Loading...
HomeMy WebLinkAbout96- Promissory Note, $50,000. I . , PROMISSORY NOTE $50,000.00 BOZEMAN, MONTANA July '22.... , 1996 FOR VALUE RECEIVED, the undersigned, hereinafter called "Borrower", promises to pay to the order of CITY OF BOZEMAN, a Montana municipal corporation, hereinafter called "City", negotiable and payable to payee at 411 East Main Street, Bozeman, Montana, the principal sum of FIFTY THOUSAND AND N0/100 DOLLARS ($50,000.00). Equal monthly payments of Two Hundred Eight and 33/1 00 Dollars ($208.33) shall be made on or before the tenth day of each month, commencing with the first month following full occupancy. The last payment of Two Hundred Nine and 13/100 Dollars ($209.13) shall be made on or before January 10, 2017. All payments must be received by 4:00 p.m. on the date due. A late payment fee of five percent (5%) of the scheduled payment shall be added beginning with the eleventh (11 th) day of the month in which the payment is due. The Borrower shall have the right to pay, in addition to any monthly payment, any additional sum or to pay the entire balance remaining due at any time. Such payments shall not relieve Borrower from making the next regularly scheduled payment. In the event of default in the payment of any installment under this Note, and if the default remains uncured for more than Thirty (30) days after written notice thereof to Borrower, then upon nonpayment thereof after notice in writing to Borrower, the entire principal sum shall at once 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 Makers consent to any and all extensions of time, renewals, waivers or modifications that may be granted by the Holder hereof, with respect to payment of security, or any part thereof, with or without substitutions. This Note is secured by a second position Montana Trust Indenture of even date herewith, upon real estate situated in the County of Gallatin, State of Montana, and generally described as follows: Lots 3A, 3B, 4A and 4B of Block 9 of Valley Creek Subdivision, Phase I, according to the oflicial plat thereof on file and of record in the office of the Clerk and Recorder of Gallatin County, Montana. All notices to be given hereunder by either party hereto shall be in writing and given by personal service or first class mailing utilizing registered or certified mail, return receipt requested. Said method of notice is deemed sufficient service thereof, and shall be deemed given as to the date when served or deposited in any post office. Either party may change address by written notice - by certified or registered mail to the other. The initial address for receipt of notice is as follows: Reach, Inc. City of Bozeman 2134 Industrial Drive P.O. Box 640 Bozeman, Montana 59715 Bozeman, Montana 59771-0640 BY~ ~o rt 1. Tallon, Executive Director " ' . . LOAN AGREEMENT THIS AGREEMENT is made and entered into this~ day of :rIAl V , 1996, by and between REACH, INC. whose mailing address is 2134 Industrial cfrive, 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 Fiftv Thousand Dollars ($50.000.00) at 0% interest for twenty 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 second position after Security Bank of Bozeman, whose mailing address is P.O. Box 910, Bozeman, Montana and American Bank, whose mailing address is P.O. Box 1926, Bozeman, Montana pursuant to a Combination Deed of Trust, Security Agreement and Fixture Financing Statement dated June 21, 1996 and recorded as number 327021 in Book 164 of Mortgages, page 1563 in the Gallatin County Clerk and Recorder's Office. 2. Terms for Repayment The Debtor agrees to pay to Lender the sum of Two Hundred Eight Dollars and 33/100 ($208.33) per month for Two hundred Thirty-nine months, and a final payment of Two Hundred Nine Dollars and 13/100 ($209.13). The first monthly payment is due the first month following full occupancy. The payment due date is the first of each month and no later than the 10th of each month. If the payment due date is a government holiday or other non-working day, the payment is due the first working day after the holiday or non- working day. All payments must be received by 4:00 o'clock p.m. on the day due. A late payment fee of 5% of the scheduled payment shall be added beginning the 11th day of the month in which the payment is due. 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 wi II 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 insurance policy or policies with the Lender within thirty days of the execution of this Reach lnc. Loan p, I 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 will 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 of creditors by, or the commencement of any proceeding under any bankruptcy or Reach fllC, Loall p. 2 , . " 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, Gallatin County, Montana. Reach Inc. Loan p. 3 -, . 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, including 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 contribution 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. 17. 