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HomeMy WebLinkAbout900662RECORDATION REQUESTED BY: The Jackson State Bank & Trust West Office P.O. Box 1788 50 Buffalo Way Jackson, WY 83001 WHEN RECORDED MAIL TO: The Jackson State Bank & Trust West Office P.O. Box 1788 50 Buffalo Way Jackson, WY 83001 SEND TAX NOTICES TO: The Jackson State Bank & Trusl West Office P.O. Box 1788 50 Buffalo Way Jackson, WY 83001 900662 RECEIVED LINCOLN COUNTY CLERK BOOK SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE MAXIMUM LIEN. The lien of this Mortgage shall not exceed at any one time $215,000.00. THIS MORTGAGE dated June 25, 2004, is made and executed between Jeffrey C Toolson and Heidi E Toolson, husband and wife, whose address.is PO Box 3737, Alpine, WY 83128 (referred to below as "Grantor") and The Jackson State Bank & Trust, whos,~, address is P.O. Box 1788, 50 Buffalo Way, Jackson, WY 83001 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all of Grantor's right, title, and interest in and to the following described real properly, together w th all existing or subsequently erecled or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, wator i'ights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the'real property, including without limitalion ail minerals, oil, gas, geothermal and similar matters. (the "Real Property") located in Lincoln. County, State of Wyoming: Parcel I -Lot 40 Bridget View F',anches Lincoln County, Wyoming as described on the official plat thereof Parcel 2 - Lot 100 of Pa is Park Second Addition to the Town of Alpine, Lincoln County, Wyoming as described on the officail plat thereof The Real Property or its address is commonly known as 218 Caribou Loop & 200 West Mills Circle, Thayne & Alpine, WY 83127. CROSS-COLLATERALIZATION. In addition to i. hn Note, this Mortgage secures all obligations, debts and liabililies, plus interest thereon, ol Grantor to Lender, or any one or more ol them, as well as. al.: claims by Lender against Grantor 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 undeterm'ined, absolute or contingent, liquidated or unliquidated whether Grantor may be liable individually or jointly with others, whelher obligated as guarantor, surety, accommodation party or o!herwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. Il the Lender is required to give notice of the right to cancel under Trulh in Lending in connection with any addilional loans, extensions of credit and other liabilities or obligations of Grantor to Lender, then this Mortgage shall not secure additional loans or obligalions unless and until such notice is given. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE, INCLUBING THE ASSIGNME~IT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS MORTGAGE..THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in lhis Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of~,Grantor's ob gations under this Modgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisi6ns: Possession and Use. Until the occurrenc~ 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) c.311ect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in good condition and promptly pedorm all repairs, replacements, and mainlenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the.period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, abou" o~ from the Property; (2) Grantor has no knowledge of, or reason to believe lhat there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatmenh disposal, release or threatened release ol any Hazardous Substance on, under, about or korn the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as pre,,iously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other autl~orized user ol the Property shall use, generate, rnanufaclure, store, treat, dispose of or release any Hazardous Substance on, under, about or from the PrCperty; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and lests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with Ihis section of lhe Mortgage,. Any inspections or tests made by Lender shall be tor Lender's purposes only and shall not be construed to create any responsibility or li'.abifity on tile part ol Lender to Grantor or to any other person. The representalions and warranties contained herein are based on Grantor's dug diligence in investigating the Property for Itazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender I~r indemnity or contribution in the evenl Grantor becomes liable for cleanop or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sus'ain or suffer resulting from a breach ol Ihis section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposa, release or threatened release occurring prior to Grantor's ownership or interest in tile Property, whether or not the same was or should ha,~e .been known to Grantor. The provisions of this Section of the Mortgage, including the obligation to indemnify, shall survive the payment of thu Indebtedness and Ihe satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or o herwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoio9, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (includ!n§. oil and gas), coal, clay, scoria, soft, gravel or rock products without Lender's prior written consent. Removal of Improvements. Grantor shall not demolish or remove any Improverneots fr~m tile Real Properly without Lender's prior written consent. As a condition to the removal (~f any;Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such ImprOvements with Improvements of a: le:ast equal value. Lender's Right to Enter. Lender and Lenderis agents and representatives may enter upon the Real Properly at all reasonable limes to attend Lender's interests and to inspecl the Real P-operty for purposes of Grantor's compliance with the terms and conditions of Ihis Mortgage. : MoHi'"~'AG E ~ ..... 