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HomeMy WebLinkAbout905486 RECEIVED 12/27/2004 al 10:53 AM RECEIVING # 9054g~; BOOK: 575 PAGE: 855 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, VVY State of Wyoming Space Above This Line For Recording Data REAL ESTATE MORTGAGE (With Future Adva~l,:~ i:h,use) DATE AND PARTIES. The date of this Mortgage is 12-21-2004 are as follows: and the parties and their addresses MORTGAGOR: DAVID KINGSBURY BUCHOLZ AND BARI ELIZABETH BUCHOLZ HUSBAND AND WIFE P.O. BOX 3143 ALPINE, WY 83128 [] Refer to the Addendum which is attached and incorporatecit,~,~ill for additional Mortgagors. LENDER: BANK OF JACKSON HOLE ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE UF V¥'YOMING 990 W. BROADWAY P.O. BOX 7000 JACKSON, WY 83002 2. MORTGAGE. For good and valuable consideration, the receipt a~,l :<~Iliciency of which is acknowledged, and to secure the Secured Debt (hereafter defined), Mortgagor grants, bargains, ,:.~w.~ys, mortgages and warrants to Lender, with the power of sale, the following described property: LOT 34 OF THE REES St~[II¥1SION, BEIN0 PART OF THE N 112 SE 114 OF SECTION 20, T37N, R118W, LINCOLN COUNTY, WYOMING, ACCORDING TO THAT PLAT RECORDED IN THE O~FICE OF THE LINCOLN COUNTY CLERK. The property is located in LINCOLN at LOT 34 REES SUBDIVISION (County) , .L. INCOLN COUNTY , Wyoming (Address) H hW) {Zip Code) Together with all rights, easements, appurtenances, royalties, ~,t~:,,'d rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop pl()d{l(:~.Is, and all existing and future improvements, structures, fixtures, and replacements that may now. or at any [,~.~ ,~ the future, be part of the real estate described above (all referred to as "Property"). The term Property also i~.;tud.s, but is not limited to, any and all water wells, water, ditches, reservoirs, reservoir sites and dams located on th~.~ ~,:;d ~.~[ate and all riparian and water rights associated with the Property, however established. 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1.'16 ;.. ~..~r ~ , MAXIMUM OBLIGATION LIMIT. The total i,~,~cipal amount of tine Secured Debt (hereafter defined) secured by this Mortgage at any one time shall not ex~:,~,l ,~256,000.00 . This limitation of amount does not include interest, loan charges, commitment t,~'.~, brokerage commissions, attorneys' fees and other charges validly made pursuant to this Mortgage and does not alqfl',' tn advances (or interest accrued on such advances) made under the terms of this Mortgage to protect Lender's seething' and to perform any of the covenants contained in this Mortgage. Future advances are contemplated and, along witl~ ~,!t~er future obligations, are secured by this Mortgage even though all or part may not yet be advanced. Nothing in tt~i~ L, inrtgage, however, shall constitute a commitment to make additional or future loans or advances in any amount. /\r~.,' '~ch commitment would need to be agreed to in a separate writing. SECURED DEBT DEFINED. The term "Sec~,~,! 12ebt" includes, but is not limited to, the following: A. The promissory note(s), contract(s), !l~,aranty(ies) or other evidence of debt described below and all extensions, renewals, modifications or substitt~rm. (When referef~cing the debts below it is suggested that you include items such as borrowers' names ;md ,~(hlresses, note principal amounts, commercial revolving loan agreement's maximum amount, interest rates, w,/~d;&, rate terms, maturity dates, etc.) PROMISSORY NOTE DATED 12-21-2004 IN THE AMOUNT OF :$256,000.00 B. All future advances from Lende~ I~) k'lortgagor or other future obligations of Mortgagor to Lender under any promissory note, contract, guaranty. ~r other evidence of debt existing now or executed after this Mortgage whether or not this Mortgage is ,~[m~:di,;r, lly referred to in the evidence of debt. C. All obligations Mortgagor owes to I ,~r~,l,;r, which now exist or may later arise, to the extent not prohibited by law, including, but not limited to, lird~ihti.;:s for overdrafts lelating to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and ~xl> :~ses incurred by Lender for insuring, preserving or otherwise protecting the Property and its value and any olt~,~r :~,ns advanced and expenses incurred by Lender under the terms of this Mortgage, plus interest at the hi.gh~:~ ~ate in effect, from time to time, as provided in the Evidence of Debt. E. Mortgagor's performance unde~ tt~ l,~ms of any instrument evidencing a debt by Mortgagor to Lender and any Mortgage securing, guarantying, or ~tl~.