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Home My WebLink About944248 D ,5T ,., 6010817318 .After Recording Return To: ¡FREEDOM DIRECT CORPORATION 2363 SOUTH FOOTHILL DRIVE SALT LAKE CITY, UT 84109 RECEIVED 12/19/2008 at 3:54 PM RECEIVING # 944248 BOOK: 711 PAGE: 406 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY OOÛi406 () ¡Space Above This Line For R«ording Data) MIN: 1000360-0000322064-3 MORTGAGE THIS LOAN IS NOT ASSUMABLE WITHOUT THE APPROVAL OF THE DEPARTMENT OF VETERANS AFFAIRS OR ITS AUTHORIZED AGENT. DEFlNmONS Words used in multiple sections ofthís document are defined below and other words are defined in Sections 3, 10, 12, 19 and 20. Certain rules regarding the usage of words used in this document are also provided in Section 15. (A) "Security Instrument" means this document, which is dated December 18, 2008 Riders to this document. , together with all (B) "Borrower" is LEE A. CULBERTSON and AL YCYN C. CULBERTSON, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERStI is Mortgage Electronic Registration Systems, Inc. MERS is a separate cOlporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS 1s the mortgagee under this Security Instrument. MERS is organized and exJsting under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MBRS. (D) "Lender" is IFREEDOM DIRECT CORPORATION Lender IS a A CORPORATION the laws of STATE OF UTAH 2363 SOUTH FOOTHILL DRIVE, SAlT LAKE CITY, UT 84109 organized and existing Wlder . Lender's address IS WVOMlNG-Singlo Family-UNIFORM INSTRUMENT .ITI!M 288n 1 (03Of)-MIIRS . CULBERTSON,L0000322064 (Pag. J qf J I pages) OreBfOOGsftl To Older Coli: 1-eoo-9I5U776 0000322064 00,,407 .(E) "Note" means the promissory note signed by Borrower and dated December 18, 2008 . The Note states that B011'Ower owes Lender Three Hundred Sixteen Thousand Thirty Five and no/100 Dollars (U.S. $ 316.035.00 ) plus interest Borrower has promised to pay this debt in regular Periodio Payments and to pay the debt in full not later than January 01, 2039 (F) "Property" means the property that IS described below under the heading "Transfer of Rights 111 the Property_" .(G) "Loan" means the debt evidenèed 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 (Ii) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Bon-ower [check box as applicable]: o Condominium Rider 0 Graduated Payment Rider ŒJ Planned Unit Development Rider ŒJ Other(s) [specify] VA. ASSUMPTION RIDER (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect oflaw) as well as all applicable fmal, non-appealable judicial opinions. If the indebtedness secured hereby is guaran~d or insured under Title 38, United States Code, such Title and Regulations issued thereunder and in effect on the date hereof shall govern the rights, duties and liabilities of the parties hereto, and any provisions of this or other instruments executed in connection with said indebtedness which are inconsistent with said Title or Regulations are hereby amended to confonn thereto. (3) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments atld other charges that are imposed on Bon-ower ol'the Property by a condominìum association, homeowners association or similar ocganizati()n. (K) "Electronic Funds Transfer" means any transfer of fundS, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic tenninal, telephonic instrument, computer, or magnetic tape ßO as to order, instruct, or authorize a financial institution to debit or credit an account. Such tenn includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telepnone. wire transfers, and automated clearinghouse transfers. (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 than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ü) condemnation or other taking of a1l or any part of the Property; (Hi) conveyance in lieu of condemnation; or (iv) nusrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Periodic Payment" means the regularly scheduled amount due for (i) princìpal and "ínterest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, ''RESPA'' refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" lUlder RESP A. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Bon-ower's obligations under the Note and/or this Security Instrument. WYOMING-SÙ1g1c Family-UNIFORM INSTRUMENT ITeM 2891'l2 J.0301 }-MIRS CULBERTSON,L0000322064 (Page 2 "I II pages) GreatDace ... To Order CIII: 1.ßOO..96e.8776 0000322064 00,8408 TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, ·extensions and modifications of the Note; and (Ii) the performance ofBolTOwer's covenants and agreements under this Security Instrument and the Note. For thís purpose, Borrower does horeby 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 located in the County of LIncoln : [Type of Recording Jurisdiction} [Name ofReconling Jurisdiction] 'LOT 80 OF STAR VALLEY RANCH PLAT 13, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT FIl.ED ON AUGUST 10,1977 AS INSTRUMENT NO. 496704 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. STAR VALLEY RANCH [City} , Wyoming 67 HILLSIDE CIRCLE [Street) 83127 ("Property Address"); [Zip Code) which currently has the address of TOGETHER WITIi all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property, All replacements and additions shall also be covered by this Security