Loading...
HomeMy WebLinkAbout940097 Recording Requasted by .& When Recorded Return To: US Recordings, Inc. 2925 Country Drive St. Paul, MN 55117 ì 50C (¡)({1 I Lj Prepared By: ,:~,:.:.' /)"'i , MICHELLE TENNIs'cf}}.. ,:' RECEIVED 6/25/2008 at 4:04 PM RECEIVING # 940097 BOOK: 698 PAGE: 405 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Ü00405 [Space Abovc ThJs Line F'or Recording Dala] -\0 05- O~(olll.\ -I\.fY\ ß tJJóY 1501 to 01 '-I T08036771 [Eucrow/Closiug #] 00019338399606008 [Doc ID #] MORrrGAGI~ ~flN1001337-0003217499-0 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 l6. (A) "Security Instrument" means this document, which is dated JUNE 09, 2008 all Riders to this document. (U) "Borrower" is TYSON D MERRITT, AND HAYLEY M. MERRITT, HUSBl\ND ,AND WIFE , together with Bon-ower 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 Sccurity 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. (D) "Lender" is COUNTRYWIDE BANK, FSB Lender is a FED SVGS BANK organized and existing under the laws of THE UNITED ST1\TES Lender's address is 1199 North Fairfax St. Ste. 500, Alexandria, VA 22314 (E) "Notc" means the promissory note signed by Bon-ower and dated JUNE 0 9, 2008 . The Note states that Borrower owes Lender THREE HUNDRED SEVENTY THOUSAND EIGHT HUNDRED SEVENTY and 00/100 Dollars (U.S. $ 370, 870 . 00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JULY 01., 20.3 8 (F) "Property" means the property that is described below uncler 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. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS M Mortgage-WY 2006A-WY (06/07)(dIi) Page 1 01' 10 Form 3051 1/01 *23991* . * 1 933 8 3 9 9 6 0 0 0 0 0 2 0 0 6 A * Ü00406 DOC ID #: 00019338399606008 (H) "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]: I8J Adjustable Rate Rider 0 Condominium Ridcr 0 Second Home Rider o Balloon Rider 0 P]anned Uni t Development Rider 0 1-4 Family Rider o VA Rider 0 Biweekly Payment Rider 0 Other(s) [specify] (1) "Applicable Law" means all controlling applicable federal, state and JocaJ statutes, reguJations, ordinances and administrative ruJes and orders (that have the effect of law) as welJ as aU appJícable final, non-appeaJabJe judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Bon·ower 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 terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term incJudes, but is not Jimited to, point-of-saJe transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Hems" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlemcnt, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the covcrages described in Section 5) for: (1) 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 vaJue 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, pJus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate SettJernent Procedures Act (12 U.S.c. Section 260l et seq.) and its implementing reguJation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or allY additional or successor 1egislation or regu]ation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federalJy reJated mortgage loan" even if the Loan does not quaJify as a "federalJy related mortgage loan" under RESPA. (Q) "Successor in Interest of Horrower" means any party that has taken title to the Property, whether or not that party has assumed BOITower's obJigations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: 0) the repayment of the Loan, and all renewaJs, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property ]ocated in the COUNTY of LINCOLN [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 2 OF TYSON MERRITT FAMILY EXEMPTION, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT FILED ON NOVEMBER 1, 2004 AS INSTRUMENT NO. 904504 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. Parcel ID Number: 12-3419-02-4-00-389.00 which currently has the address of 41 STEELHEAD COVE, THAYNE [Street/City] Wyoming 83127 [Zip Code] ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, and aJJ easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shaH also be covered by this Security Instrumenl. All of [he foregoing is referred to in this Security Instrument as the M Mortgage-WY 2006A-WY (06/07) Page 2 of 10 Form 3051 1/01 Ü00407 DOC ID #: 00019338399606008 "Property." Bon'ower understands and agrees that MERS holds only legal title to the interest~ granted by Borrower in this Security Instrument, but, if necessary to comply with law 01' custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or aII of those interest~, including, but not limited to, the light to foreclose and seII the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instnnnent. BORROWER COVENANTS that Borrower is lawfuIIy seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and wilI defend generally the title to the Property against aH claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-unifonn covenants with limited variations by jurisdiction to constitute a unifonn security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree a~ fol1ows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shal1 pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shalI also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shaH be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the folJowing fonns, as selected by Lender:(a) ca~h; (b) money order; (c) certified check, bank check, treasurer's check 01' cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment 01' partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to ref11se such payment or partial payment~ in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied fund~. Lender may hold such unapplied funds until Borrower01akes payment to bring the Loan current. If Borrower does not do so within a reasonable pedod of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds wiII be applied to the outstanding principal halance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future ägainst Lender shaH relieve Borrower from making paymentc; due under the Note and this Security Instrument or perfonning the covenant~ and agreement~ secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise descdbed in this Section 2, all payment., accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a deJinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received 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 fuI! payment of one or more Periodic Payments, such excess may be appIied to any late charges due. Voluntary prepayments shall be appIied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceedc;, or MisceI!:mcous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Paymentc;. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessment~ and other items which can attain priority over this Security Instl1lment a~ a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and aI! 