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HomeMy WebLinkAbout926276 ""--- . - Return To: FIRST INTERSTATE BANK P.O. BOX 40, CASPER. WY 82602-0040 Prepared By: JOSEPHINE M DEPAOLO [Space Above This Line For Recording Data] MORTGAGE RECEIVED 1/23/2007 at 3:24 PM RECEIVING # 926276 BOOK: 646 PAGE: 871 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are ~so provided in Section 16. u , (A) "Security Instrument" means this document, which is dated together with ~l Riders to this document. (B) "Borrower" is AMY S LERCH, AN UNMARRI ED PERSON January 22, 2007 J tp Ii, Borrower is the mortgagor under this Security Instrument. (C) "Lender" is FIRST INTERSTATE BANK Lender is a A CORPORATION organized and existing under the laws of STATE OF MONTANA 47LERCHAMY WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 .. -6(WY) 10006) Page ~Of 15 MW 05/00,01 InitiaIS:~ VMP MORTGAGE FORMS - (eOO)521-7291 I II~I~ ~~ II~ ~I~I II~ II~ 1111 0926276 000872 Lender's address is PO BOX 11095, JACKSON, WY 83002 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated Janua ry 22. 2007 The Note states that Borrower owes Lender One Hundred Forty Ei ght Thousand and no /1 0 0 Dollars (U.S. $148.000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than February 1, 2037 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property. " (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means ~1 Riders to this Security Instrument that are executed by Borrower. The following R~ders are to be executed by Borrower [check box as applicable]: I [] Adjustable Rate Rider D Condominium Rider D Second Home Rider [[] B~loon Rider DO Planned Unit Development Rider D 1-4 Family Rider [] VA Rider D Biweekly Payment Rider D Other(s) [specify] (II) "Applicable Law" means ~1 controlling applicable feder~, state and 10c~ statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as ~l applicable fin~, non-appe~able judici~ opinions. (I) "Community Association Dues, Fees, and Assessments" means ~l dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic termin~, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financi~ institution to debit or credit an account. Such term includes, but is not limited to, point-of-s~e transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of ~l or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the v~ue and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) princip~ and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (0) "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 addition~ or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESP A" refers to ~1 requirements and restrictions that are imposed in regard to a "feder~ly related mortgage loan" even if the Loan does not qu~ify as a "feder~ly related mortgage loan" under RESPA. 47LERCHAMY G-61WY1100061 @ Page 2 of 1 6 InltialS:OC Form 3051 1/01 9262"';6 O. 000873 (P) IISuccessor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and ~1 renew~s, extensions and modifications of the Note; and (ii) 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 Lender and Lender's successors and assigns, with power of s~e, the following described property located in the COUNTY of LINCOLN [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 107 IN STAR VALLEY RANCH PLAT 6, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THREOF. Parcel ID Number: 35183040105200 33 FIR PLACE STAR VALLEY RANCH ("Property Address "): which currently has the address of [Street] [City] , Wyoming 83127 [Zip Code] TOGETHER WITH ~1 the improvements now or hereafter erected on the property, and ~1 easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions sh~1 also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the II Property. II BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend gener~ly the title to the Property against ~1 claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for nation~ use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering re~ property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower sh~1 pay when due the princip~ of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower sh~1 ~so pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument sh~1 be made in U.S. currency. However, if any check or other instrument received by Lender as paymrt under the Note or this 47LERCHAMY Inltials:æ G-6(WYII00061 Page 3 of 16 Form 3051 1/01 @ 09Z62?6 000874 Security Instrument is returned to Lender unpaid, Lender may require that any or ~1 subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a feder~ agency, instrument~ity, 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 return any payment or partial payment if the payment or parti~ payments are insufficient to bring the Loan current. Lender may accept any payment or parti~ payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or parti~ 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 sh~1 either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding princip~ b~ance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender sh~1 relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, ~l payments accepted and applied by Lender sh~1 be applied in the following order of priority: (a) interest due under the Note; (b) princip~ due under the Note; (c) amounts due under Section 3. Such payments sh~l be applied to each Periodic Payment in the order in which it became due. Any remaining amounts sh~1 be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the princip~ b~ance 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 sh~1 be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to princip~ due under the Note sh~l not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower sh~l pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain, priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and ~l insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are c~led "Escrow Items." At origination or at any time during the term 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 sh~1 be an Escrow Item. Borrower sh~1 promptly furnish to Lender ~1 notices of amounts to be paid under this Section. Borrower