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HomeMy WebLinkAbout874869 LIN:.';Ot.N COUNTY CLERK After Recording Return To: BOoK4~.'.,E~_PR PAGE COMlVlLrNITY FIRST NATIONAL BANK 200 NORTH CE~ER STREET ROCK SPRIN~S, ~ 82901 [Space Above This Line For Recording Data] HOD(NE MORTGAGE ,.ow ~=,~: PARCEL NUMBER: DEFINITIONS Words used in multiple secnons of this document are defined below mid other words are defined in Sections 3. 11. 13, 18. 120 and 21. Certain rules regarding the usage of words used in tiffs docmnent are also provided in Section 16. (A) "Security Instrument" means this document, which is dated JULY 27, 2 001. together with all Riders to this document (B)"Borrower"is K~L& J. HOD(RE, A SINGLE PERSON Borrower is the mortgagor under this Security Instrument. (C) "Lender"is COMMUNITY FIRST NATIONAL BANK Lender is a CORPORATION organized and existing under the laws of THE UNITED STATE OF AMERICA . Lender's address is 200 NORTH CENTER STREET ROCK SPRIN(RS, WY 82901 Lender is the mortgagee under this Security Instrument. (D) "Note" mea~s the promissory note signed by Borrower and dated JULY 27, 2001, The Note states that Borrower owes Lender EIGHTY-TWO THOUSAND SIX HLE~IDRED FIFTY AND 00/100 Dollars (U.S. $ 82,650.00 ) plus interest. Bon'ower has promised to pay this debt in regular Periodic Payments and to pay the debt in full noL later than AUOUST 1, 2031 (E) "Property" means the property that is described below under the heading "Transfer of Ri ;,hts m the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment ch~ges 7and late charges due under the Note. and 'all sunzs due under this Security Instrument, plus interest. WYOMLNG - Single Fanfily - Famfie Mae/Fretidle Mac UNIFORSI INSTRUMENT Form 3051 1/01 DOCUiWYt Page ] of J2 pages ~oetr~'tx ,v~x ~/oa/aooo 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 [] Biweekly Payment Rider [] 1-4 Family Rider [] Other(s) [specify] · (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable ju, dicial opinions. (I) "Community Association Dues. Fees, and Assessments" means ali dues. fees. assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or simil~ organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or a~thorize 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, a~ct automated clearinghouse transfers. (K) "Escrow Items" means those items that are described h Section 3, (L) '%liseellaneous Proceeds" means m~y compensation, settlement, award of damages, or proceeds paid by any third party (other than insurame proce¢ds paid under the coverages described in Section 5) for: (i) damage to. or destruction of. the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of conde~rmaticm or (iv) misrepresentations of, or omissmns as to, the value art/or condition of the Property, (M) "Mortgage Insurance" means insurance p:otectmg Lender against the nmpayment of. or default on. the Loan, (N) "Periodic Payment" means the regularly scheduled mnounl due for (i) principal and interest under the Note, plus (ii) any anounts under Section 3 of this Security Instrument. (O) "RESPA" means the Re~d Estate Settlement Procedures Act (12 U.S.C, §2601 et seq.) and 1ts implementing regulation, Regulation X ~24 C.F.R. Part 3500), as the)' might be amended from time to rune. 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" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Bor~bwer's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan. and ali renewals, extensions and modifications of the Note: and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose. Borrower does hereby mortgage, grant aid convey to Lender and Lender's successors and assigns, with power of sale. the fbllowing described property located in the COUNTY Type of Recordh~g Jufisdktion) of LINCOLN (Name of Recording Jurisdiction LOT I OF BLOCK 2 OF LINCOLN HEIGHTS 3RD SUBDIVISION TO THE TOWN OF KEMMERER, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. which currently has the a~dress of 908 SORENSEN DRIVE [Street] KEMIVlERER ,Wyoming 8 310 l ("Property Address"), [Cityl [Zip Code] WYOMING - Single Family - (ramie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3051 1/01 DOCU1WY2 (Page 2 ~-12 pages DOCUIWY]. VTX I1/0112000 ' 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 foregomg ls referred to in this Security hlstrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed mid has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants m~d will defend generally the ti.tie to the Property against all claims and demands, subject to any encumbrmmes of record. THIS SECURITY INSTRUMENT combines uniform covenm~ts for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges, Borrower shall pay when due the pnncipal of. and interest on. the debt evidenced by the Note m~d any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursum~t to Section 3, Payments due under the Note and this Secumty Instrument shall be made in U.Scurrency. However. if any check or other instrument received by Lender as payment under the Note or this Security Instrurnent is tetra'ned to Lender unpai& 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 cast~er's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or enuty; 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 accordmxce with tile notice provisions in Section 15. Lender may return any payment or partial payment if the payment or p~u'tial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loax current, without waiver of any rights hereunder or prejudice to its rigl~ts to refuse such payment or partial payments m the future, but Lender is not obligated to apply such payments at the time such paymems are accepted. If each Periodic Payment ~s applied as of its scheduled due date. then Lender need not pay interest on unapplied funds Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reaqonable period of time. Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or m the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants rind 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 of priority: to) interest due under the Note: (b) principal due under the Note: (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it becmne due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument. and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment m~d the late charge. If more thau one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that. each payment cau~ 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. Volmltary prepayments shall beapplied first to any prepayment charges and then as described iix 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 chtmge the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower slx'A1 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: to) taxes and assessments mxd other items which crux attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if auy; (c) premiums for any and all insurance WYOMING - Single Fanfily - Fannie Mae/Freddie Mac UNIFORhM INSTRUMENT Fonn 3051 1/01 DOCUIWY3 (Page 3 of 12 pagesj nocutw~a .v?x :t:t/oa/aooo required by Lender under Section 5; m~d (d) Mortgage Insurance premiums, if ~my, or m~y sums payable by Bo~ower to Lender in lieu of the payment of Mortgage Insur~ce pre,urns in accord~ce with the provisions of Section 10. These iten~ are called "Escrow Items." At origination or at ~.y time during the term of the Lo~, Lender may require that Community Association Dues, Fees, m~d Assessments, ff mW, be escrowed by Borrower, and such dues, fees m~d assessments shall be an Escrow Item, Borrower shall promptly fu~ish to Lender all notices of amounts to be paid under this Section, Bo~ower shall pay Lender the ~nds for Escrow Ite~ unless Lender wanes Bo~ower's obligation to pay the Funds for ~y or all Escrow Items, Lender may wane Bo~ower's obligation to pay to Lender Funds for m~y or all Escrow Items at ~y t~me, Any such w~ver may only be in writing. In the event of such waiver, Borrower shall pay directly, when ~d where payable, the ~mounts due for mW Escrow Ite~ for which payment of Funds has been waned by Lender m~d, if Lender requires, shali furnish to L~nder receipts evidencing such payment within such time period as Lender may require. Bo~ower's obligation to make such payments and to provide receipts shall for all purposes be deemed lobe a cove.rimer m~d agreement contained ~n this Security Instrument. as the phrase "coven~t and agreement" is used in Section 9, If Bo~ower is obligated to pay Escrow Iten~ directly, pursuant to a waiver. ~d Bo~ower fails to pay the amount due for an Escrow Item. Lender may exercise its rights under Section 9 m~d pay such amount m~d Bo~ower shall then be obligated under Section 9 to repay to Lender m~y such amounL Lender may revoke the waiver as to m~y or all Escrow Ite~ at any time by a notice g~ven in accord~ce with Section 15 ~d, upon such revocation. Bo~ower shal~ pay to Lender all ~nds, ~d in such mnounts, that ~e then required under this Section 3. Lender may, at any time, collect m~d hold Funds in an amount (a) sufficient to peril Lender to apply the ~nds at the time specified under ~SPA. m~d (b) not to exceed the maximum amount a lender can require under ~SPA, Lender shall estnnate the amount of Funds due on the basis of current data ~d reasonable estimates of expenditures of future Escrow Items or otl~erwise in accord~ce with Applicable Law, The ~nds shall be held in an insti tution whose deposits ~e insured by a federal agency, instrumentality, or entity (including Lender. if Lender is m~ institution whose de. sits ~e so insured) or in ~y Federal Home Lom~ Bm~k, Lender shall apply the Funds to pay the Escrow Iten~ no later thm~ the time specified under ~SPA. Lender shall not cht~ge Bo~ower for holding m~d applying the Funds. m~nuMly mmlyzing the escrow account, or verifying the Escrow Items, unless Lender pays Bo~ower interest on the Funds ~d Applicable Law per. ts Lender to make such a chm'ge, Unless m~ agreement is made in writing or Applicable Law reqmres interest to be paid on the Funds, Lender shall not be required to pay Bo~ower any interest or earnings on the Funds, Borrower m~d Lender cm~ agree in writing, however, that interest shall be paid on the Funds Lender shall give to Borrower. without ch~ge, m~ mmual accounting of the Funds as required by ~SPA. If there is a su¢lus of ~nds held ~n escrow, as defined under ~SPA, Lender shall account to Boffower for the excess fuuds in accordm~ce with ~SPA. If there is a shortage of Funds held in escrow, as defined m~der ~SPA. Lender shall 2otify Borrower as required by RESPA, ~d Bo~ower shall pay to Lender the amount necess~y to m~e up the shortage m accordmtce with ~SPA, but in no more thm~ 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Boffower as required by ~SPA. and Bo~Tower shM1 pay to Lender the amount necess~ to make up the deficiency in accordm~ce with ~SPA. but ~n no more thm~ 12 monthly payments. Upon payment in full of all sun~ 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, fines, m~d impositions attributable to the Propeny which cm~ attain priority over ~is S~curity Instrument. leasehold payments or ground rents on the Property, if m~y, and Conmmnity Association Dues, Fees, ~d Assessments. if m~y, To the extent that these items ~e Escrow Items. Boffower shall pay them in the manner provided m Section 3 Bo~ower shall promptly disch~ge mty lien which has priority over this Security Instrmnent unless Boffower: (a) agrees in writing to the payment of the obligation sec~ed by the lien in a rammer acceptable to Lender, but only so long as Borrower is perforn~ng 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 proceed~gs ~e pending, but only until such proceedings are concluded: or (c) secures from the holder of the lien m~ agreement satisfactow to Lender subordinating the lien to this Security Instrument. If Lender deten~nes that m~y part of the Property is subject to a lien whid~ cm~ attain priority over this Security Instrument, Lender may give Bo~ower a notice identifying the lien Within 10 days of the date on wtsch WYOMING - Single Family- Fmmie Ma~reth~e Mae UNIFORM INSTRUMENT Fomn 3051 ~01 DOCUiWY~ (Page 4 of ] 2 pages, ~ocux~ .