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180
RECEIVED
t_lhlOOLN OOUNTY CLERK
3:36
0414
RECORDATION REQUESTED BY:
Centennial Bank, Inc.
Ogden Branch
4605 Harrison Boulevard, Suite//1
Ogden, UT 84403
WHEN RECORDED MAIL TO:
Centennial Bank, Inc.
Ogden Branch
4605 Harrison Boulevard, Suite #1
Ogden, UT 84403
SEND TAX NOTICES TO:
Centennial Bank, Inc.
Ogden Branch
4605 Harrison Boulevard, Suite #1
Oflden, UT 84403
SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY
~<~ Ib\~ MORTGAGE
THIS MORTGAGE dated September 13, 2004, is made and executed between DOUGLAS L HARTMAN
address is 1921 BERRY DR, KEMMERER, WY 83101 (referred to below as "Grantor") and Centennial Bank, Inc.,
whose address is 4605 Harrison Boulevard, Suite//1, Ogden, UT 84403 (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 property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all
easements, rights of way, and appurtenances; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or
irrigation rights); and all other rights, royalties, and profits relatinc.} to the real property, including without limitation all minerals, oil, gas,
geothermal and similar matters, (the "Real Property") located In LINCOLN County, State of Wyoming:
Lots I and 2 of Block 4 of the Lincoln Heights 5th Addition, Third Filing, to the City of Kemmerer, Lincoln
County, Wyoming as described on the official plat filed Au9ust 6, 1995 as Instrument No. 641092 of tim
records of the Lincoln County Clerk.
The Real Property or its address is commonly known as 2000 BERRY DRIVE, KEMMERER, WY 83101. The Real
Property tax identification number is 12-2116-23-3-04-038.00
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, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS
GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (Bi PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE,
THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY
INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS ALSO GIVEN TO SECURE ANY AND ALL OF GRANTOR'S OBLIGATIONS UNDER
THAT CERTAIN CONSTRUCTION LOAN AGREEMENT BETWEEN GRANTOR AND LENDER OF EVEN DATE HEREWITH. ANY EVENT OF
DEFAULT UNDER THE CONSTRUCTION LOAN AGREEMENT, OR ANY OF THE RELATED DOCUMENTS REFERRED TO THEREIN, SHALL ALSO
BE AN EVENT OF DEFAULT UNDER THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:
PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this
Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by
the following provisions:
Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; {2)
use, operate or manage the Property; and (3) collect the Rents from the Property.
Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform all repairs, replacements, and maintenance
necessary to preserve its value.
Compliance With Environmental Laws. Grantor represents and warrants to Lendur 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, about or from the Property; {2) Grantor bas no knowledge of, or reason to believe [hat 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, treatment, disposal, release or thruatened release of any Hazardous Substance on, under.
about or from 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 previously disclosed to and acknowledged by Lender in writing. (a) neither
Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of
or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance
with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Gramor
authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem
appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be
for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other
person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for
Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in [he
event Grantor becomes liable for cleanup 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 sustain or suffer
090 31 0
0415
.dan No: 3851840-3 MORTGAGE
(Continued)Page 2
resulting from a breach of this section of the Mortgage or as a consequence of any use. general on, manufacture, storage, disposal, release
or threatened release occurring prior 1o Grantor's ownership or interesl Jn the Property, whether or not the same was or should have been
known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify, shall survive the payment of the
Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition et any
interest in the Property, whether by foreclosure or otherwise.
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 foregoing, Grantor will not remove, or grant to any other
writtenParty theconsent.right to remove, any timber, minerals {including oil and gas}, coal. clay, scoria, soil, gravel or rock products without Lender's prior
Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written
consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory 1o Lender to
replace such Improvements with Improvements of at least equal value.
Lender's Right to Enter. Lender and Lender's agents and representatives may enter Ul)On the Real Property at all reasonable times to attend
to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions el this Mortgage.
Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter
in effect, of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest m good faith any such
law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified
Lender in writing prior to doing so and so long as, Jn Lender's sole opinion, Lender's inleresls in the Property are not jeopardized. Lender
may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender. to protect Lender's interest.
Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in additton to tllose
acts set forth above in this section, which from the character and use el the Property are reasonably necessary to protect and Preserve the
Property.
~STRUCTION LOAN. If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete
struction of any Improvements on the Property, the Improvements shall be completed no later than the maturity date el the Note {or such
er date as Lender may reasonably establish} and Granlor shall pay in full all costs and expenses n connection with the work. Lender will
urse loan proceeds under such terms and conditions as Lender may deem reasonably necessary to insure that the interest created by
tgage shall have priority over all possible liens, including those of material suppliers and workmen Lender may require, among other things.
disbursement requests be supported by receipted bills, expense affidavits, waivers el liens, construction progress reports, and such other
Imentation as Lender may reasonably request.
