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HomeMy WebLinkAbout910576~e[llr~ ~erid~an Trust FederM Credit Union 2223 Warren Avenue Cheyenne, WY 8200i Prepared By: Meridian Trust Federal Credit Union 2223 Warren Avenue Cheyenne. WY 82001 Loan Number: 55139- 030 DEFINITIONS [Space Above This l.ine For Recording l)ala] MORTGAGE RECEIVED 81412005 at 10:12 AM RECEIVING # 910576 BOOK: 593 PAGE: 242 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Words used in multiple sections of riffs document are defined below and Other words are defined in Sections 3, ] 1, 13, 18, 20 and 21. Certain rnies regarding thc usage of words used in [his document are also provided m Section 16. (A) "Security Instrument" ~neans this document, which is dated 3uly 25, 2005 together with all Riders to this document. (B) "Borrower" is M Brandon Krall AND Lindsey R Krall, HUSBAND AND WIFE Borrower is the inortgagor under this Security Instmn-~ent. (C) "l.endbr" is Meridian Trust Federal Credit Union l.¢nderisa Meridian Trust Federal Credit Union organized and existing under tile laws of WYOMING WYOMING-Single Family Fannie Mae/Freddie Mac UNIFORM INSTRUMENT I~t®-61WY) iooo5~ Page 1 of 15 Initials~__ VMP MORTGAGE FORMS - [8OO)5 2 I ~:! 291, DtJS WY4 Form 3051 1/O1 Lender's address is 2223 Warren Avenue Cheyenne, WY 82001 I.endcr is the mortgagee under tiffs Security Irtslrument. (1)) "Note" means the promissory note signed by Borrower and dated Jul y 25, 2005 The Note states that Borrower owes Lender Eleven Thousand N~nety-Four & 54/100 Dollars (U.S. $11,094.54 ) plus interest. Borrower has promised to pay this debt iu regular Periodic Payments and to pay the debt in full not later than September 30. 2005 rE) "l~roperty" means the property that is described below under the heading "TransFer of Rights in the Property." (F) "Loan" meaus the debt evidenced by the Note, pins interest, any prepayment charges and late charges due under the Note, and all suns due under this Security Instrument, plus inlerest. (G) "Riders" means all Riders to this Security Instrmncnt lhat are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~--~ Adjustable Rate Rider ~__~ Condonfiuiuln P, idcr ~ Second llomc Rider [~ Balloon Rider [~ Planned Unit Development Rider ~ 1-4 Family Rider ~-j VA Rider [_.~ Biweekly Payment Rider [-~ Other(s)Ispecil'yl (11) "Applicable Law" means all controllmg applicable fizderal, state and local statutes, regulations, ordinances and administrative rules ted orders (that have the cfi'cci of law) as well as all applicable Final, non-appealable judicial opinions. (1) "Community Association Dues, Fees, and Assessments" means all dues, Fees, assessments and oilier' charges that arc imposed on Borrower or file Property by a condominium association, homeowners association or similar organization. (J) "Electronic Ftmds Transfer" means m~y transfer of flmds, other than a transaction originated by check, draft, or similar paper instrument, wMch is initiated through an electronic terminal, telephomc instrument, computer, or magnetic tape so as to order, irish'uti, or audmrize a financial institution to riel)il or credit an account. Such tefra includes, but is uot limited to, point<)f-s,'de transl"ers, atltomated teller machine transactions, lransfers initiated by telephone, wire transfers, and antouwtled clearmghouse transl~crs. (K) "Escrow Items" means those items tl~at are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under tile coverages described in Section 5) Ibr: ri) damage to, or destruction of, thc Property; (ii) condcmuation or other taking oF all OF m~y part oF dm Property; (iii) couveyance in lieu of conclemnation; or (iv) nfisrepresentations of, or omissions as to, the value and/or condition of tile Property. tM) "Mortgage Insurance" means insurance protecting Lender against the nonpaymeut of, or default on, the Loan. tN) "Periodic Payment" [neans the regularly scheduled amonm due for ri) principal and interest under the Note, plus (ii) any amounts uuder Seclion 3 of this Security Instrument. (O) "RI~,SPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended From time to time, or any additional or successor legislation or regulatiou that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if thc Loau does not qualil~ as a "federally related mortgage loau" under RESPA. (~)~-6tWYI Iooos} ~.~e 2 ol~s Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party ti-tat has taken title to the Proper[y, whed~er or noi that party has assumed Borrower's obligations under the Note and/or tt~is Security lnsmm~el~t. TRANSFI~R OF RIGIITS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of lhe Loan, and all renewals, exteusions and modifications of tl~c Note; and (ii) ttae performance of Borrower's covenants and agreements under this Secority Instrumenl and the Note. For this pm-pose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the County of L~ ncol n : lType of Recordi,g Jurisdiction] [Name of Recording Jtnisdic[ion] Lo~s 7, 8. 