HomeMy WebLinkAbout900313RECORDATION REQUESTED BY:
ZlONS FIRST NATIONAL BANK
RANDOLPH BRANCH
125 NORTH MAIN
RANDOLPH, UT 84064
WHEN RECORDED MAIL TO:
ZIons First National Bank
Retail Loan Center - UT RDWG 0853
P.O. Box 30160
West Valley City, UT 84130-0160
? 0 0 3 3
SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY
*001000690004009955074505212004
MORTGAGE
THIS MORTGAGE dated May 21, 2004, is made and executed between KENNETH R PETERSEN and ANDRA L
PETERSEN (referred to below as "Grantor") and ZIONS FIRST NATIONAL BANK, whose address is 125 NORTH
MAIN, RANDOLPH, UT 84064 (referred to below as "Lender").
GRANT OF MORTGAGE. For valuable consic, eration, Grantor mortgages and conveys to Lender all of Grantor's right, title, and interest in and to
the following described real property, togetqe~ with all existing or .subsequently erected or affixed buildings, improvements and fixtures; all
easements, rights of way, and appurtenanc~s; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or
irrigation rights); and all other rights, royalties, and profits relating to the real property including without limitation all minerals, oil, gas,
geothermal and similar matters, {the .' Rea Property") located in'LINCOLN County, State of Wyoming:
THAT PART OF TRACT 89, TOWNSHIP 24 NORTH, RANGE 119 WEST, LINCOLN COUNTY, WYOMING,
.BEING PART OF THAT TRACT OF RECORD IN THE OFFICE OF THE CLERK OF LINCOLN COUNTY IN BOOK
127PR ON PAGE 209, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT ON THEiNORTHWESTERLY RIGHT-OF-WAY LINE OF STATE HIGHWAY 232, NORTH
45 DEG 23' 55" EAST, 475'.0'1 FEET FROM THE WEST 1/4 CORNER OF RESURVEYED SECTION 4,
TOWNSHIP 24 NORTH, RANGE 119 WEST;
THENCE NORTH 59 DEG 16' 54" WEST, 214.95 FEET TO A POINT;
THENCE NORTH 00 DEG 40' 53" iWEST, 338.74 FEET TO A POINT;
THENCE SOUTH 88 DEG 07' 35" EAST, 650.17 FEET TO A POINT ON SAID NORTHWESTERLY
· RIGHT-OF-WAY;
THENCE SOUTH 47 DEG 49' 113" WEST, 535.95 FEET, ALONG SAID RIGHT-OF-WAY TO HIGHWAY
RIGHT-OF-WAY MARKER STAI~PED 26+ 94.9 AT THE START OF A NON-TANGENT CIRCULAR CURVE TO
THE LEFT, WHICH HAS AS ITS RADIUS POINT BEARING SOUTH 42 DEG 14' 27" EAST;
THENCE SOUTHWESTERLY, 92~.O5 FEET, ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE
OF 07 DEG 40' 33", WITH A I{/~'iDIUS OF 687.12 FEET, AND A CHORD BEARING NORTH 43 DEG 55' 16"
EAST, TO THE POINT OF BEGINN!NG,
The Real Property or its address is commonly knoWn as 503 STATE HWY 232, COKEVILLE, WY 83114. The
Real Property tax identification numher is 12-2419-04-3-00-141.00
Grantor presently assigns to Lender all of Gran{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 grant.; t9 Lender a Uniform Commercial Code security 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 THE II~DEBTEDNESS 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. Except aS otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this
Mortgage as they become due and shall stricxly perform all of Grantor's obligations under this Mortgage.
POSSESSION AND MAINTENANCE OF THEI~R,OPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by
the following provisions:
Possession and Use. Until the 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 (3) collect the Rents from the Property.
Duty to Maintain. Grantor shall maintaip ~.he Property in good condition and promptly perform all repairs, replacements, and maintenance
necessary to preserve its value.
Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of
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MORTGAGE
(Continued)
'388
Page 2
the Property, there has been no use, gener~,t on, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
Substance by any person on, under, abou': or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has
been, except as previously disclosed to an~' acknowledged by Lender in writing, (a) any breach or violatiod of any Environmental Laws,
(b) any use, generation, manufacture, sto0;~ge, treatment, disposal, release or threatened release of any Hazardous Substance on, under,
about or from the Property by any prior eveners or occupants of the Property, or (c) any actual or threatened litigation or claims of any
kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither
Grantor nor any tenant, contractor, agent ¢,r other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of
or release any Hazardous Substance on, ur, der, about or from the Property; and (b) any such activity shall be conducted in compliance
with all applicable federal, state, and local !aws regulations and ordinances, including without limitation all Environmental Laws. Grantor
authorizes Lender and its agents to enter ul)~n the Property to make such inspections and tests, at Grantor's expense, as Lender may deem
appropriate to determine compliance of tho'!Property with this section of the Mortgage. Any inspections or tests made by Lender shall be
for Lender's purposes only and shall not bo'.construed to create any responsibility or liability on the part of Lender to Grantor or to any other
person. The representations and warran't, es contained herein are based on Grantor's due diligence in investigating the Property for
Hazardous Substances. Grantor hereby ,~) releases and waives any future claims against Lender for indemnity or contribution in the
event Grantor becomes liable for cleanup r(~r other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender
against any and all claims, losses, liabiliti~,% damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer
resulting from a breach of this section of tl~e Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release
or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been
known to Grantor. The provisions of this '~ection of the Mortgage, including the obligation to indemnify, shall survive the payment of the
Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any
interest in the Property, whether by foreclos'ure or otherwise.
Nuisance, Waste. Grantor shall not cause,, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to
the Property or any portion of the Property.' Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other
party the right to remove, any timber, mine';reis (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior
written consent.
Removal of Improvements. Grantor shall rot demolish or remove any Improvements from the Real Property without Lender's prior written
consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to
replace such Improvements with Improvements of at least equal value.
Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend
to Lender's interests and to inspect the Re~-.I. Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage.
Compliance with Governmental Requireme~s. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter
in effect, of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest in good faith any such
law, ordinance, or regulation and withhold 3ompliance during any proceeding, including appropriate appeals, so long as Grantor has notified
Lender in writing prior to doing so and so ,ong as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender
may require Grantor to post adequate secu~?y or a surety bond, reasonably satisfactory tO Lender, to protect Lender's interest.
Duty to Protect. Grantor agrees neither tO i~bandon or leave unattended the Property. Grantor shall do all other acts, in addition to those
acts set forth above in this section, which 'hem the character and use of the Property are reasonably necessary to protect and preserve the
Property.
DUE ON SALE - CONSENT BY LENDER. Le~cer may, at Lender's option, declare immediately due and payable all sums secured by this
Mortgage upon the sale or transfer, without Ler'der's prior written consent, of all or any part of the Real Property, or any interest in the Real
Property. A "sale or transfer" means the conve'~/~nce of Real Property or any right, title or interest in the Real Property; whether legal, beneficial
or equitable; whether voluntary or involuntaryI whether by outright sale, deed, installment sale contract, land contract, contract for deed,
leasehold interest with a term greater than thre~; (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in
or to any land trust holding title to the Real Prooerty, or by any other method of conveyance of an interest in the Real Property. However, this
option shall not be exercised by Lender if such ~.~iercise is prohibited by feder.al law or by Wyoming law.
TAXES AND LIENS. The following provisions r~h~ting to the taxes and liens on the Property are part of this Mortgage:
Payment. Grantor shall pay when due (ar.d in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water
charges and sewer service charges levied ~gainst or on account of the Property, and shall pay when due. all claims [or work done on or for
services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to
the interest of Lender under this Mortgage,' except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes
and assessments not due as further specifi~;:l in the Right to Contest paragraph.
Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the
obligation to pay, so long as Lender's inturest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,
Grantor shall within fifteen (15) days after'the lien arises or, if a lien is filed, within fifteen (1 5) days after Grantor has notice of the filing,
secure the discharge of the lien, or if requ~...,,ted by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security
satisfactory to Lender in an amount suffici=.qt to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue
as a result of a foreclosure or sale under.the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse
judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in
the contest proceedings.
Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against
the Property.
Notice of Construction. Grantor shall notif'/ Lender at least fifteen (1 5) days before any work is commenced, any services are furnished, or
any materials are supplied to the Property,' if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the
work, services, or materials. Grantor will ~on request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor
can and will pay the cost of such improvements.
PROPERTY DAMAGE INSURANCE. The followiq!] provisions relating to insuring the Property are a part of this Mortgage:
Maintenance of Insurance. Grantor shall p'0cure and maintain policies of fire insurance with standard extended coverage endorsements on
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389
MORTGAGE
(Continued) Page 3
a replacement basis for the full insurabl~ value covering all Improvements on the Real Property in an amount sufficient to avoid application
of any coinsurance clause, and with a sle~dard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies
and'in such form as may be reasonabl~( ~i~cceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer
containing a Stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days' prior written'notice to Lender
and not containing any disclaimer of the~ insurer's liability for failure to give such notice. Each insurance policy also shall include an
endorsement providing that coverage in 'f~:lvor of Lender will not be impaired in any way by any act, omission or default of Grantor or any
other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as
a special flood hazard area, Grantor agrffe~ to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given
by Lender that the Property is located ir' ~i~ special flood hazard area, for the full unpaid principal balance of the loan 'and any prior liens on
the property securing the loan, up to the'maximum policy limits set under the National Flood Insurance Program, or as otherwise required by
Lender, and to maintain such insurance lo,' the term of the loan.
Application of Proceeds. Grantor shall.promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or
replacement exceeds $500.00. Lenderimay make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether
or not Lender's security is impaired, L~nder may, at Lender's election, receive and retain the proceeds of any insurance and apply the
proceeds to the reduction of the Indabt~dhess, payment of any lien affecting the Property, or the restoration and repair of the Property. If
Lender elects to apply the proceeds to rei;toration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a
manner satisfactory to Lender. Lender ~.~J-,all, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for
the reasonable cost of repair or restoratio,q if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed
within 180 days after their receipt and w~ich Lender has not committed to the repair or restoration of the Property shall be used first to pay
any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal
balance of the Indebtedness. If Lender F. olds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor
as Grantor's interests may appear.
LENDER'S EXPENDITURES. If Grantor fails !A) to keep the Property free of ali taxes, liens, security interests, encumbrances, and other claims,
(B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or
proceeding is commenced that would mate'i~lly affect Lender's interests in the Property, then Lender on Grantor's behalf may, but is not
required to, take any action that Lender belig~;'es to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for
such purposes will then bear interest at the ,a~e charged under the Note from the date incurred or paid by Lender to the date of repayment by
Grantor. All such expenses will become a par*_ of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to
the balance of the Note and be apportioned ~n~ong and be payable with any installment payments to become due during either (1) the term of
any applicable insurance policy; or (2) the r~maining term of the Note; or (C) be treated as a balloon payment which will be due and payable
at the Note's maturity. The Mortgage also wil: secure payment of these amounts. The rights provided for in this paragraph shall be in addition
to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be
construed as curing the default so as to bar Lender from any remedy that it otherwise would have had.
WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage:
Title. Grantor warrants that: (a) Grantor,holds good and marketable title of record to the Property in fee simple, free and clear of all liens
and encumbrances other than those set [orth in the Real Property description or in any title insurance policy, title report, or final title opinion
issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to
execute and deliver this Mortgage to Len, d~r.
Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the 'Property against
the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender
under this Mortgage, Grantor shall defen~:~ the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but
Lender shall be entitled to participate in' the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
Grantor will deliver, or (~ause to be d~;livered, to Lender such instruments as Lender may request from time to time to permit such
participation.
Compliance With Laws. Grantor warrar'~t~ that the Property and Grantor's use of the Property complies with all existing applicable laws,
ordinances, and regulations of governmenlal authorities.
Survival Of Promises. All promises, agreements, and statements Grantor has made in this Mo[tgage shall survive the execution and delivery
o[ this Mortgage, shall be continuing in ~iture and shall remain in full force and effect until such time es Grantor's Indebtedness is paid in
full.
