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After Recording Return To:
RECEIVED 9/27/2005 at 3:52 PM
RECEIVING # 912261
BOOK: 599 PAGE: 268
JEANNE WAGNER
LINCOLN COUNTY CLERK. KEMMERER. WY
FIRST HORIZON HOME LOAN CORPORATION
1555 W. WALNUT HILL LANE, SUITE 200
IRVING, TEXAS 75038
POST CLOSING MAIL CENTER 6708
[Space Above This Line :For Recording Data]
Loan Number 0055532485
MERS Number 100085200555324856
MORTGAGE
DEFINITIONS
Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20
and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16.
(A) "Security Instrument" means this document, which is dared SEPTEMBER 23, 2005, together with all Riders to this
document.
(B) "Borrower" is THOMAS A. BARBUTO A MARRIED MAN and VALENTINA P. OLIVEIRA, IDS WIFE. Borrower
is the mortgagor under this Security Instrument.
(C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a
nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is
organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI
48501-2026, tel. (888) 679-MERS.
(D) "Lender" is FIRST HORIZON HOME LOAN CORPORATION. Lender is a CORPORATION organized and existing
under the laws of THE STATE OF KANSAS. Lender's address is 4000 HORIZON WAY, IRVING, TEXAS 75063.
(E) "Note" means the promissory note signed by Borrower and dated SEPTEMBER 23,2005. The Note states that Borrower
owes Lender THREE HUNDRED SIXTEEN THOUSAND EIGHT HUNDRED AND 00/100ths Dollars (U.S.$316,800.00)
plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than
OCTOBER 1, 2035.
(F) "Property" means the property that is described below under the heading "Transfer of Rights in the 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 under this Security Instrument, plus interest. I
(II) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be
executed by Borrower [check box as applicable]:
IX! Adjustable Rate Rider 0 Condominium Rider !XI Second Home Rider
o Balloon Rider o Planned Unit Development Rider OOther(s) [specify]
01-4 Family Rider o Biweekly Payment Rider
WYOMING--Single Family--Fannie MaelFreddie Mac UNIFORM INSTRUMENT
Form 3051 1/01 (page 1 of 11 pages)
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(i) expenses incurred by Lender on behalf of Borrower in the event of Borrower's failure to perform
a covenant or obligation relating to maintaining the Property or preserving its value and
protecting Lender's lien under this Security Instrument that would result in an event of default
under the terms of this Security In~trument;
(ii) expenses incurred by Lender in the event of a foreclosure, and
(iii) interest and late payment charges.
(J) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following
Riders are to be executed by Borrower [check box as applicable]:
o Adjustable Rate Rider 0 Condominium Rider !XI Second Home Rider
o Balloon Rider 0 Planned Unit Development Rider
IX] Balloon Payment Rider
o 1-4 Family Rider 0 Biweekly Payment Rider !XI Rider to Security Instrument
(K) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations,
ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final,
non-appealable judicial opinions.
(L) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other
charges that are imposed on Borrower or the Property. by a condominium association, homeowners
association or similar organization.
(M) "Electronic Fund~ 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 clearinghouse
transfers.
(N) "Escrow Items" means those items that are described in Section 3.
(0) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid
by any third party (other than insurance proceeds paid UI"der the coverages described in Section 5) for: (i)
damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the
Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the
value and/or condition of the Property. As used in Sections 6 and 7 below, "Condemnation" refers to any
event referred to in (ii) or (iii) of the preceding sentence.
(P) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on,
the Loan.
(Q) "Periodic Payment" means the regularly scheduled amount due for principal and interest under the
Note, plus any amounts under Section 3 of this Security Instrument.
(R) "RESPA" means the Real Estate Settlement Procedures Act (12 D.S.C. § 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 regulation 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 ifthe Loan does not qualify as a "federally related mortgage
loan" under RESPA.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 2 of 14 pages)
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(S) "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.
BORROWER'S TRANSFER TO LENDER OF RIGHTS IN THE PROPERTY
This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions
and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under
this Security Instrument and the Note. For tbese purposes, Borrower does hereby mortgage, grant and
convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the
successors and assigns of MERS, with power of sale, the following described property located in the
County of TETON
[Type of Recording Jurisdiction] [Name of Recording Jurisdiction]
LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF FOR ALL
PURPOSES.
which currently has the address of 796 TERRACE DRIVE
ALPINE
[Street]
("Property Address"):
, Wyoming 83128
[City] [State] [Zip Code]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all
easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and
additions shall also be covered by this Security Ins'mment. All of the foregoing is referred to in this
Security Instrument as the "Property." Borrower undersmnds and agrees that MERS holds only legal title
to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or
custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any
or all of those interests, including, but not limited to, thl~ right to foreclose and sell the Property; and to
take any action required of Lender including, but not limited to, releasing and canceling this Security
Instrument.
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has
the right to grant and convey the Property and that the Property is unencumbered, except for
encumbrances of record. Borrower warrants and will defend generally the title to the Property against all
claims and demands, subject to any encumbrances of record.
Borrower and Lender covenant and agtee as follows:
1. Payment of Principal, Interest and Other Charges. I will 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. I will also pay funds for Escrow Items pursuant to Section 3.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 3 of 14 pages)
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Payments due under the Note and this Security Instrument shall be made in U.S. currency. However,
if any check or other instrument received by Lender as payment under the 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 the following 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 federal agency, instrumentality,
or entity; or (d) Electronic Funds Transfer.
Payments are deemed received by Lender when received at the location designated in the Note or at
such other location as may be designated by Lender in accordance with the notice provisions in Section
12. Lender may return any payment or partial payment if the payment or partial payments are insufficient
to bring the Loan current. Lender may accept any payment or partial payment insufficient 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 Lender is not obligated tq apply such payments at the time such
payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need
not pay interest on unapplied funds. Lender may hold such unapplied funds until I make payment to bring
the Loan current. If I do not do so within a reasonable period of time, Lender will either apply such funds
or return them to me. If not applied earlier, such funds will be applied to the outstanding principal balance
under the Note immediately prior to foreclosure. No offset or claim which I might have now or in the
future against Lender will relieve me from making payments due under the Note and this Security
Instrument or performing the covenants and agreements secured by this Security Instrument.
