HomeMy WebLinkAbout95- Farmhouse Partners Water Main Extension Agreement, 1995
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WATER MAIN EXTENSION AGREEMENT
~ THIS AGREEMENT, made and entered into this 10 'f/; day of
~J/E/}J/JtR ,1995, by and between FARMHOUSE PARTNERS-BOZEMAN
LIMITED PARTNERSHIP, hereinafter referred to as "FARMHOUSE
PARTNERS-BOZEMAN" , and the CITY OF BOZEMAN, hereinafter referred to
as "CITY" ,
WITNESSETH:
WHEREAS, Farmhouse Partners-Bozeman submitted a Conditional
Use Permit application to the City for approval to construct a
twenty-four (24) unit apartment complex consisting of twenty-four
(24) two bedroom apartment units in two (2 ) three-story buildings
on Lot 1 of Minor Subdivision #162, situated in the Southeast
Quarter of Section 8, Township 2 South, Range 6 East, P.M,M, ,
Gallatin County, Montana, according to the official plat of record
with the County Clerk and Recorder. This project is commonly
referred to as Comstock Apartments;
WHEREAS, the Comstock Apartments are designed to be leased to
tenants earning sixty percent ( 60%) or less of Gallatin County's
median household income, pursuant to the Low Income Housing Tax
Credit Program;
WHEREAS, City water is necessary to insure that safe domestic
water and adequate fire protection is provided;
WHEREAS, the Bozeman City Commission on October 3, 1994
approved the Conditional Use Permit for the Comstock Apartments
with twenty-seven (27 ) conditions;
WHEREAS, Condition No. 2 requires Farmhouse Partners-Bozeman
to provide City water to the site prior to issuance of any building
permits;
WHEREAS, the City has authorized a dead-end extension of the
water main in order to serve this project;
WHEREAS, there is a shortage of affordable housing in Bozeman;
WHEREAS, this Agreement will assist Farmhouse Partners-Bozeman
in making some additional affordable housing available in Bozeman
by extending Farmhouse Partners-Bozeman's time for payment of the
construction costs for the water main extension;
WHEREAS, the extension of the water main directly benefits the
Comstock Apartments by making City services available to the
property,
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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
PROMISES BETWEEN THE PARTIES HERETO, IT IS MUTUALLY AGREED THAT:
1. Farmhouse Partners~Bozeman will extend, at its own cost
in accordance with paragraph 2 below, the City's water main to the
Comstock Apartment site from the Life of Montana property in
accordance with Condition No. 2 of its Conditional Use Permit and
in accordance with City standards and specifications, which
specifications will become Exhibit "A" and part of this Agreement
at the time said specifications are finalized. Said costs for
extending the water main are hereinafter referred to as
"development charges". Prior to extending this water main,
Farmhouse Partners-Bozeman will provide the City with a "not-to-
exceed" bid which itemizes all cost components of the water main
extension. The bid and the contractor shall be approved by the
City within seven (7) days of receipt of the bid and said approval
shall not be unreasonably withheld. However, failure of the City to
respond within seven (7) days shall not constitute a breach of this
Agreement.
2. Farmhouse Partners~Bozeman will pay, pursuant to the
terms of its contract with the contractor, all costs of extending
the water main with 8" pipe and the appropriate fittings for such
pipe, Per the plans, 10" pipe and the appropriate fittings will be
used for the water main extension, with the City paying the
incremental costs associated with installing the oversized pipe.
The contractor's bid will delineate clearly the incremental costs
of installing oversized pipe.
3. The City agrees under Paragraph NO.2 to make a loan in
the principal amount of $70,000 to be repaid as provided in
paragraph 4 of this agreement. This loan is evidenced by
promissory note executed by Farmhouse Partners-Bozeman. A copy of
the note is attached as Exhibit "B", and by this reference is made
a part hereof.
