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HomeMy WebLinkAbout900016RECORDATION REQUESTED BY: Rocky Mountain Bank - Whitehall 101 E. Legion P.O. Box 599 Whitehall, MT 59759 WHEN RECORDED MAIL TO: Rocky Mountain Bank - Whitehall 101 E. Legion P.O. Box 599 Whilehall, MT 59759 SEND TAX NOTICES TO: Rocky Mounlaln Bank - Whitehall 101 E. Legion P.O. Box 599 Whitehall, MT 59759 9000 6 RECEIVED 'LINCOLN COUNTY CLERK Or, JUN-9 PH 3:33 JEANNE ": ^'''' SPACE ABOVE THIS LINE IS FOR RECORPER'S USE ONLY MORTGAGE MAXIMUM LIEN. The total princil::al indebtedness that may be outstanding at any given time which is secured by this Mortgage is $127,344.00. THIS MORTGAGE dated June 4, :':004, is made and executed between Wendell Harris, Trustee of the Wendell Harris Profit Sharing Plan dated ~anuary 1, 1990 (referred to below as "Grantor") and Rocky Mountain Bank - Whitehall, whose address is 101 E. Legion, P.O. Box 599, Whitehall, MT 59759 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor morlgages and conveys Io Lender all of Grantor's right, title, and interest in and Io the following described real property, togethe,- with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all olher righls, royalties, and profits relating to th:a real property including without limitation all minerals, oil, gas, geothermal and similar mailers, (the "Real Property") located in Lincoln !County, State of Wyoming: See Exhibit A, which is attached to this Mortgage and made a part of this Mortgage as if fully set forth herein. The Real Property or its address is;commonly known as 115 County Road #121, Bedford, WY 83112. CROSS-COLLATERALIZATION. In addition :to the Note, this Morlgage secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Granlor or any one or more of them, whether now existing or hereafter arising, whether relaled or unrelated to Ihe purpose of the Note, whelher voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liqui'~{ated or unliquidated whether Grantor may be liable individually or jointly with others, whether obligated as guaranlor, surety, accommodation parly o~ ~lherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligaticr', to repay such amounts may be or hereafter may become otherwise unenforceable. Granlor presently assigns to Lender all of Gra~{or's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code securily interest in the 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 TH~'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 a.~. otherwise provided in this Mortgage, Grantor shall pay to Lender all amounl5 secured by this Mortgage as lhey become due and shall striclly perform all of Granlor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by Ihe following provisions: Possession and Use. Until Ihe occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (31~ collect the Rents from the Property. The following provisions relate to lhe use of the Property or to other limitations on the Properly, Duty lo Maintain. Grantor shall maintain the Property in tenantable condition and promplly pedorm all repairs, replacements, and maintenance necessary to preserve its value. Compliance Wilh Environmental Laws, Granlor represents and warrants to Lender lhat: (t) During the period of Grantor's ownership of Ihe Property, there has been no use, gereration, manufacture, storage, trealmenl, disposal, release or threatened release of any Hazardous Substance by any person on, under, abcut or from the Property; (2) Grantor has no knowledge of, or reason to believe that Ihere has been, except as previously disclosed Io and acknowledged by Lender in writing, (a) any breach or violation of any Environmenlal Laws, (b) any use, generation, manufacture, storage, treatrrent, disposal, release or threatened release of any Hazardous Substance on, under, aboul or from the Property by any prior owners or occupa~b of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating Io such mailers; and (3) Except as pr.aviously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any lenant, contractor, agent or other authorized user of Ihe Property shall use, generate, manufaclure, store, treat, dispose of or release any Hazardous Substance on, under, about or from the-Properly; and (b) any such activity shall be c0nducled in compliance with all applicable federal, slate, and local laws, regulafions and ordinances, including wilhoul limitation all Environmental Laws. Grantor authorizes Lender and its agents to enler upon the Properly to make such inspecions and tests, al Granlor's expense, as Lender may deem appropriale to determine compliance of the Property with this section of Ihe Mortg~Lce. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be conslrued Io Create any responsibilily o" liability on lhe pad of Lender to Grantor or to any other person. The representations and warranties conlained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Granlor hereby (1) releases and waives any future claims against Lender for indemnity or contribulion in the event Grantor becomes liable for cleanup or other cosls under any such laws; and (2) agrees to indemnify 'and hold harmless Lender against any and all claims, losses, liabilities, damages, penallies, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of Ihis secllon of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or lhreatened release occurring prior Io Grantor's ownership or inlerest in the Property, whelher or nol the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including lhe obligation to indemnify, shall Survive the payment el the indebtedness and the safisfacfion and reconveyance el the lien of Ibis Mortgage and shall not be affected by Lender's acquisition of any inleresl in lhe Property, whelher by foreclosure or olherwise. Nuisance, Waste. Grantor shall not cau,.e, conduct or permil any nuisance nor commit, permit, or suffer any slripping of or waste on or 1o Ihe Property or any portion of the Property. Without limiting the generalily of the foregoing, Grantor will nol remove, or grant to any olher party the right lo remove, any timber, minerals.