Loading...
HomeMy WebLinkAbout895676RECORDATION REQUESTED BY: Rocky Mountain Bank - Broadus 201 N. Wilbur P.O. Box 347 Broadus, MT 5~J317 WHEN RECORDED MAIL TO: Rocky Mounlain Bank - Broadus 201 N. Wilbur P.O. Box 347 Broadus, MT 59317 SEND TAX NOTICES TO: Wendell Harris Truslee for Ihe Wendell Harris Profit Sharing Plan .. P.O. Box 41 Salmon, ID 83467 895676. R [' EC,.IVED LINCOLN COUNTY CLERK 03 DeC - 3 P::f 3: 0 JEANNE WAGNER ?":E~*. LERER.. SPAI~E ABOVE THIS LINE IS FOR RECORDER~$ U~E ONLY MORTGAGE MAXIMUM LIEN. The lien of this Mortgage shall not exceed at any one time $76,026.00. THIS MORTGAGE dated Novemberj 25. 2003, is made xecUted between Wendell Harris Trustee for the Wendell Harris Profit Sharing Plan?~v~eo~se aJa~dUdarr~,[s ~i,4 I~.~.0;ox 41, Salmon ,ID 83467 (referred to below as "Grantor") and Rocky Mountain Bank- Broadus, whose address is 201 N. Wilbur, P.O. Box 347, Broadus, MT 59317 (referred to below as '"Lender"). GRANT OF MORTGAGE. For valuable cOnslderallon, Granlor morlgages and conveys Io Lender all of Grantor's right, lille, and interest in and Io the following described real Property, Iogether with all existing or subsequently erected or affixed buildings, improvements and fixlu~:es; all easemenls, rights of way, and appurtenances; all water, water righls, watercourses and ditch rights (includi'ng slock in utilities with ditch or irrigation rights); and all olher righIs, royalties, and profits relating lo Ihe real property, including withoul limitalion all minerals, oil, gas, geothermal and similar mailers, (the "Real Property") located in Lincoln County, State of Wyoming: Lot 72 of Star Valley Ranch Plat 13, Lincoln County, Wyoming as described on the official plat thereof The Real Property or its address is commonly known as 1278 Vista Drive, Thayne, WY 83127. CROSS'COLLATERALIZATION. In addition to the Note, Ihis Modgage secures all obligations, debls and liabililies, plus inleresl Ihereon, of Granlor 1o Lender, or anyone or more of lhem, as well as all claims by Lender againsl Granlor or any one or more of them,~whelher now existing or hereafter arising, whether related or unrelated ~o Ihe purpose of lhe Note, whether voluntary or otherwise, whether due or nol due, direcl or indirect, determined or undetermined, absolute or conlingent, liquidated or unliquidated whelher Grantor may be liable individually or joinlly wilh olhers, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounls may be or hereatler may become barred by any slalute of limitalions, and whelher the obligation lo repay such amounls may be or hereafter may become olherw.ise unenforceable; Granlor presently assigns 1o Lender all of Granlor's righl, title, and interesl in and Io all presenl and future leases of Ihe Properly and all Renls from Ihe Property. In addilion, Grantor grants lo Lender a Uniform Commercial Code securily inlerest in Ihe Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Excepl as olherwise provided in this Mortgage, Granlor shall pay Io Lender all amounIs secured by lhis Mortgage as they become due and shall strictly perform allof Grantor's obligalions under lhis Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees Ihal Grantor's possession and use ol Ihe Properly Shall be governed by Ihe following provisions: Possession and Use. Until lhe occurrence of an Event of Delault, Grantor may (1) remain in possession and conIrol of the Property; (2) use, operate or manage the Property; and (3) collecl the Rents from the Property. Duly Io Maintain. Granlor shall maintain Ihe Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary Io preserve Ils value. Compliance With Environmental Laws. Granlor represenls and warranls Io Lender Ihal: (1) During lhe period of Granlor's ownership of the Property, lhere has been no use, generalion, manufaclure, slorage, treatment, disposal, release or Ihrealened release of any Hazardous Substance by any person on, under, about or from Ihe Property; (2) Grantor has no knowledge or, or reason to believe lhal there has been, excepl as previously disclosed to and acknowledged by Lender In wriling, (a) any breach or violalion of any Environmenlal Laws, (b) any use, generalion, manufacture, slOrage, treatment; disposal, release or lhreatened release of any Hazardous Substance on, under, about or from lhe Property by any prior owners or occupanls of Ihe Properly, or (c) any aclual or threalened litigalion or claims of any kind by any person relaIing Io such melters; and (3) Excepl as previously disclosed to and acknowledged by Lender in writing, (a) neilher Grantor nor any lenant, contraclor, agent or olher aulhoriZed user of lhe Properly shall use, generate, manufaclure, store, Ireat, dispose of or release any Hazardous SubsIance on, under, about or from the Properly; and (b) any such activily shall be conducled in compliance wilh all applicable federa, slate, and local laws, regulations and ordinances, including wilhouI limilation all Environmental Laws. Grantor aulhorizes Lender and ils agenls 1o enler upon the Properly Io. make' such inspections and lests, at Grantor's expense, as Lender may deem appropriale 1o delermine compliance of Ihe Property with Ibis seclion of the Mortgage. Any inspeclions or lests made by Lender. shall be for Lender's purposes only and shall nol be construed to creale any responsibil!ly or