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HomeMy WebLinkAbout875995 Return To: The Jackson State Bank 112 Center St., P0 Box Jackson WY 83001 Lea 5. Chapman [ B 00 K-Z~,-7.,3_.PR PAGE [E,pace Above This Line For Recording Data] , MORTGAGE DEFINITIONS Words used in multiple sections cf: this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means thi:~ document, which is dated September 11 2001 , together with all Riders to this document. (B) "Borrower" isAdam Duncan [-!arris, A Single Man Borrdwer is the mortgagor under thi s Security Instrument. (C) "Lender" is The Jackson !it'ate Bank Lender is a State Bank : orglmized and existing under the laws of the State of 'Wyomq ng. HARRIS. A PURCH 8608231 0 WYOMING-Single Family-Fannie Mae/Flt;c :lie M~¢ UNIFORM INSTRUMENT Form 3051 1/Ol (~®-6{WY) iooo5) 085 Lender's address is 112 centeii::'St., P0 Box 1788, Jackson. WY 83001 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory nf?:e signed by Borrower and dated September Ii. 2001 The Note states that Borrower owes:i~:ender N1 nel;y One Thousand Five Hundred Sixty and FIO/100 ·: Dollars (u.s. $ 91,560.00 ) t:l~s interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in ful! not later than October 1, 2031 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenciPd by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums duC under this Security Instrument, plus interest. (G) "Riders" means all Riders to tiiis Security Instrument that are executed by Borrower. The fohowing Riders are to be executed by Borro~qr [check box as applicable]: ~ Adjustable Rate Rider [Iq Ccmdominium Rider [--] Second Home Rider [-~ Balloon Rider ~ Plgnned Unit Development Rider F--] 1-4 Family Rider [---] VA Rider F--] BiWeekly Payment Rider [---] Other(s) [specify] (H) ~"Applicable. Law" means alll controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial-opinions. . (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessment.'; and other charges that are imposed on Bor¢'0wer or the Property by a condominium association, homeowners .~: association or similar organization. (J) "Electronic Funds Transfer" imeans any transfer of funds, other than a transaction originated by check, draft, or similar paper insfmment, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic :::ape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term i{dudes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers ir]4tiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" meahs those it]¢:ms that are described in Section 3. (L) "Miscellaneous Proceeds" me~ns any compensation, settlement, award of damages, or proceeds paid by any third party (other than insu: ance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance~ in lieu cf condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of' the Prope'.~;ty. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means thc regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. . (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.siC. Section .2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successo'~:ilegislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA'' refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage ldiin" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. ~ 8608231 0 HARRIS, A PURCH Page2of15 Form 3051 1/01 (~-6(WY) (o0o5) (P) "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 Note 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 renewals, extensions and modifications of the Note; and (ii~ tile performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors an~ !~ssigns, with power of sale, the following described property located in the County of L1 ncol n : [Type of Recording Jurisd'~¢tion] [Name of Recording Jurisdiction] Lot 27 of the Forest Meaiiows Subdivision, Lincoln County, Wyoming as described on the officia'i ~Plat thereof, LESS AND EXCEPT any land contained in instrument re,corded June 15 1992 in Book 311PR on page 421 of the records of the LiJqOln County Clerk, Parcel ID Number: which currently has the address of 533 Forest Circle [Street] Al pi ne [City] , Wyoming 83120, [Zip Code] ("Property Address"): TOGETHER WITH all ~the ~improvements now or hereafter erected on the property, and all easements, appurtenances, and fixt'ures 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 Instrument as the "Property." BORROWER COVENANTS ;hat 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.. Borrower w:~.rrants and will defend generally the title to the Property against all claims and demands, subject m any er~cumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non,uniform covenants with limited variations b:~ ~-arisdiction to constitute a uniform security instrument covering real property. · UNIFORM COVENANTS. B,:.m'ower and Lender covenant and agree as 'follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and 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 this Security Instrument shall be made in U.S. currency. However, if any check or o~her instrument received by Lender as payment under the Note or this HARRIS, A PURCH 8608231 ,nid~,~:~.~- 0 ~-6(WY) (ooo5) P*a~ 3 of ~5 Form 3051 1/01 Security Instrument is returned to I~,i:nder unpaid, Lender may require that' any or all subsequent payments due under the Note and this Secu.r~.~y Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) ~noney order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such~.~heck is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or ei,,tity; or (d) Electronic Funds Transfer. Payments are deemed received .by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or, partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any righ[s 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 the time such payments are accepted. If each Periodic Paymem is applied as of its scheduled due date, then Lender need 9ot pay interest on unapplied funds. Lender,(.:nay hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does:',i, aot do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrov(;er. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note ii.nraediately prior to foreclosure. No offset or claim which Borrower might have now or in the future a~ainst Lender shall relieve Borrower from making payments due under the Note and this Security Instrumest or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments!: or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by ,.~pender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal Cue under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic ~'iityment in the order in which it became due. Any remaining amounts shall be applied first to late chargeg'[! second to any other amounts due under this Security Instrument, and then to reduce the principal balance'/,)f the Note. If Lender receives a payment', from Borrower for a delinquent. Periodic Payment which includes a sufficient amount to pay any late c3:i:arge due, the payment may be applied to the delinquent payment and the late charge. If more than one Pe~iodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment o~/the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any ~::;xcess exists after the payment is applied to the full payment of one or more Periodic Payments, such exce'.~,s may be applied to any late charges due. Voluntary prepayments shall be applied first to any pre. payment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpo~:e the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is p;fid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and c,ther items which can attain priority over this Security Instrument as a lien or encumbrance On the PropertY; (b) leasehold payments or ground rents on the 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 Sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lende. r may require that Community Association Dues, Fees, and Asse,.~sments, if any, be escrowed by BorrOwer, and such dues, fees and assessments shall be an Escrow Ite~:~. Borrower shall 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 iFunds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds i!br any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such wa:Ncr, Borrower shall pay directly, when and where payable, the amounts HARRIS A PURCH :,~, 8608231 0 ' Initials: ~ (~-6(WY) 1ooo5) Page 4 of 'tS Form 3051 1/01 088 due tbr any Escrow Items for whiclt ?ayment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts ev~d?.ncing such payment within such time period as Lender may require. Borrower's obligation to make sucT: .payments and to provide receipts 'shall for all purposes be deemed to be a covenant and agreement contai'~:~Cd in this Security Insirument, 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 d'a~.i for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrowe~:: i;hall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the Wai'ver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, u?:.n such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then require;,t, iinder this Section 3. Lender may, at any time, colk)ci:I and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum 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 expenditur!'¢.:of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held i~ 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 the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or w'.ri tying 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 earnings on the FulidS. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender :~hall. give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. ' If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in acc~:,rdance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender sha'll notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA,~ Lender shall notify Borrower as required by RESI?A, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance witl~: i:(ESPA, but in no more than 12 monthly payments. Upon payment in full of all s~;[r~:is secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower ,,shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which ca~; attain priority over this Security Instrument, leasehold payments or ground rents on the Prope/ty, if an>', md Community Association Dues, Fees, and Assessments, it' any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discT:.atge any lien which has priority over this Security Instrument 'unless Borrower: (a) agrees in writing to ti:ti ~payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Bor~:o~;ver is perfornfing 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 !lac holder of the lien an agreement satisfadtory to Lender subordinating the lien to this Security Instrument. I~.' Lender determines that any pan of the Property is subject to a lien which can attain priority over this ~;ecurity Instrument, Lender may give Borrower a notice identifying the HARRIS, A PURCH 86082~ 0 lnitial$:~ (~-6(WY) 1oo051 Pogo s of ~s Form 3051 1/01 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 set forth above hi this Section 4. Lender may require Borrowe~ 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. Borrd'wer shall keep the improvements now existing or hereafter erected on the Property insured against loss b~ 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~,~iin 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 pr0yiding the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in conw!ction with this Loan, either: (a) a one-time charge for flood zone determination, certification and trali~king services; or (b) a one-time charge for flood zone deterni'ination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such deter~nination or certification. Borrower shall also be responsible for the payment of any fees imposed by !.}he Federal Emergency Management Agency in connection with the review of any flood zone determina!