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HomeMy WebLinkAbout914368 000300 2C j..J WHEN RECORDED MAJL TO: OPTION ONE MORTGAGE CORPORATION P . 0, BOX 57096 IRVINE, CA 92619-7096 ATTN: RECORDS MANAGEMENT Loan Number: 321031245 Servicing Number: 002017628-5 RECEIVED 12/9/2005 at 4:17 PM RECEIVING # 914368 BOOK: 607 PAGE: 300 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above This l.ine For Recording Datal MORTGAGE THIS MORTGAGE ("Security Instl1lIllent") is given on KEVIN L. BRUN~iARDT AND ERICA L. BRUNKHARDT December 08, 2005 Husband and wife . The mortgagor is ("Borrower"). This Security Instrument is given to Option One Mortgage Corporation, a California Corporation which is organized and existing under the laws of CALI FORNI A , and whose address is 3 Ada, Irvine, CA 92618 ("Lender"). Borrower owes Lender the principal sum of NINTY EIGHT THOUSAND FOUR HUNDRED .. ,AND NO/100THs Dollars (U.S. $98,400.00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for lllontl¡ly payments, with the full debt, if not paid earlier, due and payable on January 01, 2036 . This Security Instrument secures to Lender: (a) the repayment of die debt evidenced by dIe Note, widl interest, and all renewals, extensions and moditications of Ùle Note; (b) tlIe payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instnnuent; and (c) Ùle performance of Borrower's covenants and agreements under this Security Instrument audlhe Note. For Ùlis purpose, Borrower does hereby mortgage, grant, convey and warrant to Lender, with POWêf of sale, the following described property located in Lincoln County, Wyoming: 34191130010800 SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART THEREOF. fU ,.) which has tlIe address of Wyoming 88 COUNTY RD 407, THAYNE 83127-9733 ("Property Address"); [Zip Code] [Street, City], TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of Ùle foregoing is referred to in this Security Instrument as d¡e "Property." BORROWER COVENANTS tllat Borrower is lawfillly seised of d¡e estate hereby conveyed and has [he right to morlgage, grant and convey dIe Property and d¡at the Properly is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to tlte Property against all claims and demands, subject lu any encumbrances of record. COVENANTS. Borrower and Lender covenant and agree as foHows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by Ùle Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shaH pay to WYOMING - Single Fauúly / /~ Page 1 of6 ß-p. t~, WYD100ll (06-23-98) ,'>.C:"·,,:i,ri1....t::S ~ Li¡ h <-;.'ùu Loan Number: 32103"1'24'"5' Servicing Number: 002017628-5 Date: 12/08/05'" GO 301 Lender on the day monthly payrnents are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly t:L\eS and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yeady leasehold payuu:uts or ground rents ou the Property, if any; (c) yearly hazard or property insurance prenùmns; (d) yeady Hood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; aud (t) any sums payable by Borrower to Lender, in accurdance with the provisions of paragraph 8, in lieu of the payment of ruortgage insurance premiums. These items are called" Escrow Items." Lender mllY, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a Jálerally related mortg:lge loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedun:s Act of 1974 as amended from time to time, 12 U.S.c. Section 2601 et seq. ("RESPA"), Ulùess another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an alllount not to exceed the lesser amOU1H. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lemler shall apply the Funds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, auuually analyzing the escrow accouut, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits LeuckI' to uLlke such a charge. However, Lender may require Borrower to pay a one-time charge for an independwt real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Leuder shall not be required to pay Bonuwer any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Leuder shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. I f the amount of Ure Funds held by Lender at any time is not suftìcient to pay the Escrow Items when due, Lender IIlay so notify Borrower in writing, and, in such case Borrower shall pay to Lender Ure amount necessary to make up Ult deficiency. Borrower shall make up Ure deficiency in no more than twelve monUrly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instnunent, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acqnire or sell the Property, Lender, prior to the acqui..,ition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against Ule stuns secured by ùris Security Instrument. 