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HomeMy WebLinkAbout938060 6010816607 Return To: FHHL - POST CLOSING MAIL ROOM 1555 W WALNUT HILL LN #200 MC 6712 IRVING, TX 75038 RECEIVED 4/7/2008 at 9:31 AM RECEIVING # 938060 BOOK: 691 PAGE: 362 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Prepared By: FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK N.A. 3505 EAST OVERLAND DRIVE MERIDIAN, ID 83642 000362 [Sl¡aœ Above This Line For Recording Dllta] MORTGAGE MIN 100085200634847299 0063484729 DEFINITIONS Words used in multiple se¡;tions of this do¡;ument are defineu below and other words lire defined in Se¡;tiol1s 3, II, 13. 18, 20 and 21. Certain rules regarding the usage of words used in this dO\:U1nent are also provided in Section 16. (A) "Security Instrument" means this document, whidl is dated April 1st, 2008 together with all Riders to this document. (B) "Borrower" is JADE BUTLER, An Unmarried Man t'... l ) (i 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 ~ 0115 Initials: ~ VMP Mortgage Solutions. Ine, 11111111111111111111111111111111111 000363 (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 (E) "Note" means the promissory note signed by Borrower and dated Apr ill s t, 2008 The Note states that Borrower owes Lender TWO HUNDRED TWENTY EIGHT THOUSAND & 00/100 Dollars (V.S. $ 228, 000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than APRIL 1, 2038 (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 WIder the Note, and all smns due under this Security Instrument, plus interest. (II) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The tollowing Riders are to be executed by Borrower [check box as applicable]: D Adjustable Rate Rider D Balloon Rider . D VA Rider D Condominium Rider ¡¡] Planned Vnit Development Rider D Biweekly Payment Rider D Second Home Rider D 1-4 Family Rider D Other(s) [specity] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the etlect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, tees, 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 transter of funds, other tlIan a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic teoninal, telephonic instrument, computer, or magnetic tape .~o as to order, instruct, or authorize a financial institution to debit or credit an account. Such teon includes, but is not limited to, point-ot~sale transters. automated teller madune transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transters. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other tlwn insurance proceeds paid under the coverages described in Section 5) tor: (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 Olnissions 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 tile Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 V.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they lnight be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Sec'urity Instrument, "RESP A" reters to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not quality as a "federally related mortgage loan" under RESPA. 0063484729 . -6A(WY) (0005),02 <Ii> Initials: se Page 2 of 15 Form 3051 1f01 000364 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has asswned Borrower's obligations under the Note and/or tlns Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY TIns Security Instrument secures to Lender: (i) the repayment of tlle Loan, and all renewals, extensions and modifications of tlle Note; and (ii) tIle perfonnance of Borrower's covenants and agreements under this Security Instrument and the Note, For tIns purpose, Borrower does hereby mortgé1ge, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to tIle successors and assigns of MERS, with power of sale, the following described property located in tlle County of Lincoln [Type of Recording Jurisdictionl [Name of Reconling Jurisdiction] LOT 78 OF STAR VALLEY RANCH PLAT 5, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT FILED ON JUNE 30, 1971 AS INSTRUMENT NO. 431709 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. Parcel ID Nwnber: County: 15 SCRUB OAK DRIVE STAR VALLEY RANCH ("Property Address"): ! 12 - 3419 - 01-1- Q5 - 064.00 City: wInch currently has the address of IStreet [City ,Wyoming 83127 IZip Code] TOGETHER WITH all the improvements now lor hereafter erected on tIle property, and all easements, appurtenances, and fixtures now or hereé1fter a part qf the property. All replacements and additions shall also be covered by this Security Instrument. All of the toregoing is referred to in tills Security Instrument as the I "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessar:y to comply with law or custom, MERS (as nominee t()r Lender and Lender's successors and assigns) has the:right: to exercise any or all of those interest¡.;, including, but not limited to, the right to toreclose and sell tl¡e Property; and to take any action required of Lender including, but not limited to, releasing and canceling Ihis Security Instrument. BORROWER COVENANTS that Borrower is: lawfully seised of the est<lle hereby conveyed and has the right to mortgage, grant and convey the Prope:rty and that the Property is unencumbered, except for encwnbrances of record. Borrower warrants and will defend generally the title to tlle Property against all claims and demands, subject to any encumbrances of ~ecord. THIS SECURITY INSTRUMENT combines: unitonn covenants for national use and nOI1-unitonn covenants with limited variations by jurisdiction to, constitute a unitonn security instrument covering real property . 0063484729 . -6A(WY) (0005).02 @ Initials: Sf2 Page 3 of 15 Form 3051 1/01 000365 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 Oil, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Hems pursuant to Section 3. Payments due under the Note and tlus 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 tlùs Security Instrument be made in one or more of tile following forms. as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or caslùer'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 tile Loan current. Lender may accept any payment or partial payment insufficient to bring tile 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, tJlen Lender need not pay interest all unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such 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 wluch Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and tIus Security Instrument or perfonning the covenants and agreements se¡,;ured by this Security Instrument. 