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HomeMy WebLinkAbout898636 - - - --~'~.:m..L" .~__ Position 5 UNITED STATES DEPARTiVlENT OF AGRICUUIPL~-EE I V E D Farm Service Agency LINCOLI'I COUNTY CLERK MORTGAGE FOR.WYOM~G 898636 Pil t,r THIS MORTGAGE ("instrument") is made on April 15, ,20 04 and Tracy Thornock FSA 1927-1 WY (10-28-03) , rThe, mortga~.~Ci~ [q~,s~}n aohn Thornock "~""blERER, ' ...... '*'" ~'" ("Borrower") whose mailing address is po aox 161, Cokeville, WY 83114 · This instrument is given to. tile United States of America, acting through the Farm Service Agency, United States Department of Agriculture ("Government") located at Afton, This instrument secures the following promissory notes, assumption agreements, and/or shared appreciation agreements (collectively called "note"), which have been executedor assumed by the Borrower uuless otherwise noted, are payable to the Government and authorize acceleration of the entire debt upon 'any default: ' Annual Rate Due Date of Final Date of Instrument Principal Amount of Interest Installment 04/15/200,t $200,, 000. O0 3. 625 04/15/2011 (The interest rate for any limited resource farm ownership or limited res~)urce operating loans secured by this instrument may be increased as provided in Government regulations and tile note.) By execution of this instrument, Borrower acknowledges receipt of all of tile proceeds of the loan or loans evidenced by the above note. This instrument secures to tile Government: (I) payment of the note and all extensions, renewals, and modifications thereof; (2) recapture of any amount due under any Shared Appreciation Agreement entered into pursuant to 7 U.S.C. § 2001; (3) payment of all advances and expenditures, with interest, made by the Government, and (4) the obligations and covenants of Borrower set forth in this instrument, the note, aud any other loan agreements. In consideration of any loan made by th& Government pursuant to the Consolidated Farm and Rural Development Act, 7 U.S.C. § 1921 et seq: as evidenced by tile note, Borrower irrevocably mortgages, grants and conveys to the Government the following described property situated in tile State of Wyoming, County or Counties of hincoln See attached Exlfibit A for legal description· · together with all rights (including the rights to ufining products, 'gravel, oil, gas, coal or other minerals), interests, easements, fixtnres, hereditaments, appurtenances, and improvements now or later attached thereto, the rents, issues and profits thereof, revenues and income therefrom, all 'water, water rights, and water stock pertaining thereto, and all paymentS at any time owing to Borrower by virtue of any sale, lease, transfer, or condemnation of any part thereof or interest therein (collectively called "the' property"). This instrument constitutes a security agreement and financing statement under lhe Uniform Commercial Code and creates a security interest, in all items which may be deemed to be personal property, including but not limited to proceeds and accessions, that are now or hereafter included in~ affixed, or attached to "the property." Borrower COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and bas the right to mortgage, grant and convey tbe property and that the property is unencumbered, except for encumbrances.of record. Borrower win-rants and will defeud the title to the pt:operty against all claims and demands, subjec~ to any encumbrances of record. This instrument combines uniform covenants for national use and non-uniform covenants witb limited variations by jurisdiction to constitute a uniform mortgage covering real property.. FSA 1927-1 WY (10-28-03) Page 1 of 6 . .. .. .... . , . . UNIFORM COVENANTS. Borrower COVENANTS AND AGREES as follows:~- ~:" ~"..::':.. 1. Payment. Borrower shall pay promptly when due any indebtedness to the Govermnent secured by this instrument. 2. Fees. Borrower shall pay to the Government such fees and other charges that may now or later be required by Government regulations. .... 3.. Application of paymentsl~ Unless appliC'able law or Government's regulations provide otherwise, all payments received by G0vermnent sball be applied ill the foll0'wing Order of priority: (a) to advances made Under tiffs instrument; (b) to accrued interest due under the note; (C) to .principai dtie under the note; (d) to late charges and other fees add charges . · 4. Taxes, liens, etc. Borrower shall pay when due all taxes, liens, judgmentS, encumbrances, and assessments lawfully attaching to or assessed against the property and promptly deliver to the Govermnent without demand:receipts evidencing such payments. 