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Also known as the Energy Inn Motel.
MORTGAGE
KNOW ALL PERSONS BY THESE PRESENTS, that M AND M HOSPITALITY, LLC,
a Wyoming Limited Company of 2338 Wagon Circle Road, Rawlins, WY 82301 and MULJIBHAI
M. CHAUDHARI, personally of 1092 West Highway 40, Vernal, UT 84078, herein referred to as
Mortgagors, to secure the payment of the principal sum of eight hundred forty -three thousand seven
hundred fifty dollars ($843,750.00), together with interest at the rate of six percent (6 per annum,
with a balloon payment due on December 7, 2013, as evidenced by a promissory note of even date
herewith (the "Note to the order of Diamondville Investment, Inc., a Wyoming Corporation of
P.O. Box 494, Diamondville, WY 83116, herein referred to as Mortgagees, hereby mortgages to
Mortgagee, all interest in the real property (the "Property situate in the County of Lincoln, State
of Wyoming, and more particularly described as follows, to -wit:
See description contained in Exhibit A attached hereto and incorporated herein by
reference.
including all buildings and improvements thereon or that may hereafter be erected thereon; together
with hereditaments and appurtenances and all other rights thereunto belonging, or in any manner now
or hereafter appertaining, and the reversion and reversions, remainder and remainders, rents, issues,
and profits thereof, and all fixtures now or hereafter attached to the premises.
Mortgagors hereby relinquishes and waives all rights under and by virtue of the homestead
laws of the State of Wyoming with respect to the Property, and Mortgagors covenant that Mortgagors
are lawfully seized of the premises; that the premises are free from all encumbrances excepting only
this Mortgage; and hereby covenants to warrant and defend the title of the premises against the
lawful claims of all persons whomsoever.
Mortgagors covenant with Mortgagee as follows:
SECTION ONE
RENTS, ISSUES, AND PROFITS
SECTION TWO
RESTRICTIONS ON TRANSFER; NO FURTHER ENCUMBRANCES
Page 1 of 6
00585
In case of default in any of the payments stipulated in the Note, Mortgagors, as further
security for this mortgage and the Note secured thereby, hereby assigns, sets over, and conveys to
Mortgagee all of Mortgagors' interest in and to all rents, issues, and profits from the property.
The Mortgagors shall not, whether voluntarily or involuntarily by operation of law or
RECEIVED 12/7/2011 at 2:33 PM
RECEIVING 9
BOOK: 777 PAGE: 585
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
SECTION THREE
PAYMENT OF INDEBTEDNESS
SECTION FOUR
GROUND RENTS; TAXES AND ASSESSMENTS
00586
otherwise (I) transfer, sell, convey or assign all or any portion of the property, or contract to do any
of the foregoing, including without limitation, enter into options to purchase, installment sales
contracts, land contracts, real estate contracts or contracts for Deed of Trust, (ii) change the legal
possession or use thereof, or (iii) except as provided in this Section, permit the dilution, transfer,
pledge, hypothecation or encumbrance of any ownership interest in the property mortgaged herein.
Except for easements for drainage or utilities, Mortgagors shall not enter into any easement, rights
of way, agreements affecting property lines or similar agreements affecting the property without the
prior written consent of Mortgagee. Such consent shall not be unreasonably withheld. Mortgagors
shall not without the prior written consent of the Mortgagee, directly or indirectly, further encumber
the property, or any part thereof, it being understood by Mortgagors that the property, and all parts
thereof, shall remain free and clear of any and all debt instruments or other obligations for repayment
of money except those given in connection with the loan evidenced by the Note.
Mortgagors will pay the indebtedness as provided in the Note. Mortgagors reserve the right
to pay the debt in whole, or in part on any date prior to maturity, without penalty.
Mortgagors will pay all ground rents, taxes, assessments, water rents, and other governmental
or municipal charges, or other lawful charges with respect to the Property, and will promptly deliver
the official receipts therefor to Mortgagee.
