HomeMy WebLinkAbout900457RECORDATION REQUESTED BY:
BANK OF IDAHO
Channing Branch
1800 Channing Way
PO Box 1487
Idaho Falls, ID 83404
WHEN RECORDED MAIL TO:
BANK OF IDAHO
Channing Branch
1800 Channing Way
PO Box 1487
Idaho Falls, ID 83404
SEND TAX NOTICES TO:
SALT RIVER HOMES, LLC
PO BOX 3698
ALPINE~ WY 83128
9 0 0 h 5 'i
559 . o
SPACE ABOVE THIS LINE IS FOR RECOROER'S USE ONLY
CONSTRUCTION MORTGAGE
THIS MORTGAGE dated June 21, ;1!004, is made and executed between SALT RIVER HOMES, LLC, a Wyoming
Limited Liability Company (referred te below as "Grantor") and BANK OF IDAHO, whose address is 1800 Channing
Way, PO Box 1487, Idaho Falls, ID 33404(referred to below as "Lender").
GRANT OF MORTGAGE. For valuable ceasing'align, Grantor mortgages and conveys to Lender all of Grantor's right, title, and interest in and to
the following described real property, tugetker with all existing or subsequently erected or affixed buildings, improvements arid fixtures; all
easements, rights of way, and appurtenances; all water, watur rights, watercourses and ditch rights (including stock in utilities with ditch or
irrigation rights); and all other rights, royal;I,i~¢s, and profits relating to the real property, including without limitauon all minerals, oil, gas,
geothermal and similar matters, (the "Real'Property") located in LINCOLN County, State of Wyoming:
LOT 179 IN NORDIC RANCHES~DlVlSlON NO. 13, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE
OFFICIAL PLAT THEREOF
The Real Property or its address is commonly known as 18 Gallup Drive, ETNA, WY 83118.
CROSS-COLLATERALIZATION. In addition ~:d the Note, this Mortgage secures ail obligations, debts and liabilities, plus interest thereon, of
Borrower to Lender, or any one or more of th~.m, as well as all claims by Lender against Borrower or any one or more of them, whether now
existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due,
direct or indirect, determined or undetermin~-:~!l, absolute or contingent, liquidated or unliquidated whetl~er Borrower or Grantor may be liable
individually or jointly with others, whether ot:;~igated as guarantor, surety, accommodation party or otherwise, and whedler recovery upon such
amounts may be or hereafter may become be'fred by any statute of limitations, and whether the obligation to lepay such ecl/guilts may be or
hereafter may become otherwise unenforceaL.¥.
Grantor presently assigns to Lender all of Gr rntOr'S right, title, and interest in and to all present and future leases of the Property and ail Rents
/rom the Property. In addition, Grantor grant* ilo Lender a Uniform Commercial Code security interest in the Personal Property and Rents.
THIS MORTGAGE, INCLUDING THE ASSIGN:';?ENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS
GIVEN TO SECURE IA) PAYMENT OF THE-II~JDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE,
THE RELATED DOCUMENTS, AND THIS MOI:TGAGE. THIS MORTGAGE IS GIVEN AND ACCEPfED ON THE FOLLOWING TERMS:
GRANTOR'S WAIVERS. Grantor waives all r;ghts or defenses arising by reason of any "one action" or "anti-deficiency" law, or any other law
which may prevent Lender from bringing any action against Grantor, including a claim lor deficiency to tile extent Lender is otherwise entitled to
a claim for del~iciency, before or alter Lend~;~.~s commencement or completion gl any foreclosure action, either judicially or by exercise of a
power of sale.
GRANTOR'S REPRESENTATIONS AND WARiI'ANTIES. Grantor warrants that: (a) this Mortgage is executed at Borrower's request and not at
the request of Lender; {b) Grantor bas the fL:h power, right, and authority to emer into Lhis Mortgage and to hypothecate the Property; (c) the
provisions of this Mortgage do not conflict w!th, or result in a default under any agreement or uther instrument binding upon Grantor and do not
result in a violation of any law, regulation, co ~rt decree or order applicable to Gra~tor; (d) Grantor has established adequate rneans gl obtaining
from Borrower on a continuing basis inform~-~on about Borrower's financial condition; and (e) Lender bas made no representation to Grantor
about Borrower {including without limitation th~~. cleditworthiness of Borrower).
PAYMENT AND PERFORMANCE. Except as ,)~herwise provided intbis Mortgage, Borrower shall pay to Lender all Indebtedness secured by tl~is
Mortgage as it becomes due, and Borrower a'~rl Grantor shall strictly perform ali t¢orrower's and Grantor's obligations under this Mortgage.
CONSTRUCTION MORTGAGE. This Mortgaye is a "construction mortgage" for the purposes of SectiOns 9-334 and 2A-309 of the Uniform
Comrnercial Code, as ti'lose sections have be~.r~ adopted by the State of Wyumiog.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Borrower and Grantor agree ti~at Borrower's and Grantor's possession and use of the
Property shall be governed by the following p'ovisions:
Possession and Use. Undlthe occurren:~; 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 fromtbe Property.
Duty to Maintain. Grantor shall mair't,dn the Property in tenantable condition and promptly perform all repairs, replacements, and
maintenance necessary to preserve its v,:,lue.