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 with the provisions of Section 10. These items are calIed "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or al1 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 Funds has been waived by Lender and, if Lender requires, shal1 furnish to Lender receipts evidencing such payment within such time period as Lender may require. B011"ower's obligation to make such payments and to provide receipts shan for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is M Mortgage-WY 2006A-WY (06/07) Page 3 of 10 Form 3051 1/01 000408 DOC ID #: 00019338399606008 used in Section 9. If Borrower is obligated to pay Escrov..i 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 l5 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 anytime, 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 deposit~ 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 lawr 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 BOITower 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 shal1 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 RESP A. If there is a surplus of Funds held in escrow, as defined under H,ESPA, 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 RESP A, Lender shal1 notify Borrower as required by RESP A, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as 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 l2 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 sh¡ùl pay all taxes, assessments, charges, fines, and impositions atuibutable to the Property which can attain priority over this Security Instrument, leasehold paymentc; 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. BOl1'0wer shall promptJy 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) contestc; the lien in good faith by, or defends against enforccment of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the ]jcn an agreement satisfactory to Lender subordinating the lien to this Security Instillment. If Lender detennines that any part of the Property is subject to a lien which can attain priority over this Security Instmment, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a re¡ù estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shalJ keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the tcrm "extended coverage," and any other hazards including, but not ]jmited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lendcr may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for Hood zone determination, certification and tracking services; or (b) a one-time charge for Hood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood 7,one detelmination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obJigation 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 shaH be payable, with such interest, upon notice from Lender to Borrower requesting payment. AIJ insurance policies required by Lender and renewals of such policies shaH be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shaH name Lender a<; mortgagee and/or as an additional loss payee. Lender shaJl have the right to hold the policies and renewal certificates. If Lender M Mortgage-WY 2006A·WY (06/07) Page 4 01 10 Form 3051 1/01 000409 DOC ID #: 00019338399606008 requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Bon-ower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shaH 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 untiJ 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 shaH not be required to pay Borrower any interest or eamings 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 appJied to the sums secùred by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may fiJe, negotiate and settle any avai1able 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 right<; 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 BOlTower's principal residence within 60 days after the execution of this Secmity Instrument and shall continue to occupy the Property as BOlTower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withhe]d, or unless extenuating circumstances exist which are beyond Bon-ower's control. 7. Preservation, Maintcnance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not BOlTower 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. Unless it is detennined pursuant to Section 5 that repair or restoration is not economical1y feasib1c, BOITower shaH promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shal1 be responsible for repairing or restoring the ProperLy only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it ha<; rea<;onable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Bon-ower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shaH he in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate infonnation or statements to Lender (or failed to provide Lender with material infonnation) in connection with the Loan. Material representations include, but are ilot 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 Under this Security Instrument. If (a) Borrower fails to perform 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 bankmptcy, 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) BOlTower has abandoned the Property, then Lender may do and pay for whatever is rea<;onable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a banIa-uptcy proceeding. Securing the Property includes, but is not limited to, ent.ering 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 uncler 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. M Mo;igage-WY 2006A-WY (06/07) Page 5 of 10 Form 3051 1/01 100041.0 DOC 1D #: 00019338399606008 Any amounts disbursed by Lender under this Section 9 shilll become additional debt of Borrower secured hy 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 Lendcr 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 :md 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 effect. If, for any reason, the Mort~age Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to rnalœ separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender wiII 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 wa~ required to make separately designated payments toward the premiums for Mortgage Insurance, BOlTower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until the Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until tennination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purcha~es the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Bon'ower 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 that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mOltgage insurer to make payments, using any source of funds that the mortgage insurer may have available (which may includc 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 affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's paymenL~ for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other tenns of the Loan. Such agreements wiD not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the right" 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 œquest and ohtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance tenninated 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 P 'oeeeds; Forfeitm·e. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such MisceUaneous 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 such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payment~ as the work is completed. Unless an agreement is made in wIiting 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 Proceed~ 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 shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partiill taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security M Mortgage-WY 2006A-WY (06/07) Page 6 01 10 Form 3051 1/01 00041.1 DOC ID #; 00019338399606008 Instrument shall be reduced by the amount of the Miscellaneous Proceed<; multiplied by the following fraction: (a) the total amount of the sums secured immediately before Ú1e 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 which Ú1e fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of Ú1e sums secured immediately before Ú1e partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, Ú1e Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower Ú1at the Opposing Party (as defined in Ú1e next sentence) offers to make an award to settJe 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 Ú1e sums secured by Ú1is Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun Ú1at, in Lender's judgment, could result in forfeiture of the Property or other material impainnent of Lender's interest in Ú1e Property or rights under this Secruity Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award Qr claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. 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 liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. BOlTower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co,-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Propel1y under the tenns of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the telms of this Security Instrument OJ' Ú1e Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of BOlTower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this SecuriLy InstIllment. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreement~ of Ú1is 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 wiÚ1 Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security InstnJlnent, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instmment to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security InsLmment or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed Ú1e permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to Ú1e pelmitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to BOJ1'ower. 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 Ú1e Note). Borrower's acceptance of ,my 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 wiÚ1 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 constil1Jte notice to all Borrowers unless Applicable Law expressly requires oÚ1erwise. 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, Ú1en Borrower shall only M Mortgage-WY 2006A-WY (06107) Page 7 of 10 Form 3051 1/01 ù00412 DOC ID #: 00019338399606008 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 maj]jng it by first class maiJ to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shaH not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under AppJicable Law, the Applicable Law requirement wiJ] satisfY the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. AH rights and obJigations contained in this Security Instrument are subject to any requirements and limitations of AppJicable Law. Applicable Law might explicitly or implicitly al10w the parties to agree by contract or it might be silent, but such siJence 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 Instmment or the Note which can be given effect without the conflicting provision. As used in this Security Instl11ment: (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 discreljon without any obJigation to take any action. 17. Borrower's Copy. Borrower shaH be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in nor-rower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not Jimited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any partof 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 Instl11ment. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shaH give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instmment. If Borrower fai1s to pay these sums prior to the expiration of this period, Lender may invoke any remedies pennitted by this Security Instl11ment without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acccle,"ation. If Borrower meet<; certain conditions, Borrower shalJ have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the tennination of Borrower's right to reinstate; or (c) entry of a judgment enforeing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instl11ment and the Note as if no acceleration had occurred; Cb) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender OJay reasonably require to assure that Lender's interest in the Properly and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shan continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the foHowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposit<; are insured by a federal agency, instrumentality or entity; or Cd) Electronic Funds Transfer. Upon reinstatement by Bon-ower, 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 l8. 20. Sale of Note; Change of Loan Servicer; Notice of Gdcvance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that conects Periodic Payments due under the Note and this Security Instmment and perfonns other OJortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan ServiceI' unrelated to a sale of the Note. If there is a change of the Loan ServiceI', Borrower will be given written notice of the change which wi]) statc the name and addrcss of the new Loan ServiceI', the address to which payment') should be made and any other infonnation RES], A requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan ServiceI' other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower wiJI remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not a<;sumed by the Note purcha')er unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (a<; either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that aHeges that the other party has breached any provision of, or any duty owed by rea<;on of, this Security Instl1Jment, 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 peliod which must elapse before certain action can be taleen, that time period wi11 be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to M Mortgage-WY 2006A-WY (06/07) Page 8 of 10 Form 3051 1/01 000413 DOC ID .: 00019338399606008 Section 22 and the notice of acceleration given LO Borrower pursuanL to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutant,>, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction wherc the ProperLy is located that relate to health, safety or environmental protection; (c) "EnvironmentaJ Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and