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Home My WebLink About913621 \ I~(',turn To: FREMONT INVESTMENT & LOAN P.O. BOX 34078 FULLERTON, CA 92834-34078 nn,' 70 i.- "','! 1.;,.<) I] ["--[:7" \=.:J . RECEIVED 11/10/2005 at 4:10 PM RECEIVING # 913621 BOOK: 604 PAGE: 484 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Prepared By: BARBARA LICON 1000286451 [Space Ahove This Line For Recording Data] MOI~TGAGE NUN 1001944-1000286451-5 DEFINITIONS Words used in multiple sections of this document arc defined below and other words me defined in Sections 3, ] I, 13, 18,20 and 21. Certain rules regarding Ú1e usage of words used in ú1Ìs document me also provided in Section 16. (A) "Security Instrument" means ú1Ìs document, which is dated October 28, 2005 together with all Riders to ú1Ìs document. (B) "Borrower" is JEANI EM. MALONE BorTOwer is Úle mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting soJcly as a nominee for Lender and Lender's successors and assigns. l\1ERS is the mortgagee under this Security Instrument. MERS is organized and existing under Úle Jaws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501·2026, tel. (888) 679-MERS. 1 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS ~ -6A(WY) (0005) ¡jr./ pa-ge ~ of 15 Initials:rk_ VMP MORTGAGE FORMS, (800)521-7291 Form 3051 1/01 1111111111111111111111111111111111111111111111111111111111111/1/11/111/111/ ;fPR~4~~~~i;~~~~~~~~~~~f~~'f' 1~~.~]i:i~4:: ,~+~\:;,tI~~~rJ~~:~~~;':~" i:;4':~1~"';~¡¡lh" :~. > M. ~ )~tA~~i"~j ·~'¡.ª~t> \h\~~~~.,,~.l:;tf;1Y ry. ,', I! .; ^~::~f-,)~~~,~t~~ <~~ ,~~: 1:~.;:J' ;c.~~ ~;:;'r 1,-' Ft',:I> ~ < 17 oJ IJ ' . "¡LA) l¡3tf , .. [)",~ <, '-r (h' ¡I(..,¡..L 1.1 '--~;..:..~,'..~U (D) "Lender" is FREMONT INVESTMENT & LOAN r.: !Î. (1 1 8 r::: \.' 'd .Ill J LemJer is a CORPORATION organized and existing under the Iaws of CA L I FoRN I A Lender's address is 2727 E IMPERIAL HIGHWAY, SREA CA 92821 (E) "Note" means the promissory note signed by Borrower and dated October 28 I 2005 The Note states that Borrower owes Lender One Hund red Th i rty-E i ght Thousand J Five Hundred and No/100 ---------------------------------- DoUars (U.S. $ 138,500.00) pIus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in fuU not Iater than November 1, 2035 (F) "Property" means the property Ùult is described below under the heading "Tnmsfer of Rights in Ùle Property." (G) "Loan" means the debt evidenced by Ùle Note, plus interest, any prepayment charges and Iate charges due under the Note, and aU sums due under this Security Instrument, plus interest. (H) "Riders" means aU Riders to ù1Îs Security Instrument Ùlat are executed by Borrower. The foUowing Riders are to be executed by Borrower [check box as applicable]: [XJ Adjustable Rate Rider D Bal100n Rider D VA Rider D Condominium Rider D Planned Unit Development Rider D Biweekly Payment Rider D Second Home Rider D 1-4 Family Rider D OÙ1er(s) [specify] (I) "Applicable Law" means aU controUing applicable federal, sUlte and local statutes, regulations, ordinances and administrative rules and orders (tlJat have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means al1 dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other Ùum 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 auù10rize a financial institution to debit or credit an account. Such term includes, but is not Iimited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by te1cphone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means tl10se items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (oÙler Ùlan insurance proceeds paid under the coverages described in Section 5) for: (i) darn age to, or destruction of, Ùle Property; (ii) condemnation or oÙler taking of all or any part of Ù1C Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against tlle nonpayment of, or default on, tl1e Loan. (0) "Periodic Payment" means Ù1e regularly scheduled amount due for (i) principal and interest under Ùle Note, plus (ii) any arnounts under Section 3 of this Security Instrument. (P) "RESPA" means Ù1e Real Estate SetÙement Procedures Act (12 U.S.c. Section 2601 et seq.) and its implementing regulation, Regulation X (24 c.F.R. Part 35(0), 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 ù1Îs Security Instrument, "RESP A" refers to all requirements and restrictions Ùlat are imposed in regard to a "federally related mortgage loan" even if Ù1e Loan does not qualify as a "federally related mortgage 10ar1" under RESP A. C -6A(WY) (0005) ® Page 2 of 15 '''''''''1;; Form 3051 1/01 <.j "'lc~ i G:2:t !~\ (\. ,1 )¿ '"' '\) j~v 0 (Q) "Successor in Interest of Borrower" means any party that has taken title to Ù1e Property, wheù1er or not that party has assumed Borrower's obligations under the Note and/or this Security InstIument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of Ù1e Lmm, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and ù1e Note. For ù1is purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) ,md to the successors and assigns of MERS, with power of sale, the following described property located in the County of LINCOLN [Type of Recording Jurisdictionl [Name of Recording Jurisdiction] LOT 1 OF BEAR HOLLOW TWIN HOMES SUBDIVISION, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT NO. 393 FILED JUNE 20, 2000 AS INSTRUMENT NO. 866535 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. Parcel ID Number: 34192440026200 320 BEAR HOLLOW CIRCLE THAYNE ("Property Address"): which currently has ùle address of [Slreet] [Cily] ,Wyoming 83127 [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 Ù1e property. A 11 replacements and additions shall also be covered by this Security Instrument. All of ù1e foregoing is referred to in this Security InstIument as Ù1e "Property." Borrower understands ,md agrees ùu1L MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply wiù1 law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has Ùle right: to exercise ,my or all of those interests, including, but not limited to, the right to foreclose and sell Ùle Property; amI 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 mortgage, grant and convey ù1e Property and ùwt the Property is unencumbered, except for encumbrances of record. Borrower w<UTants and will defend generally ù1e tiÙe to Ù1e Property against an claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covemmts for naLional IJse and non-uniform covenants wiù1 limited variations by jurisdicLion to constitute a uniform security instrument covering real property. ~ -6A(WY) (0005) @ P ag e 3 of 15 :tÍt 'nilia'Sr Form 3051 1/01 ( ( r .')