CONDEMNATION. The following provisions rel.ating to condemnation proceedings are a part of this Mortgage:
Proceedings. If any proceeding in Condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take
such steps as may be necessary to def, e~d the action and obtain the award. Grantor may be the nominal party in such proceeding, but
Lender shall be entitled to participate in'~the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor
will deliver or cause to be delivered to ;_e~nder such instruments and documentation as may be requested by Lender from time to time to
permit such participation.
Application of Net Proceeds. If all or ~y part of the Property is condemned by eminent domain proceedings or by any proceeding or
purchase in lieu of condemnation, Lendc. r may at its election require that all or any portion of the net proceeds of the award be applied to
the Indebtedness or the repair or restor'ation of the Property. The net proceeds of the award shall mean the award after payment ol all
reasonable costs, expenses, and attorne/s:' fees incurred by Lender in connection with the condemnation.
IMPOSITION OF TAXES, FEES AND CHARG=_S BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
fees and charges are a part of this Mortgage:
Current Taxes, Fees and Charges. Upo;~ request by Lender, Grantor shall execute such documents in addition to this Mortgage and take
whatever other action is requested by L~nder to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for
all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without
limitation all taxes, fees, documentary, st.amps, and other charges for recording or registering this Mortgage.
Taxes. The following shall constitute tax~s to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any
part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from
payments on the Indebtedness secured I~y this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the
Loan No: 001000690004009955
MORTGAGE
(Continued)
Page 4
holder of the Note; and (4) a specific t~:x on all or any portion of the Indebtedness or on payments of principal and interest made by
Grantor.
Subsequent Taxes. If any tax to which tl'~"[s section applies is enacted subsequent to the date of this Mortgage, this event shall have the
same effect as an Event of Default, and L~.nder may exercise any or all of its available remedies for an Event of Default as provided below
unless Grantor either (1) pays the tax b~fore it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens
section and deposits with Lender cash or ~!sufficient corporate surety bond or other security satisfactory to Lender.
SECURITY AGREEMENT; FINANCING STATEM!ENTS. The following provisions relating to this Mortgage as a security agreement are a part of
this Mortgage:
Security Agreement. This instrument sh;'~il constitute a Security Agreement to the extent any of the Property constitutes fixtures, and
Lender shall have all of the rights of a secu.'i'ed party under the Uniform Commercial Code as amended from time to time.
Security Interest. Upon request by Lende,, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's
security interest in the Personal Property. "In addition to recording this Mortgage in the real property records, Lender may, at any time and
without further authorization from Granto[, file executed counterparts, copies or reproductions of this Mortgage as a financing statement.
Grantor shall reimburse Lender for all exp,~=inses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not
remove, sever or detach the Personal Prol),=rty from the Property. Upon default, Grantor shall assemble any Personal Property not affixed
to the Property in a manner and at a plac, e reasonably convenient to Grantor and Lender and make it available to Lender within three (3)
days after receipt of written demand from [;ender to the extent permitted by applicable law.
Addresses. The mailing addresses of Grarltor (debtor) and Lender (secured party) from which information concerning the security interest
granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this
Mortgage.
FURTHER ASSURANCES; ATTORNEY-IN-FACT,.' The following provisions relating to further assurances and attorney-in-fact are a part of this
Mortgage:
Further AssUrances. At any time, and froq3 time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to
be made, executed or delivered, to Lender' !or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or
rerecorded, as the case may be, at such tiTms and in such offices and places as Lender may deem appropriate, any and all such mortgages,
deeds of trust, security deeds, security ~3greements, financing statements, continuation statements, instruments of further assurance,
certificates, end other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect,
continue, or preserve (1) Grantor's oblilgations under the Note, this Mortgage, and the Related Documents, and (2) the liens and
security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor.
Unless prohibited by law or Lender agrees'.ilto the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in
connection with the matters referred to in this paragraph.
