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HomeMy WebLinkAbout96- HRDC Promissory Note . . . PROMISSORY NOTE $150.000.00 Bozeman, Montana January 22, , 1996 THE UNDERSIGNED, HUMAN RESOURCES DEVElOPMENT COUNCIL, INC. (HRDC), PROMISES TO PAY TO THE ORDER OF: CITY OF BOZEMAN, Bozeman, Montana, the sum of One Hundred Fifty Thousand Dollars ($150.000.00), for value received, together with interest thereon at the rate of Zero percent (0%) per annum, in installments as follows, to-wit: The sum of Five Thousand Dollars ($5000.00) to be paid annually. The first annual payment is due six months from the date the Certificate of Occupancy is issued to HRDC for the project known as West Babcock Apartments located on North 24th Avenue, Bozeman, Montana. The date of this first payment is hereinafter referred to as the anniversary date. All future payments must be made on or before the anniversary date thereafter. The last payment is due in the year 2026. If the anniversary date is a government holiday or other non-working day, the payment is due the last working day before the holiday or non-working day. All payments must be received by 4:00 o'clock p.m. on the day due. A late fee of Ten Dollars ($10.00) shall be added to all payments between one and ten days late. Thereafter, the late payment fee shall be 2 % of the scheduled payment. The maker shall have the privilege and option of prepaying any portion of this obligation prior to its due date. In the event of default in the payment of any installment of principal or interest, and if the default remains uncured for more than Thirty (30) days after written notice to Debtor, then upon nonpayment thereof after notice in writing to Debtor, the entire balance due hereunder shall become due and payable in full within thirty (30) days from said second notice. Failure to exercise this option shall not constitute waiver of the right to exercise the same in the event of any subsequent default. In the event of default, it is agreed that the Holder of this Note may recover such necessary expenses as may be incurred in collection, including reasonable attorney's fees, which reasonable attorney's fees include expenses and fees of the City Attorney, including fees on appeal. The maker consents to any and all extensions of time, removals, waivers and modifications that may be granted by the Holder hereof with respect to payment of security or any part thereof, with or without substitution, without such extension of time releasing HRDC from liability hereon. This obligation is secured by a validly executed Loan Agreement and Montana Trust Indenture upon certain real estate located in Gallatin County, Montana, and identified more specifically in the Trust Indenture, all the terms, covenants, conditions, provisions, stipulations and agreements of which Agreement and Trust Indenture are hereby made a part of this instrument to the same extent and with the same effect as if fully set forth herein. HUMAN OURCES DEVELOPMENT (CO NCI , INC. By: ~ I Jeff Rupp, E \ ., . LOAN AGREEMENT THIS AGREEMENT is made and entered into this 22ndlay of January , 1996, by and between HUMAN RESOURCES DEVELOPMENT COUNCIL, INC. (HRDC) whose mailing address is 321 E. Main St., Suite 300, Bozeman, Montana, hereinafter referred to as "Debtor" and the CITY OF BOZEMAN, a Montana municipal corporation, whose mailing address is P.O. Box 640, Bozeman, Montana, 59771-0640, hereinafter referred to as "Lender", according to the following terms and conditions: 1. Amount of Loan The Lender agrees to loan the sum of One Hundred Fifty Thousand Dollars ($150,000.00) at 0% interest for thirty years. This loan originates from funds through the Community Affordable Housing Fund Advisory Board, and is secured by a Promissory Note and Montana Trust Indenture executed by the Debtor and incorporated herein by reference. It is understood that the Trust Indenture will be in third position behind Western Federal Savings and Loan Association and Local Initiatives Support Corporation, and will become a second position Trust Indenture when the Montana Board of Housing buys the Western Federal Savings and Loan Association and Local Initiatives Support Corporation loans. 2. Terms for Repayment The Debtor agrees to pay to Lender the sum of Five Thousand Dollars ($5000.00) per year. The first annual payment is due six months from the date the Certificate of Occupancy is issued to Debtor for the project known as West Babcock Apartments located on North 24th Avenue, Bozeman, Montana. The date of this first payment is hereinafter referred to as the anniversary date. All future payments must be made on or before the anniversary date thereafter. The last payment is due in the year 2026. If the anniversary date is a government holiday or other non-working day, the payment is due the last working day before the holiday or non-working day. All payments must be received by 4:00 o'clock p.m. on the day due. A late fee ofTen Dollars ($10.00) shall be added to all payments between one and ten days late. Thereafter, the late payment fee shall be 2 % of the scheduled payment. The Debtor is encouraged to seek other funding sources during the life of the loan. Prepayment of any amount beyond the scheduled payment, up to and including the entire remaining balance on the date payment is made, shall be without penalty. 