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HomeMy WebLinkAbout876088 WHEN RECORDED MAIL TO:? EXPRESSCLOSE.COM 935 E 53RD STREET ~ ', MI 48084 DAVENPORT, IA 52807 kl~'.~ 563 445-5555 ~' 8 7 6 00 i'~ Prepared By: Lee Wynn }',, ~N ~RO Mortfla~e Group, ~:Znc. 1643 N. Harrison Parkway ~ Sunrise F~, 33323-0000 ~ O K .PRPAGE [Si,~hee Above This Line For Recording Data} MORTGAGE 00 ,444 ~ 6~6956274 DEFINITIONS Words used in multiple sections o~J:'tMs document are defined belo~ and other words are defined in Sections 3, 11, 13, 18, 20 and 21, ~:~iertain. rules regarding lhe usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means th~s document, which is dated Sepge~er 1, 2oo~ together with all Riders to this document. ' (B) "Burrower" is John VicarS:::(, ~ Borrower is the mortgagor under thi~?2Security Instrument. (C) "Lender" is ~N ~RO NortiBa~e Group, Inc. Lender is a Corporation organized and existing under'the law.}~ of The State of Delaware WYOMING-Single Family-Fannie MaelFre'i!:ldie Mac UNIFORM INSTRUMENT Form 3051 1/O1 (~® 6(WY) ' 10005) . VMP MORTfiAGI: FORMS - {800)521-7291 , r~ 49461 Lender's address is 2600 Wes~ilBig Beaver Road, Troy, MI 48084 Lender is the mortgagee under this Security Instrument. ' (D) "Note" means the promissory nc..te signed by Borrower and dated ' September 1, 2001 The Note states that Borrower owes :Lender One Hundred Twenty Thousand and 00/100 ~ Dollars (U.S. $ 120,000.00 )piUs interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in ful!.?ot later than October 1, 2031 (E) "Property" means the 'propertyi that is described below under the heading "Transfer of Rights in the Property." ' !! (F) "Loan" means the debt evidenc.,:.~.d by the Note, plus interest, any'prepayment charges and late charges due under the Note, and all Sums dui:I under this Security Instrument, plus interest. (G) "Riders" means all Riders to [?iis Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrowi~r [check box as applicable]: [-~ Adjustable Rate Rider ~-] Coi'~dominium Rider F~ Second Home Rider ~ Balloon Rider ['~ el,.~)~ned Unit Development Rider ~ 1-4 Family Rider ~ VA Rider ~ Bi,?eekly Payment Rider ~-~ Other(s) [specify] ,- Legal Description (H) "Applicable Law" means alli:ibontrolling applicable federal, state and local statutes, regulations, ordinances and administrative rules?md orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association DueS,)iFees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Bon:!:iwer:.: or the Property by a condominium association, homeowners association or similar organization.: (J) "Electronic Funds Transfer" i:}~eans any transfer of funds, other than a transaction originated by check, draft, or similar paper insbi,ment, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic t'~!pe so as to order, instruct, or authorize a financial institution to debit or credit an. account. Such term ir~,i:':ludes, but is not limited tO, point-of-sale transfers, a~tomated teller machine transactions, transfers ini~tiated by telephone, wire transfers, and automated 'clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" mea~is any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the i~roperty; (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 Proper!y2 (M) "Mortgage Insurance" means.i.~surance protecting Lender against the nonpayment of, or default on, the Loan. ~ ~:. (N) "Periodic Payment" means the:.~egularly scheduled amount due for (0 principal and interest under the Note, plus (ii) any amounts under S/i,:tion 3 of this Security Instrument. (O) "RESPA"' means the Real Esta~:ie~, Settlement Procedures Act (12 U.S.~C. 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 successor'legislation 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 loi::J' even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(WY) (ooos) Page 2 of ~ Form 3051 1/01 ~r 49461 (P) "Successor in Interest of Borr ,wer" means any party that has taken title to the Property, whether or not that party has assumed Borrowei.i)s obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE i?ROPERTY This Security Instrument secures to ~i~ender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii)i the performance of Borrower's covenants and agreements under this Security Instrument and the Note. [,or this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors ana; assigns, with power of sale, the following described property located in the City ,~ of Etna : : [Type of Recording Juri:~,ilictionI [Name of Recording Jurisdiction] SEE ATTACHED: 'SCHEDULE A' FOR LEGAL DESCRIPTION. THE WITHIN MORTGAGE CONSTITUTES A FIRST LIEN ON THE PREMISES DESCRIBED HERE IN. Parcel ID Number: ,_~/t/, ~'.:;/00 - ,2~'-0~ which currently has the address of 3333 East Etna County Ro,!,icl~l.O"'-~/(~ [Street] Etna [City] , Wyoming 83118" [Zip Code] ("Property Address"): ,~, TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fix!~:lres 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 "Properts:'::" BORROWER COVENANTS taht Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage; grant and'cc :avey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any <::ncumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations b'; jurisdiction to constitute a uniform security instrument covering real property. ,, UNIFORM COVENANTS. B~.rrower and Lender covenant and agree as follows: 1. Payment of Principal, h~terest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the t?'incipal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charge:: due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments dt.e under the Note and this Security Instrument shall be made in U.S. currency. However, if any check on other instrument received by Lender as payment under the Note or this (~I~-6{WY) (o0o§) Page 3 of ~5 - ' Form 3051 1/01 49461 Security Instrument is returned to Leander unpaid, Lender may require that any or all subsequent payments due under the Note and this Secmq'ty Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b)'i:honey order; (c) certified check, bank check, treasurer's check or cashier's check, provided any suchl,zheck is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or e:i'~tity; or (d) Electronic Funds Transfer. Payments are deemed received i'~y Lender when received at the location designated in the Note or at such other location as may be design?