HomeMy WebLinkAbout877637 RECORDATION REQUESTED BY:
The Jackson State Bank
P.O. Box 1788
112 Center Street
WHEN RECORDED MAiL TO:
The Jackson State Bank
P.O, Box 1788 ~'~ J
112 Center Street
Jackson, WY 83001
SEND TAX NOTICES TO: ' .
P.O. Box 1788 OOK
112 Center Street
Jackson WY 83001
~SPACE ABO~NE IS FOR RECORDER'S USE ONLY
MORTGAGE
MAXIMUM LIEN. The lien of this Mortgage shall not exceed at any one time $100,000.00.
THIS MORTGAGE dated November 26, 2001, is made and executed between William Hadley, husband, whose
address is P.O. Box 6566, Jackson, WY 83002 and Z. Elizabeth Puig, wife, whose address is P.O. Box 6566,
Jackson, WY 83002 (referred to below as "Grantor") and The Jackson State Bank, whose address is P.O. Box.
1788, 112 Center Street, Jackson, WY 83001 (referred to below as "Lender").
GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender a~l of Gran~or's right, ~itl~, a~d [~t~r~t i~ an~ to
the following described real property, together with all existing or subsequently erected or affixed bu d~ngs improvements and f xtures, all easements,
rights of way, and appu~enances; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all
other rights, royalties, and ' '
"Real Property") Ioc[~ relating to the real properly, ~ncJuding without limitation all minerals, oil, gas, geothermal and similar ma~ers (the
in Lincoln County, State of Wyoming: ,
See Exhibit 'A', which Is attached to this Mortgage and made a part of this Mortgage as if fully set forth
herein.
The Real Property or its address is commonly known as 247 Aspen Lane, Alpine, WY 83128,.
REVOLVING LINE OF CREDIT. Specifically, in addition to the amounts specified in the Indebtedness definition, and without limitation, this
Mortgage secures a revolving line of credit, which obligates Lender to make advances to Borrower so long as Borrower complies with all the
terms of the Note.
Grantor presently assigns [o Lender ali of Grantor's right, title, and interest in and to all present and future leases of the Properly and ail Rents from the
Properly. In addition, Grantor grants to Lehder a Uniform Commercial Code security interest in the Personal Propedy and Rents.
THIS MORTGAGE, INCLUDING THE ASSlGNBENT OF RENTS AND THE SECURITY INTEREST INTHE RENTS AND PERSONAL PROPERTY, IS
GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE
MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: OF ANY AND ALL OBLIGATION8 UNDER THIS
GRANTOR'S WAIVERS. Grantor'waives aJf rights or defenses arising by reason of any "one action" or "anti-deficiency, law, or any other law which
may prevent Lender from bringing any action against Grantor, including a claim for deficiency to the extent Lender is othe~fse entitled to a claim for
deficiency, before or after Lender's.commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale.
GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warrants that: (a) this Modgage is executed at Borrower's request and not at the
request of Lender; (b) Grantor has t~e,?l[ power, right and authority to enter into this Modgage and to hypothecate the Properly;
this Mortgage do not conflict with, or result in a d~fault under any agreement or other instrument binding upon Grantor and do not
continuing gasis infor~ation about Borrower's financial condition; and (e) Lender has (c) the provisions of
of any law regulation cou~ decree'or' order applicable to Grantor; (d) Grantor has result in a violation
established adequate means of obtaining from Borrower on a
without limitation the creditwodhiness of Borrower). made no representation to Grantor about Borrower (including
PAYMENT AND PERFORMANCE. Except as othe~ise provided in this Modgage, Borrower shall pay to Lender all Indebtedness secured by this
Mortgage as it becomes due, and Borrower and Grantor shall strictly perform all Borrower's and Grantor's obligations under this MoHgage.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Borrower and Grantor agree that Borrower's and Grantor's possession and use of
thePropedy shall be governed by the following 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 Properly; and (3) collect the Rents from the Properly.
Duty to Maintain. Grantor shall maintain the Properly in tenantable condition and promptly pedorm all repairs, replacements, and maintenance
necessary to preserve its value.
Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period o~ Grantor's ownership of the
Properly, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
Substance by any person on, under, about or from the Properly; (2) Grantor has no k~owiedge 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, (b) any use,
generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the
Property by any prior owners or occupants of the Properly, or (c) any actual or threatened litigation or claims of any kind by any person relating
to such matters; and (3) Except as previousty disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant,
contractor, agent or other authorized user of the Properly shall use, generate, manufacture, store, treat, dispose of or release any Hazardous
Substance on, under, about or from the Property; and (b) any such activity sha~[ be conducted in compliance with all applicable federal, state,
and local laws, regulations and Ordinances, [nclud]ng without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter
upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the
Property with this section of the Modgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be
construed to create any responsibility or liability on the pad of Lender to Grantor or to any other person. The representations and warranties
contained herein are based on Grantor's due diligence in investigating the Properly for Hazardous Substances. Grantor hereby (1) releases and
waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for c~eanup or other costs under any
such laws; and (2) agrees to indemnify and hold
which Lender may directly or ~ndirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use,
harmless Lender against any and a~l claims, losses, liab it~es, damages, pena ties, and ~xpenses
generations, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Properly,
whether or not the same was or should have been known to Grantor. The provisions of this section of the Modgage, including the obligation to
indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the f~en of this Mortgage and shall not be
affected by Lender's acquisition of any interest in the Properly, whether by foreclosure or othe~ise.
Nuisance, Waste. Grantor shafl not cause, conduct or permit any uisance nor commit, permit, or suffer any stripping of or waste on or to the
Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the
right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, sol!, gravel or rock products without Lender's prior written consent.
Removal of Improvements. Grantor sha~l not demolish or remove any Improvements from the Real Property without Lender's prior wri~en
cons~, As a co~ditJon to the removal o[ any Improvements, Lender may require Grantor to make arrangements satisfactory 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 Propedy at all reasonable times to attend to
Lender's interests and to inspect the Real Property far purposes of Grantor's compliar~ce with the terms and conditions of this Mortgage.
Loan No: 33008129~C~ ¢ ¢' ~{'~ MORTGAGE
~ ___ (Continued)
-' - -- ~- ~. · ~0 Page2
C°mPliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in
e~fect, of all governmental authorities applicable to the use or occupancy of tile Property, including without limtation, the Americans With
Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withheld compliance during any proceeding,
including appropriate appeals, so long as Grantor has notified Lender Jn writing prior to doing so and so long as, in Lender's sole opinion,
Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably
satisfactory to Lender, to protect Lender's interest.
Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set
forth above in this section, which from the character and use of the ~roperty are reaso!lably necessary to protect and preserve the Property.
DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Mortgage
upon the sale or transfer, without Lender's prick wrilten consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or
transfer" means the conveyance of Real Property or ahy right, title or interest in the Real Property; whether legal, beneficial or equ table; whether
voluntary or invo untary' whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a ~erm greater
than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust hotding title to the Real
Property, or by any other method of conveyance of an Interest in the Real Property. If any ~
company, transfer also includes any change In ownership of more than rantor s a corporation, partnersh p or limited liability
liability company interests, as the case may be, of such Grantor. However, this option shall not be exercised by Lender if such exercise is prohibited by
federal law or by Wyoming raw. twenty-f ve percent (25 ~) o.f the voting stock, partnership interests or limited
TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage:
Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges
and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for servibes
rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the interest of
Lender under this Mortgage, except for the Existing Indebtedness referred to in this Mortgage or those Iiens specifically agreed to in writing by
Lender, and except for the lien 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 in 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 flied 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 Le
Grantor shall name Lender as an add' ~., ......... rider and .shall ,satisfy any adverse judgment be e enforcem '
IbonaI ,,~,,,~u u,~uur any surety oond rurnJs d in thC ,- ....... for ent against the Property.
· he ....... u~ ~es~ proceeaings.
Evidence of Payment. Grantor shall uporf demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
Propedy.
Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced any services are furnished 'or any
materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services,
.or materials. Granter will upon request of Lender furnish to Lender advance 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 pad of this Mortgage: Maintenance of Insurance. Grantor'shall procure and maintain policies of fire
replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any
insurance with standard extended coverage endorsements on a
coinsurance clause, and with a standard mortgagee clause Jn favor of Lender. Grantor shail also procure and maintain comprehensive general
liability insurance ill such coverage amounts as Lender may request with Lender being named as additional insureds in such iiability insurance
policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption and boiler insurance
as Lender may require. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender.
