HomeMy WebLinkAbout874669 WHEN RECORDED MAIL
U.S. Bank Nalional'Assoclallon
Portland, OR
SPACE ABOVE THIS LINE iS FOR RECORDER'S USE ONLY
II, bank. :
THiS MORTG~'GE iS DATED JULY 1§, 2001, between HANSEN OiL COMPANY, whose address is 411 EAST 2ND
SOUTH, SODA SPRINGS, ID §3276 (referred to below as "Grantor"); and U.S. Bank National Association, whose
address is I South State, P.O. Box 352, Preston, ID 83263 (referred to below as "Lender").
GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all of Grunter's right, title, and interest in and to
the following described real property, together with afl existing or subsequently erected or affixed buildings, improvemenls and fixtures; all easemems,
rights of way, and appurtenances; all water, water rights, watercourses and ditch rights (including stock in ulJlttJes with ditch or irrigation rights); and alt
other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, located
in LINCOLN County, State of WYoming (the "Real Property"):
· That part; of the SW~SW~{ of Seution 19, T32N R.118W of the. 6th
Lincoln County, Wyoming, being part of those tracts of records in the
Office of the Clerk of Lincoln County in Book 23aPR on page ~4S and in
Book 295p~ o~ page 622, as follows:
Beginning at the.northWest corn@r of said SW~$WW; found as described in
the Corner Record filed in said 0ff~ee;
thence S 00o12.0, E, 208.00 feet,' along th~ West ]./ne of said
SWWSW~, to 3/8" x 12',, s~eel ~pike/
thence S 88°53.5, E, 50.51 feet, parallel with the north line of
said SW{~SW~, to a point on the east right of way line of said
thence continuing S 88053.5, E, 157.49 feet to a point;
thence N 00~12.0, W, 208.00 feet, parallel wi. th said wast l'ine, to
a point on the north line of said SW~SW~;
thence N 8S~53.5, W, 157.49 feet, along said north line, to a point
on said east right of way line;
thence continuing N 88~53.5, W, 50.51 feet to the corner of
beginning.
The Real Property or its address is commonly known as 397 N. WASHINGTON STREET, AFTON, WY 83110.
Grantgr presently assigns to Lender all of Grantor's right, title, and interest h~ and to alt leases of the Property and all Rents from the Property. In
addilion, Granlor grants to Lender a Uniform Commercial Code security Interest in the Personal Property and Rents.
DEFINITIONS. The following words shall have the following meanings when used in this Mortgage. Terms not otherwise defined in this Modgage shall
have the meanings attributed to such terms in the Uniform Commercial Coda. Ail references to dollar amounts shall mean amounts in lawful money of
the United States of America.
Grantor. The word "Grantor" means HANSEN OIL COMPANY. The Grantor is the mortgagor under this Mortgage.
Guarantor, The word "Guarantor" means and includes without lh'nitation each and ail of the guarantors, sureties, end accommedalion parties In
connection w, ith the Indebtedness.
Improvements. The word "Improvements" means and inciudes without limitation ali existing and future improvements, buildings, structures,
mobile homes affixed on the Real Property, faciiifies, additions, replacements and ottier construction on the Real Property.
Indebtedness. The word "indebtedness" means all princ!pai and interest payable under the Note and any amounts expended or advanced by
Lender to discharge obligations of Grantor or expenses incurred by Lender to enforce obligations of Grantor under this Mortgage, together with
interest on such amopnts as'provided in this Mortgage.
Lender, The word "Len'der" means U.S. Bank National Associalion, its successors and assigns, The Lender is the mortgagee under this
Mortgage.
Mortgage, The word "Mortgage" means this Mortgage between Grantor and Lender, and Inciudes without limitation all assignments and security
interest provisions relating to the Personal Property arid Rents.
Note. The word "Note" means the promissory note or credit agreement dated July 16, 200i, in the original principal amount of
$99,598.00 from Grantor to Lender, togethe~ with all renewals of, exte,'~sior~s of, modifications of, refinancings of, consolidations of, and
substitutions for the promissory note or agreement. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE.