sh~1 pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or ~l Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or ~1 Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower sh~1 pay directly, when and where payable, the amounts 47LERCHAMY .. -6(WY) (00051 @ Page 4 of 16 Inltlals:œ Form 3051 1/01 O~j26276 000875 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, sh~1 furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts sh~l for ~1 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 obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower sh~1 then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or ~l Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower sh~1 pay to Lender ~1 Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds sh~1 be held in an institution whose deposits are insured by a feder~ agency, instrument~ity, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Feder~ Home Loan Bank. Lender sh~1 apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender sh~1 not charge Borrower for holding and applying the Funds, annu~ly analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest sh~l be paid on the Funds. Lender sh~l give to Borrower, without charge, an annu~ accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defmed under RESPA, Lender sh~1 account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower sh~1 pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender sh~1 notify Borrower as required by RESPA, and Borrower sh~1 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 ~1 sums secured by this Security Instrument, Lender sh~1 promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower sh~1 pay ~1 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 sh~1 pay them in the manner provided in Section 3. Borrower sh~1 promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, leg~ proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the 47LERCHAMY InltlaIS:~ G -6(WY) 10005) @ Page 6 of 1 6 Form 3051 1/01 O~~26276 000876 lien. Within 10 days of the date on which that notice is given, Borrower sh~1 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 re~ estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower sh~1 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 sh~1 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 sh~l be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right sh~1 not be exercised unreasonably. 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 sh~1 ~so be responsible for the payment of any fees imposed by the Feder~ Emergency Management Agency in connection with the review of any flood zone detennination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage sh~1 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 sh~1 become addition~ debt of Borrower secured by this Security Instrument. These amounts sh~1 bear interest at the Note rate from the date of disbursement and sh~l be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renew~s of such policies sh~l be subject to Lender's right to disapprove such policies, sh~1 include a standard mortgage clause, and sh~1 name Lender as mortgagee and/or as an addition~ loss payee. Lender sh~1 have the right to hold the policies and renew~ certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renew~ notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy sh~1 include a standard mortgage clause and sh~1 name Lender as mortgagee and/or as an addition~ 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, sh~l be applied to restoration or repair of the Property, if the restoration or repair is economic~ly 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 sh~1 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 sh~1 not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower sh~1 not be paid out of the insurance proceeds and sh~1 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 sh~l be applied to the sums secureµ by this Security Instrument, whether or not then due, with 47LERCHAMY InltlalS:~ . -6/WY) 100051 (!) Page 6 of 16 Form 3051 1/01 O~i26276 000877 the excess, if any, paid to Borrower. Such insurance proceeds sh~l be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond 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, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under ~l 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 not then due. 6. Occupancy. Borrower sh~1 occupy, establish, and use the Property as Borrower's princip~ residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's princip~ residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent sh~1 not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower sh~1 not destroy, damage or impair the Property , ~low the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower sh~1 maintain the Property in order to prevent the Property from deteriorating or decreasing in v~ue due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economic~ly feasible, Borrower sh~1 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 sh~1 be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not 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 sh~l give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower sh~1 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 materi~ly false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with materi~ information) in connection with the Loan. Materi~ representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's princip~ residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a leg~ 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 v~ue of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable 47LERCHAMY Inlti.IS:~ _ -6IWYI (0006) @ Page 7 of 16 Form 3051 1/01 O~)26276 000878 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 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 ~1 actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 sh~1 become addition~ debt of Borrower secured by this Security Instrument. These amounts sh~1 bear interest at the Note rate from the date of disbursement and sh~1 be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower sh~1 comply with ~1 the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title sh~1 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 sh~1 pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower sh~l pay the premiums required to obtain coverage substanti~ly equiv~ent to the Mortgage Insurance previously in effect, at a cost substanti~ly equiv~ent to the cost to Borrower of the Mortgage Insurance previously in effect, from an ~ternate mortgage insurer selected by Lender. If substanti~ly equiv~entMortgage Insurance coverage is not available, Borrower sh~1 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 sh~1 be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender sh~l not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower sh~1 pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. 