5. Assignment. Borro~ver grauts and assigns as additional security all the right, title and interest in: (a) the proceeds 0f any award or Claim for damages, direct or consequential, in connection with any condemnation or taking by eminent domain or otherwise of any part of the property, or for conveyance in lieu of condemnation; (b) all bonuses, rentals, royalties, damages, delay rentals and income that may be due or become dne and p.ayable to the Borrower or Bon'owm:'s assigns under any existing or furore oil, gas, mining or mineral lease covering any portion of the property; and (c) all rents, issues` profits, income and receipts from the property and from all existing or flm~re leases, subleases, licenses, guaranties and any other agreements for the use and occupancy of any portion of the property including any exteusions, renewals, modifications or substitutions of such agreements. Borrower warrants the validity and enforceability of this assignment. Borrower autborizes and directs payment of such money to the Government until the debt secured by this instrument is paid in full. Such money may, at the option of the Govermnent, be. applied on the debt whether due or not. The Government shall not be obligated to collect such money, but shall be responsible only for amounts received by the Government. In the event any item so assigned is determined to be personal property, this instrument will also be regarded as a security agreement. Borrower will promptly provide the Government with copies of all existing and future leases. Borrower warrants that as of the date of executing this instrument no default exists under ~xisting leases. Borrower agrees to maintain, and to require the tenants to comply with, the leases and any apphcable law. Borrower will obtain the Govermnent's written authorization before Borrower consents to sublet, ~nodify, cancel, or otherwise alter the leases, or to assign, compromise, or encumber rile'leases or any future'rents. Borrower will hold the Government harmless and indemnify the Govermnent for any and all liability,i0ss or damage that tile Government may incur as a consequence of this assignment. 6. Insurance. Borrower shrill keep tim property insured as required by and under insurance policies aPProved by the Government and, at its request, deliver such policies to the Government. If property is located in a'designated flood Iiazard area, Borrower also shall keep property insured as required by 42 U.S.C. § 4001 et seq. and Govermnent regulations. All insurance' policies and renewals shall include a standard mortgagee clause. '. 7. Advances by. Government. The Government ~nay at any time pay any other amounts required by this iustrument to be paid by Borrower and not paid by Borrm;ver when due, as well as any cost for the preservation, protection, or enforcement of this lien, as advances for the account of Borrower. Advances shall include, but not be limited to, advances for payments of real property taxes, special assessments, prior liens, hazard insurance premiums, and costs of repair, maintenance, and 'improvements. All such advances shall bear interest at the same rate as tile note which has tile highest interest rate. All such advances, with interest, shall be inunediately due and payable by Borrower to the Government without demand. No such advance by the Govermnent shall relieve Borrower from breach of Borrower's covenant to pa5,. Any payment made by Borrower may be applied on the note of auy secured debt to tile Government, in any order the Government determines. 8. Protection of lien. Borrower shall pay or reimburse the Government for expenses reasonably necessary or incidental to the protection of the lien and its priority and the enforcement or compliance with this instrument and the note. Such expenses include, but are not limited to: costs of evidence of title to, and survey of, the property, costs of recording this and other instruments; attorneys' fees; trnstees' fees, court costs; and expenses of advertising, selling, and conveying the property. 9. Authorized purposes. Borrower shall use the loan evidenced by the note solely for purposes authorized by the Government. 10. Repair and operation of property. Borrower Shall: (a) maintain improvmnents in good repair; (b) make repairs required by the Government; (c) comply with all farm conservation practices and farm managmnent plans required by the Government, and (d) operate the property in a good and busbandlike manner. Borrower shall not (e) abandon the property; (f) cause or permit waste, lessening or impairment of the property; or (g)cut, remove, or lea'se any timber,' gravel, oil, gas, coal, or other nfinerals without the written consent of the Governmeni, excePt as necessary for ordinary domestic purposes ' : '" · . ~11. Legal co~npliance:. Borrower shall Comply with all laws, ordinances, and regulations affecting the property., 12. Transfer Or encumbrance of property. Except as provided by Government regulationS, the BorrOwer shall not 'lease; assign, sell, transfer, or encumber, voluntarily or otherwise, any of tile property without the written conseut of the Government. The Government may grant consents, partial relehses, subordinations, and satisfactions in accordance with Government regtdations. Initial ''~ [ date 4~-~, FSA 1927-1 WY (10-28-03) Page 2 of 6 13. Inspection. At all reasonable times the Government may inspect the property to ascertain whether the covenants and agreements contained in this instrument are being performed. 