(inciuding oil and gas), coal, clay, scoria, soil, gravel or rock products withoul Lender's prior written consent. Removal of Improvements. Granlor si-all nol demolish or remove any Improvements from lhe Real Properly without Lender's prior written consent. As a condition to Ihe removal of any Improvements, Lender may require Grantor lo make arrangements satisfactory to Lender to replace such Improvements wilh Improvements of al least equal value. Lender's Right to Enter. Lender and L~r~der's agenls and representalives may enter upon the Real Properly at all reasonable limes 1o atlend 1o Lender's interests and Io inspect the Rea! Property for purposes el Granfor's compliance with the terms and condilions of this Mortgage. Compliance with Governmental Requi'remenls. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities &pplicable to lhe use or occupancy of the Property, including wilhout limitation, the Americans With Disabilities Act. Grantor may contest ih .good faith .any such law, ordinance, or regulalion and wilhhold compliance during any proceeding, including appropriate appeals, so long ias Granlor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's Inlerests in the Properly are not jeopardized. Lender may require Granlor Io post adequate security or a surely bond, reasonably satisfactory Io Lender, to protect Lender's interest. MORTGAGE~r.,,~-~ ~t,~ .. ,,~ Loan No: 803408 (Continued)~'-'~J'-' ~L~ ~ ~ O Page 2" Duty to Protect. Grantor agrees neither to t~bandon or leave unattended the Property. Grantor Shall do all other acts,'in addition lo those acts set forth above in this section, which from the Character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Leni:ler mayl at Lender's option, declare immediately due and payable all sums secured'by this Mortgage upon the sale or {ransfer, without Lender's prior !wrilten consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance ol Real Property or any right, title or interest in the Real Properly whether legal, beneficial or equ tab e; whether voluntary or involunlary whelher by outright sal;'i'r, deed, installment sale contract, land contract, contract for deed, leasehold interest wilh a term greater than three (3) years, lease-option contract, or bi~ sale, assignment, or transfer of any benelicial inlerest in or toany land trust holding title to the Real Property, or by any other method of conveyanr~9 of an interesl in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Monta;na law. · TAXES AND LIENS. The following provisions re'fating to the laxes and liens on the Property are part of this Mortgage: Paymenl. Grantor shall pay When due (ar~'cl in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessmenls, water charges and sewer service charges levied against 19r on account! ot the Property, and shall pay when due all C a ms for work done on or for services rendered or material furnished to the Prop~.rty. Grantor sha'JJ~'~a~intain the Property free ol any liens having priorily over or equal to the interesl of Lender under this Mortgage, except for tho~.e liens specifically agreed to in wriling by Lender, and except for the lien of taxes and assessments not due as further specified in the Right to Con[~st paragraph. Right'to Conlest. Grantor may withhold ~;;~yment of any tax, assessment, or claim in connection With a good faith dispute over Ihe obligalion pay, so long as Lender's interest in the Proi~erty is not jeopardized. If a lien arises or is filed as a result of nonpaymenl, Grantor shall wilhin fifleen (15) days after the lien arises or, if a lien is ,iliad, within fifteen (15) days after Granlor has notice ot {he filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporale surety bond or other security satisfactory to Lender in an amount sufficient fo discharge the lien plus any costs and al~iorneys' fees, or other charges Ihat could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself end,Lender and shall satisfy any adverse judgment before enforcement against lhe Property. Grantor sh'all name Lender as an additional obligee und~any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upoh demand furnish to Lender satisfactory evidence of payment of the laxes or assessmenls and shall authorize the appropriate governmental ofiiJcial to deliver to Lender al any time a written statement of the taxes and assessments against the Property. Nollce of Construction. Granlor shall not!i;y Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, malerialmen's lien, or other lien could be asserted on account of lhe work, services, or materials. Granlor will upon request of i.~.ender furnish Io Lender advance assurances satisfactory to Lender lhat Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The followlng provisions relating to insuring Ihe Properly are a part of ihis Mortgage: Maintenance of Insurance, Grantor shalll;procure and mainlain policies of fire insurance with standard exlended coverage endorsements on a replacement basis for the full insurable val~:~e covering all Improvemenls on the Real ProPerly in an amount sufficienl to avoid application ol any coinsurance clause, and with a standard ~,ortgagee clause in lavor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance In such coverage amou~!s as Lender may request with Lender being named as additional insureds in such liabilily insurance policies. Additionally, Grantor shall maintai~ such other insurance, including but not limiled 1o hazard, business interruption and boiler Insurance as Lender may require. Policies shall be vrilten by such insurance companies and in such form as may be reasonably acceplable Io Lender. Grantor shall deliver 1o Lender certificates (:.