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HomeMy WebLinkAbout962245WHEN RECORDED, MAIL TO: BANK OF IDAHO 399 N CAPITAL AVENUE IDAHO FALLS, IDAHO 83401 This instrument was prepared by: BANK OF IDAHO 399 N CAPITAL AVENUE IDAHO FALLS, IDAHO 83401 208 524 -5580 Loan Number: 111154 IDS, Inc, RECEIVED 12/6/2011 at 4:55 PM RECEIVING 962245 BOOK: 777 PAGE: 543 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY (Space Above This Line For Recording Datal MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated December 5, 2011, together with all Riders to this document. (B) `Borrower" is RUSSELL SCHWENDIMAN AND MALISSA SCHWENDIMAN, HUSBAND AND WIFE. Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for I ender and Lender's successors and assigns. E RS is the mortgagee under this Security Instrument. MERS is organized and existing under the lain of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501 -2026, tel. (888) 679 -MERS. (D) "Lender" is BANK OF IDAHO. Lender is AN IDAHO CORPORATION, organized and existing under the laws of IDAHO. Lender's address is 399 N CAPITAL AVENUE, IDAHO FALLS, IDAHO 83401. (E) "Note" means the promissory note signed by Borrower and dated December 5, 2011. The Note states that Borrower owes Lender FOUR HUNDRED SEVENTEEN THOUSAND AND NO /100 Dollars (U.S. $417,000.00) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than January 1, 2027. (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: 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] (I) "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 judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or WYOMING Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT with MERS Page 1 of 10 00543 MIN: 100223100001111548 Form 3051 1/01 Borrower(s) Initials j WYOMING Single Family Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Form 3051 1101 Page 2 of 10 00544 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. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the eoveragt:s described in Section 5) for: (i) damage, to, or destruction ot, the Property; (ii) condemnation or other taking of all or any part of the Property. (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of or omissions as to the value and /or condition of the Property. LND "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (0) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate. Settlement Procedures Act (12 U.S.C. §-2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. )?art 3500), as they might be amend`dliom time to time, or any additional or successor legislation or regulation that governs the same suhleet matter. As used in this SeetrrityInstrument, "RESPA refers to all requirements and restrictions that arc imposed in regard to a "federally related mortgage loam even lithe loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security lnslrurne_nt secures :to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and tigre entents:under this Security tristrurncnt rued the Note. For this purpose, Borrower does hereby mortgage, grant and convey t0 Mi'RS (solely as nimunee for Lender and I.,ender's stet c,cssors.and assigns) and to the successors and assigns of MERS, with power of sale, the following described property I.ocated in the County of Lincoln: Lot 32 of Trail Creek Subdivision 2nd Filing Recorded October 31, 2007 as Document No. 934492, in the office of the Clerk, Lincoln County, Wyoming Parcel ID Number: 12- 3619 -15 -3- 399.00 which currently has the address of: 290 MARIE LANE Alpine, WYOMING 83128 "Property Address"): TOGE'T'HER WITH all the improvements now or hereafter erected on the property, and alt 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 ofthe is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title: to the interests granted by Borrower in this Security instrument, hut, if necessary to comply Mat law _Or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any nr all of those interests, ineluding, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. 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 the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants 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 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. Flowerer, if any cheek or other instrument received by Lender as payment under the Note car this Secutlty Instrument is returned to Lender unpaid, Under r rmay require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following, tenets, as selected by Lender: (a) cash; (b) money order; (c) certified check, blank cheek:, 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. IDS. Inc, Borrower(s) Initials jfirai WYOMING Single Family Fannie MaelFreddle Mac UNIFORM INSTRUMENT with MERS Page 3 of 10 IDS, Inc 0054'5 Payments are deemed received by Lender when received at the location designated in the Note or at such other location tut maybe designated by Lender in accordance with the notice provisions in Section 15. I...ender may return any payment or partial payment if the payment ar partial payments arc instifticient to bring the Loan eunent. fender may accept any payment sir partial payment insuffrcicnt to. bring the l..oan current, without waiver of any rights hereunder or prejudice to its rights to r efusc such payment or partial payments in the future, but Lender is not obligated to apply such paynicntsat the time such payments are accepted. If eaelt Periodic Payment is applied as Of its scheduled.duc.date; then.Lender need