4. Farmhouse Partners-Bozeman agrees to make payments on
this loan as follows:
1996 - $0
1997 - $0
1998 - $2,500
1999 - $3,000
2000 - $4,000
2001 - $4,000
2002 - $4,500
2003 - $4,500
2004 ~ $5,500
2005 - $6,000
2006 - $7,000
2007 - $7,000
2008 - $7,000
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2009 - $7,000
2010 - $8,000
Commencing in calendar year 1998, Farmhouse Partners-Bozeman agrees
to make the reimbursement payments in equal, semi-annual, payments
with each payment being due on or before the sixth day of January
and the sixth day of July, respectively. Should any payment be
received after its due date, then the entire remaining balance
shall bear interest thereon from the due date of the payment at the
rate of ten percent (10%) per annum until the entire remaining
balance is paid in full. If all payments are made timely, there
will be no accrual of interest.
5 . Farmhouse Partners-Bozeman further agrees that the
amount of the loan shall constitute a lien against Comstock
Apartments and the real property. As security for the performance
of this Agreement, Farmhouse Partners will grant a security
interest to the City in the real property described above and in
the Third Priority Trust Indenture, attached hereto as Exhibit "C"
which by this reference is made a part hereof. The City agrees
that this security interest is subordinate to both a first mortgage
loan and a contract land seller's second position trust indenture.
Should Farmhouse Partners-Bozeman default in repayment of the loan,
the City may resort to this property and engage in any remedies
provided by the laws of the state of Montana, including
foreclosure.
6 . If any of the following events occur, the City may, 1n
its sole discretion, declare such event a default under this
Agreement:
a. Any representation or warranty made by Farmhouse
Partners-Bozeman in this Agreement or in any request for
certificate or other information furnished to the City hereunder
proves to have been incorrect in any material respect;
b. Farmhouse Partners-Bozeman fails in any material
respect to carry out its obligations to construct the water main
for which the loan is provided hereunder until the water main 1S
completed and accepted by the City;
c. Farmhouse Partners-Bozeman defaults in the payment
of any indebtedness for any money borrowed under this agreement;
d. Farmhouse Partners-Bozeman applies for or consents
to the appointment of a receiver, trustee or liquidator, admits in
writing to its inability to pay its debts as they become due, makes
a general assignment for the benefit of creditors, or invokes any
relief under the Chapter of the United States Bankruptcy Code;
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e. Farmhouse Partners-Bozeman fails to pay all local
real and personal property taxes specific to the property;
f. Farmhouse Partners-Bozeman violates any term,
assurances or conditions of this Agreement.
In the event that Farmhouse Partners-Bozeman fails to make timely
payments under this Agreement, or perform any of the covenants on
its part, or in the event a default occurs as stated above, the
City may declare Farmhouse Partners-Bozeman to be in default and
thereafter give Farmhouse Partners-Bozeman written notice setting
forth the action or inaction which constitutes the default and
giving Farmhouse Partners-Bozeman thirty (30) days in which to
correct the default. If Farmhouse Partners-Bozeman fails to
correct the default within thirty (30) days of this notice, the
City may notify Farmhouse Partners-Bozeman in writing that the full
balance due upon the note is then due and payable in full within
sixty (60) days. It is agreed by the parties hereto that the
provisions of this Agreement provide reasonable and sufficient
notice to be given to Farmhouse Partners-Bozeman in case of
Farmhouse Partners-Bozeman' failure to perform any of its covenants
and that this notice is sufficient for Farmhouse Partners-Bozeman
to rectify its actions or inactions of default. Any waiver by the
City of any default by Farmhouse Partners-Bozeman does not
constitute a waiver of a continuing breach or waiver of a
subsequent breach. Any agreement contrary to this Agreement is not
binding upon either party hereto unless it is in writing and signed
by both parties.
7. The water main extension shall become the property of the
City upon completion and acceptance by the City. Farmhouse
Partners-Bozeman-Bozeman shall obtain and execute all necessary
and pertinent easements, documents of ownership and transfers
requested by the City.
8. All documents and materials concerning the construction
of the water main prepared under this Agreement shall become the
property of the City upon acceptance of the water main extension.
Such documents and materials shall be promptly delivered to the
City upon demand and thereafter may be used by the City, in whole
or in part.
