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88888E
MORTGAGE
This mortgage is made as of the ~)~4~-day of March,
William B. Watega and Marie E. Stilson (the "Mortgagor"),
Pendleton and Shelly J. Pendleton (the "Mortgagee").
RECEIVED
LI/'~COLN OOUNTY CLERK
I ' 7 ~ ' ' ~ ~J ' ,7, . ' .' ' "-'" '~ L i k
2003, b~n "'~:7
and Val Dee
WITNESSETH, that to secure the payment of an indebtedness in the sum
of Five Hundred Forty Seven Thousand Eight Hundred Fifty Dollars
($547,850.00), together with interest thereon at the rate of seven percent (7%) per
annum, being due and payable in due and payable in four (4) equal annual
installments, of principal, in the amount of One Hundred Thirty Six Thousand
Nine Hundred Sixty Two Dollars and Fifty Cents ($136,962.50) each, plus accrued
interest, the first of such installments of principal plus interest being due and
payable on the 21st day of March, 2004, with like installments being due and
payable on the same day of each year for three (3) years thereafter, with the final
installment to include the entire remaining principal balance due, together with
all accrued and unpaid interest and costs, being due and payable on the 21st day
of March, 2007, and with all payments to be credited first to interest to the date
paid and the balance, if any, to be credited against principal, all as evidenced by a
Promissory Note of even date herewith (the ultimate maturity date of which is
the '21st day of March, 2003) and all renewals, modifications and extensions
thereof, the Mortgagor hereby mortgages to the Mortgagee the following
described real estate, situated in the County of Lincoln, State of Wyoming, to-wit:
See Exhibit "A" attached hereto and by this reference made a part
hereof.
Together with and including all oil, gas, and other mineral rights
owned by Grantor, 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.
And the Mortgagor covenants with the Mortgagee as follows:
1. Payment. The Mortgagor shall pay the indebtedness hereby
secured.
2. Prepayment. The Mortgagor shall have the privilege of paying
principal sums plus accrued interest, at any time without premium or penalty of
any kind, and it is understood and agreed that any such prepayment shall be
credited first to accrued interest and the balance to principal in the inverse order
of when due.
3. Preservation of Property. The Mortgagor shah not do anything on
or in connection with the Property which may impair Mortgagee's security
hereunder. Mortgagor will not commib permit or suffer any waste, impairment,
or deterioration of the Property and the Property shall be continuously
maintained, in good and sightly order, repair and condition bY Mortgagor at his
expense.
4. Taxes and Other Charges. The Mortgagor shall pay all ground
rents, taxes, assessments, sewer rents, water rates, all governmental, quasi-
governmental charges (e.g., homeowner association assessments) and other
lawful charges on or against the Property.
5. Partial Release of Mortgage. Mortgagor shall be entitled to'partial
releases from this Mortgage for portions of the real property upon the following
conditions:
(a)
(b)
(c)
(d)
(e)
All costs of obtaining a partial release, including survey costs,
preparation of .documentation, application fees, if any, for lot splits
or other governmental approval, and additional costs of any kind
attributable to the partial release shall be the responsibility of
Mortgagor.
It shall be Mortgagor's sole and absolute responsibility to comply
with all applicable governmental regulations concerning division or
subdivision of parcels.
Payment by Mortgagor toward the principal balance due on this
Mortgage over and above the down payment shall be due and
payable upon closing of a conveyance to any third party as follows:
(i) During the period of March 21% 2003 through March
21, 2004, the sum of $4,000.00 per acre for each acre of the
parcel for which a release is requested; and
(ii) during the period of March 22-d, 2004 through March
21, 2005, the sum of $3,000.00 per acre for each acre of the
parcel for which a release is requested; and
(iii) during the period of March 22ha, 2005 through March
21, 2006, the sum of $2,000.00 per acre for each acre of the
parcel for which a release is requested; and
(iv) during the period of March 22ha, 2006 through March
21, 2007, the sum of $'1,500.00 per acre for each acre of the
parcel for which a release is requested.
Mortgagor shall be given credit against any partial release payment
required for principal payments made commencing with the first
installment of principal due on or before the 21st day of March 2004.
For any transfers that require a partial release payment in excess of
the credit available from principal payments made then Mortgagor
shall pay at the rate set forth above for the partial release for that
portion of the proposed sale and partial release which exceeds the
credit available. Notwithstanding the prepayment language set
forth herein any payments for partial releases shah be credited
against the next principal installment due. No credit against partial
releases shall be given for the initial down payment for the property.
The remaining portion of the property subject to this Mortgage after
the granting of any partial release shall have the benefit of all access,
ingress, egress and utility easements available to serve any portion of
the property subject to this Mortgage as of the date of execution of
the partial release of mortgage and no portion of the property subject
to this Mortgage shall under any circumstance be left without legal
roadway and utility access.
6. Payments by Mortgagee. In the event Mortgagor defaults in the
payment of any lawful charges against the Property or insurance premiums,
Mortgagee, at its sole option and discretion; may pay same. Mortgagor covenants
and agrees to reimburse such sums expended by Mortgagee with interest at the
607
rate of eighteen percent (18%) per annum, and the same shall constitute a lien
against the Property with priority as of the date hereof.