5 0 5 Loan No: 33048554 (Continued) Page 2 Compliance with Governmental Requir~:ments. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities apF;iic~ble lo the use or occupancy of the Property. Grantor may contest in good laith any such law, ordinance, or regulation and withhold compiiar!ce during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Liender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a sure;~y bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended lhe Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the chai'acter and use of the Property are reasonably necessary to protect and preserve lhe Property. DUE ON SALE - CONSENT BY LENDER. Lend~.r may, at Lender's option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, withoul Lender's prior written consent, of all or any part of Ihe Real Property, or any interesl in Ihe Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or 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 an interest in the Real Property. However, this option shall nol be exercised by Lender il such exercise is prohibited by federal law or by Wyomin9 law. TAXES AND LIENS. The following provisions r.~lating to the taxes and.liens on the Property are part ol lhis Mortgage Payment. Grantor shall pay when due (a!.zd in all events prior to delinquency) all taxes, payroll taxesl special taxes, assessments, waler charges and sewer service charges levied against or on account of the Properly, and shall pay when due all claims lor work done on or for services rendered or material furnished to the Property!. Grantor shall maintain Ihe Properly free of any liens having priority over or equal to the inlerest of Lender under this Mortgage, except for tho~e !lens specifical y agreed to in writing by Lender, and except for the lien of taxes and assessments not due as further specified in the Right lo Cor~esi paragraph. Right to Contest. Grantor may withhold paymenl of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Prdpedy is not jeopardized. If a lien arises or is filed as a resu I 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 the discharge of the lien, or if requested by Lender, deposit with Lender cash or a suificient corp0rale surety bond or olher security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and reasonable attorneys' lees, or other charges that could accrue as a resull Of a foreclosure or sale under the lien. In any coolest, Grantor shall def,)nd itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an addilic~na!'obiligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall up(,n (;]emand furnish to Lender salisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver io Lender al any time a writter-~ statement of the taxes and assessments against lhe Property. ; Notice of Construction. Grantor shall nctify; Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to lhe Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The follo/,/ing provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shaJ: p~:ocure and maintain policies of fire insurance wilh standard extended coverage endorsements on a replacement basis for the full insurable va;ue covering all Improvements on the Real Property in an amount sufficient to avoid applicalion of any coinsurance clause, and with a standard n:ort.;jlagee clause in favor of Lender. Policies sball be written by such insurance companies and in such form as may be reasonably acceptable io Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancel edor diminished without a minimum oi ten (10) days' prior written notice lo Lender and not contai~3ing any disclaimer of the insorer's liability for faf, ute to give such notice. Each insurance policy also shall include an endorsement providing thal coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should II/e Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flocd filsurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full uhpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the Natioqal 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 Ihe Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the c~.soalty. Whether or not Lender's security is impaired, Lender may, al Lender's election, receive and retain the proceeds of any insurance arid apply lhe proceeds to the reduction of Ihe Indebledness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to resloration and repair, Grantor shall repair or replace lbo damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof ol such expendilure, pay or reimburse Grantor from the proceeds for tlie reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed wilhin 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount ow;ag to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indehtedness. I[ Lender holds any proceeds after paymenl in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. LENDER'S EXPENDITURES. If Grantor fails (A), to keep the Property free of all taxes, liens, security interests, encumbrances, and oilier claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or proceeding is commenced thal would materially affect Lender's ]nteresls in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests All expenses iocurred or paid by Lender lot such purposes will then bear ioterest at the rate charged tinder the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part Of Ihe Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance Of tile Nole and be apportioned among and be payable with any installment payments to become due during either (1) the term of any app icabe insurance policy' or (2) Ihe remaining term of the Note; or (C) be treated as a balloon pa~ meat which will be due and payable at the Note's maturity. The Mortgage also will secure payment of these amounts. The rights provided for in this ~aragraph shall be in addition 1o