Instrwnent. All ofthe foregoing is referred to in this Security Instrument as the·"Property," BOITOwer understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender Including, but not limited to, releasing and cancelipg this Security Instrument. BORROWER COVENANTS that BOlTower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property 19 unencwnbered, except for encwnbrances of record. Borrower warrants and will defend generally the title to the Property agflinst all claims and demands, subject to any encwnbrances of record. '!HIS SECURITY INSTRUMENT combines uniform covenants for natIOnal use and non-uniform covenants with limited variations by jurisdiction to constitute a unifonn security instrwnent covering real property, UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principa~ Interest, Escrow Items, Prepayment Charges, and Late Charges. BOlTower shall pay when due the priricipal o( and mtet'est on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. BOITOwer shaH also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However. if any check or other instn.unent 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 following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 14. Lender may return any payment or partial payment lfthe payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment WYOMING-Slnglc Family-UNIFORM INSTRUMENT ITEM 289713J0301-MER9 CULBERTSON,L.0000322064 (page 3 of 1 J pages) GteatDo.. ... To Ordel' Calt 1-80G-G68-6775 0000322064 1,- 00&409 or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such 1.Ulapplied funds until Borrower makes payment to bring the Loan cummt. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to BOlTOwer. If not applied earHer, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future ag¡rinst Lender shall relieve Borrower 1Ì'om making payments due under the Note and this Security Instrument or perfonnîng the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order ofprìority: (a) interest due under the Note; (b) prìncipal 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 ofthe Note. . If Lender receives a payment ftom Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received 1Ì'om 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 àpplied first to any prepayment charges and then as described in the Note. Any application of~yments, 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 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 assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; and (c) premiums for any and all insurance required by Lender under Section 5. These items are called ''Escrow Items." At origination or at any time during the tenn 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 nodces 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 all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be m writing. In the event of such waiver, BOlTOwer 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, shall furnish to Lender receipts evidencmg such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenAnt and agreement contained in this Security Instrument, as the phrase I'covenant and agreement" is used in Section 9. IfJ;lolTOwer is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and BOlTOwer shall then be obligated under Section 9 to re~y 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 14 and, upon such revocation. Borrower shall pay to Lender all Funds, and m such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to pennit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estImate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specifled under RESP A. Lender shall not charge BOlTOwer for holding and applying the Funds, annually analyzing the escrow account, or verifYing the Escrow Items, unless Lender pays Borrower mterest on the Funds and Applicable Law pennits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shaH be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. WYOMING-Single Pamily-UNIFORM INSTRUMENT ITEM 2897L4 (0301)-MERS CULBERTSON,L0000322064 (Pag, 4 oj J 1 pag,s) QltlAIDoos .. To Order Call: 1.~0I).1J68.S776 0000322064 '... . I' 00&410 If there is a surplus of Funds held in escrow, as defmed under RESP A, Lender shall account to BOITower 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 BOITower as requíred by RESP A, and Borrowcr shall pay to Lender the amount ncccssary 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 Bon-ower as required by RESPA, and Bon-ower shan pay to Lender the amount necessary to make up the deficiency. in accordance with RESP A, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4, Charges; Liens. Borrower shall pay all taxes, assessments, charges, fmes, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community 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. Bon-ower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender. but only so long as Borrower Is perfonning 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 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 lien an agreement satîsfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines that any part of the Property is subject to a lien which can attaín priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, BOITower 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 