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HomeMy WebLinkAbout931750 6010715580 Return To: PHHL - POST CLOSING MAIL ROOM 1555 W WALNUT HILL LN #200 MC 6712 IRVJ:NG, TX 75038 RECEIVED 7/31/2007 at 1:59 PM RECEIVING # 931750 BOOK: 667 PAGE: 496 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Prepared By: PIRST HORIZON HOME LOANS, A DrvISION ·OP FIRST TENNESSEE BANK N.A. 3505 EAST OVERLAND DRIVE MERIDIAN, ID 83642 000496 [Space Above This Line For RecorcUng Data] 0060844073 MORTGAGE 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 m Section 16. (A) "Security Instrument" means this document, which is dated July 25th, 2007 together Wlth all Riders to this document. (B) "Borrower" is MARCUS MICKELSEN & TEENA MICKELSEN, Husband & Wife Borrower 18 the mortgagor \D1der this Secunty Instrument. (C) "Lender" 18 PIRST HORIZON HOME LOANS, A DrvISION OP FIRST TENNESSEE BANK N.A. Lender is a NATIONAL BANK organized and existing UIider the laws of THE UNJ:TED STATES OF AMERICA WVOMING -Single Famlly- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 S-6(WY) (0006).01 ~ (I) . Page 1 of 16 Initials: "'" - -..... .. 11111111111111111111111111111111111 Lender's address is 4000 HORIZON WAY, IRVING, 'TEXAS 75063 000,497 Lender IS the mortgagee under this Security Instrwnent. (D) "Note" means the promiSsory note s¡gned by Borrower and dated July 25th, 2007 The Note states that Borrower owes Lender POUR HUNDRED FORTY ONE THOUSAND & 00/100 DoUus (U.S. $ 441,000.00 ) plus Íllterest. Borrower has proIDlsed to pay tlús debt in regular Periodic Payments and to pay the debt in full not later than Augus t 1.8 t, 2038 (E) "Property" means the property that is descn"bed below under the heading "Transfer of Rights in the Property. " (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrwnent, plus mterest. (G) "Riders" means all Riders to this Security Instrwnent that are executed by Borrower. The followmg Riders are to be executed by Borrower [check box as appJicable]: D Adjustable Rate Rider D Balloon Rider o VA Rider D Condommiwn Rider o Planned Unit Development Rider D Biweekly Payment Rider o Second Home Rider o 1-4 Family Rider [i] Other(s) [specitY] CONSTRUCTION LOAN RIDER (II) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as wen as all appUcable final, non-appealable judicial opmions. (l) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are unposed on Borrower or the Property by a condoIOlmwn association, homeowners assocIation or similar orgamzation. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction ongmated by check, draft, or snnilar' paper InStrument, which IS lDltiated through an electromc tenmnal, telephomc mstrument, computer, or magnebc tape so as to order, Instruct, or authorize a financial institubon to debit or credit an account. Such term includes, but IS not limited to, pomt-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" mean.1 any compensation, settlement, award of Wµ¡mges, or proceeds paid by any third party (other than insurance proc.eeds paid under the coverages described in Section 5) for: (i) dàmage to, or destmction of, the Property; (ii) condemnation or other taking of an or any part of the Property; (iii), conveyance m lieu of condemnation; or (iv) misrepresentations of, or. omissions as to, the value and/or condition of the Property. (.M) "Mortgage Insurance" ~ans Insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" meaDS the regularly scheduled amount due for (i) principal and interest under the Note, plus (ü) any amounts under Section 3 of tlùs Security Instrument. (0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C, Section 2601 et seq.) and its unplementing reguJabon, RegUlation X (24 C.F.R. part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Securitý InstrU1:î:1ent, "RESPA" refers to all requirements and restrictions that are Imposed in regard to a "federally related mortgage loan" even if the Loan does not qualitY as a "federally related mortgage loan" under RESPA. 0060844073 at -6(WY) (0005).01 Page 2 0116 Initial.: !!t/ dU{ Form 3051 1/01 000498 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whother or not that party has assumed Borrower's obligations under the Note and/or this Sec\U1ty Instnnnent. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instnnnent secures tb Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Secunty Instnnnent 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 followmg descn'bed property located In the County of Lincoln (Type of Recording Jurisdiction) [Name of Recording JurisdiCtion] LOT 8 01' STAR VALI.EY RANCH PLAT 22, LINCOLN COUNTY, WYOMING AS DESCRIVED ON THE OPFICIAL PLAT FILED ON JULY 3, 1985 AS INSTRUMENT NO. 639243 OF RECORDS OF TH~ LINCOLN COUNTY CLERK. ParcelID Number: County I 215 NORTH POREST STAR VALLEY RANCH ("Property Address"): 12~3518-30-2-07 -107.00 City I ~(Ib currently has the address of (Street) (City) ,Wyoming 83127 (Zip Code) TOGETHER WITH al1 the nnprovements now or horeaft'.er erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shalJ also be covered by this Security Instnnnent. All of the fore'gomg 18 referred to In this Security Instnnnent as the "Property. " BORROWER COVENANTS that Borrower 18 lawfully seÎBed of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property IS unencumbered, except for encumbrances of record. Borrower warran1S and will defend generally the title to the Property against all cJa.bns and demands, subject to any encUÌnbrances of record THIS SECURITY INSTRUMENT combines umfonn covenants for national 'USe and non-umform covenants WIth limited vanations by JUrisdiction to constitute a unifonn secwity inst.'rumont covenng real property . UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Paymeøt of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment cbarges and late cbarges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments duo under the Note and this Secunty 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 "-I£f 00608404,073 at -6(WY) (0005).01 Pag& 3 of 16 Form 3051 1/01 '000499 Secunty Instrwnent is returned to Lender unpaId, Lender may require that any or all subsequent 'payments due under the Note and this Secunty Instrument be made in one or more of the folloWIng fOnDS, 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 axe ins1n'ed by a federal agency, instrumenrality, or entity; or (d) Electronic Ftmds Transfer. Payments are deemed receIved by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bnng the Loan current. Lender may accept any payment or partial payment msufficient 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 18 not obligated to apply such payments at the time such payments are accepted. If each Penodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such ftmds or return them to Borrower. If not applied ear1ier,such funds w111 be applied to the outstanding principal balance under the Note immediately pnor to foreclosure. No offset or clajm which Borrower lDlght have now or in the future agamst Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or perfonning the covenants and agreements secured by this Secunty Instrwnent. 