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HomeMy WebLinkAbout9106120039 ReturnTo: American Home Mortgage Acceptance, 520 Broadhollow Road Melville, NY 11747 II~C . Prepared By: Adriann Watson ]0421 S. Jordan Gateway Blvd. SLlite 650 South Jordan, UT 84095 [Space Above This Line For Recording Data] MORTGAGE MIN 100314000009416511 RECEIVED 8/4/2005 al 4:39 PM RECEIVING # 910612 BOOK: 593 PAGE: 390 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY D E FI NI'FI ONS Words used ill multiple seclions of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 2([ and 21. Certain rules regard, lng tile usage of words nsed in this document are also provkled in Section 16., (A) "Security htslrument" means this document, which is dated July 28, 2005 together with all Riders to this ducument. (B) "Borrower" is JASON R ISAACSON and KIMBERLY A ISAACSON, ItUSBAND AND WIFE AS JOINT TENNANTS Borrower is tile mortgagor nnder this Secnrity Instrnment. (C) "MERS' is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation mat is acting solely as a nominee for Lender and Lender's snccessors and assigns MERS is tl~e mortgagee under this Securily lnslrument, MERS ~s organized and existing under tire laws of Ddaware, attd has an address attd lelephone number of P.O. Box 2026, Flint, MI 485(11-2026, tel. (888) 679-MERS. DOC ~:322591 APPL ~:0000941651 WYOIVlING-Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUIVIENT WITIIMERS I;orm 3051 1/01 VMP MORTGAGP FORMS - (800)521-7291 OBIO61Z ,... u',J3 9i (l)) "Lender" is American florae Mortgage Acceptance, Inc. Lender is a Corporation organized and existing under £he laws of State of New Yo~k Lender's address is 538 Broadhollow Road, Melville, NY 11747 (E) "Note" means tile promissory note signed by Borrower and dated July 28, 2005 Thc Note slates that Borrower owes Lender One tlundred Forty Four- Thousand and N o / 10 0 Dollars (U.S. $ 144,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than August: 1, 2035 (F) "Property" means the property that is described below uuder the heading "Transfer of Rights in tile Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due nnder this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security lnstrumeut that are execuled by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: Adjustable Rate Rider Balloon Rider VA Rider [~] Condomhfinm Rider [~ Planned Unit Development Rider [~ Biweekly Payment Rider ~econd Home Rider 1-4 Family Rider Other(s) [specify] (I) "Applicable Law" means all controllh~g applicable federal, state and local statutes, regulations, ordiaauces and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Associatinn Dues, Fees, and Assessmenls' means all clues, lees, assesslneats and other ctlarges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated cleariughouse transfers. (L) "Escrow ICe,ns" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds pakl by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or demruction of, tile Property; (ii) condenmation or other taking of all or rely part of the Property; (i/i) conveyance in lieu of condemnatiou; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Pay,nent" means the regularly schedukd amount due for (i) principal and interest under the Note, plus (ii) any amounts under Sectkm 3 of this Security Instrument. (P) "RESPA" mea,s the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implemeuting 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 regmlation that governs tile same subject matter. As need ill this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federully related mortgage loan" even if tile 1.oan does not qualil:y as a "federally related mortgage loan" ufidcr RESPA. DOC # :322592 APPL ~/:0000941651 ~-6A(W¥) (00o5) Form 3051 1/01 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether 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 sccnres to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of tile Nole; and (ii) the performance of Borrower's covenants and agreements under this Security lnstrnment and the Note. For this pnrpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's snccessors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the County of Lincoln : [Type of Recording Jurisdiction] INa'me of Recording Jurisdiction} SEE LEGAL DESCRIPTION ATTACHED ttERETO AND MADE A PART ttEREOF ParccllDNnmber: 1232183020202100 170 ADAMS STREET Alton ("Property Address"): which currently has the address of [Street} [Ci~y} , Wyoming 8 3 ]. 10 [zip code] #:322593 TOGETHER WITH all the improvements now or hereafter erected on the properly, and all easements, appurtenances, and fL, dnres now or hereafter a part of tile property. All replacements and additions shall also bcl covered by this Security Inslrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower tmderstaads and agrees that MERS holds only leg~d title ~o the interests granted bY Borrower in this Secnrity Iustrument, bnt, if necessary to comply with law or cnstom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, inclnding, but not limited to, the right to foreclose and sell the Property; and to take any actio~ required of Lender including, but not limited to, releasing and canceling this Security instrument. BORROWER COVENANTS that Borrower is lawfully seised of tile estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any eacnmbrances of record. Tills SECURITY INSTRUMENT combines tmiform covenants for national nsc and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. Cage 3 of ~5 / - ~ Form 3051 1/01 :00393 UNIFORM COVENANTS. Borrower nnd Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, anti