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HomeMy WebLinkAbout908765R~n To: New Century Mortgage Corporation 18400 Von Karman, Suite 1000 Irvine, CA 92612 , 00480 Prepared By: New Century Mortqage Corporation 18400 Von Karman, Suite 1000 Irvine, CA 92612 RECEIVED 5/27/2005 at 3:50PM RECEIVING # 908765 BOOK: 586 PAGE: 480 JEANNE WAGNER .INCOLN COUNTY CLERK, KEIVlMERER, WY [Space Above Thia Line For Recording DaUl MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words a~e de in.~d in Sectious 3, 11, 13, lg, 20 and 21. Certain rules regarding the usage of words used in this docur ~elr: are also provided in Section 16. (A) "Security Instrument"means this document, which is dated May 24, 2005 together with all Riders to this document. (B) '~l/orrower" is MARIL~.F. MACKIE Borrower is the mortgagor under this Sec~ity Instrument. (C) 'Lender"is New Century Mortgage Corporation Lender is a Corporation organized and existing under the laws of California WY OM lNG-Single Family-Fannie M aelFreddle M ac UNIFORM INSTRUMENT (~-S (WY)(ooo5~.o, V~P Me'GAGE FO~S- (800)521-72;1 10021 17 ~159 Form 3(I il t/01 ,,.00481 Lender's address is 18400 yon Karman, Suite 1000, Irvin., CA 92612 Lender is the mortgagee under this Security instrument. (D) "Note"means the prom/ssory note signed by Borrower and dated bls7 2,t, 2005 The Note states that Borrower owes Lender TWO DIUNDR~..D 29e/ElqT¥ THOIJ.qA..XlD FIV~ HLrN'DI AND 00/100 Collars (U.S. $ 220,500.00 ) plus interest. Borrower has promised to pay this debt in regulm' P~:riodic Payments and to pay the debt in full not later than June 1, 2035 (E) "Property" means the property that is described below under the heading "Transfer of Rigk :s in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and latt charges due under the Note, and all stuns due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The :5 dh)wing Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider [---] Condominium eider [--1 Second Home Rider [---] Balloon R/der [---] Planned Unit Development Rider [] 1-4 Family Rider ['--3 VA Rider [-~ Biweekly Payment R/der ~ Other(s) [specify] Prepayment Rider (H) "Applicable Law" means all controlling applicable federal, state and local statutes, re[; tlations, ordinances and administrative rules and orders (that have the effect of law) as well as all applic~l le final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments :~ ~d other charges that are imposed on Borrower or the Property by a condornhaium association, hoe eowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction orig~ att::d by check, draft, or similar paper instrument, which is initiated through an electronic terminal, t~: el:honlc instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an aceotmt. Such term includes, but is not limited to, point-of-sale transfers, automal :d leller machine transactions, transfers initiated by telephone, wire transfers, and automated clem'!aghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proc~.~ ~.ds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5, tbr: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any p,r t ~f the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions a; t,~, the value and/or condition of the Property. (bi) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or d~: hul't on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest u ad -'r the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate 'Settlement Procedures Act (12 U.S.C. Section 2601 et seq. ~ ~md its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from ti:ne to time, or any additional or successor legislation or regulation that governs the same subject matter. A:, used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed i t regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related :ztottgage loan" under RESPA. 1002~. ~']459 ,epp~ky,~.6(WY) (ooo.~).o~ P;m~.2 of 1,5 Form 30! 1 110t XS 00482 (P) "Successor in Interest Of Borrower" means any party that has taken title to the Property, ,a.l ether or not that party has assumed Borrower' s obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extens iolts and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements tr ~dt.r this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and t: ~n,tey to Lender and Lender's successors and assigns, with power of sale, the following described properl: l,cated in the County of Lincoln : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] See Legal Description Attached Hereto and Made a Part Hereof Parcel ID Number: 12-3418-05-3-04-009.00 382 Butte Drive Xhayne ("Property Address"): which currently has the ac dr~s of I Street] [City] , Wyoming 821127 [:ip Codel TOGETHER WITH all the improvements now or hereafter erected on the property, m~d all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacent, .~tt and additions shall also be covered by this Security Instrument. Ail ef the foregoing is referred t: itt this Security Instrument aa the "Property." BORROWER COVENANTS that Borrower ks lawfully seised of the estate hereby conveyed m~d has the right to mortgage, grant and convey the Property and that the Property is unencumbered, er cept for encumbrances of record. Borrower warrants and will defend generally the title to the Property at~ first all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non. aniform covenants with limited variatior~ by jurisdiction to constitute a uniform security instrument cove~ inl[ real property. UNIFORM COVENANTS. Borrower and 'Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late (. h~rges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note tnd any prepayment charges and late charges due under the Nete. Borrower shall also pay funds for Escrc at Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made: in U.S. currency. However, if any check or other instrument received by Lender as payment under the Not ,~ tlr this 10023. 