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HomeMy WebLinkAbout90807984/27/2885 88:84 3878858882 BOSV PAGF- 83/18 RECEIVED 5;2/2005 at 3:41 PM RECEIVING # 908079 BOOK: 584 PAGE: 345 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, State of Wyoming Space Above Thla Line For Record;nc Data REAL ESTATE MORTGAGE (With Future Advance Clause) DATE AND PARTIES. The date cf this Mortgage is 04-7.7.2005 ara as follows: MORTGAGOR: STEPHEN P. CHEEK AND KAREN CHEEK ,;. Husband. and Wife, FO [10X 314 DIAMONDVrLLE, WY 8:3101 and the parties and their addresses Refer to the Addendum which is attached and incorporated herein for additional Mortgagors. LENDER: THE BANK OF STAR VALLEY ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF WYOMING 384 WASHINGTON STREET PO BOX 8007 AFTON. WY 83110 MORTGAGE, For good and valuable conaideration, the receipt and sufficiency 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', SEE SCHEDULE "A" ATTACHED HERETO AND MADE A PART HEREOF The property is located in .I, INCOLN at LOT 3 & 4 (County) , ~MMERER ..... Wyoming 8310] tAddre'-,~) (Ciw) (Zil3 Cod~) 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 producers, and ell existing and future Improvements, structures, fixtures, and replacements that may now. or et any, time In the future, be part of the real estate described above loll referred to as "Property"). The term Property also includes, but is not limited to, any and all water wells, water, ditches, reservoirs, reservoir ~ites and dame located on the real estate and all riparian and water rights associated with the Property, however established. WYOMING. AI3RICULTURAL/COMMERC1ALREALESTATE$I[CURITY1NSTRU['~ENI' [~OTFOII[NMJ~'FH[~tC'FHAORY~'U~E'A~OI~OrF°"CON~UMER~UR~OSE~! fpege I of el 84/27/2885 88:84 3878858882 BDSV PAGE 84/18 O0346 MAXIMUM OBLIGATION LIMIT. Th~ total principal amount of the Secured Debt (hereafter defined) secured by this Mortgage at any one time shell"not'exceed 3;2.0.603.00 This limitation of amount does not include interest, loan charges, commitment fees, brokerage commissions, attorneys' fees and other charges validly made pursuant to this Mortgage and does not apply to advances (or interest accrued on such advances) made under the terms of this Mortgage to protect Lender's security arid to perform any of the covenants contained in this Mortgage. Future advances are contemplated and. along with other future obligations, are secured by this Mortgage even though all or part may not yet be advanced.' Nothing in this Mortgage. however, shall constitute a commitment to make additional or future loans or advances in any amount. Any such commitment would need to be agreed to in a separate writing. SECURED DEBT DEFINED, The term "Secured Debt" includes, but is not limited to, the following: A. The promissory note(s), contract(s), guatanty(ies) or other evidence of debt described below and all extensions, renewals, modifications or substitutions. (When referencillg the debts below it i$ suggested that you include items such as borrowers' names and addresses, note principal omount$, commercial revolving loan agreement's maximum amount, interest rates, variable rate terms, maturity d~tes, etc.) ONE PROMISSORY NOTE DATED 04127/05 IN THE AMOUNT OF ~:20.603.00 B. All future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of debt existing now or executed after this Mortgage whether or not this Mortgage is specifically referred to in the evidence of debt. C. All obligations Mortgagor owes to Lender, which now exist or may later arise. [o the extent not prohibited by law, including, but not limited to, ~iabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by Lender for insuring, preserving or otherwise protecting the Properw and Its value and any other sums advanced and expenses 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. Mortgager's performance under the terms of any instrument evidencing a debt by Mortgagor to Lender and any Mortgage securing, guarantying, or otherwise relating to the debt. If more then one person signs this Mortgage aa Mortgagor, each Mortgagor agrees that this Mortgage will secure all future advances and future obligations described above that are given to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. This Mortgage 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, PAYMENTS. Mortgagor agrees to make all payments on the Secured 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, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to :he Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgager's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Mortgage. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses which Mortgagor may have against par~ies who supply labor or materials to improve or maintain the Property. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document That created a prior security interest or encumbrance on the Property and that may have priority over this Mortgage, Mortgagor agrees; A. To make all payments when due and to perform or comply with all covenants. 8. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to make or permit any modification or extension of, and not to request or accept any future advances under any note or agreement secured by, the other mortgage, deed of trust or security agreement unless Lender consents in writing. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of any lien, encumbrance, transfer, or sale, or contract for any of these on the Property. However, if the Property includes Mortgager's residence, this section shall' be subject to the restrictions Imposed by federal law (12 C.F.R. 591), as applicable. For the purposes of this section, the term "Property" also includes any interest to ell or any part of the Property. This covenant shall run with the Properw and shall remain in effect until the Secured Debt is paid in full and this Mortgage is released. (p~ge 2 Of 8) 84/27/2885 88:84 3878858882 BDSV PAGE 85/18 9. TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortgagor is an entity other than a natural person Isuch as a corporation or other organization), Lender may demand immediate payment if (11 a beneflciai interest in Mortgagor is sold or transferred; (2l [here is a change in either the identff, y or number of members of a partnership or similar entity; or {:3} there is a change in ownership of more than 25 percent et the voting ,.rock of a corporation or similar entity. However, Lender may not demand payment in the above situations if it is prohibited by law es 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 end representations which shall be continuing as long as the Secured Debt remains outstanding: A. Mortgagor is an entity which is duly organized and validly existing in the Mortgager's Mate of incorporation {or organization). Mortgagor is in good standing in all state-" in which 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 Morlgage by Mortgagor and the obligation evidenced by the Evidence of Debt are within the power of MortgagOr, have 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 tan years and has not used any other trade or fictitious name. Without Lender's prior written consent, Mortgagor does not and will not use any other name and will preserve its existing r~ame, trade names and franchises until the Secured Debt is ~atisfled. 11. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs thai ere reasonably necessary. Mortgagor will give Lender prompl: notice of any loss or damage to the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor will not initiate, join in or consent to any change in any private restrictive covenant, zoning oral{hence or other public or private restriction limiting or defining the uses which may be made cf the Property or any part of the Property, without Lender's prior writ'ten con-"ont. Mortgagor will notify Lender of all demands, proceedings, claims, and action~ against Mortgagor or any other owner made under law or regulation regarding usa, ownership and occupancy of the Property. Mortgagor will comply with all legal requirements and restrictions, whether public or private, with respect to the use of the Property. Mortgagor also agrees that the nature of the occupancy and use wtll not change without Lender's prior writ'ten consent. No portion of the Property will be removed, demolished or materially altered without Lender'," prior wrltterl con,.ent axcep! that Mot(eager has the right to remove items of personal property 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 security interest created by this Mortgage. Mortgagor shall not partition or subdivide the Property without Lender's prior written consent. Lender or Lander's agents may, at Lender'-, option, enter the Property at any reasonable time for the purpo,.e of inspecting the Property, Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 12. AUTHORITY TO PERFORM. If Mortgagor fails to perform any of Mortgager's duties under this Mortgage, or any other mortgage, deed of trust, security agreement or other lien document that has priority over [his Mortgage, Lender may, without notice, perform the dutie,, or cau,.e them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgager's name or pay any amount necessary for performarlcs. If any construction on the Property is discontinued or not carried on in a rea,.onable manner, Lender may do whatever is necessary to protec~ 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 proteoting the Property and Lender's security Interest will be due on demand and will bear interest from the date of the payment until paid in 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 assign-", grants, bargains, convey-", mortgages and warrants to Lender a,. 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 end occupancy of the Property, including but not limited to, any exten,.ions, renewal-", modJficatlons or repiacement~ {Leases}. B. Rents, i-"sues and profits, includ[ng but not limited to, security deposits, minimum rents, percentage rents, addlt~onal rents, common area maintenance charges, parking charges, real es[ate taxes, other applicable taxes, insurance premium contributions, t~quJdated damages following default, cancelJa[ion premiums, "loss of rents" insurance, guest receipts, revenues, royal(isa, proceeds, bonuses, accounts, contract rights, general intangibles, and ali rights and claim-" which Mortgagor may have that in any way pertain to or are on account of [he use or occupancy nf the whore or any part of the Property (Rents]. In the event any }tern listed as Leases or Rents is determined tn be personal property, this A,.