~l coverage from each insurer conlaining a stipulation lhal coverage will not be cancelled or diminished withoul a minimum of len (10) days' prior ,~,'Titten not ce to Lender and nol conleining any disclaimer ol the insurer's liabilily for failure to give such notice. Each insurance policy also shall inc!ude an endorsement providing lhal coverage in favor of Lender will not be impaired in any way by any act, omission or default of Granlor or any c,:her person. Should the Real Property be Iocaled in an area designaled by lhe Direclor of the Federal Emergency Managemenl Agency as a spe,~ial flood hazard area, Granlor agrees 1o obtain and maintain Federal Flood Insurance, if available, tot the full unpaid principal balance 'of the Ioa~ and any prior liens on lhe property securing the loan, up' to lhe maximum policy limits se~ under the National Flood insurance Program, or as ot?erwise required by Lender, and to maintain such insurance for the lerm of the loan. Appllcallon of Proceeds. Granlor shall prgmplly notify Lender of any loss or damage to lhe Properly. Lender may make proof of loss il Granlor fails to do so within fifteen (15) days ot the,casua ty Whether or nol Lender's security is impaired, Lender may, at Lender's election, receive and retain Ihe proceeds of any insurance and ~:pply the proceeds to the reduclion of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of lhe Property.' If Lender elects ~o apply lhe proceeds 1o restoralion and repair, Granlor shall repair or replace lhe damaged or deslroyed Improvements in i~. manner salisfactory to Lender. Lender shall, upon satisfaclory prool of such expenditure, pay or reimburse Grantor from the proceeds for Ih~.~ reasonable cost of repair or restoralion if Grantor is nol in default under this Mortgage. Any proceeds which have noi been disbursed wilhin 180 days after their receipt and which Lender has not commilted lo lhe repair or restoration o! the Property shall be used first to pay any amount owing to Lender under this Mortgage, Ihen to pay accrued interest, and Ihe remainder, if any, shall be applied to the principal balance ot the Indebtedness. If Lender holds any proceeds after payment in fulJ of Ihe Indebtedness, such proceeds shall be paid to Grantor as Grantor's inlerests m~;:y appear. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish 1o Lender a report on each existing policy of insurance showing: (1) t'ii)e name of the insurer; (2) Ihe risks insured; (3) the amounl of the policy; (4) lhe properly insured, the then current replacement value of such property, and the manner of determining that value; and (5) Ihe expiralion date of Ihe policy. Granlor shall, upon request of Lender, have an ind,-pendent appraiser satisfactory 1o Lender determine the cash value replacement cosl of Ihe Property. LENDER'S EXPENDITURES. If any aclion or I::{.'oceeding is commenced thai would materially affect Lender's inleresl in the Properly or if Grantor fails to comply with any provision of this Mortgage (,,r any Related Documents, including but not limited to Grantor's failure 1o discharge or pay when due any amounts Grantor is required to discharge or' pay under this Mortgage or any Relaled Documents, Lender on Grantor's behall may (but shall not be obligated 1o) take any action that Lender deei~i3s appropriate, inc ud ng bul not limited 1o discharging or paying all laxes, liens, security inleresls, encumbrances and other claims, at any time I~vi~d or placed on the Property and paying all costs for insuring, mainlaining and preserving the Property. All such expenditures incurred or paid by Lende,? for such purposes will then bear interesl at the rate charged under the Nole from the date incurred or paid by Lender to the date of repaymenl by Gr;~mtor. All such expenses will become a part of the lndebledness and, at Lender's option, will (A) be payable on demand; (B) be added Io the ba a'~ce of lhe Note and be apportioned among and be payable'with any inslallment payments 1o become due during eilher (1) the lerm of any applical:!le insurance policy; or (2) the remaining term of the Note; or (C) be Irealed as a balloon paymenl which will be due and payable at the Nora's mE~i[urity, The. Mortgage also will secure payment ot lhese amounts. Such right shall be in addition ~o all other rights and remedies to which Lender may be entitled upon Default. WARRANTY; DEFENSE OF TITLE. The followihg provisions relating to ownership of Ihe Properly are a part of this Mortgage: Tille. Grantor warrants that: (a)' Grantor .~olds good and markelable title of record lo the Properly in fee simple, free and clear of all liens and - encumbrances other than those set forth ir" the Real Property descriplion or in any title insurance policy, lille report, or final lille opinion issued in favor of, and accepted by, Lender in conn~:ction with this Mortgage, and (b) Grantor has the full righl, power, and aulhorily io execule and deliver this Mortgage to Lender. Defense of Title. Subject 1o ihe exceplioi~ In the paragraph above, Granlor warrants and will forever delend the lille Io the Property against Ihe lawful claims ol all persons. In the event ai'~y action or proceeding is commenced thai questions Granlo~-'s lille or the interest of Lender under Ibis Mortgage, Granlor shall defend the aclion, al Grantor's expense. Granlor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding an;:l to be represented Jn the proceeding by counsel of Lender's own choice, and Granlor will deliver, or cause to be delivered, Io Lender such inst[~i!ments as Lender may request from lime Io time ~o permit such participation. Compliance Wllh Laws. GranlOr warra~ls that the Properly and Granlor's use ot the Property complies with all existing aplSlicable laws, ordinances, and regulations of government~il authorilies. · Survival of Represenlallons and Warren;ties. All representalions, warranlies, and agreements made by Granlor In this Mortgage shall survive the execution and delivery of this Mortga[:'~, shall be continuing in nature, and shall remain in full .force and .effect until such lime as Grantor's Indebtedness shall be paid in full. cONDEMNATION. The'folldwidg provision'§"rel~itJng to'Condemnation pioceedings are a part ol lhis Modgage: : ' : ' ~ ' Proceedings. If any proceeding in cond~'1'nnalion is filed, Grantor shall promplly notify Lender in wriling, and Granlor shall promplly lake such steps as may be necessary to defend the e.