Grantor shall deliver to Lender certificates of coverage from each insurer Containihg a stipulation that coverage will not be cancelled or diminished
without a minimum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such
notice. Each insurance policy al!
so shall inc ude an endorsement providin .
act, omission or default of Grantor or any other ncr ,~,, e~.^-,., ,L_ ~ ,g..that c.ov.era.ge in favor of Lender w I not be imp ' d in an w
, ~. s ........ ,u ,ue ~ea, h'roper[y De ,ocated ,n an area designated by thea'~ ~ ~aeY i~eYd~ay
Emergency Management AgenCy as a rector f t
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 Property iS located in a special flood hazard area, for the full unpaid principal balance of the
ispecial
loan and any prior Iens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Prograrn, or as
otherwise required by Lender, and to maintain such insurance for the term of the loan.
Application of Proceeds. Grantor shall promptly notify Lender of any loss or darnage 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 is impaired, Lender may, at Lender's election, receive and
retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or
the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the
damaged or destroyed Improvements fna manner satisfactory to Lender Lender shall, upon satisfactory proof of such expenditure, pay or
reimburse Grantor from the proceeds for the'reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds
which have not been disbursed within 180 days after thei[ 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 Modgage, then to pay accrued interest, and the remainder, if any, shall be
applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall
be paid to Grantor as Grantor's interests may appear.
Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and 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 Mortgage, or at any foreclosure sale of such Property.
Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance with the
insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the insurance provisions
under this Mortgage, to the extent compliance with the terms of this Mortgage would constitute a duplication of insurance requirement. If any
proceeds from the insurance become payable on loss, the provisions in this Mortgage for division of proceeds shall apply only to that portion of
tile proceeds not payable to the holder of the Existing Indebtedness,
LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails
to comply with any provision of this Mortgage or any Related Documents, including but not limited to Grantor's failure to comply with any obligation to
maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any amounts Grantor is required to discharge or
pay under this Mortgage or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems
appropriate, including but not limited to discharging or paying all taxes, liens, secudty interests, encumbrances and other claims, at any time levied or
placed on the Properly and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for
such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor.
All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) 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 Mortgage also will secure payment of these amounls. Such right shall be ill addition to all other rights 'and remedies to which Lender may be
entitled upon Default.
WARRANTY; DEFENSE OF TITLE. Tile following provisions relating to ownership of the Property are a part of this Mortgage:
Title, Grantor warrants that; (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and
encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in any title insurance
policy, title report, or final title opinion issued in favor'of, and accepted b~/, Lender in connection with this Mortgage, and (b) Grantor has the full
right, power, and authority to execute and deliver this Mortgage to Lender.
Defense of Title, Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the
lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under this
Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be
entitled to participate ill the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or
Loan No: 33008129 (Continued)
.... ~ .... Page 3
cause to be de voted to Lender such instruments as Lender may request from time to time to permit such participation.
Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws,
ordinances, and regulations of governmental authorities.
Survival of Representations :and Warranties. All representations, warranties, and agreements made by Grantor in this Mortgage shall survive
the execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such time as Borrower's
Indebtedness shall be paid in full. '
EXISTING INDEBTEDNESS. The following Provisions concerning Existing Indebtedness are a part of this Mortgage:
Existing Lien. The lien of this Mortgage securing the Indebtedness may be secondary and inferior to an existing lien. Grantor expressly
covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any default
under the instruments evidencing such indebtedness, or any default under any ·security documents for such indebtedness.
has priority over this Mortgage by which that agreement is modified, amended, extended, or renewed without the prior written consent of Lender.
No Modification. Grantor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security a~r~ement which
Grantor shall neither request nor accept any future advances under any such security agreement without the prior written consent of Lender.
CONDEMNATION. The following provisions rotating to condemnation proceedings are a part of this Mortgage:
Proceedings, If any proceeding in condemnation is flied, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such
steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal Pady in such proceeding, but Lender shall be' '
entitled to participate in the proceeding and to be represented in the procaeding by counsel'of its own choicel and Grantor will deliver or cause to
be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation.
Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain Proceedings or by any proceeding or purchase
in lieu of condemnation, Lender may at its election require that all or any portion ol the net proceeds of the award be applied to the Indebtedness
or the repair or restoration of the Property, The net proceeds of the award shall mean the award after payment of ail reasonab e costs expenses
and attorneys' fees incurred by Lender in connection with the condemnation. ,
IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees
and charges are a part of this Mortgage:
Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take
whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all
taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all
.taxes, fees, documentary stamps, and other charges for recording or registering t~is Mortgage.
Taxes. The following shall constitute taxes to which tbis section applies: (1) a specific tax upon this type of Mortgage or upon ail or any part of
'the Indebtedness secured by this Mortgage; (2) a specific tax on Borrower which Borrower is authorized or required to deduct from Payments
on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Modgage chargeable against the Lender or the holder of the
Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Borrower.
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 ar) Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor
either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with
Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of Ihis
Mortgage:
Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fxtures and Lender shall
have all of the rights of a secured party under the Uniform Commercial Code as amended from tir]qe to time.
Security Interest, Upon request by Lender, Grantor shall execute financing statements and take whatever other action is requested by Lender to
perfect and continue Lender's security interest in the Rents and Personal Properly. In addition to recording this Mortgage in the real property
records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this
Modgage 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 Property. Upon default Grantor shall assemble any
Personal Property not affixed t~,the Property in a manner and at a place reasonably convenient to Grantor and Le'nder and make it available to
Lender within three (3) days after ~eceipt 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 concerning the security interest
granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage.
FURTHER ASSURANCES; ATTORNEY. IN-FACT The followiug provisions relating to further assurances and attorney-in-fact are a part of this
Mortgage:
Further Assurances. At any time, and irom time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be
made, executed or delvered 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, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or
preserve (1) Borrower's and Grantor's obligations under the Note. this Mortgage, and the Related Documents and (2) the liens
Interests created by this Mortgage on the Property, whether now o~v .
agrees to the contrary in wrltlng, Grantor shall reimburse L,:,,*,~, ,~- ~e? o_~ here.after acqu,red by Grantor. Un/ess r~rohibited ~,,, ,...a.n..d. ,security
this paragraph. ~,,~, ~u~ u uos[s and exnen~,o; ....... ~, . .. ?. ~}, ~,=vv ur Lenoer
'' ~- ~oo ,,'..,UHrdU In connec~10n with the matters referred to in
Attorney-in-Fact. If Grantor fails 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 purpose of
making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to
accomplish the matters referred to ir) the preceding paragraph,
FULL PERFORMANCE. If Borrower pays all the indebtedness whe~ due, and otherwise performs all the obligations imposed upon 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 Property. Grantor will pay, if permitted by applicable law, any
reasonable termination fee as determined by Lender from time to time.
EVENTS OF DEFAULT, Each ol the following, at Lender's option, shall constitute an Event of Default under this Mortgage:
Payment Default. Borrower fails to make any payment when due under the Indebtedness.
Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any
o~ber payment necessary to prevent filing of or to effect discharge of any lien.
Other Defaults. Borrower or Grantor fails to comply with or to perform any other 'term, obligation, covenant or condition contained in this
Mortgage or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other
agreement between Lender and Borrower or Grantor.
Default in Favor of Third Parties. Should Borrower or any Grantor default under any loan, extension of credit, security agreement, purchase or
sales agreement, or any other agreement, in favor of' any other creditor or person that may materially affect any of Borrower's or any Grantor's
p~operty or Borrower's ability to repay the Indebtedness or Borrower's or Granior's ability to perform their respective obligations under this
Mortgage or any related document..
False Statements. Any Warranty, representation or statement made or furnished to Lender by Borrower or Grantor or on Borrower's or Grantor's
behal~ under this Mortgage or the Related Documents is false or misleading in any material respect either now or at the time made or furnished or
becomes false or misleading at any time thereafter. ,
Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral
document to create a valid and perfected security interest or lien) at any time and for any reason.
Loan No: 33008129 ' '~,,~ ~" MORTGAGE
(Continued)
Death or [nsolvenc Th ' · ~~ ~ g 4
Y, e d~ssolut~on of Grantor's (renard ess ~' .......... ~ ~- '
~ ,~, w~retner elec[~on To continue s made), any member withdraws from the limited
liability company, or any other termination of Borrower's or Grantor's existence as a going business or the death of any member, the Insolvency of
Borrower or Grantor, the appointment of a receiver for any part of Borrower's or Grantor's property, any assignment for the benefit of creditors, any
type 0f creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower or Grantor.
Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, Whether by iudicial proceeding, self-help,
repossession or any ether method, by any creditor of.Borrower or Grantor or by any governmental agency against any property securing the
Indebtedness. THis includes a garnishment of any of Borrower's or Grantor's accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower or Grantor as to the validity or reasonableness of the claim which is the
basis of the creditor or forfeiture proceeding a{~d if Borrower or Grantor gives Lender written notice of the creditor or forfeiture proceeding and
deposits ,with Lerlder monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, ill its sole discretion,
as being an adequate reserve or bond for the dispute.
Existing Indebtedness. The payment of any installment of principal or any interest on the Existing Indebtedness is not made within the time
required by the promissory note evidencing such indebtedness, or a default occurs under the instrument securing such indebtedness and is not
cured during any applicable grace period in such instrument, or any suit or other action is commenced to foreclose any ex/sting lien on the
Property.
Breach of Other Ag~'eement. Any breach by Bor¢0wer or Grantor under the terms of any other agreement between Borrower or Grantor and
Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or
other obligation of Borrower or Grantor to Lender, whether existing now or later.
Events Affecting Guarantor. Any of the preceding events occurs with respect .to any Guarantor of any Of the indebtedness or any Guarantor dies
or becomes incornpetent, or revokes or disputes the validity of, or liability under, any Gua~-~nty of the Indebtedness. l'n the event of a death,
Lender, at its option, may, but shall not be required, to, permit the Guarantor's estate to assume unconditionally the obligations arising under the
guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default.
Adverse Change. A material adverse change occurs in Grantdr's financial condition or Lender believes the prospect of payment or performance
of the Indebtedness is impaired.,
Right to Cure. if such a failure is curable and if Borrower or Grantor has not been given a notice of a breach of the same provision of this
Mortgage within the preceding twelve'(12) months, it may be cured (and no Event of Default will have occurred) if Borrower or Grantor, after
Lender sends written notice demanding cure of such failure: (a) cures the failure within fifteen (15) days; or (b) if the cure requires more than
fifteen (15) days, immediately initiates steps sufficient to cure the failure and thereafter continues and compretes all reasonable 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 rights or remedies provided by law: .
Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due
and Payable, including any prepayment penalty· which Grantor would be required to pay.
UCC Remedies, With respect to all or any ~art of the Personal Property, Lender shall '
the Uniform Commercial Code. ' '- have all the rights and remedies of a secured party under
Collect Rents. Lender shall have the right, without notice to BorroWer or Giantor, to take possession of the Property, including during the
pendency of foreclosure, whether'judicial or non-judicial, 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
tile Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates
Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the 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 made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in
person, by agent, or through a 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 Ooafperate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the
proceeds, over and above the, cost the receivership ago nst the ndebtedness. The receiver
Lender's right to the appointment of recever aha exist whether or not the apparent value of may serve witt~out bond if permitted by law
the Property exceeds the ndebtedness by a
substantial amount. Employmetlt by Lender shall not disqualify a person from serving as a receiver.
,Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest jn all or any part of the Property.
Nonjudicial Sale. Lender may foreclose Grantor's interest in all or in any part of the Property by non-judicial sale, and specifically by "Power of
sale" or "advertisement and Sale" foreclosure as provided by statute.
Deficiency Judgment. if permitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to
Lender after application of all amounts received from tile exercise of the rights provided in this section.
Tenancy at Sufferance. If Grantor remains 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 oi the purchaser
of the Property and sha, at Lender's o lion. e'
immediately upon the demand of Lender p ' Ither (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property
Other Remedies. Lender shall have all other rights and '
remedies provided in this Mortgage or the Note or available at law or in equity..
Sale of tile Property. To the extent permilted by applicable /aw, Borrower and Grantor hereby waives any and ail right to have the Properly
marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, irt one sale or by
separate saies. Lender shall be entitled to bid at any public sale on all or any portion of the Property.
Notice of Sale. Lender shall give Grantor reasonable notice of the time and place ct any public sale of the Personal Property or of tile time after
which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean notice given at least
ten (10) days before tile time of the sale or disposition. Any sale of the Personal Property may be made in cot!junction wilh any sale of the Real
Property.
Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an ejection to make
expenditures or to take action to Perform an obligation of Grantor under this Mortgage, after Grantor's failure to perform, shall not affect Lender's
right to declare a default and exercise its remedies. Nothing under this Mqrtgage or otherwise shall be construed so as to limit or restrict the rights
and remedies available to Lender fo!lowing an Event of Default, or in any way to limit or restrict tile rights and ability of Lender to proceed direcIly
against Grantor and/or Borrower and/or against any ether co-maker guarantor surety or endorser and/or to proceed against any other collateral
directly or indirectly securing the Indebtedness. ' ,
Attorneys' Fees; Expenses. if Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover
such sum as the court may adjudge reasonable as attorneys fees at trial and upon any appeal. Whether or not any court action is involved, and
to tile 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 i'ts rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate
from the date of the expenditure until repaid. Expenses covered by this paragraph inc ude, without limitation, however subject to any limits under
applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including reasonable attorneys'
fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any
anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors'
reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, ill 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 sale shall be given
in Writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited
with a nationa!ly 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 holder 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 party may change its address for
notices under this Mortgage by giving formal written notice to the other parties, specifying that the 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 address. Unless otherwise provided or
~.:~ ~ ,r ~'~-' MORTGAGE
Loan No: 33008129 (Continued) 2 ~ 3
==---- -- -- __ Page 5
required by law, if there is more than one Grantor, any notice given by Lender to arty Grantor is deemed to be notice given to all G~antors.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage:
Amendments. This Mortgage, together with ahy Related Documents, constitutes the entire understanding and agreement of the parties as to the
matters set fodh irt this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed by (he
party or parties sought to be charged or bound by the alteration or amendment.
Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a codified
statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require.
"Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the
Property.
Caption Headings. Caption headings in this Modgage are for convenience purposes only and are.not to be used to interpro[ or define tile
provisions of this Mortgage. '
Governing Law. This Mortgage will be governed by, construed and enforced 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.
Choice of Venue.' If there is a lawsuit, Grantor agrees upon Lender's request to submit to the, jurisdiction of the courts of Teton County, State of
Wyoming.
Joint and Several Liability. All obligations of B~rrower and Grantor under this Mortgage shall be joint and several, and ali references to Granto~
shall mean each and every Grantor, and all references to Borrower shalt mean each and every Borrower. This means that each Borrower and
Grantor signing below is responsible for all obligations in this Mortgage.
No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing and
signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A
waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lander's right otherwise to demand strict compliance
with that provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor,
shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender
is required under this Mortgage, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent
instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.
Sere]ability. If a court of competent jurisdiction finds any provision of this Mortgage to be iltegal, invalid, or unenforceable as to any person or
circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other person or circumstance.
feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be
so modified, it shall be considered deleted from this Modgage. Unless otherwise required by law, th-e illegality, invalidity, or unenforceability of any
provision of this Mortgage shall not affect the legality, validity or enforceability of any-other provision of this Mortgage.
Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any tii~e
held by or for the benefit of Lender in any capacity, without the written consent of Lender.
Successors and Assigns. Subject to any limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding upon
and Inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor,
Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the' Indebtedness by way of
forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness.
Time is of tile Essence. Time is bf the essence in the performance of this Modgage.
Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of the homestead exemption taws of the State of
Wyoming as to all Indebtedness secured by this Mortgage.
DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Mortgage. Unless specifically stated to
the contrary, all references to dollar amounts shall ,mean amoun!s in lawful money of the United. States of America. Words and terms used n the
singular shall include the plural, and the plural shall ' ' '
include the singular, as the context may require. Words and terms not otherwise defined in this
Mortgage sttall have the meanings attributed to such term~ in the Uniform Commercial Code:
Borrower. The word "Borrower" means Hadley Industries, LLC, a Wyoming Limited Liability Company, dba, ink On Paper, and all other persons
and entities signing the Note in,,whatever capacity.
Default. ~he word "Default" means the Default set fodh in this Mortgage in the section titled "Default".
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 the environment, including without limitation the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C. Section 960I, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub.
L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery
Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.
Event of Default. The 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.
Existing Indebtedness. The words "Existing Indebtedness" mean the indebtedness described in the Existing Liens provision of this Mortgage.
