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Trust Indenture/H&H Enterprises Lot 23MONTANA TRUST INDENTURE THIS TRUST INDENTURE, Made this 8th da,, .i Au ust ,1997, between H&H Enterprises whose a(.-. ss is 432 East Idaho, Kalispell, MT 59901, as GRANTOR, and C. Mark Hash, an attorney licensed to practice law in the State of Montana, 136 1st Avenue West, P.O. Box 1178, Kalispell, MT 59903, as TRUSTEE, and the City of Kalispell, Office of Finance Department, whose address is P.O. Box 1997, Kalispell, MT 59903-1997, 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 Flathead, State of Montana, particularly described as follows, Lot 23 of TETON TERRACE, according to the map or plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana. THE REAL PROPERTY or its address is commonly known as 11 Iris Court, Kalispell, Montana 59901. TOGETHER WITH: (1) All buildings, fixtures and improvements thereon and all water rights, rights -of -way, tenements, hereditaments, privileges and appurtenances there unto 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 elective share and homestead, in or to said premises, vested or inchoate; (3) All heating, air conditioning, plumbing and fighting facilities, equipment and fixtures now or hereafter installed upon or within said premises, used or proper or necessary to constitute, the said premises as a habitable, usable or operating unit -all of said property being designated and deemed for the purposes of this instrument as n part of the realty; and (4) All of the rents, Issues and profits of said premises, SUBJECT, HOWEVER, to the right, power and authority herehnfter conferred upon Beneficiary to collect and apply such rents, issues and profits; FOR THE PURPOSE OF SECURING: (1) Payment of the principal sums of Twelve thousand and no/100 Dollars ($12,000.00) with interest thereon according to the terms of a promissory note, dated August 8, 1997 , and any extensions and/or renewals or modifications thereof, made by Grantor payable to the order of Beneficiary; (2) Payment of all sums expended or advanced by Beneficiary under or pursuant to the terms hereof, together with interest as herein provided; and (3) performance of each agreement of Grantor here In and in said note contained. Grantor hereby acknowledges that the real property in which a lien is being granted to lender is not exempt from execution as a homestead, because under Montana statutes, Section 70-32-202, it is subject to execution or forced sale to satisfy a judgement obtained on indebtedness secured by a trust inElenture or other encumbrance on the premises. H&H RESTRICTIONS 0"..`ALE: Beneficiary may, at its option, declare immediately due and payable all sums secured by this Deed of Trust upon the sale or transfer, without the Beneficiary's prior written consent, of all or any part of the Real Property or interest in the Real Property. To protect the security of tills Trust Indenture and for other purposes, Grantor agrees: By the execution of this Trust Indenture and the Note hereby secured that provisions I through 22 of the Trust Indenture recorded October 2, 1996 under Reception 99627616550 records of Flathead County, Montana, shall be and they are hereby incorporated and made an integral part hereof for all purposes as though set forth herein at length. IN WITNESS WHEREOF, the Grantor (has) (have) hereunto set (his) (her) (its) (their) hands the day and year first herefnabove written. H & H Enterprises By Randy C. Beavers, Trustee STATE OF MONTANA) ss. County of Flathead ) On this _�? . day of 19�', before me, the undersigned, a Notary Public for the State aforesaid, personally appeared G���� L" / q�ft?it p : /dGGQ �f >F ` �l"/CP.a known to me to be the person(s) whose names subscribed to the within instrument, and acknowledge to me that Ae- executed the �0 same.!? We, A r IN • WI'_ _ W �REO ',dhavAereunto set my hand and affixed my Notarial Scal the day and year first above written. • ♦ • • • s ®�pT AR Y v • Signatureof Notaiy i ®°� • * Notary Public for . t c pf Mont a * ® p UytG S : Residing at °®®N % B ®•• '�®w® MyConmdssio expires ae � •• ®• .�Q' ®® ''•. OF 0.,116, •••• STATE OF MONTANA ) ss. County of Flathead ) Recorded at the request of 19 FEES $ Pd. this day of at o'clock M and recorded in the records of Flathead County, State of Montana. RECEPTION NO. County Clerk and Recorder RETURN TO: TAXES Deputy ZC44za,� wxk) 49^ 141C-79 DO NOT RECORD The followingds a copy of Provisions 1 through 22 which are lncorP h _.,d by reference In the Trust Indenture appearing on the reverse side hereon. TO PROTECT THE SECURITY OF THIS TRUST INDENTURE, AND FOR OTHER PURPOSES, GRANTOR AGREES: 1. To keep said property I 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 wbkh oney be constructed, damaged or destroyed thereon, and to pay when due all claims for labor performed and materials furnished therefore; to comply with aft brows, covenants and restrictions affeMMg said property-, not to can nit or permit waste thereof, not to commit, suffer or permit any act upon said property In violation of the law; to do all other acts which train tiro 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 iluaming construction of Improvements on said property, Grantor further agrees: (a) To consm ute construction promptly and to pursue the same with reasonable diligence to completion In accordance with plans and spedfleatlons satisfadory 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 Crantor under this numbered paragraph, Is authorized to accept as true and conclusive an facts and xtistements 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 ereded 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, Crantor 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 direly to Beneficiary Instead off* Grantor and Bendkiary Jointly, and the 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 Beneficary 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 (lens on said property which at any time are, or appear to be, prior or superior hereto. In additions to the payments due In accordance with the terms of the rye hereby secured, Grantor shall, at the option and on demand of the Beneficiary, pay to the Beneficary monthly and concurrently with payment of principal and Interest, a sum equal to one -twelfth (1/12th) of the annual taxes, assessments, Insurance premiums, maintenance and other charges upon the property, as estimated by the Benendary, In trust neverthelexs for Crantor's use and benefit and for payment by Beneficiary of any such items when due. The fallnre of Grantor to make any of such payments shall constitute a default under this trust. S. 