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HomeMy WebLinkAbout967246KCI.CIVCU 1U /V /LUiL at 1U:4Z HIV! RECEIVING 967246 BOOK: 795 PAGE: 633 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY DEED IN LIEU OF FORECLOSURE AGREEMENT RECITALS• 00633 THIS DEED IN LIEU OF FORECLOSURE AGREEMENT "Agreement is made and entered as of the (fthi day of September, 2012 (the "Effective Date by and between Laurie J. Rocknak "Borrower whose address is 375 East 5th Avenue, Afton, Wyoming, 83110, and HOWARD N. RHOADS AND CINDY L. RHOADS "Lender whose address is PO Box 903, Fort Sumner, NM 88119. A. On or about March 30, 2009, Borrower executed and delivered to HOWARD N. RHOADS and CINDY L. RHOADS a promissory note in the face amount of $25,000.00. B. As of September 18, 2012, Borrower owed Lender principal on the loan in the amount of $20,274.71. C As of September 18, 2012, the interest on the loan is in the amount of $1,953.47, and late fees in the amount of $735.00. Interest continues to accrue at the rate of $3.81 per day. D. The Promissory Note is secured by, among other things, a Mortgage granted to Howard N. Rhoads and Cindy L. Rhoads on May 6th, 2009 and which was recorded on r1cu '1, '2 -e}'tO 9 in the Office of the Clerk of Lincoln County, Wyoming in Book�'7PL- of Mortgages at Page 29.5` The mortgage provides a security interest on real property described as: Part of Lot 4 of Block 23 to the Town of Afton, Lincoln County, Wyoming being more particularly described as follows: COMMENCING 90 feet East of the Southwest corner of said Lot 4; And, running thence East, 75 feet; Thence North, 330 feet; Thence West, 75 feet; Thence South, 330 feet to the POINT OF BEGINNING. E The Note has not been paid off and Borrower is in default on the Note. F. Borrower is the current owner of the Property. G. The Property is improved with a residential structure and all improvements to the Property are deemed to be a part of the Property. 0063 H. To the extent that there are any items of personal property, as described on Exhibit A hereto, located on the Property or associated with the Property, said items shall be collectively referred to as "Personal Property." I. Borrower has agreed to convey title to the Property to Lender by Warranty deed (the "Deed to convey the Personal Property to Lender by a bill of sale (the "Bill of Sale to transfer and assign to Lender all of the other general intangibles, goodwill, and rights to names related to the Property (the "Goodwill In consideration of the foregoing, Lender has agreed to release Borrower from liability in connection with the Loans to the extent set forth below. NOW, THEREFORE, in consideration of the above premises, the covenants and agreements set forth herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: AGREEMENT 1. Delivery of Documents. Concurrently with the execution of this Agreement at the closing (the "Closing (a) Borrower shall execute and deliver to Lender the Deed, which the parties agree and acknowledge is intended to effect an outright, absolute, and unconditional conveyance of title to the Property to Lender and not the granting of a security interest therein, in the form of Exhibit B attached hereto and by this reference made a part hereof. (b) Borrower shall execute and deliver to Lender the Bill of Sale, which is intended to effect an outright, absolute, and unconditional conveyance of title to the Personal Property to Lender and not the granting of a security interest therein, in the form of Exhibit C attached hereto and by this reference made a part hereof. (c) Borrower shall deliver possession of the Property, all keys to the Property, and the Personal Property to Lender upon delivery of the Deed. (d) Borrower shall deliver to Lender all drawing, blueprints, plans and specifications, surveys, reports, audits, agreements, records, permits, keys, and all correspondence, instruction manuals concerning operation of the Property and the Personal Property and all warranties with respect to the same, and all agreements with governmental authorities or other parties in connection with the Property, if any, that are in the possession of Borrower. (e) Borrower shall execute and deliver to Lender duplicate originals of an Estoppel Affidavit. (f) Borrower shall execute any documents requested by the Lender reasonably required to close this transaction. 2. Payment to Borrower. In exchange for the mutual covenants and agreements contained herein, and contingent upon Borrower's full performance of its obligations under this Agreement, Lender shall pay to Borrower in accordance with an agreement entered into between Borrower and Lender, which is attached hereto as Exhibit D and made a part of this document by reference, the amount of ten dollars and zero cents 10.00), the sufficiency of which Borrower hereby acknowledges. 