2. Application of Payments or Proceeck. Except as otherWlse described in this Section 2, an payments accepted and applied by Lender shall be applied in the followlDg 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 Penodic Payment in the order 1D which it became due. Any remammg amounts shall be applied first to late charges, second to any other amounts due under this Security Instrwnent, and then to reduce the pnncipal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which 1DCludes 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 Pay¡nent is outstanding, Lender may apply any payment receiVed from Borrower to the repayment of the Periodic Payments If, and to the extent that, each payment can be paid in full. To the extent that any excess eXists after the payment is applied to the full payment of one or more Penodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shan be applied first to any prepayment charges and then as described in the Note. Any application of payments, insUI'aœe proceeds, or Miscellaneous Proceeds to pnncipal due under the Note shall not extend or postpone the due date, or change the amount, of the Penodic Payments. 3. Fuuck for Escrow Items. Borrower sha1l pay to .Lender on the day Periodic Payments are due under the Note, unbl the Note is paid in full, a swn (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other Items which can attain pnority over this Security Instrwnent as a lien or encwnbrance on the Property; (b) leasehold payments or ground rents on the Pröperty, if any; (c) premiums for any and a1l insurance reqUIred by Lender. und~r Section 5; and (d) Mortgage Insurance premnuns, If any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the proVision'! of Section 10. These Items are called "Escrow Items. n At ongmation or at any time dUring the tenn of the Loan, Lender may reqwre that Commumty Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptlyfurmsh to Lender all notices of amounts to be plUd under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender Walves Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be m wnting. 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 0060844073 'tit -6(WV) (0006).01 Page 401 16 ~.'1Jf Form 3051 1/01 OÓOSOO Funds has been wlUved by Lender and, If Lender requires, shall furnish to Lender receIpts evulencing such payment WIthin such time ponod as Lender may require. Borrower's obligation to make such payments and to provide receIpts shall for aU purposes be deemed to be a covenant and agreement contained in this Secunty Instrwnent, as the phrase "covenant and agreement" is used in Section '9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amoWlt due for an Escrow Item, Lender may exercise Its nghts under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such anioWlt. Len4er may revoke the waiver as to any or all Escrow Items at any time by a notice gíven in accordance with Section 15 and, upon such revocation, Borrower shal1 pay to Lender aU Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amoWlt (a) sufficient to penmt Lender to apply the Funds at the time specified under RBSPA, and (b) not to exceed the maximwn amount a lender can require under RBSPA. Lender shau estimate the amount of Funds due on the basis of current data and reasoDable estimates of expenditures of future Escrow Items or otherwise in accordance WIth Applicable Law. The Funds shau be held in an institution whose deposits are insured by a federal agency, Instrumentality, Qr entity (including Lender, If Lender ìs an institution whose deposits are so insured) or m any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specIfied under RESPA. Lender shall not charge Borrower for holding and apply1118 the Funds, annually analyzing the escrow accoWlt, or veritying the Escrow Items, unless Lender pays Borrowet mterest on the Funds and Applicable Law permits Lender to make such a charge. Umess an agreement is made m WIlting or Applicable Law requires mterest 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 plUd on the Funds. Lender shall gIve to Borrower, wIthout charge, an ammal accounting of the Funds as reqwred by RBSPA. If there 18 a sutplus of Funds held in escrow, as defined under RBSPA, Lender shall account to Borrower for the excess funds III accordance With RESP A. If there is a shortage of Funds held in escrow, as defined under RBSPA, Lender shall notifY Borrower as reqwred by RBSPA, and Borrower shall pay to Lender the amoWlt necessary to make up the shortage m accordance with RESPA, but in no more than 12 monthly payments. If there 18 a deficIency of Funds held in escrow, as defined under RESPA, Lender shall notify Bon:ower as required by RESPA, and Borrower shall pay. to Lender the amount necessary to make up the deficiency m accordance with RESPA, but in no more than 12 monthly payments. Upon payment m fun of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower 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 Ass9Ciation Dues, Fees, and Asst!ssments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the:manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Secunty Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but omy so long as Borrower IS performmg such agreement; (b) contests the lien in good faith by, or defends agamst 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 omy· 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 pnority over this Security Instrument, Lender may gíve Borrower a notice Identifying the lien. Within 10 0060844073 q -6(WY) (0005).01 Page 6 01 16 I~I-$Jf Fonn 3051 1101 ooosoj. days of the date on which that notice is given, Borrower· shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may reqUIre Borrower to pay a one-time charge for a real estate tax venfication and/or reporting service used by Lender in connection with this Loan. S. Property Insurance. Borrower shall keep the improvements now eXIsting or hereafter erected on the Property msured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limIted to, earthquakes and floods, for which Lender requires imurance. This insurance shall be mamtamed m the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change dW1ng the term of the Loan. The msurance camer providing the msurance sball be chosen by Borrower subject to Lender's rIght to disapprove Borrower's choice, which right shall not be exercised 'UDl'easonably, Lender may require Borrower to pay, m connection with this Loan, eIther: (a) a one·time charge for flood zone detemrination, certification and tracking services; or (b) a one-tìme charge for flood zone determmation and certification servIces and subsequent charges each time remappings or smular changes occur which reasonably might affect such determination or certtfication. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Ager&y In connection with the review of any flood zone detennination resulting from an objection by Borrower. If. Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such C(jverage shall cover Lender, but might or might not protect Borrower, Borrower's equity m the Property, or the contents of the Property, against any nsk, hazard or liability and might proVIde greater or lesser coverage than was preVIously m effect. Borrower acknowledges that the cost of the mst tance coverage so obtained might slgIllficantly exceed the cost of Insurance that Borrower could have obtaIned. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this SecurIty Instrument. These amounts shan bear mterest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.. All insurance policIes reqUIred by Lender and renewals of such policIes shall be subject to Lender's right to disapprove such policIes, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or all an additional loss payee. Lender shall have the nght to hold the policies and renewal cel11ficates. If Lender reqwres, Borrower shall promptly give to Lender all receipts of patd prelJUWI1S 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 msurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in wnting, any msurance proceeds, whether or not the underlying msurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lende.r's security IS not lessened. During such repaIr and restoration period, Leilder sbaI1 have the nght to hold such insurance proceeds until Lender has had an opportumty to inspect such Property to ensure the work has been completed to Lender's .saüsfaction, provIded that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or m a senes of progress payments as the work is completed. Unless an agreement is made in wnting or Applicable Law reqwres 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 othðr third parties, retaIned by Borrower shall not be paid out of the msurance 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 0060844073 4It -6(WY) (0006).01 Pllgo 8 of 16 ._~ Form 3051 1101 OÒOS02 the S11D1S secured by this Security Instrument, whether or not then due, with the excess, Û any, paid to Borrower, Such insurance proceeds shall be app~ed in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available msurance claim and. related matte.rs. H Borrower does not respond wíthhi 30 days to a notice from Lender that the insurance carrier has offered to settle a clann, then Lender may negotIate and settle the claim. The 30-day penod will begIn when the notice 18 given. In either event, or if Lender acqwres 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 S~curity Instrwnent, and (b) any other of Borrower's rights (other than the right to any reñmd of Wlearned premiums pmd by Borrower) under all tnsurance policIes covenng the Property, lUSofar as such nghts are applicable to the coverage of the Property. Lender may use the msurance prOCeèds 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 Wlthin 60 days after the executJ.on of this Sec1l1:1ty Instrwnent and shall continue to dCcupy the Property as Borrower's ptincipal residence for at least one year after the date of occupancy, unless Lender otherwíse agrees in wnting, which consent shall not be unreasonably Wlthheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or 1IDpaJr the Property, allow the Property to deteriorate or connmt waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from detenorating or decreasIng in value due to Its condition. Unless it is determined pursuant to Section 5 that repaJr or restoration 18 not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further detenoration or damage. If insurance or condenmation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower sball be responsible for repairing or restorIng the Property only If Lender has released proceeds for such purposes. Lender may disburse proceeds for the repans and restoration in a single payment or in a senes of progress payments as the work IS completed. If the msurance or condemnation proceeds are not sufficient to repaJr or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repall or restoration. Lender or its agent may make reasonable entries upon and mspections of the Property. If it has reasonable cause, Lender may inspect the Intenor of the improvements on the Ptoperty. Lender shall .give Borrower notice at the time of or prior to such an interior Wspection spectfying such reasonable caUSe. 8. Borrowers Loan Application. Borrower shall be In default if, dunng the Loan application process, Borrower or any persons or entities acting at the direcbon of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection WIth the Loan. Material representations include, but are not litmted to, representations concerning Borrower's occupancy of the Property as Bonower's pnncipal residence. 9. Protection of Lender's Interest. in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there 18 a Ie-gal proceeding that mtght slgIllficantly affect Lender's Interest In the Property and/or nghts under this Security Instrument (such as a proceeding. in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain prionty over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and nghts under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repaning the Property. Lender's actions can include, but are not li:m1ted to: (a) paymg any sums secured by a lien which has priOrIty over this Security Instrument; (b) appeanng In coW"t; and (c) paying reasonable attorneys' fees to 0060844073 . -6(WY) (0006).01 ¡o Page 7 of 16 ,~.,~ Form 3061 1/01 000-503 protect its interest in the Property ~or rights under this Secunty Instrument, including 1ts secured po~dion in a banktvptcy proceeding. Secunng the Property includes, but is not linnted to, entering the Property to rmtke i'epaII'S, change locks, replace or board Up doors and wmdows, drain water from p1peS, eliminate building or other code VIolations or dangerous conditions, and have utilities tmned 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 1S agreed that Lender mcurs no liability for not taking any or all acbons authonzed under this Sectton 9. AIr¡ 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, Wlth