~ion resulting from an objection by Borrower. If Borrower fails to maintain.!!any of t_h,e 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 cover:igc. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's ~i:!uity in the Property, or the contents of the Property, against any risk, hazard or liability and might prov!!i!e greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the ::insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could havt': obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrowei( secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of di:sbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies requirei:!i 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 t.!'~>ss 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 obtair~s any form of insurance coyerage, 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. Unless Lender and Borrower otherwise agree in writing, any insurance:'i3roceeds, ,whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair ¢~f the Property, if the restoration or repair is economically feasible and Lender's security is not !essened. 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 Lemier'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 i..~ completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on suct~i~insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such pro!'~eeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out ofi~ihe insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair isnot ecofic~mically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the su~i. xs secured by this Security Instrument, whether or not then due, with HARRIS, A PURCH 8608231 0 (~-6(WY) 1ooo5) P~ge ~ of ~5 Form 3051 1/01 O 7 . JB'5 0 9 0 the excess, if any, paid to Borrowe!': Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons' the Prirliperty Lender may file, negotiate and settle any available insurance claim and related matters. If BorrcWer does not respond within 30 days to a notice from Lender that the insurance carrier has offered to setl!e 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 otherwise, Borrowi~r hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's right~ (other than the right to any refund of unearned premiums paid by Borrower) under all insurance poli,jes 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 N~:~te or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shi~ll.: occupy, establish, and use the Property as Borrower's principal residence within 60 days after the :i~xecution of this Security Instrument and shall continue to occdpy the Property as Borrower's principal,rei~'idence for at least one year after the date of occupancy, unless Lender otherwise ag[ees in writing, whic!~'~; consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyo~i~d Borrower's control. 7. Preservation, MaintenanC.~: and Protection of the Property; Inspections. Borrower shall not destroy, damage or i~npair the P[operty, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrowe~i is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasib!e, Borrower shall promptly repair the Property if 4amaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in iconnection With damage to, or the taking of, the Property, Borrower shall be responsible for repairing ¢i:' restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse pro~::eeds 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, Bbrrower is not relieved of Borrower's obligation for the completion of such repair or restoration. ' Lender or its agent may ma~;!i~, reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may ~nspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Applic.~,.tion.. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materiahY false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender w:ith material information) in connection with the Loan. Material representations include, but are nde: limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal re,gidence. 9. Protection of Lender's Interest in the Property and Rights 'Under this Security Instrument. If (a) Borrower fails to perform the cox;enants and agreements contained in 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 p*roceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may.lattain priority over this Security Insirument or to entbrce laws or regtdations), or (c) Borrower has a?;andoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to prot,ct Lender's interest in the Property and rights under this Security Instrument, including protecting anti/or assessing the value of the Property, and securing and/or repairing the Property. Lendei"s actions canlinclude, but are not limited to: (a) paying any sums secured by a lien which has priority over this Secu:ity Instrument; (b) appearing in court; and (c) paying reasonable HARRIS, A PURCH " 8608231 0 ' Initia~s:l~_ (~- 6{WY) 10005) Page 7 of 15 Form 3051 1/01 attorneys' fees to protect its interesttin the Property and/or rights under this Security Instrument, including its secured position in a bankruptc:b proceeding. Securing the Property includes, but is not limited to, entering the Property to make repai:s, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or o~i~er code violations or dangerous conditions, and have utilities turned on or off. Although Lender may tak~: 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 actions authorized under this Section:; 9. Any mounts disbursed by L~';nder under this Section 9 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,i: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 tide shall not merge unless Lender agrees to the merger in writi::~g. 10. Mortgage Insurance. If Lmder required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums re,?!uired to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage rei:i}uired 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 Mortga~ie 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 Borrowe~ 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 ti-!