HomeMy WebLinkAbout876982 UTAH POWER & LIGHT EMPLOYEES' CREDIT UNION .....
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SALT LAKE CITY, UTAH 84116 ,".. ?',
WHEN ~R'ECORDED, MAll. TO: ~"' :.:
UTAH POWER & LIGHT EMPLOYEES' CREDIT 'UNION ~ ....
1407 W NORTH TEMPLE ................
.... ~ ~
SALT LAKE CITY, UTAH 84116 ~': ;:~:~ ':~ ~ ~)1?~'~ .~:'~.G~ 5 ~) d.
Loan Number: 3
Order Number:
(Space 'Above This kine For Recordins Data) _
MORTGAGE
DEFINITIONS
Words used in multiple sections of this document are defined below aud other words are defined in Sections 3, 1 I, 13, 18, 20 and 21.
Certain rules regarding the usage of words used in this document are also provided in Section 16.
(A) "Security Instrument" means this document, ~bich is dated October 22, 2001, together with all Riders to this document.
(B) '~Borrower" is JOSEPH F KALAN AND LORI KAY KALAN
'Borrower is the mortgagor under this Security lnstrmnent.
(C) "Lender" is UTAH POWER & LIGHT EMPLOYEES' CREDIT UNION..
organized and existing under the laws of UTAH.
Lender's address is 1407 W NORTH TEMPLE, SALT LAKE CITY, UTAIt 84116.
Lender is the mongagee under this security Instrument.
(D) "Note" means the promissory note signed by Borrower and dated October 22, 2001. The Note states that Borrower owes Lender
NINETY- THOUSAND and no/100 Dollars (U.S. $90,000.00) plus interest. Bon'ower has promised to pay this debt in regular Periodic
Payments and to pay the debt iu filll not later than November 1, 2016.
(E) "Property" means the property that is described below under the beading "Transfer of Rights in the Property."
(F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all stuns
due under this Security Instrument, plus interest.
(G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by
Borrower (check box as applicable): .
~ Adjustable Rate Rider ~ Condominium Rider ~ Second Home Rider
~ Balloon Rider ~ Planned Unit Development Rider ~ VA Rider
~ 1-4 Family Rider ~ Biweekly Payment Rider
~ Other (Specify)
(H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules
and Orders (that bave the effect of law) as well as all applicable final, non-appealable judicial opinions.
(I) "Com~nunity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are i~nposed on
Borrower or the,Property by a condominium association, homeowners association or similar organization.
(J) "Electronic Funds Transfer" means any transfer offi~nds, other than a transaction originated by check, draft, or similar paper
instrument, which is initiated through an electronic terminal,-telephonic instrument, computer, or magnetic tape so as to order, instruct,
or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated
teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers.
(K) "Escrow Items" means those items that are described in Section 3.
(L) "Miscellaneous Proceeds" means any compensation, se~lement, award of damages, or proceeds paid by any third party (other than
insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; :(ii) condemnation
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or other talcing of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) Inisrepresentations ot; or omissions as
to, the value and/or condition of the Property.
(M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan.
(N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, phis (ii) any amounts
under Section 3 of this Security Instrument.
(O) "RESPA" means tl{e 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 regmld
to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA.
(P) "Successor in Interest of Borrower" means any party that has taken rifle to the Property, whether or not that party has assnmed
Borrower's obligations under the Note and/or this Security lnstrmnent.
TRANSFER OF RIGHTS IN THE PR.OPERTY
This Security Instrument secures to Lender. (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note;
and (ii) file perfbnnance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Bon'ower
does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the tbllowing described
property located in the County of LINCOLN:
Lots 1, 2, 3 and 4 of Block 11 to the Town of Diamondville, Lincoln County, Wyo~ning as described on the official plat
thereoL
Parcel Identification Number:
which currently has the address of: 301 DIAMONDVILLE AVENUE
D1AMONDVILLE, WYOMING 83:116
("Property Address"):
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures
now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the
fbregoing is referred to in this Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant
and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend
generally tile title to the Property against all claims and demands, subject to any encumbrances of record.
TIIlS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited
variations by jurisdiction to constitute a un/form security instrument covering real property.
UNiFOR'M COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest, Escrow Items, Prepay~nent Charges, and Late Charges. Borrower shall pay when due the
principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower
shall 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 instrument received by Lender as payment under the Note or this Security Instrument is
returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be
made in one or more of the following forms, as selected by Lender: Ca) cash; Cb) money order; Cc) certified check, bauk check, treasurer's
check or cashier's check, provided'any such check is drawn upon au institution whose deposits are iusured by a federal agency,
instrumentality, or entity; or Cd) Electronic Funds Transfer.
Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may
be designated by,,Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the
payment or partial payments are insufficient to bring tile Loan current. Lender may accept any payment or partial payment insnfficient
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. 1[' each Periodic Payment is applied
as of its scheduled due date, then Lender need not pay interest on unapplied fimds. Lender may hold such unapplied flmds until Bon'ower
makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such
fimds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note
immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower
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from making payments due under the Note and this Security Instrument or performing the covenants and agreemen[s secured by this
Security Instrument.
2. Application of Payments or Proceeds..Except as otherwise described in this Section 2, all payments accepted aud applied
by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts
due under Section 3. Such payments shall be applied to each Periodic Payment in the order ill which it became due. Any relnaining
amounts shall be applied first to late charges, second to any other amounts due t.nder this Security Instrument, and then to reduce the
principal balance of the Note .... ,
If Lender receives a payment from Bm'rower 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 fi'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. Vohmtary prepayments shall be applied first to any prepayment
charges and then as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend
or postpone the due date, or change the mnount, of the Periodic Payments.
3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under tile 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 Instrnment as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property,
if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any
stuns payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section
10. ~lhese items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community
Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, aad such dues, fees and assessments shall be all Escrow Item.
Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds roi'
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 an5, time. Any such waiver may only be in writing. In the event of such
waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has
been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as
Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a
covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower
is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may
exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender ally such
amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and,
upon such revocation, iBm'rower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in all amount (a) sufficient to permit Lender to apply tlie Funds at the time
specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lendfir shall estimate tile amount
of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise ill accordance with
Applicable Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including
Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay
the Escrow Items no later than the time specified under RESPA. Leuder shall not charge Borrower fbr holding and applying the Funds,
annually analyzing the escrow account, or verifying tile Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable
Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the
Funds, Lender shall not be required [o pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing,
however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as
required by RESPA.
If there is a surplus of Funds held~in escrow, as defined under RESPA, Lender shall account to Borrower for tile excess funds
in accordance w, ith R/ESPA. If there is a shortage of Funds held ill escrow, as defined under RESPA, l_,ender shall notify Borrower as
required by RESPA, and Borrower shall pay to Lender the. amount necessary to make up the shortage in accordance with RESPA, but in
no more than 12'monthly payments. If there is a de/iciency of Funds held in escrow, as defined under RESPA, Lender shall notify
Borrower as required by RESPA, and Borrower shall pay to Lender the ammmt necessary to make up the deficiency in accordance with
RESPA, but in no more than 12 monthly payments.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly retired to Bon'ower any Funds held
by Lender.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, rilles, 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 Commuuity Association
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IDS, lac, ~ (800)554-1872 Borrower(s) Initials
Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided
in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees
writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing
such agreement; (b) contests the lien in good faith by, or dei~nds 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 (e) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
determines that any pa~t of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give
Borrower a uotice identifying the lien. Widfin 10 days of the dale on which that notice is given, Bon'ower shall sadsfy the lien or take one
or more of the actions set forth above in this Section 4.
Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender
in connection with this Loan.
~. Property Insurance, Borrower shall keep the improvements now existing or hereafter erected on the Property insured against
loss by fire, hazards iucluded within the term "extended coverages" and any other hazards including, but not limited to, earthquakes and
floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the
periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the 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 cl]arge
for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification
services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or
certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency
in connection with the review of any flood zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option
and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therd~re, such coverage
shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against
any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the
cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any
amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These
amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice fi'om Lender
to Borrower requesting payment.
All insurance poli6ies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such
policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall
have the right to hold the policies and renewal certificates. If'Lender requires, Borrower shall promptly give to Lender all receipts of paid
premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to,
or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an
additional loss payee.
In the event of loss, Borrower shall give prompt notice to tim insurance carrier and Lender. Lender may make proof of loss if
not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the
underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is
economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold
such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's
satisfaction, provided that such inspection shall he undertaken promptly. Lender may disburse proceeds for the repairs and restoration in
a ~ingle payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing 0r Applicable Law
requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
proceeds. Fees for public a~usters, or other third panics, retained by Borrower shall not be paid out of the insurance proceeds and shall
be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the
insurance proceeds shall be applied to the sums secured by this Secm'ity Inswument, whether or no~ then due, with the excess, if auy, paid
to Borrower. Shah insurance proceeds shall be applied in the order provided for in Section 2.