Compliance With Environmental Laws. (~rantor represents and warrants to Lender flint: (1) During the period of Grantor's ownership of
tile Property, there has been no nse, geperation, manufacture, storage, treatment, disposal, .release or threatened' release of any Hazardous
Substance by any person on, under,, abuot or from the Property; (2) Grantor has ilo knowledge of, or reason to believe that there bas
been, except as previously disclosed to ¢;,nd acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws,
(b) any use, generation, menu[aclu(e, ,:forage, treatment, disposal, release or threatened release of any Hazardous Substance on, under,
about or from tile Property by any prior owners or occupants of die P/operty, or (c) any actual or threatened litigaLion or claims of any
kind by any person relating to sucbmattlfs; and (3} Except as previously disclosed to and acknowledged by Lender in wliting, (a) neither
Grantor nor any tenant, contractor, agert,or other authorized user of the Property shall use, generate, manufacture, stor~, t~uat, dispose of
or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance
with all applicable federal, slate, and Io~.al laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor
authorizes Lender and its agents to enter 'Jpofl [he Property to make such inspections and tests, at Grantor's expense, as t under may deem
appropriate to determine compliance of ti~e Property with this section of tile Mortgage. Any inspections or tests made by t under shall be
for Lender's purposes only and shall not be construed to create any responsibility or hability on the part of Lender to GranLor or to any other
person. The representations and war~anties contained herein are based oil Grantor's due diligence in investigating die P~operty for
Hazardous Substances. Grantor hereby '(1) releases and waives any future claims against Lender for indemnity or contribution in the
event Grantor becomes liable for clean~l) or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender
against any and all claims, losses, liabiities, damages, penalties, and expenses which Lender may directly or indirecdy 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 th, untuned release occurring prior to G~antor's ownership or interest in tile Property, whether or not the same was or should have been
known to Grantor. The provisions of il'L,, section of the Mortgage, including tlle obligation to indemnify, shall survive the payment of the
Indebtedness and the satisfaction and r c~onveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any
interest in tile Property, whether by fore. Iosure or otherwise.
Nuisance, Waste. Grantor shall not cau~'~., conduct or.permit any nuisance nor commit, permit, or suffer any strippino of or waste on or to
the Property or any portion of the Prope, ty. Without limiting the generality gl tile foregoing, Grantor will not remove, or gram to any other
party the right to remove, any timber, m:.:erals (including oil and gesJ, coal, clay, scoria, soil, gravel or r~¢ck prodt~cts without LentJel's prior
OBO0
koan IMo: 25414241
MORTGAGE
(Continued)
Page 2
written consent.
Removal of Improvements. Grantor shall not demolish Dr remove any Improvements from the Real Property without Lender's prior Written
consent. As a condition to the remove: q,f any Improvements, Lender may require Grantor to make arrangemeots satisfactory to Lender to
replace such Improvements witb Improvements of at least equal value.
LogGer's Right to Enter. Lender and Le:ider's agents and representatives may enter upon the Real Property at all reasonable times to attend
to Lender's interests and to inspect the lq~,al Property for purposes o! Grantor's compliance with the terms and conditions of this Mortgage.
Cornpliance witt~ Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and r~gulations, now or llereafter
in effect, of all governmental authoriti~;slapplicable to tl~e use or occupancy of die Property, including wi[bout limitation, the Americans
With Disabilities Act. Grantor may [.;.re!test in good faith any such law, ordinance, or regulation and withhold compliance during any
proceeding, including appropriate appe~:l,,;, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's
sole opinion, Lender's interests in the P:o:'~erty are not jeopardized. Lender may ~equire Grantor to post adequate security or a surety bond,
reasonably satisfactory to Lender, to pr,~.t~ct Lender's interest.
Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those
acts set forth above in this section, wh:c~? from the character and use of tile Property are reasonably necessary to protect and preserve tho
Property. .
CONSTRUCTION I.OANi If some or all o~ the proceeds of the loan creating the Indebtedness are to be used to construct or complete
construction of any Improvements o]~ tile P;oi?erty, the Improvements shall be completed no later than the maturity (late of the Note (or such
earlier date as Lender may reasonably estal:'i.,i;h) and Grantor shall pay in full all costs and expenses in connection with the work. Lender will
disburse loan proceeds under such terms a,~.d conditions as Lender may deem leasonably necessary to insure that the interest created by this
Mortgage shall have priority over all possible'! liens, including those gl material suppliers and workmen Lender rnay require, among other th'ings,
that disbursement requests be supported b~, receipted bills, expense alfidavits, waivers of liens, certs[ruction progress reports, and such other
docuntentation as Lender may reasonably rec uest.
TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage:
Payment. Grantor shall pay when due. ('~nd in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water
charges and sewer service charges levib(~ against or on account of the Property, and shall pay when due all 'claims for work done on or for
services rendered or material furnished 'o the Property. Grantor shallrnaintain the Propelt¥ free of any liens having priority oval or equal to
the interest of Lender under this Mortgage, except lot those liens spa[itl[ally agreed to in writing by Lender, and except for the lien of taxes
and assessments riot due as further spe'gified in the Right to Contest paragraph.