such .interest, upon notice from Lender to Borrower requesting payment. If this Secunty 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 maldng the Loan, Borrower sl1al1 pay the premiums required to mainl:a1n the Mortgage InsurailCe lD effect. If, for any reason, the Mortgage Insurance coverage reqwred by Lender ceases to be available from the mortgage insurer that previously provided such msurance and Borrower was reqwred to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premnuns ·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 18 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 reservo lD lieu of Mortgage Insurance. Such loss reserve shaU be non-refundable, notwlthstanding the fact that the Loan is wtimately pmd in full, and Lender shall not be required to pay Borrower any lDterest or earnings on such loss reserve. Lender can no longer reqwre loss reserve payments if Mortgage Insurance coverage (in the amount and for the penod that Lender reqwres) provided by an msurer selected by Lender agam becomes available, is obtained, and Lender requires separately designated payments toward the premnuns for Mortgage Insurance. If Lender· required Mortgage Insurance as a condition of malång the Loan and Borrower was required to ma1œ separately des1gnated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to mamtam Mortgage Insurance lD effect, or to prov1de a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any wntten agreement between Borrower and Lender providing for such tennination or until termination 18 required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate prov1ded in the Note. Mortgage Insurance reimburses Lender (or any eIitity 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 Mor~age Insurance. Mortgage msurers evaluate theIr total nsk on all such insurance in force from ti1ne 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 Ihe other party (or parties) to these agreements. These agreements may require the mortgage lDSurer to make payments uswg any source of ñmds that the mortgage insurer may have available (which may include funds obl:a1ned from Mortgage Insurance premiums). Aß a re8wt of these agreements, Lender,. any purchaser of the Note, another lDSurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that denv.e from (or m.¡ght be charactenzed as) a portion of Borrower's payments for Mortgage Insurance, In oxchange for sharing or modifying the mortgage ÍDSurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the msurer's nsk In exchange for a share of the premiwns pald to the insure.r, Ihe arrangement 18 often termed "captive reinsurance." Further: (a) Any such agreements will not aff~t the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of· the Loan. Such agreements will not incr~e the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. 0060844073 et -6(WY) (000ó).01 Page a of 15 I~'.~ Form 3051 1/01 000504 (b) Any such agreements wUl ~ot 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 dis~losures, 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 18 damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair 18 econonucally feasible and Lender's secunty is not lessened. During such repatr and restoration period, Lender shall" have the nght to hold such Miscellaneous Proceeds unt.il Lender has bad an oppornmity to inSpect such Property to ensure the work bas been completed to Lender's satisfaction, provided that such mspectión shall be undertaken promptly. Lender may pay for the replUI's and restoration in a single disbursement or in a senes of progress payments as the wl.')rk 18 completed. Unless an agreement is made in wnting or Applicable Law requires interest to be pæd on such Miscellaneous Proceeds, Lender shall not be reqwred to pay Borrower aJ."!.Y mterest or earnings on such Miscel1aneous 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 Borrower. SUch Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taIdng, 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 Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property tmmediately before the partial taking, destruc.tion, or loss in value is equal to or greater than the amount of the sums secured by this Secunty Instrument immediately before the partial taking, destruction, or loss m value, unless Borrower and Lender otherwISe agree in wnting, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the followmg fracbon: (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 unmediately before the partial taking, destruction, or loss 10 value. My balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property 10 which the fair market value of the Property immediately before the partial taking, de.struction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, W1less Borrower and Lender otherwise agree 10 wnting, the Miscellaneous Proceeds shall be applied to the sums secured by this Secunty Instrument whether or not the sums are then due. If the Property IS abandoned by BotTOwer, 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 fot damages, Borrower fails to respond to Lender within 30 days after the date the notice IS given, Lender is authonzed to collect and apply the Miscellaneous Proceeds eIther to restoration or repau' 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 nght of action 10 regard to Miscellaneous Proceeds. Borrower ,shan be in default if any action or proceeding, whether civil or crimmal, is begun that, In Lender's judgment, could result in forfeiture of the Property or other material impamnent of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed WIth a ruling that, in Lender's judgment, precludes forfeiture of the Property or other matenal nnpairment of Lender's interest in the Property or rights under this Secunty Instrument. The proceeds of any award or claim for damages that are attributable to the 1mpamnem of Lender's 10terest 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 Propetty shall be applied in the order provided for In Section 2. 