any other rights or any remedies to which Lender may be enlitled on account of any default. Any such action by Let.der shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following;provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those sol forth in the Real Property descriplion or in any title insurance policy, lille report, or linal title opinion issued in favor of, and accepted by, Lender in conne4~'tion with Ihis Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exceptio{, in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawlul claims of all persons. In the event aqy action or proceeding is commenced that questions Grantor's title or the interesl of Lender under this Mortgage, Grantor shall defend the action al, Grantor's expens-e.; Grantor may be the nominal party in such proceeding, but Lender shall be entitled to padicipate in the proceeding and to be represented in Ihe proceeding by counsel of Lender"s own choice, and Grantor will deliver, or cause to be delivered, to Lender such instrum,'.~nts as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Granlor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Promises'. All promises, agregments, and statements Grantor has made in this Mortgage shall survive Ihe execution and delivery of this Mortgage, shall be continuing in nature and shall remain in full force and effect unlil such time as Grantor's indebtedness is paid in full. CONDEMNATION. The following provisions rel¢~tin.'g to condemnation proceedings are a part of this Mortgage: Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall Promptly take such steps as may be necessary to defend Ihe ~ ction and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entilled to participate in the proceeding and. to'be represented in the proceeding by counsel of its own clloice, and Grantor will deliver or cause to be delivered to Lender such instruments and documenta on as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If all or any pad of the Property is condemned by eminenl domain proceedings or by any proceeding or purchase in lieu ol condemnation, Lender may at its election require that all or any portion of the riel proceeds of the award be applied to the Indebtedness Loan No: 33048554 (Continued) Page 3 or the repair or restoration of the Properly. Th'9 n~et proceeds of the award shall mean the award after payment oi all reasonable costs, expenses, and attorneys' fees incurred by Lender in connect;on with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES I'~Y GOVERNMENTAL AUTHORITIES. The lollowing provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon ;"eq:Jest by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action is requested by Lender to pedect and continue Lender's lien on tl3e Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, pedecting or continuing this Mortgage, including without limitation all taxes, fees, doculnentary stamps, and other charges for recording of registering this Modgage. Taxes. The following shall constitute taxes to, which this section applies: (1) a specific tax upon this type Of Mortgage or upon all or any pad of the Indebtedness secured by this Mortgage; (2)¢ a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mort~a{.:e; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of t'~e .Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax tO which this sec'.~ion applies is enacted subsequent to the date of this Modgage, this event shall have the same effect as an Event of Default, and Lender may ~xercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinqu'ent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bo:~d or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMEN'I;'S. The following provisions relating to this Modgage as a security agreement are a part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all ol the rights of a secured party under t~-~e Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, GraY, for shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Personal Property, In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions ol this Mortgage as a financing statement. Grantor shall reimburse 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 de.fault, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to tile .extent permitted by applicable law. Addresses. The mailing addresses of Gran'tor (debtor)and Lender (secured party) from which information concerning the security interest granted by this Modgage may be obtained (each a:s required by the Uniform Commercial Code) are as stated on the first page of this Modgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT, The following provisions relating to further assurances and attorney-in-tact are a part of this Mortgage: Further Assurances. At any time, arid lrom time to time, upon request of Lender, Grantor will make, execute and deliver, o~ will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, re/lied, or rerecorded, as the case may be, al such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreemepts, financing slatements, continuation slatements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, pedecl, continue, or preserve (1) Grantor's obligations under the No~e, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior liens on the l-~roperty, whether now owned or hereafter acquired by Grantor· Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection wilh the matters referred to in this paragraph. Attorney-lmFact. If Grantor fails to do any of ihe 'things relerred lo 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 Grantor's attorney-in-fact for the purpose ot making, executing, delivering, filing, recording, ~,nd doing all other tilings as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the prece,..!in~ paragraph. FULL PERFORMANCE. I1 Grantor pays all the Inc;ebtadness when due, and otherwise ped~orms all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grar. tor':a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security inter:gst in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender fro~:n time to time. EVENTS OF DEFAULT. At Lender's option, Grantbr wi:Il be in.default under this Mortgage il any of tile following happen: Payment Default. Grantor fails to make any p&yment when due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Modgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or ~o e'~fect discharge of any lien. Break Other PromiseS. Grantor breaks any p-omise made to Lender or fails to perform promptly at the time and strictly in the manner provided in this Mortgage or in any agreement related to th's Modgage. Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any ol Grantor's property or Grantor's ability to repay the Indebtedness or Grantor's ability to perform Gr~tnto. r's obligations under this Modgage or any relaled document. False Statements. Any representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is Ialse or misleading in any material respect, either now or at the time made or furnished. Defective Collateralization. This Mortgage orany of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment ol a receiver for any part of Grantor's Property, any assignment for the benefit of creditors, any type of creditor workout, or the cornmencement ol any proceeding under any bankruptcy or insolvency laws by or against Grantor. Taking of the Property. Any creditor or governmental agency tries to take any of the Property or any otl~er of Grantor's p~:operty in which Lender has a lien. This includes taking of, garnishing of or levying on Grantor's accounts with Lender. However, il Grantor disputes in good faith whether the claim on which the taking ol the Property i§ based is valid or reasonable, and if Grantor gives Lender written notice of the claim and furnishes Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Breach of Other Agreement. Any breach by.Grantor under the terms of any other agreemenl between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreemenl concerning any indebtedness or other ob~i9a~don of Gra,~'tor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser{ surety, or accommodation party dies or becomes incompetent, or revokes or disputes tile validity of, or liability under, any Guaranty of tile Indebt'adn'ass. In the event of a death, Lender, at its option, may, blat shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a ananner satisfactory to Lender, and, in doing so, cure any Event of Default. Right to Cure. If any default, other than a defau'lt in payment is (~urable and if Grantor has not been given a notice of a breach of the same provision of this Mortgage within the precedi,~ twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure ol such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more lhan fifteen (15)days, immediately initiates steps which Lender deems in Lenders rs}le discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to pr~i)du?e compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon ~'~e (~lccurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise any one or more of the following rights and ~'emedies, in addition to any other righls or remedies provided by law: Accelerate Indebtedness. Lender shall have ~he ~'ighi at its option without notice ~o Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty whk:h Grantor would be required to pay. Loan No: 33048554 (Continued) "'" 5 '0 ~'/~ Page 4 UCC Remedies. With respect to all or any part of the Personal Property, Lender shall I~ave all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents, Lender shall have the right,, wPhout notice to Grantor. to take possession of the Property, including during the pendency of foreclosure, whether judicial or non-judicial, ard collect the Rents. including amounts past due and unpaid, an(] apply the net proceeds, over and above Lender's costs, against the lndebtedne:;s. In furtherance of this right, Lender may require any tenant or other user of [he Property to make payments of rent or use fees direclly to Lenc'er. f the Rents are collected by Lender, tberi Grantor ~rrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments received i,~ payment thereof in the name ol Grantor a(]d to negotiate the same and collecl the proceeds. Payments by tenants or other users to Lend,.~r in response to Lender's demand shall satisfy Ibe obligations for which Ihe payments are made. whether or not any proper grounds for the der~a~d existed Lender may exercise ils nghts uncler this subparagraph either in person, by agent, or through a receiver. Appoint Receiver, Lender shall have the right to. have a receiver appointed to take possession of all Or any pad of the Property, with the power to protect and preserve ll~e Property, to operate ~he Property preceding foreclosure or sale and ~o collect the Rents from Ibe Properly and apply the proceeds, over and above the cosl of the receivership, against the Indebtedness. The receiver may serve without bond il permitted by law. Lender's right to the appoinlment of a recei~.er shall exist wbelher or not the apparen! value of the Property exceeds Ihe r~debtedness by a substantial amou(]t. Employment by Lender si~all r~ot disqualify a person from servi(]g as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree loreclosing Grantor's interest in all or any par[ of the Property. Nonjudicial Sale. Lender may foreclose Gr~nto:'s interest in all or in any part ol Ine Property Dy non-judicial sale, and specilically by "power of sale" or "advedisement and sale" foreclosure ~s provided Dy stalute. Deficiency Judgment. If permitted by applicable law, Lender may obtain a judgmen! lot any deliciency remaining