not pay interest on unapplied funds. Lender may hold such unappticd funds until I: 3orrowcr'niakcs payment to bring the Loan current. If Borrower does not do so within a.reasonable period of time, Lendershall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance underthe'Note'immcdiatcly prior to foreclosure. No offset or claim which Borrower might have now or-in the future shall Borrower froni'making payments due under the Note and -this Security Instrument or performing the covenants and agreements neared by this Seenrity 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: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. I f Lender receives a payment :hum Borrower for a delingttcntJ eriodic Payment which includes a sufficient amount to pay any fate charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the rcpaymentcifthe-Periodic Payments if, and to the extent that, each payment can be paid in full. Tel 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. \'olentAry 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 amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender tin the day Periodic Payments are due under the Note, until the Note is paid in hull, a;suru (the "Funds to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this SGeurity Instrument as a lienor encumbrance on the"Propet'ty; (b) leasehold payments or ground rentson the Property, if tiny; (c) prentiurns for any andall insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums; if any, orally slims payable by Borrower to :Lender to heu of the payment of Mortgage Insurance premiums in accordance with the provisions ofSection.ltl. These items arc called Fserovw lams." At origination or at any time .during the term of the Loan, Lender may require that Comrnurrity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower,;and such dues, feeS and assessments shall bean Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any Or all Escrow Items. Lender may waive iorrower's obligation to pay to Lender Funds for any or all Escrow items at anytirnie. Any such waiver may only be in writing. In the event of such waiver. Borrower shall pay directly, when and where payable, amounts due lbrany.i scrow Items for which payment of.Funds been waived by .Lender and., i Mender 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 shalt 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 9.11 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 any such amount. L ender may revoke the Waiver as to any or all Escrow Items at any lime by a .notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3, Lender may, at any time, colleer and hold Funds in an arnount (a) sufficient to permit Lender to apply the Funds at the time speeif ied under RESPA, and: (b) not to exceed the max unum amount a lender can require under RESPA. 1 ender shall estimate. the antaurtt of .Funds due anthe basis of'c:tttrent data and reasonable estimates of expenditures future Escrow titans or otherwisein accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a i'ederal agency, instrumentality, or• entity,(lnetuding Lender, if Lender is an institution whose deposits are so insured) or inany Federal Home loan Bank. Lendershall apply the.Funds to-pay the Escrow Items no later than the time specified under RESPA. Lender not charge Borrower for holding and applying the Funds, annually analyzing the escrow accouni, or verifying the Escrow Items, unless Lender pays Burrower interest on the Funds and Applicable Law permits ],.ender to make such a charge. Unless an agreement is made in writing or Applicable Law rcquit s interest for be paid. an the Funds, Lender shall not be required to pay Borrower any interest or earnings oil the Funds, Borrower and Lender can agrco 10 writing, however; that interest shall be paid on the Funds. Lender shall give to •13orrowcr, without charger an annual:aeeountirig of the:Funds as required by RESPA. ifthere is ii surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower forth excess funds in accordance with RJSfA. If there is a shortage of Funds held in escrow, as detincdunderR.i::SPA, lender shall notify Borrower as required lay RESPA, and Borrower shall pay to 1.;ender the amount necessary to make up: the shortage in accordance with Rf; SPA but >in ncr.tnore: than 12 monthly payments. if there'is a deficiency ofPunds held in escrow, as defined .tinder RESI'A, Lender shall notify 1kmower as Form 3051 1101 Borrower(s) Initials Sf 00546 required by RESPA, and Borrower shall pay to I.,ender the amount 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 refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security instrument, leasehold payments or ground rents on the Property, ifany,:and-Community Association Dues, Fees, and Assessments, if any. To the cxtcnt that these heels are 3Scroie= Items, Borrower shill pay them in the manner provided in Section 3. Borrower shall promptly,diseharge any lien which has priority over this Security instrtnnent unless Borrower (a) agrees in writing to the payment of the obligtation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is pertbrnaing such agiecni oat; (b) eontcsts the lien in good faith by or defends ag a nst enforcement of'ihe iien:in, legal proceedings which in Lcndct s opinion operate to prevent the cnfoiccinent Of the lien while those proceedings are pending; but only until such:proceedings are concluded;, or (c) seetrres from the holder of the lien an agreement satis:factoty to Lender subordinating the lien -.to this Security Instrument, if Lender nder determines that any part of the Property is subject to it lien which ari attain priority over this Security Instrument, Lender may give Borrower mortice identifyinf the Pori. ltr'ithin I O days of the date on which that notice is given. Borrower shall strtisfv the lien .ot ono 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. 