3. Application of Payments. Urùess applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under Ule Note; second, to amounts payable under p:¡ragraph 2; third, to interest due; 1'0 ur Ul , to principal due; and last, to any late charges due under the Note. 4. Dlafges; Liens. Borrower shall pay all taxes, asst'ssments, charges, Jines and impositions attributable to the Property which may attain priority over this Security Tnstnunent, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in Ure manner provided in paragraph 2, or if not paid in that m,anner, Borrower shall pay them on time directly to [he person owed payment. Borrower shall promptly furnish to Lender all uotices of amounts to be paid under this paragraph. ]f Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over uris Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by Ure lien in a manner acceptable to Lender; (b) contests in good faith [he lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of tile lien; or (c) secures from tile holder of tile lieu an agreement satisfactory tu Lender subordinatiug the lien to tllis Security Instrument. If Lender determines tltat any part of Ule Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of tile actions set fortlr above witllÍn 10 days of tile giving of notice. 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by tire, hazards included wiulin the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in tile amounts and for tile periods that Lender requires. The insurance carrier providing tIle insurance shall be chosen by Borrower subject to Lender's approval wl!Îch shall not be unreasonably witJùreld. If Borrower tàils to maintain coverage described above, Lender may, at Lemkr's optioll, obtain coverage to protect Lender's rights in the Property in accordance WitIl paragraph 7. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have tile right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid prenùums and renewal notices. In the event of loss, Borrower shall give prompt notice to ule insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender aud Borrower otherwise agree in writing, or applicable Law oUlerwise requires, insurance proceeds shall be applied JÏrst to reimburse Lender for costs aud expeuses incurred in connection Witll obtainillg any such insurance proceeds, and then, at Lender's option, ill such order and proportion as Lender may determine in its sole and absolute discretion, and regardless of any impairment of security or lack thereof: (i) to the sums secured by tllÍs Security Instnllnent, whether or not tllen due, aud to such components tIlereof as Lender may determine in its sole and absolute discretioll; and/or (ii) to Borrower to pay the costs and expenses of necessary repairs or restoration of Ule Property to a coudition satistàctory to Lender. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender tllat the insurance carrier has offen:d to settle a claim, Lender may collect tire insurance proceeds. Lender may, in its sole and absolute discretion, and regardless of any impainnellt of security or lack thereof, use Ule proceeds to repair or restore the Property or to pay Ùle sums secured by this Security Illstrumeut, wheÙler or not tllen due. The 3D-day period will begin when tile notice is given. U¡ùess Lender and Borrower otllerwise agree in writing, any application of proceeds to principal shall not extend or postpone Ule due date of tile monthly payments referred to in paragraphs 1 and 2 or change the amount of Ure payments. If under paragraph 21 tire Property is acquired by Lender, Borrower's right to any illsurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to Ùle extent of the sums secured by this Security IllStrument illuuediately prior to tile acquisition. If Borrower obtains earthquake insurance, any oUler hazard insurance, or any other illsurance on the Property and such insurance is not specifically required by Lender, then such insurance shall (i) nallle Lender as loss payee thereunder, aud (ii) be subject to tile provisions of tJris paragraph 5. page20f6/Ø [.6. WYDlOOl2 (O(),2],98) f , L' "I ';,;..