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Home My WebLink About914250 51265 (04) b ~j \ ~ " ': .3 IV "'..... 110. ,~ '. ;,):::::~~:::::;~:: :' ~::>:::¡:¡:¡:::::~::: .·"'0"-,· Return To: FHHLC - POST CLOSING MAIL ROOM 1555 W. WALNUT HILL LN. #200 MC 6712 IRVING, TX 75038 ". ,'ì ,.... ,.. ! G ; '.t:, L' '. ., -' \,: \... Prepared By: FIRST HORIZON HOME LOAN CORPORATION RECEIVED 12/7/2005 at 11:33 AM RECEIVING # 9-'4250 BOOK: 607 PAGE: 46 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY 1315 SOUTH HIGHWAY 89, SUITE 101 JACKSON, WY 83001 (Space Above Tlus Line For )~ecunliJlg Data] 0055138648 MORTGAGE ~1IN 100085200551386487 DEFINITIONS Words used inlllultiple sections of this doclli11ent are detìned below and OÙler words are detìned in Sections 3, II, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this docllinent, which is dated November 29th, 2005 togeù1er with all Riders to this document. (B) "Borrower" is DEBORAH RACE , A Married Woman Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation ù1at is acting solely as a nominee for Lender and Lender"s successors and assigns. JUERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone nUI1!ber of P.O. Box 2026, Flint, MI 48501-2026, tel. \.888) 679-MERS. WYOMING -Single FamilY-. .FazWièMà Freddie G -6A(WY) (0005) ""\ ® fjV Page 1 of 15 Inlltals:· Mac UNIFORM INSTRUMENT WITH MERS Form 3051 1/01 11111111111111111111111111111111111 VMP MORTGAGE FORMS (800)521·7291 (' '.).') -,----~~/ (D) "Lender" is FIRST HORIZON HOME LOAN CORPORATION fJ' ,. fÎ ,...,. ... /! ~J '" :.j lJ ~: --:t , Lender is a CORPORATION organized and existing under the laws of THE STATE OF KANSAS Lender'saddressis 4000 Horizon Way, Irving, Texas 75063 (E) "Notell means the promissory note signed by Borrower and dated November 29th, 2005 The Note states that Borrower owes Lender THREE HUNDRED SIXTEEN THOUSAND & 00/100 Dollars (U.S, $ 316,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than DECEÞ1BER 1, 2035 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property. " (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under ùle Note, and all sums due under ùlÌs Security Instrument, plus interest. (H) IIRidersll means all Riders to this Security Instrument ùlat are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [iJ Adjustable R2te Rider D Balloon 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 Other(s) [specify] (I) "Applicable Lawll means aU controlling applicable federal, state and local statutes, regulations, ordinances and admÌIùstrative rules and orders (Ù1at have ùle effect of law) as weU as all applicable tinal, non-appealable judicial opilùons. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transferll means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrwnent, which is initiated ùlrough an electronic tenninal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a tinancial institution to debit or credit an account. Such tenn includes, but is not limited to, ¡Joint·of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Itemsll means Ùlose items that are described in Section 3. (1VI) "J\'(iscell::meous Proceedsll means any compensation, settlement, aware! of damages, or proceeds paid by any Ùlird party (other Ùlan insurance proceeds paid under Ùle coverages described in Section 5) for: (i) damage to, or destruction of, Ùle Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, [he value and/or condition of Ùle Property. . (N) IIMortgage Insurance" means insurance protecting Lender 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 Ùlis Security Instnllnent. (P) "RESPA" means Ùle Real Estate Settlement Procedures Act (12 USe. Section 2601 et seq.) and its impkmenting regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation Ùlat governs Ùle 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 Ùle Loan cloes not qualify as a "federally related mortgage loan" under RESPA. 0055138648 G -6A(WY) (0005) ® Page 2 of 15 ,"".,@J . . .. Form 3051 1/01 ,::~;@¡¡m¡¡I: ,..','..,:,..... ,. !Î 1"',. ;¡ 8 ' ',..I ti l, L1 ,) i'; ~.. ;1,,', ,~ ) ~', :; C::" ~I'~ '~"__' :, \.-.J..\...J (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the perfonnance of Borrower's covenants and agretments under ù1is Security Instrument and ùle Note, For ù1is purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, Wiùl power of sale, the following described property located in the County of Teton [Type of Recording Iurisdictionl [Name of Recording Iuristlil"i ¡,'Ii] Lot 812 of Lakeview Estates 3rd Addition to the Town of Alpine, Lincoln County, Wyoming according to that plat filed July 30, 2003, in the Office of the County Clerk as Plat No. 250-D. Parcel ID Number: Coun ty : 769 TERRACE DRIVE ALPINE, WY 83128 ("Property Address"): 12-3718-29-4-13-083.00 City: which currently has t}¡e address of [Street] [City] , Wyoming 83001 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on Ùle property, and all easements, appurtenances, and fixtures now or hereafter a part of ùle property, AlI replacements and additions shall also be covered by this Security Instrument. All of the foregoillg is referred to in this Security Instrument as the "Property. " Borrower understands and agrees that MERS holds onJy legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply WiÙl law or custom, M ERS (as llominee for Lender and Lender's successors and assigns) has ¡}¡e right: to exercise any or all of Ùlose interests, including, but not limited to, Ùle right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling Ùlis Security Instrument. BORROWER COVENANTS Ùtat Borrower is lawfully seised of the estate htreby conveyed and has Ùle rig}¡t to mortgage, grant and convey Ùle Property and Ùlat Ùlt Property is untllcumbered, except for encumbrances of rtcord, Borrower warrants and will dtfend gtnerally the title to the Proptrty against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines unifonn covenants for national use and non-unìfonn covenants Wiùl limited variations by jurisdiction to constitute a unifon1l security instrument covering real property. 0055138648 o -6A(WY) (0005) ® Page30f15 '"'''"', (?] Form 3051 1/01 n n('~;' /19 ',' \j \.} l. ~ ~;:'t::"?""'tI1 '>",.]'U UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, tmd 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 shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and ùÙs Security Instrument shall be made in U.S. currency, However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and ùlis Security Instrument be made in one or more of ùle following fonl1s, as selected by Lender: (a) cash; (b) money order; (c) certitïed check, bank chtck, 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 ùle location designated in the Note or at such other location as may be designated by Lender in accordance with ùle notice provisions in Section 15. Lender may return any payment or partial payment if ùle payment or partial payments are insuftïcìent to bring the Loan current. Lender may accept any payment or partial payment insuftïcient to bring the Loan curn::nt, WÎÙ10ut 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 such payments at the time such payments are accepted. ]1' 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 payment to bring the Loan current. If Borrower 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 Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and tl¡is Security Instrument or perf0I111ing 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 Ùle following order of priority: (a) interest due under the Note; (b) principal due under Ùle Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in ùle order in which it became due. Any remaining amounts shall be applied tirst to late charges, second to any other amounts due under ùlis Security Instrument, and then to reduce Ùle principal balance of the Note, If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, Ùle payment may be applied to the delinquent payment and the late charge, If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of ùle Periodic Payments if, and to the extent Ùlat, each payment can be paid in full, To the extent that any excess exists after the payment is applied to ùle full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be app]ied tirst to any prepayment charges and then as described in ùle Note. Any application of payments, insurance proceeds, or tvIiscellaneous Proceeds to principal due under ùle Note shall not extend or postpone the due date, or change the amount, of ùle Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on Ùle day Periodic Payments are due under the Note, LJntil the Note is paid in full, a sum (Ùle "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over ùlÌs Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents ()n the 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 sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with ùle provisions of Section 10, These items are called "Escrow Items." At origination or at any time during the tenn of ùle Loan, Lender may require ùlat Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of mnounts to be paid under ùlis Section. Borrower shall pay Lend¡:r the Funds for Escrow Items un]ess Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may onJy be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items fÖr which payment of ,"fill o "6A(WY) (0005) ® Page 4 of 15 Form 3051 1/01 "..,.-, (:':':¡/._~, t'· ('\ "1 '~ r-';.. ,'Iii ' .". ... 0 ,-"v ··'-'uC·v Funds has been waived by Lender and, if Lender requires, shall furnish to Lender rl'l"eipts evidencing such payment within such time period as Lender may require, Borrower's obligation tu make such paymtnts and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Stcurity 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, and Borrower fails to pay the amount òue for an Escrow Item, Lender may exercise its rights under Stction 9 and pay such amount and Borrower shall then be ubligated 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 accorclance WiÙI Stction ] 5 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, Ùl,ll are Ùlen required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to peDnil Il'nder to apply ùle Funds at ùle time specitìed under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA, Lender shall estimate Ùle ,UllOunt 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 shall be held in an institution whose deposits are insured by a fnkral