~rwise relating to the debt. If more than one person signs this IVl~)rt!!a,.i,~ as Mortgagor, each Mortgagor agrees that this Mortgage will secure all future advances and future obligations ,hm~:~il,,..d above that are given to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others, lf~i? i'.Jn~tgage will not secure any other debt if Lender fails, with respect to such other debt, to make any required disclosure about this Mortgage or if Lender fails to give any required notice of the right of rescission. 5. PAYMENTS. Mortgagor agrees to make all i~.-,,/ments on the Secured Debt when due and in accordance with the terms of the Evidence of Debt or this Mortgage 6. CLAIMS AGAINST TITLE. Mortgagor will i~;,~ all taxes, assessments, liens,., emcumbrances,, lease payments, ground rents, utilities, and other charges relatinfl m !he Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts ar,~ ,I,m. and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any clainm lt,~t would impair the lien of this Mortgage. Mortgagor agrees to assign to Lender, as requested by Lender, any rLqht:-, ,:l;,ms or defenses which Mortgagor may have against parties who supply labor or materials to improve or maintain tl~,~ I'rm)erty. 7. PRIOR SECURITY INTERESTS. With re{,1,',d to any other mortgage, deed of trust, security agreement or other lien document that created a prior securiw Int,:r,mt or encumbrance on the Property and that may have priority over this Mortgage, Mortgagor agrees: A. To make all payments when duu [Hw] t,1 perform or comply with all covenants. B. To promptly deliver to Lender any ~,:,Js that Mortgagor receives from the holder. C. Not to make or permit any modifi,:a~i,,~ or extension of, and not to request or accept any future advances under any note or agreement secured I~,/. tt~e other mortgage, deed of trust or security agreement unless Lender consents in writing. 8. DUE ON SALE OR ENCUMBRANCE. U~;nder ma,/, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the. c~,~.~r~ of any lien, encumbrance, transfer, or sale, or contract for any of these on the Property. However, if the ProperTy ]r~,:h~des Mortgagor's residence, this section shall be subject to the restrictions imposed by federal law (12 C.F.Ft. 5~)11. u~ applicable. For the purposes of this section, the term "Property" also includes any interest to all or any prat :~1 fi~,_; Property. This covenant shall run with the Property and shall remain in effect until the Secured Debt is paid ir~ full ;~,,I this Mortgage is released. ~("~'~-~ © 1993, 2001 Bankers Systems, Inc., St 21c,J~ r,,,'j Form AGCO-RESbWY 1;16'2003 ~, '~ __ 9. TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortg~!l:, ,:~ F~) entity other than a natural p&r~6r~,,~S~cM as a cOFpOFation OF etheF organ)zation), Lender may demand Jmmedial(~. ),'~¥1))~.~)t jf {1) a beneficial J~teFest j~ ~OFlgagoF ~S sold or lFa~sfeFred; (2} there )s a change in either the identity or nu there is a change in ownership of more than 25 percent of the v~,~,,q 51ock of a corporation or similar entity. However, Lender may no~ demand payment in ~he above si~uazions if i~ is P¢,~,t,¢,~d by Jaw as of ~he date of ~his Mortgage. 10. E~TITy WARRANTIES A~D REPRESENTATIONS. If Mortgago~ ,; ..,~ e~y other ~han a natural person (such as a corporation or other organization), Mor~gagor makes ~o Lender ~,~ ~,,ltowing warranties and representations which shall be continuing as long as zhe Secured Debt remains ouzs~anding: A. Mortgagor is an en~ity which is duly organized and validly ,::,:~,~fl in ~he Mor[gagor's szate of incorporation (or organization). Mor~gagor is Jn good standing in all sta~es ~, '~,'~,~:h Mor~gagor zransac~s business. Mortgagor has ~he power and authority ~o own ~he Proper~y and zo c~,¢., ,¢~ i~s business as now being conducted and, as applicable, is qualified to do so in each sta~e in which Mor~h.,,~, B. The execution, delivery and performance of this Mor[g~],.. hy Morfgagor and the obligation evidenced by ~he Evidence of Debt are within the power of Mor~gagor, hay,: h,u~ (July authorized, have received all necessary governmenzal approval, and will not violate any provision o~ ~:,,,v, o~ o~der of cour~ or governmental agency. C. Ozher than disclosed in writing Mor~gagor has not changer! ¢~.; ~,¢,me within ~he las~ zen years and has not used any o~her ~rade or fic~Jzious name. Withou~ Lender's prio~ v'..~¢~,¢~ consent, Mortgagor does no~ and will not use any ozher name and will preserve i~s existing name, z~a~,: ¢,;,~:s and franchises until the Secured Deb~ is satisfied. 