Loading...
HomeMy WebLinkAbout88680188680 RECEIVED (,C U~':iTY CLERK ,~ ?,t 1 0 L i"~ I !: I 'i Space Above This Line For Recording Data MORTGAGE (With Future,Advance Clause) DATE AND PARTIES. The date of this Mortgage (Security Instrument) is January 8, 2003. The parties and their addresses are: MORTGAGOR: KLN PAINTING INC A Corporation A UTAH CORPORATION 421 EAST 7TH NORTH TREMONTON, Utah 84337 LENDER: FIRST NATIONAL BANK - WEST Organized and existing under the laws of the United States of America 100 Greys River Road Alpine, Wyoming 83128 83-0162601 1. CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debts and Mortgagor's performance under this Security Instrument, Mortgagor grants, bargains, conveys, mortgages and warrants to Lender, with the power of sale, the following described property: Lot 73 in Star Valley Ranch Plat 5, Lincoln County, Wyoming as described on the official plat thereof- The property is located in LINCOLN County at 229 HOLLY DRIVE, THAYNE, Wyoming 83127. Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, all water and riparian rights, wells, ditches and water stock and all: existing.and future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described (all referred to as Property). This Security Instrument will remain in effect until the Secured Debts and all underlying agreements have been terminated in writing by Lender. 2. MAXIMUM OBLIGATION LIMIT. The total principal amount secured by this Security Instrument at any one time will not exceed $100,000,00. This limitation of amount does not include interest and other fees and charges validly made pursuant to this Security Instrument. Als:o, this limitation does not apply to advances made under the terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. 3. SECURED DEBTS. This Security Instrument will secure the following Secured Debts: A. Specific Debts. The following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note, No. 764000482, dated January 8, 2003, from Mortgagor to Lender, with .a loan amount of $100,000.00 with an interest rate of 8.0 percent per yea. 'and maturing on February 1, 2004. One or more of the debts secured by this Security instrument contains a future advance provision, B. Sums Advanced. All sums advanced and expenses incurred by Lender under the terms of this Security Instrument. 4. PAYMENTS. Mortgagor agrees that all payments Under the Secured Debts will be paid when due and in accordance with the terms of the Secured Debts and this Security Instrument. 5, PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lander any notices that Mortgagor 'receives from the holder. KLN PAINTING INC Wyoming Mortga~le Initi WY/4XXXKeeIyO0600000003770022010803Y ©1996 Bankers Systems, Inc., St. Cloud, MN ~'~ Page 1 C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written consent. 6. CLAIMS AGAINST TITLE. Mortgagor will pay all t~xes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to thee Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor or :materials to maintain or improve the Property. 7. DUE ON SALE. Lender may, at its option, declare the entire balance of the Secured Debts to be immediately due and payable upon the creation of; or contract for the creation of, a transfer or sale of the Property. This right is subject to the restrictions imposed by federal law governing the preemption of stero due-on-sale laws, as applicable. 8. TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortgagor is an entity other than a natural person (such as a corporation or other organization), Lender may demand immediate payment if: A. A beneficial interest in Mortgagor is sold or transferred. B. There is a change in either the identity or number of members of a partnership or similar entity. C. There is a change in ownership of more than 25 percent of the voting stock of a corporation or similar entity. However, Lender may not demand payment in the above situations if it is prohibited by law as of the date of this Security Instrument. 9. WARRANTIES AND REPRESENTATIONS, Mortg,agor makes to Lender the following warranties and representations which will continue as long as this Secur ity Instrument is in effect: A. Power, Mortgagor is duly organized, and validly :existing and in good standing in all jurisdictions in which Mortgagor operates. Mortgagor has the power and authority to enter into this transaction and to carry on Mortgagor's business or activity as it is now being conducted and, as applicable, is qualified to do so in each ' jurisdiction in which Mortgagor operates. B. Authority, The execution, delivery and performance of this Security Instrument and the obligation evidenced by this Security Instrument are within Mortgagor's~ powers, have been duly authorized, have received all necessary governmental approval, will not violate a!ny provision of law, or order of court or governmental agency, and will not violate any agreement to wh chi Mortgagor is ~ party or to which Mortgagor is or any of Mortgagor's property is subject. C. Name and Place of Business. Other than previously disclosed in writing to Lender, Mortgagor has not changed Mortgagor's name or principal place of business within the last 10 years and has not used any other trade or fictitious name. Without Lender's prior written consent, Mortgagor does not and will not use any other name and will preserve Mortgagor's existing name, traide names and franchises. 