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HomeMy WebLinkAbout20075381Nll lYq~A' ~,;'; TAX ~_ CK# :FcS3D.SQPD 3D..~i0 CK#4.91 d- CHG ACCT# t<M~>tr7f 411) Re7 FE[S: _ CASH _ R.O.D. CK#_ RfC'D Me~o~~nr~, _ hurler Y-i-~tG RETURN F rin .SPr p (~h rJ Fj~,l/'T f I l Tld~3 L'fa~y C2~+e~ NE ~d43a iNI~IW~'ti~V~AIN NUM ~y-~ ~~ RD. COMP k'~1 ~~,f0 COMPARE ~ ~/ CADAS -" AO '~ FSA 1927-1 NE Position 5 {01-28-OS) UNITED STATES DEPARTMENT OF AGRICULTURE, Farm Service Agency PREFACE TO TRUST DEED ~A. DISCLAIMER OF RIGHT TO DESIGNATE HOMESTEAD: Trustor acknowledges that Trustor is about to execute the following Trust Deed upon the real estate. Trustor and each of them if more than one, hereby disclaims Trustor's right to designate a homestead on said real estate. No part of the Trustor's homestead is presently situated upon said real estate. Trustor understands that if Trustor establishes a homestead on any part of said real estate during the time the Trust Deed remains unsatisfied and a lien upon said real estate, there shall be no right to make a designation of homestead in the event of a foreclosure or trustee's sale with respect to said Trust Deed. B. WAIVER OF RIGHT TO DESIGNATE HOMESTEAD: Trustor acknowledges that Trustor is about to execute the following Trust Deed upon the real estate. Trustor and each of them if more than one, hereby waives Trustor's right to designate a homestead on said real estate. Trustor understands that Trustor has the right to make a designation of homestead and that by executing this waiver, Trustor is waiving rights otherwise available for the purpose of affording them the opportunity to retain Trustor's homestead in the event of a default upon the Trust Deed. Trustor Trustor Trustor Trustor REAL ESTATE TRUST DEED FOR NEBRASKA Trustor Trustor THIS TRUST DEED ("instrument") is made on ~G: 20 (~- The trustor is Mason Anthon Hoffman ("Borrower") whose mailing address is 0 S. Juniata Avenue, Juniata, NE 5 The trustee is the United States of America, acting through the Farm Service Agency, United States Department of Agriculture ("Trustee"). The beneficiary is the United States of America, acting through the Farm Service Agency, United States Department of Agriculture ("Government") located at 7131 A Street, Lincoln, NE 68510-4202. This instrument secures the following promissory notes, assumption agreements, and/or shared appreciation agreements (collectively called "note") which have been executed or assumed by Borrower unless otherwise noted, are payable to the Government, and authorize acceleration of the entire debt upon any default: Date of ]nstrument Principal Amount $160,000.00 Annual Rate Due Date of Final of Interest Installment 5.375% (The interest rate for any limited resource farm ownership or limited resource operating loans secured by this instrument may be increas~edj as provided in Gov-,e/rnment regulations and the note.) , Initial +'~~~ datc ~~' ~ '"r ~ U 1 )px ~ FSA 1922-1 NE (01-28-OS) Page 1 of 7 i,fr. { ADAMS COUNTY, NE INST. NO. FI~ 5 3 81 Date l~ - t___ o~E,,2 Time / :,-1~`~ ~ER OFF DEE~ 200'75381 .. ; By executio,n,o~tl~4s ~nstt'ument, Borrower acknowledges receipt of all of the proceeds of the loan or loans evtdenced by the above dote. _, _. Thi"s iristrumerttsecureS`Cd'the'Government (1) payment of the note and all extensions, renewals, apd,madifications thereof, (2) recapture of 4~. mount due undeS any Shared Appreciation Agreement entered into pursuant to 7 U:$;C..§ 2001; (3) payment of all a~ra+tees-an~~z~etltiltui'i;"s; with interest, made by the Government; and (4) the obligations and-covenants of Borrower set forth in this i`p~s,t,~r,u,~ment ghe,,ppot~ sand arty other loan agreements. .., In considerayt~~yp.~~,~ an mad~c~sy the Government under the Consolidated Farm and-Rural Development'Act, 7..U.S.C....§.'T921 et sec . as ~n`t d -e note, Borrower irrevocably grants andTconveys~to Trustee, m trust, with power of sale, the following .,... _ , described property situated in the State of Nebraska, Cou,Oty, o,~,C4untes,o,~ _,,, Adams The North Half of the Northwest Quarter-•(Nl%2NW1/4)°~of'Section Twenty-four (24), Township Six (6) North, Range Eleven (11), West of the 6th P. M., Adams County, Nebraska. __. together with all rights (including the rights to mining products, gravel, oil, gas, coal or other minerals), interests, easements, fixtures, hereditaments, appurtenances, and improvements now or later attached thereto, the rents, issues and profits thereof, revenues and income therefrom, all water, water rights, and water stock pertaining thereto, and all payments at any time owing to Borrower by virtue of any sale, lease, transfer, or condemnation of any part thereof or interest therein (collectively called "the property"). This instrument constitutes a security agreement and financing statement under the Uniform Commercial Code and creates a security interest in all items which may be deemed to be personal property, including but not limited to proceeds and accessions, that are now orhereafter included in, affixed, or attached to "the property." Borrower COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the property and that the property is unencumbered, except for encumbrances of.record. Borrower warrants specifically and will defend the title, to the property against all claims and demands, subject to any encumbrances of record. This instrument combines uniform covenants for national use and non-uniform covents with limited variations byjurisdiction to constitute a uniform trust deed covering real property. UNIFORM COVENANTS. Borrower COVENANTS AND AGREES as follows: Payment. Borrower shall pay promptly when due any indebtedness to the Government secured by this instrument. ' 2. Fees. Borrower shall pay to the Government such fees and other charges that may now or later be required by Government regulations. 