HomeMy WebLinkAbout913574
51037 (04)
Retul11 To:
ACADEMY MORTGAGE CORPORATION
4055 SOUTH 700 EAST, SUITE 200
SALT LAKE CITY, UTAH 84107
Attn.: SHIPPING DEPT./DOC. CONTROL
Prepared By:
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RECEIVED 11/9/2005 at 3:03 PM
RECEIVING # 913574
BOOK: 604 PAGE: 274
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
¡Space Abul'e This Linc For Recording Data]
DEFlNITIONS
l\10RTGAGE
¡v!IN 1000608-0511002735-3
!\1ERS TELEPHONE: (888) 679-6377
3 /1
Words used in multiple sections of this document are defìned below and other words are defined in
Sections 3, 1], 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document
are also provided in Section] 6.
(A) "Security Iustrumeut" means this document, which is dated Novembel' 3,2005, together with all
Riders to this document.
(B) "Borrower" is .JOHN H HOKANSON AND TERRI L HOKANSON, HUSBAND AND
W I FE. Borrower is the mortgagor under this Security Instrument.
(C) "M ERS" is Mortgage Electronic Registration Systems, Inc. [vIERS is a separate corporation that
is acting solely as a nominee for Lender and Lender's successors and assigns. !\'JERS 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, Ivll 48501·2026, tel.
(888) 679-MERS.
(D) "Lender" is ACADEMY !\'roRTGAGE CORPORATION. Lender is a corporation organized
and existing under the laws of the State of UTAH. Lendcr's address is ,lOSS SOUTH 700 EAST,
SUITE 200, SALT LAKE CITY, UTAH 84107.
(E) "Note" means the promissory note signed by Borrower and dated November 3, 2005. The Note
slates that Borrower owes Lender One Hundred Thirty Five Thousand Two Hundred Sixty And
00/1 00 Dollars (U.S. S 135,260.00) plus interest. Borrower has promised to pay this debt in regular
Periodic Payments and to pay the debt in full not later than Dcccmbcr 1, 2035.
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(F) "Propcrty" means the property that is described bclow 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
cllarges due under the Note, and all sums due under this Security Instrument, plus interest.
(II) "Ridcrs" me¡¡ns all Riders to this Security Instrument that are execllted by Borrower. The
following Riders are to be executed by Bonower [check box as applicable):
[ ) Adjustable Rate Rider
[ ) Balloon Rider
[ ) VA Rider
[ ) Condominium Rider
[ ) Planned Unit Development Rider
[ ) Biweekly Payment Rider
[ ) Second Homc Rider
[) 1-4 P¡¡mily Rider
r ) Other(s) [specify]
(I) "Applicablc Law" means all controlling applicable federal, state and local statutes, regulations,
ordinances and administrative rules and orders (that have thc effect of law) as well as all applicable
final, non-appealable judicial opinions.
(.I) "Community Association Ducs, Fees, and .'\ssessments" 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.
(I() "Elcctronic 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 tellllinal, 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.
(L) "Escrow Items" means those items that are described in Section 3.
(I'd) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds
paid by any third party (other than insurance proceeds paid under the coverages described in Section
5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any
pali of the Propeliy; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or
omissions as to, the value and/or condition of the Property.
(N) "i\lortgage r nsurallce" means insurance protecting Lencler against the nonpayment of, or default
on, the Loan.
(0) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest
under the Note, plus (ii) any amounts under Section 3 of this Security Instrument.
(P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.c. Section 2601 et seC]. ) and
its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fì'om 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 if thc Loan does not quali fy as a
"federally relatedmOJigage loan" under IU;:SP A.
(Q) "Successor ill Intcl'cst of Borrower" means any party that has taken title to the Propcrty,
whether or not that party has assumed Borrower's obligations under the Note and/or this Security
Instrument.