¡ '1' G..... . (' r\ (~ ¿. Q 1"'1 \~. ',.J _,; ~ V ¡ UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shaH also pay funds for Escrow Items pursmmt to Section 3. Payments due under the Note and this Security Instrument shaH 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 tJ1e location designated in tJ1e Note or at such otl1er location as may be designated by Lender in accordance with tl1e notice provisions in Section IS. 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 Lo<U) current, without waiver of any rights hereunder or prejudice to its rights to rcruse such payment or partial payments in the future, but Lender is not obligated to apply such payments at tl1e 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 Borrower makes payml~nt to bring the Loan CllITenl. If Borrower does not do so witl1in a reasonable period of time, Lender shall eitl1er apply such funds or return tl1em to Borrower. If not applied earlier, such funds will be applied to tl1e outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in tl1C future against Lender shall relieve Borrower from making payments due under tl1e Note and this Security Instrument or performing tl1e covemmts and agreements secured by tl1is Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted ,md applied by Lender shall be applied in tl1e following orcler of priority: (a) interest due under the Note; (b) principal due under tl1e Note; (c) amounts clue under Section 3. Such payments shaU be applied to each Periodic Payment in the orcler in which it became clue. Any remaining amounts shall be applied first to late charges, second to any otl1er amounts due under tl1is Security Instrument, and then to reduce the principal balance of tl1e Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, tl1e payment may be applied to the delinquent payment and tl1e late charge. If more tlUlI! one Periodic Payment is outstanding, Lender may apply any payment received from BOJTower to the repayment of tl1e Periodic Payments if, and to tl1e extent tl1at, each payment can be paid in full. To tl1e extent tlJat any excess exists after the payment is applied to the f\1l1 payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shaU be applied first to any prepayment charges and tl1en as described in the Note. Any application of paymenL~, insurance proceeds, or Miscellaneous Proceeds to principal duc under the Note shan not extend or postpone the due date, or change tl1e amount, of tl1e Periodic Payment~. 3. Funds for Escrow Items. Borrower shall pay to Lender on tl1e day Periodic Payments are due under tl1e Note, until the Note is paid in fu11, a sum (tlle "Funds") to provide for payment of amounts clue for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbnmce on the Property; (b) leasehold payments or ground rents on tl1e Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any smns payable by Borrower to Lender in lieu of tl1e payment of Mortgage Insurance premiums in accordance with tl1e provisions of Section 10. These items are caned "Escrow Items." At origination or at any time during tl1e term of the Loan, Lender may require that Community AssocÙllion Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unJess Lender waives Borrower's obligation to pay tl1e Funds for any or all Escrow Items. Lender may w,úve Borrower'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, Borrower shall pay directly, when and where payable, tl1e amounts due for any Escrow Items for which payment of cD -6A(WY) (0005) @ Paga 4 of 15 .. ~;;j Initials :tl:::.L--- Form 3051 1/01 1,.( I" ~f' ",-J~ ;'r; i,1 ,).~ ~ll~4;L "-.~- ~...J ( ,- 0' (') t.... ; r: \ ; b.)( 0" \a' \.1 \.... ..... V 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 obligaLÎon to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, ,md Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall ù1en be obligated under SecLÎon 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or aU Escrow Items at any LÎme by a noLÎcc given in accordance wiùl Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, Ù1a! are Ù1en required under ù1is Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at ù1e time specified under RESPA, and (b) not to exceed ù1e maximum amount a lender can require under RESP A. Lender shan estimate Ù1e amount of Funds due on Ù1e basis of current data and reasonable esLÎmates of expenditures of future Escrow Items or où1erwise in accordance with Applicable Law. The Funds shall be held in an instituLÎon whose deposits arc insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an insLÎtution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shaH apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender sh,ùl not charge Borrower for holding and applying the Funds, annuaHy analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in wriLÎng or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower (lJ1(1 Lender can