3. Application of payments. Unless applicable law or Government's regulations provide otherwise all payments received by the Government shall be applied in the following order of priority: (a) to advances made under this instrument; (b) to accrued interest due under the note; (c) to principal due under the note; (d) to late charges and other fees and charges. i Initial~~l `date ~ ~ "`~~ F1 ~.0~ ~ FSA 1927-I .NE (01-28-OS) Yage 2 oJ7 200'75381 4. ~ Taxes, liens, etc. Borrower shall pay when due all taxes, liens, judgments, encumbrances, and assessments lawfully attaching to or assessed against the property and promptly deliver to the Government without demand receipts evidencing such payments. 5~ Assignment. Borrower grants and assigns as additional security all the right, title and interest in: (a) the proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or taking by. eminent domain or otherwise of any part of the property, or for conveyance in lieu of condemnation; (b) all bonuses, rentals, royalties, damages, delay rentals and income that maybe due or become due and payable to the Borrower or Borrower's assigns under any existing or future oil, gas, mining or mineral lease covering any portion of the property; and (c) all rents, issues, profits, income and receipts from the property and from all existing or future leases, subleases, licenses, guaranties and any other agreements for the use and occupancy of any portion of the property, including any extensions, renewals, modifications or substitutions of such agreements. Borrower warrants the validity and enforceability of this assignment. Borrower authorizes and directs payment of such money to the Government until the debt secured by this instrument is paid in full. Such money may, at the option of the Government, be applied on the debt whether due or not. The Government shall not be obligated to collect such money, but shall be responsible only,for amounts received by the Government. In the event any item so assigned is determined to be personal property, this instrument will also be regarded as a security agreement. Borrower will promptly provide the Government with copies of all existing and future leases. Borrower warrants that as of the date of executing this instrument no default exists under existing leases. Borrower agrees to maintain, and to require the tenants to comply with, the leases and any applicable law. Borrower will obtain the Government's written authorization before Borrower consents to sublet, modify, cancel, or otherwise alter the leases, or to assign, compromise, or encumber the leases or any future rents. Borrower will hold the Government harmless and indemnify the Government for any and all liability, loss or damage that the Government may incur as a consequence of this assignment. 6. Insurance.: Borrower shall keep the property insured as required by and under insurance policies approved by the Government and, at its request, deliver such policies to the Government. If property is located in a designated flood hazard area, Borrower also shall keep property insured as required by 42 U.S.C. § 4001 et sec .and Government regulations. All insurance policies and renewals shall include a standard mortgagee clause. ~• Advances by Government. The Government may at any time pay any other amounts required by this instrument to be paid by Borrower and not paid by Borrower when due, as well as any cost for the preservation, protection, or enforcement of this lien, as advances for the account of Borrower. Advances shall include, but not be limited to, advances for payments of real property taxes, special assessments, prior liens, hazard insurance premiums, and costs df repair, maintenance, and improvements. All such advances shall bear interest at the same rate as the note which has the highest interest rate. All such advances, with interest, shall be immediately due and payable by Borrower to the Government without demand. No such advance by the Government shall relieve Borrower from breach of Borrower's covenant to pay. Any payment made by Borrower may be applied on the note or any secured debt to the Government, in any order the Government determines. 8. Protection of lien. Borrower shall pay or reimburse the Government for expenses reasonably necessary or incidental to the protection of the lien and its priority and the enforcement or compliance with this instrument and the note'. Such expenses include, but are not limited to: costs of evidence of title to, and survey of, the property, costs of recording this and other instruments; attorneys' fees, trustees' fees; court costs, and expenses of advertising, selling, and conveying the property. 9. Authorized purposes. Borrower shall use the loan evidenced by the note solely for purposes authorized by the Government. 