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Home My WebLink About930317 00(1 .,.~_ . 50- 6010715319 Return To: FHHL - POST CLOSING MAIL ROOM 1555 W WALNUT HILL LN #200 MC 6712 IRVING, TX 75038 'Prepared By: FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK N.A. 1315 SOUTH HIGHWAY 89, SUITE 101 JACKSON, WY 83001 RECEIVED 6/13/2007 at 10:34 AM RECEIVING # 930317 BOOK: 661 PAGE: 837 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above This Line For Recording Data] 0061147864 MORTGAGE DEFINITIONS Words used in multiple sections of t1llS document are defined below and ot1ler words are defined in Sections 3, 11, 13, 18,20 and 21. Certain rules regarding the usage of words used in t1lis document are also provided in Section 16. \1\ (A) "Security Instrument" means t1llS docmnent, wlllch is dated June 8th, 2007 together Wit1l all Riders to t1llS document. (B) "Borrower" is JOSEPH L HALE & VICTORIA E HALE, Husband & Wife / Borrower is the mortgagor under this Security Instrument. (C) "Lender" is FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK N.A. Lender is a NATIONAL BANK organized and existing under t1le laws of THE UNITED STATES OF AMERICA WYOMING -Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT .-6(WY) (0005).01 ® Page 1 of 15 Initials: Form 3051 1/01 TJ-I-. V. It ~ 1111111I111111111111111111111111111 VMP Mortgage Solutions, Ino. 09JQ31.¡-~j 000838 Lender's address is 4000 HORIZON WAY, IRVING, TEXAS 75063 Lender is the mortgagee under tllis Security Instrument. (D) "Note" means tlle promissory note signed by Borrower and dated June 8th, 2007 The Note states tllat Borrower owes Lender ONE HUNDRED NINETY EIGHT THOUSAND EIGHT HUNDRED FIFTY & 00/100 Dollars (U.S. $ 198, 850.00 ) plus interest. Borrower has promised to pay tlÜs debt in regular Periodic Payments and to pay the debt in full not later than July 1st, 2037 (E) "Property" means tlle property tllat is described below under the heading "Transfer of Rights in the Property. " (F) "Loan" means tlle debt evidenced by tlle Note, plus interest, any prepayment charges and late charges due under tlle Note, and all sums due under tlllS Security Instrument, plus interest. (G) "Riders" means all Riders to tlllS Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: D Adjustable Rate Rider D Balloon Rider D VA Rider D Condominium Rider D Platmed Unit Development Rider D Biweekly Payment Rider D Second Home Rider D 1-4 Family Rider D Otller(s) [specify] (II) "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 opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and otller charges tllat are imposed on Borrower or tlle Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, otller than a transaction originated by check, draft, or similar paper instrument, which is initiated tlrrough an electronic tenninal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such tenn includes, but is not limited to, point-of-sale transfers, automated teller maclline transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (I<:) "Escrow Items" means tllOse items tllat are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any tllird party (otller tllall insurance proceeds paid under tlle coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of tlle Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, tlle value and/or condition of tlle Property. (M) "Mortgage Insurance" means insurance protecting Lender against tlle nonpayment of, or default on, the Loan. (N) "Periodic Payment" meallS tlle regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any alllOunts under Section 3 of tlÜs Security Instrument. (0) "RESPA" means tlle 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 lnight be alllended from time to time, or allY additional or successor legislation or regulation tllat governs the same subject matter. As used in tlÜs Security Instrument, "RESPA" refers to all requirements and restrictions 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 RESPA. 0061147864 . -6(WY) (0005).01 @ . ,\ VH Initials: J' I-t. . . Form 3051 1/01 Page 2 of 15 OOO'¥,J9 .. "')'~a . (-~ 'CI. "'")I ,...\ ...-" "" ~'''' V...D...DVÙ~ ~. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY TIlis Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the perfonnance of Borrower's covenants and agreements under tilis Security Instrument and the Note. For tiÜs purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the County of Lincoln lType of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 5 OF SCHWAB ADDITION TO THE TOWN OF AFTON, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT FILED ON JUNE 2, 1980 AS INSTRUMENT NO. 540549 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. Parcel ill Number: County: 168 ADAMS STREET AFTON ("Property Address"): 12 -3218 -3 0 -2 - 02 -022.00 City: ~ah currently has tile address of [Street] [City],Wyoming 83110 [Zip Code] TOGETHER WITH all tile improvements now or hereafter erected on tile property, and all easements, appurtenances, and fixtures now or hereafter a part of tile property. All replacements and additions shall also be covered by tilis Security Instrument. All of tile foregoing is referred to in tilis Security Instrument as the "Property. " BORROWER COVENANTS tilat Borrower is lawfully seised of the estate hereby conveyed and has tile right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to tlle Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines unifonn covenants for national use and non-unifonn covenants Wit1l linlited variations by jurisdiction to constitute a unifonn security instrument covering real property. 