17459 (~}~.8(WY) Cooos).ol ~a~. a of Is Form :lOt t 1101 XS~C 0048 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent i~a3ments due under the Note and this Security Instrument be made in one or more of the following 1 ~rms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's :h~ck or cashier's check, provided any such check is drawn upon an institution whose deposits are insu .cc by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the l'l ~t~ or at such other location as may be designated by Lender in accordance with the notice provisions in St; :don 15. Lender may return any payment or partial payment if the payment or partial payments are insuf, icient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring he Loan current, without w~iver of any rights hereunder or prejudice to its rights to refuse such payment ~ ,r lmrtiai payments in the future, but Lender is not obligated to apply such payments at the time such pay:r te~.ls are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need nt~': pay interest on unapplied funds. Lender may hold such unappli~ funds until Borrower makes paymenl to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall cid er ~tpply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the ou~ ~t~nding principal balance under ~he Note immediately prior to foreclosure. No offset or claim which l',o~rower might have now or in the future against Lender shall relieve Borrower from making payments d ~e ~mder the Note and this Security Instrument or performing the covenants and agreements secured l~y thi:; Se:urity Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Seeti,: a ~:, all payments accepted and applied by Lender shail be applied in the following order of priority: (~ irterest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such ~ ay.~aents shall be applied to each Periodic Payment in the order in which it became due. Any remaining an~ounts shall be applied Qrst to late charges, second to any other amounts due trader this Security Instruct enL and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which b~ .q~;des a sufficient amount to pay any late charge due, the payment may be applied to the delinquent pay~ ~e~x~ and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment rel~fived from Borrower to the repayment of the Periodic Payments if, and to the extent that, each paymer t c~ be paid in full. To the extent that any excess exists after the payment is applied to the full payment t f ,~ae or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepaym,.· at~ shall be applied ftrst to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous ProceSs to principal d~ e ander the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payment:. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payment~ are. due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of arno m~s due for: (a) taxes and assessments and other items which can attain Priority over this Security Instru~ e~t as a lien or enctunbrance on the Property; (b) leasehold payments or ground rents on the Property, il! a:~y; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Ii ~su~ance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of ]\ [o~tgage Insurance premiums in accordance with the provisions of Section 10. These items are called 'E:;crow Items." At origination or at any time during the term of the Loan, Lender may require that Co~ am~xnity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, ~e~ and assessments shall be an Escrow Iten~ Borrower shall promptly furnish to Lender all notices of ar~ m~ts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lend~; ~,'~ives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Bo rower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver ma.~/o~dy be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the tnmunts 10021'.' 7(~59 Form 30.~'1 t101 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender 'e~uires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be d.~ emed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and cf; cement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant'to a wai ~er, and Borrower fails to pay the mount due for an'Escrow Item, Lender may exercise its rights under ! cc!on 9 and pay such mount and Borrower shall then be obligated under Section 9 to repay to Lender ~ n) such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Fund:. ~nd in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the rrmximum amount a lt~ t&:r can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current lala and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Al pl:cable Law. The Funds shall be held in an institution whose deposits are insured by a federal ali ency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insur ~d) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than tN: time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, mnually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower intert: I {m the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made ir v, riting or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay il or:awer any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, thal interest shall be paid on the Fund& Lender shall give to Borrower, without charge, an annual accounti:z g of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall m: :ount to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held' in es,:row, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shn 1 lay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no mort,' thru 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Len lm shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary ~o make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptl;, r :fund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, mad imI osi'fions attributable to the Property which can attain priority over this Security Instrument, leasehold pas~ cents or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, ii" any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Se :tim 3. Borrower shall promptly discharge any lien which has priority over this Security Instrumer t unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner ar :eptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in g,: ad faith by, or defends against enforcement of the lien in, legal proceedings which in Lender' s opinion el er itc to prevent the enforcement of the lien while those proceedings axe pending, but only until such pro :re:dings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subo[ ti:ltating the lien to this Security Instrument. If Lender determines that any part of the Property is subject · o :t lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identit/ir g the 10021.." 