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Home My WebLink About914418 0698632619 "\ i,.,; r Return To: n r n '.> 7 3 \., ,j \,., u· FIELDSTONE MORTGAGE COMPANY 11000 BROKEN LAND PKWY, #600 COLUMBIA, MD 21044 Prepared By: ERIN CASIAS FIELDSTONE MORTGAGE COMPANY [SpRce Above Tlus Line For Recording Data) MORTGAGE MIN 100052606986326196 DEFINITIONS RECEIVED 12/13/2005 at 4:09 PM RECEIVING # 914418 BOOK: 607 PAGE: 373 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY \ ' . .J Words used in multiple sections of this document are ddined below and other words are defined in Sections 3,11,13,18,20 and 21. Certain fL11es regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this docwnent, which is dated together with all Riders to this document. (B) "Borrower" is December 9, 2005 ,\ ...I #fJ DALLAS A, HUGHSTON" AS SOLE Ol\lNER /1 {) , i 0 '\A Borrower is the mortgagor under this Security Instmment. (C) "MERS" is Mortgage Electronic Registration Systems, Inc, MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns, ¡HERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone llumber of P,O. Box 2026, Flint, MI 48501-2026, teL (888) 679-MERS, WYOMING -Single Family· Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS Form 3051 1/01 Q -6A(WY) (0005) @ ,.%.h Page 1 of 15 InítiaIS~~ VMP MORTGAGE FORMS (800)521-7291 11111111111111111111111111111111111 r' C\"Í1 1') ð ,.~ 8 ~j-.:.~...;;Lh.ï..: il~ (' {Ì n ", 7 ... ,~.. ',) \. J .-.,....., (D) "Lender" IS FIELDSTONE MORTGAGE COMPANY Lender is a orgaruzed and existing under the laws of MARYLAND Lender's address is 11000 BROKEN LAND PKWY, #600 COLUMBIA, MD 21044 (E) "Note" means the promissory note signed by Borrower and dated The Note states that Borrower owes Lender TWO HUNDRED ELEVEN THOUSAND FIVE HUNDRED & 00/100 Dollars (U.S, $ 211,500,00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JANUARY 1, 2036 (F) "Property" means the property that is described below under the heading "Transfer of Righ!s in the Property. " (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all swns due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: CORPORATION December ninth, 2005 ~ Adjustable Rlrte Rider o Balloon Rider o VA Rider o Condominium Rider o Planned Unit Development Rider o Biweekly Payment Rider o Second Home Rider o 1-4 Pcunily Rider o Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable tinal, non-appealable judicial opinions, (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 Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electroruc teoninal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or aUÙ10rize a tinancial institution to debit or credit an account. Such tern1 includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse: transfers, (L) "Escrow Items" means those items Ù1at are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of déU11ages, or proceeds paid by any Ù1ird party (oÙ1er Ù1an insurance proceeds paid under Ù1e coverages described in Section 5) for: (i) damage to, or destruction of, Ù1e 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, Ù1e value ,md/or condition of Ù1e Property, (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or dèfault on, the Loan, (0) "Periodic Payment" means Ù1e regularly scheduled amount due for (i) principal and interest under ù1e Note, plus (ii) any amounts under Section 3 of Ù1is Security Instrument. (P) IIRESPA" means Ù1e Real Estate Settlement Procedures Act (12 U.s.e. Section 2601 et seq,) and its implementing regulation, Regulation X (24 e.P,R. Part 3500), as ù1ey might be amended from time to time, or any additional or successor legislation or regulation Ù1at governs Ù1e s,une 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 the Loan does not qualify as a "federally related mortgage loan" under RESPA, C -6A(WY) (0005) Œ> Page 2 of 15 Iniilals:$ Form 3051 1/01 fi. .(;,, ",;1 J"~ /it ," Q V'-.:/ ..l.,'V:Ii..iLa lìn '71"- ,. '-:,j L-"\, ,.J \... \..) U (Q) "Successor in Interest of' Borrower" means any party that has taken title to the Property, whèther or not that party has assumed Borrower's obligations under the Note and/or this Security Jnstrwnent. 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 perfon11ance of Borrower's covenants and agreements under this Security Instrument and the Note, For this 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, with power of sale, the following described property located in the COUNTY of Lincoln (Type of Recording Jurisdiction] (Name of Recording Jurisdiction] LOT 70 OF STAR VALLEY RANCH PLAT 16, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. Parcel ID Number: 168 ALTA DRIVE THAYNE ("Property Address "): 34191130010800 which currently has the address of [Street] (City] ,Wyoming 83127 (Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property, All replacements and additions shall also be covered by ù1Îs Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property, " Borrower understands and agrees that t-,ŒRS holds only legal title to the interests granted by Borrower in ùlÌs Security Instrument, but, if necessary to comply with law or custom, ¡vIERS (as nominee for Lender and Lender's successors and assigns) has the 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 cancèling Ùlis Security Instrument. BORROWER COVENANTS Ùlat Borrower is lawfully seised of the estate hereby conveyed and has ùle right to mortgage, grant and convey Ùle Property and that Ùle Property is unenCllmbered, except for encumbrances of record. Borrower warrants and will defend generally Ùle title to the Property against all claims and demands, subject to any encumbrances of record, THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-unifonn covenants with limited variations by jurisdiction to cons,itute a uniform security instrument covering real property, G -6A(WY) (0005) @ Page 3 0115 Ir,rlials .