Right to Contest. Grantor may withhol~l payment of any tax, assessment, or claim in connection with a good faith dispute over the
obligation to pay, so long as Lender's iq'to(est in the Property is not jeopardized. I1 a lien arises or is filed as a result gl nonpayment,
Grantor shall within fifteen (15) days si:tier the lien arises or, if a lien is filed, within fifteen (15) days after Grantor bas notice of the liling,
secure the discharge of the lien, or if recl,;~ested by Lender, deposit with Lender cash or a sulficient corporate surety bond or other security
satisfactory to Lender in an amount sg:'fi!:ient to discharge the lien plus arty costs and attorneys' fees, or other charges that could accrue
as a result ct a foreclosure or sale uocle, r the lien. In any coolest, Grantor shall delend itself and Lender and shall satisfy any adverse
judgment before enforcement against ti;e: Property. Grantor shall name Leoder as an additional obligee under any surety bond lurnished in
the contest proceedings.
Evidence of Payment. Grantor shallupcn~demand furnish to Lender satislactory 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 ct the taxes and assessme,tts against
the Property, ' :
Notice of Construction. Grantor shall nok':fy Lender'at least fifteen (15) days before any work is corn(oeo[ed, any services are furnished, or
any materials are supplied to the Prop;-~rty, if any mecbanic's lien, materialmen's lien, or othe'r lien could be asserted on account of the
work, services, or materials. Grantor WI',: upon request of Lender furnish to Lender advance assurances sa[is[ac[cry to Lender that Grantor
can and.will pay the cost of sucl~ inqpro,:ze'ments.
PROPERTY DAMAGE INSURANCE. The foil[wing provisions relating lo insuring the Property are a part of this Mortgage:
Maintenance of Insurance. Grantor sh~'l procure and maintain policies of fire insurance with standard extended coverage endorsements on
a replacement basis for the full insurab(e value covering all Improvements on the Real Property in an amount sufficient to avoid application
of any coinsurance clause, and with ;; standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain
comprehensive general liability insurance ~n such coverage amounts as Lender may request with Lender being named as additional insureds
in such liability insurance policies. Adc, iiionally, Grantor sball maintain such other insuran'ce, including but not limited to hazard, business
interruption and boiler insurance as Lende'r may require. Policies shall be written by such insurance companies and itl such term as may be
reasonably acceptable to Lender. Gra~ t0r shall deliver to Lender certificates of coverage from each insurer containing a stipulation that
coverage will not be cancelled or diminished without a minimurn o! thirty (30) (lays' prior written notice to Lender and not containing any
disclaimer of the insurer's liability for f;:dlure to give such notice. Each insurance policy also shall include an endorsement providing that
coverage itl laver of Lender will not be i.l{joaired in any way by any act, omission or default of Grantor or any other person. Should the Real
Property be located in an area designalad by the Director of the Federal Emergency Management Agency as a special flood hazard area,
Grantor agrees to obtain arid maintain F~'leral Flood insurance, if available, wi[bin 45 days after notice is given by Lender that the Property
is located in a special flood hazard are;.., for the full unpaid principal balaoce o| the loan and any prior liens on the property securing the
loan, up to the maximum policy limits st~t, under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain
such insurance for the term of the loan.
Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if
Grantor fails to do so within lit[eon (1.5~ days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
election, receive and retain the proceeds:' of any insurance and apply the proceeds to the reduction of the Indebtedness, payroent of arty lien
affecting the Pkoperty, or the restoratior, ~nd repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor
shall repair or replace the damaged or d.~stroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of
such expenditure, pay or reimburse Gr~'n:or from the proceeds for the reasonable cost uf repair or resto,ation il Grantor is not irs delauh
under this Mortgage. Any proceeds vhich have not been disbursed within 180 (lays after their receipt arid which Lender has not
committed to the repair or restoration c' ",he 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 tile principal balance gl the Indebtedness. If t. ender holds ally proceeds
after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear.
Grantor's Report on Insurance. Upon request of Lender, however'not more than once a year, Grantor shall furnish to Lender a report on
eacb existing policy of insurance showit]fl: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the
property insured, tile then current replz~-'.ement value of such property, and tile manner of determining that value; and (5) the expiration
date of the policy. Grantor sball, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value
replacement cost of the Property.
fENDER'S EXPENDITURES. Il any action or proceeding is commenced that would materially altec[ Lender's interest in[he Property or if Grantor
fails to comply with any provision of this Mort:3age or any Related Documents, including but not limited to Grantor's [allure to discharge or pay
when due any amounts Grantor is required to ':lischarge or pay unde~ this Mortgage or any Related Documents, Lender on Cf eater's bebal~ may
(bet shall not be obligated to) take any action,that Lender deems appropriate, including but riot limited to discharging or payiog all taxes, liens,
security interests, encumbrances and other d!a;ms, at any time levied or placed o~t the Property and paying all costs for insuring, maintaining and
preserving the Property. Ail suchexpenditur,:.~s incurred or pa'id by Lender for such purposes will then bear interest at the rate charged under the
Note from the date incurred or paid by Lend,:(.to the (:late of repayment by Grantor. All such expenses will become a part of[be Indebtedness
and, at Lender's option, will (A) be t)ayabl:t' on demand; (B) be added to the balance of the Note and be apportioned among and be payable
with any installment payments to become dt.,eiduring either (1) the term of any applicable insurance policy; or (2) the remaining term of the
Note; or (C) be treated as a balloon payme~,r:'which will be due and payable at the No[o's maturity. The Mortgage also will secure payment of
these amounts. Such right shall be in addition:to all other rights and remedies to which Lender may be entitled upon Default.
