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HomeMy WebLinkAbout930548 o ~,~ n.... rt 01 5:; 6010715190 Retu111 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, 3505 EAST OVERLAND DRIVE MERIDIAN, ID 83642 RECEIVED 6/2012007 at 3:08 PM RECEIVING # 930548 BOOK: 662 PAGE: 848 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY ISpace Above This Line For Recording Datal MORTGAGE MIN 100085200612943698 0061294369 n 1 vt \ ' DEFINITIONS Words used in multiple sections of this document are detined below and other words are defined in Sections 3, I I, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. ...-I /'" " , (A) "Security Instrument" means this document, which is dated June 18th, 2007 together with all Riders to this document. (B) "Borrower" is ERIC LISH, An Unmarried Man BOlTower is the mortgagor under this Security Instrument. (C) "MERS" is M011gage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING -Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS . -6A(WY) (0005),02 Page ~ of 15 Inllials: E L-. Form 3051 1/01 11111111111111111111111111111111111 VMP Mortgage Solullons. Inc. 09..10548 000849 (D) "Lender" is FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK N.A. Lender is a NATIONAL BANI< organized and existing under the laws of THE UNITED STATES OF AMERICA Lender's address is 4000 HORIZON WAY, IRVING, TEXAS 75063 (E) "Note" means the promissory note signed by Borrower and dated June 18th, 2007 The Note states that BOlTower owes Lender ONE HUNDRED SEVENTY TWO THOUSAND & 00/100 Dollars (U.S. $ 172,000,00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JULY 1, 2037 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by BOlTower [check box as applicable]: D Adjustable Rate Rider D Balloon Rider D VA Rider D Condominium Rider D Planned Unit Development Rider D Biweekly Payment Rider D Second Home Rider D 1-4 Family Rider D Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on BOlTower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such telm includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "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 all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (0) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.P.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESP A" 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 RESP A 0061294369 . -6A(WY) (0005),02 ~ Initials: FL- Page 2 of 15 Form 3051 1/01 0(1 4')O(-''\'' C> I"-,!\U ,~Lto 000850 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Propel1y, whether or not that party has assumed BOlTower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This SecUlity Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the perfonnance of BOlTower's covenants and agreements under this Security Instrument and the Note. For this purpose, BOlTower does hereby mOl1gage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the County of Lincoln [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] All that tract or parcel of land as shown on Schedule "A" attached hereto which is incorporated herein and made a part hereof. Parcel ID Number: 4125 HIGHWAY AFTON ("Property Address"): County: 12-3119-12-1-00-033-00 City: which cltlTently has the address of 241 [Street] [City] , Wyoming 83110 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the propel1y. All replacements and additions shall also be covered by this SecUlity Instrument. All of the foregoing is refelTed to in this Security Instrument as the "Property." BOlTower understands and agrees that MERS holds only legal title to the interests granted by BOlTower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Propel1y; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that BOlTower 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. BOlTower walTants and will defend generally the title to the 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 with limited variations by jurisdiction to constitute a unifOlID security instrument covering real property. 0061294369 . -6A(WY) (0005),02 @ Initials: f?L Paga 3 of 15 Form 3051 1/01 0930548 000851. UNIFORM COVENANTS. Bon-ower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges, Bon-ower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bon-ower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the NQte and this Security Instrument shall be made in U.S. cun-ency. However, if any check or other instrument received by Lender as payment under the Note or this 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 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 federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or pa11ial payment if the payment or partial payments are insufficient to bring the Loan cun-ent. Lender may accept any payment or partial payment insufficient to bring the Loan cun-ent, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or pal1ial payments in the future, but Lender is not obligated to apply such payments at the time such payments al'e 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 BOl1'0wer makes payment to bring the Loan cun-ent. If Bon-ower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Bon-ower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Bon-ower might have now or in the future against Lender shall relieve BOl1'0wer tì'om 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, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each PeIiodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Bon-ower 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 PeIiodic Payment is outstanding, Lender may apply any payment received from Bon-ower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as desclibed in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. BOl1'0wer shall 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 pIiority over this Security Instrument as a Lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Propel1y, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) MOl1gage Insurance premiums, if any, or any sums payable by Bon-ower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items," At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Bon-ower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Bon-ower shall pay Lender the Funds for Escrow Items unless Lender waives Bon-ower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Bon-ower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Inlllals: Fe- Form 3051 1/01 . -6A(WY) (0005).02 @ Page 4 of 15 0.' ">Qt'-/'I¡';'¡ .,.J"" ,~"'t:a 000852 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. BOITower'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 BOITower is obligated to pay Escrow Items directly, pursuant to a waiver, and BOITower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Bon-ower 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 RESP A, and (b) not to exceed the maximum amount a lender can require under RESP A. Lender shall estimate the amount of Funds due on the basis of cUITent 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 Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESP A. Lender shall not charge Bon-ower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pelmits 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. BOITower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Bon-ower, without charge, an annual accounting of the Funds as required by RESP A. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESP A. If there is a shortage of Funds held in escrow, as defined under RESP A, Lender shall notify BOITower as required by RESP A. and BOITower shall pay to Lender the amount necessary to make up the sh011age 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 RESP A, Lender shall notify BOlTower as required by RESP A, and Bon-ower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to BOITower any Funds held by Lender. 4. Charges; Liens. BOlTower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, BOITower shall pay them in the manner provided in Section 3. BOlTower shall promptly discharge any lien which has priority over this Security Instrument unless BOITower: (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 Bon-ower is perfonning such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument If Lender detennines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give BOITower a notice identifying the lien. Within 10 Initials: F L Form 3051 1/01 . -6A(WY) (0005).02 ~ Page 5 of 15 O~:~305L\'8 000853 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 BOl1"ower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. S, Property Insurance. BOl1"ower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, ea11hquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Bon"ower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require BOlTower to pay, in connection with this Loan, either: (a) a one-time charge for [lood zone determination, certification and tracking services; or (b) a one-time charge for flood zone detetmination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or cet1ification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Bon"ower's expense. Lender is under no obligation to purchase any pa11icular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amoµnts disbursed by Lender under this Section 5 shall become additional debt of BOITower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to BOlTower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal ce11ificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If BOl1"ower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, BOlTower shall give prompt notice to the insurance catTier and Lender. Lender may make proof of loss if not made promptly by BOlTower. Unless Lender and Bon"ower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be unde11aken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Bon"ower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by BOlTower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to Inillals: E L Form 3051 1/01 . -6A(WY) (0005),02 @ Page 6 of 15 O~130548 000854 the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Bonower 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 Bonower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6, Occupancy. Bonower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue 10 occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond BOITower's control. 7, Preservation, Maintenance and Protection of the Property; Inspections, BOITower shall not destroy. damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Bon'ower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteIiorating or decreasing in value due to its condition. Unless it isdetelmined pursuant to Section 5 that repair or restoration is not economically feasible, Bon-ower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Propeliy, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Bonower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give BOITower notice at the time of or prior to such an interior inspection specifying such reasonable cause. S, Borrower's Loan Application, Bon-ower shall be in default if, during the Loan application process, Bonower or any persons or entities acting at the direction of Bon-ower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Bonower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Bon-ower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a 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) BOl1'ower has abandoned the Propeliy, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Propeliy and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are 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 Initials: F t.-. Form 3051 1/01 . -6A(WY) (0005).02 @ Page 7 of 15 O~1:'ì0548 000855 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 Propel1y 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 authOlized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Secw'ity Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10, Mortgage Insurance, If Lender required Mortgage Insurance as a condition of making the Loan, BOlTower shall pay the premiums required to maintain the M0l1gage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the m0l1gage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for MOl1gage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the M0l1gage Insurance previously in effect, at a cost substantially equivalent to the cost to Bon'ower of the MOl1gage Insurance previously in effect, from an alternate m0l1gage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, BOlTower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Bon'ower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if MOJ1gage 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 shall pay the premiums required to maintain MOl1gage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for M0l1gage Insurance ends in accordance with any written agreement between BOlTower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects B01l'ower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on telIDS and conditions that are satisfactory to the mortgage insurer and the other party (or pw1ies) 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 MOJ1gage 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 shw'ing 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, Initials: ¡;;:- L Form 3051 1/01 . -6A(WY) (0005).02 @ Page B of 15 093U548 000856 (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 opp0l1unity 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 Bon-ower 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 this Security Instrument, whether or not then due, with the excess, if any, paid to BOlTower, Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to BOlTower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Propeliy immediately before the pm1ial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Bon-ower and Lender otherwise agree in wliting, the sums secured by this Security Instrument shall 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 partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Bon-ower. In the event of a pal1ial taking, destruction, or loss in value of the Propeliy in which the fair market value of the Propeliy immediately before the partial taking, destruction, or toss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless BOlTower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Bon-ower, or if, atler notice by Lender to BOITower that the Opposing Paliy (as defined in the next sentence) offers to make an award to settle a claim for damages, Bon-ower 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 Bon-ower Miscellaneous Proceeds or the party against whom Bon-ower has a right of action in regard to Miscellaneous Proceeds. BOlTower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material