Loading...
HomeMy WebLinkAbout931754 G[~I~ WHEN RECORDED, MAIL TO: Bank of Jackson Hole Post Office Box 7000 Jackson, WYOMING 83002 This Instrument was prepared by: Bank of Jackson Hole Post Office Box 7000 Jackson, WYOMING 83002 307-732-3050 Loan Number: 172310254 Order Number: 61513 RECEIVED 7/31/2007 at 2:08 PM RECEIVING # 931754 BOOK: 667 PAGE: 535 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY 000535 (Space Above T is Line For Recording Data) MO TGAGE MIN: 100015700083916037 DEFINITIONS Words used in multiple sections ofthis 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 documfnt are also provided in Section 16. (A) "Security Instrument" means this document, which is da ed July 26, 2007, together with all Riders to this document. (B) "Borrower" is David Lomeli and Stephanie Marie Lo eli, husband and wife. Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, nc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mo gagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone umber ofP .0. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is Bank of Jackson Hole, organized and existi g under the laws of Wyoming. Lender's address is Post Office Box 7000, Jackson, WYOM NG 83002. (E) "Note" means the promissory note signed by Borrower an dated July 26, 2007. The Note states that Borrower owes Lender ONE MILLION and no/100 Dollars (U .S. $1,000,000.00) plus inte est. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than August 1, 2047. (F) "Property" means the property that is described below un er the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interes , any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument th t are executed by Borrower. The following Riders are to be executed by Borrower (check box as applicable): I!I Adjustable Rate Rider 0 condominiumtider o Balloon Rider 0 Planned Unit D velopment Rider o 1-4 Family Rider 0 Biweekly Pay ent Rider o Other (SpecifY) - (I) "Applicable Law" means all controlling applicable federal, tate and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable fin 1, non-appealable judicial opinions. (J) "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, horn owners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of fUl ds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, te ephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. S ch term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wi e transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in ection 3. (M) "Miscellaneous Proceeds" means any compensation, sett ement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Secti n 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or o o Second Home Rider VA Rider WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INS RUMENT with MERS age 1 of 9 Form~ Bo~."') '";I;~ _~ IDS. Inc. . (800) 554-1872 000536 other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (0) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F .R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESP A" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "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 ofthe Note; and (ii) the perfonnance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns ofMERS, with power of sale, the following described property located in the County of Lincoln: Lot 28 of SHADOW DANCER EST A TES, Lincoln County, Wyoming, as shown on the official plat thereof filed August 11, 2004, as Receiving No. 901862, in the Office of the Clerk, Lincoln County, Wyoming, as Plat No. 173-C. Parcel ID Number: 36191040048600 which currently has the address of: 232 Shiras Drive Alpine, WYOMING 83128 ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, ¡fnecessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all ofthose interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. 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 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 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 U.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 ofthe following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period 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 Borrower might have now or in the future against Lender shall relieve Bon"ower 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 applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts IDS. Inc. - (aoo) 554- 1872 Borrower(s) Inl . WYOMING - Single Family - Fannie Mae/Freddle Mac UNIFORM INSTRUMENT with MERS Page 2 of9 I I I I I I I shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. : If Lender receives a payment from 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 payrrtent and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the r¢payment ofthe Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the'payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary :prepayments shall be applied first to any prepayment charges and then as described in the Note. I Any application of payments, insurance proceeds, or rttiscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. I 3. Funds for Escrow Items. Borrower shall pay to Le*der 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 ampunts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance 0n the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender þnder Section 5; and (d) M0l1gage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortg¡age Insurance premiums in accordance with the provisions of Section IO. These items are called "Escrow Items." At origination or at anr time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, ifany, be escrowed QY Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amourlts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to ¡:jay 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, Borrower shall pay directly, when and where payable, t~e amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lend~r receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and tal provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase 'Icovenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrowen fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in sucr amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in !:\n amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESP A, and (b) not to exceed the maximum ambunt a lender can require under RESP A. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimat~s of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. I The Funds shall be held in an institution whose depo$its 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 RESP1. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the EscrowiItems, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreeme*t is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall [give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. I 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. Ifthere is a shortage of Funds held in dscrow, as defined under RESP A, Lender shall notify Borrower as required by RESP A, and Borrower shall pay to Lender the amount nece~sary to make up the shortage in accordance with RESP A, but in no more than 12 monthly payments. Ifthere is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESP A, and Borrower shall pay to Lender the amo~nt necessary to make up the deficiency in accordance with RESP A, but in no more than 12 monthly payments. I Upon payment in full of all sums secured by this Securitr Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. I I 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 paynients or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these itefs are Escrow Items, Borrower shall pay them in the manner provided in Section 3B' h II tl d· h I· h· h hi.. tho S . I I B ( ) .. . orrower s a promp y ISC arge any len w IC as Rnonty over IS ecunty nstrument un ess orrower: a agrees m wntmg to the payment of the obligation secured by the lien in a mannel' acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends agairst enforcement ofthe lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement ofthe lien while those procef:dings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory ~o Lender subordinating the lien to this Security Instrument. If Lender determines that any pm1 of the Property is subject to a lien wþich can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within IO days ofthe 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. I Lender may require Borrower to pay a one-time charge If or a real estate tax verification and/or reporting service used by Lender in connection with this Loan. I I I WYOMING - Single Family - Fannie Mae/FreddJe Mac UNIFORM INSliRUMENT with MERS ~age 30f9 I I I i I I 00053? IDS, Inc. - (800) 554-1872 000538 S. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, 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 certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any ofthe coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in 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 ofthe 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 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. 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 ofloss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proofofloss ifnot made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be 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. Bon'ower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution ofthis 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 control. 7. Preservation, Maintenance and Protection ofthe 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 BOlTower is residing in the Property, Borrower shall maintain the Property in order to prevent the Propeliy from deteriorating 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 proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, BOlTower or any persons or entities acting at the direction 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 WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 4 of 9 lOS, Inc. - (aDO) 554-1872 Form 3q~01 B,"",,,",) '";tI.,~ 0 I I representations include, but are not limited to, representations Goncerning 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) BOlTowerfails to pelfonn the covenants and agreements contained in this Security Instru~ent, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priori~y over this Security Instrument or to enforce laws or regulations), or ( c) BOlTower has abandoned the Property, then Lender may do ~d pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, inclmding protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but ~re 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, i·eplace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and fuave 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 dijty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. I Any amounts disbursed by Lender under this Sectio¡n 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, Borro"'fer shall comply with all the provisions of the lease. Borrower shall not sUlTender 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. IfB9rrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. I I 10. Mortgage Insurance. If Lender required Mortg~ge Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effeqt. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage In~urance, 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 m<!Jrtgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount ofthe 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-rdfundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Bon-ower any interest dr 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 separ~tely designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making th~ Loan and BOlTower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall ¡:jay 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 BOlTower and Lender providing for such tennination or:until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate providtfd 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 Mortg~ge Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. these agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreem~nts. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have' available (which may include funds obtained from Mortgage Insurance premiums). : As a result ofthese agreements, Lender, any purchaseri0fthe Note, another insurer, any reinsurer, any other entity, or any affiliate of any ofthe foregoing, may receive (directly or indirectly) amo~nts that derive from (or Might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. Ifsuch agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: I (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 afnount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. I (b) Any such agreements will not affect the rights ~orrower 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 ofthe Mortgage Insurance. rro 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. I 11. Assignment of Miscellaneous Proceeds; Forfeitqre. All Miscellaneous Proceeds are hereby assigned to and shall be paid to I Ifthe Property is damaged, such Miscellaneous Procee~s shall be applied to restoration or repair ofthe Property, ifthe 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 h~d an opportunity to inspect such Property to ensure the work has been I WYOMING - Single Family - Fannie Mae/Freddle Mac UNIFORM INSTRUMENT with MERS page 50f9 IDS, Inc.· (aOQ) 554·1a72 . 000539 Lender. Form 3~1 B,,,,,,,,,,(.) l"ffi"~U 000S40 completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by 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 taking, destruction, or loss in value ofthe 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 immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount ofthe 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 fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value ofthe Property immediately before the partial taking, destruction, or loss in value. Any balance shall be 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 immediately before the partial taking, destruction, or loss in value is less than the amount ofthe 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. Ifthe Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair ofthe Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other 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 ofthe Property shall be applied in the order provided for in Section 2. 12. Borrower 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 or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that 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 terms 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 of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, 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, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to 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 law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a 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 will constitute a waiver of any right of action Borrower might have arising out of such overcharge. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 6 of 9 Form~ Bo~.",) '";tI~ ~ U IDS. Inc. - (aoo) 554-1872 i i I 15. Notices. All notices given by Borrower or Lender ir\. connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be 4eemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent QY other means. Notice to anyone Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwisþ. 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 or address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice açldress under this Security Instrument at anyone time. Any notice to Lender shall be given by delivering it or by mailing it by first class map to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with t :1Ïs Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement u1der this Security Instrument. 16. Governing Law; Severability; Rules ofConstruc¡tion. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rightsJand obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable L~w might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a 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 donflicting provision. As used in this Security Instrument: (a) words of the ~asculine gender shall mean and include corresponding neuter words or words ofthe feminine gender; (b) words in the singular shall m~an and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. I 17. Borrower's Copy. Borrower shall be given one CFPY of the Note and of this Security Instrument. 18. Transfer ofthe Property or a Beneficial Interes~ in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but notl 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. I If all or any part of the Property or any Interest in the Irroperty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Bon'ower 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. I If Lender exercises this option, Lender shall give BOlTorer 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 Seqtion 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the ex¡iiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrdwer. 19. Borrower's Right to Reinstate After Acceleratibn. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Inst\'ument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of aljudgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due un4erthis Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; ( c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspecti<~n and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security ~nstrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this ISecurity Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender maYI require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) ¡noney order; ( c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution wrnose 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 rig~t to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice ~fGrievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due unde~ the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, ¡¡nd Applicable Law. There also might be one or more changes ofthe Loan Servicer unrelated to a sale ofthe Note. If there is a change ofthe Loan Servicer, Borrower will be given written notice of the change which will state the name and address ofthe new Loan Servicer, the address to which payments should be made and any other information RESP A requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obli.ations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note