14. Hazardous substances, Borrowei' Shall not cause or permit the presence, use, disPosal, storage, or release of any hazardous substances on or in the 13rOperty. The Pr~e. cedin~ sentence shall not hpply to the presence,' use,'0r storage On the"property of small quantities of hazardOUs SubstanCe~ 'il~i~t'~/r~Zgeiie~-,qly recognized to be appropriate tO 'norm~il'use and mainienance Of the · ." property. Borrower covenants tha~ BOrrow~?'h:hs n~i~ie'"full disclosure of any ~uch khdk, n:,: Cxi:sting ha~hrd°Us Conditiohs affecting the property. Borrower shall not do, n°r allow anyone, else to do, anything affecting the property that is in 9iolation of any federal, state, or local environmental law'or regulation. 'Borrower shall promptly give the Government. written notice of any investigation, claim, demand, lawsuit or other action by any govermnental or regulatory agency or private party involving the property and any hazardous substance or environmental law or regulation of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any hazardons substance affecting the property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with applicable environmental law and regulations. As used in this paragrapb, "hazardous substances" are those substances defined as toxic or hazardous substances by environmental law and the followin,g substances: gasoline kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph, "environmental law" means Federal laws.and regulations and laws and regulations Of the jurisdiction where the property is located that relate to health, safety or environmental protection. 15. Adjustment; release; waiver; forbearance. In accordance with Government regulations, the Government may (a) adjust the interest rate, payment, terms or balance due on the loan, (b) increase the mortgage by an amount equal to deferred interest on the outstanding principal balance, (c) extend or defer the maturity of, and renew and reschedule the payments on tl~e note, (d) tel'ease any party who is liable under the note from liability to the Government, (e) release portions of the property and subordinate its lien, and (f) waive any other of its rights under this instrument. Any and all of this can and will be done without affecting the lien or the priority of this instrument or Borrower's liability to the Government for payment of the note secured by this instrmnent unless the Government provides'0therwise in writing. HOWEVER, 'any forbearande by the Government -' whether once or often - in exercising any right or remedy under this insh'ument, or otherwise afforded by applicable law, shall not be a whiver of or preclude 'the exercise of anysuch right or ?emedyJ '. .......... 16. Graduation. If the Government deternfines that Borrower'may be able to obtain a loan from a responsible cooperative or private credit sore:ce at reasonable rates and terms for loans for similar purposes and peri'ods of time, Borrower will, upon the Government's request, apply for and accept such a loan in sufficient amount to'Pay the note secured by this instrument and to pay for stock ff~'cessary to be purchased in a c0operative'lending agency in connection with such loan. 17. Forfeiture. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in the Government's good faith jndg/neht could result in forfeiture of the property or otherwise materially impair the lien created by this instrument or the Govermnent's security interest. Borrower may cure such default by causing the actiou or proceeding to be dis~nissed with a ruling that preclndes forfeiture of the Borrower's interest in the property or other material impairment of the lien created by this security instrument or the Government's security interest. 18. False statement. Borrower also shall be in default if Borrower, during the loan application process, gave materially false or inaccurate information .pr' s.ta[ements to the Government (or failed to provide the Government with any material informationJ in connedtion with the'loan evid~imed by the note~ ' '" ' "'.' ' · 19. Cross Collateralization. Defautt under this instrument Shall constitute default under any other security instrument held by the Government and executed Or assumed by Borrower. Default under any other such security instrument shall constitute default under this instrument. 20. Highly erodible land; wetlands. Any loan secured by this instrument will be in default if Borrower uses any loan proceeds for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricul[ural com~nodity as provided in 7 C.F.R. Part 1940, subpart G, or any successor Government regulation. 21. Non-discrimina'tio'h. If a~ny i3hrt of the loan for which this instrument 'is given Sh'ali be used to finance the purchase, construction or repair of property to be used asan owner-occupied dwelling .