Perscm'al Property. The words "Personal Property" mean ail equipment, fixtures, and other articles of personal property now or hereafter owned
by Grantor, and now or hereafter attached or affixed to the Real Property; together with ail accessions, parts, and additions to, all replacements
and all SLlbstltutiens for, any of such property; and together with all proceeds (including without Iimitalion all Insurance ~roceeds and refunds of
Properly. The word "Property" means collectively lhe Real Property and the Personal Property.
Real Property. The words "Real Properly" mean tile properly, Jnlerests and rights described above in the "Grant of Merlgage" section.
Relaled Documents. The words "Related Documents" mean and include without limitation al!. promissory noles, credit agreemenls, loan
agreements, environmental agreements, guaranlies, security agreements, mortgages, d~eds of trust, and ali other instruments, agreements and
documents, Whether now or hereafter existing, executed in connection wilh the Indebtedness.
Rents, The word "Rents" means all present and future rents,,revenues, income, issues, royallles, profits, and other benefits derived from the
Property.
THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS
GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS
MORTGAGE AND THE RELATED DOCUMENTS, THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:
PAYMENT AND PERFORMANCE, Except as otherwise provided in this Morlgage, Grantor shall pay to Lender all amounts secured by this Morigage
as they become due, and shall strictly perform all of Grantor's obligations under this Mortgage.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees thai Grantor's possession and use of the Properly shall be governed by tile
following provisions:
Possession and Use. Until in default, Grantor may remain in possess on and control of and operate and nnanage the Properly and coliecl the
Rents from the Property.
Duly to Maintain. Grantor shall maintain the Property In tenantable condition and promptly perform all repairs, replacements, and maintenance
necessary to preserve its value.
Hazardous Subslances, The terms "hazardous waste," "hazardous substance," "disposal," "release," and "ff~realened release," as used in this
Mortgage, shall have the same meanings as set forth in the Comprehensive Environmental Response, Compensation, and Liability Act of ~980, as
a~ended, 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 Recovery Act, 42 U.S.C.
Section 690~, et seq., or other applicable state or Fede~:a laws, rules, or regulalions adopted pursuant 1o any of the foregoing. The terms
"hazardous waste" and "hazardous substance" shall also include, without limitation, petroleum and petroleum by-products or any fraction thereof
and asbestos. Grantor represenls and warrants to Lender that; (a) During the period of Grantor's ownership of the Properly, there h~s been no
use, generation, manufacture, storage, lreatment, disposal, release or threatened release of anY hazardous waste or substance by any person on,
under, about or from the Property; (b) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to
and acknowledged by Lender in writing, (i) any use, generation, manufacture, storage, trealment, disposal, release, or threatened release of any
hazardous waste or substance on, under, about or from the Properly by any prior owners or occupants of the Properly or (il) any actual or
Ihreatened litigation or claims of any kind by any person rotating 1o such matters; and (c) Except as previously disclosed to and acknowledged by
Lender in writing, (i) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufaclure,
store, treat, dispose of, or release any hazardous waste or substance on, under, about or from the Property and (ii) any such activity shall be
conducted in compliance with all applicable federal, slate, and local laws, regulations and ordinances, including without limilation those laws,
regulations, and ordinances described above. Grantor authorizes Lender and its agents' to enter upon the Property to make such inspections and
tests, at Grantor's expense, as Lender may deem appropriate lo determine compliance of the Property with this section of the Mortgage. Any
Inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the
part of Lender to Grantor or lo any other person. The representations ~nd warranties contained herein are based on Granlor's due diligence in
investigating the Property for hazardous waste and hazardous substances. Grantor hereby (a) releases and waives any future claims against
Lender for indemnity or contribution in the event Grantor becomes
inde'mnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may direclly or
indirectly suslaln or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture,
storage, disposal, release or threatened release of a hazardous Waste or substance on the properties. The provisions of this section of the
Mortgage, including the obligation to indemnify, shall survive the payment of the Indebtedness and the salisfaclion and reconveyance ef the lien of
this Mortgage and shall not be affected by Lender's acquisilion of any h;terest in the Property, whether by foreclosure or olherwlse.