~ 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 Insut~:ance 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 tow~.:~rd 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 foi: Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in ~iffect, or to provide a non-refundable loss reserve, *until Lender's requirement for Mortgage InSuranc(~, ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's oblig~i~tion to pay interest at the rate provided in the Note. Mortgage Insurance 'reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not ~epay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate thtSr total risk on all such insurance in force from time to time, and may enter into agreements with,other pa~'~ies that share or modify their risk, or reduce losses. These agreements are on terms and conditio'ns that arc satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreement~ may require the mortgage insurer to make payments using any source of funds that the mortgage insurer ;~)~my have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreement. S, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of '[my of the foregoing, may receive (dire. ctly or indirectly) mounts that derive from (or might be characteri:ied as) a portion of Borrower's payments for Mortgage Insurance, in exc~hange for sharing or modifyinli~ the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lendri'i' takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the ati:angement is often termed "captive reinsurance." Further: (a) Any such agreements ~11 not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any othe:.:: terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage lr~.surance, and they will not entitle Borrower to any refund. HARRIS, A PURCH :~ 8608231 0 (~-6(WY) (ooo5) , Paoe S of ~5 Form 3051 1/01 (b) Any such agreement~ w[il not affect the rights Borrower has ~ if any - with respect to the Mortgage Insurance under the F~t~meowners Protection Act of 1998 or any other law. These rights may include the right to receiv'e 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 premiums 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 Lem~'~er. If the Property is damaged, su:ch Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or :['~pair is economically feasible and Lender's security is not lessened. · During such repair and restoration 2!!riod, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportuni~? to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that :such inspection sball be undertaken promptly. Lender may pay tbr the repairs and restoration in a singl~.!i~disbursement or in a series of progress payments as the work is completed. Unless an agreement is ~xaade in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shifll not be required to pay Borrower any interest or earnings oh such Miscellaneous Proceeds.. If the resto~'ation or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Prodeeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the e~icess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided, for in Section 2. In the event of a totai 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 immediately 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 valui:.~, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrumc. nt shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fractic.~i:x: (a) the total amount of the sums secured immediately before the partial taking, destruction, or lo:-~s in value divided by (b) the fair market value of the Property immediately before the partial takinii, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial takin~I, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value 'is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in: value, unless Borrower and Lender otherwise ag:'~e in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument :~Vhether or not the sums are then due. 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 Lende.~within 30 days after the date the notice is given, Lender is authorized to collect m~d apply the Miscellamm~us Proceeds either to restoration or repair of the Property or to the sums secured by this Secu[ity Instrcment, whether or not then due. "Opposing Party" means the third 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 ii any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in: [orfeiture of the Property or other material impairment of Lender's interest in the Property or rights un,ier this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate ~:.s provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Len:ler's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in t:'e Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are fiereby assigned and shall be pai~ to Lender. All Miscellaneous Proceeds tLat are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. HARRIS, A PURCH 8608231 0 Initial$:~ (~-6(WY) Iooo~} Page 9 of ~5 Form 3051 1/01 12. Borrower Not Releasedi! Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortiz~ttion of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Ir~erest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Bdrrower. Lender shall not be required to commence proceedings against any Successor in IntereSt of Bor~(iwer or to refuse to extend time for payment or otherwise modify amortization of the sums secured b31;! 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, w~thout hm!tat,?n, Lender s acceptance of payments from third persons, entities or Successors in Interest of Borrower !'~!r in amounts less than the amount then due, shall not be a waiver of or preclu'de the exercise of any right o'i! remedy. 13. Joint and Several Liabil~ity; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligati,::!