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Home My WebLink About885911WHEN RECORDED MAIL TO: 885911 INDYMAC BANK KS.B, INC 155 NORTH LAKE AVENUE~ SIXTH FLOOR PASADENA CA 91101 Loan #: CTP-1826508 Orderg: A5006 Parcel I.D.#: 35192440510100 RECEIVED LINOOLN ¢,OUIqTY CLERK CONSTRUCTION AND PERMANENT MORTGAGE . WORDS USED OFTEN IN THIS DOCUMENT (A) "Security Instrument." This document which is dated November 25, 2002, will be called the "Security Instrument." ~ (B) "Borrower". TERRANCE Q. NAEF AND JENNIFER L. NAF. F sometimes will be called "Borrower" and sometimes simply :'I" or "me." (C) "Lender". INDYMACBANK F.S.B,., , will be called "Lender." Lender is a CORPORATION , which exists under the laws of WYOMING Lender's address is 155 NORTH LAKE AVENUE, SIXTH FLOOR, PASADENA CA 91101 (D) "Note." The note signed by Borrower and dated November 25, 2002 , will be called the "Note." The Note shows that I owe Lender ONE HUNDRED SEVENTY- SIX THOUSAND Dollars (U.S. $176,000.00 ) plus interest. I have promised to pay this debt in monthly payments and to pay the debt in full by the "Maturity Date" referred to in the Construction Rider.attached hereto or as subsequently certified in a supplement to this Mortgage which is execUted by Lender and recorded in the Official Records of the County where the property described below is located. (E) "Property." The property that is described below in the section titled "Description of the Property," will be called the "Property." ~ (F) "Sums Secured." The amounts described beloTM in the section titled "Borrower's Transfer to Lender of Rights in the Property" sometimes will be called the "Sums Secured." BORROWER'S TRANSFER TO LENDER OF RIGHTS IN THE PROPERTY I mortgage, grant, convey and warrant the Property to Lender subject to the terms of this Security Instrument. This means that, by signing this Security Instrument, I am giving Lender those rights that are stated in this Security Instrument and also those rights that the law gives to lenders who hold mortgages on real property. I am giving Lender these rights to protect Lender from possible losses that might result if I fail to: (A) Pay all the amounts that I owe Lender as stated in the Note; ~ 1 INMC#912WY 8115195 Fixed Mortgage (B) Pay, with interest, any amounts that Lender spends under Paragraphs 2 and 7 of this Security Instrument to protect the value of the Property and Lender's rights in the Property; and (C) Keep all of my other promises and agreements under this Security Instrument. DESCRIPTION OF THE PROPERTY : I give Lender rights in the Property described in (A) through (G) below: (A) The property which is located at 188 Pine Drive, Thay~e, Wyoming. This Property is in LINCOLN County. It has the following legal description: REFER TO EXHIBIT 'A' LEGAL DESCRIPTION MADE A PART HEREOF BY THIS REFERENCE. ATTACHED HERETO AND (B) All buildings and other improvements that are located on the Property described in subparagraph (A) of this section; (C) All rights in other property that I have as owner of the Property described in subparagraph (A) of this section. These rights are known as "easements and appurtenances attached to the Property"; (D) All rights that I have in the land which lies in streets or roads in front of, or next to, the Property described in subparagraph (A) of this section; (E) All fixtures that are now or in the future will be on the Property described in subparagraphs (A) and (B) of this section; (F) All of the rights and property described in subparagraphs (B) through (E) of this section that I acquire in the future: and (G) All replacements of or additions to the Property described in subparagraphs (B) through (F) of this section. BORROWER'S RIGHTS TO MORTGAGE THE PROPERTY AND BORROWER'S OBLIGATION TO DEFEND OWNERSHIP OF THE PROPERTY I promise that: (A) I lawfully .own the Property; (B) I have the right to mortgage, grant and convey the Property to Lender; and (C) there are no outstanding claims or charges against the Property, except for those which are of public record. I give a general warranty of title to Lender. This means that I will be fully responsible for any losses which Lender suffers because someone other than myself has some of the rights in the Property which I promise that I have. I promise that I will defend my ownership of the Property against any claims of such rights. PLAIN LANGUAGE SECURITY INSTRUMENT This Security Instrument contains promises and agreements that are used in real property security instruments all over the country. It also contains other promises and agreements that vary, to a limited extent, in different pans of the country. My promises and agreements are stated in "plain language." COVENANTS 2. INMC#912~ 8/15/95 Fixed Mortgage I promise and I agree with Lender as follows: 1. BORROWER'S PROMISE TO PAY I will pay to Lender on time principal and interest due under the Note and any prepayment late charges due under the Note. I also promise to perform all of my obligations under the ConstrUction Loan Agreement. 