in the Indebledness due to Lender after application of all amounts received Irom the exercise ct Ihe rights prowded in this section. Tenancy at Sufferance. If Grantor remains in possession of the Properly after the Property s sold as provided above or Lender otherwise becomes entitled to possession of the Property upon delault of Grantor, Granto~ shall become a tenant at sufferance ol Lender or lhe purchaser of tile Property and shall, al Lender's option, either (t) pay a reasonable rental for the use ol tl~e Property, or (2) vacale Ine Property immediately upon the demand of Lender. Other Remedies, Lender shall have all other rights and remedies provided in Ibis Mortgage or tile Note or available al law or in equity. Sale of the Property. To the extent permitt,~.d by applicable law, Grantor hereby waives any and all right to have the Property marshalled In exercising its rights and remedies, Lender shall be free Io sell all or any part ol the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid al any public sale on all or any portion ol the Property. Notice of Sale. Lender will g~ve Grantor reasonable notice of tile ume and place Ol any public sale ol me Personal Property or of the time after which any private sale or other intended disposition ct lhe Personal Property is to be made. Reasonable notice shall mean notice given at least ten (10) days before the time of the sale or dispdsitio(]. Any sale of the Personal Properly may be made in conjunction with any sale of the Real Property. Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An eleclion by Lender to choose any one remedy will nol bar Lender fror~ using any other remedy. If Lender decides to spend mone~, or to pedorm any ol Granlor's obligations under this Modgage, after Grantor:s fsiture to do so, that decision by Lender will not affect Lender's right to declare Granlor in default and 1o exercise Lender's remedies. Attorneys' Fees; Expenses. If Lender institptes any suil or action to enforce any of Jhe terms ol lhis Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable gs attorneys' fees al trial and upon any appeal. Whether or not any court action is i(]volved, and to the extent not prohibited by law, all reasonable: expenses Lender incurs thai in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights sh.'~ll become a part of the Indebtedness payable on demand and shall bear interest at the Nole tale from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's reasonable atto, meys fees and Lender's legal expenses whether or not Ihere is a lawsuit, including reasonable attorneys' fees and expenses for bankruptcy proceed rigs (including efforts to modify or vacate any autornatic stay or injunction), appeals, and any anticipated post-judgment collection services, th~ cost of searching records, obtaining title reports (including foreclosure repods), surveyors' reports, and appraisal fees and title insurancr~, to the extent permitted by applicable law. Grantor also will pay any coud costs, in addition to all other sums provided by law. NOTICES. Any notice required to be giyen under 'his Modgage, including without limitation any nolice ol default and any notice of sale shall be given in writing, and shall be effective when actually del vered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, i! mailed, when deposited in Ihe United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies ol notices of foreclosure from the holder ol aoy lien which has priority over this Modgage shall be sent to Le,~der's address, as shown near the beginning of Ibis Morlgage. Any person may change his or her address for notices under this Mortgage by giving formal written notice to 'tt]e other person or persons, specifying that the purpose of the notice is to change the person's address. For notice purposes Grantor agrees to keep Lender informed at all times ol 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. It will be Grantor's responsibility to tell the others of themotice from Lender. MISCELLANEOUS PROVISIONS. The following rhisc~llaneous provisions are a part of this Mortgage: Amendments. What is written in this Mortga'ge and in the Related Documents is Grantor's entire agreement with Lender concerning lhe matters covered by this Mortgage. To be effective, aqy change or amendment to this Mortgage must be in writing and must be signed by whoever will be bound or obligated by the change or amendm~;nt. Caption Headings. Caption headings in this 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 governed by and interpreted in accordance with federal law and the laws of the State of Wyoming. This Mortgage has been accepted by Lend,e,r in the State of Wyoming. Choice of Venue. If there is a lawsuit, Gramor ~,grees upon Lender's request to submit to the jurisdiction ol the courts of Teton County, State of Wyoming. Joint and Several. Liability, All obligations bf Grantor under this Mortgage shalt be joint and several, and all references Io Grantor shall mean each and every Grantor. This means that each G.antor signing below is responsible for all obligations in this Modgage. No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under this Mortgage unless Lender does so in writing. The fact that Lender delays or omits to exercise any right wilt not mean that Lender has given up Ihat right. II Lender does agree in writing to give up one of Lender's rights, that does not mgan Grantor will not bare to comply wilh the other provisions of this Mortgage. Grantor also understands that if Lender does consent to a request, that does not mean that Grantor will not have to get Lender's consent again if Ihe situation happens again. Grantor further understands that just because Lender consents to one or more ol Grantor's requests, that does not mean Lender will be required to consent to any of Grantor's