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HomeMy WebLinkAbout889254This Instrument Prepared By And After Recording Return To: The Prudential Insurance Co. Attn: William M. Tarnow, Esq. 801 Warrenville Road Suite 150 Lisle, Illinois 60532 LINCO~,!q ~,..1 TY CLERK 517 '" BOOK PR PAOB Loan No. 7-505-839 MODIFICATION AND CROSS DEFAULT/COLLATERALIZATION AGREEMENT [THIS DOCUMENT HAS BEEN PREPARED IN DUPLICATE ORIGINAL COPIES TO PERMIT SIMULTANEOUS RECORDING IN MULTIPLE STATES/COUNTIES. ALL SUCH DUPLICATE ORIGINAL COPIES, WHEN TAKEN TOGETHER, CONSTITUTE BUT ONE AND THE SAME INSTRUBLENT:] THIS AGREEMENT, made this 14th day of April 2003 by and between THE PRUDENTIAL INSURANCE COMPANY OF AMERICA,' a New Jersey corporation (hereinafter called "Mortgagee'J); and REES__ LAND & LIVE-STOCK COMPANY, a Utah corporation a/Ida REES LAND AND LIVESTOCk-COMPANY and CHARLES M. REX, Individually, and CONNIE P. REX, individually, (hereinafter collectively called "Maker"), WITNESSETH: WHEREAS, Mortgagee is the owner and holder of a Promissory Note dated April 15,1994 in the original principal sum of NINE HUNDRED FIFTY THOUSAND AND NO/100 ($950,000.00) DOLLARS, (the "Old Note"), which Note is secured by a Mortgage and a Deed of Trust, both of even date, with the Deed of Trust recorded in the real estate records of Rich County, Utah on April 15, 1994. in Book V6 at Page 409 as Document No. 45405 and the Mortgage recorded in Lincoln County, Wyoming on April 15, 1994 'in Book 348PR at Page 299 as File No.?8156Z The Deed of Trust was assigned to Mortgagee by an Assignment recorded May 2, 1994 in book W6 at Page 022 as Document No. 45459 and the Mortgage was assigned to Mortgagee by an Assignment recorded in Lincoln County, Wyoming on May 2, 1994 in Book 3491~at Page 546 as File No. 782387 (the Deed of Trust and the Mortgage together with all rights and interests described therein are hereinafter collectively referred to as the "Old Mortgage") encumbering the real property described on Exhibit "A" attached hereto and incorporated herein by this reference (the "Mortgaged Premises"); and Loans 7-505-839 & 7-609~057 1 WHEREAS, on April 14, 2003 Maker executed and delivered a Fixed Semi-Annual Payment Note in the original principal sum of Eight Hundred Five Thousand and No/100 (U.S.$$05,000.00) Dollars (the "New Note") which New Note is or will be secured by one Deed of Trust on real property located in Rich County, Utah and by one (1) Mortgage on real property located in Lincoln County, Wyoming as described be]ow. To facilitate Maker's ability to secure the new loan, Maker requested that Mortgagee agree to purchase an interest in some, or aH, of the New Note and the other related documents securing the New Note from Maker's lender thereon and Mortgagee agreed to purchase the New Note described herein, or an interest therein, on the express condition that Maker agree and consent to modify the Old Note and the Old Mortgage so that such instruments are fully cross-defaulted and cross coLlateralized with the New Note and the Deeds of Trust and the Mortgage securing the New Note which are more particularly described below; and WHEREAS, subsequent to recording the Old Mortgage and as part of the Security for the New Note, Maker executed and dehvered a certain Deed of Tr~ust a.nd a _Mortgage to Mortgagee ~}~h Deed of Tru~tL~vas recorded in Rich Countjf,,Ifltah on /4[~Vi ! ! ~ , 2003 in Book [~{ 't at Page I/~ ~ as Documen~t No. l/)/D .c-)~/ and the I~Iortgage was r corded in Lincoln Co_u/~ky~ W_xomlng on ~1 I.~· , 2003 in Book ,~)l ~ at Page ~1 as File No. ~C]~.~ which Dee~ of q~ru~t and Mortgage, taken ~oge~her, secure the-New Note and are collectively referred to herein as the "New Mortgage"; and NOW, THEREFORE, in consideration of the premises and of the mutual agreements herein contained and other' good and valuable consideration, the receipt and sufficiency of which is hereby expressly acknowledged by each of the parties, and upon the express conditions that the hen of the Old Mortgage held by Mortgagee is a vahd, first and subsisting hen on the Mortgaged Premises and that the execution of this Agreement will not impair the Old Note and/or the hen of the Old Mortgage and that, as represented to the Mortgagee by Maker, there is no existing second mortgage or other hen subsequent to the hen of the Old Mortgage held by Mortgagee (excepting only the New Mortgage referenced above) nor any outstanding contract to purchase, for breach of which conditions, or either of them, this Agreement shall, at Mortgagee's sole option, not take effect and shall be voidable and/or may be declared void and of no force and effect, IT IS HEREBY AGREED AS FOLLOWS: 1. The foregoing Recitals are incorporated into and made a part of this Modification Agreement by this reference. 