-, J,' Q U.....,:,i.'L~~G\..:J Loan Number: 321031245 Servicing Number: 002017628 - 5 r' (' 0, 3 () 2 '.' ,) Date: 12/08/05 6. Occupancy, Preservation, Maintenance and Protection of dle Property; Borrower's Loan ApIJlication; Leaseholds. Borrower acknowledges that tlle Lender does not desire to make a loan to Borrower secured by this property on the terms contailltd in the Note unless the property is to be occupied by Borrower as Borrower's prirnary/secondary residence. Lender makes non- owner residence loans of different terms. Borrower promises and assures Lender that Borrower intends to occupy this property as Borrower's primary/secondary residence and tllat Borrower will so occupy this property as its sole primary/secondary residence witllin sixty (60) days after the date of the Security Instrument. If Borrower breaches this promise to occupy the property as Borrower's primary/secondary residence, then Lender may invoke any of Ùle following remedies, in addition to Ùle remedies provided in Ùle Security Instrument; (1) Declare all sums secured by Ùle Security Iustrument due and payable and foreclose Ùle Security Instrument, (2) Decrease Ùle term of the loan and adjust Ùle monthly payments wider Ùle Note accordingly, increase tht: intt:rest rate and adjust Ùle monùlly payments undt:r the Note accordingly, or (3) require Ùlat lie principal balance be reduced to a percentage of either the original purchase price or Ùle appraised value ùlen being offered 011 non-owner occupied loans. Borrower shall not destroy, damage or impair Ùle Property, allow the Property to deteriorate, or cOJllmit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whtÙler civil or criminal, is begulI ùlat in Lendèr's good faith judgment could result in forfeiture of Ùle Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing tht action or proceeqing to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of Ùle Borrower's interest in Ùle Property or otller material impairment of Ùle lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during Ùle loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender witll any material information) in connection wiùl Ùle loan evidenced by tlle Note, including, but not limited to, representatiollS concerning Borrower's occupancy of tj¡e Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee titIe to Ùle Property, tIle leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. Borrower shall, at Borrower's own expense, appear in and defend any action or proceeding purporting to afftct Ùle Propèrty or any portion thereof or Borrower's title ùlereto, Ùle validity or priority of the lieu created by [his Security Instrument, or the rights or pOwers of Lender with respect to tllis Security Instrument or tIle Property. All causes of action of Borrower, wheùler accrued before or afta the date of úlÌs Security Instrument, for damage or iujmy to Ùle Property or any part tI¡ereof, or in connection with any transaction financed in whole or in part by the proceeds of tIle Note or any other note seemed by this Security Instrument, by Lender, or in connection wiùl or atIecting Ùle Property or any part thereof, including causes of action arising in tort or cuntract and causes of action for fraud or concealment of a material fact, are, at Lender's option, assigned 10 Lender, and the proceeds Ùlereof shall be paid directly to Lender who, after deducting úlerefrom all its expenses, including reasonable attorneys' fees, may apply such proceeds to the sums secured by tI1Ís Secnrity Instrument or to any deficiency under this Security Instrument or may release any monies so received hy it or any part ùlereof, as Lender may elect. Lender may, at its option, appear in and prosecute in its own name any action or proceeding to enforce any such cause of action and may make any compromise or settlement thereof. Borrower agrees to execute such further assiglUnents and any other instruments as from time to time may be necessary to etlectuate Ùle foregoing provisions and as Lender shall request. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in Ùle Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeÌlure or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect tlle value of the Property and Lender's rights in Ùle Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instmment, appearing ill court, paying reasonable attorneys' fees and entering on the Property to make repairs. AltllOugh Lender may take action wider this paragraph 7, Lemler does not have to do so. Any amounts disbursed by Lender under ùlÌs paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest hom the date of disbursement at tIle Note rate in effect from time to time and shall be payable, WiÙI interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insur.mce. If Lender required mortgage insurance as a condition of making the loan secured by this Stcurity Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, Ùle mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain covtrage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to Ùle cost to Borrower of Ùle mortgage insurance previously in effect, from an alternate mortgage insurer approvtd by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the ytarly mortgage Însurance prelnium being paid by Borrower when Ùle insurance coverage lapstd or ceased to be in effect. Lender will accept, use and retain tllese payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at Ùle option of Lender, if mortgage insurance coverage (in the amount and for Ùle period Ùlat Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss restrve, until the requirement for mortgage ilL~urance ends in accordance WiÙl any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of Ùle Property. Lender shall give Borrower notice at Úle time of or prior to an inspection specifying reasonable cause for Ùlt inspection. 10. Coudemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or oÙler taking of any part of tlle Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Lender may apply, use or release Ùle condenlllation proceeds in lie same manner as provided in paragraph 5 hereof WiÙl respect to insurance proceeds. If Ùle Property is abandoned by Borrower, or if, after notice by Lender to Borrower that Ùle condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender witI1Ìn 30 days after Ùle date Ùle notice is given, Lender is aUÙlOrized to collect and apply ùle proceeds, at its option, eWler to restoration or repair of Ùle Property or to the SUlns secured by ùlÌs Security Instrument, wheùler or not Ùlen due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone lie due date of the monùlly payments referred to in paragraphs I and 2 or changt the amount of such payments. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of tIle time for payment or moditication of aorortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall Page 3 of 6 //'d -II} t· ,'·~:':.:r':-';:"::,:.':' ~ f, ...:.,'.... ,"_':., o:.....~.;.,.:_,,¡.. WYDI0013 (06~2398) Aj ¡ii ·~G8 ~L,~oi-~ Loan Number: 321031245 Servicing Number: 002017628-5 (' 1\ 0 3 '-I 3 Date: 12/08/05.._ U :J not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of auy demand made by llle original Borrower or Borrower's successors in interest. Any forbearance by Lender in exen.:ising any right or remedy shall not be a waiver of or preclude the exercise of any fight or remedy. 12. Successors and Assigns Bound; Joint and SeverJI Liability; Co-signers. The covenants and agreements of tlJÎs SeL'urity Instrument shall bind aud benetit llle successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements sllall be joint and several. Any Borrower who co-signs llJis Security Instrument but does not execute llle Note: (a) is co-signing llJÍs Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property nnder the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbtar or make any accommodations willI regard to llle terms of this Security Instrument or llle Note without that Borrower's consent, 13. Loan Otarges. If the loan secured by llÜs Securily Instrumeut is subject to a law which sets maximum loan charges, and that law is tÏnally interpreted so that the interest or other loan charges collected or to be collecttd in connection with !lIe loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by !lIe amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing llle principal owed under !lIe Note or by making a direct payment to Borrower. If a refund reduces principal, llle reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided for in ll1Ïs Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of anolller me!llOd, The uotice shall be directtd to the Property Address or any olller address Borrower designates by notice to Lender. Any notice to Lender shall be given by tirst class mail to Lender's address stated IJerein or any ollIeI' address Lender designall:s by notice to Borrower. Any uotice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lenda when given as provided in this paragraph. 15. Goveming Law; Severãbility. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event lllat any provision or clause of this Security Instrument or the Note cont1iClS with applicable law, such connict shall not affect olller provisions of lllÎs Security Instmment or the Note which can be given dl'tct willlOUt llle contlicting provision. To this end the provisions of this Security Instrument and the Note are lkclared to be severable. 16. BorrowI::r's Copy. Borrower shall be given one conformed copy of llle Note and of this Security Instrument. 17. Transfer of till:: PropèJ1y or a Beneficial Iuterest 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 a nlltural person) without Lender's prior written consent, Lender lllay, at its option, require immediate payment in 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 Instmment. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less lllan 30 days from !lIe date llle notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these SUlllS prior to !lIe expiration of llÜs period, Lender may invoke any Jêmedies permitted by llÜs Security Instrument willlOut further notice or demand on Borrower. 