agree in writing, however, Ù1at interest shall be paid on ù1e Funds. Lender shaH give to Borrower, wiLhout charge, an annual accounLÎng of ùle Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shaH account to Borrower for the excess funds in accorchmce wiùl RESPA. If Ùlere is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shaU pay to Lender ù1e amount necessary to make up the shortage in accordance with RESP A, but in no more ÙHll1 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESP A, Lender stuùl notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up Ù1e deficiency in accordance with RESPA, but in no more than 12 monù1ly payments. Upon payment in full of all Sluns secured by ùlÍs Security Instrument, Lender shaH promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shaH pay all taxes, assessments, charges, fines, and impositions attributable to Ù1e Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, ,md Community Association Dues, Fees, and AssessmenL~, if any. To the extent ùwt ù1ese items are Escrow Items, Borrower shaH pay them in the manner providecl ill Section 3. Borrower shall promptly discharge any lien which has priority over ù1Ìs Security Instrument unless Borrower: (a) agrees in writing to the payment of Ù1e obligation secured by Ù1e lien in a manner accept<lble to Lender, but only so long as Borrower is performing sllch agreement; (b) contests Ù1e 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 ¡he 1ien while ¡hose proceedings arc pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreenlent satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of ù1e Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Wiù1Ïn 10 <mÞ. -6A(WY) (0005) ® P ag 8 5 of 15 ,...-íj Inilials: (/CI t' Form 3051 1/01 \ I "r~, (f' ~,)/~ " ",' ··h e;l'.!II.. ;, (' .~".-) ¿~:....! ,....._j "lJ. ( .;1>J (' (\ n.~ e, n , '., ~. Û '...) \.. \./ \.':¡ V 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 Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection wiù1 ù1is Loan. 5. Property Insurance. Borrower shall keep ù1e improvements now existing or hereafter erected on Ù1e Property insured against loss by fire, hazards included wiù1Ín the term "extended coverage," and any oùler hazards including, but not limited to, earthquakes ,md floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for Ù1e periods Ù1<1t Lender requires. What Lender requires pursuant to the preceding sentences can change during Ù1e term of ù1e Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with ù1is Lo,m, eiù1er: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for Hood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. BOITower shall also be responsible for Ù1e payment of any fees imposed by Ù1e Federal Emergency Management Agency in connection WiÙ1 the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of ù1e coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in Ù1e Property, or ù1e contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges ùwt ù1e cost of ùle insurance coverage so obtained might significantly exceed Ù1e cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at Ù1e Note rate from Ù1e date of disbursement and shall be payable, wiùl such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not oÙlerwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall mune Lender as mortgagee and/or as an additional loss payee. In ùle event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower où1erwise agree in writing, any insurance proceeds, wheù¡er or not ùle underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if ùle restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right [0 hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure ù1e work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for ùle repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless ,m agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or oÙ1er third parties, retained by Borrower shall not be paid out of ù1e insurance proceeds and shall be Ùle sole obligation of Borrower. If ùle restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to o -6A(WY) (0005) @ Page 6 of 15 Initials: /1 etl! / Form 3051 1/01 f ,.. Î·· .~\ 0 . !. (~ I). ~., ' '.' ,) : ... v -)1.~ Ä4 ...L Lhe sums secured by Lhis Security Instrument, whether or not then due, with ùle excess, if any, paid to Borrower. Such insurance proceeds shall be applied in ù1e order provided for in Section 2. If Borrower ab¡mdons the Properly, Lender may file, negotiate amI settle any available insurance claim and related matters. If Borrower does not respond wiù1in 30 days to a notice from Lender Ú1at ù1e insurance carrier has offered to settle a claim, ùlen Lender may negotiate ¡md settle Úll~ claim. The 30-day period will begin when ù1e notice is given. In eiù¡er event, or if Lender acquires ùle Property under Section 22 or oLherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed ù1e aJllOlmt, unpaid under Lhe Note or ùlis Security Instrument, and (b) any other of BOI1'ower's rights (oùler than Lhe right to any refund of une¡rrned premiums paid by Borrower) under all insurance policies covering ùle Property, insofar as such rights are applicable to the coverage of the Property. Lender may use ù1e insurance proceeds eiLher to repair or restore the Property or to pay amounts unpaid under ù1e Note or this Security Instrument, wheùler or not Ú1en due. 6. Occupancy. Borrower shall occupy, establish, and IIse the Property as Borrower's principal residence within 60 days after ù1e execution of ùlis Security Instrument aJld shall continue to occupy the Property as Borrower's principal residence for at least one year after ù1e date of OCCUpaJ1Cy, unless Lender oÙ1erwise agrees in writing, which consent shall not