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HomeMy WebLinkAbout923817 ~ 000437 \(f) Return To: FHHLC - POST CLOSING MAIL ROOM 1555 W WALNUT HILL LH 1200 MC 6712 IRVING, TX 75038 Prepared By: FIRST HORIZON HOME LOAN CORPORATION 6900 COLLEGE BLVD., SUITE 250 OVERLAND PARK, KS 66211 (Space Above 'IbiI Uae Fol' Reconliag Data) MORTGAGE MIN 100085200592301693 0059230169 DEFINITIONS RECEIVED 10/27/2006 at 4:47 PM RECEIVING # 923817 BOOK: 638 PAGE: 437 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Words used in multiple sections of this docmnent are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this docmnent are also provided in Section 16. (A) "Security Instrument" means this docmnent, which is dated October 24th, 2006 together with all Riders to this docmnent. (B) "Borrower" is BUD PERRY, A Single Man \ Borrower is the mortgagor under this Security Imtrmnent. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS Is the mort.gagee under tbi'l Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone munber of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOM.ING -Single Family- Fannl. MaeiFreddI. Mac UNIFORM INSTRUMENT WITH MERS . Fonn 3051 1101 . -6A(WY) (0005).02 ,g P Page ~ 0115 Inll1a": ~ VMP Mortgage Solution.. Inc. I ~~II "II~I ~IIIIIII ~I :~~~itim~t 09~381? 000438 (D) "Lender" is PIRST HORIZON HOME LOAN CORPORATION Lender is a CORPORATION organized and existing under the laws of THE STATE OP KANSAS Lender's address is 4000 Horizon Way, Irving, Texas 75063 (E) "Note" means the promissory note signed by Borrower and dated Oc tober 24th, 2006 The Note states that Borrower owes Lender ONE BtJNDRED FOURTEEN THOUSAND &: 00/100 Dollars (U.S. $ 114,000.00 ) pIus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than NOVEMBER 1, 2 03 6 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property. " (G) "Loan" means the debt evidenced by the Note, pIus interest, any prepayment charges and late charges due under the Note, and all swns due under this Secwity Instrument, pIus interest. (II) "Riders" means all Riders to this Secwity Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable): ~ Adjustable Rate Rider o Balloon Rider o VA Rider D Condominiwn Rider o Planned Unit Development Rider o Biweekly Payment Rider D Second Home Rider [i] 1-4 Family Rider o Other(s) [specity) (I) "Applicable Law" means all 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 opiniom. (J) "Commuuity Assodation Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominiwn association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrwnent, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an accown. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactiom, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Misr~llIneous Proceeds" means any compemation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ü) condemnation or other taking of all or any part of the Property; (ill) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property, (N) "Mortgage Iosurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (0) "Periodic Payment" means the regularly scheduled amown due for (i) principal and interest under the Note, pIus (ü) any amounts under Section 3 of this Secwity Instrument. (P) "RESPA" means the Real Estate 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 Secwity Instrwnent, "RESPA" refers to all requirements and restrictiom that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESP A. 0059230169 . -6A(WY) (0006~02 ~ Page 2 0116 I~:SP Fonn 3051 1/01 ill:,:'::··';';';'" '1 I.· 'I",'. "I'-I"!-"'J ;:;::_,~:; ',~;~- ~::~~:~) ,.. ~.:.:.: :.:,:.:.:.:.:.:' ~:': :':':~ :"'~.."'.'.' ...¡., ,' I '~~>:,; :iI~~¡~m1 0923817 000439 (Q) "Successor in Interest of Borrower" means any party that bas taken tide to the Property, whether or not that party has uswned Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY . This Secwity Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ü) the 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 MERS (solely u nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the County of Lincoln [Type of Recording Jurisdiction] [Name of Recording Jurisdiction) All that tract or parcel of land as shown on Schedule "An attached hereto which is incorporated herein and made a part hereof. . Parcel ID Number: County: 32191430018300 City: 1740 KEmnNGTON BURTON ROAD APTON ("Property Address"): which currently has the address of (Street] (city) . Wyoming 83110 (Zip Code) TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Secwity Instnnnent. All of the foregoing is referred to in this Security Instrument as the "Property. " Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Secwity Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencwnbered, except for . encwnbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instnnnent covering real property . 0059230169 . -6A(WY) (0006).02 ~ Pa Je 3 of 16 Ißitials:PP Form 3051 1/01 ." 092381.7 000440 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for EscI;oW Items pursuant to Section 3. Payments due under the Note and this Secwity Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Secwity Instrument is retwDed to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Secwity Instrument be made in one or more of the following fol1DS, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds 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 retwn any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Secwity Instrument or performing the covenants and agreements secured by this Secwity Instrument. 