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HomeMy WebLinkAbout905600DATE AND PARTIES. The date of this Mortgage is 12-28-2004 are as follows: RECEIVED 1/3/2005 at 8 PM RECEIVING # 905~;~O BOOK: 576 PAGi!: 3f:i9 JEANNE WAGi,If!!R LINCOLN COUNTY CLERK, iiEMMERER, VVY State of Wyoming Spacu Above This Line For_ Recording Data REAL ESTATE MORTGAGE (With Future Advance Clause) and the parties and their addresses MORTGAGOR: THOMAS W. LADANYE AND VIOLET A. LADANYE, HUSBAND AND WIFE PO BOX 3O3 SODA SPRINGS, ID 83276 [] Refer to the Addendum which is attached and incorporated t~t,,~;H~ for additional Mortgagors, LENDER: THE BANK OF STAR VALLEY ORGANIZED AND EXISTING UNDER THE lAWS OF THE STATE 0t WYOMING 384 WASHINGTON STREET PO BOX 8007 AFTON, WY 83110 83.0315143 MORTGAGE. For good and valuable consideration, the receipt anti sufficiency of which is acknowledged, and to secure the Secured Debt (hereafter defined), Mortgagor grants, bargains, cu~weys, mortgages and warrants to Lender, with the power of sale, the following described property: SEE "SCHEDULE C" A~T;~EItED HERETO AND MADE A PART HEREOF. The property is located in LINCOLN at 76226 HIGHWAY 89 (County) , SMOOT , Wyoming 83126 (Address) ((:,t'.,) (Zip Code) Together with all rights, easements, appurtenances, royalties, ~i~oral rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop pr.ducers, and all existing and future improvements, structures, fixtures, and replacements that may now, or at any th~. in d~e future, be part of the real estate described above (all referred to as "Property"), The term Property also inr:ludus, but is not limited to, any and all water wells, water, ditches, reservoirs, reservoir sites and dams located on the r(~al estate and all riparian and water rights associated with the Property, however established. WYOMING - AGRICULTURAL/COMMERCIALREAL ESTATE SECURITY INSTRUMENT (NOT t L~H i M,I,~, [HLMC, FHA~R VA USE, AND NO~ FOR CONSUMER PURPOSES) (page I of 8) F___.,~"-~~ ©1993, 2001 Bankers Systems, lnc.,St.'Cioud, MN FormAGCO-RESI-WY 1/167. ,! t~'~/ t ., 3. MAXIMUM OBLIGATION LIMIT. The total principal amount of th~: ~;ecured Debt (hereafter defined) secured by this Mortgage at any one time shall not exceed $ 70,000.00 This limitation of amount does not include interest, loan charges, commitment fees, brokerage commis:,i,~s, attorneys' fees and other charges validly made pursuant to this Mortgage and does not apply to advances (or inter,:' t ;~ccrued on such advances) made under the terms of this Mortgage to protect Lender's security and to perform any ,~f tile covenants contained in this Mortgage. Future advances are contemplated and, along with other future obligations, .:,~,: secured by this Mortgage even though all or part may not yet be advanced. Nothing in this Mortgage, however, sl~;,ll constitute a commitment to make additional or future loans or advances in any amount. Any such commitment would ~,ee¢l to be agreed to in a separate writing. SECURED DEBT DEFINED. The term "Secured Debt" includes, but i~ ~t limited to, the following: A. The promissory note(s), contract(s), guaranty(les) or other e, vi~l~nce of debt described below and all extensions, renewals, modifications or substitutions. (When referencin!j ~/~., debts below it is suggested that you include items such as borrowers' names and addresses, note princi/~,d ~,~ounts, commercial revolving loan agreement's maximum amount, interest rates, variable rate terms, maturh~, .'/,~;s, etc.) PROMISSORY NOTE DATED 12128/04 IN THE AMOUNT OF $70,095.00 B. All future advances from Lender to Mortgagor or other fut,,~,~ obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of ;l,.I)t existing now or executed after this Mortgage whether or not this Mortgage is specifically referred to in the ~:vi~lence of debt. C. All obligations Mortgagor owes to Lender, which now exist ~r ~t~ay later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts rel~r~,j to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by Lend,:r for insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and e:.:l~;nses incurred by Lender under the terms of this Mortgage, plus interest at the highest rate in effect, from time: I,'~ ume, as provided in the Evidence of Debt. E. Mortgagor's performance under the terms of any instrument ~videncing a debt by Mortgagor to Lender and any Mortgage securing, guarantying, or otherwise relating to the d~ht. If more than one person signs this Mortgage as Mortgagor, each [~,l~rtgagor agrees that this Mortgage will secure all future advances and future obligations described above that are giv,:;~ to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. This Mortgage will not secur~: ,~1~¥ other debt if Lender fails, with respect to such other debt, to make any required disclosure about this Mortgage or il lender fails to give any required notice of the right of rescission. 