1 1. PROPERTY CONDITION, ALTERATIONS A~D INSPECTION. Morzga,],~ '¢vij~ keep ~he Property in good condition and make all repairs ~hat are reasonably necessary. Mortgagor will give Lo~i~j,¢¢ ~o¢~p~ notice of any loss or damage to the Property. Mortgagor will keep ~he Property free of noxious Weed~ .,r~d ~jCasses. Mor~gagor will no~ initiate, join in or consent ~o any change in any private restrictive covenant, zoning ~,,~¢~,~,ce or other public or private restriction limiting or defining ~he uses which may be made of the Property or any I~',¢~ Cd ~he Proper~y, wi(hour Lender's prior written consent. Morzgagor will notify Lender of all demands, proceedings, :h',~; and actions agains~ Mor~gagor or any o~her owner made under law or regulation regarding use, ownership a¢~d ~':,:~paf~cy of ~he Property. Morzgagor will comply wi~h all legal requirements and restrictions, whether public or privah~, ',','~d~ Cespec[ ~o the use of the Proper~y. Mor[gagor also agrees that the nature of ~he occupancy and use will no~ chan0~¢ ','.'~t~oL~ Lender's prior written consenz. No portion of the Properly will be removed, demolished or mate¢~;,IF.? ,'dte~ed without Lender's prior written consen~ excep~ ~ha~ Mortgagor has the right to remove i~ems of personal p~oh,, ~ comprising a par~ of the Proper~y ~hat become worn or obsolete, provided that such personal property is replaced w~t~ ,~tl~er personal property at least equal in value to the replaced personal proper~y, free from any title retention devh:~: ' '~*;u¢iW agreemen~ or other encumbrance. Such replacemen~ of personal proper~y wJJ~ be deemed sub,oct to zhe sect,.¢~, h~zcresz created by this Mortgage. Mortgagor shall noz partition or subdivide the Property withouz Lender's prior v,,~[~¢¢} consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable dine for zhe pt,l~,~¢ of inspecting the Property. AnY inspection of ~he Property shall be entirely for Lender's benefit and Mortgagor will h~ ~,, w~y rely on Lender's inspeczion. 12. AUTHORITY TO PERFORM. If Mortgagor fails to perform any of Mo¢~: ,,,~u's duties under this Mortgage, or any o~her mortgage, deed of trust, security agreemen~ or other lien documen~ rl,.:,~ has priority over ~hJs Mortgage, Lender may, without no,ice, perform ~he duties or cause ~hem ~o be performed. M~¢ ¢(~r'~O appoints Lender as a~ornev in fact to sign Mortgager's name or pay any amount necessar~ for performance. If ;,~y ¢:o¢~struction on ~he.Property is'discontinued or not carried on in a reasonable manner, Lender may do whazever is nu~;,...,:,;,y zo protec~ Lender's security in~eres~ in the Proper~y. This may include completing the construction. Lender's right to perform for Mortgagor shall not create an obligation ~o l),,to~m, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under ~,~ h~w or this Mortgage. Any amounts paid by Lender for insuring, preserving or ozherwise pro~ecting the Proper~y a~(j ~ ,¢~J(:l 'S security interest will be due on demand and will bear interest from ~he date of the paymen~ until paid in full ~[ ~h~¢ in~eresz rate in effect from time to time according to the zerms of ~he Evidence of Debt. 13-ASSIGNMENT OF LEASES AND RENTS. Mortgagor assigns, gran~s, i,',~,~s, conveys, mortgages and warrants to Lender as additional security all the right, dale and interes~ in ~he followh~{; A.Existing or future leases, subleases, licenses, guaranties and any ,,~¢ wri~[en or verbal agreements for the use and occupancy of zhe Property, including replacemenzs(Leases) but not limited ~r~ ;'~Y extensions, renewals, modifications or B. Rents, ssues and profits, including bu~ not ' limited ~o, security 'J(~¢}oSJ~S, minimum rents, percentage rents, additional rents, common area mainzenance charges parking cl~,~ s ~eal es~a~e ~axes, other applicable zaxes, ~nsurance premium contributions, liquidated damage~ following , ,:l ,ul~ cancellatio ,nsurance guest rece,pts revenues royalt,es, proceeds b~n and all rights and claims which Mortgagor may have that ~n any ~ ,y ~¢r~n to or are on account ~ the use or occupancy ~se~ ,;,, ~ o~ nt.S' contra ne , of the whole or any part of the Property (Rents). In the event any item listed as Leases or Rents is determined to be l},¢~:~r,~l property, this Assignment will also be regarded as a security agreement. ~ ~ ]993, 2001 Ban~ers Sy~tem~' Inc., St. C oud M~ Ferm AGCO-RESI-Wy 111612003 14, 15, 16. Mortgagor will promptly provide Lender witt~ ~:,,i,i,;s of the Leases and will certify these Leases are true and correct copies. The existing Leases will be provided o¢~ <:.