be unreasonably wiùlhe]d, or un]ess extenuating circumstanccs 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 Ùle Property to deteriorate or commit waste on the Property. Wheù1er or not Borrower is residing in Úle Property, Borrower shall maintain the Property in order to prevent Lhe Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair ùle Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds me paid in connection wiu1 damage to, or the taking of, Lhe Property, Borrower shall be responsible for repairing or restoring ùle Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for Lhe repairs and restoration in a single payment or in a series of progress payments as the work is completed. If Lhe insurance or condemnation proceeds me not sufficient to repair or restore ù1e ProperlY, Borrower is not relieved of Borrower's obligation for Úle completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of Lhe Property. If it has reasonable cause, Lender may inspect ùle inlerior of ù1e improvements on the Property. Lender shall give Borrower notice at Lhe ¡jme of or prior lo such an inlerior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at ùle direction of Borrower or wiLh Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or sUHements to Lender (or failed to provide Lender wiLh material information) in connection \ViLh the Loan. Material representations include, but me not ]imited to, representations concerning Borrower's occupancy of Ùle Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in ùlis Security Instrument, (b) thcre is a legal proceeding Ú1al might significantly a[fecl Lender's interest in Ule Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned ù1e Property, Lhen Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under ùlis Security Instrument, including protecting and/or assessing the value of ù1e Property, and securing and/or repairing Lhe Property. Lender's actions can include, but are not limited to: (a) paying aJlY sums secured by a lien which has priority over ù1is Security Instrument; (b) appeming in court; and (c) paying reasonable <a -6A(WY) (0005) @ ~ Initials: j/¿L j' Form 3051 1/01 Page 7 of 15 \ \, L'··);"~.' t};í.,;~_L f' !\ n 1 n .<; \., _) \..' l;¡ ,,:,J JJ.. attorneys' fees to protect its interest in Ù1e Property amI/or rights under ùlÍs Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, eIllering 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, and have utilities turned on or off. Although Lender may take action under ùlÍs Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed Ùlat Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under tllÍs Section 9 shall become additional debt of Borrower secured by ùlÎs Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If tl1Ís Security Instrument is on a leasehold, Borrower shall comply with all the provisions of tlle ]ease. If Borrower acquires fee title to tlle Property, tlle leasehold and Ùle fee title shall not merge unless Lender agrees to Ùle merger in writing. IO. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay t1le premiums required to maintain tlle Mortgage Insurance in effect. If, for ,my reason, ùle Mortgage Insurance coverage required by Lender ceases to be available from [he mortgage insurer tllat previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insunmce, Borrower shall pay tlle premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substanti,ùly equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer seJected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender tlle llinount of the separately designated payments Ùlat were due when ùle insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwitllstanding tlle 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 Mortgage Insunmce coverage (in the amount and for tl1e period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward t1le premiums for Mortgage Insurllilce. If Lender required Mortgage Insurance as a condition of making ùle LOllil ,md Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay ùle premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insunmce ends in accordance Witll any wriuen agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in ù1Ís Section 10 affects Borrower's obligation to pay interest at the rale provided in Ùle Note. Mortgage Insunmce reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay Ùle Loan as agreed. Borrower is not a party to tlle Mortgage Insurance. Mortgage insurers evaluate Ùleir total risk on all such insurance in force from time to time, and may enter into agreements WiÙl other parties Ùlat share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to t1le mortgage insurer and the other party (or parties) to ùlese agreements. These agreements may require Ùle mortgage insurer to make payments using any source of funds that ùle mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, ,my purchaser of the Note, another insurer, any reinsurer, any oùler entity, or any affiliate of any of tlle foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exch,mge for slurring or mOllifying tlle mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of Ùle insurer's risk in exch,mge for a shme of the premiums paid to tlle insurer, the arrangement is often termed "captive reinsunmce." Furtller: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. C -6A(WY) (0005) @ P ag 8 B of 15 Initials: ýíf Form 3051 1/01 '.1. f S ; !