0060844073 CIIt -6(WY) (0006).01 Page 9 of 16 '"~'1J/ Fonn 3051 1101 ooosoS 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extemion of the time for payment or modification of amortization of the sums secured by this Secunty Instrwnent granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors m Interest of Borrower. Lender shan not be required to commence proceedings agaínst any Successor ín Interest of Borrower or to refuse to extend time for payment or otherwise modifY amortiZation of the sums secured by this Secµnty Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy mcludi11g, wìtbout linntation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than ihe amount then due, shan not be a Walver 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 tñat Borr9wer's obligations and liability shall be Jomt and severaJ. However, any Borrower who CO-Signs this Security Instrwnent but 40es not execute the Note (a "co-s1gIler"): (a) is co-signmg this Secunty Instrwnent omy to mortgage, grant and convey the co-signer's mterest in the Property under the terms of this Security Instrwnent; (b) is not personally obligated to pay the swns secured by this Security Imbument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodatiom With regard to the terms of this Secunty Instrwnent or the Note Without the CO-Slgner's consent. Subject to the proV18ions of Secnon 18, any Successor in Interest of Borrower who assumes Borrower's obligatiom under this Security Instrument m writing, and 18 approved by Lender, shall obtain all of Borrowerts rights and benefits under this Secunty Instrument. Borrower shall not be released from Borrower's obligations and liability under this Secunty Instrument unless Lender agrees to such release 111 writing. The covenants and agreements of this Secunty 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 m connection With Borrowerts detà\Ùt, for the purpose of protecting, Lenderts interest in the Property and nghts under this Security Instrwnent, mcluding, but not linuted to, attorneys' fees, property mspection and valuation fees. In regard to any other fees, the absence of express authority Ùl this Security Instrument to charge a specific fee to Borrower shaJI not be comtrued as a prolu'bition on the charging of such fee. Lender may not charge fees tñat are expressly prohibited by this Security Instrwnent or by Applicable Law. If the ):.Dan is subject to a law which sets ma:xunum loan charges, and that law IS finally mterpreted so that the 1nterest or other loan charges collected or to be collected in connection With the Loan exceed the pemnUed limits, then: (a) any such loan charge shan. be reduced by the amount necessary to reduce the charge to the penmtted limit; and (b) any sums already collected from Borrower which exceeded penmtted limits will be re1ùnded to Borrower. Lender may choose to make this refund by reducmg the pnnclpal owed under the Note or by making a direct payment to Borrower. If a refund reduces pnnclpal, the reduction Win be treated as a partial 'prepayment wìthout any prepayment charge (whether or not a prepayment charge 18 provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a WaIver of any nght of action Borrower nnght have arising out of such overcharge. 15. Notices. All notices g~ven by Borrower. or Lender m connecdon with this Security Instnnnent must be in writing. Any nodce to Borrower in connection with this Security Instrum(!nt sha11 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 any one 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 nonce address by notice to Lender. Borrower sha1l promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of addresst then Borrower shall only report a change of address tbrougb that specúied procedure. There may be only one deslgDated notice address under this Sec'W'Ìty Instrwnent at anyone time. Any notice to Lender shall be given by delivering It or by mailing It by first ·class maìl to Lender's açtdress stated herem unless Lender has designated 'another address by notice to Borrower. Any notice m connection with this Security Instrument shall not be deemed to have been gl.ven to Lender until actually received by Lender. If any notice required by this Security Instnnnent IS also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instnnnent. 0060844073 "'t -6(WY) (0006).01 Pege 100116 '~'-$f Form 3051 1101 ·, ·;~0050G . 16. Governing Law; Severability; Rules of Construction. 'U1is Security Instrume1Ú shall be governed by federat law and the law of the junsdiction 1D which the Property is located. All rights and obligations contained in this Secunty Instrwnent are :subject to any requirements and lÎIn1tations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or It nught be süent, 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 Instrum:ent or the Note conflicts with Applicable Law, such conflict shall not affect other proVISions of this Secunty. Instrwnent or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include correspondiDg neuter words or words of :the femimne gender; (b) words m the singular shall mean and include the plural and vice versa; and (c) tb;e word "may" gives sole discretion Without any obligation to take any action. 17. Borrower's Copy. ß<)rrower shaU be given one copy of the Note and of this Secunty. Instrume1Ú. 18. Transfer of the Property or a ·BeneficiaJ 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 linuted to, those beneficial interests Ilansferred in a bond for deed, contract for deed, mstaDme1Ú sales contract or escrow agreeme1Ú, the inte1Ú of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or al1.Y Inierest in the Property IS sold or transferred (or If Borrower is not a natural person and a beneficial interest in Borrower 18 sold or transferred) without Lender's pnor written consent, Lender may reqwre mnnediate payment 1D full of all sums secured by this Security Instrwnent. However, this option shall not be exercISed by Lender if such exercise is prohibited by Applicable Law. If Lender exercIses this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days 'from the date the notice IS given in accordance with Section 15 within which Borrower must pay all sums secured. by this Secunty Instrument. If Borrower fails to pay these swns prior to the expIratiön of this peri04, Lendex IlY\Y invoke any remedies pennitted by this Security Instrwnent without further notice or de~d on Borrower. 