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HomeMy WebLinkAbout919791 ".:. ~ ' :-. . C00007 After Recording Return To: Wells Fargo Bank, N.A. Attn: Document Mgt. P.O. Box 31557 MAC B6908-012 Billings, MT 59107-9900 RECEIVED 6/29/2006 at 2:46 PM RECEIVING # 919791 BOOK: 625 PAGE: 7 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above This Line For Recording Data] Account number: 650-650-1913805-1XXX Reference number: 20061183321987 LINE OF CREDIT MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined elsewhere in this document. Certain rules regarding the usage of words used inthis document are also provided in Section 14. /"ì / (A) "Security Instrument" means this document, which is dated MAY 25, 2006, together with all Riders to this document. ' (B) "Borrower" is TIM A. KRUEGER AND ANN K. KRUEGER, HUSBAND AND WIFE AS TENANTS BY THE ENTIRETIES. BOlTower is the mortgagor under this Security Instrument. (C) "Lender" is Wells Fargo Bank, N.A.. Lender is a National Bank organized and existing under the laws of the United States of America. Lender's address is 101 North Phillips Aveq,µe, Sioux Falls, SD 57104. Lender is the mortgagee under this Security Instrument. (D) "Debt Instrument" means the loan agreement or other credit instrument signed by BOlTower and dated MAY 25, 2006. The Debt Instrument states that Borrower owes Lender, or may owe Lender, an amount that may vary from time to time up to a maximum principal sum outstanding at anyone time of, SIXTY THOUSAND AND 00/100ths Dollars (U.S. $ 60,000.00) plus interest. Borrower has promised to pay this debt in Periodic Payments and to pay the debt in full not later than May 25, 2046. (E) "Property" means the property that is described below under the heading "'Transfer of Rights in the Property." (F) "Loan" means all amounts owed now or hereafter under the Debt Instrument, including without limitation principal, interest, any prepayment charges, late charges and other fees and charges due under the Debt Instrument, and also all sums due under this Security Instrument, plus interest. (G) "Riders" means allRiders to this Security Instrument that are executed by BOlTower. The following Riders are to be executed by BOlTower [check box as applicable]: IN/AI Leasehold Rider IN/AI Home Asset ManagementSM Account Rider IN/AI Third Party Rider IN/AI Other(s) [specify] N/A (H) ¡'Applicable Law" means all controlling applicable federal law and, to the extent not preempted by federal law, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect oflaw) WYOMING-OPEN-END SECURITY INSTRUMENT HCWF#49v7 (3110/05) I~II~II ~llllllllœ ~IIIIIIIUlmll~U ælllllllll~ m I~IIIIII~IIIII~IIII~I (page / of J 3 pages) Documents Processed 06-02-2006, 15:48:22 OJ{~A,¡ or"'ý().~ ,JA...I\·J t, L ;:' nnU·iJrS as well as all applicable final, non-appealable judicial opinions. ',', " , (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that may be imposed on BOlTower or the Property by a condominium association, homeowliers association or s'imilar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale h'ansfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 4) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Propelty, (L) "Periodic Payment" means the amounts as they become due for principal, interest and other charges as provided for in the Debt Instrument. (1'1) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Debt Instrument and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all future advances, renewals, extensions and modifications of the Debt Instrument, including any future advances made at a time when no indebtedness is currently secured by this Security Instrument; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Debt Instrument. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the County [Type of Recording Jurisdiction] of LINCOLN [Name of Recording Jurisdiction] LOT 32 OF STAR VALLEY RANCH PLAT 10, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. 12-3518-31-2-04-007.00 THAYNE [City] 149 WALNUT DRIVE [Street] , Wyoming 83127 [Zip Code] ("Property Address"): which cUlTently has the address of TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instru~1ent as the "Property." The Property shall also include any additional property described in Section 20. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right .to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record as of the execution date of this Security Instrument. BOITower wan'ants and will defend generally the title to the Property against all claims and demands, s~bject to any encumbrances of record. UNIFORM COVENANTS. BOITower and Lender covenant and agree as follows: WYOMING-OPEN-END SECURITY INSTRUMENT HCWF#49v7 (3/1 0/05) I~~ I~IIIIIIIII~ 1111111~111111111111111111 ~II~~IIIIII~ IIIIIII~I~IIIIIWII~I (page 2 of /3 pages) , Documents Processed 06-02-2006. 