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HomeMy WebLinkAbout902078902018 Space Above This Line For Recording Data MORTGAGE DATE AND PARTIES. The date of this Mortgage (Security Instru~nerlt) is August 13, 2004. The parties and their addresses are: MORTGAGOR: KLN PAINTING INC A UTAH Corporation 421 EAST 7TH NORTH TREMONTON, Utah 84337 LENDER: FIRST NATIONAL BANK - WEST Organized and existing under the laws of the United States of America 100 Greys River Road Alpine,Wyoming 83128 TIN: 83-0162601 1. CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debts and Mortgager's performance u~Mer this Security Instrument, Mortgagor grants, bargains, conveys, mortgages and warrants to Lender, with the power of sale, the following described property: LOT 12 OF PRATER CANYON ESTATES UNIT 4, LINCOLN COUNTY, WYOMING AS DESCRIBE[) ON "fide OFFICIAL PLAT THEREOF. The property is located in LINCOLN County at 11 ELKHORN CIRCLE, THAYNE, Wyoming 83127. Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop producers and all existing and future improvements, structures, fixtures, and replacements that may now, or at a~y time in the future, be part el the real estate described (all referred to as Property). This Security Instrument will remain in effect until[I-~e Secured Debts and all underlying agreements have been terminated in writing by Lender. 2. MAXIMUM OBLIGATION LIMIT. The total principal amount s~.cured by this Security Instrument at any one time will not exceed $204,073.37. This limitation of amount does not include interest and other fees and ct~arges validly made pursuant to this Securitylns~rument. Aisc, this li~nitadon does not apply to advances made under,he terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. 3. SECURED DEBTS. This Security Instrument will securetbe following Secured Debts: A. Specific Debts. The following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note or other agreement, No. 761000661, dated August 13, 2004, fronl Mortgagor to Lender, with a loan amount of $204,073.37, with an interest rate of 7.0 percent per year and maturing on February 28, 2005. B. All Debts. All present and future debts from Mortgagor to Lender, even if this Security Instrument is not specifically referenced, or if the future debt is unrelated to or of a different type d~an this debt. If more than one person signs this Security Instrument, each agrees that it will secure debts incurred either individually or with others who may not sign riffs Security Instrument. Nothing in this Security Instrument constitutes a commitment to make additional or future loans or advances. Any such commitment must be in writing. In the event that Lender fails to provide any required notice of the right of rescission, Lender waives any subsequent security interest in the Mortgager's principal dwelling that is crea~ed by this Security Instrument. Tiffs Security Instrument will not secure any debt for which a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consun~er loan," as tl~ose ten-ns are defined by federal law governing unfair and deceptive credit practices. This Security InstrL~ment will not secure any debt for which a security interest is created in "margin stock" and Lender does not obtain a "statement of purpose," as defined and required by federal law governing securities. KLN PAINTING INC Wyoming Mortgage W Yt4XDo~etta00815100004473012081304Y ©1996 Bankers Systems, Inc., St. Cloud, MN 0250 C~[~[d~t~d, All sums advanced and expenses incurred by Lender under the terms of this Security 4. PAYMENTS. Mortgagor agrees that ali payments under the Secured Debts will be paid when due and in accordance with the terms of the Secured Debts and this Security Instrument. 5. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance o1~ the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written consent. 6. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the ProperW when due. Lender may lequire Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgager's payment. Mortgagor will defend title to the Property against any claims ti/at would impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or delenses Mortgagor may have against parties who supply labor or materials ~o ~aintain or improve the Property. 7. DUE ON SALE. Lender may, at its option, declare the entire balance of the Secured Debts to be immediately due and payable upon the creation of, or contract for the creatio~ of, a transfer or sale df all or any part of tl~e Property. This right is subject to the restrictions imposed by fede~d law governing the preemption of state due-on- sale laws, as applicable. 8. TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortgagor is an entity other than a natural pe~son (such as a corporation or other organization), Lender may demand immediate payment if: A. A beneficial interest in Moitgagor is sold or transferred. B. There is a change in either the identity or number of members of a partnership or similar entity. C. There is a change in ownership of more than 25 percent of the voting stock of a corporation or similar entity. However, Lender may not demand payment in the above situations if it is prohibited by law as of the date of fids Security Instrurnent. 9. WARRANTIES AND REPRESENTATIONS. Mortgagor makes to Lender the following warranties and representations which will continue as long as this Security Instrument is in effect: A. Power. Mortgagor is duly organized, and validly existing and in good standing in ~11 jurisdictions in which Mortgagor operates. Mortgagor has the power and authoriw to enter into this transaction and to carry on Mortgager's business or activity as it is now being conducted and, as applicable, is qualified to do so in each jurisdiction in which Mortgagor operates. B. Authority. The execution, delivery and performance of this Security Instrument and the obligation evidenced by this Security Instrument are within Mortgager's powers, Imve been duly authorized, have received all necessary governmental approval, will riot violate any provision of law, or order of court or governmer~tal agency, and will not violate any agreement to which Mortgagor is a party or to which Mortgagor is or any of Mortgager's property is subject. C. Name and Place of Business. Other than previously disclosed in writing to Lender, Mortgagor has not changed Mortgager's name or principal place of business widdn the last ~0 years and has not used any other trade or fictitious name. Without Lender's prior written consent, Mortgagor does not and will not use any other name and will preserve Mortgager's existing name, trade names and franchises. 10. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep tile Property in good condition and make all repairs that are reasonably necessary. Mortgagor will not commit or allow any waste, impairment, or deterioration of the Property. Mortgagor will keel') the Property free of noxious weeds and grasses~ Mortgagor agrees that the nature of.the occupancy and use will ~ot substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement witl~out Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor, and of any loss or damage to the Property. No portion of the Property will be removed, demolished or materially altered without Lender's prior written consent except that Mortgagor has the right to remove items of personal property comprising a part of the Property ti-tat become worn or obsolete, provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free from any title retention device, security agreement or other encumbrance. Such replacement of personal property will be deerned subject to the security interest created by this Security Instrument. Mortgagor will not partition or subdivide the Property without Lender's prior written consent. Lender or Lender's agents may, at Lender's option, enter the P~operW at any reasonable dine fei the purpose of inspecting the Property. Lender will give Mortgagor notice at the time of or before an inspection specifying a reasonable purpose for the inspection. Any inspection of the Properw will be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 11. AUTHORITY TO PERFORM. If Mortgagor fails to perform any duty or any of the covenants contained in this Security Instrument, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgager's name or pay any alviOUl~[ necessary for performance. [.e~de~'s right to perform for Mortgagor will not create an obligation to perform, a~d Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's security interest in the Property, including completion of the construction. KLN PAINTING INC "~ Wyoming Mortgage trfitia 12. ASSIGNMENT OF LEASES AND RENTS. Mortgagor assigns, grants, bargains, conveys, mortgages and warrants to Lender as additional security all the right, title and interest in the following (Property). A. Existing or future leases, subleases, licenses, guarant~es and any other written or verbal agreements for the use and occupancy of the Property, including but not limited to any extensions, renewals, modifications or replacements (Leases). B. Rents, issues and profits, including but not limited to securiw deposits, minimum rents, percentage rents, additional rents, common area maintenance charges, parking charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages following default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, bonuses, accounts, contract rights, general intangibles, and all rights and claims which Mortgagor may have that in a~¥ way pertain to or are on account of the use or occupancy of the whole or any part of the Property (Rents). In the event any item listed as Leases or Rents is determined to be personal property, this Assignment will also be regarded as a security agreement. Mortgagor will promptly provide Lender with copies of the Leases and wilt certify these Leases are true and correct copies. The existing Leases will be provided on execution o~ Assignment, and all future Leases and any other information witt~ respect to these Leases will be p~ovided immediately after they are executed. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is not in default. Mortgagor will not collect in adva~ce any Rents due in [uture lease periods, unless Mortgagor first obtains Lender's written consent. Upon default, Mortgagor will receive any Rents in trust ~or Lender and Mortgagor will not commingle the Rents with any o~her funds. When Lender so directs, Mortgagor will endorse and deliver any payments of Rents from the Property ~o Lender. Amounts collected will be applied at Lender's discretion to the Secured Debts, the costs of managing, protecting and preserving tl~e ProperW, and other necessary expenses. Mortgagor agrees that this Security Instrument is immediately effective between Mortgagor and Lender. This Security Instrument will remain effective duri~g any statutory redemption period until Secured Debts are satisfied. Unless otherwise prohibited or prescribed by state law, Mortgagor agreestbat Lender may take actual possession of the Property without the'necessiw of commencing any legal action or proceeding. Mortgagor agrees that actual possession of the Property is dee~ned [o occur when Lender notifies Mortgagor of Mortgagor's default and demands that Mortgagor and Mortgago~'s tenants pay all Rents due or to become due directly to Lender. Immediately after Lender gives Mortgagor ~l~e ~o[ice of default, Mortgagor agrees that eid~er Lender or Mortgagor may immediately notify the tenants and demand that all future Rents be paid directly Lender. As long as this Assignment is in effect, Mortgagor warra~ts and represents that no defaul~ exists under the Leases, and the parties subject to the Leases have not violated any applicable law on leases, licenses and landlords and tenants. Mortgagor, at its sole cost and expense, will keep, observe and perform, and require all other parties to the Leases to comply with the Leases and any apl~licable law. If Mortgagor or any par~y to the Lease defaults or tails to observe any applicable law, Mortgagor will promptly notify Lerlder. If Mortgagor neglects or refuses ~o enforce compliance with the terms of tho Leases, then Lender may, ai Lender's opdon, en[orce compliance. Mortgagor will not sublet, modify, extend, cancel, or otherwise alter the Leases, or accept surrender of the Property covered by the Leases (unless the Leases so require) without Lender's consenL Mortgagor will not assign, compromise, subordinate or encumber ~he Leases and Rents without Lender's p~ior written consent. Lender does not assume or become liable for tl~e Property's maintena~ce, depreciation, or other losses or damages when Lender acts to manage, protect or preserve the Property, except for losses and damages due to Lender's gross negligence or intentional torts. Otherwise, Mortgagor will indemnify Lender and hold Lender harmless for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its remedies against any party obligated under the Leases. 13. DEFAULT. Mortgagor will be in default if any of the following occur: A. Payments. Mortgagor fails to make a payment in full when due. B. Insolvency or Bankruptcy, The death, dissolution or insolvency of, appointment of a receiver byor on behalf of, application of any debtor relief law, the assignment for ~l~e benefit of creditors by or on behalf o~, the voluntary or involuntary termination of existence by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against Mortgagor, Borrower, or any co-signer, endorser, surety or guarantor of this Security Instrument or any other obligations Borrower has with Lender. C. Business Termination. Mortgagor merges, dissolves, reorganizes, ends its business or existence, or a partner or majority owner dies or is declared legally incompetent. D. Failure to Perform. Mortgagor fails to perform any condition or to keep any promise or covenant of this Security Instrument. E. Other Documents. A default occurs under the terms of any other transaction document. F. Other Agreements. Mortgagor is in default on any other debt or agreement Mortgagor has with Lender. G. Misrepresentation. Mortgagor makes any verbal or written statement or provides any financial i~fforma[ion that is untrue, inaccurate, or conceals a material fact at the time it is made or provided. H. Judgment. Mortgagor fails to satisfy or appeal anyjudgme~,t against Mortgagor. I. Forfeiture. The Property