Attorney-in-Fact. If Grantor fails to do arW of the things referred to in the preceding paragraph, Lender may do so for and in the name of
Grantor and at Grantot's expense. For sGch purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the
purpose of making, executing, delivering , filing recording, and doing all other things as may be necessary or desirable, in Lender's sole
opinion, to accomplish the matters referred :to in the preceding Paragraph.
FULL PERFORMANCE. If Grantor pays all the indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under
this Mortgage, Lender shall execute and deliver: {o Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any
financing statement on file evidencing Lender;.'.$ security interest in the Rents and the Personal Property. Grantor will pay, if 3ermitted by
applicable law, any reasonable termination fee a;; determined by Lender from time to time.
EVENTS OF DEFAULT. At Lender's option, Grz-f~tor will be in default under this Mortgage if any of the following happen:
Payment Default. Grantor fails to make ary payment when due under the Indebtedness.
Default on Other Payments. Failure of Gr~ntor within the time required by this Mortgage to make any payment for taxes or ~nsurance, or
any other payment necessary to prevent fi:,iqg of or to effect d!scharge of any lien.
Break Other Promises, Grantor breaks a0~, promise made to Lender or fails to perform promptly at the time and strictly in the manner
provided in this .Mortgage or in any agreerr;:ent related to this Mortgage.
Default in Favor of Third Parties. Shouic Grantor default under any loan, extension of credit, security agreement, purchase or sales
agreement, or any other agreement, in l~vor of any other creditor or person that may materially affect any of Grantor's property or
Grantor's ability to repay the IndebtedneSs or Grantor's ability to perform Grantor's obligations under this Mortgage or any related
document.
False Statements. Any representation Or ~,~atement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or
the Related Documents is false or misleadi~:g in any material respect, either now or at the time made or furnished.
Defective Collateralization. This Mortgag~!;ior any of the Related Documents 'ceases to be in full force and effect (including failure of any
collateral document to create a valid and perfected security interest or lien) at any time and for any reason.
Death or Insolvency, The death of Granto',: the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any
assignment for the benefit of cred tots, ai~y type of creditor workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Grantor.
Taking of the Property. Any creditor or governmental agency tries to take any of the Property or any other of Grantor's property in which
Lender has a lien. This includes taking of; garnishing of or levying on Grantor's accounts with Lender. However, if Grantor disputes in
good faith whether the claim on which the I~taking of the Property is based is valid or reasonable, and if Grantor gives Lender written notice
of the claim and furnishes Lender with moli~ies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will
not apply.
Breach of Other Agreement. Any breac/: .,by Grantor under the terms of any other agreement between Grantor and Lender that is not
remedied withi[~ any grace period prey dod therein, including without limitation any agreement concerning any indebtedness or other
obligation of Grantor to Lender, whether ex!sting now or later.
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(Continued) Page 5
Events Affecting Guarantor. Any of the'preceding events occurs with respect to any guarantor, endorser surety, or accommodation party
of any of the Indebtedness or any guzrantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or
disputes the validity of, or liability under', any Guaranty of the ndebtedness. In the event of a death, Lender, at its option, may, but shall
not be required to, permit the guaran'~or's estate to assume unconditiona y the obligations arising under the guaranty in a manner
satisfactory to Lender, and, in doing so, 3[~re any Event of Default.
Insecurity. Lender in good faith believes itself insecure.
Right to Cure. If such a failure is curaLle and if Grantor has not been given a notice of a breach of the same provision of this Mortgage
within the preceding twelve (12) mo~ths it may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends
written notice demanding cure of such 'adure: (a) cures the fa ure wthn fifteen (1 5) days; or (b) if the cure requires more than fifteen
{15) days, immediately initiates steps s'Jf.ficient to cure the failure and thereafter continues and completes all reasonable and necessary
steps sufficient to produce compliance a? ~oon as reasonably practical.
RIGHTS AND REMEDIES ON DEFAULT. Upo'~ ~he 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 right~ and remedies, in addition to any other rights or remedies provided by law:
Accelerate Indebtedness, Lender shall ha~:~e the right at its option without notice to Grantor to declare the entire Indebtedness immediately
due and payable, including any prepayment penalty which Grantor would be required to pay.