TRANSFER OF RIG/ITS IN THE PROPERTY
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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 BOlTower's covenants and
a,!,,'Teements under this Security Instrument and the Note. for this purpose, Borrower does hereby
mortgage, grant and convey to ¡vIERS (solely as nominee for Lender and Lender's successors and
assigllS) and to the successors and assigns of MERS, with power of sale, the following described
property located in the County [Type or I{ecording Jurisdiction] of LINCOLN (Name of I{ccording
Jurisdiction]:
LOT 1 SLlPPEny lIOLLOW HEIGHTS, LINCOLN COUNTY, WYOMING
ACCORDING TO THAT PLAT FILED OCTOBER ]2,2005 IN THE OFFICE OF TilE
LINCOLN COUNTY CLERK AS PLAT NO. 333-1"
Parcel m Number: 33]829]0000200
which currently has the address of
733 GROVER NORTlI COUNTY RD. 129 [Street]
GROVER rCity], Wyoming 83122 (Zip Code] ("Property Address"):
TOGETHER WITH all the improvements now or hereafter erected on the property, and all
easements, appurtenances, and fìxtures now or hereafter a part of the property, All replacements and
additions shall also be covered by this Security Instrument. All of the foregoing is refeITed to in this
Security Instrument as the "Property," BOlTower understands and agrees that tvlERS holds only legal
title to the interests granted by BmTower in this Security Instrument, but, if necessary to comply with
law or custom, MERS (as nominee for Lender and Lender's sllecessors and assigns) has the right: to
exercise any or all of those interests, including, but not limited to, the 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 BOlTower is lawfully seised of the estate hereby conveyed
and has the right to mortgage, grant and convey thc Property and that the Property is uncncumbered,
except for encumbrances of record. BOITower wammts and will defend generally the title to the
Property against all claims and demands, subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-
uniform covenants with limited variations by jurisdiction to constitute a uniform sccurity instrument
covering real property,
UNIFORM COVENANTS, BOlTower and Lender covenant and agree as follows:
1. Payment of Principal, Intercst, Escrow Itcms, Prcpaymcnt Charges, and Late
Ch.u-ges. ßOITower shall pay when due the principal of, lInd interest on, the debt evidenced by the
Note and any prepayment charges and late charges due under the Note, Borrower shall also pay fumls
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for Escrow Items pursuant to Section 3. Payments due uncler 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 Lendcr unpaid, Lender may require
that any or all subsequent payments due uncleI' 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) certitìed 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 rcceived by Lendcr when received at the location designatcd in the
Note or at such other location as may be designated by Lender in accordance with the notice
provisions in Section 15. Lender may return any payment or partial payment if the payment or partial
payments are insuffìcient to bring the Loan CUITent. Lender may accept any payment or partial
payment insuflìcient to bring the Loan cUITent, 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 to apply
sueh payments at the time such payments are accepted. I f each Periodic Payment is applied as of its
scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hole! such
unapplied funds until Borrower makes payment to bring the Loan CUITent. If BOlTower does not do so
within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. 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 BOITower might have now or in the future
against Lender shall relieve Borrower fhJl11 making payments due under the Note and this Security
Instrument or perfolllling the covenants and agreements secured by this Security Instrument.
2. Application of Payments or Proceeds. Except as otherwise described in this Section 2,
all payments accepted and applied by Lender shall be applied in the following order of priority: (a)
interest due under the Note; (b) prineipal due under the Note; (c) amounts due under Section 3. Such
payments shall be applied to each Periodic Payment in the order in which it became due. Any
remaining amounts shall be applied first to late charges, second to any other amounts due uncler this
Security Instrument, and then to rcduce Ihe principal balance of the Note.
I I' Lender receives a payment from BOlTower for a delmCuent Periodic Payment which
includes a sufjìcient amount to pay any late charge due, the payment may be applied to the delinquent
payment and the late charge. If more than one Periodic Payment is outstanding, Lcnder lllay apply any
payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that,
each payment can be paid in full. To the extent that any excess exists aner the payment is applied to
the full payment of one or more Periodic Payments, sLlch excess may be applied to any lute charges
due. Voluntary prepayments shall be applied lìrst to any prepayment charges and then as described in
the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due
under the Note shall not extend or postpone the clue date, or cbange the amount, of the Periodic
Payments.
3. Funds for Escrow Items. BOlTower shall pay to Lender on the day Periodic Payments are
due uncleI' the Note, until the Note is paid in full, a sum (the "Funcls" ) 10 provide for puyment of
amounts due for: (a) ta.xes and assessments and other items which can uttain priority over this Security
Instrument as a lien or encumbrance on thc Property; (b) leasehold payments or ground rents on the
Property, if any; (c) premiullls for any and all insurance required by Lender under Section 5; and (d)
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 Scction 10. These
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items are called "Escrow Items." A t origination or at any time during the term of tIle 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 sha1l promptly
fU111ish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the
Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all
Escrow Items. Lender may waive BOITower's obligation to pay to Lender Funds for any or all Escrow
Items at any time. Any such waiver may only be in writing. In the event of such waiver, BorrOlver
sha1l pay directly, when and where payable, the amounts due for any Escrow Items for which payment
of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts
evidencing such payment within such time period as Lender may require. Borrower's obligation to
make such payments and to provide receipts shall for a1l purposes be deemed to be a covenant and
agreement contained in this Security Instrument, as the phrase" covenant and ,Igreement" is used in
Section 9. Jf Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower
fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 alld pay
such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such
amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in
accordance with Seetion 15 and, upon such revoeation, BOITower sha1l pay to Lender all Funds, and in
such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in an amount (a) sul'ficient to permit Lender
to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a
lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of
current data and reasonable estimates of expenditures of future Escrow Items or otherwise in
accordance with Applicable Law.
