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HomeMy WebLinkAbout90432890 328 REOEIVED COUNTY CLERK State of Wyoming Space Above This Line For Recording Data REAL ESTATE MORTGAGE (With Future Advance, Clause) DATE AND PARTIES. The date of this Mortgage is !1-01-2004 are as follows: MORTGAGOR-.' and the parties and their addresses SALT RIVER HOMES, LLC, A WYOMING LIMITED LIABILITY COMPANY P.O. BOX 3698 ALPINE, WY 83128 [] Refer to the Addendum which is attached and incorporated t~¢rein for additiOnal Mortgagors. 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 2. MORTGAGE. For good and valuable consideration, the receipt arm s.fficiency of which is acknowledged, and to secure the Secured Debt (hereafter defined), Mortgagor grants, bargains, conveys, mortgages and warrants to Lender, with the power of sale, the following described property: LOT 214 OF NORDIC RANCHES DIVISION NO. 13, LINCOLN COUNTY WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. The property is located in LINCOLN at 116 SPUR LOOP (County) · ETNA , Wyoming 83118 JAddress) tCdyl (Zip Code) 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 pr t)(lucers, and all existing and future improvements, structures, fixtures, and replacements that may now, or at any tn"ne m the future, be part of the real estate described above (all referred to as "Property"). The term Property also include,% but is not limited to, any and all water wells, water, ditches, reservoirs, reservoir s~tes and dams located on the ~eal estate and all riparian and water rights associated with the Property, however established. WYOMING - AGRICULTURAL)COMMERCIAL REAL ESTATE SECURITY INSTRUMENT (NOT R~P, FNMA :HLMI ~M © 1993, 2001 Bankers Systems, Inc., St. Cloucl, MN Form AGCO-RESI-WY 1/; 6 ~003 NSUMER PURPOSES} (page I of 8) '0700 MAXIMUM OBLIGATION LIMIT. The total principal amount of ti,:; Secured Debt (hereafter defined) secured by this Mortgage at any one time shall not exceed $156,000.00 . This limitation of amount does not include interest, loan charges, commitment fees, brokerage commissiu~s, attorneys' fees and other charges validly made pursuant to this Mortgage and does not apply to advances (or inre~ e.~t accrued on such advances) made under the terms of this Mortgage to protect Lender's security and to perform any of the covenants contained in this Mortgage. Future advances are contemplated and, along with other future obligations, ~e secured by this Mortgage even though all or part may not yet be advanced. Nothing in this Mortgage, however, .~hldl constitute a commitment to make additional or future loans or advances in any amount. Any such commitment wo~dd need to be agreed to in a separate writing. SECURED DEBT DEFINED. The term "Secured Debt" includes, but is not limited to, the following: A. The promissory note(s), contract(s), guaranty(les) or othe~ evidence of debt described below and all extensions, renewals, modifications or substitutions. (When referencm~j [he debts below it /s suggested that you include items such as borrowers' names and addresses, note pdn~//)a/ amounts, commercial revolving loan agreement's maximum amount, interest rates, var/able rate terms, maturity dates, etc.) PROMISSORY NOTE DATED 11-01-2004 iN THE AMOUNT OF H56,000.00 B. All future advances from Lender to Mortgagor or othe~ future obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of d~,q~t existing now or executed after this Mortgage whether or not this Mortgage is specifically referred to in thc uvidence of debt. C. All obligations Mortgagor owes to Lender, which now exist o~ may later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts r,%ting to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by Le~de~ roi insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and ~,~xper~ses incurred by Lender under the terms of this Mortgage, plus interest at the highest rate in effect, from time to time, as provided in the Evidence of Debt. E. Mortgagor's performance under the terms of any instrument[ evidencing a debt by Mortgagor to Lender and any Mortgage securing, guarantying, or otherwise relating to th~, d~,br. If more than one person signs this Mortgage as Mortgagor, eacl~ Mortgagor agrees that this Mortgage will secure all future advances and future obligations described above that are [jivc~ to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. This Mortgage will not securu ~Jny other debt if Lender fails, with respect to such other debt, to make any required disclosure about this Mortgage ol if Lender fails to give any required notice of the right of rescission. PAYMENTS. Mortgagor agrees to make all payments on the Secu~,d Debt when due and in accordance with the terms of the Evidence of Debt or this Mortgage. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assess~c~ts, liens, encumbrances, lease payments~ ground rents, utilities, and other charges relating to the Property when du~,~, l.e~der may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lic~ of this Mortgage. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses wlfich Mortgagor may have against parties who supply labor or materials to improve or maintain the Property. PRIOR SECURITY INTERESTS. With regard to any other morto~g~-;, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance ~ the Property and that may have priority over this Mortgage, Mortgagor agrees: A. To make all payments when due and tO perform or comply wid~ alt covenants. B. To promptly deliver to Lender any notices that Mortgagor rec~,lves from the holder. C. Not to make or permit any modification or extension of, a~d not to request or accept any future advances under any note or agreement secured by, the other mortgage, dued of trust or security agreement unless Lender consents in writing. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, dt;cl~e the entire balance of the Secured Debt to be immediately due and payable upon the creation of any lien, encu~d~ra~ce, transfer, or sale, or contract for any of these on the Property. However, if the Property includes Mortgagor's res~de, r~ce, this section shall be subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. For the ri,po ~f this section, the term "Property" also includes any interest to all or any part of the Property. This cow,q~ ~ 'un with the Property and shall remmn ~n effect until the Secured Debt is paid in full and this Mortgage is reh;~eu. ~___2¢'~-'~~ © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/~6/20~3 (page 2 of 8) 0 043 8 . ,. 9. TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortgag~l is an entity other than a natural pr (such as a corporation or other organization), Lender may demand immediate I~aymen! if (1) a beneficial interest in Mortgagor is sold or transferred; (2) there is a change in either the identity or numb~?,~ of members of a partnership or similar entity; or (3) there is a change in ownership of more than 25 percent of the w~tmg stock of a corporation or similar entity. However, Lender may not demand payment in the above situations if it is prot~ibited by law as of the date of this Mortgage. 10. ENTITY WARRANTIES AND REPRESENTATIONS. If Mortgagor is an entity other than a natural person (such as a corporation or other organization), Mortgagor makeS to Lender the following warranties and representations which shall be continuing as long as the Secured Debt remains outstanding: A. Mortgagor is an entity which is duly organized and validly ~xisdng in the Mortgagor's state of incorporation (or organization). Mortgagor is in good standing in all states i~ which Mortgagor transacts business. Mortgagor has the power and authority to own the Proper~y and to ca~y on its business as now being conducted and, as applicable, is qualified to do so in each state in which Mortga(jor operates. B. The execution, delivery and performance of this Mortgage; hy Mortgagor and the obligation evidenced by the Evidence of Debt are within the power of Mortgagor, haw~ been duly authorized, have received all necessary governmental approval, and will not violate any provision of law, or order of court or governmental agency. C. Other than disclosed in writing Mortgagor has not changed its name within the last ten years and has not used any other trade or fictitious name. Without Lender's prior w~itten consent, Mortgagor does not and will not use any other name and will preserve its existing name, trade ~ames and franchises until the Secured Debt is satisfied. 11. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor will give L~;nder prompt notice of any loss or damage to the Property. Mortgagor will keep the Property free of noxious weeds a~d grasses. Mortgagor will not initiate, join in or consent to any change in any private restrictive covenant, zoning o~dinance or other public or private restriction limiting or defining the uses which may be made of the Property or a~y pa~t of the Property, without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor or any other owner made under law or regulation regarding use, ownership ~,1 occupancy of the Property. Mortgagor will comply with all legal requirements and restrictions, whether public or priw~te, with respect'to the use of the Property. Mortgagor also agrees that the nature of the occupancy and use will not chan~je without Lender's prior written consent. 