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HomeMy WebLinkAbout9021289021 =8 State of Wyomino Space Above This Line For Recording Data REAL ESTATE MORTGAGE (With Foture Advance Clause) 1. DATE AND PARTIES. The date of this Mortgage is 08-11-2004 are as follows: and the parties and tlmir addresses MORTGAGOR: STEVEN CEIICHINSKY AND CAROLYN CHICHINSKY, ttUSBAND AND WIFE, AS TENANTS BY THE ENTIRETIES. P.O. BOX 3827 JACKSON, WY 83001 [] Refer to lhe Addendurn which is attached and incorporated llerein roi addit oq.al Mo'tgagors. LENDER: BANK OF JACKSON HOLE ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF WYOMING 990 W. BROADWAY P.O. BOX 7000 JACKSON, WY 83002 MORTGAGE. For good and vauable consideration, the receipt anti sufl:iciency of whicl~ is acknowledged, and m secure the Secured Debt (hereafter defined), Mortgagor grants, bargains, conveys, mortgages and warrants it) lender, with the power of sale, the following described property: LOT 43 OF RIVER VIEW MEADOWS ADDITION TO TIlE TOWN OF ALPINE WITHING TIlE SEl/4 OF SECITON 30, T37N, R118W, ACCORDING TO THAT PLAT FILED JULY 2, 1993 AS INSTRUMENT NO. 767416. The property is located in LINCOLN (County) __ at LOT 43 RIVER VIEW MEABOWS , ALPINE , Wyoming 83128 (Address) ICily} (Zip Code} Together with all rights, easements, appL-tenances royalties, mi~e~al ~ights, oil and gas rights, crops, timber, all diversion payments or third pa~ty payments made to crop producers, and all existing and future in-provernents structures, fixtures, and replacements that may now, or at any tithe in the I:uture, be part of lhe real estate described above (all referred to as "Property"). The term PIoperty also includes, but is riot lirrfited to, any and all water wells, water, ditches, reservoirs, reservoir sites and dams located on the real estate and all riparian and water lights associated with the Property, however established. WYOMING - AGRICULTURAL/COMMERCIAL REAL ESTATE SECURITY INSTRUMENT (NOI FOR FNMA, Ftfl NIC, FHA OR VA USE, AND NOr FOH £ONSUMt: I[]POSESJ ~" ©199'3, 2OO1 Bankers Systems, Inc., St. Cloud, MN Form 'AGCO-RESI-WY 1/16/2003 R~v~C ~, MAXIMUM OBLIGATION LIMIT. The total principal amount of the Secured Debt (hereafter defi]red) secured by tl~is Mortgage at any one time shall not exceed $70,000.00 This limitation of amount does riot include interest, Ioar~ charges, commitment fees, brokerage corrm]issions, attorneys' fees arid other charges validly made pursuant to this Mortgage and does not apply to advances (or i~te, est acc~uecl on such adva~ces) o-~ade ~]nde/ of this Mortgage to protect Lender's security and to perform any gl tl~e covenants contairled in ~his Mo~toa0e. Future advances are contemplated and, along with other future obligatio~s, ~re secured by trfis Mortgage even though all or pa~t may not yet be advanced. Nothing in this Mortgage, however, sl~all constitute a commitment to ~nake additional or future loans or advances in any amount. Any such commitment would ~eed to be agreed to i~ a sepala[e witting. SECURED DEBT DEFINED. The term "Secured Debt" includes, but is ~o! limited to, the following: A. The prornissory note(s), contract(s), guaranty(les) or other evidel]ce of debt described below and all extensions, renewals, modifications or substitutions. (When referencing ~he debts below it is suggesced tha~ yor~ fi~chide i~ems s~ch as borrowers' names and addresses, note principal all]OOfl[s, commercial revolving loan agreement's maxim~zm a~zount, interest rates, variable rate terms, ma~zrity da~es, etc.) PROMISSORY NOTE DATED 8.11-2004 IN 1HE AMOUNT OF $70,000.00 B. All future advances from Lender to Mortgagor or other fu[~]~e obligations of Mortgagor to l_ender ~]nder any promissory note, contract, guaranty, or other evidence o1' deb[ existing now or executed afte~ this Mortgage whether or not this Mortgage is specifically referred to in the evidence of debt. C. All obligations Mortgagor owes to Lender, which now exist or may later arise, to the extent not prol,ibited by law, including, but not limited to, liabilities for overdrafts reh~iing ro any deposit accourlt ag~een~ent between, Mortgagor arid Lender. .' D. All additional sums advanced and expenses incurred by Lende~ fo, insuring, preserving or otherwise p~etec[i,,g the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of [Ids Mortgage, plus in[eras! at the highest rate in effect, from tithe to [ime, as provided in die E~idence of Debt. E. Mortgagor's performance under the terms of any instrume~lt evidellcing a debt by Mor[gago~ to l el~der ar, d a~ly Mortgage securing, guarantying, or otherwise relating to the debt. If more thar~ one person signs this Mortgage as Mortgagor, eacl~ Mol tgagor aglees that this Mortgage will sec~lre all future advances and future obligations described above that are give~l ~o oi i~curred by any o,~e o, ~nore Mortgagol, o~ any one or more Mortgagor and others. This Mortgage will not secure any other debt if Leltder fails, wJtl~ respecl to suct~ othel debt, to make any required disclosure about this Mortgage gl il: Lei,der fails to give any required ilo[ice of Ilia liflh[ of rescission. PAYMENTS. Mortgagor agrees to make all payments on the Seculed [)ebt when due and in accordal~ce with [l~e terms ot the Evidence of Debt or this Mortgage. CLAIMS AGAINST TITLE. Mortgagor' will pay all taxes, assessme]~[s, liens, encumbrances, lease payments, gro~r,d rents, utilities, and other Charges relating to the Property when due. I e~der may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidenci~g Mortgagor's payment. Moltgagor will detelld title to the Property against any claims that would impair the lien oF this Mortgage. M~r[gagor agrees ~o assign to Lender, as requested by Lender, any rights, claims or defenses whicll Mortgagor may have against palties who supply labor or materials to improve or main[am the Property. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of tr[lst, secLuity aureemenl or other lien docun'~ent that created a prior sec~tirity interest or encumbrance o~ {l~e Property and that may have p~iority ove~ [his Mortgage, Mortgagor agrees: A. To i~ake all payments when due arid to perform or comply witl~ all covenants. 13. To promptly deliver to Lender any notices that Mortgagor receives h'om the holder: C. Not to make or permit any modification or extension of, al~d ~lot to request or accept any future adva]~ces under any note or agreement secured by, the other mortgage, deed of trust or security agreement u]dass l e~lder consents in writing. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declale ti-to entire balance of the Secured Debt to be immediately due and payable upon the creation of any lien, errcu~ld}~,m:e, transt~ur, or sale, or co~nract for ar~y of d',ese on the Property. However, if the Property includes Mortgagor's re,idac,ce; this section shall be subject to the restrictions irnposed by federal law (12 C.F.R. 591), as applicable. For the pt~lposes of d-ds sectio~, tl~e term "P, oper~y" also includes any interest to all or any part of the Property. This cove~l~d shall run with the P~opelty ar,d shall relnain m effect until the Secured Debt is paid in full and this Mortgage is released. 1993, 2OO1 Bankers Systems, Inc., Sl. Cloud, MN Farm AGCO al:SI WY 1/16/2003 (page 2 TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortga(.]or is all entity od~er than a natural person (sucl, as a corporation or other organization), Lender may demand immediate payment if (1) a beneficial interest in Mortgagor is sold or transferred; (2) ttqere is a change in either the identity or nunfl]el of members of a palmership or simila~ el~tiW; or (,3) there is a change in ownership of more than 25 percent of the voting stock of a corporation o~ si~nita~ e~ltity. ~lowever, Lender may not demand payment in the above situations if it is p~otfibited by law as of the Elate of this Moltgage. 10. ENTITY WARRANTIES AND REPRESENTATIONS. If Mortgager is an clarity other than a i'latu~al petsOrl (st,cji as a corporation or other organization), Mortgagor makes to Lende~ the lollowing warranties a~ld rel)~esenl~tions be continuing as long as tl~e Secured Deb~ remains outstanding: A. Mortgagor is an emiW which is duly o~ganized and validly existing in tl]e Mor~gagor's state of i~corporation (or organization). Mortgagor is in good standing in all states in whicl~ Mortgagor trans~cts business. Mortgagor i~as tt3e power and authority ~o own the Property and to ca~y o~ its business as now being conducted applicable, is qualified to do so in cacti s~ate in which Mortgagor operates. ~. The execution, delivery and performance of this Mortgage by Mortgagor and the obligation evi(:le~lced by Evidence of Debt are wit!~in the power of Mortgagor, have buen duty authorized, have received all n~cessary governmental approval, and will not violate any provision (]f I~w, or o~der of court o¢ govenm3ental agency. C. Olher than disclosed in writing Mortgagor has not changed its ~ame within the last ten years a~d has not used any other trade or fictitious name. Without Lender's p~iol wlilten conserve Mortgagor does got any other name and ~ill preserve its existing name, t~ade nantes and franchises undl the Secured Debt satisfied. 