7. Late Payment Fee. If any default is made in the payment of any of
the above installments of principal and interest, and such default is not cured
within ten (10) days of when due, then a late fee in the amount of ten percent
(10%) of the amount due shah also be due.
8. Statement. The Mortgagor, within twenty (20) days upon request in
person or within thirty (30) days upon request by mail, will furnish a written
statement duly acknowledged verifying and acknowledging the amount
outstanding on the indebtedness secured by this mortgage.
9. Notice. All notices shall be sent by certified mail, shall be deemed
given when mailed, and shall be addressed as follows or at such other place as
may be designated by either party from 'time to time in writing in the same
mamner as provided herein:
Mortgagor:
William B. Watega
976 Cherry Orchard Loop
Hamilton, MT 59840
Marie E. Stilson
1014 Cherry Orchard Loop
Hamilton, MT 59840
Mortgagee:
Val Dee Pendleton and Shelley J. Pendleton
1620 Muddy String Road
Thayne, Wyoming 83127
10. Warranty. The Mortgagor warrants the title to the Property.
Mortgagor shall furnish and pay for title insurance coverage insuring
Mortgagee's interest in the Property to the full amount of the indebtedness
secured hereby.
11. Default and Acceleration. The entire indebtedness secured hereby
shall become due and payable at the option of the Mortgagee:
(a)
(b)
(c)
(d)
Upon default in the payment of any amount hereby secured or
payable hereunder (regular installments of principal and interest,
late charges, lawful charges against the Property, amounts paid by
Mortgagee, attorney fees, collection costs, etc.) and failure to cure
such payment default within twenty (20) days of written notice
thereof; or
After failure to exhibit to the Mortgagee, within thirty (30) days
after demand, receipts showing payment of all ground rents, taxes,.
water rates, sewer rents, governmental charges, quasi-governmental
charges and assessments; or
After the assignment of the rents of the Property or any part thereof
without the written consent of the Mortgagee, except as otherwise
provided herein; or
If the Mortgagor fails to keep, observe and perform any of the other
covenants, conditions or agreements contained in this mortgage (not
cured within prescribed time limits); or
608
(e)
After failure to comply with any requirement or order or notice of
violation of law or ordinance issued by any governmental or quasi-
governmental authority claiming jurisdiction over the Property
within three (3) months from the issuance thereof; or
(0
Upon sale or transfer of an interest in the Property without
Mortgagee's consent as herein provided; or
(g)
Anything in this mortgage contained to the contrary
notwithstanding, if it shall be necessary for Mortgagee or
Mortgagee's agent to notify Mortgagor in writing of default under
this mortgage for failure to make the required payments in a timely
manner four (4) times during any twelve month period, then the
Mortgagee shall not be obligated to provide any further notice of
default and the mortgage will, at the option of Mortgagee, be in
default (and all amounts secured hereby and payable hereunder
shall be fully due and payable) and the Mortgagee shall have all
remedies available to it as set forth herein.
12. Foreclosure Upon Default. In the event of default and acceleration
as herein provided, the Mortgagee may proceed, pursuant to the laws of the' State
of Wyoming by judicial foreclosure or advertisement and sale, to foreclose on and
sell the Property, and out of the proceeds of such sale shall pay all sums secured
hereby, including all costs and expenses of the foreclosure proceeding.
13. Remedies. All remedies provided in this mortgage are distinct and
cumulative to any other right or remedy under this mortgage or afforded by law
or equity which may be exercised concurrently, independently or successively.
Any forbearance by Mortgagee in exercising any right or remedy hereunder, or
otherwise afforded by applicable law, shall not be deemed a waiver or preclude
the exercise of any such right or remedy at any time.
14. Receiver. The holder of this mortgage, in any action or procedure to
foreclose it (judicial, by power of sale or otherwise), shall be entitled to the
appointment of a receiver. The Mortgagor hereby consents that, in the event a
receiver is appointed, Mortgagee may be the receiver.
15. Possession. In the event of default by Mortgagor, the Mortgagee is
entitled to possession of the Property during the pendency of any foreclosure
proceedings and during any period of redemption, if applicable, under the
statutes of the State of Wyoming.
16. Attorney and Foreclosure Expenses. If any action or proceeding be
commenced, to which action or proceeding the Mortgagee is made a party due to
its interest in the Property, or in which it becomes necessary to initiate collection
of the indebtedness hereby secured or foreclosure proceedings (whether or not
suit is necessary), all sumS paid by the Mortgagee for the expense of any litigation
or proceeding to prosecute or to defend the rights and lien created by this
mortgage or to foreclose this mortgage or to collect the indebtedness hereby
secured (including reasonable attorneys' fees), shall be paid by the Mortgagor,
together with interest thereon at the rate of eighteen percent (18%) per annum,
and any such sums and the interest thereon shah be a hen on the Property, prior
to any right, or title to, interest in or claim upon the Property attaching or
accruing subsequent to the lien of this mortgage, and shall be deemed to be
secured by this mortgage.