is used in amanneror for a purpose that threatens confiscation by alegal authority. J. Name Change. Mortgag~)r changes Mortgagor's name or assumes an additional name without notifying Lender before making such a change. K. Property Transfer. Mortgagor transfers all or a substantial part of Mortgagor's money or property. This condition of default, as it relates to the transfer of the Property, is subject to the restrictions contained in the DUE ON SALE section. L. Property Value. The value of the Property declines or is impaired. M. Material Change. Without first notifying Lender, there is a material change in Mortgagor's business, including ownership, management, and financial conditions. N. Insecurity. Lender reasonably believes that Lender is insecure. ©1996 Bankers Systems, h~c,, SL Cloud, MN ~.'* P~ge 3 KLN PAINTING INC Wyoming Mortgage WY/4XOorettaO08'15100004473012081304Y 0252 ]4. REMEDIES. Lender may use any and alt remedies Lender has under state or'federal law or in any instrument evidencing or pe~tainin~ ~o lhe Secured Debts, including, whhou~ ~hnitadon, lhe powe~ ~o sell dm ProperW. Any amounts advanced on Motivator's beha[~ will b~ immediately due and ma~ be added to dm balance owin~ unde~ the Secured Debts. Lende~ may maka a claim for an~ and alt i~murat~ee benefits or m~unds ~hat may be available on Mor~ga~o~'s Subject ~o any right ~o cum, required ~ime schedules o~ an~ o~he~ notice d~h~s Mor~ga~o~ ma~ have under tederal and s~a~e law, Lender ma~ make all or an~ par~ of the amoum owing b~ ~he mrms o~ lhe Secured Debts immediately due and foreclose this SecuriW Instrument in a manner provided by law upon [he occurrence ct a default or anytime thereafter. Upon any sale of ~he Property, Lender will make and deliver a special or limited warranW deed ~ha[ conveys ~he properW sold to ~he purchaser or purchasers. Under ~his special or limited warranty deed, Lender will covenant ~hat Lender has not caused or allowed a lien or an encumbrance ~o burden the Property and that Lender will specially warran~ and defend the ProperW's zi~le of zhe purchaser or purchasers at the sale agains~ all lawful claims and demand of all persons claiming by, through or under Lender. The recitals in any deed of conveyance will be prima facie evidence of the facts set forth therein. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on ~he Secured Debts after ~he balance is due or is accelerated or aher foreclosure proceedings are filed will constitute a waiver of Lender's right ~o require full and complem cure of any existing default. By not exercising any remedy, Lender does not waive Lender's right ~o later consider [he event a default it it continues or happens again. 15. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or aher Default, to ~he extant permitted by law, Mortgagor agrees [o pay all expenses of collection, enforcement or protection of Lender's rights and remedies under this SecuriW Instrument. Mortgagor agreesto pay expenses Jot Lender ~oinspect and preserve~he Properw and for any recordation costs of releasing ~l~e ProperW from ~his SecuriW InsWumerm Expenses include, but are no~ limited ~o, auorneys' fees, cour~ cosIs and other legal expenses. These expenses are due and payable immediaIely. If not paid immediately, ~hese expenses will bear i~[eres't from ~he dam of payment un[il paid in full a~ the bighes~ interest rate in effect as provided for inthe[erms of tl~e Secured Debts. To theex~em permi[md by the United Stares Bankruptcy Code, Mortgagor agrees ~o pay the reasonable attorneys' fees Lender incurs [o collect ~he Secured Debts as awarded by any court exercising jurisdiction under the Bankruptcy Code. 16. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, withou~ limitation, the Comprehensive Environmental Response, Compensation and Liability Ac~ (CERCLA, 42 U.S.C. 9601 e[ seq.), all other federal, state and local laws, regulations, ordinances, cour~ orders, a~mrney general opinions or interpretive letters concerning the public heal~ll, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous mamrial, waste, pollumm or contaminant which has characmristics which render the substance da~gerous or potemially dangerous ~o the public health, safew, welfare or environmenL The term includes, without limitation, any substances detined as "hazardous material," "~oxic substance," "hazardous waste," "hazardous substance," or "regulated subslar~ce" under any Environmental Law. Mortgagor represents, warrants and agrees ~hat: A. Excep~ as previously disclosed and acknowledged in writing [o Lender, no Hazardous Substance has been, is, or will be located, [ranspormd, manufactured, wea~ed, refined, or handled by any person on, under or about ~he ProperW, except in the ordinary course of business and in s~rict compliance with all