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 tile principal of, and interest on, the debt evidenced by tile Note and any prepayment charges and late charges due under tile Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under tile Note and tilis Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or tilis Initials: T. If _ V· t+. 0061147864 . -6(WY) (0005).01 @ Page 3 of 16 Form 3051 1/01 ,3r\"'1I'" t'''¡ (j~ ~.1 J. J.. cf (~OO~340 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following fonns, 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, instnunentality, 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 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 Ümnediately prior to foreclosure. No offset or claÜn which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and tl1is Security Instrument or perfomling the covenants and agreements secured by tllis Security Instrument. 2. Application of Payments or Proceeds. Except as otllerwise described in tllis Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under tlle Note; (b) principal due under tlle Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in tlle order in which it became due. Any remaining amounts shall be applied first to late charges, second to any otller amounts due under tl1is Security Instnunent, and tllen to reduce the principal balance of tlle Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, tlle payment may be applied to the delinquent payment and the late charge. If more tllan one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to tlle repayment of tlle Periodic Payments if, and to tlle extent tllat, each payment can be paid in full. To tlle extent that any excess exists after tlle 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 tllen as described in tlle Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under tlle Note shall not extend or postpone tlle due date, or change tlle amount, of tlle Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on tlle day Periodic Payments are due under tlle Note, until tlle Note is paid in full, a sum (tlle "Funds") to provide for payment of amounts due for: (a) taxes and assessments and otller items which can attain priority over tl1is Security Instrument as a lien or encmnbrance on tlle Property; (b) leasehold payments or ground rents on tlle Property, if any; (c) premimns for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of tlle payment of Mortgage Insurance premiums in accordance Witll tlle provisions of Section 10. These items are called "Escrow Items. " At origination or at any time during tlle tenn of tlle Loan, Lender may require tllat COlml1Ul1Íty 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 fun1Ísh to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender tlle Funds for Escrow Items unless 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 tlle event of such waiver, Borrower shall pay directly, when and where payable, tlle anlOunts due for any Escrow Items for wl1ich payment of 0061147864 . -6(WY) (0005).01 ® Initials: J: H- . V I \+. Page 4 of 15 Form 3051 1/01 O~3GJ::t;~ ~)00841. 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 make 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 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 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 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 maxinmm 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 shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Banle Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, ammally 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 shall be paid on the Funds. Lender shall give to Borrower, without charge, an ammal accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESP A, Lender shall 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 shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the anlount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by tIùs Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over tIùs Security Instrument, leasehold payments or ground rents on tIle Property, if any, and Community Association Dues, Fees, and Assessments, if any. To tIle extent tIlat tIlese items are Escrow Items, Borrower shall pay tIlem in tIle manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over tIlis Security Instrument unless Borrower: (a) agrees in writing to tIle payment of the obligation secured by tIle lien in a manner acceptable to Lender, but only so long as Borrower is perfonning such agreement; (b) contests tIle lien in good faitIl by, or defends against enforcement of tIle lien in, legal proceedings wlùch in Lender's opÌ1ùon operate to prevent tIle enforcement of tIle lien wlùle tIlose proceedings are pending, but only until such proceedings are concluded; or (c) secures from tIle holder of the lien an agreement satisfactory to Lender subordinating tIle lien to this Security Instrument. If Lender deternùnes that any part of tIle Property is subject to a lien which can attain priority over tI1Ìs Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 0061147864 . -6(WY) (0005).01 ® Initials: J. r\-, V· I-t. Form 3051 1/01 Page 5 of 15 ¡ ').'<L\ eN"\)~ "E ...~~~ JoJo..{JU'-'SJ..'I..·· ,r~OO1Q4? '''''. .....,> lilt. 