19. Borrower's Right to Reinsta~ After Acceleration. If Borrower meets certam conditions, Borrower shall have the nght to have éIÚO(Cement of this Security Instrument discontinued at any time pnor to the earliest of: (a) five days before sale; of the Property pursuant to any power of sale contained in this Secunty Instrume1Ú; (b) such other penod as Applicable Law nnght spectiy for the termmation of Borrower's nght to reinstate; or (c) entry of a ]udgme1Ú enforcIng this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Secmty Instrument and the Note as û no acceleration had occurred; (b) cures· any default of any other covenants or agreements ; (c) pays all expenses mcurred in enforcing this Secun~ Instrument, mcluding, 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 Instrument; and (d) takes such actIon as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, 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 chøck, proVlded any such check is drawn upon an institutIon whose deposits are lIlSured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by. Borrower, dris Security Instrument and obligations secured hereby sha11 remain fully effective as if no acceleration had occurred. However, this nght to relDstate shall not apply m the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Sèrvicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Secunty Instrument) can be sold one or more times without pnor notIce to Borrower. A sale nugbt result in a change in the entity (known as the "Loan SerVlcer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servic~ obligations under the Note, this Secunty Instrwnent, ~d Applicable Law. There also nught 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 wntten notice of the change which, will state the name and address of the new Loan Servicer, the address to which payments should be made. and any other information RESP A requires in connection With a 0060844073 . -6(WV) (0006).01 @ Page r1 of 16 In",.I8~ ~ Fonn 3051 1/01 000507 notice of transfer of servIcjng. If the Note 18 sold and thereafter the Loan 18 semced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicmg obligations to Borrower will remam WIth the Loan Servlcer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless othe1'W1se proVIded by the Note purchaser. Neither Borrower nor Lender may. conunence, Join, or be jomed to any judicIal achon (as either an individua1litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice gIven lD compliance with the reqwrements of Section 15) of such alleged breach and afforded the other party hereto a reasonable penod. after the gmng of such notice to take correcttve action. If Applicable Law provides a tnne penod 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 opportwùty to cure gIven to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to SectIOn 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substance.$. 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 .containúig asbestos or fonnaldehyde, and radioactive materials; (b) "Environmental Law" means federa1laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" mcludes any response action, remedial action, or removal action, as defined in EnVlromnental 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 pernut the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or m the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that 18 lD 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 condit:¡.on 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 recognízed to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Le:!1der wntten notice of (a) any lDvestigation, claun, demand, lawsuit or other action by any govennnental or regulatory agency or private party Involving the Property and any Hazardous Substance or Envll"onmental Law of which Borrower has actual knowledge, (b) any Environmental Conditiön, mcluding but oot Jinnted to, any spilling, leaking, discharge, release or threat of release of my Hazardous Sublitance, 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 pnvate 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 Enviromnenta.1 Law. Nothing herein shan create any obligation on Lender for an Envlromnental Cleanup. 0060844073 flit -6(WY) {OO(6).01 PlIge 12 of 16 '-1if Form 3051 1/01 000508 NON~UN1FORM 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 shaII specify: (a) the dèfault; (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 th~ 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 InstrtMlent and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non~existence of a default or any other defense of Borrower to acceleration and sale. U the defaùlt is not cured on or béfore the date specified in the notice, Lender at its option may require immediate payment in run of all sums secured by this Security Instrument ·without further demand and may invoke the power of sale and any other remedies pel1Ditted 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. U Lender invokes the power of sale, Lender shall give Dotice 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 pub&h the notice of salet and the Prop~rty shall be sold in the manner prescribed by Applicable Law. Lender or its desijplee 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) åDy excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Secunty .Instrument, Lender shall release this Security Ins~nt. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but oruy û the fee is paid to a third party for sel"Vlces r~ndered and the charging of the fee IS pennitted \Ulder Applicable Law. 24. Waivers. Borrower releases and waives all nghts under and by VIrtue of the homestead exemption laws of Wyommg. 0060844073 . -6(WY) (0006).01 Iþ Page 13 of 16 "-$% Form 3051 1/01 000509 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contamed in this SecurIty Instrument and in any Ri!1er executed by Borrower and recorded with it. Witnesses: ~ MARCUSYI~ BN (Seal) -Borrower ~~~ (Seal) -Borrower (Seal) -Borrower (Sea]) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0060844073 e·6(WY) (0006).01 ¡ þ Page 140116 Fonn 3051 1/01 ::IJA~ STATE OF.wtu.lV.OA~ ß ÒtJ tJ €,.(I It t..> ~ ;;¿f.o~ The foregoing mstnnnent was acknowledged before me this by MARCUS MICKELSEN &: TEENA MICKELSEN My COJIl1D18sion Expires: \\\,,\\III/IIilil' ~,\\\'i.\,\ f. GA.i//''~ .~"':.'~'\; .......... ~~ ~v ~:.... ...... ....~~ ! ./NOTA.c '\:ø\. ~ : "-r 1- \ ~ ... . ~ r. = ::! 0.. i :: \*\ ÞÚBUC ./ ¡ ';; In. .... ....* ~ ~:"'~ .. '.- s ~: ..¡,..;:...........~. ~ ~ :<::--t"\r § ;/""/: v,.. ID~ 1/.\\'''\ 111111'lIIn\\\\\'i. 0060844073 ~ -6(WY) (0006).01 000510 County 55: .:T l.vL1 c:2 007 Residing in Idaho Falls, Idaho Commission Expires 03··19~201 0 Page 16 of 16 '''.'''f{¡(' Form 3051 1/01 0005j.j. TO BE RECORDED WIm THE SECURITY INSTRUMENT LENDER: F~RST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK N.A. BORROWER: MARCUS MICKELSEN &: TEENA MICKELSEN 0060844073 PROPERTY: 215 NORTH FOREST STAR VALLEY RANCH, wyoming 83127 RESIDENTIAL CONSTRUCTION LOAN RIDER INCLUD1NG SECURITY AGREEMENT TO THE DEED OF TRUSTIMORTGAGE THIS RESIDENTIAL CONSTRUCTION LOAN RIDER shall be deemed to amend and supplement the Deed of Trust/Mortgage (the flSecurity Instrument"), of the same date given by the undersigned (the "Borrower") to secure Borrower's Note (''Note'') and Addendum to Note to Lender of the same date "and covering the property ("Property") described in the Security Instrument. All terms defined in the Note and elsewhere in the Security Instrument shan have the same meaning in this Rider. AMENDED AND ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender fuxther covenant and agree as follows: 1. Residential Construction