18. Borrower's Right to Reinstate. If Borrower meets certain cOllditions, Borrower shall have llie right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuaut to any power of sale contained in ll1Ís Security lnstnnnent; or (b) entry of a judgment enforcing lllÍs Security Instnunent. Those conditions are !llat Borrower: (a) pays Lender all slllns which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of allY o!ller covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limittd to, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in llle Property and Borrower's obligation to pay the SUUlS secured by llÜs Security Instrument shall continue unchanged. Upon reinstatement by Borrower, llris Security Instrument and the obligalions secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note; Change of Loan ServiceI'. The Note or a partial interest in the Note (together with this Security Instmment) may be sold one or more times without prior notice to Borrower. A sale may result in a change ill the entity (known as llle "Loan ServiceI'") that collects monthly payments due under the Note and this Security Instrul1ltJìt. There also may be one or more changes of !lIe Loan ServiceI' unrelated to a sale of the Note. If !llere is a change of the Loan Servicer, Borrower will be given writtenllotice of llle change in accordance with paragraph 14 above and applicable law. The notice will state the nallle and address of llle new Loan Servicer and the address to which payments should be made. The notice will also contain any ollIeI' information required by applicable law. The holder of the Note and this Security Instl1lment shall be deemed to be the Lender hereu nder. 20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything afftclÍng llle Property lllat is in violation of any Environmental Law. The preceding two sentences shall not apply to !lIe presence, use, or storage on the Property of small quantities of Hazardous Substances lllat are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or ollieI' action by any governmental or regulatory agency or private party involving llle Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notitied by any governmental or regulatlJry authority, thilt any removal or ollIeI' remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance willI Environmental Law. Borrower shall be solely responsible for, shall indemnify, defend and hold harmless Lender, its directors, ofticers, employees, attorneys, agents, and tlleir respective successors and assigns, from and against any and all claims, demands, causes of action, loss, damage, cost (including actual attorneys' fees and court costs and costs of any required or nece~sary repair, cleanup or detoxitication of the Property and llle preparation and implementation of any closure, abatement, containment, remedial or other required plan), expeJJses and liability directly or indirectly arising out of or attributable to (a) the lise, genaation, storage, rdease, tlJreatened release, discharge, disposal, abatement or presence of Hazardous Substances on, under or about the Property, (b) the transport to or from llle Property of any HazardlHls Substances, (c) llle violation of any Hazardous Substances law, and (d) any Hazardous Substances claims. Page 4 of 6 /$ £.8. WYDJO014 (06-23,98) ...' ("'n Ü~JÎ\ [tlJjbtj Loan Number: 321031245 Servicing Numbtr: 002017628-5 Date: 12/08/6'500304 As used in this paragraph 20, "Hazardous Substances" are those substances defined as tDxic or hazardous substances by Environmental Law and ilie following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 20, "Envirmilllental Law" means federal laws and laws of the jurisdiction where the Property is located that rdate to health, safety or envirolUnental protection. ADDITIONAL COVENANTS. Borrower and Leuder further covenant and agree as follows: 21. Accelerdtion; Remedies. If any installment uruler the Note or notes secured hereby is not paid when due, or if Borrower should be in default muler any provision of this Security InstruIllent, or if Borrower is in default under any oilier l110rtgage or other instrwnent secured by the Property, all sums secured by this Security Instrument :nul accrued interest thereon shall at once become due and payable at the option of Lender without prior notice, except as otherwise rC<juired by applicable law, and regardless of any prior forbear.mce. In such event, Lender, at its option, and subject to applicable law, may then or thereafter foreclose this Security Instrument tither by advertisemcnt :nul sale of Ille Property