9. arid 10 of Block 26 to the Town of Diamondville, Lincoln County, Wyoming as described on the officiial plat thereof. Parcel ID Nmnber: 807 Star Di amondvi 11 e (" Property Address "): which currently has tile address of [City] , Wyoming 83116 [Zip Code] TOGET[tER WITII all the improvements now or hereafter erected on thc property, and all easements, appurtenances, and Fixtures now or hereafter a par[ of the property. All replacements and additions shall also be covered by dais Security Instrument. All oF the fi')regoing is rcl~rred to in ti'ns Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfitlly seised of the estate herehy conveyed and has the right to mortgage, grant and convey the Property and that die Property is unencumbered, except encumbrances of record. Borrower warrants and will del~nd generally the title to [l~e Property against all claims and demm~ds, subject to m~y encnmbrmaces of record. Tills SECURFI'Y INSTRUMENT combines unitbrm covenants fi)r national nsc and non uniform covenants with limited variations by jurisdiction to constitute a unil~)rm security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenmit and agree as Ibttows: 1. Payment oF Principal, Interest, Escrow Items, Prepayment Charges, and Late (?barges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay Funds lk)r Escrow 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 trader lhe Note or this ~fi(WY) 10005~ Page 3 al ~5 ,-. ~( , . Form 3051 1/01 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Securky Instrument be made in one or more of thc fi)llowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a l~deral agency, instrumentality, or entity; or (d) Electronic Funds Transl!er. Payments are deemed received by Lender when received at the location designated in the Note or a[ such other location as may be designated by Lender in accordance wi[h the notice provisions in Section 15. l.encler may returll ally payment or partial payment if the payment or parlial payments are insuI:Ticienl to bring the Loan current. Lender may accept m~y payment or partial payment insut:l:icient to briag II~e Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the fi~tt~l'e, hut Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its schedtdcd due date, then l.endcr need not pay interest on nnal)plied ltmds. Lender may hold such tmapplicd l:unds until Borrower makes payment to bring the l.oan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such hinds or return them to Borrower. If not al)plied earlier, such funds will be apl)lied to the outstanding principal balance under the Note immediately prior lo tS~reclosure. No offset or claim which Borrower might have now or in the h~ture against Lender shall relieve Borrower fron~ making payments due under the Note anct lhis Security lnstrtm~ent or pertkn-ming the covenants and agreements secured by this Security [IISI l'[ln lent. 2. Application of Payments or Proceeds. Except as otherwise described in riffs Section 2, all payments accepted and applied by Lender shall be at)plied in the /bllowing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due trader Section 3. Such payments shall be applied to each Periodic Payment in the order in wlfich it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts clue under this Security h~slrument, and then to reduce the principal balm~ce of the Note. If Lender receives a payment from Borrower t:or a deiinquem Periodic Payment which includes a sufficient amount to pay any lam charge due, the payment may be applied to the delinquent payment and thc late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received fi'om Borrower to the repayment of the Periodic Payments il', al'id to the extent that, each payment can be paid in full. To the extent that any excess exists after thc paymem is al)plied to the fltll payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to m~y prepayment charges and then as described in the Note. Any application of payments, instmmce proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone tile due date, or change the amount, of lhe Periodic Payments. 3. Ftmds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in 15~11, a stllll (thc "Funds") ro provide t~r payment o1: amounts due fi)r: (a) taxes and assessments and other items which eau attain priority over this Security Instrument as a lien or encumbrance on thc Property; (b) leasehold payments or ground renls on thc Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage l[lsurallcc premiums, if any, or any sums payable hy Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with thc provisions of Section 10. These items arc called "Escrow Items" At originalion or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessmcms, if aily, be escrowed by Bori'-ower, and such dues, l:ees and assessmenfs shall be an Escrow Item. Borrower shall promptly l~urnish to Lender all notices of amounts to bc paid unde~ this 'Section. Borrower shall pay Lender thc Funds l:or Escrow items unless Lender waives Borrower's obligation to pay the Funds tBr any or all Escrow Items. Lender may waive Borrower's obligalion to pay to Lender Funds [Bt any or all Escrow Items at any time. Any such waiver may only be in writing, hi thc event of such waiver, Borrower shall pay directly, when and where payable, the amounts clue fi~r any Escrow Items for which payment of iFnnds bas been waived by Lender and, if Lender requires, 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 deemed be a covenant and agreement contained in this Security Instrument, as tbe phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pm:snant to a waiver, and Borrower lhils to pay the amount dne for an Escrow Item, Lender may exercise its eights uuder Section 9 and pay such amount and Borrower shall then be obligated trader Section 9 to repay to Lender any such amonnt. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice giveu in accordance with Section 15 and, upon snch revocation, Borrower sMlt pay to Lender all Fnnds, and m such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (at sufficient to permit Lender m apply the Funds at the time specified under RESPA, and (bt not to exceed the maxinmm amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on tile basis of current data and reasonable estimates of expenditures of flmu'e Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held itl an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose dq)osits arc so insnred) or itt any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower lbr hoMing and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Leuder pays Borrower interest on Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law reqnires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of file Funds as required by RESPA. If there is a suq)lus Of Ftmds held in escrow, as defined nnder RESPA, Lender shall accomn to Borrower for the excess lm~ds in accordance with RESPA. If there is a shortage of Funds held in escruw, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender Ihe amount necessary to make up tile shortage in accordance with RF. SPA, bnt in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender tile amount necessary ~o make up the deficiency in accordance with RESPA, but in no more than 12 monlhly payments. Upon payment itl fifll of all snms secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; IJens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attribntable to the Property which can attain priority over this Securily lnstrume,ll, leasehold payments or ground rents on the Property, if any, and Comrnunity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the mauncr provided in Seclion 3. Borrower shall l)romptly discharge any lien which bas priority over d-tis Security Instrument nnless Borrower: (at agrees in writing lo the payment of the obligation secured by the lien in a rammer acceptable to Lender, but only so long as Borrower is performing such agreement; (bt contests tile lien in good faith by, or defends against entbrcernent of the lien in, legal proceedings which in l.cnder's opinion operate to prevent the entbrccment of tile lien while those proceedings arc pending, but only until snch proceedings are concluded; or (ct secures fi'om the holder of the lien an agreement salisfactory to Lender subordinating lhe lien lo this Security Instrument. If Lender determines that arty part of the Properly is subject to a lien which can altain priority over this Security lnslrument, Lender may give Borrower a notice identifying the Form 3051 1/01 0 0 2 4 ? lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy tile lien or take one or more of the ?tit)ns set forth above in this Section 4. Lende~~ may reqmre Borrower to pay a one-time charge for a real estate ~ax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or he{caller erected on the Property insured against loss by fire, hazards included within the lenn "extended coverage," and any olher hazards including, but not limited to, earthquakes and floods, l~r which Lender requires inst,rance. This insurance shall be maintained in the amounts (including deductible levels) and ifil{ the periods {bat l~endcr requires. What Lender requires pursuant to the preceding sentences eau change during the term of the hoan. The insurance carrier providing the insurance shall be chosen by Borrower suhject to Lender's right to disapprove Bon'ower's choice, which right shall no! be exercised unreasonably. Lender may require Borrower to pay, in connection with tilts Loan, either: Ca) a oneqime charge lbr t]ood zone deiermination, certification and tracking services; or Ch) a one4ime charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occm' which reasonably might altec{ st!ch determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting lrom an objection by Borrower. If Borrower fails to maintain any of the coverages described above, l.ender may obtain insm'ance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but lnight or might not protect Borrower, Borrower's equity i~i the Property, or tile contents of tile Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in ct'l'ect. Borrower acknowledges that the cost of tile insurance coverage so obtained might significantly exceed the cost of iusurance that Borrower could have obtained. Any arnounts disbursed by Lender under this Section 5 shall become addilional debt of Borrower secured by this Security Instrument. These amonnts slmlt bear interest at the Note rate from tile dale of disbursement and sbali be payable, with such tut{rest, upon notice from Lender to Borrower requesting paymem. All insurance policies required by Lender and renewals o1' such policies shall be subject to l.ender's right to disapprove such policies, shall include a standard mortgage clause, and shall nmne Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. It' Lender requires, Borrower shall promptly give to Lender all receipts of paid premiunls and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by l.ender, fbr damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or ils an additional loss pay.ce. In the event of loss, Bon'ower shall give prompt notice to the insurance carrier ~md Lender. Lender may make proof of loss if not made promptly by Bon'ower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not Ihe underlying insurance was required by Lender, shall be applied to restoration or repair o[' tile Property, if tile restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, [_.