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HomeMy WebLinkAbout944821 . ;7.105 (c7 .~. knd]tle =-(9mpany SINCE 1904 RECEIVED 1/22/2009 at 11 :21 AM RECEIVING # 944821 BOOK: 713 PAGE: 474 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Return To: EXCHANGE NATIONAL BANK P.O. BOX 310 235 BROADWAY COTTONWOOD FALLS, KS 66845-0310 Prepared By: EXCHANGE NATIONAL BANK P.O. BOX 310 235 BROADWAY COTTONWOOD FALLS, KS 66845-0310 .... O"...4...>fA U V ,-.,.; State or KanslI!i Space Above This Line For Recording Data j MORTGAGE (With Future Advance Clause) 1. DATE AND PARTIES. The date of this Mortgage (Security Instrument) is .9U.~~~9.Q~................... ............ and the parties, their addresses and tax identification numbers, if required, are as follows: MORTGAGOR: BRUCE E. AGEE, A SINGLE PERSON 1300 AIRPARK DRIVE HORSESHOE BAY, TX 78657 o If checked, refer to the attached Addendum incorporated herein, for additional Mortgagors, their signatures and acknowledgments. LENDER: EXCHANGE NATIONAL BANK Organized and existing under the laws of the United States of America P.O. BOX 310 235 BROADWAY COTTONWOOD FALLS, KS 66845-0310 2. CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debt (defined below) and Mortgagor's performance under this Security Instrument, Mortgagor grants, bargains, conveys, mortgages and warrants to Lender the following described property: LOT 49, ALPINE VILLAGE, WYOMING J~..t. ~k¡6íl"'II" The property is located in . P~.ç.QP:-'!...... ... . . .. . . . .. .. .... . . . . . .. .. at .... .~qT. .4~ . . . .. ... . . ... .., . . .... ... . .... ., ..............................................., . ~~~7.~~. Y!~.~~~~........................, 'Z=;~................... (Address) (City) (ZIP Code) Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, all water and riparian rights, ditches, and water stock and all existing and future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described above (all referred to as "Property"). 3. MAXIMUM OBLIGATION LIMIT. The ·total principal amount secured by this Security Instrument at . hall d$ 13600000 Th' 1· ., f d anyone tnne s not excee .. . .. . ! .. .. . : .. .. .. .. . .. .. . .. .. .. .. .. . .. .. . .. ..... IS nnltatlon 0 amount oes not apply to advances made under the terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. The limitation is for the purposes set forth in K.S.A. § 9-1101, § 58-2336 and § 79-3102. 4. SECURED DEBT AND FUTURE ADVANCES. The term "Secured Debt" is defined as follows: A. Debt incurred under the terms of all promissory note(s), contract(s), guaranty(ies) or other evidence of debt described below and all their extensions, renewals, modifications or substitutions. (When referencing the debts below it is suggested that you include items such as borrowers' 11LlTneS, note amounts, interest rates, maturity dates, etc.) REAL ESTATE MORTGAGE DATED 1-13-09 KANSAS - MORTGAGE (NOT FOR FNMA, FHLMC, FHA OR VA USE) ~ © 1 994 Bankers Systems, Inc.. St. Cloud. MN Form RE-MTG-KS 1211/2003 ~""ge 1 015) "t J. ~.r ç.. 00&475 B. All future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of debt execut~d by Mortgag~r in favor of Lender after this Security Instrument whether or not this Security Instrument 1S specifically referenced or such future advances or future obligations are incurred for any purpose that was related or unrelated to the purpose of the Security Instrument. If more than one person signs this Security Instrument, each Mortgagor agrees that this Security Instrument will secure all future advances and future obligations that are given to or incurred by anyone or more Mortgagor, or anyone or more Mortgagor and others. All future advances and other future obligations are secured by this Security Instrument even though all or part may not yet be advanced. AU future advances and other future obligations are secured as if made on the date of this Security Instrument. Nothing in this Security Instrument shall constitute a commitment to make additional or future loans or advances in any amount. Any such commitment must be agreed to in a separate writing. C. All obligations Mortgagor owes to Lender, which may later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. AU additional sums advanced and expenses incurred by Lender for insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Security Instrument. This Security Instrument will not secure any other debt if Lender fails to give any required notice of the right of rescission. 5. PAYMENTS. Mortgagor agrees that all payments under the Secured Debt will be paid when due and in accordance with the terms of the Secured Debt and this Security Instrument. 6. WARRANTY OF TITLE. Mortgagor warrants that Mortgagor is or will be lawfully seized of the estate conveyed by this Security Instrument and has the right to grant, bargain, convey, sell, mortgage and warrant the Property. Mortgagor also warrants that the Property is unencumbered, except for encumbrances of record. 7. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written consent. 8. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor or materials to maintain or improve the Property. 9. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. This covenant shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this Security Instrument is released. 10. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor shall not commit or allow any waste, impairment, or deterioration of the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor agrees that the nature of the occupancy and use will not substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims and actions against Mortgagor, and of any loss or damage to the Property. ,. ~ r" .~~ \. 'I' Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable tÍIIie '[òttlii: purpose of inspecting the Property. Lender shall give Mortgagor notice at the time of or before an inspection specifying a reasonable purpose for the inspection. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 11. AUTHORITY TO PERFORM. If Mortgagor fails to perform any duty or any of the covenants contained in this Security Instrument, Lender may perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. Lender's right to perform for Mortgagor shall not create an obligation to perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's security interest in the Property including completion of the construction .... ."--~,,..._-, '....,_._... ,_... , . f ?JVt( :' ; (·~U·t .\ , ,......) t .~~~~'~.. <,()tÅ)r)ÇJt*:~1 ~ .... JmG20f5) " : . :. ~ I , ... J ' " ;",J .~ \ :.~.,.,,~l~~~.flri\l~N .-.,."'.~" \, L_,~~' :=;~~":'. ~::~:';.~~..::.'=I··-') ~@ © 1994 Banker. Systems, Inc., St. Cloud, MN Form RE-MTG-KS 12/1/2003 0004"'1'6 12. ASSIGNMENT OF LEASES AND RENTS. Mortgagor assigns, grants, bargains, conveys and mortgages to Lender as additional security all the right, title and interest in the following (all referred to as Property): existing or future leases, subleases, licenses, guaranties and any other written or verbal agreements for the use and occupancy of the Property, including any extensions, renewals, modifications or replacements (all referred to as Leases); and rents, issues and profits (all referred to as Rents). In the event any item listed as Leases or Rents is determined to be personal property, this Assignment will also be regarded as a security agreement. Mortgagor will promptly provide Lender with copies of the Leases and will certify these Leases are true and correct copies. The existing Leases will be provided on execution of the Assignment, and all future Leases and any other information with respect to these Leases will be provided immediately after they are executed. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is not in default. Upon default, Mortgagor will receive any Rents in trust for Lender and will not commingle the Rents with any other funds. Mortgagor agrees that this Security Instrument is immediately effective between Mortgagor and Lender and effective as to third parties on the recording of this Assignment. As long as this Assignment is in effect, Mortgagor warrants and represents that no default exists under the Leases, and the parties subject to the Leases have not violated any applicable law on leases, licenses and landlords and tenants. 13. LEASEHOLDS; CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. Mortgagor agrees to comply with the provisions of any lease if this Security Instrument is on a leasehold. If the Property includes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor's duties under the covenants, by-laws, or regulations of the condominium or planned unit development. 14. DEFAULT. Mortgagor will be in default if any party obligated on the Secured Debt fails to make payment when due. Mortgagor will be in default if Lender has a good faith belief that the prospect of any payment, performance or the value of the Property is significantly impaired. 15. REMEDIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if Mortgagor is in default. At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies provided by law, the terms of the Secured Debt, this Security Instrument and any related documents. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require complete cure of any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 16. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagor breaches any covenant in this Security Instrument. Mortgagor will also pay on demand any amount incurred by Lender for insuring, inspecting, preserving or otherwise protecting the Property and Lender's security interest. These expenses will bear interest from the date of the payment until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Mortgagor agrees to pay all reasonable costs and expenses incurred by Lender in collecting, enforcing or protecting Lender's rights and remedies under this Security Instrument. This amount includes, but is not limited to, collection agency fees or attorneys' fees and other legal costs and expenses up to 15 % of the unpaid amount due and payable, for all persons other than salaried employees of Lender. Lender is entitled to the collection of attorneys' fees or collection agency fees, but not both. This Security Instrument shall remain in effect until released. 