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 Valley Creek Duplex for the term of the loan and that the property remain a licensed and certified group home. Should the property be sold or not maintained for the designated group, the Note shall become due and payable on demand. REACH INC. ST A TE OF MONT ANA ) : ss. County of Gallatin ) On this ~ay Of~, 1996, before me, the undersigned, a Notary Public for the State of Mont a, pers nally appeared Robert I. Tallon, known to me to be the Executive Director of REACH INC., and acknowledged to me that he executed the within instrument for and on behalf of REACH INC.. Reach Inc. Loan p. 4 . - . , , IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. . ~~ (SEAl) NOTARY PUBLIC FOR THE STATE OF MONTANA Residing in Bozeman lJ ";100 ~ My Commission expires CITY OF BOZEMAN .......,.,"'~.,..~-........... ( 2 L '"'----. ) . ,.t\./v'\t~ " Ja es E. Wysocki City Manager ATTEST: ()~ J -'~ Robin L. Sullivan Clerk of Commission STATE OF MONT ANA ) : ss. County of Gallatin ) On thi~~ay of , 1996, before me, the undersigned, a Notary Public for the State of Mon na, p sonally appeared lAMES E. WYSOCKI and ROBIN 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 the day and year first above written. .. (SEAL) NOTARY PUB IC FOR THE STATE OF MONTANA Residing in Bozeman 2D gZ My Commission expires --U. . . Reach lnc. Loan p, 5 "', . ~ ....;.. . , ;0 . filM 178 PACfJ478 MONTANA TRUST INDENTURE THIS TRUST INDENTURE, Made this ~ of July, 1996, between REACH, INC. whose mailing address is 2134 Industrial Drive, Bozeman, Montana, as GRANTOR, PAUL 1. LUWE, Bozeman City Attorney, with principal office at 411 East Main Street, Bozeman, Montana, as TRUSTEE, and CITY OF BOZEMAN, with principal office at 411 East Main Street, Bozeman, Montana, as BENEFICIARY, WITNESSETH: That Grantor hereby irrevocably GRANTS, BARGAINS, SELLS, CONVEYS AND WARRANTS TO TRUSTEE IN TRUST, nevertheless, WITH POWER OF SALE, that certain real property, which does not exceed thirty (30) acres in area, situated in the County of Gallatin, State of Montana, particularly described as follows, to-wit: Lots 3A, 3B, 4A and 4B of Block 9 of Valley Creek Subdivision, Phase I, according to the official plat thereof on tile and of record in the 011ice of the Clerk and Recorder of Gallatin County, Montana I TOGETHER WITH: (1) All buildings, tixtures and improvements thereon and all water rights, rights-of-way, tenements, hereditaments, privileges and appurtenances thereunto belonging, now owned or hereafter acquired, however evidenced, used or enjoyed with said premises or belonging to the same; (2) All right, title and interest hereafter acquired in or to any of said premises, hereby also releasing, relinquishing 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 fixtures now or herealler installed 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 for the purposes of this instrument a part of the realty; and (4) All of the rents, issues and profits of said premises, SUBJECT, HOWEVER, to the right, power and authority hereinafter conterred upon Bene/kiary to collect and apply such rents, issues and profits; FOR THE PURPOSE OF SECURING: (1) Payment of the principal sum of Filly Thousand and NollOO Dollars ($50,000,00) with interest thereon according to the terms of a promissory note, dated July -' 1996 (and any extensions and/or renewals or modHkations thereof), made by Grantor payable to the order of Beneficiary in installments, the last of which, unless sooner paid, will be due and payable on January 10,2017; (2) Payment of all sums expended or advanced by Bene/ieiary under or pursuant to the terms hereot; 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 PURPOSES, 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 a good and workmanlike manner any building which may be constructed, damaged or destroyed thereon, and to pay when due all claims for labor performed and materials furnished there/or; to comply with all laws, covenants and restrictions affecting said property; not to commit or permit waste thereof; not commit, sutler or permit any act upon said property in violation of the law; to do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general; and if the loan secured hereby or any part thereof is being obtained tor the purpose of financing construction of improvements on said property, Grantor further agrees: (a) To commence construction promptly and to pursue the same with reasonable diligence to completion in accordance with plans and specifications satisfactory to the Beneficiary, and (b) To allow Beneficiary to inspect said property at all times during construction. Trustee, upon presentation to it of an affidavit signed by Beneficiary, setting torth facts showing a default by Grantor under this numbered paragraph, is authorizcd to accept as true and conclusive all facts 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 Beneficiary may require, on the improvements now existing or hereafter crected or placed 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 Beneficiary, In the event of loss, Grantor shall give immediate notice to Bene/iciary, who may make proof of loss and each insurance company concerned is hereby authorized and directed to make payment tor such loss directly to Deneticiary instead of to Grantor and Bencliciary jointly, and the insurance procceds, or any part thereot: may be applied by Ueneliciary, at its option, to the reduction of the indebtedness hereby sccurcd or to the restoration or repair of the property damaged, 3_ To deliver to, pay for und maintain with Beneticiary until the indebtedness secured hereby is paid in full, such evidence of title as Beneficiary may require, including abstracts of title or policies of title insurance und any extensions or renewals thereof or supplements thereto. 