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Home My WebLink About916587 "'nf1'444 ' '. 1 " ~. ,. . ..0 '.: '.~ .~... ~u Mter Recording Return To: COUNTRYWIDE: HOME: LOANS, INc. MS SV-79 DOCUMENT PROCESSI:NG P.O.Box: 10423 Van NÜys, CA 91410-0423 Prepared By: MICHELLE: SALAS RECEIVED 3/10/2006 at 3:29 PM RECEIVING# 916587 BOOK: 614 PAGE: 144- JEANNE WAGNER UNCOLN COUNTY ClERK, KEMMERER, WY [Space Above This Line For Recording Data] E"A14804M 00012378618403006 [Esarow/CLosing tJ [Doa ID t] MORTGAGE ~1000157-0006410873-7 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18,20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document:. which is dated MARCH. 06, 2006 with all Riders to this document. (B) "Borrower" is JOSEPH. W BALSAMO, A SINGLE: MAN , together -1 I Borrower is the mortgagor under this Security Instrument. (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. MERS is' the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware. and has an address and telephone number of P.O. Box 2026, Flint:. MI48501-2026, tel. (888) 679-MERS. (D) "Lender" is COUNTRYWIDE: HOME: LOANS, INC. Lenderis a CORPORATION organized and existing under the laws of NEW YORK Lender's address is 4500 Park Granada MSNif SVB-314, Ca1abasas, CA 91302-1613 (E) "Note" means the promissory note signed by Borrower and dated MARCH. 06, 2.006 . The Note states that Borrower owes Lender ONE: HUNDRED TWENTY THOUSAND and 00/100 Dollars (U.S. $ 120, 000 . 00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than APRIL 01, 2.036 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property. " WYOMING-Sll1g1e Fåmily-Fánnl& Mae/Freddie Mac UNIFORM INSTRUMENTWITft MERS ~ -õA(WY) (0005) CONVNA Paga! ot11 CHL (08l05}(d) VMP Mortgage Solutions, Inc. (BOO)5Z1-7Z91 Form3U!i1 1/01 II~ III ~ I ... Z. 3 99-1 ... ~~~mi~~~~imm~~ Q' ,7 ¡j 091.6587 r'on . 45 L I.Jl DOC ID~: OOOl23786l8403006 (G) "Loan" meBIlS the debt evidenced by the Note, plus .interest, BnY prepayment charges Bnd late cruu-ges due under the Note, and 1ill sums due under this Security Instrument, plus interest. (H) ".Riders" meBIlS 1ill Riders to this Security Instrument that Me executed by Borrower. The following Riders Me to be executed by Borrower [check box as applicable]: :w Adjustable Rate Rider 0 Condominium Rider o Second Home Rider o Balloon Rider 0 Planned Unit Development Rider 0 1-4 FIDDily Rider DVARider 0 Biweekly Payment Rider DOther(s) [specify] (I) "Applicable Law" meBIlS 1ill controlling applicable federal, state and local ~s, xegulations, ordinances and administrative rules and orders (that have the effect of law) as well AS all applicable final, Don-appealable judicial opinions. (J) "Community Association Dues, Fees, .and Assessments" meBnS 1ill dues, fees, ASsessment~ and other charges that Me imposed on Borrower or the FIoperty by a condominium association, homeowners association or similar organization. (K) ''Electronic Funds Tr.ansfer" means any transfer of funds, other than a transaction orizjnlltp.d by check, drnft, or similar paper instrument, which is initiated through Bn electronic .terminal, telephonic instrument, computer, or magnetic tape so .as 10 order, instruct, or .authorize a finllncilll institution to debit or credit an .account Such tenn includes, but is not limited . to, point-of-sale transfers, .automated teller machine transactions, transfers lnitilltt'n by telephoue, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means thoseitems that Me described in Section 3. (M) "Miscellaneous ,JJroceeds" means BnY compensation, settlement, .award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or BnY part of the Property; (üi) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value BndJor condition of the Property. (N) "Mortgage InsurJUlCe" means insurance protectÌIlg Lender 1igainst the nonpayment of, or default on, the Loan. (0) "Periodic PByment" means the xegularly scheduled .amount due for (i) principal and interest under the Note, plus (ü).any .amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (U ns.c. Section 2601 it seq.) .and its .implementinz regulation, ~gulation X (24 C.F R. Part 3500), as they might be IImenn(".d from time to time, or any.additional or successor legislation or xegulation that govemsthe same subject matter. As used in this Security Instrument, "RESPA" xclers to .all xequirements and restrictions that are .imposed in xegMd to a "fecieTII1ly xelated mortgage loan" even if the Loan does not qualify as .a "federally xelated mortgage loan" under RESPA. (Q) "Successor .inJnterest of .Borrower" means.any party that has t.aken title to thePIoperty, whether or not 1hat party l1as assumed Borrowds obligations under the Note.and/or this Security Instrument TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the xepayment of the Loan, .and all Ienewals, ~xtensions .and monifi~ations of the Note; and (ü) the perfonnance of ~orrower's covenants and BgI'œments under this .security Instrument and the Note. For this purpose, ~orrow.er does hereby mortgage, grant and convey 10 MERS (solely as noIDinre for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described propertylocated in the COUNTY of :LINCOLN !Type of Recording Jurisdiction] [Name of Jkcording Jurisdiclion] :LOT 32 OF STAR VALLEY RANCH PLAT 7, :LINCOLN COUNTY, WYOMING.AS DESCRIBED ON TIlE OFF:!: CIAL . PLAT "TEEROF. PMcelIDNumber: ~235~830~02026 which currently has the address of ~5l 5PURWOOD DRIVE, "TBAYNE [Street/City ] Wyoming B3l27- ~55 6 (npmper1y Address"): {Zip Code) ~-ÐA(WY) (0005) CHL (DBID5) Page2Df11 rDrm 3051 1/01 ::*¡~I¡*¡:i:!;;::;~ 'l'i'~!!~~!!1J ~ ~¡?~I;~¡t!j¡~;';'1 091.6587 ~;:::~:::::j::~:::~}: ; ;;;~::~~~~::;:::¡:~: C'n(1-l' 46 .\.... ".. -- DOC ID f: OOO~2378618403006 TOlili11iliK WITH 1ill the improvement~ now or hereafter erected on the property, and aU 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 the foregoing is Ieferred to in this Security Instrument as the ·'Property." Borrower understands and agrees that MERS holds only legal title· to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and 1lSSÎgns) has the right: to exercise any or 1ill of those interests, .including, but not limited to, the right to foreclose and sell the Property; and to take any 1iCtion required of Lender .including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the Iight to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrant~ and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. 11IIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenant~ with limited variations by jurisdiction to constitute a uniform security instrument covering real property . UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. P.ayment of Principal, Interest, Escrow Items, Prepayment Ch.arges,.and L.ate Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds. for Escrow Items pursuant to Section 3. Payment~ due under the Note and this Security Instrument shall be made in U.S. currency. However, jf any check or other .instrument received by Lender as payment under the Note or this Security lnstrument is Ietumed to Lender unpaid, Lender may require that any or 1ill subsequent payments due under the Note and this Security lnstrument be made.in one or more of the 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 upon an .institution whose .deposits are .insured by a federal agency, .instrumentality, or entity; or (d) Electronic Funds Transrer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be.designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may 1iCcept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to Iefuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of it~ scheduled due date, then Lender need not pay interest On unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2, Application of P.ayments or Proceeds. Except as otherwise described in this Section 2, all payment~ accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to .each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied fIrst to late charges, second to any other amounts due under this Security lnstrument, and then to reduce the principal balance of the Note. If Lender Ieceives a payment from Borrower for a delinquent Periòdic 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 the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges. due. V oluntaIy prepayments shall be .applied first to any prepayment charges and then 1lS described in the Note. Any .application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amount~ due for: (a) taxes and 1lSsessments and other items which can attain priority over this Security lnstrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, jfany; (c) premiums for any and 1ill insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in JiCcordance with the provisions of Section 10. These items are called "Escrow Item~." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees. and A~sessments, if any, be escrowed by Borrower, and such dues, fees and 1lSsessment~ shall be an Escrow Item. Borrower shall promptly furnish to Lender 1ill notices of .amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow .~ -BA(WV) (0005) CHL (DB/D5) -Page 3 Df 11 FDrm 3051 1/01 ~ r'nf"~ 47 ~., u Lf.1 . 09:lf;S8? DOC ID~: 0001237B6~B403006 Items 2t IDlY time. Any such waiver may only be ill writing. In the event of such waiver, Borrower sha1l pay directly, when and where payable, the amountc; due for IDlY Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period ac; Lender may require. Borrower's obligation to make such payments IDld to provide reccipts shall for all purposes be deemed to be a covenant IDld agreement contained in this Security lnstnunent, as the phrase "covenant IDld agreement" is used in Section 9.lf Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, IDld Borrower fails to pay 1helUIlount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount IDld Borrower shall then be obligated under Section 9 to repay to Lender IDlY such lUIlOunt. Lender may revoke the waiver ,as to IDlY or all Escrow Items .at IDlY time by a notice given in accordance with Section 15 IDld, upon such revocation, Borrower shall pay to Lender all Funds, and ill such lUIlOuntS,that are then required under this Section 3. Lender may, at any time, collect IDld hold Funds in an lUIlOunt (a) sufficient to permit Lender to apply the Funds at the time specified under RESP A, and (b) not to exceed the maximum lUIlOunt a lender can require under RBSPA. Lender shall estimate the lUIlountof Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow ltems or otherwise in 1iCcordance with Applicable Law. The Funds shall be held in IDl institution whose deposits.are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is IDl institution whose deposits.are so insured) or in IDlY Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow 1iCCOunt, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds IDld Applicable Law permitc; Lender to make such a charge. Unless IDl agreement is made ill writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower IDlY interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, IDl annual1iCcOunting of the Funds as required by RESPA. If there is a surplus of Funds held ill escrow, as defined under RESP A, Lender shall1iCcount to Borrower for the excess funds in accordance with RBSPA. If there is a shortage of Funds held in escrow, 2S defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the lUIlOunt necessary to :make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held ill escrow, as defined under RESPA, Lender shall notify , Borrower as required by RESPA, IDld Borrower shall pay to Lender the lUIlOunt necessary to make up the deficiency in 1iCcordance with RESPA,but in no more than 12 monthly payments. . Upon payment in full of all sums secured by this Security lnstrument, Lender shall promptly refund 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 CID1 attain priority over this Security lnstrument, leasehold payments or ground rents on the Property, if IDlY,.and Cnmmnnity Association Dues, Fees, and Assessments, if IDlY. To the extent that these items are Escrow ltems, Borrower shall pay them ill the:manner provided in Section 3. Borrower shall promptly discharge IDlY lien which J1aspriority over this Security lnstrnment unless Borrower: (2) agrees in writing to the payment of the obligation secured by the lien in a manner 1iCceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien ill good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien IDl 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 211aÍn priority over this Security lnstrument., Lender may give Borrower a notice identifying the lien. Within 10 nays of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the 1iCtions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender ill connection with this Loan. :5. .Property Insur.ance. Borrower shall Jœep the