5. PAYMENTS. Mortgagor agrees to make all payments on the Secured [)ebt when due and in accordance with the terms of the Evidence of Debt or this Mortgage. 6. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessm~;~,t.,;, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due i ,~[~der may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evid~.~);:ing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lie~ <~f this Mortgage. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses whi~:l~ Mortgagor may have against parties who supply labor or materials to improve or maintain the Property. 7. PRIOR SECURITY INTERESTS. With regard to any other mortga~j,.~, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance o~ the Property and that may have priority over this Mortgage, Mortgagor agrees: A. To make all payments when due and to perform or comply wiil~ ;~tl covenants. B. To promptly deliver to Lender any notices that Mortgagor rec~v~s from the holder. C. Not to make or permit any modification or extension of, and ~t to request or accept any future advances under any note or agreement secured by, the other mortgage, ~l~.ud of trust or security agreement unless Lender consents in writing. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, de~:l~re the entire balance of the Secured Debt to be immediately due and payable upon the creation of any lien, encumb~;~(:e, transfer, or sale, or contract for any of these on the Property. However, if the Property includes Mortgagor's resid~:r~ce, this section shall be subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. For the I~ri~oses of this section, the term "Property" also includes any interest to all or any part of the Property. This cove~ shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this Mortgage is ~,& ! (page 2 of 8) ~M © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/16/20~'~ ~ 0371 TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortgagor ~u un entity other than a natural person (such as a corporation or other organization), Lender may demand immediate pa¥~,~ent if (1) a beneficial interest in Mortgagor is sold or transferred; (2) there is a change in either the identity or number ui ~nembers of a partnership or similar entity; or (3) there is a change in ownership of more than 25 percent of the votil~j stock of a corporation or similar entity. However, Lender may not demand payment in the above situations if it is prohihi~ud by law as of the date of this Mortgage. 10. ENTITY WARRANTIES AND REPRESENTATIONS. If Mortgagor is u~ entity other than a natural person (such as a corporation or other organization), Mortgagor makes to Lender the i,qlowing 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 c,,n;ti~,g in the Mortgager's state of incorporation (or organization). Mortgagor is in good standing in all states in ,,,'hich Mortgagor transacts business. Mortgagor has the power and authority to own the Property and to carry on its business as now being conducted and, as applicable, is qualified to do so in each state in which Mortgagor operates. B. The execution, delivery and performance of this Mortgage hv Mortgagor and the obligation evidenced by the Evidence of Debt are within the power of Mortgagor, haw~. t~uen duly authorized, have received all necessary governmental approval, and will not violate any provision of hu, v, or order of court or governmental agency. C. Other than disclosed in writing Mortgagor has not changed itu name within the last ten years and has not used any other trade or fictitious name. Without Lender's prior v.,r]~tc, n consent, Mortgagor does not and will not use any other name and will preserve its existing name, trade names and franchises until the Secured Debt is satisfied. 11. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagur will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor will give L~ulu. r prompt notice of any loss or damage to the Property. Mortgagor will keep the Property free of noxious weed,,; und grasses. Mortgagor will not initiate, join in or consent to any change in any private restrictive covenant, zoning o~dn~ance or other public or private restriction limiting or defining the uses which may be made of the Property or any purl of the Property, without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, el;urns, and actions against Mortgagor or any other owner made under law or regulation regarding use, ownership and uccupancy of the Property. Mortgagor will comply with all legal requirements and restrictions, whether public or privau~, with respect to the use of the Property. Mortgagor also agrees that the nature of the occupancy and use will not change without Lender's prior written consent. No portion of the Property will be removed, demolished or materiull¥ altered without Lender's prior written consent except that Mortgagor has the right to remove items of personal pr(~l~rty 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 devicu, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to the seuu~i[y interest created by this Mortgage. Mortgagor shall not partition or subdivide the Property without Lender's prior written consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the fxu[)ose of inspecting the Property. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will ir~ no way rely on Lender's inspection. 12. AUTHORITY TO PERFORM. If Mortgagor fails to perform any of Mu~tgagor's duties under this Mdrtgage, or any other mortgage, deed of trust, security agreement or other lien documenl tl~at has priority over this Mortgage, Lender may, without notice, perform the duties or cause them to be performed. N(u[gagor appoints Lender as attorney in fact to sign Mortgager's name or pay any amount necessary for performance. It m~¥ construction on the Property is discontinued or not carried on in a reasonable manner, Lender may do whatever is ~ucessary 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 lo perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights und,:~ tile law or this Mortgage. Any amounts paid by Lender for insuring, preserving or otherwise protecting the Property mul Lender's security interest will be due on demand and will bear interest from the date of the payment until paid i~ lull 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, grain:,, bargains, conveys, mortgages and warrants to Lender as additional security all the right, title and interest in the folluwmg (Property). A. Existing or future leases, subleases, licenses, guaranties and m~y other written or verbal agreements for the use and occupancy of the Property, including but not limited to, any extensions, renewals, modifications or replacements (Leases). B. Rents, issues and profits, including but not limited to, su~:unty deposits, minimum rents, percentage rents, additional rents, common area maintenance charges, parkin!t charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages follov,,u~tj default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, bo~xu~es, accounts, contract rights, general intangibles, and all rights and claims which Mortgagor may have that i~ ,,ny way pertain to or are on account of the use or occupancy of the whole or any part of the Property (Rents). In the event any item listed as Leases or Rents is determined to hu personal property, this Assignment will also be regarded as a security agreement. ~ ©1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/16/20<, ~ Mortgagor will promptly provide Lender with copies of the Leases ~,~d will certify these Leases are true and correct copies. The existing Leases will be provided on execution of the Assi!t~,nent, and all of the future Leases and any other information with respect to these Leases will be provided immediately ~lter they are executed. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is not in defaull. Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgagor first obtains Lender's w~/t,n consent. Upon default, Mortgagor will receive any Rents in trust for Lender and Mortgagor will not commingle the Fh:~,~; with any other funds. When Lender so directs, Mortgagor will endorse and deliver any payments of Rents from ~t~,~ Property to Lender. Amounts collected will be applied at Lender's discretion to the Secured Debts, the costs of ma~.~!ting, protecting and preserving the Property, and other necessary expenses. Mortgagor agrees that this Security InstrL,~.~ is immediately effective between Mortgagor and Lender. This Security Instrument will remain effective during ~,w statutory redemption period until the Secured Debts are satisfied. Unless otherwise prohibited or prescribed by s~,~ law, Mortgagor agrees that Lender may take actual possession of the Property without the necessity of commenc,~!t m~y legal action or proceeding. Mortgagor agrees that actual possession of the Property is deemed to occur when Le~,h;r notifies Mortgagor of Mortgagor's default and demands that Mortgagor and Mortgagor's tenants pay all Rents due ~,r to become due directly to Lender. Immediately after Lender gives Mortgagor the notice of default, Mortgagor agree..; that either Lender or Mortgagor may immediately notify the tenants and demand that all future Rents be paid directly to I .nder. As long as this Assignment is in effect, Mortgagor warrants and repr~;:~ts that no default exists under the Leases, and the parties subject to the Leases have not violated any applicable I:,,,v on leases, licenses and landlords and tenants. Mortgagor, at its sole