ES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage:
Payment. Grantor shall pay when due {and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water
charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or
services rendered or material furnished to the Property. Grantor shall maintain the Properly free et any liens having pnority over or equal to
the interest of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes
and assessments not due as further specified in the Right to Contest paragraph.
light to Contest. Grantor may withhold payment of any tax. assessment, or claim *n connection with a good faith dispute over the
)bligation to pay, so long as Lender's interest in the Property is not jeopardized.
3ranter shall within fifteen {151 days after the lien arises or, if a lien is filed, within If a lien arises or is filed as a result of nonpayment
fifteen { 15) days after Grantor has not ce of the filing,
;acura the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sulticien[ Corporate Surety bond or other security
:atisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue
,s a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse
3eJdgmentcontestbef°reproceedings.enf°rcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in
vidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
leUth°riZeproperty.the appropriate governmental official to deliver to Lender at any time a written statement et the taxes anO assessments against
otice of Construction. Grantor shall notify Lender at least fifteen {15} days before any work ~s commenced, any services are lumlshed, or
~Y materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lie~n could be asserted on account of the
ork, Services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender thai Granto[
m and will pay the cost of such improvements.
R'FY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a I)art of this Mortgage:
aintenance of insurance. Granlor shall procure and maintain policies of fire insurance with standard extended COverage endorsements on
replacement basis for the full insurable value covering all Improvements on the Real Property n all amount sufficient to avoid application
any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies
d in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of COverage from each insurer
ntaining a stipulation that coverage will not be cancelled or diminished without a minm'mm el thirty 130) days' prior written notice to
~der and not containing any disclaimer of the insurer's liability for failure to give such nor~ce Each insurance policy also shall include an
:lorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default el Grantor or any
mr person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Managemetlt Agency as
peciaJ flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance. it available, within 45 days after notice is given
Lender that the Property is located in a special flood hazard area, for the full unpaid pritlcipal balance of the loan and any prior liens on
property securing the loan, up to the maximum policy limits set under the National Flood Jnst~rallce Program, or as otherwise required by
~der, and to maintain such insurance for the term of the loan.
)lication of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss it
ntor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
:tion, receive and retain the proceeds of any insurance and apply the proceeds to the reduction el the Indebtedness. payment of any lien
cling the Property, or the restoration and repair o[ the Property. If Lender elects to apply the proceeds to restoration and repair Grantor
MORTGAGE
.aah No: 3851840-3
(Continued) Page 3
shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of
such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default
under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not
committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to
pay accrued interest, and the remainder, if any, shall be applied to the principal balance o! the Indebtedness. If Lender holds any proceeds
after payment in full at the Indebtedness, such proceeds shall be paid to Grantor as Grontor's interests may appear.
.ENDER'S EXPENDITURES. If Grantor fails (A) to keep. the Property free of all !'axes, liens, security interests, encumbrances, and other claims.
B) to provide any required insurance on the Property, or lC) to make repairs to [he Property then 'Lender may do so. It any action or
roceeding is commenced that would materially affect Lender's interests in the Property, then Lender orl Grantor's behalf may. but m no!
~quired to, take any action that Lender believes to be appropriate to protect Lender's in!crests. All expenses incurred o~ paid by Lender
uch purposes will then bear interest at the rate charged under the Note from the date ii~curred or paid by Lender to the date o! repayment by
;ran!or. All such expenses will become a part of the Indebtedness and, at Lender's oprio~, will lA) be payable on dem~ne; lB) be added
~e balance of the Note and be apportioned among and be payable with any installment payments to become due during either {~) the term al
ny applicable insurance policy; or (2) the remaining term of the Note; or lC) be treated as a balloon payment which will be due and payable
t the Note's maturity. The Mortgage also will secure payment of these amounts. The fights provided for in this paragraph shal be .~ addition
) any other rights or any remedies to which Lender may be entitled on account al any de(ault. Any such action by Lender shall no! be
ohs!rued as curing the default so as to bar Lender from any remedy that ii otherwise would bare had.
/ARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership o! the P~operty are a part of this Mortgage:
Title. Grantor warrants that: la) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all hens
and encumbrances other than those set forth in the Real Property description or in a~y title insurance policy, title report, or final rifle opinion
issued in favor of, and accepted by, Lender in connection with this Mortgage, and lb) Grantor has the full right, power, and authority to
execute and deliver thia Mortgage to Lender.
Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against
the lawful claims of all persons, In the event any action or proceeding is commenced tbat questions Grantor's title or the ~nterest of Lender
under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but
Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of LendeFs own choice, and
Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such
participation.
Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws,
ordinances, and regulations of governmental authorities.
Survival of Premises. All promises, agreements, and statements Grantor has made in this Mortgage shall survive the executian an~ delivery
of this Mortgage, shall be continuing in nature and shall remain in full force and effect until such time as Grantor's Indebtedness is paid in
full.
:)NDEMNATION. The following provisions relating 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 the action and obtain the award. Grantor n~ay be the nominal parry in such proceedb~g, but
Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor
will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to rime ro
permit such participation.
Application of Net Proceeds. If all or any part of the Property is condemned by eminen! domain proceedings or by a~y proceechn~l o~
purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to
the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after paymem o! ali
reasonable costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation.
POSITION OF TAXES. FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The tallowing provisions relating to government~ [axes.
;s and charges are a part of this Mortgage:
Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take
whatever other action iS requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for
all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without
limitation all taxes, fees, documentary stamps, and other charges for recording or registeri~g this Mortgage.
Taxes. The following shall constitute taxes to which this section applies: (t) a specific tax upon this type of Mortgage or upon all or any
part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct !rom
payments on the Indebtedness secured by this type of Mortgage; (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 port[on of the Indebtedness or on payments of principal and interest made by
Grantor.
Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date al this Mortgage, this event shall have the
same effect as an Event of Default, and Lender may exercise 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 delinquent, or (2) contests the tax as provided above in the Taxes and Liens
section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
,~URITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of
J Mortgage:
Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and
Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time.
Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and conJinue Lender's
security interest in the Personal Property. In addition to recording this Mortgage in the leal property records, Lender may, at any [~me and
without further authorization from Grantor, file executed counterparts, copies or reJ)rodLlctio~s of this Mortgage as a financing sta[eme~tl.
Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upo~ default Grantor shall hal
0417
Loan No: 3851840-3 MORTGAGE
(Continued) ~~ .. Page 4 :
remove, sever or detach the Personal Property from the Property. Upon default, Grab-tot 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 f3j
days after receipt of written demand from Lender to the extent permitted by applicable law.
Addresses. The mailing addresses of Grantor {debtorJ and Lender {secured party) from which information concerning the security interesl
Mortgage.granted by this Mortgage may be obtained {each as required by the Uniform Commgrcia] Coder are as stated on the first Pa0e of tl3~$
Vlortgage:FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to lurther aSsurances'and' attorney-in-fact are a part of thru
Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or wdl cause to
be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refile~J or
rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mcrlgages'
deeds of trust, security deeds, security agreements, financing statements, contiouat~on statements, ~nstruments of further assurance.
certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete. I~ertect.
continue, or preserve (1] Grantor's obligations under the Note, this Mortgage, and the Related Documents. and {2} the Irons and
security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired bv Grantor.
Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred m
connection with the matters referred to in this paragraph.
Attorney-in-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender bnay 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 tot the
purpose of making, executing, delivering, filing, recording, and doing all other thiorjs as may be necessary or desirable, in Lender's sole
opinion, to accomplish the matters referred to in the preceding paragraph.
JLL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under
,is Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any
lancing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by
)plicable law, any reasonable termination fee as determined by Lender from time to time.
/ENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Mortgage if any of the following happen:
Payment Default. Grantor fails to make any payment when due under the Indebtedness.
Default on Other Payments. Failure of Grantor within the time required by this Mortcjage to make any payment for taxes or insurance, or
any other payment necessary to prevent filing of or to effect discharge of any lien.
Break Other Promises. Grantor breaks any promise made to Lender or fails to perlorm proml~tly at the time and strictly in the manner
provided in this Mortgage or in any agreement related ~o this Mortgage.
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 false or misleading in any material respect, either now or ar the time made or furnished.
Defective Collaterallzatlon. This Mortgage or any of the Related Documents ceases [o be in full force and effect (including failure el any
collateral document to create a valid and perfected security interest or lienl at any time and for any reason.
Death or Insolvency. The death of Grantor. the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement el 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 other of Grantor's property in which
Lender has a lien. This includes taking of, garnishing of or levying on Grantor's accounts wilh Lender. However. if Grantor disputes in
good faith whether the claim on which the taking of the Property is based is valid or reasonable, and if Grantor gives Lender written notice
not°f theapply.claim and furnishes Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will
Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not
remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other
obligation of Grantor 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 the validity of, or liability under, any Guaranty of the indebtedness. In the event of a death, Lender, at its option, may, but shall
not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner
satisfactory to Lender, and, in doing so, cure any Event of Default.