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 ev~uate their tot~ risk on ~1 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 premiums). 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 premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. 47LERCHAMY '".,,~ . ·6(WY) 10006) Page e of 16 Form 3051 1/01 @ O~j26276 000879 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and sh~l be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds sh~1 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 sh~1 have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender sh~1 not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds, If the restoration or repair is not economic~ly feasible or Lender's security would be lessened, the Miscellaneous Proceeds sh~l be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds sh~l be applied in the order provided for in Section 2. In the event of a tot~ taking, destruction, or loss in v~ue of the Property, the Miscellaneous Proceeds sh~l be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a parti~ taking, destruction, or loss in v~ue of the Property in which the fair market v~ue of the Property immediately before the parti~ taking, destruction, or loss in v~ue is equ~ to or greater than the amount of the sums secured by this Security Instrument immediately before the parti~ taking, destruction, or loss in v~ue, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument sh~1 be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the parti~ taking, destruction, or loss in v~ue divided by (b) the fair market v~ue of the Property immediately before the parti~ taking, destruction, or loss in value. Any b~ance sh~1 be paid to Borrower. In the event of a parti~ taking, destruction, or loss in v~ue of the Property in which the fair market value of the Property immediately before the parti~ taking, destruction, or loss in v~ue is less than the amount of the sums secured immediately before the parti~ taking, destruction, or loss in v~ue, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds sh~1 be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, 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 sh~l be in default if any action or proceeding, whether civil or crimin~, is begun that, in Lender's judgment, could result in forfeiture of the Property or other materi~ impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other materi~ impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and sh~1 be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property sh~1 be applied in the order provided for in Section 2. 47LERCHAMY Inltlalsæ .. -6IWYI (0006) @ Page 9 of 16 Form 3051 1/01 O~i2627G 000880 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 sh~1 not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender sh~l not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the origin~ 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, sh~1 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 sever~. 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 person~ly 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, sh~1 obtain ~1 of Borrower's rights and benefits under this Security Instrument. Borrower sh~1 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 sh~1 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 v~uation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower sh~1 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 fin~ly 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 sh~1 be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums ~ready collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the princip~ owed under the Note or by making a direct payment to Borrower. If a refund reduces princip~, the reduction will be treated as a parti~ 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 sh~l be deemed to have been given to Borrower when mailed by first class mail or when actu~ly delivered to Borrower's notice address if sent by other means. Notice to anyone Borrower sh~1 constitute notice to ~1 Borrowers unless Applicable Law expressly requires otherwise. The notice address sh~1 be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower sh~1 promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower sh~1 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 sh~l 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 sh~1 not be deemed to have been given to Lender until actu~ly received by Lender. If any notice required by this Security Instrument is ~so required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 47LERCHAMY . -6(WY) (0006) @ InitJalS~ Page 10 of 15 Form 3051 1/01 O~126276 000881 16. Governing Law; Severability; Rules of Construction. This Security Instrument sh~1 be governed by feder~ law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly ~low the parties to agree by contract or it might be silent, but such silence sh~l not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict sh~1 not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender sh~l mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular sh~1 mean and include the plur~ and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower sh~1 be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those benefici~ interests transferred in a