2. Application of Payments or Proceeds. Ex¡,;ept as otherwise descrihed in this SectiOJl 2, all payments a¡,;cepted and applied by Lender shall be applied ill the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (¡,;) amounts due under Section 3. SU¡,;]l payments shall be applied to each Periodic Payment in the order in which it be¡,;ame due. Any remaining amounts shall be applied first to late ¡,;harges, second to any' other amounts due under tlus Se¡,;urity Instrument, and then to redu¡,;e the principal halance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment wlùdl includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and tllen 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 the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the crny Periodic Payments are due under the Note, until the Note is paid in full, a swn (the "Fund~") to provide for payment of amounts due for: (a) taxes and assessments and other items wluch can attain priority over tIùs Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on tIle 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 premiwTIS in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the tenn of the Loan, Lender may require tIlat COllUnUluty Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues. tees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under tIus Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds tor any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds tor any or all Escrow Items at any time. Any such waiver may only he in writing. In the event of such waiver, BorrowerWshall pay directly, when and where payahle, the amounts due fÓr any Es¡,;row Items for wluch payment of . -6A(WY) (0005).02 @ Initials: :::J:ß. Page 4 of 15 Form 3051 1/01 000366 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 tor all purposes be deemed to be a covenant and agreement contained in tins 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 it~ 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 al:l:ordam;e with Sel:tion 15 and, upon such rev()(;ation, Borrower shall pay to Lender all Funds, and in such amounts, that are then re4uired under tins Se\:tjon 3. Lender may, at any time, collel:t and hold Funds in an amount (a) suftìl:ient to pemÜt Lender to apply the Funds at the time spedfied under RESPA, and (b) not to eXl:eed 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 tederal agency, instrumentality, or entity (including Lender, if Lender is an in.stitution 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 tor holding and applying the Funds, annually analyzing tile escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eannngs 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 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 RESPA. If there is a shortage 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 the shortage in aCl:ordance with RESPA, but in no more than 12 monthly payments. If there is a defidenl:Y of Funds held in eSl:row, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payment~. Upon payment in full of all SUITIS secured by this Security Instrument, Lender shall promptly refund to Borrower any Fund~ 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 tins Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over tins Security Instrument unless Borrower: (a) agrees in writ.ing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is pertomùng such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent tile enforcement of the lien wlnle those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of t11e Property is subject to a lien wInch can attain priority over tllls Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 . -6A(WY) (0005),02 @ Page 50115 InillaIS:~ Form 3051 1/01 000367 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 tIús Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included witIún 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 tenn 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 tIús Loan, either: (a) a one-time charge for tlood zone detennination, certification and tracking services; or (b) a one-time charge tor flood zone detennination and certification services and subsequent charges each time remappings or similar changes OCL:Uf which reasonably lnight affect such detennination or L:ertification. Borrower shall also be responsible tor the payment of any fees imposed by the Federal Emergency Management AgenL:Y in L:olllledion with the review of any tlood zone detennination resulting from an objection by Borrower. If Borrower tails to maintain any of the L:overages desL:rihed anove, Lender may obtain insuranL:e L:overage, at Lender's option and Borrower's expense. Lender is under no obligation to purdlase any particular type or amount of L:overage. Therefore, SUdl L:overage shall L:over Lender, but Jnight or lnight not protect Borrower, Borrower's equity in the Property, or the L:ontents of the Property, against any risk, hazard or liability and lnight provide greater or lesser coverage than was previously in effect. Borrower acknowledges tIlat the cost of the insurance coverage so obtained lnight significantly exceed tile 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 indude 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 preJniums and renewal notices, If Borrower obtains any form of iusµrance coverage, not otherwise required by Lender, fÖr 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 Imide promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insuranL:e was required by Lender, shall be applied to restoration or repair of the Property. if the restoration or repair is eL:onomically feasible and Lender's seL:urity is not lessened. During SUdl repair and restoration period, Lender shall have the right to hold SUd1 insuranL:e proceeds until Lender has had an opportunity to inspeL:t SUdl Property to ensure the work has been L:ompleted to Lender's satistaL:tion, provided that SUdl inspection shall be undertaken promptly. Lender may disburse proceeds fÖr the repairs and restoration in a single payment or in a series of progress payments as the work is L:ompleted. 