~x xx/o~/~ooo that notice is g~ven, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower tO pay a one-time 6harge for a real estate tax verification and/or reporting 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 fire, hazards included within the term "extended coverage." and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This ~nsurance 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 r~ght to disapprove Borrower's choice. which right shall not be exercised unreasonably Lender may reqmre Borrower to pay, ~n connection with this Loan. either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services mid subsequent charges each time remapp~ngs or similar chm~ges occur which reasonably nnght affect such deterrrfination or certification. Borrower shall also be responsible for the payl-nent of any fees imposed by the Federal Emergency Management Agency ~n connection with the review of any flood zone determination resulting fi'om 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. Lenderis under no obligation to purchase any particular type or amount of coverage. Therefore. such coverage shall cover Lender. but rmght or might not protect Borrower, Borrower's eqmty 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. Bon'ower 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 mhd shall be payable. with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender mid renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgageclause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall imve the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly g~ve to Lender all receipts of paid premiums mid renewal notices. If Borrower obtains any form of insurm~ce coverage, not otherwise required by Lender. for damage to, or destruction of. the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss. Borrower shall give prompt notice to the insurance carrier mid Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender mid 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 ~s economically feasible mhd Lender's security is not lessened During such repair and restoratton 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 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 ~s completed. Unless an agreement ~s made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower anx interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shaI1 not be paid out of the msurmlce proceeds mid 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 sunxq secured by this Security Instrument. whether or not then due. with the excess, if any, paid to Borrower, Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurm~ce claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise. Borrower hereby assigns to Lender (a) Borrower's rights to mir 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 tha~the right to any refund of unearned premiums paid by Borrower) under ail ~nsurance policies covering the Property, insofar as such r~ghts WYOMING - Single Family - Fmmle Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCUIWY5 /Page 5 cfi2 .~)ages~ Docu~.wY~ .v~x :[t/ol/aoo0 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 Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower' s control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property,from deteriorating or decreasing in 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 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 suct:~ puqooses. 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 insur~ce or condemnation proceeds are not sufficient to repmr or restore the Property,. Borrower is not relieved of Borrower's obligation for the completion of such repmr or restoration. Lender or its agent may make reasonable enmes 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, or inaccurate information or statements to Lender (or failed to provide Lender with material infor~nation) m connection with the Loan Material representations include, but are not limited to. representations concerning Borrower's occupancy of the Property as Borrower's principa residence. 9. Protection of Lender's Interest in the Property and Rightq Under this Security Instrument. If (a) Borrower fails to perform the covenants mtd agreements contained irt this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condeIratation or forfeiture, for enforcement of a lien which may attain priority over this Sem~rity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for wltatever is reasonable or appropriate to protect Lender's interest in the Property-and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property Lender's actions cm~ include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument: Ih) 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 from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although 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 any 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 the Note rate from the date of disbursement and sh~l be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in xvriting. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the pren'nums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available I¥om 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 substamti~ly equivalent to WYOMING - Single Family - Fmmie Mae/Freddie Mae UNIFORM INSTRUMENT Fonn 3051 1/01 DOCU1WY6 (Page 6 of J2/)ages) the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable los ~ reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full. and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage hlsurance coverage tin the amount mid for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premmms for Mortgage hlsurance. If Lender required Mortgage Insurance as a condition of making the Loan aid Borrower was required to make separately designated payments toward the premiums for Mortgage hlsurance. Borrower shall pay the premiums required to maintain Mortgage hisurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage hlsurance ends in accordalce with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender {or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage nlsurers evaluate their total risk on all such insurance iii force from time to time. mid may enter into agreements with other parties that shoe or modify their risk, or reduce losses. These agreements are on terms mid conditions that are satisfactory to tlle mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to nlake payments using any source of funds that the mortgage insurer may have available twhich may include funds obtained from Mortgage hisurance premiums). As a result of these agreements, Lender, mi}' purchaser of the Note. another insurer, any reinsurer, any other entity, or any afl'iliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance. in exchange fosharing or modifying the mortgage insurer's risk. or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other 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. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance Under the Itomeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance prenfiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to aid 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 economically feasible and Lender's security iS not lessened. During such repmr and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had mx 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 cornpleted. Unless an agreement is made m 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 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 Section 2. Inthe event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. WYOMING - Single Fanfily - Fmmle MaedFreddle Mac UNIFOI~M INS I'RUMENT Form 3051 1/01 DOCU1WY? (Page 7 9f 12 pages) ~ocm.~? .wx xx/o~/~ooo In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Securitylnstrumentshall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sumq secured imtnediately before the partial taking, destruction, 'or loss m value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property inm~ediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds sba1. 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 P~ty (as defined m 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 ~s given, Lender is authorized to collect a~d apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sunxs secured by this Security Instrument, whether or not then due. "Opposing Part}"' means the third party that owes Borrower Miscellaneous Proceeds or the party against xvhom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun 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 Instrument Borrower can cure such a default mhd, 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 for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned trod shall be paid to Lender. All Miscellaneous lh-oceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver, Extension of the ti me for payment or modification of amortization of the sums secured by this Security Instrument grm~ted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to con-unence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or anv Successors in Interest of Borrower, Any forbearance by Lender in exercising any right or remedy including, without limAtation. Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amomus less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13, Joint anti Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However. ~y Borrower who co-s~gns this Security Instrumentbut does not execute the Note (a "co-signer"): (a) is co-sigmng this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security h~strument: (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with reg~d to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18. any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender. shall obtain all of Borrower's rights and benefits under this Security Iustrument. Borrower shall not be released froin Borrower's obligations liability under this Security Instrument unless Lender agrees to such release m wrmng. The covenants mid agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14, Loan Charges. Lender mav charge Borrower fees for services performed in connectmn with Borrower's default, for the purpose of protecting Lender's interest in the Property mhd rights under this Security Instrument. including, but not limited to. attorneys' fees, property inspection and valuation fees In regard to any WYOMING - Single Family - Pmmie MaeZFreddte Mae UNIFORM INSTRUMENT Fonn 3051 1/0h DOOUtWY8 'Page 8 of ] 2 pages) other fees, the absence of express autho'rity 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 Loan is subject to a law which sets maximumloan charges, mid that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted lin'fits, then: (a) any such loan charge shall be reducecby the amount necessary to reduce the charge to the permitted lin'tit; and (b) any sums already collected from Borrower which exceeded permitted linnts wit1 be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principah the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of aty such refund made by direct payment to Borrower will constitute a waiver of any right of ~ction Borrower might have arising out of such overcharge 15. Notices, All notices given by Borrower or Lender i~_ connection with this Security Instrument must be in writing. Any notice to Bon'ower 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 nonce address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the P, roperty Address unless Bon'ower 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 through that specified procedure. There may be only one designated notice address under this Security Instrument at any one 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 tct~ave 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 Instrument. 16, Go,~'erning Law; Severability; Rules of Construction. This Sect~rlty Instrument shall be governed by federal law a:d the law of the jurisdiction in which the Property is located All rights aid obligations contained in this Security Instrument are subject to any requiremeuts and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or tt 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 the Note which can be given effect withoul the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter Words or words of the ferrdnine gender; (b) words in the singular shall mean and include the plural and vice vers a: and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note mid of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used m this Section 18. "Interest in the Property" means any legal or beneficial interest in the Property, including, but not lmfited to. those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or ~scrow 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 theProperty is sold or transferred lot if Borrower is not a natural person and a beneficial interest in Borrower is sold or trans ferred'~ without Lender's prior written consent, Lender may reqmre in~unediate payment itt 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 accord~mce with Section 15 within which Borrower must pay all sums secured by this Security hlstrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demaIld on Borrower. 