(herein called "the dwelling") and if B orrowe? intends to sell or rent the dwelling an~l has obtain~i'the.' G0verninent's consent tO 'do so }a) neither Borrower nor anyone authorized to act for .... Borrower will, after receipt of a ¢~ma fide off6i~,"reft~se tb hegotiate' for th'e Sale or rental of tile dwelling or'Will otherwise lnake unavailable or deny the dwelling to anyone because of race, color~ religion, sex:, 'uational origin, disability, familial status or age, and (b) Borrower recognizes as illegal and hereby disclaims, and will not comply with or attempt to enforc.e any restrictive covenants on the dwelling, relating to race, color, religion, sex, national origin, disability, fmnilial status' or age. Initial'---~ \ date "3~-~'~3'-~z~ FSA 1927-1 WY (10-28-031 Page 3 of 6 22. Notices. Notices given under this instrument shall be sent by certified mail unless otherwise required by law. Such notices shall be addressed, unless aud until some other address is designated in a notice, in the case of the Government to the State Executive Director of the Farm Service Agency at the urailing address shown above, and in the case of Borrower at the address shown in the Government's Finance Office records (which normally will be the same as the mailing address shown above). : .. 23..Governing law; Severability.' This instrument shall be governed by Federal law. If any provision of this instrument or the note or its application to any person Or circumstances is beld invalid, such in. validity shall not affect other provisions or applications of this instrument or the note which can be given effect without the invalid provision or application. The provisions of this instrument are severable. This instrument shall be subject to the present regulations of the Government, and to its future regulations not inconsistent with the express provisious hereof. All powers and agencies granted in this instrument are coupled with .. an interest and are irrevoCable by death or otherwise, and !he rights and remedies provided in this instrument, are cumulative to ~. reinedies provided by law. . . 24. Snccessors and assigns; joint and several covenants. The covenants and agreements of this instrument shall bind and benefit the successors and assigns of Government and Borrower. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this instrmnent but does not execute the Note: (a) is co-signing this instrument only to mortgage, grant and convey that. Borrower's interest in the property under this instrument; (b) is not personally obligated to pay the sums secured by this instrument; and (c) agrees that the Government and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this instrument or the note without that Borrower's consent. 25. No merger. If this instrument is on a leasehold, Borrower shall comply with all the pr'ovisions of the lease. If Borrower acquires fee title to the property, the leasehold and the fee title shall not merge unless the Government agrees to the merger in writing. If the property is conveyed to the Government, title shall not merge (unless the Government elects otherwise) and the lien provided under this instrument shall not be affecte.d by such conveyance. 26. Ti~ne is of the essence. Time is of the essence in the Borrower's performance of all duties and obligations uhder this instrument. NON-UNIFORM COVENANTS. Borrower further COVENANTS AND AGREES as follows: 27. Default; death; incompetence; bankruptcy. Should default occur in the p~grformance or discharge of any obligation in this instrument or secured by this instrument, or should the Borrower die or be declared incompetent, or should the Borrower be discharged in bankruptcy or declared an insolvent or make an assigmnent for the benefit of creditors, the Government, at its option, with or without uotice, may: (a) declare tlie entire amount unpaid under the note and any debt to the Government hereby secured immediately due'and payable, (b)for the account of Borrower incur and pay reasonable expenses for repair or maintenance of, and take possession of, operate or rent tlie property, (c) upon application by it and production of this instrument, without other evidence and without notice of hearing of said application, have a receiver appointed for the property, with the usual powers of receivers in like cases, (d) foreclose this instrument and sell the property as prescribed by law, and (e) enforce any and all other rights and remedies provided herein or by present or future law. 28. State law. Borrower agrees that the Government will not be bonnd by any present or future state laws, (a) providing for valuation, appraisal, homestead or exemption of the property, (b) prohibiting maintenance of any action for a deficiency judgment or limiting the amount thereof or the time within which such action must be brought, (c) prescribing any other statute of limitations, (d) allowing any