HomeMy WebLinkAbout97- Bozeman Interfaith Housing Promissory Note
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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
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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
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Rev. Glover Wagner, Presidcnt
flOlClllan Inlcrlilith II Notc Page 2
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LOAN AG REEMENT
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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
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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
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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
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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
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CITY OF BOZEMAN
By:
Ron Brey, Acting . ger
ATTEST:
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Robin L. Sullivan, Clerk of Commission
ST A TE OF MONT ANA )
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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.
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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
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Bozeman.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal
the day and year fi rst above written. "
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otary Public for the Stale of-'
Montana, Residing at Bozeinan ' , ",
My Commission Expires If; '/v~-:>J f
Bozeman Intertaith Housing 11 Loan p. Ii
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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
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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
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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
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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
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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
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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
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ffl!l~ 179~Uf.O(J15
day and year first hereinabove written.
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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.
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i \ SE' A. '\f; : My Commission Expires
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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