UCC Remedies. With respect to all or ~n~ part of the Personal Property, Lender shall have all the rights and remedies of a secured party
under the Uniform Commercial Code.
Collect Rents. Lender shall have the rigi~t=, without notice to Grantor, to take possession of the Property, including during the pendency of
foreclosure, whether judicial or non-judicial, and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over
and above Lender's costs, against the I~debtedness. In furtherance of this right, Lender may 'require any tenant or other user of the
Property to make payments of rent or use .fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates
Lender as Grantor's attorney-in-fact t~ endorse instruments received in payment thereof in the name of Grantor and to negotiate the same
and collect the proceeds. Payments by tP, nants or other users to Lender in response to Lender's demand shall satisfy the obligations for
which the payments are made, whether 3r not any proper grounds for the demand existed. Lender may exercise its rights under this
subparagraph either in person, by agent, o,' through a receiver.
Appoint Receiver. Ledder shall have the ~'ight to have a receiver appointed to take possession of all or any part of the Property, with the
power to protect and preserve the Pro'p~rty, to operate the Property preceding foreclosure or sale, and to collect the Rents from the
Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without
bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property
exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver.
Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property.
Nonjudicial Sale. Lender may foreclose Grantor's interest in all or in any part of the Property by non-judicial sale, and specifically by "power
of sale" or "advertisement and sale" foreclosure as provided by statute.
Deficiency Judgment. If permitted by a~plicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due
to Lender after application of all amount.,; received from the exercise of the rights provided in this section.
Tenancy at Sufferance, If Grantor remain:~ in possession of the Property after the Property is sold as provided above or Lender otherwise
becomes entitled to possession of the 3r.operty upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the
purchaser of the Property and shall, at I~ender's option, eithe[ (1) pay a reasonable rental for the use of the Property, or (2} vacate the
Property immediately upon the demand qf ~ender.
Other Remedies. Lender shall have all o~her rights and remedies provided in this Mortgage or the Note or available at law or in equity.
Sale of the Property. To the extent per'~i'tted by applicable law, Grantor hereby waives any and all right to have the Property marshalled.
In exercising its rights and remedies, L(nder shall be free to sell all or any part of the Property together or separately, in one sale or by
separate sales. Lender shall be entitled ~olb d at any public sale on all or any portion of the Property.
Notice of Sale. Lender will give Granto~ r~.~asonable notice of the time and place of any public sale of the Personal Property or of the time
after which any private sale or other in.[e"~d, ed disposition of the Personal Property is to be made. Reasonable notice shall mean notice
given at least .ten (10) days before the t;me of the sale or disposition. Any sale of the Personal Property may be made in conjunction with
any sale of the Real Property. -
Election of Remedies, All of Lender's '"i~hts and remedies will be cumulative and may be exercised 'alone or together. An election by
Lender to choose any one remedy will not ,~ar Lender from using any other remedy. If Lender decides to spend money or to perform any of
Grantor's obligations under this Mortgac~e, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare
Grantor in default and to exercise LendePs'remedies.
Attorneys' Fees; Expenses, If Lender in~ti'tutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to
recover such sum as the court may adjud.c,'e reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is '
involved, and to the extent not prohibited ~y law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time
for the protection of its interest or the e~forcement of its rights shall become a part of the Indebtedness payable on demand and shall bear
interest at the Note rate from the date o'i: the expenditure until repaid. Expenses covered by this paragraph include, without limitation,
however subject to any limits under appic~]ble law, Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit,
including attorneys' fees and expenses f~r~ bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgmer~t collection services, the cost of searching records, obtaining title reports {including foreclosure
reports), surveyors" reports, and apprai.,;al fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any
court costs, in addition to all other sums p~ovided by law.
NOTICES. Any notice required to be given und,.~r this Mortgage, including without limitation any notice of default and any notice of sale shall be
given in writing, and shall be effective when ,m'~ually delivered, when actually received by telefacsimile (unless otherwise required by law), when
deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or
registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from
the holder of any lien which has priority ore' this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage.