Grantor. The word "Grantorr, rueans William Hadley and Z. Elizabeth Puig.
Guarantor. 7'he word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness.
Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.
Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical
or infectious characteristics, may'cause or pose a present or potential hazard to human health or the environment when improperly used, treated,
stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very
broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the
Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction
thereof and asbestos.
Improvements. The word "Improvements" means ali existing and future improvements, buildings, structures, mobile homes affixed on tile Real
Property,. facilities, additions, replacements and other construction on the Real Proper~y.
Indebtedness. The word oeu[eoness means all principal, interest, and other amounts, costs and expenses payable under the Note or Related
Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for tile Note or ReFated Documents
and any amounts expended or advanced 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 word "Lender" means The Jackson State Bank, its successors and assigns.
Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender.
Note. The word "Note" means the promissory'note dated November 26, 2001, in the original principal amount of $100,000.00 from
Borrower to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the
promissory note or agreement.
Personal Property. The words "Personal Property" mean all equ pment, fxtures and other articles of personal property now or hereafter owned
by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of,
and all substitut(ons for, any of such property; and together with arf proceeds (including without limitation all insurance proceeds and refunds of
premiums) from any sale or other disposition of the Property.
Property. The Word "Properly" means collectively the Real Property and the Personal Property.
Real Property. The words "Real Properly" mean the real property, interests and rights, as fudher described in this Mortgage.
Related Documents. The words "Related Documents" mean all Promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreements, modgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
Loan No: 33008129 ~'3 ~ ~'~ ~ MORTGAGE
(Continued)
~- ~'~ 4 4 Page 6
agreements and documents, whether now or hereafter existing, executed in connection with the indebtedness.
Rents. The word "Rents" means ail present and I'uture rents, revenues, income, issues, royalties, profits, and other benefits derived from the
Property.
EACH
TERM~,.~RANTOR ACKNOWLEDGES HAVING READ.ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITs
GRAf~/? R:
COUNTY OF ~ ) SS
)
On this day before me, the undersigned Notary Public, personally appeared William Hadley and Z. Elizabeth Pulg, to me known to be the individuals
described in and who executed the Mortgage, and acknowledged that they signed the Mortgage as their free and voluntary act and deed, for the uses
and purposes therein mentioned.
Given u.~n.~r~y hand and official seal this
Notary Public in and for the State of
My commission exp,res
~HIBIT 'A'
Lot 39 of the Broken Wheel Ranch $~division, Lincoln County, Wyoming
beinq more particularly described ~s follows.
Beginning on the North boundary line of the ~Broken Wheel Ranch
Subdivision at a point which is North 89054,34,, East, 820,98 feet from
the Northwmmt Corner of the said S~divimion; said point also being
SoUth 31019, Ea~t, 1583.47 feet from the North ~ Corner of Section 19
and flAt, fling thence North 89o54,3~,, East, 342.42 feet to the Northeast
Corner of Lot 39;
thence South 93°00, West, 180.00 feet to the lot co, er common ~o
Lots 25, 26 and 39;
thence South 50o1~, West, 384.76 feet to the lot corner common to
Lots 23, 24 and 3S;
thence North 32o44, West 103.54 fee~;
thence North 24o25, East, 318.92 feet to the point of begi~ing.
L~9S AND EXCEPT any land contained in Warranty Deed recorded May 29,
~9~ in Book 29?PR on page ~70 of the records of thm Lincoln Co~ty
A p~rcel of land in Zhe S~EW of Section 15, T36N R
g stet of Deed .... ~ _ . . Lincoln Co~,, ~ .... er 117, as
~ ~ une 2nG Gay of February ~'~fS_ and E~-officio
being more particularly described as follow-Up: ~='~; saz~ parcel of land
Beqinning at a survey point located on ~he centerline of Aspen Lane as
platted in the ~ove mentioned Broken Wheel
SUdsy point being located at the most northerly corner of Lot 23 0~f
said , . Ranch S~division Plat; said
s~div~szon; thence alon9 the csn~erline of Aspen Lane, South
5°°3i' West, 97.05 feet;
thence Rorth 3=20, West, 67.43 feet;
thence North 34o34, East, 70.28 feet;
thence south 31o32, EasE, 74.q7 feet Eo the point of begi~in~o