11.PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortga.qo~ will keep the Property in good co~ditien and make all repairs that are reasonably necessary. Mortgagor will give Lende~ prompt notice of any loss or da~nage to Property. Mortgagor will keep the Properw free of noxious weed~ a~d 0rasses. Mortgagor will not initiate, join in er consent to any change in any private ~estrictive covenant, zoni~o o~di~a~ce or odler public or private resuiction li~niting or defining die uses which may be made of the Properw or ~y i)a~t of tl~e ProperW, without [e~lde~'s prior w~inen consent. Mortgagor will notify Lende~ of all demands, proceedings, ch~ims, and actions agai~ls~ Mortgagor or any othe~ owner made under law or regulation regarding use, ownership and occupancy of the P~operty. Mort0ago~ will com/)ly with all legal requirements and restrictions, whether public or priwde, witl~ respect ~o flee use of tile [)~ope~ty. Mortgagor also agrees that the nature of the occupancy and ElSe will not change wid~out Lander's prior written consent. No portion of the ProperW will be removed, demolished or materially altered withou~ lender's prior w~itten consent except that Mortgagor has the right zo remove items of personal p~ol:)e~ty comprising a part of die F)~ol:)erty that beco~i~e worn or obsolete, provided ~hat such personal property is replaced with other personal property at least equ~d in value to the ~eplaced personal property, free from any title retention device, securiW agreement o~ other encumbrance. Such replacement of personal property will be deemed subject to tile sectl~ity in~erest created by Otis MoHga0e. Mortgagor shall not partition or subdivide file Property without lender's p~io~ w~itten colisent. Lende~ or l.ender's age~lts may, Lender's option, enter tl~e Property at any reasonable time for the j)ulpose of inspecting the Property. A~]y inspectioli the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 12. AUTHORITY TO PERFORM. If Mortgagor fails ~o perform any o[ Mo~t~]agor's duties under this Mortgage, o~ a~ly mortgage, deed of trust, security agreement or other lien docLin~e~[ tllat has p~ioriw over tilts Mortgage, Lertde~ may, without notice, perform file duties or cause them to be performed Mo~tgago~ appoir,tS Lender as a~to~ney i~ fact ~o siO~ Mortgagor's name or pay any amount necessary for performance It any construction on ~l~e Property is discontinued not carried on in a reasonable manner, Lender may do whatever is ~ecessa~y ~o protect [ender's secu~iw i~te~es~ in Property. This ~nay include completing the construction. Lender's right to perform for MortgaQor shall not create an obliQati~ [o perform, and Lender's failure to perform will not preclude Lender fi'om exercising any of Lender's ott~er rights u~cler d~e law or this Mo[tgage. Any amounts paid by Lender for insuring, preserving or otherwise protecting ~he Prope~w a~cl Lender's securiW ii,zeros[ will be due oil de~rla~ld and will bear interest from the da~e of the payment until paid in tull at ~l~e interest rate i~ effect from time to according t~ the terms of the Evidence o[ Debt. 13. ASSIGNMENT OF LEASES AND RENTS. Mertgagor assigns, g~a~ts, bargains, coqveys, mortgages anti wauants to Lende~ as additional security all tl~e right, title and interest in the f~llowing (Propelty). A. Existing or future leases, subleases, licenses, guaranties and any othe~ written or verbal agreements for tl~e use and occupancy of the Property, including but ~lOt li~/it~.d to, any extensions, ~enew~ls, mc~dific~mons or replacements (Leases). B. Rents, issues and profits, including but not Ii, hired to, security deposits, minimum ~ents, percentage ~ents, additional rents, common area maintenance charges, parki~g charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages following0 default, cancella~iorl p~emiums, "less of ~ents" insurance, guest receipts, revenues, royalties, proceeds, bo~mses, accounts, contlact ~iglrts, general intarlgibles, and all r ghts and claims which Mortgagor may have that m any way pelt~in to o~ are on account gl tl~e use or occupancy of the whole or any part of the Property (Rents). In the event ar~y item listed as Leases or Rents s determined to be personal property, this Assig~m~ent will also be rega~ ded as a secEl~ ity agreement. 