SECTION FIVE
MAINTENANCE OF PROPERTY
Nothing shall be done on or in connection with the property that may impair Mortgagee's
security hereunder; Mortgagors will not commit, permit or suffer any waste, impairment or
deterioration of the property, or any part thereof, and the property shall be continuously maintained
in good and sightly order, repair and condition by Mortgagors at Mortgagors' expense. Mortgagors
shall not remove any buildings, improvements, or appliances located on the property, and
Mortgagors shall not change the contour of any lands, without the prior written consent of the
Mortgagee.
SECTION SIX
HAZARD INSURANCE
Mortgagors will keep the improvements now existing or hereinafter erected on the premises,
insured for fire and extended coverage in an amount equal to at least the full replacement cost
thereof. All insurance shall be carried in reputable companies qualified to do business in the State
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00587
of Wyoming, and the policies and renewals thereof shall have attached thereto loss payable clauses
in favor or and in form acceptable to Mortgagee. Mortgagors shall promptly deliver a copy of all
insurance policies and proof of premium payment. In the event of loss, Mortgagors will give
immediate notice by mail to Mortgagee, who may make proof of loss if not made promptly by
Mortgagors, and each insurance company concerned is hereby authorized and directed to make
payment for such loss to Mortgagors and Mortgagee jointly; the insurance proceeds or any part
thereof may be applied by Mortgagee at Mortgagee's option either to the reduction of the
indebtedness hereby secured or to the restoration or repair of the property damage. In event of
foreclosure of this mortgage or other transfer of title to the premises in extinguishment of the
indebtedness secured hereby, all right, title and interest of Mortgagors in and to any insurance
policies then in force shall pass to the purchaser or grantee. Each policy or other contract for such
insurance shall contain an agreement by the insurer that, not withstanding any right of cancellation
reserved to such insurer, such policy or contract shall continue in force for at least twenty (20) days
after written notice to the Mortgagee of such cancellation.
SECTION SEVEN
CHARGES; LIENS
In case Mortgagors shall default in the payment of ground rents, if any, taxes, assessments,
water or other governmental or municipal charges, insurance premiums, or other lawful charges as
herein provided, Mortgagee may without notice or demand pay the same and in case of any failure
on the part of Mortgagors to comply with the covenants of Section Five thereof, Mortgagee may
effect such repairs as Mortgagee may reasonably deem necessary to protect the property, at the
expense of Mortgagors. Mortgagors shall repay such sums paid and all expenses so incurred by
Mortgagee, with interest thereon from the date of payment, at six percent (6 per annum, and the
same shall be a lien on the premises and be secured by the above mentioned note and by these
presents; in default of making such repayments the whole amount hereby secured if not then due
shall, if Mortgagee so elect, become due and payable forthwith, anything therein contained to the
contrary notwithstanding.
SECTION EIGHT
EVENTS OF DEFAULT AND ACCELERATION
A. Events of Default. The terms "Event of Default" or "Events of Default wherever used in
this instrument, shall mean any one or more of the following events:
(1) Failure by Mortgagors to pay within ten (10) calendar days after due, any sum due
under the Note, this Mortgage, or any payment of tax or insurance deposit or
premium when due; or
(2) Failure by Mortgagors to duly observe, comply with or perform within ten (10)
calendar days after written notice of such failure is given to Mortgagors of any term,
covenant, condition or agreement of this instrument; or
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(3)
The filing by either Mortgagor of a voluntary petition in bankruptcy or adjudication
of either Mortgagor as a bankrupt or insolvent, or the filing by either Mortgagor of
any petition or answer seeking or acquiescing in any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief for itself under
any present or future federal, state or other law or regulation relating to bankruptcy,
insolvency or other relief for debtors, or seeking or consenting to or acquiescing in
the appointment of any trustee, receiver or liquidator of either Mortgagor or of all or
any substantial part of the property or of any of the rents, issues, profits or revenues
thereof, or the making by Mortgagors, or either of them, of any general assignment
for the benefit of creditors, or the admission in writing by Mortgagors, or either of
them, or their inability to pay their debts generally as they become due; or
(4) The entry by a court of competent jurisdiction of an order, judgment or decree
approving a petition, filed against either Mortgagor, or either of them seeking any
reorganization, arrangement, composition readjustment, liquidation, dissolution or
similar relief for itself under any present or future federal, state or other law or
regulation relating to bankruptcy, insolvency or other relief for debtors, which order,
judgment or decree remains unvacated and unstayed for an aggregate thirty (30) days
(whether or not consecutive) from the date of entry thereof, or the appointment of any
trustee, receiver or liquidator of either Mortgagor, or of all or any substantial portion
of the property or of any of rents, issues profits or revenues thereof without the
consent or acquiescence of either Mortgagor, which appointment shall remain
unvacated and unstayed for an aggregate thirty (30) days (whether or not
consecutive).