<~:ution of the Assignment, and all of the future Leases and any other information with respect to these Leases will h. i,ovided immediately after they are executed. Mortgagor may collect, receive, enjoy and use the Rents so long as M~,l,F~.qor is not in default. Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgago~ lir.:l ~¢btains Lender's wlitten consent. Upon default, Mortgagor will receive any Rents in trust for Lender and Mortgagor will ~,,,1 commingle the Rents with any other funds. When Lender so directs, Mortgagor will endorse and deliver any paym~'.r~:~ of Rents from the Property to Lender. Amounts collected will be applied at Lender's discretion to the Secured [~,t~:~, the costs of managing, protecting and preserving the Property, and other necessary expenses. Mortgagor agrees tl,;~t this Security Instrument is immediately effective between Mortgagor and Lender. This Security Instrument will r,,~,~r, effective during any statutory redemption period until the Secured Debts are satisfied. Unless otherwise prohibil,:,l ~ prescribed by state law,~ Mortgagor agrees that Lender may take actual possession of the Property without tim ~,, , ,ssity of commencing any legal action or proceeding. Mortgagor agrees that actual possession of the Property is dee~<,l to occur when Lender notifies Mortgagor of Mortgagor's default and demands that Mortgagor and Mortgagor's t~*.r~.'.~l:~ pay all Rents due or to become due directly to Lender. Immediately after Lender gives Mortgagor the notice of d~;l;,~!~. Mortgagor agrees that either Lender or Mortgagor may immediately notify the tenants and demand that all futtlr,; [b~r~:~ he paid directly to Lender. As long as this Assignment is in effect, Mortfi;h!,, warrants and represents that no default exists under the Leases, and the parties subject to the Leases have not ,,¢~,1¢~,M any applicable law on leases, licenses and landlords and tenants. Mortgagor, at its sole cost and expense, witl k,: :p, observe and perform, and require all other parties to the Leases to comply with the Leases and any applicable h~vv II Mortgagor or any party to the Lease defaults or fails to observe any applicable law, Mortgagor will promptly notify I ,,~der. If Mortgago~ neglects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Le~l,~': ~ption, enforce compliance. Mortgagor will not sublet, modify, extend, c;,r~ ;~:1, ur otherwise alter the Leases, or accept the surrender of the Property covered by the Leases (unless the Leases so r,,t~,r~.) without Lender's consent. Mortgagor will not assign, compromise, subordinate or encumber the Leases and R,~t: without Lender's prior written consent. Lender does not assume or become liable for the Property's maintenan{:~, ~l,.preciation, or other losses or damages when Lender acts to manage, protect or preserve the Property, except fo~ h...,..:* and damages due to Lender's gross negligence or intentional torts. Otherwise, Mortgagor will indemnify Lender a~,,I !~old Lender harmless for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its ~,~.:dies against any party obligated under the Leases. CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. If the Property includes a unit in a condominium or a planned unit development, Mortgagor will perform all of L4~r~!]agor's duties under the covenants, by-laws, or regulations of the condominium or planned unit development. DEFAULT. Mortgagor will be in default if ar/¥ of ti,; following occur: A. Any party obligated on the Secured [)~fl~l f~ils to make payment when due; B. A breach of any term or covenant i~ ti,l:< Mortgage, any prior mortgage or any construction loan agreement, security agreement or any other docu~,,~l evidencing, guarantying, securing or otherwise relating to the Secured Debt; C. The making or furnishing of any verh;d ,..v~tten representation, statement or warranty to Lender that is false or incorrect in any material respect by M:, ~!!~!lor or any person or entity obligated on the Secured Debt; D. The death, dissolution, or insolvency ~:I. :,l~pointment of a receiver for, or application of any debtor relief law to, Mortgagor or any person or entity oblifl ,l,,l on the Secured Debt; E. A good faith belief by Lender at any t,rt~,' ~!~at Lender is insecure with respect to any person or entity obligated on the Secured Debt or that the prosp~;ct ,,t .'W payment is impaired or the value of the Property is impaired; F. A material adverse change in Mortgafl~,'~ business including ownership, management, and financial conditions, which Lender in its opinion believes iml~;~rr :. the value of the Property or repayment of the Secured Debt; or G. Any loan proceeds are used for a pulp~. ,~ that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an ;,!