WARRANTY; DEFENSE OF TITLE. The follovq~g provisions relating to ownership of the Property are a part 0ftl~is Mortgage:
Title. Grantor warrants that: (a) Grant's(holds good and marketable title of record to tile Property in fee simple, free and clear of all liens
and encumbrances other [ban those set ~:r~rth in the Real Property description or in any title insurance policy, title report, or final title opinion
issued in favor of, and accepted by, Le;~der in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to
execote and deliver this Mol[gage to Larder.
Loan No: 25414241
0~' ~'~? MORTGAGE
· ! (Continued)
Page 3
Defense of Title. Subject to the excep~ .ilinthe paragraph, above, Grantor warrants and will forever defend the title to the Property against
the lawful claims of all persons. Inthe~.?ent any action or proceeding is commenced that questions Grantor'st{tie or the interest of Lender
under this Mortgage, Grantor shall defer!d the action at Grantor's expense. Grantor may be tile nominal party in such proceeding, but
Lender shall be entitled to participate ir, ~he proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
Grantor will deliver, or cause to be dellivered to Lender such instruments as Lender may request from time to time to permit such
participation.
Compliance With Laws. Grantor warran,s that the Property and Grantor's use of the Property complies with all existing applicable laws,
ordinances, and regulations of governm~,~-~tal authorities,
Survival of Representations and Warra~es. All representations, warranties, and agreements made by Grantor in tbis Mortgage shall
survive the execution and delivery of this~Mortgage, shall be continuing in nature, and shall remain in lull lorce end effect ontil such time as
Borrower's Indebtedness shall be paid il? ~ull.
CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage:
Proceedings. If any proceeding in cond,~mnation is filed, Grantor shall prornptly opt{fy Lender in writing, and Grantor shall promptly take
such steps as may be necessary to def:.~,nd the action and obtain the award. Grantor may be the nominal party in such proceeding, but
Lender shall be entitled to participate in Line proceeding and to be represented in the proceeding by counsel pi its own choice, and Grantor
will deliver or cause to be delivered to '.~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 ~'i'W part of the Property is coodemned by eminent domain proceedings or by any proceeding or
purchase in lieu of condemnation, [_end~;r may at its electioo require that all or any portion of the het proceeds of the award be applied to
the Indebtedness or the repair or restor,~tioo of the Property. The net proceeds of the award shall rneen the award after payment of all
reasonable costs, expenses, and a'ttorne, ys' fees incurred by Lender in connection with the condemnation.
IMPOSITION OF TAXES, FEEs AND CHARG~iS 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;qlrequest by Lender, Grantor shall execute such documents in addition to this Mortgage and take
whatever other action is requested by Li~!~der to perfect and continue Lender's lien on the Real Property. Grantor sball reimburse Lender for
all taxes, as described below, together ~vitb all expenses incurred in recording, perfecting or continuing this Mortgage, including without
limitation all taxes, fees, documentary s~,.:~mps, and otber charges for recording or registering this Mortgage.
Taxes. The following shall constitute talxes to which this section applies: (1) a specific tax upon this type of Mortgageor upon all or soy
part of the Indebtedness secured by ti;iS Mortgage; (2) a specific tax on Borrower which Borrower is authorized or required to deduct
from payments ontbelndebtedness sec,~red by this type of Mortgage; (3) a tax on this type of Mortgage chargeable age{pst the Lender or
the holder of tbe Note; and (4.) a spec;ftc tax on all or any portion of the Indebtedness or on payments of principal and interest made by
Borrower.
SUbsequent Taxes. If any tax to which d~is section applies is enacted subsequent to the date of this Mortgage, this event shall have the
same effect as an Event of Default, and Lender may exercise any or all pi its available remedies for an Event of Default as provided below
unless Grantor either (1) pays the tax before it becomes delinquent, or' (2) contes{s the tax as provided above in the Taxes and Liens
. section and deposits witb Lender cash o,.'a sufficient corporate surety bond or otber security satisfactory to Lender.
SECURITY AGREEMENT; FINANCING STATI'.I~/iENTS. The following provisions relating to this Mortgage as a security agreement are a part of
this Mortgage:
Security Agreement. This instrument .,iliall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and
Lender shall ba~e all of the rights of a se,lured party under the Uniform Commercial Code as antended from time to time.
Security Interest. Upon request by Le~(~!er, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's
security i~terest in the Re~ts and Persou. al Prol:ert¥. In addition to recordiog this Mortg-~geintb3 foal pr0part¥'rocords, Lender may, at any
time and without further aot!~orization from Grantor,'file executed counterparts, copies or reproductions of this Mortgage as a financing
statement. Grantor Shall reimbuise Lender for all expenses incurred in perfecting Or continuing this security interest. Upon default, Grantor
shall not remove sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not
affixed to the Property in a manner and a.. a place reasonably convenien! to Grantor and Lender and make it available to Lender witbin three
(3) days after receipt of written demand f~dm Lender to the extent permitted by applicable law.