10. Repair and operation of property. .Borrower shall: (a) maintain improvements in good repair; (b) make repairs required 6y the Government; (c) comply with all farm conservation practices and farm management plans required by the Government; and (d) operate the property in a good and husbandlike manner. Borrower shall not (e) abandon the property; (f) cause or permit waste, lessening or impairment ofthe property; or (g) cut,. remove, or lease any timber, gravel, oil, gas, coal, or other minerals without the written consent of the Government, except as necessary for ordinary domestic purposes. I I. Legal compliance. Borrower shall comply with all laws, ordinances, and regulations affecting the property. 12. Transfer or encumbrance of property. Except as provided by Government regulations, the Borrower shall not lease, assign, sell, transfer, or encumber, voluntarily or otherwise, any of the property without the written consent of the Government. The Government may grant consents, partial releases, subordinations, and satisfactions in accordance with Government regulations. 13. Inspection. At all reasonable times the Government may inspect the property to ascertain whether the covenants and agreements contained in this instrument are being performed. i lnitial~s~. ,*~. date ~l~' FSA 1927=1 NE (O1-28-OS) Page 3 of7 3~ 6 f)::. ~y~: i' ~'~~~t~~,,'~''t~.;;~,,_ 200'7531 l4. Hazardous substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any hazardous substances on or in the property. The preceding sentence shall not apply to the presence, use, or storage on the propertyof small quantities of hazardous substances that are generally recognized to be appropriate to normal use and maintenance of the property. Borrower covenants that Borrower has made full disclosure of any such known, existing hazardous conditions affecting the property. Borrower shall not do, nor allow anyone else to do, anything affecting the property that is in violation of any federal, state, or local environmental law or regulation. Borrower shall promptly give the Government written notice of any investigation, claim, demand, lawsuit or other. action by any governmental or regulatory agency or private party involving"the property and any hazardous substance or environmental law or regulation of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any hazardous substance affecting the property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with applicable environmental law and regulations. As used in this paragraph, "hazardous substances" are those substances defined as toxic or hazardous substances by environmental law and the following substances: gasoline, kerosene, other flammable of toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph, "environmental law" means Federal laws and regulations and laws and regulations of the jurisdiction where the property is located that relate to health, safety or environmental protection. 15. Adjustment; release;. waiver; forbearance. In accordance with Government regulations, the Government may (a) adjust the interest rate, payment, terms or balance due on the loan, (b) increase the mortgage by an amount equal to deferred interest on the outstanding principal balance, (c) extend or defer the maturity of, and renew and reschedule the payments on the note, (d) release any party who is liable under the note from liability to the Government, (e) release portions of the property and subordinate its lien, and (f) waive any other of its rights under this instrument. Any and all of this can and will be done without affecting the lien or the priority of this instrument or Borrower's liability to the Government for payment of the note secured by this instrument unless the Government provides otherwise in'writing. HOWEVER, any forbearance by the Government -whether once or often - in exercising any right or remedy under this instrument, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. • I6. Graduation. If the Government determines that Borrower may be able to obtain a loan from a responsible cooperative or private credit source at reasonable rates and terms for loans for similar purposes and periods of time, Borrower will, upon the Government's request, apply for and accept such a loan in sufficient amount to pay the note secured by this instrument and to pay for stock necessary to be purchased in a cooperative lending agency in connection with such loan. l7. Forfeiture. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in the Government's good faith judgment could result in forfeiture of the property or otherwise materially impair the lien created by this instrument or the Government's security interest. Borrower may cure such default by causing the action or proceeding to be dismissed with a ruling that precludes forfeiture of the Borrower's interest in the property or other material impairment of the lien created by this security instrument or the Government's security interest. 18. False statement. Borrower also shall be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to the Government (or failed to provide the Government with any material information) in connection with the loan evidenced by the note. 19. Cross Collateralization. Default under this instrument shall constitute default under any other security instrument held by the Government and executed or assumed by Borrower. Default under any other such security instrument shall constitute default under this instrument. 