¿: Form 3051 1/01 0698632619 " Ii."'" 'c, ß,18:ì ~J~,~LLLLk r (\ n ') I"j 6 ,~ ,) v ...J ( UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and allY prepayment charges and late charges due under the Note, Borrower s]¡,¡ll also pay funds for Escrow Hems pursuant to Section 3, Payments due under the Note and ùlis Security Instrument shall be made in l],S, currency. However, if any check or oùler instrwllent received by Lender as payment under ùle Note or t!¡is Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of Ùle following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agellcy, instnunentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in Ùle Note or at such other location as may be designated by Lender in accordance wiùl Ùle notice provisions in Section 15, Lender may return any payment or partial payment if the payment or partial payments are insuffIcient to bring the Loan current. Lender may accept any payment or partial payment insuftlcient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at Ùle time such payments are accepted, If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds, Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall eiÙler 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 iIlilllediately prior to foreclosure, No offset or claim which Borrower might have now or in ùle future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or perfonning the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as oùlerwise described in ùlis Section 2, all payments accepted and applied by Lender shall be applied in tile following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3, Such payments shaH be applied to each Periodic Payment in tile order in which it became due, Any remaining amounts shall be applied tlrst to late charges, second to any otller amounts due under tl1Ís Security Instrwllent, 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, the 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 ù¡e repayment of tile Periodic Payments if, and to tile extent ùlat, each payment can be paid in full. To tile extent that any excess exists after tile payment is applied to the full payment of une or more Periodic Payments, such excess may be applied to any late charges due, Voluntary prepayments shall be applied first to any prepayment charges and then as described in Ùle Note, Any application of payments, insurance proceeds, or MiscelJaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change tile amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender 0]] tile day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and otller items which can attain priority over this Security InstIlllllent as a lien or encumbrance on tile Property; (b) leasehold payments or ground rents on Ùle Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Iv[ortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of Ùle payment of Mortgage Insurance premiums in accordance WiÙI Ùle provisions of Section 10, These items are called "Escrow Items." At origination or at allY time during tile tenn of the Loan, Lender may require that Community Association Dues, Pees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Hem, Borrower shall promptly furnish to Lender all notices of amounts to be paid under ù¡is Section, Borrower shall pay Lender tile Funds for Escrow Hems unless Lender waives Borrower's obligation to pay ùle Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Hems at any time, Any such waiver may only be in writing, In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Q -6A(WY) (0005) @ Page 4 at 15 Inilia!S~¿t Form 3051 1/01 0698632619 ~,',)" {.;<1 . "-..:.' '<Rl',Q Lit ' i..J .!) n ';¡ 7 '7 '- \... V Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may œquire, Burrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9, If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the mnount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such mnount. Lender may revoke Úte waiver as to any or all Escrow Items at any time by a notice given in accordance wiÚt Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such muounts, that are Ú¡en required under this Section 3, Lender may, at any time, collect and hold Funds in an amount (a) suftìcient to permit Lender to apply the Funds at the time specitìed under RESPA, and (b) not to exceed the maximum mnount a lender can require under RESPA, Lender shall estimate the amount of Funds due on Úte 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 an institution whose deposits are so insured) or in