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Home My WebLink About930722 () 1" J'{"~ :;" \1:1\ c::.{Y 6010715541 Prepared By: PROFICIO BANK 420 E. SOUTH TEMPLE STE. 520 SALT LAKE, UT 84111 (801) 322-7029 Return To: PROFICIO BANI< 420 E, SOUTH TEMPLE STE. 520 SALT LAKE, UT 84111 (801) 322-7029 A1TN: RANDELL SILCOX RECEIVED 6/27/2007 at 1:05 PM RECEIVING # 930722 BOOK: 663 PAGE: 616 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY , [Space Above fi1ls tine For Recordll1g Data] MORTGAGE '\ {J ,J'\ \ I {~1 I.- :_ {)V~ f...i FERRrS Loan#: 34416 PIN: r.J'. DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated JUNE 26, 2007, together with all Riders to this document. (B) "Borrower" is John Ferris and Martha E Ferris, Husband & Wife. Borrower is the mortgagor under this Security Instrument. (C) "Lender" is PROFICIO BANK. Lender is a A STATE CHARTER CCMMERCIAL BANK organized and exi~ting under the laws of UTAH. Lender's address is 420 E, SOUTH TEMPLE STE. 520 I SALT LAKE, UT 84111. Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissOlY note signed by Borrower and dated JUNE 25, 2007. The Note states thatBorrowerowesLender SEVEN HUNDRED THIRTY-ONE THOUSAND AND 00/100 Dollars (U.S. $731,000,00) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JUNE 5, 2008. (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges ",ryQ;\DNG - Single Family - Fannie MaelFreddle Mae UNIFORM INSTRUMENT ~;) 360.20 Page I oft3 FOl'mJ0511101 oaa072;2 O ,('ß .1'), tr>... ""]I , ,,. I(}' t:,j' ~:.~~.t ~ 34416 due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: m Adjustable Rate Rider o Balloon Rider o 1-4 Family Rider o Condominium Rider 0 Second Home Rider o Planned Unit Development Rider 0 Biweekly Payment Rider [);her(s) [specify] CONSTRUCTION LOAN DEED OF TRUST RIDER (H) "Appllcable 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 other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of aU or any part ofthe Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition ofthe Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'om time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESP A. (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 This Security Instrument secures to Lender: (i) the repayment ofthe Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY (Type of Recording Jurisdiction) of LINCOLN (Name of Recording Jurisdiction): Lot 1 of Winter Bourne Farm Subdivision, Lincoln County, Wyoming as desoribed on the offioial plat filed on Maroh 23, 2007as instrument No. 927809 of the reoords of the Lincoln County Clerk, which currently has the address of 1 WATERS MEET ROAD, THAYNE, Wyoming 83120 ("Property Address"): WYŒllNG - Single Family - Fannie MaelFreddie Mac UJ'\'JFORM INSTRUMENT ~;:) 360,20 Page 2 of 13 Form 3051l/01 09,3lY;;¿2 O.ft! (,) ~ 4.1 ~;,~ '.f_ ~)'.... \\:~ .)i,.. 1...... 34416 TOGETHER WITH aU the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. AIL of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seized ofthe estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment ofPl'incipal, Interest, Escrow Items, Prepayment Charges, and Late Charges, Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in V,S, currency. 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 fOlms, 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, insb:umentality, 01' entity; 01' (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 Lendér 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 Bon-ower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period oftime, Lender shall either apply such funds or return them to Borrower, If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Bon-ower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2, Application of Payments or Proceeds, Except as otherwise described in this Section 2, all payments accepted and appJied by Lender shaH 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 Periodic Payment in the order in which it became due. Any remaining amounts shaI1 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 Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received fi:om Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more WYOMING - Single Famil)' . Fannie I\JBelFreddle !\fac UJI.'TFORM INSTRUMENT ~þ 360.20 Page 3 of 13 Form 305111111 0930722 00061.9 34416 Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. AI1y application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shaH not extend or postpone the due date, or change the amount, ofthe Periodic Payments. 3, Funds for Escrow Items. Borrower shaH pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for; (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premlums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are 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. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section, Borrower 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 Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Bonmver shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shaH furnish to Lender receipts evidencing such payment within such time period as Lender may require. BOlTower'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 BOD'ower 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 01' 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 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 Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESP A. Lender shall not charge Borrower 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 permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Lnw 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 shaH give to Borrower, 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 ill 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 defmed under RESPA, Lender shall notifY Borrower as required by RESP A, and BOD'ower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESP A, but ill no more than 12 monthly payments, Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. WYOMING. Single Family - Fannie MaelFreddle Mac UJII'lFORMINSTRUMENT <!¡>ß 360.20 Page 4 of 13 Form 30511101 0930722 OOOf:~20 34416 4, Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, BOlTOwer shall pay them in the manner provided in Section 3. BÇlrrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, 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 determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien, Within 10 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 real estate tax verification and/or reporting service used by Lender in connection with this Loan. S, Property Insurance, Bon'ower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the tenn "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance, This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires, What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either; (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or 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 ftom 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 BOlTower, Bon'ower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 sha1l become additional debt of BOlT ower 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 fÌ'om Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee, Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices, If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee, In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Bon·ower. Unless Lender and BOlTower 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 WYOMING - Single Family - FannIe MaelFreddle Mac UNIFORM INSTRUMENT ~) 360.20 Page 5 of 13 Form 3051 JlOl O~j.JO?ZZ ^ .0. tf), ~'C ""1' I;:~ '.!..~'J' U'~}I~,,-~. 34416 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 Opp011unity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to 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 Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under 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. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's contro1. 7. Preservation, Maintenance and Protection of the Property¡ Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shaH maintain the Property in order to prevent the Property fTom detedorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall' promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation pro,ceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed, If the insurance or condemnation proceeds are not sufficient to repair 01' restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shaH give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause, 8. Borrower's Loan Application, Borrower shalt be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate infonnation 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 conceming 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 perfonn 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 1ien which may attain priority over this Security Instrument or to enforce laws or WYQ:¡UNG - Single Family· Fallnfe MaefFl'eddle Mac UNIFORM INSTRUMENT e,j 360.20 Page 6 of 13 Form 30511/01 09307Z2 OOO'62~Z 34416 regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property, Lender's actions can include, but are 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 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or aU actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower 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 Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease, Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground 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 Insurnnce, If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available ftom the 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 the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non- refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be· non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve, Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the 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 Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between BOITower and Lender providing for such tennination or until tennination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance, Mortgage insurers evaluate their total risk on all such insurance in force ftom time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained 1Tom MortgagetInsurance premiums). WYOMING· Single Family· Fannie l\faclFrcddie Mae UNIFORM INSTRUMENT ~ß 360.20 Page 7 of 13 Form 3051 