2. Application of Payments or Proceeœ. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amoUDts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaini1\g amoUDts shall be applied first to late charges, second to any other amoUDts due under this Secwity Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funœ for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a swn (the "Funds") to provide for payment of amoUDts due for: (a) taxes and assessments and other items which can attain priority over this Secwity Instrument as a lien or encwnbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiwns for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiwns, if any, or any swns payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiwns in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the teIDl of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amoUDts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items wùess Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amoUDts due for any Escrow Items for which payment of _ -6A(WY) (0006).02 ~ Initial.: ß f' Page 4 0115 Fonn 3051 1101 i./... ·~:::!::i:¡¡'I· . ia. '1'1i~J> ~~~~~~~~~~fm:~j~: 092381.~i 000441. Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to malœ such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligaœd to pay Escrow Items directly, pw-suant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold FUIJds 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 FUIJds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insmed by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insmed) 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 FUIJds, annually analyzing the escrow account, or verifying the Escrow Items, lmless Lender pays Borrower interest on the FUIJds and Applicable Law permits Lender to malœ 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 Funds. 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 swplus of Funds held in escrow, as defined under RESP A, Lender shall account to Borrower for the excess fimds in accordance with RESP A. If there is a shortage of FUIJds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to malœ up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of FUIJds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESP A, and Borrower shall pay to Lender the amount necessary to malœ up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secmed by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Uens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument lmless Borrower: (a) agrees in writing to the payment of the obligation secmed by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secmes from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 . -6A(WY) (0005~02 (þ Inllla":~ Pa",,5 of 15 Fonn 3051 1101 O~~3817 000442 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 in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised umeasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood. zone determination resulting from an objection by Borrower. If Borrower fails to maiTltain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amO\mt of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrwnent. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. 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 proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to e1A(WY) (0006).02 ~ Page II 0116 Inftiala: M Form 3051 1/01 .:æ. cl :t:i....~,:4::::,,1 ifj;'JI~'.i:tl'!c·.'.·1 t '" 1& I ",!j~ ~fl~ili*~~:~!~f¡rr;: }¡;¡I~J.~;m~1? ,,·.·'·...-4·,.' , ,·.·.·.·.~.·r'.·.·.·.·.·. ·c:....'<.~-""'_·,-,~,' 092381.~i 000443 the sums secured by this Security Instrument, whether or DOt then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does DOt respond within 30 days to a DOtice from Lender that ~ insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the DOtice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount DOt to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies. covering 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 Note or this Security Instrument, whether or DOt then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall DOt be umeasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maiotenaoce and Protection of the Property; Inspections. Borrower shall DOt destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or DOt Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is DOt ecoDOmically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are DOt sufficient to repair or restore the Property, Borrower is DOt relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower DOtice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with materia) information) in connection with the Loan. Material representations include, but are DOt limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Leader's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrwnent, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are DOt limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable . -6A(WY) (0005~02 œ Inhü: 13 l' Page 7 01 16 Form 3051 1101 .ù. ,. ... ...-......... ".-.'.'.' ,.. .... ,~. _.~._~- -_....'.-,......~..J. O~~381.