2. Application of Payments. Urness Applicable Law provides otherwise, all payments received by
Lender under the Note and Section 1 will be applied by Lender as permitted under the Note.
3. Monthly Payments For Taxes and Insurance.
(a) Borrower's Obligations. I will pay to Lender all amounts necessary to pay for taxes, assessments,
water charges, sewer rents and other similar charges, ground leasehold payments or rents (if any), hazard
or property insurance covering the Property, flood insurance (if any), and any required Mortgage
Insurance. Each Periodic Payment will include an amount to be applied toward payment of the following
items which are called "Escrow Items:"
(1) The taxes, assessments, water charges, sewer rents and other similar charges, on the Property
which under Applicable Law may be superior to this Security Instrument as a Lien on the
Property. Any claim, demand or charge that is made against property because an obligation has
not been fulfilled is known as a "Lien;"
(2) The leasehold payments or ground rents on the Property (if any);
(3) The premium for any and all insurance required by Lender under Section 5 of this Security
Instrument;
(4) The premium for Mortgage Insurance (if any); and
(5) If required by Lender, the amount for any Community Association Dues, Fees, and
Assessments.
After signing the Note, or at any time during its term, Lender may include these amounts as Escrow
Items. The monthly payment I will· make for Escrow Items will be based on Lender's estimate of the
annual amount required.
I will pay all of these amounts to Lender unless Lender tells me, in writing, that I do not have to do
so, or unless Applicable Law requires otherwise. I will make these payments on the same day that my
Periodic Payments of principal and interest are due under the Note. However, I shall not be obligated to
make these payments to Lender to the extent that I make these payments to the holder of a prior mortgage
or deed of trust on the Property if such holder is an institutional lender .
GMD WYOMING Closed-End Mortgage (Junior) - HC Form 34824.3 OS/24/02
(page 4 of 14 pages)
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The amounts that I pay to Lender for Escrow Items under this Section 3 will be called "Escrow
Funds." I will pay Lender the Escrow Funds for Escrow Items unless Lender waives my obligation to pay
the Escrow Funds for any or all Escrow Items. Lender may waive my obligation to pay to Lender Escrow
Funds for any or all Escrow Items at any time. Any such waiver must be in writing. In the event of such
. waiver, I will pay directly, when and where payable, the amounts due for any Escrow Items for which
payment of Escrow Funds has been waived by Lender and, if Lender requires, will promptly send to
Lender receipts showing such payment within such time period as Lender may require. My obligation to
make such payments and to provide receipts will be considered to be a promise and agreement contained
in this Security Instrument, as the phrase "promises and agreements" is used in Section 7 of this Security
Instrument. If I am obligated to pay Escrow Items directly, pursuant to a waiver, and I fail to pay the
amount due for an Escrow Item, Lender may pay that amount and I will then be obligated under Section 7
of this Security Instrument to repay to Lender. Lender may revoke the waiver as to any or all Escrow
Items at any time by a notice given in accordance with Section 12 of this Security Instrument and, upon
the revocation, I will pay to Lender all Escrow Funds, and in amounts, that are then required under this
Section 3.
I promise to promptly send to Lender any notices that I receive of Escrow Item amounts to be paid.
Lender will estimate from time to time the amount of Escrow Funds I will have to pay by using existing
assessments and bills and reasonable estimates of the amount I will have to pay for Escrow Items in the
future, unless Applicable Law requires Lender to use another method for determining the amount I am to
pay.
Lender may, at any time, collect and hold Escrow Funds in an amount sufficient to permit Lender to
apply the Escrow Funds at the time specified under RESP A. Applicable Law puts limits on the total
amount of Escrow Funds Lender can at any time collect and hold. This total amount cannot be more than
the maximum amount a lender could require under RESP A. If there is another Applicable Law that
imposes a lower limit on the total amount of Escrow Funds Lender can collect and hold, Lender will be
limited to the lower amount.
(b) Lender's Obligations. Lender will keep the Escrow Funds in a savings or banking institution
which has its deposits insured by a federal agency, instrumentality, or entity, or in any Federal Home
Loan Bank. If Lender is such a savings or banking institution, Lender may hold the Escrow Funds.
Lender will use the Escrow Funds to pay the Escrow Items no later than the time allowed under RESP A or
other Applicable Law. Lender will give to me, wîthout charge, an annual accounting of the Escrow Funds.
That accounting will show all additions to and deductions from the Escrow Funds and the reason for each
deduction.
Lender may not charge me for holding or keeping the Escrow Funds, for using the Escrow Funds to
pay Escrow Items, for making a yearly analysis of my payment of Escrow Funds or for receiving, or for
verifying and totaling assessments and bills. However, Lender may charge me for these services if Lender
pays me interest on the Escrow Funds and if Applicable Law permits Lender to make such a charge.
Lender will not be required to pay me any interest or earnings on the Escrow Funds unless either (1)
Lender and I agree in writing that Lender win pay interest on the Escrow Funds, or (2) Applicable Law
requires Lender to pay interest on the Escrow Funds.
(c) Adjustments to the Escrow Funds. Under Applicable Law, there is a limit on the amount of
Escrow Funds Lender may hold. If the amount of Escrow Funds held by Lender exceeds this limit, then
there will be an excess amount and RESP A requires Lender to account to me in a special manner for the
excess amount of Escrow Funds.
If, at any time, Lender has not received enough Escrow Funds to make the payments of Escrow
Items when the payments are due, Lender may tell me in writing that an additional amount is necessary. I
will pay to Lender whatever additional amount is necessary to pay the Escrow Items when the payments
are due, but the number of payments will not be more than 12.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 5 of 14 pages)
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When I have paid all of the Sums Secured, Lender ,vill promptly refund to me any Escrow Funds
that are then being held by Lender.
4. Prior Security Instruments; Borrower's Obligation to Pay Charges, Assessments And Claims.
I will perform all of my obligations under any mortgage, deed of trust, or other security instruments with
a lien which has priority over this Security Instrument, including my promises to make payments when
due. I will pay all taxes, assessments, water charges, sewer rents and other similar charges, and any other
charges and fines that may be imposed on the Property and that may be superior to this Security
Instrument. I will also make ground rents or payments due under my lease if I am a tenant on the Property
and Community Association Dues, Fees, and Assessments (if any) due on the Property. If these items are
Escrow Items, I will do this by making the payments as deS{;ribed in Section 3 of this Security Instrument.