as provided by statute (IlJe power of sale provided for by statute being hereby expressly gnmted to Lender by Borrower) or by an action in C<luity, :nul may invoke any oilier ren1tXlies or take any oilier actions peruñtted by applicable law, LeIuler will collect all expenses incurred in pur'suing Ille remedies desaibed in III is Paragraph 21, including, but not linilted to, reasonable attorneys' fees and costs of title evidence. If Lender invokes die power of sale, Lender shall give notice of ÎIúent to foreclose to Borrower :nul to Ille person in possession of tlle Property, if different, in accordance with applicable law. Lender shall give notice of its intent to foreclose to Borrower by certified mail, return receipt, in the Illanner provided in pardgmph 14. Leluler shall publish Ille notice of sale, and dre Property shall be sold in the manner prescribed by applicable law. Leruler or its designee may purchase Ille Property at any sale. The proceeds of die sale shall be applied in the following order: (a) to all expenses of Ille sale, includiug, but not limited to, reasonable auorneys' tèes; (b) to all sums secured by this Security InstrunlCJú; :nul (c) any excess to the person or persons legally entitled to it. 22. Release, Upon payment of all sums secured by this Security Instrument, Lender shall release this property without warranty to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. Lender may charge such person or persons a fee for releasing Ille Property for services rendered if Ille charging of the fee is permitted under applicable law. 23. Waivers. Borrower hereby releases and waives all rights in the Property under and viture uf the homestead exemption laws of the State of Wyonñng and hereby relinquishes all rights of curtesy and dower in ùle Property. 24. Misrepresentation and Nondisclosure. Borrower has made certain written representations and disclosures in ordtT to induce Lender to make the loan evidenced by the Note or notes which this Security Instrument secures, and in [he event (hat Borrower has made any material misrepresentation or failed to disclose any material fact, Lemler, at its option and without prior notice or demand, shall have the right to declare the indebtedness secured by this Security Instrument, irrespective of the maturity date specitied in the Note or notes secured by this Security Instrument, iImllediately due and payable. 25. Time is of the Essence. Time is of the essence in ùle performance of each provision of this Security Instrument. 26. Waiver of Statute of Limitations, The pleading uf the statute of limitations as a defense to enforcement of Ihis Sel:urÏly Instrument, or any and all obligations referred to herein or secured hereby, is hereby waived to the fullest extent pennitted by applicable law. 27. Modification. This Security Instrument may be modified or amended only by an agreement in writing signed by Borrower and Lender. 28. ReimbwsemeIú. To the extent permitted by applicable law, Borrower shall reimburse Trustee and Lender for any and all costs, fees and expenses which either may incur, expend or sustain in ùle execution of the trust created hereunder or in the performance of any act required or permitted hereunder or by law or in equity or otherwise arising out of or in connection with this Security Instrument, the Note, any other note secured by this Security Instrument or any other iustrument executed by Borrower in connection WiÙl the Note or Security Instrument. To the extent permitted by applicable law, Borrower shall pay to Trustee and Lender their fees in connection with Tmstee and Lender including, but not limited to assumption application ftes; f"ets for payoff demands and, statements of loan balance; fees for making, transmitting and transporting copies of loan documents, verifications, full or partial lien releases and other documents requested by borrower or necessary for performance of Lendtr' s rights or dutits under this Security Instrument; fees arising from a returned or dishonored check; fees to determine whether the Property is occupied, protected, maintained or insured or related purposes; appraisal tees, inspection fees, legal fees, broker fees, insurance mid-tenn substitutions, repair expenses, foreclosure fees and costs arising from foreclosure of ùle Property and protection of ùle security for this Security Instrument; and all oùler fees and costs of a silnilar nature not otherwise prohibited by law. 29. Oerical Error. In ùle event Lender at any time discovers ùlat the Note, any other note secured by this Security Instrument, the Security Instrument, or any olller document or instrument executed in connection willl the Security Instrument, Note or notes contains an error that was caused by a clerical mistake, calculation error, computer malfunction, printing error or similar error, Borrower agrees, upon notice from Lender, to reexecute any documents ùlat are necessary to correct any sllch error(s). Borrower fur Iller agrees that Lender will not be liable to Borrower for any damages incurred by Borrower that aft directly or indirectly caused by any such error. 