74,59 (~}e-6{WY) (ooo~).o~ p,~, ~ o~ *~ Form 30l t t/0t -00,485 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or tat ,' one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verificatic.~ ~nd/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter er ,'cl:d on the Property insured against loss lay in:e, hazards included within the term "extended coverage," anJ any other hazards including, but not limited to, earthquakes and floods, for which Lender requires i:~ ~u~ ;race. This insurance shall be maintained in the mounts (including 'deductible levels) and for the pefi~d; that Lender requires. What Lender requires pursuant to the preceding sentences can change during th: term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to ].e:ltder's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Le~t le~ may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for fi,.' >d zone determination, certification and franking services; or (b) a one-time charge for flood zone deterJni,ation and certification services and subsequent charges each time remappings or similar changes occt r '~,hich reasonably might affect such determination or certification. Borrower shah also be responsibl', for the payment of any fees imposed by the Federal Emergency Management Agency in connection ' vilh the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purcl as~~. any particular type or mount of coverage. Therefore, such coverage shall cover Lender, but might ~.r :uight not protect Borrower, Borrower' s equity in the Property, or the contents of the Property, against ~ n:, risk, hu~,~rd or liability and might provide greater or lesser coverage than was previously in effect. X: or'ower acknowledges that the cost of the insurance coverage so obtained might significantly exceed th: cfi:it of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Sectic,~ 'i shall become additional debt of Borrower secured by this Security instrument. These amounts shall bear int.:rest. at the Note rate from the date of disbursement and shall be payable, with such interest, upon noq ce. :~om Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to l,e~:der's right to disapprove such policies, shall include a standard mortgage clause, and shall name L~ rider as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies ant; reuewal certificates. If Lender requires, 'Borrower shall promptly give to Lender all receipts of paid premi tins and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required b) Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage ci~ us: and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. L, mder may make proof of loss if not made promptly by Borrower. UnleSs Lender and Borrower other~i ;e ~gree in writing, any insurance proceeds, whether or not the undertying insurance was required by Lend ~,', ~;hall be applied to restoration or repair of the Property, if the restoration or repair is economically feas.bl: and Lender' s security is not lessened. During such repair and restoration period, Lender shall have th~ tit:hr to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to en ~ua e the work has been completed to Lender's satisfaction, provided that such inspection shall be ur~ .er~ken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or i~ a of progress payments as the work is completed. Unless an agreement is made in writing or Applica fie Law requires interest to be p~d on such insurance proceeds, Lender shall not be required to pay Borro ~,er any interest or earnings on such proceeds. Fees for publi5 adjusters, or other third parties, rett ned by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Bon', ,w~r. If the restoration or repair is not economically feasible or Lender's security would be lessened, the h surance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then C~ :e~ with 10021.) 7,~ Form 30.~1 1101 , 0048G the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provid ~ [br in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available i m~xance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender thu the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. Tit: 30-day period will begin when the notice is given. In either event, or if Lender acquires the Proper y under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any ::~.~surance proceeds in an amount not to exceed the amouats unpaid under the Note or this Security Instrum m~, and (b) any other of Borrower's rights (other thaa the right to any refund of unearned premiums pai:l by Borrower) under all insurance policies covering the Property, insofar as such rights are applieab e ':o the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Pr.: pe:ty or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's '~rincipa! residence within 60 days after the execution of this Security Instrument and shall continue to oti :upy the Property as Borrower's principal residence for at least one year at, er the date of occupancy, tmles., I.mder otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless exl .~mting ¢ircttmstances exist which are beyond Borrower's control. 