Nuisance, Waste. Gra'ntor 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. Wilhout.limiting the generality cf the foregoing, Grantor will not remove, or grant to any other party lhe
right to remove, any timber, minerals (including oil and 9as), soil, gravel or rock products withoul the prior wdtlen consent of Lender.
Removal of Improvements, Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent of
Lender. As a condition to the removal of any lmprovemenls, 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 its agents and representatives may enter upon /he Real Property at ali reasonable limes to attend to
Lender's interests and to inspect the Property for purposes of Grantor's compliance with the terms and condilions of this Mortgage.
Compliance wilh Governmental Requirements. 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, including' without limitation, lhe Americans With
Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding,
including appropriaie appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion,
Lender's inlerests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably
satisfactory to Lender, to protect Lender's interest.
Duty to Protect, Grantor agrees neither to abandon nor leave unattended the Property. Grantor shall do all other acts, in addition to those acts
set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property.
DUE ON SALE - CONSENT BY LENDER, Lender may, at its option, declare immedlalely due and payable all sums secured by this Mortgage upon the
sale or transfer, without the Lender'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 conveyance of Real Property or any right, title or interest therein; whether legal, beneficial or equitable; whether voluntary er
involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three
(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 Property, or
by any other method of conveyance of Real Property interest. If any Grantor is a corporation, partnership or limited liability company, transfer also
includes any change in ownership of more than twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests,
as the case may be, of Grantor. However, It-tis option shall not be exercised by Lender if such exercise is prohibited by federal law or by Wyoming law.
TAXES AND LIENS, The following provisions relating to the taxes and liens on the Property are a part of this Mortgage.
'Payment. Grantor shall pay when due (and in a',l events prior to delinquency) ail taxes, payroll taxes, special taxes, assessrnents, water charges
and sewer service charges levied against or on account cf the Property, and shall pay when due at( claims for work done on or for services
rendered or material furnished lo the Property. Grantor shaft maintain the Property free of all liens having priority over or equal to the interest of
Lender under this Mortgage, e. xcept for the lien of taxes and assessments not due, and except as otherwise provided in the following paragraph.
Rlghl To Conlesl. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation fo
pay, so long,as Lenders interest 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 (15) days after Grantor has notice of the filing, secure lhe discharge of the lien, or if
requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufiicient
to discharge the lien plus any costs and reasonable attorneys' fees or other charges that could accrue as e result of a foreclosure or sale under the
lien. In any contest, Grantor shall defend itself and Lender and shall satisfy ~tny adverse judgment before enforcement against the Property.
Grantor shall name Lender as an additional oblfgee under any surety bond furnished in the contest proceedings.
Evidence of Payment, Grantor shall upon demand furnish to Lender saiislactory evidence of payment of the taxes or assessments and shall
authorize the appropriate governmental official to deliver lo Lender at any time a written statemenl of the taxes and assessments against the
Property.
Notice of Construction. Grar~tor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, er any
materia!s are supplied to the Property, if any mechanic's lien, materiaimen's lien, or ether lien could be asserted on account of the work, services,
or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender lhat Grantor can and will pay the
cost of such improvements.
PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage.
Maintenance of Insurance. Grantor shall procure end main!ain policies of fire insurance with standard extended coverage endorsements on a
replacement basis for the fuil insurable value covering ali improvements on the Real Property in an amount sufficient to avoid application of any
coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure add maintain o0mprehens ve general
07L~§-2001
'" "' ~': '~' ' ~'"' ~ ~ ~:;'~ (Co'ntinued) ~ ~ 0 Page 3
liability insurance in such coverage amounls as Lender may request with Lender being named as additional insureds in Sucb liability insurance
policies. Additional~y, Grantor st]all maintain such other insurance, including but not limited to hazard, business interruption and boiler insurance
as Lender m~y require. Policies shall be written by such insurance companies and In such form as may be reasonably acceptable to Lender.
Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage wil~ not be cancelled or diminished
without a minimum 0f Ion (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure lo give such
notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender wf[l nat be impaired tn any w~y by
act, omission or default of Grantor or any other person. Should the Re~J Property ~( any time become located in an area designaled by the
Director of the Federal Emergency Management Agency as a 'special flood hazard area, Grantor agrees lo obtain and maintain Federal Flood
Insurance for Iha full unpaid principal balance of lhe loan and a~y 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 malnlain such i~surance for the term of the loan,
Appllcallon of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property if the estim'ated cost of repair or
replacement exceeds 8500.00. Lender may make proof of less if Grantor falls to do so within fifteen (15) days of the casualty. Whether or not
Lender's security is impaired, Lender may, at its elecllon, apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting
the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or
replace the damaged or destroyed Improvements in a manner satisfactory Io Lender. Lender shali, upon satisfactory proof of such expendilure,
. pay or reimburse Grantor from the proceeds for the reasonable c0~t of repair or restoration i¢ Grantor is not in default under this Mortgage. Any
'proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to Ihe repair or restoration of
Property shall be used first to pay any amount owing to Lender unde~ this Mortgage, then to pay accrued interest, and the remainder, if any, shail
be applied to lhe principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of lhe Indebtedness, such proceeds
shall be paid to Grantor,
Unexpired Insurance at Sale, Any unexpired insurance shall inure ~o the benefit of, and pass to, the purchaser of the Property covered by this
Mortgage at any trustee's sale or other sale held under the provis ons of lhis Mortgage, ~r at any foreclosure sale of such Property.
Granlor's Report on Insurance. Upon request of Lender, however not more lhan once a year, Grantor sha~J furnish to Lender a report on each
existing policy of insurance showing: (a) the name of lhe insurer; (bi the risks insured; (c) the amount of the policy; (d) the property insured, the
then current replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy. Grantor
shall, upon request of Lender, have an Independent appraiser satisfactory to Lender determine the cash va~ue replacement cost of the Property.
EXPENDITURES BY LENDER. If Grantor falls to comply with any provision of lhis Mortgage, or if any action or proceeding is commenced lhat would
materially affect Lender's interests in the Property, Lender on Grantor's behalf may, but shall not be required to, take any acllon that Lender deems
appropriate. Any amounl that Lender expends in so doing will bear interest at the rate provided for in the Note from-the date incurred or paid
Lender to the date of repayment by Gr~ntor. All such expenses, at Lender's option, witl (~) be payable on demand, (bi be added to the balance of the
Note and be apportioned among and be payable with any Installment payments to become due during either (i) Ihe term of any applicable insurance
policy or (~i) the remaining term of the Note, or (c) be treated as a balloon paymenl which will be due and payable at the Nero's maturity. This
Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shaJ~ be in addition to any other rights or any remedies
t° which Lender may be entitled on account of the 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 woo d have had.
WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage.
Tille. Gr~nlor warrants that: (a) Grantor holds good and marketable tit~e of record to the Property in fee simple, free and clear of all liens and
encumbrances other than those set forlh in the Real Property description or in any title insurance policy, title report, or final title opinion Issued
favor of, and accepted by, Lender in connection with this Mortgage, ~nd (bi Grantor has the full right, power, and aulhority to execute and deliver
this Mortgage to Lender.
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 ail persons. In the event any action or proceeding Is commenced that questions Grantor's title or the interest of Lender under
Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shat~ be
entitled to participate in the proceeding and Io be represented in the proceeding by counsel of Lander's own choice, and Grantor will deliver, or
cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such padicip~tion.
Compliance With Laws, Grantor warrants that the Property and Grantor's use of the Property compiles with all existing applicable laws,
ordinances, and regulations of governmental authorities.
CONDEMNATION. The following provisions relating to condemnation of the Property are a p~rt of Ihis Mortgage.
Application of Nel Proceeds. If ail or any part of the Property is condemned by eminent domain proceedings or by any proceeding er purchase
In lieu of condemnation, Lender may at Its election require that all or any portion of the net proceeds ¢f the award be applied to the Indebtedness
or the repair or restoration of the Property. The net proceeds of the award shall mean the award after Payment of all reasonable costs, expenses,
and attorneys' fees incurred by Lender in connection with the condemnation.