~ignmen~ wilt also be regarded as a securi[y agreement. (pag,e 3 of' $) 04/27/2005 00:04 3078850002 BOSV PAGE 06/10 00348 Mortgagor will promptly provide I~ender with copies of the. Leases and will certify these Leases are true and correct copies. The existing Leases will be provided on execution oflthe Assignment, and all af the future Leases and any other information with respect to these Leases will be provided immediately after they are executed. Mortgagor may collect, receive, enjoy and use the Rent; so long as Mortgagor is not in default. Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgagor first obtains Lender's written consent. Upon default, Mortgagor will receive any Rents in trust for Lender and Mortgagor will not commingle the Rents with any other funds. When Lender so directs, Mortgagor will endorse end deliver any payments of Renu from the Property to Lender. Amounts collected will be applied at Lender's discretion to the Secured Debts, the costs of managing, protecting and preserving the Property, and other necessary expenses. Mortgagor agrees that this Security instrument is immediately effective between Mortgagor and Lender, This Security Instrument will remain effective during any statutory redemption period until the Secured Debts are satisfied. Unless otherwise prohibited or prescribed by state law, Mortgagor egress that Lender may take actual possession of the Property without the necessity of commencing any legal action or proceeding. Mortgagor agrees that actual possession of the Property is deemed to occur when Lender notifies Mortgagor of Mortgager's default and demands that Mortgagor and Mortgagor's tenants pay all Rents due or to become due directly to Lender. Immediately after Lender gives Mortgagor the notice of default, Mortgagor agrees that either Lender or Mortgagor may immediately notify the tenants and demand that all future Rents be paid directly to Lender. As long as this Assignment is in effect, Mortgagor warrants and represents that no default exists under the Leases, and the parties subject to the Leases have not violated any applicable law on leases, licenses and landlords and tenant. Mortgagor, at its sole cost and expense, will keep, observe and perform, and require all other parties to the Leases to comply with the Leases and any applicable law. if Mortgagor or any party to the Lease defaults or fails to observe any applicable law, Mortgagor will promptly notify Lender, If Mortgagor neglects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender's option, enforce compliance. Mortgagor will not sublet, modify, extend, cancel, or otherwise alter the Leases. or accept the surrender of the Property covered by the Leases (unless the Leases so require) withoUt Lender's consent. Mortgagor will not assign, compromise, subordinate or encumber the Leases and Rents without Lender's prior written consent. Lander does not assume or become liable for the Property's maintenance, depreciation, or other losses or damages when Lender acts to manage, protect or preserve the Property, except for losses and damages due to Lender's gross negligence or intentional torts. Otherwise, Mortgagor will indemnify Lender and hold Lender harmless for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its remedies against any party 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 Mortgager's duties under the covenants, by-laws, or regulations of the condominium or planned unit development. 15. DEFAULT. Mortgagor w[Jl be in default if any of the following occur: A, Any party obligated on the Secured Debt fails to make payment when due; B. A breach of any term or covenant in this Mortgage, any prior mortgage or any construction loan agreement, security agreement or any other document evidencing, guarantying, securing or otherwise relating to the Secured Debt; C. The making or furnishing of any verbal or written representation, statement or warranty to Lender that is false or incorrect in any material respect by Mortgagor or any person or entity obligated on the Secured DebT; D. The death, dissolution, or insolvency of, appointment of a receiver 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 Insecure with respect to any person or entity obligated an the Secured Debt or that the prospect of any payment is Impaired or the value of the Property is impaired;' F. A material adverse change in Mortgegor's business including ownership, management, end financial conditions, which Lender in its opinion believes impairs the value of the Property or repayment of the Secured Debt; or G. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. 16. REMEDIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure, mediation notices or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate 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 of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytir~e thereafter. In addition, Lender shall be entitled to all the remedies provided by law, the Evidence of Debt, other evidences of debt, this Mortgage and any related documents including without limitation, the power to sell the Property, All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at ~aw or equity, whether expressly set forth or not. The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings 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 tater consider The event a default if it continues or happens again. (page 4 of 8) ~---;~-.f-f-f-f-f-f~u G1993. 2001 a~nt~.r~SV~rt~rn~.lnc.,$t. Cl~¢i, MN i;~m ~GC0-R~.SI.WY 1/181200:~ ~ - -- 84/27/2885 gE):04 3078850802 BOSV PAGE 07/18 17. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of Lander's expenses {f Mortgagor breaches any covenant in this Mortgage. Mortgagor wWJ also pay on demand ail of Lender's expenses incurred in collecting, insuring, preserving or protecting the Property or in any inventories, audits, inspections or other examination by Lender in respect to the Property. Mortgagor agrees to pay all costs and expenses incurred by Lender in enforcing or protecting Lander's rights and remedies under this Mortgage, including, but not limited to, attorneys' fees, court costs, and other 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 of the advance at the highest rate in effect, from time to time, as provided in the Evidence of Debt and as permitted by law. 18. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, ll) "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, safe[y, welfare, environment or a hazardous substance; and (2) "Hazardous Substance" means any toxio, radioactive er hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environmental Law. Mortgagor represer~ts, warrant~ and agrees that, excep~ as previously disclosed and acknowledged in writing: A. No Hazardous Substance has heart, is, or will be located, transported, manufactur~, treated, refined, or handled by any person on, under or about ~he Property, except In the ordinary course of business and in strict compliance with all applicable E~vlronmental Law. B. Mortgagor has not and will not cause, contribute to, or permit the release of any HaZardous Substance on Prope~y. C.Mo~gagor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance occurs .. under or about the Prope~y or migrates er threatens to migrate from nearby property; or (2) ~here is a violation of any Environmen~l Law concerning the Property. In such an event, Mortgagor will take all necessa~ remedial action in accordance with Environmental Law. D. Mo~gagor has no knowledge of or reason to believe there is any panding or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lander in writing as soon as Mo~gagor has reason to believe there is any such pending or ~hreatened investigation, claim, or proceeding. In such an evenL Lender has the right, but not the obligation, to participate in any such proceeding including the right ta receive copies of any documents relating to such proceedings. E. Mortgagor and every tenanz have been, are and shall remain in full compliance with any applicable Environmental Law. F. There are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank, dump ar well will be added unless Lender firs~ consents in writing. G. Mortgagor will regularly Inspect the Properw, monitor the activities and operations 0n the Properw, and confirm that all permim, licenses or approvals required by any applicable Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender or Le~der's agen~ m enter and inspect the ProperW and review all records at any reasonable time to determine (1) [he 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 ihat has been released on, under or about the Properw; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environmental Law. I. Upon Lender's reques~ and at any time, Mo~gagor agrees, at Mortgager's expense, ta engage a qualified environmental engineer to prepare an environmental audit of the Prope~y and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approvat. J. Lender has the right, but not the obligation, ~o perform any of Mo~gagor's obligations under this section Mortgager's expense. K. As a consequence of any breach of any representation, warranw or promise made in ~h[s section, (1) Mortgager will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costa, penalties and expenses, including withou~ limitation all costs of litigation and attorneys' lees, which Lander and Lender's successors or ~ssigns may sustain; and (2) at Lender's discretion, Lender may release this Mortgage and in return Mortgagor will provide Lender wi~h collateral of al least equal value to the Property secured by this Mortgage withoul prejudice to any of Lender's righm under this Mortgage, L. Notwithstanding any of the language contained in this Mortgage to the contrary, the terms of this section shall survive any foreclosure or satisfaction of this Mortgage regardless of any passage of titte to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contra~ are hereby waived. 