B. Acceleration. In case of an Event of Default, the whole of the then indebtedness secured
hereby, inclusive of principal, interest, arrearages, ground rents, if any, taxes, assessments,
water charges, utilities, insurance premiums, expenditures for repairs or maintenance,
together with all other sums payable pursuant to the provisions thereof, shall become
immediately due and payable, at the option of Mortgagee, although the period above limited
for the payment thereof may not have expired, anything herein before or in the Note
contained to the contrary notwithstanding; any failure to exercise such option shall not
constitute a waiver of the right to exercise the same at any other tune; and it shall be lawful
for Mortgagee to proceed to enforce the provisions of this mortgage either by suit at law or
in equity, as Mortgagee may elect, or to foreclose this mortgage by advertisement and sale
of the premises, at public auction for cash, according to Wyoming Statutes governing
mortgage foreclosures, and cause to be executed and delivered to the purchaser or purchasers
at any such sale, good and sufficient deed or deeds of conveyance of the property so sold, and
to apply the net proceeds arising from such sale first to the payment of the costs and expenses
of such foreclosure and sale and in payment of all monies expended or advanced by
Mortgagee pursuant to the provisions of Section Seven hereof, and then to the payment of
the balance due on account of the principal indebtedness secured hereby, together with
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00588
interest thereon, and the surplus if any, shall be paid by Mortgagee to Mortgagors. In the
event the Property is sold under foreclosure and the proceeds are insufficient to pay the total
indebtedness secured hereby, Mortgagors, each jointly and severally bind themselves to pay
the unpaid balance and Mortgagee will be entitled to a deficiency judgment. There shall be
included in any or all such proceedings a reasonable attorney's fee. In case Mortgagee fails
promptly to foreclose on the happening of any default, Mortgagee shall not thereby be
prejudiced in Mortgagee's right to foreclose at any time thereafter during which such Event
of Default continues, and shall not be prejudiced in Mortgagee's foreclosure rights in case
of further Events of Default.
SECTION NINE
MORTGAGEE'S RIGHT OF POSSESSION
In case of any default whereby the right to foreclosure occurs hereunder, Mortgagee shall at
once become entitled to exclusive possession, use and enjoyment of all property, and to all rents,
issues and profits thereof, from the accruing of such right and during the pendency of foreclosure
proceedings and the period of redemption, if there is any; and such possession, rents, issues and
profits shall at once be delivered to Mortgagee on request, and on refusal, the delivery of such
possession, rents, issues and profits may be enforced by Mortgagee by any appropriate civil suit or
proceeding, including action or actions in ejectment or forcible entry, or unlawful detainer; and
Mortgagee shall be entitled to a receiver for the property and the rents, issues and profits thereof,
after any such default, including the time covered by foreclosure proceedings and the period of
redemption, if there is any, and shall be entitled thereto as a matter of right without regard to the
solvency or insolvency of Mortgagors or the then owner of the property or the sufficiency thereof
to discharge the mortgage debt and foreclosure costs, fees and expenses; and such receiver may be
appointed by any court of competent jurisdiction, and all rents, issues, profits, income and revenue
of the property shall be applied by such receiver, according to law and the orders and directions of
the court.