any Federal Home Loan Bank, Lender shall apply Ú¡e Funds to pay the Escrow Items no later than the time specitied under RESPA, Lender shall not charge Borrower for holding and applying the Funds, annually analyzing Úte escrow account, or verifying Ú¡e Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pennits Lender to make such a charge, Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds, Borrower and Lender can agree in writing, however, that interest shall be paid on Ú¡e Funds, Lender shall give to Borrower, WiÚlOut charge, an annual accounting of Ú¡e Funds as required by RESP A. If Ú¡ere is a surplus of Funds held in escrow, as detìned under RESP A, Lender shall account to Borrower for Ú¡e excess funds in accordance with RESP A, If Útere is a shortage of Funds held in escrow, as detìned under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender Ú¡e mnount necessary to make up Ú¡e shortage in accordance with RESPA, but in 110 Inore than ]2 monÚ¡]y payments, If there is a detìciency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender Ú¡e mTIount necessary to make up Úte deficiency in accordance WÌÚ1 RESPA, but in no more Ú1,!l1 12 monÚ1ly payments, Upon payment in full of all sums secured by ÚÜs Security Instrument, Lender shall promptly œfund to Borrower any Funds held by Lender, 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over ÚÜs Security Instrument, leasehold payments or ,ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any, To the extent Útat these items are Escrow Items, Borrower shall pay Ú¡em in Úte manner provided in Section 3, Borrower sha]] promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of Ú1e obligation secured by Ú¡e lien in a manner acceptable to Lender, but only so long as Borrower is perfonning such agreement; (b) contests Ú¡e lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of Úte lien while Ú10se proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of Ú1e lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines that any part of the Property is subject to a lien which can attain priority over Ú1is Security Instrw11ent, Lender may give Borrower a notice identifying Ú1e lien, Within 10 ~ -6A(WY) (0005) @ Page 5 of 15 '"",.,,~ Form 3051 1/01 0698632619 ,1,)" ,ç..., ,r /':"11 "') Of. ::J ~.'~-1~f-l:Lá'-iLb (' n n ,., ~1 8 .....~ '\) \} '-~ ( " days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set fortb above in this Section 4, Lender Illay require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan, 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by tire, hazards included within the tenn "extended coverage," and any other hazards including, but not limited to, earù1quakes and t1oods, for which Lender requires insurance, This insurance shall be maintained in the ,unounts (including deductible leVèls) and for Ù¡e periods that Lender requires, What Lender requires pursuant to tbe preceding sentences can change during the tenn of the Loan, The insurance carrier providing the insurance shall be cbosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably, Lender may require Borrower to pay, in connection with this Loan, eitber: (a) a une-time charge for t10ud zone determination, certification and tracking services; or (b) a one-time charge for t100d zone detenrlination and cenitìcalion services and subsequent charges each time remappings or similar changes occur which reasonably might affect such detemlÌnation or certification, Borrower shall also be responsible for Ù1e payment of any fees imposed by the Federal Emergency Management Agency in connection wiÙ1 Ù1e review of any t100d zone detem1ination resulting from an objection by Borrower. If Borrower tiÜls to maintain any of Ù1e coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense, Lender is under no obligation to purchase any particular type or amount of coverage, Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in Ù1e Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage Ù1an was previously in effect. Borrower acknowledges that the cost of Ù1e insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained, Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall hear interest at Ù1e Note rate from the date of disbursement and shall be payable, wiù¡ such interest, upon notice froIll Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Le:nder's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee, Lender shall have ù1e right to hold the policies and renewal certificates, If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices, If Borrower obtains any fom1 of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee, In Ù1e 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, wheÙ¡er or not the underlying insurance was required by Lender, shaH be applied to restoration or repair of the Property, if the restoration or repair is economically kasible 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 Ù1at such inspection shall be undertaken promptly, Lender may disburse proceeds for the repairs and restoration in a single payment or in a se:ries of progress payments as the work is completed, Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or oÙ1er third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, Ù1e insurance proceeds shall be applied to C -6A(WY) (0005) @ Page 6 of 15 InitiaIS:~ Form 3051 1/01 0698632619 ~.