5, Property Insurance. borrower shall keep the impriovemcnts now existing or hereafter erected on the Property insured against loss by lire, hazards included within the,.. term 'extended coverage,'" ancl.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 deduetible levels) and for the periods that Lender requires. What [.,ender requires pursuant to the preceding sentences can change during the tenet Of the Loan. The insurance carrier providing the insurance shall be chosen by Bonooc er subject to Lender's right to disaptrove Borrower's choice, which right shall not be exercised unreasonably. Lender May require borrower to pay, in connection with dais Loon, either (a) a one t eharge for flood none determination, certil leaden and tracking services; or (b) a one -time charge for flood zone deterrnination:and certification services and subsequent charges each time remappings or similar changes occur which reasonably Wright 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. 1 f Borrower fails to maintain any of the coverages described ahovc. Lender may obtain insur €rnce- coveraty e. at Lendc 's option and Borrower's expense, Lender is under no obligation to purchase any particular type or arno€ nt OfCoverage. Therefore, such coverage shall cover Lender, but Wright or might not protect 13onotii-er, Borrower's equity in the Property, or the contents of the Property, againstany risk, hazard or liability and might provide greater or' lesser coverage than was previously in effect. Borrower acknowledges that the cost oldie insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by 1 „ender 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 from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause. and shall name Lender as mortgagee and /or as an additional loss payee. Lender s h a ll have the right to hold the policies and renewal certificates. lfLender requires. Borrower shall promptly give to,Lender receipts of paid premiums oriel renewal notices. I f BorrOwer obtains any form of insurance coverage, not otherwise required by Lender, for dainage 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 ()floss, Borrower shall give prompt notice to the insurance carrier and Lender. ]..ender may intike proot`of loss i foot made promptly by Borrower. Unless lender and Binrrnwer otherwise agree in \veiti:ng, any insorance proceeds, whether or not the underlying insurance was required by Lenders shall be :applied to restoration or repair:of the .Property, if the restoration or repair is ccononvcally l.asible and Lender's security is not le encd.1)uring such repair and restoration period, Lender shall have the right to:hold such instance proceeds until Lender has had an opportunity to inspect such Property to ensure the work hats boon eo mpieted to I endt~i''s. sati s faction, provided that such inspection shall be undertaken promptly: Leander may disburse proceeds for the repairs and restoration;ln a single paytrient or in a series of progress payments as, the work is completed. Unless an agreement is nradr in writing orApplicablc Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borriiwer-any interest !;trr earnings on. such proceeds, Fees for public adjusters, or other th:ircl parties, retained by Borrower shall not be,paid out ofthe insurance proceeds and shall be thesolc ohligation of Botrowcr. If the restoration or repair is not economically° feasible Or Lender's security Twetild fare lessened„ the insurance proceeds shall be applied to the sums secured by this Securityy Instrtrnaent, whether or net then due. with the:excess, i paid to Borrower. Such insurance procceds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Tender 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 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 WYOMING Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT with MERS Form 306,1 1/01 Page 4of10 105, In4 Borrower(s) Initials 0054 under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6.Oceupaney.13orrower shall occupy, establish, and use the Property. as Borrower's principal residence within 60 days after the execution ofthis Security Instrument and shall continue to o eupti the Pipped) as Borrower's principal residence for at least one year after the date ofoccupailcy, 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 I:3girrewer shall not destroy, damage. or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not E orrovvcr is residing m :the Pr'oper'ty, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due Wits-condition. Unless it is determined pursuant to Section S that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration .or.dantage. If insurance or condemnation proceeds are paid in connection with damage to, or lao taking of, the Property, l3orrov ±ter drill be responsible for repairing or restoring the Property only ir 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 cornpleti„d. If the insurance ar 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 restot.ttion. 