of any provioion of this Mortgage shall not effect the legality, validity or enforceability of arta other Provision of this Morthatle
Merger. There shall ^o"^ merger the interest ",estate created u, this Mortgage with any other interest or estate in the Properly o.^,~
time held *,n, for the benefit m Lender m any capacity, without the written consent mLender.
Successors and Assigns. limitations statedin this Mortgage on transfer of G interest. thio w" s°x*
upon and inure to the benefit M the parties, their sue-col/sacs and assigns, If ownership of the Property becomes vested In a person other
than Grantor, Lender, without notice to Grantor, may deal with Grantor's tiveceaaere with reference to thie Mortgage and the Indebtedness
by woy of forlaaarowe or extension without releasing Grantor nom the obagationa of this Mortgage or nobility ander the trideblednesa.
Time is* the Ease"". Time .p"r the essence M the performance this Mortgage.
Waiver of Homestead Exemption. Grantor hereby releases and w"/ve" all rights and benefits the homestead exemption kiwi; the State
of W,vrn/"o all Indebtedness secured this m"°aow,
neowmvwa. The feu"wi" capitalized words and terms shall have the following meanings when used m this Mortgage. Unless specifically
stated w the contrary, all mfo.*ce,," dollar amounts shall mean amounts lawful money the United Steles wAmerica. Werth, end terms
used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise.
defined *this Mortgage shall have the meanings attributed to such terms the Uniform Commercial Code;
Borrower, The word Borrowe'`means Sierra Homes Construction, Inc. and includes all cm-signers end comake" signing the Note and all
their successors and assigns,
Default The word `De*me' means the Defatat net forth in this Mortgage in the section titled 'oefaw
Environmental Laws. The words .Environmental Laws' "e"" any and all °ta*, federal and w=/ statutes, regulations and ordin="pm
relating to the protection human health or the environment. including without limitation the Comprehensive Environmental Response.
Compensation, and Liability Act of /ywo. as amended. 42 us.c. Section omo1. et "eq. rcsncL*'). the o.""^.'m Amendments end
nea"wmam.xw Act ^'`986. Pub, L. No. po'^oyraAoA^/. the Hazardous Materials Transportation Act, *nu.oc Section en`.
the Resource Conservation and Recovery Act, 42 o.az.x^"io" 6901, ^'m*- or other applicable mm^ or federal taws, rules, Or
reputations adopted pursuant Thereto,
Event ",Default. The words "Event Default" mean any of the events u wta.^ set forth **isMortgage M the events ./default
^eew°"r this Mortgage,
Grantor. The word `a,°nt"~ means Sierra Homes Construction. ,nu..
o°ar""m° The word u.v~m="' means any guarantor, surety. r, accommodation party any m all the Indebtedness,
Guaranty. The word 'u"anp/,' mews the guaranty from Guarantor w Lender, including without limitation guaranty a all pan cif /w
Note.
x"ram"ueoub°m"""". m°~°da 'Hazardous o"mw"=°"` mean materials that, because of *he/,quantity, conce"
"^u �w
v" or
chemical Or /"o�w
*n characteristics, �w
or present potential hazard to health or the *"=*°m°n' when
improperly used, .°",w, stored. disposed m, generated, manufactured. ,"w"»"rtem or w^""~i"* handled. The ~"rd, wa,"mmuo
Substances' are used in their very broadest sense and include ~xhOm/inluo'^m any and ell hazardous m toxic ."bs*~"ee.m,m,/°/"
waste °u defined listed untie the Environmental Laws. The term 'x^,arem"" Substances" also includes. without limitation. petroleum
and Petroleum by-products or any fraction thereof and asbestos.
Improvements. The word '/mp~vem~,s' means all existing and future improvements, buildings, ",=*m.o. mobile homes affixed the
Real Property, facilities, additions, ,^pinw~,"w and ether n"notru*m"p" the Real Property-
Indebtedness, The word `mdem°o""w' moans all principal, interest, and other p"v""". costs and °"°""w,nayebm under the Note
Related Docu with renewata el, extensions of. mow'/ ion mu" of and subatilvtions for the Note
Related Documents and any amounts expended or advanced by Lender to discharge Grantor's °Captions or expenses incurred by Lender to
entothe Grantor's obligations under this Mortgage, together with interest on such amounts as provided In this Mortgage. Sprat:11May,
without limitation, Indebtedness includes the enure eaverscee set forth in the Future Advances provision, together with nit interest thereoa
end all amounts that may be indirectly secured by the CrOOS-Collateralization provision of this Mortgage,
Lender. The word w"*"'"w"n, Commerce Bank v, Wyoming, branch mw.brwkaLo"o National Bank, its successors and o^"mns
Mortgage. The word 'w"rtvv°' means this Mortgage between Grantor and Lender.
Note. The word 'w"m means the promissory note dated May o.xo/, original principal amount */$2as.VV0.0Oo"m
Grantor together renewals modifications v/. ,w"""�g""/, consolidations o/. and ,"»",lm m,
the promissory note magreement.
Personal The words n°^p"m Property" mean ell equipment, fixtures, and other vvm^ww personal property now ",hereafter
owned by G "o now or hereafter attached or affixed to the Real together with ail "mce=ione. parts. and additions m.all
replacements and all "wstim'im* for, any °r such property; and together with all proceeds (including without limitation all insurance
proceeds end refunds *'remtu~w from any Sale other vispe"u»"w the ooPer*
Property, The °vm'pwpen' means vv/^ecove* the Real Property and the pweo"al Property.
Rear Property. The words 'Real Property' mean the real property, interests and rights, oo further described this Mortgage.
Related Documents. The words 'Related Documents' mean all promissory notes, credit agreements, loan agreements, environmental
Loan No: 60826
GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS.
GRANTOR:
SIERRA HOMES CONSTRUCTION, INC.
By:
State of
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 all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from
the Property.
6
Burdette Stocking
County of
This instrument was acknowledged before me on
Sierra Homes Construction, Inc..
r Bpi =SI =t9 MEM MI5 MU EMS 69 ML+J NMI GPM CLEM 679
Notary Public u
1 o., sr yT DAVID B. FREEMAN Q
1094 West 400 South
Logan, Utah 84321 1
8 y My Commission Expires
0 December 18, 2011
x 8 State of Utah
L
MORTGAGE
(Continued)
CORPORATE ACKNOWLEDGMENT
c7 O f (date) by Bu,deftt \Stocking,
000375
Jfks o
(Notarial Si atu
My commission expires: /2i (F
Page 6
of
LASER PRO Lending, Ver. 5.56.00.005 Copr. Harland Financial Solutions, Inc. 1997, 2011. All Rights Reserved. WY
S: \PROGRAMS \CFIWINRS \CFI \LPL \G03.FC TR -5569 PR -36