}~) ~~l~ ~~ (k·1L8 .' - /Ì n, q ~, 9 '" ,J \' ~ , the sums secured by this Security Instrument, whether or not then due, with tlw excess, if any:p,lict"io Borrower. Such insurance proceeds shall be applied in tile order provided for in Section 2, If Borrower abandons tile Property, Lender may tile, negotiate and settle any available insurance cJaim and related matters, If Borrower does not respond witllin 30 days to a notice from Lender that tlw insurance carrier has offered to settle a claim, tllen Lender may negotiate and settle tile claim, The 30 day period will begin when the notice is given, In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed tile amounts unpaid under the Note or tllis Security Instrument, and (b) any other of Borrower's rights (0 tiler tllan tile right to any refund of unearned premiullls paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to tile coverage of tile Property, Lender may use tile insurance proceeds eitller to repair or restore the Property or to pay amounts nnpaid under the Note or this Security Instrument, whetller or not tllen due, 6. Occupancy. Borrower shall occupy, establish, and use tile Property as Borrower's principal residence within 60 days after tile execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasouably withheld, or unless extenuating circumst:lnces exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. BOIrlJwer shall not destroy, damage or impair the Property, allow tile Property to deteriorate or commit waste on tile Property, Whetller or not Borrower is residing in the Property, Borrower shall maintain tile Property in order to prevent tile Property from deteriorating or decreasing in value due to its condition, Unless it is determined pursuant to Section 5 tllat repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection Witll damage to, or the taking of, tile Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes, Lender may disburse proceeds for the repairs and restoration in a si ngle payment or in a series of progress payments as the work is completed, If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for tile completion of such repair or restoration, Lender or its agent may make reasonable entries upon and inspections of tile Property, If it has reasonable cause, Lender may inspect tile interior of the improvements on tile Property, Lender shall give Borrower notice at tile time of or prior to such an interior inspection specifying such reasonable cause, 8. Borrower's Loan Application. Borrower shall be; in default if, during the Loan applil:alion process, Borrower or any persons or entities acting at tile direction of Borrower or wiÙl Borrower's knowledge or consent gave materially false, misleading, or inaccurate infonnation or statements to Lellllcr (or failed to provide Lender with material infomlatiou) in connection with tile Loan, Material representations include, but are not limited to, representations concerning Borrower's occupancy of tile Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perfonn tile covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might siguiticantly affect Lender's interest in the Property and/or rights under tllis Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to tuforce laws or regulations), or (c) Borrower has abandoned tile Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in tile Property and rights under this Security Instrument, including protecting and/or assessing the value of tile Property, and securing and/or repairing the Property. Lender's actions can include, but arc not limited to: (a) paying any Stuns secured by a lieu which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable Q -6A(WY) (0005) ® Page 7 of 15 ø/ Inilials ø(j" Form 3051 1/01 0698632619 ~)~)'~:! ;1í 11 j() ~'40 " lìn"'OQ "_.-:J \..' ~ O' attorneys' fees to protect its interest in tile Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding, Securing Ùle Property 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 oÙler code violations or dangerous conditions, and have utilities turned on or off. Altilough Lender may take action under ùlÍs Section 9, Lender does not have to do so and is not under any duty or obligation to do so, It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9, Any amounts disbursed by Lender under Ù1Ïs Section 9 shall become additional debt of Borrower secured by tilis Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, witil such interest, upon notice from Lender to Borrower requesting payment. If Ùlis Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease, If Borrower acquires fee title to Ùle Property, Ùle leasehold and Ùle fee title shall not merge unless Lender agrees to Ùle merger in writing, 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay Ùle premiums required to maintain Ùle Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from Ùle mortgage insurer tilat previously provided such insurance and Borrower was required to make separately designated payments toward Ùle premiwns for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to