agency, instrumentality, or entity (including Lender, if Lender is an institution whose depusits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay ùle Escrow Items no later ÙI,1n the time speci lied under RESPA, Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying Ùle Escrow Items, unless Lender pays Borrower interest on Ùle Funds and Applicable Law pemlits Lender to make such a charge. U¡ùess an agreement is made in writing or Applicable Law requires interest to be paid on ùle Funds, lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, Ù¡at interest shall be paid on the Funds, Lender shall give to Borrower, wiÙlOut charge, an allJlLIal accounting of the Funds as required by RESPA. If ùlere is a surplus of Funds held in escrow, as detined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance wiù] RESPA, but in no more than 12 monthly payments. If there is a deticiency of Funds held in escrow, as detined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lendtr the amount necessary to lllakt up Ùle detìciency in accordance with I<ESPA, but in no lllore than 12 monùlly payments, Upon payment in full of all swns secured by ùlis Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, tines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on ù¡e Property, if any, and Cornmunity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in ù¡e manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of ùle obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is perfoDning such agreement; (b) contests the lien in good biÎth by, or defends against enforcement of Ùle lien in, le·gal proceedings whid¡ in Lender's opinion operate to prevent the enforcement of the liell while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of Ùle lien an agreement satisfactory to Lender subordinating Ùle lien to U¡is Security Instrument. If Lender detemlines that any part of the Property is subject to a lien which can attain priority over this S"ority Instrument, Leod" may giw Borrower " ,,~,~(X)g the lien. Witliin 10 ~~ ~ -6A(WY) (0005) ® Page 5 of 15 Form 3051 1/01 ·...',','.'....") J r.:,",n, <;¡-.J'U ~.., r.·4~ (f.r' ". !.:~; ~,'i . . -' \j \...' V-J.. days of the date on which that notice is given, Borrower shall satisfy the lien or lake one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with ùlis Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected un tJle Property insured against loss by fire, hazards included within Ùle tenn "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in ùle amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to ùle preceding sentences can change during the tenn of ùle Loan. The insurance carrier providiJlg the insurance shall be chosen by Borrower subject to Lemler's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection WiÙl ùlis Loan, eiÙler: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone deteJlnination and certilication services and subsequent charges each time remappings or similar changes occur which reasonably might affect such detennination or certitication. Borrower shall also be responsible for the payment of any fees imposed by ùle Federal Emergency J\1anagement Agency iu connection with the review of any flood zone detenllination resulting from an objection by Borrower. If Borrower fails to maintain any of ùle coverages described above, Lender may lihtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or iUnount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower'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 Borrower acknowledges ùlat the cost of the insurance coverage so obtained might significantly exceed the cost of insurance Úlat Borrower could have obtained, Any amounts disbursed by Lender under this SectioJl 5 shall become additional debt of Borrower secured by this Security Instrument. These cUl10unts shall bear interest at ùle Note rate from the date of disbursement and shall be payable, with such interest, upon notice h'om 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 mille Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certiticates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any fonn of insurance coverage, not olherwise required by LUlder, for diUnage to, or destruction of, Ùle Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an adclitionalloss payee. In the 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 otherwise agree in writing, any insurance proceeds, whether or not Ùle underlying 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 restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided Ú1at such inspection shall be undertaken promptly. Lender may disburse proceeds for Ùle repairs and restoration in a single payment ur in a series of progress payments as thl' work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance procecds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or oÙler Ù1ird parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is ,">1 econmnically feasible oe Lend,,', secueity would be lessened, Ù" ::>:.