Loan Agreement. Borrower agrees to comply with the covenants and conditions of the Residential Construction "Loan Agreement ("Loan Agreement") between Borrower and Lender, which is incorporated herein by this reference and made a part of this Security Instrument. The Loan Agreement provides for the constructton of certain Improvements ("Improvements") on the Property. All advances made by Lender pursuant to the Loan Agreement shan be an indebtedness of Borrower secured by this Security Instrument as amended and such advances may be obligatory under the terms of the Loan Agreement. The Seëurity Instrument secures the payment of all sums and the performance of all covenants required by the Lender in the Loan Agreement. Upon the failure of Borrower to keep and perform all the covenants, conditions and agreements of the Loan Agreement, the princípaI sum and all interest and other charges provided for in the loan documents and secured hereby shall. at the option of the Lender, become due and payable. 2. Construction Loan Deed of Trust/Mortgage. This Security Instrument is a flconstruction mortgage" securing an obligation incurred for the construction of the Improvement on the Property including the acquisition cost of the Property, if any. and any notes issued in extension, renewal. or substitution thereof. Borrower affnms, acknowledges and warrants that prior to the recordation of this RCLA Rider to Security Instrument Page 1 of 5 812003FH6D16X 0005~2 Security Instrument, as amended, in the Real Property Recor$ of the county or counties where the Property is located, no Improvements contemplated by the Loan Agreement have been constructed, no 'work has been performed, and no materials have been ordered or delivered. 3. Future Advances. This Security Instrument shall secure in addition to the sum evidenced by the Note all funds hereafter advanced by Lender to or for the benefit of Borrower, as contained in the Contract and/or due under the Loan Agreement and all indebtedness or obligations presently or hereafter owed by Borrower to Lender, however arising, whether by note, contract, tort, guaranty, operation of law or otherwise; whether or not the advances or events creating such debts or obligations are presently foreseen; and regardless of the class of debts or other obligations, be they secured or unsecured or arising from commercial, credit card or consumer transactions; or for any other purpose. All future advances shall be made within the time limit authorized by the laws of the State of Wyoming 4. Disbursements to Protect Security. All swns disbursed by Lender prior to completion of the Improvements to protect the security of this Security Instrument, up to the principal amount of the Note and any future advances,. shall be treated as disbursements pursuant to the Loan Agreement. All such sums shall bear interest from the date of disbursement at the rate stated in the Note and the Addendum to the Note, unless the collection from Borrower of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate which may be collected from Borrower under applicable law and shall be payable upon notice from Lender to Borrower requesting payment therefore. 5. Assignment of Rights or Claims. From time to time as Lender deems necessary to protect Lender's interest, Borrower sluIll, upon request of Lender, execute, acknowledge before a notary, and deliver to Lender, assigmnents of any and all rights or claims which relate to the construction on the Property. 6. Breach by Borrower. In case of breach by Borrower of the covenants and conditions of the Loan Agreement, Lender, at Lenderts option, with or without entry upon the Property, (a) may invoke any of the rights or remedies provided in the Loan Agreement, or (b) may accelerate the sums secured by this Security Instrument and invoke any of those r.emedies provided for in this Security Instrument,. or (c) may do both although failure to exercise any of its rights and remedies at anyone time does .not constitute a waiver or modification of any conditions, rights or remedies in the future. 7. Amortization and Löan Agreement. After the commencement of amortization of the Note, the terms of the Loan Agreement shall be deemed to have been satisfied. There shall be no claim or defense arising out of or in connection with the Loan Agreement agaiDst the obligations of the Note and this Security Instrument. 8. Property. The property covered by this Security Instrument includes the property described or referred to in this Security Instrument, together with the following, all of which are referred to as the I'Property". The portion of fue Property described below which constitutes .real property is sometimes refcmed to as the "Real :Property". The portion of the Property which constitutes personal property is sometimes referred to as the "Personal Property", listed as follows: Any and all buildings, Improvements (provided in the Loan Agreement or otherwise), and tenements now or hereafter erected on the Property; any and all heretofore and hereafter vacated alleys 0060844073 RCLA Rldcr to Sccurlty InsU'Ument Page 2 ofS i 812003 FH6D16Y 000513 and streets abutting the Property, easements; rights, appurtenances, rents (subject however to any assignment of rents to Lender), leases, royalties, mineral, oil and gas rights and profits, water, water rights and water stock appurtenant to the Property (to the extent they are included in Borrowerts fee simple title); any and all fixtures, machinery, equipment, building materials, appliances, and goods of every nature whatsoever now or hereafter located in, or on, or used, or intended to be used in connection with the Property and all replacements and accessions of them., including, but not limited to, the following items, which are hereby recognized by the parties to this instrument as fixtures: appliances for the purpose of supplying or distributing heating, cooling, electricity, gas, water, air and light; security and access control apparatus; plumbing and plumbing, fixtures; refrigerating, cooking and laundry equipment; carpet, floor coverings and interior and exterior window treatments; furniture and cabinets; interior and exterior sprinkler plant and lawn maintenance equipment; fire prevention and extinguishing apparatus and equipment, water tanks, swimming pool, èompressor, vacuum cleaning system, disposal, dishwasher, range, and oven, any shrubbery and landscaping; any and all plans and specifications for deve1opm.ent of or construction of Improvements upon the Property; any and aU contracts and subcontracts relating to the Property; any and aU accounts, contract rights, instruments, documents, general intangibles, and chattel papèr arising from or