Ùle Mortgage Insurance previously in eftè:ct, at a cost substantially equivalent to tile cost to Borrower of tile Mortgage Insurance previously in effect, trom an alternate mortgage insurer selected by Lender, If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender Ùle amount of Ùle separately designated payments Ùlat were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain tilese payments as a non-refundable loss reserve in lieu of Mortgage Insurance, Such loss reserve shall be non-refundable, notwithstanding the fact that tile Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve, Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in Ùle amount and for tile period Ùlat Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward Ùle premiums for Mortgage Insurance, If Lender required Mortgage Insurance as a condition of making Ùle Loan and Borrower was required to make separately designated payments toward tile 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 WÎÙI any written agreement between Borrower and Lender providing for such tennination or until tenni14ltion is required by Applicable Law, Noùling in Ùlis Section 10 affects Borrower's obligation to pay interest at Ùle rate provided in ùle Note, Mortgage Insurance reimburses Lender (or any entity Ù1at purc]¡ases Ùle Note) for certain losses it may incur if Borrower does not repay the Loan as agreed, Borrower is not a party to the Mortgage Insurance, Mortgage insurers evaluate Ùleir total risk on all such insurance in force from time to time, and may enter into agreements WÎÙI oÙler parties Ùlat share or modify their risk, or reduce losses, These agreements are on tenns and conditions ùlat are satisfactory to Ùle mortgage insurer and the otiler party (or parties) to Ùlese agreements, These agreements may require Ùle mortgage insurer to make payments using any source of funds tilat ù1e mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums) . As a result of ùlese agreements, Lender, any purchaser of ùle Note, anoÙler insurer, any reinsurer, any otiler entity, or any affiliate of any of Ù1e foregoing, may receive (directly or indirectly) ;unounts that derive trom (or might be characterized as) a portion of Borrower's payments for Jvlortgage Insurance, in exchange for sharing or modifying tile mortgage insurer's risk, or reducing losses, If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to ù1e insurer, the arrangement is often termed "captive reinsurance," FurÙ1er: (a) Any such agreements will not affect the amounts that Borrower has agreed 10 pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for IV10rtgage Insurance, and they will not entitle Borrower to any refund. Q -6A(WY} (0005) (!) Page 8 of 15 'YI!:P Initials: ~.ø:: Form 3051 1/01 0698632619 /, 0!í! '8" ~._,.,_6."1f.:~ ~;--" ..... (\ n I~:, 8' 1 .~-) \.} J (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 Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of ~\IIY 'Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are haeby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds 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 Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly, Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such tv1iscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds, If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, WiOl the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shalllJe applied in the order provided for in Section 2, In the event of a total taking, destruction, or loss in value of the Property, Ùle Miscellaneous Proceeds shall be applied to ùle sums secured by ùlis Security Instrument, wheùler or not then due, WiÙl the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which Ùle fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of Ùle sums secured by this Security Instrument immediately before ùle partial taking, destruction, or loss in value, uIÙess Borrower and Lender oùlerwise agree in writing, ùle sums secured by this Security Instrument shall be reduced by Ùle amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) ùle total amount of Ùle sums secured immediately before Ùle partial taking, destnlction, or loss in value divided by (b) the fair market value of the Property immediately before Ùle partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In Ùle event of a partial taking, destruction, or loss in value of ùle Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the ¡mlount of the sums secured inunediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, Ùle Ivliscellaneous Proceeds shall be applied to Ùle swns secured by ù1Ís Security Instrument wheùler or not ùle sums are ùlen due, If Ùle Property is abandoned by Borrower, or if, after notice by Lender to Borrower that Ùle Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender wÎÙ1in 30 days after the date ùle notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by ùlÍs Security Instrwnent, whether or not ùlen due, "Opposing Party" means Ùle ùJÍrd party Ùlat owes Borrower Miscellaneous Proceeds or ùle party against whom Borrower has a right of action in regard to Miscellaneous Proceeds, Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of tile Property or otiler material impainnent of Lender's interest in ùle Property or rights under ùlis Security Instnllnent. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section ]9, by causing Ùle action or proceeding to be dismissed Witil a ruling Ùlat, in Lender's judgment, precludes forfeiture of Ùle Property or other material impairment of Lender's interest in ÙIe Property or rights under ù1Ìs Security Instrument. The proceeds of any award or claim for damages that are attributable to Ùle impail11lent of Lender's interest in Ùle Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in ùle order provided for in Section 2, tG -6A(WY) (0005) ® Page 9 01 15 InllìaìS'-"~ Form 3051 1/01 0698632619 , ','¡ ",,'" i\¡ /:i'~ :[.} ~L.J~;~LoL~"-it:4Ld I') n .', [) 2 ; ) ,J .., \. ~,. V 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extensiun of Úle time for payment ur modification of amortization of the sums secured by úÜs Security Instrwnent granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate tu release Ule 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 fÖr payment or otherwise modify amortization of the sums secured by UÜs Security Instrument 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, WiUlout limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less Úlan Ule amount Ulen due, shall not be a waiver of or preclude 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 juint and several. However, any Borrower who co-signs this Security Instrument but does not execute Úle Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey Ú'le co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by úÜs Security InstfLlment; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accoml1lodations with regard to Ule tenns of U1is Security Instrument or the Note without the co-signer's consent. Subject to Ule provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under Úlis Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benetits under UÜs Security Instrument. Borrower shall not be released ti"OlJ1 Borrower's obligations and liability under this Security Instnuuent unless Lender agrees to such release in writing, The covenants and agreements of ú1is 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 perfOl11led in connection with Borrower's default, for the purpose of protecting Lender's interest in Úle Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees, In regard to any oUler fees, Ule absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee, Lender may not cbarge: fees Ulat are expressly prohibited by this Security Instrument or by Applicable Law, If Ule Loan is subject to a law which sets maximum loan charges, and Úlat law is finally intel1)reted so Ulat Úle interest or oÚler loan charges collected or to be collected in connection WiÚI the Loan exceed the pennitted limits, then: (a) any such loan charge shall be reduced by Ule amount necessary to reduce Ule charge to the pel11litted limit; and (b) any sums already collected from Borrower which exceeded pennitted limits will be refunded to Borrower. Lender may choose to make UJis refund by reducing Úle principal owed under Ule Note: or by making a direct payment to Borrower. If a refund reduces principal, the reduction wi1l be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under Úle Note), Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge, 15. Notices, All notices given by Borrower or Lender in connection Wiúl Ulis Security Instrument must be in writing, Any notice to Borrower in connection with this Security Instrurnent 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 oUler means, Notice to anyone Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires oÚlerwise, The notice address shall be Ule Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address, If Lender specifies a procedure fè)r reporting Borrower's change of address, Ulen Borrower shall only report a change of address through Ú¡at specified procedure, There ¡nay be only one designated notice address under this Security Instrument at anyone time, Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated anOÚler address by notice to Borrower. Any notice in connection WiÚl Ulis Security Instrument shall not be deemed to have been given to Lender until actually received by Lender, If any notice required by úlis Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. cG -6A(WY) (0005) (!) Page 10 of 15 InltiaIS:~, Form 3051 1/01 0698632619 d :~Ji. !1ét18 (' !Î n .~, 8 3 " . . \ t·~ 4 '.I \.. ...