15:48:22 Q1' o.I""1G~ 0..:1 ",.:)1~,;j JJ... 00009 1. Payment of Principal, Interest, Prepayment and Other Charges. Bon'ower shall pay when due the principal of, and interest on, the debt evidenced by the Debt Instrument and any prepayment charges, late charges and other charges due under the Debt Instrument. Payments due under the Debt Ins-trument and this Security' Instrument shall be made in U,S. currency. However, if any check or other instrument received by Lender as payment under the Debt Instrument or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Debt Instrument and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are' insured by a federal agency, insh'Umentality, or entity; or (d) Elech'onic Funds Transfer. Payments are deemed received by Lender when received at the location designated in (or in accordance with) the Debt Instrument or at such other location as may be designated by Lender in accordance with the notice provisions in Section 13. Subject to Applicable Law, Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan CUlTent. Lender may accept any payment or partial payment insufficient to bring the Loan cUlTent, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future. 2. Application of Payments or Proceeds. Unless other procedures are set forth in the Debt Insh'Ument or Applicable Law, Lender may apply payments in any order that Lender deems appropriate. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Debt Instrument shall not extend or postpone the due date, or change the amount, of the Periodic Payments, 3. Charges; Liens. Bon-ower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any, BOlTower shall promptly discharge any lien which has priority over this Security Insh'Ument unless BOlTower: (a) has disclosed such lien to Lender at application for the Loan or agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien that can attain priority over this Security Insh'Ument and which was not disclosed on the application for the Loan that BOlTower provided to Lender, Lender may give Bon-ower a notice identifying the lien, Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions satisfactory to Lender set forth above in this Section 3. Lender may requite BOlTower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in cOlmection with this Loan. 4. Property Insurance. BOlTower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance, This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Bon'ower's choice, which right shall not be exercised unreasonably. Lender may require BOlTower to pay, in cOlmection with this Loan, either: (a) a one-time charge for flood zone detelluination, certification and h'acking services; or (b) a one-time charge for flood zone detemunation and certification sei'vices and subsequent charges each time remappings or similar changes occur which 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 deternunation resulting from an objection by Borrower. If Bon'ower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and BOlTower'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 BOlTower, BOlTower'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 aclmowledges that the cost of the insurance coverage so WYOMING·OPEN·END SECURITY INSTRUMENT HCWF#49v7 (3/10/05) 111111111 ~IIIIII mllllllilllll~ 1IIImIIIU~IIIIIII~IIIIIIIIIOOII~~llm IIII~I '(page 3 of 1 3 pages) Documents Processed 06-02-2006. 15:48:22 n':}¡O"íì O......1C41 ow' ,_, J) 4-... fi....lI rt ,J ('ooq"t" 0 '" \ U.. obtained might significantly exceed the cost of insurance that BOlTower could have obtained. Any amounts disbursed by Lende~ under this Section 4 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the rate applicable to the Debt Instnlm\¢J1t from time to time, from the date of disbursement and shall be payable, with such interest, upon notice from Lender to BOlTower 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 and BOlTower further agrees to generally assign rights to insurance proceeds to the holder of the Debt Instrument up to the amount of the outstanding loan balance. Upon Lender's request, Borrower shall promptly give to Lender copies of all policies, renewal certificates, receipts of paid premiuh1s and renewal notices. I f Borrower obtains any form 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 and BOlTower further agrees to generally assign rights to insurance proceeds to the holder of the Debt Instrument up to the amount of the outstanding loan balance. In the event of loss and subject to the rights of any lienholder with rights to insurance proceeds that are superior to Lender's rights, the following provisions in this Section 4 shall apply. Bonower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by BOlTower. Unless 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 the restoration or repair is economically feasible and Lender's security is not lessened, During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided 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 Bon'ower any interest or eamings on such proceeds, Fees for public adjusters, or other third parties, retained by BOlTower shall not be paid out of the insurance proceeds and shall be the sole obligation of BOITower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2, If BOlTower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters, If Borrower does not respond within 30 days to a notice from Lender that the 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 21 or otherwise, Borrower hereby assigns to Lender (a) BOlTower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Debt Instrument or this Security Instrument, and (b) any other of BOlTower's rights (other than the right to any refund of uneamed premiums paid by BOITower) under all insurallce policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Debt Insh'ument or this Security Instrument, whether or not then due, subject to the rights of any lienholder with rights to insurance proceeds that are superior to Lender's rights. 