9. This Agreement is not assignable by Farmhouse Partners-
Bozeman without written consent of the City, said consent not to be
unreasonably withheld.
10. 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
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written notice by certified or registered mail to the other. The
initial address for receipt of notice is as follows:
Farmhouse Partners-Bozeman City of Bozeman
P.O. Box 1746 P.O. Box 640
Bozeman, MT 59771-1746 Bozeman, MT 59771-0640
11. This Agreement shall be binding upon the heirs, personal
representatives, successors and assigns of the parties.
12. 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 and costs on appeal.
13. A waiver of any breach or default by either party shall
not be a waiver of any other breach or default. Nothing contained
in this Agreement shall limit the remedies or rights of the parties
hereto under and pursuant to this Agreement.
14. The parties hereby agree that any amendments or
modifications to this Agreement, or any provisions herein, shall be
made in writing and executed in the same manner as the original
document and shall, after execution, become part of this Agreement.
15. This Agreement shall be construed under and governed by
the laws of the State of Montana. In event of litigation
concerning it, venue is in the Eighteenth Judicial District in and
for the County of Gallatin, State of Montana.
16. The partner of Farmhouse Partners-Bozeman executing this
agreement, promissory note and trust indenture certifies that the
partner has full authority to enter into this agreement and to
execute said documents on behalf of Farmhouse Partners-Bozeman.
17. The provisions of this agreement shall be deemed
independent and severable, and the invalidity, partial invalidity,
or unenforceability of anyone provision or portion thereof shall
not affect the validity or enforceability of any other provision
herein.
Water Main Extension Agreement Page 5
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FARMHOUSE PARTNERS-BOZEMAN LIMITED
PARTNERSHIP BY FAR USE PARTNERS LIMITED
PARTNERSHIP, ITS GEN PARTNER:
By:
THE AB Y 0 Y,
OF FARMHOUSE PARTNERS
PARTNERSHIP
WILLIAM C. DABNEY III, PRESIDENT
CITY OF BOZEMAN
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Jam s E. Wysocki ~
City Manager
ATTEST:
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Robin L. Sullivan
Clerk of Commission
STATE OF MONTANA )
) ss.
County of Gallatin )
On this 1/)111 day of A/tJ-I/EA1/1~/!! , 1995, before me,
the undersigned, a Notary Public for the State of Montana,
personally appeared William C. Dabney III, known to me to be the
President of The Dabney Company, General Partner of Farmhouse
Partners Limited Partnership and acknowledged to me that he
executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
Notarial Seal the day and year first above written.
(SEAL)
~~d,~
Nota l' for the State of /J'JT
Montana~ r,:,siding. at ~q";J; 1;9.
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STATE OF MONTANA )
) ss.
County of Gallatin )
On this /</'jI) day of )1/ J..tA.t:'J~x....ILl...'L.. , 1995, before
me, the undersigned, a Notary Public for the State of Montana,
personally appeared JAMES 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 acknowledged to me that they
executed the within instrument for and on behalf of the City of
Bozeman.
IN WITNESS WHEREOF, I have set my hand and affixed my
Notarial Seal the day and year ve written.
--( SEAL) L/
~/
, ,...~
dii,t C~--tCt/G "X '~C--i,---,
otary Public for the State of
c...-- Montana, residing at Bozeman
My Commission Expires tb -/f 99
Water Main Extension Agreement Page 7
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PROMISSORY NOTE
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$70,000.00 BOZEMAN, MONTANA Oetober ~, 1995
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 SEVENTY THOUSAND AND NO/100 DOLLARS
($70,000.00) . Equal semi-annual payments of principal shall be
made on or before the sixth day of January and the sixth day of
July, respectively, according to the following schedule:
1996 - $0
1997 - $0
1998 - $2,500
1999 - $3,000
2000 - $4,000
2001 ~ $4,000
2002 - $4,500
2003 - $4,500
2004 - $5,500
2005 - $6,000
2006 - $7,000
2007 - $7,000
2008 - $7,000
2009 - $7,000
2010 - $8,000
should any payment be received after its due date, then the entire
remaining balance shall bear interest thereon from the due date of
the late payment, at the rate of ten percent (10%) per annum until
the remaining balance is paid in full and all subsequent semi-
annual payments shall include this interest. The Borrower shall
have the right to pay, in addition to any semi-annual installment,
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. Payments made shall be credited
first to the discharge of interest accrued and the balance to the
payment of principal.