Late Charges. Borrower shall pay when clue the principal of, and interest on, thc debt evidenced by the Note and any prepayment charges and late charges cltle under the Note. Borrower shall als{> pay ftmds for 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 instrnment received by l.ender as payment under tile Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of tile following forms, as selected by Lender: Ca) cash; Cb) money order; Cc) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits ,ire insured by a federal agency, instrumentality, or entity; or Cd) Electronic Fnnds Transfer. Payments are deemed received by Lender when received al the location desig~mted in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Leader may return any payment or partial payment if tile payment or partial payments are insufficient to bring tim Loan current. Lender may accept any payment or partial payment insufficienl to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but l.ender is not obligated to apply such payments at the time such paynmnts are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplicd funds. Lender may hold such unapplied funds nntil Borrower makes payment to bring the Lmm current. If Borrower does not do so withiu a reasonable period of time, Lender shall either apply such funds or return them Io Borrower. If not applied earlier, such funds will be applied to thc outstanding priucipal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or iii the fulure against Lender shall relieve Borrowei from making payments due under the Note and this Security ]nstrnment or performing the covenants and agreements secured by this Security Instrument. 2. Application of Paymenls or Proceeds. Except its otherwise described iii this Section 2, all payments accepted and applied by Lender shall 10c applied ill the following order of priority: Ca) interest due under the Note; Cb) principal due under the Note; Cc) amounts due under Section 3. Such payrnents shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounls shall be applied first m late charges, second to any other amounts clue under this Security Instrument, and then to reduce the principal balance of thc Note. 11: Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, thc payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to tile repayment of the Periodic I'ayments if, and to the extent that, each payment can be paid itt hill. 'Fo thc extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds ~o principal due trader the Nole shall not extend or postpone the due date, or change tile amount, of the Periodic Payments. 3. Funds for Escrow lle~ns. Borrower shall [)ay to Lender on the clay Periodic Payments are due t,nder the Note, tmtil the Note is paid in hill, a sum (tim "Funds") to provide for paymem of amounts due R/r: Ca) taxes and assessments and other items which can attain priority over this Security lnslrument as a lien or encumbrance oil the Property; Cb) leasehold payments or ground rents on the Property, if any; Cc) premiums for any anti all insurance required by Lender under Section 5; and Cd) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item_ Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds l:or Escrow Items unless Lender waives Borrower's obligation to pay the Funds i-or any tlr all Escrow Items. Lender may waive Borrower's obligation lo pay io Lender Funds for any or all Escrow Items al any time. Any sucn waiver may only be in writing, hi Lhe event of suct~ waiver, Borrower shall pay directly, wlimi anti where payable, the aIrlOklIILS due for ally Escrow Items for which payment el FX)C ~:322594 APPL ~ :0000941651 ~(O-6A(W¥). (tv. os) r.ge 4 o~ 15 l;orm 3051 1/01 00394 Fnnds has been waived by Lender and, if Lender requires, shall fllraish 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 to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, p,rsuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender ,nay exercise its rights under Section 9 and pay such amonnt and Borrower shall then be obligated under Sect/on 9 to repay to Lender any such amount. Lender may revoke the waiver as to ally or all Escrow Items at any time by a notice given in accordance with Section t5 and, upon such revocation, Borrower shall pay to Lender all Funds, and itt such amounts, that are the,! required tinder Ibis Se(tin0 3. Lender may, at any time, collecl and hold Funds in all amount (a) sufficient to permit Lender Io apply the Funds ,qt the time specified nnder RESPA, and (bi ,rot to exceed the maximum amount a lender carl require under RESPA. Lender shall estimate the amount of Funds due on tile basis of current data and reasonable estimates of expenditures of future Escrow hems or otherwise in accordance with Applicable Law. The Ennds shall be held in ;in institution whose dcposils are insured by a federal agency, inslrumentality, or entity (including Lender, if Lender is all institution whose deposits arc so insured) or in ally Federal tIome Loan Bank. Lender shall apply the Funds to pay the Escrow hems no later than the time specified under RESPA. Lender shall not charge Borrower for hokling and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, nnless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless att agreement is made in writing or Applicable Law requires inlerest to be pakl oa the Fnnds, Lender shall not be required to pay Borrower any interest or earnings on tire Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give 1o Borrower, without charge, alt annual accounling of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall acconnt to Borrower for the excess ftmds in accordance with RESPA. If ihere is a shortage of Fnnds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay ltl Lender the afnount necessary to make up the shortage in accordance with RESPA, but in no more lhan 12 monlhly payments. If Ihere is a deficiency of Fnnds held in escrow, as defined under Pd~SPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency ill accordance with RESPA, but ia no more than 12 monthly payments. Upon payment in full of all sums sec4nred by this Sects[try lnstrnment, Lender shall promplly re fired lo Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay. all taxes, assessments, charges, fines, and impositkms attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground renls on l. he Property, if any, and Community Association Dues, Fees, and Assessments, if auy. To the extent that these ilemS are Escrow it(ms, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security lnstrnment unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien ill a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (bi contests the lien in good faith by, or defends against enforcement of lite lien in, legal proceedings which in Lender's opinion operate to prevent tile enforcement of the lien while those proceedings are pea,ding, but only until such proceedings are concluded; or (c) secures from lite hokler of lhe lira an agreemenl salisfactory to Lender subordinaling the lien to this Security lnstrulnent. If Lender dc[ermines thai. any part of tile Property is subject to a lien which call at[alu prioriiy over this Security Instrument, Lender olay give Borrower a notice identifying the lien. Within 10 DOC , :322595 APPL ~:0000941651 Pag~ 3 of 15 3051 1/01 '00395 days of the date on which that notice is given, Borrower shall satisfy tim lien or take 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 verification and/or reporting service used by Lender in connection with this Loan. 5. Prnperty lnsur,'mce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, I)ut not limited to, earthquakes and t'loods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) ami for tile periods that Lender requires. What Lender reqttires pursuant to the preceding sentences can change du,'ing thc term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection wkh this Loan, either: (a) a one-time charge IBr flood Zone determination, certification and tracking services; or (b) a one4ime charge for flood zone delermination and certification services and subsequent charges each time remappings or similar changes occur whicl~ reasonably might affect such determinalion 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 from an objection by Borrower. 1[ Borrower fails to maintaiu any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amen/it el' coverage. Therel:ore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the conlents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage st) obtained might significantly exceed thc cost of insurance that Borrower could have obtained. Any amounts dislmrsed by Lender nnder this Section 5 shall become additional debt of Borrower secured by this Security lnstrt,ment. These amounts shall b. ear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee ami/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premimns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall nacne Lender as mortgagee and/or as an additional loss payee. la tile event of loss, Borrower shall give prompt notice to the insurance carrier ami Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair o1: tim Property, if tile restoration or repair is economically feasible ami Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments tls the work is completed. Unless an agreement is made in writing or Applicable Law requires interest 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 parties, retained by Borrower shall not be paid Out Of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible o,- Lender's security would be lessened, the insurance proceeds shall be applied to [X)C ,~:322596 A?PL ~:0000941651 ,,mia,s:¢~__ (~-6A(WY) (ooos) Page 6 of ~5 m'm 31151 1/01 00.396 lhe sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in tim order provided l~.)r in Section 2. If Borrower abandons the Property, Lender may file, negotiate anti settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires tile Property under Section 22 or otherwise, Borrower hereb'y assigns to Lender (at Borrower's rights to any insurauce proceeds iii an amount not to exceed the amounts unpaid under the Nole or ihis Security lnstrumenl, and (bt any olher of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar its such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note nr Ihis Security lnstrt,ment, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, anti use the Property as Borrower's principal residence wilhin 60 days after the execution of this Secnrily Instrument attd shall continue to occupy thc Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Prolection of lhe Property; inspections. Borrower shall ,lot destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on thc Property. Wbedler or not Borrower is residing in the Property, Borrower shall maintain tile Property in order to prevent the Property from deteriorating or decreasing m wdne title to its condition. Unless il is determined pursuant to Section 5 that repair or restoration is not economically feasible', Borrower shall pro,nptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, lhe Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds f'or such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments its the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Bm'rower is not relieved of Borrower's obligation l'or tile completion of such repair or restoration. Lender 'or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Leader may inspect the interior of the improvements on tile Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. BmTowe,-'s Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurale information or staiements to Lender (or failed to provkle Lender with material information) itl coflnection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Proleclion of Lender's Inle,'es~ in the Property and Righls Under this Security Instrument. If (at Borrower fails to perform the covenants anti agreements contained in this Security Instrument, (bt there is a legal proceeding mat might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcemenl of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (ct Borrower has abandoned me Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interesl in the Property and rights trader this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing Ihe Property Lender's actions can include, but arc not limited [o: (at paying any sums secured by a lien which has priority over Ibis Security lnstrt,mcnt; (bt appearing itl court; and (ct paying reasonable DOC ~ :322597 APPL .:0000941651 1(~O)-6A(~/~) (00053 Page 7 of ~S Fm'm 3051 1/01 ;' 0 0 3 9 '? attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankrnptcy proceeding. Securing the Property includes, but is not limited to, entering tile Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminale building or other code violations or dangerous conditions, and have utilities turned on or off. Although iLender may take action nnder this Section 9, Lender does not have to do so anti is not under any dilly or obligation to do so. It is agreed lhat Lender incm's ilo liability for not taking any or all actions authorized under this Section 9. Any amounts disbarsed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amonnts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If dlis Security Instrument is on a leasehold, Borrower shall comply with all tile provisions of the lease. If Borrower acquires fee title to the Property, the leasehokl and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Morlg:lge lnsm-nnce. If Lender required Mortgag= Insurance as a condition of making the [,can, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for ally reason, lhe Mortgage Insurance coverage required by Lender ceases to be available from tile mortgage insurer that previously provided such insurance and Borrower was required to make separately designaled payments toward tile premiums for Mortgage Insurance, Borrower shall pay tile premiums required to obtain coverage substantially equivalent to tile Mortgage Insurance previously in effect, at a cost substantially equivalent the cost Io Borrower of Ihe Mortgage insurance previously in effect, from an alternam mortgage last,ret selected by Lender. Il' substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amonnt of the separately designated payments that were due when the insurance coverage ceased to be ia effect. Lender will accept, use and retain these payments as a non-refimdable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that tile Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings oil such loss reserve. Lender can no longer require loss reserve payments if Mortgage lnsuranc~ coverage (in thc amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward tile premiums lbr Mortgage Insurance. ]f Lender required Mortgage Insurance as a condition of making the l..oan and Borrower was required to make separately designated payments toward the prenliurns for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refnndable loss reserve, until Lender's re(tuirement for Mortgage Insurance ends in accordance with ally written agreement between Borrower and Lender providing for st, ch termination or until termination is required by Applicalde Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at tile rate provided ill tile Note. Mortgage Insurance reimburses Lender (or any entity that purchases thc Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk 6n all such insurance in force from time to time, and may enter imo agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and tile other party tm' parties) to these agreements. These agreements may require the ?nortgage insurer to make payments using any source of fnnds that the mortgage insurer may have available (which may include fluids obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mm'tgage Insurance, in exchange for sharing or modifying tile mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, tile arrangement is often termed "captive reinsurance.' Further: (a) Any such agreements will not affect the amounts that Borrower has agreed lo pay Mortguge Insurance, or any olher terms of tile Loan. Such ag,'eements will not increase tile amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower lo any rebind. DOC if:322598 APPL ~:0000941651 /~ ~.~ ~a~-gA(w¥) (00o5) Page 8 o~ 15 Form 3051 1/01 0O398 (b) Any such ;igreements will not affect the rights Borrower has - if any - with respect to lire Mortgage Insurance under the ][to~neowners Protection Act of 1998 or tiny other la~v. These rights may include the righl 1o receive cerlain disclosu,-es, to requesl and oblain cnncellation of the Mortgage Insurance, to have the Morllgage Insurance terminated aulomatically, and/or to receive a refund of ally Mortgage Insurance premituns that were unearned :It tile time of such cancellation or termimtliun. 