3. Warranties, Representations and Covenants of Borrower. 00630 (a) Borrower hereby unconditionally covenants, agrees, represents, and warrants to Lender and agrees to indemnify and hold Lender harmless from any liability resulting from the inaccuracy thereof, that: (1) No litigation or proceeding is pending or to the knowledge of Borrower, threatened against or relating to the Property, nor does Borrower know or have reasonable grounds to know of any basis for any such action, including, without limitation, condemnation or eminent domain proceedings. Property. unpaid. (2) There are no matters adversely affecting title to the (3) There are no contracts or agreements in place that contract for services or utilities to any portion of the Property (4) There are no tenants or leases that burden the Property and Borrower has not executed any leases or other documents giving any person or entity any possessory rights in or two the Property. (5) No taxes or assessments made against the Property remain (6) Borrower has not used Hazardous Materials (as defined hereinafter) on, from, or affecting the Property in any manner which violates federal, state, or local laws, ordinances, rules, regulations, or policies governing the use, storage, treatment, transportation, manufacture, refinement, handling, production, or disposal of Hazardous Materials, and that, to the best of Borrower's knowledge, no person or entity has used Hazardous Materials on, from, or affecting the Property in any manner which violates federal, state, or local laws, ordinances, rules, regulations, or policies governing the use, storage, treatment, transportation, manufacture, refinement, handling, production, or disposal of Hazardous Materials. Borrower has never received any notice of any violations of federal, state, or local laws, ordinances, rules, regulations, or policies governing the use, storage, treatment, transportation, manufacture, refinement, handling, production, or disposal of Hazardous Materials, and, to the best of Borrower's knowledge, there have been no actions commenced or threatened by any person or entity for non compliance therewith. For purposes of this Agreement, "Hazardous Materials" shall mean and include any flammable explosives, petroleum (including crude oil) or any fraction thereof, radioactive materials, hazardous wastes, toxic substances or related materials, including, without limitation, asbestos, formaldehyde compounds, PCBs, radon, and any other substances defined as or included in the definition of toxic or hazardous substances, wastes, or materials under any federal or applicable state or local laws, ordinances, or regulations dealing with or otherwise pertaining to toxic or hazardous substances, wastes, or materials. (7) Borrower has not engaged in or committed intentional or willful fraud, waste, or misrepresentation in connection with the Loans. that: 9063x' (b) Borrower hereby agrees, covenants and warrants with and to Lender (1) It is aware of its rights under Wyoming law to cure any default under the Loans or to redeem the Property after foreclosure sale and expressly and voluntarily gives up and forgoes all such rights by delivery of this Agreement and the documents to be executed in connection therewith. (2) The conveyances described herein from Borrower to Lender are absolute conveyances, and the consideration received by Borrower in exchange therefore is fair and adequate and is equal to or greater than the reasonably equivalent value of the Property. (3) It shall indemnify and hold Lender harmless from and against any and all claims, losses, damages, and liabilities, including costs, expenses, and reasonable attorneys' fees in connection therewith arising out of any breach of the representations, warranties, and agreements set forth in this Agreement. (4) It shall indemnify and hold Lender harmless from and against any and all claims, demands, losses, damages, costs, expenses, liens, liabilities, penalties, fines, lawsuits, and other proceedings (including attorneys' fees) directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence prior to the date of this Agreement (regardless of whether or not discovered prior to or after the date of this Agreement and regardless of by whom caused, whether by Borrower or any predecessor in title, any owner of land adjacent to the Property, or any other third party) of 0063' Hazardous Materials on, under, or about the Property, including, without limitation: (a) claims of third parties (including governmental agencies) for damages, penalties, losses, costs, fees, expenses, injunctive or other relief, (b) response costs, clean -up costs, costs