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HomeMy WebLinkAbout918899 , ' ~>·'1 b I¡; ~¡!¡;~ill~1m~u ".,.'.,....,......','-,.' Return To: FHHLC - POST CLOSING MAIL ROOM 1555 W. WALNUT HILL LN. #200 MC 6712 IRVING, TX 75038 Prepared By: FIRST HORIZON HOME LOAN CORPORATION 3505 EAST OVERLAND DRIVE MERIDIAN, ID 83642 [Space Above TWs Line For Recording Data] MORTGAGE RECEIVED 5/30/2006 at 4:29 PM RECEIVING # 918899 BOOK: 621 PAGE: 553 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY DEFINITIONS cf> COf553 0057164485 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 tlús document are also provided in Section 16. (A) "Security Instrument" means tlús docwnellt, wlúch is dated May 24th, 2006 together with all Riders to tlús document. (B) "Borrower" is JEROLD G. SCHMIDT, An Unmarried Man Borrower is the mortgagor under tlús Security Il1~trwnent. (C) "Lender" is FIRST HORIZON HOME LOAN CORPORATION Lender is a CORPORATION orgalÚzed and existing under the laws of THE STATE OF KANSAS ;::8:: Family- F~annie Mae/Freddie @ Page 1 of 15 Initials: "'" MO"","' ~~. ,~.,. " Mac UNIFORM INSTRUMENT FOrnI 3051 1/01 11111111111111111111111111111111111 ....,.,.,.,.,..... "'./ì G. A¡¡ ,f~ ,,;~ 1(. (, Ü u,. Ii J 4lt. ~._11 \... .~1- ,~..... J C00554 Lender's address is 4000 Horizon Way, Irving, Texas 75063 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated May 24th, 2006 The Note states that Borrower owes Lender THREE HUNDRED TWENTY SEVEN THOUSAND SIX HUNDRED & 00/100 Dollars (U.S. $ 327,600.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than June 1st, 2037 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property. " (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under tlus Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument tllat are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [X] Adjustable Rate Rider D Balloon Rider D VA Rider D CondomilUum Rider IX] Plamled Dnit Development Rider D Biweekly Payment Rider D Second Home Rider GJ 1-4 Family Rider GJ Other(s) [specify] CONSTRUCTION LOAN RIDER (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and adl1unistrative rules and orders (tllat have tlle effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and otller charges that are imposed on Borrower or the Property by a condomiluum association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any tr.¿!nsfer of funds, otller than a transaction originated by check, draft. or similar paper Ìl1Strument, wluch is Ì1utiated tllfough an electrOluc terminal, telephOlUc Ì11Strument, computer, or magnetic tape so as to order, Ì11StruCt, or authorize a financial Ì11Stitution to debit or credit an account. Such tenn includes, but is not linuted to, point-of-sale tral1Sfers, automated teller maclune transactiOl1S, tral1Sfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (I{) "Escrow Items" meal1S tllOse items tllat are described in Section 3. (L) "Miscellaneous Proceeds" meal1S any compensation, settlement, award of damages, or proceeds paid by any third party (other tllan Ì11Surance proceeds paid under tlle coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of tlle Property; (iii) conveyance in lieu of condenmation; or (iv) nusrepresentations of, or OmiSSiOI1S as to, tlle value and/or condition of tlle Property. (M) "Mortgage Insurance" meal1S Ì11~urance protecting Lender agaÌ11St the nonpayment of, or default on, tlle Loan. (N) "Periodic Payment" means tlle regularly scheduled amount due for (i) principal and interest under tlle Note, plus (ii) any amounts under Section 3 of tlus Security b1Strument. (0) "RESPA" means the Real Estate Settlement Procedures Act (12 D.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as tlley might be amended from time to time, or any additiOllal or successor legislation or regulation tllat governs tlle same subject matter. As used in this Security b1Strument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if tlle Loan does not qualify as a "federally related mortgage loan" under RESP A. 0057164485 C -6(WY) (0005) @ Page 2 of 15 Fo~ 3051 1/01 ~5:Wn~:~ r:~~;!!::¡:;:?:;:f¡:~: i·f·...¡ ·,I.·.'¡J,)'C· :{~!¡lmn ""'''-~''''''''''''''''''.'.':'-.._-,,,,,.,....,...-...:,,,....,,,.,-.,,,,,,,,u:,':""'''~'-'='''. '. '""""..'L'O',>...!..:!:.-~""","!".> '''''".~,;., '·-·~'·'R'L.b""··"~-··;·'·'_·';'_""··'I'_:''''':.'''''''' ' 'Î."'c~Q Ii":; q .~J ~"~ l j ~j ...V U_,P ,_11 ...1-.¡¡ ~- . r !! r r.: 5 r.- '....,. ~ 0 (P) "Successor in Interest of Borrower" means any party that has taken titIe to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or tIns Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY TIns Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of tIle Note; and (ii) tIle perfonnance of Borrower's covenants and agreements under tIns Security hl~trument and the Note. For tIns purpose. Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, tIle following described property located in the County of Lincoln [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 62 IN STAR VALLEY RANCH PLAT 6, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF Parcel ill Number: County: 631 VISTA EAST DRIVE THAYNE ("Property Address "): 35183040801300 City: N/A which currently has the address of [Street] [City] , Wyoming 83127 [Zip Code] 0057164485 G -6(WY) (0005) @ Page ~ of 15 Fonn 3051 1/01 TOGETHER WITH all tIle 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 tIns Security Instrument. All of the foregoing is referred to in tIns Security Instrument as the "Property. " BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has tile right to mortgage, grant and convey the Property and that tIle Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines unifonn covenants for national use and non-unifornl covenants with limited variations by jurisdiction to constitute a unifornl security instrument covering real property . 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 tlle Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and tIns Security Inst. ent shall be made in U.S. currency. However, if any check or other il1~trument received by Lender s lder the Note or tIns ·',·;·,--'...;·;,,>,·,·,--'··'·c·' . .'.·,·,..·..·.·.·4·.·.··,·, .··..c,.,......',..",.;.. ,-.-,IC"~ , '\ (){'~ ("J~ (') ,j ~ ;... ".....~ ..lí..- C00556 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and tlús Security Instrument 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 caslúer's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender wheli received at the location designated in the Note or at such other location as may be designated by Lel1der in accordance with tlle 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 insufficient 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 tlle time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, tllen 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 witlún a reasonable period of time, Lender shall eitller apply such funds or return tllem to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under tlle Note immediately prior to foreclosure. No offset or claim wlúch Borrower núght have now or in the future against Lender shall relieve Borrower from making payments due under tlle Note and tlús Security Instrument or perfonning tlle covenants and agreements secured by tlús Security Instrument. 2. Application of Payments or Proceeds. Except as otllerwise described in tlús Section 2, all payments accepted and applied by Lender shall be applied in tlle following order of priority: (a) interest due under tlle Note; (b) principal due under tlle Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in wlúch it became due. Any remaining amounts shall be applied first to late charges, second to any otller amounts due under tlús Security Instrument, and then to reduce tlle principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment wlúch includes a sufficient amount to pay any late charge due, tlle payment may be applied to the delinquent payment and the late charge. If more tl13n one Periodic Payment is outstlllding, Lender may apply any payment received from Borrower to tlle repayment of tlle Periodic Payments if, and to the extent tllat, each payment can be paid in full. To tlle extent that any excess exists after jhe payment is applied to tlle full payment of one 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 the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under tlle Note shall not extend or postpone tlle due date, or change tlle amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower sl13ll pay.to Lender on tlle day Periodic Payments are due under the Note, until the Note is paid in full, a sum (tlle "F'l1lds ") to provide for payment of amounts due for: (a) taxes and assessments and other items wlúch can att"lin priority over tlús Security Instrument as a lien or encumbrance on tlle Property; (b) leasehold payments or ground rents on tlle Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any swns payable by Borrower to Lender in lieu of tlle payment of Mortgage Insurance prenúums in accordance witll the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during tlle term of the Loan, Lender may require tllat Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower sl13ll promptly furnish to Lender all 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 Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, tlle amounts due for any Escrow Items for wlúch payment of 0057164485 G -6(Wy) (0005) @ '" Page 4 of 15 Fonn 3051 1/01 Ø¡:;¡¡¡[¡n:¿ ¡~m¡!