04 5 Mortgagor will promptly provide Lender wid] copies of the Leas;e~ and will certify these leases are true arid conect copies. The existing Leases will be provided on execution o[ the Assi0~,-J~ent, and all ~Jf tl~e tun,e Leases arid any information with respect to these [ eases will be provided immedi~lely after d~ey are executed. Ut~tgagor n~ay receive, enjoy and use the Rents so long as Mortgagor is not in defaul~ Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgagor first obtains Lender's wlitten consent. Upon de/nub, Mollgagol will ~eceive any Rents in trust for Lender and Mortgagor will not cornmingle the Rents with any other funds. Wl~e~l L under so directs, Mortgagor will endorse and deliver any payments of Rents from d~e Prope~W to Lender. A~noums collected will be applied at Lender's discretion to the Secured Debts, the costs of ~na~aging, protecting and preserving the Property, and other necessary expenses. Mortgagor agrees that this Security Inst~m-nent is immediately effective between Mortgagor arid Lender. This Security Instrument will remain effective du~ing any statutory federal)lion period until ilia Secuied Debts are satisfied. Unless otherwise prohibited or prescribed by slate taw, Mortgagor agiees that L.e~lLle~ may take actual possession of the Property without the necessity o[ comme~cing any legal at'lion or proceedii~g. Mor[ga0or agiees that actual possession of the Property is deemed to occur when Lender notifies Mortgagor of Mortgagor's (Iofatll! a~M demands that Mortgagor and Mortgagor's tenants pay all Rents due o~ to become due directly to lender. Immediately after Lender gives Mortgagor the notice of default, Mortgagor agrees tiaat either Lender o~ Mortgagor may immediately notify the tenants and demand that all future Rents be paid directly to Lender. As long as this Assignment is' in effect, Mortgagor warrants and l eplesents float no defatdt exists under die Leases, and the parties subject to the Leases have not violated any applicable law on leases, licenses ar;d lancllords and te~ants. Mortgagor, at its sole cost and expense, will keep, observe and perform, and require all other parlies to die ! eases to comply with the [.eases and any applicable law. If Mortgagor or a*W party to the Lease defaults o~ fails to observe any applicable law, Mortgagor will prontptly notify L. ender. If Mortgagm neglects or refuses [o enforce co~npliance witll die terms of the Leases, then Lender may, at Lender's option, enforce compliance. Mortgagor will not sublet, modify, extend, cancel, or otherwise alte~ the t eases, or accept the surrender of die Property covered b¢ the Leases (unless the Leases so require) without Lender's consent. Mortgagor will ~,o[ assign, compromise, subordinate or encumber the Leases and Rents without Lende,'s plior written consent. !._ender (Joes not assume or become liable for the Property's maintenance, depreciation, or other losses or damages when Lender acts to ~na~lage, protect or preserx(e the Property, except fo~ losses and damages dLle to Lendel's gross negligence or i~jtentional torts. Otherwise, Mortgagor will indemnify Lender and hold Lender harndess for all liability, loss or da~nage [h~[ l.ende~ ~nay incur when Lender opts to exercise any of its remedies against a~y pa~ ly obligated under die I eases. 14. CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. If the Propelty includes a unit in a coodornini~m or a planned development, Mortgagor will perform all o[ Mortgagor's duties Llllde~ the covenants, by-laws, or regulations of condominium or planned unit development. 15. DEFAULT. Mortgagor will be in default if any of the following occur: A. Any party obligated on the Secured Debt fails to make pay~i~e~n when due; t3. A breach of any term or covenant in this Mortgage, any p~io~ r~o~tgage or any constrm;tion loan agreemenl, security ag|-eemen! or any other document evidenci~]g, guaranwing, securin0 or otherwise relating Icl die Secm~d Debt; C. The making or furnishing of any verbal or written represem~dion, s~ttement or wananty [o Lende~ that is false or incorrect in any n'laterial respect by Mortgagor or any person or entity obligated on the Secured l)ebt; D. The death, dissolution, or insolvency of, appointmem of a ~eceive~ for, or application of any debtor ~elief taw to, Mortgagor or any person or entity obligated on the Secured J-)ebt; E. A good faith belief by Lender at any time that Lender is insecure whh respect to any person or entity olfligated on the Secured Debt o~ that the prospect of any payment is i~ll)atred or the value of the Piope~ty is italicized; F. A material adverse change in Mortgagor's business includi~Jg owne~sllip, management, and fina~lcial condition,s, which Lender in its opinion believes impairs the value of die t~ul)elty or ~epayment of ilia Secured f)ebt; or G. Any loan proceeds are used for a purpose that will contribute to excessive erosion of Ifighly erodible I~nd o~ to the conversion of wetlands to produce an agricultural commothty, i~s turthe~ explained In 7 C.F.H I)m t 1940, Subpart G, Exhibit M. 16. REMEDIES ON DEFAULT. In some instances, federal and sra~e law will lequire t_ender to provide Mortgagor wllll notice of the right to cute. mediation nouces or other