17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), and all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste," "hazardous substance," or "regulated substance" under any Environmental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous Substance is or will be located, stored or released on or in the Property. This restriction does not apply to small quantities of Hazardous Substances that are generally recognized to be appropriate for the normal use and maintenance of the Property. B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are, and shall remain in full compliance with any applicable Environmental Law. ¡;fJ~ge 3 of 5) ~~ © 1994 Bankor. Systoms, Inc., St. Cloud. MN Form RE-MTG-KS 12/1/2003 -fIT'-- .. ,', . \,' 000477 C. Mortgagor shall immediately notify Lender if a release or threatened release of a Hazardous Substance occurs on, under or about the Property or there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor shall take all necessary remedial action in accordance with any Environmental Law. D. Mortgagor shall immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any pending or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous Substance or the violation of any Environmental Law. 18. CONDEMNATION. Mortgagor will give Lender prompt notice of any pending or threatened action, by private or public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien docwnent. 19. INSURANCE. Mortgagor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably associated with the Property due to its type and location. This insurance shall be maintained in the amounts and for the periods that Lender requires. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured Debt. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property according to the terms of this Security Instrument. All insurance policies and renewals shall be acceptable to Lender and shall include a standard "mortgage clause" and, where applicable, "loss payee clause." Mortgagor shall immediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of paid premiwns and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance carrier and Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless otherwise agreed in writing, all insurance proceeds shall be applied to the restoration or repair of the Property or to the Secured Debt, whether or not then due, at Lender's option. Any application of proceeds to principal shall not extend or postpone the due date of the scheduled payment nor change the amount of any payment. Any excess will be paid to the Mortgagor. If the Property is acquired by Lender, Mortgagor's right to any insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the extent of the Secured Debt immediately before the acquisition. 20. ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 21. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor will provide to Lender upon request, any financial statement or information Lender may deem reasonably necessary. Mortgagor agrees to sign, deliver, and file any additional docwnents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Security Instrument and Lender's lien status on the Property. 22. JOINT AND INDIVIDUAL LIABll..ITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Security Instrument are joint and individual. If Mortgagor signs this Security Instrument but does not sign an evidence of debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. If this Security Instrument secures a guaranty between Lender and Mortgagor, Mortgagor agrees to waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation. These rights may include, but are not limited to, any anti-deficiency or one-action laws. Mortgagor agrees that Lender and any party to this Security Instrument may extend, modify or make any change in the terms of this Security Instrument or any evidence of debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Security Instrwnent. The duties and benefits of this Security Instrument shall bind and benefit the successors and assigns of Mortgagor and Lender. 23. APPLICABLE LAW; SEVERABll..ITY; INTERPRETATION. This Security Instrument is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise required by the laws of the jurisdiction where the Property is located. This Security Instrument is complete and fully integrated. This Security Instrument may not be amended or modified by oral agreement. Any section in this Security Instrument, attachments, or any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law expressly or impliedly permits the variations by written agreement. If any section of this Security Instrument cannot be enforced according to its terms, that section will be severed and will not affect the enforceability of the remainder of this Security Instrument. Whenever used, the singular shall include the plural and the plural the singular. The captions and headings of the sections of this Security Instrument are for convenience only and are not to be used to interpret or define the terms of this Security Instrument. Time is of the essence in this Security Instrument. 24. NOTICE. Unless otherwise required by law, any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party's address on page I of this Security Instrument, or to any other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. Ex{5ëi'è.~ © 1994 Banker. Systems, Inc.. St. Cloud, MN Form RE-MTG-KS 12/1/2003 ~ (",US 4 of 5) " ~J . 000478 25. WAIVERS. Except to the extent prohibited by law, Mortgagor waives all appraisement and homestead exemption rights relating to the Property. 