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HomeMy WebLinkAbout893576Recording requested by: W'~511s <argo Bank, When recorded return to: Wells Falgo Bank, N A. 893576 .': - Iq ""'""" .. ,,~ i~. l,t~ P. O. BOX 31557 , - ,.-. BILLINGS MT 5910-/ ,,.! E_ ,-'-~ i ,~ ~ ~ 12 ;:.4 DOCUMENT MANAGEMENT BOOK ~*-~ PRPAGE. Sla~e of Wyonfing- Space Above This Line For Recording Data REFERENCE #: 20032057000720 ACCOUNT #: 0654-854-g4 16838- 1998 MORTGAGE (With Future Advance Clause) DATE AND PARTIES. The date of this Mortgage ("Security Instrument") is O~ / 31 / 2003 and the parties, fl~eir addresses and tax identification numbers, if required, are as follows: MORTGAGOR: SCOTT P. REED AND CASSIE M. REED, HUSBAND AND WIFE WHO ACQUIRED TITLE AS SCOTT P. REED, A SINGLE MAN AND CASSIE M. BACHES, SINGLE WOMAN AS JOINT TENANTS WITH FULL RIGHTS OF SURVIVORSHIP [] If checked, re[er to the attached Addendum incorporated herein, for additional Mortgagors their signatures and acknowledgments. LENDER: Wells Fargo Bank, I4.3,. P. O. BOX 31557 BILLINGS, MT 59107 CONVEYANCE. For good and valuable consideration, die receipt and sufficiency of which is acknowledged, and to secure the Secured Debt (defined below} and Mortgagor's performance under this Security Instrument, Mortgagor grants, bargains, conveys, mortgages and warrants to Lender, with power of sale, the following described property: LOT 241, LAKE VIEW ESTATES SUBDIVISION TRACT A, ACCORDING TO IHAT PLAT THEREOF FILED IN THE OFFICE OF THE COUNIY CLERI< LINCOLN COUNTY, WYOMING. The property is located in L I NCOLN at: 708 IERRAC'E ORIVE ALPINE, V~xS°u"tY~3128 and parcel number of 3718 294 1'7084 O0 together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, all water and riparian rights, 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 above (all re[erred to as "Properb'"). MAXIMUM OBLIGATION LIMIT. The total principal mnount secured by this Security Instrument at any one time shall not exceed $ 20,000. O0 . This limitation of amount does not include interest and other fees and charges validly made pursnant to this Secnrity Instrument. Also, dfis limitation does not apply to advances made under the terms of this Security Instrument to protect Lender's securib, and to perform any of the covenants contained in this Securi~ Instrument: SECU~D DEBT AND FUTURE ADVANCES. The term "Secured Debt" is defined as follows: A. Debt incurred under the terms of the promisso~ note, r~olving line of credit, contract, ~aran~ or other evidence of debt dated O213 ~ 12003 together with ali amendments, extensions, mod~cations and renewals, and having a maturity date of. 0713112043 B. MI future advances from Lender to Modgagor under such evidence of debt. All ~ture advances are secured as ff made on d~e date of this Security Instrument. Nothing in this Securi~ Agreement shall constitute a cmm~dtment to m~e EQ150A (06/200'~'~ ; :.::.::5::.::.::. additional or future loans or advances which exceed the amount shown in Section 3. Any such commitment must be · , agreed to in a separate Writing. 'C. All sums advanced and expenses incurred by Lender for insuring, preserving, or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Security Instrument. 5. PAYMENTS. Mortgagor agrees that all payments under the Secured Debt will be paid when due and in accordance with the terms of the Secured Debt and this Security Instrument. 6, 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 Lender any notices that Mortgagor receives from the holder. 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 wi!hour Lender's prior written consent. 7. CLAIMS AGAINST TITLE.. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the 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 the 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. 8. DUE ON SALE OR ENCUMBRANCE. Upon sale, transfer, hypothecation, assignment or encumbrance, whether voluntary, involuntary, or by operation of law, of all or any part of the Property or any interest therein, then at its sole option, Lender may, by written, notice to Mortgagor, declare all obligations secured hereby immediately due and payable, except to the extent that such acceleration for and in such particular circumstances where exercise of such a right by Lender is prohibited by law: 9. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor shall 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 and 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 shall give Mortgagor notice at the time of or before an inspection specifying a reasonable purpose for the inspection. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 10. AUTHORITY TO PERFORM. ffMortgagor 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 r/ght to perform for Mortgagor shall 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 ttfis Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender ma3' take all steps necessary to protect Lender's security interest in the Property, including completion of the construction. 