~G~"b shall be "pplied 10 Q -6A(WY) (0005) Page 6 of 15 Form 3051 1/01 ® ',~,>:-;.:.;,; .. . /ì h ,r.' n,. '.j ~.) ~ -.vJ','¡¡;.,- ..n',L:jO the sums secured by this Security Instrument, whether or not Ùlen 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 tile, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender Ùlal the insurance carrier has offered to settle a claim, then Lender may negotiate and sett]e Ùle claim, The 30-day period will begin when the notice is given. In either event, or if Lender acquires Ùle Property under Section 22 or oùlerwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under Ùle Note or this Security Instrument, and (b) any other of Borrower's rights (oÙler Ùlan the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering ùle Property, insofar as such rights are applicable to the coverage of thl:' Property. Lender may use the insurance proceeds either to repair or restore Ùle Property or to pay amounts unpaid under the Note or ù1Ìs Security Instrument, wheÙ1tr or not Ùlen due. 6. Occupancy. Borrower shall occupy, establish, and use the Properly as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after Ùle date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating cirCllllistanL'eS exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair ùle Property, allow the Property to dettriorate or commit waste on the Property. Wheùler or not Borrower is residing in Ùle Property, Borrower shall maintain Ùle Property illurc!er to prevent the Property from deteriorating or decreasing in value due to its condition, Unless it is determined pursuant to Section 5 Ùlat repair or restoration is IlOt economically feasible, Borrower shall promptly repair the Property if damaged to avoid furÙler deterioration or damage. If insurance or condemnation proceeds art paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has rdeased proceeds for such purposes. Lender may disburse procecds for Ùle repairs alld restoration in a single payment or in a series of progress payments as ÙIC work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore Ù1e Property, Borrower is not relieved of Borrower's obligation for the completion of such re:pair or restoration, Lender or its agent may make reasonable entrie:s upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give: Borrower notice at the time of or prior to sllch an interior 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 the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate infonl1ation or statements to Lender (or failcd to provide Lender WiÙl material infonnation) in connection with the Loan. Material re:presentations include, but are not limited to, representations concerning Borrower's occupancy of Ùle Property as Borrowe;r's principal residence. 9, Protection of Lender's Interest in the Property and Rights Uncler this Security Imtrument. If (a) Borrower fails to perfonn the cOl'enants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might signiticantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over ùÜs Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the; Property, ù1en Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Prope:rty and rights under Ù1is Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing Ùle Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien wl¡ich has p"o'''Y ov" this Seeudty ¡,.trument; (h) uppentiog in ,~,~.~,~ paying "uso,,,,ble Q -6A(WY) (0005) Page 7 0115 Form 3051 1/01 ® .-,',',::"-:] , ..'.'.',....... - , ." (] ".., f' ' . '. ',.) .~j ri., ,:) r~' "r t."C"::('~ ... iJ attorneys' ft~es to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding, Securing the Pru¡Je:rty includes, but is not limited to, entering 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 Ilave utilities turned on or off. Although Lender may take action under ûlis Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed ûlat Lender incurs no liability for not taking 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 ûlÌs Security Instrument, These amounts shall bear interest at Ûle Note rate from the date of disbursement and shall be payable, WÎÛl such interest, upon notice from Lender to Borrower requesting payment. If ûlÌs Security Instrument is on a leasehold, Borrower shall comply WiÛI all Ùle provisions of ûle lease. If Borrower acquires fee title to Ùle Property, ûle leasehold and the fee title shall not merge unless Lender agrees to Ùle merger in writing. 10. Mortgage Insunmce, If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay Ùle premiums required to maintain ûle Mortgage Insurance in effect. If, for any reason, ûle Mortgage Insurance coverage required by Lender ceases to be available from Ùle mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward ûle premiums for Mortgage Insurance, Borrowa shaJl pay the premiums required to obtain coverage substantially equivalent to Ùle Mortgage Insurance previously in effect, at a cost substantially equivalent to ùle cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of Ùle separately designated payments that were due when Ole insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundab1e Joss reserve in ]ieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding tJw fact that the Loan is ultimately paid in fuJI, and Lender shall not be required to pay Borrower any intèfest or earnings on such loss reserve, Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in Ùle amount and for ûle period