_~~, (i :;,J; :1 r' :"\ (~ 1 r, ,') '~~. '..; \..,: S: ~1 J:' (b) Any such agreements wiII not affect the rights ßorrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the I\lortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any 1\Iortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repiùr 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 Miscellaneous Proceeds until Lender has had an opportunity to inspect such Properly to ensure Ùle work has been completed to Lemler's satisfaction, provided Ùlat such inspection shall be undertnken prompùy. Lender may pay for the repairs imd restoration in a single disbursement or in a series of progress paymenLs as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If [he restoration or repair is not economically feasible or Lender's security would be lessened, Ùle Miscellaneous Proceeds shaH be applied to Ùle sums secured by this Security Instrument, whether or not Ùlen due, with Ùle excess, if ,my, paid to Borrower. Such Miscellaneous Proceeds shall be applied in Ùle order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, Ùle Miscellaneous Proceeds shall be applied to the sums secured by ùlis Security Instrument, whether or not then due, WiÙl the excess, if any, paid to Borrower. In Ùle event of a partial taking, destruction, or loss in value of ùle Property in which the fair market value of the Property immediately before Ùle pcutialtaking, destruction, or loss in value is equal to or greater th,m the amount of the slllns secured by this Security Instrument immediately before Ùle partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, Ùle sums secured by this Security Instrument shall be reduced by the mnount of Ùle Miscellaneous Proceeds multiplied by the following fraction: (a) Ùle total amount of the sums secured immediately before Ùle pmtial taking, destruction, or loss in value divided by (b) the fair market value of Ùle Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss ill value of the Property in which the ["air Imuket value of tile Property immediately before Ùle partial taking, destruction, or loss in value is less than the amount of Ùle sums secured immediately before the parti,ù taking, destruction, or loss in value, unless Borrower and Lender oùlerwise agree in writing, the Miscellaneous Proceeds shan be applied to the SUIns secured by this Security Instrument wheÙler or not Ùle sums are ùlen due. H Ùle Property is abandoned by Borrower, or if, after notice by Lender to BOHower that Ùle Opposing Party (as defined in Ùle next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender wiù1Ín 30 days after Ùle date the notice is given, Lender is aUÙJOrized to conect and apply the Miscelhmeous Proceeds either to restoration or repair of Ù1e Property or to the sums secured by this Security Instrument, wheùJCr or not Ùlen due. "Opposing Party" means the third pmty that owes Borrower Miscellaneous Proceeds or Ùle pmty against whom Borrower has a right of action ill regard to Miscellancous Proceeds. Borrower shan be in default if any action or proceeding, whctiler civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of tile Property or other material impairment of Lender's intcrest in the Property or rights under ù1is Security Instrument. Borrower can cllfe such a default and, if acceleration has occurred, reinstl1te as provided in Section 19, by causing the action or proceeding to be dismissed with a ruJing Ù13t, in Lender's judgment, precludes forfeiture of Ù1C Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages Ù1at are attributable to ùw impairment of Lender's interest in Ùle Property mc hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of Ù1e Property shall be applied in Ùle order provided for in Section 2. o -6A(WY) (0005) (!) Page 9 of 15 ../,-( I Initials: \,I/l ~r- Form 3051 1/01 \ '. .! '!', , if"r (~..r').1L'~ \, f .~ I ,'" ."C_" ;1." ' ,''----'---~' ........ ,- rAnG , (\ ~ i..'. "J' -) " ! \,' .. L '- 12. Borrower Not Released; Forbearance By Lender Not a "'aiver. Extension of the time for payment or modification of amortization of Ùle sums secured by ùlis Security Instrument granted by Lender to Borrower or <U1y Successor in Interest of Borrower shall not operate to release Ùle liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otilerwise modify amortization of Ùle sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbem-ance by Lender in exercising any right or rcmedy including, witilout limiætion, Lender's accepuU1ce of paymcnts from ÚÜrd persons, cntities or Successors in Interest of Borrower or in amounts less tilan Úle amount Úlen due, shall not be a waiver of or prcclude Ùle exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees Úlat Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs ùlis Security Instrument but does not execute Ùle Note (a "co-signer"): (a) is co-signing this Security Inslnnnent only to mortgage, grant <md convey Úle co-signer's interest in Ùle Property under tile terms of this Security Instrument; (b) is not personally obligated to pay ùle sums secured by tilis Security Instrument; and (c) agrees ùlat Lender and any oÙler Borrower can agree to extend, modify, forbear or make any accommodations WiÙl regard to tile terms of this Security Instrument or tile Note wiÙlOut Ùle co-signer's consent. Subject to tile provisions of Section 18, any Successor in Intercsl of Borrower who assumes Borrower's obligations under tilis Security Instrument in writing, and is approved by Lender, shall obæin all of Borrower's rights and benefits under ùlÎs Security Instrument. Borrower shall not be released from Borrower's obligations and liability under tilis Security Instrument unless Lender agrees to such release in wriLing. The covenants and agreements of úlis Security Instrument shall bind (except as provided in Section 20) and benefit ùw successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection WiÙI Borrower's default, for Úle purpose of protecting Lender's interest in Úle Property and rights under úlis Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regm-d