7. Preservatioa, Maintenaaee and Protection of the Property; Inspections. Borrower ~,ha!l not destroy, damage or impair the Property, allow the Property to deteriorate or commit wast,: o.a the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Pre pe'ty in order to prevent the Property from deteriorating or decreasing in value due to its condition. Urt: determined pursuant to Section 5 that repair or restoration is not economically feasible, Borro~ 'er shall promptly repair the Property if damaged to avoid further deterioration or damage. If insm an:e or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, i.: orrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds b:t such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a ;eries of progress payments as the work is completed. If the insurance or condemnation proceeds are not :~ Jfi¢ient to repair or restore the Property, Borrower is not relieved of Borrower! s obligation for the comp-orion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. I f i~ has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender si all give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cat se. 8, Borrower's Loan ApPlication. Borrower shall be in default if, during the Loan aB ,lication process, Borrower or any persons or entities acting at the direction of Borrower or with B~i knowledge or consent gave materially false, misleading, or inaccurate information or statements t~ Lmder (or failed to provide Lender with material information) in connection with the Loan. vh~erial representations include, but are not limited to, representations concerning Borrower's occupanK, of the Property as Borrower' s principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instru nent. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, . b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or righ s under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfe? ur,:, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for wh~ te,,~ is reasonable or appropriate to protect Lender's interest in the Property and rights under tkis ;ecurity Instrument, including protecting ~md/or assessing the value of the Property, and securing and/or f ;p~dring the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured I:¥ ti. lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying m sonable 0048 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, i ~c!uding its secured position in a bankruptcy proceeding. Securing the Property includes, but is not lit fit. xt to, entering the Property to make repairs, change locks, replace or board up doors and windows, dn in water from pipes, eliminate building or other code violations or dangerous conditions, and have utiliti~ s turned on or off. AlthoUgh Lender may take action under this Section 9, Lender does not have to do so n Id is not under any dray or obligation to do so. It is agreed that Lender incurs no liability for not taking a ry or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of [orrower secured bY this Security Inslxument. These amounts shall bear interest at the Note rate from th~ d ~te of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower r,: tu:sting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisic~ s Df the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not mcrt e 'mless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making ~J te Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for an) r{ ason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage in'~ ~rer that previously provided such insurance and Borrower was required to make separately designated [ay.~aents toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required ~:.~ .btain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost sub: tn,tinily equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an rib:mate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverag~ is not available, Borrower shall continue to pay to Lender the mount of the separately designated paym mis that were due when the insurance coverage ceased to be in effect, Lender will accept, use and reli in these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve ~hall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shr[ 1 r~ot be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer rexI fir: loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender: equires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requh'es separately designated payments toward the premiums for Mortgage Insurance. If Lender required h [ol lgage insurance as a condition of making the Loan and Borrower was required to make separately d,' ~iF...nated payments toa~rd the premiums for Mortgage Insurance, Borrower shall pay the premiums req ai~ed to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until i,ender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borr,: w~r and Lender providing for such termination or until termination is required by Applicable Law. Nothln [ :ir. this Section 10 affects Borrower' s obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain osses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the 2~ [o~tgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, tml may enter into agreements with other parties that share or modify their risk, or reduce losses. These aD ee:nents are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or l:'~ rti:s) to these agreements. These agreements may require the mortgage insurer to make payments using m~i' s-~urce of funds that the mortgage insure~ may have available (which may include funds obtained from h (or tgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any rt in:rxrer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amc, tnl., that derive from (or m/ght be characterized as) a portion of Borrower's payments for Mortgage lnsm an.:e, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such a.[re,ment provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a shaft c 1' the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to ~,.}, for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. 10021~ 7~;59 (~-6(WY) (o~o~).o~ P,~, ~ ~ ~ Form 30~ 1 1101 XSS£gT-% (b) Any such agreements will not affect the rights Borrower has - if any - with respc~ t I:o the Mortgage Imuran~ under the Homeowners Protection Act of 1998 or any other law. Thc: e ~:lghts may include the right to rexeive certain disclosures, to request and obtain eancellafio:~ of the Mortgage Insurance, to have the Mortgage Insuraace terminated automatically, and/or to: ~e,:ive a refund of any Mortgage Insurance premiums that were unearned at the time of such eancell ~tion or termination. 11, Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds a,~ l:¢:reby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or: epeir of the Property, if the restoration or repair is economically feasible and Lender's security is not l.'s:~ned. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous i 'roceeds until Lender has had an opportunity to inspe~'t such Property to ensure the work has been coral le~ed to Lender s satisfaction, provided that such inspection shall be undertaken promptly. Lender may p:~, f:r the repairs and restoration in a single disbursement or in a series of progress payments as the w,:k is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid or. such Miscellaneous Proceeds, Lender shah not be required to pay Borrower any interest or earnings ot~ such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's secur!i' y would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Im rument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceed:; shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Misct llaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not then d ~e: with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or less in value o£ the Property in which the fa:i: n~ket value of the Property immediately before the partial taking, destruction, or loss in value is eqt al to or greater than the mount of the sums secured by this Security Instrument immediately before th; i~rtial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, I~e sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous l'rcceeds multiplied by the following fi.action: (a) the total amount of the stress secured immediately be ~'o~ e the partial taking, destruction, or loss in value divided by (b) the fair market value of the i~roperty immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to B,: ~rower. In the event cfa partial taking, destruction, or loss in value of the Property in which the f~5.' nutrket value of the Property immediately before the partial taking, destruction, or loss in value is less fi~n the amount of the sums secured immediately before the partial taking, destruction, or loss in value, u,uless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to ~he sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after nmice by Lender to Borrower tN,t the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for ,3 matges, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is wa :horized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property :r to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the tN :d party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right o£ I ction in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begu~: fl'.at, in Lender's judgment, could result in forfeiture of the Property or other material impairment of ~,eu.'ter's interest in the Property or rights under this Security Instrument. Borrower can cure such a defaul ~d, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceed? ~g l0 be dismissed with a ruling that, in Lender's judgment, precludes forfeiture o~ the Property or other mterial impairment of Lender' s interest in the Property or rights under this Security Instrument. The pro :e~ ds of any award or claim for damages that are attributable to the impairment of Lender's interest in the 5'rcperty' are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property ;Nil be applied in the order provided for in Section 2. 10021.." 74~§9 Form 30!1 t10~ ,.0O489 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the payment or modification of m-nortization of the sums secured by this Security Instrument granted to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of or any Successors in Interest of Borrower. Lender shall not be required to commence proceeding any Successor in Interest of Borrower or to refuse to exlend time for payment or' otherwis~ amortization of the sums secured by this Security Instrument by reason of any demand made by th: Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising remedy including, without limitation, Lender's acceptance of payments from third persons, Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a wai' preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signer~; Successors and Assigns Bound. Borrower and agrees that Borrower' s obligations and liability shall be joint and several. However, any Borm co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-sig~ Security Instrument only to mortgage, grant and convey the co-signer' s interest in the Property t terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, f: make any accommodations with regard to the terms of this Security Instrument or the Note co-signer' s consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who Borrower's obligations under this Security Instrument in writing, and is approved by Lender, sh:5 all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be rele, e Borrower's obligations and liability under this Security Instrument unless Lender agrees to such writing. The covenants and agreements of this Security Instrument shall bind (except as pro Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connect Borrower's default, for the purpose of protecting Lender's interest in the Property and rights Security Instrument, including, but not limited to, attorneys' fees, property inspection and valua: In regard to any other fees, the absence of express authority in this Security Instrument to charge a fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may m fees that are expressly prohibited by this Security Instrument or by Applicable Law. thne for [cnder Ol' ~ower against modify m iginal fi~.ht or tili:s or 'e:I 0f or mmants w,': who in ..,: this nde.~ the Sc:urity th:ar or .