~,:~dtural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. REMEDIES ON DEFAULT. In some instances, !,xi,,a[ and state law will require Lender to provide Mortgagor with notice of the right to cure, mediation notices or otl~er r~,,tices and may establish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accrfl~, ~< the Secured Debt and foreclose this Mortgage in a manner provided by law if this Mortgagor is in default. At the option of Lender, all or any part ~f tl,, ,.greed fees and charges, accrued interest and principal shall become immediately due and payable, after giving r~¢~,:e if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be erltith;d '~ ,lithe remedies provided by law, the Evidence of Debt, other evidences of debt, this Mortgage and any related duc,.~,,;nts including without limitation, the power to sell the Property. All remedies are distinct, cumulative and not ex..:h~: ~ve, and the Lender is entitled to all remedies provided at law or equity, whether expressly set forth or not. The ac:c~,Fl~,~:e by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerat~;d ¢, after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require full and completr; t:~,: ,3f any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's ri(jl~ ~ !.'der consider the event a default if it continues or happens again. ~"~'~ ©1993, 2001 Bankers Systems, Inc., St. CIm~d, r.~ ; ; .,: r~GCO*RESI-WY 1/16t2003 . ~ 17. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS, FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay ail of Lender's expenses if Mortgagor h,,:., :~=~s any covenant in this Mortgage. Mortgagor will also pay on demand ail of Lender's expenses incurred in collecti~,!l any inventories, audits, inspections or other examination by Lerld,~ all costs and expenses incurred by Lender in ~),~(,Jng, preserving or protecting the including, but not limited to, attorneys' fees, enforcing or aPr~O._lte..~,,i:, i b~,,der,s rights agrees to pay court costs ..... J,,; ,;(la expenses. Once the Secured Debt s full~ ~gr~c~ finally paid, Lender agrees to release this Mortgage and Mortga(!:,~ :,(Irees to pay for any recordation costs. All such amounts are due on demand and will bear interest from the time ci !i~; advance at the highest rate in effect, from time to time, as provided in the Evidence of Debt and as permitted by h',v,, and remedies under this Mort a e 18. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As ~.,~,1 ,¢~ this section, (1) "Environmental Law" means without limitation, the Comprehensive Environmental Response, ~;' ¢'~I~-'r~sation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations ~¢,h~,,-, ces court orders attorney general opinions or interpretive letters co,n, cerning , the public health, safety, welf~¢,: ':¢~v,'onment or a hazardous substance, and "Hazardous Substance' means any ' · toxic, radioactive or hazardou:. ~,',l~;~iai, waste, POllutant or contaminant ~vhJch (2} characteristics which render the substance dangerous or potentiall,. 'LIII,clelOUS tO the public health, safety, welfare or has env|ronment. The term includes without limitation, any substance~ ,I.¢~r~.,rj as "hazardous material," "toxic substances,,, "hazardous waste" or "hazardous substance" under any EnvJronm~;~,¢ ,i t;~w. 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, tl,-,~:~i~olled' manufactured, treated, refined, or handled by any person on, under or about the Property, except in d~; ,, d,la,y Course of business and in strict compliance with all applicable Environmental Law. 13. Mortgagor has not and will not cause contribute to, or pe~ rl~e ~elease of any Hazardous Substance on the Property. , C, Mortgagor will immediately notify Lender if (1} a release or ll,!,;.,lclled release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migfa~,, Ir~m aearby property; or (2~ there is a violation of any. Environmental Law concerning the Property. In such a~ ,:,.,,¢~z, Mortgagor will take all necessary remedial acuon in accordance with Environmental Law. D. Mortgagor has no knowledge of or reason to believe there ¢:. ,~¢~,/ pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Subsz;,~;~: I~ca~ed on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmer~:,l '~ ~vv. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is ;,~,/ -;t~ch pending or threatened investigation, claim, or proceed ng. In such an event, Lender has the right, including the right to receive copies of any documents but no~ it~,, ~d~ligation, to participate in any such proceeding E. Mortgagor and every tenant have been, are and shall remain ,, i~lt compliance with any applicable Environmental Law. relatin.rj ~, ';~ch proceedings. F. There are no underground storage tanks, private dumps or ()p,;~ wells located on or under the Property and no such tank· dump or well will be added unless Lender first consc~i:¢ ,/ writing. G. Mortgagor will regularly inspect the Property, monitor the acti,..~m~ aad operations on the Property, and confirm that all permits, licenses or approvals required by any applicat,h., h~vJlonmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender ~ l,~de.~'s agent to enter and inspect the Property and review all records at any reasonable time to determia,-~ II) tile existence, location and nature of any Hazardous Substance on, under or about the Property; (2) ti~e ~x~:<tellc. e, location, nature, and magnitude of any Hazardous Substance that has been released on, under or ab~,~i d~e Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environmenzhl l. Upon Lender's request and at,any time, Mortgagor agrees ~,l Mortca o. environmental engineer to prepare an envlr0nmenta audit '~ g g r s .e, xpense, to en a. a qualified to Lender. The choice of the environmental cng neer who will p,-; I~rrl~ -~uch audit is subject to Lender s approval. J. Lender has the right, of ,h,·' ,,,p,;,ty and to submit the're§u~;?oef such audit Mortgagor's expense, but not the obligation· to perform any ,~ iVh~r~gagor's obligations under this section at K. As a consequence of any breach of any representation, warramy ~ P~omise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or assiq¢~.: t~a~mless from and against all losses· claims, demands, liab ities, damages, cleanup, response and w thout limitation all costs of litigation and attorneys fees, whicl,~i''~ costs, penalties and expenses, including · l c~der and Lender's successors or assigns may sustain, and (2) at Lender's discretion, Lender may release tl~h, L.i~,lq~ge and in return Mortgagor will provide Lender with collateral of at least equal value to the Property se~:~¢,:,j by this Mortgage without prejudice to any of Lender's rights under this Mortgage. L. Not.withstanding any of the language contained in this Mortgage ~,~ dte contrary, the terms of this section shall survive any foreclosure or satisfaction of this Mortgage rega,~il,::~.~ ef any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims an~l ,~'-'l~"-¢~ses to the contrary are hereby waived. 19. CONDEMNATION. Mortgagor will give Lender prompt notice of any ~,:~ a real or threatened, by private or public ent~tles to purchase or take any or all of the Property, includi -..:. ; ., . . or any other means. Mortgagor further agrees to not,fy Lend~enrgo~r~Yn¢~,;'~ ~ ..u~,h,,.c~o~n~e_rn~ sewer, water ' '.'::; ',i;,~r, ~o conservation, ., ~ ns-.-~,~u m~ [ne estabhsnment of any · ¢ ~ ,nation, .e..m nent domain,ditch, drainage, or other district relating ~ ,,¢ bimiing upon the Property or any part of it. Mortgagor authorizes Lender to intervene in Mortgager's name in any o~ il~r; above described actions or claims and to collect and receive all sums resulting from the action or claim. Mortgagee ~>;';l!ll~s [o Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all ~l ,~lW part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Mortgage. II,is assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other liu~ ~ © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-Wy 1/16/2003 ,,.,, .) (page 5 of 8) 20. INSURANCE. Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the Property insured against loss by fi~,: !l~;lt and other hazards and risks reasonably associated with the Property due to its type and location. O~,.:, I~az~rds and risks may include, for example, coverage against loss due to floods or flooding. This insurancr...l~ll be maintained in the amounts and for the periods that Lender requires. What Lender requires pursuant t~, ~1,~ p~eceding two sentences can change during the term of the Secured Debt. The insurance carrier providing tit.: ,~uunce shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withl~,:hi I~ Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtain cov,,.'