In this Security Instrument, the word "Person" means any individual, organization, governmental
authority or other party.
I will promptly payor satisfy all Liens against the Property that may be superior to this Security
Instrument. However, this Security Instrument does not require me to satisfy a superior Lien if: (a) I
agree, in writing, to pay the obligation which gave rise to the superior Lien and Lender approves the way
in which I agree to pay that obligation, but only so long as I am performing such agreement; (b) in good
faith, I argue or defend against the superior Lien in a lawsuit so that in Lender's opinion, during the
lawsuit, the superior Lien may not be enforced, but only until the lawsuit ends; or (c) I secure from the
holder of that other Lien an agreement, approved in writing by Lender, that the Lien of this Security
Instrument is superior to the Lien held by that Person. If Lender determines that any part of the Property
is subject to a superior Lien, Lender may give me a notice identifying the superior Lien. Within 10 days
of the date on which the notice is given, I must payor satisfy the superior Lien or take one or more of the
actions mentioned in this Section 4.
Lender also may require me to pay a one-time charge for an independent real estate tax reporting
service used by Lender in connection with the Loan, unless Applicable Law does not permit Lender to
make such a charge.
5. Properly Insurance. I will keep the Property insur.ed against loss by fire, hazards included
within the term "extended coverage" and any other hazards, including earthquakes and floods or flooding,
for which Lender requires insurance. This insurance shall be maintained 'in the amounts, including
deductible levels, and for the periods that Lender requires. I may choose any insurer reasonably
acceptable to Lender. Lender may require me to pay, in connection with this Loan, either: (a) a one-time
charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood
zone determination and certification services and subsequent charges each time remappings or similar
changes occur which reasonably might affect such determination or certification. If I disagree with the
flood zone determination, I may request the Federal Emergency Management Agency to review the flood
zone determination and I promise to pay any fees imposed by the Federal Emergency Management
Agency for its review. Insurance policies and renewals shall be acceptable to Lender and shall include a
standard mortgagee clause. If Lender requires, I will promptly give Lender all receipts of paid premiums
and renewal notices.
If I fail to maintain coverage as required in this Section, Lender may obtain insurance coverage, at
my expense, as Lender in Lender's sole discretion detenllines appropriate to protect Lender's interest in
the Property in accordance with the provisions of Section 7. I understand and agree that any coverage
Lender purchases may cover only Lender's interest in the Property and might provide greater or lesser
coverage than was previously in effect. Insurance coverage purchased by the Lender might not protect
me, my equity in the Property, or the contents of the Property, against any risk, hazard or liability. I
understand and agree that the premium for any insurance purchased by the Lender may be higher than the
premium I could have paid for such insurance. Any amo'uuts disbursed by Lender to purchase insurance
coverage under this Section will become my additional debt secured by this Security Instrument. These
amounts will bear interest at the Note rate from the date of disbursement and will be payable, with such
interest, upon notice from Lender to me requesting payment.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 6 of 14 pages)
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In the event of loss, I will notify the insurance carrier and Lender promptly. Lender may make proof
of loss to the insurance company if I fail to do so prompt1:/.
The amount paid _ by the insurance company for loss or damage to the Property is called "Insurance
Proceeds." Unless Lender and I otherwise agree in writing, and subject to the rights of any Person with a
superior Lien on thð Property, any Insurance Proceeds, whether or not the underlying insurance was
required by Lender, will be used to repair or to restore the damaged Property unless: (a) it is not
economically feasible to make the repairs or restoration; (b) the use of the Insurance Proceeds for that
purpose would lessen the protection given to Lender by this Security Instrument; or (c) Lender and I have
agreed in writing not to use the Insurance Proceeds for that purpose. During the period that any repairs or
restorations are being made, Lender may hold any :nsurance Proceeds until it has had an opportunity to
inspect the Property to verify that the repair work has been completed to Lender's satisfaction. However,
this inspection will be done promptly. Lender may make payments for the repairs and restorations in a
single payment or in a series of progress payments as tbe work is completed. Urness Lender and I agree
otherwise in writing or unless Applicable Law requires otherwise, Lender is not required to pay me any
interest or earnings on the Insurance Proceeds. I will pay for any public adjusters or other third parties
that I hire, and their fees will not be paid out of the Insurance Proceeds. Subject to the rights of any
Person with a superior Lien on the Property, if the repair or restoration is not economically feasible or if it
would lessen Lender's protection under this Security Instrument, then the Insurance Proceeds will be used
to reduce the amount that I owe to Lender under this Security Instrument. Such Insurance Proceeds will be
applied in the order provided for in Section 2. If any of the Insurance Proceeds remain after the amount
that I owe to Lender has been paid in full, the remaining Insurance Proceeds will be paid to me.
If I abandon the Property, Lender may file, negotiate and settle any available insurance claim and
related matters. If I do not answer, within 30 days, a notice from Lender stating that the insurance
company has offered to settle a claim, 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 the Property under Section 18 of this
Security Instrument or otherwise, I give Lender my rights to any Insurance Proceeds in an amount not
greater than the amounts unpaid under the Note and this Security Instrument. I also give Lender any other
of my rights (other than the right to any refund of unearned premiums that I paid) under all insurance
policies covering the Property, if the rights are applicable to the còverage of the Property. Lender may use
the Insurance Proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or
this Security Instrument, whether or not then due.
6. Borrower's Obligations to Maintain And Protèct The Property And to Fulfill Any Lease
Obligations.