Addresses. The mailing addresses of Gr.~ntor (debtor) and Lender (secured Party) from which information concerning the security interest
granted by tl~is Mortgage may be obta ned (each as renu red by tbe Un{lotto Commercial (~ode) are as stated po 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 from time to time, upon request pi Lender, Grantor wiil make, execute and deliver, or will cause to
be made, executed or delivered, to Len~ e.r or to Lender"s designee, and when requested by Lender, cause to be filed, recorded, reT{led, or
rerecorded, as the case rnay be, at such i':mes and in such offices and places as Lender may deem appropriate, any and all such mortgages,
deeds of trust, security deeds, security.: agreements, financing statements, continuation statements, instruments of furtber assurance,
certificates, and other documents as m~.,/, in tile sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect,
continue, or preserve (1) Borrower's ~,d Graotor's obligations under tile Note, this Mortgage, and the Related Documents, and (2) tile
liens and security interests created by t ~is Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by
Grantor. Unless prohibited by law or L.:qder agrees to the contrary in writing, Grantor shall4eimburse Lender for all costs and expenses
incurred in connection with the matters .6:ferred to in this paragraph.
Attorney-in-Fact. If Grantor fails to do -.~;~y of the things referred to in the preceding paragraph, Lender may do so for and in the name of
Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as G~antor's attorney-in-fact for the
purpose of making, executing, deliverin:l' 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. Il Borrower pays all t!t'~ Indebtedness when due, sod otherwise performs all the obligations imposed upon Grantor under
this Mortgage, Lender sbalJ execute and delia,er to Gra~tor a suitable satisfaction of this Mortgage and suitable statements of termination of any
financing statement on file evidencing Lenc:~r's security interest in the Rents and the Personal Property. Gramor will pay, if )e~rnitted by
applicable law, any reasonable termination fee,as determined by Lender from time to time.
EVENTS OF DEFAULT. Each of the followin~:,:!at Lender's option, shall(post{lute an Event of Default under this Mortgage: Payment Default. Borrowe~ fails to mak¢J'any payment when due under the Indebtedness.
Default on Other Payments. Failure of !3rantor within the time required by this Mortgage to make· any payment lot {axes or a~surance, or
any other payment necessary to prevent iilin9 of or to effect discharge of any lien.
Other Defaults. Borrower or Grantor fa~ls to comply with or to perform any other term, obligation, covenant or condition contained in this
Mortgage or in any of tile Related Docum'ents or to comply with or to pertorm any term, obligation, covenant or condition contained in any
other agreement between Lender and 8(:,rower or Grantor.
Default in Favor of Third Parties. SboukJBorrower or any Grantor default under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agree/.eot, in favor of any other creditor or person that may materially, affect any of Borrower's or any
Grantor's property or Borrower's ability [b repay the Indebtedness or Bouower's or Grantor's ability to perform tbei~ respective obligations
under this Mortgage or any related docu
False Statements. Any warranty, repr~ sentation or statement made or furnished to Lender by Borrower or Grantor or on Borrower's or
Grantor's behalf under this Mortgage o' !the Related Documents is false or misleading in any material respect, either now or at the time
made or furnished or becomes false or r'i~leading at any time thereafter.
Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full force and effect {including failure of any
collateral document to create a valid an(:'i)erfected security interest or lien) at any time and for any reason.
Death er Insolvency. Tbe dissolution or termination of Borrower's or Grantor's existence as a going business, the insolvency of Borrower or
ii:~ ~ ~:~i: ......... "'""
Loan No: 25414241
..... , ~ ;%)
· ' (Continued)
Page 4
Grantor, the appointment of a receiver for any part of Borrower's or Grantor's property, any assigoment lot tile benelit el creditors, any
type of creditor workout, or the comrr~eqcernen~ of any proceeding under any bankruptcy or insolvency laws by or against Borrower or
Grantor. '"
Creditor or Forfeiture Proceedings. C,tJrnmencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self.help,
repossession or any otl~er method, by ~tq'i, creditor of Borrower or Grantor or by any governmental agency against any property securing the
Indebtedness. This includes a garnishmei'lt el any of Borrower's or Grantor's accounts, including deposit accounts, with Leander. However,
this Event el~ Default shall riot apply if there is a good faith dispute by Burrower or Grantor as to the validity or reasonableness of the claim
which is the basis of the creditor or for.eiture proceeding and if Borrower or Grantor gives Lender written notice of the creditor or forfeiture
proceeding and deposits with Lender n;,)r:des or a surety bond for the creditor or lorfeiture proceeding, in an amount determined by Lender,
in its sole discretion, as being ara adequz~te reserve or bond for the dispute.
Breach of Other Agreement. Any breachi~)y Borrower or Grantor under tile terms of any other agreement between Borrower or Grantor and
Lender that is not remedied within mW grace period provided therein, incluciing without limitation any agreement corrcernirrg any
indebtedness or other .obi 9ation of Borrower or Grantor to Lender, whether existing now or later.
Events Affecting Guarantor. Any of the ~receding events occurs with respect to any guarantor, endorser, surety, or accommodation party
of any of the Indebtedness or any gL~antor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, :any Guaranty el the Indebtedness.
Adverse Change. A material adverse il. hange occurs in Grantor's financial condition, or Lender believes the prospect of i)ayment or
performance of the Indebtedness is impaii'ed.
Insecurity. Lender in good faith believe .tselfinsecure.