If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If
Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has ofl~red to settle a claim, then Lender may
negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property
under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurauce proceeds in an amount not to
exceed the amonnts unpaid ander the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any
refund of unearned premiums paid by Borrower) under all insurauce policies covering the Property, insofar as such rights are applicable
to the coverage of the Property. Lender may nsc 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.
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IDS, inc.-(800) 554-3872 Borrower(s) initials
6. Occupancy. Borrower shall occupy, establish, and use tile Property as Borrower s pLincipal residence within 60 days arier the
execution of this Security Instrument and shall contiuue to occupy tile Property as Borrower's principal residence for at least one year after
tile date of occupancy, unless Lender otherwise agrees iL1 writing, which consent shall not be unreasonably withheld, or unless extennating
circmnstances exist which are beyond Borrower's control.
7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the
Property, allow the Property to deteriorate or commit waste on tile Property. Whether or not Borrower is residing ill tile Property, Borrower
shall maintain the Property in order to prevent the Property fi'om deteriorating or decreasing ill value due to its condition. Unless it is
determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if
damaged to avoid further deterioration or damage. If insurance or condemnation proceeds aie paid in connection with damage to, or tile
talcing o~ tile Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds, for such
purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work
is completed, if the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of
Borrower's obligation for the completion of such repair or restoration.
Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may
inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior
inspection specifying such reasonable cause.
8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons
or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, of inaccurate
information 0r statements to Lender (or failed to provide Lender with material information) in connection with· the Loan. Material
representatiolls inch de, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal
residence.
9. Protection of Lender's Interest in the, Property and Rights Under this Security Instrument. If (a) Borrower fails to
perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect
Lender's interest in the Propel~y and/or i:ights under this Security Instrument (such as a proceeding in bankruptcy, probate, for
condemnation or forfeiture, foL' enfi)rcement of a lien which may attain priority over this Security lastrument or to enforce laws or
regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay foL' whatever is reasonable or appropriate to protect
Lender's interest in tile Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property,
and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien
which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest
in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the
Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain
water fi'om pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Althot, gh Lender
may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do' so. It is agreed that
Lender incurs no liability for not taking an), or all actions authorized under this Section 9.
Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security
Instrument. These amounts shall bear interest at tile Note rate from tile date of disbursement and shall be payable, with such intel'est, upon
notice from Lender to Borrower requesting payment.
If this Security Instrument is on a leasehold, Borrower shall comply with all tile provisions of the lease. If Borrower acquires fee
title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger ill writing.
10. Mortgage Insurance, If Lender required Mortgage Insurance as a condition of' making the Loan, Borrower shall pay the
premiums requ red to maintain the Mortgage Insurance ill effect, if, foL' any reason, the Mortgage Insurance coverage required by Lender
ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately
designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage
substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the
Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage
Insurance coverage is not available, Borrower shall continue to pa), to Lender the amount of the separately designated payments that were
due when the insurance coverage ceased to be iL1 effect. Lender will accept, use and retain these payments as a non-refundable loss reserve
in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid ill
and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve
payments if Mortgage Insurance coverage (in theamount and for the period that Lender requires) Provided by all insurer selected by
Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage
Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately
designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage
Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirelnent for Mortgage Insurance ends in accordance
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with any written agreement between Borrower and Lender providing for such termination or uutil termination is required by Applicable
Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided ill the Note.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur it' Borrowe,- does
not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
Mortgage insurers evaluate their total risk on all such insurance in force fi-om time to time, and may entel' into agreements with
other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the
mortgage insurer and tile other party (or parties) to these agreements. These agreements may require the mortgage insurer to make
payments using any sero'ce of funds that tile mortgage insurer may }lave available (which may include funds obtained fi'om Mortgage
Insurance premiums).
As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, ally other entity, or auy affiliate
of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or Might be characterized as) a portioa of
Borrower's payments for Mortgage Insurance, itl exchange fbr sharing or modify, lng the mortgage insurer's risk, or reducing losses. If'
such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the
insurer, the arrangement is often termed "captive reinsurance." Further:
Ca) Any.such agree~nents will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or ally
other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will
not entitle Borrower to any refund.
Cb) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under
the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to
request and obtain cancellation of the Mortgage Insurance. To bare the Mortgage Insurance terminated autolnatically, and/or
to receive a retired of any Mortgage lusurance premiums that were nnearned at the time of such cancellation or termination.
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid
to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration
or repair is econotnically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the
right to hold such Miscellaneous Proceeds tmtil Lender has }lad an opportunity to inspect such Property to ensure the work has been
completed to Lender's satisfaction, provided that sncl~ 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 all 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 oil such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be
lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the
excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall 'be applied in the order provided for in Sectiou 2.