and expenses of removal and restoration, including fees of attorneys, consultants, and other experts, and costs of determining the existence of Hazardous Materials and reporting the same to any governmental agency; and (c) any and all expenses or obligations, including reasonable attorneys' fees, incurred at, before, and after any trial or appeal therefrom. (c) Borrower hereby warrants and represents to Lender that as of the date hereof that Borrower is not a debtor or a co- debtor in a bankruptcy or insolvency proceeding and that Borrower does not intend to file a petition in bankruptcy, nor to the knowledge of Borrower, are any of Borrower's creditors threatening to file an involuntary petition in bankruptcy with respect to Borrower as a debtor. (d) Each party hereto represents and warrants for itself that it has taken all necessary steps and is properly authorized and has full power to execute this Agreement and to take all of the actions contemplated hereby. 4. Continuing Obligations. Notwithstanding the conveyance of the Property and the Personal Property to Lender, it is the express intent of the parties hereto that the lien of the mortgages described above shall not merge with title to the Property and that the Notes and mortgages described above shall remain in full force and effect except as expressly modified herein. 5. General Intent. Notwithstanding the lack of merger discussed in paragraph 4, it is the express intent and understanding of the parties to this Agreement that Lender shall become the immediate owner of and have full title to the Property and the Personal Property, and the above described mortgages will remain as valid and enforceable liens on the Property; provided, however, that Borrower shall be released from liability under the Notes to the extent described in paragraph 7 below. It is the intent of this Agreement that Lender's rights and remedies as to all collateral for the Notes not be compromised in any way except as described in the release contained in paragraph 6 below. 6. Cooperation. Borrower hereby agrees that it will cooperate fully with Lender and do nothing which will be reasonably likely to bind or interfere with any of the following: (a) A stable transition of ownership, operation, and management of the Property and the Personal Property. (b) for the Property. Lender's continued and consistent marketing and promotional efforts Property. oocap (c) Access to all information and books and records related to the (d) Execution of any and all additional documents as reasonably requested by Lender or the Title Company in connection with the Policy or to effect the intent of this Agreement. 7. Release and Limitations of Release. (a) Subject to the following sentence, Lender hereby releases and discharges Borrower from any and all claims, demands, liabilities, causes of action, suits, and obligations under the Notes and the Loans, and for any and all activities, actions, or omissions associated with the Property, the Notes, or the Loans or the ownership, financing, maintenance, or management of the Property on or before the date hereof, except as such claims, demands, liabilities, obligations, activities, actions, or omissions may be reaffirmed or set forth in or arise under this Agreement or in any of the documents executed in connection herewith. Notwithstanding the foregoing release language and the conveyance of the Property and Personal Property to Lender, it is the express intent of the parties hereto that the lien of the mortgages described above shall not merge with title to the Property and that the Notes and above described mortgages shall remain in full force and effect, provided, however, that with respect to any claim by Lender under the Notes or the above described mortgages, no deficiency or money judgment shall be sought or obtained against Borrower. (b) Borrower hereby forever releases and discharges Lender from any and all claims, demands, liabilities, causes of action, suits, and obligations, now or in the future existing, under the Notes and/or Loans and for any and all activities, actions, or omissions associated with the Property, the Notes and/or Loans on or before the date hereof. Borrower recognizes that this release is a full and general release and that it is Borrower's intention to fully and finally release Lender from any and all claims, causes of actions, demands, liabilities, punitive damages, other damages and costs and expenses, including attorneys fees, arising from or related to any of the Notes and/or Loans or the Property. 