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 Appli.ca thin, Borrower shall be in default if, during the Loan application process, Borrower orally persons or entitles acting at the direction or Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate usformtttion or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, 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) Borower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and /or rights under this Security instrument (such as a proceeding in bankruptcy, probate, for eondetnnatiem or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or .regulations), or (e)Borrower has abandoned the Property, then tender may do and pay for whatever is reasonable or appropriate to protect:Lender s interest in the Property and rights under this Security Instrument, including protecting ,Ind /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 sucurcdby a lien which has priority over this Security Instrument, (h) appearing in court, and (e) paying retisunablc 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 belittling or other code violations or dangerous conditions, and have utilities turned on or *IT. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duly 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 shall 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 writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the rnortgage 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 :enverage 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 loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender WYOMING Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT with MERS Form 3051 1 /01 Page 5of10 ;es, Inc Borrower(s) Initia s l 5- X 00548 again becomes available, is obtained, and tender. requires separately designated payments toward the premiums for Mortgage lnsur tnce.1:i' Lender required Mortgage Insurance as a condition ofmaking the Loan rind Borrower was required to make separately designated payments toward the premiums for Mortgage insurance, Borrower shall pay the premiums required to maintain Mortgage i suranee in effect, onto provide a non-refundable loss resewe, anti I Lenders requirement for Mortgage Insurance ends in accordance 'with any written:agreenent between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrowers obligation to pas 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 insurers cValuate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify 'their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the.atherparty (or parties) to these agreements. These agreements may require the mortgage insurer: to make payments. using any scaurce of fun& that the Mortgage insurer may have available (which may include funds obtained from Mortgage 1ttsuraiice prerztiunis), As a result of these agreements, Lender, any purchaser of the Note any reinsurer, any othereinity., or any ai);liate daily of the foregoing, may receive (directly or.indirectly) amounts that derive from or Might be character reed as) a portion of Borrower's er's payments for Mortgage Insur nee; in exchange for sharing or mo i 1j ing, the mortgage insurer's risk, orrcxlacing losses, If such agreement pre ides that an affiliate of 1..encicr takes a share of the insurer's risk in exchange for a. share of:tl e premiums paid to the insurer, the arrangement is often termed "coml.%e 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) rl sitch agreements will not affect the rights Borrower has if any with respect to the Mortgage Insurance under the Homeowners Protection Aet of 1998 or any otherlaw. These rights may include the right to receive certain disclosures, to request and obtain cancellation pfthe Mortgage Insurance. To have the Mortgage Insurance terminated automatically, and /or to receive a refund of any Mortgage insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. lithe Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, ifthe restoration or repair is iconomicttlly feasible and Lender's seeurity is not lessened. During. such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspcet such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds Lender shall not he required to pay Borrower any interestor carvings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would he lessened, the Miscellaneous Proceeds shall he applied to the suns 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. In the event ofa total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by. this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower, In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately bel brc 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 bcrorethe partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the. Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event .ol a partial taking destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or.los5 in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the -runts 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 (.,ender to Borrower that the Opposing Party (as.deflned in the next sentence) offers to make an award to settle a claim for damages, Borrower tails to respond to Lender within 10 days alter the date the notice is given, Lender is authori :cd to collect and apply the Miscellaneous Proceeds either to restoration or repair ol'the Property or to the sums secured bytbis Security Instrument. whether or not then due. '`Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party.