The Funds sha1l be held in an institution whose deposits are insured by a federal agency,
instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured)
or in any Federal Home Loan Bank. Lendcr shall apply the Funds to pay the Escrow Items no later
tlHII1 the time specified under RESPA. Lender shall not charge Borrower for holding and applying the
Funds, annually analyzing the escrow account, or verifying the Escrow I kms, unless Lender pays
Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an
agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall
not be required to pay Borrower any interest or ealllings on the Funds. BOlTower and Lender can
agree in writing, however, that interest shall be paid on the Funds. Lender shall give to BOlTower,
without charge, an annual accounting of the Funds as requJrcd by RESPA.
If there is a surplus of Funds held in esnow, as defined under RESPA, Lendcr shall account
to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds hcld In
escrow, as defined under RESPA, Lender shallnotit'y Borrower as required by RESPA, and BOITOIver
shall pay to Lender the amount neccssary to make up the shortage in accordance with RESPA , but In
no more than 12 monthly payments. Jfthere is a deficiency of Funds held in escrow, as defined under
RESPA, Lender slHlllnotify Borrower as required by RESPA, and BOlTower shall pay to Lender the
amount necessary to make up the deficiency in accordance with RESP;'.., but in no more than 12
monthly payments.
Upon payment in full of all sums secured by this Security Instrumcnt, Lender shall promptly
refund to Borrower any Funds held by Lender.
4. Chargcs; Licns. Borrower shall pay ,11 I ta,>;es, assessments, charges, tines, and
impositions attributable to the Property which can uttain priority over this Security Instrument,
leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees,
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and Assessments, if any. To the extent that these items are Escrow Items, BOITower shall pay them in
the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument
unless BOll'ower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner
acceptable to Lender, but only so long as Borrower is perfolllling such agreement; (b) contests the lien
in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's
opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only
until such proceedings are concluded; or (c) secures from the holder of the lien an agreement
satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any
part of the PropeJ1y is subject to a lien which can attain priority over this Security Instrument, Lender
may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is
given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section
4.
Lender may require BOlTower to pay a one-time charge for a real estate tax veri fication and/or
reporting service used by Lender in connection with this Loan.
5. Property Insurance. BOITower shall keep the improvements now existing or hereafter
erected on the Propel1y insured against loss by fire, hazards included within the term "extended
coverage," and any other hazards including, but not limited to, earthquakes and floods, tor which
Lender requÍl·es insurance. This insurance shall be maintained in the amounts (including deductible
levels) and for the periods that Lender requires. W hat Lender requires pursuant to the preceding
sentences can change during the term of the Loan, The insurance carrier providing the insurance shall
be chosen by BOITower subject to Lender's right to disapprove BOlTower's choice, which right shall
not be exercised unreasonably. Lender may require BOlTower 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. BOlTower 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 hom an objection by BOITower.
I f Borrower fails to maintain any of the coverages described above, Lender may obtain
insurance coverage, at Lender's option and Bon"ower's expense. Lender is under no obligation to
purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but
might or might not protect BOITower, BOITower's equity in the Property, or the contents of the
Property, against any risk, hazard or liability and might provide greater or lesser coverage than was
previously in effect. BOlTower acknowledges that the cost of the insurance coverage so obtained
might significantly exceed the cost of insurance that BOITower could have obtained. Any amounts
disbursed by Lender under this Section 5 shall become addition,d debt of Borrower secured by this
Security Jnstrument. These amounts shall bcar interest at the Note rate from the date of disbursement
and shall be payable, with such interest, upon notice from Lender to BOITower requesting payment.
All insurance policies required by Lender and renewals of sllch policies shall be subject to
Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name
Lender as mortgagee and/or as an additional loss payee, Lender shall have the right to hold the
policies and renewal certificates. If Lender requires, BOlTower shall promptly give to Lender all
receipts of paid premiums and renewal notices, I f Borrower obtains any form otïnsllrance coverage,
not otherwise required by Lender, for damage to, or destnlction of, the Property, such policy shall
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include a standard mortgage clause and shall namc Lender as mortgagce and/or as an additional loss
payee.
In the event of loss, Borrowcr shall give prompt notice to the insurance carrier and Lcnder.
Lender may make proof of loss if not madc promptly by ßorrower. Unless Lender and Borrowcr
otherwise agree in writing, any insurance proceeds, whether or not the undcrlying insurance was
required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair
is economically feasible and Lender's security is not lessened. During such repair and rcstoratlon
period, Lender shall have the right to hold such insurance proceeds until Lender has had an
opportunity to inspect such Prope11y to ensure the work I18S been completed to Lender's satisl~lction,
provided that such inspection shall be undertakcn promptly. Lender may disburse proceeds for the
repairs nnd restoration in a single payment or in a series of progress payments as the work is
completed. Unless an agreement is made in writing or Applicable Law requires interest to bc paid on
such insurance proceeds, Lender shall not be required to pay Borrower any interest or ealllings 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 soil' obligation of Borrower. I f the restor,ltion or repair
is not economically feasible or Lender's security would be lessened, the insurance procccds shall be
applied to the sums secured by this Security Instrument, whether or not thcn due, with the excess, if
any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section
2.