~"i 000444 attorneys' fees to protect its interest in the Property and/or rights under this Secwity Instrument, including its secured position in a bankruptcy proceeding. Seeming the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned.on or off. Although Lender may take action under this Section 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 amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Secwity Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Secwity Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiwns required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiwns for Mortgage Insurance, Borrower shall pay the premiwns required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiwns 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 premiwns for Mortgage Insurance, Borrower shall pay the premiwns required to maintaiJl Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such tennination or until tennination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiwns). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiwns paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreemeots will not affect the amounts that Borrower bas agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreemeots will not increase the amount Borrower will owe for Mortgage Insurance, and they will not eotide Borrower to any refund. . -6A(WY) (0006).02 GP Initial&: 'l!> r Page 8 of 15 Form 3051 1101 [:""':"':+:';o"'L' .,','""."",.\ ';~H;!¡~¡!;~~~j~~1 ·:'::~~~:,1:::::::~ bf:·r.:;r\'ll:~::k::;_: ¡illf:j~~;IJP ....--............. 0923817 000445 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance UDder the Homeowners Protection Act of 1998 or any other Jaw. These rights may iocIude the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a ref....d of any Mortgage Insurance premiums that were UDearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous ProceeŒ; Foñeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensme the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursemelÚ or in a series of progress paymeots as the work is completed. Unless an agreemelÚ is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the swns secmed by this Security InstrwnelÚ, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the evelÚ of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the swns secmed by this Security InstrwnelÚ, whether or not then due, with the excess, if any, paid to Borrower. In the evelÚ 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 swns secmed by this Security InstrwnelÚ immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the swns secmed by this Security InstrwnelÚ shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the swns secmed immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the evelÚ of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the swns secmed immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the swns secmed by this Security InstrwnelÚ whether or not the swns 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 Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the swns secmed by this Security InstrwnelÚ, 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 if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgmelÚ, could result in forfeiture of the Property or other material impairmelÚ of Lender's interest in the Property or rights under this Security InstrwnelÚ. Borrower can cme such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgmelÚ, precludes forfeiture of the Property or other material impairmelÚ of Lender's interest in the Property or rights under this Security InstrwnelÚ. The proceeds of any award or claim for damages that are attributable to the impairmelÚ of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. _ -6A(WY) (0006).02 ~ Inlllalo: Z p Page g 0115 Fonn 3051 1101 ... '. .-..........-..".. U9~381.·~' 000446 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower sba11 not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings ~gainst any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modifY ainortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is 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 Lender and any other Borrower can agree to extend, modifY, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security 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 liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower sba11 not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge sba11 be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. 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 partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower 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 means. Notice to anyone Borrower sba11 constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notifY Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at anyone time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument sba11 not be deemed to have been given to Lender W1til actually received by Lender. If any notice required by this Secwity Instrument is also required under Applicable Law, the Applicable Law requirement will satisfY the corresponding requirement under this Security Instrument. e-6A(WY) (0006).02 ~ Pag. 100116 InllJall:[L Form 3051 1/01 oJ j:i:A:::jl~::::::::~ "I:" :':~1f:':':.:.) mm~~~m1~~lli~t~ ~rn~m¡~J ·..a.a_·......._. OIl.}",It"-')';.J1~ J-..~--, -. 000447 16. Goveruing Law; Severability; Rules of Construction. This Security Instrwnent shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligatiom contained in this Security Instrwnent are subject to any requirements and limitatiom of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be comtrued as a prohibition against agreement by contract. In the event that any provision or clause of this Secwity Instrwnent or the Note conflicts with Applicable Law, such conflict shall not affect other provisiom of this Security Instrwnent or the Note which can be given effect without the conflicting provision. As used in this Secwity Instrwnent: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrwnent. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" meam any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests tramferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the tramfer of title by Borrower at a future date to a pmchaser. 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 tramferred) without Lender's prior written coment, Lender may require immediate payment in full of all sums secmed by this Security Instrwnent. However, this option shall 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 all sums secmed by this Secwity Instrwnent. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Secwity Instrwnent without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrwnent discontinued at any time prior to the earliest of: (a) five days before sale of the Property pmsuant to any power of sale contained in this Security Instrwnent; (b) such other period as Applicable Law might specitÿ for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrwnent. Those conditions are that Borrower: (a) pays Lender all sums which then would be due WJder this Security Instrwnent and the Note as if no acceleration had occWTed; (b) cmes any default of any other covenants or agreements; (c) pays all expemes incWTed in enforcing this Security Instrwnent, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incWTed for the purpose of protecting Lender's interest in the Property and rights WJder this Security Instrwnent; and (d) takes such action as Lender may reasonably require to assme that Lender's interest in the Property and rights WJder this Secwity Instrwnent, and Borrower's obligation to pay the sums secmed by this Security Instrwnent, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expemes in one or more of the following foIIDS, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasmer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insmed by a federal agency, instrwnentality or entity; or (d) Electronic FWJds Tramfer. Upon reinstatement by Borrower, this Security Instrwnent and obligatiom secmed hereby shall remain fully effective as if no acceleration had occWTed. However, this right to reinstate shall not apply in the case of acceleration WJder 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 Secwity Instrwnent) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due WJder the Note and this Security Instrwnent and perfoIIDS other mortgage loan servicing obligatiom WJder the Note, this Security Instrwnent, and Applicable Law. There also might be one or more changes of the Loan Servicer umelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESP A requires in connection with a CD -6A(WY) (0005~02 í» Page 11 0116 InJtlal.:~ Form 3051 1/01 ... ·.-.'....,...,-......,-.".".,.., . ...._.......".~... O~23817 000448 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 obligatiom to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not asswned by the Note purchaser unless otherwise provided by the Note purchaser, . Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actiom pursuant to this Security Instrument or that alleges that 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 the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to t<llœ corrective action. If Applicable Law provides a time period which must elapse before certain action can be t<llœn, that time period will be deemed to be reasonable 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 shall be deemed to satisfy the notice and opportunity to t<llœ corrective action provisiom of this Section 20. 21. Hazardous SubstaDces. 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, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials contllinil1g asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any respome action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, conlribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause or pemút the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in comwner products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which 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 Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learm, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly t<llœ all necessary remedial actiom in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. CD -6A(WY) (0006).02 CI> Page 120115 Inhia:ß-./Z..- Form 3051 1/01 d': ::~:;:::;i~i~;l:~~~" j ~~¡rr~ .._,-----,~-" . . .. ._-...... . . ~ ..-" '.. ..-. .~_.' ~',..'. 