•against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default irony 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 lit 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 WYOMING Single Family- Fannie Mae /Freddie Mac UNIFORM INSTRUMENT with MERS Form 3051 Page 6 of 10 IDS, Inc. Borrower(s) Initials WYOMING Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT with MERS Page 7 of 10 IDS, Inc, 00549 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 1..ender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security)nstrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co- this Security Instrument but does not execute the Note (a "co- signer (a) is co- signing this Security Instrument only to mortgage. grant and .convey the co-signer's interest m the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the 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 Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and 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 may charge Borrower tires liar services pertbrmed in connection with Borrower's delimit, for the purpose ofprotecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys fees, propei°t', inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to c h a n c e a specific Yee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fi es that are expressly prohibited by this Security Instrument or by Applicable Law. lithe t,.oan is subject to a law which sets maximum loan chargers, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may .choose to make this refund by reducing the principal owed under•thc Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as' a partial prepayment w=ithout any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of such refund made by direct payment to Iorrower 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 when mailed by first class mail or when actually delivered to Borrower's notice 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 Properly 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 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 he given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located; All rights and obligations contained in this Security lnstrumcnt are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the panics to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. Iii 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 without 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 feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (e) the word "may" gives sole discretion without any obligation to take any action. Form 3051 01 Borrower(s) Initials 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 w 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 in a bond for decd, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a'fitture 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 prier written consent, !.,ender may require inlmediate;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, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After 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; (h) such other period as .Applicable Latin 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 till sums which then would be due under this Security instrument sand the Note as if rio acceleration had occurred; (b) cures:any defau!tof 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 NO incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes suclt'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 expanses in one or more of the following. forms, as selected by Lender: (a) cash; (b) money order; (c) eertitled check, bank check, treasurer's check or cashices check, provided any such cheek is drawn upon an institution whose deposits.arc insured by a federal agency, instrumentality 0r entity or (d) :1 Iectronic Funds'1 i•ansfer. ripen reinstatement by Borrower, this Security lnstrurnent 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 salernightresult in a change in the entity'(knownas the "Loan Servieer that collects Periodic Payments Clue under the Note and this Security tnstru.nient and perforrnas 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. I f there is a change o {'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 ItISPA requires in connection with a notice oftransfer ofscrvicing, l f 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 Serviecror be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from 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 craved by reason of, this Security Instrument until such Borrower or ILendcr has notified the other party (with such notice given in compliance with the requirements of Section 15) of'such alleged breach and afforded the other party 'hereto a reasonable period after the givinxg of such notice to take corrective action, tfAppl'cable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to he reasonable for purposes of tills paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration 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) "titirardous Substances are those substances defined as toxic: or ha ardoua subs"tanecs, poi Iutants, or wastes by Law and the following, substanees: gasolinc,-kerosene, other flarntnabl or toxic Iaetroleuntproduets, toxic pesticides and herbicides, volatile solvents, materials containing "asbestos or ferrnaldehyde, an'dradiottctivc muicriats; (b) 'I:nvir:r'trmtental La mans feeler al law's and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (e) Tavironmental Cleanup" any responseaction, remedial action, orremoval 