8. Brokerage Commissions. Each party hereto warrants and represents it has not incurred contractual or any other liability for the payment of any brokerage fee or commission in connection with the transactions contemplated hereby. If any of the parties shall breach the foregoing representation, it shall indemnify the other party and hold the other party harmless from and against any damage, liability, loss, claim, or expense suffered by the other party as a result of such breach. 9. Assumption of Obligations. In no event shall Lender assume or be deemed to have assumed any obligation or liability in connection with the Contracts which are based on events or accrue prior to Closing. 10. Notice. Any notice or demand that Lender or Borrower is required or permitted to give to the other in connection with this Agreement shall be effective only if in writing, signed by the party giving such notice, and shall, unless otherwise in this Agreement expressly provided, be given or served by depositing the same in the United States mail, postage prepaid and registered or certified and addressed to the party to be notified, with return receipt requested, or by delivering the same in person or by overnight courier to the party to be notified, or by postpaid telegram addressed to the party to be notified, or by delivery thereof via facsimile. Any such notice deposited in the mail in the manner described above shall be deemed effective three (3) business days following deposit in accordance with the foregoing requirements; such notice given in any other manner shall be deemed given only if and when delivered to the party to be notified at its address below, except that any notice via facsimile shall be deemed given when successful transmission is confirmed on the fax facilities of the delivery party (as an ordinary function thereof). For purposes of notice, the addresses and facsimile numbers for the parties shall, until changed as hereinafter provided, be as follows: To Lender: HOWARD N. RHOADS and CINDY L. RHOADS PO Box 903 Fort Sumner, NM 88119 With a copy to: Spencer L. Allred Bowers Law Firm, PC PO Box 1550 Afton, WY 83110 To Borrower: Laurie J. Rocknak 375 East 5th Ave Afton, WY 83110 0063! The parties hereto shall have the right from time to time to change their respective addresses, or facsimile information (which must include a related telephone number to address any transmission difficulties), and each shall have the right to specify as its address or facsimile number any other address or facsimile number within the continental United States of America by at least five (5) days' notice to the other party as herein provided. 11. Miscellaneous. OO6 LP (a) This Agreement shall be binding upon the parties hereto and their respective successors and assigns. (b) There shall be no assignment of the rights, obligations, or interests of Borrower under this Agreement without the prior written consent of Lender. (c) In no event shall any of the parties to this Agreement be deemed to have waived or have agreed to an amendment of any provision of this Agreement unless such waiver or amendment is acknowledged in a written instrument executed by all the parties hereto and then only to the extent specifically and expressly set forth in said Agreement. No waiver by any of the parties hereto of any provision as applied in one context shall be construed as a waiver of any other provision of this Agreement or of the same provision as applied to other contexts. (d) This Agreement and the documents to be executed pursuant to this Agreement shall contain the entire understanding and agreement between the parties, and all prior negotiations, agreements, and understandings, oral or written, are fully merged herein and superseded hereby. (e) This Agreement shall be construed under and governed by the laws of the State of Wyoming. (f) This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document. (g) Borrower hereby agrees to execute any additional documents reasonably requested by Lender to further the purposes or evidence the intent of this Agreement. All documents to be delivered to Lender shall be in form and substance satisfactory to Lender. (h) The covenants, agreements, warranties, and representations contained herein shall not merge into the various documents executed and delivered to this Agreement, but shall instead survive the Closing and remain in full force and effect. (i) The captions of this Agreement are for convenience and reference only and in no way modify, explain, enlarge, or restrict any of the provisions hereof. (j) In the event of any litigation arising out of this Agreement, the court shall award to the prevailing party all reasonable costs and expenses of such party in connection with the litigation, including, without limitation, all attorneys' fees. (k) The illegality, invalidation, or unenforceability of any of the provisions of this Agreement as applied to any particular