3. Insurance Debtor will maintain insurance on the property and the project at all times sufficient to cover loss by fire, theft or other hazard sufficient to protect Lender's interest in said property or project. Insurance proceeds shall be payable to Lender for the monetary amount of Debtor's obligation to Lender. However, the Debtor may, upon written approval of the Lender, in the event of loss by fire, theft or other hazard, apply insurance proceeds received by the Lender towards the payment of the loan or use the proceeds to rebuild the improvements destroyed or damaged. If Debtor chooses this later option, the Lender will hold the insurance proceeds and pay them to materialmen, contractors, and laborers for services rendered and materials furnished and delivered in the rebuilding or the improvements. It is understood that it is the Debtor's duty to see that no liens are filed upon the premises by reason of any rebuilding. The Debtor will place copies of the HRDC (West Babcock Apartments) Loan p. 1 . insurance policy or policies with the lender within thirty days of the execution of this agreement. lender shall have no liability whatsoever for any loss that may occur by reason of the omission or lack of coverage of any such insurance. During the term of this loan agreement, when the Debtor renews the insurance policy by payment of an additional year's premium, the Debtor will provide proof of payment of the premium to the lender so as to keep the lender advised at all times that the property is insured. Failure to so notify the lender is an event of default of this agreement. 4. Non-discrimination The Debtor agrees to abide by the provisions of Title VI of the Civil Rights Act of 1964, section 109 of the Housing and Community Development Act of 1974, the Age Discrimination Act of 1974, and section 504 of the Rehabilitation Act of 1973 regarding discrimination based upon race, color, national origin, sex, age or physical challenge. 5. Additional Assurances The Debtor will remain fully obligated under the provision of this agreement notwithstanding its designation of any third party or parties, with written approval of the lender, for the undertaking of all or any part of the program with respect to which assistance is being provided under this agreement. The Debtor wi II comply with all applicable laws, rules and regulations of the lender, the State of Montana, and the United States Government. 6. Litigation The Debtor states that to the best of its knowledge and belief there are no suits or proceedings pending or threatened against or effecting it which, if adversely determined, would have a material adverse effect on its financial condition. In addition, to the knowledge of the Debtor, there are no proceedings by or before any governmental commission, board, bureau or other administrative agency pending or threatened against the Debtor. 7. Default The parties agree that time is of the essence in this agreement. Debtor shall be in default under this agreement upon the happening of any of the following events or conditions: a. Debtor defaults in the payment or performance of any obligation, covenant or liability contained or referred to herein or in any note evidencing the same; b. Any warranty, representation or statement made or furnished to lender by or on behalf of Debtor proves to have been false in any respect when made or furnished; c. Any event which results in the acceleration of the maturity of the indebtedness of Debtor to others under any indenture, agreement or undertaking; d. Death, dissolution, termination of existence, insolvency, business failure, appointment of a receiver of any part of the property of, assignment for the benefit HRDC (West Babcock Apartments) Loan p. 2 . . . of creditors by, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against, Debtor or any guarantor or surety for Debtor, or entry of any judgment against them, or failure of any guarantor or surety for Debtor to provide Lender with financial information promptly when requested by Lender. e. Debtor fails to pay any local, real, or personal property taxes, to include special assessments, specific to the property; 8. Notice of Default Upon the occurrence of any default hereunder and at any time thereafter, the Lender may declare Debtor to be in default and thereafter give Debtor written notice setting forth the action or inaction which constitutes the default and giving Debtor thirty (30) days in which to correct the default. If Debtor fails to correct the default within thirty (30) days of this notice, the Lender may notify Debtor in writing that the full balance due upon the note is then due and payable in full within thirty (30) days. It is agreed by the parties hereto that the provisions of this Agreement provide reasonable and sufficient notice to be given to Debtor in case of Debtor's failure to perform any of its covenants and that this notice is sufficient for Debtor to rectify its actions or inactions of default. 