andlor reportíng service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fife, hazards included within the tenn "extended coverage," and any other hazards mcIuding, but not lunited to, earthquakes and floods, for which Lender requires insurance. This insurance shan be.maintained in the amoWlts (mcludmg deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay. in connection with this Loan, either: (a) a one-time charge for flood zone detennination, certification and tracking services; or (b) a one-time charge for flood zone detennination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. BOITower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone detennination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and BOlTower's expense. Lender is Wlder no obHgation to purchase any particular type or amount of coverage. Therefore, such coverage shaH cover Lender, but might or might not protect Borrower, BOlTower's equity in the Property, or the contents of the Property, against any risk, hazard or Iiabì1ity and might provide greater or lesser coverage than was previo'Usly in effect. BOlTower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that BOlTower could have obtained. Any amounts disbursed by Lender under this Section 5 shaIl 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 :trom Lender to Borrower requestmg payment. AU insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee andlor as an additional loss payee. Lender shall have the right to hold the policios and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notIces. If Bon-ower obtains any fonn of insW'ance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such pohey shall incl'Ude a standard mortgage clause and shall name Lender as mortgagee and/or as an additîonalloss payee. In the event ofloss, BOlTower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and BOlTOwer otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such WYOMING-Singlc Family-UNIFORM INSTRUMENT ITeM ~B97U1 (0301 )-M1!R$ CULBERTSON,L0000322064 (Page oS of J 1 pages) GreatDoca 'IU To Ordor Coli: 1-eOO~e.s776 0000322064 00\)41.1. Property to ensure the work has been complcted to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration In a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be reqUIred to pay BOlTOwer any mterest or earnings on such proceeds. Fees for publio adjusters, or other third parties, retained by BOlTOwer shall· not be paid out of the insurance proceeds and shall be the sole obligation of BotTOWer. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instnunent, whether or not then due, with the excess, if any, paid to BOlTower. Such Ì11$urance proceeds shall be applied in the order providcd for in Section 2. If Borrower abandons tbe Property, Lender may file, negotiate and settle any available insurance claim and related matters. IfBoITower 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 24 or otherwise, BOlTOwer 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 ofuneamed premiums paid by Borrower) under all Insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Ins1I'Ument and shall continue to occupy the Property as BOITOwer's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing. wlùch consent shall not be unreasonably withheld, or unless extenuating circumstanoes exist wlùch are beyond BOITower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. BOlTower shaU not destroy, damage or ìmpair 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 fi'om deteriorating or decreasing in value due to its condition. Unless it is detennined pursuant to Section 5 that repair or restoration is not economIcally feasible, BOlTOwer shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such pwposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is èompleted. If the insurance or condemnation proceeds are not suffioient to repair or restore the Property, BOITower is not relieved ofBórrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. Ifit has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to Such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be'in default if, during the Loan a.pplication process, BOlTower or any persons or entities acting at the direction of BOITOwer or with Borrower's knowledge or consent gave materIally false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material infonnation) in connection with the Loan. Material representations include, but are not limited to, representations concerning BOlTOwer's occupancy of the Property as BOlTower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) BOITOwer fails to perfonn the covenants and agreements contained in this Security Instnunent, (b) there is a legal proceeding tbat might significantly affect Lender's interest in the Property andlor rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) BOITOwer has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting andlor assessing the value of the Property, and securing andlor repairing the Property. Lender's actions can include, but are not lùnited to: (a) paying any sums secured by a lien which bas priority over this Security Instnunent; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest m the Property andlor rights under this Security Instnunent, including its secured position in a bankntptcy proceeding. Securing the Property includes, but is not limited to, enterIng the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action lU1der this Section 9, Lender does not have to do so and js not under any duty or obligation to do so. lt is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. WYOMING-Singlo Family-UNIFORM INSTRUMENT ITeM 289716 .101101 }-MERS CULBEtUSON,L00003220B4 (hl8' 6 of J [ fX!Kts) GtvatDoca ... To Oldal CIII!: 1.