11. Assignment of Miscellaneous Prnceeds; Forfeilure. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. It! the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, il: the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscelhmeot,s Proceeds t,util Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender rnay [)ay for the repairs and restoration in a single disbursemeut or in a series of progress payments as the work is completed. Uuless an agreement is made in writing or Applicable ]_.aw requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Leuder's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if auy, paid to Borrower. Such Miscellal)eous Proceeds shall be applied in the order provided for ia Secdoa 2. la the eveut of a total taking, destruction, or loss in value of the Property, the Miscellaueous Proceeds shall be applied to the sums secured by this Security instrument, whether or not then due, with the excess, il: any, paid to Borrower. Ia the event of a partial taking, destruction, or loss in value of the Property in which the fair market wdue of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater Ihan the amolmt of the sums secured by this Security lnslrument immediately before Ihe partial Inking, destnlction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amot,nt of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of tile st,ms secured immediately before tile partial taking, destruction, or loss iu value divided by (b) the fair market value of the Property ifnmediately bek)re the partial taking, destructiou, or loss in vahte. Auy balan'ce shall be paid to Borrower. In the event of a partial taking, destruction, or loss ia value of the Property in which the fair market value of the Property immediately before lhe partial taking, destruction, or loss ill value is less than the amonnt of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Leader otherwise agree ia writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not tile sums are then title. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that thc Opposiug Party (as defined in the next sentence) ofl~rs to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to (x~llect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the stulls secured by this Security hlstrument, whether or not then due. "Opposing Party" means tile third party that owes Borrower Miscellaneous Proceeds or Ihe party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's j,idgrnent, could result iii forfeiture of the Property or other material impairment ol Lender's interest iii the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the fiction or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairrneut of Lender's interest in tile Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impaimmnt of Lender's imerest iii Ihe Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are riot applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. [~C ~:322599 (~®-6A(W Y) (0o0s) APPL i~ :0000941651 Form 3(151 I/ill ,-00399 12. Bo,'rower Nol Released; Forl)e:trance By Lender Not ,'l Wniver. Extension of tile time for payamnt or modification of amortization of the sums secured by this Security Instrnn~ent granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors h~ Imerest of Borrower. Lender shall not be reqnired to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for 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 in Inlerest of Borrower. Any forbearance by Lender in exercising any right or remedy including, withonl limilation, Lender's acceptance of payments from II~irrl persons, entities or Successors in Interest of Borrower or in amounts less than the amount then clue, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joinl and Several Liability; Co-signers; Soccesso,'s :md Assigns Bound. Borrower covenants and agrees that Borrower's obligatkms and liability shall be joint and several. However, any Borrower who co-signs Ibis Secnrity Instrument but does not execute tile Note (a "cmsigner"): (a) is co-signing this Secnrity Instrument only to mortgage, grant and convey tile co-signer's interest in the Property under the terms of this Security lnstrnment; (b) is not personally obligated to pay the sums secured by this Sccnrity lnstrumeut; and (c) agrees that Lender and any other Borrower can agree to extend, modify, foil)ear or make any accommodations with regard to the terms of this Security Inslrumenl cji; the Note withmil the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assnmes Borrower's obligations under this Security lnstrnment ill writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Secnrity Instrument. Borrower shall not be released from Borrower's obligations and liability nnder this Security Instrument nnless Lender agrees to such release iii writing. Thc covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed ill connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, inclnding, bat not limited to, attorneys' fees, properly inspectkm and valuation fees. In regard to any other fees, the absence of express authority in ihis Secm'ity Instrument to charge ~t specific fcc to Borrower shall nor be constrned as a prohibition on the charging of such fee. Lender may not charge f~es that are expressly prohibited by this Security Inst~nmenl or by Applicable Law. If the Loan 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 coanectio,~ with the Loarz exceed tile permitted limits, then: (a) any such loan charge shall be rednced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums a,lready collected from Borrower which exceeded permitted limits will be re£unded to Borrower. Lender may choose to make this refund by reducing ~t~e principal owed under the Note or by ~naking a direct payment to Borrower. If a refund rcdtices principal, thc rcductkm will be treated as a partial prepayment without any prepayment charge (whmher or not, a prepayment charge is provkled for tinder the Note). Borrower's acceptance of any such refnnd made by direct payment to Borrower will constitnte a waiver of any right of action Borrower might have arising out of such overcharge. IS. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be iii writing. Any m~tice to Borrower in connectkm with this Security Instrnment shall be deemed to have been given to Borrower when mailed by first class mai] or when actually delivered to Borrower's notice address if 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 nnless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Leader specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice, address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first c}ass mail to Lender's address stated herein nnless Lender has designated another address by notice to Borrower. Any notice iii connection with this Secnrity Instrument shall not l')e deemed to have been given to Lender until actually received by Lender. if any notice required by this Security Instrument is also reqnired under Applicable Law, the Applicable Law requirement will satisfy cu ~t r e it .,,q/{r~ i~ (~6A(WY) (COOS) l'~tte ,tO o.f ~5 Form 3051 t/0t :"00400 16. Governing Law; Severability; Rules nf Consh-t, ction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which tile Property is located. All rights and oNigatioas conlained in this Security Instrument are subject to any requirements and limitations of Applicable l~aw. Applicable Law might explicitly or implicitly alk/w tile parties to agree by contract or it might be sileut, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of Ibis Security lnstrumertt or the Note conflicts with Applicable Law, such conflict shall not afl,ct other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: Ca) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; Cb) words in tile singular shall mean and include the plural and vice versa; and Cc) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrowcr shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property m' a Benelicial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, inclnding, but not limited Itl, those beneficial iuterests transferred in a bond fbr deed, contract for deed, inslalhnent sales contracl or escrow agreement, the intent of which is the transfer of title by Borrower at a flltnre date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interesl 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 ]nstrumcut. }lowevcr, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If l.ender exercises this option, Lender shall give Borrower notice of acceleration. Tile 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 Instrument. If Borrower fails m pay these sums prior to th~ expiration of this period, Lendur may invoke any [emedies permitted by this Security lnslrt,menl without further notice or dernand on Borrower. 19. Burrower's Right Io Reinstate Atler Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enlbrcement of this Security Instrument discontinued at tiny time prior to the earliest of: Ca) five days belbre sale of the Property pursuant to any power of sale contained in this Security lustrument; Cb) such other period as Applicable Law might specify for tile termination of Borrower's right to reinstate; or Cc) entry of a judgment enlorcing this Security lnslrument. Those condilions are that Borrower: Ca) pays Lender all sums which then would be due under this Security lnstrumenl and the Note as il' no acceleration had occurred; Cb) cures any default of any other covenants or agreements; Cc) pays all expenses incurred itl enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for tile purpose of protecting Lender's inlerest in the Property and rights under this Security Instrument; and Cd) takes such action as Lender may reasonably require to assure that Lender's interest in the Property aud rights under this Security Instrument, and Borrower's obligation to pay tile sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinslatement sums and expenses in one or more of tile following fi)cms, as selected by Lender: Ca) cash; Cb) money order; Cc) 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 federal agency, i,)strumentality or entity; or Cd) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fidly effective as if no acceleratinn had occurred. However, this right to reinstate shall not apply in the case of acceleration umler Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under tile Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer nnrelated to a sale of the Note. If there is a change of tile 1.eau Servicer, Borrower will be given written tmtice of the change which will slate the name and address of the new Loan Servicer, the address to which paymeuts should be made and any other information RESPA requires in connection with a IX)(: #:322601 APPL 41:00009q1651 ~mi~,,, /r-~b5 (~c~-6A(WY) (O00S) Page Il Of 1.5 ~- Form 3051 l/Ol '. O040JL notice of transl~r of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, tile mortgage loan servicing obligations to Borrower will remain with tile l_oan Servicer or be transferred to a