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HomeMy WebLinkAbout89956530669 899565 RECEIVED · L NCOLN COUNTY CLERK State of Wyoming Space Above This Line For Recording Data REAL ESTATE MORTGAGE (With Future Advance Clause) DATE AND PARTIES. The date of this Mortgage is 05-21-2004 are as follows: CRAIG L. KENDALLAND WENDYJ. KENDALL, HUSBAND AND WIFE 11020 280TH ST. EAST GRAHAM. WA 98938 MORTGAGOR: and the parties and their addresses [] Refer to the Addendum whi,;h is attached and incorporated herein for add tional Mortgagors. LENDER: BANK OF JACKSON HOLE ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF WYOMING 990 W. BROADWAY P.O BOX 7000 JACKSON. WY 89002 MORTGAGE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debt (hereafter defined), Mortgagor grants, bargains, conveys, mortgages and warrants to Lender, with the power of sale, the following described property: LOT 632-6. LAKEVIEW ESTATES. A SUBDIVISION IN LINCOLN COUNTY, WYOMING, AS LAID DOWN AND PLATTED ON THAT PLAT RECORDED IN THE OFFICE OF THE LINCOLN COUNTY CLERK. The property is located in LINCOLN at 171 CENTER STREET (County) , ALPINE , Wyoming 83127 (Address) (CiwI (Zip Code) Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop producers, and all exmting and future improvements, swuctures, fixtures, and replacements that may now, or at any tm]e in the future, be part of the rea estate described above (all referred to as "Property"). The term Property also includes, but is no[ limited to, any and all water wells, water, ditches, reservoirs, reservoir sites and dams located on the rea estate and all riparian and water rights associated with tile Property, however established. WYOMING - AGRICULTURAL.~COMMERCIAL REAL ESTATE SECURITY INSTRUMENT (NOT FOR FNMA. FHLMC, FHA OR VA USE. AND NOT FOI~ CONSUM~ P~J~.~§SES) _ (page/1 of 8) 3. MAXIMUM OBLIGATION LIMIT ]-he total principal amount of the Secured Debt (hereafter defined) secured by this Mortgage at any one time sha:l not exceed $ 17§.000.00_ ' · · This limitation 'of amount does not ~ncJude interest loan charges commitment fees, brokerage commissions, attorneys' fees and other charges validly made pursuant to this Mortgage and does not apply to advances (or interest accrued on such advances) made under the terms of this Mortgage to protect Lender's security and [o perform any of the covenants contained tn this Mortgage. Future advances are contemplated and, along with other future obliger ohs are secured by this Mortgage even though all o¢ part may not yet be advanced. Nothing 'n this Mortgage, however, shall constitute a commitment to make additional or future loans or advances Jn any amount. Any such commitment wet, Id need to be agreed [o in a separate writing. A. The promissory note[s), r u renewals modifications Y evidence of debt described below and all extensions, ' or sL~bstitutions. (When referencing .the debfs be/ow if is suggested tha~ you inchzde items s~zch as borrowers' names and addresses, nofe principal amounts, commercial revo/v/ng loan agreement's maximsm arnounc inferes¢ rafes, var~able ra~e fo/ms, mafurify dates, eft.) B. All future advances from Lender to Mortgagor or other future obligations ~f Mortgagor rD Lender under any prommsory note, contract, guaranty, or other evidence of debt existing ~low or execu[e~ after this Mortgage whether or not this Mortgage's specifically referred to in the evidence of debt. C. All obligations Mortgagor owes to Lender, which now exist or may later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. All additional 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 Mortgage, plus interest at the highest rate Jn effect, from time to time, as provided in the Evidence of Debt. E. Mortgager's performance under the terms of any instrument evidencing a debt by Mortgagor to Lender and any Mortgage securing, guarantying, or otherwise relating to the debt If more than one person s~gns this Mortgage as Mortgagor, each Mortgagor agrees that this Mortgage will secure future advances and future obligations described above that are given to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others ]-his Mortgage will not secure any other debt if Lender fails, with respect to such other debt, to make any required disclosure about H~is Mortgage or if Lender fails to give any required notice of the righl of rescmsion. PAYMENTS. Mortgagor agrees to make ali payments on the Secured Debt when due and in accordance with the terms of the Evidence of Debt or this Mortgage. CLAIMS AGAINST TITLE. Mortgagor wil pay rents, utilities, and other charges relati~lg to tile all taxes, assessments, liens, encumbrances, lease payments, Property when due. Lender may require Mortgagor to provide to ground cop~es of all notices that such araoun{s are due and the receipts evidencing Mortgager's payment. Mortgagor will defend Lender title to the Property against any claims that would impair the lien of this Mortgage. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses which Mortgagor may have against parties who supply labor or materials to improve or mainlain the Property. PRIOR SECURITY INTERESTS. Wifh 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 and that may have priority over this Mortgage, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. To promptly deliver to Lender any notices that Mortgagor receives from tho holder. C. Not to make or permit any modification or extension of, and not to request or accept any future advances under any note or agreement ~;ecured. by, the other mortgage deed of trust or security agreement unless Lender consents in writing. , DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of any lien, encumbrance, transfer, or sale, or contract for any of these on the Property. However, jf the Property includes Mortgager's residence, this section shall be subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. For the purposes of this section, the te~m "Property" also includes any interest to all or any part of the Property. This covenant shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this Mortgage is released. F--,~---~ © ]993, 200] Bankers Systems, Inc., St. cloud, MN Form AGCO-RESI-Wy 1/]612003 /page 2 of 8) 9. TRANSFER OF AN INTEREST I1~ THE MORTGAGOR. If Mortgagor is an entity other than a natural person (such as a corporation or other organization), Lender, may demand immediate payment if (1) a beneficial interest in Mortgagor is sold or transferred; (2) there is a change in either tt~e identity or number of members of a partnership or similar entity; or (3) there is a change in ownership of more than 25 percent of the voting stock of a corporation or similar entity. However, Lender may not demand payment', in the @bove situations if it is prohibited by law as of the date of this Mortgage. 10. ENTITY WARRANTIES AND RE.~RESENTATIans. If Mortgagor is an entity other than a natural person (such as a corporation or oliver organization), Mortgagor makes to Lender the following warranties and representations which shall be continuing as long as the Secured Debt remains outstanding: A. Mortgagor is an entity which is duly organized and validly existing in the Mortgager's state of incorporation (or organization). Mortgagor is in good standing in all states in which Mortgagor transacts business. Mortgagor has the power and autl~ority to own the Property and to carry on its business as now being conducted and, as applicable, is qualified to do so in each state in which Mortgagor operates. B. The execution, delivery a. nd performance of this Mortgage by Mortgagor and the obligation evidenced by the Evidence of Debt are within the power of Mortgagor, have been duly authorized, have received all necessary governmental approval, al~.d will not violate any provision of law, or order of court or governmental agency. C. Other than disclosed in writing Mortgagor has not changed its name within the last ten years and has not used any othe~ trade or fictitious name. Without Lender's prior written consent, Mortgagor does not and will not use any griper name and will preserve its existing name, trade names and franchises until the Secured Debt is satisfied. 11. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs tl~at are reasonably necessary. Mortgagor will give Lender prompt notice of any loss or damage to the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor will not initiate, join in or consent to any change in any private restrictive covenant, zoning ordinance or other public or private restriction limiting or defining the uses which may be made of the Property or any part of the Property, without Lender's prior written Consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor or any other owner made under law or regulation regarding use, ownership and occupancy of the Property. Mortgagor will comply with all legal requirements and restr ct ohs, whether public or private, with respect to the use of the Property. Mortgagor also agrees that the nature of the occupancy and use will not change without Lender's prior written consent. No portion of the Property will be removed, demolished el materially altered without Lender's prior written consent except that Mortgagor has the right to ',remove items of personal property comprising a part of the Property that become worn or obsolete, provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free from any title retention device, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to d~e security interest created by this Mortgage. Mortgagor shall not partition or subdivide the Property without Lender's prior written consent. Lender or Lender's agents may, at Lender's option, enter the Property at ~ny reasonable time for the purpose of inspecting the Property. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 12. AUTHORITY TO PERFORM. If Mortgagor fails to perform any of Mortgager's duties under this Mortgage, or any other mortgage, deed of trust, security agre~:ement or other lien document that has priority over this Mortgage, Lender may, without notice, perform the duties or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgager's name or pay any amount necessary for performance. If any construction on the Property is discontinued or not carried on in a reasonable manner,. Lender may do whatever is necessary to protect Lender's security interest in the Property. This may include completing the construction. Lender's right 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 this Mortgage. Any amoL~nts paid by Lender for insuring, preserving or otherwise protecting the Property and Lender's security interest will be due on demand and will bear interest from the ,']ate of the payment until paid in full at the interest rate in effect from time to time according to the terms of the Eviden'ce of Debt. 13. ASSIGNMENT OF LEASES AND RENTS. Mortgagor assigns, grants, bargains, conveys, mortgages and warrants to Lender as additional security all the right, title and interest in the following (Property). A. Existing or future leases, subleases, licenses guaranties and any other written or verbal agreements for the use and occupancy of 'the Property, including but not limited to, any extensions, renewals, modifications or replacements (Leases). B. Rents, issues and Profits, including but not limited to, security deposits, minimum rents, percentage rents, additional rents, common area maintenance charges, parking charges, real estate taxes, other applicable taxes, insurance premium contriSutions, liquidated damages following default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties~ proceeds, bonuses, accounts, contract rights, general intangibles, and all rights and claims whic'.h Mortgagor may have that in any way pertain to or ara on account, of the use or occupancy of the whole or any part of the Property (Rents). y, this Assig~ In the event any item listed as Leases or Rents is deten-nined to be personal propert ~ment will also be regarded as a security agreement. ~ (page 3 of 8)  © 1993, 2OO1 Banke~ Sy~t~r~, Inc., St;. CLoud, MN I:~rm AGCO-RESI-WY ~/16/2003 Mortgagor will promptly provide Lender with copies of the Leases and will certify these Leases are true and correct copies. ]-he existing Leases will be provided on execution of the Assignment, and all of the future Leases and any other information with respect to these Leases will be provided immediately after they are executed. Mortgagor may collect, receive, enjoy and use the Rents 'so long as Mortgagor is not in default. Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgago~ first obtains Lender's wrilten consem. Upon default, Mor~gagor will receive any Rents in trust for Lender and Mortgagor Will not commingle the Rems wiih any other funds. When Lender so directs, Morlgagor will endorse and deliver any paymenls of Reals from lhe Propeay to Lender. Amounis collecied will be applied at Lender's discretion ~o ~he Secured Debts, the costs of managing, prolecling and preserving ~he Properly, and mher necessary expenses. Mortgagor agrees that lhis Security Instrumenl is immediately effeclive between Mortgagor and Lender. This Security Instrumen~ will remain effective during any sZatutor~ redemption period ualil the Secured OebIs are satisfied. Unless otherwise prohibited or prescribed by state law, Morlgagor agrees thai Lender may ~ake acIual possession of lhe Property without the necessily of commencing any legal action or proceeding. Mortgagor agrees that actual possession of Ihe PrOperty is deemed to occur when Lender notifies Mortgagor of Mortgager's defaulI and demands that Mortgagor and Mortgagor.s tenants pay all Reals due or to become due direcdy to Lender. Immediately afler Lender gives Mortgagor the no'rice of default, Mor~gagor agrees that eilher Lender or Mortgagor may Jmmedialel~ holily lhe tenants and demand that all future Reals be paid diroclly ~o Lender. As long as this Assignment is in effect M0rtgag~r warrants and represents lhat no default exists under the Leases, and the parries