If Borrower abandons the Property, Lender may file, negotiate and settle any available
insurance claim and related matters. I f Borrower does not respond within .30 days to a notice ¡'rom
Lender that the insurance calTier 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 evcnt, or if Lender acquires
the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights
to any insurance proceeds in an amount not to exceed the amounts unpaid 1ll1der the Note or this
Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of
uneamed premiums paid by Borrower) under all insurance policies covering the Property, insofar as
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 or this Security
Instrument, whether or not then due.
6. Occupancy. Bonower shall occupy, establish, and use the Property as Borrower's
principal residence within 60 days afìer the execution of this Security Instrument and shall continue to
occupy the Property as Bonower's principal residence for at least one year alter 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 Protection of the Property; Inspections. Borrower
shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit wnste on
the Propel1y. Whether or not ßOITower is residing in the Property, Borrower shall maintain the
Property in order to prevent the Property from deteriorating or decreasing in value due to its clJndition.
Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible,
Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If
insurance or eondemnntion proceeds are paid in connection with damage to, or the taking of', the
Property, 1301Tower shall be responsible for repairing or restoring the Property only if Lender has
released proceeds for such purposes. Lender may disburse proceeds for the repairs and restorntion in a
single payment or in a series of progress payments as the work is completed. 1 f the insurance or
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condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of
Borrower's obligation for the completion of such repair or restoration.
Lender or its agent may make reasonable entries upon and inspections of the Property. I fit
has reasonable cause, Lender may inspect the interior of the improvemcnts on the Property. Lender
shall give Bon'ower notice at the time of or prior to such an interior inspcction spcci fying such
rcasonable cause.
8. ßorrower's Loan Application. BOITower shaJl be in default if, during the Loan
application process, BOlTower 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 BOITower's
occupancy of the Property as Borrower's principal residence.
9. Protection of Lender's Interest in the Pmperty and Rights Under this Secnrity
InstrllJ11ellt. If (a) BOlTower fails to perform the covcnants and agreements contained in this ScclIIity
Instrument, (b) there is a legal proceeding that 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, tor enforcement of a lien which may attain priority over this Security
Instrument or to enforce laws or regulations), or (c) Borrower has abandonee! the Propel1y, then
Lender may do and pay lor whatever is reasonable or appropriate to protect Lender's interest in the
Property and rights under this Security Instrument, including protecting and/or assessing the value of
the Property, ane! securing ane!/or repairing the Property. Lender's actions can include, but are not
limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b)
appearing in coul1; and (c) paying reasonable attol11eys' fees to protect its interest in the Property
and/or rights under this Security Instrument, including its secured position in a hankruptcy proceeding.
Securing the Property includes, but is not limited to, entering the Property to make repairs, chnnge
locks, replace or board up doors and windows, drain water from pipes, eliminate building or other
code violations or dangerous conditions, and have utilities tumed on or off. Although Lcnder may
take action under this Section 9, Lendcr does not have to do so and is not under any duty or obligation
to do so. It is agreed that Lender incurs no liability for not tnking any or all actions authorized under
this Section 9.
Any amounts disbursed by Lender under this Section 9 shall become additional debt of
Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate 1ì·om
the date of disbursement and shall be payable, with such interest, upon notice from Lender to
BOITower requesting payment.
If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of
the lease. If BOITOIver acquires fee title to the Property, the leasehold and the fee title shall not merge
unless Lender agrees to the merger in writing.
10. JVrortgage Insurance. I I' Lender required tvlortgage Insurance as a condition of mnking
the Loan, B01Tower shall pay the premiums required to maintain the rvlortgage Insurance in enect. [f~
for any reason, the Ivlortgage Insurance coverage required by Lender ceases to be available from the
Inortgage insurer that previously provided such insurance and Borrower was required to make
separately designated payments toward the premiullls for l'vlortgage Insurance, Borrower shall pay the
premiums required to obtain coverage substantially equivalent to the IVlortgage Insurance previously in
effect, at a cost substantially equivalent to the cost to Borrower of the M011gage [nsur~lnce previously
in effect, from an altemate mortgage insurer selected by Lender. If substantially equivalent rvlortgage
Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the
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separately designated payments that were due when the insurance coverage ceased to be in effect.
Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of !\Iortgage
Insurance. Such loss reserve shall be non-refundabk, notwithstanding the fact that the Loan is
ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on
such loss reserve. Lender can no longer require loss reserve payments if ¡\'Iortgage Insurance coverage
(in the amount and for the period that Lender requires) provided by an insurer selected by Lender
again becomes available, is obtained, and Lender requires separately designaled payments towarcllhe
premiums for IvIortgage Insurance. If Lender r,equired 1\10¡igage Jnsurance as a condition of m~lking
the Loan and Borrower was required to make separately designated payments toward the premiums for
IVlortgage Insurance, Borrower sha1l pay the premiums required to maintain 1\1ortgage I nsunll1ce in
elTect, or to provide a non-refundable Joss reserve, until Lender's requirement for tvlortgage Insurance
ends in accordance with any written ab'reement between BO]TOWer and L.ender providing j~)r such
termination or until termination is required by AppJicable Law. Nothing in this Section 10 affects
Borrower's obligation to pay interest at the rate provided in the Note.
Mortgage rnsurance reimburses Lender (or any entity that purchases the Note) for ccrtain
losses it may incur if BOITower does not repay the Loan as agreed. Borrower is not a party to the
I\:JOligage Insurance.
¡vlortgage insurers evaluate their total risk on all such insurance in force from time to rime,
and may enter into 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 the
other party (or parties) to these agreements. These agreements may require thc mortgage insurcr to
make payments using any source of funds that the mortgage insurer may have al'ai lab Ie (which may
include funds obtained tì·om Mortgage Insurance premiums).
r\S a result of these agreements, Lender, any pllrchaser of the Note, another insurer, any
reinsurer, any other entity, or any affìJiate of any of the foregoing, may receil'e (directly or indirectly)
amounts that derive from (or might be characterized as) a portion of BOITower's payments for
Mortgage Insurance, in exchange for sharing or modi fying the mortgage insurer's risk, or reducing
losses. If such agrecment provides that an aflìliate of Lender takes a share of the insurer's risk in
exchange for a shure of the premiums paid to the insurer, the HlTangement is onen tellncd "captive
reinsurnnce." further:
(a) An)' such agreements will not affect the amollnts that Borrower has agreed to pay
for Mortgage Insurance, or any other terms of the Loan. Such agreements will uot increase the
amollnt Borrower will owe for Mortgage Insllrance, and the)' will not entitle Borrower to any
refund.
(b) Auy such agreements will not affect the rights Borrower has - if allY - with respect to
the Mortgage Insurance IInder the Homeowners Protection Act of ]998 or any other law. These
rights may include the right to receive certain disdosllres, to request alld obtain cancellation of
the J\lortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to
receive a refund of any Mortgage Insurance premiums that were unearned at the time of sllch
cancellation or termination.
11. Assignment of Miscellaneous Proceeds; Forfeiture. All fvliscellaneous Proceeds are
hereby assigned to and shall be paid to Lender.
II' the Property is damaged, such ¡vliscellaneous Proceeds shall bc applied to I·estoration or
repair of the Property, if 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
IVliscelJaneous Proceeds until Lender has had an opportunity to inspect such Property to cnSlllT the
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work has been completed to Lender's satisfaction, provided thnt such inspection shall be undertaken
promptly. Lender may pay for the repairs and restoration in a single disbursement or ill a series of
progress payments as the work is comp1etecL Unless nn agreement is made in writing or Applici¡ble
Law requires interest to be paid on such Miscelhllleous Proceeds, Lencler shall not be required to pay
Borrower any interest or earnings on such fvliscellaneous Proceeds. If the restoration or repair is not
economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be
applied to the sums secured by this Security lnstrument, whether or not then due, with the excess, if
any, paid to Bonower. Such Miscellaneous Proceeds shall be applied in the order provided for in
Section 2.
In the event of a total taking, destruction, or loss in ndue of the Property, the i'vliscellnneous
Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due,
with the excess, if any, paid to Borrower.
In the event of a partial taking, destruction, or loss in vnlue of thc Property in which the fnir
mnrket value of the Property immediately before the partial taking, destruction, or loss in v¡due is
equal to or greater than the amount of the slims svcurecl by this Security Jnstrument immediately
before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in
writing, the sums secured by this Sccuritylnstrument shall be reduced by the amount of the
1\!iscellaneous Proceeds multiplicd by the following fraction: (a) the total nmount of the sums secured
immediately before the partial tnking, destruction, or loss in value divided by (b) the fair market value
oflhe Property immediately before the partial taking, destruction, or loss in \'alue. Any balance shall
be paid to Borrower.
In the event of a parlial taking, destruction, or loss in \'alue of the Property in which the fair
market value of the Property immediately before the partial taking, dcslruction, or loss in vnluc is less
tlHII1 the amount of the sums secured immediately before the partial taking, destruction, or loss in
value, unless Borrower and Lender othenvise agree in writing, the fvliscellaneous Proceeds shall be
applied to the sums secured by this Security Instnlment whether or not the sums are then due.