Insecurity. Lender in good faith believes itself insecure.
Right to Cure. If any default, other than a default in payment is curable and if Grantor Ilas not been given a notice of a breach of the same
provision of this Mortgage within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender
demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than lifteen (15~ days,
immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and
completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.
ITS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default aha at any time thereafter, Lender. at Lender's option, may
:isa any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law:
Accelerate Indebtedness. Lender shall have the right at its option without notice to Grar~or to declare the entire Indebtedness ~mmed~ately
due and payable, including any prepayment penalty which Grantor would be required to i)~W.
underUCC Remedies.the UniformWithcommercialrespect recede.all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party
Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property, including during the pendency of
090;3 LS0
Loan No: 3851840-3 MORTGAGE
. {Continued}
~ Page 5
foreclosure, whether judicial or
non-judicial, and collect the Rents, including amounts past --'
and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user et the
Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates
eeds. over
Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the Same
and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for
which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under th~s
subparagraph either in person, by agent, or through a receiver.
Appoint Receiver. Lender shall have the right to have a receiver appointe'd to take possession of all'or any part of the Property, wilh the
power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the
Property and apply the proceeds. Over and above the cost of the receivership, against the Indebtedness. The receiver may serve without
bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property
exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver.
Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property.
Nonjudicial Sale. Lender may foreclose Grantor's interest in all or in any part of the Property by non-judicial sale, and specifically by "pOwer
of sale" or "advertisement and sale" foreclosure as provided by stat:ute.
Deficiency Judgment. If permitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due
to Lender after application of all amounts received from the exercise of the rights provided in this section.
Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise
becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the
purchaser of the Property and shall, at Lender's option, either {1) pay a reasonable rental for the use of the Property, or (2i vacate the
Property immediately upon the demand of Lender.
Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity.
Sale of the Property. To the extent permitted 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 to sell all or any part of the Property together or separately, in one sale or by
separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property.
Notice of Sale. Lender will give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time
after which any private sale or other intended disposition of the Personal
given at least ten (10) days before the time of the sale or disposition. Any Property is to be made. Reasonable notice shall mean notice
any sale of the Real Property. sale of the Personal Property may be made in conjunction with
Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by
Lender to choose any one remedy will not bar Lender from using any other remedy. If Lender decides to spend money or to perform any et
Grantor's obligations under this Mortgage, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare
Grantor in default and to exercise Lender's remedies.
Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of tile terms of this Mortgage, Lender shall be entitled to
recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is
involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time
for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear
interest at the Note rate 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 attorneys' fees and Lender's legal expenses whether or not there Js a lawsuit,
including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure
reports), surveyors' reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any
;ourt costs, in addition to all other sums provided by law.
CES. Any notice required to be given under this Mortgage, including without limitation any notice of default and any notice of Sale shall be
in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when
;ired with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certilied or
ered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies el notices el foreclosure from
)lder of any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage.
)arson may change his or her address for notices under this Mortgage by giving formal written notice to the other person or persons,
ying that the purpose of the notice is to change the person's address. For notice purposes, Grantor agrees to keep Lender informed at all
of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender
' Grantor is deemed to be notice given to all Grantors. It will be Grantor's responsibility to tell the others of the notice from Lender.
"LLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage:
mendments. What is written in this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the
~atters covered by this Mortgage. To be effective, any change or amendment to this Mortgage must be in writing and must be signed by
'hoever will be bound or obligated by the change or amendment.
aption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the
ovisions of this Mortgage.
~verning Law. This Mortgage will be governed by and interpreted in accordance with federal law and the laws of the State of Utah,
:cept and only to the extent of procedural matters related to the perfection and enforcement of Lender's rights and remedies against the
operty, which will be governed by the laws of the State of Wyoming. However. if there ever is a question about whether any provision of
is Mortgage is valid or enforceable, the provision that is questioned will be governed by whichever state or federal law would find the
)vision to be valid and enforceable. The loan transaction which Is evidenced by the Note and this Mortgage has been applied for,
nsidered, approved and made, and all necessary loan documents have been accepted by Lender in the State of Utah.
oice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Weber County,
)re el Utah.