ßOO-Ei68-6775 0000322064 OOû412 Any amoWlts disbursed by Lender Wlder this Section 9 shall become additional debt of BolTower secured by this Security Instrument. These amoWlts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to BOlTower requesting payment. If tlus Security Instrument IS on a leasehold, BOITower shall comply with all the provisions of the lease. If BOlTower acquires fee title to the Property) the leasehold and the fee title shall not merge Wlless Lender agrees to the merger in writing. 10. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. tfthe Property is damaged, such Miscellaneous Proceeds shan 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 Wlti1 Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs ·and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement IS made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such MisceUaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be appli~ to tho sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to BOITower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2, In the event ofa total taking, destruction, or loss in value of the Property, the MisceUaneous Proceeds shall beappIied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to BOlTower. In the event of a partial taking, destruction, or loss m 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 partial taking, destruction, or loss in valpe, unless BOlTOwer and Lender otherwise agree in writing, the sums secured by this Security 'lnstrwnent shan be reduced by the amoWlt of the Miscellaneous Proceeds multiplied by the following ftaction: (a) the total amoWlt of the sums secured immediately before 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 shan be paid to Bon-ower. In the event of a partial taking, destructIon, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amoWlt of the sums secured immediately before the partial taking, destruction, or loss in value, unless BOlTOwer and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by BOlTower, or it; after notice by Lender to BOlTower that the Opposing Party (as defmed in the next sentence) offers to make an award to settle a claim for damages, BOlTower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then dUe. "Opposing Party" means the thìrd party that owes BOITower Miscellaneous Proceeds or the party against whom BoITower 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 begWl that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instnunent. BOlTower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 18, by causing the action or proceeding to be dismissed with a mling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shaH be paid to Lender. All MisceUaneous Proceeds that are not applied to restoration or repair of the Property shaH be applied in the order provided for in Section 2. 11. 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 BOlTOwèr or any Successor in Interest of BOITower shall not operate to release the liability of BOlTower or any Successors in Interest of BOlTOwer. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or othelWise modifY amortization of the sums secured by this Security Instrument by reason of any demand made by the original BOlTower or any Successors in Interest of Borrower. Ally forbearance by Lender in exercising any right or remedy includíng, without limitation, Lender's a~eptance of payments trom third persons, entities or WYOMlNG-SlngIe FtIITlUy-UNlFORM INSTRUMENT ITEM 2897.!JJ.Q}P..lJ::::¥!RS CULBI:RTSON,L0000322064 (PQge 7 of 1/ pages) G'eIIlDoce'" To Orda, CeH: 1-eoo-1168-5nS 0000322064 OOû41.3 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. 12. Joint and Several LIability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obltgattons 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 convoy the co-signer's mterest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the swns secured by this Security Instrument; and (0) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any aooommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 17, 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 undec this Security Instrument. Borrower shall not be released &om Borrower's oblig¡ttions and liability under thIs Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bmd (except 8.S provided in Section 19) and benefit the successors and assigns of Lender. 