1/01 O~J~j0722 OOO'G~~;J 34416 As a result of these agreements, Lender, any purchaser ofthe Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing 01' modif)dng the mortgage insurer's risk, or reducing losses, If such agreement provides that an affiliate of Lender takes a share oftite insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often tenned "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, (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 MOl'tgagc InSlll'ance 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 tite Propeliy, iftite 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 shaH 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 this Security Instrument, whether or not titen due, with the excess, ifany, paid to Borrower. Such Miscellaneous Proceeds shaH be applied in the order provided for in Section 2, In the event of a total taking, destruction, 01' loss in value of the Property, the Miscelianeous 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 Property immediately before the partial 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 Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following traction: (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 shali be 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 Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, BOlTower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to WYOMING - Single Family - FRnnle l\IaelFreddle Mac UNIFORM INSTRUMENT I!!".Þ 360.20 Page 8 of 13 Form 30511101 09;iO'7ZZ 34416 OO(QIG~¿;4 Miscellaneous Proceeds. Bon-ower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture ofthe Property or other material impairment of Lender's interest in the Property or rights under tWs Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. BOl'rower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization ofthe sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower OJ' any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of BorroweJ' 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 01' any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments ITom third persons, entities or Successors in Interest of Borrower or in amounts Jess than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13, Joint and Severa] Liability; Co-signers; Successors and Assigns Bound, Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the tenns of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modifY, forbear or make any accommodations with regard to the terms oftWs Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under tills Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, propel1y inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower 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 Jaw is fmally 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 pennitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower witl constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15, Notices. All notices given by Borrower or Lender in connection with this Security Instrument WYOMING - Single Family - Fannie MaelFreddle Mac UNIFORM INSmUMEl\'T É'...,;:I 360.20 Page 9 of 13 Form 30511/01 On 3 ()i..'1..·)...'.Þ .J.... ~ "-~ O 011'1; €~ "'/I r;::; ~ \J \.:",,1.' \()~ ....'I\~,;f ,!"'¡'~ 34416 must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to anyone Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at anyone time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument 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 satisty the corresponding requirement under this Security Instrument. 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 parties to agree by contract or it might be silent, but such silence sha1l not be construed as II 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 conflicting provision, As used in this Security Instrument: (a) words ofthe masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17, Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18, Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any leg al 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, Ifall or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) 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 Borrower notice of acceleration. The notice shall provide n period of not less than 30 days from the date the notice is given in accordance with Section 15 within which B011'0wer must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19, Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, BOlTower 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 tennination 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 incuo'ed in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Jnstrument; and (d) takes such action as Lender may WYO~IING - Single Family - Fannie !\IRe/Freddle !