to any otiler fees, tile absence of express authority in ùlis Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on Úle charging of such fee. Lender may not charge fees Úlat are expressly prohibited by tilis Security Instrument or by Applicable Law. If Úle Loan is subject to a law which seL~ maximum loan charges, and ùlat law is finally interpreted so that tile interest or otiler ImU1 charges collected or to be collected in connection with the Loan exceed Ùle permitted limits, Úlen: (a) any such ImU1 charge shall be reduced by the amount necessary to reduce Úle charge to Úle permitted limit; and (b) any sums already collected from Borrower which exceeded permitted IimiL~ will be refunded to Borrower. Lender may choose to make ùJis refund by reducing tile principal owed under Úle Note or by making a direct payment to Borrower. If a refund reduces principal, tile reduction will be treated as a pm-tial prepayment WiÙlOut any prepayment charge (whetiler or not a prepayment charge is provided for under tile Note). Borrower's accepænce of any such refund made by direct payment to Borrower will constitute a waiver of any right of acLion Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connecLion with this Security Instrument must be in writing. Any notice to Borrower in connection WiÙl this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by oÚler means. Notice to anyone Borrower shaIl constitute notice to all Borrowers unless Applicable Law expressly requires oùlerwise. The notice address shall be Ùle Property Address unless Borrower has designated a subsLitute notice address by notice to Lender. Bonower shall promptly notify Lender of Borrower's change of address. If Lender specifics a procedure for reporting Borrower's change of address, tilen Borrower shall only report a change of address through Ùlat specified procedure. There may be only one designated notice address under ùlis Security Instrument at anyone time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address sUlted herein unless Lender has designated anOÙler address by notice to Borrower. Any notice in connection with ù1Ís Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security InstIllment is also required under Applicable Law, the Applicable Law requireI1lc:nt will satisfy Úle corresponding requirement under úlis Security Instrument. ~ -6A(WY) (0005) @ Pag810of15 ,1 /t1¡ Inìtìals:~L- Form 3051 1/01 \, - ':'-;,.,:¡ ,)·'"1<1'4 " ì (' ,(ì ,q ~ i. ~ Lt. t,) .;.1 ~~. \ J \.) .... \... 16. Governing Law; Scverability; Rulcs of Construction. This Security Instrument shall be governed by federal law and the law of Ùle jurisdiction in which the Property is located. All rights ,Uld obligations contained in ù1Ís Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might exp1icitly or implicitly anow tlle parties to agree by contract or it might be silent, but such silence shan not be construed as a prohibition against agreement by contract. In Ùle event that any provision or clause of this Security Instrument or Ùle Note conllicts with App1icable Law, such conllict shan not affect otller provisions of this Security Instrument or the Note which C<Ul be given effect without the conflicting provision. As used in ù1Ís Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of Ùle feminine gender; (b) words in the singular shall me,U1 and include Ùle plural and vice versa; and (c) the word "may" gives sole discretion wiÙlout any obligaÜon to take any action. 17. Borrower's Copy. Borrower shaH be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in ùlis Section 18, "Interest in the Property" means any legal or beneficial interest in Ùle Property, including, but not limited to, ÙlOse beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is Ùle transfer of title by Borrower at a future date to a purchaser. If all or any part of Ùle 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) WiÙlout Lender's prior written consent, Lender may require immediate payment in fun of an SUIns 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 ùlÎs option, Lender shall give Borrower notice of acceleration. The notice shan provide a period of not less Ùlan 30 days from Ùle date Ùle notice is given in accordance wiù} Section 15 wiù1Ín which Borrower must pay all sums secured by Ù1Ís Security Instrument. If Borrower fails to pay these sums prior to the expiration of ùlÎs period, Lender may invoke any remedies pcrmitted by this Security Instrument without furÙ1Cr notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have Ùle right to have enforcement of ù1Ís Security Instrumcnt discontinued at any time prior to Ùle earliest of: (a) five days before sale of Ùle Property pursuant to any power of sale contained in ùlis Security Instrument; (b) such oÙler period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions arc that Borrower: (a) pays Lendcr an sums which Ùlen would be due under this Security Instrument and the Note as if no 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 llild valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under ù1is Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in Ùle Property and rights under this Security Instrument, and Borrower's obligaÜon to pay the sums secured by ù1is Security Instrument, shaU continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the foUowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any sllch check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electmnic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument llild obligations secured hereby shan remain fuBy effective as jf no acceleration had occurred. However, this right to reinstate shan not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in Ùle Note (together wiÙI this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in Ùle cntity (known as the "Loan Servicer") that collecl.': Periodic Payments due under Ùle Note and ù1Ís Security Instrument antI performs oÙler mortgage lo,m servicing obligations under Ùle Note, this Security Instrument, amI Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower wiB be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any oÙler information RESPA requires in connection with a o -6A(WY) (0005) ® P ag 8 11 of 15 / I'( InitiaISj.,./¡// . /' { Form 3051 1/01 \ " C "": ~~rj¡'íj "-__J-_---f.