liabiliIy on Ihe pad ot Lender to Grantor or to any olher person. The represenIations and warranlies contained herein are based on Granlor's due diligence in investigaling the Property for Hazardous Subslances. Grantor hereby (1) releases and waives any fulure claims against Lender for indemnity or conlribution in Ihe event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, slorage, disposal, release or threalened release occurring prior Io Grantor's ownership or interest In lhe Properly, whether or not the same was or should have been known 1o Grantor. The provisions of this section of Ihe Mortgage, including lhe obligalion 1o indemnify, shall survive Ihe payment of the Indebledness and the satisfaction and reconveyance of the lien of lhis Modgage and shall not be affected by Lender's acquisition of any interest in Ihe Properly, whelher by foreclosure or olherwise. Nuisance, Waste. Granlor Shall not cause, conduct or permit any nuisance nor commit, permil, 0r suffer any slripplng of or waste on or to the Property or any portion of lhe Properly. Wilhout limiling the generality of lhe foregoing, Grantor will nol remove, or grant Io any other party Ihe right to remove, any limber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products wilhoul Lender's prior written consent. Removal of Improvements. Grantor shall not demolish or remove any Improvemenls from Ihe Real Property wilhoul Lender's prior wrilten consenl. As a condilion Io Ihe removal of any Improvements, Lender may require Granlor to make arrangemenls salisfaclory 1o Lender Io replace such Improvemenls wilh Improvemenls of al least equal value. Lender's Rlghl Io Enler. Lender and Lender's agenls and representalives may enler upon lhe Real Properly al all reasonable limes 1o attend to Lender's interesls and to inspecl Ihe Real Properly for purposes of Grantor's compliance with Ihe terms and condilions of this Mortgage. Compliance wllh Governmenlal Requlremenls. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmenlal authorities applicable to the use or occupancy of the Properly, including wilhoul limitalion, lhe Americans Wilh Disabilities Acl. Granlor may contesl in good failh any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has nolified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's inleresls in the Property are nol jeopardized. Lender may require Granlor 1o post adequale security or a sureb/ bond, reasonably salisfaclory Io Lender, Io protecl Lender's interesl. Duty to Protect. Granlor agrees neilher to abandon or leave unattended Ihe Properly. Grantor shall do ail other acls, in addition 1o those acts set ' i~i:i:!:i?i:i:!:' ~' ~' ~''' Loan .o: 303860 ~L~.~,~:} ~ MORTGAGE 0 ,dl, 9 (Continued) Page2 forth above in this section, which from the character and use of the Property are reasonably necessary lo protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, al Lender's option, declare immedialely due and payable all sums secured by this Mortgage upon lhe sale or transfer, wilhoul Lender's prior written consent, of all or any part gl the Real Property, or any interesl in the Real Property. A "sale or Iransfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale conlract, land contracl, conlract for deed, leasehold inlerest wilh a term greater Ihan three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial inlerest in or to any land Irusl holding title to the Real Property, or by any other method of conveyance, of an interest in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or bY wyoming law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of lhis 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 serviCes rendered or material furnished to the Properly. Grantor shall maintain the Property free of any liens having priority over or equal 1o lhe interest of Lender under this Mortgage, except for those liens specifically agreed Io in wriling by Lender, and except for Ihe lien of taxes and assessments not due as further specified in the Right to Contest paragraph. Right to Conlesl. Grantor may withhold paymenl of any lax, assessmenl, or claim in connection wilh a good failh dispute over lhe obligalion lo pay, so long as Lender's interest'in the Properly is not jeopardized. II a lien arises or is liled as a result of nonpaymenl, Granlor shall wilhin fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days alter Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficienl corporate surety bond or other security salisfaclory to Lender in an amount sufficienl 1o discharge Ihe lien plus any costs and allorneys' fees, or other charges Ihat could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itsell and Lender and shall salisty any adverse judgment betore enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender salistactory evidence of payment of Ihe taxes or assessments and shall aulhorize Ihe appropriate governmental official to deliver to Lender at any time a wrillen stalement of the laxes and assessmenls against the Property. Notice of conslrucllon. Grantor shall notity Lender at least fifteen (15) days'before any work is commenced, any services are furnished, or any materials are supplied to lhe Properly, if any mechanic's lien, malerialmen's lien, or other lien could be asserted on account of lhe work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfaclory 1o Lender Ihat Granlor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relaling to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replaCement basis for the full insurable value covering all Improvements on the Real Properly in an amounl sufficient lo avoid application of any coinsurance clause, and with a slandard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may requesl wilh Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including bul not limiled 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 acceplable 1o Lender. Grantor shall deliver 1o Lender certificales of coverage from each insurer containing a stipulation Ihal coverage will not be cancelled or diminished wilhoul a minimum of lan (10) days' prior Written notice lo Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing lhal coverage in favor of Lender will nol be impaired Jn any way by any act, omission or default of Granlor or any other person. Should the Real Property be located in an area designaled by lhe Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees Io oblain 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.lhe full unpaid principal balance of the loan and any prior liens on the properly securing the loan, up'to Ihe maximum policy limits set under lhe National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the lerm of Ihe loan. Application of Proceeds. Granlor shall promptly notify Lender Of any loss or damage to lhe Properly. Lender may make proof of loss if Grantor fails Io do so wilhin fifteen (15) days of the casualty. Whelher or nol Lender's security is impaired, Lender may, al Lender's election, receive and relain the proceeds of any insurance and apply the proceeds to the reduction ot the Indebtedness, payment of any lien affecting the Property, or lhe resloration and repair of the Properly. If Lender elects to apply the proceeds to resloralion and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Granlor from the proceeds for the reasonable cosl of repair or restoration il Granlor is nol in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after Iheir receipl and which Lender has nol commilted to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied Io the principal balance of the Indebtedness. If Lender holds any proceeds afler paYment in ~ull of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's inleresls may appear. Granlor's Reporl on Insurance. Upon request of Lender, however nol mOre than once a year, GrantOr shall furnish to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) Ihe amount of the policy; (4) the property insured, Ihe Ihen current replacement value of such property, and lhe manner of determining Ihal value; and (5) Ihe expiration date of lhe policy. Grantor shall, upon request of Lender, have an independent appraiser salisfaclory to Lender determine lhe cash value replacement cost of lhe Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced lhat would materially affecl Lender's inleres/in the Property or if Granlor fails lo comply with any provision of this Mortgage or any Related Documents, inCluding but nol limited to Grantor's failure Io discharge or pay when due any amounls Grantor is required 1o discharge or pay under this Mortgage or any Related Documents, Lender on Granlor's behalf may (but shall nol be obligaled Io) take any aclion that Lender deems appropriale, including bul not limited Io discharging or paying all taxes, liens, security inlerests, encumbrances and giber claims, at any time levied or placed on the Properly and paying all cosls ior insuring, maintaining'and preserving the Property. All such expendilures incurred or paid by Lender for such purposes will then bear in/eresl al the rale charged under lhe Note from lhe date incurred or paid by Lender to lhe date of repayment by Granlor. All such expenses will become a part of lhe Indebledness and, al Lender's option, will (A) be payable on demand; (B) be added Io Ihe balance of the Nole and be apportioned among and be payable with any installment payments to become due during either (1) lhe lerm of any applicable insurance policy; or (2) Ihe 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 paymenl of Ihese amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entilled upon Defaull. WARRANTY; DEFENSE OF TITLE. The following provisions relaling to ownership of the Property are a part oi Ihi's Mortgage: Title. Granlor warranls lhat: (a) Grantor holds good and marketable lille of rec;:)rd Io Ihe Property in fee simple, free and clear of all liens and encumbrances other lhan those sel forth in the Real Property descriplion or in any lille insurance policy~ lille report, or final lille opinion issued in favor of, and accepted by, Lender in connection wilh this Mortgage, and (b) Granlor has Ihe full right, power, and aulhorily lo execute and deliver this Mortgage to Lender. Defense of Title. Subject to the eXception in the paragraph above, Granlor warrants and will forever defend Ihe lille Io the Property againsl the lawtul claims gl all persons. In the event any action or proceeding is commenced Ihal questions Granlor's title or the interest of Lender under Ihis Mortgage, Grantor shall defend the action at Granlor's expense. Granlor may be the nominal pady in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel, qf Lender,s own choice, and