092381.7 000449 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender sbaU give notice to Borrower prior to acceleration foUowing Borrower's breach of any covenant or agreement in this Security Instrument (but not' prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice sbaU specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice sbaU further inform Borrower of the right to reJnstate 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. H the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in fuU of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by AppUcable Law. Lender sbaU be entitled to coUect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. H Lender invokes the power of sale, Lender sbaU give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender sbaU give notice of the sale to Borrower in the manner provided in Section 15. Lender sbaU publish the notice of sale, and the Property sbaU be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale sbaU be applied in the following order: (3) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of aU swns secured by this Security Instrwnent, Lender shall release this Security InslIument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrwnent, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted WJder Applicable Law. 24. Waivers. Borrower releases and waives aU rights under and by virtue of the homestead exemption Jaws of Wyoming. _ -6A(WY) (0006).02 aÞ P_'3a1'6 Initials: C P Form 3051 1101 .., O~~J817 000450 BY SIGNING BELOW. Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: J.'fiA (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0059230169 e-6A(WY) (0006).02 ~ Page 14 of 15 Fonn 3051 1101 :t ;, ';':::~i~:~:~~:j I:jil;nj;~t;~]:~:lfj ~~~>.:~~/.:r:::,:-' :~~:~:~61i::::':' 092381~ 000451 The foregoing instrument was acknowledged before me this 6),-\~ U~r-. County ss: ~ O(¡ ~ I 2.oöl." STATE OF WYOMING, L:INCOLN by BUD PERRY My Commission Expires: 1.- 4 ~ OC\ ~LÅJONES-NOTAAVPUBUC County of. Stale of Lincoln Wyoming My Commission ExpIres Feb. 4, 2009 ~ 0059230169 _ -6A(WY) (0005).02 ~ Inhials: Page 16 of 16 Fonn 3051 1/01 .r ---- .__._._---._-~- _.~ ----.......-. ". ._.. ._--~---- >-.- -~. "'-~' O~~381~¡ 000452 ADJUSTABLE RATE RIDER 0059230169 (LmOR Six-Month Index (As Published In The Wall Street Journal) - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 24th day of October, 2006 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust{ or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to PIRST HORIZON HOME LOAN CORPORATION ("Lender") of the same date and covering the property described in the Security Instrument and located at: 1740 ltBNNINGTON BURTON ROAD, APTON, Wyoming 83110 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 9 . 500 % . 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 November, 2008 , and on that day every 6th month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Beginning with the fust Change Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for six month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index. " If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding SIX AND P:IVB-HONDBRDTHS percentage points ( 6.050 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal 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 required to pay at the fust Change Date will not be greater than 12.500 % or less than 9 . 500 % . Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than ONE &: 00/100 percentage points ( 1. 00 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 16.500 % or less than the initial rate of 9.500 %. .:~::~:: ~:::::::~;' 1,¡ :;! f¡~ ~~I:j:::::~,. ~f F1I6D44P MULTlSTATE AWUSfABLE RATE RIDER 0605 SiogIe Famlly - Modified FNMA form 3138 Page 1 of 2 " ::::~:~~~:::::»::¡ ':i:':,:~~~:j:.:";;.¡ .·.·.·.·.'il.~.'L·I·'-'·. . 092381::, o0004í53 (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The DOtice 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. W¡:À- (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower MULTlSTATE ADJUSTABLE RATE RIDER 060S Siugle Family - Modified FNMA form 3138 Page 2 of 2 FH6D44Q .r o~~a817 000454 1-4 FAMILY RIDER (Assignment of Rents) THIS 1-4 FAMILY RIDER is made this 24th day of October, 2006 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to PIRST HORIZON HOMB LOAN CORPORATION (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 1740 KENNINGTON BURTON ROAD, APTON, Wyoming 83110 [Property Address] 1-4 FAMilY COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADDITIONAL PROPERTY SUBJECT TO THE SECURITY INSTRUMENT. In addition to the Property described in the Security Instrument, the following items now or hereafter attached to the Property to the extent they are fixtures are added to the Property description, and shall also constitute the Property covered by the Security Instrument: building materials, appliances and goods of every nature whatsoever now or hereafter located in, on, or used, or intended to be used in connection with the Property, including, but not limited to, those for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light, fire prevention and extinguishing apparatus, security and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached mirrors, cabinets, paneling and attached floor coverings, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security Instrument. All of the foregoing together with the Property described in the Security Instrument (or the leasehold estate if the Security Instrument is on a leasehold) are referred to in this 1-4 Family Rider and the Security Instrument as the "Property." B. USE OF PROPERTY; COMPLIANCE WITH LAW. Borrower shall not seek, agree to or make a change in the use of the Property or its zoning classification, unless Lender has agreed in writing to the change. Borrower shall comply with all laws, ordinances, regulations and requirements of any governmental bOdy applicable to the Property. C. SUBORDINATE LIENS. Except as permitted by federal law, Borrower shall not allow any lien inferior to the Security Instrument to be perfected against the Property without Lender's prior written permission. D. RENT lOSS INSURANCE. Borrower shall maintain insurance against rent loss in addition to the other hazards for which insurance is required by Section 5. 