~ ......!;:1"':i.L r n n " r, r:- . ,. \. ..J '., _. ) '... \.J t.' ..;. '-' '-" notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer oÙ1er tlUlI1 the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain witl1 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. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) Ùwt arises from the otl1er party's actions pursuant to Ihis Security Instrument or that alleges Ù1at the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified Ù1e otl1Cr party (with such notice given in compliance with Ùle requirements of Section 15) of such alleged breach and afforded Ù1e other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, ÙUlt time period will be deemed to be reasonable for purposes of ù1is paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and tl1e notice of acceleration given to Borrower pursuant to Section 18 sha11 be deemed to satisfy the notice <lI1d opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are tl10se substances defined as toxic or hazardous substances, po11utants, or 'Nastes by Environment¡ll Law and the fo11owing substances: gasoline, kerosene, oÙ1er flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where Ù1e Property is located that relate to healù1, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) <U1 "Environmental Condition" me<U1S a condition that C<ill cause, contribute to, or otl1erwise trigger an Environmental Cleanup. Borrower sha11 not cause or permit Ù1e presence, use, disposal, storage, or release of any Hazardous Substances, or Ù1reaten to release any Hazardous SubsulI1ces, on or in the Property. Borrower shall not do, nor allow anyone else to do, anYÙ1Íng affecting the Property (a) Ù1at is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to Ù1e presence, use, or release of a Hazardous Substance, creates a condition tlwt adversely affects Ù1e value of Ùw Property. The prccc<ling two sentences shall not apply to Ù1e presence, use, or storage on Ù1e Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or oÙ1er action by any governmental or regulatory agency or private party involving the Property and any Hazardous SubsulI1ce or Environmental Law of which Borrower has actual knowledge, (b) any Environmenlal 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 Borrower learns, or is notified by any governmenu1l or regulatory authority, or any private party, Ù1a! any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in acconhU1ce with Environmental Law. NOùlÎng herein shall create any obligation on Lender for an Environmental Cleanup. ~ -6A(WY) (0005) @ Page12al15 Initials: at j f/ Form 3051 1/01 ç<."-'L' ," . p~ '~1Á,\I" .; n 0 if :\ .0 '.Jt..~~'j 0 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (hut not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall 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 shall 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 hy this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by A pplicable Law. Lender shall be entitled to collect all expenses incurred in pursuing 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 person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to ßorrower 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 any sale. The proceeds of the sale shall 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. 23. Release. Upon payment of all sums secured by tJ1is Security Instrument, Lender shaH release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing tJ1is Security Instrument, but only jf the fee is paid to a third party for services rendered and the charging of Ù1e fee is permitted under Applicable Law. 24. '''aivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. C -6A(WY) (0005) ® Paga130f15 A, Initials: (4~'L / Form 3051 1/01 \ \,',_,r ~·~i ~i~ .,~f' ;'T~; ...~\~ "-,1 Î\ r.... ,t r.~ ;-'1 ~.I t) "';; t1 ~' BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained In ùlis Security Instrument and in any Rider executed by Borrower and recorded wiù¡ it. Witnesses: Q-6A(WY) (0005) @ (Seal) -Borrower (Seal) - B orrawer (Seal) -Borrower It i!) Ur /n. ()Z"/P1 (' - (Scal) /:YANIE M. MALONE II -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Sea]) -Borrower Paga14of15 Form 3051 1/01 "I _CO. ~:1' (f.,I, ;ç:.. ~~:. ..", \' t' I . ,). ~.,..iL -' ,._~ ..:.-~.'"'-' ....., STATE OF WYOMING, , ( n r1 ,f C, 0 '.' u L.. '¿ ;,) Ö Lincoln County 55: The foregoing instIument was acknowJedged before me this 1s t day of November, 2005 by Jeanie M. Malone My Commission Expires: 9-15-07 cD -6A(WY) (0005) ® Lie . /t! Á1 ... ._/~ {)..J?-{-Q~ . . jI p~ Notary Public GLORIA K. BYERS· NOTARY PUBLIC County of t~~~ State of Uncoln~~;¡,~, Wyoming My CommissIon Expires Sept. 15, 2007 . . . Page150f15 ¡, /¡'L Initials: (/1/ r Form 3051 1/01 \ \1 t "-, 'f" "'~-~. -'¡¡¡; '0~:.l ADJUSTABLE RATE RIDER ('. Î\ /'"\·,1 ('\ 9 ; . ¡: ¿,... <., '.. ~.' .....- \.