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HomeMy WebLinkAbout935647 - - - - . - + - "i j Return To: FHHL - POST CLOSING MAIL ROOM 1555 W WALNUT HILL LN #200 MC 6712 IRVING, TX 75038 Prepared By: FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK N.A. 1075 S. UTAH, SUITE 100 IDAHO FALLS, ID 83402 RECEIVED 12/17/2007 at 3:58 PM RECEIVING # 935647 BOOK: 681 PAGE: 390 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY 000390 [Space Above Tlús Line For Reconting Data] 0062022546 MORTGAGE MIN 1000852 00620225468 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated December 12th, 2007 together with all Riders to this document. (B) "Borrower" is JOHN MORGAN 6< JENNIFER REED, Husband 6< Wife Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING -Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS Form 3051 1/01 . -6A(WY) (0005).02 Page ~ of 15 InitlaIS:~ Cfh'L II111111111111111111111111111111111 VMP Mortgage Solutions, Inc. (D) "Lender" is FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK N.A. Lender is a NATIONAL BANK organized and existing under the laws of THE UNITED STATES OF AMERICA Lender's address is 4000 HORIZON WAY, IRVING, TEXAS 75063 000391.·' (E) "Note" means the promissory note signed by Borrower and dated December 12 th, 2007 The Note states that Borrower owes Lender TWO HUNDRED FIFTY FIVE THOUSAND TWO HUNDRED FIFTY & 00/100 Dollars (U. S. $ 255 , 250 . 00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JANUARY 1, 203 B (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property. " (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (1-1) "Riders" means all Riders. to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: D Adjustable Rate Rider D Balloon Rider D VA Rider D Condominium Rider D Plmmed Unit Development Rider D Biweekly Payment Rider D Second Home Rider D 1-4 Family Rider D Other(s) [specify] (1) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final,· non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic tenninal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such tem1 includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (IV!) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (0) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrwnent. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.c. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F,R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the san1e 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 Lom1 does not qualify as a "federally related mortgage loan" under RESPA. 0062022546 . -6A(WY) (0005).02 @ Initials: ~1I'ì 911, 'ro1 Page20115 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not Ùlat party has assumed Borrower's obligations under ùle Note and/or this Security Instrument. TRANSfER Of RIGHTS IN THE PROPERTY 000392 This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and moditications of ùle Note; and (ii) the perfoffilance of Borrower's covenants and agreements under ùlis Security Instrument and the Note. For tIlis purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to tile successors and assigns of MERS, WiÙl power of sale, the following described property located in the County of Lincoln [Type of Recording Jurisdiction] [Name of Recording Jurisdiction) All that tract or parcel of land as shown on Schedule "A" attached hereto which is incorporated herein and made a part hereof. Parcel ID Number: County: 12 - 3 41- 31-1- 0 0 - 2 5 5.00 Ci ty: which currently has the address of 1592 STRAWBERRY CREEK [Street] BEDFORD [City) ,Wyoming 83112 [Zip Code] ("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 ùlis Security Instrument. All of Ùle foregoing is referred to in ùlis Security Instrument as the "Property. " Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in ùlis Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of tIlose interests, including, but not limited to, ùle 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 tIlat Borrower is lawfully seised of tile 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 Ulliform security instrument covering real property. 0062022546 . -6A(WY) (0005).02 Œ> Page 3 of 15 Inl\lal.:~ a~l . f / ~orlm 3051 1/01 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Princip41, Interest, Escl'ow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due i the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late c11arges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Paymedts due under the Note and this Security Instrument shall be made in U.S. currency. However, if any chegk 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 Ù1e Note and ù1is Seç:urity Instrument be made in one or more of the following fonns, as selected by Lender: (a) cash; (b) mone~ 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)iElectronic Funds Transfer. Payments are deemed recbived by Lender when received at Ù1e location designated in the Note or at such où1er location as may be ~esignated 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 ù1e Loan current. Lender may qccept any payment or partial payment insufficient to bring the Loan current, wiù10ut waiver of any rights he~eunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obl~gated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied aSi of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such ~napplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so wiù1iÚ a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applie4 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 shaH relieve Borrower from making payments due under the Note and this Security Instrument or perforn1ing the covenants and agreements secured by ù1Ís 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 Ù1e Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in ù1e order in which it became due. Any remaining amounts shall be applied first to late charges, second to any où1er 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 sufticient éU1JOunt to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more Ù1an one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to Ù1e repayment of ù1e Periodic Payments if, and to Ù1e extent that, each payment can be paid in full. To the extent ù1at any excess exists after Ù1e 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 tirst to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change ù1e amount, of ù1e Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on ù1e day Periodic Payments are due under Ù1e Note, until ù1e Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and où1er items which can attain priority over ù1is Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on Ù1e Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance Wiù1 Ù1e provisions of Section 10. These items are called "Escrow Items." At origination or at any time during Ù1e tenn of Ù1e Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of an10unts to be paid under this Section. Borrower shall pay Lender Ù1e Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of 