right of redemption or possession following any foreclosure sale, or (e) limiting the conditions Which the Government may by regulation impose, including the interest itmay charge, as a condition of approving a transfer of the property to a new Borrower.' Bon'ower expressly waives the benelit of any such State laws. 29. Assignment of leases and rents. Borrower agrees that the assignment of leases and rents in this instrument is iinmediately effective on the recording of this instrument. Upon default, the Borrower will receive any rents in trust for the Government, and Borrower will not commingle the rents with any other funds. Any amounts collected shall be applied at the Government's discretion first to costs of managing, protecting and preserving the property, and to any other necessary related expenses. Auy remaining alnounts shall be applied to reduce the debt evidenced by the note(s). Borrower agrees that the Government may demand that Borrower a~d Borrower's tenants pay all rents due or to become due directly to the Government if the Borrower defaults and the Government notifies Borrower of the defaolt. Upon such notice, Borrower Will endorse and deliver tothe Government any payments of rents. If the Borrower becomes subject to a bankruptcy, then Borrower agrees that the Govermnent is entitled to receive relief frotn the automatic stay in bankruptc'y for the'purpose of enforcing this assignment. 30. Application of foreclosure proceeds. The proceeds of fOreclosure sale shall be applied in the following order to the pay~nent of: (a) costs and expenses incident to enforcing or co~nplying with this instrument, (b) any prior liens required by law or a competent court to be so paid, (c) the debt evidenced by the note and all other debt to the Government secured by this instrument, (d) inferior liens of record required by law or a competent court to be so paid, (e) at the Government's option, any other debt of Borrower to the Government, and (f) any balance to Borrower. If the Government is the successful bidder at foreclosure or other sale of all or auy part of the property, the Government may pay its share of the purchase price by crediting such amount on any debts of Borrower owing to the Government in the order prescribed above. FSA 1927-1 WY (10-28-03) Page 4 of 6 31. Power of Sale. At the option of the Government this ~nortgage may be foreclosed by action or advertisement under Power qf Sale as provided by law and statute, and Borrower here irrevocably vests in the Govermnent the statutory Power of Sale. 32. Surplus Proceeds. Borrower hereby assigns to the Government all ' ' ' Borrower s rights under Wyoming law, Or any other legal authority, to surplus proceeds and/or surplus funds remaining after the sale of the:~'c.urity property under statutory Power of Sale procedures or any foreclo'sure sale, or similar sale, exercised by any foreclosing 'or other party and hereby waives any cliiim against any ~officer 9r any otber pm;s6n making Spch sale for paying said surpl~i~ tO the Governmeut. '"~' '~ .... : ~'' ". !'"'.~: ' ',' .... :' 33." Grazing Permlisi. 'B'b't~6~)er }:~reby a~'gign~ 0'~:' waives in favor of tlie G0~ern:ifiCnt all gt/a)ing prlViieg~s:i pei:mits,'. license'sl or'leases"appurten~nt't0 or used in connection with said land, and Borrower further Covenants and agrees io execute any and all forms and documents tliht mhy be necessary and{or required by Government to effect said 'assignn~ent Or Waiver and further covenants and agrees to procure renewals thereof prior to their expiration and to pay all tees and charges and to perform all acts and do things necessary to keep and preserve all said grazing rights and renewals thereof, and in the event of the failure of Borrower to do any of tbese things these the Government may do so on behalf of Borrower, iucluding advancing such stuns as inay be necessary for this purpose, and such funds advanced shall be secured by the instrument. By signing below, Borr6wei"accepts and hgrees to 'the terms a~d covenants cOntained in this instrument and in any rider executed by Borrower and recorded with this instrument. ACKNOWLEDGMENTS STATE OF WYOMING COUNTY OF Lincoln ~ (Individual) On this lSl:_h day of. ,h, pril in the year 2004 , before me, the undersigned, personally appeared o'ason John Thornock and Tracy Thornook to be known to me to be same whose name is subscribed to the foregoing instrumenl, and acknowledged that (he or Sl~e) signed and delivered the'instrument as (his' Or her) ~ree and.voluntary acts, for the uses and purposes set forth. (SEAl.) (SEAL) My comnfission expires: J ;i:~.:.' ,, Note: Page 6 of 6 applies to entities otly. and will.not be recorded for i'udividUals. Initial ~"~ I date NOTARY PUBLIC FSA 1927-1 WY (10-28-03) Page 5 of 6 ATTACHMENT A Lot 1 of the Dayton Third Addition and a Division of the Dayton Second Addition, to the Town of Cokeville, Lincoln County, Wyoming as described on the official plat thereof. Page 1 of 1