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HomeMy WebLinkAbout900434,772 State of Wyoming Space Above This Line For Recording Data REAL ESTATE MORTGAGE (With Future Advance Clause) DATE AND PARTIES. The date )f.this Mortgage is 06.18.2004 are as follows: and the parties and their addresses MORTGAGOR: KEVIN M. PAUL a~di~ANALE EKO PAUL, HUSBAND AND WIFE PO BOX 1387 AFTON, WY 831'~0 [] Refer to the Addendum which is attached and incorporated herein for additional Mortgagors. LENDER: THE BANK OF ST~.R VALLEY Organized and exi~tif;g under the laws of the state of Wyoming 384 WASHINGT(~N STREET PO BOX 8007 ALTON, WY 83110 83.0315143 2. MORTGAGE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debt (hereafter del'ned), Mortgagor grants, bargains, conveys, mortgages and warrants to Lender, with the power of sale, the follow!ng des ;ri,~ed property: LOT 8 OF EL-JEAN ESTATES TO THE TOWN OF THAYNE, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THERE.)F. The property is located in LINCOLfl at LOT 8 EL JEAN ESTATES (County) , THAYNE , Wyoming 83127 (Address) (City) (Zip CodeJ Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop producers, and all existing and future improvements, structu[es, fixtures, and replac~'m~nts that may now, or at any time in the future, be part of the real estate described above (all referred to as "Prop~:rty"). The term Property also includes, but is not limited to, any and all water wells, water, ditches, reservoirs, reser'/oJr sites and dams located on the real estate and all riparian and water rights associated with the ProPerty, however established. WYOMING - AGRICULTURAL/COMMERCIAl RE(AL ESTATE SECURITY INSTRUMENT (NOT FOR FNMA, FltLMC, FHA OR VA USE. AND NOT FOR CONSUMEliPUAPOSES} (page 1 of 8) j~'/~ ©1993, 2oo1 Bankers Syslem~, In('., SI. Cloud, MN Form AGCO-RESI-WY MAXIMUM OBLIGATION LIMIT. The total principal amount of the Secured' Debt (hereafter defined) secured by this Mortgage at any one time shall rIot exceed $ 126,000.00 .iThis limitation of amount does not include interest, loan charges, com~nitment fees, brokerage commissions, attorneys' fees and other charges validly made pursuant to this Mortgage and does not apply to advances (or interest accrued on such advances) made under the terms of this Mortgage to protect Lender's security and to perform any of the covenants contained in this Mortgage. Future advances are contemplated and, al~,ng with other future obligations, are secured by this Mortgage even though all or part may not yet be advanced. Nothing1 in this' Mortgage, however, shall constitute a commitment to make additional or future loans or advances in any am('.unt. Any such commitment would need to be a§reed to in a separate writing. SECURED DEBT DEFINED. The term "Secured Debt" includes, but is not limited to, ~he following: A. The promissory note(s), .coil:tract(s), guaranty(les) or other evidence of deb!: described below and all extensions, renewals, modifications or substitutions. (When referencing the debts below it is suggested that you include items such as borrowers' n,~mes and addresses, note principal amounts, commercial revolving loan agreement's maximum amount, interest r~tes, variable rate terms, maturity dates, etc.) · P[~0MISS0RY NOTE DATED 611812004 IN THE AMOUNT OF ~126,000.00 ¸6. B. All future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of debt existing now or executed after this Mortgage whether or not this Mortgag ~, is specifically referred to in the evidence of debt. C. All obligations Mortgagor owes to Lender, which now exist or-may later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanceJ and expenses incurred by Lender for insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Mortgage, plus interest at the highest rate in effect, from time to time, as provided in the Evidence of Debt. E. Mortgagor's performance under the terms of any instrument evidencing a debt by Mortgagor to Lender and any Mortgage securing, guarantying, or otherwise relating to the debt. If more than one person signs thii Mortgage as Mortgagor, each Mortgagor agrees that this Mortgage will secure all future advances and future obligations described above that are given to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. This Mortgage will not secure any other debt if Lender fails, with respect to such other debt, to make any required disclosure about this Mortgage or if Lender fails to give any required notice of the right of rescission, PAYMENTS. Mortgagor agrees to make all payments on the Secured Debt when Cue and in accordance with the terms of the Evidence of Debt or this Mor;:gage. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due. Lender may r~.quire Mortgagor to provide to Lender copies of all notices that such amoJnts are due and the receipts evidencing Mortga!