~o ~ the as i'Llmes ,)blain exl from fie. asa in ,id~ in or with tdi r this on fees. sl:ecifie t charge If the Loan is subject to a law which sets maximum loan charges, and that law is finally intmI ,re:ed so that the interest or other loan charges collected or to be collected in connection with the Loan e:~ :et~:l the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to r~: tu,:~ the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded 1.: m nitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the lwincipal owed under the Note or by making a direct payment to Borrower. If a refund reduces print: pal, the reduction will be treated as a partial prepayment without any prepayment charge (whether c.r not a prepayment charge is provided for under the Note). Borrower's aCCeptance of any such refund ~nMe by direct payment to Borrower will constitute a waiver of any right of action Borrower might have ar si~t:g out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security hi: trument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be dc erned to have been given to Borrower when mailed by first class mail or when actually delivered to B,')'rcwer's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Bt .rr,)wers unless Applicable Law expressly requLres otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall I ronptly notify Lender of Borrower's change of address. If Lender specifics a procedure for reporting Btl 'tower's change of Mdress, then Borrower shall only report a change of ad&ess through that specified pr There may be only one designated notice address under this Security InsU'ament at any one tlr notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender' ~ stated herein unless Lender has designated another address by notice to Borrower. Any n connection with this Security Instrument shall not be deemed to have been given to' Lender until. received by Lender. If any notice required by this Security Instrument is also required under Al Law, the Applicable Law requirement will satisfy the corresponding requirement under this Instrument. ~e. Any a~.dress >ti :e in ac .~mlly pl:.cable ~ezurity Paga 10 of 15 10021~ Form 301 ?459 ~ t/01 X~ ,-00480 16. Governing Law; Severability; Rules of Construction. This Security Instrument ;hall be governed by federal law and the law of the jurisdiction in which the Property is located. All d gh :s and obligations contained in this Security InsUument axe subject to any requirements and limit~.:ior~s of AppLicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by toni act or it might be silent, but such silence shall not be construed as'a prohibition against agreement by cot tract. In the event tha~ any provision or clause of this Security Instrument or the Note conflicts with A.I ,pJieable Law, such conflict shall not affect other provisions of this Security Instrument or the Note whi,: ~ ~ ~tn be given effect without the conflicting provision. As used in this Security Instrummt: (a) words of the masculine gender shall mean and irdude corresponding neuter words or words of the feminine gender; (b) words in the singular shall n can and include the plural and vice versa; and (c) the word "may" gives sole discretion without any oblil :at on to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Ins~ rument. lg. Transfer of the Property or a Beneficial Interest In Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but no limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales cx~ ~ta' ~ct or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a pure[ If all or any part of the Property or any Interest in the Property is sold or transferred (or if [ orrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lend,: ":; prior written consent, Lender may require immediate payment in full of all sums secured by this Sc:urity Instrument~ However, this option shall not be exercised by Lender if such exercise is prohi.'dtcd by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The n~! ce shall provide a period of not less than 30 days from the date the notice is given in accordance with Se :tim 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fall ~ t :. pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted b7 this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at s n.,/ time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale con? ai:u~ in this Security Instrument; (b) such other period as Applicable Law might specify for the termk ~tJ:.n of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrumem. '['hose conditions are that Borrower: (a) pays Lender all sums which then would be due under this ge:urity Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other coy,: ~ts or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but no limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurreal for the purpose of protecting Lender's interest in the Property and fights under this Security Instrumenl; ~t,d (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Prop n't7 and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this gec:~rity Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement s m~s and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money o: der; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is dra~ m upon an institution whose deposits are insured by a federal agent%', instrumentality or entity; or (d) £1 ~clt'onic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secure~ h:reby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate :hall not apply in the case of acceleration under Section 18. 20: Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial b:~ ~r'.st in the Note (together with this Security Instrument) can be sold one or more times without prior r otice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that a:llects Periodic Payments due under the Note and this Security Instrument and performs other mortg~ ge loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also t filiht be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of t ~e Loan Servicer, Borrower will be given x~itten notice of the change which will state the narae and addm s iffthe new Loan Servicer, the address to which payments should be made and any other information KI!SPA XSf£EI- requires ha connection with a notice of transfer of servicing. If the Note is sold and thereafter the L:an is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing o1~ ig ~tions to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer ant are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as, it'her an individual litigant or the member of a class) that arises from the other party's actions pursua~ t,~ this Security Instrument or that alleges that the other party, has breached any provision of, or any duty reed by reason of, this Security Instrument, until such Borrower or Lender has not[fled the other party ('~ itk such notice given in compliance with the requirements of Section 15) of such alleged breach and affi)'did the other party hereto a reasonable period after the giving of such notice to take corrective ~ ti(,n. If Applicable Law provides a time period which must elapse before certain action can be taken, ! iai time period will be deemed to be reasonable for purposes of this paragraph. Tho notice of accelera ion and opportunity to cuxe given to Borrower pursuant to Section 22 and the notice of acceleration :i,,en to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take ct rr,~:tive action provisions of this Section 20. 