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HomeMy WebLinkAbout97- Bozeman Interfaith Housing Promissory Note ) , I 1 , PROMISSORY NOTE $25,000.00 BOZEMAN, MONTANA :.~,~ ~ ..~' (;t , 1997 FOR VALUE RECEIVED, the undersigned, BOZEMAN INTERFAITH HOUSING, INC. (II), 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 TWENTY FIVE THOUSAND AND NOll 00 DOLLARS ($25,000,00) with interest thereon at the rate of four percent (4%) per annum until paid in equal monthly payments of One Hundred Pifty One and 50/1 00 Dollars ($151,50), said paymcnts to be made on or before thc first day of cach month, commencing with the first month following full occupancy. All payments must be received by 4:00 p.m. on the date due. A late payment fee of fivc pcrccnt (5%) of the scheduled payment shall be added beginning with the eleventh (lith) day of the month in which thc payment is due. The Borrower shall have the right to pay, in addition to any monthly payment, any additional sum or to pay thc cntirc balancc rcmaining due at any time. Such payments shall not rclicvc Borrowcr from making thc ncxt rcgularly scheduled payment. In thc cvcnt of dcfault in the payment of any installment under this Note, and if thc dcfault rcmains uncurcd for more than Thirty (30) days after written notice thereof to Borrower, then upon nonpaymcnt thereof alter notice in writing to Borrower, the entire principal sum shall at oncc bccomc due and payable in full within thirty (30) days from said second notice. Failure to exercise this option shall not constitutc waiver of thc right to exercise thc samc in thc evcnt of any subscqucnt dcfault. In the event of default, it is agreed that the Holder of this Note may rccovcr such nccessary expenses as may be incurred in collection, including reasonable attorney's fees, whieh reasonablc attorncy's fees include expenses and fees of the City Attorncy, including fees on appeal. The Makers consent to any and all cxtcnsions of timc, rencwals, waivers or modifications that may be granted by the Holder hcrcof: 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 thc County of Gallatin, State of Montana, and generally dcscribcd as follows: Lot 2 of the Bozeman Interfaith Housing 2 Subdivision, located in the Southwest one-quarter (SWY4) of Section 11, Township 2 South, Rangc 5 East, P,M.M., according to the otlicial plat thereof on file and of record in the otlice of the County Clerk and Recorder, Gallatin County, Montana Bozcman Intcrfaith II Note Page 1 . , 1 T All noticcs to be given hereunder by cithcr party hcrcto shall be in writing and givcn by pcrsonal service or first class mailing utilizing registered or certified mail, return receipt requested. Said method of notice is decmcd sufficient service thereof, and shall be deemed given as to the date when served or depositcd in any post office. Either party may change address by written notice by ccrtified or registered mail to thc other. The initial address for receipt of notice is as f()lIows: Bozeman Interfaith l-lousing [II] City of Bozeman P.O. Box 7090 P.O. Box 640 Bozeman, Montana 59771-7090 Bozeman, Montana 59771-0640 ft-.-., ~ 1 'f> It- I3 y: ' ", . _____ G'-"'O~""-I --L~ _....~ Rev. Glover Wagner, Presidcnt flOlClllan Inlcrlilith II Notc Page 2 \ J , I . 1 .. LOAN AG REEMENT 'ftJ THIS AGREEMENT is made and entered into thist~ day of /)7{j~L(d~__ , 1997, by and between BOZEMAN INTERFAITH HOUSING II whose mailing address is 2118 S. Third, 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 Twenty-five Thousand Dollars ($25,000.00) at 4 % 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 first position until such time as the Montana Department of Commerce or Montana Board of Housing shall award loan or grant monies to Bozeman Interfaith Housing II. At such time as the Montana Board of Housing or the Montana Department of Commerce loan or grant awards are made, it is understood that this Trust Indenture shall then be in second position. Lender agrees that this Trust Indenture shall be subordinate to security instruments, including but not limited to, trust indentures or mortgages of the Montana Board of Housing or Montana Department of Commerce. 2. Terms for Repayment The Debtor agrees to pay to Lender the sum of One Hundred Fifty-one Dollars and 50/100 ($151.50) per month for 239 months and a final payment of One Hundred Forty- nine Dollars and 73/100 ($149.73) pursuant to the amortization schedule which is attached hereto and incorporated herei n by reference. The payment shall be due on the fi rst day of each month, commencing with the first month following full occupancy. Ifthe payment due date is a government holiday or other non-working day, the payment is due the next 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. Beginning with the third month in which any payment is past due, the payment or payments which is three months or more past due, together with the 5% penalty, shall earn interest at the rate of 5% per annum. 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 rebu i Id the improvements destroyed or damaged. If Debtor chooses the latter option, the Lender will Bozeman Inteifaith Housing II Loan p, I '. l . i ... hold the insurance proceeds and pay them to materialmen, contractors, and laborers for services rendered and materials furnished and del ivered 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 (30) days before beginning of construction of dwelling units. 