RIGHTS AND REMEDIES ON DEFAULT. Upt:Pthe occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may
exercise any one or more el the following ri~,: h'..s and remedies, in addition to any other rights or remedies provided by law:
Accelerate Indebtedness, Lender shall hiive the right at its Option without notice to Grantor to declare the entire Indebtedness immediately
due and payable, including any prepayn-.e!~t penalty which Grantor would be required to pay.
UCC Remedies. With respect to all or a,.W 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 ri!:!.ht without notice 'to Borrower or Granlor, to take possession of the Property, including during the
pendency of foreclosure, whether judic..a! or non-judicial, and collect the Rents, including amounts past duo and or'paid, and apply the net
proceeds, over and above Lender's co.:t~, against the Indebtedness. In furtherance el this right, Lender may require any tenant or other
userof the Property to make payments of rent or use fees directly to Lender. I1 the Rents are collected by Lender, then Grantor iirevocably
designates Lender as Grantor's attorne',~in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate
the same and collect the proceeds, i~alyments by tenants or other users to Lender in response to Lender's demand shall Satisfy the
obligations for which the payments arc made. whether or riot any proper grounds for the demand existed. Lender may exercise its rights
under this subparagraph either in person, by agent, or through a receiver.
Appoint Receiver. Lender shall have tie right to have a receiver appointed to take possession of all or any part of the Property, with the
power to protect and preserve the Pr.)F!erty, to operate the Property preceding foreclosure or sale, and to collect the Rents from the
Property and apply the proceeds, over ~nd above the cost of the receivership, against the Indebtedness. ]-he receiver may serve without
bond if permitted by law. Lender's rk2ht to the appointment of a receiver shall exist whether or not the apparent value of the Property
exceeds the Indebtedness by a substan'.i~Jlamount. Employment by Lender shall not disqualify a person from serving as a receiver.
Judicial Foreclosure. Lender may obtain'. ~ judicial decree foreclosing Grantor's interest in all or any part of the Property.
Nonjodicial 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" foreoIosure as provided by statute.
Deficiency Judgment. If permitted by ~ppticable law, Lender may obtain a judgment for any defi'~aiency remaining in the Indebtedness due
to Lender after application of all amounts ~ecoived from the exercise of the rights provided in this section.
Tenancy at Sufferance. If Grantor rem:~ir;is in possession of tile Property after the Property is sold as provided above or Lender otherwise
becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance o'1 Lender or the
purchaser of the Property and shall, at Lender's opdon, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the
Property immediately upon tire demand of Lender.
Other Remedies. Lender shall have allc.d:J~er rights and remedies provided in this Mortgage or the Noteor available at law or in equity.
Sale of the Property. To the extent perm':tied by applicable law, Borrower and Grantor hereby waives any and alt right to have the Property
marsballed. In exercising its rights eno remedies, Lender shall be free to sell all or any part of tl~e Property together or separately, in one
sale or by Separate sales· Lender shall :)~ entitled to bid at any public sale on all or any portion of the Property.
Notice of Sale. Lender shall give Gra~tor' reasonable 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 i?~tlmded disposition of the Personal Property is to be made. Reasonable notice shall mean notice
given at least ten (10) clays before the '.ir,ie of the sale or disposition. Any sale et the Personal Property rnay be made in conjunction with
any sale of the Real Property.
Election of Remedies. Election by Lender to pursue any remedy st/all not exclude pursuit o! any other remedy, and an election to make
expenditures or to take action to perfo,'n) an obligation of Grantor under tiffs Mortgage, after Grantor's failure to perform, shall not aflect
Lender's right to declare a default and*.:xercise its remedies. Nothino under this Mortgage or otherwise shall be construed so as to limit or
restrict the rights and remedies availab!?, ito Lender following an Event of Default, or in any way to limit or restrict the rights arid ability
Lender to proceed directly against Oraqtor and/or Borrower and/or against any other co-maker, guarantor, surety or endorser and/or ~o
proceed against any other collateral dire.:tJy or indirectly securing tire Indebtedness.
Attorneys' Fees; Expenses. If Lender institutes any suit or action to enlorce any of the terms el this Mortgage, Lender shall be entitled to
recover sucb sum as die court may adj,,(fge reasonable as attorneys' lees at trial and upon any appeal. Whether or not any coati action is
involved, and to the extent not prohibit, d by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time
for the protection of its interest or the :~:p;orcement of its rights shall beconle a part of the Indebtedness payable on demand and shall bear
interest at the Note rate from the daf( ::'ff the expenditure ontil repaid. Expenses covered by this paragraph include, without limitation,
however subject to any limits under al)~ li.':able law, Lender's attorneys' fees arid Lender's legal expenses whether or not there is a lawsuit,
including attorneys' fees and expenses ~or bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgnrent collection services, the cost of searching records, obtaining title reports (including foreclosure
reports), surveyors' reports, arid apprai;~l fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any
court costs, in addition to all other sum.' ~rovided bylaw.
NOTICES. Any notice required to be given Ln(ier this Mortgage, including whbout limitation any notice of default and any notice of sale shall be
given in writing, and shall be effective when a6tually delivered, when actually received by telefacsimile (unless otherwise required by law), when
deposited with a nationally recognized ove~4i.ght courier, or, if mailed, when del)osiled in the United States mail, as first class, certified or
registered mail postage prepaid, directed to d~ addresses sl~own near the beginning of this Mortgage. All copies of notices of foreclosure
the holder of any lien wbich has priority ow:r. ~.'this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage.