26. OTHER TERMS. If checked, the following are applicable to this Security Instrument: D Line of Credit. The Secured Debt includes a revolving line of credit provision, Although the Secured Debt may be reduced to a zero balance, this Security Instrument will remain in effect until released. D Construction Loan. This Security Instrument secures an obligation incurred for the construction of an improvement on the Property. D Fixture Filing. Mortgagor grants to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Property. This Security Instrument suffices as a financing statement and any carbon, photographic or other reproduction may be filed of record for purposes of Article 9 of the Uniform Commercial Code. D Riders. The covenants and agreements of each of the riders checked below are incorporated into and supplement and amend the terms of this Security Instrument. [Check all applicable boxes] D Condominium Rider D Planned Unit Development Rider D Other........................... D Additional Terms. SIGNATURES: By signing below, Mortgagor agrees to the terms and covenants contained in this Security Instrument and in any attachments. Mortgagor also acknowledges receipt of a copy of this Security Instrument on the date stated on page ¿ ................... ................................................................. (Date) (Signature) (Date) ACKNOWLEDGMENT: STATE OF .. ~.~!l.~~~ .. .. .. .. . .. .. .. .. .. .. .. . .., COUNTY OF ... .ei~e.. .. .. . .. .. .. .. .. .. .. . .. .} ss. (ID:Iividual) Th" t t k 1 d d b ç h' 13th d f January 2009 IS illS rumen was ac nowe ge elore me t IS~"'''' . ay 0 .......... .'....................... by . ~Rl;J.Ç.~ .s: A~s.~,. :':\ ~!t:J.ÇJ.~~..J:~.f3~q~...... ....... . .....'.. .......................................... . My COIIUl1Ìssion expire" .. ~dltf. .. .. .. . . (N~)""""""""""""""'" "~_·;;-!:';H :. ,·,~~,-".;.·«..I·,<~"i".~~(?;':':!'~~-'~.'~I.'~~!'{<>;<~. . vARY A. RONIGER , riOTARY f'lUBLlC STATE OF K!\f'J~~ ., My AppL Exp .Jl.;t.:::f.::L.,L ·__~·_··.·......·,.·:....'",·,·,·.·....."..<'<.............,...........~....:I.r~.......·..."_",~ ~". © 1994 Bankers Systems, Inc., St. Cloud. MN Form RE-MTG-KS 1211/2003 (page 5 of 5) EXHIBIT "A" OOD47S' Lot 49 of ALPINE VILLAGE SUBDIVISION NO.1, PLAT 2 AMENDED, Lincoln County, Wyoming, as shown on the official plat thereof filed June 4, 1981, as Receiving No. 559191, in the Office of the Clerk of Lincoln County, Wyoming, as Plat No. 264. LESS AND EXCEPTING a portion of Lot 49, Alpine Village subdivision No.1, Plat 2 Amended, Lincoln County, Wyoming according to that plat of record in the Office of the Lincoln County Clerk, more particularly described as follows: Beginning at the Southwest Comer of said Lot 49 and running thence North 00°02'47" West, 277.47 feet; thence in a Northeasterly direction 364.30 feet, more or less to a point on the Easterly line of said Lot 49, thence South 36°50'09" East, 387.54 feet, more or less to the Southeast Comer of Lot 49, thence South 53°36'01" West, 304.27 feet, more or less to the Northeast Comer of Lot 50 of said subdivision, thence North 88°56'31" West, 278.83 feet, more or less to the point of beginning. Land Title Company Underwriter - Stewart Title Guaranty Company Commitment - Schedule A 00Ôi480 ADJUSTABLE RATE RIDER THIS ADJUSTABLE RATE RIDER is made this .1~~~,........................ day of )~~!-!~%.~9.q~.... . . ... . ..... . ....... ,'..... and is ineorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Seeurity Instrument") of the same date given by the unders~ned (the "Borrower") to secure Borrower's AdWstable Rate Note (the "Note") to . JXçmWG.. N~X!9NA~.~AN~1 g:9:.~.QX.~ J.Q" .~~.~ .~R9.4P.W~X\ .GRE9N.. .QRQ.f!m~1, .~~.. ~.q~:4?:.... . 9.~ J.Q... . . . . , . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . , , . , . . . . . . . . . . . . . . . , . . . . . . . . ... .. . , . .. , , . , . . , . . . . . . . . . . . . . . . .. . . . . . . . , . . . . . . . . .. .. . ...... ....... ......... ....................., ,..............,......, , , , ., ...... , .. , . . ....., , . ............ .. (the "Lender") of the same date and covering the property described in the Security Instrument and located at: JRT. ~~r .~~.~!~.~ .~!~~A~.~,. '!'IX..... .. ,........... ,..........,.. ............................................................... [Property Address] NOTICE: THE SECURITY INSTRUMENT SECURES A NOTE WHICH CONTAINS A PROVISION ALLOWING FOR CHANGES IN THE INTEREST RATE. INCREASES IN THE INTEREST RATE WILL RESULT IN HIGHER PAYMENTS. DECREASES IN THE INTEREST RATE WILL RESULT IN LOWER PAYMENTS. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND PERIODIC PAYMENT CHANGES The Note provides for an initial interest rate of ......................... ~:?~9.. %. The Note provides for ehanges in the interest rate and the payments, as follows: 3. PAYMENTS (A) Periodic Payments I will pay principal and interest by making periodic payments when seheduled: (mark one): o I will make my periodic payments on the first day of each month beginning on ................................................................................................11..........II........... . !XI I will make my periodic payments as follows: 119 monthly payments of $994.22 beginning 02·20·2009. This is a variable rate loan and the payment amounts may change after the 84th payment and every 12th payment thereafter. IXIln addition to the payments described above, I will pay a "Balloon Payment" of $. ~.