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 Civi I 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 bel ief there are no su its or proceedings pending or threatened against or affecting 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 of this agreement. Debtor shall be in default under this agreement upon the occurrence 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 Boze/nan Interfai/h Housing /I Loan p.2 , " . . " j' 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 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 (3) 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 th~~ 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. Bozeman Interfaith Housing II Loan p. 3 , ( . . , ) , 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. 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. 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: Lot 2 of the Bozeman Interfaith Housing 2 Subdivision, located in the Southwest One-Quarter (SW!4) of Section 11, Township 2 South, Range 5 East, P.M.M., according to the official plat thereof on file and of record in the office of the County Clerk and Recorder, Gallatin County, Montana 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. BOZEMAN INTERFAITH HOUSING II By: k~ ~~ l"),,,"~>~, Rev. Glover Wagner, President Buzeman Interfaith IIuusinR II Luan p, 4 ---- --......- ~ -' , . . . , CITY OF BOZEMAN By: Ron Brey, Acting . ger ATTEST: c2~;/ ~ Robin L. Sullivan, Clerk of Commission ST A TE OF MONT ANA ) ) ss. County of Gallatin ) On thi~ day of L/l"}tMcA...: , 1997, before me, the undersigned, a Notary Publ ic for the State of Montana, personally appeared the REVEREN D GLOVER WAG N ER, known to me to be the President of Bozeman Interfaith Housing I I, and the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same for and On behalf of BOZEMAN INTERFAITH HOUSING II. IN WITN ESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and ye~tA~~~t above written. \\\\\\1\ '1/1"11. j.1:-\\\ \ 0 e H~ ~/'l/0 ~~ G,...'......-...'V ~ Jw' Co A..,qJ""6\AR/-1(", ~. {1;.JClcLr'--' i'" ,'.""-'>.' .... ,%, ~C<. .' ;' ~.., 'r: (\L: '~ Notary Public for the State of ::, ;~ - : ~ '. .,.":,1.,,,.4 ..-: E Montana, residing at Bozeman . ~- My Commission Expires /o/~J..lq9 , ,"",~f.f " ....~~'$ ','.....-' ,,,,-\ ,~ .' f' r" r-'~ '- ~'};\S\', \\'~' l",..> I I', .,\\\,\ ;"."i/:!;::i':'i\\\i\\\ ST A TE OF MONT ANA ) ) ss. County of Gallatin ) On thisd1~ay of /7]l-1.4--1<-. , 1997, before me, the undersigned, a Notary Public for the State of Montana, personally appeared RON BREY and ROBIN L. SULLIVAN, known to me to be the Acting City Manager and the Clerk of Commission, respectively, of the City of Bozeman and the persons whose names are subscribed to the within instrument, and acknowledged to me that they executed the same for and on behalf of the City of Bozeman [nte,faith Houshl!; II Loall p, 5 . " .. - J < Bozeman. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year fi rst above written. " /7- L--? -- , " -'- ..- {~~c;:-~.J _LZti~<'4L/ otary Public for the Stale of-' Montana, Residing at Bozeinan ' , ", My Commission Expires If; '/v~-:>J f Bozeman Intertaith Housing 11 Loan p. Ii .' . @). ' , '-\ ~ FPJI 179~::,:t4JQs KOBTDIA TRUST IItDBBTT ~ THIS TRUST INDENTURE, Made this J I day of lV () iI-e/i//;S!9(, ~ 1997, between BOZEMAN INTERFAITH HOUS~NG, INC. [II] (INTERFAITH) ~ whose mailing address is P.O. Box 7090, Bozeman, Montana 59771- \J'-'" 7090, as GRANTOR, PAUL J. LUWE, Bozeman city Attorney, with 'it: 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, 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: .i..iitiiiiiJiiiiIA1fiii MiHlbShij)""""""""""""""""""" ::::::::;:::;:::::;:::::::::::::::::::;:;:;:::::;:;:; TOGETHER WITH: (1) All buildings, fixtures 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 hereafter installed upon or within said premises, used or proper or necessary to constitute the said premises a habitable, usable or operating uni t-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 conferred upon Beneficiary to collect and apply such rents, issues and profits; FOR THE PURPOSE OF SECURING: (1) Payment of the principal sum of Twenty-five Thousand and NO/100 Dollars ($25,000.00) with 1 :I I , 1II i ntH 179 pt,n43fiJ interest thereon according to the terms of a promissory note, dated March 26, 1997, 1997 (and any extensions and/or renewals or modifications thereof), made by Grantor payable to the order of Beneficiary in monthly installments of One Hundred Fifty-One and 50/100 Dollars ($151. 50), and the last payment of One Hundred Forty-Nine and 73/100 Dollars ($149.73); (2) Payment of all sums expended or advanced by Beneficiary 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 PURPOSES, GRANTOR AGREES: 1. 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 therefor; to comply with all laws, covenants and restrictions affecting 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 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 for 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 forth facts showing a default by Grantor under this numbered paragraph, is authorized 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 erected 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 form acceptable to Beneficiary. In the event of loss, Grantor shall give immediate notice to Beneficiary, who may make proof of loss and each insurance company concerned is hereby authorized and directed to make payment for such loss directly to Beneficiary instead of to Grantor and Beneficiary jointly, and the 2 nu~ 179 f~t{4310 insurance proceeds, or any part thereof, may be applied by Beneficiary, at its option, to the reduction of the indebtedness hereby secured or to the restoration or repair of the property damaged. 