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COMPARE ~~
CADAS '" AO '~
ADAMS COUNTY, NE
FILED
INST. N0. 2 Q n'~ ,, ~f 2
Date ~~ ~o~ Time1/~l~~rt
TER OF DEEDS
;'
DEED OF TRUST
TFIIS TRUST DEED made this 9th day of October , 2007, between RICKERSON
RESOURCES, LLC, A Limited Liability Company, as TRUSTOR, whose address is
P 0 Box 431 Chanute KS 66720 ;PATRICK A; BROOK, A Member of the Nebraska
State Bar Association, as TRUSTEE, whose address is 222 North Cedar Street, I'. O. Box 2280,
Grand Island, Nebraska, 68802; and COMMERICAL BANK, 1901 Main Street, Parsons, KS
67357, hereinafter collectively referred to as BENEFICIARY.
WI l NESSE"1'I-I:
That TRUSTOR hereby grant, bargain, sell, convey and wanant to TRUSTEE, IN TRUST,
its successors and assigns, with power of sale, the following-described real property:
Lot One (1) of South Burlington Subdivision to the City of Hastings, Adams
County, Nebraska.
together with all buildings, improvements and appurtenances thereon, and subject to any easements,
any rights of way, and restrictions and reservations of record which may affect title to the property.
The TRUSTOR hereby covenant and agree with the TRUSTEE, and BENEFICIARY that
TRUSTOR is lawfully seized and the owner of'the above-described property; that it has good right
and lawful authority to sell and convey said premises and that said premises are free and clear of all
liens and encumbrances, and further, that TRUSTOR will warrant and defend the title to said
premises forever against the claims of all persons whomsoever.
For the purpose of securing performance of each covenant of this agreement together with a
payment of Six Hundred Eighty-Five Thousand Dollars ($686;000.00), the TIZUSTOR has
executed a Promissory Note bearing the date of October 9, 2007 at the rate of interest and upon the
terms and conditions set forth in such Promissory Note rurtil paid. The principal sum and interest
shall be payable in accordance with and upon the terms and conditions of said Note of even date.
All installment payments hereunder shall be applied first to the payment of interest computed
annually on the ru~paid balance, pursuant to the Amortization Schedule, a copy of which has been
provided to each of the parties hereto, and remainder of each payment of installment to be applied
to principal. All payrilents due hereunder shall be paid at the office of the BENEFICIARY or the
holder of said security shall designate in writing.
It is agreed by and between the parties hereto that while title is vested in the TRUSTEE and
until filing of Notice of Default, the TRUSTOR shall:
A. Retain possession of the property at all times, except as may be otherwise agreed by the parties in
writing.
B. Maintain the building and its improvements and all personal property in good condition and repair.
C. Pay all general and special taxes and. all special assessments of every kind levied or assessed against
or due upon said property before delinduency, and to deliver to BENEFICIARY copies of receipts
showing payment of such taxes.
D. '['RUSTOIZ shall keep the improvements on said Property insured against loss by fire and hazards
included within the Cerro "extended coverage" for their insurable value, never to be less than the
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unpaid balance.af this debt in any circumstances. Any policy for the same shall include a "standard
mortgage clause" showing BENEFICIARY, herein, as the payee. hi event of loss, BENEFICIARY
may make proof of loss if not promptly made by TRUSTOR. Insurance proceeds shall be applied
to restoration or repair is not economically feasible or BENEFTCIARY's sectuity is not lessened,
otherwise said proceeds shall be paid on the debt herein, whether or not then due. Unless
BENEFICIARY and TRUSTOR otherwise agree in writing,. any proceeds from insurance shall not
extend or postpone the due date of the monthly payments provided in said Note, or change the
amount of the payments, but shall be added onto the principal to reduce the number of payments.
E. ll TRUSTOR fails to perform the covenants and agreements herein contained,%BENEFICIARY
may do and pay for whatever is necessary to protect the value of the real estate and
BENEFICIARY's rights in the property, inchiding: the paying of any sum secured by a lien which
has priority over this security instrument; appearing in Court; paying reasonable attorney fees; and,
entering the real estate to make repairs, Any TRUSTOR secured by this Deed of Trust, to bear
interest from the date of disbursement and said anlount, together with the then unpaid principal
amount, and shall bear interest at the highest lawful rate until refunded by TRUSTOR. The lawful
rate shall be whatever Nebraska law allows in such circumstances at the time of default in any
covenant or agreement.