~lion and obtain lhe award. Granfor may be Ihe nominal party in such proceeding, but Lender shall be entitled to participale in the proceeding an i to be represented in Ihe proceeding by counsel of its own choice, and Grantor Will deliver Or cause to be delivered Io Lender such instruments arid documentation as may be requested by Lender from time to time Io permil such participation. APpllcallon of Nel Proceeds. If all or any.part of the Property is condemned by eminenl domain proceedings or by any proceeding or purchase Loan No: 80"3408'' ~'. MORTGAGE ,,. i. (Continued) O:~(}(}O~ ~ ....... ~ ~ Page 3 in lieu of condemnation, Lender may at it,.~:eleclion require that all or any podion of lhe net proceeds of Ihe award be applied to Ihe Indebtedness or the repair or restoration of lhe Property,,, The riel proceeds of the award shall mean Ihe award after payment of all reasonable costs, expenses, and altorneys' fees incurred by Lender in ?;onnection wilh the condemnation. IMPOSITION OF TAXES, FEES AND CHARGiES BY GOVERNMENTAL AUTHORITIES. The following provisions relaling Io governmental taxes, fees and charges are a part of Ihis Modgage: Current Taxes, Fees and Charges. Uc0n request by Lender, Granlor shall execule such documenls in addilion Io Ihis Modgage and take whatever other action is'requesled by LEi'[,~der to perfect and conlinue Lender's lien on Ihe Rea Property Granlor shall reimburse Lender for all taxes, as described below, logelher with I~!,.11 expenses incurred in recording, perlecling or conlinuing Ibis Modgage, including wilhout limi/ation all taxes, fees, documentary slamps, and olhb. r charges for recording or regislering this Morlgage. Taxes. The followIng shall conshlute tax,~s to whIch th~s section apphes: (1) a specific lax upon this lype of Modgage or upon all or any pad ot the Indebledness secured by this Mortgage; (2) a specific tax on Grantor which Granlor is aulhorized or required Io deduct from paymenls on Ihe Indebledness secured by this lype ollModgage; (3) atax on this lype of Modgage chargeable against Ihe Lender or the holder of the Note; and (4) a specific tax on all or any portic~n of Ihe Indebtedness or on payments of principal and inleresl made by Granlor. Subsequent TaXes. If any lax to whichi'f'his section applies is enacled subsequent Io the date of this Modgage, Ihis event shall have the same effecl as an Evenl of Defaull and Lenderi'~';~ay exercise any or all of ils available remedies for an Evenl of Defaull as provided below unless Grantor eilher (1) pays the lax before it become;'~'delinquenl, or (2) contests Ihe lax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corp0rale sur~l), bond or olher security salisfaclory Io Lender. SECURITY AGREEMENT; FINANCING STA'i'EMENTS. The following provisions relaling to this Morlgage as a secUrity agreemenl are a part ol this Mortgage: - Securily Agreement. This inslrument sl'&ll conslilu{e a Securily Agreemenl 1o the extent any of Ihe Properly constitules fixlures, and Lender shall have all of the rights of a secured party u~'~der the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lend'er, Grantor shall take whatever action is requested by Lender to perfect and conlinue Lender's securily interesl in lhe Renls and Personal Prope.-dy. In addilion to recording this Mortgage in the real properly records, Lender may, al any time and without fudher authorization from Granior, file execuled counlerpads, copies or reproductions of this Modgage as a financing stalement. Grantor shall reimburse Lender for all expenses i~..Lburred In perfecting or continuing Ihis security interesl. Upon default, Grantor shall not remove, sever or delach the Personal Properly from the t?ioperty. Upon default, Grantor shall assemble any Personal Properly not affixed 1o the Property in a manner and at a place reasonably convE'.oient to Granlor and Lender and make il available to Lender within lhree (3) days after receipt of written demand from Lender to Ihe extent permil?d,; by applicable law. Addresses. The'mailing addresses of iGranlor (debtor) and Lender (secured party) from which informalion concerning the security interest granled by lhis Modgage may be oblainecI (each as required by the Uniform Commercial Code) are as staled on Ihe first page of this Modgage. FURTHER ASSURANCES; ATTORNEY-IN-F~.CT. The following provisions relating Io further assurances and allorney-in-fact are a part of this Mortgage: Further Assurances. At any lime, and ill-om time to lime, upon request ot Lender, Grantor will make, execute and deliver, or will cause lo be made, execuled or delivered, lo Lend6:r. or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at suchi'times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security $greements financing statements, continualion statements, instruments of further assurance, cedificates, and other documenls as may, in the scale opinion of Lender, be necessary or desirable in order to effecluale, complete, perfect, continue, or preserve (1) Grantor's obligalions under, the Note, this Modgage, and the Relaled Documents, and (2) Ihe liens and security inleresls created by this Mortgage as first and prior liens o.I~ the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor~'{;hall reimburse Lender for all costs and expenses incurred in conneclion wilh the matters referred lo in this paragraph. Atlorney-ln-Fact. If Grantor fails to do ~i~r'ty of the things referred to in the preceding paragraph, Lender may do so for and in the name of Granlor and at GrantOr's expense. For such p!.