Loan No: 001000690004009955
MORTGAGE
(Continued)
Page 6
Any person may change his or her address or notices under this Mortgage by giving formal written notice to the other person or persons,
specifying that the purpose of the notice is'to, change the person's address. For notice purposes, Grantor agrees to keep Lender informed at all
times of Grantor's current address. Unless ot':~erwise provided or required by law, if there is more than one Grantor, any notice given by Lender
to any Grantor is deemed to be notice given to, al Grantors. It will be Grantor's responsibility to tell the others of the notice from Lender.
MISCELLANEOUS PROVISIONS. The followm? miscellaneous prowsions are a part of this Mortgage:
Amendments. What is written in this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the
matters covered by this Mortgage. To bd effective, any change or amendment to this Mortgage must be in writing and must be signed by
whoever will be bound or obligated by thee change or amendment.
Caption Headings. Caption headings in t~his Mortgage are for convenience purposes only and are not to be used to interpret or define the
provisions of this Moltgage.
Governing Law. This Mortgage will be [!loverned by and interpreted in accordance with federal law and the laws of the State of Utah,
except and only to the extent of procedural matters related to the perfection and enforcement of Lender's rights and remedies against the
Property, which will be governed by the la,ws of the State of Wyoming. However, if there ever is a question about whether any provision of
this Mortgage is valid or enforceable, th ,~ provision that is questioned will be governed by whichever state or federal law would find the
provision to be valid and enforceable. "~he loan transaction which is evidenced by the Note and this Mortgage has been applied for,
considered, approved and made, and alIP,~:cessary Gan documents have been accepted by Lender in the State of Utah.
Choice of Venue. If there is a lawsuit, :Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of SALT LAKE
County, State of Utah. ·
Joint and Several Liability. All obligation,,'/of Grantor under this Mortgage shall be joint and several, and all references to Grantor shall mean
each and every Grantor. This means that ~ach Grantor signing below is responsible for all obligations in this Mortgage.
No Waiver by Lender, Grantor understal'~ds Lender will not give up any of Lender's rights under this Mortgage unless Lender does so in
writing. The fact that Lender delays or o.mits to exercise any right will not mean that Lender has given up that right. If Lender does agree
in writing to give up one of Lender's right.% that does not mean Grantor will not have to comply with the other provisions of this Mortgage.
Grantor also understands that if Lender c;oes consent to a request, that does not mean that Grantor will not have to get Lender's consent
again if the situation happens again. Grantor further understands that just because Lender consents to one or more of Grantor's requests,
that does not mean Lender will be req~,'.'ed to consent to any of Grantor's future requests. Grantor waives presentment, demand for
payment, protest, and notice of dishonor. Grantor waives all rights of exemption from execution or similar law in the Property, and Grantor
agrees that the rights of Lender in the Prq,~!erty under this Mortgage are prior to Grantor's rights while this Mortgage remains in effect.
Severability, If a court finds that any proNision of this Mortgage is not valid or should not be enforced, that fact by itself will not mean that
the rest of this Mortgage will not be valley.or enforced. Therefore, a court will enforce the rest of the provisions of this Mortgage even if a
provision of this Mortgage may be found to be invalid or unenforceable.
Merger, There shall be no merger of the iqterest or estate created by this Mortgage with any other interest or estate in the Property at any
time held by or for the benefit of Lender iq any capacity without the written consent of Lender.
Successors and Assigns. Subject to any~l'mitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding
upon and inure to the benefit of the'parties, their successors and assigns, tf ownership of the Property becomes vested in a person other
than Grantor, Lender, without notice to (~.rantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness
by way of forbearance or extension w thc .t releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness.
Time is of the Essence. Time is of the essence in the performance of this Mortgage.
Waiver of Homestead Exemption, Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State
· of Wyoming as to all Indebtedness secured by this Mortgage.