notices and may estabhsl~ time schedules fo~ foreclosure acnons ~ubjecl to these limitations, if any, Lender may accelerate the Secured Dub( ~nd foreclose this Mmlgage n a manl/el prowded by law it this Mortgagor is in default. At the option of Lender, all or any par~ of the agreed fees and charges, accrued ime~est and principal shall become immediately due and payable, afEer giving notice f required by law, upon ll~e occurrence of a default d~ereafter. In addition. Lender' shall be entitled ~o all the remedies provl(led Dy law. tf~e Evidence ot Deb~ o[hel evMe~,ces of debt, ~his Mortgage and any related documents including wid~ou[ limitation, [l~e power zo sell d~e Prope~W, All remedies are distinct, cumulative and not exclusive, and the Le~de~ s emnled ~o all remedies provMed a~ I~w whether expressly sol forth or not. The acceptance by Lender of ~ny surn in paymem or i)altial pa/mu~ on [l~e Debt after the balance ~s due or is accelerated or afte~ foreclosure ixoceedings are filed sl~all ~ot consmute a Lender's right [o require fei and complete cure of any exmting delaul[. By ~to[ exercising any remedy on Mortgago~ 's defau [, Lender does not waive LaRder's ~ gh~ ~o later considel tl~e eyelet a default ~[ t[ co~stlnues or h~ppe~s again 1993, 2001 Bankers S/stems, Inc., SI Cloud. MN Form AGCO RESI-WY 1/16,Z003 17. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when p~:ohibi~ed by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagol bieaclies any covenal~t i~ 1his Mo~lg~ge. Mor[gagol will also pay on demand all of Lender's expenses incurred in collec~i~g, i~st~rir~g, p~eservi~fl o~ p~otec~ing [l~e Properly o~ i~ any inventories, audi~s, inspections or edger examination by Le~de~ ~ respec~ ~o ~he Prot~e~W. Mor[gago~ agrees ~o pay all costs a~d expenses incurred by Lender in enforcing or protec~ir~o I e~der's ~ights a~d remedies un~Jel tills Mo~[gage, including, bu~ no~ limited ~o, attorneys' fees, court costs, arid od~e~ legal exper~ses. O~ce ~l~e Sec~ed Debt is ~ty finally paid, Lender agrees [o release [his Mortgage and Mortgagor agrees to pay for any recordation costs. All s~ch amounts are due on demand and will bear inzerest from the Lime of [l~e advance aL the.highest rate i~l effect, f~on~ zin~e ~o [i~ne, as p~ovided in the Evidence of Deb~ and as permitted by law. 18. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As us~d i~ this section, (1) "Environme~tal law" ~ea~s, without limitation, ~he Comprehensive E~vironmen[al Response, Co~q-~ensation and Liabiliw Ac[ (Ci:I:{CI A, d2 9601 et seq.), all ozhe[ federal, state and local laws, regulations, ordi~ances, cour~ orders, a[[on~ey general opir~ions or inzerpretive letters concerning the public healtl~, safe[y, welf~re, e~viron~ent or a I~aza~:dous substance; and "Hazarcious Substance" means any zoxic, radioactive or hazardo~s maid,rial, w~ste, poJiut~lt o~ co~tao~i~a~ll which characteristics which render d~e substance dangerous or potent ~ y (Jal-~ge[ous to [ /8 p~blic ~ea [t~, safe~y welra~e or environmen~ The [errn i~cudes without limitation any substar~ces de~i~ed as "haze'eeLs n~ate~i~t ' "~oxic s~bs~ances" "hazardous waste" or "hazardous substance" under any El~viron~e~zal [aw. Mo~tgagor rep~ese~ds, w~rran(s a~d agrees that, excep~ as previously disclosed and acknowledged in writing: A. No Ftazardous S~bstance has been, is, or will be located, [~a~sported, manufactured, [rea[ed, ~efined, or haodled by any person on, under or about the Properw, except i~ die o~dinaly course of b~si~ess a~d in st~cl compti~ce wi[t~ all applicable Environmental Law. B. Mortgage[ has no~ and will not cause, conzribute to, o~ pe~iz the release of any Ftazardous S~bszance o~ ProperLy. C. Mor~gagor will immediately notify Lender if (1) a release or d~eatened release of tlazardo~s S~bs[a~lce occults on, under or about the Property or migrates or threatens to mig~te hem ~earby proper[y; or (2) ~he~e is a viola[io~, any Environmental Law concerning the Property. In such ~r'~ eyefuL, Mortgagor will take all ~ecessa~y ~emedial action in accordance with Environmental Law. D. Mortgagor has no knowledge of or reason ~o believe tt~e~e is any pending or threatened investigalion, cl~i~, or proceeding of any kited relating to (1) any Hazardous S~d~st~ce located on, under or about zl~e P~operty; o~ (2) any violation by Mortgagor or any zenan~ of any Enviror~er~[al Law. Mortgagor will i~ecliately nod[y [elidei in wri~i~g as soon as Mortgagor has reason to believe there is any such pending or tt~reazened i~ves~ioadon, claim, or proceeding. In such an event, Lender has [t~e right, but ~o[ [l~e obligation, to participate in any s~ch p~oceedi~g including the right ~o receive copies of any