17. Assignment of Rents. The Mortgagor hereby assigns to the
Mortgagee the rents, issues and profits, if any, of the Property as further security
for the payment of the indebtedness secured hereby, and the Mortgagor grants to
the Mortgagee the right to enter upon the Property or any part thereof, and to
apply the rents, issues and profits, after payment of all necessary charges and
expenses, on account of the indebtedness hereby secured. This assignment and
grant shall continue in effect until all sums secured by this mortgage are paid.
The Mortgagee hereby waives the right to enter upon the Property for the
purpose of collecting said rents, issues and profits, and the Mortgagor shall be
entitled to collect and to receive said rents, issues and profits; provided that such
right of the Mortgagor may be revoked by the Mortgagee upon any default (not
cured within the applicable cure period) hereunder, without notice:
18. Deficiency. In the event the Property is sold at foreclosure (judicial,
power of sale, or otherwise according to law) and the proceeds are insufficient to
pay the indebtedness secured hereby, Mortgagor shall remain liable for the
unpaid balance and Mortgagee will be entitled to a deficiency judgment.
19. Due-On-Transfer. If all or any part of the Property or any equitable
or beneficial interest therein is sold or otherwise transferred by Mortgagor
without Mortgagee's prior written consent, which shall not be unreasonably
withheld, excluding (a) the creation of a purchase money security interest for
appliances, (b) a transfer by descent, devise or operation of the law upon the
death of any owner, or (c) the grant of any leasehold interest to the Property of
three (3) years or less not containing an option to purchase, Mortgagee may, at
Mortgagee's sole option, declare all sums secured hereby to be immediately due
and payable.
20. Set-Off. Mortgagor shall not be entitled to set-off or any similar
rights against amounts secured hereby.
21. Miscellaneous. This mortgage may not be changed or terminated
orally. The covenants, agreements and conditions contained in this mortgage
shall run with the land and bind the Mortgagor, the heirs, successors and assigns
of the Mortgagor, and all subsequent owners, encumbrancers, tenants and
subtenants of the Property, and shall inure to the benefit of the Mortgagee, the
personal representatives, successors and assigns of the Mortgagee, and all
subsequent holders of this mortgage. The word "Mortgagor" shall be construed
as if it read "Mortgagors" and the word "Mortgagee" shall be construed as if it
read "Mortgagees" whenever the sense of this mortgage so requires. Whenever
used, the singular shall include the plural, the plural the singular and the use of
any gender shall include all genders. This mortgage shall be governed by the
laws of the State of Wyoming.
IN WITNESS WHEREOF, this mortgage has been duly executed by the
Mortgagor, hereby relinquishing and waiving all rights under and by virtue of
the homestead exem ~tion laws of the State of Wyoming.
William B. Watega /'
5
610
STATE OF Wyoming )
) SS.
COUNTY OF Lincoln )
Marie E. Sfilson
The foregoing instrument was acknowledged before me by William B.
Watega this 28th day of Hatch , 2003.
Witness my hand and official seal.
Notary pUblic
My Commission Expires:
February 2, 2006
~ ~ · NOtt~t PUBUC
STATE OF Wyoming )
) SS.
COUNTY OF Lincoln )
The foregoing instrument was acknowledged before
Shlsonthis 28th day of garch ,2003.
by her Attorney in fact William B. Watega
Witness my hand and official seal.
me by Marie E.
My Commission Expires:
Notary Public
~EU. EY~ NOt, mY P~UC ]
February 2, 2006 ~
6
Exhibit "A"
T34N RllSW of the 6th P.M., Lincoln County, Wyoming
Section 7: SE~A/qE~; NE~NE~; and SW~NE~;
Section 8:NW~/C~W~;
ALSO
Part of Section 7, T34N Rll8W of the 6th P.M., Lincoln County,
Wyoming being more particularly described as follows:
COMMENCING at a point which is the Northeast corner of the SW~ of
said Section 7 and running thence West 160 rods;
thence South 20 feet;
thence East 161 rods;
thence North 20 feet;
thence West l'rod to the POINT OF BEGINNING.
ALSO
Part of the SW~AIqW~ of Section 8, T34N Rll8W of the 6th P.M.,
Lincoln County, Wyoming being part of the land referred to in
the Warranty Deed recorded in Book 326PR on page 497 in the
Office of the Lincoln County Clerk the metes and bounds being
more particularly described as follows:
BEGINNING at the B.L.M. type monument marking the Lloyd B.
Baker PE/LS 698, 2002 location for the Northwest corner
of said SW~ANW~ of said Section 8;
thence S 89o53'56'' E, along the North line of said SW~ANW~,
1313.70 feet to the B.L.M. type monument marking the
Northeast corner of said'SW~/dxFW~;
thence S lo00'3i'' W, along the East line of said SW~ANW~,
767.27 feet to an Aluminum Cap on an Iron Pipe;
thence N 89o44'49'' W, 1309.56 feet to an Aluminum Cap on an
Iron Pipe marking a point in the West line of said
SWh~W~;
thence N 0042'07'' E, along said West line, 763.75 feet to the
POINT OF BEGINNING.