\Ioe UNIFORì\I INSTRUlIIEl'\'T ~.;) 360,20 Page 10 of 13 Form 30511101 0930722 O i\ f'),~,r".;¡:' {" ~t,;r \¡{) .,~~y i,ff,~' 34416 reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that B011'OWer 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 occurred, 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 partial interest in the Note (together with this Security Instrument) can be sold one 01' more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") tbat collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer 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 wiII state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Serv1cer 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 fi'om 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 proiy (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 taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisty the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances, As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or fonnaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws ofthe 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 Envù'onmental Cleanup. Borrower shall not cause or pennit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property, The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nonnal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products), Bon'ower shaH promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release ofa WYOMING - Single Family· Fannie Mae/Freddle Mac. UNIFORM INSTIUThlENT eJ 360,20 Page 11 ofI3 Form 30511/01 O~}·]07ZZ 0.0 f!l ,tr: "," Þ '~ 'tf ~,... "\..;l-1¡." f{ 34416 Hazardous Substance which adversely affects the value of the Property. If Bon'ower 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, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shaII create any obligation on Lender for an Environmental Cleanup. 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 011 or before the date specified in the notice may result in accelel'ation 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 aud sale, If the default Is not cured ou 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 incuned in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title ,evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if dIfferent, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law, Lender or its designee may purchase the Property at any sale, The proceeds of tile sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' feesj (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 n fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging ofthe fee is permitted under Applicable Law. 24. Waiver's, Borrower reieases and waives all fights under and by virtue of the homestead exemption Jaws of Wyoming. BY SIGNING BELOW, BOl'1'ower accepts and agrees to the telms and covenants contained in this Security I JilI !i d in any Rider executed by Borrower and recorded with it. - ç4c(èY- - B~4WER - John Ferris - DATE ~ / ~ /' / //~/f ~~ o/~ýð 7- - BORROWER - Martha E Ferris - DATE -' WYOìHING - Single Family - FAnnie ìHaelFreddle Mac UNIFORM INSTRUMENT ~,) 360.20 Page 12 of 13 Form 30511/01 I I 0930722 O!1lfl;¡(('~"'''' ~1 ~ .: ~)' \J..l: '..~ ,,~t t..t 34416 (Space Below This Line for Acknowledgment) State of WYOMING County of LINCOLN The foregoing instrument was acknowledged before me by JOHN FERRIS .AND MARTHA E FERRIS, this 25TH day of JUNE, 2007. Witness my hand and official seal. ~/~ß¡~ Notary Public My Commission Expires: 9 - /5 - 0 7 GLORIA K BYERS· NOTARY PUBLIC County of State of Uncoln Wyoming My CommIssIon Expires Sept. 15, 2007 WYOMING· Single Family - Fannie !\IaelFreddlc IHae UNIFORM INSTIUJMENT I!;!.... 360,20 Page 13 of 13 Form 30511/01 o~J,ao?ZZ oons~~~) CONSTRUCTION LOAN RIDER TO SECURITY INSTRUMENT (INCLUDING SECURITY AGREEMENT), (To Be Recorded With The Security Instrument) LENDER: Proficio Bank BORROWER: John Ferris & Martha E. Ferris PROPERTY: Lot 1 of Winter Bourne Farm Subdivision TillS CONSTRUCTION LOAN RIDER TO SECURITY INSTRUMENT (the "Rider") shall be deemed to amend and supplement the Mortgage, Open-End Mortgage, Deed of Trust, Credit Line Deed of Trust, and any and all riders 01' amendments thereto (the "Security Instrument") of the same date, to which this Rider is attached, given by the undersigned (the "BOITower") to secure Borrower's Promissory Note to Lender of the same date (the "Note") and covering the property (the "Property") described in this Security Instrument. All telms defined in the Note and elsewhere in this Security Instrument shall have the same meaning in this Rider. AMENDED AND ADDITIONAL COVENANTS. In addition to the covenants and agreements made in this Security Instrument, Borrower and Lende¡' fm1her covenant and agree as follows: 1. Construction Loan Agr·eement. Borrower's Note evidences BOITower's promise to pay Lender the aggregate amount of all advances made and distributed by Lender under the terms and conditions of a Construction Loan Agreement between Lender and BOI1'owel' dated the same date as the Note (the "Loan Agreement"). The Loan Agreement provides for constl1lction of cel1ain improvements (the "Improvements") on the Property. Borrower agrees to comply with the covenants and conditions of the Loan Agreement. This Security Instl1lment secures to Lender (a) the repayment of the debt evidenced by the Note, including the aggregate amount of all advances made by Lender from time to time undel' the terms of the Loan Agreement, with interest at the Construction Phase Note Rate, and all renewals, extensions, and modifications of the Note, (b) the performance of all of Borrowet"s covenants and agreements under the Note, this Security Instrument, and the Loan