bond for deed, contract for deed, installment s~es contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If ~1 or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natur~ person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of ~1 sums secured by this Security Instrument. However, this option sh~l not be exercised by Lender if such exercise is prohibited by Applicable Law, If Lender exercises this option, Lender sh~l give Borrower notice of acceleration. The notice sh~1 provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before s~e of the Property pursuant to any power of s~e contained in this Security Instrument; (b) such other 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) pays Lender ~1 sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays ~1 expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and v~uation fees, and other fees incurred for the purpose of protecting Lender's interest 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 Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, sh~1 continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a feder~ agency, instrument~ity or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby sh~1 remain fully effective as if no acceleration had occurred. However, this right to reinstate sh~l not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a parti~ interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A s~e might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There ~so might be one or more changes of the Loan Servicer unrelated to a s~e 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 47LERCHAMY .. -6(WYI (00061 @ Page 11 of 16 In t¡aIS:~ Form 3051 1/01 O~J'2GZ76 000882 requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judici~ action (as either an individu~ litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that ~leges 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 ~leged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 sh~1 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 Environment~ Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materi~s containing asbestos or form~dehyde, and radioactive materi~s; (b) "Environment~ Law" means feder~ laws and laws of the jurisdiction where the Property is located that relate to he~th, safety or environment~ protection; (c) "Environmental Cleanup" includes any response action, remedi~ action, or removal action, as defined in Environment~ Law; and (d) an "Environment~ Condition" means a condition that can cause, contribute to, or otherwise trigger an Environment~ Cleanup. Borrower sh~1 not cause or pennit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower sh~l not do, nor ~low anyone else to do, anything affecting the Property (a) that is in violation of any Environment~ Law, (b) which creates an Environment~ Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the v~ue of the Property. The preceding two sentences sh~1 not apply to the presence, use, or storage on the Property of sm~1 quantities of Hazardous Substances that are gener~ly recognized to be appropriate to norm~ residenti~ uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower sh~1 promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any government~ or regulatory agency or private party involving the Property and any Hazardous Substance or Environment~ Law of which Borrower has actu~ knowledge, (b) any Environment~ 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 v~ue of the Property. If Borrower learns, or is notified by any government~ or regulatory authority, or any private party, that any remov~ or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower sh~1 promptly take ~1 necessarytremedi~ actions in accordance with Environment~ Law. Nothing herein sh~1 create any obligation on Lender for an Environment~ Cleanup. 47LERCHAMY G-6IWYII0006) @ Page 12 of 16 Inltlalæ Form 3051 1/01 O~j26276 000883 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender sh~1 release this Security Instrument. Borrower sh~1 pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives ~1 rights under and by virtue of the homestead exemption laws of Wyoming. 47LERCHAMY G-6IWY) 100061 @ Page 13 of 1 5 InitialS~ Form 3051 1/01 O~iZ6Z76 000884 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: ~()&scA~d~ (SeW) AM S ERC -Borrower (Se~) -Borrower (Se~) -Borrower (Se~) -Borrower (Se~) -Borrower (Se~) -Borrower (Se~) -Borrower (Se~) -Borrower 47LERCHAMY G-6IWY) (0006) @ Page 14 of 1 5 Form 3051 1/01 O~j26276 STATE OF WYOMING, -b:I~JCOb:N 1#J;t The foregoing instrument was acknowledged before me this by AMY S LERCH My Commission EXPiresJØ J2Aó/ó _.r< JASMINE DeSHAW - NOTARY PUBLIC COUNTY OF ,/, STATE OF TETON WYOMING MY COMMISSION EXPIRES SEPTEMBER 27, 2010 47LERCHAMY G -6(WY) (0005) @ County ss: Janua ry 22, 2007 Page 16 of 1 6 .~ Initials: 000885 Form 3051 1/01 O~:-}2627b 000B86 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 22nd day of Janua ry 2007 , 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 FIRST INTERSTATE BANK, A CORPORATION (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 33 FIR PLACE,STAR VALLEY RANCH,WY 83127 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in (the "Declaration"). The Property is a part of a planned unit development known as STAR VALLEY RANCH [Name of Planned Unit Development] (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. MW 08/00.01 47LERCHAMY 4700240950 MUlTISTATE PUD RIDER - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3150 1/01 Iì ./) MW 11/04 Page 1 of 3 Initials: ~ .-7R (0411) VMP Mortgage Solutions, Inc. (800)521-7291 (!) IIIII~III~ 1111 ~I~ III~ 1111 O~i26276 000887 B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to, Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender'~ prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 47LERCHAMY .-7R (0411) @ Page 2 of 3 Initials:~ Form 3150 1/01 4700240950 O~:)~~6276 000888 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this PUD Rider. ~~~ (Seal) AMY S L~C -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 47LERCHAMY .-7R (0411) @ 4700240950 Page 3 of 3 Form 3150 1/01