~iW .. ".'¡'.;~_'j';',.", n:.:.:.:.:.;,~(", . ;":-;','.";\,t;;- ;!:.'.'.',".'.-, ·~'ê:~1\",:·,<,:, . ..... .~. . ,n....h';~ 1..c'. ",,:r .'~ ,c; c: . ~ t(V ....I...~. (.~~~ (j:; ~~',~~ (" \..OC557 days of the date on wlùch that notice is given, Borr~wer shall satisfy the lien or take one or more of the actions set forth above in tiùs Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included witlùn the tenn "extended coverage," and any other hazards including, but not lÌ11Ùted to, earthquakes and floods, for wlùch Lender requires insurance. Tlùs insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during tile tenn of the Loan. The insurance carrier providing the insurance shall be cl10sen by Borrower subject to Lender's right to disapprove Borrower's choice, wlùch 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 detennination, certification and tracking services; or (b) a one-time charge for flood zone detennination and certification services and subsequent charges each time remappings or sinùlar changes occur wlùch reasonably might affect such detennination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone detemùnation resulting from an objection by Borrower. If Borrower fails to maintain any of the 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 the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might siglùficantly exceed tile cost of insurance tilat Borrower could have obtained. Any amounts disbursed by Lender under tiùs Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any fonn 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 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. Ulùess Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if he restoration or repair is econOlnically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment 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 insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other tiùrd 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, the insurance proceeds shall be applied to 0057164485 G -6(WY) (0005) @ Page 6 of 15 Fonn 3051 1101 '.' ::'-n;I;r-..'~; " . ',·I·,·,'j'.'...·. '" 'Ii " .'. ,^. .., c)·-¡ ~ '..: '. : .. ',~;(I ",,'>.;I~"f~ ,-"'Ji ~{ r- ....11 ...,??~~~._,.. ;' \,.1 COC558 Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in tlus 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 amount due for an Escrow Item. Lender may exercise its rights under Section 9 and páy such amount and Borrower shall tllen be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, tllat are tllen required under tlus Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to pennit Lender to apply tile Funds at the time specified under RESPA, and (b) not to exceed the maximlUll amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance Witll 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 tile Funds to pay tlle 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 account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eanungs on the Funds. Borrower and Lender can agree in writing, however, tllat interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an aImual accounting of tile Funds as required by RESP A. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESP A. If tllere is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance Witll RESP A, but in no more than 12 montllly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 montllly payments. Upon payment in full of all sums secured by tlus Security Instnunent, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositioI1~ attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and ConunUluty Association Dues, Fees, and Assessments, if any. To the extent that tllese items are Escrow Items, Borrower shall pay them in tile manner provided in Section 3. Borrower shall promptly discharge any lien wluch has priority over tlùs Security Instnunent unless Borrower: (a) agrees in writing to tile payment of the obligation secured by tile lien in a maImer acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests tile lien in good faitll by, or defends against enforcement of tile lien in, legal proceedings wluch in Lender's opÍIúon operate to prevent tlle enforcement of the lien wbile those proceedings are pending, but only until such proceedings are concluded; or (c) secures from tile holder of the lien an agreement satisfactory to Lender sUbordinating tile lien to tlús Security Instrument. If Lender determines tllat any part of tile Property is subject to a lien wlúch can attaÍII priority over tlus Security Instnunent, Lender may give Borrower a notice identifying the lien. Witlun 10 0057164485 G -6(WY) (0005) @ Fonn 3051 1/01 Page 5 of 15 ~i~m!i!f: ";'/:":'-:';_0,. '; ~~¡;~!~;¡~;¡1;~~!!i! ·';';;f;'1';!;!i!"iro!OI!.!;!j.:;::"~'¡~',!J;" ·,'·-¡··'.""-.\:.i..i;¡;<I"..c"'¡'::JI:J;..-'""",:U";;\·,,,S,',.., :.:,-¡!, '''';.'.''';:;¡;<'-'..i!:::::~-'.'~' ;':' h'.'_;'!h ;';-:';~';¡'i""S1lGltõtò""~ò!i!O::_j' ;,. : ,,.-c_...·,;' ·;·"""¡";:;;·:'¡i'J.3~':.!''i;:;: .~~ -;-;-~~;;::~,,~~'b"'.: .~, '.. ""';1-' - "'1';"," ',' ;-",~ ,'~ '.~:;:"·';'\)'¡';",'1;;:-"':. _ ' , '~:~";':;':":'~7·:..: ,n, Q-"ij ~1~;:¡ (C:~ 9 " :I..._I cA.,!!,~ ,._e1 \,_J.....J · '.': ::"'ì · . ~ I . I. COC559 attorneys' fees to protect its interest in the Property and/or fights under tlns Security Instrument. including its secured position in a bankruptcy proceeding. Securing tlle 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 other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this 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 actious authorized under this Section 9. Any amounts disbursed by Lender under tins Section 9 shall become additional debt of Borrower secured by tins Security Instrument. These amounts shall bear interest at the Note rate from the date of · disbl!rsement and shall be payable, with such interest, upon notice from Lender to Borrower requesting , '. payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Notlnng in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases tlle Note) for certain losses it may incur if Borrower does not repay tile Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on an such insurance in force from time to time, and may enter into agreements WitII other parties that share or modify their risk, or reduce losses. These agreements are on tenus and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that tlle mortgage insurer may have available (winch may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of tile Note, another insurer, any reiusurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying tlle 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 the insurer, tlle arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the anÌôunts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borro r to any refund. 0057164485 ca -6{WY) (0005) <!> Page 8 of 15 Fonn 3051 1/01 '·'~I·':'T';'~;;¡.T,·, ¡F'.':- <.-,:. '.':',' ·'.:'Y':'~I~.;f:i:;,.-,:, > ,~, :._":'.:''';;:/:.__ .;':';' £;_ :.:,,- ,;, Cd ";''-',',':<,<.';'.', '.- c; .~ :~~~ :[~, {::'~ ~:~~ ~j ~~ (.'00560 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. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond witIún 30 days to a notice from Lender tIlat tIle insurance carrier has offered to settle a claim, then Lender may negotiate and settle the 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 otIlerwise, Borrower hereby assigl1~ to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed tlle amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering tlle Property, insofar as such rights are applicable to the coverage of the Property. Lender may use tIle insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or tlús Security Instrument, whetller or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence witIún 60 days after the execution of tIús Security Instrument and shall continue to occupy tIle Property as Borrower's principal residence for at least one year after tIle date of occupancy, utùess Lender otIlerwise agrees in writing, wlúch consent shall not be unreasonably witIùleld, or Ulùess extenuating circUlllstances exist wlúch are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair tIle Property, allow tIle Property to deteriorate or comuút waste on the Property. WhetIler 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. Ulùess it is detenIÚned pursuant to Section 5 tI13t repair or restoration is not econo111Íèally feasible, Borrower sl13ll promptly repair tIle Property if dan13ged to avoid furtIler deterioration or damage. If insurance or condemnation proceeds are paid in connection witII damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring tIle Property OlÙY if Lender has released proceeds for such purposes. Lender may disburse proceeds for tile repairs and restoration in a single payment or in a series of progress payments as tIle work is completed. If tile insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for tbe completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on tIle Property. Lender SI13ll give Borrower notice at tile time of or prior to such an interior inspection specifying such reasOl13ble cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at tIle direction of Borrower or with Borrower's knowledge or consent gave materially false, núsleading, or inaccurate information or statements to Lender (or failed to provide Lender witII material information) in cOlll1ection witII tIle Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in tIús Security Instrument, (b) tIlere is a legal proceeding tI13t might significantly affect Lender's interest in the Property and/or rights under tIús Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien wlúch may attain priority over tIús Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned tIle Property, tIlen Lender may do and pay for whatever is reasonable or appropriate to protect Lender's.... interest in tile Property· and rights under tlús Security Instrument, including protecting and/or assessing tIle value of tIle Property, and securing and/or repairing tile Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over tIús Security Instrument; (b) appearing in court; and (c) paying reasonable 0057164485 . -6(WY) (0005) @ Form 3051 1/01 Page 7 of 15 I :¡li~m~Iili~I;JJ ',.,:.>:.~.....,. ~ :;::::Il:~:;:;¡ . ..;, '·:~~'i.~~;.J'4""~¡~'·' 'i'>:' ;'. .;_:.. .. '; ....;,¡:,,,.,:-,;..,, -,.L'.,'C: .1:-.', -"·...!.t.!.th'~'.......'. ;" '../~ ~ .;~ ~"..;}. ~ .'0,_ 'c·, ' ,«-., .';':' ~,;,,:,', '_<. . ~_ ::'.",';"','.',:·,T..:.:\;,· "'. ' . .. ';' " ~..' ." _: . - ' nr'J'~ ¡¡'¡¡Nr{~9 ' \ 7:; \~,.) :~.~:; C:O('561 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by tlus Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this 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, without linutation, Lender's acceptance of payments from tlurd 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 Several LiabilitYi Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shaH be joint and several. However, any Borrower who co-signs tlus Security Instrument but does not execute tile Note (a "co-signer"): (a) is co-signing tIus Security Instnnnent only to mortgage, grant and convey the co-signer's interest in the Property under the terms of tIus Security Instrument; (b) is not personally obligated to pay the sums secured by tIus Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of tIus Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under tIus Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under tIus Security Instrument. Borrower shall not be released from Borrower's obligations and liability under tIus Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of tIus Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under tlus Security Instnnnent, including, but not limited to, attorneys' fees, property inspection and val nation fees. In regard to any other fees, the absence of express autIlority in tIus Security Instrument to charge a specific fee to Borrower shall not be construed as a prolubition on the charging of such fee. Lender may not charge fees that are expressly prolubited by this Security Instnnnent or by Applicable Law. If tIle Loan is subject to a law wluch sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in cOlmection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pennitted limit; and (b) any sums already collected from Borrower wluch exceeded permitted limits will be refunded to Borrower. Lender may choose to make tlus refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, tIle reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower lnight have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with tIus Security Instnnnent must be in writing. Any notice to Borrower in cOlmection with tIus Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to anyone Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifie~ a procedure for reporting Borrower's change of address, tIlen Borrower shall only report a change of address tIlfough that specified procedure. There may 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 anotIler address by notice to Borrower. Any notice in cOlmection with tIus Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by tIus Security Instrument is also required under Applicable Law. tIle Applicable Law requirement will satisfy the corresponding requirement under tIus Security Instrument. 0057164485 cD -6(WY) (0005) @ Page 10 of 15 Fonn 3051 1/01 ~'::IJtI""i¡-'¡::.'¡"¡:_"'; ;:.-, ;j' :;i~_I.:t': i~'j:¡:''-:~'.\'-:i..'''':¡-.f.i,t'l.::4'C.l£_¡'¡''~·'-'·- r~":..'ff'~.'···; - . "_~:~I:,~:';'~;¡ojòJ~': _1 ;·~'_Ù"'!.;~·~~~--''''R :"";.,,: -~;.'~_,~-".,~'_',,_.. ¡ ; .,' j'. '.-' ;' ,.'.~,.:\ ."0: ;".;....:,_~.',...., ". J, ': ~~} ~~~, ]~. s ~4:~ (~~ ~:~J:::i\i COC562 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners :erotection 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 any Mortgage Insurance premimns that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or 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 undermken promptly. Lender may pay for tile 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 Miscellaneous 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 swns secured by tillS Security Instrwnent. whetIler or not then due, with tile excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in tile order provided for in Section 2. In the event of a toml taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to tile sums secured by tillS Security Instrument, whetIler or not then due, witII tile excess, if any. paid to Borrower. In tile event of a partial mking, destruction, or loss in value of the Property in wlllch tile fair market value of the Property inunediately before tile partial taking, destruction, or loss in value is equal to or greater tIlan tile amount of tile sums secured by tillS Security Ins trwne nt inunediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otIlerwise agree in writing, tile swns secured by tillS Security Instrwnent shall be reduced by tile -mnOUl:t of the Miscellaneous Proceeds multiplied by the following fraction: (a) tile tom I amount of tile sums secured inunediately before tile partial taking, destruction. or loss in value divided by (b) tile fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which tile fair market value of tile Property inunediately before tile partial taking, destruction, or loss in value is less than the amount of the swns secured inunediately before tile partial taking, destruction, or loss in value, Ulùess Borrower and Lender otherwise agree in writing, tile Miscellaneous Proceeds shall be applied to the swns secured by this Security Instrument whether or not the swns are tIlen due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower tI13t tile Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for dan13ges. Borrower fails to respond to Lender witllln 30 days after tile date the notice is given, Lender is authorized to collect and apply tile Miscellaneous Proceeds eitIler to restoration or repair of tile Property or to the sums secured by tillS Security Instrwnent, whetIler or not tIlen due. "Opposing Party" means the tIllrd party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whetIler civil or criminal, is begun tI13t, in Lender's judgment, could result in forfeiture of tile Property or otIler material impairment of Lender's interest in the Property or rights under tillS Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling tIlat. in Lender's judgment, precludes forfeiture of tile Property or other material impaimlent of Lender's interest in the Property or rights under tillS Security Instrwnent. The proceeds of any award or claim for damages tl13t are attributable to tile impairment of Lender's interest in tile Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of tile Property sl1311 be applied in the order provided for in Section 2.' 0057164485 cD -6 (WY) (0005) @ Page 9 of 15 Fonu 3051 1/01 ~till~~~¡¡j!t;: li~¡i!