subject to lhe Leases have not violated any applicable law on leases, licenses and landlords and lenanls. Morlgagor, al ils sole cost and expense, will keep, observe and perform, and require all oIber parries Io the Leases ~o comply with the Leases and any applicable law. If Mortgagor or any party ~o Ihe Lease defaults or fails lo observe any applicable law, Mortgagor will prompdy notify Lender. If Mor~gagor neglems or refuses ~o enforce compliance wiih lhe terms of the Leases, lhen Lender may, a! Lender's oplion, enforce compfiance. Mortgagor will noz sublet, modify, extend, cancel, or o~herwise al~er ~he Leases, or accepi ~he surrender of [he Property covered by lhe Leases (unless the Leases so require} wJlhout Lender's consem. Mortgagor will not assign, compromise, subordinate or encumber the Lea, ses and Rents wJlhoul Lender's prior wri[ten consent. Lender does riel assume or become liable for lhe Property's mainIenance depreciation, or o~her losses or damages when Lender acts 1o manage,' Prelect or preserve the Properly, except for losses and damages due to Lender's gross negligence or imendonal ~orls. pIherwise, Mortgagor will inffemaify' Lender and hold Lender harmless for all liab lily loss or damage [ha~ Lender may ~ncur when Lender opls to exercise any of its remedies agains[ any parW obligated under Ihe Leases. .14. COnDOMiniUMS; PLA~ED U~IT DEVELoPMEnTS. If the Properw includes a Unit in a condominium or a planned uni~ development, Mortgagor will perform all of Mortgager's dudes under line covenants, by-laws, or regulations of the condominium or planned unit deveJopmenl. 15. DEFAULT. Morlgagor will be in defaul~ if any of Ihe following occur: A. Any party obligated on [he Secured Debt fails ~o make payment when due; B. A breach of any term or covenant in this Mortgage, any prior mortgage or any cons[ruction loan agreement, security agreemenl or any other document evidencing, guarantying, securing or otherwise relalJng ~o O~e Secured Debu C. The making or furnishing of any :verbal or writlen represemaiion, stateroom or warranty m Lender ~hat is false or incorrect in any malerial respecl by Mortgagor or any person or endW obligated on ~he Secured Debu D. The deaIh, dissolution, or insolvency of, appoimment of a receiver for, or application of any debtor relief law ~o, Morzgagor or any person or' endW obligated on the Secured Deb~; E. A good faith belief by Lender al any time that Lender is insecure wi~h respect 1o any person or emily oblige[ed on the Secured Debt or 0~aI the prospec[ of any payment is impaired or Ihe value of the Property is impaired; F. A material adverse change in Mortgager's business including ownership, managemenL and financial condi~ oas which Lender in its opinion believes impairs the value' of Ihe Property or repaymeat of the Secured Oebu or G. Any loan proceeds are used for a purpose that w II conlrJbute ~o excessive erosion of hJghlF credible land or to lhe conversion of wetlands m produce an agricultural commodity, as further explained in 7 C.V.R. Peri 1940, Subpart G, ExhibJl M. , 16. REMEDIES O~ DEFAULT. In some,: insIances, federal and sla~e law will require Lender lo provide Mortgagor wi~h nolice of zhe right m cure, mediation amices or o~her notices and may establish lime schedules for foreclosure actions. Subjec~ to lhese limital oas if any, Lender may accelerale lhe Secured Debl and foreclose this Morigage in a manner provided by law if ~his Mor~gagor is in defaulL Al the opzion 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 lhe occurrence of a defaul~ or anylime lhereafter. In addition, Lender shall be enti~t ed lo all the remedies provided by law, Ihe Evidence of Debt, other evidences of debL ibis Mortgage and any related documents including wilhoul limitation, lhe power Ia sell Ihe Properly. All remedies are distincl', cumulative and not ~.exc usive and Ihe Lender is emitled 1o all remedies provided at law or equity, whether expressly set forth or noL The ac'ceplance by Lender of any sum in paymem or parlJal paymem on the Secured OebI after ~he balanoe is due or s acceleraled or after foreclosure proceedings are filed shall nol constitute a waiver of Lender's right to require full and complele cure of any existing default. By nol exercising any remedy on Mortgager's defauh, Lender does not waive Lender's right to later consider 0~e event a default if it cominue~ or happens again. 17. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS· Except when prohibited by law, Mortgagor agrees to pay all ot Lender's expenses if Mortgagor breaches any covenant in this Mortgage. Mortgagor will also pay on demand all of Lender's expenses incurred in collecting, insuring, preserving or protecting the Property or in any inventories, audits, ~nspections or other examination by Lender in respect to the Property· Mortgagor agrees to pay all costs and expenses incurred by Lender in enforcing or protecting Lender's rights and remedies under this Mortgage, including, but not limited to, attorneys' fees, court costs, and other legal expenses. Once the Secured Debt is fully arid finally paid, Lender agrees to release this Mortgage and Mortgagor agrees to pay fo~ any recordation costs. All such amounts are due on demand and will bear interest from the time of the advance at the highest rate in effect, from time to t~me, as provided in the Evider, ce of Debt arid as permitted by law. 18. ENVIRONMENTAL LAWS AND HAZARDOUS 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.), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment 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 term includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environmental Law. Mortgagor represents, warrants and agrees that, except as previously disclosed and acknowledged in writing: A. No Hazardous Substance has been, is, or will be located, transported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in the ordinary course of business and in strict compliance with all applicable Enviror~mental Law. B. Mortgagor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release or threatened release of. Hazardous Substance occurs on, under or about the Property o~ migrates or threatens to m grate from nearby property; or (2) there is a violation of any Environmental Law concerning the Properw. In such an even[, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Mortgagor has no knowledge of or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about tire Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, bu! not the obligation, to participate in any such proceeding including the right to receive copies of arty documents relating to such proceedings. E Mortgagor and every tenant have been, are and shall remain in tull compliance with any applicable Environmental Law, F There are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank, dump or well will be added unless Lender first consents in writing. G Mortgagor will regularly i!~spect the Property, monitor the activities and operations on the Propmty, and confirm that all permits, licenses or approvals required by any applicable Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender or Lender's agent· to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Substance on,' under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under or about the Property; or (3) whether or not Mortgagor and any tenant are in corrtpliance with applicable Environmental Law. h Upon Lender's request and at any time, Mortgagor agrees, ar Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J. Lender has the right, bur not the obligation, to perform any of Mortgagor'~ obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, warranty or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of t gation and attorneys' fees, which Lender and Lender's successors or assigns may sustain; and (2) at Lende. r's discretion, Lender may release this Mortgage and in return Mortgagor will provide Lender with collateral of at least equal value to the Property secured by this Mortgage without prejudice to any of Lender's rights under this Mortgage. L. Notwithstanding any of the language contained in this Mortgage to the contrary, the terms of this section shall survive any foreclosure t)r satisfaction of this Mortgage regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 19. CONDEMNATION. Mortgagor will give Lender prompt notice of any action, real or threatened, by private or public entities to purchase or take any or all of the Property including any easements, through condemnation, eminent domain, or any other means. Mortgagor further agrees to notify Lender of any proceedings instituted for the establishment of any sewer, water, conservation, ditch, drainage, or other district relating to or binding upon the Property or any part of it. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims and to collect and receive all sums resulting from the action or claim. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected wi'ch a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and wil:, be applied as provided in this Mortgage. This assignment of proceeds is subject to the terms of any prior mortgage,-deed of trust, security agreement or other lien document. ~,.~~ [page 5 of 8) ~-~'~ © 1993, 2001 Bankers Systems, inc., St. Cloud, MN Form AGCO-RESI-WY 1t16/2003 . 