11. ASSIGNMENT OF LEASES AND RENTS. Mortgagor irrevocably grants, bargains, conveys, mortgages and warrants to Lender as additional security all the right, title and to any and all existing or future leases, subleases, and any other written or verbal agreements for the use and occupancy of any portion of the Property, including any extensions, renewals, modifications or substitutions of such agreements (all referred to as "Leases") and rents, issues and profits (all referred to as "Rents"). Mortgagor will promptly provide Lender with Uae and correct copies of all existing and future Leases. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is not in default under tile terms of this Se. curity Instrument. Mortgagor agrees that this assignment is immediately effective between the parties to this Security Instrument. Mortgagor agrees that this assignment is effective as to third parties when Lender takes affirmative action prescribed by law, and that this assignment will remain in effect during any redemption period until the Secured Debt is satisfied. Mortgagor agrees that Lender may take actual possession of the property without the necessity of com,nencing legal action and that actual possession is demned to occur when Lender, or its agent, notifies Mortgagor of default and demands that any tenant pay all future Rents directly to Lender. On receiving notice of default, Mortgagor will endorse and deliver to Lender any payment of Rents in Mortgagor's possession and will receive any Rents in trust for Lender and will not commingle the Rents with any other funds. Any amounts collected will be applied as provided in this Security Instrument. Mortgagor warrants that no default exists under the Leases or any applicable landlord/tenant law. Mortgagor also agrees to maintain and require any tenant to comply with the terms of the Leases and applicable law. 12. LEASEHOLDS; CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. Mortgagor agrees to comply with the provisions of any lease if this Security Instrument is on a leasehold. If the property is a unit m a Condominium Project or is part of a Planned Unit Development ("PUD"), Mortgagor agrees to the following: A. Obligations. Mortgagor shall perform all of Mortgagor's obligations under the Constituent Documents. The "Constituent Documents" are the: (i) Declaration or any other document which creates the Condominium Projects or pUD and any homeowners association or equivalent entity ("Owners Association"); (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Mortgagor shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent DOcuments. B. H~ard Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy on the Condominium Project or PUD which is satisfactory to Lender and which provides insurance coverage in the amounts, for the periods, and against the hazards Lender requires, including fire and hazards included within the term "extended coverage," then Mortgagor's obligation under Section 19 to maintain hazard insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owner's Association policy. Mortgagor shall give Lender prompt notice of any lapse in required hazard insurance coverage. In the event of a distribution of hazard insurance proceeds in lieu of restoration or repair following a loss to Property, whether to the unit or to common elements, any proceeds payable to Mortgagor are hereby assigned and shall be paid to Lender for application to the sums secured by this Security Instrument, with any excess paid to Mortgagor. C. Flood Insurance. Mortgagor agrees to maintain flood insurance for the life of the Secured Debt which is acceptable, as to form, amount and extent of coverage to Lender. D. Public Liability Insurance. Mortgagor shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. E. Condenmation. The proceeds of any award or claim for damages, direct or consequential, payable to Mortgagor in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 18. F. Lender's Prior Consent. Mortgagor shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project or PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption -of self- management by the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. G. Remedies. If Mortgagor does not pay condominium or PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this section shall become additional debt of Mortgagor secured by this Security Instrument. Unless Mortgagor and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Secured Debt rate and shall be payable, with interest, upon notice from Lender to Mortgagor requesting payment. 13. DEFAULT. Mortgagor will be in default if any party obligated on the Secured Debt fails to make payment when due. Mortgagor will be in default if a breach occurs under the terms of this Security Instrument or any other document executed for the purpose of creating, securing or guarantying the Secured Debt. A good faith belief by Lender that Lender at any time is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment or the value of the Property is impaired shall also constitute an event of default. 14. REMEDIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, ff any, Lender may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law ff Mortgagor is in default. At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies provided by law, the terms of the Secured Debt, this Security Instrument and any related documents, inchiding without limitation, the power to sell the Property. 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 Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require complete cure of any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 15. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagor breaches any covenant in this Security Instrument. Mortgagor will also pay on demand any amount incurred by Lender for insuring, inspecting, preserving or otherwise protecting the Property and Lender's security interest. These expenses will bear interest from the date of the payment until paid in fidl at the highest interest rate in effect as provided in the terms of the Secured Debt. Mortgagor agrees to pay all costs and expenses incurred by Lender in collecting, enforcing or protectiug Lenders' rights and remedies under this Security Instrument. This EQI50C (06/2 : -. ~':,!:i;f::::' :: :, 3 4 9 amount ]nay include, but is not linfited to, attorneys' fees, court costs, and other legal expenses. This amount does not include attorneys' fees for a salaried employee of the Lender. This Secnrity Instrument shall remain in effect until released. Mortgagor agreds to pay for any recordation costs of such release. 16. ENVIRONMENTAL LAWS AND FLA~OUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters conceruing the public health, safety, welfare, enviromnent 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 dangerous or potentially dangerous to the public health, safety, welfare or environment. The tern~ includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Enviromnental Law. · Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, 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 appropriate for the normal use and maintenance of the Property. B. Except as previously disclosed, and acknowledged in writing to Lender, Mortgagor and ever), tenant have been, are, and shall remain in full compliance with any applicable Environmental Law. C. Mortgagor shall immediately notify Lender if a release or threatened release of a Hazardous Substance occurs on, under or about the Property or there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor shall take all uecessary remedial action in accordance with any Environmental Law. D. Mortgagor shall immediately notify Lender m writing as soon as Mortgagor has reason to believe there is any pending or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous Substance or the violation of any Environmental Law. 17. CONDEMNATION. Mortgagor will give Lender prompt notice of any pending or threatened action, by private or public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor' name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or clai~n for dmnages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security Instrmnent. This assiglm~ent of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. 18. INSURANCE. Mortgagor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably associated with the Property due to its type and location. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably witlfl~eld. If Mortgagor dills to maintain the coverage described above, Lender may, al Lender's option, obtain coverage to protect Lehder's rights in the Property according to the terms of this Security Instrument. All insurance policies and renewals shall be acceptable to Lender and shall include a standard "mortgage chmse" and, where applicable, "loss payee clause." Mortgagor shall i~nmediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall innnediately give to Eender all receipts of paid premiums and renewal notices: Upon loss, Mortgagor shall give immediate notice to the insurance carrier and Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless otherwise agreed in writing, all insurance proceeds shall be applied to the restoration or repair of the Property or to the Secured Debt, whether or not then due, at Lender's option. Any application of proceeds to principal shall not extend or postpone the due date of the scheduled payment nor change the amount of any payment. Any excess will be paid to Mortgagor. If the Property is acquired by Lender, Mortgagor's fight to any insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the extent of the Secured Debt immediately before the acquisition. 19. ESCROW FOR TAXES AND INSURANCE. Unless othenvise provided in a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 20. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor will provide to Lender upon request, any financial statement or i~ffonnation Lender may deem reasonably necessary: Mortgagor agrees to sign, deliver, and file any additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under fids Security Instruxnent and Lender's lien status on the Property. 