documents rela[i~9 to such proceedi~gs. E. Mor~gagor and every ~enant have beer~, are and shall re~ir~ ir~ [~dt cor~pliance with any applicable Environmental Law.., F. There are no underground storage zanks, private dumps e~ ope~q wells located on or under the Prope,~y a~d no such tank, dump or well will be added unless Lender firs~ co~se~ds in writing. G. Mor~gagor will regularly inspect ~l~e P~operty, monitor zl~e ~:tivities and opera~ions on [t~e ProperW, and confirm [hat all permits, licenses or approvals required by any apt~lic~ble E~viro~mental Law are ob[air,ed and c~plied with. H. Mortgagor will permit, or cause any tenant to permit, Le~de~ o~ Lender's agent to e~ler a~d inspect ~l~e P~ol,erW and ~eview all ~ecords at ,any reasonable dine ~o dete~i~'~e (1) the existence, location arid natalie et Hazardous Substance on, under or abouz the P~operty; (2) ~l~e existence, Iocado~, nature, a~d mag~i~(le er Hazardous Substance [hal has been released on, under o~ ~bou[ the P~operW; o~ (3) whether or r~o[ and any tenan~ are in compliance wi~h applicable Environme~tal law. I. Upon Ler~der's request and at any rime, Mo~gagor ag~e~-~s, az Mortgager's expense, to er~gage a environmental engineer [o prepare an environl~ental audi~ o~ ~l~e P~ope~W and ~o submit ~l-~e resuhs eL sucl~ audit to Lender. The choice of zhe environmental e~gineer who will perform such audit is subject [o I_er, de~'s app~ J. Lender has the right, but not the obligation, to perfo~ a~y o[ Mortgager's obligatior~s ~llidel d-~is sec[~t Mortgager's expense. K. As a consequence of any breach of any representations, w~-~[~[y o~ promise made in this sec[ion, ('l) will indemnify and hold Lender and Lender's successors o~ ~ssigns harmless fro~ a~d against all losses, demands, liabilities, damages, cleanup, response and ~:~edia[ion costs, per, allies al~d expenses, inch~di~lg without Ii, hi[aden all costs of litigation and attorneys' fees, wl~i~:b I_e~der and Lender's successurs or assig~,s may sustain; and (2) az Lender's discretion, Lender may release d~is Mortgage and i~ ~e~nr~ Mo~[ga0or will p~ovicle Lender with collateral eL aL leas~ equal value to the Prope~y secured by this Mortgage wi]bout prejL~dice to any Lender's rights under d~is Mortgage. L. Notwithstanding any of the language contained in ~his Mortgafle [o d~e contrary, the [er~ns of tl~is sediio¢t st~all survive any foreclosure or satisfaction eL this Mortgage regardless of any passage o~ ~i[le [o Leander or any disposition by Lender of any or all of the Property. Any claimers a~d defe~ses zo the contrary are I~e~eby waived. 19. CONDEMNATION. Mor~gagor will give Lender prompt notice of any action, real or d~ea~ene(l, by priw~te o~ public entities to purchase or ~ake any or all of the Property, including any easements, zhrough conde~r~nadon, e~i~ent do~nai~, or any o~her means. Mortgagor fur[her agrees to n0dfy Lender eL a~y proceedings instituted for d-~e establish~nen~ o¢ any sewer, water, conservation, ditch, drainage, or ortner district ~el~ti~g [o or bi~di~g upo~ the Prope~W o~ a~W pa, t eL Mortgagor aud~orizes Lender to intervene in Mortgager's name i~ a~y of ~he above described actions o~ clain~s a~d collect and receive all sums resulting from d~e action or claim. Mo~'tgago' assigns to [_e~der d-~e p~oceeds of any award or claim for damages connected with a condemnation or other [aki~g ~t ~11 or any p~r~ of the ProperW. Sucl~ proceeds shall be considered paymenzs and will be applied as provided in d~is Mo~gage. This assignmen~ o[ proceeds is s~bject [o tl~e terms of any prior mortgage, deed of trLJst, security agreement or otl~c~ lien docoment. (page 5 of ~ ~ 1993, 200] Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/]6/2003 20. INSURANCE. Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the Property insured against loss by lire, [hef! and other hazards arm risks leasonably associated with the Property dele to its type and Iocatio~. Qtl~er I~azards and risks may include, for example, coverage against loss due to floods or flooding. This insulance shall be maintained Jn die a~noun[s and roi [l~e periods that Lender requires. What Lende~ requires pursum~t ~() [l~e preceding two sen[el-lees ca~ change (h~ling tile term of the Secured Debt. The insurance carrier providi~g the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably wnhheld. If Mortgagor fails To maintain tile coverage described above, Lender may, at Lender's option, obtain coverage to protect Lendel's rigl~ts m tile P~ope~ty according to the terms of this Mortgage. All insulance policies and renewals shall be acceptable to Lelldel and shall inchlde a star~dald "lrmltgage clause" and, where applicable, "lender loss