{:rider shall have tim right to bold snell insurance proceeds until Lender has had an opportunity to iuspect such Property to ensure tile work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disbm'se proceeds for the repairs and res[oration in a single payment or m a series of progress payments as the work is completed, Unless an agreement is made in writing or Applicable Law requires imerest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third panics, retained by Borrower shall not be paid on{ of tile insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security lnsnmncnt, whether or not then due, with (~-6(WYI Iooo51 Page Form 3051 1/0'1 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.. If Borrower abandons the Property, l,ender nray file, negotiate m-id settle arty available insurance claim rind related matters. If Borrower does not respond within 30 days to a notice fi-om Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle thc claim. The 30--day period will begin when Ihe notice is given. In either event, or if Lender acquires the Property nnder Section 22 or otherwise, Borrower hereby assigns to Lender (at Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, m~d (bt any other of Borrower's rights (ocher than the right to any refund of nnearned premiums paid by Borrower) under all insurance, policies covering the Property, insofar as such righis are applicable to thc coverage of the Property, Lender may use the insurance proceeds either to repair or xestorc tile Property' (ar to pay amounts unpaid under the Note or this Security Insmmaenl, whelher or not then due. 6. Occnpancy. Borrower shall occnpy, establish, and use thc Property as Borrower's principal residence within 60 clays after tile execution of tiffs Security hmtrument and shall conlinue to occupy tile Property as Borrower's principal residence lbr at least one year after the date of occupancy, Unless Lender otherwise agrees in writing, whicl'l consent shall not be unreasonably witltl'~eld, or unless exit,mating circtmrstances exist which arc beyond Borrower's control. 7. i:'rc, servatim~, Maintenance and Protection of tl,e Property; hlspections. Borrower shall not destroy, damage or impair the Property, allow tile Property to deteriorate or COlrnnit waste on the Properly. Wl~etber or not Borrower is residing in the Property, Borrower shall mainlain the Property in order to prevent tile Property fi'om deteriorating or decreasing in value due to its condition. Unless il is determined pursum~t to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. It' insnrance or condemnation proceeds are paid in cormection with damage co, or tile taking of, the Property, Borrower si-mil be responsible Rxr repairing or restoring the Property ouly il! Lender has released proceeds tbr such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condenlnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved et' Borrower's obligation for thc completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. 11: it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection spccit~ing such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in defanlt if, during the Loan application process, Borrower or coy persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave nraterially false, misleading, or inaccurate iuformation or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are nol limited to, representations concerning BorroweFs occupancy of the Property as Borrower's principal residence. 9. Protection et' Lender's Interest in lhe Property and Rights/Jnder this Security lnstrunmnt. If (at Borrower t'ails to perform the covenants and agreements coqtained in this Secnrity Instrument, (bt there is a legal proceeding that might significantly aftkct Lender's interest in lite Property and/or rights nnder this Security instrument (such as a proceeding in bankn|ptcy, probate, for condemnation or {brfizimre, for enforcement of a lien which may attain priority over this Secnrity Instrument or to cuforcc laws or regulations), or (ct Borrower has abandoned the Property, then Lender may do m~d pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Securily Instrument, including protecting and/or assessing II~e vah,e of the Property, and securing and/or repairing the Properly. Lender's actions can include, bnt are not limited to: (at paying any snms secured by a lien which bas priority over this Security lnstrumerit; (bt apl)caring in corot; arid (ct paying reasonable DDS WY4 Form 3051 1101 0 0 2 4 9 allorneys' fees to protect its interest in tile Property and/or righls under this Secnrity lnstrun~cnt, including its secured position irt a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering tile Property Io ~nake repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, ,'lnd have utilities turned on or off. Although Lender may take action under this Section 9, l~cnder does not have to do so and is not nndcr any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under tMs Section 9. Any amounls disbursed by Lender under tMs Section 9 shall become additional debt of Borrower secured by this Security Instalment. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such i,ltcrcst, upon notice fi'om Lender to Borrower requesting payment. If this Security lnsmnnent is on a leasehohl, Borrower shall comply with all thc provisions of the lease. 11: Borrower acquires l~e title to tile P,-operty, thc leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mm'tgage Insurance. ii' Lender required iVlortgage Insurance as a condition oil making the Ixian, Borrower shall pay tile premiums required to maintain the Mortgage lnsnrance in effect. If, 2)r' ally reason, the Mortgage hlsurmlce coverage required by Lender ceases to be available from the mortgage insurer that previously provided snch insm'ance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the prenfiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in etTect, fi'om an alternate mortgage insurer selected by Lender. Il' substantially equivalent Mortgage Insurance coverage is not available, Borrower shall contim~e [o pay to Lender the amonnt of the separately designated payments that were due when the insurance coverage ceased to be in eflZ, ct. Lender will accept, use and retain [hese payments as a non-refi, mdahle loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refimdable, notwithstanding the fact that tile Loan is ultimately paid ill full, and l,cnder shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments it: Mortgage Insurance coverage (in the amount and l~)r thc period ti-tat Lender requires) provided by an insnrer selected by Lender again becomes available, is obtained, and I,ender requires separately designated payments toward the premiunm tbr Mortgage Insurance. 11' Lender required Mortgage Insurance as a condition of rnaking the Loan and Borrower was required to make separately designated payments toward the premiunts R)r Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for lvlortgage insurance ends in accordance with any wrinen agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at tile ,-ate provided in tile Note. Mortgage Insurance reimburses Lender (or any cntily that purchases tile Nole) for certain losses it may incur it' Borrower does not repay tile Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter i,ltO agreements with other parties that share or modify their risk, or reduce losses. These agreements are oil terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreemenls may require the mortgage insurer to make paymems using any source of fimds that the mortgage i~surer may have awlilable (which may inclnde fimds obtained fi-om Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser ol: the Note, another insurer, any reinsurer, any [)tiler entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive fi-om (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange Ibr sharing or modifying the mortgage insurer's risk, or reducing losses. It' such agreement provides that an affiliate of Lender takes a share of tile insurer's risk m exchange lbr a share of the premiunls paid to the insurer, tile arrangement is etlon termed "captive reinsnrance." Further: (al Any such agreements will not affect the amounts that Borrower has agreed to pay for Morlgage Insurance, or any other terms of tile l,oan. Such agreements will not increuse the amount Borrower will owe for Mortgage lnsurunce, and they will not entitle Borrower to any reft,nd. Form 3051 1101 (b) Any such agreements will nol affect the rights Borrower has - il' any - with respect to lhe Morlgage Insurance m~der lhe tlomeowners Pro~ecdon Ac[ of 1998 or any olher law. These rights may include ~he riehl ~o receive certain disclosures, io request ami ohlain cancellation of Mortgage lnsurauce, Io halve lhe Mortgage Insurance ~erminaled automatically, ami/ur io receive reftmd o[ any Mortgage Insurance premiums that were unearned at the time of such cancellation or tcrminati~m. I1. Assignmenl of Miscelhmeous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned m and shall be paid [o Lender. if thc Property is damaged, such Miscellaneous Proceeds shall be applied to rcsloralion or repair of tl~e Property, il" the restoration or repair is economically feasible and Lender's security is not lesseued. l)uring such repair and resloration period, Lender shall have tl~e right to hold such Miscellaneous Proceeds tmtil Lender has had an opporlulfity to inspect such Property [o ensure thc work has been completed to l.emlcr's satisfitcfion, provided Ihat such inspection shall be undertaken promptly. Lender may pay for repairs and restoration in a single disbursement or in a series of progress payments as thc work is completed. Unless an agreement is made i~ writing or Applicable kaw requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any inlet'est or earnings on stroh Miscellaneous Proceeds. If the restoration or repair is nol economically feasible or l.cnder's security would be lessened, tl~e Miscellaneous Proceeds shall be applied to lhe stuns secured by this Security lnslrumcnt, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in die order provided lbr in Section 2. In thc event of a $otal taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sm'ns secured by this Security Instrument, whether or not then due, wilh the excess, if any, paid to Borrower. In the even[ of a partial [aking, destruction, or loss m rathe of