pUl'chaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions p~rsuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason ot: this ~ecurity Instrument, until such Borrower or Lender has notitied the other party (with such notice given in compliance with the requireme~ts of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corre¡::tive action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be ~eemed to be reasonable for purposes of this paragraph. The notice of I WYOMING - Single Family - Fannie Mae/Freddle Mac UNIFORM INSTRUMENT with MERS page 7 of9 I I I 000541. IDS. Inc. - (800) 554-1872 FO~¥:' Borrower(s) Initi~ - 000542 acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Bon'ower pursuant to Section 18 shall be deemed to satisfY the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by 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 Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. BOlTower 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 ofthe 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 normal residential uses and to maintenance ofthe Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or 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 of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, BOlTower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall 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 on or before the date specified in the notice may result in acceleration ofthe sums secured by this Security Instrument and sale ofthe Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice ofthe sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall· release this Security Instrument. BOlTower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 80f9 IDS, Inc. - (800) 554-1872 Fo~ 3~' Borrower(s) I~ Witnesses: I 000543 BY SIGNING BELOW, Borrower accepts and agrees rl 0 the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. I i ~ I ~~ I (Seal) l -Borrower Stephanie Seal -Bon'ower STATE OF WYOMING, I-IJ<J CCL,J County ss: I The foregoing instrument was acknowledged before me this :r G::> David Lomeli, and Stephanie Marie Lomeli. Witness my hand and official seal. My Commission Expires: day of J(j,-'-{ WO;¡- by (Seal) ~....~.,..".~~~....~~....~y.......;,y-.¥~~ ~...~~~;:-.;.....~{ f· . KAREN T. WYLIE. ._.~'..'.I.ÙTAH'("\I-~dl.:';J ~. C t'l of ~~,:,~ stJ~~ 01 ) oun y ·r,:", "'lyo'1'iw' d L\r;cn!n . :'.i, .> I I Y . My Commi!Jston E:"pims Ct? (q~ ,~ ~.""",."":"~_'''~'''''~~''':'''''''''-'::'''·í;''''''''.~·'_'_·'' _' :,;,r..,.r.."r\,.,l ~~J.~ otary Public WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS age 9 of 9 Form 3051 1/01 IDS, Inc. - (aoo) 554-1a72 000544' MIN: 100015700083916037 Loan Number: 1723 10254 ADJUSTABLE RATE RIDER (PayOption LIBOR One-Month Index - Payment Caps) THIS ADJUSTABLE RATE RIDER is made this 26th day of July, 2007, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Banl{ of Jackson Hole ("Lender") of the same date and covering the property described in the Security Instrument and located at: 232 Shiras Drive Alpine, WYOMING 83128 (Property Address) THE NOTE CONTAINS PROVISIONS THAT WILL CHANGE THE INTEREST RATE AND THE MONTHLY PAYMENT. THERE MAY BE A LIMIT ON THE AMOUNT THAT THE MONTHLY PAYMENT CAN INCREASE OR DECREASE. THE PRINCIPAL AMOUNT TO REPAY COULD BE GREATER THAN THE AMOUNT ORIGINALLY BORROWED, BUT NOT MORE THAN THE MAXIMUM LIMIT STATED IN THE NOTE. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agrees as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for changes in the interest rate and the monthly payments, as follows: 2. INTEREST (A) Interest Rate Interest will be charged on unpaid Principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 1.750%. The interest rate I will pay may change. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 7(B) of the Note. (B) Interest Rate Change Dates The interest rate I will pay may change on the 1st day of September, 2007, and on that day every month thereafter. Each date on which my interest rate could change is called an "Interest Rate Change Date." The new rate of interest will become effective on each Interest Rate Change Date. The interest rate may change monthly, but the monthly payment is recalculated in accordance with Section 3. (C) Index Beginning with the first Interest Rate Change Date, my adjustable interest rate will be based on an Index. The "Index" is the average of interbank offered rates for one month U.S. dollar-denominated deposits in the London market (IILIBOR"), as published in The Wall Street Journal. The most recent Index figure available as ofthe date 15 days before each Interest Rate Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable infom1ation. The Note Holder will give me notice of this choice. (D) Calculation of Interest Rate Changes Before each Interest Rate Change Date, the Note Holder will calculate my new interest rate by adding THREE AND THIRTEEN TWENTIETHS percentage point(s) 3.650% ("Margin") to the Current Index. The Note Holder PayOptlon UBOR ARM Rider FE-53~ 1) P", 1 ,14 B,"o.""') ,",.... ~(ð ()00545 MIN: 100015700083916037 Loan Number: 172310254 will then round the result of this addition to the nea est one-eighth of one percentage point (0.125%). This rounded amount will be my new interest rate until the next I erest Rate Change Date. My interest will never be greater than 9.950%. Beginning with the first Interest Rate Change Date, my interest rate will never be lower than the Margin. 