payee clause." Moltgagor sl~all hnmediately notify lender of cancellalion gl termination of Ihe insurance. Lender shall have the right ~o Imld [l,e policies and lenewals. I[ l e~del req~dres, Mortgagor shall immediately give ~o Lender all receipts o¢ paid premitm-~s and renewal nodces~ ~1)o~ h~ss, Mortgagor shall give immediate notice [o the insurance ca~rie~ a:~d Lender. Lender may n~ake p~oof of loss if n(~ made immediately by Mortgagor. Unless Lender and Mortgagor otherwise agree in writing, i~/sulance proceeds shall be applied to restoralion or repair of the Property damaged it the restoration or repai~ is economically feasible and Lender's seculity is lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, insurance proceeds shall be applied To the Secured Debt, wl~ether or not then due, widt ally excess paid to Mortgagor. If Mortgagor abandons the ProperW, or does no! a~lswel wid,in 30 days a notice [rom Lende[ [l~a[ the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds, l e,~de[ may use the proceeds to repair or restore the Property or to pay the S~cured Debt whether or not the~l due. the 30 (:lay period will begin when the notice is given. Unless Lender and Mortgagor otherwise agree in wit:ring, al~y application of proceeds lo princil)al shall'not 'extend or postpone the due date of scheduled payments or chalige tile amount of the paylnenls. If die Plope~W is acquired by Lendel, Mortgagor's righ~ to any insurance policies and proceeds resulting flora damage m tile PropelW before il~e acquisition shall pass to Lender 1o the exlel~[ of the Secured Deb[ im~nedialely belgie acquisition. Mol[gagor agrees [o maintain comprehensive general liability insurance naming lender as an addilio~iat ii,sured an amount acceptable [o Lender, insuring against claims arising from any accident or occmrence ProperW. Mortgagor agrees [o maintain renzaJ loss or business Jnterrtll)iion insurance, as required by Lender, in an equal ~o at least coverage gl one year's debt service, a~ld reqtmed escrow accoun~ deposits (if agreed separately in writing), under a [orm of policy accepiable [o Lender. 21. NO ESCROW FOR TAXES AND INSURANCE. Unless otherwise plovided in a separate agreement, Mort0ago, will not be required to pay to Lender funds for taxes and insurance in escrow. 22. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mo~tgagol will provide to Lendel upoll request, ally fine, total statement or information Lender r'nay deem necessary. Uottgago~ wa~a~ls d~at all financial s~atemems and infor~nalion Mortgagor provides to Lender are, or will be, accurate, correct, a~ld complete. Moltgagor agrees to sign, deliver, and hie as Lender may reasonably request any additional documents or certifications that Lender may conside~ necessary to perfect, continue, and preserve Mortgago~'s obligations under this Mot tgage and I_ende~'s lien SIalLIS on the t~roperty, it Mortgagor fails [o do so, Lender may sign, deliver, and file such docurnenls gl ce~li[ica[es in Mortgagor's na~ne arid Mortgagor hereby irrevocably appoints Lender or Lender's agent as a~[~)n~ey in fac[ ~o do the fl'dngs necessmy to co~nply with this section. 23. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties Llnder this Mol[gage are joint and individual. If Mortgagor signs this Mortgage but does n(x sign the Evidence of Debt, Mortgago~ does so only to moltgage Mortgagor's interest in the Property to secure payment gl the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. Mortgagor agrees tiaa! lender and any party lo this Mortgage may extend, modify or make any change in the terms of this Mortgage or the Evidence of Debt without Moltgagor's conse~lt. Sucll a change will not release Mo, tgagor from tile terms of this Mortgage. l-lie duties and benefits ot this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender. If this Mortgage secures a guaranty between Lender and Mortgago, a~d does not directly secure tile obligation which is guarantied, Mortgagor agrees to waive any rights that may prevent[ Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation including, but ~lot limited to, anti-deficiency gl one-action laws. ~'~Lc:~ © 1993, 2OO1 Bankers Systems, Inc., Sl Cloud MN Form AGCO-RESI-WY 11161200:J (page 6 o1: 8) 24. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This Mo~t~j~ge is governed by d~e laws of die jurisdictioR which Lender is located, except [o the extort otherwise requiled hy tl~e laws of the julisdiction whole d~e Propel[y is located. This Mortgage is complete aRd fully integrated. This M~ltgage may ROt be ame~lrled ~l' modified by oral agreement. Any section or clause in this Mortgage, attachme~ts, o~ ally agreement role'ted to the Sectl~ed Deb[ that conflicts with applicable law will not be effective, tlRless that law explessly or implJedly penn[ts die variations by written agreement. If any section or clause of this Mortgage caRRot be ~.'