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 second written notice thereof to Borrower, then
upon nonpayment thereof after notice in writing to Borrower, the
entire principal sum and accrued interest shall at once become due
and payable in full within sixty (60) 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,
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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 third 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:
Lot 1 of Minor Subdivision #162, situated ln the
Southeast Quarter of Section 8, Township 2 South, Range
6 East, P.M.M, , Gallatin County, Montana, according to
the official plat of record with the County Clerk and
Recorder.
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 serVlce 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:
Farmhouse Partners- City of Bozeman
Bozeman P.O. Box 640
P.O. Box 1746 Bozeman, MT 59771-0640
Bozeman, MT 59771-1746
FARMHOUSE PARTNERS -
BOZEMAN LIMITED PARTNERSHIP
BY FARMHOUSE PARTNERS LIMITED
PARTNERS~ENERAL
PARTNER .
By:
THE D 0 AN ,
PARTNER OF FARMHOUSE PARTNERS
LIMITED PARTNERSHIP
WILLIAM C. DABNEY, III
PRESIDENT
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FORM 25-STOCK FORM STATI rUILisM'''_ co.. MlLi"A. ...It.
MONTANA TRUST INDENTURE
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THIS TRUST INDENTURE, Made thlS.../..........day oL.... . .. g .t.. .............................___., 19n ..~,
bet weelL-_....f.g,x:mh..Q.l,HHL.P'g.X.tner.S.':":'.B..Q.~.eman.Limi:ted...Pal::tner.~d$ mailing address is
p....C... ---B.ox...~.7.4. 6. Tm.BO.z emanT-..Mon tana... 59.'t.7.~:-:-.1.:r4.Gun" ...." "m.mm.... on..m u................................
.. m..................................................... ......, as G RANTa R, ..nn .....J?g..1J.l...M.L..Muw.e -1... J~Q~.em.9J}...~. ;t.t-y.. ........
At:t orne.f................ . ........................................................ ,........ ...........................................................................,........ 0..
.......m.................... ....................... .....m...' wi th principal offi ce a LA.ll. ..Ea.~.t. ..MaJ.n...S.t;r;::e. ~.t. ,J?.Q .?~mp. n
.
M on tana, as TR US TEE, and........ci:tY...Qi. ..BOz.emanm___................ .....___ ............ ....m............................. ........,
_. __. r _ _ _ _.~ ~ _ _r_"~ _~.. __ _. _~~... ~.o. __ ~ _ &&.. ___~ & ~ &._ r" _ _ _&_ _ ~ _ _ _ ~ & ~& .....& ~ &... & &&~ ~ ~ _.. ~ ~ ~..._ _... _... ~ _.._ _ _ ~._. __...... __. __.... __ ___ _. __...................._....... __.._.. ..._. _ _ _ _ _ ~__ __ _. _ __ _ _ r__ _. _ _ _.. _ _.... __. _........ ..
with principal offi ce a LA.ll....E.c';V;!t ...,Mg.JU...Qt;.t;. eg.t.l....P.9?: .em.9Jl.l..J.19n.t 9.DJL..S..~.7.1S. ..m...... ... ___,
as BENE:B~ICIARY,
WITNESSETH: That Grantor hereby irrevocably GRANTS, BARGAINS, SELLS, CONVEYS AND
W ARRANTS 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"", """..0.. ,
, , " ... ......................"",.. ""."""""''''''''',.",,.,,'''''''''''''''''''''''', State of Montana, particularly described as follows, to-wit:
Lot 1 of Minor Subdivision #162, situated in the
Southeast Quarter of Section 8 , Township 2 South,
Range 6 East, P.M.M., Gallatin County, .Mon tana
according to the official plat of record with the
County Clerk and Recorder.