Agreement (the "Loan Documents"), and (c) the payment of all other sums, with interest at the Note Rate, advanced by Lender to protect the security of this Security Instl1lment, 01' to perfOlm any of Borrower's obligations under the Loan Documents. Upon the failure of B011'0wer to keep and perform all the covenants, conditions and agreements of the Loan Agreement, the Principal and all interest and other charges provided for in the Loan Documents and secured hereby shall, at the option ofthe Lender, become immediately due and payable in full. 2. Future Advances, Du1'Ìng the construction of the Improvements (the "Construction Phase"), interest wi) accme on the outstanding Principal according to the tel1ns set forth in the Note and the Construction Loan Addendum To Note. Provided there has been no default as defmed in the Note, the Loan Agreement, 01' this Security Instrument, Lender is legally obligated to make advances of principal upon application therefor by the Borrower in accordance with the provisions of the Note and Loan Agreement up to a maximum Principal amO\mt (including present and future obligations), which is equal to the amount of the Note as set f0l111 in the Security Instrument. Such advances shall be evidenced by the Note, made under the terms of the Loan Agreement and secured by this Security Instrument and may occur for a period up to the end of the Construction Phase, but in no event after 12 months from the date of this Rider. jIoiULTJST ATE CONSTRUCII01'l LOAN RIDER TO SECURm' DiSTRWIEjliT - Slngl..Flmlly - Fannl. Mo. HO~lEsn'LE MODEL DOCUMENT Fom 3737 11101 (pog. J of ~ pagtS) 0930722 iO006ao 3. Assignment, of Rights or Claims, From time to time as Lender deems necessary to protect Lender's interest, Borrower shall, upon request of Lender, execute, acknowledge before a notaIY, and deliver to Lender, assignments of any and all rights or claims which relate to the construction on the Property, 4. Breach by Borrower. In case of breach by Borrower of the covenants and conditions of the Loan Agreement, subject to any right of Borrower to cure Borrower's default, Lender, at Lender's option, with or without entty upon the Property (a) may invoke any of the rights or remedies provided in the Loan Agreement, (b) may accelerate the sums secured by this Security Instrument and invoke any of the remedies provided in this Security Instrument, or (c) may do both, Lender's failure to exercise any of its rights and remedies at anyone time shall not constitute a waiver by Lender of its right to exercise that right 01' remedy, 01' any other right 01' remedy, in the future, 5, Permanent Mortgage Date. On the day the Construction Phase ends, the loan evidenced by the Note will be a pennanent mortgage loan ("Penn anent Mortgage Date"). Beginning on the Permanent Mortgage Date, interest shall accme as stated in the Note and monthly payments of principal and interest shall be due and payable as set forth in the Note. 6. Security Agreement and Financing Statement. The property covered by this Security Instrument includes the Property previously described 01' refened to in this Security Instrument, together with the following, all of which are referred to as the "Property." The portion of the Property that constitutes real property is sometimes referred to as the "Real Property." The portion of the Property which constitutes personal property is sometimes referred to as the "Personal Propel1y," and is described as follows: (i) Borrower's right to possession of the Propel1y; (ii) any and all fixtures, machinelY, equipment, building materials, appliances, and goods of evelY nature whatsoever now or hereafter located in, or on, or used, 01' intended to be used in connection with the Propel1y 01' the Improvements, and all replacements of and accessions to those goods; and (Hi) proceeds and products of the Personal Property. Despite any other provision of this Rider or any other Loan Document, however, Lender is not granted, and will not have, a non-purchase money security interest in household goods, to the extent that such a security interest would be prohibited by applicable law. This Security Instrument is and shall be a security agreement g1'anting Lender a first and prior security interest in all of Borrower's right, title and interest in and to the Personal Property, under and within the meaning of applicable state laws, as well as a document granting a lien upon and against the Real Pl'Opel1y. In the event of any fOl'eclosure sale, whethe¡' made by Trustee, or under judgment of a COUlt, aU of the Real Property and Personal Property may, at the option of Lender, be sold as a whole 01' in parcels. It shall not be necessmy to have present at the place of such sale the Personal Property or any part thereof. Lender, as we]) as Tl11stee on Lender's behalf, shall have all the rights, remedies and recourse with respect to the Personal Propel1y afforded to a "Secl11'ed Party" by applicable state laws in addition to and not in limitation of the other rights and remedies afforded Lender andlor Trustee under this Security lnstmment. Borrower shall, upon demand, pay to Lender the amount of any and all expenses, including the fees and disbursements of Lender's legal counsel and of any experts and agents, which Lender may incur in connection with: (i) the making and/or administration of this Security Instrument; (ii) the custody, preservation, use or operation of, or the sale of, collection from, 01' other realization upon any Property, real and/or personal, described in this Security Instrument; (iii) the exercise or enforcement of any of the rights of Lender under this Security Inst11lment; or (iv) the failure by Borrower to perform or observe any of the provisions 01' covenants in this Security lnstt"ument. MULTISTA TE CONSTRUCTION LOAN RIDER TO SECURln" Ji'\'STRU~IENT - Slngle.ramil}' - Fannl. Ma. HOM.ESITLE MODEL DOCUMENT Fonn 3737 11/01 (pag" 0/-1 pag..) O~JaO?Z2 ((' ',~t\ "',f'~.I. ~: If).: ,.