5. Occupancy. BOll'ower shall occupy, establish, and use the Property as Bonower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as BOlTower's principal residence for at least one year after the date of occupancy, unless (a) Bonower has disclosed to Lender at application for the Loan that the Property shall not be Bonower's. principal residence; (b) Lender otherwise agrees in writing, which consent shall not be umeasonably withheld; or (c) unless extenuating circumstances exist which are beyond Bon'ower's control. 6. Preservation, Maintenance and Protection of the Property; Inspections. BOl1'ower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property, Whether or not BOlTower is residing in the Property, BOITower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 4 that repair or restoration is not economically feasible, Bonower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or WYOMING-OPEN-END SECURITY INSTRUMENT HCWF#49v7 (3/10/05) 11m 111111111111 IIIW WIIIII~ l~mllllllll~IIIIIIIW U I~~ mlllllll~ 11~111111 (page 4 of 13 pages) Documents Processed 06-02-2006, 15:48:22 O:91.9~J3î C00011 the taking of, the Propeliy, BOlTower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, BOlTower is not relieved of BOlTówer's obligation for the 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 the Property, Lender shall give BOlTower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 7. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of BOlTower or with BOlTower's knowledge or consent gave materially false, misleading, or inaccurate information or statements ,to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not lirrùted to, (a) representations concerning BOlTower's occupancy of the Property as BOlTower's principal residence and (b) liens on the Property that have priority over this Security Instrument. 8. 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 this Security Instrument or any obligation that is secured by a lien that is superior to this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condenmation or forfeiture, for enforcement of any lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Insh'ument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Inshllment; (b) appearing in court; and ( c) paying reasonable attomeys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the 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 8, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs nO liability for not taking any or all actions authorized under this Section 8. Any amounts disbursed by Lender under this Section 8 shall become additional debt of BOlTower secured by this Security Instrument. These amounts shall bear interest at the rate applicable to the Debt Instrument from time to time, from the date of disbursement and shall be payable, with such interest, upon notice from Lender to BOlTower requesting payment. If this Security Insh'ument is on a leasehold, BOlTower shall comply with all the provisions of the lease. If BOll'ower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 9. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender, subject to the rights of any lienholder with rights to Miscellaneous Proceeds that are superior to Lender's rights. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay BOll'ower any interest or earnings on such Miscellaneous Proceeds. Subject to the rights of any lienholder with rights to Miscellaneous Proceeds that are superior toe Lender's rights, if the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the éxcess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. WYOIYlING-OPEN-END ~ECURITY INSTRUMENT HCWF#49v7 (3/J 0/05) 111111111111111I mll~~IIIIII~llllml~II~~~I~m elllll !~IIIII~II~III~ (page 5 of /3 pages) Documents Processed 06-02-2006, 15:48:22 O\'C~1¡ Û~"':IÜ1 ~ ·,)}..ðm ",,1/ ¡f .J C' t\ 0 ,-~" 2 .i.,J \j ,1 Subject to the rights of any lienholder with rights to Miscellaneous Proceeds that are superior to Lender's rights, in the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property inID1ediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless BOll'ower and Lender otherwise agree in writing, the sums secured by this Security Insh-ument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, desh-uction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, desh-uction, or loss in value. Subject to the rights of any lienholder with rights to Miscellaneous Proceeds that are superior to Lender's rights, any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured inID1ediately before the pa11ial taking, destruction, or loss in value, unless BOlTower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due, subject to the rights of any lienholder with rights to Miscellaneous Proceeds that are superior to Lender's rights. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Insh"ument, whether or not then due, subject to the rights of any lienholder with rights to Miscellaneous Proceeds that are superior to Lender's rights. "Opposing Party" means the third party that owes BOll'ower Miscellaneous Proceeds or the party against whom BOll'ower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criÙ'ùnal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Insh'ument. BOll'ower can cure such a default by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Propel1y or other material impairment of Lender's interest in the Property or rights under this Security Instmment. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or l'epair of the Property shall be applied in the order provided for in Section 2, subject to the rights of any lienholder with rights to Miscellaneous Proceeds that are superior to Lender's rights. 10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Bonower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of BOlTower. Lender shall not be required to commence proceedings against any Successor in Interest of Bonower 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 BOlTower or any Successors in Interest of BOlTower. Any forbearance by Lender in exercising any right or remedy including, without lirnitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Bon ower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy, 11. Joint and Several Liability; Co-mortgagors; Successors and Assigns Bound. Bonower covenants and agrees that BOlTower's obligations and liability shall be joint and several. However, any BOlTower who signs this Security Instrument but does not execute the Debt Instrument (a "co-mortgagor"): (a) is signing this Security Instrument only to mortgage, grant and convey the co-mortgagor's interest in the Property under the terms of this Security lnstmment; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other BOlì'ower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Insh'ument or the Debt lnsh'ument without the co-mortgagor's consent. WYOMING-OPEN-ENDSECURITY INSTRUMENT HCW F#49v7 (3/1 0105) I~I mlllllllllllllllll!IIIII~IIIIIIIIIIUIIII~II~m UIIIII~I~III~I;mm 11m (page 6 of /3 pages) Documenls Processed 06-02-2006, 15:48:22 if) o.l·oio~"'{ (" 1 ~}t,.~l . '. ~l .'t' .:J r: li n .":,.,,,: '.' "j,) i) .1 3 Subject to the provisions of Section 16, any Successor in Interest of BOlTower who assumes BOll'ower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of BOlTower's rights and benefits under this Security Insh'ument. BOll'ower shall not be released from Borrower's obligations and liability under this Security Insh'ument unless Lender agrees to such release in writing, The covenants and agreements of this Security Instrument shall bind (except as provided in Section 17) and benefit the successors and assigns of Lender. 12. Loan Charges. Lender may charge Bon-ower fees for services performed in connection with BOlTower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Insh'Ument, including, but not limited to, attorneys' fees, property inspection and valuation fees, In regard to any other fees, the absence of express authority in this Security Insh'ument to charge a specific fee to BOlTower shall not be consh'Ued as a prohibition on the charging of such fee, Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection 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 permitted limit; and (b) any sums already' collected from BOlTower which exceeded perrnitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Debt Instrument or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be h'eated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Debt Instrument). Bon-ower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 13. Notices. Unless otherwise described in the Debt Instrument or in another agreement between Borrower and Lender, the following provisions regarding notices shall apply. All notices given by BOlTower or Lender in connection with this Security Instrument must be in writing. Any notice to BOll'ower in COill1ection with this 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 BOITowers 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. Bon-ower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then BOlTower shall only report a change of address through that specified procedure, There may be only one designated notice address for BOlTower under the Loan 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 another address by notice to BOll'ower. Any notice in COlmection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the cOlTesponding requirement under this Security Instrumei1t. 14. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and, to the extent not preempted by federal law, the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Insh'Ument are subject to any requirements and limitations of Applicable Law, Applicable Law might explicitly or implicitly allow the parties to agree by conh'act or it might be silent, but such silence shall not be construed as a prohibition against agreement by conh'act. In the event that any provision or clause of this Security Insh'llment or the Debt Instrument conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Debt Instrument which can be given effect withoLlt the conflicting provision. As used in this Security Insh'ument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; (c) the word "may" gives sole discretion without any obligation to take any action; and (d) headings that appear at the beginning of the sections of this Security Insh'Ument are inserted for the convenience of the reader only, shall not be deemed to be a part of this Security Instrument, and shallllot limit, extend, or delineate the scope or provisions of this Security Insh'llment. 15. Borrower's Copy. Borrower shall be given one copy of the Debt Instrument and of this Security Instrument. WYOMING-OPEN-END SECURITY INSTRUMENT HC'WF#49v7 (3/1 0/05) 1111 mlllllllllllllll~lll~m !llmll~llll\lllllllllll~ III~ ~IIIII~IIIIIIIIM (page 7 of /3 pages) Documents Processed 06-02-2006, 15:48:22 ,n, r¡,,'<¡j 'Q~'·C'1 tL~ ,~Jj,,},,...JI .~. ,j eooúl.4 16. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 16, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited tO,those beneficial interests transfetTed in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Bon'ower at a future date to a purchaser. , If all or any part of the Property or any Interest in the Property is sold or transfen:-ed (or if BOlTower is not a natural person and a beneficial interest in BOlTower is sold or transfened) without Lender's prior written consent, Lender may require immediate payment in full- of all sums secured by this Security Instrument. However, this option shal1 not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bonower 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 13 within which Bon'ower mUst pay al1 sums secured by this Security Instrument. If BotTower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pem1itted by this Security Instrument without further notice or demand on Bonower. 17, Sale of Debt Instrument; Change of Loan ServiceI'; Notice of Grievance. The Debt Instrument or a partial interest in the Debt II'.strument (together with this Security Instrument) can be sold one or more times without prior notice to BotTower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Debt Instrument and this Security Instrument and performs other mortgage loan servicing obligations under the Debt Instrument, this Security Instrument, and Applicable Law, There also might be one or more changes of the Loan Servicer unrelated to a sale of the Debt Instrument. If there is a change of the Loan Servicer, Bonower will be given written notice of the change as required by Applicable Law. If the Debt Instrument is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Debt Instrument, the mortgage loan servicing obligations to Bonower will remain with the Loan ServiceI' or be transfened to a successor Loan ServiceI' and are not assumed by the purchaser of the Debt Instrument unless otherwise provided by the purchaser of the Debt Instrument. Neither Borrower nor Lender may conID1ence, 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 this Security Insh-ument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such BOlTower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 13) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take conective action. If Applicable Law provides a time period that must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Bon'ower pursuant to Section 21 and the notice of acceleration given to Bon-ower pursuant to Section 16 shall be deemed to satisfy the notice and opportunity to take cOlTective action provisions of this Section 17. If Bon'ower and Lender have entered into an agreement to arbitrate disputes, the provisions of any such arbitration agreement shal1 supersede any provision in this Section 17 that would conflict with the arbitration agreement. 18. Hazardous Substances. As used in this Section 18: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by EnvirOlID1ental Law and the following substances: gasoline, kerosene, other flanID1able or toxic peh'oleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, mold, and radioactive materials; (b) "EnvirOlID1ental 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 "EnvirOlID1ental Condition" means a condition that can cause, contribute to, or otherwise h'igger an Environmental Cleanup, BOlTower 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, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition 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 recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products), WYOMING-OPEN-END SECURITY INSTRUMENT HCWF#49v7 (31\0105) 111111111~11111111111~lllllllllmllm ~III~IIIIIIIIIII~ ~lllllillll~III~1 (page 8 of /3 pages) DoclIments Processed 06-02-2006. 15:48:22 --.-- !î (I \-)'~ 5 ..J d "" ,_I., O· o.'~ ¡¡J}"')O'~ -t.--:} .\",1 t ..7 ~ BOITower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Bon-ower has actual knowledge, (b) any Environmental Condition, including but not limited 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 the value of the Property. If Bon-ower learns, or is notified by any govellill1ental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, BOlTower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. 