~rposes, Grantor hereby irrevocably appoints Lender as Granlor's attorney-in-fact for the purpose of making, executing, de verng, f ngl re(!;ording, and'd0ing all olher lhings as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred Io in the ,oreceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and olherwise performs all the obligations imposed upon Granlor under Ihis Modgage, Lender shall execute and deliver t0 Grantor a suilable satisfaclion of Ibis Mortgage and suilable slalemenls ol lerminalion 01 any financing statemenl on tile evidencing Lender's securil'.:~ interest in Ihe Renls and the Personal Properly. Grantor will pay, it permitted by applicable law, any reasonable termination fee as determined by l ~nder from time to time. EVENTS OF DEFAULT. Each of the followinc~at Lender's option, shall conslitute an Evenl of Default under lhis Modgage: Payment DefaUll. Grantor fails to make ,~.,qy payment when due under the Indebledness. Default on Other Pa~/menls. Failure of:,Grantor within the lime required by lhis Modgage to make any payment for taxes or Insurance, or any other payment necessary to prevent filin(;! ,pr or 1o effect discharge of any lien. Olher Defaults; Grantor fails Io comply Wilh or Io perforrn any other lerm, obligation, covenant or condition contained in Ihis Modgage or in any of . the Related Documents or to comply wi:l'i~ or fo perform any lerm, obligation, covenant or condition contained in any olher agreement belween Lender and Grantor. . False Slalemenls. Any warranty, represe:nlation or stalement made or furnished Io Lender by Granlor or on Granlor's behalf under Ibis Mortgage or the Relaled Documenls is false or P,3isleading in any material respect, either now or al Ihe time made or furnished or becomes raise or misleading al any time thereafter..?.. Defective CollaterallzallOn. This' M~dg~,ige Or any of the Related Documents ceases Io be in full force'and effect (including' failure Of any collateral document to create a valid and perfectec~ Security inleresl or lien) al any time and for any reason. ' Insolvency. The dissolution or lerminatiph of the Trust, the insolvency ol Grantor, the appointmenl of a receiver for any part of Granlor's properly, any assignment Ior Ihe benefit of credilc{rs, any type of creditor workout, or lhe commencement ol any proceeding- under any bankruplcy or Insolvency laws by or against Grantor. :~. credllor or. Forfellure Proceedings. Commencemen:t ol foreclosure or forfeilure proceedingS, whether by judicial proceeding, self-help, repossession or any other method, by a~ny creditor of Grantor or by any governmental agency against any property securing Ihe Indebtedness. This includes a garnishment of any of Gra:nlor's accounts, Including deposit accounls, with Lender. However, lhis Event of Default shall not apply if there is a good faith dispute by Granto~i as to the validity or reasonableness ol Ihe claim which is the basis of lhe credilor or forfeiture proceeding and if Grantor gives Lender wrilten notic~'~ Of the creditor or forfeiture proceeding and deposils with Lender monies or a surety bond for the credilor or forfeiture proceeding, in an amount de, termlned by Lender, in its sole discretion as being an adequale reserve or bond for the dispule. 'Breach of Olher Agreemenl. AnYlbr~ac~ by Grantcr under lhe terms of any other agreement between Grantor and Lender thai is not remedied wilhin any grace period provided therein ~ncluding wiihout limitation any agreement concerning any indebtedness or olher obligation of Grantor to Lender, whether existing now or later. EVents Affecting Guaraniori' /~nY °i'th~ [:3receding evenls occurs wilh respect to any guarantor, endorser, surety, or accommodalion pady Of any of lhe Indebledness or any guarantor, er~dorser, surety, or accommodation party dies or becomes incompelent, or revokes or disputes the validity of, or liability under, any Guaranty of IheiJhdebledness. In the event of a dealh, Lender, al Is opt on may, but shall not be required to, permil the guarantor's estale Io assume unconditio(~.lly the ob igat OhS ar s ng under the guaranty in a manner salisfaclory to Lender, and, in'doing so, cure any Event of Default.. . - ~ ! ..... Change. adverse Adverse A material cl'~nge occurs in Grantor's financial condilion, or Lender believes the prospect of payment or performance of the Indebtedness Is impaired. jn~ecurltY~~ ~Len~'er in ' ' ......... · good faith believe.,; :itself insecure. Right to Cure. tf any default, other th~..ri a default in payment is curable and if Grantor has not been 'given a notice of a breach of the same provision of this Modgage within lhe I~receding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default: (1) cu~!e~s the default within fifteen (15) days; or (2) if the cure requires more than filteen (15) days, immedlalely initiates steps Which Lender deems In fender's SOle discrelion to be sutficient Io cure the default and thereafter continues and completes all reasonable and necessary steps sufficieqt,to produce compliance as soon as reasonably praclical. Loan No: 803408 :i MORTGAGE ?I~'~ (Continued) O~ii~l~L~ ~.. i'' 3~L ~"'i" Page 4' RIGHTS AND REMEDIES ON DEFAULT. Up~ the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise any one or more of the following rights ~nd remedies, in addition to any other righls or remedies provided by law: Accelerate Indebtedness. Lender shall h~i~'ve the righl at its option without notice to Grantor to declare the entire Indebtedness immediately due and paYable, including any prepayment peri~lty which Grantor would be required to pay. UCC Remedies. With respect to all or any..'