~lor's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Mortgage. Mortgagor agrees to assign to Lender, as requested by Lender~ ar~y rights, claims or defenses which Mortgagor may have against parties who supply labor or materials to improve or maintain the Property. PRIOR SECURITY INTERESTS. Wi~h regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property ~nd that may have priority over this Mortgage, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenant~. B. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to make or permit any ~nodification or extension of, and not to requestior accept any future advances under any note or agreement se~;ured-by, the other mortgage, deed of trust ~r security agreement unless Lender consents in writing. DUE ON SALE OR ENCUMBRANC;. Lender may, at its option, declare the entir~ balance of the Secured Debt to be immediately due and payable upon"the creation of any lien, encumbrance, transfer, or sale, or contract for any of these on the Property. However, if the Property includes Mortgagor's residence, this section shall be subject to the restrictions imposed by federal law (12 C.F.P.. 591), as applicable. For the purposes of th.s section, the term "Property" also includes any interest to all or any part of the Property. This covenant shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this Mortgage is released. (page 2 of 8) ©1993, 2001 Bankers Systems, Inc.' St. Cloud, MN Form AGCO-RESI-WY 111612003 9. TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortgagor is an entity other than a natural )erson (such as a corporation or other organization), Lender may demand immediate payment if (1) a benellicial interest in Mortgagor is sold or transferred; (2) there is a cl~ange in ether the identity or number of members of a p~.rtnership or similar entity; or (3) there is a change in ownership of more ~han 25 percent of the voting stock of a corporation or similar entity. However, Lender may not demand payment in the ~.bove situations if it is prohibited by law as of the date of this Mortgage. 10. ENTITY WARRANTIES AND REPRESENTATIONS. If Mortgagor is an entity other than a natural person (such as a corporation or other organization), Mortgagor makes to Lender the following warranties and representations which shall be continuing as long as the Secured De[t remains outstanding: A. Mortgagor is an entity which is (luly organized and validly existing in the Mortgagor's state of incorporation (or organization). Mortgago~ is in go(d standing in all states in which Mortgagor tr~,nsacts business. Mortgagor has the power and authority to owr' the Property and to carry on its business a~ now being conducted and, as applicable, is qualified to do so in each state in which Mortgagor operates. B. The execution, delivery and performance of this Mortgage by Mortgagor and .the obligation evidenced by the Evidence of Debt are within the power of Mortgagor, have be.eh duly authorized, have received all necessary governmental approval, and will n.ot violate any provision of law, or order of court or governmental agency. C. Other than disclosed in writing Mortgagor has not changed its name within the last ten years and has not used any other trade or fictitious nam,.:. Without Lender's prior written consent, Morllgagor does not and will not use any other name and will preserve its existing name, trade names and franchises until the Secured Debt is satisfied. 11. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessa'y. Mortgagor will give Lender prompt notice of any loss or damage to the Property. Mortgagor will keep the Prop,".rty free of noxious weeds and grasses. Mort::lagor will not initiate, join in or consent to any change in any private re:;trictive covenant, zoning ordinance or other public or private restriction limiting or defining the uses which may be made of the Property or any part of the Property, without Lender's prior written consent. Mortgagor will notify Lender o' all demands, proceedings, claims, and actions against Mortgagor or any other owner made under law or regulation regarding use; ownership and occupancy of the ?roperty. Mortgagor will comply with all legal requirements and restrictior'.s, whether public or private, with respect to the use of the Property. Mortgagor also agrees that the nature of the occupancy and use will not change without Lender's p~ior written consent. No portion of the Property will be removed, demolished or materially altered without Lender's prior written consent except that Mortgagor has the right to remove items of personal property comprising a Dart of the Property that become worn or obsolete, provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free frcm any title retention device, security agreem6nt or other encumbrance Such replacement of personal property will bo deemed subject to the security interest created by th~s Mortgage. Mortgagor shall not partition or subdivide the Propt;rty without Lender's Prior written consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of inspectinC,, the Property. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 12. AUTHORITY TO PERFORM. If Mortgagcr fails to perform any of Mortgagor's duties under this Mortgage, or any other mortgage, deed of trust, security agreement or other lien document that has priority over this Mortgage, Lender may, without notice, perform the duties or cau'se them to be performed. Mortgagor appoints I.ender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. If any construction o,~ the Property is discontinued or not carried on in a reasonable manner, Lender may do whatever is necessary to protect Lender's security interest in the Property. This may include completing tha construction. Lender's right to perform for Mortgagor shall not create an obligation to perform, and L~nder's failure to perform will not preclude Lender from exercising any o'f Lender's other rights under the law or this 1~.4ortgage. Any amounts paid by Lender for insuring, preserving or otherwise protecting the Property and Lender's security, interest will be due on demand and Will bear interest from the date of.the payment until paid in full at the interest ,ate in effect from time to time according to the terms of the Evidence o? Debt. 13. ASSIGNMENT OF LEASES AND RENT,';. Mortgagor assigns, grants, bargains, conveys, mortgages and warrants to Lender as additional security all the right title and interest in the following (Property). A. Existing or future leases, subleases, licenses, guaranties and any other written ,)r verbal agreements for the use and occupancy of the Propert,:, including but not limited to, any extensicns, renewals, modifications or replacements (Leases). B. Rents, issues and profits, inclu ling but not limited to, security deposits, mi~imum rents, percentage rents, additional rents, common area rraintenance charges, parking charges, real es~a.:e taxes, other applicable taxes, insurance premium contributions liquidated damages following default, cancellation premiums, "loss of rents" insurance, guest receipts, revenL es, royalties, proceeds, bonuses, accounts, contract rights, general intangibles, and all rights and claims which I.lortgagor may have that in any way pertain to. or are on account of the use or occupancy of the whole or any p~rt of the Property (Rents)i In the event any item listed as Leases or Rents is determined to be personal properw, this Assignment will also be regarded as a security agreement. (page 3 of 8) J?'~, © 1993, 2001 B~mkers Systems, lac., St. Clc ~d, MN Form AGCO-RESI-WY 1,~1 ~I2003 :' ' 776 Mortgagor will promptly provide, Lender with copies of the Leases and will certify these Leases are true and correct copies. The existing Leases will b'] provided on execution of the Assignment, and all of the future Leases and any other information with respect to the.~ie Leases will be provided immediately after they are executed. Mortgagor may collect, receive, enjoy and use the Rents ao long as Mortgagor is not in default. Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgagor first obtains Lender's written consent. Upon default, Mortgagor will receive any Rents in trust for Lender and Mortgagor will not commingle the Rents with any other funds. When Lender so directs, Mortgagor will endorse and del:vet any payments of Rents from the Property to Lender. Amounts collected will be applied at Lender's discretion to t;3e Secured Debts, the costs of managing, protecting and preserving the Property, and other necessary expenses. Mort],.hgor agrees that this Security Instrument is immediately effective between Mortgagor and Lender. This Security Instrurnent will remain effective during any statutory redemption period until the Secured Debts are satisfied. Unless oth~i.~rwise prohibited Or prescribed by state taw, Mortgagor agrees that Lender may take actual possession of the Property without the necessity of commencing any legal action or proceeding. Mortgagor agrees that actual possession of the P~o)erty is deemed to occur when Lender notifies Mortgagor of Mortgager's default and demands that Mortgagor and M'](tgagor's tenants pay all Rents due or to become due directly to Lender. immediately after Lender gives Mortgagor the !notice of default, Mortgagor agrees that either Lender or Mortgagor may immediately notify the tenants and demand tl~a,t all future Rents be paid directly to Lender. As long as this Assignment is in effect, Mortgagor warrants and represents that no default exists under the Leases, and the parties subject to the Leas~.,s: have not violated any applicable law on leases, licenses and landlords and tenants. Mortgagor, at its sole cost and a;~pense, will keep, observe and perform, and require all other parties to the Leases to comply with the Leases and any