19. CONDEMNATION. Mortgagor will give Lender prompt notice of any action, real 0r threatened, by private or public entities [o purchase or take any or all of the Property, including any 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, dkch. drainage, or other distric~ relating [o or binding upon the Property or any part of Mortgagor authorizes Lender to intervene In Mortgager's name in any of the above described actions or claims and to colle~ and receive all sums resulting fro~ the action or claim. Mo~gagor assigns to Lender the proceeds of any award or claim for damages connected with a conde~natJoR or other taking of all or any part of the Prope~y. Such proceeds shall be considered payments and will be applied as provided in this Mortgage. This assignment of proceeds is subject to the [arms of s~ prior mortgage, deed of trust, securky agreement or other lien document. 94/27/2805 99:94 3978859992 BOSV PAGE 98/19 20. INSURANCE. Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the Property insured against loss by fire, theft and other hazards and risks reasonably associated with the Property due to its type and location. Other hazards end risks may include, for e×empie, coverage against loss due to floods or flooding, This insurance shall be maintained in the amounts and for the periods that Lender requires. What Lender requires purauant to the preceding two sentences can change during the term of the Secured Debt. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor faib to maintain the coverage described above, Le~der maY, at Lender's option, obtain coverage to pro~ec~ Lender's rights in ~he Property according to the terms o~ this Mortgage. All insurance policies and renewal= shall be acceptable to L~nder and shall include a standard "reD.gage clause" and, where applicable, "lender loss payee ctause." Mortgagor shall immediately notify L~nder o~ cancellation or termination ut ~he insurance, Lander shall have the right ~o hold the pol{cles and renewals, if Lender requires, Mortgagor shall immedia~lY give to Lender all receipt~ of paid premiums and renowa~ notices. Upon loss. Morlgagor shall g~ve immediate notice ~o the insurance carder and Lender. Lender may make prool o{ [os~ i~ not made. immedlatelY by Mortgagor. Unless Lender a~d Mortgagor otherwise agree in wri~ipg, insurance proceeds shall be applied to restoration or repair ut the Pr0pe~ty damaged i~ the restoration or repair is economically feasible ~nd Lender's security is not lessened. If ~e restoration or repair is no~ economically ~easible or Lender's security would be lessened, the insurance proceeds shat[ be applied to the Secured Debt, whether or not then due, with any excess paid to Mortgagor. If Mo~gagor abandons the ProPerty, or does ~ot answer within 30 days a notice from Lender that the insurance carrier has o~fered to settle a claim, th'~n Lender may co~lect ~e insurance proceeds. Lender may use ~he proceeds to repair or restore ¢he Property or to pay the Secured Debt whe~he( or not then due. The 30-day period will begin when the notice is given, proceeds te principal shall not extend Unless Lender and Mortgagor otherwbe agree in writing, any application of of the payment. If the Property is or postpone the due date of scheduled payments or change the amount .acquired by Lender, Mortgagor's righ~ to any insurance policies and proceeds resulting from damage ~o the Property before the acquisition shall pass to Lender to the ex~ent of the Secured Deb~ ~mmediatetY before ~he as an additional insured in acquisition. B. Mortgagor agrees to maintain comprehensive g~neral liability insurance naming Lender an amount acceptable to Lender, insuring against claims arising from aPY accident or occurrence in or on the · as required by L~ndet, in an ~mount PropertY. C. Mortgagor agrees to maintain 'reptal loss or business interruption insurance, equal to at lea~t coverage o~ one year's debt service, and raquired-escrow account deposhs (i~ agreed to separately ~n writing), under'a form of policy acceptable to Lender. 21. NO ESCROW FOR TAXES AND INSURANCE- Unles~ otherwise provided in 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 w~ll provide t~ Lender upon request, any financial s~atement or information Lender may deem necessarY, Mortgagor warrants that al~ financial statements and in~ormation Mortgagor provides ¢o Lender are, or will be, ~ccurate, corre~, and complete. Mart9ag°r agrees ~e sign, deliver, and as Lender may reasonably request any additional documen~ or certifications that Lender may con~ider necessary docum~n~ or certificates in Mor~gagor's name and perfect, continue, and preserve Mortgagor's obligations under ~his Mo~gage and Lender's lien status on the Property, Mortgagor fails to do so, Lender may sign, deliver, and file such attorney in ~act to do the thing~ necessary to comply Mo~gagor hereby irrevocably appoin~ Lender or LendePs agent a~ ..... with this se~ion. 23, JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Mortgage are ]oin~ and individual, If Mo~gag°r s~gns this Mortgage but does ne~ s~gn the Evidence of Debt, Mortgagor does so only ~o mortgage Mo~tgagor's interest in ~he prope~Y to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt, Mort9ag°r agrees that Lender and any party to th~s Mortgage may extend, modify or make any change in the terms of this Mortgage o~ the Evidence of Debt without