Any party may change its address for herb;es under ti'tis Mortgage by giving formal Written notice [o the other parties, specifying that the
purpose o~ the notice is to change the patti's; address. For notice purposes, Grantor agrees to keel} Lender informed at all times of Grantor's
current address. Unless otherwise 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 all Grantors.
MISCELLANEOUS PROVISIONS. The.lollowiq~ miscellaneous provisons are a part of this Mortgage:
Amendments. This Mortgage, togetho~ with any Related Documents, constitutes the entire understanding and agreement of theparties as
to the matters set forth in this Mortgaf,e! No alteration of o' ametdment to this Mortgage shall tie effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alter~dion or amendment.
Annual Reports. If the Property is used', for purposes other than Grantor's residence, Grantor ~'hall furnish to Lender, upon request, a
certified statement of net operating income received from tbe Property during Grantor's previous fiscal year in such form and detail as
Lender shall require. "Net operating inr:o~ne" shall mean all cash receipts f~om the Property less all cash expendittaes made in connection
Loan No: 25414241
MORTGAGE
(Continued)
Page 5
with the operation of the Property~r~[;:i!his
Caption Headiqgs. Caption headings i Mortgage are for convenience purposes only and are not to be used to interpret or define the
provisions of this Mortgage.
Governing Law. This Mortgage will be !:~qverned by, construed and enforced in accordance with federal law and tile laws of tile sta'te of
Idaho, except and only to the extent o.. procedural matters related to the perfection and enforcement of Lender's rights and remedies
againsl~the Property, which matters shal'l be governed by the laws of the Slate of Wyoming. However, in the event that the enforceability
or validity of any provision of tilis Mortg~.ge is challenged or questioned, such provision shall be governed by whichever applicable state or
federal law would uphold or would enfo'ice such challenged or questioned provision. The loan transaction which is evidenced by the Note
and this Mortgage has been applied for, considered, approved and made, and all necessary loan documents have been accepted by Lender
in the State of Idaho. ?"
Choice of Venue. If there is a lawsuit Grantor agrees open Lender's request to submit to the jurisdiction of the courts of Bonneville
County, State of Idaho. '
Joint and Several Liability. All obligatic~\s of Borrower and Grantor under this Mortgag~ shall be joint and several, and all references to
Grantor shall mean each and every Graritor, and all references to Borrower shall mean each and every Borrower. This meaqs that each
Borrower and Grantor signing below i~' responsible for all obligations in this Mortgage. Where any one or more of the parties is a
corporation, partnership, limited liability-company or similar entity, it is no[ necessary for Lender to inquire into tile powers ot any of the
officers, directors, partners, members,'_~r, other agents acting or purporting to act on the enti'ty's behalf, arid any obligations made or
created in reliance upon the professed ex~rcise of such powers shall be guaranteed under this Mortgage.
No Waiver by Lender. Lender shall not lie deemed to have waived any rights under this Mortgage unless such waiver is given in writing
arid signed by Lencer No delay or omi~;!sion on [he pa~t of Lender in exercising any right shall opemate as a waiver of such right or any
other right. A waiver by Lender of a i)r~,~vision gl this Mortgage shall not prejudice or constitute a waiver of Lender's right otherwise to
demand strict compliance with that prov;~ion or any other provision of this Mortgage. No prior waiver by Lender. nor any course of dealing
between Lender and Grantor, shall cor~i;,titute a waiver of any of Lender's rights or of any gl Grunter's obligations as to any future
transactions. Whenever tile consent o{ iLender is required under this Mort0age, the granting of such consent by Lender in any instance
shall not constitute continuing consent to subsequent instances where soch consent is required and in all cases such consent may be
granted or withheld in the sole discretion 'of Lender.
Severahility. If a court of competent j,i~isdiction finds any provision of [his Mortgage to be illegal, invalid, or unenforceable as to any
circumstance, that finding sl~all not mak.~the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible,
the offending provision shall be consider,~,d modified sotbatit becomes legal, valid and enforceable. If the offending provision cannot be so
modified, it shall be considered deleted.;~om this Mortgage. Unless otherwise required by law, the illegality, invalidity, or une0forceability
of any. provision of this Mortgage shall n~t affect the legality, validity or enforceability et any other provision gl this Mortgage.
Merger, There shall be no merger of the ;nterest or estate created by this Mortgage with any other interest or estate in the Property at any
time held by or for the beneht of Lender ,9 any capacity, without the written consent of Lender.
Successors and Assigns. Subject to an;~iimitations stated intl~is Mortgage on transfer of Grunter's interest, this Mortgage shall be binding
upon and inure to the benefit of the par'd~s, their successors and assigns. If ownership of the Property becomes vested in a person erbar
than Grantor, Lender, without notice to -2~rantor, may deal with G.,'antor's successors with reference to this Mortgage and the Indebtedness
by way of forbearance or extension wJth.~ut releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness.
Time is of the Essence. Time is of the e ?sence in the performance of this Mortgage.
Waiver of Homestead Exemption. Granto.~ hereby releases and waives all rights and benefits of the homestead exemption laws of the State
of Wyoming as to all Indebtedness secu~,~id by this Mortgage.