applicable law. If Mortgagor or any party to the Lease defaults or fails to observe any applicable law, Mortgagor will p¢c. mptly notify Lender. If Mortgagor neglects or refuses to enforce compliance with the terms of the Leases, then Lender r.:~ay, at Lender's option, enforce compliance. Mortgagor will not sublet, modift,:, extend, cancel, or otherwise alter the Leases, or accept the surrender of the Property covered by the Leases (unless th~' Leases so require) without Lender's consent. Mortgagor will not assign, compromise, subordinate or encumber the L,~ases and Rents without Lender's prior written consent. Lender does not assume or become liable for the Property's maintenance, depreciation, or other losses or damages when Lender acts to manage, protect or preserve the Propertg, ,'except for losses and damages due to Lender's gross negligence or intentional torts. Otherwise, Mortgagor will inder'~nify Lender and hold Lender harmless for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its remedies against any party obligated under the Leases. 14. CONDOMINIUMS; PLANNED UI¥1T DEVELOPMENTS. If the Property includes a unit in a condominium or a planned Unit development, Mortgagor will per,form all of Mortgager's duties under the covenants, by-laws, or regulations of the condominium or planned unit deve!opment. 15. DEFAULT. Mortgagor will be in de~ault if any of the following occur: A. Any party obligated on the Secured Debt fails to make payment when due; B. A breach of any term o~ 5ovenant in this Mortgage, any prior mortgage or any construction loan agreement, security agreement or an'/~Other 'document evidencing, guarantying, securing or otherwise relating to the Secured Debt; ' C. The making or furnishing of any verbal or written representation, statement or warranty to Lender that is false or incorrect in any material ~e:;pect by Mortgagor or any person or entity obligated on the Secured Debt; D. The death, dissolution, or insolvency of, appointment of a receiver for, or application of any debtor relief law to, Mortgagor or any person ~r entity obligated on the Secured Debt; E. A good faith belief by Ler'~der at any time that Lender is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment is impaired or the value of the Property is impaired; F. A material adverse chan('jff' in Mortgager's business including ownership, management, and financial conditions, which Lender in its opinicn'believes impairs the value of the Property or repayment of the Secured Debt; or G. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands tn Produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. 16. REMEDIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure, mediation notlces or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt and foreclose this Mortgage in a manner provided by law if this Mortgagor is in defaul':. ~ At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, a~ter giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shali be entitled to all the remedies provided by law, the Evidence of Debt, other evidences of debt, this Mortgage and an,t .related documents including without limitation, the power to sell the Property. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether expressly set forth or noL The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require full ant~ complete cure of any existing default. By not exercising any remedy on Mortgager's default, Lender does not waive Lender's right to later consider the event a default i~ it continues or happens again. (page 4 of 8) ~]__~ ©1993, 2001 Bank~r~ S~tem~, Inc., St. Cloud, MN Form AGCO RES~-WY 1116/2OO3 ; osoo,l!,a4 7 7 7 17. EXPENSES; ADVANCES ON COVE~qANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagor breaches any covenant in this Mortgage. Mortgagor will also pay on demand all of Lendei"'s expenses incurred in collecting, insuring, preserving or protecting the Property or ~n any nventories, audits, inspectio').sfor other examination by Lender in respect to the Property. Mortgagor agrees to pay all costs and expenses incurred byiLender in enforcing or protecting Lender's rights and remedies under this Mortgage, including, but not limited to, atto'-neys' fees, court costs, and other legal expenses. Once the Secured Debt is fully and finally paid, Lender agrees to release this Mortgage and Mortgagor agrees to pay for any recordation costs. All such amounts are due on demand and:will bear interest from the time of the advance at the highest rate in effect, from time to time, as provided in the Evidence, of Debt and as permitted by law. 18. ENVIRONMENTAL LAWS AND hAZARDOUS SUBSTANCES. As used in this section, (1) "Environmental Law" means, without limitation, the Compreh{~nsive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, ::t~,te and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning tnel public