2. The Old Note is hereby modified to add the following provision: Cross-Default. On April 14 , 2003, the Maker executed a certain Promissory Note in favor of Mortgagee in the original principal sum of Eight Hundred Five Thousand and No/100 ($805,000.00) Dollars (the "New Note") which New Note is secured by a Deed of Trust and a Mortgage lien on real property and improvements located in Rich County, Utah and in Lincoln County, Wyoming (collectively the "New Mortgage"). Maker acknowledges Loans 7-505-839 & 7 609-057 and agrees that a default or breach by Maker under this, the Old Note, and/or the Old Mortgage securing this Note shall also constitute a default or breach under the New Note and/or the New Mortgage. Likewise, a default or breach by Maker under the New Note and/or the New Mortgage shall also constitute a default or breach under this Old Note and the Old Mortgage securing this Old Note and, in such event, the Mortgagee, at Mortgagee's sole option and election, shall have the same rights and remedies with respect to this Old Note and the Old Mortgage securing this Old Note as if the default or breach by Maker had occurred hereunder. The parties agree that the terms of the Note are further modified as follows: Notwithstanding the date of this Agreement, effective as of January 1, 2003 (the '!Adjustment Date") the Note shall be altered, modified, and adjusted to reduce the required semi-annual payments due Under the Note each January 1st and July 1st from the sum of FIFTY FIVE THOUSAND SEVEN HUNDRED SEVENTY FIVE AND 45/100 ($55,775.45) DOLLARS to a reduced payment of principal and interest due each January 1st and July 1st of THIRTY TWO THOUSAND TWO HUNDRED SIXTY SEVEN AND 48/100 ($32,267.48) DOLLARS; A final balloon payment of all principal and accrued interest then outstanding shall remain due and payable, in full, on July 1, 2009 as provided in the Note. 4. Each of the documents constituting the Old Mortgage is hereby modified to add the following provision: Cross-Collateralization: Maker has executed a certain Promissory Note in favor of Mortgagee dated A~3ril 14 , 2003 in the original principal sum of Eight Hundred Five Thousand and No/100 ($805,000.00) Dollars (the "New Note"), which New Note is secured by a Deed of Trust and a Mortgage lien on real property and improvements located in Rich County, Utah and in Lincoln County, Wyoming (collectively the "New Mortgage"). Maker hereby acknowledges and agrees that the real estate described in and encumbered by the Old Mortgage, shall also constitute additional collateral for the New Note secured by the New Mortgage and Maker authorizes and consents to Mortgagee fihng of pubhc record whatever notice, claim or encumbrance against the real estate and improvements described in the Old Mortgage and/or the New Mortgage as Mortgagee deems necessary and appropriate to evidence the cross-collaterahzation intended herein. A default or breach by Loans 7-505-839 & 7-609-057 Maker under the 01d Note and/or this, the 01d Mortgage securing the 01d Note, shall also constitute a default by Maker under the New Note and/or the New Mortgage. Likewise, a default or breach by Maker under the New Note and/or the New Mortgage shall also constitute a default or breach under the 01d Note and this 01d Mortgage and, in such event, the Mortgagee/Holder, at Mortgagee's/Holder's sole option and election, shall have the same rights and remedies with respect to the 01d Note and the 01d Mortgage securing the 01d Note as if the default or breach by Maker had occurred hereunder. 