4, To pay before delinquent ull taxes and assessments, including interest and penalties, affecting said premises and improvcments; to promptly pay and discharge all encumbrances, charges and liens on said property which at any time are, or appear to be, prior or superior hereto, In addition to the payments due in accordance with the terms of the note hereby secured, Grantor shall, at the option and on demand or the Beneficiary, pay to the Beneficiary monthly and concurrently with payment of principal and interest, a sum equal to one-twelfth (1112) of the annual taxes, asscssmcnts, insurance premiums, maintenance and other charges upon tlie property, as estimated by the Beneliciary, in trust nevertheless for Grantor's use and benetit and tor payment by Beneficiary 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 herein, to pay all costs, fees and expenses of this trust, including cost or search and . . ...,.... .. , . .. " ", ~ . ~ ~ :~ '. , fILM 178 PACl3479 ~. ;" ". !.>i .. evidence of title, advertising and recording expense, documentary taxes and Trustee's and attorney's fees as allowed by law. 6. Should Grantor fail 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 from any obligation hereof, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trnstee being authorized to enter upon said property for such purposes. 7, To pay immediately and without demand all sums 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, for 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; Beneticiary 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 otherwise alter the terms of payment of any of the indebtedness, (c) Alter, substitute or release any property securing the indebtedness; Trustee may, at any time and from time to time, upon the written request of Benelieiary: (a) Consent to the making of any map or plat of the properly, (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 thereof, (d) Reconvey, without warranty, all or any part of the property, 9a. Both partics agree that Beneficiary may, if Beneticiary so eJects, 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 Beneticiary elects to procure such insurance, Grantor shall promptly reimburse Beneficiary the full amount of the initial premium for such insurance, During the term of this Indenture, Grantor shall each month deposit in escrow with Beneticiary 1/12th of the next following anticipated annual premium for such insurance, said deposit to be made at the same time and place as Grantor makes monthly payments on the aforementioned promissory note. Beneficiary may 1hereafter pay all annual renewal premiums from such escrow, Should the amount deposited in escrow be insufficient to 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 RS may be sufficient 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 of this Indenture, Mortgagor further agrees to deposit in escrow with Beneficiary 1/12 of the annual premium for 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 for 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 BeneHciary, during the continuance of these trusts, all rents, issues, royalties, and protits of the property affected by this Trust Indenture and of any personal property located thereon, Until Grantor shall default in tbe payment of any indebtedness secured hereby or in the performance of any agreement hereunder, 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 Grantor 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 propeliy affected hereby, to collect all rents, royalties, issues, and profits, Failure or discontinuance of Beneficiary at any time or from time to time to c,ollect any such monies shall not in any manner affect the subsequent enforcement by Beneliciary of the right, power, and authority to collect the same, Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Trust Indenture to any such tenancy, lease or option, 11. Upon any default by Grantor hereunder, Benelieiary 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 the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in its own name sue for or otherwise collect said rents, issues, and pro tits, including those past due and unpaid, and apply the same, less cost and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may I determine, 12, The entering upon and taking possession of said property, the collection of such rents, issues, and profits or the proceeds of tire or other insurance policies, or compensation or awards for any taking or damage of said property, and tbe ilpplicatiOl1 or release thereof 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 SlllllS secured hereby shall immediately become due and payable at the option of the Beneficiary, Beneficiary shall deposit with Trustee the note and all documents evidencing expenditures secured hereby. 