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 p~perty comprising a part of the Property that 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 deemed subject to the s,culity interest created by this Mortgage. Mortgagor shall not partition or subdivide the Property without Lender's prio~ w~itten consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of inspecting the Property. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in ao way rely on Lender's inspection. 12. AUTHORITY TO PERFORM. If Mortgagor fails to perform any of Mo~tgagor's duties under this Mortgage, or any other mortgage, deed of trust, security agreement or other lien docum~;nt that has priority over this Mortgage, Lender may, without notice, perform the duties or cause them to be performed, M.~tgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may do whatever is necessary to protect Lender's security interest in the Property. This may include completing the construction. Lender's right to perform for Mortgagor shall not create an obligation to perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Mortgage. Any amounts paid by Lender for insuring, preserving or otherwise protecting the Property a~d Lender's security interest will be due on demand and will bear interest from the date of the payment until paid i~ full at the interest rate in effect from time to time according to the terms of the Evidence of Debt. 13. ASSIGNMENT OF LEASES 'AND RENTS. Mortgagor assigns, grams, 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, guaranties and any other written or verbal agreements for the use and occupancy of the Property, including but not limih~,d to, any extensions, renewals, modifications or replacements (Leases). B. Rents, issues and profits, including but not limited to, s,,m~ity deposits, minimum rents, percentage rents, additional rents, common area maintenance charges, parkir~g charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages followi~g default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, mmu,~es, a"~c~counts, contracl rights, general intangibles, and all rights and claims which Mortgagor may have that i~ ~ ~y ~ay~,~ertain 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 m be p~o~ pro rty, this Assignment w a so be regarded asa security agreement. ~" ~ 1993. 2001 Bankers Sys, .... I .... St.'Cloud. MN Form AGCO-RESI-WY 1/16/2003 . . Mortgagor will promptly provide Lender with copies of the Leas~ ~r~(I will certify these Leases are true and correct copies. The existing Leases will be provided on execution of the As,~irjim-mnt, and all of the future Leases and any other information with respect to these Leases will be provided immedi.'d~,ly after they are executed. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is not in del,'~dL Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgagor first obtains Lender's w~ hten consent. Upon default, Mortgagor will receive any Rents in trust for Lender and Mortgagor will not commingle the Ilents with any other funds. When Lender so directs, Mortgagor will endorse and deliver any payments of Rents from tim Property to Lender. Amounts collected will be applied at Lender's discretion to the Secured Debts, the costs of ~ging, protecting and preserving the Property, and other necessary expenses. Mortgagor agrees that this Security In~t~t,nent is immediately effective between Mortgagor and Lender. This Security Instrument will remain effective du~imj m~y statutory redemption period until the Secured Debts are satisfied. Unless otherwise prohibited or prescribed by s~ze law, Mortgagor agrees that Lender may take actual possession of the Property without the necessity of commer~ci~g any legal action or proceeding. Mortgagor agrees that actual possession of the Property is deemed to occur when l.ender notifies Mortgagor of Mortgagor's default and demands that Mortgagor and Mortgagor's tenants pay all Rents ~1~.~ ~r to become due directly to Lender. Immediately after Lender gives Mortgagor the notice of default, Mortgagor ag~.~,~ that either Lender or Mortgagor may immediately notify the tenants and demand that all future Rents be paid directly m I u~der. As long as this Assignment is in effect, Mortgagor warrants and [eprese~ts that no default exists under the Leases, and the parties subject to the Leases have not violated any applicabh~' I,'~w on leases, licenses and landlords and tenants. Mortgagor, at its sole cost and expense, will keep, observe and Im~form, and require all other parties to the Leases to comply with the Leases and any applicable law. If Mortgagor or a~y pmty to the Lease defaults or fails to observe any applicable law, Mortgagor will promptly notify Lender. If Mortgag~ ~:glects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender's option, enforce c~nl~liance. Mortgagor will not sublet, modify, extend, cancel, or otherwise alte~ II~e Leases, or accept the surrender of the Property covered by the Leases (unless the Leases so require) without Lend~;~'s consent. Mortgagor will not assign, compromise, subordinate or encumber the Leases and Rents without Lender's i)~ior written consent. Lender does not assume or become liable for the Property's maintenance, depreciatiog, or o~1~,~ losses or damages when Lender acts to manage, protect or preserve the Property, except for losses and damages ~1~]¢.