the Property in which the fifir market value of d~e Property immediately betBre the partial taking, destruction, or loss in value is equal to or greater d~an the amount of the stuns secured by this Security instrument immediately before il~e partial taking, deslrucdon, or loss in value, unless Borrower and Leuder otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the an~ount o1: Il're Miscellaneous Proceeds muhiplicct by the lbllowing fi'action: (a) tl~e total amotm[ of the sums secured immediately before lhe partial taking, destruction, or loss in value divided by (b) the fair market value of tl~e Property immedialely belbre the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of rl~e Property m which tl~e fair market value of the Property immediately bel~re lite partial taking, destruction, or loss in wduc is less than the amount of the sums secured iInmediately bclBre the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied [o the sums secured by this Security Inshmnent whether or not the sums are then due. If thc Properly is abandoned by Borrower, or if, after nolice by Lender to Borrower ihat the Opposing Party (as defined in the next sentence) oft~rs to make an award [o settle a claim for damages, Borrower thils to respond to kender within 30 clays aflcr the date the no[ice is given, kcnder is amhorized Io collect and apply thc Miscellaneous Proceeds either to rc'storadon or repair of Ihe Property or lo the sums secured by this Security lnslrument, whether or not then due. "Opposing Parly" means thc third party lhal owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard ~o Miscellaneous Proceeds. Borrower shall be in default if any aclion or proceeding, whelhcr civil or criminal, is begun tha{, in I,cnder's judgmcnL could result in t"orl:ei~m-e o~' [he Property or other material impairment of I~cndeFs interest in the Property or rights trader this Security Instrument. Borrower can cure such a det:ault and, if acceleration has occurred, reins[ate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling tl~at, in Lender's judgment, precludes fort~iture of the Property or other material impairment of [.ender's interest in the Property or rights under this Secm ily lnstrnment. The proceeds of any award or claim for damages that are attribu[ablc to Ihe impairment of Lender's in[m'est in the Property arc hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that a~e not al)plied to restoration or repair of d~e Property shall be applied in thc order provided R)r in Section 2. fi(WY) ~oo05) Page 9 of 15 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. E×tension of the time for payment or modification of~ amortization of the sums secured by this Secnrity h'~strument granted by LerMer to Borrower or rely Successor in Interest of Borrower shall not operate to release thc liability of Borrower or any Successors in Interest of Borrower. Lender shall not be reqnired to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time lbr payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors m Interest of Borrower. Any lbrbearance by l;ender in exercising any right or remedy iuchtdiug, without limitation, Lender's acceptance of payments from third persons, entities or Snccessors in Interest of Borrower or in amounts less than the amount then dtle, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint ami Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's ol)ligations and liability shall be joint and several, llowcver, any Borrower who co-signs tl~is Security Instrument but does not execute Ihe Note (a "co-signer"): (a) is co-signing lhis Security Instrument o~_ly to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not persortally obligated to pay the sums secnred by this Security lnsmuncut; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security [nstrtunenl or the Note without the co-.signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assnmes Borrower's obligalions under this Seem'try Instrument in writing, and is approved by l~ender, shall oblain all of Borrower's rigbls and benefits under this Security lustrument. Borrower shall not be released from Bo,-rower's obligations and liability under II, is Security Instrument nnless l.ender agrees to such release in writing. The covenants and agreements of this Security lnstrnment sbalt bind (except as provided iu Section 20) and benefit tile successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services perR)rmed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property aud rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Secnrity Instrumem to charge a specific fcc to Borrower shall not be consm~ed as a prohibition on the charging el' such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. It' the Loau is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits wilt be refunded to Borrower. Lender may choose to make this refuud by reducing tile principal owed trader the Note or by making a direct payment to Borrower. If a rct:und reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided lbr trader the Note). Borrower's acccptaucc of any such refund made by direct payment to Borrower wilt constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security h~strttment must be in writing. Any notice to Borrower in connection with dfis Security Instrument shall be deemed to bare been given to Borrower when mailed by t'irst class