9. Demand and Notice Any demand upon or notice to either party shall be addressed and mailed to the address as identified at the top of page one of this agreement or by personal service. Mailing shall be by depositing with the United States Postal Service, postage pre-paid, and shall be effective when served or three days after deposit in the United States Mail, whichever occurs first. 10. Waiver No waiver of any default shall constitute a waiver of any other default, nor shall such waiver constitute a continuing waiver. No waiver of any term or condition of this agreement shall constitute a waiver of any other term or condition, whether or not similar, nor shall such waiver constitute a continuing waiver. 11. Amendments This agreement may not be altered or amended except by a writing signed by the Debtor, accepted by Lender, and attached hereto. 12. Severability If one or more provisions of this agreement is deemed to be unlawful or unconstitutional or stricken by a court of law, all valid provisions that are severable from the invalid provisions shall remain in effect and be valid and binding on the parties. If any provision is in conflict with any applicable statute, rule of law, court order or judgment, then such provision shall be deemed to be modified to conform with such statute, rule or law, court order or judgment. 13. Construction and Venue This agreement shall be interpreted according to the laws of the State of Montana. Venue in any dispute arising from this agreement shall be in the Eighteenth Judicial District, HRDC (West Babcock Apartments) Loan p, 3 . . . Gallatin County, Montana. 14. Attorney's Fees In the event that it becomes necessary for any party to this Agreement to retain an attorney to enforce any terms or conditions of this Agreement, then the prevailing party or parties shall be entitled to costs and reasonable attorney's fees, i ncl ud i ng fees of in-house counselor City Attorney costs and including fees on appeal. 15. Hold Harmless The Debtor waives any and all claims and recourse against the Lender, including the right of contributi,on for loss and damage to persons or property arising from, growing out of, or in any way connected with or incident to this agreement. Further, the Debtor will indemnify, hold harmless, and defend the Lender against any and all claims, demands, damages, costs, expenses or liability arising out of the performance of the Debtor. 16. Assignment This agreement is not assignable by Debtor without written consent of the Lender, said consent not to be unreasonably withheld. 1 7. Titles The titles used in this agreement are for reference purposes only. 18. Transferability This Agreement shall be binding upon the heirs, personal representatives, successors and assigns of the parties. This Agreement and the contemporaneous Promissory Note are not transferrable without written permission from the Lender, and are subject to the condition that the Debtor own the property described as the West Babcock Apartments for the term of the loan and that the property remain affordable to persons below 60% of the area median income as defined and updated annually by the Montana Board of Housing or their successors. Should the property be sold or not maintained for the designated income group, the Note shall become due and payable on demand. HUMAN RESOURCES DEVELOPMENT CO NCIL INC. By: Jeff Rupp, E . \ ST A TE OF MONT ANA ) : 55. County of Gallatin ) On th is c2;2. day of-~ /1/2-;" , 1996, before me, the undersigned, a Notary HRDe (West Babcock Apartments) Loan p. 4 .. . ~ Public for the State of Montana, personally appeared IEFF RUPP, known to me to be the Executive Director of HRDC, and acknowledged to me that he executed the within instrument for and on behalf of HUMAN RESOURCES DEVELOPMENT COUNCIL, INC.. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the da?d year first above written_ Jl / -I i ,. .' /, ( (SEAL) " -,.~'i..""V NO AR PUBLIC OR TH E STATE OF MONT ANA Residir j in Bozeman My Commi5sion expires //-/".:}...')-, I/{f , - .~-~ -- ~ - - - ~. CITY OF BOZEMAN . ATTEST: ~ ;/d~ Robin L. Sullivan Clerk of Commission ST A TE OF MONT ANA ) : ss. County of Gallatin ) On this~4t!}\aay 0 , 1996, before me, the undersigned, a Notary Public for the State of Mo ana, pers nally appeared lAMES E. WYSOCKI and ROB I N L. SULLIVAN, known to me to be the City Manager of the City of Bozeman and the Clerk of Commission of the City of Bozeman respectively and acknowledged to me that they executed the within instrument for and on behalf of the CITY OF BOZEMAN. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal e day and year first above written. . ~{ (SEAL) OTARY PUB IC FOR THE STATE OF MONTANA Residing in Bozeman ~ My Commission expires (P 10 B HRDC (West Babcock Apartments) Loan p. 5 .--.. ~ ....,ji-r.. tit- . . , FILM 178 PACf3474 MONTANA TRUST INDENTURE THIS TRUST INDENTURE, Made this d?:ld_ day of January, 1996, between HUMAN RESOURCES DEVELOPMEN'r COUNCIL, INC. (HRDC) whose mailing address is 321 East Main Street, Suite 300, Bozeman, Montana 59715, as GRANTOR, PAUL 1. LUWE, Bozeman City Attorney, with principal office at 411 East Main Street, as TRUSTEE, and CITY OF BOZEMAN, with principal office at 411 East Main Street, Bozeman, Montana, as BENEFICIARY, WITNESSETH: That Grantor hereby irrevocably GRANTS, I3ARGAINS, SELLS, CONVEYS AND WARRANTS TO TRUSTEE IN TRUST, nevertheless, WITH POWER OF SALE, that certain real property, which docs not exceed thirty (30) acres in area, situated in the County of Gallatin, State of Montana, particularly described as follows, to-wit: Lot I of I3lock I and Lot I of Ulock 2, West I3abcock Subdivision which is more particularly deseribed as tollows: The NEy. of Section II, Township 2 South, Range 5 East, P,M,M., City of Bozeman, Gallatin County, Montana, as appears on Certilicate of Survey # 1840 TOGETHER WITH: (I) All buildings, tixtures and improvements thereon and all water rights, rights-ot~way, tenements, hereditament~, privileges and appurtenances thereunto belonging, now owned or herealier acquired, however evidenced, uscd or enjoycd with said premises or belonging to the same; (2) All right, title and interest hcrcatler acquired in or to any of said premises, hereby also releasing, rclinquishing and waiving all exemptions, rights of surviving spouse and homestead in or to said premises, vested or inchoate; (3) All heating, air conditioning, plumbing and lighting facilities, equipment and lixtures now or hcreaftcr install cd upon or within said premises, used or proper or necessary to constitute the said premises a habitable, usable or operating unit-all of said property being designated and deemed lor the purposes of this instrument a part of the realty; and (4) All of the rents, issues and profits of said premises, SLJI3JECT, HOWEVER, to the right, power and authority hereinafter conferred upon Bencticiary to collect and apply such rents, issues and profits; FOR THE PURPOSE OF SECURING: (I) Payment of the principal sum of One lIundred Fifty Thousand and No/IOO Dollars ($150,000,00) with interest thereon according to thc terms of a promissory note, dated January 4-.-, 1996 (and any extensions and/or renewals or modifications thereot), made by Grantor payable to the order of Beneticiary in annual installments of Five Thousand and No/IOO Dollars ($5,000.00), the last of which, unless sooner paid, shall be due and payable on or before the anniversary date in the year 2026; (2) Payment of all sums cxpended or advanced by I3ene1ieiary under or pursuant to the terms hereof, together with interest thereon as herein provided; and (3) Performance of each agreement of Grantor herein and in said note contained, TO PROTECT THE SECURITY OF THIS TRUST INDENTURE, AND fOR OTHER PURI)OSES, GRANTOR AGREES: I, To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete and restore promptly and in l\ good and workmanlike manner any building which may be constructed, damaged or destroyed thereon, and to pay whcn due all claims for labor performed and matcrials furnished theretor; to comply with all laws, covenants and restrictions alfecling said property; not to commit or permit waste thereof; not commit, suffer or permit any act upon said property in violation of the law; to do all other acts which trom the character or use of said property may be reasonably necessary, the spedlic enumerations herein not excluding the general; and if the loan secured hereby or any part thcrcof is being obtained for the purpose of financing construction of improvemenls on said property, Grantor furthcr ugrccs: (a) Tn commence construction promptly and to pursuc thc same with reasonable diligcnec to completion in accordance with plans and specifications satisfactory to the Beneficiary, and (b) To allow I3eneliciury to inspect said propcrty at all times during construction. Trustce, upon prcsentation to it of an affidavit signed by I3eneliciary, setting lorth facls showing a default by Grantor under this numbered paragraph, is uuthorilcd to accept as true and conclusive alll~\cts and statements therein, and to act thereon as provided in this instrument, and as allowed by law. 2, To provide, maintain and deliver to Beneficiary, insurance of such type or types and amounts as I3eneliciary may require, on thc improvcments now existing or herealler erected or placcd on said property, Such insurance shall be carried in companies approved by the Beneficiary with loss payable clause in favor of and in lorm acceptable to Beneticiary. In the event of loss, Grantor shall give