(a) Maintenance and Protection of the Property. I will not destroy, damage or harm the Property,
and I will not allow the Property to deteriorate. Whether or not I am residing in the Property, I will keep
the Property in good repair so that it will not deteriorate or decrease in value due to its condition. Unless it
is determined under Section 5 of this Security Instrument that repair is not economically feasible, I will
promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
Condemnation (as defined in the definition of Miscellaneous Proceeds) proceeds are paid because of loss
or damage to, or Condemnation of, the Property, I will repair or restore the Property only if Lender has
released those proceeds for such purposes. Lender may pay for the repairs and restoration out of proceeds
in a single payment or in a series of progress payments as the work is completed. If the insurance or
Condemnation proceeds are not sufficient to repair or restore the Property, I promise to pay for the
completion of such repair or restoration.
If I do not own, but am a tenant on the Property, I will fulfill all my obligations under my lease. I
also agree that, if I acquire the full title (sometimes called "Fee Title") to the Property, my lease interest
and the Fee Title will not merge unless Lender agrees to the merger in writing.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 7 of 14 pages)
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(b) Lender's Inspection of Property. Lender, and others authorized by Lender, may enter on and
inspect the Property. They will do so in a reasonable manner and at reasonable times. If it has a
reasonable purpose, Lender may inspect the inside of the home or other improvements on the Property:
Before or at the time an inspection is made, Lender will give me notice stating a reasonable purpose for
such interior inspection.
7. Lender's Right to Protect Its Rights in The Property. If: (a) I do not keep my promises and
agreements made in this Securily Instrument; (b) someone, including me, begins a legal proceeding that
may significantly affect Lender's interest in the Property or rights under this Security Instrument (such as
a legal proceeding in bankruptcy, in probate, for Condemnation or Forfeiture (as defined in Section 8),
proceedings which could give a Person rights which could equal or exceed Lender's interest in the
Property or under this Security Instrument, proceedings for enforcement of a Lien which may become
superior to this Security Instrument, or to enforce laws or regulations); or (c) I have abandoned the
Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's
interest in the Property and Lender's rights under this Security Instrument.
Lender's actions can include, but are not limited to the following. Lender can protect and/or assess
the value of the Property. Lender can secure and/or repair the Property. Lender can pay sums to
eliminate any Lien against the Property that may be equal or superior to this Security Instrument. Lender
can appear in court and pay reasonable attorneys' fees to protect its interest in the Property and/or rights
under this Security Instrument, including its secured position in a bankruptcy proceeding. Lender can also
enter the Property to make repairs, change locks, replace or board up doors and windows, drain water
from pipes, eliminate building or other code violations or dangerous conditions, have utilities turned on or
off, and take any other action to repair or secure the Property. Although Lender may take action under
this Section 7, Lender does not have to do so and is under no duty to do so. I agree that Lender will not
be liable for not taking any or all actions under this Section 7.
I will pay to Lender any amounts, with interest, 'which Lender spends under this Section 7. I will
pay those amounts to Lender when Lender sends me a notice requesting that I do so. I will pay interest on
those amounts at the interest rate set forth in the Note. Interest on each amount will begin on the date that
the amount is spent by Lender. This Security Instrument will protect Lender in case I do not keep this
promise to pay those amounts with interest. Those amounts will become additional debt secured by this
Security Instrument until they are paid in full, with interest.
8. Agreements About Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are
assigned to and will be paid to Lender.
If the Property is damaged,ánd subject to the rights of any Person with a superior Lien on the
Property, the Lender will apply any Miscellaneous Proceeds to restore or repair the Property, if the
restoration or repair is economically feasible and Lender's security given in this Security Instrument is not
lessened. During such repair and restoration period, Lender will have the right to hold the Miscellaneous
Proceeds until Lender has had an opportunity to inspect the Property to verify that the work has been
completed to Lender's satisfaction. However, the inspection will be undertaken promptly. Lender may pay
for the repairs and restoration in a single disbursement or in a series of progress payments as the work is
completed. Unless Lender and I agree otherwise in writing or unless Applicable Law requires interest to
be paid on such Miscellaneous Proceeds, Lender will not be required to pay me any interest or earnings on
the Miscellaneous Proceeds. Subject to the rights of any Person with a superior Lien on the Property, if
the restoration or repair is not economically feasible or Lender's security given in this Security Instrument
would be lessened, the Miscellaneous Proceeds will be applied to the Sums Secured, whether or not then
due. The excess, if any, will be paid to me. Such Miscellaneous Proceeds will be applied in the order
provided for in Section 2.
In the event of a total or partial taking, destruction, or loss in value of the Property, and subject to
the rights of any Person with a superior Lien on the Property, the Miscellaneous Proceeds will be applied
to the Sums Secured, whether or not then due.. The excess, if any, will be paid to me.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 8 of 14 pages)
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If I abandon the Property, or if, after Lender sends me notice that the Opposing Party (as defined in
the next sentence) offered to make an award to settle a claim for damages, I fail to respond to Lender
within 30 days after the date Lender gives notice, Lender is authorized to collect and apply the
Miscellaneous Proceeds either to restore or repair the Property or to the Sums Secured, whether or not
then due. "Opposing Party" means the third party that owes me Miscellaneous Proceeds or the party
against whom I have a right of action in regard to MiscelIaneous Proceeds.
I will be in default under this Security Instrument if any Person brings a civil or criminal action or
proceeding that Lender determines could result in a court ruling that would require Forfeiture of the
Property, or that could damage Lender's interestin the Property or rights under this Security Instrument.
"Forfeiture" is a court actìon to require the Property, or any part of the Property, to be given up. I may
correct the default by obtaining a court ruling that dismisses the court action, if Lender determines that
this court ruling prevents Forfeiture of the Property and also prevents any damage to Lender's interest in
the Property or rights under this Security Instrument. If I correct the default, I will have the right to have
enforcement of this Security Instrument discontinued, ev;:n if Lender has required Immediate Payment in
Full (as defined in Section 18). The proceeds of any award or claim for damages that are attributable to
the damage or reduction of Lender's interest in the Property are assigned, and will be paid, to Lender.
All Miscellaneous Proceeds that are 'not applied to restoration or repair of the Property will be
applied in the order provided for in Section 2.