context shall in no way affect or limit the enforceability or application of the other provisions hereof or the application of the provision in question to such other contexts in which it is enforceable; and to the extent of its unenforceability, the provision in question shall be deemed replaced with another provision which as closely as possible parallels its content and substantive effect. (1) Each representation and warranty set forth in this Agreement shall survive the Closing and delivery of the Deed and other documents to be delivered to Lender under the terms of this Agreement. (m) This Agreement may be executed in multiple counterparts, and when each party has executed such counterparts, all counterparts together shall be deemed to be one complete and binding Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. STATE OF ss. COUNTY OF v MCA BORRO ER: brie J. Rocknak foregoing instrument was acknowledged before me this 2012 by Laurie J. Rocknak. Witness my hand and official seal. My commission expires: kid Notary Public HEIDI BROWN County Linooh day of 00641 NOTARY PUBLIC State o Wyoming tuii4ust 5, 2013 STATE OF ihrtmlf ss. COUNTY OF Am,ckP,i The foregoing instrument was acknowledged before me this iq i4 day of 3DII\M)111/ 2012, by HOWARD N. RHOADS. Witness my hand and official seal. My commission expires: al) /Ail 31 2:0161 My commission expires: LENDER: HOWARD N. R OADS CINDY RHOADS 1.11,4 RAfttiti Notary ERIKA N. BENCH NOTARY PUBLIC County of Lincoln State of Wyoming My Commission Expires July 31, 2016 Th •ore oing instrument was acknowledged before me this 2012, by CINDY L. RHOADS. Witness my hand and official seal. Notary Public 71 'C r day of HEIDI EIROV1,14 NOTARY PUBLIC County of Lincotr■ Comm, Aup, _ust 5, 2013 0064 State of Wyoming Exhibit A Personal Property 06 All goods, chattels, motor vehicles, tools, appliances, furniture, equipment, inventory, machinery, fixtures, trade fixtures, window coverings, floor coverings, supplies, instruments, certificates of title, documents, books, business records, customer lists, files, keys, locks, security devices, manuals, electronic information systems, drawings, plans, specifications, diagrams, soil reports, environmental reports, surveys, other architectural or engineering work product and other personal property of any nature whatsoever owned by Borrower and located on or used in conjunction with the Property, including trade names, licenses and permits related thereto, including but not limited to the following specific items: STATE OF ss COUNTY OF Witness my hand and official seal. My Commission Expires: Exhibit B Deed WARRANTY DEED Laurie J. Rocknak, a single person, GRANTOR, of 375 East 5th Avenue, Afton, WY 83110, for and in consideration of TEN DOLLARS ($10.00) and other good and valuable consideration, in hand paid, receipt of which is hereby acknowledged, CONVEYS AND WARRANTS to HOWARD N. RHOADS AND CINDY L. RHOADS, GRANTEE, whose mailing address is PO BOX 903, Fort Sumner, NM 88119, the following described real estate, situated in the County of Lincoln, State of Wyoming, hereby waiving and releasing all rights under and by virtue of the homestead exemption laws of the State of Wyoming, to -wit: Part of Lot 4 of Block 23 to the Town of Afton, Lincoln County, Wyoming being more particularly described as follows: COMMENCING 90 feet East of the Southwest corner of said Lot 4; And, running thence East, 75 feet; Thence North, 330 feet; Thence West, 75 feet; Thence South, 330 feet to the POINT OF BEGINNING. Together with and including all oil, gas, and other minerals and mineral rights appurtenant thereto and owned by Grantor, if any, and all improvements and all other appurtenances and hereditaments thereunto belonging. Subject to taxes and all covenants, conditions, restrictions, easements, reservations, rights and rights-of-way of sight and/or record. WITNESS our hands this �,�f day of n J1Ga• 2012. RIE J. ROCKNAK The ore ing instrument was acknowledged before me by Laurie J. Rocknak, this )0 day of e i'E1.t, 2012. H 6I 3 i.f: a t t '7 MI Cont,. t,. i i 12,E C:, Notary Public Y PUBLIC State of ?fy'o ring 0064 Exhibit C Bill of Sale BILL OF SALE For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby assigns, sells, and transfers to HOWARD N. RHOADS AND CINDY L. RHOADS, their successors and assigns forever, and warrants the title against all persons claiming under it, all of its right, title and interest in the personal property described on the attached Exhibit "A." This conveyance is made without warranty of merchantability and the personal property described herein is sold in an "AS IS" condition. I WITNESS WHEREOF, the undersigned have executed this Bill of Sale this "day of 2012. c4 aurie J. Rocknak 0064 C