Grantor will deliver, or cause to be delivered, to Lender such instrumenls as Lender may request from lime to lime'to'permi!, such pad c pal on. :. '~ ' Compliance Wilh Laws. Grantor warranls lhat the Property and Grantor's use ot lhe Properly complies with all existing applicable laws, ordinances, and regulations of governmental aulhorities. Survival of Represenlallons and Warranties. All representations, warranlies, and agreements made by Grantor in this Mortgage shall survive Ihe execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effecl until such lime as Grantor's Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a peri of lhis Mortgage: Proceedings. If any proceeding in condemnation is filed, Granlor shall promplly notify Lender in writing, and Granlor shall promptly take such ' steps as may be necessary to delend lhe action and oblain lhe award. Granlor may be the nominal party in such proceeding, but Lender shall be enlitled to participate in the proceeding and lo be represenled !n lhe proceeding by counsel of ils own choice, and Grantor will deliver or cause I0 be delivered Io Lender such instrumenls and documenlalion as may be requested by Lender Irom time Io time 1o permit such participalion. Applicallon of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase Loan No: 303860 MORTGAGE (Continued) 0 5 0 Page 3 in lieu of condemnalion, Lender may al ils election require lhat all or any portion of the net proceeds of the award be applied 1o the Indebtedness or the repair or restoration of the Property. The net proceeds of lhe award shall mean the award after paymenl of all reasonable cosls, expenses, and attorneys' fees incurred by Lender in conneclion wilh lhe condemnalion. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions rela~ing to governmenlat laxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execule such documents in addition to Ihis Mortgage and lake whalever olher action is requested by Lender to perfect and conlinue Lender's lien on the Real Properly. Granlor shall reimburse Lender for all laXes, as described below, Iogether with all expenses incurred in recording, perfecling or continuing Ihis Mortgage, including without limilalion all taxes, fees, documentary sfamps, and olher charges for recording or regislering Ihis Mortgage. Taxes. The following shall constitute laxes Io which this seclion applies: (1) a specific tax upon this type of Mortgage or upon all or any part of lhe Indebtedness secured by Ihis Mortgage; (2) a specific tax on Grantor which Granlor is aulhorized or required Io deducl from payments on Ihe Indebledness secured by this lype of Mortgage; (3) a fax On Ihis type of Mortgage chargeable againsl lhe Lender or the holder of Ihe Nole; and (4) a specific lax on all or any portion of the Indebledness or on paymenls of principal and inleresl made by Grantor. Subsequenl Taxes. If any tax fo which this seclion applies is enacled subsequenl Io Ihe date of this Mortgage, Ibis event shall have the same effecl as an Evenl ol Default, and Lender may exercise any or all ot its available remedies for an Evenl of Delaull as provided below unless Grantor either (1) pays lhe lax before il becomes delinquent, or (2) contesls Ihe lax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficienl corporale surety bond or other security satisfaclory Io Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of lhis Mortgage: Security Agreement. This instrument shall conslitute a Security Agreemenl Io the extenl any of Ihe Property constitutes fixtures, and Lender shall have all of Ihe righls of a secured party under the Uniform Commercial Code as amended from time to time. Securlly Inleresl. Upon request by Lende[, Granlor shall execule financing stalemenls, and take whatever other action is requesled by Lender to perfect and conlinue Lender's securily inleresl In Ihe Renls and Personal Properly. In addition Io recording Ihis Mortgage in the real property .records, Lender may, al any lime and without further authorization from Grantor,.lile executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred tn perfecting or continuing lhis securily interest. Upon defaull, Grantor shall not remove, sever or delach the Personal Property from the Properly. Upon default, Granlor shall assemble any Personal Property nol affixed to lhe Property in a manner and al a place reasonably convenienl Lender within Ihree (3) days after receipt of writlen demand Irom Lender Io lhe extenl permilled by applicable law. Addresses. The mailing addresses Of Grantor (deblor) and Lender (secured party) from which information concerning Ihe securily inlerest granted by this Mortgage may be obtained (each as required by lhe Uniform Commercial Code) are as slaled on the firsl page of Ihis Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relaling to further assurances and altorney-in-facl are a part of Ihis Mortgage: Further Assurances. Al any time, and from time to lime, upon requesl of Lender, Granlor will make, execute and deliver, or will cause Io be made, execuled or delivered, 1o Lender or to Lender's designee, and when requesled by Lender, cause to be filed, recorded, refiled, or rerecorded, as Ihe case may be, al such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of lrust, securily deeds, securily agreements, financing slalemenls, continuation