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 re-
leasing, relinquishihg and waiving all exemptions, rights of dower and homestead, in or to said prem-
ises, 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 con-
stitute 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 con-
ferred upon Beneficiary to collect and apply such rents, issues and profits;
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POR THE PURPOSE 01<' SECURING: (1) Payment of the prineipal sum .()L.Se.yent-Y-.__..__........
- __'J;.~g~.f?9:!:l:~..,.~.0.-~...~~/~.~.~.......mmDollars ($...?9.L9.9.g__.__g.9..__....) with intprest thereon according to
the terms of a promissory hote, datP<L..,__.JJ!~f<i/Jldt:6!,.m..__jt!/m........__., J9.95.. (and any extensions
and/or renewals or modifieations thereof), made by GI'antor payable to the order of Beneficiary in ill~
stalllllrnts, the last of which, unless sooner paid, will be due and payable on....JgJY..__9..c..?.QJ.9............
19_______. j (2) Pa.yment of all sums expendrd 01' allvanced by Beneficiary under or pursuant to the
t<'rrns hereof, togd,hel' with interpst thercon as h,~rein provided; (:l) Performancc of each agreement
of Grantor hpJ'l'in a nd ill saill note eOlltained j a1Hl (4) Payment of any futurc advances, in no cvent
<'xceeding......__..__.__.___..__________...._____________._______.__,J)ollars, now in eontl'mplation of the partirs, if the Benefieiary
at its sole option elret.s to make any advances whatsoever.
'1'0 PIW'!'EC'\' TIm SECURI'l'Y OP THIS TImS']' 1NnB~1'URE, ANn FOIt OTHER PURPOSES,
GRAN'rOR AG1U<lBS:
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,
damafced 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 propert!; not to commit or permit
waste thereof; not commit, suffer or permit any act upon said property in violation 0 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, ugon presentation to it of an affidavit signed by Beneficiary, setting forth facts showing a default
by Grantor un er this numbered paraKraph, is authorized to accept as true and conclusive all facts and statements
therein, and to act thereon as provide 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 Benefi-
ciary may require, on the improvements now existing or hereafter erected or placed on said property. Such insur-
ance shall be carried in companies approved by the Beneficiary with loss payable clause in favor of and in fonn
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 insurance proceeds, or
any part thereof, may be applied by Beneficiary, at its option, to the reduction of the indebtness hereby secured
or to the restoration or repair of the property damaged.
3. To delivcr to, pay for and maintain with Beneficiary until the indebtness secured hereby is paid in full,
such evidence of title as Beneficiary may require, including abstracts of title or polices of title insurance and any
extensions or renewals thereof or supplements thereto.
4. To pay before delinquent aU taxes and assessments, including interest and penalities, affecting said prem-
ises 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 tenns 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
(1j12th) 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 Benefi-
ciary of any such items when due. The failure of Grantor to make any of 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, includ-
ing cost of search and evidence of title, advertising and recording expense, documentary taxes and Trustee's and at-
torney'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 llame in such manner and to such extent as either may deem necessary to
protect the sccurity 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 in-
terest from date of expenditure at the rate of eight per cent (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, includin~ Grantor, for the payment of any indebtedness
secured hereby, or the lien of this Trust Indenture on the remamder of the Eroperty for the full amount of any in-
debtedness unpaid, Beneficiary and Trustee are respectively empowered as ollows; Beneficiary may from time to
time and without notice:
(a) Release any preson 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 Beneficiary:
(a) Consent to the making of any map or plat of the property,
(b) Join in granting any easement or creating any restriction thereon,
(c) Join in any subordination or other agreement affecting this Trust Indenture or lien or charge thereof,
(d) Reconvey, without warranty, all or any part of the property.