Proceedings, If any proceeding in condemnation is filed, Grantor shall promptly notify Lender tn writing, and Grantor shall promptly take such
steps as may be necessary to defend the ~ction and obtain the award. Granter m~y 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 c~use to
be delivered to Lender such instruments as m~y be requested by it from time to time to permit such participation.
IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The follow ng provisions relating to governmental taxes, fees
and charges are a part of Ibis Morlgage: '
Current Taxes~ Fees and Charges, Upon request by Lender, Grantor shall execute such documenls in ~ddition to this Mortgage and t~ke
whalever other action Is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for ail
taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all
loxes, fees, documentary stamps, and olher charges for recording or registering Ibis Mortgage.
Taxes, The following shall constitute taxes to which this section applies: (a) a specific tax upon this type of Mortgage er upon all or any part of
the Indebtedness secured by this Mortgage; (bi a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the
indebtedness secured by this type o¢ Mortgage; ;(c) a t~x on this type of Mortgage chargeable against the Lender or the holder of the Note; and
(d) a specific tax on all or any port,on of the Indebtedness or on payments ef principal and interest made by Grantor.
Subsequent Taxes. If any tax to which this section applies is enacted subsequent lo the date of lhis Modgage, this event shall have the same
effect as an Event of Default (as defined below), and Lender may exercise any or all of its available remedies for an Event of Default as provided
below unless Gr~ntor either (a) p~ys the tax before it becomes delinquent, or (bi contests the tax as provided above in the Taxes and Liens
section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
SECURITY AGREEMENT; FINANCING STATEMENTS. The ~°Jlowing provisions relating to this Mortgage as a security agreement are a part of this
Mb~gage.
Security Agreemenl, This instrument shall constitute a security agreement to the extent any of the Property const~tutes fixtures or ether personal
property, and Lender shall have all of lhe rights o¢ a secured party under the U~iform Commercial Code ss amended from time 1o time.
Security Interest. Upon request by Lender, Grantor shail execute financing statements and take whatever other action is requested by Lender
perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property
records, LeEd&r may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this
Mortgage as a financing statement. Granto~ sha~l reimburse Lender for ail expenses incurred in perfecting or continuing this security interesl.
Upon default, Grcntor shall assemble the Personal Property in a manner and at a place reasonably convenient to Grantor and Lender and m~ke it
available to Lender within three (3) days after receipt of written demand from Lender.
Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party), from which information concerning the security interest
' granted by this Mortgage may be obtained (each as required by the Un.form 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 from t~me to time, upon request of Lender, Granter wi',i make, execute and de iver, or will cause to be
made, executed or delivered, to Lender or to Lender's designee, a~d when requested by Lender, cause to be filed, recorded, refiled,
rerec0rded, as the case may be, at such times and in such offices and p~ces as Lender may deem appropriate, any and.all such mortgages,
deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates,
and other documents as may, in lhe sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or
preserve (a) the obligations of Grantor under the Note, th~s Mortgage, and the Related Documents, and (bi the liens and security interests
created by this Mortgage ~s first'and prio~ ~iens on the Property, whether now owned or hereafter occurred by Gr~ntor. Unless ~rohJbiled by law
oragre~ ~ontrary by Lender in writing, Grantor shall reld ';~ ' ;:.~nder for ali costs and expe~ses ncurred nc ?:'~7~';':;wth he mai ers
0711'6-2001 MORTGAGE Page 4
(Continued) ',i1 2 ].
referred to in this paragraph.
Altorney-in-Fact. If Grantor fails to do any of the things referred to in ihe 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 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 ail the obligations imposed upon Grantor under this
Mortgage, Lender shall execute and deliver to Grantor a sl}itable satisfaction of this Mortgage and sui~abte statements of termination of any financing
statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, it permitted by applicable law, any
reasonable termination fee as determined by Lender from time to time.
DEFAULT, Each of the following, at lhe option of Lender, shall constitute an event of default ("Event of Default") under fi'lis Mortgage:' Default on Indebtedness. Failure of Grantor to make any payment when due on the Indebtedness.