~part of the Personal Properly, Lender shall have all the rights and remedies of a secured pady under lhe Uniform Commercial Code. Collect Rents. Lender shall have Ihe righ~!,iwilhout notice to Grantor, 1o take possession ol ihe Property and collecl the Rents, including amounts past due and unpaid, and apply Ihe net pr¢?ceeds over and above Lender's cosls, against the Indebtedness. In fudherance of this righl, Lender may require any tenant or other user of the l[:=roperty to make payments of rent or use fees directly 1o Lender. If the Rents are collected by Lender, then Grantor irrevocably designates LendE,:'¢ as Grantor's altorney-in-fact to endorse inslrumenls received in payment thereof in the name of Grantor and to negotiate the same and coll~cl the proceeds. Payments by lenanls or other users Io Lender in response to Lender's demand shall satisfy the obligations for which lhe payme:'~ts are made, whether or no~ any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in per;?on, by agent, or lhrough a receiver. Appoint Receiver. Lender shall have the Cghl to have a receiver appointed to take possession ol all or any part of the Property, with the power lo protecl and preserve the Property, to operai!e lhe Property preceding foreclosure or sale, and to collect the Rents from the Property and apply proceeds, over and above Ihe cost of thelir, eceivership,'against lhe Indebledness. The receiver may serve without bond if permitled by law. Lender's right to the appointment of a recl.~ver shall exist whelher or nol the apparenl value ol the Properly exceeds lhe Indebtedness by a substantial amount. Employment by Lendei?hall nol disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain ~ judicial decree foreclosing Granto~'s interest in all or any part ol the Property. Nonjudicial Sale. If permitted by applicabt:'i'; law, Lender may foreclose Grantor's interest in all or in any part of lhe Personal Property or lhe Real Property by non-judicial sale. Deficiency Judgmenl. If permitted by aPl~,licable law, Lender may obtain a judgment for any deficiency remaining in the Indebledness due to Lender after application of all amounts recehied from the exercise of ihe righls provided in this seclion. Tenancy at Sufferance. If Grantor remaii:ls in possession of the Property after the Property is sold as provided above or Lender otherwise becomes enlitled to possession of Ihe Prog~rty upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of Ihe Property and shall, al Lender's opt!on either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property ol Lender. Ii immediately upon the demand ~ Olher Remedies. Lender shall have all oth~.r rights and remedies provided in this Mortgage or Ihe Note or available at law or in equity. Sale of the Property. To the extent perm.tried by applicable law, Grantor hereby waives any and all right to have the Property marshalled. In exercising ils rights and remedies, Lender i.~hall be free to Sell all or any part of the Property Iogether or separalely, in one sale or by separate sales. Lender shall be entiUed to bid at anyi.'public sale on all or any porlion of the Property. Notice of Sale. Lender shall give Granlor -~asonable notice of lhe time and place ol any public sale of the Personal Property or of the time after which any privale sale or other intended disposition of the Personal Property is Io be made. Reasonable nOlice shall mean nolice given at least ten (fO) days before the time ct the sale cfi!disposition. Any sale of lhe Personal Properly may be made in conjunclion with any sale of the Real Properly. Election of Remedies. Eleclion by Lenc,~.r to pursue any remedy shall not exclude pursuit of any olher remedy, and an eleclion to make expenditures or to take action to perlorm a':~ obligalion of Granlor under this Mortgage, after Granlor's failure to pedorm, shall not affect Lender's righl to declare a default and exercise its rei~edies. Nothing under Ibis Modgage or otherwise shall be construed so as to limit or restricl the righls and remedies avadable to Lender following ~n Event of Defau I, or n any way Io m t or restrict Ihe r, ghts and ability of Lender to proceed directly against Grantor and/or against any other~co-maker, guarantor surety or endorser and/or to proceed againsl any other collateral directly or indirectly securing the Indebtedness. Attorneys' Fees; Expenses. If Lender inst !utes any suit or a, ction to enlorce any of lhe lerms ol lhis Modgage, Lender sba be entitled to recover such sum as the court may adjudge reasor~.~.ble as altorneys tees al trial and upon any appeal Whelher or not any court aclion is involved, and 1o the extenl not prohibited by law, all reas,::inable expenses Lender incurs thal in Lender's opinion are necessary at any time for the proleclion of ils interest or the enforcement of its rights .i;.hall become a part of lhe Indebtedness payable on demand and shall bear interest al the Nole tale from Ihe date of the expenditure until repai¢... Expenses covered by this paragraph include wilhoul limitation however subject to any limits under applicable law, Lender's attorneys' fees an(! Lender's legal expenses, whether or nol there is a awsu 1, nclu,~ing attorneys' fees and expenses for bankruptcy proceedings (including effods ~o modify or vacate any automatic stay or injunction), appeals, and any anticipaled post-judgmenl collection services, the cost of searching records, obtaining lille repods (including foreclosure reports), surveyors' repods, and appraisal fees and fille insurance, to the exlenl permitled by aF~'i~)licable law. Grantor also will pay any courl costs, in addition lo all olher sums provided by law. NOTICES. 