30. Lost Stolen, Desu-oyed or Mutilated Security InstrunlCnt arul Oilier DocunlCrús. III the event of the loss, theft or destruction of ùle Note, any other note secured by this Security Instmment, the Security Instrument or any other documents or instruments executed in cOlUlection willl the Security Instrument, Note or notes (collectively, the "Loan Documeuts"), upon Borrower's receipt of an indemnification executed in tàvor of Borrower by Lender, or, in the event of the mutilatiou of any of the Loan Documents, upon Lender's surrender to Borrower of ùle mutilated Loan Document, Borrower shall execute and deliver to Lender a Loan Document in form and content identical to, and to serve as a replacement of, Ùle lost, stolen, destroyed, or mutilated Loan Document, and such replacement shall have the same force and effect as the lost, stolen, destroyed, or IlIutilated Loan Documents, and may be treated for all purposes as ùle original copy of such Loan Docllment. 31. Assignment of IkIÚS. As additional security hereunder, Borrower hereby assigns to Lender tbe œnts of ùle Property. Borrower shall have Ùle right to collect and rdain ilie rents of ùle Property as ùley become due and payable providtd Lellder has not exercised its rights to require immediate payment ill full of ùle SUlllS secured by U1Ís Security instmment alld Borrower has not abandoned ùle Property. 32. Riders to this Security Instrument. If one or more riders are executed by Borrower and recordtd together Witll ù1Ís Security Instrument, the covenants and agreements of each sllch rider shall be incorporated into and shall amend and supplement Pag~ 5 of 6 /)&t~· WYD toOl5 (06-23,98) ÜSnl[~3'68 Loan Number: 321031245 Servicing Number: 002017628 - 5 í' IÎ 0 ':) (' C" Date: 12/08/o.5~) oJ ~ J the covenants and agreements of this Security Instrument as if the rider(s) wae a part of this Security Instrument. [Check applicable box(es)l ŒJ Adjustable Rate Rider o No Prepayment Penalty Option Rider o Other(s) (specify) o Condominium Rider o Planned Unit Development Rider o }-4 Family Rider o Occupancy ¡<ider BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instmment and in any rider(s) exel:Uted by Borrower and recorded with it. Witnesses: (S eal) -Borrower (Seal) ,[J'HTower L. BRUNKHARDT (Seal) -Borrower (Seal) -Borrower ~:cx^~ I &,Ii MJ- ERICA L. BRUNKHARDT (Seal) -Borrower (Seal) -Borrow"r ST A TE OF WYOMING, Lincoln CoUllty ss: The toregJoing instmment was acknowledged before me this 8 t }l d ay f D 1 ") 0 0 5 o ecenDer, '"' . (date) by Kevin L. Brunkhardt and Erica L. Brunkhardt (perSOll ackllowledging) My Commission Expires: 9-15-07 /<ye~;u /-!. Notal)' Public /~LLlJ?,/2/~ I GLORIA K BYERS - NOTARY PUBLIC C~unty of .(~ State of Lincoln ~ Wyoming My CommissIon Expires Sept. 15,2007 Page 6 of 6 WYDlO016 (06,23-98) f " ,¡ "'1 /j "');!C i.,r") O,-!JL~-t':.....t'üa r' (\ 0 'J n 6 \., ,) - v v LEGAL DESCRIPTION A portion of the Imlay property referred to in Instrument No. 865637 recorded in Book 445PR on page 55, all in the NEIASWIA of Section 11, T34N R119W of the 6th P.M., Lincoln County, Wyoming, being more particularly described as follows: BEGINNING at an Iron Pipe set at a point in the West line of the above referred to properties, said point being 171.30 feet S 0008'17" W from the B.L.M. type Monument marking the Baker Engineers PE/LS 698 location for the Northwest corner of said NEIASWIA (CWl/16 Sl1); thence S 88043'34" E, 261.47 feet to an Iron Pipe set at a point in the East line of said Imlay property; thence S 0008'17" W, along said East line, 172.03 feet to an Iron Pipe set marking the Southeast corner of said property; thence N 88033'59" W, along the South line of said property, 261.48 feet to an Iron Pipe set marking the Southwest corner of said property; thence N 0008'17" E, along said West line, 171.30 feet, to the POINT OF BEGINNING. EXCEPTING THEREFROM the land contained in Warranty Deed recorded December 6, 1962 in Book 57PR on page 206 of the records of the Lincoln County Clerk. ".,' ,', þ: ~''''G'8 1ti.J1rtt~._;·d ~.J.~ 1; , . '- "--.:.'~, .....