Default on Other Payments, Failure of Grantor within the time requh'ed by this Mortgage to make any payrnent for taxes or insurance, or any
other payment necessary to prevent filing of or to effect discharge of a~:y lien.
Compliance Defaull. Failure of Grantor to comply with any other t~rm, obligation, covenanl or condition contained in this Mortgage, ihe Note or in
any of the Related Documents.
False Slalements. Any warranty, representation or statement triable or furnished to Lender by or on behatf of Grantor under this Morlgage, tile
Note or the Related Documents is false or misleading in any material respect, either now or at the time made er furnished.
Defective Collaterallzation. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral
documents to create a valid and perfected security interest or lien) al any time and for any reason.
Insolvency. The dissolution or termination of Grantar's existence as a going business, the insolvency of Granter, the appointment of a receiver for
any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding
under any bankruptcy or insolvency laws by or against Grantor.
Foreclosure, Forfeiture, otc. Commencement of foreclosure or fcrfeih~re proceedings, whether by iudicial proceeding, self-help, repossession or
any other melhod, by any creditor of Granlor ar by any governmental agency against any of the Property. However, this subsection shall not apply
in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis at the foreclosure or forefeiture
proceeding, provided that Gra,qtor gives Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to
Lender.
Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied
wilhin any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to
Lender, whether existing now er later.
Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guaranlor of any of the Indebtedness or any Guarantor dies
or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.
Adverse Change, A material adverse change occurs I~ Grantor's financial condition, or Lender believes the prospect of payment or performance
of the indebtedness Is Impaired. '
Insecurity. Lender in good faith deems itself Insecure.
RIGHTS AND REMEDIES ON DEFAULT, Upon the occurrence of any Event of Default and at any time thereafter but subject to any limitation in the
Note or any limitation In this Mortgage, Lender, at its option, may exercise any one or more of the followi~g rights and remedies, in addition to any other
rights or remedies provided by law: '
Accelerale Indebtedness. Lender shall have the right at its opiion without notice to Grantor to declare the entire Indebledness immediately due
and payable, including any prepayment penalty which Grantor would be required to pay.
UCC Remedies. With respecl to all or any part of the Personal Property` Lender shait have all the rights end remedies of a secured pady under
the Uniform Commercial Code.
Collect Rents. Lender shall have the right, 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 p~st due and unpaid, and apply the net proceeds, over and
. above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant <pr 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 Granlor's
at(orney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds.
Payments by tenants ~)r other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made,
whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph eilher in person, by agent, or
through a receiver.
Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of ail or any part of the Property, with the power to
protect and preserve the Property, to operate the Properly 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.
Deficiency Judgment if permitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to
Lender after applicatio'n of ail amounts received from lhe exercise of the rights provided in this section.
Tenancy at Sufferance. If Grantor remains in possession of lhe Property after the Property is sold as provided above or Lender otherwise
becomes entitled to possession of the Properly upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of
the Property and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Property, or (b) vacate the Property immediately
upon the demand of Lender.
Other Remedies, Lender shah have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity.
Sale of the Property. To the extenl permitted by applicable law, Grantor hereby waives any and all right to have the property marshalled. In
exercising ils rights and remedies, Lender shall be free to sell ~li or any part of the Property together or separately, in one sale or by separate
· sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property.
Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any pubiic sale of the Personal Property or cf the time after
which any private sate or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean notice given at least
ten (10) days before the time of the'sale or disposition.
Waiver; Election of Remedies. A waiver by any party of a breach of a provision cf this Merigage shall not constitute ,a waiver of or prejudice the
party's rights otherwise to.demand stdot compliance with that provision or any other provision. Election by Lender t~ pursue any remedy shall not
exclude pursuit of any other remedy, and an eiection to make expenditures or take action to perform an obligation of Granlor under lhis Mortgage
after failure of Grantor to perform shall not affect Lender's right to declare a default and exercise its remedies under this Mortgage.