improvementc; now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," IDld IDlY other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be mHintHin~d in the lUIlOunts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences CID1 change during the tenn of the Loan. The insurance carrier providing the ÎnsurIDlce shall be chosen by Borrower subject to Lender's Tight 10 disapprove Borrower's choice, which .right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone det~rrnin:ltionand œrtification services and subsequent charges .each time remappings or similar changes occur which reasonably might affect such det~rrn1nHtion or certification. :Borrower shall also be responsible for the payment of any fees lluposed by the Federal :Emergency Management Agency in connection with the review of IDlY flood zone det~rrnin:ltion resulting from an objection by:Borrower. If Borrower fails to mHint:lin IDlY of the coverages described above, Lender may obtain insurance coverage, atLender's option.and Borrower's expense. Lender is under no obligation to purchase IDlY particular type or lUIlOunt of coverage. Therefore, such coverage shall cover Lender, but might or might not protect :Borrower, .Borrower's :equity in the Property, or the contents of the Property, ligainst any risk, hazard ~ ~A(WY) (OOOS) CHL (DBID5) Page 4 Df11 TDrm 3051 1/01 ~~i¡~m~~~ii~¡; Cþ !im~;;~~;m~~~¡m~ 091~6587 r'{"\{'.~48 . !"',. . \"... U \..,....-t DOC ID *: OOO~23786~8403006 or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounto; disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest lIt the Note rate from the illrte of disbursement and shall be paYllble, with such interest, upon notice from Lender to Borrower IequeSting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee .and/or lIS an additional loss payee. Lender shall have the right to .hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender .all receipts of paid premiums and renewal notices. If Borrower obtains any fann 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 lIS mortgagee.and/or lIS an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender IDld Borrower otherwise agree in writing, any insurance proceedo;, whether or not the underlying insurance WllS required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to bold 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 that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in 11 series· of progress payment<; 1lS the work is completed. Unless an 1igfeement 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 other tliird parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole oWigation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. JfBorrower lIbandons the Property, Lender may iiIe, negotÍ1lte and settle any avJÛlable insurance claim llIld related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle 11 claim, then Lender may negotiate and settle the claim. T.he 3D-day period will begin when the notice is given. In either event, or if Lender 1\Cquires the Property under Section 22 or otherwise, Borrower hereby 1lSsigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security lnstrument, and (b).any other of Borrower's .rights (other than the right to IDlY refund of unearned premiums paid by Borrower) under illl insurance polic.ies covering the Property, insofar as such rights Me lIpplicable to the coverage of the Property . Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, w.hether or not then due. 6. Occupancy. Borrower shall occupy, esæblish, IDld use the Property as Borrower's principal residence within 60 daysllÍter the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for lIt least one year after the date of occupancy, unless Lender· otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which Me beyond Borrower's control. Î. Preserv.ation, Maintenance .and Protection of the Property; lnspections. Borrower shall not destroy, damage or impair the Property, .allow the Property to deteriorate or commit W1lSte on the Property. 'Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to 11void further deterioration or damage. If insurance or condemnation proceeds Me paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or Iestoring the Property only if Lender has rele1iSed proceeds for such purposes. Lender may disburse proceeds for the 1epairs and restorati.on in 11 single payment or in a series of progress paymento; 11S 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 the completion of such repair or restoration. Lender or its agent may make re1lSonable entries upon .and inspections of the Property. If it has Ieasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice 11t the time of or prior to such.an interior inspection specifying such reasonable cause. 8. Borrower'E LoJm Application. Borrower shall be in default if, during the Loan application process, Borrower or IDlY persons or entities 1\Cting 11t the direction of Borrower or with Borrower's Jœowledge or consent gave materially false, misleading, or :inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, bUI Me not limited to, representations 1;oncerning Borrower's occupancy of the Property 11S Borrower's principal residence. ~ -fiA(WY) (ODDS) CHL (DBID5) Page S of 11 Form3D51 1/D1 ~ ,,,~. 091..6587 C00149 DOC ID~: 000123786~8403006 9. Protection of Lender's Interest in the Property .and 1Ughts Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained m this Security InstnlInent, (b) there is 11 legal proceeding that might significantly affect Lender's interesl m the Property and/or rights under this Security Inst:rument (such as 11 proceeding m bankruptcy, probate, for conci~mnl1tion or forfeiture, for t:DÍorcement of 11 lien which may 1Ittain priority over this Security InstnlInent or to t:nforce laws or regulations), or (c) Borrower h1Is abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate 10 protect Lender's interest m the Property and rights under this Security lnstrument, including protecting 1IDd/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can .include, but are not limited to: (11) paying any sums secured by a lien which ha~ priority over this Security InstnlInent; (b) lIppearing in court; 1\I1d (c) paying reasoIl1lble 1Ittoroeys' fees to protect its mterest in the Property 1IDd/or rights under this Security InstnlInent, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, t:ntering the Property to make repairs, change Jocks, rep11lce or bmu-d up doors 1\I1d windows, drain water from pipes, eliminate building or other code violations or d1Ingerous conditions, and h1Ive utilities nÍmed on or off. Although Lender may take action under this Section 9, Lender does notluive to do so and is not under any duty or oblig1ltion to do so. It is 1Igfeed that Lender incurs no liability for not taking 1\I1Y or all actions lIuthorized under this Section 9. Any .1IIIlOunt~ disbursed by Lender under this Section 9 shall become 1\dditional debt of Borrower secured by this Security InstnlInent. Thesemnounts shall bear interest lIt the Note rate from the d1Ite of disbursement and shall be payable, with such .interest, upon notice from Lender to Borrower requesting payment. 