21. JOINT AND INDMDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Security Instrument are joint and individual. If Mortgagor signs this Security Instnm~ent but does not sign an evidence of debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debt aud Mortgagor does not agree to be personally liable on the Secured Debt. 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 P~i-;~' :,~ted under the obligation. These rights ~qude, but are not limited to, any anti-deft ..... 7~-?r one-action laws. M~:&s~,6~,,..agrees that Lender and any party lo 0,i.i .?:i;?[Jiy Instrument may extend, modify or Inaixc /~ty' c~hange m the Oa 35,?G 35O Mortgagor from tile terms of this Security Instrument. Tile duties and benefits of this Security Instrument shall bind and benefit the successors and assigns of Mortgagor and Lender. 22. APPiLICABLE LAW; SEVERABILITY; INTERPRETATION. This Security Instrument is governed by the laws of the jurisdiction in which the Property is located, except to the extent othenvise required by the laws of the jurisdiction where the Property is located. This Security Instrmnent is complete and fully integrated. This Security Instrumeut may not be amended of modified by oral agreement. Any section in tliis Security Instrument, attachments, or any agreement related to the Secnred Debt ihat conflicts with applicable law will uot be effective; unless that law expressly or impliedly permits the variations by written agreement. If an3' section of this Security Instrument cannot be e~fforced according to its terms, that section will be severed and will uo! affect lhe elfforceability of the remainder of this Security Instrument. Whenever used, the singular shall include the plural and the plural Ibe singnlarl The captions and headings of the sections of this Security Instnnnent are for convenience only and are not to be Used to iuterpret or define the terms of this Secnrity Instrument. Time is of file essence in this Security Instrument. In the event any section of this Security Instmmen! directly co~fflicts with auy section of a certain Hmne Eqnity Closing Handbook which contains the Account Agreement Terms aud Conditions (as applicable), Fixed Rate Note Terms and Conditions (as applicable), the Arbitration Agreement, and the Agreement to Provide Flood/Property Insurance, all of which I agree to by signing this Security Instrmnent, the terms of the Itome Equity Closing Handbook shall control. 23. NOTICE. Unless otherwise required by laxv, any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Security Instrument, or as shown in Lender's records, or to any other address designated in writing .24. WA.1VEILS. Except to the extent prohibited by law, Mortgagor waives any right regarding the ~narshalling of liens and assets, and hereby releasing and waiving all rights under and by virtne of the homestead exemption laws of this state. 25, OTHER TERMS. If checked, the following are applicable to lifts Secmity Instrument: I-X-) Line of Credit. The Secured Debt inch,des a revolving line of credit provision. Although II~e Secured Debt may be reduced to a zero balance, this Security Instrument will remain in effect until released. ~ Coustruction Loan. This Security Instrument secures an obligation incnrred for the construction of an improvement on the Property. ~ .Fixture Filing. Mortgagor grants to Lender a secnrity iuterest in all goods flint Mortgagor owns now or in the furore and that are or will. beCmne fixtures relates to the Property. This Security Instrument suffices as a financing statement and any carbon, photographic or off, er reproduction may be filed of record for purposes of Article 9 of the Uniform Commercial Code. ~ Additional Terms. 26. RIDERS. If checked, the following are applicable to this Security Instrument. The covenants and agreements of each of the riders checked below are incorporated into and supplement and amend the terms of this Security Instnnnent. PqT/q Third Par .ty Rider ~ Leasehold Rider ~ Other SIGNATURES: By signing below, Mortgagor agrees to the terms aud covenants contained in this security Instrument and in any attachments. Mortgagor also acknowledges receipt of a copy of this Secnrity Instrument on the date stated on page 1. SCOTT P REED CASSIE M REED Mortgagor Date Mortgagor Date Mortgagor Date Date Date Date Mortgagor EQISOE (06/2002) Mortgagor Mortgagor 351 ACKNOWLEDGMENT: (individual) STATE OF [,OX/OIJ4~,.I~. COUNTY OF [-4 it. Ll) 14. The foregoing instrument was acknowledged before me by this '~,~ day of ~ Wimess my hand and official seal. (S~ure of Officer) My Conunission Expires: [0[L¢/~00¢ 200 3 . (Seal) ACICd~OWLEDGMENT: (Individual) COUNTY OF L[ix-r__~ It& The foregoing instrument was acknowledged before me by this 9~- day of Wimess my hand and official seal. (Signa~fOfficer) (Title of Officer) My Com,nission Expires: /©/~/'~ 00 q~ (Seal)