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 Borròwer any interest or earnings on such proceeds. Fees tor public adjusters, or other tIúrd 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 econOlnically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to . -6A(WY) (0005),02 Œ> IniliaIS:~ Form 3051 1/01 Page50115 000368 the sums secured by this Se¡;urity Instrument, whether or not then due, with the ex¡;ess, if any, paid to Borrower. Such insurance prm:eeds shall be applied in the order provided for in Se¡;tion 2. If Borrower abandons the Property. Lender may tile, negotiate and settle any available insuran¡;e claim and related matters. If Borrower does not respond within 30 days to a notÜ;e from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the daim, 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 tIus 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 eitIler to repair or restore the Property or to pay amounts unpaid under tile Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shan occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of tIus Security Instrument and shan continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, urness Lender otIlerwise agrees in writing, wluch consent shan not be unreasonably witWleld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or cOlIUTIit 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 de¡;reasing in value due to its condition. UnJess it is detennined pursuant to Section 5 that repair or restoration is not e¡,;onomically teasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage, If insurance or ¡,;ondemnation proceeds are paid in conne¡,;tion with damage to, or the taking of. the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released pro¡;eeds tor SUdl purposes. Lender may disburse proceeds tor 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 prœeeds are not suftkient to repair or restore the Property, Borrower is not relieved of Borrower's obligation tor the ¡;ompletion 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 tile improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specitying 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 Borrowèr's knowledge or consent gave materially false, misleading, or inaccurate infonnation or statements to Lender (or failed to provide Lender with material infonnation) in connection with the Loan. Material representations include, but are not limited to, representations concenung Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to pertonn the covenants and agreements contained in tIus Security Instrument, (b) there is a legal proceeding that might sigluficantly aftect Lender's interest in the Property and/or rights under tIlis Security Instrument (such as a proceeding in bankruptcy, probate, tor condemnation or torfeiture, for enforcement of a lien which may attain priority over tlus Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay ti.>r whatever is reasonable or appropriate to prote¡;t Lender's interest in the Property and rights under this Security Instrument, including prote¡;ting and/or assessing the value of the Property, and se¡;uring and/or repairing the Property. Lender's actions ¡;an include. but are not limited to: (a) paying any sums se¡;ured by a lien which bas priority over tlus Se¡;urity Instrument; (n) appearing in ¡;ourt; and (¡;) paying reasonable . -6A(WY) (0005).02 ® InltiaIS:~ Form 3051 1/01 Page 7 01 15 000369 attorneys' fees to protect its interest in the Property and/or rights under tlus Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering tl1e 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, AltllOUgh Lender may take action under tIus 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 tIus Section 9. Any amounts disbursed by Lender umkr this Section 9 shall become additional debt of Borrower secured by tIus 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 lÌ"om Lemler 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 tee title to tI1e Property. the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in eftect. 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 premiwns required to obtain coverage substantially equivalent to the Mortgage Insurance previously in eftect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in eftect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in eftect. 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 shaUnot 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 prèmiums tor 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 prenúums tor 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 tor Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing tÖr such tennination or until termination is required by Applicable Law. NotIung in tIus Section 10 affect,~ 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 terms and conditions tI1at 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 tI1ese agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the toregoing, may receive (directly or indirectly) amounts that derive from (or lnight be characterized as) a portion of Borrower's payments tor Mortgage Insurance, in exchange for sharing or modifYing the mortgage insurer's risk, or reducing losses. If such agreement provides tI1at an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the prelniul11S paid to the insurer, the arrangement is often tenned "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. . -6A(WY) (0005),02 @ Inilial5:Th Form 3051 1/01 Page 8 01 15 000370 (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, andlor to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoraÜon or repair is economically feasible and Lender's security is not lessened. During such repair and restoraÜon 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 Lilw requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to PilY Borrower ¡my interest or earnings on such Miscellaneous Proceed~. If the restoriltion or repair is not economically feasible or Lender's sewrity 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 Mis\:ellaneous Proceeds shall be applied in the order provided fÖr in Section 2. In the event of a total taking, destru\:tion, or loss in value of the Property, the Miscellaneous Pro\:eeds shall be applied to the sums se\:ured by this Se\:urity 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 betore the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by