1f this Security Instrument is on a leasehold, Borrower shall comply with all !he provisions of the lease. 1f Borrower acquirt:s fee title to the Property, the leasehold and !he fee title shall not merge unless Lender 1Igfees to !he merger .in writing. 10. Mortgage Insurance. 1f l..ender required Mortgage Insuœnœ as a condition of making the Loan, .Borrower sh1Ill pay the premiums required to maintain the Mortgage Insurance m effect. If, for 1\I1Y reason, the Mortgage Insurance coverage required by Lender ceases to be lIv1Úl1lble from the mortgage insurer that previously provided such insurance and Borrower WllS required to make sep1\l"ately desigruued payments tow1\l"d the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, lIt a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an 1I1tern11te mortgage insurer selected by Lender.1f substantially equivalent Mortgage Insurance coverage is not lIv1Úl1lble, Borrower shall continue to PllY to Lender the .1IIIlount of the sep1\l"ately designated payment~ that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payment~ lIS 11 non-refundable loss reserve m lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fuct that the Loan is l]]timßt~ly paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such Joss reserve. Lender C1\I1 no longer require loss reserve payments if Mortgage lnsurance coverage (in the .1IIIlount and for the period that Lender requires) provided by 1\I1 .insurer selected by Lender again becomes available, is obtained, and Lender requires sep1\l"ately desigruued payments toward the premiums for Mortgage Insurance. 1f Lender required Mortgage lnsur1\I1ce as 11 condition of making theLolln and Borrower was required to make sep1\l"ately designated payments toward the premiums for Mortgage Insurance, Borrower shall PllY the premiums required to maintain Mortgage Insurance.in effect, or to provide 11 non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends .in accordance with 1\I1Y written agreement between Borrower and Lender providing for such tennination or until t~nninßtion is required by AppliC1lble Law. Nothing m this Section 10 affects Borrower's obligation to pay .interest at the rate provided.in the Note. Mortgage lnsurance reimburses Lender (or any t:ntity that purchases the Note) for certain losses it may incur if Borrower does not repay theLoan lIS 1Igfeed. Borrower is not 11 party to the Mortgage lnsurance. Mortgage insurers .evaluate their total risk on 1111 such :insurance in force from time to time, 1\I1d may enter into agreements with other parties that share or modify their risk, or reduce losses. These 1Igfeements 1\l"e on terms and conditions that are satisfuctory to the mortgage msurer and the other party (or parties) to these 1Igfeements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage :insurer may luive .av1lÍlable (which may include funds obtained from Mortgage lnsur1\I1ce premiums). As a r.esult of these 1Igf.eements, Lender, 1\I1Y purchaser of the Note, 1\I1other insurer, 1\I1Y reinsurer, any other .entity, or 1\I1Y .affiliate of 1\I1Y of the foregoing, may receive (directly or indirectly) .1IIIlounts that derive from (or might be cluiracterized as) a portion of Borrower's payments for Mortgage Insur1\I1ce, inexcluinge for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affi]iat~ of Lender takes 11 sluire of the .insurer's risk in exchange for a share of the premiums paid to the insurer, !he arrangement is often termed "C1Iptive reinsurance." Further: (a) Any BUCh Jlgreements will not .affect theJUDounts that Borrower .has Jlgreed to pay for Mortgage lnsurJmCe, or .any other tenns of the Loan. Such Jlgreements will not increase the JUDountBorrower will owe for MortgagelnsurJmCe,.and they will not entitle Borrower to.any refund. ~ -fiA(WY) (0005) CHL (DBID5) Pl!IgB £ .of 11 FDnn:3051 1/01 '::::~:::*I:::~:::;: jl¡'.'~:~~~~:~' ~ lli;::':::::;:;:::::;:':::~ ',','.'h:.·.·;·"",)1 . :¡:.~~.i~~::~~;1I ti-¡j;~;~~~¡;i~m~i¡ O~1..6587 C00150 DOC ID 4t:00012378618403006 (b) Any such .agreements will not .affect the rights Bon-ower has - jf ..any - with respect to the Mortgage lnsur.ance under the Homeowners Protection Act of 1998 or .any other Jaw. These rights may 1m'hlde the right to receive certain disclosures, to request .and obtain cancellation of the Mortgage lnsur.ance, to have the Mortgage lnsur..ance terminated .automatically, .and/or to receive.a refund of .any Mortgage lnsur.ance premiums that were unearned.at the time of such cancellation or termination. 11. Assignment of MiscellaneonsProceeds; Forfeiture. All Miscellaneous Proceeds are hereby ASsigned to .and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, jf the restoration or repair is economically feasible and Lender's security is not lessened. During such Iepair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender ha~ had .an opportunity to inspect such Property to ensure the work ha~ 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 m a series of progress payments .as the work is completed. Unless .an agreement is made in writing or Applicable Law Iequires interest to be paid on such Miscellaneous Pmceeds, Lender shall not be Iequired to pay Borrower .any interest or earnings on such ~scellaneous Pmceeds. If the Iestoration or Iepair 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, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section2. In the event of a total taking, destruction, or loss in value of the Pmperty, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if .any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the PIoperty in which the 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 the sums secured by thi~ Security lnstrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be Ieduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Pmperty :immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower .and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security lnstrument whether or not the sums are then due. If the Pmperty is abandoned by BOITower, or if,after notice by Lender to .Borrower that the 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 within 30 days after the date the notice is given, Lender is Authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Pmperty or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Pmceeds or the party Against whom Borrower has a right of action in regard to~scellaneous Proceeds. Borrower shall be in default jf any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impainnent of Lender's interesl in the Property or .rights under this Security Instrument. Borrower !:an cure such a defuult and, if .acceleration has occurred, Ieinstate liS provided in Section 19, by causing the .action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forleiture of the Property or other m!lt¡-,ri~ 1 impainnent of Lender's interest in the Property or .rights under this Security Instrument The proceeds of any award or claim for damages that are Attributable to the impainnent of Lender's interest in the Property are hereby 1l.~signed and shall be paid to Lender. All ~scellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided form Section 2. 12. .Borrower Not .Released; -Forbe~mlDce .By Lender Not .a WJÜver. :Extension of the time for payment or modification of .amortization of the sums secured by this Security lnstrument gr.anted by Lender to Borrower or .any Suc!:essor in Interest of Borrower shall not operate torelea~e the liability of Borrower or any Successors in lnterest of Borrower. Lender shall not be required to commence proceedings against any Successor in 1nterest of Borrower or to Iefuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of IDlY demand made by the original Borrower or any Successors in lnterest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from .third. persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any .right or remedy. 13. Joint.and Sever.alLi1lbility; Co-signers; Successors.and Assigns Bound. Borrower covenants .and Agrees that Borrower's obligations and liability shall be joint .and several. However, .any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is ro-signing this Security ~ -BA(WY) (0005) CHL (OB/D5) Page7 Df11 FDrm 3051 1/D1 ~ 0°1 et::'"a . J 4." '0 .J 7 {'n[':"'f:::l l U ~,: _l \J DOC ID ~: 00012378618403006 Instrument only to mortgage, grant and convey the co-signer's illterest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any liccommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, MY Successor ill 1nterest of Borrower who.assumes Borrower's obligations under this Security Instrument ill writing, .and is approved by Lender, shall obtain llil of Borrower's rights .and benefits under this Security lnstrument. Borrower shall not be released from Borrower's obligations .and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of tlús Security 1nstrument shall bind (except as provided in Section 20) Md benefil the successors .and .assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services perfonned ill connection with Borrower's default, for the purpose of protecting Lender's illterest in the Froperty Md rights under this Security Instrument, illc1uding, but not limited to, littomeyS' fees, property inspection Md valuation fees. In regard to any other fees, the absence of express authority ill 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 charge fees thai Me expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximnm loan charges, and that law is finally interpreted so that the interest or other Joan charges collected or to be' collected in connection with the Loan exceed the permitted limit,>, then: (a) any such loan charge shall be reduced by the llIDOunt necessary to reduce the charge to the permitted limit; and (b) any sums Jilready collected from Borrower which exceeded pennitted limit,> will be refunded to Borrower. Lender may choose to make this refund by reducillg the principal owed undÚ the Note or by making a direct paymentto Borrower. If a refund reduces principJil, the reduction will be treated as a partial prepayment without MY prepayment charge (whether or not a prepayment cl1arge is provided for under the Note). .Borrower's llCceptance of MY such refund made by direct payment to Borrower will constitute a waiver of MY right of action Borrower might have 1U'ÍSÍJ1g out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security lnstrument must be in writing. Any notice to Borrower in connection with this Security lnstrument shall be deemed to have been given to Borrower when mailed by first class mail or when llCtually delivered to Borrower's notice .address if sent by other means. Notice to MY one Borrower shall constitute notice to llil Borrowers unless Applicable Law expressly requires otherwise. The notice lliidress shall be the Property Address unless Borrower has designated 11 substitute notice .address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of lliidress. If Lender specifies a procedure for reporting Borrower's change of .address, then Borrower shall only report 11 change of .address through that specified procedure. There may be only one designated notice address under this Security Instrument 1It any onetime. 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 another .address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is Jilso required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security lnstrument. 16.. Governing Llw; Sever11bility; Rules of Construction. This Security lnstrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights Md obligations contained in this Security lnstrument Me subject to any requirement'> and limitations of Applic1lble law. Applicable Law might explicitly or implicitly Jillow the parties to .agree by contract or it might be silent, but such silence shall not be ronstrued liS a prohibition 1Igainst agreement by contract. In the event that any provision or clause of tlús Security lnstrument or the Note conflicts with Applicable Law, such conflict shall not illfect other provisions of this Security Instrument or the Note which can be given mect without the conflicting provision. As used in tlús Security lnstrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean Md illc1ude the plurJil .and vice versa;.and (c) the word "may" gives sole discretion without any obligation to take MY llCtion. 