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 tlns Loan. 5. Property Insurance. Borrower shall ketp tlle improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included witllin the term "extended coverage," and any other hazards including, but not limited to, eartllquakes and floods, for wInch Lender requires insurance. TIÜs insurance shall be maintained in the amounts (including deductible levels) and for tlle periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing tlle 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 Witll tlÜs Loan, eitller: (a) a one-time charge for flood zone detemlination, certification and tracldng services; or (b) a one-time charge for flood zone detennination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such detennination or certification. Borrower shall also be responsible for the payment of any fees imposed by tlle Federal Emergency Management Agency in connection Witll tlle review of any flood zone determination 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 shall cover Lender, but might or might not protect Borrower, Borrower's equity in tlle Property, or the contents of tlle Property, against any risk, hazard or liability and might provide greater or lesser coverage tllan was previously in effect. Borrower acknowledges tllat tlle cost of tlle insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under tllis Section 5 shall become additional debt of Borrower secured by tlÜs Security Instrument. These amounts shall bear interest at tlle Note rate from tlle 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 tlle 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 fonn of insurance coverage, not otllerwise required by Lender, for damage to, or destruction of, tlle 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, whetller or not tlle 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 tlle right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure tlle work has been completed to Lender's satisfaction, provided tllat such inspection shall be undertaken promptly. Lender may disburse proceeds for tlle repairs and restoration in a single payment or in a series of progress payments as tlle 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, tlle insurance proceeds shall be applied to 0061147864 . -6(WY) (0005).01 @ Initials: j. ~ . V, \t. Form 3051 1/01 Page B of 15 J., 'l'\ ")\ (¡'j) "'ì,fl' I ! l, ~OÛ)V~..L ;;' (~OOS43 the sums secured by tillS Security Instrument, whetiler or not tilen due, with tile excess, if any, paid to Borrower. Such insurance proceeds shall be applied in tile order provided for in Section 2. If Borrower abandons tile Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond witllin 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, tllen Lender may negotiate and settle tlle 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 otllerwise, 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 tlle 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 tlle insurance proceeds eitller 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 shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after tlle execution of this Security Instrument and shall continue to occupy tlle 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 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 shall not destroy, damage or impair tlle Property, allow the Property to deteriorate or commit waste on tlle Property. Whether or not Borrower is residing in tlle Property, Borrower shall maintain tlle Property in order to prevent tlle Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 tllat repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid furtller deterioration or danlage. 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 tlle work is completed. If tlle insurance or condemnation proceeds are not sufficient to repair or restore tlle Property, Borrower is not relieved of Borrower's obligation for tlle completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of tlle Property. If it has reasonable cause, Lender may inspect the interior of the improvements on tile Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasolk'lble cause. 8. Bon'ower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at tlle direction of Borrower or Witll Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender Witll material infonnation) in connection with tlle Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perfoml the COVel1£'lnts and agreements contained in tlllS Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in tlle Property and/or rights under tlllS 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 tile Property, tllen Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in tile Property and rights under tiÜs Security Instrument, including protecting and/or assessing tlle value of the Property, and securing and/or repairing tlle 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 attomeys' fees to 0061147864 . -6(WY) (0005).01 @ Initials 'f-).