13. Loan Charges. Lender may charge Borrower fees for services performed in cormection with Borrower's defuult, for the purpose of protecting Lender's interest in the Property and rights tmder this Security Instrument, inclucUng, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the ab~nce of express authority in this Security Instrument to charge a specific Cee to Borrower shall not be construed as a. prohibition on the charging of such fee. Lender may not charge fi:es that BJ'C expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is fmally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pennitted limit; and (b) any sums aJready conected &om Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reduoing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces pnncipal, tho reductIon will be treated as a partial prepayment without any prepayment charge (whether or not a prepayritent charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to BOtTOwer will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 14. Notices. All notices given by Bon-ower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notIce addrcss if sent by other means. Notice to anyone Borrower shall constitute notice to all Borrowers u.nless Applioable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notiCè to Lender. Borrower shall promptly notify Lender of Borrower's change of address: If Lender specifies a prooedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at anyone time. Any notice to Lender shall be given by delivering it or by mailing it by fIrst class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Jnsti.ument. 15. 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. AU rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicItly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note confliots with Applicable Law, such conflict shall not affeot other provisions of tWs Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masouline gender shall mean and mclude corresponding neuter words or words of the feminine gender; (b) words m 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. 16. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 17. Transfer of the Property. This loan may be declared immediately due and payable upon transfer of the Property securing such loan to any transferee, unless the acceptability of the assumption of the loan is established pursuant to Section 3714 of Chap tor 37, Title 38, United States Code. WYOMING-Singlo Family-UNIFORM INSTRUMENT '!.~~?~.7!:!1J.<J!O.!.>::~~~S ^^^^UU_ ß (Page 8 oj 11 pages) Gf*MDoo.'" To Order Oalt 1-000-0011-5775 nnnmt??O~d OOô4:14 If Lender exercises this option, Lender shall give Borrower notÎce of acceleration. The notice shan provide a period of not less than 30 days &om the date the notice is given in accordance with Section 14 within which Borrower must pay all sums secured by this Security Inslrwnent. It: 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. 18. Borrower's Right to' Reinstate After Acceleration. If Bon-ower meets certain conditions, Borrower shall have the right to have enforcement of this Security InstrWDent 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 enforcing this Security Instnnnent. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses inou1Ted. in enforcing this Security Instrument. including, but not limited to, reasonable attorneys' fees, property înspection and valuation fees, and other fees incurred for the purpose of protecting Lenders interest in the Property and rights under thìs Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instroment, shall continue unchanged. Lender may require that Bon-ower pay such reinstatement swns and expenses in one or more of the following forms, as selected by Lender: (8) 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 inlì\.lTed by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by BOlTOwer, this Security Instrument and obligations secured hereby shall remain fWJy effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 17. 19. Sale or Note; Change of Loan Servieer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more t.\mes without prior -notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instnnnent, 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, BOlTOwer will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other infonnation RESP A requires in connection with. a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing 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 :D:om the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instnunent, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 14) 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 acceleration and opportunity to CW'e given to Borrower pursuant to Section 24 and the notice of acceleration given to Borrower pursuant to Section 17 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 19. 20. Hazardous Substances. As used in this Section 20: (a) "Hazardous Subsmnces" are those substances defined as toXIC or hazardous substances, pollutants, or wastes by EnviromnentaJ Law and the following substances: gasoline, kerosene, other flanunable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents. materials containing asbestos or fonnaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protectIon; (0) "Envirorunental Cleanup'" includes any response action, remedial action, or removal actÍon, as defined in Enviromnental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. 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 Çonditlon, 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 stomge 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). WYOMING-Single Family-UNIFORM INSTRUMENT ITEM 2807L9 (0301}-MI!RS CULBERTSON,L0000322064 (page 9 of 11 pages) ar.alDol. 