¡¡¡i¡@;;; ":,"r'·.:,:'¡;'·i't";." \"q". '. ...', '.' ,"'¡ ·.~I 'I'" . , . .' . ".'.'~. ':j~ ,r. .': :;",'1 r...,..r~· ..f¡1·.'~' :H'. ·d~".'~·.i"- I' ¡¡ \. ,. ~ """.. .... , 'r-'t ·T.~A .J COC563 notice of transfer of servicing. If the Note is sold and 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 and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to tlús Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, tlús Security Instrument, 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 and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period wlúch must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of tlús paragraph. The notice of acceleration and opportu1Úty 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 opportu1Úty to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in tlns Section 21: (a) "Hazardous Substances" are tllOse substances defined as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasoline, kerosene, otller flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials contaÍlúng asbestos or fonnaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otllerwise 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, anytlúng affecting the Property (a) that is in violation of any Environmental Law, (b) wlúch 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 value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recog1Úzed to be appropriate to nonnal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any goverrunental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of wlúch Borrower has actual knowledge, (b) any Environmental Condition, including but not linúted to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance wlúch adversely affects tlle value of !þe Property. If Borrower leanlS, or is notified by any govennnental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance Witll Envirolnnental Law. Notlúng herein shall create any obligation on Lender for an Environmental Cleanup. 0057164485 G -6(WY) (0005) @ Fonn 3051 1/01 Page 12 of 15 . .. .;::';~' :;:';;';.:,~': ;;r,.:' ',' ;','. '. '. '. '. ',~.',' , ',;~ ;~¡.¡:,: ,: j, '. ;: . ,¡ :r~~ i:.)1 -)i >7;.~ ~.~'< {t,~ '"~~ ti ;1 ,.ii -'1.. . ..f. "" "-" "-' ,j"'"_ "';l "!'. !, ('. ·fi 0 5 ~..~) I 6 4 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in tins Security Instnunent are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow tbe parties to agree by contract or it might be silent, but such silence shall not be construed as a prolnbition . against agreement by contract. In the event that any provision or clause of tins Security Instrument or tile Note conflicts witIl Applicable Law, such conflict shall not affect other provisions of tins Security Instrument or tile Note wInch can be given effect WitIlOUt tile conflicting provision. As used in tins Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of tbe feminine gender; (b) words in tile singular shall mean and include tile plural and vice versa; and (c) the word "may" gives sole discretion WitIlOUt any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of tile Note and of tins Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in tins Section 18, "Interest in the Property" means any legal or beneficial interest in tile Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, tile intent of wInch is tbe transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in tile Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) witbout Lender's prior written consent, Lender may require immediate payment in full of all sums secured by tins Security Instrument. However, tins option shall not be exercised by Lender if such exercise is prolnbited by Applicable Law. If Lender exercises tins option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from tile date tile notice is given in accordance with Section 15 witlnn which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to tile expiration of tins period, Lender may invoke any remedies pennitted by tins Security Instrument WitIlOUt further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have tile right to have enforcement of tins Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of tile Property pursuant to any power of sale contained in tIns Security Instrument; (b) such otIler period as Applicable Law might specify for the tennination of Borrower's right to reinstate; or (c) entry of a judgment enforcing tins Security Instrument. Those conditions are that Borrower: (a) pays Lender all swns wInch tIlen would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing tins Security Instrument, including, but not linnted to, reasonable attorneys' fees, property inspection and valuation fees, and othet fees incurred for tile purpose of protecting Lender's interest in tile Property and rights under tins Security Instrument; and (d) takes such action as Lender may reasonably require to aSSUre that Lender's interest in the Property and rights under tIns Security Instrument, and Borrower's obligation to pay tile sums secured by tIns Security Instrument, shall continue unchanged. Lender may require tIllit Borrower pay such reinstatement swns 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 caslner's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in tbe case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in tile Note (together with this Security Instrument) can be sold one or more times WitIlOUt prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") tIllit collects Periodic Payments due under the Note and this Security Instrument and perfonns otIler mortgage loan servicing obligations under the Note, tins Security Instrument, and Applicable Law. There also might be one or more changes of tile 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 tile change wInch will state the name and address of tile new Loan Servicer, tile address to wInch payments should be made and any other information RESPA requires in connection with a 0057164485 G -6(WY) (0005) @ Fonn 3051 1/01 Page 11 pf 15 oomn¡ :·r"':":,:":i~,:.;;<;: -, ,", .' -r:¡¡:¡!~m? ;.,........'...........'..,.-.,. ..-'.'.............,...., ¡ -~ .~& Æ¡ 11.;) )!,~\ 0, Z..i\ ç~ Ì4 ·oI.·~l..l%.. '-.:,,"è ~,_,~ ""J <JJI (00565 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 agr..eement 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 (late 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 iu 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 silins secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sruns secured by tIús Security Instrument, Lender shall release tIús Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing tIús Security Instrwnent. but only if tIle fee is paid to a tlùrd party for services rendered and the charging of tIle fee is pennitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of WyollÙng. 0057164485 G -6(WY) (0005) @ Page 130fl5 Form 3051 1/01 '. ';' .';' .·ó .;........,~: ',- ~. .:.~! ~-' , ;', ~¡: !~¡ ;.,.;.:.......". _" ¡):., d~ ;:;F'-.<i:' ..<:;_: . :. ',..'...'...!....I!........ . ···,',·õ'.',',·,';·,· n.,ü18B99 tl,~~'*,". cor566 BY SIGNING BELOW, Borrower accepts and agrees to the tenns and covenants contained in tillS Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: - Borrower (Seal) (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 0057164485 G-6(WY) (0005) @ Page 14 of 15 Fonn 3051 1/01 ; will tilt , Nl"¡le hi, diìle :~~mi?~J¡mIT? .~~. ;~.":'õ ;.. . _. :Lmmllim:: ." ': ' ..' ¡~;,"~.''';'¿.¡ ~,':' i:! '.,' : ': . ¡. . ,.... ., i', '.;:,;¡-,~~·,··':·"'I"'.;<':";Æ";;'· ,;:":"',, >:' _' _;. .,.,.,..................,.,., ,,_~, ..' _.-j~'·~-"L.,:;:,,~:,' 1, '·1·:!·..')·_'~·:'~,;~;,"·1" . ·i·.··.~!I':<;~·:;f··,.-. '"., ...,.,...:'.. :no "'::k Ai f,,;.{ P ·i., <~ 'd..vJ..~..\~J ._>~..J",...I C00567 The foregoing instrument was acknowledged before me tIns lì (;L éÙ ( lL, Y\Oj 2LJ( 2{üb County ss: STATE OF WYOMING, by JEROLD G. SCHMIDT My Conunissioll Expires: ~ {;;¿'c:){Cþ ~ '(U'-~~ Notary Public ~..."'CY l BaOWN - NOT MY PuBLIC County of" S1aII! at LIncoln ., Wromin& Myc:om_o rO ....W5-2006 0057164485 0-6(WY) (OO(5) @ InitiaJs: .~P.ge 15 of 15 Fonn 3051 1101 , ',',. '¡'. I.~" I:.~ .'- ,I ,~ , ,_.' ¡ "... ...... '; ',0.....:.1.. ¡ . . '; n· <\.& A'¡ ~{~è"": ·C¡¡ ~~ ti. P ......1 ...."-$ .