\.. V. \4. Form 3051 1/01 Page 7 0115 "'3' '0 ~~: :11 ';;1 J~.I " '.' ~ l¡. {~OO'~44 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 all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by tIlis Security Instrument. These amounts shall bear interest at the Note rate from tile date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If tIlis Security Instrument is on a leasehold, Borrower shall comply WitIl all the provisions of the lease. If Borrower acquires fee title to tile Property, the leasehold and tile 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 maldng tile Loan, Borrower shall pay tile 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 tile mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay tile premiums required to obtain coverage substantially equiv~ùent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to tile 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 tile anlOunt of tile 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, notwitllstanding tile fact tImt 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 tile period tIlat Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward tile 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 tile premiums for Mortgage Insurance, Borrower shall pay tile 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 Witll any written agreement between Borrower and Lender providing for such temlination or until tennination is required by Applicable Law. NotIling in tIlis Section 10 affects Borrower's obligation to pay interest at tile rate provided in tile Note. Mortgage Insurance reimburses Lender (or any entity tIlat purchases the Note) for certain losses it may incur if Borrower does not repay tile Loan as agreed. Borrower is not a party to tile Mortgage Insurance. Mortgage insurers evaluate tIleir total risk on all such insurance in force from time to time, and may enter into agreements Witll otIler parties tIlat share or modify tIleir risk, or reduce losses. These agreements are on tenns and conditions tIlat are satisfactory to tile mortgage insurer and tile otIler party (or parties) to these agreements. These agreements may require tile mortgage insurer to make payments using any source of funds that tile mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of tIlese agreements, Lender, any purchaser of tile Note, ana tiler insurer, any reinsurer, any otIler entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts tIlat derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying tile mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of tile insurer's risk in exchange for a share of tile premiums paid to the insurer, tile arrangement is often termed "captive reinsurance." FurtIler: (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. 0061147864 . -6(WY) (0005).01 @ Initials: T 4- V, B. Form 3051 1/01 Page 8 of 15 (J~JOJJ..I(,? {~OO~4S (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 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 ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay 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 sums secured by tillS Security Instrument, whetIler or not tIlen due, WitIl tile excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in tile order provided for in Section 2. In tile event of a total taking, destruction, or loss in value of tile Property, tile Miscellaneous Proceeds shall be applied to tile sums secured by tIlis Security Instrument, whetIler or not tIlen due, with tile excess, if any, paid to Borrower. In tile event of a partial taldng, destruction, or loss in value of tile Property in which tile fair market value of tile Property immediately before tile partial taking, destruction, or loss in value is equal to or greater tIlan tile amount of tile smns secured by tIlis Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otIlerwise agree in writing, tile sums secured by tillS Security Instrument shall be reduced by tile amount of tile Miscellaneous Proceeds multiplied by tile following fraction: (a) tile total amount of tile sums secured immediately before tile partial taking, destruction, or loss in value divided by (b) tile fair market value of tile Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In tile event of a partial taking, destruction, or loss in value of the Property in wlllch the fair market value of tile Property immediately before tile partial taldng, destruction, or loss in value is less tIlan tile amount of the sums secured immediately before tile partial taking, destruction, or loss in value, unless Borrower and Lender otIlerwise agree in writing, tile Miscellaneous Proceeds shall be applied to tile sums secured by tIlis Security Instrument whetIler or not tile sums are tIleIl due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower tIlat tile Opposing Party (as defined in tile next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender witllln 30 days after tile date the notice is given, Lender is autIlorized to collect and apply the Miscellaneous Proceeds eitller to restoration or repair of tile Property or to the sums secured by tIÜs Security Instrument, whetIler or not tIlen due. "Opposing Party" means tile tIÜrd party tIlat owes Borrower Miscellaneous Proceeds or tile party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whetIler civil or criminal, is begun tIlat, in Lender's judgment, could result in forfeiture of tile Property or otIler material impainnent of Lender's interest in tile Property or rights under tIlis Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing tile action or proceeding to be dismissed Witll a ruling tIlat, in Lender's judgment, precludes forfeiture of tile Property or otIler material impainnent of Lender's interest in tile Property or rights under tIlis Security Instrument. The proceeds of any award or claim for damages tIlat are attributable to tile impainnent of Lender's interest in tile Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds tIlat are not applied to restoration or repair of tile Property shall be applied in tile order provided for in Section 2. 