17. BOITower'.s Copy. Borrower shall be given one copy of the Note .and of this Security Instrument. 18. Tr.ansfer of the Property or 11 Benefichll Interest in Borrower. As used in this Section 18, '1nterest in the PIOperty" 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, instJùlment sales contract or escrow agr~ement, the intent of which is the transfer of title by Borrower 1It 11 :future date to 11 purchaser. lfllil or MY part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a naturJil person.and 11 beneficial interest .in Borrower js sold or Jransferred) without Lender's prior written consent, Lender may require immediate payment in full of llil sums secured by' this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applic1lble Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in llCcordance with Section 15 within which Borrower must pay llil sums secured by this Security lnstrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may illvoke any remedies permitted by this Security Jnstrument without further notice or demand on Borrower. . -tiA(WV) (00 OS) CHL (08/05) Œ> P.age B Df11 FDrm :3D51 1/D1 ~ -Z~¡m¡!¡~~wr O~lJ)S87 r n (': -,'. t:'J 2 ' ,,' " '.' \.. .... DOC ~D .: 00012378618403006 19. Borrower's.Right to Reinstate Mter Acceleration. If Borrower meet<; certain conditions, Borrower shall have the right to have enforcement of this Security Instrumenl discontinued al any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to Ieinstate; or (c) enIry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security lnstrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenant;; or agreement<;; (c) pays all expenses incurred in enforcing this Security lnstrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, IDld other fees incurred for the purpose of protecting Lender's interest in the Property IDld rights under this Security Instrument; and (d) takes such llCtion as Lender may reasonably require to assure that Lender's interest in the PIOperty IDld rights under this Security Instrument, 1U1d Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may Iequire that Borrower pay such reinstatement sums and expenses in one or more of the following fonns, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided IDlY such check is drawn upon an institution whose deposits.are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds TIansfer. Upon reÎnstat~m~nt by Borrower, this Security Jnstrument IDld obligations secured hereby shall remain fully effective as jf no llCceleration l1ad occurred. However, thisright toreÎnstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security lnstrument) CIDl be sold one or more times without prior notice to Borrower. A sale might result in a change :in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Jnstrument IDld performs other mortgage loan servicing obligations under the Note, this Security Jnstrument, IDld Applicable Law. There illso might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payment<; should be made IDld any other information RESPA Iequires in connection with a notice of transfer of servicing. If the Note is sold IDld thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer IDld .are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to IDlY judicialllCtion (as either IDl individual litigant or the member of a class) that arises from the other party's llCtiOns pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or IDlY duty owed by rea<;on of, this Security Jnstrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach IDld afforded the other party hereto a Ieasonable period after the giving of such notice to take corrective llCtion. If Applicable Law provides a time period which must elapse before certain action CIDl be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration 1U1d opportunity to cure given to Borrower pursuant to Section 22 IDld the notice of llCceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice IDld opportunity to take corrective llCtion provisions of this Section 20. 21. Hazardous Substances. A<; used in this Section 21: (a) "Hazardous Substances" .are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law IDld the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides IDld herbicides, volatile solvents, materials containing asbestos or formaldehyde, IDld radioactive mMe,ria1s; (b) "Environmental Law" means federal laws IDldlaws of the jurisdiction where the Property is located that relate to health, safety or .environmental protection; (c) "Environmental Cleanup" includes IDlY Iesponse llClÌon, remedialllCtion, or removal action, as defmed in Environmental Law; IDld (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger IDl 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 IDlyone else to do, IDlY thing affecting the Property (a) that is in violation of IDlY Environmental Law, (b) which creates IDlEnvironmental Condition, or (c) which, due to the presence, use, or Ielease of a Hazardous Substance, creates a !:ondition that adversely affects the villue of the PIOperty. The preceding two sentences shall not apply to the presence, use, or storage on the Pmperty of small quantities of IIazardous Substances that are generally recognized to be appropriate to normal residential uses IDld to maintenance of the Property (including, but not limited to, hazardous substances:in consumer products). Borrower shall promptly give Lender written notice of (a) IDlY investigation, claim, demand, lawsuit or other action by IDlY governmental or regulatory agency or private party involving the Property IDld IDlY IIazardous Substance or Environmental Law of which Borrower has actuallrnow1edge, (b) IDlY Environmental Condition, including but not Jimited to, IDlY spilling, leaking, .discharge, Ielease or threat of :relea<;e of IDlY IIazardous Substance, and (c) IDlY condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Pmperty. If Borrower learns, or is notified by IDlY governmental or .regulatory BUthority, or IDlY private party, that IDlY I.emovill or other Iemediation of IDlY Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedialllCtions in accordance withEnvironm~ntal Law. Nothing herein shall create any obligation on Lender for IDlEnvironmental Cleanup. ~ ~A(WY) (0005) r::HL (DB/OS) Page 9 of 11 Form 3051 