cost and expense, will keep, observe and perlL~rm, and require all other parties to the Leases to comply with the Leases and any applicable law. If Mortgagor or any I~rty to the Lease defaults or fails to observe any applicable law, Mortgagor will promptly notify Lender. If Mortgagor II~:!JloCtS or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender's option, enforce Mortgagor will not sublet, modify, extend, cancel, or otherwise alter tl~,; Leases, or accept the surrender of the Property covered by the Leases (unless the Leases so require) without Lender'~ ~:onsent. Mortgagor will not assign, compromise, subordinate or encumber the Leases and Rents without Lender's pr~.r written consent. Lender does not assume or become liable for the Property's maintenance, depreciation, or other h~',;ses or; damages when Lender acts to manage, protect or preserve the Property, except for losses and damages du~ t(~ Lender's gross negligence or intentional torts. Otherwise, Mortgagor will indemnify Lender and hold Lender harmle?; for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its remedies against any par~' ~bligated under the Leases. 14. CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. If the Property ,.:l.des a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor's duties und,r tho covenants, by-laws, or regulations of the condominium or planned unit development. 15. DEFAULT. Mortgagor will be in default if any of the following occur: A. Any party obligated on the Secured Debt fails to make paymem ~>,'hen due; B. A breach of any term or covenant in this Mortgage, any pr.~,r mortgage or any construction loan agreement, security agreement or any other document evidencing, guaran~v~g, securing or otherwise relating to the Secured Debt; C. The making or furnishing of any verbal or written representations, '.;tatement or warranty to Lender that is false or incorrect in any material respect by Mortgagor or any person or .~t~W obligated on the Secured Debt; D. The death, dissolution, or insolvency of, appointment of a rec~.,.,~r for, or application of any debtor relief law to, Mortgagor or any person or entity obligated on the Secured Debt; E. A good faith belief by Lender at any time that Lender is insecu~, w~th respect to any person or entity obligated on the Secured Debt or that the prospect of any payment is impair~d or the value of the Property is impaired; F. A material adverse change in Mortgagor's business including ,.~v:nership, management, and financial conditions, which Lender in its opinion believes impairs the value of the Prol~,;~rty or repayment of the Secured Debt; or G. Any loan proceeds are used for a purpose that will contribute t~ ~xcessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity, ,~; lurther explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. 16. REMEDIES ON DEFAULT. In some instances, federal and state law wdl ruquire Lender to provide Mortgagor with notice of the right to cure, mediation notices or other notices and may establi:,l~ time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt a~d 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~.!l.:;, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies prow~!~..d by law, the Evidence of Debt, other evidences of debt, this Mortgage and any related documents including with~.~ limitation, the power to sell the Property. All remedies are distinct, cumulative and not exclusive, and the Lender i,.; ~mtided to all remedies provided at law or equity, whether expressly set forth or not. The acceptance by Lender of any ::.m in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure prL.:~:~,dings are filed shall not constitute a waiver of Lender's right to require full and complete cure of any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the eve~t ~ defaulz if it continues or happens again. ,. , (page 4 of 8) ~u ~1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI*WY 1/16/2003 ~'"~, , 20. ~NSURANCE. Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the Property insured against loss by llr~'~ theft and other hazards and risks reasonably associated with the Property due to its type and location. ~l,cr hazards and risks may include, for example, coverage against loss due to floods or flooding. This insuraI,~:~: shall be maintained in the amounts and for the periods that Lender requires. What Lender requires pursuant 1,~ ~l~e preceding two sentences can change during the term of the Secured Debt. The insurance carrier providing lh~¢ insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably witt~h~;Id, If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtain c~w;rage to protect Lender's rights in the Property according to the terms of this Mortgage. All insurance policies and renewals shall be acceptable to Le~J~;r and shall include a standard "mortgage clause" and, where applicable, "lender loss payee clause." Mortgag~r '.;hall immediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to I.,ld the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of I,aid premiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance car..r ~d Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless Lender and Mortgagor otherwise agree in writing, ir,;.r~.