0061147864 . -6(WY) (0005).01 @ Initials ).1+. ~. \t-. Form 3051 1/01 Page 9 of 15 lJ930a1.",? {300~46 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 tins Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otIlerwise modify amortization of tile sums secured by tins 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 tIlird 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 tIlat Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs tins Security Instrument but does not execute tile Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, gnmt and convey the co-signer's interest in the Property under tile terms of tIlis Security Instrwnent; (b) is not personally obligated to pay tile sums secured by tins Security Instrument; and (c) agrees tIlat Lender and any otIler Borrower can agree to extend, modify, forbear or make any accOlllillodations WitIl regard to tile terms of tIlis Security Instrument or tile Note WitI10Ut tile co-signer's consent. Subject to tile provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under tIlis 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 tIlis Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of tIlis Security Instrument shall bind (except as provided in Section 20) and benefit tile successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services perfonned in connection WitIl Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under tIlis Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any otIler fees, tile absence of express autIlority in tIÜs Security Instrwnent to charge a specific fee to Borrower shall not be construed as a prohibition on tile charging of such fee. Lender may not charge fees tIlat are expressly prohibited by this Security lnstrwnent or by Applicable Law. If tile Loan is subject to a law winch sets maximum loan charges, and tIlat law is finally interpreted so tIlat tile interest or otIler loan charges collected or to be collected in cOlmection with the Loan exceed tile pennitted lilnits, then: (a) any such loan charge shall be reduced by tile amount necessary to reduce tile charge to tile pennitted limit; and (b) any sums already collected from Borrower which exceeded pennitted limits will be refunded to Borrower. Lender may choose to make tIlis refund by reducing tile principal owed under tile Note or by making a direct payment to Borrower. If a refund reduces principal, tile reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under tile 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 cOlmection WitIl tlÜs Security Instrument must be in writing. Any notice to Borrower in cOlmection WitIl tIlis Security Instrwnent 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 otIler means. Notice to anyone Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otIlerwise. The notice address shall be tile 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, tIlen Borrower shall only report a change of address tIrrough tIlat specified procedure. There may be only one designated notice address under tins Security Instrwnent 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 anotIler address by notice to Borrower. Any notice in cOlmection WitIl tlns Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrwnent is also required under Applicable Law, tlle Applicable Law requirement will satisfy tile corresponding requirement under tIÜs Security Instrwnent. 0061147864 . -6(WY) (0005).01 @ Initials: 7H-- V.lt· Form 3051 1/01 Page 1001 15 i-~'( ,"»(11"" .. V....,I'I.J)'U.J:l';:J {»OO;Ç4 ? 16. Governing Law; Severability; Rules of Construction. Tllis Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations 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 construed as a prollibition 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 shall not affect other provisions of tIlis Security Instrument or tile Note wllich can be given effect WitllOut tile conflicting provision. As used in tIlis Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of tile feminine gender; (b) words in the singular shall mean and include tile plural and vice versa; and (c) tile word "may" gives sole discretion Witllout any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of tile Note and of tIlis Security Instrument. 18. Transfer of the Prope¡"ty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in tile Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, tile intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of tile Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, tIlis 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 tIlan 30 days from tile date tile notice is given in accordance Witll Section 15 witllin which Borrower must pay all sums secured by tllis Security Instrument. If Borrower fails to pay tIlese sums prior to tlle expiration of tllis period, Lender may invoke any remedies pennitted by tllis Security Instrument Witllout furtIler notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have tlle right to have enforcement of tIlis Security Instrument discontinued at any time prior to tlle earliest of: (a) five days before sale of tile Property pursuant to any power of sale contained in this Security Instrument; (b) such otIler period as Applicable Law might specify for tlle tennination of Borrower's right to reinstate; or (c) entry of a judgment enforcing tIlis Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums wllich tllen would be due under this Security Instrument and tlle Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing tIlis Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and otller fees incurred for tlle purpose of protecting Lender's interest in