~ 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be govnlled by federal law and the law of the jurisdiction in which the Property is located, All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law, Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of Û1is Security Instrument or the Note conflicts wiÛ1 Applicable Law, such cont1ict shall not affect other provisions of this Security Instrument or the Note which can be given effect without ù1e cont1icting provision, As used in ù1is Security Instrument: (a) words of the masculine gender shall mean and illltllde corresponding neuter words or words of Û1e feminine gender; (b) words in ù1e singular shall mean and include Û1e plural and vice versa; and (c) the word "may" gives sole discretion wiù10ut any obligation to take any action, 17. Borrower's Copy. Borrower shall be given one copy of Ù1e Note and of ù1is Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in Ù1e Property" means any legal or benetìcial interest in the Property, including, but not limited to, ÙlOse beneticial interests transferred in a bond for deed, COlllract for deed, installment sales contract or escrow agreement, Ùle intent of which is Ù1e transfer of title by Borrower at a future date to a purchaser. If all or any part of Û1e Property or any Interest in Ùlt Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) wiÙ10ut 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 ù1Ís option, Lender shall give Borrower notice of acceleration, The notice shall provide a period of not less ùlan 30 days from Ù1e 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 ùlis period, Lender may invoke any remedies pennitted by ùlÌs Security Instrwnent without furù1er notice or demand on Borrower, 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have ù1e right to have enforcement of this Security Instrument discontinued at allY time prior to ù1e earliest of: (a) five days before sale of the Property pursuant to allY power of sale contained in this Security Instrwnent; (b) suclt oùler period as Applicable Law llIight specify for the teunination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which Ù1en would be due under this Security Instrument and Ù1e Note as if no acceleration had occurred; (b) cures any default of any oÙler covenants or agreements; (c) pays all expenses incurred in enforcing ù1is Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and oùler fees incurred for ùle purpose of protecting Lender's interest in Ù1e Property and rights under this Security Instrument; ane! (d) takes such action as Lender may reasonably require to assure Ù1at Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay Û1e sums secured by this Security Instrument, shall continue undl(Jlged, Lender may require that Borrower pay such reinstatement SW11S and expenses in one or more of Ùle following fonns, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn UP(JIl an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred, However, ù1Ìs right to reinstate shall not apply in Ù1e case of acceleration under Section 18, 20. Sale of Note; Change of Loan ServiceI'; Notice of Grievance. The Note or a partial interest in the Note (togeù1er wiÛ1 ù1is Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in Ù1e entity (known as Ù1e "Loan Servicer") that collects Puiudic Payments due under ù1e Note and ù1is Security Instrument and performs oÙler mortgage loan servicing obligations under Ù1e Note, ù1is Security Instrument, and Applicable Law, There also might be one or more changes of Ù1e Loan ServiceI' unrelated to a sale of Ù1e Note, If there is a change of the Loan Servicer, Borrower will be given written notice of ù1e change which will state Ù1e name and address of the new Loan Servicer, the address to which payments should be made and any other II1formation RESPA requires in connection Wit!1 a G -6A(WY) (0005) Œ> Page 11 of 15 ,¿ffi In¡tiaIS:~£- Form 3051 1/01 0698632619 . ,', Cc "1'" C', (: ''i.:..,'',''·'i i-I [f\ ' 1'i:;,,¡¡ ~J,_-jj-,--~ 1i 0 r: !Î 0 .-. 0 \.; f,J .I...) Ô 11 notice of transfer of servicing, If the Note is sold and thereafter the Loan is serviced by a Loan Servicer oÙler than Ùle purchaser of Ù1e Note, Ù1e mortgage loan servicing obligations to Borrower will remain with Ù1e Loan Servicer or be transferred to a successor Loan ServiceI' and are not assumed by the Note purchaser unless otherwise provided by Ù1e Note purchaser. NeiÙler Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) Ù1at arises from the oÙ1er party's actions pursuant to this Security Instnunent or that alleges that the oÙ1er party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notitìed the other party (wiù1 such notice given in compliance Witi1 the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasoilllble period after the giving of such notice to take corrective action, If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of ù1is paragraph, The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20, 21. Hazardous Subst'illces. As used in this Section 21: (a) "Hazardous Substances" are ÙlOse substances defined as toxic or hazardous substances, pollutants, or wastes by EnvirOlID1ental Law and the following substances: gasoline, kerosene, oilier 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 Ù1e jurisdiction where Ù1e Property is located that relate to heaJth, safety or environmental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or removal action, as detìned in EnvirolID1ental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or oÙ¡erwise trigger an Environmental Cleanup, Borrower shall not cause or pennit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property, Borrower shall not do, nor allow anyone else to do, anyÙ1Íng affecting the Property (a) Ù1at is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the valUè of the Property, The preceding two sentences shall not apply to ilie