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Home My WebLink About906906· 028,-> CONSTRUCTION LOAN AGREEMENT This CONSTRUCTION LOAN AGREEMENT (this "Agreement") is executed January 31, 2005 by and between JON L AND MARY J JOHNSON ("Lender"), and by Matt & Gretchen Maloney ("Borrower"). mo RECITALS: Borrower is purchasing the following described real property located in Lincoln County, Wyoming (the "Property"). LOT-54 LIVINGSTON SUBDIVISION LINCOLN COUNTY, WYOMING B° Lender has agreed to loan to Borrower, in the terms and conditions set for this Agreement, funds to be used for the purpose of purchasing the Property and constructing a building and other improvements on the Property. AGREEMENTS NOW, THEREFORE, for and in consideration of the mutual covenants set forth herein, the parties as set forth below. 1. The following terms shall ha~;e the following meanings when used in the Agreement: (a) The term "Building" means the building to be constructed on the Property pursuant to the Plans and Specifications. (b) The term "Improvements" means and includes without limitation the Building, fixtures utilities, water and sewer facilities, and other improvements to be constructed pursuant to the Plans and Specifications. (c) The term "Plans and Specifications" means Borrower's plans and specifications for the Project. (d) The term "Project means the Property and all Improvement contemplated by the Agreement to be constructed on the Property, including all work necessary to make the Property complete and usable for the Borrower's intended purposes. (e) The term "Loan" means the loan made by Lender to Borrower pursuant to this Agreement. .. RECEIVED 3/7/2005 at 11:07..AM RECEIVING # 906906 BOOK: 580 PAGE: 282 j ~A,~,i,~,4~ WAGNER .' %1' '1,',":",':', '- CO LINCOLN ';'-,;:':: LERK, KEMMERER, VVY o (f) The term "Related Documents" means and includes without limitation the promissory note, deed of trust, and any other instruments agreements and documents, whether now of hereafter existing, executed in connection with the Loan. Lender agrees to loan to Borrower an amount not to exceed One Hundred Seventy Thousand Dollars ($170,000.00) at an annual interest rate of 10% which shall be used by Borrower for the purchase and construction of the Project (the "LOan Funds"). Borrower shall use the Loan Funds solely for the payment of(i) the purchase price and closing costs for the Property; (ii) the costs and expenses of constructing the Improvements in accordance with the Plans and Specifications; and (iii) all other costs and expenses incurred or to be incurred by Borrower n connection with the purchase and construction of the Project. Simultaneously with the execution of this Agreement, Borrower shall execute and deliver to Lender a Promissory Note in the principal amount of One Hundred Seventy Thousand Dollars ($170,000.00) which shall be considered as evidence of any and all advances on the Loan to be made by Lender to Borrower under this Agreement (the "Promissory Note"). The amount of the Promissory Note refers to the maximum principal amount of the Loan Funds, which Lender has committed to loan to Borrower pursuant to this Agreement, and it is limited to the total of all advances on the Loan actually made by Lender to Borrower pursuant to the terms of this Agreement. The Loan shall be repaid pursuant to the terms of the Promissory Note. Simultaneously with the execution of this Agreement, Borrower shall execute and deliver to Lender a Deed to Trust against the property, which shall secure the payment and performance of all liabilities and obligations of Borrower to Lender incurred pursuant to the terms of this Agreement and the Promissory Note. Borrower shall provide to Lender an ALTA lender's standard coverage policy of title insurance insuring that the Deed of Trust is upon recordation a valid first lien of the Property. Lender's obligation to make the initial advance of Loan Funds under this Agreement shall be subject to Borrower's fulfillment of the following: (a) Borrower shall have furnished to Lender a complete set of the Plans and Specifications showing all Improvements for the Project, together with copies of all permits and approvals of any governmental authorities necessary for the construction of the Project. (b) Borrower shall have delivered to Lender the following insurance policies or evidence thereof: (i) a builder's risk property insurance 2 O OgDOg policy covering the Improvements, naming Lender as loss-payee and providing that is will not be canceled without at least ten (10) days prior written notice to Lender; and (ii) owner and general contractor commercial general liability insurance, naming Lender as an additional insured. 6. The following provisions relate to the disbursements of the Loan Funds by Lender: (a) Each application for disbursement shall be on a form approved by Lender and supported by such evidence as Lender may reasonably require. (b) Borrower shall obtain and attach to each application acknowledgments of payments of all sums due and releases of mechanic's and material men's liens fi.om any party having lien rights for labor, materials and equipment provided prior to such application. (c) Borrower shall apply for disbursements only with respect to completed work on the Project. 7. Borrower covenants and agrees with Lender to: (a) Cause the Improvements to be constructed in a diligent and orderly manner and substantially in accordance with the Plans and Specifications and all applicable laWs, ordinances, codes and regulations. Borrower shall complete the Project on or before October 1. 2005. (b) Use the Loan Funds solely for payment of costs and expenses directly related to the purchase and construction of the Project. (c) Cause all claims for labor, materials and equipment provided in connection with the construction of the Improvements to be fully paid and discharged in a timely manner. (d) Perform and comply with all terms, conditions, and provisions set forth in the Agreement and Related Documents. Each of the following shall constitute an event of default under this Agreement: 0£'85 o (a) Failure of Borrower to make any payment on the Loan when due or within any applicable grace or cure period in accordance with the Promissory Note. (b) Failure of Borrower to perform any other term, obligation, covenant, or condition contained in this Agreement of the Related Documents, and such failure continues for thirty (30) days after Borrower's receipt of written notice fi'om Lender. Upon the Occurrence of any event of default, Lender may, at its option, do any one or more of the following without further notice to Borrower: (i) terminate this Agreement, (ii) institute appropriate proceedings to enforce this Agreement, (iii) withhold further disbursements of the Loan Funds, (iv) expend funds neceSsary to remedy the defauk, (v) take possession of the Property ad continue construction of the Project, (vi) accelerate maturity of the Promissory Note and demand payment of all sums due under the Promissory Note, (vii) bring an action of the Promissory Note, (viii) foreclose the Deed of Trust in any manner available under law, and (ix) exercise any other right or remedy available under the Promissory Note, the Related Documents or at law of in equity. 10. This Agreement is subject to the following miscellaneous provisions: (a) Nothing is this Agreement shall be construed to constitute the creation of a partnership or joint venture between Lender and Borrower or any contractor. This Agreement does not create a contractual relationship with and shall not be construed to benefit or bind Lender in any way or create any contractual duties by Lender to any contractor or subcontractor of Borrower. (b) This Agreement and Related Documents constitute the entire understanding and agreement of the parties as to the matters set forth herein and therein. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. (c) If there isany litigation or other action taken by either party to enforce or interpret any provisions of or rights arising under this Agreement, the non-prevailing party shall pay to the prevailing party all costs and expenses incurred by the prevail/ng party, including but not limited to reasonable attorney fees and costs. (d) This Agreement is binding upon and insures to the benefit of the parties hereto and there respective successors and assigns. '4 (e) Ifa court of competem jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to any person or circumstance, such finding shall not render those provisions invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provisions shall be deemed to be modified to be within the limited of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforCeable. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Idaho. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. LENDER JON L. AND MARY J. JOHNSON ~ Jon L. Johnson BORROWER MATT AND GRETCHEN MALLONEY 5