9a. Both parties agree that Beneficiary may. if Beneficiary so eleds, procure and thereafter continue during
the term of this Indenture, for as long as Beneficiary desires, a form of insurance'acceptable to Beneficiary insur-
ing Beneficiary against any loss sustained by Beneficiary by reason of any default in payment by Grantor of the se-
cured indebtedness. If Beneficiary 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 wit.h Beneficiary 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 promis-
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. sory note. Beneficiary may thereafter pay all annual renewal premiums from guch escrow. Should the amount de-
posited in escrow be insufficient to pay any renewal premium in full as the same become due, Grantor shall immedi-
ately upon demand deposit with or pay to Beneficiary guch additional amount as may be sufficient to pay the re-
o newal premium in full. Failure of Grantor to payor deposit any of the amounts referred to herein ghall eonstitute
a default of the terms of thig Indenture. Mortgag'or further agreeg to deposit in escrow with Beneficiary 1/12 of the
annual premium for hazard insurance coverage and annual taxeg and assessments each month. Failure of the Grantor
to depogit any of the above amounts in the escrow account shall constitute a default of the terms of this indenture.
9b. Upon written requegt of Beneficiary stating that all sums secured hereby hnve been paid, and uJlon surrender
of this Trust Indenture and said note to Trustee for cancellation and retention and upon payment by Beneficiary of
its feeg, 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 l:ersonal property
located thereon. Until Gl,.ntor shall default in the payment of any indebtedness secured here y or in the per-
fonnance of any agreemen. 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 ri~ht
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 subse.
quent enforcement by Beneficiary of the right, power, and authority to collect the same. Nothinlf 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 Jefault by Grantor hereunder, Beneficiary may at any time without notice, either in person, by
al!:ent, 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 anl security for the indebtedness hereby secured, enter upon
and take possession of said pro~erty or any part thereo , in its own name sue for 01' otherwise collect said rents,
issues, and profits, including t ose past due and unpaid, and apply the same, less cost and expenses of operation
and collection, includinl!: reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Bene~
ficiary may detennine.
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 de-
fault 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 here-
by or in the perfonnance of any afireement hereunder, all sums secured herebr shall immediately become due and
payable at the option of the Bene iciary. In the event of such default, Beneflciary may execute or cause Trustee
to execute a written notice of default and of election to cause such property to be sold to satisfy the obligations
hereof and Trustee or Beneficiary shall file such notice for record, in each county wherein said property or some
part thereof is situated. Beneficiary shall also deposit with Trustee, the note and all documents evidencing expendi-
tures secured hereby.
14. After the lapse of such time as may then be required by law following the recordation of said notice of de-
fault and of election to cause said property to be sold, and notice of default and notice of sale having- been given as
then required by law, 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 by
public proclamation by such person at the time and place fixed in the notice of sale, and no other notice of the post-
boned sale need be given. Trustee shall execute and deliver to the purchaser its deed conveying said property so sold,
ut with out anl covenant of warranty, express or implied. The recitals in the deed of any matters or facts shall be
conclusive 1100 of the truthfulness thereof. Any person including Beneficiary (but excluding Trustee) may bid at
the sale. tel' 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 ~ayment 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 per cent (80/0) per annum from the date of expenditure thereof, and the surplus, if any, to the person or per-
sons legally entitled thereto; provided that the Trustee, in its discretion, may deposit such surplus WIth the County
Cleric ami Reeorder 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
aforsaid sale on the tenth (lOth) day following said sale, in the event such possession has not previously been de-
livered 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 titie to the trust property and
u~on foreclosure by exercise of power of sale, or otherwise, shall pass to the purchaser and the same are hereby
p edged 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 se-
cured hereby immediately due and rayable and foreclose this Trust Indenture in the manner provided by law for
the foreclosure of mortgages on rea 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, includin~ 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 perfonn-
ance hereunder by a party hereto or the breach of any lrovision hereof by a party hereto, including but not limited
to an action to obtain possession of the above describe property after exercise of the power of sale granted here-
under.
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 Grantor hereunder are joint and sev-
eral. The tenn "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 neu-
ter, and the singular numher 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 ta!ten in substitution for any mortgage 1lI 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.