14. After the lapse of such time as may then be required by law tbllowing 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 payable in cash in lawful money of the United States at the time of sale. The person conducting the sale may, for any cause he deems expedient, postpone the sale for a period not exceeding tifteen (15) days, or such additional period as may be allowed by law, by public proclamation by such person at tbe 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 its deed conveying said property so sold, but without any covenant of warranty, express or implied. The recitals in Ule deed of any matters or facts shall be conclusive proof of the truthfulness thereoI: 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 search and evidence of title, . . . . I'.... .J/" , .. .. /. t"'i . 178 PACE3480 fiLM advertising and recording expense, documentary taxes and Trustees' and attorney's fees, Trustee shall apply the proceeds of sale to payment of all amounts secured hercby and due hereunder, including all sums expended by the Trustee and Beneficiary, or either of them, with accrued interest thereon at the rate of eight percent (8%) per annum from the date of expenditure thereat: and the surplus, if any, to the person or persons legally entitled thereto; provided that the Trustee, in its discretion, may deposit such surplus witll the County Clerk and Recorder of the county in which the sale took place. t5, Grantor agrees to surrcnder possession of the hereinabove described trust property to the purchaser at the aforesaid sale on the tenth (10th) day following said sale, in the event such 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 Beneficiary 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 immediatcly duc and payablc and force lose this Trust Indcnturc in the manner provided by law for the foreclosure of mortgages on real property and Beneficiary shall be entitled to recover in such proccedings all costs and expenses incident thereto, including a reasonable attorney's fee in such amount as shall be fIxed by tile Court, 18, Except as may be otherwise provided herein, Grantor agrees to pay to Beneficiary or Trustee the costs and expenses, 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 hcreunder by a party hereto or the breach of any provision hereof I by a party hereto, including but not limited to an action to obtain possession of the above described property after exercise of tlle power of sale granted hereunder. 19. This Trust Indenture shall apply to, inure to the benet1t of and bind all parties hereto, their heirs, legatees, devisees, administrators, executors, succcssors and assigns, All obligations of the Grantor hereunder are joint and several. The term "Beneficiary" shall mean the owner and holder, including any pledgee, 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. Trustec is not obligatcd to notify any party hereto of a pending sale under any other ,trust indenture or of any action or proceeding in which Grantor, Beneficiary, or Trustee stlnll be a party, unless brought by Trustee, , l,., ,. . 21. This Trust Indenture is made within the State of Montana pursuant to the Small Tract Financing Act of Montana and is not made or taken in substitution for any m0l1gage in existence on the effective date of said Act. 22, Grantor requests that a copy or any notice of default and of any notice of sale hereunder be mailed to him at the address hereinabove set forth. IN WITNESS WHEREOF, the Grantor has hereunto set his han ttY.l1~11 RedO~]:h.('" STATE OF MONTANA) ) ss. County of Gallatin ) On this$ay of July, 1996, before me, a Notary Public for the State of Montana, personally appeared ROBERT J. TALLON, Executive Director of Reach, Inc., known to me to be the person(s) whose name is subscribed to the within instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. '- I~~ ' ',; ,,:::,.,., ' ~ er~, ,,'~ . ~j'" . ^" :1 "R'.. ~'i otary Public for the State of ,: ~ ~~ , :,~,' Montana, r~si~ing at ~oztma~ q~ \ .EA\j.) :~ ' My CommtsslOn Exptres {J' . fftS ,,~,""i '-' ~ "", ,. (' ,!)' , 'T ' ,.",. , :"'\.~&\f~[W\", > .,(,. l '''''i;?OF;''~O~ ' OVER >> )" J' .. . . !' . '" ~ .. " .. .. , .' . ~: filM 1 'i8 PACIJ481 l,.t REQUEST FOR FULL RECONVEYANCE TO: TRUSTEE 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: ~~.~ . .. 353973 PNDEXED q. State of MORt., County of Gallatin. SS ~led for record NOVEMBER 10 , 19......2L at 2:01 pM., and recorded in 8o~ 178 of MORTGAGES page 3478 $JW.1.&'J ~ Recor~er. 8y c3j;f' ./~ Deplty FEE: $24.00 CRG RT: CITY OF BOZEMAN ATTN: ROBIN SULLIVAN 0" . " , -"'. ,:, ~'- ~- ~-- -. , ,~ -' .- ..'-' ..- \ --.