__~ _J- ~J __ COC568 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT May, 2006 deemed to amend and supplement "Security Instrument") of the same secure Borrower's Note to RIDER is made tllÍs 24th day of , and is incorporated into and shall be the Mortgage, Deed of Trust, or Security Deed (the date, given by the undersigned (the "Borrower") to FIRST HORIZON HOME LOAN CORPORATION (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 631 VISTA EAST DRIVE, THAYNE, Wyoming 83127 [Property Address] The Property includes, but is not limited to, a parcel of land improved together with otller such parcels and certain common areas and facilities, Covenants, Conditions and Restrictions of Record with a dwelling, as described in (the "Declaration"). The Property is a part of a plalmed unit development known as STAR VALLEY RANCH ASSOCIATION [Name of Planned Unit Development] (tlle "PUD"). The Property also includes Borrower's interest in the homeowners aSSOCIatIon or equivalent entity owning or managing the common areas and facilities of tlle PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instnnnent, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instnnnent or any equivalent docwnent which creates the Owners Association; and (üi) any by-laws or other rules or regulations of the Owners Association. Borrower slIall promptly pay, when due, all dues and assessments imposed pursuant to tlle Constituent Documents. 0057164485 MULTISTATE PUD RIDER - Single Family INSTRUMENT Form 3150 1/01 Fannie Mae/Freddie .-7R (0411) @ Page 1 of 3 VMP Mortgage Solutions, Inc. (800)521-7291 11111111111 1111111111 I1II111II111 [~~~ilili!;i~> :n~~OOm1~¡~:; ,..',...,.,............',.,--,'..,..',;<.-. ..",," ',..'...................'. ,... 4i ~ t·.· ,1. , ..." 0.:::-) 1... '._~' C} ~J ,j ,.,. ·,'·.··.·ô'....,.·,· COC569 B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels). for the periods, and against loss by fire, hazards included witlún the tenn "extended coverage," and any otller hazards, including. but not linúted to, eartllquakes and floods, for wlúch Lender requires insurance, tb.en: (i) Lender waives the provision in Section 3 for tlle Periodic Payment to Lender of the yearly premiwn installments for property insurance on tlle Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on tlle Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of tlús waiver can change during the tenn of the loan. Borrower shall give Lender prompt Jlotice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD. any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the swns secured by tlle Security Instrument, whether or not then due, with tlle excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure tllat the Owners Association maintains a public liability insurance policy acceptable in fonn, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or otller taking of all or any part of the Property or tlle common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrwnent as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, eitller partition or subdivide the Property or consent to: (i) tlle abandonment or tennination of the PUD, except for abandonment or tennination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condelllilation or eIninent domain; (ii) any amendment to any provision of tlle "Constituent Docwnents" if the provIsIOn is for the express benefit of Lender; (iii) temÚllation of professional management and asswnption of self-management of the Owners Association; or (iv) any action Wlúch would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Reme(lies. If Borrower does not pay PUD dues and assessments when due, tllen Lender may pay them. Any amounts disbursed by Lender under tlús paragraph F shall become additional debt of Borrower secured by tlle Security Instrument. UIùess Borrower and Lender agree to other tenns of payment, tllese amounts shall bear interest from the date of disbursement at tlle Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 0057164485 G-7R (0411) @ Page 20f3 Form 3150 1/01 "-Y",.d~'VI'Y>"·':"'''-~':'''·.·:-''-"';I-",..,·.-~....:).·:.,, '~'>r=~"":'·i-"""'-·,"; .' .':.~'..<'~.'-~":-'-:;[~",- ".,..; ¡;....:.;;,;....:.:.:.;..... -,. '.···........i,',"'i~~...~?i,..·~.,·_,,~.'.:·..,':~~~~:.,- ;."~.~.'" .-".,~:~.,..-_.. .... .., f;'·,'~""·;" ··,·ò·\ ,';...,....';.-'.,<~ Ü3jt~~~~:J9 (:0(570 and agrees to the terms and covenants contained (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0057164485 .-7R (0411) @ Page 3 of3 Form 3150 1/01 ~Illimmimm~~:'~, . )t~ml~m~) ,~ . ,. ....;...... ., nüi f..,) '\.,,:1\.\ "$. t\..; ..._1 ",,~....t '..J \.__.J ",-I ....~ 00571 1-4 FAMILY RIDER (Assignment of Rents) THIS 1-4 FAMILY RIDER is made this 24th day of and is incorporated into and shall be deemed to amend Deed of Trust, or Security Deed (the "Security Ins trwnent") undersigned (the "Borrower") to secure Borrower's Note to FIRST HORIZON HOME LOAN CORPORATION May, 2006 and supplement the Mortgage, of the same date given by the "Lender") of the same date and covering and located at: 631 VISTA EAST DRIVE, the Property described in the Security (the Ins trwne nt THAYNE, Wyoming 83127 [Property Address] 1-4 FAMILY COVENANTS. In addition to the covenants and agreements Security Instrument. Borrower and Lender furthBf covenant and agree as follows: A. ADDITIONAL PROPERTY SUBÆCT TO THE SECURITY INSTRUMENT. In addition to the Property described in the Security Instrument, the following items now or hereafter attached to the Property to the extent they are fixtures are added to the Property description, and shall also constitute the Property covered by the Security Instrument: building materials, appliances and goods of every nature whatsoever now or hereafter located in, on. or used, or intended to be used in cOllirection with the Property, including, but not limited to, those for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light. fire prevention and extinguishing apparatus, security and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awnings, stornl windows, stornl doors, screens, blinds, shades, curtains and curtain rods, attached mirrors, cabinets, paneling and attached floor coverings, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security Instrument. All of the foregoing together with the Property described in the Security Instrument (or the leasehold estate if the Security Instrument is on a leasehold) are referred to in this 1-4 Family Rider and the Security Instrument as the "Property." B. USE OF PROPERTY; COMPLIANCE WITH LAW. Borrower shall or make a change in the use of the Property or its zoning classification, agreed in writing to the change. Borrower shall comply with all regulations and requirements of any governmental body applicable to the Property. C. SUBORDINATE LIENS. Except as pennitted by federal law, Borrower shall not allow any lien inferior to the Security Instrument to be perfected against the Property without Lender's prior written pernussion. D. RENT LOSS INSURANCE. Borrower shall maintain insurance against rent loss in addition to the other hazards for which insurance-is required by Section 5. made in the not seek, agree to unless Lender has laws, ordinances, 0057164485 MULTISTATE 1- 4 FAMILY RIDER - Fannie Mae/Freddie Mac UNIFORM: INSTRUMENT Form 3170 1/01 _-57R (0411) @ Page 1 of 3 Initials: ~~~5~1~;tf;re Solutiol~, II 11111111111111111111111111111111111 , .;......;0;.;...;......",' , ',',';'.'.!:.' ··'.·~1·'····'_1 '.".'"';~.';'.'>' ' T. ~ (:ì, A¡¡ ¡~ C\I,;.: 'C~ ~~, ".. J _~,.. . ," .~~.... .J' .~ (' 5 7 2 E. "BORROWER'S RIGHT TO REINSTATE" DELETED. Section 19 is deleted. F. BORROWER'S OCCUPANCY. Ulùess Lender and Borrower otherwise agree in writing, Section 6 concenúng Borrower's occupancy of the Property is deleted. G. ASSIGNMENT OF LEASES. Upon Lender's request after default, Borrower shall assign to Lender all leases of the Property~ and all security deposits made in connection with leases of the Property. Upon the assigmnent, Lender shall have the right to modify, extend or terminate the existing leases and to execute new leases, in Lender's sole discretion. As used in tIús paragraph G. the word "lease" shall mean "sublease" if the Security Instrument is on a leasehold. H. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION. Borrower absolutely and unconditionally assigns and transfers to Lender all tIle rents and revenues ("Rents ") of the Property, regardless of to whom the Rents of the Property are payable. Borrower autIlOrizes Lender or Lender's agents to collect the Rents, and agrees tl"lat each tenant of the Property shall pay the Rents to Lender or Lender's agents. However, Borrower shall receive tIle Rents until: (i) Lender has given Borrower notice of default pursuant to Section 22 of tIle Security Instrument, and (ii) Lender has given notice to tIle tenant(s) tIlat the Rents are to be paid to Lender or Lender's agent. This assignment of Rents constitutes an absolute assignment and not an assigmnent for additional security only. If Lender gives notice of default to Borrower: (i) all Rents received by Borrower shall be held by Borrower as trustee for the benefit of Lender only, to be applied to tIle sums secured by the Security Instrwnent; (ii) Lender shall be entitIed to collect and receive all of tIle Rents of tIle Property; (iii) Borrower agrees that each tenant of tIle Property shall pay all Rents due and unpaid to Lender or Lender's agents upon Lender's written demand to tIle tenant; (iv) unless applicable law provides otIlerwise, all Rents collected by Lender or Lender's agents shall be applied first to tIle costs of taking control of and managing tIle Property and collecting the Rents, including, but not limited to, attorney's fees, receiver's fees, prellÚums on receiver's bonds, repair and maintenance costs, insurance prellÚums; taxes, assessments and other charges on the Property, and tIlen to tIle sums secured by the Security Instrument; (v) Lender, Lender's agents or any judicially appointed receiver shall be liable to account for only those Rents ....actually received; and (vi) Lender shall be entitled to have a receiver appointed to take possession of and manage tIle Property and collect the Rents and profits derived from the Property without any showing as to the inadequacy of the Property as security. If the Rents of the Property are not managing tIle Property and of collecting purposes shall become indebtedness Instrument pursuant to Section 9. Borrower represents and warrants that Borrower has not executed any prior assignment of the Rents and has not perfonned, and will not perfonn. any act tIlat would prevent Lender from exercising its rights under this paragraph. Lender, or Lender's agents Or a judicially appointed receiver, shall not be required to enter upon, take control of or maintain the Property before or after glVlIlg notice of default to Borrower. However, Lender, or Lender's agents or a judicially appointed receiver, may do so at any time when a default occurs. Any application of Rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment of Rents of the Property shall terminate when all the sums secured by tIle Security Instrument are paid in full. sufficient to cover tIle costs of taking control of and the Rents any funds expended by Lender for such of Borrower to Lender secured by the Security 0057164485 .-57R (0411) @ Page 20f 3 ":'-:...1- m~~!1~r~ij ·¡,.~,:'.;,,~¿,;-.·,.'·,·L·,·;',7;"·', ~;F~ O· .'. 9,o1i '1>.\. -) o¡,;':'(j" "-1" , " ...~':.$l,,1so' ... "- ....,;'."- - ;i~¡m~~j~; ... ,.,.,.).-o...'- ..~.......,... " !fl,',¡;";'.~';'~;'}~. ':':';(';':'."·_·'l.-'; '0':':'.-0;','-'. COC573 I. CROSS-DEFAULT PROVISION. Borrower's default or breach under any note or agreement in which Lender has an interest shall be a breach under the Security Instrument and Lender may invoke any of the remedies pennitted by the Security Instrument. fERDLD 0057164485 0-57R (0411) @ accepts and agrees to the tenus and covenants (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower Page 3 of 3 Form 3170 1/01 ....,..:,;.;-:.;.;.-.,. ';;.,";". ',.",' .; , - ,.-,;(l'''''';~.''.' .'-. ". '.;":, '..,'....'~,....',-:..". . .-.. .'." "';.",;I:!~:;; p r.~ ,'~ )".,) t,) (¡,-~\U, ~a,.p wt~) ~~~ c.:: c~j..JI J C00574 ADJUSTABLE RATE RIDER 0057164485 (LffiOR Six-Month Index (As Published In The Wall Street Journal) - Rate Caps) THIS ADJUSTABLE RATE RIDER is made tIus 24th day of May, 2006 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "SðCurity Instrwnent") of the same date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to FIRST HORIZON HOME LOAN CORPORATION ("Lender") of the same date and covering the property described in the Security Instrument and located at: 631 VISTA EAST DRIVE THAYNE, WY 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 tIle covenants and agreements Security Instrwnent, Borrower and Lender furtIler covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of for changes in the interest rate and the montIùy payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change and on that day every 6 th rate could change is called a "Change Date." (B) The Index Begimung with tIle 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 tile London market ("LlBOR"), as published in The Wall Street Journal . The most recent Index figure available as of tile first business day of tile month immediately preceding tile month in wluch the Change Date occurs is called the "Current Index. " If the Index is no longer available, the Note Holder will choose a new index tIlat is based upon comparable information. The Note Holder will give me notice of tIus choice. (C) Calculation of Changes Before each Change Date, tile Note Holder will calculate my new interest rate by adding TWO AND ONE - QUARTER percentage points ( 2 . 250 %) to the Current Index. The Note Holder will then round the result of made in the 7.750 %. The Note provides on the first day of June, 2010 month tIlereafter. Each date on wluch my interest MULTISTATE ADJUSTABLE IN THE WALL STREET IOU .-838R (0402) Form 31 @ .. Page 1 of 3 ImtJals: VMP Mortgage Solutions, Inc (800)52 I -7291 RATE RIDER - LffiOR SIX-MONTH INDEX (AS PUBLISHED - Single Family - Fannie Mae Uniform Instrument 11111111111111111111111111111111111 !;:;; I'. , ::~ ~:i¡ ¡U~:imm:irj ~ .;.; ,~I; .;.;.;¡?, '. . . , . '",_~.._ :":"_':.~"-":':·:"'L~;~;?~(;-::': .":,,,' ,·':.:.;f:.:.;:.:;;;.:.:...._ , '._ """.',';'¡''¡~ .... cl" ~ G" ~..:~ Ýtt": ~1%¡; .<¿ J. ~~'1 _tö'....~ ......... '" J l._~ ~..,;.¡~ '11,./ C00575 t1ùs addition to the nearest one-eight11 of one percentage point (0.125 %). Subject to the linùts stated in Section 4(D) below, tIùs rounded amount will be my new interest rate until tile next Change Date. The Note Holder will then detennine the amount of tile monthly payment that would be sufficient to repay tile unpaid principal tI1at 1 am expected to owe at tile Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of tIùs calculation will be tile new amount of my montIùy payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at tile first Change Date will not be greater tIlan 13 . 750 % or less tIlan 2 . 250 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than TWO & 00/100 percentage points 2 . 00 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater tI1an 13 . 750 (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay tile amount of my new monthly payment begimùng on the first montIùy payment date after tile Change Date until the amount of my montIùy payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes and tile amount of my montIùy payment before the effective date of any will include information required by law to be given to me and also tile 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 Ulùform Coveuant 18 of tile Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used 11l tIùs Section 18, "Interest in tile Property" means any legal or beneficial interest in the Property, including, but not linùted to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of wlùch is tile transfer of title by Borrower at a future date to a purchaser. If all or any part of tile 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 cOl1~ent, Lender may require immediate payment in full of all sums secured by tlùs Security Instrwnent. However, tlùs option sl1all not be exercised by Lender if such exercise is prolùbited by Applicable Law. Lender also sl1all not exercise tlùs option if: (a) Borrower causes to be subl1ùtted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to tile transferee; and (b) Lender reasonably detemùl1es that Lender's security will not be impaired by the loan asswnption and tIlat the risk of a breach of any covenant or agreement in tlùs Security Instrument is acceptable to Lender. To the extent pemùtted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to tile loan asswllption. Lender also may require tile transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all tile prOlnises and agreements made in the Note and in tIùs Security Instrument. Borrower will continue to be obligated under tlle Note and tlùs Security Ins trwne nt unless Lender releases Borrower in writing. %. in my interest rate change. The notice title and telephone 0057164485 .-838R (0402) @ Page 2 of 3 Form 3138 1/01 / ',':_;I;,;",.;,;.¡I;".:"·'·';',<, ..;,;.;.;.;.;.....¡.< ,"·;'~i;:,:~Û,¡'-;·'· :.' .-.'\:;; ~~::':~1~: ~ ".: f':" . .~,,~.!;.-¡(,'.,~¡.,. -;- .." ...,...';,..'. . . .}.; 'i> )~ìq,Q .j .Ì,\~l.., 'R I, ;''L:~\.~~~.J \. þ~. .,.. '. - CO('576 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 Imtrument. If Borrower fails to pay these swns prior to the expiration of this period, Lender may invoke any remedies pemútted by tlus Security Instrument without furtller notice or demand on Borrower. aecepts and agrees to the tenus and covenants (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0057164485 .-838R (0402) @ Page 3 of 3 Form 3138 1/01 U:>31703.l1lJ3.1l::11J _8m·, ::}1i:¡j¡ill¡¡'] , , '- ,.-. ~._......,:. ',' , , "Oo"'¡,·.'!;,1",;..,-_ .", ~ J,.- .'~' '."'.,:, ''''''., , . .í''''·}· 4;ì It,~ ..... '. \1.,..... . ~ ."".; Jt...~. ~..¡¡ ._~ ._P.._ .,:~'" ....JJ......