Ùlat Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make: separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrowc:f and Lender providing for such tennination or until termination is required uy Applicable Law. NoÙ1ing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases Ùle Note) for certain losses it may incur if Borrower does not repay the Loan as agreed, Borrower is not a party to ùle Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements WiÛl oÙler parties ûJat share or modify [heir risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the oÙler party (or parties) to these agreements, These agreements may require ûle 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, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any aftiliate of any of ùle foregoing, may receive (directly or indirectly) amounts ûlat derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an at1ìliate of Lender takes a share of ûle insurer's risk in exchange for a share of Ùle premiums p;tid to the insurer, the arrangement is often tem:ed "capti:~ reinsurance." Further: \ . , (a) Any such agreements WIll not aftect the amounts that Borrow~r has agreed to pay for 1\ lortgage Insurance, or any other terms of the Lmm. Such agreements wil\ not increase the amount Bo"",,,," will ow, for Mor'gag, [nsnrnnce, and Ih,y win not ,ntill, B""r2.'~r 'my r,fnnd. ,,,,,LJt_ .. -6A(WY) (0005) (!) Page 8 of 15 Form 3051 1/01 ·Y!¡;:ff~~! ,r'\ ;,...: (',I r"· ~-: 1 .. ,.I 1_' ".J 0 r. , ...,...,. C..i¡"~: 'i_j-'i..J1 (b) Any such agreements will not affect the rights Borrower 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 Mortgage InsunU1ce, to have the Mortgage Insurance terminated automatic~ùly, and/or to receive a refund of any IVlortgage Insurance premiums that were unearned at the time of such cancellation or termination, 11. Assignment of Miscellaneous Proceeds; Forfeiture. All MisceJlaneous Proceeds are hereby assigned to and shaH be paid tu Lender. If the Property is (\¡unaged, such Miscellaneous Proceeds shall be applied to restoration or repair ur the Property, if the restoration or repair is economically feasible and Lender's security is not lessentcl, During such repair and restoration period, Lender shall have Ù1e right to hold such Miscellaneous PrOlceds until Lender has had an opportunity to inspect such Property to ensure the work has been complc:ted to Lender's satisfactiun, provided that such inspection shall be undertaken promptly, Lender may pay for the rtpairs and restoration in a single disbursement or in a series of progress payments as the work is cOluplc:ted. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellantuus Proceeds, Lender shall not be required to pay Borrower any interest or earnings on SUl]¡ Miscellaneous Proceeds If the restoration or repair is not economically feasible or Lender's security wuuld be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2, In the event of a total taldng, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to Ù1e sums secured by this Security Instrument, whc:ther or not then dL1e, with the excess, if any, paid to Borrower. II¡ the event of a partial taking, destruction, or loss in value of the Property in which Ù¡e fair market value of the Property immediately before Ù1e partial taking, dc:struction, or loss in value is equal to or greater than the ~U11Ount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, un]ess Borrower and Lender oÙ1erwise agree in writing, the sums secured by Ù1is Security Instrument shall be reduced by the ¡Ullount of the Misce1laneous Procec:ds multiplied by Ù1e following fraction: (a) the total amount of tbe SLU11S secured immediately before the partial taking, destruction, or loss in value divided by (b) the t~lÌr market value of the Property inlIIlediately befi)re the partial taking, destruction, or loss in value. Any balance sha1l be paid to Borrower. In Ù1e event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taldng, destruction, or loss in value is less Ù1an Ù1e amount of the SUIns secured immediately before the partial taking, destruction, or loss in v,ìlue, unless Borrower and Lender otherwise agree in writing, Ù1e Miscellaneous Proceeds shall be applied to the stuns secured by Ù1is Security Instmment whether or not Ù1e sums are then due. If Ù1e Property is abandoned by Borrower, or if, after notice by Lender to Borrower Ù1at tile Opposing Party (as detined in the next sentence) offers to m'lke an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the elate Ù1C notice is given, Lender is authorized to co1leet and apply Ù1e Misce1laneous Proceeds eiU1er to restoration or repair of Ù1e Property or to the sums secured by this Security Instrument, whether or not Ùlen due. "Opposing Party" means tile third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Misce1laneous Proceeds. Borrower sha1l be in default if any action or proceeding, wheÙ1er civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or oÙ1er material impairment of Lender's interest in Ù1e Property or rights under this Security Instrument. Borrower can cure such a default and, if acceJeration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling Ù1at, in Lender's judgment, prc:cludes forfeiture of Ù1e Pruperty or othc:r material impainnent of Lender's interest in Ù1e Property or rights under this Security Instrument. The proceeds of any aW;trd or claim for damages Ù1at are attributable to the impainnent of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Misce1laneous Proceeds ù1at are not appJied to restoration or repair of Ù1e Property shall be ;Ipplied in ,he onl" provided fo< in Section 2. .