tlle Property and rights under tllis Security Instrument; and (d) takes such action as Lender may reasonably require to assure tImt Lender's interest in tile Property and rights under tlÜs Security Instrument, and Borrower's obligation to pay tile sums secured by tllis Security Instrument, shall continue unchanged. Lender may require tllat Borrower pay such reinstatement sums and expenses in one or more of tlle following fonns, 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) Electr01lic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, tIÜs right to reinstate shall 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 partial interest in the Note (together witll tIlis Security Instrument) can be sold one or more times WitIlOut prior notice to Borrower. A sale might result in a change in tile entity (lmown as tile "Loan Servicer") tllat collects Periodic Payments due under tile Note and tlÜs Security Instrument and perfonns otIler mortgage loan servicing obligations under tile Note, tIlis Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If tIlere is a change of tile Loan Servicer, Borrower will be given written notice of tile change wlÜch will state the name and address of tile new Loan Servicer, the address to which payments should be made and any other infonnation RESPA requires in connection with a 0061147864 . -6(WY) (0005).01 ® Pagé 11 of 16 Initials: J: ~- V,·\-t. Form 3051 1/01 ·~.....,.f1 r'o,) <J::J 31lJ.J. j.. .~ 1:)OO~48 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 judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges 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 take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taleen, that time period will be deemed to be reasonable for purposes of tlns paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and tlle notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of tlns Section 20. 21. Hazardous Substances. As used in tlns Section 21: (a) "Hazardous Substances" are tllose substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and tlle following substances: gasoline, kerosene, otller flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials contairnng asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of tlle jurisdiction where tlle Property is located tllat relate to healtll, safety or enviromnental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Enviromnental Law; and (d) an "Environmental Condition" means a condition tllat can cause, contribute to, or otllerwise trigger an Enviromllental Cleanup. Borrower shall not cause or pennit tlle presence, use, disposal, storage, or release of any Hazardous Substances, or tlrreaten to release any Hazardous Substances, on or in tlle Property. Borrower shall not do, nor allow anyone else to do, anything affecting tlle Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to tlle presence, use, or release of a Hazardous Substance, creates a condition tllat adversely affects tlle value of tlle Property. The preceding two sentences shall not apply to tlle presence, use, or storage on tlle Property of small quantities of Hazardous Substances tllat are generally recognized to be appropriate to nonnal residential uses and to maintenance of tlle Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or otller action by any governmental or regulatory agency or private party involving tlle Property and any Hazardous Substance or Environmental Law of wInch 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 tlle presence, use or release of a Hazardous Substance which adversely affects tlle value of the Property. If Borrower learns, or is notified by any governmental or regulatory autllority, or any private party, that any removal or otller remediation of any Hazardous Substance affecting tlle Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance Witll Enviromnental Law. NOtlling herein shall create any oblißation on Lender for an Environmental Cleanup. 0061147864 . -6(WY) (0005).01 @ Initials 1: ~ . .oJ' \ \\¡ Form 3051 1/01 Page 12 of 15 Jl '~l' .-r'¡l ,. -\~ -crì, lIt: ~'11 \,jI...J'l,1J \..7 oW¡..L ,î' {~OO~49 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 accelemtion 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, l'easonable attorneys' fees and costs of title evidence. If Lendel' 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 IS, Lendel' 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 Ins trwnent , Lender shall release this Security Instrwnent. Borrower shall 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 pennitted under Applicable Law. 24. Waivel's. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. 0061147864 . -6(WY) (0005).01 @ Initials: T )+. VI tt Page 1301 15 Form 3051 1/01 .. .. ...,. C)J ,>I" t.-."J. .J"l) "il ¡.. " . '" <UJ 4(4" ¡; t,\·\r!ìO~:'-':O .___t'~...5 ...~...,,) 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{k; 1~ ~ (Seal) -Borrower V{(tM~ <¿, ttal-( VICTORIA E HALE (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0061147864 .-6(WY) (0006).01 ® Paga 14 of 15 Form 3051 1/01 \J~X]Ü31t/ ""j (iI. 0 '!Q r.;. ... ~~ ~I f ~~ }rtJ..I.J.t STATE OF WYOMING, LINCOLN County ss: by The foregoing instrument was acknowledged before me tI1is g7JJ d..cu.¡ of ~ I 2007 JOSEPH L HALE & VICTORIA E HALE My Commission Expires: 9'" / E - 07 Nmd!!~ /,.!~ GLORIA K. BYERS· NOTARY PUBLIC County of State ?f Uncoln Wyoming My Commission Expires Sept. 15, 2007 0061147864 ,~,\ .. V l\. Initials: J \ ~ ' I) . Form 3051 1/01 . -6(WY) (0006),01 @ Page 15 of 15