~ f' (\ 0 ') (' 7 ;,-,)... v j Loan Number: 321031245 Servicing Number: 002017628-5 Date: 12/08/05 ADJUSTABLE RATE RIDER (LIBOR Index - Rate Caps) THIS ADJUSTABLE RATE RIDER is made December 08, 2005 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Tmst 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 Option One Mortgage COLporation, a California Corporation (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 88 COUNTY RD 407, THAYNE, WY 83127-9733 [Property Addressl THE NOTE CONTAINS PROVISIONSALLOWING FOR CHANGES IN TIlE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMiTS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instnuuent, Borrower and Lender further covenant and agree as follows: The Note provides for an initial interest rate of 10. 100 % Note provides for changes in the interest rate and Ùle lIlonùlly payments, as follows: . The 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) OJange Dates The interest rate I will pay may change on the first day of January 01 2008 , and on that day every sixth month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Beginning WiÙl ùle first Change Date, lilY interest rate will be based on an Index. The "Index" is the average of interbank offered rates for six-month U.S. dollar-denominated deposits in tl¡e London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index tigure available as of the tìrst business day of tlle monnl inuuediately preceding tlle nHJIltll in which ùle Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is hased upon comparable information. The Note Holder will give me notice of this choice. (q Calculalion of Olanges Before each Change Date, tlle Note Holder will calculate my new interest rate by adding SEVEN AND 95/100 percentage point(s) ( 7.950% ) to tlle Current Index. The Note Holder will then round the result of this addition to the next higher one-eighth of one percentage point (0.125 %). Subject to Ùle limits stated in Section 4(D) below, this rounded amount will MULTlSTATE ADJUSTABLE RATE IUDER-UBOR INDEX - Single Family Page 1 of 3 /r'ð ~, ~. USRlU021 (01-13,')9) !," .' '!''''i ,',i .....~Æ' Û U.:}.I.L'--2J.iûC) (' n '.) r: 8 ) \" ....1 t Loan Number: 32 103 124 5 Servicing Number: 002017628 - 5 Date: 12/08/05 be my new interest rate until the next Change Date. The Note Holder wil1 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 [he Jvfaturity Date at lilY new interest rate in substantially equal payments. The result of this calculation will be the new amount of my mo nthl y payment. (D) Limits on Interest Rate OläIlges The interest rate I am required to pay at the tirst Change Date will not be greater than 13.100% or less than 10.100% . Thereafter, m)' interest rate willnevèr be increased or decreased on any single Change Date by more than one percentage poiIlt (1.0 %) fIOlI1 the rate of interest I have been paying for the preceding six months. In no event wil1 my interest rate be greater than 16 . 100 % or less than 10 . 100 % (E) Effective Date of OIaIlges My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the tirst monthly paymel1l date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will de1iver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include illti:muation required by law to be givenllle and also the title and telephone Humber of a person who will answer any question I may have regarding the notice. TRANSFER OF THE PROPERTY OR A BENEFIClAL INTEREST IN BORROWER Covenant 17 of the Security Instrument is amended to read as foHows: Tr.msfer 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 benetìcial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in 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 loan were being made to the transteree; 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 ill 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 may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates ùle transferee to keep all Ùle promises and agreements made in the Note and in ùlÍs Security Instrument. Borrower wil1 continue to be obligated under the Note and ùlÍs 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 tÌ'om the date the notice is delivered or mailed within which Borrower must pay all sums secured by ùlÍs Security Instrument. If Borrower fails to pay ùlese sums prior to the expiration of ùlÍs period, Lender may invoke any remedies permitted by this Security Instrument without furùler notice or demand on Borrower. MULTISTATE ADJUSTABLE RATE R1DER-UROR INDEX-Single Family Page 2 of 3 ~, // / ºV' USRlOon (01-23,99) , ,\,,-',c8 ' '" .{ ,,-) ¡'," i. U U::3.:l..-':¡:"-b /... 0 3 1', 9 :J u Loan Number: 321031245 Servicing Number: 002017628 - 5 Date: 12/08/05 BY SIGNING BELOW. Borrower accepts and agrees to the terms and covenants contained in this ~-:~-, -,-' / ~~D ~ KEVIN L. BRUNKHARDT (Seal) (Seal) (Seal) (Seal) MULTlSTATE ADJUSTABLE RATE RIDEll-lJBOR INDEX-Sil1gle Family Page 3 of 3 usm0023 (02-23-99)