immediate notice to lJeneficiary, who may make proof of loss and each insurance company concerned is hercby authorized and directed to make paymcnt lor such loss directly to Beneficiary instead of to Grantor lInd Ueneficiary jointly, and the insurance proceeds, or any part thereol; may be applied by l3eneticialY, at its option, to the reduction of thc indcbtcdness hereby secured or to the restoration or repair of the property damaged, 3. To dcliver to, pay for and maintuin with Benetlciary until the indebtedness secured hereby is paid in full, such evidence of title as l3eneficiary may require, including abstracts oflillc or polieics of lit Ie insurance and any extensions or renewals thercofor supplements thereto, 4, To pay before delinquent all taxes and assessments, including interest and penalties, aftecting said premises and improvements; to promptly pay and dischargc all encumbrances, charges and liens on said property which at any time are, or appear to he, prior or superior hcreto, In addition to the payments due in accordance with the terms of the note hereby secured, Grantor shall, at the option and on demand of the Bencticial'Y, pay to the Beneticiary monthly and concurrently with payment of principal and interest, a sum equal to one.twelfth (1112) of the annual taxes, assessments, insurance premiums, maintenance and other ebarges upon the property, as estimated by the Beneficiary, in (rust nevertheless lor Grantor's use and benetlt and tor payment by l3eneficiary of any such items when due, The failure of Grantor to make any such payments shall constitute a default under this trust. 5. Except as otherwise expressly provided hercin, to pay all costs, lees and expenses of this trust, including cost of search and evidence of title, advertising and recording expense, documentary taxes and Trustee's and attorney's tces as allowed by law, 6. Should Grantor lilil to make any payment or to do any act as herein provided, then Beneficiary or Trustee, without obligation so to do and without notice to or demand upon Grantor and without releasing Grantor tram any obligation hereot; may make or do the same in such manner and to such extent as either may deem necessary lo protect lhe security hereof; Beneficiary or Trustee being authorized to enter upon . " ~ r ~..... " ..~".." filM 178 PACl3475 said property for such purposes. 7, To pay immediately and without demand all SlllllS expended hereunder by Beneficiary or Trustee, with interest from date of expenditure at the rate of eight percent (8%) per annum until paid, and the payment thereof shall be secured hereby, IT IS MUTUALLY AGREED THAT: 8. Without affecting the liability of any person, including Grantor, tor the payment of any indebtedness secured hereby, or the lien of this Trust Indenture on the remainder of the property for the full amount of any indebtedness unpaid, Beneficiary and Trustee are respectively empowered as follows; Beneficiary may from time to time and without notice: (a) Release any person liable for payment of any of the indebtedness, (b) Extend the time or otberwise aller the terms of payment of any of tbc indebtedness, (c) Aller, substitute or release any property sccuring the indebtedness; Trustee may, at any timc ,lnd from time to time, upon the written rcquest of Beneficiary: (a) Consent to the making of any map or plat of the property, (b) Join in granting any easement or creating any restriction thereon, (c) Join in any subordination or other agreement affecting this Trust Indenture or lien or charge thereot: (d) Reconvey, without warranty, all or any part of the property. 9a, Both parties agree that Beneficiary may, if Beneficiary so elects, procure and thereafter continue during the term of this Indenture, for as long as Beneficiary desires, a form of insurance acceptable to Beneficiary insuring Beneficiary against any loss sustained by Beneficiary by reason of any default in payment by Grantor of the secured indebtedness, If Bencl1eiary elects to procure such insurance, Grantor shall promptly reimburse Beneficiary the full amount of the initial premium tor such insurance, During the term of this Indenture, Grantor shall each month deposit in escrow with Beneficiary I1l2th of the next following anticipated annual premium tor such insurance, said deposit to be made at the same time and place as Grantor makes monthly payment~ on the aforementioned promissory note. Beneficiary may thereafter pay all annual renewal premiums from such escrow, Should the amount deposited in escrow be insuff1cientto pay any renewal premium in full as the same become due, Grantor shall immediately upon demand deposit with or pay to Beneficiary such additional amount as may be su/1lcient to pay the renewal premium in full, Failure of Grantor to payor deposit any of the amounts referred to herein shall constitute a default of the terms ofthis Indenture. Mortgagor further agrees to deposit in escrow with Beneficiary 1/12 of the annual premium tor hazard insurance coverage and annual taxes and assessments each month. Failure of the Grantor to deposit any of the above amounts in the escrow account shall constitute a default of the terms of this indenture_ 9b, Upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Trust Indenture and said note to Trustee tor cancellation and retention and upon payment by Beneficiary of its fees, Trustee shall reconvey to Grantor, without warranty, the property then held hereunder. 