~!]e ~o protect Lender's rights in the Property according to the terms of this Mortgage. All insurance policies and renewals shall be acceptable to Le~d,, :~d shall include a standard "mortgage clause" and, where applicable, "lender loss payee clause." Mortgago~ ::1,:,11 u~mediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to t~,ld ~1~; policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of i);~l i)~emiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance carrle~ ~,~1 Ler~der. Lender may make proof of loss if not made immediately by Mortgagor. Unless Lender and Mortgagor otherwise agree in writing, i;~s~, ,,:~; i~roceeds shall be applied to restoration or repair of the Property damaged if the restoration or repair is ,,:~,~,uically feasible and Lender's security is not lessened. If the restoration or repair is not economically fe~:~l¢i,: o~ Lender's security would be lessened, the insurance proceeds shall be applied to the Secured Debt, wl,~tl,;~ or not then due, with any excess paid to Mortgagor. If Mortgagor abandons the Property, or does not a~:-w¢,~ within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender m~,,,; ,;~llec~ the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay the .%,:,:t,,d 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, any ~,l,l,l,;;~tion of proceeds to principal shall not extend or postpone the due date of scheduled payments or chan.rl~ ~1,: ;,nount of the payments. If the Property is acquired by Lender, Mortgager's right to any insurance poli,;~.:.. ~¢t proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the ~.×~,,~t uf the Secured Debt immediately before the acquisition. B. Mortgagor agrees to maintain comprehensive general liability ,~ ~,.',~ce naming Lender as an additional insured in an amount acceptable to Lender, insuring against claims arix,, ~ l~m any accident or occurrence in or on the Property. , C. Mortgagor agrees to maintain rental loss or business interrup~,,~, i~ance, as required by Lender, in an amount equal to at least coverage of one year's debt service, and r,~,tt~i~ec~ escrow account deposits (if agreed to separately in writing), under a form of policy acceptable to Le~,,l~, 21. NO ESCROW FOR TAXES AND INSURANCE. Unless otherwise prowd.~,! ~r~ ¢~ separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 22. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgago~ v..d; i~ovide to Lender upon request, any financial statement or information Lender may deem necessary. Mortgagor ~..',r ~;~ that all financial statements and information Mortgagor provides to Lender are, or will be, accurate, correct, anti ~:~,~q~h;le. Mortgagor agrees to sign, deliver, and file as Lender may reasonably request any additional documents or ce~d~,:~t~o~s that Lender may consider necessary to perfect, continue, and preserve Mortgager's obligations under this M,, I!l;~.~]e and Lender's lien status on the Property. If Mortgagor fails to do so, Lender may sign, deliver, and file such d~,:~.n~r~ts or certificates in Mortgager's name and Mortgagor hereby irrevocably appoints Lender or Lender's agent as ~,~,~y in fact to do the things necessary to comply with this section. 23. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Mortgage are joint and individual. If Mortgagor signs this Mortgage but does no~ :~!1~ tl~e Evidence of Debt, Mortgagor does so only to mortgage Mortgager's interest in the Property to secure paymen~ ,,t tl~; Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. Mor~[gagor agrees that ~,;~d~ and any party to this Mortgage may extend, modify or make any change in the terms of this Mortgage or the Ewd,,~:,; of Debt without Mortgager's consent. Such a change will not release Mortgagor from the terms of this Mortgage. l t~ 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 Mortgago~ ~,~d does not directly secure the obligation which is guarantied, Mortgagor agrees to waive any rights that may preve~ I ,,~der from bringing any action or claim against Mortgagor or any party indebted under the obligation including, but r~l I,~ited to, anti-deficiency or one-action laws. ~eM ©1993, 2001 Bankers Systems, lnc,, St. Cloud, MN Form AGCO-RESI-WY 1/16t200:: V-- " 'L~ t2 -~. 24. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This Mo~!