-'/....... ....¡\- C00577 INTEREST ONLY ADDENDUM TO ADJUSTABLE RATE RIDER TillS ADDENDUM is made this 24th day of May 2006 , and is incorporated into and intended to form a part of the Adjustable Rate Rider (the "Rider") dated the same date as this Addendum executed by the undersigned and payable to FIRST HORIZON HOME LOAN CORPORATION (the "Lender"). TillS ADDENDUM supercedes Section4(C) of the Rider. None of the other provisions of the Rider are changed by this Addendum. 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND ONE - QUARTER percentage points ( 2. 250 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D), this rounded amount will be my new interest rate until the next Change Date. During this Interest Only Period, the Note Holder will then determine the amount of the monthly payment that would be sufficient to repay accrued interest. This will be dIe amount of my monthly payment until the earlier of the next Change Date or dIe end of dIe Interest OlÙY Period ulùess I make a voluntary prepayment of principal during such period. If I make a voluntary prepayment of principal during the Interest OlÙY Period, my payment amount for subsequent payments will be reduced to the amount necessary to pay interest on dIe lower principal balance. At the end of dIe Interest OlÙY Period and on each Change Date thereafter, the Note Holder will determine the amount of the monthly payment that would be sufficient to repay in full the unpaid principal that I am expected to owe at the end of the Interest OlÙY Period or Change Date, as applicable, in equal monthly payments over the remaining term of the Note. The result of this calculation will be the new amount of my monthly payment. After dIe end of the Interest Only Period, my payment amount will not be reduced due to voluntary prepayments. GNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Addendum. Date Date Date Date Date Date Date Pnq€r~lt Et1n1~ ~ddendu1l1 to ARM Rider Page 1 of 1 FH6D03U 9/04 ·. ..Tj:.~.'.:na7 :A:,;t"ii'~ili.';';'i_ _1:f!t"i'iit<::~'i.:,!Ç~'-'!::ri!t"'I:C';':'::> :' .0_' ,; ",' ._. ;.,' -~~ :.~:r~' ._~ ';:::~::,:~;,'.!."-"> ,. ~'.: ¡~.~.:.:~ :;~,:I:. - . -, -: ·;":.':''';:;;'~~'~'Ò¡';-¡:;;,J'~F';':-,:';'':"J':. ;' .;..:-}.0i-;"{':';:;-'" . c , 'o;,;.:¡¡..;;;,; ~,' ~!:-... .- . " - . .. :'··'-·',"'¡-;'.'i',·, - Ü ,'~ t",) 1,;¿ 'ij ;~~ IJ_ ~ ..=1 ...t.. C!J <--._J~. ~... (:0('578 TO BE RECORDED WITH THE SECURITY INSTRUMENT LENDER: FIRST HORIZON HOME LOAN CORPORATION 0057164485 BORROWER: JEROLD G. SCHMIDT PROPERTY: 631 VISTA EAST DRIVE THAYNE, Wyoming 83127 RESIDENTIAL CONSTRUCTION LOAN RIDER INCLUDING SECURITY AGREEMENT TO THE DEED OF TRUST/MORTGAGE TillS RESIDENTIAL CONSTRUCTION LOAN RIDER shall be deemed to amend and supplement the Deed of Trust/Mortgage (the "Security Instrument"), of the same date given by the undersigned (the "Borrower") to secure Borrower's Note ("Note") and Addendum to Note to Lender of the same date and covering the property ("Property") described in the Security Instrument. All terms dermed in the Note and elsewhere in the Security Instrument shall have the same meaning in this Rider. AMENDED AND ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: 1. Residential Construction Lqan Agreement. Borrower agrees to comply with the covenants and conditions of the Residential Construction Loan Agreement ("Loan Agreement") between Borrower and Lender, which is incorporated herein by this reference and made a part of this Security Instrument. The Loan Agreement provides for the construction of certain Improvements ("Improvements") on the Property. All advances made by Lender pursuant to the Loan Agreement shall be an indebtedness of Borrower secured by this Security Instrument as amended and such advances may be obligatory under the terms of the Loan Agreement. The Security Instrument secures the payment of all sums and the performance of all covenants required by the Lender in the Loan Agreement. Upon the failure of Borrower to keep and perform all the covenants, conditions and agreements of the Loan Agreement, the principal sum and all interest and other charges provided for in the loan documents and secured hereby shall, at the option of the Lender, become due and payable. 2. Construction Loan Deed of Trust/Mortgage. This Security Instrument is a "construction mortgage" securing an obligation incurred for the construction of the Improvement on the Property including the acquisition cost of the Property, if any, and any notes issued in extension, renewal, or substitution thereof. Borrower affinns, acknowledges and warrants that prior to the recordation of this RCLA Rider to Security Instrument Page 1 of 5 812003 FH6D16X !:j ill~~8 ...>....-....;.,.;...,...., .,...f.I........,.~....' '.' ,',',', :;.:.,' ".j ~, '. '. . ." - . f' ~,-, II ", c._~ ...~ . ~i n '--iI'~ ¡""~ ~.~ ~J J fJ..f ___I 4~." '......;,1 _3 {00579 Security Instrument, as amended, in the Real Property Records of the county or counties where the Property is located, no Improvements contemplated by the Loan Agreement have been constructed, no work has been perfonned, and no materials have been ordered or delivered. 3. Future Advances. This Security Instrument shall secure in addition to the sum evidenced by the Note all funds hereafter advanced by Lender to or for the benefit of Borrower, as contained in the Contract and/or due under the LOan Agreement and all indebtedness or obligations presently or hereafter owed by Borrower to Lender, however arising, whether by note, contract, tort, guaranty, operation of law or otherwise; whether or not the advances or events creating such debts or obligations are presently foreseen; and regardless of the class of debts or other obligations, be they secured or unsecured or arising from commercial, credit card or consumer transactions; or for any other purpose. All future advances shall be made within the time limit authorized by the laws of the State of Wyoming 4. Disbursements to Protect Security. All sums disbursed by Lender prior to completion of the Improvements to protect the security of this Security Instrument, up to the principal amount of the Note and any future advances, shall be treated as disbursements pursuant to the Loan Agreement. All such sums shall bear interest from the date of disbursement at the rate stated in the Note and the Addendum to the Note, unless the collection from Borrower of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate which may be collected from Borrower under applicable law and shall be payable upon notice from Lender to Borrower requesting payment therefore. 5. Assignment of Rights or Claims. From time to time as Lender deems necessary to protect Lender's interest, Borrower shall, upon request of Lender, execute, acknowledge before a notary, and deliver to Lender, assignments of any and all rights or claims which relate to the construction on the Property. 6. Breach by Borrower. In case of breach by Borrower of the covenants and conditions of the Loan Agreement, Lender, at Lender's option, with or without entry upon the Property, (a) may invoke any of the rights or remedies provided in the Loan Agreement, or (b) may accelerate the sums secured by this Security Instrument and invoke any of those remedies provided for in this Security Instrument, or (c) may do both although failure to exercise any of its rights and remedies at anyone time does not constitute a waiver or modification of any conditions, rights or remedies in the future. 7. Amortization and Loan Agreement. After the commencement of amortization of the Note, the terms of the Loan Agreement shall be deemed to have been satisfied. There shall be no claim or defense arising out of or in connection with the Loan Agreement against the obligations of the Note and this Security Instrument. 8. Property. The property cov.ered by this Security Instrument includes the property described or referred to in this Security Instrument, together with the following, all of which are referred to as the "Property". The portion of the Property described below which constitutes real property is sometimes referred to as the "Real Property". The portion of the Property which constitutes personal property is sometin1es referred to as the "Personal Property", listed as follows: Any and all buildings, Improvements (provided in the Loan Agreement or otherwise), and tenements now or hereafter erected on the Property; any and all heretofore and hereafter vacated alleys 0057164485 RCLA Rider to Security Instrument Page :2 of 5 8/2003 FH6D 16Y ,.;'..,..................','.. , .:,' ¡ ',1,~ ':,.'1; ,_.....: ,I ,~;;~;¡', ;, . , -, . .1~~Q,"ì'ì t<: '~ "-'.1 ~. A"t·" .,~~) '(i~ 'i..1: "'. ...~;'.. t.