statemenls, instrumenls of further assurance, certificales, and other documents as may, in Ihe sole opinion of Lender, be necessary or desirable in order 1o effecluate, complete, perfect, confinue, or preserve (1) Grantor's obligations under Ihe Note, this Mortgage, and the Related Documenls, and (2) Ihe liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees Io Ihe contrary in wriling, Grantor shall reimburse Lender for all cosls and expenses incurred in connection with the matters referred Io in this paragraph. Attorney-in-Fact. If Grantor fails lo do any of the things referred Io in Ihe preceding paragraph, Lender may do sofor and in Ihe name of Granlor and al Grantor's expense. For such purposes, Grantor hereby irrevocably appoinls Lender as Granlor's allorney-in-lacl 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 in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and olherwise performs all lhe obligalions imposed upon Granlor under this Mortgage, Lender shall execule and deliver to Grantor a su'ilable salisfaclion of Ihis Mortgage and suilable slatements of lerminalion of any financing slalemenl on file evidencing Lender's security interest in the Rents and lhe Personal Property. Granlor will pay, if permitled by applicable law, any reasonable termination fee as determined by Lender from time 1o lime. EVENTS OF DEFAULT. Each of the following, al Lender's option, shall conslitule an Event ol Default under lhis Mortgage: Paymenl Defaull. Granlor fails Io make any paymenl when due under lhe Indebledness. Defaull on Olher Payments. Failure of Grantor within lhe lime required by lhis Mortgage Io make any paymenl for taxes or insurance, or any other paymenl necessary to prevent filing of or to effect discharge ol any lien. Olher Defaults. Grantor fails Io comply with or to perform any other lerm, obligation, covenanl or condition conlained in lhis Mortgage or in any of the Relaled Documents or to comply with or to perform any term, obligation,.covenant or condition conlained in any olher agreemenl between Lender and Grantor. False Slalemenls. Any warranty, representalion or statement made or furnished Io Lender by Granlor or on Granlor's behalf under Ihis Mortgage or the Related Documents is false or misleading in any material respect, eilher now or al the lime made or furnished or becomes false or misleading at any time thereafter. Defective Collaterallzallon. This Mortgage or any of Ihe Related Decuments ceases Io be in full force and effecl (including failure of any collateral document fo create a valid and perfecled security inleresl or lien) al any lime and for any reason. Insolvency. The dissolulion or terminalion of the Trust; the insolvency of Granlor, Ihe appointmenl ol a receiver for any part of Grantor~s property, any assignmenl for lhe benefil of creditors, any type of creditor workout, or Ihe commencement of any proceeding under any bankruplcy or insolvency laws by or against Granlor. Creditor or Forfeilure Proceedings. Commencemenl of foreclosure or forfeiture proceedings, whelher by judicial proceeding, self-help, repossession or any other method, by any credilor of Grantor or by any governmental agency against any property securing Ihe Indebledness. This includes a garnishment of any of Granlor's accounls, including deposit accounts, wilh Lender. However, Ihis Event ol Defau Isha not apply if Ihere is a good faith dispule by Granlor as Io Ihe valldily or reasonableness ol the claim which is lhe basis of Ihe creditor or forfeiture proceeding and if Grantor gives Lender wrilten notice of lhe creditor or forfeiture proceeding and deposits with Lender monies or a surely bond for lhe creditor or forfeiture proceeding, in an amounl delermined by Lender, in ils sole discrelion, as being an adequale reserve or bond for lhe dispule. Breach of Other Agreemenl. Any breach by Grantor under lhe terms of any olher agreemenl belween Grantor. and Lender that is not remedied within any grace period provided lherein including wilhoul limitation any agreemenl concerning any indebledness or othe[ obligalion of Granlor Io Lender, whether exisling now or laler. Events Affecllng Guaranlor. Any of lhe preceding events occurs with respecl Io any guarantor, endorser, surety, or accommodation party of any of Ihe Indebledness or any guaranlor, endorser, surely, or accommodation parly dies or becomes incompetent, or revokes or dispules lhe validity of, or liabilily under, any Guaranty of the Indebledness. In lhe evenl of a death, Lender, al ils option, may, but shall nol be required 1o, permil Ihe guaranlor's eslale Io assume uncondilionally the obligations arising under the guaranly in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A malarial adverse change occurs in Granlor's financial condilion, or Lender believes lhe prospecl of paymenl or performance of Ihe Indebtedness is impaired. Insecurlly. Lender in good faith believes ilself insecure. Rlghl to Cure. If such a ~'ailure is curable and if Grantor has nol been given a notice of a breach of lhe same provision of lhis Mortgage within the preceding twelve (12) months, it may be cured (and no Event of Defaull will have occurred) if Grantor, attar Lender sends wrilten notice demanding cure of such failure: (a) cures Ihe failure within fifteen (15) days; or (b) if the cure requires more Ihan fitteen (15) days, immediately iniliates slaps sufficient Io cure'lhe failure and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably praclical. Loan No: 303860 0~,~[~ ~ MORTGAGE (Continued) Page 4 RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, al 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 Indebledness. Lender shall have the right al its oplion wilhout nolice to Grantor to declare Ihe entire Indebtedness immediately due and payable, including any prepaymen~ penalty which Grantor would be required to pay. UCC Remedies. With respecl to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, withoul notice 1o Grantor, 1o lake possession of lhe Property, including during Ihe pendency of foreclosure, whelher 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 lenanl or other user gl the Property lo make paymenls of renl or use fees directly to Lender. If {he Rents are collected by Lender, Ihen Grantor irrevocably designales Lender as Grantor's altorney-in-fact Io endorse instrumenls received in payment thereof in Ihe name of Granlor and to negotiate the same and collect the proceeds. Payments by lenanls 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 righls under this subparagraph either in person, by agent, or Ihrough a receiver. Appoinl Receiver. Lender shall have the righ! Io have a receiver appointed to take possession of all or any part of the Properly, wilh the power lo protecl and preserve lhe Property, to operale the Property preceding foreclosure or sale, and to collect the Renls from the Property and apply proceeds, over and above Ihe cost of the receivership, againsl lhe Indebledness. The receiver may serve without bond if permilled by law. Lender's right lo the appointment of a receiver shall exist whether or not lhe apparent value of the Property exceeds Ihe Indebledness by a substantial amount. Employment by Lender shall nol disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's inlerest in all or any part of the Property. Nonjudicial Sale. Lender may foreclose Grantor's interesl in all or in any parl of Ihe Property by non-judicial sale, and specifically by "pOwer of sale" or "adverlisemenl 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 Ihe exercise of the righls provided in this section. Tenancy al Sufferance. If Grantor remains in possession ot the Propedy after the Property is sold as Provided above or Lender olherwise becomes enlitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, eilher (1) pay a reasonable rental for the use of the Property, or (2) vacale the Property immedialely upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Modgage or the Note or available at law or in equity. Sale of the Property. To Ihe extent permitted by applicable law, Grantor hereby waives any and all right to have the Properly marshalled. In exercising ils rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled lo bid at any public sale on all or any portion of lhe Property. Nolice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the 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 the time of Ihe sale or disposition. Any sale of the Personal Property may be made in conjunclion with 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 election to make expenditures or to take action to perform an obligation ot Grantor under this Mortgage, after Grantor's failure to perform, shall not affect Lender's righl 1o declare a default and exercise its remedies. Noll~ing under this Mortgage or otherwise shall be construed so as to limit or reslrict the rights and remedies available to Lender following an Event of Defaull, or in any way to limil or reslricl Ihe rights and ability of Lender to proceed directly against Grantor and/or against any other co-maker, guarantor, surety or endorser and/or lo proceed against any other collateral direclly or indirectly securing the Indebtedness. Attorneys' Fees; Expenses. Ii 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 the extent not proh b ted by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its inlerest or the enforcement of its rights shall become a part of lhe Indebledness payable on demand and shall bear interest at the Note rate from the dale of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject 1o any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacale any automatic stay or injunction), appeals, and any anlicipated post-judgment colleclion services, lhe cost of searching records, obtaining title reports (including foreclosure repods), surveyors' reports, and appraisal fees and tille'insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all olher sums provided by law. NOTICES. Any notice required to be given under this Mortgage, including without limilalion 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 lelefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in Ihe 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 Modgage. Any party may change its address for notices under this Morlgage by giving formal wrilten notice to the giber parties, specifying that Ihe purpose of the notice is lo change the party's address. For notice purposes, Granlor agrees to keep Lender informed al all times of Grantor's currenl address. Unless otherwise provided or required by law, if there is more than one Granlor, any notice given by Lender 1o any Grantor is deemed to be notice given lo all Grantors. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a parl of this Mortgage: Amendments. This Mortgage, together w th any Related Documents, constitutes the entire [~nderstanding and agreement of the parties as to the mailers set forth in {his Mortgage. No alleration of or amendment lo Ihis Mortgage shall be effective unless given in writing and signed by the party or parlies sought to be charged or bound by the alleration or amendment. Annual Reports. If the Property is used for purposes other than Gran/or's residence, Granlor shall furnish to Lender, upon request, a certified statemenl of net operaling Income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Nel operaling income" shall mean all cash receipts from the Property less all cash expenditures made in connection wilh Ihe operation of Ihe Properly. Caption Headings. Caption headings in this Morlgage are for convenience purposes only and are nol to be used to interpret or define the provisions of lhis Mortgage. Governing Law. This Mortgage will be gover'ned by, construed and enforced In accordance wilh federal law and the laws of lhe State of Monlana, except and only Io Ihe exlenl of procedural matters relaled Io the perfection and enforcemenl of Lender's rlghls and remedies against lhe Property, which mailers shall be governed by lhe laws of the State of Wyoming. However, In the event lhal Ihe enforceability or validily of any provision of this Mortgage Is challenged or questioned, such provision shall be governed by whichever applicable state or federal law would uphold or would enforce such challenged or questioned provision. The loan transaction which is evidenced by the Nole and this Morlgage has been applied for, considered, approved and made, and all necessary loan documenls have been accepted by Lender In lhe State of Monlana. No Waiver by Lender. Lender shall nol be deemed Io have waived any righis '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 ot this Morlgage shall nol prejudice or constitute a waiver of Lender's righl otherwise to demand strict compliance with lhat provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course gl dealing between Lender and Grantor, shall constitute a waiver of any of Lender's righls or. of any of Grantor's obfigalions as Io any future transaclions. Whenever the ~:onsent ot Lender is required under Ihis Mortgage, the granting of such consenl by Lender in any inslance shall not constitute conlinuing consent to subsequenl inslances where such consent is required and in all cases such consent may be granted or withheld in the sole discrelion of Lender. Severabillty. II a court of competent jurisdiclion finds any provision of this Mortgage to be illegal, invalid, or unenforceable as to any circumstance, Ihal finding shall not make Ihe offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, Ihe offending provision shall be considered modified so that it becomes legal, valid and enforceable. If lhe offending provision cannot be so modified, il shall be considered deleted from lhis Morlgage. Unless otherwise required by law, the illegality, invalidily, or unenforceabilily gl any provision of Ibis Mortgage shall nol affecl Ihe legality, validity or enforceabilily of any other provision of this Mortgage. Loan No: 303860 MORTGAGE (Continued) 0 5 2 Page 5 Merger. There shall be no merger of the interesl or estale created by this Mortgage with any other interest or eslale in the Property al any lime held by or for the benefil of Lender in any capacity, wilhOut the written consent of Lender. Successors and Assignsl Subjecl 1o any limilalions slaled in this Mortgage on transfer of Granlor's interest, lhis Mortgage shall be binding upon and inure 1o lhe benefil of the parties, their successors and assigns. Il' ownership of the Property becomes vesled in a person olher than Granlor, Lender, wilhout notice Io Grantor, may deal with Grantor's successors 'with reference to this Mortgage and the Indebtedness by way of. forbearance or extension wilhout releasing Grantor from the obligations of this Mortgage or liability under the Indebledness. Time Is of the Essence. Time is of Ihe essence in lhe perfoi:mance of this Mortgage. Waiver of Homeslead Exempllon. Grantor hereby releases and waives all righls and benefils o! the homestead exemption laws of Ihe Slate of Wyoming as to all Indebledness secured by lhis Mortgage. DEFINITIONS. The following capilalized words and terms shall have lhe following meanings when used in lhis Mortgage. Unless specifically slaled Io Ihe Conlrary, all references to dollar amounls shall mean amounts in lawful money of lhe United Slates of America. Words and terms used in Ihe singular shall include Ihe plural, and the plural shall include the singular, as lhe conlexl may require. Words and lerms nol otherwise defined in this Mortgage shall have lhe meanings attribuled 1o such lerms in lhe Uniform Commercial Code: Borrower; The word "Borrower" means Wendell Harris Truslee for lhe Wendell Harris Profit Sharing Plan and includes all co-signers and co-makers signing the Nole. Default. The word "Default" means Ihe Defaull sel forlh in lhis Morlgage in the section filled "Default". Envlronmenlal Laws, The words "Environmenlal Laws" mean any and all slale, federal and local stalules, regulations and