9. Continuation of Borrower's Obligations And of Lender's Rights.
(a) Borrower's Obligations. Lender may allow me, or a Person who takes over my rights and
obligations, to delay or to change the amount of the Periodic Payments. Even if Lender does this,
however, I will still be fully obligated under the Note and under this Security Instrument unless Lender
agrees to release me, in writing, from my obligatiollL:_ Lender may allow those delays or changes for me
or a Person who takes over my rights and obligation$, even if Lender is requested not to do so. Even if
Lender is requested to do so, Lender will not be required to (1) bring a lawsuit against me or such a
Person for not fulfilling obligations under the Note or under this Security Instrument, or (2) refuse to
extend time for payment or otherwise modify amortization of the Sums Secured.
(b) Lender's Rights. Even if Lender does not exercise or enforce any right of Lender under this
Security Instrument or under Applicable Law, Lender will still have all of those rights and may exercise
and enforce them in the future. Even if: (1) Lender obtains insurance, pays taxes, or pays other claims,
charges or Liens against the Property; (2) Lender accepts payments from third Persons; or (3) Lender
accepts payments in amounts less than the amount then due, Lender will have the right under Section 18
below to demand that I make Immediate Payment in Full of any amounts remaining due and payable to
Lender under the Note and under this Security Instrument.
10. Obligations of Borrower And of Persons Taking Over Borrower's Rights or Obligations. If
more than one Person signs this Security Instrument as Borrower, each of us is fully obligated to keep all
of Borrower's promises and obligations contained in this Security Instrument. Lender may enforce
Lender's rights under this Security Instrument against each of us individually or against all of us together.
This means that anyone of us may be required to pay all of the Sums Secured.
However, if one of us does not sign the Note: (a) that Person is signing this Security Instrument only
to give that Person's rights in the Property to Lender under tile terms of this Security Instrument; (b) that
Person is not personally obligated to pay the Sums Secured; and (c) that Person agrees that Lender may
agree with the other Borrowers to delay enforcing any of Lender's rights, to modify, or make any
accommodations with regard to the terms of this Security Instrument or the Note without that Person's
consent.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 9 of 14 pages)
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0312261
00277
Subject to the provIsIons of Section 14 of this Security Instrument, any Person who takes over my
rights or obligations under this Security Instrument in writing, and is approved by Lender in writing, will
have all of my rights and will be obligated to keep all of my promises and agreements made in this
Security Instrument. Borrower will not be released from Borrower's obligations and liabilities under this
Security Instrument unless Lender agrees to such release in writing. Any Person who takes over Lender's
rights or obligations under this Security Instrument will have all of Lender's rights and will be obligated to
keep all of Lender's promises and agreements made in this Security Instrument except as provided under
Section 15.
11. Loan Charges. Lender may charge me fees for services performed in connection with my
default, for the purpose of protecting Lender's interest in the Property and rights under this Security
Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. Lender
may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. In
regard to any other fees, the fact that this Security Instrumen! does not anticipate and expressly authorize
the Lender to charge a specific fee will not be construed to prohibit Lender from charging me such a fee.
If the Loan is subject to a law which sets maximum loan charges, and that law is fmally interpreted
so that the interest or other loan charges collected or to be collected in connection with the loan exceed the
permitted limits, then any such loan charge will be reduced by the amount necessary to reduce the charge
to the permitted limit. Lender must· refund any sums alieady collected from me that exceed permitted
limits. Lender may choose to make this refund by reducing the principal owed under the Note or by
making a direct payment to me. If a refund reduces principal, the reduction will be treated as a partial
prepayment without any prepayment charge under the Note and will not affect the amount of the Periodic
Payment.
12. Notices. All notices given by me or Lender in connection with this Security Instrument must be
in writing. If any notice required by this Security Instrument is also required under Applicable Law, the
Applicable Law requirement will satisfy the corresponding requirement under this' Security Instrument.
Subject to Applicable Law, any notice to me in connection with this Security Instrument is considered
given to me when mailed by first class mail or when actually delivered to my notice address if sent by
other means. My notice address is the Property Addœss unless I give notice to Lender of a different
address. I will promptly notify Lender of my change of address'. If Lender specifies a procedure for
reporting my change of address, then I will only report a change of address through that specified
procedure. There may be only one designated notice address under this Security Instrument at anyone
time. Notice to anyone Borrower will constitute notice to,ftlll Borrowers unless Applicable Law expressly
requires otherwise.
Subject to Applicable Law, any notice to Lender will be given by delivering ~t 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 this Security Instrument is given to Lender when actually
received by Lender.
13. Law That Governs tWs Security Instrument; Word Usage. Federal law and the law of the
jurisdiction where the Property is located will govern this Security Instrument. All rights and obligations
contained in this Security Instrument are subject to any -requirements and limitations of Applicable Law.
Applicable Law might allow the parties to agree by contract or it might be silent, but such silence does not
mean that Lender and I cannot agree by contract. If any term of this Security Instrument or of the Note
conflicts with Applicable Law, the conflict will not affect other provisions of this Security Instrument or
the Note which can operate, or be given effect, without the conflicting provision. This means that the
Security Instrument or the Note will remain as if the conflicting provision did not exist.
As used in this Security Instrument: (a) words of the masculine gender mean and include
corresponding words of the feminine and neuter genders; (b) words in the singular mean and include the
plural, and words in the plural mean and include the singular; and (c) the word "may" gives sole
discretion without any obligation to take any action.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 10 of 14 pages)
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14. Agreements about Lender's Rights If the Property Is Sold or Transferred. Lender may
require Immediate Payment in Full of all Sums Secured by this Security Instrument if all or any part of the
Property, or if any right in the Property, is sold or transferred without Lender's prior written permission.
If Borrower is not a natural Person and a beneficial interest in Borrower is sold or transferred without
Lender's prior written permission, Lender also may require Immediate Payment in FulL However, Lender
shall not exercise this option if Applicable Law prohibits Lender from doing so.
If Lender requires Immediate Payment in Fullllnder this Section 14, Lender will give me a notice
that states this requirement. The notice will give me a! least 30 days to make the required payment. The
30-day period will begin on the date the notice is given to me in the manner required by Section 12 of this
Security Instrument. If I do not make the required payment during that period, Lender may act to enforce
its rights under this Security Instrument without giving me any further notice or demand for payment.
15. Note Holder's Right to Sell the Note or an Interest in the Note; Borrower's Right to Notice
of Change of Loan Servicer. The Note, or an interest in the Note, together with this Security
Instrument, may be sold one or more times. I might not receive any prior notice of these sales.