In tile event of a total taking, destruction, or loss in value of the Property, tile Miscellaneous Proceeds shall be applied to the sums
secured by this Security Instrument, whether or not then due, with the excess, if an),, paid to Borrower.
in the event of a partial talcing, destruction, or loss in value of the Property in which tile fair market value of tile Property
immediately before the partial taking, destruction, or loss in value is equal to or greater than tile amount of the sums secured by this
Security Instrument immediately before the partial talcing, destruction, or loss in value, unless Borrower and Lender otherwise agree ill
writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the
~bllowing fi'action: Ca) the total amount of the sums secured immediately before the partial talcing, destruction, or loss in value divided
by Cb) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid
to Borrower.
In the event of a partial talcing, destruction, or loss in value of the Property in which the fair market value of the Property
immediately before the partial talcing, destruction, or loss in value is less than the amount of the sums secured immediately before the
partial taking, destruction, or loss itl value, unless Borrower and Lender otherwise agree ia 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 Borrower, or if; after notice by Lender to Borrower that the Opposing Party (as defined in the
next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date
the notice is give'n, 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 Secm'ity Instrument, whether 0r not then due. "Opposing Party" means the third party that owes Borrower
Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds.
Borrower shall he in deihult if any action or proceeding, whether civil or criminal, is begun that, in Lender's.judgment, could
result in forfeiture of the Property or other material impairment of Lender's interest ill the Property or rights under this Security Instrument.
Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding
to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's
interest in the Property or rights under this Security Instrument. The proceeds of any award or claim fbr damages that are attributable to
the impairment of Lender's interest ill the Property ai'e hereby assigned amt shall be paid to Lender.
WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 305'1 1/01
Page 6 of 10
IDS, I .... (800) 554-1872 Borrower(s) Initials (//,.~'~ ? z, t ~
All Miscdlaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for
ill Section 2.
12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of
amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Bon'ower shall
not operate to release the liability of Bon'ower or any Successors in interest of Borrower. Lender shall ,lot be required to commence
proceedings against any Successor in Inter6st of Borrower or to refiise to extend time for payment or otherwise modify amortization of
the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of
Borrowe:r. Any forbearance by Lender in exercising an), right or remedy including, without limitation, Lender's acceptance of payments
from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall ,lot be a waiver of
or preclude the exercise of any right or remedy.
13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's
obligations and liability shall be joint and several. However, any Borrower who co~signs this Security Instru~nent but does not execute
the Note (a "co-signer"): (a) is co-signing this Security hutrument only to mortgage, grant and convey the co-signer's interest in the
Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security hlstrument;
and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the
terms of this Security Instrument or tile Note without the co-signer's consent.
Subject to the provisions of Section 18, any Successor in Interest of'Borrower who assumes Borrower's obligations under this
Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument.
Borrower shall not be released fi'om Borrower's obligations and liability under this Security Instrument unless Lender agrees to such
release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit tile
successors and assigns of Lender.
14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the
purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but ,lot limited to, attorneys~
fees, property inspection and valuation fees. in regard to any other fees, the absence of express authority in this Security Instrument to
charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are
expressly prohibited by this Security Instrument or by Applicable Law.
If the Loau is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other
loan charges collected or to be collected in connectiou with the Loan exceed the permitted Ii,nits, then: (a) any such loan charge sliall be
reduced by the amount necessary to reduce the charge to the permitted limit; and (b) ally sums already collected fi'om Borrower which
exceeded permitted limits will be refimded to Borrower. Lender may choose to make this retired by reducing the principal owed under
the Note or by making a direct payment to Bon'ower.'if a refund reduces principal, the reduction will be treated as a partial prepaymeut
without an); prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptauce of any such
refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such
overcharge.
15. Notices. All notices given by Borrower 'or Lender in connection with this Security Instrument must be in writing. Any notice
to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower wheu mailed by first class mail
or when actually delivered to Borrox~er s notice address if sent by other means. Notice to any one Borrower shall constitute notice to alt
Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has
designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If
Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address throngh
that specified procedure. There may be only one designated notice address under this Security lnstrume it at any one time. Any notice to
Lender shall be given by delivering it or by mailing it by first class ,nail 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 Instrmnent is also reqnired under Applicable Law, the
Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument.
16. Governing Law; Severabiiity; Rnles of Construction. This Security Instrument shall be governed by federal law and the
law offlle.iurisdiction in which the Property is located. Alt'rights and obligations contained itl this Security Instrument are subject to an5'
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 conflicts with Applicable Law, such conflict shall not affect other provisions of this
Security Instrument or tile Note which Can be given effect without tile conflicting provision.