If the Property is abandoned by BOITo\Ver, or if, aftcr notice by Lender to Borrower that the
Opposing Party (as defined in the next sentence) offers 10 make an award to settle a claim for
damages, Bonower fails to respond to Lender within 30 days aner the date the notice is givcn, Lender
is aulhorized to collect nnd apply the Miscellaneous Procecds either to restorntion or repair of the
Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing
Parly" means the third party that owes BOITower 1\1 iscellaneous Proceeds or the party against whom
Borrower has a right of action in regard to Miscellaneous Proceeds.
Borrowcr shall be in default if any action or proceeding, whether civil or criminal, is begun
that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of
Lcnder's interest in the Property or rights under tllis Security Instrument. Borrower can curc such a
default and, if acceleration has occurrcd, reinstate as provided in Section 19, by causing the action or
proceeding to be dismissed with a ruling that, in Lender's judgment, precludcs forfeiture of the
Propel1y or other material impairment of Lender's interest in the Property or rights undcr this Security
Instrument. The proceeds of any award or claim for damages Ihat are attributable to the impairment of
Lender's interest in the Property are hereby assiglled and shall be paid to Lender.
All Miscellaneous Proceeds that are not applied to restoration or repair of thc Property shall
be applied in the order provided for in Section 2.
12. Borrower Not Relcascd; Forbcarancc By Lcndcr Not a \Vaivcr. Extension of the
time for payment or modification of amortization of the sums secured by this Security Instrument
grnnted by Lender to Borrower or any Successor in Jnterest of Borrower shall not operate to release
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the liability of BOlTower or any Successors in Interest of BOlTower. Lender shall not be required to
commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for
payment or olherwise modify amortization of the sums securecJ by this Sccurity Instrument by reason
of any demand made by Ihe original Borrower or any Successors in Interest of Borrower. Any
forbearance by Lender in exercising any right or remedy including, without limitation, Lender's
acceptance of payments from Ihird persons, entities or Successors in Interest 01' BOlTower or in
amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any ¡·ight or
remed y.
13. .Joint and Several Liability; Co-signers; Successor s :Ind A.ssigns ßoun!!. BOITower
covenants and agrees that BOlTower's obligations and liability shall bc joint and severaL However,
any BOlTower who co-signs this Security Instrument but does not execute Ihe Note (a "co-signer"): (a)
is co-signing Ihis Security Instrument only to m011gage, grant ancJ convey the co-signer's interest in
the Properly under the terms of this Security Instrument; (b) is not personally obligated to pay the
sums secured by this Security Instrument; and (c) agrees that Lender and uny other l301Tower can agTce
to extend, modify, forbear or make any accommodations with regard to the terms of this Security
Instrument or the Note without the co-signer's consent.
Subject to the pwvisions of Section 18, any Successor in Interest of BOlTower who assumes
BOlTowel·'s obligations under this Security Instrument in writing, and is approved by Lendel·, shall
obtain all of Borrower's rights and benefits under this Security Instrument. BOlTower shall not be
released fì·om BOITower's obligations and liability under this Security Instrument unless Lcnder agrees
to such release in writing. The covenants and agreements of this Security Instrumenl shall bind
(except as provided in Section 20) and benefit the successors and assigns of Lender.
14. Loan Charges. Lender may charge BOlTower fees for services performed in connection
with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights
under this Security Instrument, including, but not limited to, attollleys' fees, property inspection and
valuation fees. In regard to any other tees, the absence of express authorily in this Security Instrument
to charge a specific fee to Borrower shall not be construed as a prohibition on the cbarging of such fee.
Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable
Law.
I r 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 conncction with the
Loan exceed the permitted limits. thèn: (a) any such loan clwrge shall be reduced by the ~¡mount
necessary to reduce the charge [" the permitted limit; and (b) any sums already èollccted fì·om
Borrower which exceeded pellllitted limits will be rcfunded to Borrower. Lender may choose to make
this refund by reducing the principal owed under the Note or by making a direct payment to Borrower.
It' a refund reduces principal, tbe reduction will be treated as a partial prepayment without nny
prepayment charge (wbether or not a prepayment charge is provided tor undèr the Note). Borrower's
acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any
right of action Borrower might have arising out of such overcharge.
1 S. Notices. A 11 notices given by ßorrower or Lender in connection with this Security
Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument
shall be deemed to have been given to BOITower when mailed by first class mail or when actually
delivered to Borrower's notice address if sent by other means. Notice to anyone Borrower sball
constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice
address shall be the Property Addl·ess unless Borrower has designated a substitute notice address by
notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. I f Lender
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specifies ¡j procedure for reporting BOITower'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 anyone time. Any notice to Lender shall be given by dchvering it or
by mailing it by first class mail to Lender's address stated herein unless Lender has designated another
address by notice to Borrower. Any notice in connection with this Security Instrument shall not be
deemed to have been given to Lender until actually received by Lender. 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.