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, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an EnWironmental Condition, or (e:) which, due to the presence, use, or release of a I-Iazardous Substance, creates a condition that adversely afli:cts the value ofthe Property. The prccedirig,two sentences shall not apply to the presence, use, or storage on the Property of small quantities of 11azardo:uS Substances. that are generally recognized to be WYOMING Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT with MERS Page 8 of 10 IDS, Inc. 00550 Form 305 1 Borrower(s) Initials/ 4. WYOMING Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT with MERS Page 9 of 10 IDS, Inc. Borrower(s) Initials 00551 appropriate to normal residential uses and to maintenance ofthe Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give l..ender written notice of (a) any investigation, claim. demand, lawsuit or other action by any governmental or re:guiatory agency or private party involving the Property and any 11I /ard0us Substance orEnvironmental 1 awofwhich Borrower has actual knowledge, (b) any Environmental Condition, including. but not limited to, any api ing, !coking, discharge, release or threat of release ol' any l lazardous Substance. and (c) any condition caused by the presence, use or release °fa 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 under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non existence of a default or any other defense of Borrower to acceleration and sale. If the default is not 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 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 intent 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 designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 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 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. Form 3051 1101 i 5.,; BY SIGNING BELOW, Borroweraecepts and:agrees to the terms and covenants contained in this Security instrument and in any Rider executed by Borrower and recorded with it. NOM, AN State of WI` 43r'v County of This instrument was acknowledged before me on MALISSA SCHWENDIMAN. (Scat, il'any) Witness (Seal) Borrower WYOMING Single Family Fannie MaelFreddle Mac UNIFORM INSTRUMENT with HERS Page 10 of 10 IDS, Inc. 00552 "A) by RUSSELL SCHWENDIMAN and (Signature of notarial ()Meer) Title (and Rank) My coin nisston expires: Form 3051 1/01 SECOND HOME RIDER THIS SECOND HOME RIDER is made this 5th day of December, 2011, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument of the same date given by the undersigned (the "Borrower" whether there are one or more persons undersigned) to secure Borrower's Note to BANK OF IDAHO, AN IDAHO CORPORATION (the "Lender of the same date and covering the Property described in the Security Instrument (the "Property which is located at: 290 MARIE LANE Alpine, WYOMING 83128 (Property Address) In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree that Sections 6 and 8 of the Security Instrument are deleted and are replaced by the following: 6. Occupancy. Borrower shall occupy, and shall only use, the Property as Borrower's second home. Borrower shall keep the Property available for Borrower's exclusive use and enjoyment at all times, and shall not subject the Property to any timesharing or other shared ownership arrangement or to any rental pool or agreement that requires Borrower either to rent the Property or give a management firm or any other person any control over the occupancy or use of the Property. 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 information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's second home. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Second Home Rider. (Seal) RUSSELL SCHWENDIMAN Borrower MULTISTATE SECOND HOME RIDER Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT IDS. Inc. Page 1 of 1 Arf MALISSA SCHWENDIMAN Loan Number: 111154 MIN: 100223100001111548 Borrowe Form 3890 1/01 00553 MULTISTATE PUD RIDER Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT Page 1 of 3 Loan Number: 111154 MIN: 100223100001111548 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 5th day of December, 2011, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument of the same date, given by the undersigned (the "Borrower to secure Borrower's Note to BANK OF IDAHO, AN IDAHO CORPORATION (the "Lender of the same date and covering the Property described in the Security Instrument and located at: 290 MARIE LANE Alpine, WYOMING 83128 (Property Address) The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in Covenants, Conditions and Restrictions of Record (the "Declaration The Property is a part of a planned unit development known as Trail Creek Subdivision (Name of Planned Unit Development) (the "PUD The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association and the uses, benefits and proceeds of Borrower' s interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by -laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. Initia Form 31501/01 00554 B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. MULTISTATE PUD RIDER Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT Page 2 of 3 Form 31501/01 00555 F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this PUD Rider. (Seal) Seal) RUSS LL SG1WENDIMAN Borrower MALISSA SCAWENDIMAN J =�o er MULTISTATE PUD RIDER Single Family Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 3 of 3 Form 3150//01 00556