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. C Should Grantor fail to make any payment or to do any ad 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 some in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Truxtt" 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 highest rate permissible under Montana hew until paid, and the payment thereof shall be secured hereby. IT IS MUTUALLY AGREED 711AT: 8. Without affecting the liability of any person, including Grantor, for the payment of any Indebtedness secured hereby, or the lien of this Trust Indenture on the remainder of the property for the full amount of any Indebtedness unpaid, Beneficiary and Trustee are respectively empowered as follows: Beneficiary may from time to time and without notice: (a) Release any person liable for the 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 front time to time, upon the written request of Beneficiary: (a) Consent to the making orally map or plat of the property, (b) Join in granting any easenent or creating any restriction thereon, (c) Join in any subordination or other agreement affecting this Trust Indenture or the 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 elects, procure and thereafter continue during the term of this Indenture, for as tong as Beneficiary desires, a form of Insurance acceptable to Beneficiary Insuring Beneficiary against any Toss sustained by Beneficiary by reason of any default in payment by Grantor of the secured indebtedness. If Benetldary elects to procure such Insurance, Granter shall promptly reimburse Beneficiary the full amount of the Initial premium for such Insurance. During the term of this Indenture, Grantor shall each month deposit in escrow with 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 promissory note. Beneficiary may thereafter pay all annual renewal premiums from such escrow. Should the amount deposited in escrow be insufficient to pay any renewal premium In full as the same become due, Grantor shall fmmedlately upon demand deposit with or pay to Beneficiary such additional amount as may be sufficient to pay the renewal premium In full. Failure of Grantor to pay or deposit any of the amounts referred to herein shall constitute a default of the terms of this Indenture. Grantor further agrees to deposit In escrow with Beneficiary 1/12th of the annual premium for hazard Insurance coverage and annual taxes and assessments each match. Failure of the Grantor to deposit any of the above amounts in the escrow account shall constitute a default of the terms of this Indenture. 96. 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 can-liation and Mention 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, isses, royalties, andprofits earned prior to default as they become due and payable, if the Crantor shall default as aforesaid Grantor's right to collect any of xuch mantes shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rent, royatiex, Issues, and profits. Failure or discontinuance of Beneficary at any time or from tine 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 a subordination of the lien or charge of this Trust indenture to any such tenancy, lease or option. it. Upon any default by Craftier 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, either 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 shall immediately became due and payable at the option of the Beneficiary. In the event of such default, Beneficiary 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 the 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 said notice of default 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 Cnntor, 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 or Grantor to direct the order in which such property, If consisting of several know 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 flfimn (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 postponed sak need be given. Trustee shall execute and deliver to the purchaser Its deed conveying said property to sold, but without any covenant of warranty, express or implied. The recitals In the deed of any matters or fads 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 expose, documentary taxes and Trustees' and attorneys' fees. Trustee shall apply the proceeds of sale to payment of all amounts secured hereby and due hereunder, including all suns expended by the Trustee and Beneficiary, or either of fhem, with accrued Interest thereon at tire highest rate permissible under Montana law 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 (1 Oth) day following said sale, In the event such possession has not previously been delivered by Grantor. 16. Each abstract of title, title Insurance policy and all other evidences of title, and all hazard Insurance policies placed or deposited with the Beneficiary shall be deemed an Incident to the title to the trust property and upon foreclosure by exercise of power of sale, or otherwise, shall pass to the purchaser and the same are hereby pledged as additional security for payment of the Indebtedness secured hereby. 17. Upon the occurrence of any default hereunder, Beneficiary shall have the option to declare all sums secured hereby 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. is. 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 lit which Grantor does not prevail, If xuch action Involves ibe 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 acilon to obtain possession of the above describer[ property after exercise of the power of sale granted hereunder. 19. This Trust Indenture shall apply to, Inure to the benent of, and shall bind all parties hereto, their heirs, devisees, administrators, personal representatives, successors and assigns. All obligations of Crantor hereunder are Joint and several. The term "Beneficiary" shall mean tine 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 public record as provided by law. Trustee Is not obligated to notify any parry 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 Ad of Montana and Is not made or taken In substitution for any mortgage lit existence on the effective date of said Ad. _ 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. REQUEST FOR FULL RECONVEYANCE TO: TRUSTEE ,19 The undersigned is the legal owner and holder of the note and all other indebtedness secured by the within Trust Indenture. Said note, together with 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 sunts owing to you under the ternis of said trust Indenture, to cancel said note above mentioned and all other evidences of indebtedness secured by said Trust Indenture delivered to you herewith, together with said Trust Indenture, and to reconvey, without warranty, to the parties designated by the terms of said Trust Indenture, all the estate now held by you thereunder. Mail reconveyance to