F. Any extensions or modif cations of the debt herein granted by BENEFICIARY to any successor in
interest of TRUSTOR, shall not operate to release the liability of the original TRUSTOR or
TRUSTOR's successor in interest. Any' forbearance by BENEFICIARY in exercising any right or
remedy shall not be a waiver of or preclude the exercise of any right or remedy; because the
BENEFICIARY has the right to declare when a default occurs according to the terms of this Deed
of Trust.
G. TRUSTOR shall comply with. all federal, state and local envirorm~ental laws, ordinances, rules,
requirements, regulations, and publications as now existing or hereafter existing, amended,
supplemented or supplanted relating to the preservation _of the environment or the regulation or
control of toxic or hazardous substances or materials. TRUSTOR hereby warrants and represents
to BENEFICIARY that there are no toxic or hazardous substances or materials on or under the
Property. TRUSTOR does hereby indemnify and hold BENEFICIARY harmless, and any
successors to Beneificiary's interest, fiom and against any and all claims, damages, losses and
liabilities arising in cotmection with the presence, use, disposal or transport of any substance the
subject of any environmental law, regulation or control of toxic or hazardous substances or
materials on, under, from or about the property. "fhis indemnify shall survive Reconveyance of the
property secured by this Deed of Trust.
H. TRUSTOR shall use the Property for lawful purposes only; and shall not substantially change the
Property, allow the Property to deteriorate, or commit or permit waste. TRUSTOR shall comply
with all laws and regulations applicable to the use of the Property, and shall maintain the
improvements thereon iu good repair.
I. TRUSTEE'S Duties: .TRUSTOR acknowledges that:
L The duties and obligations of TRUSTEE shall be determined solely by the express
provisions of this Deed of Trust, and the TRUSTEE shall not be liable except for the
performatce of such duties and obligations as are specifically set forth herein, and uo
implied covenants or obligations shall be imposed upon~TRUSTEE;
2. No provision of this Deed of Trust shall require TRUSTEE to expend or risk
TRUSTEE'S own funds or othertivise incur any financial obligation in the performance
of any of "CRUSTEE's duties herein, or in tl~e exercise of any of TRUSTEE'S rights or
powers if TRUSTEE shall have grounds for believing that assurance of the repayment
of such funds is uncertain;
3. TRUSTEE may consult with counsel of TRUSTEE'S own choosing and the advice of
such cotmsel shall be full and complete authorization and protection in respect o any
action taken or suffered by TRUSTEE hereunder in good faith and in reliance on such
advice;
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4. TRUSTEE shall not be liable for any action taken by TRUSTEE in good faith and
reasonably believed by TRUSTEE to be authorized or within the discretion or rights or
powers conferred uponTRUSTEE by this Deed of Trust.
.T. Events of Defarilt: Any of the following events shall be deemed an event of default under this
Deed of Trust:
1. Any default or a term or condition within the Promissory Note which this Deed of
Trust secures;
2. TRUSTOR has, at any time within negotiations leadnig to the execution of this Deed
of Trust, ,given any materially false, misleading, or .inaccurate information or
statements, which induced the BENEFICIARY to loan money and enter into this
Security hlstrument;
3. TRUSTOR shall have failed to perform any covenant required by TRUSTOR to be
performed herein. BENEFICIARY may elect to give TRUSTOR written. notice of any
failure of TRUSTOR to perform covenants hereunder, after which TRUSTOR shall
have 30 days after such written notice from BENEFICIARY to TRUSTOR to perform.
I-Iowever, the BENEFICIARY is not obliged to give this notice as the TRUSTOR is
responsible to perform the covenants, herein, without notice;
4. TRUSTOR shall have failed to pay any money as required in the Promissory Note
which is secured by this Deed of Trust, on or before 15 days after such payment of
money is required; or
5. TRUSTOR shall have made any attempt at conveyance, assigmnent, pledge, transfer or
encumbrance of any of its interest in the premises during the terra of the loan secured
herein.