~d:~rced according to its ten-ns, that secdon or clause will be severed and will not affect the enforceability of the relnainder of this Mortgage. Whenever used, die si~l§ular sl~all include the plural and the plural d~e singular. The captions arid I~eadings of the sections of dlis Mortgage are convenience only and are ~o[ to be used to interpret or define the [e~r~s of this Mortgage. -lime is of the esse~ce in fids Mortgage. 25. NOTICE. Unless otherwise required by law, any notice shall be given by deliver[hr3 it or by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or ~o ~ny othel address designated ir~ wliti~g Nodce to ol~e mortgagor will be deemed to be nodce to all rnortgagors. 26. WAIVERS. Except to the extent prohibited by law, Mortgagor wt:~ives any right regarding the rnarsl~allir~g of liel~s and assets and all homestead exemption rights relating to the Property. 27. U.C.C. PROVISIONS. If checked, the following are applicable to, bt~! do not limit, this Mcr*gage: Construction Loan. Tills Mortgage secures an obligation il~cu~ed for the construction ct an imp~overnel~t oil the Property. Fixture Filing. Mortgagor grants ~o Lender a security interest i~ all goods that Mortgagor owns now or in future and tl~at are or will become fixtures related to the Property. Crops; Timber; Minerals; Rents, Issues and Profits. Mortgagor grants to Lender a sect~lity interest in all clops, timber and mine[als located on tl~e Property as well as all re,,ts, issues, and plofits gl: them iRcluding, but ~l)t limited to, all CoRservation Reserve Program (CRP! arid Pay~nent in Kind (PIK) payn~ents arid similar goverlir/~emal programs (all of which shall also be included in the term "P,{~pe~W"). Personal Property. Moltgagor grants to Lender a security i{~telest in all personal property Igc'areal on o~ connected with the Property. This security interest includes all farm plOd[lc[s, i~ventory, equipment, accounts, dock,merits, instruments, chattel paper, general intangibles, and all ott~e~ it~,~ms of personal property Mortgagor owns now or the future aRd that are used or useful iR the construction, owr~ership, operation, maRageme~t, or maintenaRce of the Propelty. The term "persona! property" specifically excludes tl'~a[ property described as "llot~sel~old goods" secured in connection with a "consumer" loan as those te~ms are defined in applicable federal regulations governing unfair and deceptive cledit practices. Filing As Financing Statement. Mortgagor agrees and ackllowledges d~at this Mortgage also suffices as a financing statement and as such, may be filed of record as a fin,,nc[no statement fo[ purposes of Article 9 of tile Uniform Commercial Code. A carbon, photographic, image gl other reproduction of tills Mol[gage is st~tficiem as a financing statement. 28. OTHER TERMS. If checked, the following are applical~le to this [] Line of Credit. The Secured Debt includes a revolving line ~1' cledit provision.,AIIhoucjh the Secured Debt may he reduced to a zero balance, this Mortgage will remaiR in effect untd ~eleased. [] Separate Assignment. The Mortgagor has executed or will execute a separate assignment of leases and the separate assignment of leases aRd tORtS is properly executed and lecorded, thel~ the separate assign~ne~d will supersede this Security Ins[rul-~3eRt's "Asslgnmen~ of [ eases a~,d I~ents" section [] Additional Terms. 1993, 2001 Ba~kers Systems, Inc., St Cloud MN Form AGCO-RESI-W¥ 1/16/2003 C'. E SIGNATURES: 13y SJgflJllg below, Mortgagor agrees to the ten-ns a~nd covenants cootained in [l"~Js Mortgage ~nd Jrt any attachments. Mortgagor also acknowledges receipt of a copy of this Mortgage on the date slated above on Page 1. [] Actual authoriw was granted to [l~e parties sigDing below by resolulion signed and dated Enlity Name: TE~N CHICHINSKY (Date) (Signature) (DateJ (Signatuce) (Date) [] Refer to the Addendum which is a~tached and incorpo~,ted herein for additional Mortgagors, signatures and acknowledgments. ACKNOWLEDGMENT: STATE OF WYOMING , COUNTY OF This instrument was acknowledged beforeme d~is l lTH day of AUGUST 2004 by S..__TEVFN CHICHINSKY: CAROLYN CIt CH NSKY, HUSBAND AND WIFE, AS TENANTS BY THE ENTIRETIE_S My commission expires;. · L (Notary P-~lblic) STATE OF , COUNTY OF This instrument was acknowledged before me this by day of SS. ITitle(s): My commission expires: on bellalf of llle btlsilies$ or eltlJty. (Notary Public) 1993, 2OO1 Bankers Systams, Inc., St. Cloud, MN Form AGCO RESI-WY 1/16/2003