imp ailment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occUlTed, 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 Propel1y or other material impairment -of Lender's interest in the Propeliy 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 shall be paid to Lender. All Miscellaneous Proceeds that m'e not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. Initials: FL . -6A(WY) (0005).02 @ Form 3051 1/01 Page 9 of15 "J.::'dt\J,-'~O CC67 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 BOITower 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 otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Bon"ower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that BOITower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mOl1gage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and I (c) agrees that Lender and any other BOlTower 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 Bon"ower who assumes Borrower's , obligations under this Security Insb:ument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. BOl1"ower shall not be released from BOITower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to BOlTower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under , the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be , treated as a pro1ial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). BOl1"ower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action BOlTower might have arising out of such overcharge. 15, Noticcs, All notices given by BOlTower or Lender in connection with this Security Instrument must be in writing. Any notice to BOlTower in connection with this Security Instrumen1 shall be deemed to have been given to Bon'ower when mailed by first class mail or when actually delivered to BOlTower's notice address if sent by other means. Notice to anyone Bon"ower shall constitute notice to all BOlTowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless BOlTower 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 BOlTower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at anyone time. Any notice to Lender shall be given by delivering it or by mailing it by fITst class mail to L~nder's address stated herein unless Lender has designated another address by notice to Bonower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. Inlllals: e L- Form 3051 1/01 . -6A(WY) (0005).02 @ Page 10 or 15 O~l305~8 000858 16, Governing Law; Severability; Rules of Construction, This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the pa¡1ies to agree by contract or it might be silent, but such silence shall 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 shall not affect other provisions of this Security Instrument or the Note which can be given effect without the cont1icting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include cOlTesponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17, Borrower's Copy. Borrower shall be given one copy of the Note and of this Security 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 beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Propel1y or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Bonower is sold or transfened) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give BOlTower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower 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 BOITower. 19, Borrower's Right to Reinstate After Acceleration, If BOlTower meets ce11ain 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 sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the telmination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all 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 all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, prope11y inspection and valuation 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 Propel1y and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall 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 federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occUlTed. However, this 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 pa11ial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and perfOlms other mOJ1gage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan ServiceI' unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan ServiceI', the address to which payments should be made and any other information RESP A requires in connection with a InlUals: E L Form 3051 1/01 . -6A(WY) (0005).02 (!) Page 11 of15 000859 O~l305'18 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 pm1y has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other pm1y (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 cOITective action. If Applicable Law provides a time period which must elapse before cel1ain action can be taken, that time period will be deemed to bß reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and oPP011unity to take conective action provisions of this Section 20. 21. Hazardous Substances, As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Propel1y. Bon'ower shall not do, nor allow anyone else to do, anything affecting the Propel1y (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nonnal residential uses and to maintenance of the Propel1y (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 other action by any governmental or regulatory agency or private pal1y involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Bonower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. Initials: E L Form 3051 1/01 . -6A(WY) (0005).02 Œ> Page 12 of 15 o.~)30548 000860 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-existcnce of a default or any other defense of Borrower to acceleration and sale, If the default is not curcd 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, Lendcr shall give notice of intent to foreclose to Borrower and to the person in posscssion 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 shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Secutity 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. BOITower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. - Initials: t: L-. . -6A(WY) (0005).02 <P) Page 13 of 15 Form 3051 1/01 (}~)30548 000861. BY SIGNING BELOW, BOITower accepts and agrees to the tel111S and covenants contained in this Security Instrument and in any Rider executed by Bon-ower and recorded with it. Witnesses: ~~~ ERIC LISH (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0061294369 .-6A(WY) (0005),02 @ Page 14 of 15 Form 3051 1/01 v'::Jùò54fS STATE OF WYOMING, LINCOLN by ERIC LISH The foregoing instrument was acknowledged before me this My Commission Expires: 0061294369 . -6A(WY) (0005).02 <I> 9 -/5 -07 000862 County ss: Ig1!J~ 1 ~/ ~007 Ægrvua) #~ Notary Public Psg. 150f15 ~.~...-~~~ GLORIA 1<. BYERS - NOTARY PUBLIC County of State of Uncoln Wyoming My CommIssion Expires Sept 15, 2007 '-L lolllsls: I::: Form 3051 1/01 O {} "'} 0':;.. 1'18 .. .:J,Ù " ~ '"* Exhibit A File 6010715190 Description 6to3 The land referred to in this document is situated in the State of Wyoming, County of Lincoln, and is described as follows: Beginning at a point 667.28 feet South from the Northeast Corner of Section 12, Township 31 North Range 119 West, 6th P.M., Lincoln County, Wyoming, and running thence South 110 feet; thence West 396 feet; thence North 110 feet; thence East 396 feet to the place of beginning.