K. Acceleration Upon Default & Additional Remedies: Should an event of default occur,
BENEFICIARY may declare all indebtedness secured hereby to be due,and payable and the same
shall fllereupon become due and payable without any presentment, demand, protest, or notice of
any kind. Thereafter, BENEFICIARY may:
1. , Either in person or by agent, with or without bringing any action or proceeding or by
'a receiver appointed by a court and without regard to the adequacy of trust property,
enter upon and take possession of the Property, or any_ part thereof, in
BENEFICIARY'S own name or in the Warne of TRUSTEE, and do any acts which
BENEFICIARY deems necessary or desirable to preserve the value, marketability or
rentability of the Property, or any part thereof, or interest therein; increase the income
therefrom or protect the trust property hereof, and with or without taking possession
of Che Property, sue for or otherwise collect the rents, issues and profits thereof,
including those, past due and unpaid, and apply the same, less costs and expenses of
operation and collection, inchiding attorney's fees, if permitted, on any indebtedness
secured hereby, all in such order as BENEFICIARY may determine. The entering
upon and taking possession of the Property, the collection of such rents, issues and
profits and the application thereof shall not cure or waive any default or notice of
default hereunder, or invalidate any act done in response to such default or pursuant
to such notice of default and, notwithstanding the continuance in possession of the
Property or the collection, receipt and application of rents, issues or profits,
TRUSTEE or BENEFICIARY shall be entitled to exercise every right'provided for in
.the Deed of Trust or Note, or by law on occurrence of any event of default, including
the right to exercise the Power of Sale;
2. Commence an action to foreclose this Deed of Trust as a mortgage, to seek
def ciency or1 the indebtedness after foreclosure, to appoint a receiver, and to
otherwise spcyiflcaliy enforce any ol'the covenants or provisions hereof;
3. Deliver to TRUSTEE a written declaration of default and demand for sale, and a
written notice of default and election to cause TRUSTOR's interest hl the Property to
be sold lender the Power of Sale contained herein, which notice to TRUSTEE shall
cause to be duly filed for record in the appropriate official records of the county
where the trust property is located, all to the extent required by applicable law.
Neither the BENEFICIARY nor TRUSTEE is obliged to give the TRUSTOR any
written notice, upon the election of the Power of Sale, except the statutory "Notice of
Default' required by Neb.Rev.Stat.
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200'75272
76-1006; and, no language in this Deed of Trust shall be interpreted to the contrary.
4. Expend such sums as BENEFICIARY deems necessary to protect the Property and
cure any default of the TRUSTOR; ,
5. Exercise all rights and remedies available to BENEFICIARY under the Nebraska
Trust Deeds. Act.
L. Foreclosure Using Power of Sale: Should BENEFICIARY elect to foreclose by exercise of the
Power of Sale herein contained, BENEFICIARY shall notify~TRUSTEE and shall deposit with
'T'RUSTEE this Deed of Trust and the Note and such receipts and evidence of expenditures made
and secured hereby as TRUSTEE may require. ~'
1. On receipt of such notice from BENEFICIARY, TRUSTEE shall cause to be recorded,
published and delivered to TRUSTOR such notice of default as then required by law and
by this Deed of Trust. TRUSTEE shall, without demand on TRUSTOR, after such time
as may then be required by law and after recording of such notice of. default and
publishing notice of sale, all as required by law, sell the Property at the time and place of
sale fixed by TRUSTEE in such notice of sale, either as a whole or in separate lots,
parcels or items as TRUSTEE shall deem expedient, and in such order as TRUSTEE may
determine, at public auction to the highest bidder for cash or in lawful money of the
United States, or certified or cashier's check, payable at the time of sale; or as otherwise
may be provided in the published notice of sale. TRUSTEE shall deliver to such
purchaser, or purchasers thereof, TRUSTEE'S good and sufficient deed conveying the
Property so sold, but without any covenant or warranty, express or implied. The recitals
in such deed of any matters or facts shall be conclusive proof of the truthfulness thereat.