~ to Lender's .gross negligence or intentional torts. Otherwise, Mortgagor will indemnify Lender and hold Lender har~l~;~s for all liakiility,.Ioss or damage that Lender may incur when Lender opts to exercise any of its remedies against any l)~l~Y obligated under the Leases. 14. CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. If the Property includes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor's duties umler the covenants, by-laws, or regulations of the condominium or planned unit development. 15. DEFAULT. Mortgagor will be in default if any of the following occu~: A. Any party obligated on the Secured Debt fails to make pay~erd when due; B. A breach of any term or covenant in this Mortgage, any p~ior mortgage or any construction loan agreement, security agreement or any other document evidencing, gua~mdying, securing or otherwise relating to the Secured Debt; C. The making or furnishing of any verbal or written represent~di{~r~, statement or warranty t6 Lender that is false or incorrect in any material respect by Mortgagor or any perso~ ~ emily obligated on the Secured Debt; D. The death, dissolution, or insolvency of, appointment of a ~e(:eiver for, or application of any debtor relief law to, Mortgagor or any person or entity obligated on the Secured E. A good faith belief by Lender at any time that Lender ~s ns~,ct,~; with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment is imp;,i~ed or the value of the Property is impaired; F. A material adverse change in Mortgagor's business includH~u ownersh p, management, and financial conditions, which Lender in its opimon believes impairs the value of the Ih r~ mrty or repayment of the Secured Debt; or G Any loan proceeds are used for a purpose that will contribtm; m excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commod~ly, ~s further explained in 7 C.F. FI. Part 1940, Subpart G, Exhibit M. 16. REMEDIES ON DEFAULT. In some instances, federal and state law wtll ~equire Lender to provide Mortgagor with notice of the right to cure, mediation notices or other notices and may eM,~bhsh time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt ~ml foreclose this Mortgage in a manner provided by law if this Mortgagor is in default. At the option of Lender, all or any part of the agreed fees and ch;~:ges, accrued interest and principa shal become immediately due and payable, after gwing notice if required by h~w, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies 9rowded by law, the Evidence of Debt, other evidences of debt, this Mortgage and any related documents including w~lmut limitation, the power to sell the Property. All remedies are distinct, cumulative and not exclusive, and the Lende~ is entitled t,i~l remedies provided at ~aw or equity, whethe~ expressly set forthor not. The acceptance by Lender of a~y s[m~ in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure p~oceeding~r~ filed shall not constitute a waiver of Lender's right to require full and complete cure of any existing defmdt. By~t~ercising~ny remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the ewmt a d~ if it co~s or happens again. ' / ~I~1 I [~ J (page4ofS) 17. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagor b~uaches any covenant in this Mortgage. Mortgagor will also pay on demand all of Lender's expenses incurred in collecting, insuring, preserving or protecting the Property or in any inventories, audits, inspections or other examination by Lend~:~ in respect to the Property. Mortgagor agrees to pay all costs and expenses incurred by Lender in enforcing or protectir~j [ender's rights and remedies under this Mortgage, including, but not limited to, attorneys' f~es, court costs, and oth~;~ legal expenses. Once the Secured Debt is fully and finally paid, Lender agrees to release this Mortgage and Mortgagor agrees to pay for any recordation costs. All such amounts are due on demand and will bear interest from the time gl the advance at the highest rate in effect, from time to time, as provided in the Evidence of Debt and as permitted by 18. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As u,~ed in this section, (1) "Environmental Law" means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) "Hazardous Substance" means any toxic, radioactive or hazardo~m material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potenti~dly d[~ngerous to the public health, safety, welfare or environment. The term includes, without limitation, any substanc~;s dufined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environn~e~tzd Law. Mortgagor represents, warrants and agrees that, except as previously disclosed and acknowledged in writing: A. No Hazardous Substance has been, is, or will be located, hm~sported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in tl~~, o~dinary course of business and in strict compliance with all applicable Environmental Law. B. Mortgagor has not and will not cause, contribute to, or p~-;rn~it the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release o~ d~eatened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to mig~te from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such a~ event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Mortgagor has no knowledge of or reason to believe the~u i,~ any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Sub.~I~nce located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmunral Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there i'~ ~uW such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but ~ot tl-~e obligation, to participate in any such proceeding including the right to receive copies of any documents rela~in~j to such proceedings. E. Mortgagor and every tenant have been, are and shall rem~i~ in full compliance with any applicable Environmental Law. F. There are no underground storage tanks, priva'~e dumps o~ open wells located on or'under the Property and no such tank, dump or well will be added unless Lender first consents in writing. G. Mortgagor will regularly inspect the Property, monitor the activities and operations on the Property, and confirm that all permits, licenses or approvals required by any applicM~le Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lend,;r or Lender's agent to enter and inspect the Property and review all records at any reasonable time to det~lnine (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under o~ ~,bout the Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environm~,~u~ Law. 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 environmenta engineer who wi i~e~ form such audit is subject to Lender's approval. J. Lender has the right, but not the obllgat.ion, to perform ~,~ y of Mortgagor's obligations under this section at Mortgagor's exp~nse. - ....... K. As a consequence of any breach of any representation, w~r~;~nzy or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors o~ ~s,~gns harmless from and agmnst all losses, claims, demands, liabilities, damages, cleanup, response and ~u~nt~,d~ation costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, wluch Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, Lender may releas~ m~s Mortgage and in return Mortgagor will provide Lender with collateral of at least equal value to the Property ~ecured by this Mortgage without prejudice to any of Lender's rights under this Mortgage. L. Notwithstanding any of the language contained in this Mo~ujage ro the contrary, the terms of this section shall survive any foreclosure or satisfaction of this Mortgage ~egardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claiu~,~ and defenses to the contrary are hereby waived. 19. CONDEMNATION. Mortgagor will give Lender prompt notice of ~y action, real or threatened, by private or public entities to purchase or take any or al of the Property, including ~y easements, through condemnation, eminent domain, or any other means· Mortgagor further agrees to notify Lender of any proceedings instituted for the establishment of any sewer, water, conservation, ditch, drainage, or other district rela~i~!j to or binding upon the Property or any part of it. Mortgagor authorizes Lander to Intervene in Mortgagor's name in rtl~y o'tbe above described actions or claims and to collect ana' receive all sums resulting from the action or claim. Mo~[~jagor~/~s~ns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking ot ~11 q~r ar~y part of tl~j Property. Such proceeds shall be considered payments and will be applied as provided in this Mo~tgr~q~l ,This ass~gnmbr~t o,f~' ~roceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or olh~;r ii~,~,'d~urn~,~__~ (page ~ of 8) ~u ©1993, 2001 Bankers Systems, Inc., St Cloud, MN Form AGCO-RESI-WY 20. INSURANCE. Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the Property insured against loss hy fi~e,, theft and other hazards and risks reasonably associated with the Property due to its type and Iocatio~. Other hazards and risks may include, for example, coverage against loss due to floods or flooding. This insu~me shall be maintained in the amounts and for the periods that Lender requires. What Lender requires pursm, d to tl~e preceding two sentences can change during the term of the Secured Debt. The insurance carrier providh~j the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtai~ coverage to protect Lender's rights in the Property according to the terms of this Mortgage. All insurance policies and renewals shall be acceptable to Lollder and shall include a standard "mortgage clause" and, where applicable, "lender loss payee clause." Mortg~,(jt)r shall immediately notify Lender of cancellation or termination of the insurance. Lender shall have the right ~o I~)ld ~he policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts ~f paid premiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance c~,~ a~d Lender Lender may make proof of loss if not made immediately by Mortgagor. Unless Lender and Mortgagor otherwise agree in writing, ,~sur~mce proceeds shall be applied to restoration or repair of the Property damaged if the restoration or repai~ -~ economically feasible and Lender's security is not lessened. If the restoration or repmr is not economically fe;,sible or Lender's security would be lessened, the insurance proceeds shall be applied to the Secured Debt. whether or not then due, with any excess paid to Mortgagor. If Mortgagor abandons the Property, or does n~t r,~swer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay u~c Secured Debt whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Mortgagor otherwise agree in writing, a~ ~,pplication of proceeds 1o pnncipal shall not extend or postpone the due date of scheduled payments or cl~;,ll,(](~, the amour~t of the payments. If the Property is acquired by Lender, Mortgagor's right to any insurance ~)licies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to tl~t~. ~;xle~t of the Secured Debt immediately before the acqmsition. Mortgagor agrees to maintain comprehensive general liability l~surance naming Lender as an additional insured in an amount acceptable to Lender. insuring against claims a~lslng from any accident or occurrence in or on the Property. Mortgagor agrees to maintain rental loss or business inte~t~pfion ~nsurance, as required by Lender, in an amount equal to at least coverage of one year's debt service. ;,~,d required escrow account deposits (if agreed to separately in writing), under a form of policy acceptable to Lc~tder 21. NO ESCROW FOR TAXES AND INSURANCE. Unless otherwise I~ovided n a separate agreement, Mortgagor will not be required to pay to Lender funds for tax,es and insurance in escrow 22. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgz~rj~r will provide to Lender upon request, any financial statement or information Lender may deem necessary. Mortgago~ w~mts that all financial statements and information Mortgagor provides to Lender are, or will be, accurate, correct, and complete. Mortgagor agrees to sign, deliver, and file as Lender may reasonably request any additional documents o~ ct,~iticat~ons that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Mortgage and Lender's lien status on the Property. If Mortgagor fails to do so, Lender may sign, deliver, and file sucl~ documents or certificates in Mortgagor's name and Mortgagor hereby irrevocably appoints Lender or Lender's agent as ¢dtorney in fact to do the things necessary to comply w~th this section. 23. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. Al duties under this Mortgage are joint and individual. If Mortgagor signs this Mortgage but does ~,~[ sign the Evidence of Debt, Mortgagor does so only to mortgage Mortgag0r's interest in the Property to secure paynw,~] ~f the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt Mortgagor agrees ~1~ lender- and any party to this Mortgage may extend, modify or make any change in the terms of this Mortgage or the [vidence of Debt without Mortgagor's consent Such a change will not release Mortgagor from the terms of this Mortga,q~ The duties and benefits of this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender. If this Mortgage secures a guaranty between Lender and Mortgag¢~ ~,~d does not directly secure the obligation which is guarantied, Mortgagor agrees to waive any rights that may prewm[ Lender m bringing any action or claim against Mortgagor or any party indebted under the obligation including, bu[ ,'/ct lin anti-deficiency or one-action laws. ~X'~-----------~M © 1993, 2001 Bankers Systems, In~., St. Cloucl, MN Form AGCO-RESI-WY '1/16 200J~/ (page 6 of 8) ,07.'05 24. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This Mo~tg,'~je is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise required by Ihe laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This Mo~t,0age may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachments, ()r ~my agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law exp~ essly or Jmpliedly permits the variations by written agreement. If any section or clause of this Mortgage cannot be erffo~ced according to its terms, that section or clause will be severed and will not affect the enforceability of the remaimh,,~ of this Mortgage. Whenever used, the singular shall include the plural and the plural the singular. The captions and h~;adings of the sections of this Mortgage are for convenience only and are not to be used to interpret or define the t~;~ms of this Mortgage. Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise required by law, any notice shall be giw;~ by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or to z,~y other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 26. WAIVERS. Except to the extent prohibited by law, Mortgagor waives any right regarding the marshalling of liens and assets and all homestead exemption rights relating to the Property. 27. U.C.C. PROVISIONS. If checked, the following are applicable to, bt~t do not limit, this Mortgage: [] Construction Loan. This Mortgage secures an obligation inct~ t.~cl for the construction of an improvement on the Property. [] Fixture Filing. Mortgagor grants to Lender a security inzert;st in all goods that Mortgagor owns now or n the future and that are or will become fixtures related to the Prt~l')u~ty. [] Crops; Timber; Minerals; Rents, Issues and Profits. Mortg;~!lor grants ~o Lender a security interest in all crops, timber and minerals located on the Property as well as a ~m[s, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Pay~e~t in Kind (PIK) payments and similar governmental programs (all of which shal also be included in the I~rm [] Personal Property, Mortgagor grants to Lender a security im~;~es~ in all personal property located on or connected with the Property. This security interest includes all farm ~r~tlt~cts, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all othe~ i~t.~ms of personal property Mortgagor owns now or in the future and that are used 9r useful in the construction, ow~ership, operation, management, or maintenance of the Property. The term "persisna, i property" specifically ex~:h~des that property described as "household goods" secured in connection with a "consumer" loan as those reruns are defined in applicable federal regulations governing unfair and dedeptive credit practices. [] Filing As Financing Statement. Mortgagor agrees and m:k~owledges that this Mortgage also suffices as a financing statement and as such, may be filed of record as ~] t'il~ancing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, image ~)~ other reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. f checked, the following are applicable to this Mortg~,ge: [] Line of Credit. The Secured Debt includes a revolving line ()f ~:~echt promsion. Although the Secured Debt may be reduced to a zero balance, this Mortgage will remain in effec~ ~mt released. [] Separate Assignment, The Mortgagor has executed or will ux~ct~te a separate assignment of leases and rents. If the separate assignment of leases and rents is properly exec,~tecl and recorded, then the separate assignment will supersede this Security Instrument's "Assignment of Leases ~(I Rents" section. [] Additional Terms. ~M ©1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1116/2003 (page 7 of 8) SIGNATURES: By signing below, Mortgagor agrees to the terms ~q covenants contained in this Mortgage and in any attachments. Mortgagor also acknowledges receipt of a copy of this M~.tgage on the date [] Actual authority was granted to the parties signing below by re.~dtition signed Page 1. Entity (Signata (Signet (DateJ {s~lf"~tufelLAURENCE I (Date) tS~JrI,~IH~ el ~ ~&,~,~ I. REal, HART, MEMBER (Date) (Date) [] Refer to the Addendum which is attached and incorporated ~e~ein for additional Mortgagors, signatures and acknowledgments, ACKNOWLEDGMENT: STATE OF ~ This instrument wa~ ackn'owledg~ by before me this clay of SS. My commission expires: (Notary Public) STATE OF WYOMING , CQUNTY OI This instrument was acknowledged before me this 1ST by JOSEPH BELLOFF. LAURENCE B. REINHART day of NOVEMBER, 2004 SS. ~Busine'ss MEMBER; MEMBER (Title(s)) or Entity ^ok,ow~.U,,,.,~) of SALT RIVER HOMES, llC a WYOMING My commission expires: Ct ~t. 5 ~(~(-~ SALLY L MARTIN .~OTARY PUBLIC COUNTY OF ~ STATE OF LINCOLN I~ VVYOMING MY CO~tMISSION EXPIRES SEPTEMBER 13. 2006 (Name of Business or Entity) on behalf of the business or entity. M © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/13/20~,3 [page 8 of 8)