~, which Lender is located, except to the extent otherwise requil'e~l i,,., [l~e laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This r'.'l~:~lcja¢~e may not be amended or modified by oral agreement. Any section ' conflicts with applicable or clause in this Mortgage, attachmem,~ · law will not be effective, unless that law ';:~l~¢,ssly agreement related to the Secured Debt that or impliedly permits the variations by written agreement If any section or clause of this Mortgage cannot be *~:,',I,)~c:~,~d according to its terms, that section or clause will be severed and will not affect the enforceability of the remaind,:~ ~I riffs Mortgage. Whenever Used, the singular shall include the plural and the plural the singular. The captions and li,:;~lhl~gs of the sections of this Mortgage are for convenience only and are not to be used to interpret or define the ~,,~s of this Mortgage. Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise required by law, any notice shall be givel, h,/ delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or to ;,,,, ()lt~el address designated in writing. Notice to one mortgagor will be deemed to be notice to ali mortgagors. 26. WAIVERS. Except to the extent prohibited by law, Mortgagor wa~,.,,~:., mW right regarding the marshalling of liens and assets and al/homestead exemption rights relating to the Property. 27. U.C.C. PROVISIONS. If checked, the following are applicable to, but ,h, ¢~c~ limit, this Mortgage: [] Construction Loan. This Mortgage secures an obligation Jn(:L,¢,¢d roi the construction of an improvement on the Property. [] Fixture Filing. Mortgagor grants to Lender a security intere:~r ~¢~ all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Prop,,, [] Crops; Timber; Minerals; Rents, Issues and Profits. Mortga0~) !.~.~ts to Lender a security interest in all crops, timber and minerals located on the Property as well as aJJ i~:l~l:.; I',~.gtJes, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Paym~;~i ,~ ~md (PIK} Payments and similar governmental programs fall of which shall also be included in the term "Prop~,¢ [] Personal Property, Mortgagor giants to Lender a security inter,¢::;~ ,~ all personal property located on or connected .with the Property. This securJt nte . . instruments chattel paper, ge, raj ,;'teaSntg;:~;sUd:s~ ?l ,.far .m p, od,,,,,~,, inventory, equipment, accounts, documents, the future and that are used or useful in the construction, ow~,,~;,p operation, management, or maintenance of ' , ~lu all Other it,~,~ the Property. The term "personal property" specifically exchid,~,, dial property described as "household goods" secured in connection with a "consumer" loan as those ~e~:,; ,',e defined in applicable federal regulations governing unfair and deceptive credit practices. [] Filing As Financing Statement. Mortgagor agrees and ack~,,',~,'h,,d[~es that this Mortgage also suffices as a financing statement and as such, may be filed of record as a t,, ,~,:m0 statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, image o~ ~,~ll~,~ ~;production of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this Mortg~,h~ [] Line of Credit. The Secured Debt includes a revolving line of c~c,d~l /,ovision. A/though the Secured Debt may be reddced'to a Zero'balance, this Mortgage Will rembin in effect ul,lil ~,:teased. ' ' [] Separate Assignment. The Mortgagor has executed or will exem~i,~ ,.~ -~eparate assignment of leases and rents. If the separate assignment of leases and rents is properly executed ;,~d ~ecorded, then the separate assignment will supersede this Security Instrument's "Assignment of Leases al~d ~¢f:~,t:<" section. [] Additional Terms. ~ © ~993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-Wy 1/16/2003 ' ~ "~ [page ? of 8) SIGNATURES: By signing below, Mortgagor agrees to the terms and c~:.,,~;~nlS contained in this Mortgage and in any attachments. Mortgagor also acknowledges receipt of a copy of this M~;~ ~,t;,!1~; on The date stated above on Page 1. [] Actual authority was granted to the parties signing below by resohn~,;~, >.~(tned and dated Entity Name: (Date) (Signal'n"iUARI ELIZABETH BUCHOLZ (Siguature) (Date) (Date) [] Refer to the Addendum which is attached and incorporated t~,¢~nn) tor additional Mortgagors, signatures and acknowledgments. (Individual) ACKNOWLEDGMENT: STATE OF WYOMING This instrument was acknowledged before me thi~21ST \-']. by DAVID KINGSBURY BUCHOLZ: BARI ELIZABETH BUCHOLZ. HUSBAND AND WIFE My commission expires: nty of ~'~,~.,'~ State of coin t~ Wyoming mission Expires September 13, 2006 ,COUNTYOF __l-,~¢d? .V~. }ss. day of DECEMBER, 2004 (Business STATE QF , COUNTY OF This instrument was acknowledged before me this by SS, _day of (Titlels)) e[E n[ity Acknowledgment) of a My commission expires: (Name of Business or Entity) on behalf of the business or entity. (Notary Public) © 1993, 2001 Bankers Systems, Inc., St, Cloud, MN Form AGCO-RESI-WY 1/16/200Z (page 8 of 8)