000393 . -6A(WY) (0005) 02 ® Page 4 0115 InitlalS~ {J~"L (Flr~ 3051 1/01 000394 Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan 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 applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pennits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If ù1ere is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as detined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender ù1e mnount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deticiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up ù1e deficiency in accordance with RESPA, but in no more ù1an 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on ù1e Property, if any, and Community Association Dues, Fees, and Assessments, 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 Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of ù1e lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of ù1e lien while ù10se proceedings are pending, but only until such proceedings are concluded; or (c) secures from ù1e holder of ù1e lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines that any part of the Property is subject to a lien which can attain priority over ù1is Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 . -6A(WY) (0005).02 @ 91;)1, Iro1 InltlaIS:~ Page 5 of 15 000395 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in cOlmection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by tire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and tJoods, 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 tJood zone determination, certitication and tracking services; or (b) a one-time charge for tJood zone determination and certitication services and subsequent charges each time remappings or similar changes occur which reasonably might affect such deteo11ination or certitication. 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 tJood zone determination resuJting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 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 certiticates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any foo11 of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by 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 . -6A(WY) (0005)02 @ Paga 6 of 15 Initla~ /J/IQ ( Form 3051 1/01 000396 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. I f Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, urness Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or urness extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, déUnage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Urness it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if déUnaged 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 sut1icient 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, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially fa]se, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material infonnation) in cOlmection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Unde¡' this Security Instrument. If (a) Borrower fails to perfÖn11 the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable . -6A(WY) (0005).02 @ InltlaI5:~ 9{Q~, 1m1 Page 7 of 15 000397' attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any éUllounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge urness Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in etIect. 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 Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the éUllount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such tem1ination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force 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 ten11S and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums) . As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any aftiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange tÜr sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an aftiliate 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 tem1ed "captive reinsurance." Further: (a) Any such agreements wiII not affect the amounts that Borrower has agreed to pay for Mortgage insurance, or any other terms of the Loan. Such agreements wiII not increase the amount Borrower wiII owe for Mortgage Insurance, and they wiII not entitle Borrower to any refund. . -6A(WY) (0005)02 Œ> Inillal~ qi:S 1/01 Page 8 0115 00039B (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; ForfeitUl'e. All Miscellaneous Proceeds are hereby a~~igned to and ~hall be paid to Lender. If the Property i~ damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During ~uch repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by 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 of the Property, the Miscellaneous Proceeds ~hall 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 of the swns 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 f(¡lIowing fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or los~ in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. [n the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the swns sel:ured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, 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 of the Property or to the sums secured by this Sel:urity Instrument, wheÚ1er or not Ú1en due. "Opposing Party" means the ú1ird party that owes Borrower Miscellaneous Proceeds or Ú1e 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 Ú1e Property or oú1er material impainnent of Lender's interest in the Property or rights under this Sewrity 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 wiú1 a ruling Ú1at, in Lender's judgment, precludes forfeiture of the Property or other material impainnent of Lender's interest in Ú1e Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impainnent of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Mi~cellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. . -SA(WY) (0005).02 @ Page 9 0115 Inltial~ {J,iW- / Form 3051 1/01 000399 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liabìlìty 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 Lnterest of Borrower or in amounts less than the amount then due, shall not be a waiver of or prech.¡de 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 w-signs ù1is Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey ù1e co-signer's interest in the Property under the tenns of this Security Lnstrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any oÙ1er Borrower can agree to extend, modify, forbear or make any accommodations wiù1 regard to the tenns of this Security Instrument or the Note without the co-signer's consent. Subject to Ù1e 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 aU of Borrower's rights and benetits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liabìlìty 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 Ù1e 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, Ù1e absence of express auù10rity 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 ù1is Security Instrument or by Applicable Law. If Ù1e Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that ù1e interest or où1er loan charges collected or to be collected in connection with the Loan exceed the pel1llitted limits, Ù1en: (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 ex::eeded pennitted 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. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to anyone Borrower shall constitute notice to all Borrowers unless A pplicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at anyone time. Any notice to Lender shall be given by delivering it or by maìlìng it by first class mail to Lender's address stated herein unless Lender has designated anoÙ1er address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by Ù1is Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy Ù1e corresponding requirement under this Security Instrument. . -6A(WY) (0005).02 @ qdJ?; ,m, Inltlal~ Page 10 of 15 000400 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but sLlch 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 contlicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrowel"s Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or benetìcial interest in the Property, including, but not limited to, those beneticial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the 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. I f 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 wiÙlin which Borrower must pay all sums secured by ùlis Security Instrument. If Borrower fails to pay these sums prior to ùle expiration of ùlis period, Lender may invoke any remedies permitted by this Security Instrument WiÙl0ut furùler notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. 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) tive days before sale of ùle Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which ùlen would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any oùler covenants or agreements; (c) pays all expenses incurred in enforcing ùlis Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in ùle Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure ùlat Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay ùle 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 t(JI111S, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occLlrred. However, this right to reinstate shall not apply in ùle case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together WiÙl ùlis Security Instrument) can be sold one or more times wiÙl0ut prior notice to Borrower. A sale might result in a change in ùle entity (known as the "Loan Servicer") that collects Periodic Payments due under Ùle Note and this Security Instrument and performs other mortgage loan servicing obligations under Ùle Note, ùlis Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a . -6A(WY) (0005).02 @ Pege11 0115 Initiels'\fVY\ On I' Form 3051 1/01 000401. notice of transfer of servicing. If the Note is sold and thereatler the Loan is serviced by a Loan Servicer other Úlan the purchaser of Úle Note, Úle mortgage loan servicing obligations to Borrower will remain with. the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. NeiÚler Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or Úle member of a class) that arises from the other party's actions pursuant to this Security Instrument or Úlat alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of Úlis paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy Úle 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 detined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other tlammable 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 of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a conditÌon that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or pemlit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anYÚling affecting the Property (a) that is in violation of any EnvirOlIDlental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nonnal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or otller action by any governmental or regulatory agency or private party involving 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 Úle Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance WiÚl Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. . -6A(WY) (0005).02 ® Page 1201 15 InitlaIS:~ q~. . Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as folloVO00402 22. Acceleration; Remedies. Lender shall give notice to BorroweJ' 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 shaH specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-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. It' Lencler invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower ~hall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrumen,t, but only if the fee is paid to a third party for services rendered and the charging of the fee is pemlitted Ul:der Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. . -6A(WY) (0005).02 @ Page 1301 15 Initia~ q~ Form 3051 1/01 000403 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0062022546 .-6A(WY) (0005).02 ® Page 1401 15 Form 3051 1/01 000404 ST A TE OF WYOMING, LINCOLN County ss: The foregoing instrument was acknowledged before me this I~ ~ daAj 1 ~Þ..v/J ~O()7 by JOHN MORGAN & JENNIFER REED My Commission Expires: 9 -/5 - / / ~) ,¿¿ ...<ly---e/l~ Notary Public NOTARY PUBLIC County of· Lincoln State of Wyoming My Commission Expires Sa Jtamber 15, 2011 0062022546 . -6A(WY) (0005).02 @ InltlaIS:~ qit~ 1m1 Paga 1501 15 Exhibit A File 6010716029 Description 000405 The land refened to in this document is situated in the State of Wyoming, County of Lincoln, and is described as follows: Portions of the Southwest Quarter of the Northeast Quarter and the Southeast Quarter of the Northwest Quarter of Section 31, Township 34 North Range 118 West of the 6th P.M., Lincoln County,-Wyoming located South of the centerline of the Strawberry Creek County Road No. 12-126 and being more particularly described as follows: BEGINNING at the Center Quarter Corner of said Section 31 and running thence North 34°10'59" West, 618.99 feet, more or less, to the beginning of a curve to the right in the centerline of said County Road and having a radius of 1909.859 feet; thence running Southeasterly, along said curve through a central angle of 20°26' an arc distance of 681.111 feet to a tangent line; thence South 63°45'05" East, along last said tangent line, 202.64 feet to the beginning of a 19° curve to the left having a radius of 301.56 feet; thence running along last said curve through a central angle of 20°16'05" an arc distance of 106.674 feet to a point on said curve; thence leaving said centerlinef.nd running South, 208.45 feet, more or less, to a point in South line of said Southwest Q arter of the Northeast Quarter, said point being 728.00 feet North 89°44'53" West fr m the Southeast corner ofsaid Southwest Quarter of the Northeast Quarter; thence North 89°44'53" West, 587.08 feet to the POINT OF BEGINNING ~ q~