mail or when actnally delivered to Borrower's notice address ii' sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall prompdy notify l.ender of Borrower's change of address. If Lender specifies a procedure lk~r reporting Borrower's cha,~ge of address, then Borrower shall only report a change of address througl~ that specified procedure. There may be only one designated notice address under this Security lnstrumeut at any one time. Any notice to l.ender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with lhis Security Instrument shall not be deemed to bare been giveu to Lender until actnally received by Lender. If any notice required by this Security lnstrun~ent is also required under Applicable l.aw, the Applicable Law requirement will satisfy the corresponding requirement under this Security lllStrnl~lellt. Form 3051 1/01 P, 0,.: 16. Governing Law; Sere(ability; Rules of Construction. Tiffs Security lnsn-unlent shall be governed by federal law mid the law of tile jurisdiction m which tile Property is located. All rights and obligations contained in this Secnrity Instrument are subject to m~y reqnirements and limitations of Applicable Law. Applicable Law might expliciIly or implicitly allow the parties to agree by contracl or it nfight be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affkct other provisions of this Security Instrument 'or the Note which can be given effect without tim conflicting provision. As used in this Security l,lstrunlent: (a) words of' tile masculine gender shall mean and include corresponding nenter words or words of tile feininine gender; (b) words in the singnlar shall mean and include tim plural and vice versa; and (c) the word "may" gives sole discrelion without any obligation co take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and el: this Security lnsmnnent. 18. Transfer of the Property or a Beneficial Interest in Borrower. As nsed m tilts Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, btu not limited [o, those beneficial interests transferred in a hond for deed, contract for deed, installment sates contract or escrow agreement, the intent of which is tile transfer of ti(lc by Borrower at a l:ulure date to a purchaser. If all or any part et the Property or any lntcres! in tl~e Property is sold or transferred (or it' Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if st|cb exercise is prohibited by Applicable l~aw. Ii' Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 clays from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security h~strument. If Borrower fails to pay these sums prior to tile expiration of this period, Lender may iuw/ke any remedies permitted by lhis Seem-try Instrument wilhout fl~rther notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration2 If Borrower meets certain condilions, Borrower shall bare the right to have enforcement of this Security lnstrtu¥~ent discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power oF sale contained m this Security Instrument; (b) such other period as Applicable Law might specify R)r the termination of Borrower's right to reinstate; or (c) entry of a judgmeut enforcing this Security Ins(run:enl. Those conditions are that Borrower: (a) pays Lender all sums which d:en would be due under this Security Instalment and the Note as if lie acceleration had occurred; (b) cures any delSlult of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation Ices, and other fees them'red for tile purpose of protecting l..ender's interest in tile Property and rights under this Security hlstrument; and (d) lakes such action as Lender may reasonably require to assure that Lender's interest in tl~e Property and righls under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security lnstrmnent, shall continue unchanged. Lender may require that Borrower pay such reinstatement Sl_llBS lind expenses in one or more of the following forms, as selected by Lender: (a) cash; (l)) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any snch check is drawn upon an institution whose deposits are insured by a l~deral agency, instru|nentality el entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security lnstrurnent and obligations secured hereby shall remain fidty effective as if no acceleration l|ad occurred. However, this right to reinstate shall not apply m tile case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice (il' Grievance. The Note or a partial interest in the Note (together wilh this Security lnstrumen0 can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as (lie "Loan Servicer") that collects Periodic Payments due tinder the Note and this Security Instrument and perlbrrns ()tiler mortgage loan servicing obligations under the Note, this Security Instrun~ent, and Applicable Law. There also might be one or more changes of the Lo~Ln Servicer unrelated to a sale ot: the Note. If there is a change of thc Loan Servicer, Borrower will be given written notice of the change which will state tile name and address of the new Loan Servicer, the address co which payments should be made and any other infi)mlation RESPA Form 305'1 1/01 requires in conneclion wi[Il a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer- other than the purchaser of the Note, the mortgage loan servicing obligations to Bon'ower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are assumed by tile Note purchaser