health, safety, welfare, environment or a hazardous substance; and (2) "Hazardous Substance" means a'ly toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the pubic health, safety, welfare or environment. The term includes, Nithout limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardou.,' slubstance" under any Environmental Law. Mortgagor represents, warrants and agrees that, except as previously disclosed:and acknowledged in writing: A. No Hazardous Substance 5a,S been, is, or will be located, transported, manufactured, treated, refined, or handled by any person on, under cr fibout the Property, except in the ordinary course of business and in strict compliance with all applicable Environmental Law. B. Mortgagor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on the Property. C. Mortgagor will immedia'tel/notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or about the Property ..]r migrates or threatens to migrate from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Mortgagor has no knowledge of or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind re'sting to (1) any Hazardous Substance located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgegcr has reason to believe there is any such pending.or threatened investigation, claim, or proceeding, In such an ]wnt, Lender has the right, but not the obligation, to participate in any such proceeding including the right to recei ze copies of any documents relating to such proceedings. E. Mortgagor and every renault have been, are and shall remain in full compliance with any applicable Environmental Law. F. There are no undergrounc s'~:orage tanks, private dumps or open wells located on or under the Property and no such tank, dump or well W ill be added unless Lender first consents in writing. G. Mortgager will regularly ir,sport the Property, monitor the activities and operations on the Property, and confirm that all permits, licenses or .approvals required by any applicable Environmental Law are obtained and complied with. H. Mortgagor will permit, or ca,Jse any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Substance on,'urder or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance tha¥ Fas been released on, under or about the Property; or (3) whether or not Mortgagor and any tenant are in com,]liance with applicable Environmental Law. I. Upon Lender's request and at any time, Mortgagor agrees, at Mortgager's expense, to engage a qualified environmental engineer to, p~epare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of ti-lo environmental engineer who will perform such audit is subject to Lender's approval, J. Lender has the right, but not the obligation, to perform any of Mortgager's obligations under this section at Mortgager's expense. : K. As a consequence of any.br.~ach of any representation, warranty or promise made in this section, (1) Mortgagor will indemnify and hold L~:nder and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damage, s, cleanup, response and remediation costs, penalties and expenses, including without limitation all cost.~, o,~ litigation and attorneys' fees, which Lender and Lender's successors or assigns may sustain; and (2) at Lende:'s-discretion, Lender may release this Mortgage and in return Mortgagor will provide Lender with collateral of alt I~ast equal value to the Property secured by this Mortgage without prejudice to any of Lender's rights under this Mortgage. L. Notwithstanding any of the language contained in this Mortgage to the contrary, the terms of this section shall survive any foreclosure cr satisfaction of this Mortgage regardless of any passage of title to Lender or any disposition by Lender of a~',y'or all of the Property. Any claims and defenses to the contrary are hereby waived. 19. cONDEMNATION. Mortgagor w'll 'give Lender prompt notice of any action, real or threatened, by private or public entities to purchase or take any ~.r ;dl of the Property, including any easements, through condemnation, eminent domain, or any other means. Mortgagor f~rther agrees to notify Lender of any proceedings instituted for the establishment of any sewer, water, conservation, ditc,~, drainage, or other district relating to or binding upon the Property or any part of it. Mortgagor authorizes Lender to intervene in Mortgager's name in any of the above described actions or claims and to collect and receive all sums resul:ing from the action or claim. Mortgager assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will. be applied as provided in this Mortgage. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. (page 5 of 8) ~ ©1993.2ool B~nke~s Systems. I,~c.. St. Cloud, MN Form AGCO-RESI-WY 111012003 o )oo4a4 20. INSURANCE. Mortgagor agrees k'~ ~aintain insurance as follows: A. Mortgagor shall keep th& ~¢operty insured against loss by fire, theft and other hazards and risks reasonably associated with the ProFeEty due to its type and location. Other hazards and risks may include, for example, coverage against loss dL~:.' ',o floods or flooding. This insurance shall be maintained in the amounts and for the periods that,Lender requ ea. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured [~eUt. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, w.'i~h shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described above, Lender ~ay, at Lender's option, obtain coverage to protect Lender's rights in the Property according to the terms of this Mortgage. All insurance policies and rgnewals shall be acceptable to Lender and shall include a standard "mortgage clause" and, where applicable, "1 ;haler loss payee clause." Mortgagor shall immediately notify Lender of cancellation or termination of the insura.~ce. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall immedi~:~e,y give to Lender all receipts of paid premiums and renewal notices. Upon loss, Mortgagor shall give imrr :~diate notice to the insurance carrier and Lender. Lender may make proof of loss if no~ made immediately by Mo~ ~g~gor. Unless Lender and Mort.r~a~oor otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property da n~,ged if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoral~i ,n or rel~air is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the Secured Debt, whether or not then due, with any excess paid to Mortgagor. If Mortgagor; bandons the Property, or does not answer within 30 days a notice from Lender that tile insurance carrier has offered to settle a claim,, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay the Secured Debt whether or not then due. The 30-day period will begin when th. notice is given. Unless. Lender and Mortg:gor Otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due dal.:.· Of scheduled payments or change the amount of tile payments. If the Property is acquired by Lender, Mo~'~g;~gor's right to any insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the extent of the Secured Debt immediately before the acquisition. B. Mortgagor agrees to mairltaln comprehensive general liability insurance naming Lender as an additional insured in an amount acceptable to, L~nder, insuring against claims arising from any accident or occurrence in or on the Property. C. Mortgagor agrees to maintain rental loss or business interruption insurance, as required by Lender, in an amount equal to at least coverage of one year's debt service, and required escrow account deposits (if agreed to separately in writing), uric. er a form of policy'acceptable to Lender. 21.NO ESCROW FOR TAXES AND !N,~i~URANCE. Unless otherwise provided in a separate agreement, Mortgagor will not be required to'pay to Lender funds f? "taxes and insurance in escrow. ADI~ITIONAL DOCUMENTS. Mortgagor will provide' to Lender upon request, any financial 22. FINANCIAL REPORTS AND statemen~ or information Lender m~y deem necessary. Mortgagor warrants that all financa statements and information Mortgagor provides to Lender ar~;, br will be, accurate, correct, and complete. Mortgagor agrees to sign, deliver, and file as Lender may reasonably requesl~ any additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve ~,Adrtgagor's obligations under this Mortgage and Lender's lien status on the Property. if Mortgagor fails to do so, Lender' may sign, deliver, and file such documents or certificates in Mortgagor's name and Mortgagor hereby irrevocably ap ~.oints Lender or Lender's agent as attorney in fact to do the things necessary to comply with this section, 23. JOINT AND INDIVIDUAL LIABIL! "Y'; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. Ali duties under this Mortgage are joint and individual. If Mortg~§o¥ signs this Mortgage but does not sign the Evidence of Debt, Mortgagor does so only to mortgage Mortgagor's interes, in the Property to secure payment of tile Secured Debt and Mortgagor does no~ agree to be personally liable on the S~ :ui:ed Debt. Mortgagor agrees that Lender and any party to this Mortgage may extend, modify or make any change in tl,e iterms of this Mortgage or the Evidence of Debt without Mortgagor's consent. Such a change will not release Mortgag ~r ~'rom the terms of this Mortgage. The duties and benefits of this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender. If this Mortgage secures a guar~ ~t9 between Lender and Mortgagor and does not directly secure the obligation which is guarantied, Mortgagor agrees tt ~!,aive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted ruder the obligation including, but not limited to, anti-deficiency or one-action laws. 03004 q 24. APPLICABLE LAW; SEVERABILIT~'; ;INTERPRETATION. This Morlgage is governed by the laws of the jurisdiction in which Lender is located, except .'.