presence, use, or storage on Ù1e Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nOHnal residential uses and to mainterumce of the Property (including, but not limited to, hazardous substances in conSlUner products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any govermnental or regulatory agency or private party invo] ving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowJedge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or Ùlreat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of Ù1e Property, If Borrower learus, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shaH promptly take all necessary remedial actions in accordance wiÙ1 Environmental Law, NOÙ1ing herein shall create any obligation on Lender for an Enviromnental Cleanup. C -6A(WY) (0005) @ Page 12 of 15 InltíalS'~ Form 3051 1/01 0698632619 ',¡~~ ;- tß. 'í!, 8- ~Jh..)._.'..'·-L -"..1L " n , 1Î n ,. 8 1". "." '.) , -: I 'ì L \...... U NON-UNIFORM COVENANTS, Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (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; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale 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 sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secmen 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 Ule fee is paid to a third pany ti)r services rendered and the charging of the fee is pennitted under Applicable Law, 24. W¡úvers. Borrower releases and waives all rights under and by virtue of Ule homestead exemption laws of Wyoming, C -6A(WY) (0005) @ Page 13 of 15 ,,,""', g Form 3051 1/01 <: /~.', ¡;~,'~ '£) --" l;...U:~l.=» 0698632619 r-'nn"S0 ',' '-J d"::; , 0 BY SIGNING BELOW, Borrower accepts and agrees to the tenns and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded WiUl it. Witnesses: DALLAS A, (Seal) -Borrower (Seal) ,Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -BOrrO\V(;f (Seal) -Borrower __ (Seal) -Borruwer C-6A(WY) (0005) @ Page 14 of 15 Form 3051 1/01 0698632619 _.~. ~~[~ "11.8 !Î n '-'8 ~7 ,¡ t -, \.1 I.., ...." STATE OF WYOMING, Lincoln County ss: by The foregoing instrw11ent was acknowledged before me this 9th day of December, 2005 DALLAS A. HUGHSTON My Commission Expires: 9-15-07 ~~'cu J/ ~. GLORIA K. BYERS· NOTARY PUBLIC County of ~~ State of Uncoll1 ~ Wyoming My CommIssIon Expires Sept. 15.2007 <a -6A(WY) (0005) @ Page 15 of 15 IrlltialS~ Form 3051 1/01 ;;1 t3'''I Q ,-~_.~' ""'Ii'La (, r..... n ' . 8 0 ',,' ' ¡ \) "': }.¿ '..... 'I&J U ADJUSTABLE RATE RIDER (LIBOR Six-Month Index (As Published In The Wall Street lUIIlI/o/) - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this ninth day of December, 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 Adjustable Rate Note (the "Note") to FIELDSTONE MORTGAGE COMPANY ("Lender") of the same date and covering the property described in the Security Instrument and located at: 168 ALTA DRIVE, THAYNE, Wyoming 83127 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT, THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY, ADDITIONAL COVENANTS, In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A.INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 9 .250 %, The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of January 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 with the first Change Date, my interest rate will be based on an Index, The "Index" is the average of interbank offered rates for six month U ,S. dollar-denominated deposits in the London market ("LlBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable 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 FIVE AND ONE-HALF percentage points ( 5.500 %) to the Current Index, The Note Holder will then round the result of MULTISTATE ADJUSTABLE RATE RIDER - LlBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL ) - Single Family - Fannie Mae Uniform Instrument S-B38R (0402) Form 3138~) Pag@e 1 of 3 Initials: ;çfffZ- ~8~~)~2~r:~=~~ Solutions, Inc. 11111111111111111111111111111111111 , "'< ,.' i ð"'j Q, ~ ¡'J~. .¡, .._~ -ïlÏ-.!....J ._y -- .~_... ("l\n"09 '..Þ ',) '.: 00 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 12 .250 % or less than 9 .250 %, Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than ONE percentage points 1.000 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 15,250 %, (E) Effective Date of Changes My interest rate will never be less than 9.250%, 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 interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B, TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender s prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably 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. ~-838R (0402) @ Page 2 of 3 Initials:~ Form 31381/01 !"j,!,' ,.,'--; ',j.J~___)') L!IS~ ~;:~ ...-; .JL, LJ n n ¡.:' n 0 '.1 \.~, V \.J 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 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. BY SIGNING BELOW, Borrower contained in this Adjustable Rate Rider. (Seal) -Borrower accepts and agrees to the terms and covenants .~~~~ ~~æ~(seal) -Borrower DALLAS A. HUGH ON _(Seal) -Borrower __ (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower S-838R (0402) @ Page 3 of 3 Form 31381/01