Any person including, without limitation, TRUSTOR, TRUSTEE or BENEFICIARY,
may purchase at such Sale and TRUSTOR hereby covenants to warrant and defend the
title of such purchaser or purchasers;
2. As may be permitted by law, after deducting all costs, fees and expenses of TRUSTEE
and of this Deed of Trust incurred in connection with any such default or sale or
foreclosure, or all of them, including costs of evidence of title in connection with a
default oi• sale, a TRUSTEE'S fee and an attorney's fee, as provided by law, or provided
by the terms of this Deed of Trust. Also, any attorney's fees incurred by the TRUSTEE
shall be paid, whether such fees were incurred addressing a default or using the Power of
Sale. TRUSTEE shall apply the proceeds of sale to payment of:
i. All sums expended under the terms hereof not then repaid with
accrued interest at the default rate provided in the Note,
ii. All other sums then secured hereby, and
iii. The remainder, if any, to the person or persons legally entitled thereto;
3. TRUSTEE may, in any manner provided by law, or as referenced iii the published notice
of sale, postpone sale of all or any portion of the Property. Notice of postponement shall
be given by public declaration thereof by such person at the time and place last appointed
for the. sale: provided if the sale is postponed for longer than one day beyond- the day
designated in the Notice of Sale, notice shall be given in the same manner as the original
Notice of Sale.
M. BENEFICIARY may from time to time substitute a successor or successors to any TRUSTEE
named herein or acting hereunder. Upon such appointment, and without conveyance to the
successor TRUSTEE, the latter shall be vested with all title, powers, and duties conferred upon any
TRUSTEE herein named or acting hereunder. Each such appointment and substitution shall be
made by written instrument and executed by BENEFICIARY, containing reference to this Deed of
Trust and its place of record, which, when recorded in the office of the Register of Deeds of the
county or counties in which said property is situated, shall be conclusive proof of proper
appointment of the successor TRUSTEE. The foregoing power.of substitution and the procedure
therefor shall not be exclusive of the power and procedure provided for by law for the substitution
of a TRUSTEE in the place of the TRUSTEE named herein.
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N. TRUSTOR covenants and agrees that upon airy attempted conveyance, assignment, pledge or
transfer of any of its interest in the premises during the term of the loan secm•ed hereby, the
BENEFICIARY shall have the option of declaring the unpaid balance immediately due and
payable, and if said sum remains unpaid for fifteen (15) days thereafter, BENEFICIARY can cause
Notice of Default to be given and the premises be sold as provided herein.
O. Assignment of Rents: As additional security, TRUSTOR hereby assigns to BENEFICIARY the
rents of the Property, provided that. TRUSTOR shall, prior to acceleration hereunder or
abandonment of the Property, have the right to collect and retain such rents as they become due
and payable. On acceleration as provided hereunder or TRUSTOR's abandonment of the
Property,. BENEFICIARY, in person or by agent or by a judicially appointed receiver, shall be
entitled to enter upon, take possession of and manage the Property and collect the rents and
products of the Property. All rents and products collected by BENEFICIARY or the receiver
shall be applied first to paymenC of costs of managing the Property and collection of rents and
products, including, but not limited to, receiver's fees, premiums on receiver's and applicant's
bonds, and, if allowed by law, reasonable attorney's fees, and then to sums secured by this Deed'
of Trust.
P. The waiver by TRUSTEE or BENEFICIARY of any default of TRUSTOR under this Deed of
Trust, on one occasion, shall not be or be deemed to be a waiver of any other or similar defaults
subsequently occurring.
Q. If title to any part of the property herein shall be taken in condemnation proceedings, by right of
eminent domain, or similar action, or shall. be sold under tlueat of condemnation, all awards,
damages and proceeds are hereby assigned and'-shall be paid to the BENEFICIARY, who shall
apply such payment, or any part thereof, in their sole discretion, to the sum due at that time on this
Deed of Trust and Trust Deed Note, with any balance above the amount due hereunder payable to
the TRUSTOR.