~ \ InI\ials(~ C -6A(WY) (0005) ® Page 9 of 15 Form 3051 1/01 ....'...'..,'.'.. .-- '- ,.. f~ :~, n n ,. 0 J '..' :'.) \.J 'v' 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lemler to Borrowcr or any Successor in Interest of Borrower shall not operate to release the 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 otherwise modify amortization of the sums secured by ùÜs Security Instrwllent by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, witll()Ut limitation, Lender's acceptance of payments from ùlÌrd persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or precJude the exercise of any right or remedy. 13, Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "cosigner"): (a) is co-signing Ù1Îs Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the tenns of Ú1Îs Security Instnunent; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees Úl,\! Lender and any oÙler Borrower can agree to extend, modify, forbear or make any accommodations with regard to Ùle temls of this Security Instrwnent or the Note WÎÚlOut Úle co-signer's consent. Subject to Úle provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under ùlis Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security fnstrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benetit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection Wiúl Borrower's default, for Úle purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express ;,uÙlOrity in this Security Instrument to charge a specitic fee to Borrower shall not be construed as a prohibition on the charging of such fee, Lender may not charge fees Ù1at are expressly prohibited by this Security Instrument or by Applicable Law. If Ùle Loan is subject to a law which sets maximuIIl loan charges, and Úlat Jaw is finally interpreted so that Ùle interest or other Joan charges collected or to be collected in connection WiÙl the Loan exceed the permitted limits, Úlen: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to Ú1e permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make Ùlis refund by reducing the principal owed under ùle Note or by making a direct payment to Borrower. ff a refund reduces principal, Ùle reduction will be treated as a partial prepayment without any prepayment charge (wheÙler or not a prepayment l·harge is provided for under 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 lllight have arising out of such overcharge, 15. Notices. All notices given by Borrower or Lender in cOTmection 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 tirst class mail or when actually delivered to Borrower's notice address if sent by other means, Notice to anyone BOITower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptl y notify Lendtr of Borrower's change of address, If Ltnder specities a procedure for reporting Borrowtr's chauge of address, Ùlen Borrower shaJl only report a change of address ù1rough Úlat specitied procedure. There may be only one designated notiœ address undtr this Security Instrument at anyone time. Any notice to Lender shaJl be given by delivering it or by mailing it by tirst class mail to Lender's address stated herein unless Lender has dtsignated anoÙler address by notice to Borrower. Any notice in connection WÎÙl this Security Instrument shall not be deemed to have been given to Lender until actuaJly received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, Ùle Applicable Law requirement will satisfy the oorresponding requirement under this Security Instrument. C.J).~ Initials: \... ~ -6A(WY) (0005) Page 100115 Form 3051 1/01 ® · I ,'-', J~ ,-". rr.. 0 ',;UU()O 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which Ùle Pmperty 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 Ùle parties to agree by contract or it Illight 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 cont1icts WiÙl Applicable Law, such cont1ict shall not affect other provisions of ùlÌs Security Instrument or Ùle Note which can be given effect without the cont1icting provision. As used in ùlÌs Security Instnunent: (a) words of Ùle masculine gender shall mean and include corresponding neuter words or words of the tt:minine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion WiÙlout any ubligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of Ùle Note and of this Security Instnllnent. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in Ùle Property" means any legal or beneticial interest in the Property, including, but not limited to, those beneticial interests transferred in a bond for deed, contract fur deed, installment sales contract or escrow agreement, Ùle intent of which is the transfer of title by Borrower at a future dale: to a purchaser. If all or any part of the Property or any Interest in Ùle Property is sold or transferred (or if Burrower is not a natural person and a beneticial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less Ùlan 30 days from ùle date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument wiÙ1üut further notice or demand on Borrower, 19, Borrower's Right to Reinstate After Acceleration. If !3orrower meets certain conditions, Borrower shall have Ùle right to have enforcement of this Security Instnunent discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale lontained in this Security Instrument; (1)) such oÙler period as ApplicabJe Law might specify for llle termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing Úlis Security Instrument. Those conditions are that Borrower: (a) pays Lender all 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 ùtis Security Instrument, including, but nut limited tu, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred fur the puqJose of protecting Lender's interest in the Property and rights Imder ùÜs Security Instnunent; and (d) takes such action as lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, amI Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of Ùle following forms, as selected by Lender: (a) cash; (b) money order; (c) certitied check, bank check, treasurer's check or cashic:r'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 Transtt:r. Upon reinstalcmcllt by Borrower, Ùlis Security Instrument and obligations secured herd)y shall remain fully effective as if no acceleration had occurred. However, ùlis right to reinstate shall not apply in the casr of acceleration under Section 18. 20, Sale of Note; Change of Loan Servicer; Notice of Grievance, The Note or a partial interest in the Note (togeÙler WiÚl this Security Instrument) can be sold one or more times without prior notice to Bormwer. A sale might result in a change in Ùle entity (known as the "Loan Servicer") tllat collects Periodic Payments due under the Note and this Security Instrument and perfonns other mortgage loan servicing obligations under Ùle Note, Ùlis Security Instrument, and Applicable Law. There also might be one or Inore changes of the Loan Servicer unrelated to a sale of the Note. If Ú1ere is a cllange of the Loan Servicer, Borrower will be given written notice of Ùle change which will slate the name and address of the new Loan Servicer, the add,,,s to which paymeots should he made and any nthee infommh"" Rr~[);:i".es in ,"nnechoo with a Inlllö . <G -6A(WY) (0005) @ Page 11 of 15 Form 3051 1/01 - .J ...._~-' T', . l1 .~. ,~, ~' ~I '.. \' \) / notice of transfer of servicing, If the Note is sold and thereafter the loan is serviced by a Loan Serviœr other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by Ùle Note purchaser unless oùlerwise provided by Ùle Note purchaser, Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or ùle member of a class) Ùlat arises from the oùler party's actions pursuant to this Security Instrument or ùlat alleges Ùlat Ùle oÙler party has breached any provision of, or any duty owed by reason of. this Security Instrument, until such Borrower or Lender has notified the oÙler party (WiÙl such notice given in compliance WiÙl Ùle requirements of Section 15) of such alleged breach and afforded the oÙler party hereto a reasol14ble period after Ùle giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of ÙÜs paragraph, The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and Ùle notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy Ùle notice and opportunity to take corrective action provisions of ùlis Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances detìned as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, oÙler flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or fonnaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of Ùle jurisdiction where the Property is located that relate to healùl, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental law; and (d) an "Environmental Condition" means a condition ùlat can cause, contribute to, or otherwise trigger an Environmental Cleanup, Borrower shall not cause or pemlit the presence, use, disposal, storage, or release of any Hazardous Substances, or Ùlreaten to release any Hazardous Substances, on or in Ùle Property. Borrower shall not do, nor allow anyone else to do, anyÙling affecting the Property (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 Ùlat adversely affects Ùle value of the Property. The preceding two sentences shall not apply to Ùle presence, use, or storage on the Property of small quantities of Hazardous Substances ùlat are generally recognized to be appropriate to nonnal residential uses and to maintenance of Ùle 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 oÙler action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, reJease or Ùlreat of release of any Hazardous Substance, and (c) any condition caused by Ùle presence, use or reJease of a Hazardous Substance which adversely affects the value of Ù1e Property. If Borrower learns, or is notitied by any governmental or regulatory aUÙlOrity, or any private party, Ùlat any removal or other remediation of any Hazardous Substance affecti ng the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law, Nothing herein shall create any oblgation on Lender for an Envirolllilental Cleanup. o -6A(WY) (0005) ® Page 12 of 15 Form 3051 1/01 , :'};Y;t~i~¡;j¡~j I .:'~~/~.,_ .