09031S0
0419
nan No: 3851840-3 MORTGAGE
(Continued)
Page 6
No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under this Mortgage unless Lender does so ~n
writing. The fact that Lender delays or omits to exercise any right will not mean that Lender has gwen up that right. If Lender does agree
in writing to give up one of Lender's rights, that does not mean Grantor will not have to comply with 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 the situation happens again. Grantor further understands that just because Lender consents to one or more of Grantor's requests,
that does not mean Lender will be required to consent to any of Grantor's future requests. Grantor waives presentment, demand for
payment, protest, and notice of dishonor. Grantor waives all rights of exemption from execution or similar law in the Property, and Grantor
agrees that the rights of Lender in the Property under this Mortgage are prior to Grantor's rights while this Mortgage remains in effect.
Severability. If a court finds that any provision of this Mortgage is not valid or should not be enforced, that fact by itself will not mean that
the rest ot this Mortgage will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Mortgage even if a
provision of this Mortgage may be found to be invalid or unenforceable.
Merger, There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any
time held by or for the benefit of Lender in any capacity, without the written consent ol Lender.
Successors and Assigns. Subject to any limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be b~nding
upon and inure to the benefit of the parties, their successors and assigns. If ownersh~ 3 ot the Prooerty becomes vested
than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reterence~to this Mortgage and n a person other
~he Indeb[edness
by way of forbearance or extension without releasing Grantor from the obligations ol tl~s Mortgage or liability under the Ind 9btedness.
Time is of the Essence. Time is of the essence in the performance of this Mortgage.
Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benehts of the homestead exemption laws of the State
of Wyoming as to all Indebtedness secured by this Mortgage.
:INITIONS. The following words shall have the following meanings when used in this Mortgage:
Borrower, The word "Borrower" means DOUGLAS L HARTMAN and includes all co-signers and co-makers signing the Note.
Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances
relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act o! 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and
Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S C. Section ! 801, et seq.,
the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq,, or other applicable state or federal laws rules, or
regulations adopted pursuant thereto.
Event of Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage in the events ol delault
section of this Mortgage.
Grantor. The word "Grantor" means DOUGLAS L HARTMAN.
Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including
without limitation a guaranty of all or part of the Note.
Hazardous Substances. The words "Hazardous Substances" mean materials that, hecause of their quantity, concentration or physical,
chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when
improperly used, treated, stored, disposed of, generated manufactured, transported or otherwise handled.
Substances" are used in their very broadest ' The words "Hazardous
sense and include without limitation any and all hazardous or toxic substances, materials or
waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum
and petroleum by-products or any fraction thereof and asbestos.
Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the
Real Property, facilities, additions, replacements and other construction on the Real Property.
Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or
Related Documents, together with all renewals of, extensions of, modifications of, consohdations of and substitutions tot ~lle Note or
Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to
~nforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage.
)erson'ender'or ThecompanyWOrd that"Lender"acquiresmeanSany interestCentennialin theBank'Note.lnc" its successors and assigns. The words "successors or assigns" mean any
Vlortgage. The word "Mortgage" means this Mortgage between Grantor and Lender.
~ote. The word "Note" means the promissory note dated September 13, 2004. in the original principal amount of
) 144,800.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings oi, consolidations ol,
JOTEmd substitutiOnScoNTAiNS forA VARIABLEthe promissorYiNTEREsTnote OrRATE.agreement. The maturity date of this Mortgage ~s June 14 2005. NOTICE TO GRANTOR: THE
'ersonal Property. The words "Personal Property" mean a equipment, fixtures, and other articles of personal property now or hereafter
wried by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all
-~placements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance
roceeds and refunds of premiums) from any sale or other disposition of the Property.
roperty. The word "Property" means collectively the Real Property and the Person al Pro perry.
eal Property. The words "Real Property" mean the real property, interests and rights, as iurther described in this Mortgage.
elated Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, enwronmental
;Ireements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments.
;Ireements and documents, whether now or hereafter existing, executed in connection w~th tile Indebtedness.
~eantS'Property.The word "Rents" means all present and future rents, revenues, income, issues· royalties, profits, and other benefits derived from
,an No: 3851840-3
MORTGAGE
(Continued)
Page 7
:ANTOR ACRNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS.
INDIVIDUAL ACKNOWLEDGMENT
~TE OF Wyoming
! SS
JNTY OF l,-f non] ri }
HaT tma nn
this day before me, the undersigned Notary Public, personally appeared DOUGLAS L HAI~T-M~N to me known to be the individual described
nd who executed the Mortgage, and acknowledged that he or she signed the Mortgage as his or her I'ree and voluntary act and deed. for [ne
s and purposes therein mentioned.
'n~eaUhis 16th dayof September .go 04
ary Public in au the Sta~e of Wyoming
l{ COUNI~ (~ ~ STATE O~t {