10..PROPERTY CONDITION, ALTERATIONS AND INSpEcTION. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor will not commit or allow any waste, impairment, or deterioration of the Property. Mortgagor Will keep the Property free of noxious weeds and grasses. Mortgagor agrees that the nature of the occupancy andI use will not substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor, and of any loss or damage to the Property. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of inspecting the Property. Lender will give Mortgagor notice at the time of or before an inspection specifying a reasonable purpose for the inspection. Any inspection .of the ProperW will be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 11. AUTHORITY TO PERFORM, If Mortgagor fails to perform-any duty or any of the covenants contained in this Security Instrument, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. Lender's right to perform for Mortgagor will not create an obligation to :perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonabre manner, Lender may take all steps necessary to protect Lender's security interest in the Property, including completion of the .construction, 12. ASSIGNMENT OF LEASES AND RENTS. Mortgagor assigns, grants, bargains, Conveys, mortgages and warrants to Lender as additional security all the right, title and interest in the following (ail referred to as Property): existing or future leases, subleases, licenses, guaranties~ and any other written or verbal agreements for the use and occupancy of the Property, including' any extensionsl, renewals, modifications or replacements (all referred to~ as Leases); and rents, issues and profits (all referred to as Rents). In the event any item listed as Leases or Rent~' ' is determined to be personal property, this Assignment Will also be regarded as a security agreement. Mortgagor will promptly provide Lender with copies of the Leases and will certify these Leases are true and correct copies. The existing Leases will be provided on execution of i the Assignment, and all future Leases and any other information with respect to these Leases will be pr°vided immediately after they are executed. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is no[ in default. Upon default, Mortgagor will receive any Rents in trust for Lender and Mortgagor will not commingle the Rents with any other funds. Mortgagor agrees that this Security Instrument is immediately effective between Mortgagor and Lender. This Security Instrument-will remain effective during any statutory redempt on period until the Secured Debts are satisfied. As long as this Assignment is in effect, Mortgagor warrants and represe~[s that no default exists under the Leases, and the parties subject to the Leases have not violated any applicable law on leases, licenses and landlords and tenants. 13. DEFAULT. Mortgagor will be in default if any of the following occur: KLN PAINTING INC Initials ~ Page 2 Wyoming Mortgage WY/4XXXKeely00600000003770022010803Y ~1996 Bankers Systems, Inc., St. Cloud, rvlN F~--'~'~;~.~ A. Payments. Mortgagor fails to make a payment in :full when due. B. Insolvency or Bankruptcy. Any legal entity obligated on the Secured Debts makes an assignment for the benefit of creditors or become insolvent, either becaiuse its liabilities exceed its assets or it is unable to pay its debts as they become due; or it petitions for protection under federal, state or local bankruptcy, insolvency or debtor relief laws, or is the subject of a petition or action under such laws and fails to have the petition or action dismissed within a reasonable period of time not to exceed 60 days. C. Business Termination. Mortgagor merges, disso ves, reorganizes, ends its business or existence, or a partner or majority owner dies or is declared legally incompetent. D. Failure to Perform. Mortgagor fails to perform any condition or to keep any promise or covenant of this Security Instrument. E. Other Documents., A default occurs under the terms of any other transaction document. F. Other Agreements. Mortgagor is in default on any other debt or agreement Mortgagor has with Lender. G. Misrepresentation. Mortgagor makes any verbal or written statement or provides any financial information that is untrue, inaccurate, or conceals a material fact =at the time it is made or provided. H. Judgment. Mortgagor fails to satisfy or appeal any judgment against Mortgagor. I, Forfeiture. The Property' is used in a manner or for a purpose that ~:hreatens confiscation by a legal authority. J. Name Change. Mortgagor changes Mortgagor'si name or assu~es an additional name without notifying Lender before making such a change. K. Property Transfer. Mortgagor transfers all or a substantial part of Mortgagor's money or property. This condition of default, as it relates to the transfer of the Property, is subject to the restrictions contained in the DUE ON SALE section, L. Property Value. The value of the Property declines, or is impaired. M. Material Change. Without first notifying Lender, there is a material change in Mortgagor's business, including ownership, management, and financial conditions. N. Insecurity. Lender reasonably believes that Lender: is insecure. 