tllis 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 tollowing fraction: (a) the total amount of the sums secured immediately betore the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in wllich 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, u¡ùess Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by tIlis 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) otTers to make an award to settle a claim tor damages, Borrower tàils to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds eit11er to restoration or repair of the Property or to the sums secured by this Security Instrument. whether or not then due. "Opposing Pilrty" 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 a\:tion or pro\:eeding, whether dvil or \:riminal, is begun that, in Lender's judgment, ¡;ould result in forfeiture of the Property or other material impainnent of Lender's interest in the Property or rights under t1lis Se\:urity Instrument. Borrower \:an cure sud1 a detilUlt and, if acceleration has occurred, reinstate as provided in Section 19, by causing the a¡;tion or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes torfeiture of the Property or other material impairment of Lender's interest in the Property or rights under tllis Security Instrument. The proceeds of any award or claim tor damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. . -6A(WY) (0005),02 @ InitiaI5:~ Form 3051 1/01 Page 9 01 15 000371 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time tÖr 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 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 tIlÍs Security Instrument by reason of any demand made by tIle 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 tIIat Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute t]le Note (a "co-signer"): (a) is co-signing tIlÍs Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the tenns of this Security Instrument; (b) is not personally obligated to pay the swns secured by tIns 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 tenns 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 tIus Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrwnent unless Lender agrees to such release in writing. The covenants and agreements of tlus 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 ti.H services perti.mned in connection with Borrower's default, ti.H the purpose of protel:ting Lender's interest in the Property and rights under this Security Instrument,including, but not limited to, attorneys' tees, property inspection and valuation tees. In regard to any other tees, the absem;e of express authority in this Sel:urity Instrument to charge a specific tee to Borrower shall not be c()!1strued as a prohibition on the charging of such fee. Lender may not charge tees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law wIuch sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in cOIU1ection with the Loan exceed the pennitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pennitted limit; and (b) any swns already collected from Borrower wInch exceeded pennitted limits will be refunded to Borrower. Lender may choose to make tlus refund by reducing the principal owed under the Note or by making a direct payment to Borrower. It" a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whetller 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 cOl111ection with !Jus Security Instrument must be in writing. Any notice to Borrower in connection with tIus Security Instrument shall be deemed to have been given to Borrower when mailed by tirst class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to anyone Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires o!Jlerwise. 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 tor 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 !Ius Security Instrument at anyone time. Any notice to Lender shall be given by delivering it or by mailing it ny tirst class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in cOllilection with this Security Instrument shall not be deemed to have neen given to Lender until actually received by Lender. If any notice required by tills Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfY the corresponding requirement under this Security Instrument. . -6A(WY) (0005),02 @ Page 10 of 15 InltlaIS:~ Form 3051 1/01 000372 16. Governing Law; Severability; Rules of Construction. This Security Instnunent shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in tins Security Instrument are subject to any requirements and lùnitations of Applicable Law. Applicable Law ¡night explicitly or ùnplicitly 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 tJns Security Instrument or the Note contlicts with Applicable Law, such contlict shall not attect other provisions of this Sel:urity Instrument or the Note whidJ can be given eftect without the contlicting provision. As used in tJus Security Instrument: (a) words of the masl:uline gender shall mean and include corresponding neuter words ør words of the teminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in tlus 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, instalhnent sales contract or escrow agreement, the intent of wInch 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 tins Security Instrument. However, this option shall not be exercised by Lender if such exercise is prolnbited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date tl1e notice is given in accordance with Section ]5 witJnn which Borrower must pay all sums secured by tJus Security hl~trument. If Borrower fails to pay these SWIlS prior to the expiration of tins period, Lender may invoke any remedies pennitted by tins Security Instrument without further 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 tlus Security 1f1~trwnent discontinued at any time prior to tl1e earliest of: (a) five days before sale of tl1e Property pursuant to any power of sale contained in this Security Instrument; (b) such otl1er period as Applicable Law ¡night specify fÖr the tennination of Borrower's right to reinstate; or (I:) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under tills Security Instrument and the Note as if no acceleration had m;curred; (b) cures any default of any other covenants or agreements; (I:) pays all expenses incurred in entÖrcing this Security