DEFINITIONS· The fo owng captalzed words and terms shall have the following rneanings when used in this Mortgage. Unless specifically
stated to the contrary, all references to della~':a~)~ounts,sha mean amounts i~lawful money gl the United States of Amurica. Words a~d terms
used in the singular Shall include the i)lural, a,'~tthe plural shall include the singulam, as the context may require. Words and terms not otherwise
defined in this Mortgage shall have the meani, igs attributed to such terms in the Uniform Commercial Code:
Borrower. Tile word "Borrower" mean.,,~SALT RIVER HOMES, LLC; ROSEWOOD BUILDERS, INC.; LAURENCE B. REINHART; and JOSEPH
F.. BELLOFF and includes all co-signers a~?d co-makers signing the Note.
Default. Tile word "Default" means the DefaUlt set forth in tbis Mortgage in the section titled "Default".
Environmental Laws. The words "Envi i'~nmental Laws" mean any and all state, federal and local statutes, regulations and ordinances
relating to the protection of human he~d.tb or:the environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 4.2 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and
Reauthorization Act of 1986, Pub. L. Nc'99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.,
the Resource Conservation and Recovery 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 gl. 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 SA¢_'~T RIVER HOMES, LLC.
Guaranty. 'The word "Guaranty" mea~'~ tile[guaranty from guarantor, endorser, surety, or accommodation party to Lender, including
without limitation a guaranty of all or pa!!! of the Note.
Hazardous Substaqces. The words "Hazardous Substances" mean ma[erials that, because of their quantity, concentration or physical,
chemical or infectious characteristics, ~ay cause or pose a present or potential hazard to human health or the environment when
improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous
Substances" are used in their very Dreariest sense and include without limitation aoy aod all hazardous or toxic substances, materials or
waste as defined by or listed under the E~i, vironmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleL,m
and petroleum by-products or any fractiq~ thereof and asbestos.
Improvements,' The word "lmprovemen}.~;" means all existing and future improvements, buildings, structures, mobile homes affixed on the
Real Property, facilities, additions, repla~(!ments al~d other construction on the Real Property.
Indebtedness. The word "lndebtedness"~means all principal, interest, and otl~er amounts, costs and expenses payable onder the Note or
Related Documents, together with all r~newals of, extensions of, modilications of, coosolidations of and substitutions for [he Note or
Related Documents and any amounts exi?,oded or advanced by Lender to discharge Grunter's obligations or expenses incurred by Lender to
enforce Grunter's obligations under thi'.': ,Mortgage, together with interest on such amounts as provided in this Mortgage. Specifically,
without limitation, Indebtedness include;~ all amounts that may be indirectly secured by the Cross~Collateralization provision of Ibis
Mortgage.
Lender. The word "Lender" means BAN!i~, OF IDAHO, its successors and assigns.
Mortgage. The word "Mortgage" mean,~ :'fbi's Mortgage between Grantor aod Lender.
Note. The word "Note" means the prorrli'issory note dated June 21, 2004, ill the original principal amount of $159,828.00 from
Borrower to Lender, together with all reF~wals of, extensions of, modifications of, reflnancings of, consolidations of, and substitutions for
the promissory note or agreement. ~e maturity date of this Mortgage is February 15, 2005. NOTICE TO GRANTOR: THE NOTE
CONTAINS A VARIABLE INTEREST
Personal Property. The words "Person~:l Property" mean all equipment, fixtures, and other articles of personal property now or hereafter
owned by Grantor, and now or hereafte',.attached or affixed to the Real Property; together with all accessions, parts, and additions to, all
replacements of, and all substitutions f'~i, 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 c,~llectively the Real Property and tile Personal Property.
Real Property. The words "RealPropert',," mean the real property, interests and rights, as further described in this Mortgage.
Related Documents. The words "Rela~ed Documents" mean all promissory notes, credit agreements, loan agreements, environmental
Loan No: 25414241 ~lL-4Jgf0L~:'3l MORTGAGE
(Continued)
agreements, guaranties, security agreements, mortgages, deeds of trusl:, security (leeds, c011a[eral mortgages, and all cfi'let inslruments,
agreements and documenls, whether now or hereafter existing, executed in connection wid~ the Indebtedness.
Rents. The word "Rents" means all prL,.£ent and future rents, revenues, income, issues, royalties, )rofits, and other benefits derived from
the Property.
HAVING R AD ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS.
H~MES, L? ~J ~ - HOMES, LLC //
U
U TEd,UAB L T COMPANY
COUNTY ~
On this ~l ~
day of -~ , 20 0 ~ , before me, the undersigned Notary Public, personally
appeared LAURENCE B. REINHART, Member; JOSEPH F. BELLOF~./Member ct SALT RIVER HOMES. LLC. and known ~o me [o be members or
designated agents ct the limited liability comp'any tt~a[ ex~&~lJ~ ~$~ge and acknowledged II~e Mortgage to be the lree and voluntary
and deed of the limited liability company, by aud~orit~J' statute, it~s of organizi!tion or its operating agreemen[, for the uses and
purposes therein mentioqed, and on oath stal,;d [hat ~ar¢.adJJ¢6? zef~'~:~¢cute th s Mortgage and in fact executed lie MorJgage on be
of tl~e limited liability company. '. ~'~ ""~ O '"' ~'~