applicable Environmental Law. B. Excep~ as previously disclosed and acknowledged in writing ~o Lender, Mortgagor has no~ and will no~ cause, comribu~e to, or permi~ ~he release of any Hazardous Substance on ~he Property. C. Mortgagor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or abou~ ~he Proper~y or migrates or threamns to migrate from nearby properW; or (2) ~here is a violation of any Environmental Law concerning the ProperW. In such an evenL Mortgagor will ~ake all necessary remedial action in accordance with Environmental Law. D. Excep! as previously disclosed and acknowledged in writing [o Lender, Mortgagor has no knowledge o[ or reason ~o believe there is any pending or threatened inves[igatio~, claim, or proceeding of any kind relating (1) any Hazardous Substance located on, under or about the Properw; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason ~o believe ~here is any such pending or threatened investigation, claim, or proceeding. In such an evenL Lender has ~he righL but no~ ~he obligation, to participate in any such proceeding including ~be righ~ receive copies of any documents relating [o such proceedings. E. Except as previously disclosed and acknowledged in writing ~o Lender, Mortgagor and every tenant have been, are and will remain in full compliance with any applicable Environmental Law. F. Except as previously disclosed and acknowledged in writing to Lender, ~here are no underground storage ranks, private dumps or open w~lls located on or under ~he Proper~y and no such rank, dump or well will be added unless Lender firs~ consents in writing. G. Mortgagor will regularly inspect ~he Property, monitor ~l~e activities and operations on ~he Property, and confirm ~ha~ all permits, licenses or approvals required by any applicable Environmental Law are obiained arid complied with. H. Mortgagor will permih or cause any ~enan~ m permiL Le~ldur or Lender's agent ~o enter and inspec~ ~he Property and review all records a~ any reasonable dine ~o demrrnine (1) ~he exismnce, location and nature of any Hazardous Substance on, under or abou~ the ProperW; (2) xl~e exismnce, location, nature, and magnitude of any Hazardous Substance ~ha[ has been released on, under o~ about ~he ProperW; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environn~enmt Law. KLN PAINTING INC Wyomin9 Mo~lgage WY/4XDo~ettaO_rOS~]..,~O19~Q04473012081304Y I. Upon Lender's request and .at any time, Mortgagor agrees, at Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J. Lender has the right, but not the obligation, to perform any o~ Mortgagor's obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, warranty or promise made in lhis section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, which Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, Lender may release this Security Instrument and in return Mortgagor will provide Lender with collateral of at least equal value to the Property secured by this Security Ins[rument without prejudice to any of Lender's rights under this Security Instrument. L. Notwithstanding any of the language contained in this Security Instrument to the contrary, the terms of tiffs section will survive any foreclosure or satisfaction of this Security Instrument regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 17. CONDEMNATION. Mortgagor will give Lender prompt notice of any pending or threatened action by privateor public entities to purchase or take any or all of the Property through condelnnation, eminent domain, or any other means. Mor[gagor authorizes Lender ~o intervene in Mortgagor's name in any ot the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds will be considered payments and will be applied as provided in this Security Instrument. This assig~nent of proceeds is subject [o the terms of any prior mortgage, deed of trust, security agreement or other lien document. 18. INSURANCE. Mortgagor agrees to keep the Property insured against the risks reasonably associated with the Property. Mortgagor will maintain this insurance in the amounts Lender requires. This insurance will last until the Property is released from this Security Instrument. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured Debts. Mortgagor rnay choose the insurance company, subject to Lender's approval, which will not be unreasonably withheld. All insurance policies and renewals will include a standard "mortgage clause" and, where applicable, "loss payee clause." It required by Lender, Mortgagor agrees to maintain coml)rehensive general liability insurance and rental loss or business interruption insurance in amounts and under policies acceptable to Lender. The comprehensive general liability insurance must name Lender as an additional insured. The rental loss or business interruption insurance must be in an amount equal to at least coverage of one year's debt service, and required escrow account deposits (if agreed to separately in writing.) Mortgagor will give Lender and the insurance company immediate ~otice of any loss. All insurance proceeds will be applied to restoration or repair of the Property or to the Secured Debts, at Lender's option. If Lender acquires the Proper;y in damaged condition, Mortgagor's rights to any insurance policies and proceeds will pass to Lender to ~he extent of the Secured Debts. Mortgagor will immediately notify Lender of cancellation or termination of insurance. If Mortgagor failsto keep the Property insured Lender may obtain insurance to protect Lender's interest in the Property. This insurance may include coverages not originally required of Mortgagor, may be w~itten by a company other than one Mortgagor would choose, and may be written a~ a higher rate than Mortgagor could obtain it Mortgagor purchased the insurance. 19. ESCROW FOR TAXES AND INSURANCE. As provided in a separate agreement, Mortgagor agrees ~o pay to Lender funds for taxes and insurance in escrow. 20. CO-SIGNERS. If Mortgagor signs this Security Instrument but does not sign the Secured Debts, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debts and Mortgagor does not agree to be personally liable on the Secured Debts. If this Security Instrument secures a guaranty between Lender and Mortgagor, Mortgagor agrees ~o waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation. These rigl~ts may include, but are not limited to, any anti-deficiency or one-action laws. 21. WAIVERS. Except to the extent prohibited by law, Mortgagor waives all homestead exemption rights relating to the Property. 22. APPLICABLE LAW. This Security Instrument is governed by ~he laws of Wyoming, except ~o the extent otherwise required by the laws of the jurisdiction where the Property is located, and the United States of America. 23. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. Each Mortgagor's obligations under this Security Instrument are independent of the obligations of any other Mortg~gor. Lender may sue each Mortgagor individually or together with any o~her Mortgagor. Lender may release any par[ of the Property and Mortgagor will still be obligated under this Security Instrument for the remaining Property. The duties and benefits of this Security Instrument will bind and benefit the successors and assigns of Leander and Mortgagor. 24. AMENDMENT, INTEGRATION AND SEVERABILITY. This Security Instrument may not be amended or modified by oral agreement. No amendment or modification of this Security Instrument is effective unless made in writing and executed by Mortgagor and Lender. This Security Instrument is the complete and /il~al expression ot tl~e agreement. If any provision of this Security Instrument is unetfforceable, then the unenforceable provision will he severed and the remaining provisions will still be enforceable. 25. INTERPRETATION. Whenever used, the singular includes ~be plural and the plural includes the singular. section headings are for convenience only and are not to be used to interpret or define the terms of [bis Security Instrument. KLN PAINTING INC Wyoming Mortgage Initi WY/4XDotettaOO815100004473012081304Y ~1996 Bankers Systerns, h-~c., St. Cloud, MN 26. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail [o the appropriate party's address listed in tim DATE AND PARTIES section, orto any other address designated in writing. Notice to one party will be deemed [o be notice to all parties. Mortgagor will inform Lender in writing of any change in Mortgagor's name, address or other application information. Mortgagor will provide Lender a~w financial statements or information Lender requests. All financial statements and information Mortgagor gives Lender will be correct and complete. Mortgagor agrees to sign, deliver, and file any additional docurne~ts or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Security Instrument and to confirm Lender's lien status on any Property. Time is of the essence. SIGNATURES. By signing, Mortgagor agrees to the terms and covenants contained in this Security Instrument. Mortgagor also acknowledges receipt of a copy of this Security Instrument. MORTG~'~R: KLN/~/~(NIING~ ~ I~[y~~, I~RGIDENT Firs~ N~nk Penny Jo~~ L~an O~fio~r ACKNOWLEDGMENT. (Business or Entity) This instrument was aZn~wledg~before me th~ KEVlN L NESTER as PRESIDENT of KLN PAINTING INC. My commission expires: P~NN¥ dONE8 .,~i:i:~I~IOTARY PUBLK~ ~OUN'f'~Y O~ ~ STATE OF LINCOLN WYOMING Penny Jones as Real E~al; Loan O~icer of/Cirst N~onal I~'nk - V~s{,/) My come'ion ~pires' ~ // ~~~--~/ (~otary Public) KLN PAINTING INC Wyoming Mortgage WY/4XDorettaOO8~QQ~O4473012081304Y ©1996 Baaed!ems I.e., St Cloud, MN ~-~.~ Pa9~ 6