~ted by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or )artial payment if the payment or partial payments are insufficient to bring the Loan current. Lender mayilaccept any payment or partial payment insufficient to bring the Loan current, without waiver of any righ[::,;: hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender 5:; not obligated to apply such payments at the time such payments are accepted. If each Periodic Paymem:iis applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender.~,;~iay~ hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does r:ot do so within a reasonable period of time, Lender shall either.apply · such funds or return them to Borrowi~:.ir. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note i'i:!imediately prior to foreclosure. No offset or claim which Borrower might have now or in the future a~ jnst: Lender shall relieve Borrower from making payments due under the Note and this Security Instrume~:t or performing the covenants and agreements secured by this Security Instrument. ~.: · 2. Application of Payments ':~.:)r Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by 12ender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal tiiS'e under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic P~:Vment~. in the order in which it became due. Any remaining amounts shall be applied first to late charges.: second to any other amounts due under this Security 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 cl~arge due, the payment may be applied to the delinquent payment and the late charge. If more than one Pe::i. odic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of ~!:he Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any ,::~icess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess; may be applied to any late charges due. Voluntary prel/ayments shall be applied first to any prepayment ci~)~rges and then as described in the Note. Any application of payments, h'lsurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone, the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. ]i!.orrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paii.:[l in full, a sum (the "Funds") to provide for Payment of amounts due for: (a) taxes and assessments and o?~er items which can attain prioriiy 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 insuranc.,,: required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums pa.'i'able by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance :~,ith the provisions of Section 10. These items are called "Escrow Items." At origination or at any tir::e during the term of the Loan, Lender may require that Community Association Dues, Fees, and Asse!.!ments, if any, be escrowed by Borrbwer, and such dues, fees and assassments shall be an Escrow Item 'Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrow?.' shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the !ands for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Fund~.l ::r any or all Escrow Items at any time. Any sUch waiver may only be in writing. In the event of such wai':.,'?.r, Borrower shall pay directly, when and where payable, the amounts Initlals:~ O~-6(WY) (0oo5) Paoe4of 15 Form 3051 1/01 49461 due for any Escrow Items for whichl;:~ayment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts eviii~ncing such payment within such time period as Lender may require. Borrower's obligation to make such:!.payments and to provide receipts shall for all purposes be deemed to .be a covenant and agreement contai~{i~d in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower i~i obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount dt'e for lan Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrowe~'.!shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the w~!ver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, ul:ion such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required!iunder this Section 3. Lender may, at any time, colleiit and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified undi~r RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shagi estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditure~?.il of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in!i an institution whose deposits are insured by a federal agency, instrumentality, or entity (including i',Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lend!i~r shaI1 apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender sh41il not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or ve:'!iifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits ![~ender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest ~.: be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Fum~[s. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender;~shall:: give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Fund(:~held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in ac}~}ordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender sh'.