~~:<_.:'~ ¡~~~ ti.} î' 1-' (.... ,. "_ ~:() ,.:';'(·-:-"0'· ..' \~) ",_, '-.J , NON-UNIFORM COVENANTS. Borrower and Lender furthèr covenant and agrèè as follows: 22. Acceleration; Remedies. Lender shall gi ve not ice to Borrower prior to accelerat ion following Borrower's breach of any covenant or agreement in this Security Instrument (but 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; Cc) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and Cd) 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 .my other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of s.ùe and any other remedies permitted by Applicable 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 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 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 slIIns secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all SUll1S secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered aIld the charging of the fee is pennitted under Applicable Law. 24. '''aivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. tG -6A(WY) (ODDS) ® Page 130115 "",.ri# Form 3051 1/01 (', '"", ,.... ~;.,.. () " t,~ l'; ',I . ~J ~J ¡::" ~?~~ <::.'i!.j- BY SIGNING BELOW, Borrower accepts and agrees to the ten11S and covenants contained in this Security Instrwnent and in any Rider executed by Borrower and recorded with it. Witnesses: ~r--~-~~"'-~- (Seal) DEBO H RACE -Borrower (í\ s---- D ~ . '~'~'~'=- Shawn Sears (Seal) - Borrower (Seal) (Seal) - Borrower - Borrowcr (Seal) -Borrower (Seal) -Borrow<:r (Seal) ·Borrower (Seal) -Bon"dwcr 0055138648 G-SA(WY) (0005) ® Page 14 of 15 Form 3051 1/01 L'·;:l;jilfj:m¡m~m STATE OF WYOMING, IìrNCO~Teton \j¡Ij~¡~r~¡ by DEBORAH RACE and Shawn Sears The foregoing instrument was acknowledged before me this 11/29/2005 My Commission Expires: tJ)(S!rz0~ '~V·'~~':'·'~~~~:~~~~-'~~:~~t " l.'t¡I,;,;.I.~ ì \.....cfl -,~""" r.v_Hi" ~ \.I!.·.....¡V t ~~\~:;.;~ 0; ..~. ~ ~·~(è:fJ;:,~ '¡ ì >¡. "'1 ~~kJ V.J,-,,:¡.qJ " It ... ,~...... ~.~ /c l0~rY2f13.ì 'j " . ~ _ ,~.,.,._ / 'i ...~. tJ.V C(;I'-n'~I:~$IÛn i::-,(...~.j ':;'3, 0. ,_' _. " ., " -u ~_,..;;.....~,;,:"""""~~v..("...,-,,,........·....,,v ~.......,-.;,;¿ 0055138648 cG -6A(WY) (0005) ® f=:;<d ujb~ Nolary Public ,~',-,-, r' ("~: ('.. /", !: U" ',j \.J t..., U ~~;O· County ss: ~Y Initials Page 150115 Form 3051 1/01 ,... ~ , I' ("' ... ..~~ 1.. '.. !·)¡._:l b " ',,-."" ',....,'.',.,'.',-, ¡. FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Hate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is made this 29th day of November, 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 ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to FIRST HORIZON HOME LOAN CORPORATION ("Lender") of the same date and covering the property described in the Security Instrument and located at: 769 TERRACE DRIVE, ALPINE, WY 83128, WY 83001 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM BORROWER MUST PA Y. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 6.125 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of December, 2010 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed 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 with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." 0055138648 ~~~1l;)~~~;~nEn~~A~~~ In~~~~e~iDER - ONE-YEAR TREASURY INDEX - Pagè 1 of 4 Initials( ~ VMP Mortgage Solutions, Inc. (800)521-7291 FIXED NOTE RATE RATE 11111111111111111111111111111111111 ... ~~'C;C( ('() \.) t:.. If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. 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 TWO AND THREE-QUARTERS percentage points ( 2 . 750 %) to the Current Index, The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%), Subject to the limits stated in Section 4(0) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 11.125 % or less than 2.750 %. Thereafter, my adjustable interest rate will never be increased or decreas8d on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 11.125 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument shall read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consdnt, Lender may require immediate payment in full of all sums secured by t~t(ÍÌ,cjrity Instrument. 5138648 Initial(~ (0405) Page 2 of 4 Form 3182 1/01 , ',' ,': ~, ,.",,',>;',' r· (..... '"'.;" G,.., . .,,¡ . J ... '.j U "--, However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section B1 above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law, Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably 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 the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Iniliûl@ 0055138648 (0405) Page 3 of 4 -.- Form 31821/01 :' l"'\'..... ", J""1. . I ,., r' 'I . , )' . , , . ~'. . " '../ I.....- V ~ --I f""' ¡¡ , r°!'., Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by tllis Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, BO"r,row, e"r., a.,ccePts and agrees to ÇI1 -terms contained in this Fixed/AdjUstabl::~~ ~___.. /U ~--- (Seat) ,/-- C ~BOR1ili RACE -Borrower Shawn Sears ''''-- and covenants (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0055138648 (0405) Page 4 of 4 Form 3182 1/01