Instrument, induding, but not limÜed to, reasonable Httorneys' tees, property inspection Hnd valuation fees, and other fees inl:urred for the purpose of protel:ting Lender's interest in the Property and rights under tlus Sel:urity Instrument; and (d) takes sudJ al:tion as Lender mHY reasonably require to assure that Lender's interest in the Property and rights under tllls Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged, Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following fonns, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer¡ Notice of Grievance. The Note or a partial interest in the Note (together with tins Security Instrwnent) can be sold one or more tùnes without prior notice to Borrower. A sale lnight result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under tl1e Note and tins Security Instrwnent and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law, There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notke of tI1e change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other intonnation RESPA requires in cOlmection with a . -6A(WY) (0006),02 @ Page 11 0115 Initials: # Form 3051 1/01 " )L 000373 notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrwnent or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of C1cceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of C1cceJeration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to t¡¡ke corre¡;tive action provisions of this Section 20. 21. Hazardous Substances. As used in this Se¡;tion 2 I: (C1) "Hazardous Substances" C1re those substances defined as toxic or hazardous substam;es, pollutant~, or wastes by Environmental LC1w and the following substances: gasoline, kerosene, other flammable or toxic petroleum product!>, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or tonnaldehyde, and radioactive materials; (b) "Envirorunental Law" means tederallaws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Envirorunental 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 pennit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything aflecting the Property (a) that is in violation of any Envirorunental 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 aflects 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 other action by any govermuental or regulC1tory C1gency or privC1te pC1rty involving tlle Property and any Hazardous Substance or Environmental Law of whi¡;h 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, C1nd (I,;) any condition cC1used by the presence, use or release of a Hazardous Substance which adversely affect~ tlle value of the Property. If Borrower learns, or is notified by any govenunental or regulatory authority, or any private party, that any removal or other remediC1tion of any Hazardous Substance affecting tlle Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an EnvirOIunental Cleanup. _ -6A(WY) (0005),02 @ InitlalS~ Page 12 of 15 Form 3051 1/01 . . 000374 NON-UNIFORM COVENANTS. Borrowt:r ilnd Lt:mJer furtht:r \.:ovenilnt ilnd ilgree 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 ~ate 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. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of 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 swns se\.:ured by this Se\.:urity Instrument, Lendt:r shall releilse tlus Security Instrwnent. Borrower shall pay any re(;ordation costs. Lender milY charge Borrower a fee for releasing tlus Security Instrument, but only if the fee is paid to a tlurd party tor services rendered and the charging of the tee is pennitted under Applicable Law. 24. Waivers. Borrower releases and waives aU rights under and by virtue of the homestead exemption laws of Wyoming. . -6A(WY) (0005).02 @ 'n,tla's:Æ Page 130115 Form 3051 1/01 000375 BY SIGNING BELOW, Borrower accepts and agrees to the tenns and covenants contained 111 this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: JAD.;bIJ?£ (Seal) - Borrower ( Seal) -Borrower (Seal) -Borrower ( Seal) -Borrower (Seal) (Seal) -B"IT"wcr - Borrower (Seal) -Borrower (Seal) - Borrower 0063484729 .-6A(WY) (0005),02 @ Page 140115 Form 3051 1/01 000376 STATE OF WYOMING, LINCOLN County ss: #/3 ~IIIÞ dcu¡ o¡ '.~'} ':;'00 g The foregoing instrument was acknowledged before me this by JADE BUTLER My Commission Expires: 9 -/5 - /J N~/~· ßJ~g¿g/ NOTARY PUBLIC County of Lincoln State of Wyoming My Commission Expires September 15, 2011 0063484729 . -6A(WY) (0005),02 @ InitlaIS:~ Page 15 of 15 Form 3051 1/01 000377 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 1st day of April, 2008 ,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 (the "Borrower") to secure Borrower's Note to FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK N.A. (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 15 SCRUB OAK DRIVE, STAR VALLEY RANCH, Wyoming 83127 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in Covenants, Conditions and Restrictions of Record (the "Declaration"). The Property is a part of a planned unit development known as STAR VALLEY RANCH ASSOC. [Name of Planned Unit Development] (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows; A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (í) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association;, and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. 0063484729 MUL TISTATE INSTRUMENT Form 31501/01 PUD RIDER - Single Family - Fannie Mae/Freddie Mac UNIFORM S-7R (0411) @ Page 1 of 3 Initials: VMP Mortgage Solutions, Inc. (800)521-7291 JR 11111111111111111111111111111111111 000378 B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and 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, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to; (i) the abandonment or termination of the PUD, except for abandonment. or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express ben~fit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the þublic liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them., Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 0063484729 .-7R (0411) @ Page 2 of 3 Initials: 1 Form 31501/01 000379 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this PUD Rider. JAD (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0063484729 .-7R (0411) ® Page 3 of 3 (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower Form 31501/01