16. Governing Law; Severability; Rules of Construction. This Security Instrument shall
be governed by federal law and the Jaw of the jurisdiction in which the Property is located. All rights
and obligations contained in this Security Instrument are subject to any requirements and limitations of
Applicable Law. Applicable Law might eXplicitly or implicitly allow the partics to agree by contract
or it might be silent, but such silence shall not be construed as a prohibition against agreement by
contract. In the event that any provision or clause of this Security Instrument or the Note contlicts
with Applicable Law, such contliet shall not affect other provisions of this Security lnstrument or the
Note which can be given effect without the conflicting provision.
As used in this Security Instrument: (a) words of the masculine gender shall mean and
include cOlTesponding neuter words or words of the feminine gender; (b) words in the singular shall
mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any
obligation to take any action.
17. Borrower's Copy. B01Tower shall be given one copy of the Note and of this Security
Instrument.
18. Trausfer of the Property or a Beneticial luterest 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 tl,msfer of t ¡tIe by Bonower
at a future date to a purchaser.
If all or any part of the Propel1y or any Interest in the Property is sold or transferred (or if
BOlTower 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 exerciscd by Lender if such exercise is
prohibited by Applicable Law.
I I' Lender exercises this option, Lcnder shall gi ve Borrower notice of accelcration. The notice
shall provide a period of not less than 30 days from the date the notice is gi ven in accordance with
Section 15 within which Borrower must pay all sums secured by this Security Instrument. II' Borrower
f,li/s to pay these StU1lS prior to the expiration of this period, Lender may invoke any remedies
permitted by this Security Instrument without further notice or demand on Borrower.
19. Borrower's Right to Reinstate After Accl'leration. I f Borrower meets certain
conditions, Borrower shall have the right to have cnlorcement of this Security lnstrumcnt discontinucd
at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of
sale contained in this Security Instrument; (b) sllch other period as Applicable Law might specify for
the termination of Borrower's right to reinstate; or (e) entry of a judgment enforcing this Security
Instrument. Those conditions are that Borrower: (a) pays Lender all SUI1lS whieh then would be due
under this Security Instrument and the Note as ifno acceleration had occurred; (b) cures any default of
any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security
Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation
WYO~IlNG-Single Fall1ily- Fannie i\lae/Freddie i\lnc IINIFOn:\IINSTRlIJ\IENT WITI! ~IERS Form 3051 1/01
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fees, and other fees incuITed for the purpose of protecting Lcnder's interest in the Property and rights
lll1der this Security Jnstrumcnt; and (d) takes such action as Lendcr may reasonably require to assure
that Lender's interest in the Property and rights under this Security [nstrument, and norrower's
obligation to pay the SlIms secured by this Security Jnstrument, shall continue unchanged. lender
may require that Borrower pay such reinstatement sums and expenses in one or more of the following
forms, as selected by Lender: (a) cash; (b) money order; (c) ce11ified 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. Upon
reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully
effective as ifno acceleration had occurred. However, this right to reinstate shall not apply in ¡hc case
of acceleration under Section 18.
20. Sale of Note; Change of Loan Serl'icer; Notice of Grievance. The Note or a partial
interest in the Note (together with this Security Instrument) can be sold one or more timcs without
prior notice to Borrower. A sale might result in a change in Ihe entity (known as the "Loan Servicer" )
that collects Periodic Payments due under the 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 unrelated to a side 01' ¡he Note. I I' there
is a change üfthe Loan Servicer, Borrower will be given written notice of the changc which will state
the name and address of the new Loan Servicer, the address to which payments should be maclc ancl
any other information RESPA requires in connection with a notice of transfer ofservicmg, tfthe Note
is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the
m0l1gage loan servicing obligations to Borrower will remain with the Loan Servicer or be transíclTec!
to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by
the Note purchaser.
Neither BOITower nor Lender may commence, join, or be joined to any judicial action (as
either an individual litigant or the member of a class) that arises tì·om the other party's actions pursuant
to this Security Jnstrument or that alleges tlUlt the other party has breached any provision of, or any
duty owed by reason of, this Security Instrument, until such Bon"ower or Lender has notJ1ìcd the other
party (with such notice given in compliance with the requirements of Section 15) of such ~d]eged
bl·each and afforded the other party hereto a reasonable period after the giving of such notice to takc
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 purposes of this par~lgraph. The
notice of acceleration and 0pP0l1unity to cure given to BOITower pursuant to Section 22 and the notice
of acceleration given to Borrower pursuant to Section] 8 shall be deemed to satisfy tlle notice and
opportunity to take cOlTective action provisions of this Section 20.
11. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are
those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmcntal
Law and the following substances: gasoline, kerosene, other tlammable or toxic petwleum products,
toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and
radioactive materials; (b) "Environmental Law" means federal laws and lall's of the jurisdiction where
the Property is located that relate to health, safely or environmental protection; (c) "Environmental
Cleanup" includes any response action, remedial action, or removal action, as defllled in
Environmental Law; and (d) an "Environmental Condition" means a condition that can cause.
contribute to, or otherwise trigger an Environmental Cleanup.
Borrower shall not cause or permit the presence, use, disposal, storage, or release of nny
Hazardous SUbSUlIlceS, or threaten to release any Hazarduus Substances, on or in the I'I·operty.
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Bonower shall not do, nor allow anyone else to do, anything affecting the Propeliy (a) that is in
violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due
to the presence, use, or release of a Hazardous Substance, creates a condition that adversely alTects the
value of the Property. The preceding t\\'o senknces shall not apply to thc presence, USe, or stontge on
the Property of small quantities of Hazardous Substances ¡hat are generally recogllized to be
appropriate to normal residential uses and to maintenance of the Property (including, but not limited
to, hazardous substances in consumer products).
Bonower shall promptly give Lender written notice of (a) any investigation, cl.¡im, demand,
lawsuit or other action by any governmental or regu]~¡tory agency or private party invoh'ing the
Property and any Hazardous Substance or Environmental Law of which Borrower has ~Ictual
knowledge, (b) any Environmental Condition, including but not limited to, any spilling, Ic.¡king,
discharge, release or threat of release of any Hazardous Substanee, and (e) any condition caused by the
presence, use or release of a Hazardous Substance which adversely affects the value of the Property,
If BOITower learns, or is notified by any governmental or regulatory aLlthol·ity, or any private party,
that any removal or olher remediation of any Hazardous Substance affecting the Property is necessdl·y,
Borrower shall promptly take all necessary remedial actions in accordance with Environmcntal Law.
Nothing herein shall create any obligation on Lender for an Environmental Cleanup.
NON-UNIFORrvr COVENANTS. BOITower and Lender fUliher covenant and agree as
follows:
22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration
following BOITowel"s breach of any covenant or agreement in this Secnrity Instrument (but not
prior to acceleration under Sel'tion ]8 unless Applicable Law provides otherwise). The uo(iee
shall specifY: (a) the defanlt; (b) the action required to cure the default; (c) a date, not less (han
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
accelel'ation of the sums secuI'ed by this SecuJ'Îty Instrument and sale of the Property. The
notice shall further inform Borrower of the right to reinstate after acceleration aud the right to
bJ'Îng a court action to assert the non-existencc of a default or any other defense of Borrower to
acceleration and sale. If the defanlt is not cured on or before the date specified in the notice,
Lender at its option may require immediate payment in full of all SIlins secured by this Secnrity
Instrument without further demand and may invoke the power of sale :1I1d any other remedies
permitted by Applicable Law. Lender shall be entitled to collect all expenses i1lL'urred in
pnrsuing the remedies provided in this Section 22, including, but not limited to, reasonable
attorneys' fees and costs of title evidence.
If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to
Borrower and to the per son in possession of the Property, if different, in accordance with
Applicable Law. Lender shall give notiee of the sale to Borrower in the manner provided in
Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner
prescribed by Applicable Law. Lender or its designee may purchase the Property at :1I1Y sale.
The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale,
inclnding, 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.
23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall
release this Security Instrument. B01Tower shall pay any recordation costs. Lender may charge
WYOi\IING,Single Falllily- Fannie Mae/Freddie !\lac UNIFORI\IINSTRUì\lENT WITH !\lEnS F(JlMII1 _ 051 1/01
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services rendered and the charging of the fee is permitleclunder Applicable Law.
24. \Vaivers. BOITower releases anclwaives alli·ights under and by virtue of the homestead
exemption laws of Wyoming.
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BY SIGNING BELOW, BOITower acccpts and agrees to the ten11S and covenants contained in
this Security Instrument and in any Rider executed by BOITower and recorded with it.
Witnesses:
(,:r!~;H(t~{~-
( Seal)
-Borrower
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(Seal)
-Borrowcr
(Seal)
-I3Drrowcr
(Scal)
- Borrower
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Teton
COllnty ss:
The foregoing instrument was acknowledged before me this
,JOliN 11 HOKANSON and TERRI L HOKANSON
11/3/2005
!vI)' Commission Expires: 9/12/2007
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LAURIE COE - NOTARY PUBLIC
,;r?:, State of
County 01 ~~0~ Wyoming
Teton ~'P
M CommissIon ExpIres 9/12/2007
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WYOMING-Single FUlllily- Fannie ì\Iae/Frcddie ì\lac UNIFORì\IINSTRUì\IENT WITlll\IERS FOJnn ) (J.5 I 1/01
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