'Any notice required to be given under this Mortgage, nclud ng w lhoul m ration any nolice ol default and any notice of sale shall be given in writing, and shall be effective when actually ~'elivered, when actually received by telefacsimile (unless otherwise required by law), when deposiled with a nalionally recognized overnight courier, oti if mailed, when deposiled in lhe United States mail, as first class, certified or registered mail poslage prepaid, directed to the addresses shown near';Ihe beginning of lhis Mortgage. All copies of nolices of toreclosure from the holder of any lien which has priority over this Mortgage shall be sent to L~;nder's address, as shown near the beginning of Ihis Modgage. Any pady may change ils address for nolices under this Modgage by giving formal v,'ntten notice to the other padies, specifying lhal lhe purpose of the notice is 1o change the party's address. For notice purposes, Grantor agree-.;~.to keep Lender informed at all times of Grantor's current address. Unless olherwise provided or required by law, if there is more than one Granto, h any notice given by Lender 1o any Grantor is deemed to be nolice given lo all Grantors. MISCELLANEOUS PROVISIONS. The followin[~.miscellaneous provisions are a part of this Morlgage: Amendments. This Mortgage, together wi!!i any Related Documents, constitutes lhe entire understanding and agreement of the padies as to the mailers set fodh in lhis Mortgage. No alteCation of or amendment lo this Mortgage shall be effeclive unless given in writing and signed by lhe party or parties soughl to be charged or boLind,by the alteration or amendment. Annual Reporls. f the Property s used for purposes olher than Grantor's res dance Grantor shall furn sh Io Lender unon r~r~;! ~ Certified statement of net operating ncome received:' from the Property dur ng Granlor sprev ous'fiscal year in such Iorm and del;il a'-s Le~-d~e'~"s~al~' require. "Nel operating income" shall mean all casfi receipls from the Properly less all cash expendilures made in connection with Ihe oPeration ct the Property. Caption Headings. Caption headings in i'h s Mortgage are for convenience purposes only and are not to be used Io interpret or define the provisions of this Modgage. Governing Law. This Mortgage will be ~0verned bY, construed and enforced in accordance wilh federal law and lhe laws of the State of Montana. This Mortgage has been accel~ted by Lender In the Stale of Monlana. No Waiver by Lender. Lender shall not Ir.~,~ deemed to have waived any righls under this Modgage unless such waiver is given in writing and signed by Lender. No delay or omission o;"~ the part of Lender in exercising any right shall operate as a waiver o! such tight'or any Other right. A waiver by Lender of a provision of this Mortgage shall not prejudice or conslilute a waiver of Lender's right otherwise to demand s(ricl compliance with thai provis on or any other provision ch this Mortgage. No prior waiver by Lender, nor any course ct dealing between Lender and Grantor, shall constitute a waiver of any of Lender's -,;ights or of any of Grantor's obligations as Io any future transaclions. Whenever the consenl of Lender is required under this Modgage, the grant~?~g of such consent by Lender in any instance shall not constilute conlinuing consenl Io subsequent inslances where such consent is required a=.qd in all cases such consent may be granted or withheld in lhe sole discretion of Lender. Severability~ If a court of compe!ent j~:risdiction finds any provision of this Mortgage to be illegal, invalid, or unenforceable as to any circumstance, lhal finding shall nol make ISa offending provision illegal invalid, or unenforceable as lo'any 0ther CirCumslanCe. If feasible, the offending provision shall be considered moi~ified so that it becomes legal valid and enforceable. If the offending provis on cannol be so modified, it shall be considered deleted from this Mo~',lgage. Unless otherw se requ red by.law, lhe illegalily, invalidity, or unenforceability of any provision of lhis Mortgage shall not affect the legality, va;lldity or enforceability of any other provision of this Mortgage. Merger. There· shall be no merger of lhe ii~it'eresl or eslale crealed by tl:~is Mortgage wilh any olher inleresl or eslale in Ihe Prope~iy al any time held by or for the benefit of Lender in any ci~pacily, wilhout the wrillen consent of Lender. Successors and Assigns. Subject to anyi!ImitationS staled in lhis Modgage on lransfer of Grant0r's interest, this Mortgage sha be binding upon and inure Io the benefit of the parties, lheir,"~uccessors and assigns. If ownership of lhe Properly becomes vested in a person olher than Grantor Lender, wilhout notice 1o Grantor, may ~eal~ with Grantor's successors with reference to this Modgage and Ihe Indebledness by way of ~ MORTGAGE Loan No: 803408 i: (Continued) Page 5 forbearance or extension without releasingirGrantor from the obligations of this Mortgage or liability under the Indebtedness. Time Is of' the Essence. Time is of the es?~nce., in the pedormance of this Mortgage. Waiver of Homestead Exemption. Grantcr hereby releases and waives all rights and benefits of the homestead exemption laws of the State of Montana as to all Indebledness secured b!, Jhis Modgage. DEFINITIONS. The following capitalized words' ired terms shall have the following meanings when used in this Modgage. Unless specifically stated 1o the Contrary, all references to dollar amounts st!all mean amounts in lawful money of the United States of America. Words and terms used in the s ngu ar sha nc ude the p ura, and the p ura sha nc ude lhe s ngu ar, as the context may require. Words and lerms not otherwise defined in Ibis Modgage shall have the meanings attributed to js .ich terms in the Uniform Commercial Code: Borrower. The word "Borrower" means WieTtdell Harris Profit Sharing Plan and includes all co-signers and co-makers signing the Note. Default. The word "Default" means the Dela]ult set fodh in this Modgage in the section titled "Default". Environmental Laws. The words "Enviro'q,:nental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the env!r0nment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended 42 U.S.