futt.,ffe requests. Grantor waives presenlme(]t, dema(]d lot payment, protest, and notice of dishonor. Grantpr waives all rights of exemption from exec?tion or similar law in the Property, and Grantor agrees that the rights ol Lender in the Property under this Mortgage are prior to Grantor's righ,s while this Mortgage remains in effect. Severability. If a court finds that any provisioi~ of this Modgage is not valid or should not be eeforced, that fact by itself will not mean that the rest of this Mortgage will not be valid or enforced. Therefore, a court will enlorce the rest ol Ihe provisions ol this Mortgage even il a provision of this Mortgage may be found to be invalid or unenforceable. Merger. There shall be eo merger of the interest or estate created by this' Mortgage with any other inlerest or estate in the Property at any time held by or Ior the beeefit of Lender in any capacity., without the writte(] consent of Lender. Successors and Assigns. Subject to any limitatlons stated io this Modgage on transfer ol Grantor's interest, this Mortgage shall be binding upon and inure to the benefit of the parties, lheir successors and assigns, If ownership ol the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may de~l with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or exte(]sion without releasing Gnlnto!' from the obligations of this Modgage or liability under the I(]debtedness. Time is of the Essence. Time is of the esser:ce i(] the'performance ol this Mortgage. Waiver of Homestead Exemption, Grantor %erCby releases and waives all rights and benelits ol the homestead exemplion laws ol the State ol Loan No: 3304855~ MORTGAGE ' 5L08 (Continued) Page 5 Wyoming as to all Indebtedness secured by Ihis, Mortgage. DEFINITIONS. The following words shall have tlii; following meanings when used in this Mortgage: Borrower. The word "Borrower" means Jefl"ey C Toolson and Heidi E Toolson and includes all co-signers and co-makers signing the Note. Environmental Laws. The words "Environqnentat Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the env ronment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Supedund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Ma.feri~ls 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 othe' applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set fodh in this Mortgage in the events ol default section ct this Mortgage. Grantor. The word "Grantor" means Jeffrey'C T0oJson and Heidi E Toolson. Guaranty. The word "Guaranty" means the guaranty from guarantor endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or pant of the Notel : Hazardous Substances. The words "Hazardcus Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or Fgse a present or potential hazard to human health or tile environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitatio, n any and all hazardous or toxic substmlces, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Sbbstances" also includes, without lirnitalion, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "lmprovemen'ts" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, lacilities, additions, replacements and 'other construction on the Real Property. Indebtedness. The word "Indebtedness" mear~s all principal, interest, and olher amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, e'densions of, modifications of, consolidations ol and substitutions lot the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together wi:h interest on such amounls as provided in this Mortgage. Specifically, without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralization provision of this Mortgage. Lender. The word "Lender" means The Jackson State Bank & Trust, its successors and assigns. The words "successors or assigns" mean any person or company that acquires any interest in. the Note. Mortgage. The word "Mortgage" means thi.4 M~)rtgage between Grantor and Lender. Note. The word "Note" means the promissory note dated June 25, 2004, in the original principal amount of $215,000.00 from Grantor to Lender, together with all renewlals o[, extensions of, modifications ol, refinancings ol, consolidations ol, and substitutions lot the promissory note or agreement. Personal Property. Tile words "Personal Property" mean all equipment, fixtures, and other adicles of personal property now or I~ereafler owned by Grantor, and now or hereafter attached o~' affixed to the Real Property; together wilh all accessions, parts, and additions to, all replacements ol, and all substitutions for, any ol such prope~'!y; rnd together with all proceeds (includi~g without limitation all insurance proceeds and refunds of premiums) from any sale or other dispositior; of;the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words "Rela('ed Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trusl, security deeds, collaleral mortgages, and all other instruments, agreements and documents, whelher now o!' hereafter existing, executed in connection wilh the Indebtedness. Rents. The word "Rents" means all prese, nt and future rents, revenues, income, issues, royalties, profits, and other benelits derived from the Property. . EACH GRANTOR ACKNOWLEDGES HAVlN~ R;EAD ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. GRANTOR: .INDIVIDUAL ACKNOWLEDGMENT  -~._~ ) ss COUNTY OF ) / for the uses and purposes therein mentioned.. ; ~.-_7/~._ Giv,~r my hand and ~,icia~eal this Notary Public in and , On this day before me, the undersigned Notac'y Fublic, personally appeared Jeffrey C Toolson and Heidi E Toolson, to me known to be the individuals described in and who executed the Mortclage, and acknowledged that they signed the Mortgage as their tree and voluntary act and deed, Residing at My commission expires / // /.,~' ~ ~ IIMadn, L. Vandenbroeke'..c.t..... NOTARY pu BLiC IITETON ~MMISSION EXPIRES NOVEMBER 13.