19. Borrower's Right to Reinstate A t'ter 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 WYOMING - Single Family - Fmmie MaefFreddie Mac UNIEORM INSTRUMENT Form 3051 1/01 DOCU1WY9 (Page 9 of]2 [~agesj DOCUIWY9 .VTX 11/04/~000 (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 termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument axtd the Note as if no acceleration had occurred: (b) cures any default of any other covenants or agreements; (c) pays ail expenses incun'ed in enforcing this Security Instrument, including, but not limited to. reasonable attorneys' fees, property inspection and valua:~on fees. and other fees incurred for the purpose of protecting Lender's interest in the Property. and rights under this Security Instrument; and (d) takes such action as Lender may reasonably reqmre to assure that Lender's interest in th'e Property and rights under this Security Instrument. ,'md Borrower's obligat~on to pay the sums secured by this Security Instrument. shall continue unchanged. Lender may require that Borrower pay such reinstatement sunzq and expenses in one or more of the following forms, as selected by Lender: (a) cash: (b) money order; (c) certified clteck, bank check, treasurer's check or cashier's check, provided any such check is draw.q upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower. this Security Instrument mid obligations secured hereby shall remain fully effective asif 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 Service; Notice of Grievance. The Note or a partial interest m the Note (together with this Security Instrument) cat be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loa~ 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 Loar_ 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 mid address of the new Loan Servicer, the address to whicl~ paymenta;hould be made and any other information RESPA requires in connection witll a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other thm~ the purchaser of the Note. thee mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer mid 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 a~y judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursumlt to this Security Instrument or that alleges that the other party has breached any provision of, or a~y duty owed by reason of, this Security Instrument. until such Borrower or Lender has notified the other p~u'ty twith suclx nonce given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after.the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 mhd the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice mid opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances, As used in this Section 21: (a) "Hazardous Sukstances~ "are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Lax,,' andthe following substances: gasoline, kerosene, other flm~nable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents. materials containing asbestos or formaldehyde, and radioactive materials: (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Prope.rty 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 "Environ mental Condition" memts a condition that can cause, contribute to, or otherwise trigger au~ Environmental Cleanup. Borrower shall not cause or permit the presence, use. disposal, storage, or release of m~y Hazardous Substances, or threaten to release any Hazardous Substances, on or in theProperty. Borrower shall not do. nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law. (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance. creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small qum~tities of Hazardous Substances that are generally WYOMING - Single Family -Fmmte Mae/Freddie Mac UNIFOR~M INSTRUMENT DOCUIWYI0 1701111 3051 V01 ~oem.~r~'*,.v?x a.:./0~/aooo (Page lO (;f12 pages) 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 Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental 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 m~y ttazardous 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 regulator3' authority, any private party, that any removal or other reined)at)on of any Hazardous Substance affecting the Property is necessary, Borrower shill promptly take all necessary remedial actions in accordance with Environmental Law. Nothing l~erein shall create any obligation on Lender for m~ 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 B°rrower~s breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the act)an required to cure the default; (c) a date, m}t less than 30 days from the date the notice is given to Borrower, by which the default mus~ be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleratlon and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and nmy invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possessmn of the Property, if different, in accordance with Applicable Law. Lender sba II give notice of the sale to Borrower in the nmnner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the l?roperty at any sale, The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; {b) to all sums secured by this Security Instrument; and (e) 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 Instrument. 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 senSces rend-ered 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 Wyon2n g. WYOMING - Single Fanfily -Famfie Mae,'l~reddie Mac UNIFOI~I INSTRUMENT Fon~l 3051 U01 DOCUlWYI1 (Page 11 of ]2 pages) BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Ins trument mtd in any Rider executed by Borrower and recorded with it. (Seal) Borrower (Seal) Borrower KARL~ a. HOD(~ -O (Seal) (Seal) Borrower. Bogower (Seal) (Seal) Borrower Borrower [Space Below This Line For Acknowledgment] STATE OF NYOMINO COUNTY OF r.INCOLN The foregomg znstrument was ac~owledged before me by KARr.A j. HODOE, A. 8INOi,E PERSON this 27TH day of JULY, 2001 My Cozrat~ission Expires: t WYOMING - Single Family - Fmmie Mae./Freddte Mac UNIFO1LM INSTRUMENT Fomn 3051 U01 DOCUIW¥ 2 (Page 12 of ]2 pages)