~ns and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument ?~,ut does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lei.:ider and any other Borrower can agree to extend, modify, forbear or make any accommodations with re~,ard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions oi~i~ Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Sgcurity Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benef((s under this Security Instrument. Borrower shall not be released from Borrower's obligations and liabilit~ under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreSments of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender ~9ay charge Borrower ,fees for services performed in connection with Borrower's default for the purpo~'i-! of protecting Lender s interest in the Property and rights under this Security Instrument, including, bui:i not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the abs:i,mce of express authority in this Security Instrument to charge a specific fee to Borrower shall not be const~ited as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited bl~!' this Security Instrument or by Applicable .Law. If the Loan is subject to a law~!.which sets maximmn loan charges, and that law is finally interpreted so that the interest or other loan char~ies collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any su~ loan charge shall be reduced by the amount necessaly to reduce the charge to the permitted limit; and ih) any sums already collected from Borrower which exceeded permitted limits will be refunded tO Borro~iir.~: Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a p~'?tial prepayment without any prepayment charge (whether or not a prepayment charge is provided foi'~under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will cc?tstitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All noQces giv{:ia by Borrower or Lender in connection with this Security Instrument must be in writing. Any '.notice to ~:z, orrower in connection with this Security Instrument shall be deemed to have been given to Borrower whe~:[ mailed by first class mail or when actually delivered to Borrower's notice address if sent by other meaSs. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly ;i'~equires otherwise. The notice address shall be the Property Address unless Borrower has designated a t.~bstitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change5 of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower :ihall only report a change of address tlirough that specified procedure. There may be only one designate.~i notice address under this Security Instrument at any one time. Any notice to Lender shall be given b'y. delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has.designated another address by notice to Borrower. Any notice in connection with this Security Inst(?~ment 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 requirc~nent will satisfy the corresponding requirement under this Security Instrument. ., HARRIS, A PURCH '~ 8608231 ~,~,_^h~l 0 (~-6(WY) (ooos) Page ~o ef ~5 Form 3051 1/01 0 2599,:i; ,* 094 16. Governing Law; Sever,.~i. bility; Rules of Construction. Thi~ Security Instrument shall be governed by federal law and the 1~;.~, of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law n;i:ight explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shi'i'll not be construed as a prohibition against agreement by contract. In the event that any provision or clt. i~se of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect ~.ither provisions of this Security Instrument or the Note which can be given effect without the conflicting 't!~,rovision. As used in this Security Insti"ument: (a) words of the masculine gender shall mean and include corresponding neuter words or wo~"i:ls of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; ~i~d (c)the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. BorroWiSr shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the PropertY'or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means ani?.'.ilegal or beneficial interest in the Property, including, but not limited to, those beneficial interests transfe~¢ed in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of whi}~h is the transfer of title by Borrower at a future date to a purchaser. If all or m~y part of the Proper~Y or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may requi~e immediate payment in full of all sums secured by this Security Instrument. However, this option. ~:hall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option':,, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30. days from the date the notice is given in accordance with Section 15 within which Borrower must pay ~}:1 sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further :notice or demand on Borrower. 19. Borrower's Right to Rf:~instate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to t~tve enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five day~:: before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such ,:i,~her period as Applicable Law might specify for the termination of Borrower's right to reinstate; or itz) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) i}ays Lender all sums which then would be due under this Security Instrument and the Note as if no acck;:~leration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses in~::iurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's inte~::est in the Property and rights under this Security Instrument; and (d) takes such action as Lender may re=:~sonably require to assure that Lender's interest in the Property and rights under this Security Instrument-~ and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchange:rI. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the fo;ii,owing 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 i~;~ared by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon ieinstatemenr';by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if n(¢:acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration un&:,r Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance..The Note or a partial interest in. the Note (together with this Securit~? Instrument) can be sold one or mor~ times without prior notice to Borrower. A sale might result in a change in the entity (known as the"tLoan Servicer") that collects Peri9dic Payments due under the .Note and this Security Instrument and performs other mortgage loan servicing obligations under the Noie, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given wiitten notice of the change which will state the name and address of the new Loan Servicer, the address to'. which payments should be made and any other information RESPA HARRIS. A PURCH 8608231 0 (~-6(WY) (ooo5) Page ~] of ~5 Form 3051 1/01' O95 requires in connection with a 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 Ll,an Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unle',~s 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 this Security Instrument or that alleges tkat the other party has breached any provision of, or any duty owed by reason of, this Security Instrument. until such Borrower or Lender has notified the other party (with such notice given in compliance with th~ requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable I:,)riod after the giving of such notice to take corrective action. If Applicable Law provides a time pt !?iod which must elapse before certain action can be taken, th. at time period will be deemed to be reaso~table for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borr?wer pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section' 18 skall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20.11 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazanlous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means fed.eral laws and laws of the jurisdiction where the Property is located that relate to health, safety or environn'!}~ental 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 tlm~ can cause, contribute to, or otherwise trigger an Environmental Cleanup. · Borrower shall not cause or p;i:i:rmit the presence, use, disposal, storage, or release of any Itazardous Substances, or threaten to release m,.y Hazardous Substances, on or in the Property. Borrower: shall not do, nor allow anyone else to do, anyth;ng affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environr':~ental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a covdition that adversely affects the value of the Property. The preceding two sentences shall not apply to ~.!ae presence, use, or storage on the Property of small quantities of i, Hazardous Substances that are gem'.~rally recognized to be appropriate to normal residential uses and to maintenance of the Property (includ:!ng, but not limited to, hazardous substances in consumer products). Borrower shall promptly give ~ender written notice of (a) any investigation, claim, demand, lawsuit or other action by any g0vernmenta:[ or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (h) any Environmental Condition, includin[, 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 which adverm~ly affects the value of the Property. If:Borrower learns, or is notified by,any governmental or regulatory:'authority, or any private party, that any removal or other remediation of any Hazardous Substance affecti:>.g the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance wi::a Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Clean,~p. HARRIS. A PURCH 8608231 ,o,,,~,,:d$~ 0 (~--6(WY) (ooo5) Page 12 of lS Form 30,5.1 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22; Acceleration; Remedies. Limder shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in: this Security Instrument (but not prior to acceleration under Section 18 unles!! Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required So cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, byi~ which the default must be cured; and (d) that failure to cure the default on or before the date speciltied in the notice may result in acceleration of the sums secured by this Security Instrument and sale ef the Property. The notice shall further inform Borrower of the right to reinstate after acceleration :and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security'. E~strument without further demand and may invoke the p6wer of sale and any other remedies per.mitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing thc: 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 0f the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sai~e~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 ..?r~rchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (~) 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 enti~i~e.~rl to it. 23. Release. Upon payment ol' ~tll sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shai~l pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted unde~ Applicable Law. 24. Waivers. Borrower .releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. HARRIS, A PURCH 8608231 0 (~-6(WY) (ooo5) Page ~3 o* ~s Form 3051 1/01 BY SIGNING BELOW, Borr.::~wer accepts and agrees to the terms an.,d covenants contained in this Security Instrument and in any Ride~'.executed by Borrower and recorded with it. Witnesses: Adam Duncan HarrSs -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower .-- (Seal) ', (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower HARRIS, A PURCH ~ 8608231 0 (~<~6(wg) Iooo5) Page ~4 of ~5 Form 3051 1/01 STATE OF WYOMING, Teton County ss: The foregoing instrument was acknowledged before me this September 11, 2001 byAdam Duncan Harris ~ My Commission~)~/~t~),,~~e/res:/ ~ ' {( .__~D~RE~~''~;:''7~ CLEER~~'~';:" ~ ........ ~ Notary ~blic 1~ Coun~ of ~ State or II Lincoln ~ Wy~i~ ~ My Commiasior~ Expires Febma~ 20, 2002 HARRIS, A PURCH 8608231 0 Initials: (~I~6(WY) 100051 Page tS of is Form 3051 1/01 3'99 INITIAL PERIOD FIXED/ADJUSTABLE-RATE RIDER (1 Year Treasury Index - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this llth day of September, 2001 , and is incorporated into and shall be deemed to amend and supplem:mt the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Security Instrument") of the same t!ate given by the undersigned (the "Borrower") to secure Borrower's Note to The 3ackson State !i~ank, a State Bank (the "Lender" of the same date and covering the property described :i n the Security Instrument and located at: 533 Forest Circle ,Alpine,W~i'' 83120 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING iFOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER N!UST pAY. ADDITIONAL COVENANTS. In addition to the covenants :;nd agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follov,s: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 6. 375,3 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate 'I will pay will change to an adjustable interest rate on the first day of October, 2008 , and the adjustable intere!!',t rate I will' pay may change on that HARRIS, A PURCH 8608231 : 0 MULTISTATE FIXED/ADJUSTABLE RATE RIDER Nonassumable Fixed) - S ri!~:~le Family - Freddie Mac UNIFORM INSTRUMENT ,,-- 100 day every 12th month thereafter; Each date on which my interes': rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be b;ised on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of i year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." " If the Index is no longer available, the Note Holder will choo.~e a new index which is based upon comparable information. The Note Holder will give me notice of th:~s choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculz, te my new interest rate by adding Two and Seven / Eighths percentage points ( 2. 8750 %) to the Current Index. The Note I41ol,ter 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) below, thi~ rounded amount will be my new interest rate until tee next Change Date. The Note Holder will then determine the amount of the monthl,/payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change [;ate in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new mnount of my monthly payment: (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Ch'rage Date will not be greater than 1i. 375'0 % or less than 2. 8750 ~o. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more titan TwO percentage point(s) ( 2. 0000 %) from the rate of interest I have been paying for the preceding twelve months. My interest rate will never be greater than 11.3;?50 %. (E) Effective Date of Changes !~ · My new interest rate will become effective on each Change Dare. I will pay the amount of my new monthly payment beginning on the first, monthly payment date after ~he Change Date until the amount of my monthly payment changes again. HARRIS, A PURCH 8608231 0 (~834R (0008) Page 2 of 5 Form 3195 1/01 (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any chant';es in my interest rate and the amount of my monthly payment before. :the effective date of any change. 'rhe notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. : B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. UNTIL BORROWER'S INITIAL FIXED INTEREST RATE CHANGES TO AN ADJUSTABLE INTEREST RATE UNDER THE TERMS STATED IN ,SECTION A ABOVE, UNIFORM COVENANT 18 OF THE SECURITY INSTRUMt!:.NT SHALL BE IN EFFECT AS FOLLOWS: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial int!~'rest in the Property, including, but not limited to, those beneficial interests transferred in a be. nd for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all 0r any part of the Property or any Interest in the Pro?erty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in ;!~orrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this o~',~ion shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borro','qer 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 al!! sums secured by this Security Instrmnent. If Borrower fails to pay these sums prior to the cgpiration of this period, Lender may invoke any remedies permitted by this Security Instm:'rnent without further notice or demand on Borrower. HARRIS, A PURCH 8608231 0 !h~itials: ~_ (~834R (0008) Page 3 of 5 Form 3195 1/01 I ;' 2. WHEN BORROWER'S INITIAL FIXED INTEREST RATE CHANGES TO AN ADJUSTABLE INTEREST RATE UNDER THE TERMS STATED IN SECTION A ABOVE, UNIFORM COVENANT i8 OF THE SECURITY INSTRUMENT DESCRIBED IN SECTION Bi ABOVE SHALL THEN cEASE TO BE IN EFFECT, AND THE PROVISIONS OF UNIFORM COVENANT 18 OF THE SECURITY INSTRUMENT SHALL BE AMENDED TO READ AS FOLLOWS: Transfer of the Property or a Beneficial Interest in BCTrowetk As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the ,Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without~ Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if 'such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to'Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law,' Lender tnay charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender ant! that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30-days from the date the notice is given in accordance with Section 15 within which Borrower must pay all , sums secured by this Security Instrument. If Borrower fail:s ~o pay these sums prior to the expiration of this period, Lender may invoke any remedies pe~!tted by this Security Instrument without further notice or demand on Borrower. HARRIS, A PURCH 8608231 I~834R (0008) Page 4 of 5 i :' Form 3195 1/01 BY sIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. ~__ (Seal) (Seal) Adam Duncan Harris -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower __ (Seal) (Seal) -Borrower -Borrower __ (Seal) (Seal) -Borrower -Borrower HARRIS, A PURCtt '8608231 0 (~11~834R (0008) , Page 5 of 5 Form 319,6 1/01