- '"'" V \. TIns ADJUSTABLE RATE RIDER is made this 28th day of October 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") to secure Borrower's Adjustable Rate Note (the "Note") to FREMONT INVESTMENT & LOAN (the "Lender") of the same date and covenng the Property described 111 the Security Instl11ment and located at: 320 BEAR HOLLOW CIRCLE THAYNE, WY 83127 ADDITIONAL COVENANTS. In addition to the covenants and agreements made 111 the Security Instmment, Borrower and Lender further covenant and agree as follows: A. Sections 3 and 4 of the Note state as follows: 3. PAYMENTS (A) Time and Place of Payments I will make a payment on Ùle tirst day of every monÙ1, beginning on December 1, 2005 . Before ùle First Principal and Interest Payment Due Date, as described in Section 4 of ùlis Note, my payment will equal one-twelfth of one year's interest that would be due on an amount equal to the unpaid principal balance of the Note. Thereafter, I will pay principal and interest by making a payment every monÛl as provided below. I wil! make monûlly payments of principal and interest beginning on Ûle First Principal and Interest Payment Due Date as described in Section 4 of this Note. I will make these payments every monÛl until I have paid all of the principal, interest and any OÛler charges that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date, and if the payment includes both principal and interest, it will be applied to interest before principal. If, on No vemb e r 1, 2035 , I still owe amounts 11l1c1er this Note, I wil! pay those amounts in full on that date, which is called Ûle "Maturity Date." I will make my lllonûlly payments at 2727 E IMPERIAL HIGHWAY, BREA CA 92821 or at a different place if required by the Note Holder. (B) Amollnt of My Initiall\Jonthly Payments My initial monÙ1ly payment will be in the amount of U.S. $ 773.29. However, if I make a partial principal prepayment prior to the tirst Change Date, my monthly payment will decrease for the remainder of Ùle term that my scheduled payments consist only of interest. (C) Monthly Payment Changes Beginning WiÛl the First Principal and as described in Section 4 of û1is Note. changes in my monÛ1ly payment. Interest Due Date, my monthly payment wiJl change, The Note Holder will notify me prior to Ûle date of 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYlvlENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the tirst 06/06/03 Page lof3 ( ( n (\ r-. cor~, 0 (. ",,; ~--~~ ;] () :^ . day of No vembe r 1, 2007 , and the adjustable interest rate I will pay may change on that date every sixth month thaeafter. The date on which my initial tixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning wÍlh the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is tile average of Interbank offered rates for six-month U.S. dollar-denominated deposits in the London market based on quotations of major banks based on tile London Interbank Offered Rate ("LIBOR"), as published in The \Vall Street JOtlmal. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, tile Note Holder will choose a new index and adjust tile Margin, as defined below. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Four and Nine Hundred Forty-Three Thousandths percentage points (4.9431 %) (the "Margin") to tile Current Index. The Note Holder will then round the result of this addition to tile nearest one-eightil of one percentage point (0.125 %). Subject to tile 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 tilen determine the amount of the monthly payment that would be sufficient to repay tile 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 montilly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater Ùlan 8 . 700 % or less than 6 . 7000 % . Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than One and One-Half percentage point(s) (1.5000 %) fwm the rate of interest I have been paying for the preceding monÙ1- My interest rate will never be greater than 1 2 . 7000 % or less Ùlan 6 . 7000 % . (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monti¡ly payment beginning on the tirst monthly payment date after each Change Date until the amount of my monÙlly payment changes again. (F) Notice of Changes The Note Holder will deliver or n1<iÍI to me a notice of any changes in my interest rate and Ùle amount of my monÙlly payment before the effective date of any change. The notice will include information required by law to be given to me and also the telephoœ number of a person who will answer any question I may have regarding the notice. (G) Date of First Principal and Interest Payment The date of my tirst payment consisting of both principal and interest on this Note (Ùle "First Principal and Interest Payment Due Date") shall be the tirst monthly payment date after Ùle first Change Date. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instnunent is amended to read as follows: IOARMP2 jxn 06/10103 Page 2 of 3 (;1' 1 III rC' ·--;'-iJ {): ,),r;j ..L r, 1,"\, n r: {" ,q,' . r " J j ¡ \.' .: \.' ._...L Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not an natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment ill full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. 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 Joan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted 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 tile transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under tJle Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises tile option to require inunediate 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 delivered or mailed within which Borrower must pay all sums secured by tJ1Îs Security Instrument. If Borrower fails to pay these sums prior to tile expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to tile terms and covenants contained in this Adjustable llilte Rider. I fI{} tt/Z I» i17. J11 f!r/( C1} .~ ~l..Bo{ower JEANIE 't.L MÁLONE f Borrower Borrower Borrower IOAITh1P3 TG 03/24104 II-I -0 S" Date Page 3 of 3 Date Date Date