3. To deliver to, pay for and maintain with Beneficiary 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 and any extensions or renewals thereof or supplements thereto. 4. To pay before delinquent all taxes and assessments, including interest and penalties, affecting said premises and improvements; 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 of the Beneficiary, pay to the Beneficiary monthly and concurrently with payment of principal and interest, a sum equal to one-twelfth (1/12) of the annual taxes, assessments, insurance premiums, maintenance and other charges upon the property, as estimated by the Beneficiary, in trust nevertheless for Grantor's use and benefit and for 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 of search and 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 Trustee 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 3 ~. I -'I .. . . . flU~ 1 i9 '~tf4312 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 Beneficiary, during the continuance of these trusts, all rents, issues, royalties, and profits 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 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 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 enforcement by Beneficiary 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, 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 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 profits, 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 determine. 12. The entering upon and taking possession of said property, the collection of such rents, issues, and profits or the proceeds of fire or other insurance policies, or compensation or awards for any taking or damage of said property, and the application 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 sums secured hereby 5 .. , . ~ . ., . . . IfIrt~ t'l9ffi1iGi4JIJ 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 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 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 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 its 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 of the 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 search and evidence of title, 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 hereby 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 thereof, and the surplus, if any, to the person or persons legally entitled thereto; 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. 15. Grantor agrees to surrender 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, Benef iciary shall have the option to declare all sums secured hereby 6 14 I ~l .. ~ i 1 \ ,. ~ . nJJ 1~mt4::314 immediately due and payable and foreclose this Trust Indenture in the manner provided by law for the foreclosure of mortgages on real property and Beneficiary 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 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 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 benefit of and bind all parties hereto, their heirs, legatees, devisees, administrators, executors, successors 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. Trustee is not obligated 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 shall be a party, unless brought by Trustee. 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 mortgage in existence on the effective date of said Act. 22. Grantor requests that a copy of any notice of default and of any notice of sale hereunder be mailed to him at the address hereinabove set forth. 23. upon recordation of any security instrument, including but not limited to a trust indenture or mortgage, between Grantor and the Montana Board of Housing or between Grantor and the Montana Department of Commerce, this trust indenture shall be subordinate to the lien of the Montana Board of Housing or Montana Department of Commerce security instrument or instruments. IN WITNESS WHEREOF, the Grantor has hereunto set his hand the 7 jil l ..~ .. ~ Jill .... ,. . ffl!l~ 179~Uf.O(J15 day and year first hereinabove written. ~. ~.~ - - <..-....J- '2>- "-- ?~,. 7.S I N .:zz=.. STATE OF MONTANA ) ) ss, County of Gallatin ) On this /q-d1 day of ..LYoJcrnhur , 1997, before me, a Notary Public for the state of Montana, personally appeared the REVEREND GLOVER WAGNER, known to me to be the President of the Bozeman Interfaith Housing, Inc. (II) 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 Bozeman Interfaith Housing, Inc. (II) IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal ,the day and year first abOV~"tt,en. ,p......."..... ~. &N b .~ /0 ')- ~~, Qh~ ~ ~~ ....... 'T. ~ ' . . ~.1... ...... I'd' \ '-'r)~"" ' : ......... \';A~ . ' : "Of l \-\QlAR/Al .. 0 i Notary publlC:: ~or the : ~; \' : r": Montana, resldlng at i \ SE' A. '\f; : My Commission Expires . '(> ~.. _. .. ':.. ". #*,-~ ... tP.. .... .. .:J>.~ ~ .....;/.?r, ....~~.~..:{\"t-~........ ."".f OF MO"".~'" ..........' 8 '" ...~ ItJ : .. ' . . '" ~ 1flf11M t~~UE4316 REQUEST FOR FULL RECONVEYANCE TO: TRUSTEE 1997 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 l1111you 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: city of Bozeman, P.O. Box 640, Bozeman, Montana 59771-0640 ,.- 35.6256 I'NDEXEDf~{ State of MORt., County of Sallatin. ss Filed Jar t'IOOrd DECEMBER 19 . 1 g---2,7 at 3:56 P M" and recorded tn Book 179 of MORTGAGES page 4308 ~t:,II.~ (fIn qta. Recorder. 8y ~ 1\1 ~ ~ f\l'\.no 1111 r _ Deputy FEE: $54.00 RT: SECURITY TITLE CO 9