21. Hazardous Substances. As used in~ this Section 21: (a) "Hazardous Substances" it e those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law a~ d the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic p ~stcides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive ~t at~a'ials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is 1o,: tto~. that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any es3onse action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Envirc mn.:ntal Condition" means a condition that can cause, contribute to, or otherwise trigger an Envin nmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any I~i~ z~rdous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shaj tort do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Envin nmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or re., ,e;: of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The I¥ ec.~ding two sentences shall not apply to the presence, use, or storage on the Property of small qua~ :itk;s of Ha?ardous Substances that are generally recognized to be appropriate to normal residential ust~ a~d to maintenance of the Property (including, but not limited to, hazardous substances in consumer prodt ct~:). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, la~vsuit or other action by any governmental or regulatory agency or private party involving the Properb mt any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, lb) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or' hr,;at of release of any Ha:,~rdous Substance, and (e) any condition caused by the presence, use or reh: e{: of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or i:. notified by any governmental or regulatory authority, or any private party, that any removal or other rotc ~ :ation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all n :ce.,.sary remedial actions in accordance with Environmental Law. Nothing herein shall create any obli~ lion on Lender for an Environmental Cleanup. XSS£~T-% NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree a~ £ollow: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration ti ll4,wing Borrower's breach of any covenant or agreement in this Security Instrument (but not l,r~ar to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall sp~r :i~{y: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from :hu date the notlee is given to Borrower, by which the default must be cured; and (d) that failure to :urn.· the default on or before the date specified in the notice may result In acceleration of the sums sec ar.:d by this Security Instrument and sale of the Property. The notice shall further inform Borrowe ~ ~,l~ the right to reinstate after acceleration and the right to bring a court action to assert the non-exl:s :er.ce of a default or any olher defense of Borrower to acceleration and sale. If the default is not cur~ d an or before the date specified in the notice, Lender at its option may require immediate payment i.~t l'~H of all sums secured by this Security Instrument without further demand and may Invoke the p a~.~r of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to c~tle:t all expenses incurred in pursuing the remedies provided in this Section 22, Including, but not liar ill d to, reasonable attorneys' fees and costs of title evidence.. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to tl~r~'~wer and to the person in possession of the Property, If different, in accordance with Applicab e [,aw. Lender shah give notice of the sale to Borrower in the manner provided in Section 15. Lend ~r :thall publish the notice of sale, and the Property shall be sold In the manner prescribed by Ap ~l~able Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale ~huili be applied in the following order: (a) to all expenses of the sale, including, but not lira roi to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any ~.' ~e~ts to the person or persons legally entitled to lt. 23. Release. Upon payment of all sums secured by thi~ Security Instrument, Lender shall rel~ as,; this SecuriTM Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fe~ for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered ~al~l the charging of the fee is permitted under Applicable Law. 24. waivers. BOrrower releases and waives all rights under and by virtue of the ho nestead exemption laws of Wyoming. ~e-S(WY) Page 13 of 15 ~ [002:) 3?459 lnillllhl: ''~/4/ Form 30ll 110t XS~£EI- '.00493 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contaim.51 :ir, this Securily Instrument and in any Rider executed by Borrower and recorded with it. Witne~se.s: MARILEE MACKIE .lk ~rower [Sem) ·Ilc ~TO wet (Seal) -Borrower Bo rrower (Seal) .Borrower _ ,:Sea~) Borrower (Seal) -Borrow,r _ ,[Seal) Btlrrower (WY) (ooo~).o~ Page 14 o! 15 10021:.~ 7~,59 Form 30ll t101 STATE OF WYOMING, The foregoing instrument was acknowledged boforo mc this '00494 £c~o7 · Notary Public (WY) (ooo~).os Page ~5 o! 15 Inltlala: (J~/ 1002:.3';459 Form 3~:$I 1101 00495 Legal Description Lot 19 of Star Valley Ranch Plat 21, Lincoln County, Wyoming as described on the official plat thereof. .