~311 notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to ma~ up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a defi~:~lency~ of Funds held in escrow, as' defined under RESPA, Lender shall notify Borrower as required by RESt/PA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with:.:~RESPA, but in no more than 12 monthly payments. Upon payment in full of all su?ns secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lem;er. 4. Charges; Liens. Borrow'e~ shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which c{m 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. To the extent that these items are Escrox.,~ Items, Borrower shall pay them in the manner provided in Section 3. Borrower. shall promptly disch~arge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to th., payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Bom~wer is performing such agreement; (b) conteSts the lien in good faith by, or defends against enforcement )f the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien ,while those proceedings are pending, gut only until such proceedings are~oncluded; or (c) secures from rite holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument.. ~:If ~nder determines that any part of the Property is subject to a lien which can attain priority over this S~curity Instrument, ~nder may give Borrower a notice identifying the . '~6(WY) 1ooo5) Pag. 5 of ~ Form 3051 1/01 ' 4946~ lien. Within 10 days of the date :on !~shich that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above i~' this Section 4. Lender may require Borrower':to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in i~i,~nnection with this Loan. 5. Property Insurance. Borrc~;:er 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 li~'.::~ied to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained ~n the amounts (including deductible levels) and for the periods that Lender requires. What Lender requ~i~i'~s pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier pr{:~!iding the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's c~,'~:!ce, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connili~r!tion with this Loan, either: (a) a one-time charge for flood zone determination, certification and tra/:.!dng services; or (b) a one-ti~ne charge for flood zone determination and certification services and subsr:.§.uent charges each time remappings or similar changes occur which reasonably :might affect such detem:iination or certification. Borrower shall also be responsible for the payment of any fees imposed by 'li";e Federal Emergency Management Agency in connection with the review of any flood zone determinai~ign resulting from an objection by Borrower. If Borrower fails to maintainli{iny of the coverages described above, Lender may obtain insurance coverage, at Lender's option and 'ii30rrower's expense. Lender is under no obligation to purchase any particular type or amount of ,~ ~. covervge. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's eq:!iity in the Property, or the contents of the Property, against any risk, hazard or liability and might provi:¢¢ greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the i.t~.§urance coverage so obtained might significantly exceed the cost of insurance'that Borrower could have dlbtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrowe~ i!;ecured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disiSursement and shall be payable, with such interest, upon notice frmn Lender to Borrower requesting paym};nt. All insurance policies required ~'by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, is:hall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional 10.~;s payee. Lender shall have the right to hold the polici'es and renewal certificates. If Lender requires, Bor:r?'i,wer shall promptly give to Lender all receipts of paid l~remiums and renewal notices. If Borrower obtain~i any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, ti:~.i:i Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/,~')r 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 mad&:"i~romptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,:i.li?hether or not the underlying insurance was required by Lender, shall be applied to restoration or repair C.f the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. D.j'ring such repair and restoration period, Lender shall have the right to hold such insurance proceeds until [;ender has had an opportunity to inspect such Property to ensure the work has been completed to Len }~i:r s satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse p~r}.~eds for the repairs and restoration in a single payment or in a series of progress payments as the work i~,:i completed. Unless an agreement is rna'de in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be: required to pay Borrower any interest or earnings on such proq~,e.,ds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of fhe insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not econo~nically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the stuns secured by this Security Instrument, whether or not then due, with (~-6(WY) Iooo~) Page 6 of 15 Form 3051 1/01 49461 30i. the excess, if any, paid to Borro, wer: Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Pre, Petty, Lender may file, negotiate and settle any available insurance claim and related matters. If Borro(yer 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 22 or otherwise, Borrowe:: hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceei] the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rightsll (Oiher than the right to any refund of unearned premiums paid by Borrower) under all insurance policiies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender mi~y use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Noi(e or this Security Instrument, whether or not then due. 6. Occnpancy. Borrower 'sh~iil occupy, establish, and use the Property as Borrower's principal residence within 60 days after the e, xecution of this Security Instrument and shall continue to occupy the Property as Borrower's principal re?~dence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, whicli:!, consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyoni:l Borrower's control. 