unless otherwise provided by tile Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as eidmr an individual litigant or the member of a class) tt~at arises fi-om the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, nntil such Borrower or Lender has nodfied tile other party (with such notice given in compliance with the ,'equircments of Section 15) of such alleged breach and aftbrded tl~e other party hereto a reasonable period nfter the giving of such notice to take corrective action. If Applicable Law provides a time period which mt,st elapse before certain action can be taken, dial time period will be deemed to be reasonable for puqooses of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and tile notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy tile notice mid opportunity to 'take corrective action provisions of this Section 20. 21. llazardous Substances. As used in this Section 21: (a) "ltazardous Substances" are those subslances defined as toxic or hazardous substances, pollutants, or wastes by IEnvironmental Law and the lbllowing substances: gasoline, kerosene, other fianmaable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or tbrmaldchyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of tile jt, risdiction where tire Property is located that relate to health, safety or environmemal protection; (c) "Environmental Cleanul)" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environn~ental Condilion" means a condition thai can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) ti'mt is in violation of any Environmental 1.aw, (b) which creates ~m Environmental Condition, or (c) which, due to tile presence, use, or release of a }{azardotls Substance, creates a condition that adversely affects the value of tile Property. Tile preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Ilazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property.(including, but riot limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property m~d any ttazardous Sl~bstance or Environmental [.aw of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited lo, any spilling, leakii~g, discharge, release or threat of release of any ltazardous Substance, and (c) any condition caused by the presence, nsc or release of a I-tazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any rernoval or other remediation of any }tazardous Substance affecting the Property is necessary, Borrower shall promptly take alt necessary remedial actions in accordance with Environmental l.aw. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give nolice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in fids ~ecm'ity instrmnent (hut not prior acceleration under Scclion 18 unless Applicable Law provides otherwise). The notice shall specify: (a) ll~e defaull; (b) the aclion required to cm*e li~c default; (c) a date, not less than 30 days from ibc date tile notice is given to Borrower, by which Iht default must bc cured; aild (d) lhat failure to cure the default on or before ll~e date specified in the notice may result in acceleration of ll~e stuns secured hy lhis ~ecurity lnslrument and sale of lhe Property. The notice shall further inform Borrower of right lo reinslale after acceleration and lhe right to bring a court action to assert tl~e non-exislence of a default or any other defense of Borrower to acceleration and sale. if thc dd'ault is not cured on or before the dale specified in file notice, Lender at its oplion may require immediale payment in full of all sums seem'ed by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitled by Applicable lmw. Lender shall be entitled to collect all expenses incurred in pursuing thc remedies provided in this Section 22, including, bul n0l limiled to, reasonable attorneys' feet and cosls of title evidence. Il' Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to tl~e person in possession of tl~e Property, if diffcrcni, in accordance widi Applicable Law. Lender shall give notice of the sale to Borrower in the rammer provided in Section 15. Lender shall pnblish the notice of sale, and tile Property shall be sold in the rammer prescribed by Applicable Law. Lender or its designee may purchase tile Property at any sale. The proceeds of tile sale shall be applied in the following order: (a) to all expenses of tile sale, including, but not limilcd m, reasonable attorneys' fees; (b) to all sums seem'ed by lhis Security h~strumenl; and (c) any excess to tile person nr persons legally entitled lo it. 23. Release. Upon payment of all sums secured by this Security h~strument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fec for releasing riffs Seem'try Instrument, but only if the fee is paid to a third party lbr services rendered and the charging of the fee is permitted under Applicable [.aw. 24. Waivers.' Borrower releases and waives all rights under and hy virtue of the homestead exemption laws of Wyoming. Form 3051 '1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded wi£h it. Wi[nesses: M Brandon Krall (Seat) -Bor~ ower Lindsey R Krall~ (Seal) (Seal) -Borrower -Borrower (Seat) (Seal) -Borrower -Borrower (Seal) (Seat) -llom.)wer -BOliOWCr (~}~6(WY) {ooost DDS WY4 Page Form 3051 1/01 STATE OF WYOMrING, by The foregoing ins[rumcnt was acknowledged before me Ihis :-9.~'~-~' My Commission Expires: (County ss: / Nolar¥ Pubhc (~,~-6 (WY){ooo~1 L'JDS WY4 Page 15 ol I 5 Form 3051 1/01