Attorneys' Fees; Expenses. if Lender institutes any suit or action to enforce any of lhe terms of this Mortgage, Lender shall be eotitled to recover
such sum as the court may adjudge reasonable es reasonabie attorneys' fees at trial and on any appeal. Whether or not any court action is
involved, all reasonable expenses incurred by Lender that in Lender's opinion are necessary at any time for the protection of its interest or the
enforcement of its rights shali become a part of the indebtedness payable on demand and shail bear interest from the date of expenditure until
repaid al the rate provided for in the Note. Expenses covered by this paragraph'include, without limitation, however subject to any limits under
applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including reasonable ~ttorneys'
fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals a. nd any anticipated
post-judgment collection services, the cost of searching records, obtaining title reports (including forec!csure reports), surveyors' reports, and
appraisal fees, and title insurance, to the extent permitted by applicable iow. Grantor also wilt pay any court costs, in addition to ali other sums
provided by law.
NOTICES TO GRANTOR AND OTHER PARTIES. Any notice under this Mortgage, Inciudirlg without limitation any notice of default and any notice of
saie to Grantor, shell be in writing, may be sent by teiefacslmile (unless otherwise required by law), and shall be effeclive when actually delivered, or
when deposited with a nationally recognized overnight courier, or, if maited, sh~il be deemed effective when deposited in the United States mail first
class, certified or registered mail, postage prepaid, directed to tile addresses shown near tile beginning cf this Morlgage. Any party may change its
address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of tile notice is ~o change the
o?-:~622OOl ~ ..... ~ ....... ~' ~' ...... " MORTGAGE
,~ ,) Page 5
(Continued)
as shown near the beginning of this Mortgage. For notice purposes, G~antor agrees lc keep Lender informed at at! limes of Grantor's current address.
ACCESS LAWS. la) Grantor agrees that Grantor and the Property shall at all times sffictly comply with the requirements of the Americans with
Disabilities Act of 1990; the Fair Housing Amendments Act of 1988; and other federal, state, or Iocal laws or ordinances related to disabled access; or
any statute, rule, regulation, ordinance, order of governmeniaj bodies and regulatory agencies, or order or decree of any court adopted or enacted with
respect thereto, as now existing or hereafter amended or adopted (collectively, the "Access Laws"). At any time, Lender may require a certificate of
compliance with. the Access Laws and indemnification agreement
compliance with the Access Laws from an architect, engineer, or other third party acceptable to Lender.
(bi Notwithstanding any provisions set forth herein or in any other document, Grantor shall not alter or Permit any tenant or other person to alter the
Properly in any manner which would increase Grantor's responsibilities for compliance with the Access Laws without the prior written approval of
Lender. In connection with such approval, Lender may require a certificate of compliance with the Access Laws from an architect, engineer, or other
person acceptable Io Lender.
lc) Grantor agrees to give prompt wdllen notice to Lender of the receipt by Grantor of any claims of violation of any of the Access Laws and of the
commencement of any proceedings or Investigations which relate lo compliance with any of the Access LaWs.
(d) Grantor shall indemnify, defend, and hold harmless Lender from and against any and all claims, demands, damages, costs, expenses, losses,
liabilities, penalties, fines, and other proceedings including without limitation reasonable attorneys fees and expenses arising directly or indireclty fi'om or
out of or in any way connected with any failure of the Property to comply:with any of the Access Laws. The obligations and Iiabililies of Grantor under
this seclion shall survive any termination, satisfaction, assignment,' judicial or nonjudicial foreclosure proceeding, or delivery of a deed in lieu of
foreclosure.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage:
Amendments. This Mortgage, together With any Related Documents, constitutes the entire understanding and agreement of the padies as to fha
mailers set forth in this Mortgage. No alteration of or amendment to Ibis Mortgage shall be effective unless given in writing and signed by the
party or parties sought Io be charged or bound by the alteration or amendment.
Annual Reports, If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified
statement of net operating income received from the Property during-Grantor's previous fiscal year in such form and detail as Lender shall require.
"Net operating income" shall mean all cash receipts from the Property less all cash expenditures made In connection with the operation of lhe
Property.