by virtue of any tr/1.DSactions related to the Property; any and all permits, licenses, franchises, certifications, and other rights and privileges obtained in cOIUlection with the Property; any aild aU products and proceeds arIsing from or by virtue of the sale, lease, or other disposition of any of the Property; any and an proceed$ payable or to be payable under each policy of insurance relating to the Property; any and all proceeds arising from the taking of all or part of the Property for any public or quasi-public use under any laW', or by right of eminent domain, or by private or other purchase in lieu thereof; all building permits, certificates of occupancy, certificates of compliance, any right to use utilities of any kind including water, sewage, drainage and any other utility rights, however arising whether private or public, present or future, including any reservation, permit, letter, certificate, license, order, contract or otherwise and any other permit, letter, certificate, license, order, contract or other document or approval received from or issued by any governmental entity, quasi-govermnental entity common carrier, or public utility in any way relating to any part of the Property or the Improvements, fixtures and equipment thereon; all other interests of every kind and character which Borrower now has or at any time hereafter acquires in and to the Property, including all other items of property and rights described elsewhere in this Security Instrument. 9, Security Instrument. This Security Instrument shall be a security agreement grantmg Lender a first and prior security intßIest in all of Borrower's right, title and interest in, to and under the Personal Property, under and within the :m.eaning of applicable statues of this state, located on or acquired for installation on or used in the operátion of the real property, including, but not limited to, all construction materials, goods, equipment and fixtures, and all accessions, additions and replacements thereof. Aß well as a mortgage granting a lien upon and against the Real Property. In the event of any foreclosure sale all of the Real and Personal Property may, at the option of Lender, be sold as a whole or in any part. It shall not be necessary to have present at the place of such sale the Personal Property or any part thereof. Lender shall have all the dghts, remedies and recourses with respect to the Personal Property afforded to a "Secured P~ty" by the applicable statutes of this state in addition to and not in limitation of the other rights and recourse afforded Lender under this Security Instrument. Borrower shall, upon demand, pay to Lender the amount of any and all expenses, including the fees and disburs.ements 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; (ü) the custody, prese~ation, use or operation of, or the sale of, collection from, or other realization upon any property, real and/or personal, described in this Security Instrument, (iii) the exercise or enforcement of any of 0060844073 RCLA Rider to Security Instrumcnt Page 3 of S 812003 PH6D16Z 00051.4 the rights of Lender under this Security Instrument; or (iv) the failure by Borrower to perform or òbserve any of the provisions or covenants in this Security Instrument. 10. Completion. Lender shall not be responsible for the completìon of the Improvements, and shall not in any way be considered a guarantor or surety of performance by Borrower. In the event the Improvements are not completed according to the Plans and Specifications approved by Lender, and it is determíned for whatever reason the Lender does not have a lien arising by or through Borrower, then Lender shIIll have a valid lien for its loan amount, less the amount reasonably necessary to complete the Improvements, or in such event Lender, at its option, shall have the right to complete the Improvements, and the lien shall be valid for the· loan amount. Paragraph 6 of the Security Instrument. The first sentence of paragraph 6 of the Security Instrument is hereby modified to read as follows: Borrower shaH occupy, establish and use the Property as Borrower's principal residence wlthin sixty (60) days from the èxecution of the Modification Agreement and shall continue to occupy the Property as Borrower's principal residence for at least one (1) year after the date of occupancy, ·unless Lender otherwise agrees in writing, which consent shall not be umeasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. All other provisions in Paragraph 6 of the Security Instrument remain unchanged. 11. Invalid Provisions. If any provision of this Security Instrum~nt is declared invalid, illegal, or unenforceable by a court of competent jurisdiction, then such invalid, illegal or unenforceable provision shaU be severed from this Security Instrument and the remainder enforced as if such invalid, illegal or unenforceable provision is not a part of this Security Instrument. 12, Address. The name and address of the Borrower/Debtor during construction of the Improvements is: MARCUS MICKELSEN 6' TEENA MICKELSEN 4413 CHEROKEE HEIGHTS IDAHO PALLS, Idaho 83406 The name and address of the Lender/Secured Party is: FIRST HORIZON HOME ~OANS, A DIVISION OF FIRST TENNESSEE BANK N.A. 3505 EAST OVERLAND ROAD ~RIDIAN, ID 83642 13. Other Provisions. The following notice is required by law: IMPORTANT NOTICE: YOU ARE HEREBY.NOTJlflliJJ THAT ANY PERSON PERFORMING LABOR ON YOUR PROPERTY OR FURNISHING MATERIALS FOR THE CONSTRUCTION, REPAIR, OR IMPROVEMENT OF YOUR PROPERTY WILL BE ENTITLED TO A LIENAGAJNST YOUR PROPERTY IF HE IS NOT PAID IN FULL, EVEN mOUGH YOU MA Y HAVE PAID THE FULL CONTRACT PRICE TO YOUR CON'l1L\CTOR. THIS COULD RESULT IN YOUR PA YJNG FOR LABOR AND MATERIALS TWICE. THIS LIEN CAN BE ENFORCED BY THE SALE OF YOUR PROPERTY. TO AVOID THIS RESULT, YOU MAY DEMAND FROM YOUR CONTRACTOR LIEN WAIVERS FROM ALL PERSONS PERFORMING LABOR OR FURNISHING MATERIALS FOR THE WORK ON YOUR PROPERTY. YOU MAY WI'I1ßIOLD PAYMENT TO THE CONTRACTOR IN THE AMOUNT OF ANY UNPAID CLAIMS FOR LABOR 0060844073 RCLA Rider to Security Jnslnlment Page 4 of 5 812003 FH6D17A 000515 FOR MATERIALS. YOU ALSO HAVE THE RIGHT TO DEMAND FROM YOUR CONTRACTOR A COMPLETE LIST OF ALL LABORERs AND MATERIAL SUPPLIERS UNDER YOUR CONTRACT, AND 'IBE RIGHT TO DETERMINE FROM THEM IF THEY HAVE BEEN PAID FOR LABOR PERFORMED AND MATERIALS FURNISHED. By signing below I Borrower accepts and agrees to the terms and covenants contained in this Residential Construction Loan Rider. B~ ~(ð~ Borrower TEENA MJ;CKEL EN Borrower Borrower Acknowledgments Attached Please attach the Appropriate County/State Specific Notary Acknowledgment 0060844073 RCLA Rider to Security Instrument Page 5 of 5 8/2003 FH6D17B