As used in this Security Instrument: (a) words of the masculine gender shall mean and inchlde corresponding neuter words or
words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives
sole discretion without any obligation to take an5, action.
WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01
Pa~e 7 of 10 .//,/~, ,
IDS, Inc-(80D)554-1872 Borrower(s) Initials ,Jr2 ~-<~/{~"
17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument.
18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means
any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred iu a bond for deed,
contract fo[ deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date
to a purchaser.
If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and
a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Leader may require immediate payment
in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited
by Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less
than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this
Security Instrument. if Borrower fails to pay these sums prior to the expiration of this period, Leqder may invoke any remedies permitted
by this Security Instrument without further notice or demand on Borrower~
19. Borrower's Right to Reinstate Alter Acceleration. If Borrower meets certain conditions, Borrower shall have the right to
have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) 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 fbr the
termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security instrument. Those conditious are that
Borrower: (a) pays Lender all sums which then would be due under this Secur-ity Instrument and the Note as if no acceleration had
occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument,
including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose
of protecting Lender's interest in the Property and rights under this Security lnstrmnent; and (d) tal~es 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 Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement
sums and expenses in one or more of the following fbrms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check,
treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency,
instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security lustrument and obligations
secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case
of acceleration under Section 18.
20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this
Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known
as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan
servicing obligations under the Note, this Security instrument, and Applicable Law. There also might be one or more changes of the Loan
Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change
which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information
R'ESPA 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 transfen'ed 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 fi'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 Instrument, until such Borrower or Lender has notified the other
party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and aftbrded 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 cure given to Borrower pursuant to Section 22 and the notice of ac.celeration given to Borrower pursuant
to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20.
21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or
hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or
toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive
materials; (b) "Environmental [,aw" means federal laws and laws of the jurisdiction where the Property is located that relate to health,
safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as
defined in Environmental Law; and (d) an "Environmental Condition" means a 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, uor allow anyone else Io do, anything affecting the
WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01
Page 8 of 10
Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the
presence, use, or release of a Itazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two
sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally
recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous
substances in consumer products).
Borrower shall promPtly give Lel~der written notice of (a) any investigation, claim, demand, lawsuit or other action by any
govemn~ental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which
Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release
or threat of release of any ltazardous Substance, and (c) any condition caused by the.presence, use or release of a Hazardous Substance
which adversely affects the value of the Property. if Borrower learns, or is notified by any governmental or regulatory authority, or any
private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall
promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender
for an Environmental Cleanup.
NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of
any covenant or agreement in this Security Instrument (but not prior to acceleration onder Section 18 unless Applicable Law
provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than
30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default
on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale
of the Property. The notice shall further inform Borrower of the right to reinstate after aeceleratioo and the right to bring a court
action to assert the non-existence of a defaolt or any other defense of Borrower to acceleration and sale. If the (lefault is not cured
on or before the date specified in the notice, Lender at its option may require immediate payment in fi~ll of ali sums secured by
this Security lnstrnment without further demand'and may invoke the power of sale and any other remedies permitted by
Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22,
including, but not limited to, reasonable attorneys' fees and costs of title evidence.
If Lender invokes the power of sale, Lender shall give notice of iutent to foreclose to Borrower and to the person in
possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the
manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed
by Applicable Law. Lender or its d~signee may pu'rehase the Property at any sale. The proceeds of the sale shall be applied in the
lbllowing order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to ali stuns secured by
this Secnrity Instrument; and (c) any excess to the person or persons legally entitled to it.
23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security lostrument.
Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee
is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law.
24. Waivers, Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming.
WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01
fDS, Inc. - (800) 554-1872 Page 9 of 1 0
BY SIGNING BELOW, Bon-ower accepts and agrees to the terms and covenants contained in this Security Instrument and in
any Rider executed by Borrower and recorded with it.
Witnesses:
~/~_-z~-/Z ~----. /,~5~-5~ (Seal)
~.-"J~'SEPH/F KALAN ' -Borrower
,~)~"....... '? ~..' '--~ ~/1
('/~ ,:~-~' ~' ___--7~.~-- ...... . (Seal)
LORI KAY KAL~ ' -Borrower
(Seal)
-Borrower
(Seal)
-Borrower
STATE OF WYOMING, Lincoln County ss:
The foregoing instrument was acknowledged before me this 22nd day of October, 2001 (date)
by JOSEPH F KALAN, and LORI KAY KALAN. ~"~0~~..._..~) C~
My commission expires: February 2,' 2002 C' ~ c-~tt.(~._-~
Notary P~blic /)
WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01
Page ~0 of ~0
~E)$, ~nc, - (800) 554-1§72