~I~~~:~.1....................... on . 9.1 :?~·.~9.1~.... ................ . The Note Holder will deliver or mail to me notiee prior to maturity that the Balloon Payment is due. This notice will state the Balloon Payment amount and the date that it is due. , , MULTISTATE ADJUSTABLE RATE RIDER Bankers Systems, Ine., St. Cloud, MN Form ARLR 6/14/2004 ref: ADJ-NOTE I~ pages) OOó48:1 (BI Maturity Date and Place of Payments I will make these payments as scheduled until I have paid all of the principal and interest and any other eharges described in the Note. My periodic payments will be applied to interest before Principal. If, on .9.1-.4P:~9.1.~............. ............................................, I still owe amounts under the Note, I will pay those amounts in full on that date, which is called the "Maturita Date." I will make my periodic payments at .. ]:9:. ..QX.~ J.Q.. .GP.E9NW.q~Q. fA~k~,. K~. ~~~.4H·.Q~.19........... ............................................ ............ or at a different plaee if required by the Note Holder. (CI Amount of My Initial Periodic Payments Each of my initial periodic payments will be in the amount of U.S. $.~.~~).~...................... . This amount may change. (DI Periodic Payment Changes Changes in my periodie payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will determine my new interest rate and the ehanged amount of my periodic payment in accordance with Section 4 of the Note. 4. INTEREST RATE AND PERIODIC PAYMENT CHANGES (AI Change Dates Each date on which my interest rate eould change is called a "Change Date." (Mark one) o The interest rate I will pay may change on the first day of .......................................... and on that day every ......................................................... month thereafter. IXI The interest rate I will pay may ehange .9.1:?~·.~9.W...................................................... and on every . .1.?1þ.[I)9~.t.h.... ................................................ .... ...... thereafter. (BI The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is: .N~YV.Y.QR~.P.~!IY1r;:............................................................................................................ . ..............................................................................................................................11.. ................................................................................................................................ . The most recent Index figure available as of the date 0 45 days IXI .)?R~X~................. .................................................................................................................................. before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon eomparable information. The Note Holder will give me notiee of this choice. (CI Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by . ~Ø.qing .t.~~~~..................................... .. ... ...... .......... . ......................................................... pereentage points ( ................}·.Q9.Q.%1 to the Current Index. The result of this caleulation: IXI will not be rounded off. o will be rounded off by the Note Holder to the nearest ......................%. o will be rounded off by the Note Holder up to the nearest...................... %. '.:' :.. o will be rounded off by the Note Holder down to the nearest...................... %. '. Subject to the limitations stated in Section 4(0) below, this amount will be my new interest rate until the next Change Date. ~ 3 pages) Bankers Systems, Ine., St. Cloud, MN Form ARLR 6/14/2004 (,00482 The Note Holder will then determine the amount of the periodic 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 periodic payment. (D) Limits on Interest Rate Changes IX! My interest rate will never be increased or decreased on any single Change Date by more than JWP.................................. percentage points from the rate of interest I have been paying for the preceding period. IX! My interest rate will never be greater than .................................. ~..~Q~. % or less than ................................ .4:Q~Q. 0/0. (E) Effective Date of Changes My new interest rate will become effeetive on each Change Date. I will pay the amount of my new periodic payment beginning on the first periodic payment date after the Change Date until the amount of my periodic payment changes again. (F) Notice of Changes At least 25 days, but no more than 120 days, before the effective date of any payment change, the Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my periodic payment. The notice will include 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. D B. FUNDS FOR TAXES AND INSURANCE Uniform Covenant 3 of the Security Instrument is waived by th in ~h¡S ~~~:~I~~~~:Áid~~~'ower accepts and ag' s~ t..............................c~n:::~ -Borrower ............ .................................................................... (Seal) -Borrower Bankers Systems, Inc., St. Cloud, MN Form ARLR 6/14/2004 (page 3 of 3 pages)