5. Maker hereby covenants, promises and agrees (i) to pay the Note, as modified, at ~he times, in the manner and in all respects as therein provided; (ii) to perform each and all of the covenants, agreements and obhgations in the Mortgage to be performed by Mortgagor therein, at the time, in the manner and in all respects as therein provided; and (iii) to be bound by each and all of the terms and provisions of the Note and Mortgage as though the Note and Mortgage had originally been made, executed and dehvered by Maker with the provisions as set forth in and modified by this Agreement. Upon default in the making of any payment provided by the Note, as altered, adjusted and modified herein, or upon default in the performance of any of the Maker's obhgations under the Mortgage, the entire outstanding balance of the Note, as altered, adjusted and modified herein, shall then become and be immediately due and payable, in full, together with all accrued interest and other related fees, premiums, costs and expenses, without further notice to or demand upon Maker and/or Mortgagor from Prudential. All rights and remedies reserved to Prudential in the Note and Mortgage in the event of default by Maker and/or Mortgagor and all other terms, covenants, conditions thereunder remain unchanged in full force and effect. Maker represents and warrants to Prudential that Maker is aware of no default under the terms, provisions and conditions of the Note and/or Mortgage or of any event which, with the passing of time or the giving of notice, or both, would constitute and event of default under the Note and/or Mortgage or under any other related loan document made by Maker and given to, assigned to, or held by Prudential in connection with the loan evidenced by the Note. 6. All of the Mortgaged Premises shall remain in all respects subject to 'the hen, charge of encumbrance of the Mortgage or conveyance of title (ff any) effected thereby and nothing herein contained and nothing done pursuant hereto shall affect, or be construed to affect, the hen, charge or encumbrance of or warranty of title in, or conveyance effected by the Mortgagor, or the priority thereof over other hens, charges, encumbrances or conveyances, or, except as expressly provided herein, to release or affect any portion of the Mortgaged Premises or the habihty of any party or parties whomsoever who may now or hereafter be hable under or on account of the Note and/or Mortgage; nor shall anything herein contained or done in pursuance hereof affect or be construed to affect any other security or instrument, if any, held by Prudential as security for or evidence of the aforesaid indebtedness. 7. If any term, covenant, restriction or provision of this Agreement is determined to be void, invalid or unenforceable, the remainder of the terms, covenants, restrictions or provisions of this Agreement shall remmn in full force and effect, and the provisions of the Note and Mortgage amended or modified by such void, invalid or unenforceable part hereof shall be reaffirmed and enforceable to the same extent as if this Agreement had not been executed. 8. The parties mutually covenant and agree that, except as expressly modified herein, the Old Note and the Old Mortgage and the New Note and the New Mortgage shall remain in full force and effect, and all of the remaining terms and provisions of the said NOtes, Deed of Trust and Mortgage are hereby ratified and confirmed. IN WITNESS WHEREOF, this instrument has been executed by the parties hereto in manner and form sufficient to bind them', as of the day and year first above written. Mortgagee: The Prudential Insurance Company of America, A New Jersey Corporation, By: ~Vlce' p~ Maker: Rees Land & Live-Stock Company a/k/a Rees Land & Livestock Company President By: Title: Charles M. Rex, Individually Co~-~e R Rex, Indivad a y Loans 7-505~839 & 7-609-057 5 82'I STATE OF ILLINOIS ) )SS.~ COUNTY OF DUPAGE ) I, Notary PubLic in and for said County, in the State aforesaid, do hereby certify (hat c/~//~//~//~:a-_/5/ , personally known to me to be the Vice President of the PRUDENTIAL INSURANCE COMPANY OF AMERICA, a New Jersey corporation and personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he signed and delivered the said instrument as Vice President of said corporation, and caused the corporate seal Of said corporation to be affixed thereto, pursuant to authority given by the Board of Dh'ectors of said Corporation, as his free and voluntary act and as the free and voluntary act and deed of said corporation for the uses and purposes therein set forth. Given under my hand and official seal this /~/day of ~ 2003. Notary P~c Loans 7-505-839 7-609-057 CORPORATE ACKNOWLEDGMENT STATE OF UTAH } SS County of CACHE } On the 14th day of April CONNIE R. REX who, being by me duly sworn, did say that