~) the ex;ant otherwise required by tl~e laws gl the jurisdiction where the Properly is located. This Mortgage is comFMte' and fully integrated. This Mortgage may not be amended or modified by ora agreement. Any section or claus~ in this Mortgage, attachments, or any agreement related [o tl~e Secured Debt the! conflicts with applicable law will lot )e effective, unless that law expressly orimpliedly permits the variations by written agreement. If any section or claLse of this Mortgage cannot be enforced according to its terms, that section or clause will be severed and will not affect th~ enforceability of the remainder of this Mortgage. Whenever used, the singular shall include 'the plural and the pluto' thi., singular. The capnons and headings of tl~e sec[ions of this Mortgage are for convenience only and are not to t,u used ~o interpret or define the terms of this Mortgage Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise requir~'.d b/ law, any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party's address o~lpa, ge 1 of this Mortgage, or to any other address designated in writing. Notice to one mortgagor will be deemed to be n~:tic.i:' to all mortgagors. 26. WAIVERS. Except to the extent t:rohibited by law, Mortgagor waives any right regarding the marshalling of liens and assets and all homestead exempti')n rlghts relating to the Property. 27. U.C.C. PROVISIONS. If checked, he (ollowing are applicable to, but do not limit, this Mortgage: Construction Loan. This N';r~rtgage secures an obligation incurred for the construction of an improvement on the Property. [] Fixture Filing. Mortgagor ]~apts to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will )~come fixtures related to the Property. [] Crops; Timber; Minerals; :~ants, Issues and Profits. Mortgagor grants to Lender a security interest in all crops, timber and minerals located on the Property as well as all rents, issues, and profits of them including, but not limited to, all Conservatior Reserve Program (CRP) and Payment ia Kind (PIK) payments and similar governmental programs (all of which sha,I also be included in the term "Property"). [] Personal Property. Mortga.]p( ,;]rants to Lender a security interest in all personal property located on or connected with the Property. This s~cq[j~, interest includes all farm products, inventory, equipment, accounts, documents, instruments, chattel paper, g~(leral intangibles, and all olhe~ items of personal property Mortgagor owns now or in the future and that are us~:di'br'useful in the construction, ownership, operation, management, or maintenance of the Property. The term "t ~rsonal property" specifically excludes that property described as "household goods" secured in connection wt'~ a "consumer" loan as those terms are defined in applicrble federal regulations governing unfair and deceptive credit practices. [] Filing As Financing Statement. Mortgagor agrees and acknowledges that this Mortgage also suffices as financing statement and as such, may be filed of record as a financing statement for purposes of Article 9 of the Uniform. Commercial Code. A carbon, photographic, image or other reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMs. If checked, the fol'ioWing are applicable to this Mortgage: Line of Credit. The Secure[' D~bt includes a revolving line o1' credit provision. Although the Secured Debt may be reduced to a zero bala~ce,'fl~is~ Mortgage will remain in effect un;il released. [] Separate Assignment. The M~rtgagor has executed or will execute a separate assignment of leases arid rents. If the separate assignment cf leases and rents is properly executed and recorded, then the separate assignment will supersede this Security In.¢ trurqent's "Assignment gl Leases and Rents" section. [] Additional Terms. SIGNATURES: By signing below, Mortgagor agrees to the terms and covenan:s contained in this Mortgage and in any attachments, Mortgagor also acknowledges receipt of a copy of this Mortgage on the date stated above on Page 1. [] Actual authority was granted to the parties signing below by resolution signed and dated Entity Name: ISigneturel KEVIN M. PAUL (Date) (Signature)NANALE EKO PAUL (Date} (Signature) (Date) (Signature} (Date} [] Refer to the Addendum which is attached and incorporated herein for additional Mortgagors, signatures and acknowledgments. ACKNOWLEDGMENT: ([ndividuell STATE OF Wyoming This instrument was ackr owledged before me this by KEVIN M. pAUL; NANALE EKO PAUL. HUSBAND AND WIFE My commission expires: , COUNTY OF v _ .- . _f~ .... } ss. 18Ih day:of June, 2004 / J ~ ..... ~ ([~]~ta'ry Publicf' STATE OF . COUNTY OF This instrument was ackpowledged before me this by day ~f SS. {Title(s)) Ackl~owledgmentl Of a My commission expires: (Name of Business or Entity} on behalf of the business or entity. (Notary Public) ©1993, 2001 Bankers Syslems. Inc.. St. Cloud MN Fo~m AGCO-RESI-WY 1/16/2003 (page 8 of 8)