1/01 ~ O~:t6587 C00153 DOC ID 'it: 00012378618403006 NON-1JN1FORM COVENANTS. Borrower and Lender further covenant and BgI'ee as follows: 22. Acceler.anon; ]lprnpdies. Lender shall give no.nce to. Bo.rro.wer prio.r to .acceler.atio.n fo.llo.wing Bo.rro.wer's breach o.f .any co.venant o.r .agreement in this Security Instrument (bnt no.t prio.r to. .acceler.atio.n nnder Sectio.n 18 unless Applicable Law pro.vides o.therwise). The no.tice shall specify: (B) the.defanlt; (b) the .actionreqnired to. cure the defunlt; (c).a rl.ate, no.tless t.Ium 30 rl.aysfro.m the rl.ate the no.tice is given to. Borro.wer, by wbich the defanlt must be cured; .and (d) .tlu1t fuilnre to. cure the def.ault on o.r befo.re the rl.ate specified in the no.nce may result in .acceler.ation of the snms secured by this Security Instrument.and we af the Praperty. The no.tice shall further ÎDfOlDl Borro.wer of the right to. reinst.ate .after .acceler.ano.n .and the right to. bring.a co.urt .actio.n to. .assert the nan-existence o.f.a defanlt o.r .any o.ther.defense o.f Bo.rro.wer to. .acceler.atio.n .and we. H the def.ault is no.t cured on o.r befo.rethe ibte specified in the nance, Lender .at its o.pno.n JWly require immediate pByment in full o.f .all sums secured by this Secnrlty Instrument witho.ut further dl'rnßnd .and may invoke thepo.wer af sale.and.any ather ranedies permitted by Applicable Law. Lender shall be p.ntitlPd to. co.llect.all apenses incuITed in pursuing the rprnP.dies pro.vided in this Sectio.n 22, including, but no.t limited to., re.asOlUlhle .atto.rneys· fees.and casts o.f title evidence. H Lender invo.kes the po.wer o.f we, Lender shall give no.tice af intent to. fo.reclase 10 Borro.wer .and to. the perso.n in po.ssessio.n o.f the Pro.perty, if different, in .acco.rrl.ance with Applicable LBw. Lender shall give no.tice o.f the we 10 Bo.rro.wer in the JWlDJ1er pro.vided in Section 15. Lender shall publish the notice of we,.and the Praperty shall be sald in the manner prescribed by ApplicBble Law. Lender or its Designee may purchase the Pro.perty .at .any sale. The pro.ceeds o.f the we sWill be .applied in the :follo.wing order: (.a) to.all apenses o.f the sale, inclniling, but no.t.limited to., re.aso.nable .atto.rneys· fees; (b) ta.all sums .secured by this Security Instrument;.and (c).any excess to. the perso.n o.r per sans legally p.nnt]pn toiL 23. Rele.ase. Upon payment of all sums secured by this Security lnstrument, Lender shall xelease this Security lnstrument. :Borrower shall pay any xecordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third. party for services xendered and the charging of the fee is permitted under Applicable Law. 24. W.aivers. Borrower xeleases and waives all rights under and by vlitue of the homestead eXemption Jaws of Wyoming. :BY SIGNING :BELOW, Borrower JlCcepts and BgI'ees to the terms and covenants contained in this Security lnstrument and in any Rider executed by Borrower and recorded with it. ~[-~ JOSEF . BALSAMO (Seal ) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower ~ -1iA(WY) (ODDS) CHL (08105) f>.age 10 0111 FDrm 3051 1/01 ml~lmmmI¡ ~;~ili;~t~D 0916587 STATE OF WYOMING, The foregQing instrument was acknowledged before me this by J osepb W. Balsamo r',....,.....: _ <; . ! ¡ ¡ .. fí " \,' 1..' J. V~ DOC TI) =#: 000.123786H403006 LinCOJn County ss: .4/8 sixth day o£ March, 2006 My Commission Expires: 9-15- 07 ~) /« /3y_è/ML/ NoWy Public GLORIA K. BYERS - NOTARY PUBUC County of State of linealn ,Wyoming My CommissIon Expires Sept 15,2007 ~ ~A(WY) (0005) CHL (D8/D5) Page 11 of11 FDrm3D51 1/D1 ß / O~1J:)S87 r,· r'\ f" ' t:"..... : ; ! ¡ ; -l' -,....,. ... ".J \..,,> _ "'" &oJ [Space Above ThisLioe For ReconiingData] FlXED/ADmSTABLE RATE RIDER (lJBOR Twelve Month Index - .Rate Caps) After Recording Return To: CDUNTRYWIDE HOME LDANS, INC. MS SV-79 DDCUMENT PRDCESSING P.D.Box 10-423 Van Nuys, CA 91-410-0-423 Prepared.By: MI CHELLE SALAS FAl-4 8 0-4M [Escrow/Closing iJ 00012378618403006 [Doc J:D i] THIS HXED/ADJUSTABLE RATE RIDER is made !his SIXTH day of MARCH, 200 6 , .and is incorporated into 1Uld shaH be deemed to mnend and supplement the Mortgage, Deed of Trust, or .security Deed (the ".security Instrument") of the same date given by !he undersigned ("Borrower") to secure Borrower's 'Fixed/Adjustable Rate Note (the "Note") to CDUNIRYWJ])E HOME LDANS, INC. ("Lender") of the same date .and covering the property described in the Security Instrument 1U1d located .at: 151 SPURWDDD DRIVE ~BAYNE, WY 83127-1556 {PIopcrty Address] CONY . ARMFlxedPBriodUBORfllder .2U652-XX (04101 )(d) Pll9" 1 Df-4 "~"-F- 1111111 ·23991· I~~mll~n III! ~u ~ ·12 3 7 B £ 1 B 4 D D D D D 2 U £ 52· :::::::t:..!:?~:¡;:~ 1~1.~~':l';¡:I.:., ~1¡¡i¡¡1~~1¡¡i::¡¡;~~ ~;~m~~i~m;m~~;~f! ~~i·: '.~ ~~mt~;t~i;if~i¡~j; 091.6587 ":'1f'1'~6 " '-' ~I_ V DOC ID ~: OOOl23786l8403006 THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST HATE ,.0 AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS ,.HE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants .and agre.ements made in the Security lnstrument, :Borrower .and Lender further covenant and agree liS follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for .an initial iixedinterest rate of 6.500 %. The Note 1I1so provides for change in the initial fixed.rate to .an lIdjustabJe interest nile, 1IS follows: 4. .ADJUSTABLElNTEREST RATE AND MONTHLY PAYMENT CHANGES (A) ChangeDates The initial fixed interest nte I will pay will change 10 an JUijustable mterest rate on the :first day of APRIL, 2 Ol3 , .and the JUijustable interest rate I will PllY Jruly change on tluit day every 12th month thereafter. The date on which my initial fixed interest rate changes to M JUijustable interest.rate, .and each date on which myJUijustable interest rate could change, is c1Illed 11 "Change D1I1e." (B) The Index :Beginning with the first Change Date, my Bdjustable interest rate will be based on .an lndex. The "Index" is the lIverage of interbank offered rates for twelve month U.S. 1iollilr-denominated .deposito; in the London market, as published in the The Wall Street Journal. The most recent Index figure available liS 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 thai: is bao;ed upon comparable infonnation. The Note Holder will give me notice of this choice. (C) Calculation of Changes :Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO & ONE-QUARTER percentage points ( 2.250 %) to the Current Index. The Note Holder will then round the result of this lIddition to the nearest one-tighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded lUIlOunt will be my new mterest rate until the next Change D1I1e. The Note Holder will then detennine the amount of the monthly payment tluit would be sufficienI to repay the unpaid principal that lam expected to owe lit the Change Date in full ùn the Maturity Date at my new interest rate in substantially :equal paymento;. The result of this calculation will be the new amount of my monthly payment. (1) Limits on1nterestRate Changes The interest .rate 1 lUIl required to pay at the first Change Date will not be greater than II . 