snccessor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note pnrchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individnal litigant or the member of a class) that arises from the other party's actions pnrsuaat to this Security Instrnment or that alleges that the olher party has breached any provision of, or any dnty owed by reason of, this Secnrity Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with lhe requirements of Section 15) of snch alleged breach and alTo[deal the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for pnrposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pnrsuant to Sect/on 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous snbstanees, pollntants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petrolenm products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jnrisdictioa where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and rd) an "Environmental Condition" means a condition that can catlse, contribute to, or otherwise trigger an Environmental Cleant,p. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Snbstances, or threaten to release any Hazardous Snbstances, on or in the Property. Borrower shall not do, nor allow anyone else to cio, anything affecting tile Property (a) that is ill violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, dne to the presence, nsc, or release of a I-lazardons Substance, creates a condition that adversely affects the value of the Properly. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small qnantities of Hazardous Snbstances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, bul not limited to, hazardons substances in consnmer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsnit or other action by any governmental or regnlatory agency or private party involving tile Property and any Hazardons Substance or Environmental Law of which Borrower has ac[hal knowledge, (b) any Environmental Condition, inclnding bnt not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition cansed by tile presence, use or release of a ll'azardous Subslance which adversely affects tile value of the Property. If Borrower learns, or is notified by any governmental or regulatory anthority, or any private party, that any removal or other remediation of any Hazardons Substance affecting the Property is necessary, Borrower shall promplly take all necessary ?emedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. DOC #:322602 APPL #:0000941651 Page 12 of 15 l?m'm 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender h~rther covenant and agree as follows: 22. Acceler.',tion; Remedies. Lender shall give notice to Borrower prior to acceleration lbllowing Borrower's breach of any covenant or agreemenl in this Secnrily lnslrnntenl (but not prior to acceler:dion trader Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) lhe defimlt; (b) the action required to cure the default; (c) a dale, nol less Ihan 30 d;tys from the date the notice is given to Borrower, by which the defanll must be cured; and (d) lhal failnre lo cure the defimll on or befiwe the date specified in ihe notice may result in ncceleralion of lite sums secnred hy this Secnrity lnsh'umenl and snle of the Properly. The notice shall further infm'm Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a def.'mll or any olher defense of Borrower to acceleration and sale. If the delhult is nol cured on or hefiwe lhe dale specified ill the notice, Lender at its option may require immediate payment in tull of all sums secured by this Security lnsh'ument without furlher demand and nmy invoke the power of sale and any other remedies permitled by Applicable Law. Lender shall be enlitled lo collect all expenses incurred in lmrsuing lhe remedies provided in this Section 22, including, but not limited to, reason:rifle attorneys · lees and cosls of lille evidence. Ir Lender invokes the power of sale, Lender shall give notice of intent lo foreclose to Borrower ~,~l¢l to the person in possession of the Properly, il' different, itl accordnnce with Applicable Law. Lender shall give notice of tile s:de to Borrower in the manner provided iq Section 15. Lender sh:dl puhlish ll~e notice o~' sale, and the Property shall be sold in the m,'mne,- prescribed by Applict, ble Law. Lende,- or its designee may pm'chase the Property .at any sale. The proceeds of lhe sale shall be applied in lhc follnwing order: (a) to all expenses of tile sale, including, but not limited to, reasonahle attorneys' rees; (b) to all sums secured by this Secnrity Instrument; and (c) any excess to Ihe person or persons legally enlitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Secnrity h~strument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted nnder Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homcslead exemption laws of Wyoming. 3051 1/01 :'00403 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covermuts contained in tMs Security Instrument and in any Rider executed by Borrower and recorded with it. Wihlesses: (Seal) ACSON -Borrowe~ (Seal) (Seal) -JBorrower -Bollowel (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrowel -Borrower DOC ~:322604 APPL ~:0000941651 --.,,.-'-(f'~6A(WY) (clx)s) ~'a~,e 14 of 15 Form 3051 1/01 .0 404 STATE OF WYOMING, LINCOLN The foregoing instrument was acknowledged before me this by JASON R ISAACSON and KIMBERLY 3. ISAACSON July 28, 2005 County ss: My Commission Expires: Nolary Public DOC #:322605 (~-6A(WY) (0oos) APPL ~:00009~1651 Page 15 of 15 Form 3051 1/01 LEGAL DESCRIPTION 00405 Lot 6 of Schwab Addition to the Town of Aflon, Lincoln County, Wyoming as described on the official plat thereof. ADJUSTABLE RATE RIDER (LIBOR One-Year Index (As Putflished In The Widl .