Mortgagor's consent, Such a change will not release MoAgagor from the ¢erms of ~his Mortgage, The dudes and benefits or this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender, If ~his Mortgage secures a Guaran~Y between Lender and Mortgagor and does not directly secure the obligation which guarantied, Mortgagor agrees t~ waive any Hghts that may preven~ Lender ~[om bringing any action or claim against Mortgagor or any party indebted under ~he obligation including, but not limited to, anti-deficiency or one-action laws. 04/27/2805 88:84 3878850882 ]~OSV PAGE 89/10 24. APPLICABLE LAW; SEVERABILITY; 'INTERPRETATION, This Mortgage is governed by the laws of the jUrisdiction in which Lender is located, except to the extent otherwise required by the laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This Mortgage may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachments, or any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that taw expressly or impliedly permits the variations by written agreement, if any section or ctause of this Mortgage cannot be enforced according to its terms, that section or clause will be severed and will not affect the enforceability of the remainder of this Mortgage. Whenever used, the singular shall include the plural and the plural the singular. The captions and headings of the sections of this Mortgage era for convenience only and are not to be used to interpret or define the terms of this Mortgage. Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise required by law, any notice shall be given by delivering it or by mailing it by first class mai] to the appropriate party's address on page 1 of this Mortgage, or to any 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, but do not limit, [his Mortgage: [] Con~uctlon Lean. This Mbrtgage secures an obligation incurred for the construction of an improvement on the Property. [] Fixture Fitlng, Mortgagor grants to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will become fixtures re~ated to the Property. [] Crops; Timber; Minerals; Rants, issues and Profits. Mortgagor 9rants to Lender a security interest in all crops, timber and minerals located on the Property as well as all rents, issues, and profits of them Including, but not lim te.d to, all Conservation Reserve Program {CRP) and Payment in Kind (PIK) payments end similar governmental programs (all of which shall also be included in the term "Property"). [] personal Property. Mortgagor grants to Lender a security interest in all personal property located on or connected with the Property. This security interest includes all farm products, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all other items of personal property Mortgagor owns now or in the future and that are used or useful in the construction, ownership, operation, management, or maintenance of the Property. The term "personal property" specifically excludes that propertv described as "household goods" secured in connection with a "consumer" loan as those terms are defined in applicable federal regulations governing unfair and deceptive credit practices. [] Filing As Financing Statement. Mortgagor agrees and acknowledges that this Mortgage also suffices as a financing statement and as such, may be filed of record as a financing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, image or other reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this Mortgage: [] Line of Credit. The Secured Debt includes a revolving line of credit provision, Although the Secured Debt may be reduced to e zero balance, this Mortgage will remain in effect until released. Separate Assignment. The Mortgagor has executed or will execute a separate assignment of leases and rents. If the separate assignment of leases and rents is properly executed and recorded, then the separate assignment will supersede this Security instrument's "Assignment of Leases end Rents" section. Additional Term=r (poge 7 of $] 04/27/2005 00:04 3078850002 BOSV PAGE 10/10 '.-00:352 SIGNATURES: By signing below, Mortgagor agrees to the terms and covenant~ contained in this Mortgage end in any a~,tachments. Mortgagor also acknowledges receipt of a copy of this Mortgage on the data stated above on Page 1. [] Actual authority was granted to the parties signing below by resolution s~gned end dated_ Entity Name; (mgna=u,a)STEPHEN P. CHEEK 04/27/05 IDn~.e) [Slgn~tureJ IDa~el (Slgnaturel (Date) [] Refer to the Addendum which is attached and incorporated herein for additional Mortgagors, signatures and acknowledgments. ACKNOWLEDGMENT: STATE OF ~¥pMING , COUNTY OF Lincoln } ss. This instrument was acknowledged before me this 27TH day of L~PRIL, 200~ b¥_~TEPHEN P. CHFFK:KARFN CHEEK by her attorney :[-~ fact Stephen ~, Cheek My commission expires: Harch 12, 2009 (Notary Publ;cl STATE OF STATE OF , COUNTY OF This instrument was acknowledged before me this by MY commission expires: day of (Narne o~' Bueino~s ar EntiW1 on behalf of the business or entity. 2001 a.nkem S¥1l~m=, Ina., St, Cl~ud, ~N Felm ACCO'RESI°WY 1iIGI20OS (pag~. 8 of 8/ 00353 Schedule A Lots 3 and 4 of Hams Fork View Subdivision, Lincoln County, Wyoming as described on the official plat thereof.