The entity that collects the Periodic Payments and performs other mortgage loan servicing obligations
under the Note, this Security Instrument, and Applicable Law is called the "Loan Servicer. " There may be
a change of the Loan Servicer as a result of the sale of the Note. There also may be one or more changes
of the Loan Servicer unrelated to a sale of the Note. 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 me
will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by
the Note purchaser unless otherwise provided by the Note purchaser.
16. Notice of Grievance. Neither I nor Lender may commence, join or be joined to any court action
(as either an individual party or the member of a class) that arises from the other party's actions pursuant
to this Security Instrument or that alleges that the other has not fulfilled any of its obligations under this
Security Instrument, unless the other is notified (in the manrier required under Section 12 of this Security
Instrument) of the unfulfilled obligation and given a reasonable time period to take corrective action. If
Applicable Law provides a time period which will elapse'before certain action can be taken, that time
period will be deemed to be reasonable for purposes of this Section. The notice of acceleration and
opportunity to cure given to me under Section 18 and the notice of the demand for payment in full given
to me under Section 18 will be deemed to satisfy the notice and opportunity to take corrective action
provisions of this Section 16. All rights under this Section are subject to Applicable Law.
17. Hazardous Substances. The Applicable Laws that relate to health, safety or environmental
protection are called "Environmental Law." Environmental Law classifies certain substances as toxic or
hazardous. There are other substances that are considered hazardous for purposes of this Section 17.
These substances are gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides
and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials.
The substances defined as toxic or hazardous by Environmental Law and the substances considered
hazardous for purposes of this Section 17 are called "Hazardous Substances." "Environmental Cleanup"
includes any response action, remedial action, or removal action, as defined in Environmental Law. An
"Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an
Environmental Cleanup.
I will not do anything affecting the Property that violates Environmental Law, and I will not allow
anyone else to do so. I will not cause or permit Hazardous Substances to be present on the Property. I will
not use or store Hazardous Substances on the Property. I also will not dispose of Hazardous Substances on
the Property, or release any Hazardous Substance on the Property, and I will not allow anyone else to do
so. I also will not do, nor allow anyone else to do, anything affecting the Property that: (a) is in violation
of any Environmental Law; (b) creates an Environmental Condition; or (c) which, due to the presence,
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 11 of 14 pages)
"'r~"""
0912261
__00279
use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the
Property. The promises in this Section do not apply to the presence, use, or storage on the Property of
small quantities of Hazardous Substances that are generally recognized as appropriate for normal
residential use and maintenance of the Property (including, but not limited to, Hazardous Substances in
consumer products). I may use or store these small quaf\tities on the Property. In addition, unless
Environmental Law requires removal or other action, the buildings, the improvements and the fixtures on
the Property are permitted to contain asbestos and asbestos-containing materials if the asbestos and
asbestos-containing materials are undisturbed and "non-friable" (that is, not easily crumbled by hand
pressure) .
I will promptly give Lender written notice of: (a) eny investigation, claim, demand, lawsuit or other
action by any governmental or regulatory agency or private party involving the Property and any
Hazardous Substance or Environmental Law of which I have actual knowledge; (b) any Environmental
Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any
Hazardous Substance; and (c) any condition caused by the presence, use or release of a Hazardous
Substance which adversely affects the value of the Property. If I learn, or any governmental or regulatory
authority, or any private party, notifies me that any removal or other remediation of any Hazardous
Substance affecting the Property is necessary, I will promptly take all necessary remedial actions in
accordance with Environmental Law.
Nothing in this Security Instrument creates an obligation on Lender for an Environmental Cleanup.
18. Acceleration; Remedies. Lender will give notice to Borrower prior to acceleration following
Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to
acceleration under Section 14 unless Applicable Law provides otherwise). The notice will specify:
(a) the default;
(b) the action required to cure the default;
(c) a date, not less than 30 days from the date the notice is given to Borrower, by which the
default must be cured; and
(d) that failure to cure the default on or before the date specified in the notice may result in
acceleration of the sums secured by this Security Instrument and sale of the Property.
The notice will further inform Borrower of the right to reinstate after acceleration and the right
to bring a court action to assert the non-existence of a default or any other defense of Borrower to
acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender
at its option may require immediate payment in full of all sums secured by this Security Instrument
without further demand and may invoke the power of sale and any other remedies permitted by
Applicable Law. Lender will be entitled to collect all expenses incurred in pursuing the remedies
provided in this Section 18, including, but not limited to, reasonable attorneys' fees and costs of title
evidence.
If Lender invokes the power of sale, Lender will give notice of intent to foreclose to Borrower
and to the person in possession of the Property, if different, in accordance with Applicable Law.
Lender will give notice of the sale to Borrower in the mahIÌer provided in Section 12. Lender will
publish the notice of sale, and the Property will be sold in the manner prescribed by Applicable Law.
Lender or its designee may purchase the Property at any sale. Unless otherwise required by
Applicable Law, the proceeds of the sale will be applied in the following order: (a) to all expenses of
the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this
Security Instrument; and (c) any excess to the person or persons legally entitled to it.
I
19. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this
Security Instrument. 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 under Applicable Law.!
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 12 of 14 pages)
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'.'-00280
20. Discontinuance of, Enforcement. Notwithstanding acceleration of the Sums Secured by this
Security Instrument under the provisions of Section 14 or Section 18, Lender may, in Lender's sole
discretion and upon such conditions as Lender in Lender's sole discretion may determine, discontinue any
proceedings begun to enforce the tenus of this Security Instrument.
21. No Waiver. No waiver by Lender at any time of any term, provision or covenant contained in
this Security Instrument or in the Note secured hereby shall be deemed to be or construed as a waiver of
any other tenu, provision or covenant or of the same term, provision or covenant at any other time.
22. Additional Charges. Borrower agrees to pay reasonable charges as allowed by law in
connection with the servicing of the Loan including, without limitation, the costs of obtaining tax searches
and subordinations. Provided, however, that nothing contained in this Section is intended to create and
shall not be construed to create any duty or obligation by Lender to perfonu any such act, or to execute or
consent to any such transaction or matter, except a re1ea~e of the Security Instrument upon full repayment
of all Sums Secured.