0059230169 MUlTISTATE 1- 4 FAMilY RIDER - Fannie MaelFreddie Mac UNIFORM INSTRUMENT Form 31701/01 e-57R (0411) If) pa;e 1 of 3 Initials: 1lI.- ~:)~~~~g~ Solutions, Inc. 11111111111111111111111111111111111 ~""T"~""r~'~ ;';.¡O.I},.,.,<;. ,.<i.'· ~.:~:.:,~i~;:F o~;~~·~ .::?~. i,·~:~~i~¡li :~æ~~;;~if~~l~ '· J.·~"'i"<1:¿...~~~{ ~~!~O::.!L".,.~), ¡~Æ ~m;~~!r! 0923817 000455 . . E. -BORROWER'S RIGHT TO REINSTATE- DELETED. Section 19 is deleted. F. BORROWER'S OCCUPANCY. Unless Lender and Borrower otherwise agree in writing, Section 6 concerning Borrower's occupancy of the Property is deleted. G. ASSIGNMENT OF LEASES. Upon Lender's request after default, Borrower shall assign to Lender all leases of the Property and all security deposits made in connection with leases of the Property. Upon the assignment, Lender shall have the right to modify, extend or terminate the existing leases and to execute new leases, in Lender's sole discretion. As used in this paragraph G, the word "lease" shall mean "sublease" if the Security Instrument is on a leasehold. H. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION. Borrower absolutely and unconditionally assigns and transfers to Lender all the rents and revenues ("Rents") of the Property, regardless of to whom the Rents of the Property are payable. Borrower authorizes lender or Lender's agents to collect the Rents, and agrees that each tenant of the Property shall pay the Rents to lender or Lender's agents. However, Borrower shall receive the Rents until: (i) Lender has given Borrower notice of default pursuant to Section 22 of the Security Instrument, and (ii) Lender has given notice to the tenant(s) that the Rents are to be paid to Lender or Lender's agent. This assignment of Rents constitutes an absolute assignment and not an assignment for additional security only. If Lender gives notice of default to Borrower: (i) all Rents received by Borrower shall be held by Borrower as trustee for the benefit of Lender only, to be applied to the sums secured by the Security Instrument; (ii) Lender shall be entitled to collect and receive all of the Rents of the Property; (iii) Borrower agrees that each tenant of the Property shall pay all Rents due and unpaid to lender or Lender's agents upon Lender's written demand to the tenant; (iv) unless applicable law provides otherwise, all Rents collected by Lender or lender's agents shall be applied first to the costs of taking control of and mana~ing the Property and collecting the Rents, including, but not limited to, attorney's fees, receiver's fees, premiums on receiver's bonds, repair and maintenance costs, insurance premiums, taxes, assessments and other charges on the Property, and then to the sums secured by the Security Instrument; (v) Lender, Lender's agents or any judicially appointed receiver shall be liable to account for only those Rents actually received; and (vi) lender shall be entitled to have a receiver appointed to take possession of and mana~e the Property and collect the Rents and profits derived from the Property without any showing as to the inadequacy of the Property as security. If the Rents of the Property are not sufficient to cover the costs of taking control of and managing the Property and of collecting the Rents any funds expended by Lender for such purposes shall become indebtedness of Borrower to Lender secured by the Security Instrument pursuant to Section 9. Borrower represents and warrants that Borrower has not executed any prior assignment of the Rents and has not performed, and will not perform, any act that would prevent Lender from exercising its rights under this paragraph. Lender, or lender's agents or a judicially appointed receiver, shall not be required to enter upon, take control of or maintain the Property before or after giving notice of default to Borrower. However, Lender, or Lender's agents or a judicially appointed receiver, may do so at any time when a default occurs. Any application of Rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment of Rents of the Property shall terminate when all the sums secured by the Security Instrument are paid in full. 0059230169 e-S7R (0411) ~ Page 2 of 3 Initials: '/l (1 fo:m3170 1101 -.......'-">....,. .......-....,. .-, ....... ..................... O~~:.i81.7 000456 I. CROS5-DEFAUL T PROVISION. Borrower's default or breach under any note or agreement in which Lender has an interest shall be a breach under the Security Instrument aoo Lender may invoke any of the remedies permitted by the Security Instrument. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this 1-4 Family Rider. B~ (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0059230169 .-57R (0411) œ Page 3 of 3 Form 31701101 ~"i'.""".'..""'? ':'¡'I'h':^";:;;:';~/~ ·~:~1'lSJUž0 I;!,~t~;::<":"':':l:'-: ~:::~:!:~;:~~::~;:: Æ~~imr} ".CO'-;......;._. .... .. ..J"......,.,_.......·.·.t"'...~...'"".-.-....~..,~- ..".~ '. .....:...:.:.::I~....._. '.-," ....IiCi'·._'~·,...' "" '.- '_~"."'~':' . ";' .~. '_i..'''~.''; f··,'.·.',....,~.·,!o.-: __¡ o 92381.t7( Oct 2 2006 11:'òoO~~~ ORDER NUMBER: 'NTL-I061 EXHmlT "A" PART OF SECTION 14, T32N R119W OF mE 6TH P.M., LINCOLN COUNTY, WYOMING BEINQ MORE PARTJCULARL Y DESCRIBED AS FOLLOWS: BEGINNING AT A POINT WHICH IS THE S01.JI1ŒAST CORNER OF THE NE~5WY. OF SAID SECTION 14 AND RUNNINQ THENCE NORm 232 FEET; : THENCE WEST 150 FEET; TIŒNCE SOUfH 232 FEET; 1HENCE EAST 150 FEET TO 1HE POINT OF BEGINNING. '"