DEFINITIONS. The following words shall have. :he following meanings when used in this Mortgage:
Borrower. The word "Borrower" means" KENNETH R PETERSEN and ANDRA L PETERSEN and includes all co-signers and co-makers
signing the Note. ·
Environmental Laws..The words "Envir,pnmenta Laws" mean any and all state, federal and.local statutes, regulations and ordinances
relating to the protection of human healL;~ or the environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 198~i,~ as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and
Reauthorization Act of 1986, Pub. L. No.' 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.,
the Resource Conservation and Recove:~ Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or
regulations adopted pursuant thereto.
Event of Default. The words "Event of' Default" mean any of the events of default set forth in this Mortgage in the events of default
section of this Mortgage.
Grantor. The word "Grantor" means KEhNETH R PETERSEN and ANDRA L PETERSEN.
Guaranty. The word "Guaranty" means, the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including
without· limitation a guaranty of all or part ~f the Note.
Hazardous Substances. The words "Haz, ardous Substances" mean materials that, because of their quantity, concentration or physical,
chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when
improperly used, treated, stored, dispo~'~d of, generated, manufactured, transported or otherwise handled. The words "Hazardous
Substances" are used in their very broa~lest sense and include without limitation any and all hazardous or toxic substances, materials or
waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum
and petroleum by-products or any fraction ~thereof and asbestos.
Improvements. The word "lmprovement:~'~ means all existing and future improvements, buildings, structures, mobile homes affixed on the
Real Property, facilities, additions, replacernents and other construction on the Real Property.
Indebtedness. The word "Indebtedness" h~eans all principal, interest, and other amounts, costs and expenses payable under the Note or
Related Documents, together with all r(ri, ewals of, extensions of, modifications of, consolidations of and substitutions for the Note or
Loan No: 001000690004009955
MORTGAGE O~0~'3~-~'. ('' (~': 3 9 3
(Continued)
Page 7
Related Documents and any amounts exper ded or advanced by Lender to discharge Grantor's obligations or expenses recurred by Lender to
enforce Grantor's obligations under this Mo:'tgage, together with interest on such amounts as provided in this Mortgage.
Lender. The word "Lender" means ZION,~; FIRST NATIONAL BANK, its successors and assigns. The words "successors or assigns" mean
any person or company that acquires any in, retest in the Note.
Mortgage. The word "Mortgage" means ihls Mortgage between Grantor and Lender.
Note. The word "Note" means the promi~sory note dated May 21, 2004, in the original principal amount of $272,891.21 from
Grantor to Lender, together with all reneNals of, extensions of, modifications of, refinancings of, consolidations ol, and substitutions for
the promissory note or agreement. The n-.a~urity date of this Mortgage is June 10, 2014.
Personal Property. The words "Personal Prapert¥" mean all equipment, fixtures, and other articles of personal property now or hereafter
owned by Grantor, and now or hereafter a~'!tached or affixed to the Real Property; together with all accessions, parts, and additions to, all
replacements of, and all substitutions for.; any of such property; and together with all proceeds (including without limitation all insurance
proceeds and refunds of premiums) from any sale or other disposition of the Property.
Property. The word "Property" means co:le,ct ve y the Real Property and the Personal Property.
Real Property. The words "Real Property' mean the real property, interests and rights, as further described in this Mortgage.
Related Documents. The words "Relat(d Documents" mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreemer'ts, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether no~. or hereafter existing, executed in connection with the Indebtedness.
Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from
the Property.
EACH GRANTOR ACKNOWLEDGES HAVING EEAD ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS
TERMS.
GRANTOR:
[(ECJNETH R PI~TERSEN ~
STATE OF
COUNTY OF
INDIVIDUAL ACKNOWLEDGMENT
)
)SS
On this day before me, the undersigned Notar,'~ Public, personally appeared KENNETH R PETERSEN and ANDRA L PETERSEN, to me known to
be the ndiv duals described in and who execuied~ the Mortgage, and acknowledged that they signed the Mortgage as their free and voluntary, act
" ' ~ daY of Resi .
~ven LI~Lr my h~and ar~ff~da~l.-'~al t~s.. · G~/~
Pennle G. Hutchinson
; 125 N Main St., PO Box 56
~ Randolph. Utah 84064
.~ ........ :_~!...~ !-~,"!r,~,~,
/ '~"~'"" STATE OF UTAIt