ordinances relating to the prolection of human heallh or Ihe environmenl, including wilhoul limitation lhe Comprehensive Environmental Response, Compensation, and Liabilily Acl of 1980, as amended, 42 U.S.C. Seclion 9601, el seq. ("CERCLA"), Ihe Superfund Amendmenls and Reaulhorization Act of 1986, Pub. L. No. 99-499 ("SARA"), Ihe Hazardous Malerials Transporlation Acl, 49 U.S.C. Seclion 1801, el seq., lhe Resource Conservalion and Recovery Acl, 42 U.S.C. Seclion 6901, el seq., or other applicable state or federal laws, rules, or regulations adopled pursuant lhereto. Evenl of Default. The words "Evenl of Defaull" mean any of the evenls of default sel fortl~ in this Morlgage in the evenls ot default section of this Morlgage. Granlor. The word "Grantor" means Wendell Harris Truslee for the Wendell Harris Profit Sharing Plan. Guaranty. The word "Guaranty" means Ihe guaranly from guaranlor, endorser, surely, or accommodation party Io Lender, including wilhoul limilalion a guaranty of all or part of lhe Nole. Hazardous Subslances~ The words "Hazardous Subslances" mean materials thai, because of their quanfily, concentration or physical, chemical or infectious characteristics, may cause or pose a present or polenlial hazard Io human heallh or the environmenl when improperly used, lrealed, slored, disposed of, generated, manufactured, Iransported or olherwise handled. The words "Hazardous Subslances" are used in their very broadesl sense and include wilhoul limilafion any and all hazardous or Ioxic subslances, materials or wasle as defined by or listed under Ihe Environmental Laws. The lerm "Hazardous Subslances" also includes, wilhoul limilafion, pelroleum and pelroleum by-producls or any fraclion Ihereof and asbestos. Improvemenls. The word "lmprovemenls" means all existing and fulure improvemenls, buildings, structures, mobile homes affixed on Ihe Real Properly, facililies, addilions, replacements and olher construction on Ihe Real Property. Indebiedness. The word "Indebtedness" means all principal, interest, and olher amounts, costs and expenses payable under Ihe Nole or Relaled Documenls, logelher with all renewals of, exlensions of, modificalions of, c°nsolidalions of and substilutions for Ihe Note or Relaled Documenls and any amounts expended or advanced by Lender 1o discharge Grantor's obligalions or expenses incurred by Lender 1o enforce Granlor's obligalions under this Mortgage, Iogelher With interesl on such amounts as provided in lhis Morlgage. Specifically, wilhoul limilalion, Indebledness includes all amounts Ihat may be indirectly secured by the Cross-Collaleralizalion provision of Ihis Morlgage. Lender. The word "Lender" means Rocky Mountain Bank - Broadus, its successors and assigns. Morlgage. The word "Mortgage" means this Mortgage belween Grantor and Lender. Note. The word "Note" means lhe promissory note dated November 25, 2003, in the original principal amount of $76,026.00 from Granlor. 1o Lender, Iogelher with all renewa s of, extensions of, modifications of, refinancings of, consolidations or, and subslilulions for the promissory hOle or agreement. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Properly. The words "Personal Property" mean all equipment, fixtures, and other arlicles of personal property now or hereafter owned by Grantor, and now or hereafler attached or affixed Io lhe Real Property; togelher wilh all accessions, paris, and addilions lo, all replacements of, and all substitutions for, any of such property; and t0gelher wllh all proceeds (including wilhout limilalion all insurance proceeds and refunds of premiums) from any sale or olher disposition of the Properly. Properly. The word "Property" means collectively Ihe Real Property and lhe Personal Properly. Real Property; The words "Real Properly" mean the real property, interesls and rights, as furlher described in lhis Morlgage. Relaled Documents. The words "Related Documenls" mean all promissory holes, credil agreemenls, loan agreemenls, environmenlal agreements, guaranties, securily agreemenl$, morlgages, deeds of trust, security deeds, collateral mortgages, and all olher instrumenls, agreemenls and documenls, whether now or hereafter existing, executed in conneclion wilh the Indebtedness. Renls. The word "Renls" means all present and future'rents, revenues, income, issues, royallies, profits, and olher benefits derived from the Properly. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. WENDELL HA R E FOR THE WENDELL HARRIS PROFIT SHARING PLAN By: " Wende)l/~l.,'~t~j'&l'~uslee of Wendell Harris Trustee for lh~e~ Harris Profll Sharing Plan (.)~_~.~} ~(:;?~ MORTGAGE O 5 3 Loan No: 303860 (Continued) Page 6 TRUST ACKNOWLEDGMENT STATE OF ) COUNTY OF ~.Lt...--~/~ )SS ) On this ~ 5~', ,'~ day of , 20 ~/ , before.me, the undersigned Nolary Public, personally appeared Wendell' Harris, Trustee of Wendell arrls Trustee for the Wendell Harris Profit Sharing Plan, and known ~o me to be an authorized trustee or agent of Ihe trusl thai executed lhe Mortgage and acknowledged lhe Morlgage Io be lhe free and voluntary act and deed of the trusl, by au{hority s~th in lhe trust documents or, by authority of slatule, for the uses and purposes Ihereiq mentioned, and on oalh stated that he or she is aulhorize~?-'~ecule this Mortg~e an~ in ,ac~ exAculed the Mortgageon behalf c, the trust. '~.V '