Cd) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or pemJit the presence, use, disposaJ, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small qUirntities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and LO 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 govemmental or regulatory agency or private parLy 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 govemmental or regulatory authority, or any pl;vate party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all, necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covemlOt or agreement in this SeeuritJI Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration 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 (~ured on Of 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, rtasonable 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 l)roperty, 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 sak shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonahle attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the p(~rNOn or persons legally entitled to it. 23. Release. Upon payment of all. SUillf: secured by this Security Instrument, Lender shall release this Security Instrument. Bon-ower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a Lhird party for services rendered and the charging of the fee is permitted under Applicable Law. M Mortgage-WY 2006A-WY (06/07) Page 9 of 10 Form 3051 1/01 Ü004~4 DOC ID #: 00019338399606008 24. Waivers. Borrower releases and waives all righls undcr and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees lO the lenTIl; and covenants contained in this Security In,troment and in any Rider exe<:nted by Borrowe~ - -______ (Seal) ME: RITT -Borrower (Seal) -Borrower ._----, (Seal) -Borrower (Seal) -Borrower STATE OF WYOMING, ~ Connly ss: Lcnwlf) ed~m11J¿ ; I fbI?, ¡)~ . ----.--.---- --------..----. ----.-.-..-.-.-------..-.. ~'- "------.-- ._--. ._---~-~. TERESA K. ANDERSON ,. NOTARY PUBLIC County of State of Lincoln Wyoming My Commission Expires September 22, 2011 :;f) ,i).CJI ~ j¿ ~!)j)¡;ý) NOlary Public My Commission Expires: ~+ M Mortgage-WY 2006A-WY (06/07) Pago 10 of 10 Form 3051 1/01 Ü00415 FIXED/ADJUSTABLE RATE RIDER (LmOR One-Year Index (As Published In I1le Wall Street Journal)-Rate Caps) T08036774 [Escrow/Closing #J 00019338399606008 [Doc ID #] TIUS FIXED/ADJUSTABLE RATE RIDER is made this NINTH day of JUNE, 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 ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to COUNTRYWIDE BANK, FSB ("Lender") of the same date and covering the property described in the Security Instrument and located at: 41 STEELHEAD COVE THAYNE, WY 83127-_____ [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BOUROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND TIIE MAXIMUM RATJ£ BOUROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY l)AYMENT CHANGES The Note provides for an initial fixed interest rate of 6 . 750 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: MULTISTATE FIXED/ADJUSTABLE RATE RlDEH-WSJ One-Year USOR-Single Family- Fannie Mae Uniform Instrument Fixed/Adjustable Rate Rider 1 E870-XX (12/07)(d/i) Page 1 of 5 Form 3187 6/01 *23991* * 1 933 8 3 9 9 6 0 0 000 1 E 8 7 0 · 00041.6 DOC 1D #: 00019338399606008 4. ADJUSTABLE INTERI~ST RATE AND MONTHLY PA YMJi3NT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of JUL Y , 2018 , and the adjustable interest rate I will pay may change on that day every l2th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is ca)]ed a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interest rate will be ba<;ed on an Index. The "Index" is the average of interbank offered rates for one-year U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available a<; of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder wi)] choose a new index that is based upon comrarable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder wi)] calculate my new interest rate by adding TWO & ONE-QUART percentage points ( 2.250 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Intercst Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 11 . 750 % or less than 2 . 250 %. Thereafter, my adjustable interest rate wí1l never be increased or decrea<;ed on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding l2 months. My interest rate will never be greater than 11 . 750 %. MULTISTATE FIXED/ADJUSTABLE RATE RIDER-WS,j One-Year USOR-Single Family- Fannie Mae Uniform Instrument Fixed/Adjustable Rate Rider 1 E870-XX (12/07) Page 2 of 5 Form 3187 6/01 00041.7 DOC ID #: 00019338399606008 (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment. date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF TJI}: PROPERTY OR A BENE]¡1CIA¡~ INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant l8 of the Security Instrument shall read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section l8, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the lntent 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. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not Jess than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay aH sums secured by this Security Instrument. If Bon"ower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. MULTISTATE FIXED/ADJUSTABLE RATE RIDER-WSJ One-Year USOR-Single Family- Fannie Mae Uniform Instrument Fixed/Adjustable Rate Rider 1 E870-XX (12/07) Page 3 of 5 Form 3187 6/01 Ü0041.8 DOC ID #: 00019338399606008 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant l8 of the Security Instmment described in Section Bl above shall then cease to be in effect, and the provisions of Uniform Covenant l8 of the Security Instrument shall be amer,ded to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section l8, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer 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 Instmment. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee ac¡ a condition to Lender's consent. to the loan assumption. Lender also may requir~ the transferee to sign an ac¡sumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreement.s made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Not.e and this Security Instrument unless Lender releac¡es Borrower in writing. MULTISTATE FIXED/ADJUSTABLE RATE RIDER-WSJ One-Year USOR-Single Family- Fannie Mae Uniform Instrument Fixed/Adjustable Rate Rider 1 E870-XX (12/07) Page 4. of 5 Form 3187 6/01 Ü0041.9 DOC ID #: 00019338399606008 If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section l5 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pennitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, BOlTower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. (Seal) - Borrower (Seal) - Borrower -----. (Seal) - Borrower (Seal) - Borrower MULTISTATE FIXED/ADJUSTABLE RATE RIDER-WSJ One-Year LlBOR-Single Family- Fannie Mae Uniform Instrument Fixed/Adjustable Rate Rider 1 E870-XX (12/07) Page 5 of 5 Form 3187 6/01 1111 II mIll "" IIII IlEU0025026311E 2134 6/17/2008 75096614/1