'DI To Order Can: 1.e00.968~775 0000322064 00&415 BOlTOwer shan promptly gíve Lender written notice of (a) any investigatlon, cwm, demand, lawsuit or other action by äny governmental or regulatory agency or private party involving the Property 81'td any Hazardous Substance or Environmental Law of which B011'Ower 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 private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, BOITower shall promptly take all necessary remediaJ actions in accordance with Envll'onmental Law. Nothing herein shall create any opligation on Lender for an Environmental Clcanup. 21. Funding Fee. A fee equal to one~balf of one percent of the balance of this loan as of the date of transfer of the Property shall be payable at the time of transfer to the loan holder or its authorized agent, as trustee for the Department of Veterans Affairs. If the assumer fails to pay this fee at the time of transfer, the fee shall constitute an additional debt to that already secured by this instrument, shall bear interest at the rate herein provided, and, at the option of the payee of the indebtedness hereby secured or any transferee thereof, shall be immediately due and payable. This fee is automatically waived if the assumer is exempt under the provisions of 38 U.S.C. 3729(0). (Note: The funding fee for loans assumed between 12/13/02 and 9/30/03 wiU be 1 percent.) 22. Processing Charge. Upon application for approval to aUow assumption of this loan, a processing fee may be charged by the loan holder or its authorized agent for determining the creditworthiness of the assumer and subsequently revising the holder's ownership records when an approved tr!lI1Sfer is completed. The amount of this charge shall not exceed the maximum established by the Department of Veterans Affairs for a loan to which Section 3714 af Chapter 37. Title 38, United States Code applies. 23. Indemnity Liability. If this obligation is assumed, then the assumer hereby agrees to assume all of the obligations of the veteran under the tenns of the instruments creating and securing the loan. The assumer further agrees to indemnify the Department afVeterans Affairs to the extent of any claim payment arising from the guaranty or insurance of the indebtedness created by this instrument. NON-UNIFORM COVENANTS. BoITower and Lender further covenant and agree as follows: 24. Acceleration; Remedies. Lender sball give notice to Borrower prior to acceleration following Borrower's breacb of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 17 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 faUure to cure the default on or before tbe 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 cared on or before the datespedfted in the notice, Lender at its option may require immediate payment In full of all sums secured by tbis 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 24, including; but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes tbe power of sale, Lender shall give notice ofintent to foreclose to Borrower and to the person in possessIon of the Property, if different, In accordance with Applicable Law. Lender shall give notice ofthe sale to Borrower In tbe manner provided in Section 14. Lender shall publish the notice of sale, and the Propel1y shan 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, incJudin& 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. 25. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. BOJTOwer shall pay any recordation costs. Lender may charge BOITower a fee for releasing this Security Instrument, but only if the fee IS paid to a third party for services rendered and the charging of the fee is pennitted Wlder Applicable Law. 26. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. WYOMING-Sìnglo Fam,ily-UNIFORM INSTRUMENT rrEM 2ð117L 10 (0301 )-MERS CUlBERTSON,L0000322064 (Pag, 10 of 11 pagu) GreetOeos ,. To O,dlf Calt. 1.s00.œ8-11775 0000322064 Dec.18.2008 2:08PM All i ance Ti tie and Escrow No.7063 p. 2 00&41.6 BY SIGNING BELOW, BOITower accepts and agrees to the tem1s and covenants contained in pages 1 through 11 of this Security Instrument and in any Rider executed by Borrower and r with it. /.1 .t/ I é: ¡) . "" .'7 ..... / . "c;:'.",-~ ../ ,t'..,.. / I . ;/'---1 þ~.J..." . /./ ¿,(·y.:.../v (Seal) LEE A. CULBERTSON -Borrower (Seal) -Borrower (Seal) ·Borrower Witness: t..1'::',{¡I/V\ 'ì ~. .0.ùw0V,"---- ..,,0, ~,rf WitneSS:!);;:.,.:;;:........//..-.....~ '<y Smœof~ Colorado County of Jefferson ) )ss ) The foregoing instrument was acknowledged before me by LEE A. CULBERTSON, AL YCYN C. CULBERTSON . /Q.£...Jf ..J'''}._ . L. _ 2008 thIS / ¿..l day of (/-"'-E'cÿ"I'Ylt/2.ØY Witness my hand and official seal. .' .~ - i?/f.'/' C..>'..··/-2::-~é.,~- / '2-/f!t·-O 2) /' ,NOlaty Public J-:e..r4~0~cf;r¡ (':';p7/Yj~ My commission expires: My Commission Expires 0810112011 WYOMING-SJngle Family-UNIFORM INSTRUMENT ITEM 2891L11 (Q,301,HI!RS CULBERTSON,L0000322064 (Page 11 of 11 pages) Gr..IDoe. '" To Older Col~ l-ðOo.