23. Occupancy. I will occupy, establish, and use the Property as my principal residence within 60
days after the execution of this Security Instrument and shall continue to occupy the Property as my
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 my control.
24. My Loan Application. I will be in default if, during the Loan application process, lor any
Persons acting at my direction or with my knowledge or consent gave materially false, misleading, or
inaccurate information or statements to Lender (or failed to provide Lender with material infonuation) in
connection with the Loan. Material representations include, but are not limited to, representations
concerning my occupancy of the Property as my principal residence.
25. Homestead Waiver. I hereby release and waive all rights under and by virtue of the homestead
exemption laws of Wyoming.
26. Riders to this Security Instrument. If one or more Riders are executed by Borrower and
recorded together with this Security Instrument, the covenants and agreements of each such Rider shall be
incorporated into and shall amend and supplement the covenants and agreements of this Security
Instrument as if the Rider(s) were a part of this Security Instrument.
REQUEST FOR NOTICE OF DEFAULT
AND FORECLOSURE UNDER SUPERIOR
MORTGAGES OR DEEDS OF TRUST
Borrower and Lender request the holder of any mortgage,' deed of trust or other encumbrance with a
lien which has priority over this Security Instrument to give Notice to Lender's address set forth on page
one of this Security Instrument, of any default under the superior encumbrance and of any sale or other
foreclosure action.
GMD WYOMING Junior Lien Mortgage - HC Form 34824.3 OS/24/02
(page 13 of 14 pages)
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C00281
IN WITNESS WHEREOF, Borrower has executed this Security Instrument.
BY SIGNING BELOW, Borrower accepts and agrees to tM terms and covenants contained in this Security
Instrument and in any Rider(s) executed by Borrower and recorded with it.
Signed, sealed and delivered in the presence of:
(Seal)
-Borrower
(Seal)
-Borrower
(Seal) (Seal)
-Borrower -Borrower
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The foregoing instrument was acknowledged before me by THOMAS A. BARBUTO and
VALENTINA P. OLIVEIRA, HIS WIFE this ~ day of S , ioo:s .
Witness my hand and official seal. !
Notary Public
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(page 14 of 14 pages)
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LEGAL DESCRIPTION
Lot 812 of Lakeview Estates 3rd Addition to the Town of Alpine, Lincoln County, Wyoming
as described on the official plat No. 250-D filed July 3, 2003 as Instrument No. 892064 of the
records of the Lincoln County Clerk.
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SECOND HOME RIDER Loan Number 0055532485
THIS SECOND HOME RIDER is made this 23RD day of SEPTEMBER, 2005, and is incorporated into and
shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security
Instrument") of the same date given by the undersigned (the "Borrower," whether there are one or more persons
undersigned) to secure Borrower's Note to FIRST HORIZON HOME LOAN CORPORATION (the
"Lender") of the same date and covering the Property described in the Security Instrument (the "Property"),
which is located at:
796 TERRACE DRIVE, ALPINE, WYOMING 83128
[property Address]
In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further
covenant and agree that Sections 6 and 8 of the Security Instrument are deleted add are replaced by the
following:
6. Occupancy. Borrower shall occupy, and shall only use, the Property as Borrower's second home.
Borrower shall keep the Property available for Borrower's exclusive use and enjoyment at all times,
and shall not subject the Property to any timesharing or other shared ownership arrangement or to any
rental pool or agreement that requires Borrower either to rent the Property or give a management firm
or any other person any control over the occupancy or use of the Property.
8. Borrower'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 inaccurate information or statements to
Lender (or failed to provide Lender with material information) in connection with the Loan. Material
representations include, but are not limited to, representations concerning Borrower's occupancy of the
Property as Borrower's second home.
By SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Second Home
Rider.
(Seal)
-Borrower
,. (Seal)
V -Borrower
(Seal)
-Borrower
MULTISTATE SECOND HOME RIDER--Single Family--Famrle Ma~/Freddie Mac UNIFORM INSTRUMENT Form 3890 1/01
(page 1 of 1 page)
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Loan Number 0055532485
ADDENDUM TO ADJUSTABLE RATE RIDER
This addendum is made SEPTEMBER 23, 2005 and is incorporated into and deemed to amend and
supplement the Adjustable Rate Rider of the same date.
The property covered by this addendum is described in the Security Instrument and located at:
796 TERRACE DRIVE, ALPINE, WYOMING 83128
AMENDED PROVISIONS
In addition to the provisions and agreements made in the Security Instrument, I/we further covenant
and agree as follows:
ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES
Limits on Interest Rate Changes
The interest rate I am required to pay at the first Change Date will not be greater than 12.50% or less
than 2.50%. Thereafter, my adjustable interest rate will never be increased or decreased on any single
Change Date by more than ONE percentage points (1.00%) from the rate of interest I have been paying
for the preceding six (6) months. My interest rate wi!! never be greater than 12.50%. My interes.t rate will
never be less than 2.50%.
TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
Uniform Covenant 18 of the Security Instrument is amended to read as follows:
Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in
the Property" means any legal or beneficial interest in the Property, including, but not limited to, those
beneficial interests transferred in 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 the Property or any Interest in the Property is sold or transferred (or if 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 such exercise is prohibited by
Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall
provide a period of not less than 30 days from the date the notice is given in accordance with Section 15
within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay
these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this
Security Instrument without further notice or demand on Borrower.
1202 USOR Addendum to Rider
(page I of 2 pages)
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In Witness Thereof, Trustor has executed this addendum.
Witness
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Date
1202 UBOR Addendum to Rider
(page 2 of 2 pages)
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'00286
INTEREST-ONLY ADDENDUM
TO ADJUSTABLE RATE RIDER
LOAN NUMBER:
0055532485
PROPERTY ADDRESS: 796 TERRACE DRIVE, ALPINE, WYOMING 83128
THIS ADDENDUM is made this 23RD day of SEPTEMBER 2005 , and
is incorporated into and intended to form a part of the Adjustable Rate Rider (the "Rider") dated
the same date as this Addendum executed by the undersigned and payable to
FIRST HORIZON HOME LOAN CORPORATION
(the "L~nder").