20. INSURANCE. Mortgagor agrees to inaintain insurance as follows: 576 A. Mortgagor shall keep the. Property insured against loss by fire, theft and other hazards and risks reasonably associated with the Propbrty due to its type and location. Other hazards and risks may inc ude for example, coverage against loss due to floods or flooding. This insurance shall be maintained in the amounts and for the periods that Lender requires. What Lender requires pursuant to the preceding two sentences can change during the term of tile Secured Debt. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor falls to maintain the coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property according to the terms of this Mortgage. All insurance policies and rei~ewals shall be acceptable to Lender and shall include a standard "mortgage clause" and, where applicable, "lender loss payee clause." Mortgagor shall immediately notify Lender of cancellation or termination of the insurar!ce. Lender shall have the right [o hold the policies and renewals. If Lender requires, Mortgagor shall immediately give [o Lender all receipts of paid Mortgagor shall give immediate notice to the insurance carrier and premiums and renewal notices. Upon loss, made immediately by Mortgagor. Lender. Lender may make proof of loss if riot Unless Lender and Mortgagor otherwise agree in wri~'ng, insurance proceeds shall be applied to restoration or repair of the Property damaged if the restoralion or repair is economically feasible and Lender's security is not lessened If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the Secured Debt, whether or not then due, with any excess paid to Mortgagor. If Mortgagor abandons the Property, or does not answer within 30 days a notice from Lender that the ~nsuranee carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay the Secured Debt whether o~ not then due. The 3U-day period will begin when the notice is given. Unless Lender and Mortgagor otherwise agree in writing, any application ut' proceeds to principal shall not extend or postpone the due date of scheduled payments or chane th acquired by Lender, Mort'gagor's right to any insurance pog ~e amount of the payments. If the Property is Property before the acquisition licie and proceeds resulting from damage to the acquisition, shall pass to Lender to the extent of the Secured Debt immedialely before the B. Mortgagor agrees to maintain comprehensive general liability insurance naming Lender as an additional insured in an amount acceptable to Lender, insuring against claims arising from any accide~ or occurrence Jn or on the Property. C. Mortgagor agrees to main'~ain ~ental loss or business interruption ~nsorance, as required by Lender, in an amount equal to at least coverage of one year's debt service, and required escrow account deposits (if agreed separately in wr ting), under a form of policy acceptable to Lender. 21. NO ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow 22. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor will provide to Lender upon request, any financial statement or information Lender may deem necessary. Mortgagor warrants that all financial statements and information Mortgagor provides to Lender are, or will be, accurate, correct, and complete. Mortgagor agrees to sign, deliver, and file as Lender may reasonably request any additional documents or certificalions that Lender may consider necessary to perfect, cunt hue, and preserve Mortgagor's obligations under this Mortgage and Lender's lien status on the Property. If Mortgagor fails to do so, Lender may sign, deliver, and file such documents or certificates in Mortgagor's name and Mortgagor hereby irrevocably, appoints Lender or Lender's agent as attorney in fact to do the things necessary to comply with this section. 23. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Mortgage are joint and individual. If Mortgagor signs this Morzgage but does not sign the Evidence of Debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. Mortgagor agrees tha! Lender and any party to this Mortgage may extend, modify or make any change in the terms of this Mortgage or the Evidence of Debt without Moltgagor's consent. Such a change will not release Mortgagor- from the terms of this Mortgage. The £1ulles and benefits of this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender. If this Mortgage secures a guaranty between Lender and Mortgagor and does guarantied,. Mortgagor agrees to waive any rights that may prevenl Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation including, but no1 limited to, anti-deficiency or one-action laws. F---~--""~~ © 1993, 2001 Bankers Systems