7. Preservation, Maintenanc'? and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Piii~perty, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrowe~,;iis residing in the Property, Borrower shall maintain the Property in order to prevent the Property froml, deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 t!at repair or restoration is not economically feasibl%, Borrower shall promptly repair the Property if dlimaged to avoid further deterioration or damage. If insurance or condemnation proceeds· are paid in ;:'~onnection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing oi: restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proC'i}eds for the repairs and restoration in a single payment or in a series of progress payments as the work is c~:mpleted. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, B(:!rrower is not relieved of Borrower's obligation for the completion of such repair or restoration. '~ Lender or its agent may maki~~. reasonable entries upon and inspections of the Prol~'erty. If it has reasonable cause, Lender may inspe:~.~t the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or pripr to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Applie~:~ion. Borrower shall be in default if, during the Loan application process, Borrower or any personsi~or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materialiy false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender wi'l:h material information) in connection with the Loan. Material representations include, but are noi~ limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal tesMence. 9. Protection of Lender's Inter, rest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the co';i, enants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might si~:~ificantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a i!roceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Insirument or to enforce laws or regulations), or (c) Borrower has a~iandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to prote::t Lender's interest in the Property and rights under this Security Instrument, including protecting an/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can .aclude, but are not limited to: (a) paying any sums secured by a lien which has priority over this Sect~;.~ity Instrument; (b) appearing in court; and (c) paying reasonable ~%,y.l~/~'6(WY) io0o5) Page 7 of ~5 Form 3051 1/01 49461 attorneys' fees to protect its lute,rest :'in the Property and/or rights under this Security Instrument, including its secured position in a bankruptCl; proceeding. Securing the Property includes, but is not limited to, entering the Property to make repai']!% change locks, replace or board up doors and windows, drain water from pipes, eliminate building or o?i!i::~er code violations or dangerous conditions, and have utilities turned on or off. Although Lender may taLS: action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do s~o. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section '9. Any amounts disbursed by L¥i~der under this Section 9 shall become additional debt of Borrower secured by this Security Instrumem;:These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable; with such interest, upon notice from Lender to Borrower requesting payment. ~i: If this Security Instrument is ~.~"n a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title.i'[,o the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lmder required Mortgage Insurance as a condition of making the' Loan, Borrower shall pay the premiums re,(iuired to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance .and Borrower was required to make separately designated payments toward the premiums for Mortgag!:.~i Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent tolthe Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrowei:i0f the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Len¢ii.~}r. 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 cover:.:ge ceased to be in effect. Lender will accept, use and retain these payments as a non-refimdable loss :reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding, the'!ii!act, that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interei.: or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insu~J~ce coverage (in the amount and for the period that Lender requires) provided by an insurer selected by'iLender again becomes available, is obtained, and Lender requires separately designated payments towa::~l the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of makin~:i:::he Loan and Borrower was required to make separately designated payments toward the premiums for' ~! Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in ti::f::fect, or to provide a non-refundable loss reserve, ,until Lender's requirement for Mortgage Insurance :.nds in accordance with any written agreement between Borrower and Lender providing for such terminatic.n or until termination is required by Applicable Law. N'0thing in this Section 10 affects Borrower's oblig~'?.ion to pay interest at the rate provided in the Note. Mortgage Insurance reimburse:s Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not re?ay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate tht:.[r' total risk on all such insurance in force from time to time, and may enter into agreements with other pai!'::::ies that share or modify their risk, or reduce losses. These agreements are on terms and conditions that ar~ ..i;atisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). ' As a result of these agreemenll;. Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of.any of the foregoing, may receive (dir.ectly or indirectly) amounts that derive from (or might be characteri,.ed as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifyin~; :he mortgage insurer's risk, or reducing losses. If such agreement prov~ides that an affiliate of Lendex' takes a share of the insurer's risk in exchange for a share of the · premiums paid to the insurer, the arr:~ngement is often termed "captive reinsurance." Further: (a) Any such agreements w,ill not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other ;ems of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage In. mrance, and they will not entitle Borrower to any refund. ~-6{WY] 1ooo5} Page 8 of )5 Form 3051 1/01 49461 (b) Any such agreements, wi~ not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under th~ Hiiimeowners Protection Act of 1998 or any other law. These rights may include the right to receiV,:, 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 InsuranO~ premiums that were unearned at the time of such cancellation or termination. . ¢ 11. Assignment of Miscellmi~ous Proceedsi Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Leniiier. If the Property is damaged, st;!iCh Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or ii:%pair is economically feasible and Lender's security is not lessened. During such repair and restoration ~,}riod, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opp0rtuni~!? to inspect such Property to ensure the work has been completed to Lender% satisfaction, provided that!:!mch inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a singk:i:l disbursement or in a series of progress payments as the work is completed. Unless an agreement is ~i~ade in writing or Applicable Law requires interest to be paid ~h such Miscellaneous Proceeds, Lender sh!!&l not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restd!!iation or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proc~eeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the ~:icess,:if any, paid to Borrower. Such Miscellaneous Proceeds shall be apphed m the order prowded for m :~ect~on 2. In the event of a total takin}~:, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sm3s secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower~ In the event of a partial takin~ 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 sun?~s secured by this Security Instrument immediately before the partial taking, destruction, or loss in valu'~, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrume~t shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fractie:n: (a) the total amount of the sums secured immediately before the partial taking, destruction, or Io~}~ in value divided by (b) the fair market value of the Property immediately before the partial takin~, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking~ destruction, or loss in value of the Property in which the fair market value of the Property immediately Jbefore the partial taking, destruction, or loss in value is less than the amount of the sums secured imme~:~iately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agr~i::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:2 by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the ~ext 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 Miscellan~:~us Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous '?roceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. :~ Borrower shall be in default i~ any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights u~ ~Jer this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate ias provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Le~:der's judgment, precludes forfeiture df-the Property or other material impairment of Lender's interest in ?he Property or rights under this Securhy Instrument. The proceeds of any award or claim for damages thc: are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be pai~:.~[ to Lender. All Miscellaneous Proceeds t.mt are not applied to restoration or repair of the Property shall be applied in the order provided for im~ection 2. Initials: k~~/ ~I,~j~-6(WY) 10oo5} ~' Pa~ s of ~5 Form 3051 1/01 49461 ", 304 12. Borrower Not Releas.ed; ~ orbearance By Lender Not a Waiver. Extension of the time for payment or modification of. amortiZe: ion of the sums .secured by this Security Instrument granted by Lender to Borrower or any Successor in Inf~(.rest Of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Bm !0wer. Lender shall not be required to commence proceedings against any Successor in Interest of Borrt~'~0er or to refuse to extend time for payment or otherwise modify amortization of the sums secured by Ibis Security Instrument by reason of any demand made by the original Borrower or any Successors in Inter:~,st of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitati&:[, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower t/::'i~;in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or !emedy. 13. Joint and Several Liabili'~':i~!; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligatio~t.~,~ and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument b'i?l does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortga~.;.!;!., grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (I:,? is not personally obligated to pay the sums secured by this S~curity Instrument; and (c) agrees that Lenci~r and any other Borrower can agree to extend, modify, forb~r or make any accommodations with reg~rd to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of'Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Se':iurity Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits~'under~ this Security Instrument. Borrower shall not be released from Borrower's obligations and liabilityi~it:nder this Security Instrument unless Lender agrees to such release in writing. The covenants and agreea~:~ints Of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors~and assigns of Lender. 