14. REMEDIES. Lender may use any and all remedies Lender has u~;c;cr state or federal law or in any instrument evidencing or pertaining to the Secured Debts, including, without Iimit~[ion, the power to sell the Property. Any amounts advanced on Mortgagor's behalf will be immediately due and may be added to the balance owing under the Secured Debts. Lender may make a claim for any and all insurance benefits or refunds that may be available on Mortgagor's default. Subject to any right to cure, required time schedules or iany other notice rights Mortgagor may have under federal and state law, Lender may make all or any part of the amount owing by the terms of the Secured Debts immediately due and foreclose this Security Instrument in a manner I~rovided by law upon the occurrence of a default or anytime thereafter. Upon any sale of the Property, Lender will make and deliver a special or limited warranty deed that conveys the property sold to the purchaser or purchasers. Under this special or limited warranty deed, Lender will covenant that Lender has not caused or allowed a lien or an encumbrance to burden the Property and that Lender will specially warrant and defend the Property's title of the plurchaser or purchasers at the sale against all lawful claims and demand of all persons claiming by, through or under Lender. The recitals in any deed of conveyance will be prima facie evidence of the facts set forth therein. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on the Secured Debts after the balance is due or is accelerated or afler foreclosure proceedings are filed will not constitute a waiver of Lender's right to require full and ;complete cure of any existing default. By not exercising any remedy, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 15. COLLECTION EXPENSES AND ATTORNEYS' FEES:. On or after Default, to the extent permitted by law, Mortgagor a,grees to pay all expenses of collection, enforcement or [~rotection of Lender's rights and remedies under this Security Instrument. Mortgagor agrees to payi expenses for Lender to inspect and preserve the Property and for any recordation costs of releasing the Property from this Security Instrument. Expenses include, but are not limited to, reasonable attorneys' fees after default and referral to ~n attorney not a salaried employee of the Lender. These expenses are due and payable immediately. If not I~aid immediately, these expenses will bear interest from the date of payment until paid in full at the!highest interest rate in effect as provided for in the terms of the Secured Debts. To the extent permitted by the United States 13ankruptcy Code, Mortgagor agrees to pay the reasonable attorneys' fees Lender incurs to collect = the Secured Debts as awarded by any court exercising jurisdiction under the Bankruptcy Code. 16. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental La~ means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerolus or potenti~lly dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substance," "hazardous .waste," "hazardous substance,TM or "re~j~lated substance" under any Environmental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged ~n wridng to Leander, no Hazardous Substance is or will be located, stored or released on or in the Property. This restriction does not apply to small quantities, of Hazardous Substances that are generally recognized to be appropri~te for the normal use and maintenance of the Property. KEN PAINTING INC Wyoming Mortgage WY/4XXXKaalyO0600000003770022010803Y ~1996 Bankers Systems, [nc., St, Cloud, MN ~55~'~-~"Z~," InitialS. p~ B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are, and will remain in full compliance with anyiapplicable Env;~o~mental Law. C. Mortgagor will immediately notify Lender if a release or U~reaten~d release of a Hazardous Substance occurs on, under, or about the Property or there is a violation of a~y Environmental Law concerning the Property. In such an event, Mortgagor will take all necessary remed, a action in accordance with any Environmental Law. D, Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any pending or threatened investigation, claim, or proceed n§ relating ~o the release or ~hreatened release of any Hazardous Substance or the violation of any Environmental Law. 17, CONDEMNATION. Mortgagor will give Lender prompt notice of ~r~'~ pending or threatened action by private or public entities to purchase or take any or all of the Proplerty through cor~demnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mbrtgagor's nam~ in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such l~roceeds will be considered payments and will be applied as provided in this Security Instrument. This as.~ignm~.~ of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or othelr lien 18. INSURANCE. Mortgagor agrees to keep the Property insured agains~ the risks reasonably associated with the Property, Mortgagor will maintain this insurance in the amou~ts Lender requires. This insurance will last until the Property is released from this Security Instrument. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured Debts, MOrtgagor may choose the insurance company, subject to Lender's approval, which will not be unreasonably withheld. All insLirance policies and renewals will include a standard "mortgage clause" and, where applicable, "loss !payee clause." Mortgagor will give Lender and the insurance company immediate no,ice of any loss. All insurance proceeds will be applied to restoration or repair of the Property or to ~he Secured Debts, at Lender's option. If Lender acquires the Property in damaged condition, Mortgagor's rights tolany insurance t~olicies and proceeds will pass to Lender to the extent of the Secured Debts, Mortgagor will immediately notify Lender of cancellation Or termination of insurance. If Mortgagor fails to keep the Property insured Lender may obtain insurance to protect Lender's inLy:rest in the Propert'y. This insurance may include coverages not originally required of Mortgagor, may be written by a company other than one Mortgagor would choose, and may be written at a higher rate than Mortgagor could obtain if Mortgagor purchased the insurance. 19. ESCROW FOR TAXES AND INSURANCE. Mortgagor will ~)ot be r~-iuired to pay to Lender funds for taxes and insurance in escrow. 20, CO-SIGNERS, If Mortgagor signs this Security Instrument bLlt does not sign the Secured Debts, Mortgagor does so only to mortgage Mortgagor's interest in the iProper[y to .~;ecure payment of the Secured Debts and Mortgagor does not agree to be personally liable on the Secured Deb[s. if this Security Instrument secures a guaranty between Lender and Mortgagor, Mortgagor agrees 'to waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any parW indebted under the obligation. These rights may include, but are not limited to, any anti-deficiency or one-action laws. 21. WAIVERS, Except to the extent prohibited by law, Mortgagor waives all homestead exemption rights relating to the Property. 22. APPLICABLE LAW. This Security Instrument is governed by th~~, laws of Wyoming, except to the extent otherwise required by the laws of the jurisdiction where tl)e Property is located, and the United States of America. 23. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS Each Mortgagor's obligations under this Security Instrument are independent of the obligations of any other Mor[gagor. Lender may sue each Mortgagor individually or together with any other Mortgagor, Lender may release ~ny par[ of the Property and Mortgagor will still be obligated under this Security Instrument for the remain:lng ProperW. The duties and benefits of this Security Instrument will bind and benefit the successors and assigns of Lender a~'~d Mortgagor. 24. AMENDMENT, INTEGRATION AND SEVERABILITY. This Se.c~ritv i?~strument may not be amended or modified by oral agreement, No amendment or modification of thls SecuriW Instrument is effective unless made in writing and executed by Mortgagor and Lender, This Security Instru~nent i~; '[l~e complete and final expression of the agreement. If any provision of this Security Instrument i~ unenrorceal~h.% then the unenforceable provision will be severed and the remaining provisions Will still be enforceable. 2!5. INTERPRETATION. Whenever used, the singular includes ~he plu~.?~l and the plural includes the singular, The section headings are for convenience only and are not to; be used to h')[erpret or define the terms of this Security Instrument, ' 28. NOTICE, FINANCIAL REPORTS AND ADDITIONAL :DOCL~IVIENT';:;. Unless otherwise required by law, notice will be given by delivering it or mailing it by first Class mail to [i~e appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated i]~ writing. Notice to one party will be deemed to be notice to all parties, Mortgagor will inform Lender in! writing of ~.,¥~ change in Mortgagor's name, address or other application information. Mortgagor will provide Lender any (h~ancial statements or information Lender requests. All financial statements and information Mortgagor gi¥,:~.~ Lender will be correct and complete. Mortgagor agrees to sign, deliver, and file any additional docun~ents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's ioblig~;~ions u~der this Security Instrument and to confirm Lender's lien status on any Property, Time is of the essence KLN PAINTING INC Wyoming Mortgage WY/4XXXKeely0060000000377002201OSO3Y ©1996 Bankers Syste[r~s, Ir~c., St. '-:~oud, MN L~" Initials ~ -Page SIGNATURES. Ry signing, Mortgagor agrees to the ret-ns and covel~,n'[s comained in this Security Instrument. Mortgagor also acknowledges receipt of a copy of this S!ecuriW MORTGAGOR: LENDER: First ,N~Bank- West_ Penny Jone;~i~R .f~dl Estate Loan Officer ACKNOWLEDGMENT, (Business or Entity) %this instrument was acknowledged' before me t~s -- KEVIN L NESTER as PRESIDENT of KLN PAINTING INC. My commission expires: ~-/g"),4~ OF ' .. day of ~ (Lender Acknowledgment) This instrument was ackn~wledge~before me t~ (1~ ~ day or ~ Penny Jones as Real Estate Loan Officer of First Nati'onal~ Bank - Wes(. My commission expires: [~ , by by KLN PAINTING INC Wyoming Mortgege Initials~_. WY/4XXXKeely00600000003770022010803Y ©1996 Bankers Systems, Inc,, SI. Page 5