~ce proceeds shall be applied to restoration or repair of the Property damaged if the restoration or repair i:; ~:onomically feasible and Lender's security is not lessened. If the restoration or repair is not economically fe;,:,il,le or Lender's security would be lessened, the insurance proceeds shall be applied to the Secured Debt, ,,,,l~d~er or not then due, with any excess paid to Mortgagor. If Mortgagor abandons the Property, or does not ~.~:~¥¢er within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender ~,~¥ collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay the !~,~(:tlrecJ 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 ~t~t}tication of proceeds to principal shall not extend or postpone the due date of scheduled payments or chan~,j¢, lhe amount of the payments. If the Property is acquired by Lender, Mortgagor's right to any insurance pr, h,:~es and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the ~.,:~tu~t of the Secured Debt immediately before the acquisition. B. Mortgagor agrees to maintain comprehensive general liability i~'~:;urance naming Lender as an additional insured in an amount acceptable to Lender, insuring against claims ar~:;,~g from any accident or occurrence in or on the Property. C. Mortgagor agrees to maintain rental loss or business interrut~l~or~ insurance, as required by Lender, in an amount equal to at least coverage of one year's debt service, arYJ r,~.quired escrow account deposits (if agreed to separately in writing), under a form of policy acceptable to 21. NO ESCROW FOR TAXES AND INSURANCE. Unless otherwise prov~d~d ~n a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 22. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor ,.,,itl provide to Lender upon request, any financial statement or information Lender may deem necessary. Mortgagor v.';,~r;,~s that all financial statements and information Mortgagor provides to Lender are, or will be, accurate, correct, and ,.,,~q}lete. Mortgagor agrees to sign, deliver, and file as Lender may reasonably request any additional documents or c~;rtiiications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this f",.lor/(jage and Lender's lien status on the Property. If Mortgagor fails to do so, Lender may sign, deliver, and file such ~t~:.ments or certificates in Mortgagor's name and Mortgagor hereby irrevocably appoints Lender or Lender's agent as ~,~rney in fact to do the things necessary to comply with this section. 23. JOINT AND INDIVIDUAL LIABILITY; CO-sIGNERS; SUCCESSORS ANE) ASSIGNS BOUND. All duties under this Mortgage are joint and individual. If Mortgagor signs this Mortgage but does ~,~ ,.,,jr~ the Evidence of Debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment ~f the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. Mortgagor agrees that l ~¢~der and any party to this Mortgage may extend, modify or make any change in the terms of this Mortgage or the Evi~l,¢~ce of Debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Mortgage. -IItu 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 Mortgagor ~.~d does not directly secure the obligation which is guarantied, Mortgagor agrees to waive any rights that may prever~ lender from bringing any action or claim against Mortgagor or any party indebted under the obligation including, but r~o~ I,~ited to, anti-deficiency or one-action laws. ©1993, 2001 BankersSyst .... I ....St.C[oud, MN Form AGCO-RES[-WY 1/16/200; ~'ii'~-./~t (page 6 of 8) 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 bre;,~:t~us any covenant in this Mortgage. Mortgagor will also pay on demand all of Lender's expenses incurred in collecting, ~suring, preserving or protecting the Property or in any inventories, audits, inspections or other examination by Lender i~) respect to the Property. Mortgagor agrees to pay all costs and expenses incurred by Lender in enforcing or protecti~j lender's rights and remedies under this Mortgage, including, but not limited to, attorneys' fees, court costs, and other Ic~jal expenses. Once the Secured Debt is fully and finally paid, Lender agrees to release this Mortgage and Mortgagor ;~jrees to pay for any recordation costs. All such amounts are due on demand and will bear interest from the time ct tl~c advance at the highest rate in effect, from time to time, as provided in the Evidence of Debt and as permitted by lavJ. 18. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As t~..,.;c! in this section, (1) "Environmental Law" means, without limitation, the Comprehensive Environmental Response, C~q}ensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, o~di~ances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare. ~;rwironment or a hazardous substance; and (2) "Hazardous Substance" means any toxic, radioactive or hazardous :~;~terial, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentiall,; dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances ~h,fi~ed as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environme~;d 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, tr;,~:;ported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in thee ordinary course of business and in strict compliance with all applicable Environmental Law. B. Mortgagor has not and will not cause, contribute to, or perr,~t the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release or tl~r,;atened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migr;~,~ from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such ~ ,event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Mortgagor has no knowledge of or reason to believe there ~% any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Subsl.,~ce located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environme~t~d Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is m~¥ such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but not the obligation, to participate in any such proceeding including the right to receive copies of any documents relatir~<~ ~o such proceedings. E. Mortgagor and every tenant have been, are and shall remain i~ full compliance with any applicable Environmental Law. F. There are no underground storage tanks, private dumps or o1¢~;~ wells located on or under the Property and no such tank, dump or well will be added unless Lender first co~..;,,~us in writing. G. Mortgagor will regularly inspect the Property, monitor the a,;t~vities and operations on the Property, and confirm that all permits, licenses or approvals required by any appti,;;d~le Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to deteriorate; (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) ~1~,: existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under or ~,hoot the Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environment~,l Law. I. Upon Lender's request and at any time, Mortgagor agree:;, a~ Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who wilt I~erform such audit is subject to Lender's approval. J. Lender has the right, but not the obligation, to perform ar,,,.' of Mortgagor's obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, warr~,~ty or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or ~;:;ig~s harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and re~,~edia~ion costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, ,,~l~ich Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, Lender may release ~l~is Mortgage and in return Mortgagor will provide Lender with collateral of at least equal value to the Property ue~:ured by this Mortgage without prejudice to any of Lender's rights under this Mortgage. L. Notwithstanding any of the language contained in this Morttl~ge to the contrary, the terms of this section shall survive any foreclosure or satisfaction of this Mortgage r~',t/~rdless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claim's; ~¢1 defenses to the contrary are hereby waived. 19. CONDEMNATION. Mortgagor will give Lender prompt notice of ,,~v' action, real or threatened, by private or public entities to purchase or take any or all of the Property, including an7 ~¢~sements, through condemnation, eminent domain, or any other means. Mortgagor further agrees to notify Lender of a~~ l~roceedings instituted for the establishment of any sewer, water, conservation, ditch, drainage, or other district relati~,~j [o or binding upon the Property or any part of it. Mortgagor authorizes Lender to intervene in Mortgagor's name in ~¥ of the above described actions or claims and to collect and receive all sums resulting from the action or claim. Mortt~tjor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking ol all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Mort!/age. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or otl~;r lien document. ~,* ~:'~-'~ 2001 Bankers Sys! .... I .... St. Cloud, MN Form AGCO-F,~'~:~?6/2,)0; 0375 24. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This Morl!j~ge is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise required t~, the laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This M~rtgage may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachments, ~r any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law (~;.:Frcssly or impliedly permits the variations by written agreement. If any section or clause of this Mortgage cannot be e~l~rced according to its terms, that section or clause will be severed and will not affect the enforceability of the remaind,r 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~r~s 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 ~¥ 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 w;:,~,,,~5 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, bui do not limit, this Mortgage: Construction Loan. This Mortgage secures an obligation ir~rr~,~d for the construction of an improvement on the Property. Fixture Filing. Mortgagor grants to Lender a security inter~;i in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Prol~rW. Crops; Timber; Minerals; Rents, Issues and Profits. Mortg;~!t~r grants to Lender a security interest in all crops, timber and minerals located on the Property as well as all rc~ts, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Pa¥~,~[ in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term "Pr~,~rw"). Personal Property'. Mortgagor grants to Lender a security in~cres~ in all personal property located on or connected with the Property. This security interest includes all farm Fr~Jt~cts, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all other iLc~s of personal property Mortgagor owns now or in the future and that are used or useful in the construction, ~v,,r~ership, operation, management, or maintenance of the Property. The term "personal property" specifically e×~:l~des ~hat property described as "household goods" secured in connection with a "consumer" loan as those I~rms are defined in applicable federal regulations governing unfair and deceptive credit practices. Filing As Financing Statement. Mortgagor agrees and acl.,~owledges that this Mortgage also suffices as a financing statement and as such, may be filed of record as , /inancing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, image ~r od~er reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this MorhI~,0e: [] Line of Credit. The Secured Debt includes a revolving line ot credit provision. Although the Secured Debt may be reduced to a zero balance, this Mortgage will remain in effect u~il released, [] Separate Assignment. The Mortgagor has executed or will ~,×ecu~e a separate assignment of leases and rents. If the separate assignment of leases and rents is properly exec~[~d and recorded, then the separate assignment will supersede this Security Instrument's "Assignment of Leases ~d Rents" section. [] Additional Terms. ©1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/16/2,~,, i (page 7 of 8) SIGNATURES: By signing below, Mortgagor agrees to the terms a~,i ~:ovenants contained in this Mortgage and in any attachments. Mortgagor also acknowledges receipt of a copy of this Lk~r~gage on the date stated above on Page 1. [] Actual authority was granted to the parties signing below by resc)h,lion signed and dated Entity Name: (S'?'"'r'4Vi0LETA. LA'DAN;(E k._~_ - / - /(Date)' (Signature) (Date) (S;?,,iLJr e) (Date) [] Refer to the Addendum which is attached and incorporated I~erein for additional Mortgagors, signatures and acknowledgments. ACKNOWLEDGMENT: This instrument was acknowledged before me this 28TH by THOMAS W. LADANYE: VIOLET A. LADANYE. HUSBAND A~ID WIFE My commission expires: ~:~_//. ~J~ Wy°ming Jl ((_ _ ~MKCon]miliion Expires Feb, 11,2006 day of DECEMBER, 2004 } SS. ~ q-N otary Public) STATE OF , COUNTY OF This instrument was acknowledged before me this by __clay of } SS, IBusiness Entity (Title(s)) 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 1/16/20~); (page 8 of 8) ALTA COMMITMENT - 1982 - WY -, 0377 Commitment No.' FA 12832 M SCHEDULE C The land referred to in this commitment is situated in the St:~t~: t)t' Wyoming,. County of Lincoln, and is described as follows: A portion of the property referred to iii Uhe Quitclaim Deed recorded in Book 415PR on pages 421 and 422 of the ,,~cords of the Clerk of Lincoln County, Wyoming with the SW~NW~ of Se~'l ion 8, T30N Rll8W of the 6th P.M., Lincoln County, Wyoming, the ~ctes and bounds being more particularly described as follows: BEGINNING at the reference Spike markl~g the Marlowe A. Scherbel PLS 5368, 1992 location for the Southwest ~ ~i~'ner of said SW~ANIg~; thence N 0°51'52'. E, along the West ik~:n<~: ef said SW~ANWM, 332.29 feet to the Southwest corner of t!~-property referred to and recorded in Book 466PR on page 608 .: said records; thence S 89011'55'' E, along the South 'i !~e ef last said property, 530.19 feet; thence S 1~03'34'' W, 332.49 feet to a ~,~int in the South line of said SWMNW~; thence N 89010'40'' W, along said Soutl~ line, 529.05 feet to the POINT OF BEGINNING.