14. Loan Charges, Lender m!!i:y charge Borrower fees for services performed in connection with Borrower's default, for the purpose:)ff protecting Lender's interest in the Property and rights under this Security Instrument, including, but 'lot limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absefi;~e of express authority in this Security Instrument to charge a specific fee to Borrower shall not be constru:~::il as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by;~his 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 charg!::¢ collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any suc[: loan charge shall be reduced by the amount necessary, to reduce the charge to the permitted limit; and (k::)! any sums already collected from Borrower which exceeded permitted limits will be refunded to Borroweri: Lender may choose to make this refund by reducing 'the principal owed under the Note or by makiri.~,:a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a pmS!a1 prepayment without any prepayment charge (whether or not a prepayment charge is provided for ~'4nder the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will con~fitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices giver'iby Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to B;:~:firower in connection 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 mear,'i~.! Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly vilfuires otherwise. The notice address shall be the Property Address unless Borrower has designated a s'~:~i~:~stitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change 0f address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower si~.~ill only report a change of address through that specified procedure. There may be only one designated i',otice address under this Security Instrument at any one time. Any notlce to Lender shall be given by!t;elivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice re.:luired by this Security Instrument is also required under Applicable Law, the Applicable Law requirern.:nt will satisfy the corresponding requirement under this Security Instrument. (~)~-6(WY) (ooo5) : Page ~Oof ~5 Form 3051 1/01 49461 16. Governing Law; Severa!aility; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Secu!iiity Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law m',ght explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shrill not be construed as a prohibition against agreement by contract. In the event that any provision or clai::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 Frowsion. As used in this Security Inst!:!ument: (a) words of the masculine gender shall mean and include corresponding neuter words or woi,!ts of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; ai:~d (c) the word "may" gives sole discretion without any obligation to take any action. : ' 17. Borrower's Copy. Borrow.~i:r shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Propert)~.:' or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means an/i::' 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 whi(:ih is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Proper!iY or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a benefii:!ial 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. .i If Lender exercises this optio~.~ Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 3(ii days from the date the notice is given in accordance with Section 15 within which Borrower must pay a.l 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 !:'iotice or demand on Borrower. 19. Borrower's Right to Ri:i[~nstate After Acceleration. If Borrower meets certain' conditions, Borrower shall have the right to hitlve enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days:before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such ..i!;ther period as Applicable Law might specify for the termination of Borrower's right to reinstate; or ~..c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a))'?.ays Lender all sums which then would be due under this Security Instrument and the Note as if no acd:%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, pro?i!erty 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 reasonably require to assure that Lender's interest in the Property and rights under this Security Instrumeri!}.and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchang Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the fo'.:i~owing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasur::i'r's check or cashier's check, provided any such check is drawn upon an institution whose deposits are in:.ured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatemenl:!:by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if nc acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration und~..r Section 18. 20. Sale of Note; Change of il,oan Servicer; Notice of Grievance. The Note or a partial imerest in the Note (together with this Securi'.? Instrument) can be sold one or mole times without prior notice to Bor~rower. A sale might result in ;' change in the entity (known as the' "Loan Servicer") that collects Periodic Payments due under the ~!!ote and this Security Instrument and performs other mortgage loan servicing obligations under the Not% this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Se. micer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given w~iitten notice of the change which will state the name and address of the new Loan Servicer, the address to .~,hich payments should be made and any other information RESPA (~-6(WY) (ooo5) P.o* ~ of ~.~ Form 3051 1/01 '.~ 49461 306 requires in connection with a notic~.:,i:of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other t~::~an.:, the purchaser of the Note, the mortgage loan servicing, obligations to Borrower will remain with the L?)an Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unle~?? otherwise provided by the Note purchaser. Neither Borrower nor Lender ,i~ay commence, join, or be joined to any judicial action (as either an individual litigant or the member :i.