(;.' Section 9601, et seq. ("CERCLA"), the Superfund Amendmenls and Reauthorization Act ol 1986, Pub. L. No. 99-499 ("SARA"}, the Hazardous IviaJerials Transportation Acl, 49 U.S.C. Section 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or otl'jer applicable state or federal laws, rules, or regulations adopted pursuan{ Ihereto. Event of Default. The words "Event of D~.~fi~ult" mean any of the events of default set forth in this Modgage in the events of default section of this Mortgage. Grantor. The word "Granlor" means Wen~J~;ll Harris Profit Sharing Plan. Guaranty. The word "Guaranty" means lhe guaranty from guarantor, endorser, surety, or accommodation pady to Lender, including without limitation a guaranty of all or pad of the Ncte. Hazardous Substances. The words "Ha~'a~dous Substances" mean materials that, because ol lheir quantity, concentration or physical, chemical or infectious characteristics, may cause or'.Fose a present or potential hazard to human heallh or the environment when improperly used, treated, stored, disposed of, generated, manufac::ured, transpoded or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limit~ttion any and all hazardous or toxic subslances, materials or waste as defined by or listed under Ihe Environmental Laws. The term "HazardolJs Subslances" also includes, wilhout limitation, petroleum and pelroleum by-products or any fraction thereof and asbestos. ' Improvements. The word "lmprovemenfs" means all existing and future improvemenls, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacement~ and other conskuclion on the Real Property. Indebtedness. The word "lndebtedness"'means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, E. xtensions of, modifications of, consolidations of and substitutions for the Note or Related Documenls and any amounts expended or advance:l by Lender to discharge Grantor'$ obligations or expenses incurred by Lender to enforce Grantor's obligalions under this Mortgage, togetPe' with interest on such amounts as provided in lhis Mortgage. Specifically, without limitation, Indebtedness includes all amounts that ma~ be indireclly secured by the Cross-Collateralization provision of this Mortgage. Lender. The word "Lender" means Rock~ Mountain Bank - Whitehall, its successors and assigns. Morlgage. The word "Modgage" means t~i~s Modgage between Grantor and Lender. Note. The word "Note" means the pron~ii;sory note dated June 4, 2004, in the original principal amount of $127,344.00 from Grantor to Lender, together with ali renp. v~als of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory hole or agreement. The matu~it'/date of this Mortgage is June 4, 2005. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. . Personal Property. The words "Persona'' Properly" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed 1o the Real Properly; logether with ali accessions, parts, and additions to, all replacements o~, and all substitufions for, any of such prol:)£dy; and together with all proceeds (including without limitation all insurance proceeds and retunds of premiums) from any sale or other disposit, on of the Property. Property. The word "Property" means ~.o'lectlvely the Real Properly and the Personal Properly. The word "Property" also includes all mobile homes, modular homes, and similar stru;tures, now or hereafter situated on Ihe Real Properly, and such structures shall be and shall remain Personal Property regardless of whether .~ UCh structures are affixed to the Real Property and irrespective of the classification ol such structures for the purpose of tax assessmenls. The rer3oval or addition of axles or wheels, or the placemenl upon or removal from a concrete base, shall nol alter the characterization of such structures;' Real Property. The words "Real Property" ~mean the real property, interests and righls, as fudher described in this Mortgage. Related Documents. The words "Re:ated Documents" mean all promissory notes, credit agreemenls, loan agreements, environmental agreements, guaranties, security agreermmts, mortgages, deeds ol trust, security deeds, collateral mortgages, and all olher instruments, agreements and documents, whether nov, z or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all pres~,.nt and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. ,,~ ~ GRANTOR ACKNOWLEDGES HAVING READ ,U_L THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. GRANTOR: Wendell Harris, Sharing Plan FIT SHARING PLAN - ustee of Wendell I larris Profit Loan No: 803408 MORTGAGE (Continued) OS}O001G. -.. ,-. 319 Page 6' COUNTY OF !,~ ~ ~h--"-' This instrument was acknowledged before me m Harris Profit Sharing Plan. .~. ~.IELLEY ,SN~D/d-L - NOTN:IY PUBLIC TRUST ACKNOWLEDGMENT ) ) ss ) ~) , 20 C~ by Wendell Harris, Trustee of Wendell ' ' [CType or Print I~ame] Notary Public for Ih9 Stale of~ Residing at ,~24"~..~ %~'t.~..t~ My commission expires ~ ~ O O001.L; EXHIBIT A A Portion of the SE1/,4SEI/4 of Section 20, T34N, R118W of the 6th P.M., Lincoln County, Wyoming, being more particularly described as follows: Beginning at the Southeast comer of said Section 20 and running West, along the South line of said Section 20, l:00.00 feet; thence North 545.64 feet; thence East 796.68 feet to the East line of said Section 20; thence S 0 20 5_ ,-., along said East line, 545.65 feet to the POINT OF BEGINNi_NG.