3. PAYMENTS (A) Time and Place of Payments I will make a payment every month. I will make my monthly payments on the 1st da of each month beginning on September 1, 2007. I will make these payments every month until I have paid all the P incipal and Interest and any other charges described below that I may owe under this Note. Each monthly payment wi I be applied as of its scheduled due date and will be applied to interest before Principal. If, on August 1, 2047, I still owe amounts under the Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at (B) Amount of My Initial Monthly Payments Each of my initial monthly payments until the fir t Payment Change Date will be in the amount of U.S. $2,898.34 unless adjusted under Section 3(F). (C) Payment Change Dates My monthly payment may change as required b Section 3(D) below beginning on the 1st day of September, 2008, and 011 that day every 12th month thereafter. Each of these dates is called a "Payment Change Date." My monthly payment also will change at any time Secti n 3(F) or 3(G) below requires me to pay a different monthly payment. The "Minimum Payment" is the minimum ount Note Holder will accept for my monthly payment which is determined at the last Payment Change Date or as pro ided in Section 3(F) or 3(G) below. If the Minimum Payment is not sufficient to cover the amount of the interest due th n negative amortization will occur. I will pay the amount of my new Minimum Pay ent each month beginning on each Payment Change Date or as provided in Section 3(F) or 3(G) below. (D) Calculation of Monthly Payment Changes At least 30 days before each Payment Change qate, the Note Holder will calculate the amount of the monthly payment that would be sufficient to repay the unpaid1rinCiPal that I am expected to owe at the Payment Change Date in fuIl on the maturity date in substantially equal pay ents at the interest rate effective during the month preceding the Payment Change Date. The result of this calculation i called the "Full Payment." Unless Section 3(F) or 3(G) apply, the amount of my new monthly payment effective on ~ Payment Change Date, will not increase by more than 7.500% of my prior monthly payment. This 7.500% limitation is called the "Payment Cap." This Payment Cap applies only to the Principal and Interest payment and does not apply to any escrow payments Lender may require under the Security Instrument. The Note Holder will apply the Paymen Cap by taking the amount of my Minirnum Payment due the month preceding the Payrnent Change Date and mult plying it by the number 1.075. The result of this calculation is called the "Limited Payment." Unless Section 3(F) r 3(G) below requires me to pay a different amount, my new Minimum Payment will be the lesser of the Limited ayrnent and the Full Payment. I also have the option to pay the Full Payment for my monthly payment. (E) Additions to My Unpaid Principal Since my monthly payment amount changes less equently than the interest rate, and since the monthly payment is subject to the payment limitations described in Sectio 3(D), my Minirnum Payment could be less than or greater than the amount of the interest portion of the monthly pay ent that would be sufficient to repay the unpaid Principal I owe at the monthly payment date in full on the Maturity ate in substantially equal payments. For each month that my monthly payment is less than the interest portion, the Note Holder will subtract the amount of my monthly payment from the amount of the interest portion and will add e difference to my unpaid Principal, and interest will accrue on the amount of this difference at the interest rate requ red by Section 2. For each month that the monthly payment is greater than the interest portion, the Note Holder will a ply the payment as provided in Section 3(A). Bank f Jackson Hole Post ~ffice Box 7000 Jacl{son, MOMING 83002 or at a different place if required by the Note Holder. PayOptlon LIBOR ARM Rider Borrower(s) Init' age 2 of 4 000546 MIN: 100015700083916037 Loan Number: 172310254 (F) Limit on My Unpaid Principal; Increased Monthly Payment My unpaid Principal can never exceed the Maximum Limit equal to ONE HUNDRED FIFfEEN percent (115%) of the Principal amount I originally borrowed. My unpaid Principal could exceed that Maximum Limit due to Minimum Payments and interest rate increases. In that event, on the date that my paying my monthly payment would cause me to exceed that limit, I will instead pay a new monthly payment. This means that my monthly payment may change more frequently than annually and such payment changes will not be limited by the 7.500% Payment Cap. The new Minimum Payment will be in an anlOunt that would be sufficient to repay my then unpaid Principal in full on the Maturity Date in substantially equal payments at the current interest rate. (G) Required Full Payment On the TENTH Payment Change Date and on each succeeding FIFfH Payment Change Date thereafter, I will begin paying the Full Payment as my Minimum Payment until my monthly payment changes again. I also will begin paying the Full Payment as my Minimum Payment on the final Payment Change Date. (H) Payment Options After the first Interest Rate Change Date, Lender may provide me with up to three (3) additional payment options that are greater than the Minimum Payment, which are called "Payment Options." I may be given the following Payment Options: (i) Interest Only Payment: the amount that would pay the interest portion of the monthly payment at the current interest rate. The Principal balance will not be decreased by this Payment Option and it is only available ifthe interest portion exceeds the Minimum Payment. (ii) Fully Amortized Payment: the amount necessary to pay the loan off (Principal and Interest) at the Maturity Date in substantially equal payments. (iii) 15 Year Amortized Payment: the amount necessary to pay the loan off (Principal and Interest) within a fifteen (15) year term rrom the first payment due date in substantially equal payments. This monthly payment amount is calculated on the assumption that the current rate will remain in effect for the remaining tenn. These Payment Options are only applicable if they are greater than the Minimum Payment. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument entitled "Transfer of the Property or a Beneficial Interest in Borrower" is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer oftille by Borrower at a future date to a purchaser. If all 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. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, 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 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. PayOption USOR ARM Rider FE-5313 (0511) Page 3 of 4 000547 MIN: 100015700083916037 Loan Number: 172310254 BY SIGNING BELOW, Borrower accepts and a rees to the tenns and covenants contained in this Adjustable Rate Rider. PayOption UBOR ARM Rider age 4 of 4 Stepha . Seal -Borrower FE-5313 (0511)