19. Assignment of Leases and Rents. BOITower irrevocably grants, conveys, sells and assigns to Lender as additional security: (a) all of BOll'ower's right, title and interest in and to any and all existing or future leases, subleases, and any otber written or verbal agreements for tbe use and occupancy of any portion of the Property, including any extensions, renewals, modifications or substitutions of such agreements (all referred to as "Leases"), and (b) all of the rents, security deposits, issues and profits arising out of or eamed in c01illection with the Property (all refened to as "Rents"). Borrower will promptly provide Lender with true and correct copies of all existing and future Leases. Bonower may collect, receive, enjoy and use tbe Rents so long as Bon-ower is not in default under the terms of this Security InsOllment. Bonower agrees that tbis assignment is immediately effective between the parties to this Security Instrument. Bon-ower agrees that this assigru11ent is effective as to tbird parties when Lender takes affirmative action prescribed by.law, and that this assignment will remain in effect during any redemption period until the Loan is satisfied. Bonower agrees that Lender may take actual possession of the Property without the necessity of commencing legal action and that actual possession is deemed to occur when Lender, or its agent, notifies Borrower of an event of default and dema'nds that any tenant pay all future Rents directly to Lender. On receiving notice of an event of default, Bon-ower will endorse and deliver to Lender any payment of Rents in BOlTower's possession and will receive any Rents in h'llst for Lender and will not c01mIÚngle the Rents with any other funds. Unless Applicable Law provides otherwise, all Rents collected by Lender or Lender's agent shall be applied first to the costs of taking cono'ol of and managing the Property and collecting the Rents, including, but not limited to, attomey's fees, receiver's fees, premiums on receiver's bonds, repair and maintenance, costs, insurance premiums, taxes, assessments and other charges on the Property, and then to tbe sums secured by this Security Instrument in the order provided for in Section 2, If tbe Rents of the Property are not sufficient to cover the costs of taking cono'ol of and managing tbe Property and of collecting tbe Rents any amounts disbursed by Lender for sucb purposes sball become additional debt of Borrower secured by tbis Security Inso'ument. These amounts shall bear interest at the rate applicable to the Debt Instrument from time to time, from the date of disbursement and shall be payable, witb such interest, upon notice from Lender to BOll'ower requesting payment. BOITower waITants that no default exists under the Leases or any applicable landlord/tenant law. Bon-ower agrees to maintain and require any tenant to comply with the terms of the Leases and applicable law. 20. Condominiums; Planned Unit Developments. If the Property is a unit in a condominium project ("Condominium Project") or is part of a planned unit development ("PUD"), BOlTower agrees to the following: A. Obligations. BOll'ower shall perf 01111 all of BOITower's obligations under the Constituent Documents. The "Constituent Documents" are the: (i) Declaration or any other document which creates the Condominium . Project or PUD and any condominium association, homeowners association or equivalent entity ("Community Association"); (ii) any by-laws or other rules or regulations of the Community Association; and (iii) other equivalent documents. BOlTower shall promptly pay, when due, all Community Association Dues, Fees, and Assessments, B. Property, For units in a Condominium Project, the Property includes the unit in, together with an undivided iÍ1terest in the conill10n elements of, the Condominium Project, and Bonower's interest in the Community Association and the uses, proceeds and benefits of Bon-ower's interest. For PUDs, the Property includes, but is not limited to, a parcel ofland improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in the Constituent Documents, and Bon-ower's interest in the Community Association and the uses, benefits and proceeds of Borrower's interest. ' C. Property Insurance. So long as the Community Association maintains, with a generally accepted insurance calTier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which WYOMING-OI'EN-END SECURITY INSTRUMENT HCWF#49v7 (3/10/05) I~I mlllllllll~ 1111111illlll~ 1~lml~11 ~~IIIIIIIIIIUlllmlnlnim IIIIU (page 9 of / 3 pages) Documents Processed 06-02-2006, 15:48:22 f),C\'"'1 0.791. \¡,.J..~.ð., ..)I r: () 0 ..." 