500 % or less than 2 .250 %. Thereafter, my adjustable interest rate will never be increased or .decreased on.any single Change Date by more than two percentage points from the rate of .interest I .have beal paying for the preceding 12 months. My interest rate will never be greater. than II ~ 50 0 % ~ (E) Effective Date of Changes My new interest Tate will becomeclfective on each Change Date. I will pay the lUIlount of my new monthly payment beginning on the first monthly payment date llfier the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to .an JUijustable interest rate Md of .any changes in my adjustable interest rate before the effective date of .any change. The notice will include the lUIlOunt of my monthly payment, any information required by law to be given to me .and 1I1so the title .and telephone number of 11 person who will .answer .any question I may have regarding the notice. CONV . ARM Fixed Period .LIBOR Rider -2U652-XX (04/01) Page2 cf4 '"",,'~ O~:t6S87 :'"' fì n ~l< ~7 <.' u~·_ u DOCID ~: 000123786~8403006 .B. TRANSFER OF THE PROPERTY ORA.BENEFICIALlNTERESTIN BORROWER 1. Until Borrawer's initial1ixed .interest tate changes to. 1lIl Jtdjustable interest tate under the terms stated .in Section A abave, Unifonn Cavenant 18 af the Security lnstrument shall read as follaws: Transfer of the Property or B B~npfidßl1nterest in Borrower. AB used.in this Sectian 18, "lnterest.in the Praperty" :means 1lIlY legal or beneficial.interest.in the Property, .including, but nat limited to., thase beneficial interests transferred in a band far deed, contract for med, .installment sales cantract ar escraw agreement, the intent af which is the transfer af title by Borrawer at a future date to. a purchaser. If all ar 1lIlY part af the P.roperty or 1lIlY lnterest.in the Property is saId or tr1lIlsferred (or if .Borrower is nat a natural person 1lIld a beneficial.interest in Barrawer is saId ar tr1lIlsferred) withaut Lender's prior written cansent, Lender may Iequire immediate payment in full af all sums secured by this Security Instrument. Hawever, this aptian shall nat be exerdsed by Lender if such exercise isprahibited by ApplicableLaw. If Lender exercises this aptian, Lender shall give Borrawer natice af acceleratian. The natice shall provide a periad afnat less than 30 days fram the date the natice is given .in accardance with Sectian 15 within which .Borrawer must pay all sums secured by thi.. Security lnstrument. If .Borrower fails to. pay these sums priar to. the expiratian af this periad, Lender may invake 1lIlY IemedieS permitted by this Security Instrument withautfurthernatice ar demand an Barrawer. 2. When Borrower's initial1ixed .interest Iate changes to. 1lIl adjustable .interest Iate under the terms stated.in Sectian A abave, Dnifonn Cavenant 18 af the Security lnstroment described in Section B 1 abave shall then cease to. be in .effect,.and the pravisians af Dnifonn Cavenant 18 af the Security Instrument shall be amp.nclp.d to. Iead as follaws: Transfer of theJJroperty or B BpnpfiMßl1nterestin.Borrower. Ai> used.in this Sectian 18, "Interest in the Praperty" means 1lIlY legal or beneficial.interest.in the Praperty, .including, but nat limited to., thase beneficial .interests transferred .in a band for deed, contract for deed,installment sales cantract or escrow 1Ig1"eement, the intent af whkh is the tr1lIlsfer af title by .Borrower at a future date to. a purchaser. If all or any part af the Praperty or 1lIlY lnterest in the Praperty is sold or transferred (ar jf :Borrower is nat a natural person 1lIld a bp.np.ficia l.interest in .Borrawer i.. sald ar transferred) withaut Lender's priar written consent, Lender may require :immediate payment .in full af all sums secured by this Security Instrument. Hawever, this aptian shall nat be exerdsed by Lender if such exercise is prohibited by Applicable Law. Lender alSo. shall nat exerdse this aption if: (a) Borrawer causes to. be submitted to. Lender infonnatian Iequired by Lender to. evaluate the intended transferee as if a new la1lIl were being made to. the transferee; .and (b) Lender reasanably determines that Lender's security will nat be impaired by the la1lIl assumptian and that the risk af a breach af 1lIlY cavenant ar agreement in this Security Instrument jg ácceptahle to. Lender. To. the alent permitted by Applicable Law, Lender may charge a Ieasanable fee as a candition to. Lender's cansent to. the laan assumption. Lender alSo. may require the transferee to. sign an assumptian agreement that is acceptable 10. Lender and that abligates the transferee to keep all the pramises and agreements made in the Nate .and in this Security Instrument. Borrawer will continue to. be abligated under the Nate and this Security Instrument unless Lender Imases .Borrower.in writing. If Lender exercises the aptian to. Iequire :immediate payment in full, Lender shall give .Borrawer natice af acceleratian. The natice shall pravide a periad af nat less than 30 days fram the date thenatice is given.in accardance with Sectian 13 within which Borrower must pay all sums secured by this Security Instrument. If .Borrawer fails to. pay these sums prior to. the expiratian af this periad, Lender may invoke any Iemedies permitted by this Security lnstrument withaut further natice or clp.mancl on .Borrower. CONV . ARM Fixed PeriadlJBOR Rider .2US52-XX (04/01) P.age3014 '0"""* r::::::?:~:t:::~~;:; ~N!~:,'~~j'~ :1;~:;~!ri.~~1~~~¡~~;: ~: O~1..6S87 [. n (\ ~: t:' 8 I r t ~ . '.' \,} ",,'_lv TIOC ID ~: 00012378618403006 'By SIGNING :BELOW, 'Borrower BCcepts 1U1d Jlg1"ees to the tenns 1U1d covroant" contained in this Fixed/Adjustable Rate Rider. .. Ii~t.~ JOSEPH . BALSAMO (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower CONV . ARM Fixed P..riod .LIBOR Rider 2U652-XX (04101) PAge 4 of4 '"","'''~