THIS ADDENDUM supersedes Sections 4(C) of the Rider. None of the other provisions of the
Note are changed by this Addendum.
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(C) Calculation of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding
TWO AND ONE-QUARTER percentage point(s) ( 2.25 %) to the Current
Index for such Change Date. The Note Holder will then round the result of this addition to the
nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section
4(D) below, this rounded amount will be my new interest rate until the next Change Date.
During the Interest-Only Period, the Note Holder will then determine the amount of the
monthly payment that would be sufficient to repay accrued interest. This will be the amount of
my monthly payment until the earlier of the next Change Date or the end of the Interest-Only
Period unless I make a voluntary prepayment of principal during such period. If I make a
voluntary prepayment of principal during the Interest-Only Period, my payment amount for
subsequent payments will be reduced to the amount necessary to pay interest at the then
current interest rate on the lower principal balance. At the end of the Interest-Only Period and
on each Change Date thereafter, the Note Holder will determine the amount of the monthly
payment that would be sufficient to repay in full the unpaid principal that I am expected to owe
at the end of the Interest-Only Period or Change Date, as applicable, in equal monthly
payments over the remaining term of the Note. The result of this calculation will be the new
amount of my monthly payment. After the end of the Interest-Only Period, my payment amount
will not be red7zedle to voluntary prepayments. ¿.././
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Borrower TH
Form 603F
Borrower
F'r.ge 1 of 1
01/01
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05~61
00287
Loan Number 0055532485
ADJUSTABLE RATE RIDER
(LIB OR Six-Month Index (As Published In The Wall Street Joumal)--Rate Caps)
THIS ADJUSTABLE RATE RIDER is made this 23RD day of SEPTEMBER, 2005, and is incorporated
into and shall be deemed to amend and supplement the .Mortgage, Deed of Trust, or Security Deed (the
"Security Instrument") of the. same date given by the undersigued ("Borrower") to secure Borrower's Adjustable
Rate Note (the "Note") to ¡FmST HORIZON HOME LOAN CORPORATION ("Lender") of the same date
and covering the property described in the Security Instrument and located at:
796 TERRACE DRIVE, ALPINE, WYOMING 83128
[property Address]
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE
AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROWER'S
INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER
MUST PAY.
ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security
Instrument, Borrower and Lender further covenant and agree as follows:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 7.50%. The Note provides for changes in the interest rate
and the monthly payments, as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the first day of OCTOBER, 2010, and on that
day every 6TH month thereafter. Each date on which my interest rate could change is called
a "Change Date."
(B) The Index
Beginning with the first Change Date, my interest rate will be based on an Index. The
"Index" is the average of interbank offered rates for six month U.S. dollar-denominated
deposits in the London market ("LIBOR"), as. published in The Wall Street Journal. The
most recent Index figure available as of the first business day of the month immediately
preceding the month in which the Change Date occurs is called the "Current Index."
If the Index is no longer available, the Note Holder will choose a new index that is based
upon comparable infonnation. The Note Holder will give me notice of this choice.
(C) Calculation of Ch~ges
Before each Change Date, the Note Holder will calculate my new interest rate by adding
TWO AND ONE-QUARTER percentage points (2.25%) to the Current Index. The Note
Holder will then round the result of this addition to the nearest one-eighth of one percentage
point (0. 125 %). Subject to the limits stated in Section 4(D) below, this rounded amount will
be my new interest rate until the next Change Date. .
The Note Holder will then deteITIÚne the amOunt of the monthly payment that would be
sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full
on the Maturity Date at my new interest rate in substantially equal payments. The result of
this calculation will be the new amount of my monthly payment.
MULTISTATE ADJUSTABLE RATE RIDER-LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL)-Form 3138 1/01
Single Family-Fannie Mae UDÜonn Instrument.' (page I of 3)
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(D) Limits on Interest Rate Changes
The interest rate I am required to pay at the fIrSt Change Date will not be greater than
12.50% or less than 2.50%. Thereafter, my interest rate will never be increased or decreased
on any single Change Date by more than ONE percentage points (1.00%) from the rate of
interest I have been paying for the preceding 6 months, My interest rate will never be greater
than 12.50%.
(E) Effective Date of Changes
My new interest rate will become effective on each Change Date. I will pay the amount
of my new monthly payment beginning on the first monthly payment date after the Change
Date until the amount of my monthly payment chang,;:s again.
(F) Notice of Changes
The Note Holder will deliver or mail to me a notice of any changes in my interest rate and
the amount of my monthly payment 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 I may have regarding the notice.
B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
Uniform Covenant 18 of the Security Instrument is amended to read as follows:
Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section
18, "Interest in the Property" means any legal or beneficial interest in the Property, including,
but not limited to, those beneficial interests transferred in 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 the Property or any Interest in the Property is sold or transferred (or
if 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 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
evaluate the intended transferee as if a new loan were being made to the transferee; and (b)
Lender reasonably detennines 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 Lender.
To the extent pennitted by Applicable Law, Lender may charge a reasonable fee as a
condition to Lender's consent to the loan assumption. Lender also may require the transferee
to sign an assumption agreement that is acceptable to Lender and that obligates the transferee
to keep all the promises and agreements made ill the Note and in this Security Instrument.
Borrower will continue to be obligated under the Note and this Security Instrument unless
Lender releases Borrower in writing.
If Lender exercises the option to require immediate payment in full, Lender shall give
Borrower notice of acceleration. The notice shall provide a period of not less than 30 days
from the date the notice is given in accordaìJ.ce with Section 15 within which Borrower must
pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to
the expiration of this period, Lender may invoke any remedies pennitted by this Security
Instrument without further notice or demand on Borrower.
MULTISTATE ADJUSTABLE RATE RIDER--LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL)-Form 3138 I/OI
Single Family-Fannie Mae UßÜorm Instrument (page 2 of 3)
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-00289
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable
Rate Rider.
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MULTISTATE ADJUSTABLE RATE RIDER--LffiOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL)-Form 3138 1/01
Single Family-Fannie Mae Uniform Instrument (page 3 of 3)
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