R. The BENEFICIARY, its agents or representatives, are hereby authorized to enter, at airy reasonable
time, Lipon any part of the trust property for the purposes of inspecting the same and for the purpose
of performing any of the acts they are authorized to perform under the terms of Ulis Deed of Trust
and other accompanying documents.
S: This Deed of Trust and all accompanying documents are subject to, constructed and governed by
the laws of the State of Nebraska for all purposes.
T. In the event any one or more of the provisions contained in this Deed of Trust, Trust Deed Notes or
any other instrcunent given in connection with this transaction, shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality, or tuienforceability shall,
at the option of the BENEFICIARY, not affect any other provisions of this Deed of Trust or Trust
Deed Note or Line of Credit, but this Deed of Trust, Trust Deed Note or Line of Credit shall be
construed as if such invalid, illegal or unenforceable provisions had never been contained therein, it
being the ~ intention of the parties that the provisions of this Deed of Trust are declared to be
severable.
U'. This Deed of Trust shall inure to and bind the heirs, devisees, personal representatives, successors
and assigns of the parties hereto.
V. TRUSTEE'S .1^ee & Attorney's Fee: In the event of any default, unless specifically waived in
writing by BENEFICIARY or TRUSTEE, TRUSTOR agrees to pay TRUSTEE a fee which is
reasonably related to the work actually done by the TRUSTEE. This reference is made so that
t9ie Iviguage~ of Neb.Rr.v;Stat. 76-1011 is incorporated, herein. Iu the event- there is a
reinstatement, the 1'RUS'TEE's fee may be limited as provided in Neb.Rev.Stat..76-1012.
further, TRUSTOR agrees to pay au attorney's fee incurred either by the BENEFICIARY of the
TRUSTEE for the enforcement of the rights of BENEFICIARY or TRUSTEE in the event of any
default. Such attorney's fee shall be reasonable under the circmnstances.
W. Right To Reinstate: If TRUSTOR meets certain conditions, Borrow shall have the right to have
enforcement of this Deed of Trust discontinued at any time and in the manner provided by
Neb.Rev.Stat. 76-1006 and 76-1012, as now or hereafter amended.
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X. Reconveyance: Upon payment of all swiss as herein provided, BENEFICIARY shall direct
TRUSTEE to reconvey the real estate and shall surrender this Deed of Trust and the Note it
secures. 1RUSTEE shall reconvey the Property,' without warranty of title and without charge to
the persons legally entitled to it.
Y. Time of Essence: Time is of the essence of this Deed of Trust, which means that any
performance required on a particular date must to be accomplished on that exact date because
such is the specific bargain of the parties, hereto. ~ .
The TRUSTOR requests that a copy of any Notice of Default and any Notice of Sale
hereunder be mailed to it at the address herein set forth, or such other address as they may provide
to the TRUS"TEE and BENEFICIARY. TRUSTOR further states that it has given the
BENEFICIARY a written Aclulowledgment which states that as TRUSTOR, they understand that
the document that they ate executing herein is a Deed of Trust and not a mortgage,'and that the
power of sale provided for in this Deed of Trust provides substantially different rights and
obligations than a mortgage and in au event of default or breach of the obligations set forth herein,
the~TRUSTEE and the BENEFICIARY may take such action as herein provided, including the
exercise of the power of sale, and the parties agree that said Acknowledgment above referred to has
been executed prior to the execution of this Deed of Trust and shall be recorded prior to the
recordation of this Deed of Trust.
EXECUTED the date first above written.
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,TRUSTOR
STATE OF ~~i, ~ clot ~ )
)ss.
COUNTY OF (~ c~4hn )
TRUSTOR
The foregoing instrument was aclaiowledge before me this l,! •e-~ day of
~~ fb ~~iL , 2007, by }')~T_ ~(, .(T t ~g~~~ ,member/manager of Rlekerson Resources,
LLCon behalf of the company.
NOTARY PUBLIC -State of Kansas j ,
KATHY L. ELROD Nota Publi G
My Appt. Expires (t' -,~ l ~ IG n'
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Clients/Real Bslate/Commercial [3ank - Rickerson/LLC D01'.pab
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