~'lreel Journal) - Rale Caps) Tills AI)JUSTABLE RATE P. IDER is made this 28t:h day of J'uly, 2005 and is iucorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Tnist, or Security Deed (the "Security Instrument") of tim same date giveu by the uudersigned (tl~e "Borrower") to ~ccure Bon'ower's Adjushd)le Rate Note (the "Note") to American Home MorEgage Acceptance, IDC . (Ibc "Lender") of the same date and covering the properly described ia the Security Instrument and located at: 170 ADAMS STREET, Alton, WY 831]_0 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND 'FILE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT TIlE BORROWER'S INTEREST IOkTE CAN CHANGE AT ANY ()NE TIME AND TIlE MAXIMUM RATE TIlE BORROWER MUST PAY. ADI)ITIONAI.~ COVENANTS. In addition to the covenants and agreements made in the Sect|rity Insmtment, Borrower and Lender further covenant and agree as follows: A. INTEREST ILA'I'E AND MONTHLY PAYMENT CIIANGES The Note provides for an initial interest rate of changes in lhe interest rate and the monlhly payments as follov,,s: 5. 750 %. The Note provides for 4. INTEREST RATE AND MONTHLY PAYM EN'F CIIANGES CA) Change Dates The interest rate 1 will pay may change on the first day of August, 2010 , and on that day every 12th month thereafter. Each date on which my interest rate could change is called a "Change Date." DOC #:331931 APPL #:0000941651 MULTISTATE AI)JUSTABLE IL, k'I'E I>dDER -WSJ One-Year LIBOR -Single Family- Fannie Mae UN I I"ORM IN$'I'R UMENT UM31 0109 ,-. 00407 (B) The Index Beginning wilh the first Change Date, my interest rale will be based on an Index. The "Index" is Iht average of interbank offered rates for one-year U.S. dollar-denominated deposits iii thc London market ("LIBOR"), as published in The Wall Street .]ot~rnal. The most recent Index figure available as of the date 45 days before each Change Date is called the "Cnrrent Index." If the ]ndex is ilo longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calcuhtlinn of Changes Before each Change Date, the Note Hokler will calculate my new interest rate by adding Two and One Quarter percentage points ( 2.250 %) to the Current Index. The Note Holder will then round the result of this addition lo the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amotmt will be my new interest rate umil the next Change Date. The Note tlolder will then determine tile amount of tile monthly payment Ihat would be sufficient to repay the tmpaid principal that I am expected to owe at the Change Date in full on the malnrity date at my new interest rate itl substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (B) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 10.750 %orlesstnan 2. 250 %. Thereafter, my interest rate will never bc increased or decreased on any single Change Date by ntore titan two percentage points lrom tile ram o£ interesl I have been paying for the preceding 12 months. My interest rate will never be greater than 10. 750 %. (E) Effective Dale of Changes My new interest rate will become effective on each Change Date 1 will pay the amount of [ny new monthly paymem beginning on the first monthly ?aymem date after the Cilange Date tmtil the amount ct my monlhly payment changes again. DOC ~:331932 APPL ~:000094t651 Initials: ~)-166R (0109) Page 2 of 4 Fro'nj 31896/I)1 (F) Notice of Changes The Nole Holder will deliver or mail lo me a notice of any changes in my inlerest rate and tile amount of my monthly payment before the effective date oF any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question 1 may have regarding the notice. B. TRANSFER OF TIlE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrurnent is amended to read as follows: Transl'er o~' the Properly or It Benelicial Interest in Borrower. As used in this Section 18, "Iuterest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those benclicial interests transferred iii a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of tile Property or any Interest in thc Property is sold or transl~rred (or if Borrower is not a natural person and a beneficial interest in Borrower is sokl or transferred) without l_.ender'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 such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evahmte the intended trausferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Leader. 'Fo the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's coosent to the loan assnmptioa. Lender may also require the transferee to sign an assumplion agreement that is acceptaMe to Lender and that obligates tile transferee to keep all the promises and agreements made itl the Note and h'l this Security Instrument. Borrower will continue to be obligated under the Note and this Security lnstrnmcnt unless Lender re]eases Borrower in writing. If Lender exercises tile option to require immediate payment in full, [,ender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the nolice is given in accordance with Section 15 within which Borrower most pay all sums scented by this Secarity Iostrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Seem:try lnstrnment w/thom fq_trther notice or demand on Borrower. DOC ~:331933 APPL ~/:000094t651 hfifials: (~--166R (0109) Page 3 of Fm'm 3189 fi/Ill BY SIGNING BELOW, Borrower accepls and agrees to the terms and covenants contained in this Adjustable Rale Rider. -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower - -Borrower (Seal) (Seal) -Borrower -Borrowel DOC ~:331934 APPL #:0000941651 Page 4 ol 4 Form 3189 6/01