Applicable Law, This Mortgage has been delivered to Lender and accepted by Lender in the State of Idaho. Except as set forlh
hereinafter, Ibis Morlgage shall be governed by, construed and enforced in accordance with lhe laws of lhe Slale of Idaho, except ~nd
only to the extenl of procedural matters related to lhe perfection and enforcement by Lender of Ils righls and remedies agalnsl the
Properly, which matters shall be governed by lhe laws of lhe 8t~le of Wyoming. However, In lhe event lhat the enforceabillly or validity
of any provision of Ibis Morlgage is challenged or questioned, such provision shall be governed by whichever applicable slate or federal
law would uphold or would enforce such challenged or queslioned provision, The loan transaction which Is evidenced by the Note and
Ibis Mortgage (which secures the Nolo) has been applied for, considered, approved and made in lhe State of Idaho. Lender and Grantor
hereby waive lke righl Io any jury trial in any aclion, proceeding, or counterclaim broughl by eilher Lender or 6ranlor agalnsl lhe olher
Caption Headings. Captfon headings in this Modgage are for c~nvenience purposes only and are not to be used to interpret or dedne the
provisions of this.Mortgage.
Merger. There shall be no merger of the Interest or estate created by this Mortgage with any other interest or eslale in the Property at any lime
held by or for the benefit of Lender in any capacity, without lhe written consent of Lender.
M~lli~le Parties; Corporate A~lhorll~. All obligations of Grantor under th~s Modgage shall be joint and several, and all references lo Grantor
shall mean each and every Grantor. This means that each of the persons signing below is responsible for ~11 obligations in this Morlgage.
Severablllly. If a court of competent jurisdiction finds any provision of this Mortgage to be invalid or unenforceable as to any person or
circumstance, such finding shall not render that provision invalid on unenforceable as to any other persons or circumslances. If feasible, any such
offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be
so modified, it shall be stricken and all olher provisions ef this Mortgage in all other respects shall remain valid and enforceable.
Successors and Assigns. Subject to fha limitations stated in thls Mortgage on transfer o¢ Grantor's inlerest, this Mortgage shall be binding upon
and inure to the benefit of the parties, lheir successors and assigns. If ownership of the Property becomes vested in a person other than Grantor,
Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of
[orbearance or extension without releasing Grantor from the obligations of this Mortgage or liabilityi under the Indebtedness.
Time Is of lhe Essence, Time is of the essence in the performance of this Mortgage. '
Waiver of Homeslead Exemption, Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of
Wyoming as to ail Indebtedness secured by Ibis Mortgage.
Waivers and Consents. Lender shall not be deemed to have waived any rlghls under this Mortgage (or under the Related Documents) unless
such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of
such right or any other right. A waiver by any party efa provision of this Mortgage sh~ll not constitute a waiver of or prejudice lhe party's right
otherw[se to demand strict compliance with thai provision or any other provision. No prior waiver by Lender, nor any course of dealing between
Lender and Grantor, shall constitute a waiver of any of Lender's rights or any of Grantor's obligations as to any future transaclions. Whenever
consent by Lender Is required In this Mortgage, the granting of such consent by Lender in any instance shall not constitute continuing consent to~
subsequent instances where such consent is required.
GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS.
GRANTOR:
HANSEN OIL COMPANY
Authorized
CORPORATE ACK N OWLED GME~,,......,.,.
O~ tbs ~ ~ day of ~ , 20~ [ , before me, the unde~lgned ~ ~'appeared
of ~S'EN' OIL COMPANY, an~ ~ ~~~(~'~'~..- ~ ~ ~ ~>'~
................ zee agent(s) or ~ne corporation that' ~x~out~ th~ M0rt~ acknowledged the
Mortgage to be the freeand voluntary act and deed cf the corporation, by authority of its Bylaws or by resolution of its board of directors, for the uses
] nd purp~h~rein mentioned and on ca h s~td~ that they are authorized to execute this Mort age and In fact exec
e corprrafion. ,~ ,
Notaw Pub c m and for the Stale of
' '
LASER PRO, Reg. U.S. Pat. & T.M. Off., Var. 3.29& lC) Cot~centrex 20oi Ai~r;ghts r~saz'ved. ',]D-G 03 E3.28 F3.29 HANSEN1 .LN OS. OVL)