~ a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges fi}at the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, ~:?ntil 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 period after the giving of such notice to take corrective action. If ApPlicable Law provides a time pei~iod which must elapse before certain action can be taken, that time period will be deemed to be reast~:i~hble for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower... pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shilxll be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. :/ 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, ken~:sene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, m}~ierials.~ containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means fed~:ral laws and laws of the jurisdiction where the ProPerty is h)cated that relate to health, safety or environmie, ntal protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal 'action, as defined in Environmental Lawi and (d) an "Envffonmental Condition" means a condition th~!t'i can cause, contribute to, or otherwise trigger an Environmental ,! Cleanup. Borrower shall not cause or F.-' tlmit., the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release a~'~; Haz~rdous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anyth.[~g affecting the Property (a) that is in violation of any'Environmental Law, (b) which creates an Environr:iental Condition, or (c) which, due to the presence, use, br release of a Hazardous Substance, creates a cor~iiiition that adversely affects the value of the Property. The preceding two sentences shall not apply to t:,.e presence, use, or storage on the Property of small quantities of Hazardous Substances that are gen?:'~i:ally recognized to be appropriate to normal residential uses and to maintenance of the Property (includ'/~g, 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. governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environ:z-ental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substanc:~.. and (c) any condition caused by the presence, use or release of a Hazardous Substance which advers¢~'g affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory,i~'uthority, or any private party, that afiy removal or other remediation of any Hazardous Substance affecti~t; the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance wit? Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanu.~. (~I~-6{WY) 10005) Paga 12of 15 Form 3051 1/01 49463_ NON-UNIFORM COVENAN;!.'S. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenimt or agreement in this Security Instrument (but not prior to acceleration under Section 18 uni~i~s Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action require~i[ to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, h.!,, which the default must be cured; and (d) that failure to cure the default on or before the date spec~l'ied in the notice may result in acceleration of the sums secured by this Security Instrument and sale :~of the Property. The notice shall further inform Borrower of the right to reinstate after acceleratio:il; and the right to bring a court action to assert the non-existence of a default or any other defense of ?iorrower to acceleration and sale. If the default is not cured on or before the date specified in the no~i'ce, Lender at its option may require immediate payment in full of all sums secured by this Security ii!nstrument without further demand and may invoke the power of sale and any other remedies per~i:iitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and cosi:;'~ 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 01r the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sai.'a to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and tt[~.'.e Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may t:iurchase the Property at any sale. The proceeds of the sale shall be applied in the following order: ~i(a)to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to ~]i,!1 sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to :it. 23. Release. Upon payment oi; all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower sha!i! pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, imt only if the fee is paid to a third party for services rendered and the charging of the fee is permitted und}i:~r Applicable Law. 24. Waivers. Borrower rele/ses and waives all rights under and by virtue of the homestead exemption laws of Wyoming. 1{~-6(WY} (00o5} i'~ii Page 13of 15 Form 3051 1/01 ,,~ 49461 BY SIGNING BELOW, Borr<iwer accepts and agrees to the terms and covenants contained in this Security Instrument and in any Ride:! executed by Borrower and recorded with it. Witnesses: ~. (Seal) -Borrowor (Seal) (Seal) -Borrowar ! -Borrower ~::-- (Seal) (Seal) -Borrower -Borrower i (Seal) (Seal) -Borrower -Borrower (~i~6{WY) ¢ooos) Page 74 of 15 Form 3051 1/01 .; 49461 STATE OF WYOMING, ~ County ss: The foregoing instrument was ~/~cknowledged before me this September 1, 2001 MY C°mmissi°n Expires: 0 q/~..~,!/O~ . .' NotaYy Public (~-6(WY) (0005) Pa9e 15 of ~5 Form 3051 1/01 49461 ADJLirSTABLE RATE RIDER AB00'134446 (I' Year Treasury Index - Rate Caps) 6169562 ? 4 THIS ADJUSTABLE RATE R~i;DER is made this :l_st day of September, 200:1, and is incorporated into and ,i~hall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (thii:"Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower% Aiiljustable Rate Note (the "Note") to ABN AMRO Mortgage Group, Inc. (the "Lender") of the same dat, ;..':~td covering the property described in the Security Instrument and located at: 3333 East Etnl .iCounty Road 10 Etna, WY 83118 (Mailing: pobox 3473, alpine, WY 83128) ' ' [Property Address] THE NOTE CONTAINS, 'PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND filE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORRO~'~irER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIM'klM RATE THE BORROWER MUST PAY. ADDITIONAL COVENAN2'5.. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender fi~i',ther covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initi,~l interest rate of 6.50 %. The Note provides for changes in the interest rate and the monthly payments as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may Change on the first day of October, 2004 and on that day every 12th month thereafter Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDEH: - ARM 5-2 -Single Fatal}y- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~ Fannie Mae 4-2/5-2/6-2 ARM ... I~822R (0008) Form 3111 171 -.. VMP MORTGAGE FORMS - (800i521-7; 91 99436 .i " 1 1 (B) The Index Beginning with the first Chang? Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United Sta:es Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reseni!e Board. The most recent Index figure available as of the date 45 days before each Change Date is called thi If the Index is no longer availi~ble, the Note Holder will choose a new index which is based~ upon comparable information. The Note ISi!.older will give me notice of this choice. (C) Calculation of Changes Before each Change Date, ihe. Note Holder will calculate my new interest rate by adding Two and Three-Quarters percentage points ( 2.75 %) to t~ Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of.one percentage point (0.125%). Subject to the limits stated in Section 4(D) beloTM, this rounded amount wi:Il be my new interest rate until the next Change Date. The Note Holder will then detiirmine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I amexpected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equ~al payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am reqh:ired to pay at the first Change Date will not be greater than 8.5 0 % or less!than 4.5 0 %. Thereafter, my i~'terest rate will never be increased or decreased on?iany single Change Date by more than two percentage points (2.0%) from the rate of interest I have bee.::: paying for the preceding 12 months. My interest rate will never be greater than 12.50 /, %. (E) Effective Date of Change~~ My new interest rate will beccme effective on each Change Date. I will pay the amount of my new monthly payment beginning on the !l!i?st monthly payment date after the Change Date until the amount of my monthly payment changes again: 11~822R (0008) ",: Page 2 of 4 " Form 3111 1/01 ~, 99436 (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before th~:iiieffective date of any change. The notice will include information required by law to be given.to me ail. i~ also the title and telephone number of a person who will answer any question I may have regarding the m~iice B. TRANSFER OF THE PROPEII~,T¥ OR A BENEFIC/AL INTEREST IN BORROWER Section 18 of the Security Instrument :i.s amended to read as follows: Transfer of the Properts'~r a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" ~!~61eans any legal or beneficial interest in the Property, including, but not limited to, those benefii!iial interests transferred in a bond for deed, contract for deed, installment sales contract or e~'drow agreement, the intent of which is the transfer of title by Borrower at a future date to a t:'~]::~chaser. If all or any part of the Pl:~c,perty or any Interest in the Property is sold or transferred (or if Borrower is not a natural per~:~n and a beneficial interest in Borrower is sold.or transferred) without Lender's prior writter~iconsent, Lender may require immediate payment in full of all sums secured by this Security I'~istrument. However, this option shall not be exercised by Lender if such exercise is prohibited b'Y: Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be sub~:.litted to Lender information required by Lender to evaluate the intended transferee as if a ni?:Cv 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 cbvenant or agreement in this Security Instrument is acceptable to Lender. " To the extent permitted by Applicable Law, Lender may charge a reasonable'fee as a condition to Lender's consent i.e. the loan assumption. Lender ma_.y also require the trans'feree to sign an assumption agreement 'fhat is acceptable to Lender and that obligates the transferee to keep all the promises and ag~3ements made in the Note and in this Security Instrnment. BorroWer will continue to be i:~bligated under the Note and this Security Instrument unless Lender releases Borrower in wri!iing If Lender exercises the fTtion to require immediate payment in full, Lender shall give Borrower notice of acceleration.ilThe notice shall provide a period of not less than 30 days from the date the notice is given in a::::',c0rdance with Section 15 within which Borrower must pay all sums secured by this Security :i~nstrument. If Borrower fails to pay these sums prior to the. expiration of this period, Len&~ may invoke any remedies permitted by this Security Instrument without further notice or demal~d on Borrower. (~822R (0008) ~I Initials: Page 3 of 4 Form 3111 1/01 99436 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. f/'i / (Seal) (Seal) : -Borrower -Borrower __ (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower __ (Seal) (Seal) -Borrower -Borrower ARM 5-2-Single Family-Fannie ~lae/Freddie Mac Uniform instrument Form 3111 3/85 (~822R (0008) " Page 4 of 4 Form 3111 1/01 99436 PID: LEGAL DESCRIPTION: THE FOLLOWING DESCRIBED REAL i,~!STATE, SITUATED IN LINCOLN COUNTY AND STATE OF WYOMING: THE SOUTH 330 FEET OF THE NORTE 825 FEET OF NE 1/4 NE 1/4 OF SECTION 26, TOWNSHIP 36 NORTH RANGE 119 WEST, 6TH P.M., LINCOLi~.( COUNTY, WYOMING. ' SUBJECT TO RESTRICTIONS, R~,SERV~XTIONS, EASEMENTS, COVENANTS, OIL, GAS OR MINERAL RIGHTS OF RECOKD, IF ANY. THIS PROPERTY IS OWNED BY OR i~ESTED IN: JOHN VICARI, A SINGLE MAN '