-.00496 ADJUSTABLE RATE RIDER (LIBOR Six-Month Index (As Published in The ~'all Street JournaO-Rate Caps) 2 YEAR RATE LOCK THIS ADJUSTABLE RATE RIDER is made this 24th day of May, 2005 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Bm-rower's Adjustable Rate Note (the "Note") to New Century Mortgage Corporation ("Lender") of the same date and covering the property described in the Security Instrument and located at: 382 Butte Drive, Thayne, WY 83127 (Property Address) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE .aND THE MONTHLY PAYMENT. THE NOTE LIMITS THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of changes in the interest rate and monthly payments as follows: 8.100 %. The Note provides for 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of June, 2007 and on the same day of every 6th month thereafter. Each date on which my interest rate could change is called an "Interest Rate Change Date." (B) The Index Begimfing with the first Interest Rate Change Date, my interest rate will be based on an Index plus a margin. The "Index" is the average of interbank offered rates for six month dollar deposits in the London market ("LIBOR"), as published in The Wall Street Journal "Money Rates" Table. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable infomaation. The Note Holder will give me notice of this choice. NCMC 2/28 Six Month LIBOR Adjustable Rate R/der RE-409 (111803) Page I of 3 1002137459 (C) Calculation of Changes At each Interest Rate Change Date, the Note Holder will calculate my new interest rate by adding Five And Fifty-five Hundredth(s) percentage points ( 5.550% ) to the Current Index. The Note Holder will then round this figure to the nearest one-eighth of one percentage point (0.125%). Subject to the limit stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Interest Rate Change Date. (i) Interest-Only Period. The "Interest-only Period" is the period from the date of this Note through June 1, 2007. For the Interest-only Period, the Note Holder will calculate the amount of the monthly payment to be one-twelfth (1/12th) of one (1) year's interest at 8.100 % per annum. The result of this calculation will be the amount of my monthly payment until the Interest Rate Change Date. (ii) Amortization Period. The "Amortization Period" is the period after the Interest-only Period and continuing until the Maturity Date. During the Amortization Period, after calculating my new interest rate as provided in Section 4(C) above, the Note Holder will then calculate the amount of the monthly payment that would be sufficient to fully repay the remaining unpaid principal in equal monthly payments by the Maturity Date, assuming, for purposes of each calculation, that the interest rate remained unchanged during that period. The result of this calculation will be the new amount of my monthly payment. (D) Limit on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.600% or less than 8.100%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one and one half percentage points (1.5%) from the rate of interest I have been paying tbr the preceding month. My interest rate will never be greater than 15.100 % nor less than 8.100 %. (E) Effective Date of Changes My new interest rate will become effective on each Interest Rate Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Interest Rate Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment at least 25 days before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any questions I may have regarding the notice. 11. GOVERNING LAW - SECURED NOTE The Note is governed by federal law and the law of the jurisdiction in which the property encumbered by the Security Instn~ment (as defined below) is located. In addition to the protections given to the Note Holder under the Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as the Note protects the Note Holder from possible losses which might result if I do not keep the promises which I make in the Note. That Security Instrument describes how and under what conditions I may be required to make inmqediate payment in full of all anaounts I owe under the Note. Some of those conditions are described as follows: NCMC 2/28 Six Month LIBOR Adjustable Rate Rider RE-409 (111803) Page 2 of 3 1002137459 Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Bon'ower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. ' MARILEE MACKIE -Bo~ower -Bo~ower -Bo~ower -Bo~ower -Bo~ower -Bo~ower -Bo~owcr -Bo~ower (Sign Original Only) NCMC 2/28 Six Month LIBOR Adjustable Rate Rider RE-409 (111803) Page 3 of 3 1002137459 , 00499 PREPAYMENT RIDER ADJUSTABLE RATE LOAN This Prepayment Rider is made this 24th day of May 2005 , and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "Note") and Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure repayment of Borrower's Note to New Century Mortgage Corporation (the "Lender"). To the extent that the provisions of this Prepayment Rider are inconsistent with the provisions of the Note and/or Security Instrument, the provisions of this rider shall prevail over and shall supersede any such inconsistent provisions of the Note and/or Security Instrument. In addition to the covenants and agreements made in the Note and Security Instrument, the Borrower and Lender further covenant and agree as follows: 5. BORROWERS RIGHT TO PREPAY I have the right to make prepayments of principal any time before they are due. A payment of principal only is known as a "prepayment". When 1 make a prepayment, I will tell the Note Holder in writiug I am doing so. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will be no changes in the due dates of my montlfly payments unless: the Note Holder agrees in writing to those changes. My partial prepayment may reduce the amount of my monthly payments after the first Change Date following my partial prepayment. If within 2 year(s) from the date of execution of the Security Instrument, I make a full prepayment or, in certain cases a partial prepayment, and the total of such prepayment(s) in any 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of this loan, I will pa), a prepayment charge in an amount equal to the payment of 6 months advance interest on the amount by which the total of my prepayment(s) within that 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of the loan. BY SIGNiNG BELOW, Borrower accepts and agrees to the terms and covenants contained in this Prepayment Rider. MARILEE MACKIE NCMC Prepay Rider - ARM (Multistate RE-103 (020800) Page 1 of 1 1002137459