~ a:; (~j ",J <$,..., cor580 and streets abutting the Property, easements, rights, appurtenances, rents (subject however to any assignment of rents to Lender), leases, royalties, mineral, oil and gas rights and profits, water, water rights and water stock appurtenant to the Property (to the extent they are included in Borrower's fee simple title); any and all fixtures, machinery, equipment, building materials, appliances, and goods of every nature whatsoever now or hereafter located in, or on, or used, or intended to be used in connection with the Property and all replacements and accessions of them, including, but not limited to, the following items, which are hereby recognized by the parties to this instrument as fixtures: appliances for the purpose of supplying or distributing heating, cooling, electricity, gas, water, air and light; security and access control apparatus; plumbing and"'plumbing fixtures; refrigerating, cooking and laundry equipment; carpet, floor coverings and interior and exterior window treatments; furniture and cabinets; interior and exterior sprinkler plant and lawn maintenance equipment; fire prevention and extinguishing apparatus and equipment, water tanks, swimming pool, compressor, vacuum cleaning system, disposal, dishwasher, range, and oven, any shrubbery and landscaping; any and all plans and specifications for development of or construction of Improvements upon the Property; any and all contracts and subcontracts relating to the Property; any and all accounts, contract rights, instruments, documents, general intangibles, and chattel paper arising from or by virtue of any transactions related to the Property; any and all pennits, licenses, franchises, certifications, and other rights and privileges obtained in connection with the Property; any and all products and proceeds arising from or by virtue of the sale, lease, or other disposition of any of the Property; any and all proceeds payable or to be payable under each policy of insurance relating to the Property; any and all proceeds arising from the taking of all or part of the Property for any public or quasi-public use under any law, or by right of eminent domain, or by private or other purchase in lieu thereof; all building pennits, certificates of occupancy, certificates of compliance, any right to use utilities of any kind including water, sewage, drainage and any other utility rights, however arising whether private or public, present or future, including any reservation, pennit, letter, certificate, license, order, contract or otherwise and any other penn it, letter, certificate, license, order, contract or other document or approval received from or issued by any governmental entity, quasi-governmental entity common carrier, or public utility in any way relating to any part of the Property or the Improvements, fixtures and equipment thereon; all other interests of every kind and character which Borrower now ha~ or at any time hereafter acquires in and to the Property, including all other items of property and rights described elsewhere in this Security Instrument. 9. Security Instrument. This Security Instrument shall be a security agreement granting Lender a first and prior security interest in all of Borrower's right, title and interest in, to and under the Personal Property, under and within the meaning of applicable statues of this state, located on or acquired for installation on or used in the operation of the real property, including, but not limited to, all construction materials, goods, equipment and fixtures, and all accessions, additions and replacements thereof. As well as a mortgage granting a lien upon and against the Real Property. In the event of any foreclosure sale all of the Real and Personal Property may, at the option of Lender, be sold as a whole or in any part. It shall not be necessary to have present at the place of such sale the Personal Property or any part thereof. Lender shall have all the rights, remedies and recourses with respect to the Personal Property afforded to a "Secured Party" by the applicable statutes of this state in addition to and not in limitation of the other rights and recourse afforded Lender under this Security Instrument. Borrower shall, upon demand, pay to Lender the amount of any and all expenses, including the fees and disbursements of Lender's legal counsel and of any experts and agents which Lender may incur in connection with: (i) the making and/or administration of this Security Instrument; (ii) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon any property, real and/or personal, described in this Security Instrument, (iii) the exercise or enforcement of any of 0057164485 RCLA Rider to Security Instrument Page 3 of 5 8/2003 FH6D16Z ru~¡¡fili~~rj Œ!]¡jmE ".,!to' I"·....·,'. 'j' .'< ., : .:,: I ¡"¡. ,..,"; ~ ;.": .:If,''l ':':: ;:<: ,,;; - ,'i. ,.",',. .,'-....'...','.., ",__-',',,-¡-:); ':,"··i::::~'~·'· ".'-':-.-:' ,;.;.'.'¡~..,:.:. '. d '} ~-) ]'Æ ~:~~ ~~, ;:.3 ~¡: C00581 the rights of Lender under this Security Instrument; or (iv) the failure by Borrower to perform or observe any of the provisions or covenants in this Security Instrument. 10. Completion. Lender shall not be responsible for the completion of the Improvements, and shall not in any way be considered a guarantor or surety of performance by Borrower. In the event the Improvements are not completed according to the Plans and Specifications approved by Lender, and it is determined for whatever reason the Lender does not have a lien arising by or through Borrower, then Lender shall have a valid lien for its loan amount, less the amount reasonably necessary to complete the Improvements, or in such event Lender, at its option, shall have the right to complete the Improvements, and the lien shall be valid for the loan amount. Paragraph 6 of the Security Instrument. The first sentence of paragraph 6 of the Security Instrument is hereby modified to read as follows: Borrower shall occupy, establish and use the Property as Borrower's principal residence within sixty (60) days from the execution of the Modification Agreement and shall continue to occupy the Property as Borrower's principal residence for at least one (1) 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 are beyond Borrower's control. All other provisions in Paragraph 6 of the Security Instrument remain unchanged. 11. Invalid Provisions. If any provision of this Security Instrument is declared invalid, illegal, or unenforceable by a court of competent jurisdiction, then such invalid, illegal or unenforceable provision shall be severed from this Security Instrument and the remainder enforced as if such invalid, illegal or unenforceable provision is not a part of this Security Instrument. 12. Address. The name and address of the Borrower/Debtor during construction of the Improvements is: JEROLD G. SCHMIDT 3464 SOUTH CLEVELAND CIRCLE SALT LAKE CITY, Utah 84109 The name and address of the LendEr/Secured Party is: FIRST HORIZON HOME LOAN::::ORPORATION 3505 EAST OVERLAND ROAD MERIDIAN, ID 83642 13. Other Provisions. The following notice is required by law: IMPORTANT NOTICE: YOU ARE HEREBY NOTIFIED THAT ANY PERSON PERFORMING LABOR ON YOUR PROPERTY OR FURN1SIllNG MATERIALS FOR THE CONSTRUCTION, REPAIR, OR IMPROVEMENT OF YOUR PROPERTY WILL BE ENTITLED TO A LIEN AGAINST YOUR PROPERTY IF HE IS NOT PAID IN FULL, EVEN THOUGH YOU MAY HAVE PAID THE FULL CONTRACT PRICE TO YOUR CONTRACTOR. TIllS COULD RESULT IN YOUR PAYING FOR LABOR AND MATERIALS TWICE. TIllS LIEN CAN BE ENFORCED BY THE SALE OF YOUR PROPERTY. TO ÀVOlD TIllS RESULT, YOU MAY DEMAND FROM YOUR CONTRACTOR LIEN WAIVERS FROM ALL PERSONS PERFORMING LABOR OR FURN1SIllNG MATERIALS FOR THE WORK ON YOUR PROPERTY. YOU MAY WITIIHOLD PAYMENT TO THE CONTRACTOR IN THE AMOUNT OF ANY UNPAID CLAIMS FOR LABOR 0057164485 RCLA Rider to Security Instrument Page 4 of 5 812003 FH6D17A (P ~~,~ l. ~:ì (>;j!:iffl;:':/: rm~~~mill C00582 FOR MATERIALS. YOU ALSO HAVE TIIE RIGIIT TO DEMAND FROM YOUR CONTRACTOR A COMPLETE LIST OF ALL LABORERS AND MATERIAL SUPPLIERS UNDER YOUR CONTRACT, AND TIIE RIGIIT TO DETERMINE FROM TIIEM IF TIIEY HAVE BEEN PAID FOR LABOR PERFORMED AND MATERIALS FURNISHED. By signing below, Borrower accepts and agrees to the terms and covenants contained in this Residential Construction Loan Rider. Borrower Borrower Borrower J STATE OF WYOMING) ) ss. County of Lincoln ) : Co, '''tV 01 Stale of ~ 'u_";,ò. WotomlnJl ·l ~:~ Commission Exp/I'!!I 6-25-2006 On this 24th day of May, 2006 personally appeared before me, a Notary Public, in and for said County and State, Jerold G. Schmidt , known to me to be the person described in and who executed the attached instrument, who acknowledged to me that he executed the same freely and voluntarily and for the uses and purposes therein mentioned. 1 NI\NCY J. BROWN- NOTARY PUBLIC County rJ _ !tiel of Lincoln .. W omIna My Comml..ron &pII-. Ws.zocJ6 \~~Þð\ÆWL Notary Public I