10, As additional security, Grantor hereby assigns to Beneticiary, during the continuance of these trust~, all rents, issues, royallies, and protit~ of the property affected by this Trust Indenture and of any personal property located thereon, Until Grantor shall default in the payment of any indebtedness secured hereby or in the performancc of any agreement hercundcr, Grantor shall have the right to collect all such rents, issues, royalties, and profits earned prior to default as they become due and payable, If Orantor shall default as aforesaid, Grantor's right to collect any of such monies shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, royalties, issues, and profits, Failure or discontinuance of Beneficiary at any time or from time to time to collect any such monies shall not in any manner affect the subsequent enforeemcnt by Beneficiary of the right, power, and authority to collect the same. Nothing contained herein, nor the excrcise of the right by Beneficiary to collect, shall be, or be construed to be, an aftirmation by Beneficiary of any tenancy, lease or option, nor an a~sumption of liability under, nor subordination of the lien or charge of this Trust Indenture to any such tenancy, lease or option. II. Upon any dcfault by Grantor hereundcr, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court (Grantor hereby consenting to the appointment of Beneficiary as such receiver), and without regard to the adequacy of any security for thc indebtedness hereby secured, enter upon and takc possession of said propcrty or any part thereof, in its own name suc for or otherwise collect said rents, issues, and profits, including those past due and unpaid, and apply the same, less cost and expenses of operation and collection, including reasonablc attorney's fees, upon any indebtedness seeurcd hereby, and in such order as Bcneficiary may determine, 12, The entering upon and taking possession of said property, the collection of such rents, issues, and prol1ts or the proceeds of tirc or other insurance policies, or compensation or awards for any taking or damagc of said property, and the application or release thereot' as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 13, Time is of the essence hereof. Upon default by Grantor in the payment of any indebtedness secured hereby or in the performance of any agreement hereunder, all sums secured hereby shall immediately become due and payable at the option of the I3eneficiary. Beneficiary shall deposit with Trustee the note and all documents evidcncing expenditures secured hereby, 14. After the lapse of such time as may then be required by law following the recordation of notice of sale, Trustee, or its attorney, without demand on Grantor, shall sell said property on the date and at the time and place designated in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine (but subject to any statutory right of Grantor to direct the order in which such property, if consisting of several known lots or parcels, shall be sold), at public auction to the highest bidder, the purchase price payablc in cash in lawful money of the Unitcd Statcs at the time of sale, 'The person conducting the sale may, for any cause he deems expedient, postpone the sale for a pcriod not exceeding fifteen (15) days, or such additional period as may be allowed by law, by public proclamation by such person at the time and place fixed in the notice of sale, and no other notice of the postponed sale need be given. Trustee shall execute and deliver to the purchaser it~ deed conveying said property so sold, but without any covenant of warranty, express or implied, The recitals in the deed of any matters or facts shall be conclusive proof oflhe truthfulness thereof Any person including Beneficiary (but excluding Trustee) may bid at the sale, After deducting all costs and expenses of exercising the power of sale and of the sale, including cost of scarch and evidence of lille, advertising and recording expense, documentary taxes and Trustees' and attorncy's fees, Trustee shall apply the proceeds of sale to payment of all amounts secured hereby and due hereunder, including all SlllllS expcnded by the Trustee and Beneticiary, or cither of them, with accrued interest thereon at the rate of eight percent (8%) per annum from the date of expenditure thereof, and the surplus, if any, to the person or persons legally entitled thcrcto; provided that the Trustee, in its discretion, may deposit such surplus with the County Clerk and Recorder of the county in which the sale took place. If' ... .. ..,- ;> .. . . II,: . fILM 178 PACE3476 .i;t. ;. 