6 :' ¡ -,' ,.' \.1 1 ì.." J provides insurance coverage in the amounts (including deductible levels), for the þeriods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then BOITower's obligation under Section 4 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Community Association policy, BOl1'ower shall give Lender prompt notice 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, whether to the unit or to conm10n elements of the Condominium Project or to common areas and facilities of the PUD, any proceeds payable to BOITower are hereby assigned and shall be paid to Lender for application to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to BOITower, subject to the rights of any lienholder with rights to insurance proceeds that are superior to Lender's rights. D. Public Liability Insurance. BOl1'ower shall take such actions as may be reasonable to insure that the Community Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. E, Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements of the Condominium Project or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, subject to the rights of any lienholder with rights to such proceeds that are superior to Lender's rights, Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 9. F. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project or PUD, except for abandOlm1ent or tennination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condenmation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Community Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Community Association unacceptable to Lender. G, Remedies, If BOITower does not pay Community Association Dues, Fees, and Assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph G shall become additional debt of Borrower secured by this Security Instrument. Unless BOITower and Lender agree to other terms of payment, these amounts shall bear interest at the rate applicable to the Debt Instrument from time to time, from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. NON-UNIFORM COVENANTS. BOITower and Lender further covenant and agree as follows: 21. Acceleration; Remedies. Borrower will be in default if (1) any payment required by the Debt Instrument or this Security Instrument is not made when it is due; (2) Lender discovers that Borrower or any co-applicant has committed fraud or made a material misrepresentation in connection with the Loan; (3) Borrower takes any action or fails to take any action that adversely affects Lender's rights under this Security Instrument, any of Lender's other security for the Debt Instrument, or any right Lender has in the Property; or (4) Borrower is an executive officer of Lender and federal law permits or requires immediate payment of the Loan. If a default occurs (other than under Section 16 or under subsection (4) of this Section 21, unless Applicable Law provides otherwise), Lender will give Borrower notice specifying: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand WYOMING-OPEN-END SECURITY INSTRUMENT HCWF#49v7 (3/10/05) IIII mill ~11111111111!lImlllllml~II~llmlllllllll~ ~III~¡UII~III~ (page 10 of 13 pages) Documents Processed 06-02-2006. \5:48:22 ---- C()Or.n 7 _ v \,.. .-> QQ"1i Qr;i~~)1. . ~7 .A.~r;....)1 , "'-..,:; 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 21, 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 13. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 22. Release. Upon payment of all sums secured by this Security Insh"ument and termination of line of credit created by the Debt Inshl.lment, Lender shall release this Security Insh'ument. BOlTower shall pay any recordation costs. Lender may charge BOlTower a fee for releasing this Security Insh'Ument, but only if the fee is paid to a third party for services rendered and the charging of the fee is pel111itted under Applicable Law. 23. Waivers. BOll'ower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, BOl1'ower accepts and agrees to the terms and covenants contained in this Security Insh'Ument and in any Rider executed by BOlTower and recorded with it. f~ A-ry- TIMOt Y A KRUE~R ANN~~~ . ~ (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - BOlTower (Seal) - BOlTower (Seal) - Borrower (Seal) - Borrower WYOMING·OPEN·END SECURITY INSTRUMENT HCWF#49v7 (3/1 0/05) IIII mllllllll~mlll ~lllllm mmll~II~~IIIIIIIIII~11111 ~llllillm m 11m (page / J of /3 pages) Documenls Processed 06-02-2006, 15:48:22 -----.----- '--,. ,i \'i..,I "~ '(,'ðr<""'i::'l '·".r 'A..j <It..", '1\-<4' t' ..:J. r :'ì If'\ -; 8 ',_. . 1ft ". \~ . ..) .! (Seal) - Borrower ------------------. ------_._~- ------ ,,-------- /~ /' ~' 'Þro:~ .....~. \ìICr...~ 'ÞO-.tiIit~ "', "h,,'''- ',," " \ i , -~ ---------- c ---..--... , """-----........,~---..:--..~~ -...........~...-.. ""----....ff~......... ..."'~'~-".,.~~._.......,.,~,.......,~,.......,...,......... "......." ..,..... ...... .... ........ ___--..J ~,.~oI(...wø....-.~· ------.- . ~ftPI'l~fHII" ".....-"'.. ~f/I""'~,.¡# /... /,.r WYOMING-OPEN-END SECURITY INSTRUMENT HCWF#49v7 (3/1 0/05) 1~111 mlllllllllllllllllilllllllllllll~IIIIIIIIIII~1111111111 ~~III!I~IIIIII~I (page J 2 aj/3 pages) DoclIlllents Processed 06-02-2006. 15:48:22 09197g:l , < Stateof~*~~l ) ..& /t-~ e ) ss County ofLIÞJCOLN ¡ ) The foregoing instrument was acknowledged before me byJ;itt¿j(1A.I(r~f!..Yá.ltd ~11.k.l:jtl.(q~r this ~.u- day of J-<. n L , 20t2!¡:, , J Witness'my hand and official seal. : '\ L'1 I ); J~ 9 '\../ {t :_,~. . ~rc-/ otary P ic My COlTU11ission pires: . WYOMING-OPEN-END SECURITY INSTRUMENT, HLWF#49v7 (3/10/05) I~III~IIIIIIIII~ 1IIIIIIimllllllllmlllllll~llllllml!IIIIII~III~II~111111111 (page 13 oj/3 pages) Documents Processed 06-02~2006. 15:48:22 ---...~_._---.- _.. ----~' --.,