SECTION TEN
BINDING EFFECT
SECTION ELEVEN
WAIVER
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00589
The covenants herein contained shall bind, and the benefits and advantages shall inure to, the
respective heirs, executors, administrators, successors and assigns of the parties thereto. Whenever
used, the singular number shall include the plural, the plural the singular, and the use of any gender
shall include all genders.
Any waiver by either party hereto of any breach of any kind or character whatsoever by the
other party, whether such waiver be direct or implied, shall not be construed as a continuing waiver
of or consent to any subsequent breach of this agreement on the part of the other party.
STATE OF WYOMING
)ss.
COUNTY OF LINCOLN
WITNESS my hand and official seal.
Lon Kahn Notary Public
County of State of
Wyoming
Lincoln
My Commission Expires 2/26/21
F
SECTION TWELVE
NOTICES
All notices, demands, requests and other writings required or permitted to be given hereunder
shall be deemed duly given if hand delivered or if mailed by certified mail, postage prepaid, if
addressed to the parties to their respective addresses stated above. Either party shall have the right
to specify in writing in the manner above provided, another address to which subsequent notices or
writings to such party shall be given. Any notice given hereunder shall be deemed to have been
given as of the date delivered or three (3) days after being mailed.
SECTION THIRTEEN
AUTHORITY
The undersigned hereby certifies, guarantees and represents he has the right and authority to
sign this Mortgage on behalf of M and M Hospitality, LLC and legally bind that entity.
WITNESS WHEREOF, Mortgagors have caused this Mortgage to be duly executed on
this '7 day of December, 2011.
f M AND M HOSPITALITY, LLC
By: MULJIBHAI M. CHAUDHARI,
Managing Member/
(i
MULJIBHAI M. CHAUDHARI, Personally
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I
00590
The above and foregoing instrument was acknowledged before me this 7 day of
December, 2011, by Muljibhai M. Chaudhari who swore and affirmed he had due and proper
authority to bind M and M Hospitality, LLC and Muljibhai M. Chaudhari, personally.
Notary Public
My Commission Expires: 624649/
Also known as the Energy Inn Motel.
EXHIBIT A
Parcel 1: A portion of that parcel of land described in Book 175PR at Page 155 on
file in the Office of the Lincoln County Clerk at Kemmerer, Wyoming, being
more particularly described as follows:
Commencing at the southeast corner of said parcel described in said Book 175PR
at Page 155, said point also being at the intersection of the westerly right of way
line of U.S. Highway 30 North and the northerly right of way line of U.S.
Highway 189;
thence South 85°12'12" West along the northerly right of way line of said U.S.
Highway 189, 31.44 feet to the point of beginning of this description;
thence North 17 West, 360.71 feet;
thence West 225.00 feet;
thence South 02 °5713" West, 357.47 feet to a point on the northerly right of way
line of said Highway 189;
thence easterly along the northerly right of way line of said Highway 189 along
the arc of a curve to the left through a central angle of 07 °45'01 a distance of
250.23 feet to the point of tangency, the radius of said curve being 1,849.86 feet;
thence North 85 °12'12" East, a distance of 100.43 feet.
Parcel 2: Point of beginning being the intersection of right of way of westerly
Highway 30 North and northerly Highway 189 Tract 45, Resurvey, Township 21
North, Range 116 West, 6 Principal Meridian, Wyoming
thence North 85°12'12" 31.44 feet;
thence North 17°12' West 360.17 feet;
thence East 31.44 feet;
thence South 17°12' East along west right of way line of Highway 30 North a
distance of 364.43 feet to point of beginning.
00591_