15, Grantor agrees to surrender possession of the hereinabove described trust property to the purchaser at the aforesaid sale on the tenth (lOth) day following said sale, in the event sueh possession has not previously been delivered by Grantor. 16, Each abstract of title, title insurance policy and all other evidences of title, and all hazard insurance policies placed or deposited with the Bencliciary shall be deemed an incident to the title to the trust property and upon foreclosure by exercise of power of sale, or otherwise, shall pass to the purchaser and the same are hereby pledged as additional security for payment of the indebtedness secured hereby. 17, Upon the occurrence of any default hereunder, Beneficiary shall have the option to declare all sums secured hereby immediately due and payable and foreclose this Trust Indenture in the manner provided by law lor the foreclosure of mortgages on real property and Bene1iciary shall be entitled to recover in such proceedings all costs and expenses incident thereto, including a reasonable attorney's fee in such amount as shall be fixed by the Court. 18, Except as may be otherwise provided herein, Grantor agrees to pay to Beneficiary or Trustee the costs and cxpenses, including a reasonable attorney's fee, incurred by either of them in instituting, prosecuting or defending any Court action in which Grantor does not prevail, if such action involves the interpretation hereof or performance hereunder by a party hereto or the breach of any provision hereof by a party hereto, including but not limited to an action to obtain possession of the above described property after exercise of the power of sale granted hereunder, 19. This Trust Indenture shall apply to, inure to the benetit of and bind all parties hereto, t11eir heirs, legatees, devisees, administrators, cxecutors, successors and assigns. All obligations of the Grantor hereunder are joint and several. The term" Beneficiary" shall mean the owner and holder, including any plcdgee, of the note secured hereby, In this Trust Indenture, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 20. Trustee accepts this Trust when this Trust Indenture, duly executed and acknowledged, is made a public record as provided by law, Trustee is not obligated to notify any party hereto of a pending sale under any other trust indenture or of any action or procceding in which Grantor, Ilene1iciary, or Trustee shall bc a party, unless brought by Trustee, 21. This Trust Indenturc is made within the Stale of Montana pursuant to the Small Tract Financing Act of Montana and is not made or taken in substitution tor any mortgagc in existence on the etlcctive date of said Act. 22. Grantor requests that a copy of any notice of default and of any notiee of sale hereunder be mailed to him at the address hereinabove set torth. has hereunto set his hand the day and year first hereinabove written, .),~ STA TE OF MONTANA ) ) ss, County of Gallatin ) On this day of January, 1996, before me, a Notary Public for the State of Montana, personally appeared JEFF RUPP, known to me to be the Executive Director of the Human Resources Development Council, Inc, and the person(s) whose name is subscribed to the within instrument, and acknowledged to me that he executed the same for and on behalf of the Human Resources Development Council, Inc.. '.;, ".,.0/1:. \.'\,~ 1 "IN.~ITNE~S WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first 'b.p. ~"'." ,,' o.w ,'f, , ' , ~ ........ ~ ~ . , : ~ .....:'t.A~~. ~~~' vl~,<"~ e.'i\<': ";.: :'~l." ' . : . .:. ' ~. EAL 0;< ~, ...t5 .'. . r~ i' cPo . . S . ,,'. ~ ,.",:" .,~:, .ft """ '" " " ., 'I-> ...,. ." \,,:lj\,)' '~.' ~ ~.. ;!",,::,,'(,i,\ .~,' "," I _. .. ~ ~>... e-.,. ........ O~... <OF ~ "" '~<..~,~ :"~ ",.."w"''''~ OVER ~ J' .,~ . ' ~ -.., J!:: "'"'. . fiLM 178 PACE3471 REQUEST FOR FULL RECONVEYANCE TO: TRUSTEE January _ 1996 The undersigned is the legal owner and holder of the note and all other indebtedness secured by said Trust Indenture, has been fully paid and satisfied and you are hereby requested and directed on payment to you of any sums owing to you under the terms of said Trust Indenture, to cancel said note above mentioned and all other evidences of indebtedness secured by said Trust Indenture delivered to you herewith, together with said Trust Indenture and to reconvey, without warranty, to the parties designated by the terms of said Trust Indenture, all the estate now held by you thereunder, -~ Mail reconveyance to: 353972 IINDEX!Dq Stata of MotIt., County of e~!?tin, ss l\ited for rscord NOVEMBER 10 I 19-2,L . at 2: 00 pM., and recorded tn Book 178 81 MORTGAGES page 347 4 .st.fl~ ~ Recordlll'. By CiJ-2f: ?'~ Ilepaly FEE: $24.00 CRG RT: CITY OF BOZEMAN ATTN: ROBIN SULLIVAN , ~ . . .t ..... 1-" -.. ~ ' ..~,. - ~ ....._--... .." "~ .- - . " r' ... -",....~. . ~ - ...., -'