she is the PRESIDENT A.D. 2003, personally appeared before me, 822 STATE OF UTAH } SS County of CACHE } On the 14th day of April A.D. 2003, personally appeared before me, CHARLES M. REX and CONNIE R. REX the signers of the within instrument, who duly acknowledged to me that they executed the same. Notary Public Commission expires: 6/26/04 Residing in: Logan, UT r'~ - 7~ot~ ~ub'Tc"- '-j i/~/'-..,~l~,~&'~X NDREA K. BECK ! I~'{ ~ ¥~1 112 North Main Slreel I 1%'-'~ [llJ~.ll~l 1.21 Logan Ulah 84321~ L ~ ~ state oi Utah Nota..j~ ,,.,, ~,,~rv Pnhli~ -- -- --N~'~ ~u ~J~c"~  ANDREAK. BECK I .2 North Main Slreot Logan, Utah 84321 My Commission Expires June 26, 2004 State of Utah INDIVDUAL ACKNOWLEDGMENT Colnmission expires: 6/26/04 Residing in: Logan, UT respectively of the REES LAND & LIVESTOCK COMPANY, a Utah Corporation and that the said instrument was signed in behalf of said corporation by authority of a resolution of its board of directors and the aforesaid officers acknowledged t° me that said corporation executed the same. Located in Rich county, Utah: PARCEL 1: The West half of Section 2,'T°wnship 9 North, Range 7 East of the Salt Lake Base and Meridian. pARCEL 2: The Northeast Quarter; the East half of the Northwest Quarter; and all of that portion of the Southeast Quarter lying East of Bear River, in Section 3, Township 9 North, Range 7 East of the Salt Lake Base and Meridian. PARCEL 3: The East half of the Northeast Quarter of Section 10, Township 9 North, Rang~ 7 Earl u£ the salt Lake Base and Meridian. Except the Southeast Quarter of the Southeast Quarter of the Northeast Quarter of said~secti°n 10. PARCEL 4: All of Section 11, Township 9 North, Range 7 East of the Salt Lake Base and Meridian, except the following described tract, having been sold to Utah Power and Light Company: Commencing at a point in the Southerly line of a County Road which said point is South 0*40'30" East along the Section line 884.3 ~feet from the Northeast Corner of Section 11, Township 9 North, Range 7 East of the Salt Lake Base and Meridian, and running thence South 0*40'30" East along the Section line 400 feet; thence South 89-19'30" West 150 feet;' thence North 0*40'30" West 441.22 feet to the Southerly line of said County Road; thence South 75,18'30" East along said Southerly line 155.56 feet to the point of beginning. PARCEL 5:' Beginning at the Northwest Corner of Section 12, Township 9 North, Range 7 East of the Salt Lake Base and Meridian, and running thence South along the West Section line of said Section 12, 680 feet, more or less, to a point where said West Section line intersects a 'fence line; thence along said fence line in a Northeasterly direction 1350 feet, more or less, to a point on the North Section line of said Section 12; thence West along the North Section line of said Section 12, 1143 feet to the p!~ce of beginning. PARCEL 6: The West half .of the West half of Section 13, Township 9 North, Range 7 East of the Salt Lake Base and Meridian. PARCEL 7: The North half and the Southeast Quarter of section 14, Township 9 North, Range 7 East of the Salt Lake Base and Meridian. Continued on next page PARCEL 8: The West half of the West half of Section 26,. Township 10 North, Range 7 East of the Salt Lake Base and Meridian. PARCEL 9: The Southeast Quarter of Section 27, Township 10 North, Range 7 East of the Salt Lake Base and Meridian. PARCEL 10: The East half and the South half of the SouthWest Quarter of Section 34, Township 10 North, Range 7 East of the Salt Lake Base and Meridian. FARCEL .ii: 'l~he Wes% half ~f Section 35, Town~hip I0 North, Range 7 .East of the Salt Lake Base and Meridian. Located in Lincoln County, Wyoming: Township 19 North, Range 119 West, 6th Principal Meridian Section 21: The Southeast Quarter of the Northeast Quarter, the East half of the Southeast Quarter Section 22: The Southwest Quarter Section 27: The West half of the Northeast Quarter, the Northwest Quarter, the West half of the Southwest Quarter Section 28: The East half of the Northeast Quarter, the South half of the Southeast Quarter, the South half of the Southwest Quarter Section 29: The Southeast Quarter of the Southeast Quarter Section 33: The North half of the Northeast Quarter, the Northwest Quarter, the North half of the Southwest Quarter, the Southeast Quarter of the Southwest Quarter Section 34: The Northwest Quarter of the Northwest Quarter