œ~77~ 0000322064 H' : I " OOô417 ASSUMPTION RIDER THIS LOAN IS NOT ASSUMABLE WITHOUT THE APPROVAL OF THE DEPARTMENT OF VETERANS AFFAIRS OR ITS AUTHORIZED AGENT. THIS ASSUl'v1PTION RIDER is made this 18th day of December 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 "BolTOwer") to secure Borrower's Note to lFREEDOM DIRECT CORPORATION, A CORPORATION . (the "Lender'') of the same date and covering the Property described in the Security Instnunent and located at: 67 HILLSIDE CIRCLE STAR VALLEY RANCH, WY 83127 [property Address] ASSUMPTION COVENANTS. In additíon to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. Acceleration Clause. This loan may be declared immediately due and payable upon transfer of the property securing such loan to any transferee, unless the acceptability of the assumption of the loan is established pursuant to Section 3714 of Chapter 37, Title 38, United States Code. B. Funding Fee Clause. A fee equal to one-half of 1 percent of the balance of this loan as of the date of transfer of the property shall be payable at the time of transfer to the loan holder or its authorIzed agent, as trustee for the Department of Veterans Affairs. If the assumer fails to pay this fee at the time of transfer, the fee shall constitute an adctitional debt to that already secured by this instrument, shall bear interest at the rate herein provided, and at the option of the payee of the indebtedness hereby secured. or any transferee thereof, shall be immediately due and payable. This fee is automatically waived if the assumer is exempt under the provisions of 38 U.S.C. 3729(c). C. Processing Charge Clause. Upon application for approval to allow assumption of this loan, a processíng fee maybe charged by the loan bolder or its authorized agent for determining the creditworthiness of the assumer and subsequently revising the holder's ownership records when an approved transfer is completed. The amount of this charge shall not exceed the maximum established by the Department of Veterans Affairs for a loan to which Section 3714 of Chapter 37, Title 38, United States Code applies. D. Indemnity Liability Assumption Clause. If this obligation is assumed, then the asswner hereby agrees to assume all of the obligations of the veteran under the terms of the instnunents creating and securing the loan. The assumer further agrees to indemnify the Department of Veterans Affairs to the extent of any clann payment arising from the guaranty or insurance of the indebtedness created. by this instrument. MULTlSTATE V A ASSUMPTION RIDER-Single Family-UNIFORM INSTRUMENT ITEM 7550Lf (0<10808) CULBERTSON,L0000322064 Gire.wocs'" (P$ge 1 °(2) 0000322064 OOô4:18 (Seal) -Borrower (Seal) -Borrower ""~" (Seal) ·Borrower 1TE1iI7eð0L2 (040608) CULBERTSON,L0000322064 MULTISTATE VA ASSUMPTION RIDER-Single Famßy-UNlFORM INSTRUMENT Gr.lIIOoCl '" (PIll! 2 0'21 00003;..:2064 úOû419 PLANNED UNIT DEVELOPMENT RIDER THIS LOAN IS NOT ASSUMABLE WITHOUT THE APPROVAL OF THE DEPARTMENT OF VETERANS AFFAIRS OR ITS AUTHORlZED AGENT. TIns PLANNED UNIT DEVELOPMENT RIDER is made this 18th day of December 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 ¡FREEDOM DIRECT CORPORATION, A CORPORATION (the "Lender'1 of the same date and covering the Property described ín the Security Instrument and located at: 67 HILLSIDE CIRCLE STAR VALLEY RANCH, WY 83127 [property Add~ss] 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 (the ''Declaration"). The Property is a part of a planned unit development known as STAR VALLEY RANCH (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, bertefits and proceeds ofBorrower's interest pun 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 perfonn all of Borrower's obligations under the POO'S Constituent Documents. The "Constituent Documents" are the (i) Declaranonj (ii) articles of incorporation, trust instrwnent or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the OwneI'5 Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, wi¢ 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 tenn MULTISTATE PUD RlDER-5ingle Family-UNIFORM INSTRUMENT I!I;M 9OZ1LI~~ CULBERTSON,L0000322064 o.....tDoa;... J1!ag. 1 ~ $J. 0000322064 OOv420 "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 poJicy. What Lender requires as a condition of this waiver can change during the term of the loon. B01l'Ower 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 Stuns 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 B01l'Ower 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 shan be applied by Lender to the sums secured by the" Security Instrument as provided In Section 10. 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 tennination required by law in the case of substantial destntction by fire or other casualty or in the case of a tBking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (ìü) termination of professional management and ass1.U11ption of self"managemcnt of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If BOn'Ower 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 B01l'Ower 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 MULTISTA TE PUD RIDER~lnglo PBmlly-UN.Q?ORM INSTRUMENT ITEM 9021~œO!!) CULBER.TSON,L0000322064 GreatOoea'" jPsge 2 of 31 0000322064 OOv42~ BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in pages l~h~O~. ~~~..- (Seal) LEE A. CULBERTSON ····;;Borrower (Seal) .Borrower (Seal) ·BolTOwer MULTISTA TE PUD RIDER.-Slngle Family-UNIFORM INSTRUMENT !TElA 9021L3 (0609) CULBERTSON,L0000322064 ar..tOoot'" (Pag.~O'3) 0000322064