~ OF, the (has) (have) hereunto set (his) (her) (its) (their) hands
:emm.. nn .~. nt. ere; 'ff" ...Partnerslilp.....nm.n.........oo-h.....n.m..........oo...m...".m.....m.......".n
Farmh reo
B~.:mF.armho-USI:.. .ra.J:t..xu~x.'l..lt;f.P.1J,tg. moo. .~!'.t!!-~.E~hip mn .mmoooooo"nn mm n mnmoo oo.m.oo .."_, .._"- _m... moo oo. ,"-n' _mn_.
By: The Dabney Company, its General Partner
By: William c. Dabney III, its President
.,. " ; '" . 1-1 ...
.. i, J If \- . . ,
,.
:
.
. STATE OF MONTANA 1
jss.
County oLuGR.llat.in..-.u.... un...u......-........ ....,...
On thism...mm.m.....mday oL....uum__..........m__.....m........m..--.....m...-., 19...~.5, before me, a Notary Public
for the State of Montana, personally appearedmn_............mm.........mn.......m..........mm........m.n......muum....u...'
known to me to be the person(s) whose name(s) is (are) subscribed to the within instrument, and
acknowledged to me that (he) (she) (they) executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day
and year first above written.
- -- ~ - ~.. - -. --... -- - -- - - -~ --.............. -- --... --... -. -. -- - ~ .....-- -- -- -- -. --..... --..... -.... -. - - - -~ ~&_.....
Notary Public for the State of Montana.
(Notarial Seal) Residing at.... ........ n._........ m... un'" ... um... m.......... ....00.__....
My Commission expiresmn._.......mm.._...............n___.........
,-
STATE OF MONTANA, }
ss.
Coun ty of........Gal1.atin.......mn...mn.n............-.-.
On thisn..Jt2.t!J....mday Of.m....mJ.llj/~lffACJ!!..n.n.......m....mm..' 19.9.:',~f., before me, a Notary Public
for the State of Montana, personally appearedn....W.i~J..iamn.C......Dahney...I.I.Immnn..................mm00"
andn......um.....m.......m........mmnnn..-.......nmm.--...........m..m......_......m...m.......m...mn........mknown to me to be the
l?.r.esidentn.o.f...:thenDabne~n-Co....,....Gener ~ln]~I~R2};l_7_~.ee!igra.~nE!!Eihe~mgf~.tneI 5hir
Oteman ~i trffia part~e:lishiR.' .
oLuF.armhousenJ?.ar.tner.s:::.., t e mll'JIJ 00 a execu e t e WI III lDstrument and acknowl.
edged to me that suchXlKl~ executed the same.
limited partnership
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day
and year first above written. ---...Qi~h~..St~i~~f.M~~t~~~:........
, . ....- .i_~
(Notarial Seal) R"iding at."~/"_'mZ::,."..'/..",."...",...
:My Commission expires......mm.m....J/l'i. ...'ifmnmm
- -- ' --
REQUEST FOR FULL RECONVEYANCE
TO: TRUSTEE n', .mHU..........n nnn._u...... mn n mm_ _. "__.. .....n' 19 mnm
The undersigned is the legal owner and holder of the note and all other indebtedness secured by
the within 1'rust Indenture. Said note, together with all other indebtedness secured by said Trust In-
denture, 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 men-
tioned 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 desig-
nated by the terms of said Trust Indenture, all the estate now held by you thereunder.
.. _~ _ ~.~ _.... _ _. _* _ ~ _ _ _ ~~ ~.& _ _.. r _ __ _ _ ~.. _. _ ~.. _ _. +_... _.. _.. .. _. _._...... _... __.." _ - - - - _ - ~ _ ___
. _.- .----.... -.-.- ._~- .~-_..... ... .------....-.- ........ -.- -.-..... -.-.... ..-.- ..... -- -- --.. ---~....
Mail reconveyance tOnmm nn..n mm_ n....mn....... ..._ n" ..n... ...___ n__....nnnn mm____..........oo........ m.. m...... n .m. nn --- - n.... ..-. .oo.
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