ç '. ...' . . '.1¿ Lender may, at its election, at any time after the delivelY of this Security Instrument, sign onê 01: _.C'" more copies of this Security Instrument in order that such copies may be used as a financing statement under applicable state laws. Lender's signature need not be acknowledged, and is not necessalY to the effectiveness hereof as a deed of trust, a security agreement, or (unless otherwise required by applicable law) a financing statement. Borrower also authorizes LendeJ' to sign and file, without Borrower's signature, such fmancing and continuation statements, amendments, and supplements thereto, and other documents that Lender may trom time to time deem necessalY to perfect, preserve and protect Lender's security interest in the Property. If any other documents are necessalY to protect Lender's interest in the Property, BOll'ower agrees to sign these documents whenever Lender asks. Borrower also gives Lender pelmission to sign these documents foJ' Borrower. 7. Invalid Provisions. If any provision of this Security Instrument is declared invalid, illegal, or unenforceable by a court of competent jurisdiction, then such invalid, illegal or unenforceable provision shall be severed from this Security Instrument and the remaindel' enforced as if such invalid, illegal or unenforceable provision is not a part of this Security Instrument. 8. Addl'csses. The name and address of the Borrower is: John & Martha E. Ferris p.a Box 764, Thayne, Wyoming, 83127 The name and address of the LenderlSecured Party is: Proficio Bank 420 E. South Temple, Suite 520, Salt Lake City, Utah 84111 9. Relation to LORn Agreement. This Security Instrument is subject to all of the applicable tenTIS and conditions contained in the Loan Agreement. The Loan Agreement is to be filed in the County Clerk's Office in the County where the Property is located at the same time this Security Instrument is recorded. If Borrower fails to keep any of the promises BOlTOwel' makes in the Loan Agreement, Lender may require that the entire balance of Borrower's debt to Lender be paid immediately, The terms and conditions of this Rider shall survive the tennination of the Loan Agreement and the repayment of the Loan. 10. Paragraph 6 of the Security Instrument. The first sentence of Paragraph 6 of the Security lnstl'lltnent is hereby modified to read as follows: Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the end of the Construction Phase and shall continue to occupy the Property as Borrower's p1'Încipal 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 lIDless extenuating circumstances exist which are beyond Borrower's control. All other provisions in Paragraph 6 of this Security fnstrument remain unchanged. MULTlST A T£ CONSIRUCIIO:-I LOAN RIDER TO SECURJTI' INSTRUMENT - Sírtgle.Family- fannle ~f8. ROM£Sn'LE MODEL DOCUMENT Form 3737 11101 (pag. j of / palU; 0930722 ¡('¡, (), ~.... Af'" r) .'-¡O l("èi~;'(Jjill), "L;~ Aq;.;. BY SIGNING BELOW, BOIl'ower accepts and agrees to the tenns and covenants contained in this Rider, of June --' 2007 ...... JAß ?7'£~~ ~" /y<"rl- ~ Mártha E. Ferris 4r/h4 7. ~,e£/.s Printed Name te-e-e-,<:., Printed Name STATEOF~(Í11J ) t ) 5S.: COUNTY OF /lf1lPll1./ ) On this Î1 / day of ~ .. ~ . before me tbe subscriber personally appeared elm '" 'Y7' 5 11Ma (Ç. Ptfftl(and) to me known and known to me to be the same person(s) described in and who executed the foregoing instrument, and (s)he/they duly (jointly and severally) acknowledged to me that (s)he~ executed the same. -~I - G' ORIA K. BYERS· NOTARY PUBLIC I,; .. State of County of '. ~ wyoming Lincoln t. 15 2007 ~ My CommIssion Expires Sap I A!J£O/UÁ;V )r! Ær-~ Notary Signature Official Seal: G'¿O;:?)¡::) ~, ~YéÆJS Notary Printed Name Notary Public; State of "I'Vvnvv712 Qualified in the County ~ d My commission expires: 9 - /.. ¿;; - t) 7 ATTENTION COUNTY CLERK. This instrument covers goods that are or are to become fixtures on the Property described herein and is to be filed for record in the records where Security Instruments on real estate are recorded. Additionally, this instrument should be appropriately indexed, not only as a Security Instl111nent but also as a financing statement covering goods that are 01' are to become fixtures on the Property described herein, The mailing address of the Bonowel' (Debtor) and Lender (Secured Party) are set f01th in this Security Instrument. MVLllSTA IE CO/(STRVCTION LOAN RIDER TO SECURlIT L-;SrRU~IENT - SÎngJo-Family- Fannl. Ma. HOMESTI'LE MODEL DOCVMENT Form 3737 1If0\ (pagr 4 of 4 pog,,)