Inc., St. Cloud, MN Form AGCO-RESI-Wy 1/16/2003 , [page 6 of 24. APPLICABLE LAW; SEVERABILII'Y; 'INTERPRETATION. This Mortgage is governed by the laws of the jurisdiction in which Lender is located, except to thel extent otherwise required by the laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This Mortgage may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachments, or any agreement related to t'he Secured Debt that conflicts with applicable law will not be effective, unless that law expressly or impliedly permits the variations by written agreement. If any section or cla¢_,se of this Mortgage cannot be enforced according to its terms, that section or clause will be severed and will not affect the enforceability of the remainder of this Mortgage. Whenever used, the singular shall include the plural and the plural zl~e singular. The captions and headings of the sections of this Mortgage are for convenience only and are not ~o be used to interpret or define the terms of this Mortgage. Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise required by law, 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 Mortgage, or to any other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 26. WAIVERS. Except to the extent prohibited by law, Mortgagor waives any right regarding the marshalling of liens and assets and all homestead exemption rights relating to the Property. 27. U.C.C. PROVISIONS. If checked, the following are applicable to, but do no~ limit, this Mortgage: Construction Loan. This Mortgage secures an obligation incurred fo~ the construction of an improvement on the Property. Fixture Filing. Mortgagor grants to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will,'become fixtures related to the Property. Crops; Timber; ~inerals; Rents, Issues and Profits. Mortgagor grants to Lender a security interest in all crops, timber and minerals located on the Property as well as all rents, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Payment in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term "Property"). ~ Personal Property. Mortgagor grants to Lender a security interest in all personal property located on o¢ connected with zl~e Property. This security interest includes all farm products, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all other items of personal property Mortgagor owns now or in the future and ~ha~ are used or useful in the construction, ownership, operaQon, management, or maintenance of the Property~ The term "personal property" specifically excludes that property described as "household goods" secured in connection with a "consumer" loan as ~hose terms are defined in applicable federal regulations governing unfair and deceptive credit practices. Filing As Financing Statement. Mortgagor agrees and acknowledges diet d]is Mortgage also suffices as a financing statement and as such, may be filed of record as a financing statement for purposes of Article 9 of Uniform Commercial Code. A carbon, photographic, image or cd, er reproduction of this Mortgage is sufficien~ as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this Mortgage: ~ Line of Credit. The Secured D~bt includes a revolving line of credit provision. Although the Secured Debt may be reduced to a zero balance, this Mortgage will remain in effect until released. g Separate Assignment. The MortgagOr has executed or will execute a separate assignment of leases and rents. If the separate assignment of leases ~:(~gt~)s properly executed and recorded, then the separate assignment will s~ persede this Security Instrun~?~ "~,~,~ ~q~¢9~ of Leases and Rents" section. ~ Add~tional Terms .... ©1993. 2001 Bankers Systems. Inc.. St. Cloud. MN Form AGCO-RESI WY 1116/2003 (page ~ of 8) 578 SIGNATUREs: By signing below, Mortgagor agrees to the zerms and covenants contained in this Mortgage and in any attachments. Mortgagor also acknowledges receipt of a copy of this Mortgage on the date stated above on Page 1. [] Actual authority was granted tb the parties signing below by resolution signed and dated Entity Name: __ / ISignatureJ [] Refer to the Addendum which acknowledgments. [Date I (Signatutej is attached and incorporated herein for additional Mortgagors, signatures and ACKN OWLEDGMENT: ~ f____ STATE OF ~1~i/~0~ -- - , COUNTY OF This ~nstrument was acknowledged before · ~ ~.~ ~e~ STATE OF , COUNTY OF This ins~rumen[ was acknowledged before me fi]is by (Business Acknowleagmenrl of MY commission expires: day ~ } ss. _day of SS. ITitleisi) {Narne of Business or Entity} on behalf of the business or entity. {Notary Public)~ 1993, 2001 Bankers Syslams, Inc,.. St. C oud MN Form AGCO-RESI-Wy 1/16/2003 [page 8 of 8j : :i