20. Highly erodible land; wetlands. Any loan secured by this instrument will lie in default if Borrower uses any loan proceeds for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity as provided in 7 C.F.R. part 1940, subpart G, or any successor Government regulation. 21. Non-discrimination. If any part of the loan for which this instrument is given shall be used to finance the purchase, construction or repair of property to be used as an owner-occupied dwelling (herein called "the dwelling") and if Borrower intends to self or rent the dwelling and has obtained the Government's consent to do so" (a) neither Borrower nor anyone authorized to act for Borrower will, after. receipt of a bona fide offer, refuse to negotiate for the sale or rental of the dwelling or will otherwise make unavailable or deny the dwelling to anyone because of race, color, religion, sex, national origin, disability, familial status or age, and (b) Borrower recognizes as illegal and hereby disclaims, and will not comply with or attempt to enforce any restrictive covenants on the dwelling relating to race, color, religion; sex, national origin, disability, familial status or age. Initialf~n~` date ~ " ~ -~~'/ 'b~ FSA 1927-1 NG (01-28-5) Page 4 of 7 ~~~,, f {;. 22. Notices. Notices given under this instrument shall be sent by certified mail unless otherwise required by law. Such notices shall be addressed, unless and until some other address is designated in a notice, in the case of the Government to the State Executive llirector of the Farm Service Agency at the mailing address shown above, and in the case of Borrower at the address shown in the Government's Finance Office records (which normally will be the same as the mailing address shown above). 23• Governing law; severability. This instrument shall be governed by Federal law. If any provision of this instrument or the note or its application to any person or circumstances is.held invalid, such invalidity shall not affect other provisions or applications of this instrument or the note which can be given effect without the invalid provision or application. The provisions of this instrument are severable. This instrument shall be subject to the present regulations of the Government, and to its future regulations not inconsistent with the express provisions hereof. All powers and agencies granted in this instrument are coupled with an interest and are irrevocable by death or otherwise; and the rights and remedies provided in this instrument are cumulative to remedies provided by law. 24• Successors and assigns; joint and several covenants. The covenants and agreements of this instrument shall bind and benefit the successors ahd assigns of Government and Borrower. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this instrument but does not execute the Note: (a) is co-signirig this instrument only to mortgage, grant and convey that Borrower's interest in the property under this instrument; (b) is not personally obligated to pay the sums secured by this instrument; and (c) agrees that the Government and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this instrument or the note without that Borrower's consent. 25: No merger. if this instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the.,property, the leasehold and the fee title shall not merge unless the. Government agrees to the merger in writing. If the property is conveyed to the Government, title shall not merge (unless the Government elects otherwise) and the lien provided under this instrument shall not be affected by such conveyance. 26. Time. is of the essence. Time is of the essence in the Borrower's performance of all duties and obligations under this instrument. NON-UNIFORM COVENANTS. Borrower further COVENANTS AND AGREES as follows: 27. Default; death; incompetence; bankruptcy. Should default occur in the, performance or discharge of any obligation in this instrument or secured by this instrument, or should the Borrower die or be declared incompetent, or should the Borrower be discharged in bankruptcy or declared an insolvent or make an assignment for the benefit of creditors, the Government, at its option, with or without notice, may: (a) declare the entire amount unpaid 'under the note-and' any debt to the Government hereby secured immediately due and payable, (b) for the account of Borrower incur and pay reasonable expenses for repair or maintenance of, and take possession of, operate or rent the property, (c) upon application by it and production of this instrument, without other evidence and without notice of hearing of said application, have a receiver appointed for the property, with the usual powers of receivers in like cases, (d) authorize and request Trustee to foreclose this instrument and sell the property as prescribed by law, and (e) enforce any'and all other rights and remedies provided herein or by present or future law. 28. Foreclosure. At the request of the Government, Trustee may foreclose this instrument by advertisement and sale of the property as provided by law, for cash or secured credit at the option of the Government, personal notice of which sale need.not be served on Borrower; such sale may be adjourned from time to time without other notice than oral proclamation at the time and place appointed for such sale; and at such sale the Government and its agents may bid and purchase as a stranger; Trustee at Trustee's option may conduct such sale without being personally present through Trustee's delegate authorized by Trustee for such purpose orally or in writing, and Trustee's execution of a conveyance of the property or any part thereof to any purchaser at foreclosure sale shall be conclusive evidence that the sale was conducted by Trustee personally or through Trustee's delegate duly authorized in accordance herewith. 29. State law. Borroweragrees that the Government will not be.bound by any present or future State laws, (a) providing for valuation, appraisal, homestead or exemption of the property, (b) prohibiting maintenance ofany-action for a deficiency judgment or limiting the amount thereof or the time within which such action must be brought, (c) prescribing any other statute of limitations, (d) allowing any right of redemption or possession following any foreclosure sale, or (e) limiting the conditions which the Government may by regulation impose, including the interest it may charge, as a condition of approving a transfer of the property to a new Borrower. Borrower expressly waives the benefit of any such State laws. _. I •-. ... i Initial'~~~t)~, date 1~,-~--C~~'~ ~~~ ' FSA 1927-I NL' (01-28-OS) Page S oJ7 r, :~ 30. Assignment of leases and rents. Borrower agrees that the assignment of leases and rents in this instrument is immediately , effective on the recording of this instrument. Upon default, the Borrower will receive any rents in trust for the Government, and Borrower will not commingle the rents with any other funds. Any amounts collected shall be applied at the,Government's discretion first to costs of managing, protecting and preserving the property, and to any other necessary related expenses. Any remaining amounts shall be applied to reduce the debt evidenced by the note(s). Borrower agrees that the Government may demand that Borrower and Borrower's tenants pay all rents due or to become due directly to the Government if the Borrower defaults and the Government notifies Borrower of the default. Upon such notice, Borrower will endorse and deliver to the Government any payments of rents. If the Borrower becomes subject to a bankruptcy, then Borrower agrees that the Government is entitled to receive relief from the automatic stay in bankruptcy for the purpose of enforcing this assignment. 31. Application of foreclosure proceeds. The proceeds of foreclosure sale shall be applied in the following order to the payment of: (a) costs and expenses incident to enforcing or complying with this instrument, (b) any prior liens required by law or a competent court to be.so paid, (c) the debt evidenced by the note and all otherdebt to .the Government secured by this instrument, (d) inferior liens of record required by law or a competent court to be so paid, (e) at the Government's option, any other debt of Borrower to the Government, and (f) any balance to Borrower. If the Government is the successful bidder at foreclosure or other sale of all or any part of the property, the Government may pays its share of the purchase, price.by crediting such amount on any . debts of Borrower owing to the Government in the order prescribed above. 32• Substitute trustee. The Government and its assigns, without notice and withouYSpecifying any reason therefore, may appoint a substitute trustee by filing for record in the office where this instrument; is recorded an instrument of appointment. The substitute trustee may or may not be an employee of the Government. Upon such filing, all the estates, rights, powers, and trusts granted to Trustee shall transfer to the substitute trustee. Any right to notice of substitution and bond from any trustee are hereby. waived. 33. Future Advances. Upon request of Borrower, Government may, at its option, make additional and future advances to the Borrower. Such advances with interest thereon, shall be secured by this Trust Deed. 34. Kequest for Notice. The parties hereby request that a copy of any notice of default and a copy of any notice of sale be mailed to each party to this Trust Deed at the address set forth in the manner prescribed by applicable law. Except for any other notice required by law to be given in another manner, any notice provided for in this Trust Deed shall be given by mailing such notice by certified mail addressed to the parties, at the address set forth above. By signing below, Borrower accepts and agrees to the terms and covenants contained in this instrument and in any rider executed by Borro~twer and re~cor/d~ed~w/it~h this instrument. ~~ `fl~lswt-.(.~. /_'~%14M~.~~' (Borrower) (Borrower)" t°[~so~n ony man (Borrower) 1 SS~ (Individual) On this `7 ~ ~ day of '~zG e~~,~l ~7, before me personally appeared Mason Anthony Hoffman to be known to me to be the same whose name is subscribed to the foregoirig instrument, and acknowledged that (he or she) signed and delivered the instrument as (his or her) free and voluntary act; for the uses and purposes set forth. My commission expires: ,. :~"'+~ .., , GENEML h'QTARY - Slate of Nebrasi;a ~./' / ` __ ~L~ir'Lrd~~Cv' ~~ /( ~Jf cL~; f ~~, ~~;~'(1 ~ MICHAEL E. SULLIVAN + tz - My Comm. Exp. June 21, 2010 i STATE OF NEBRASKA COUNTY OF AnAMS ACKNOWLEDGMENTS NOTARY PUBLIC 6 ~ lP Note: Page 7 of 7 applies to entities only and will no! be recorded for individuals. FSA 1927-I NE (0I-28-OS) Page 6 of 7 r, ~,