2. MONTItLY PAYMENTS FOR TAXES AND INSURANCE (A) Borrower's Obligations I will pay to Lender all amounts necessary to pay for taxes, assessments, water frontage charges and other similar charges, sewer rents, leasehold payments or ground rents (if any), hazard or property insurance covering the Property, and flood insurance (if any). If Lender required mortgage insurance as a condition of making thc loan that I promise to pay' under the Note, (i) I also will pay to Lender all amounts necessary to pay for mortgage insurance, and (ii) if, under Paragraph 8 below, instead of paying for mortgage insurance I am required to pay Lender an amount equal to the cost of mortgage insurance. I will pay this amount to Lender. I will pay all of these amounts to Lender unless Lender tells me, in writing, that I do not have to do so, or unless the law requires otherwise. I will make these payments on thc same day that my monthly payments of principal and interest are due under the Note. My payments under this Paragraph 2 will be for the items listed in (i) through (vi) below, which are called "Escrow Items": (i) The estimated yearly taxes, assessments, water frontage charges and other similar charges, and sewer rents on the Property which under the law may be superior to this Security Instrument as a lien on the Property. Any claim, demand or charge that is made against property because an obligation has not been fulfilled is known as a "lien"; (ii) The estimated yearly leasehold payments or ground rents on the Property (if any); (iii) The estimated yearly premium for hazard or property insurance covering the Property; (iv) The estimated yearly premium for flood insurance covering the Property (if any); (v) The estimated yearly premium for mortgage insurance (if any); and (vi) The estimated yearly amount I may be required to pay Lender under Paragraph 8 below instead of the estimated yearly premium for mortgage insurance (if any). Lender will estimate from time'to time the amount I will have to pay for Escrow Items by using existing assessments and bills and reasonable estimates of the amount I will have to pay .for Escrow Items in the future, unless the law requires Lender to use another method for determining the amount I am to pay. The amounts that I pay to Lender for Escrow Items under this Paragraph 2 will be called the "Funds". The Funds are pledged as additional security for all Sums Secured. The law puts limits on the total amount of Funds Lender can at any time collect and hold. This total amount cannot be more than the maximum amount a lender for a "federally related mortgage loan" could require me to place in an "escrow account" under the federal law called the "Real Estate Settlement Procedures Act of 1974," as that law may be amended from time to time. If there is another law that imposes a lower limit on the total amount of Funds Lender can collect and hold, Lender will be limited to the lower amount. (B) Lender's Obligations INMC#912WY 8/I 5/95 Fixed Mortgage Lender will keep the Funds in a savings or banking institution which has its deposits insured by a federal agency, instrumentality, or entity, or in any Federal Home Loan Bank. If Lender is such a savings or banking institution, Lender may hold the Funds. Except as described in this Paragraph 2, Lender will use the Funds to pay the Escrow Items. Lender will give to me, without charge, an annual accounting of the Funds. That accounting must show all additions to and deductions from the Funds and the reason for each deduction. Lender may not charge me for holding or keeping the Funds, for using the Funds to pay Escrow Items, for making a yearly analysis of my payment of Funds or for receiving, verifying and totaling assessments and bills. However, Lender may charge me for these services if Lender pays me interest on the Funds and if the law permits Lender to make such a charge. Lender also may require me to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with my loan, unless the law does not permit Lender to make such a charge. Lender will not be required to pay me any interest or earnings on the' Funds unless either (i) Lender and I agree in writing, at the time I sign this Security Instrument, that Lender will pay interest on the Funds; or (ii) the law requires Lender to pay interest on the Funds. (C) Adjustments to the Funds Under the law, there is a limit on the amount of Funds Lender may hold. If the amount of Funds held by Lender exceeds this limit, then the law requires Lender to account to me in a special manner for the excess amount of Funds. There will be an excess amount if, at any time, the amount of Funds which Lender is holding or keeping is greater than the amount of Funds Lender is allowed to hold under the law. If, at any time, Lender has not received enough Funds to make the payments of Escrow Items when the payments are due, Lender may tell me in writing that an additional amount is necessary. I will pay to Lender whatever additional amount is necessary to pay the Escrow Items in full. Lender will determine the number of monthly payments ! have in which to pay that additional amount, but the number of payments will not be more than twelve. When I have paid all of the Sums Secured, Lender will promptly refund to me any Funds that are then being held by Lender. If, under Paragraph 21 below, Lender either acquires or sells the Property, then before the acquisition or sale, Lender will use any Funds which Lender is holding at the time of the acquisition or sale to reduce the Sums Secured. 3. APPLICATION OF BORROWER'S PAYMENTS Unless the law requires otherwise, Lender will apply each of my payments under the Note and under Paragraphs 1 and 2 above in the following order and for the following purposes: First, to pay any prepayment charges due under the Note; Next, to pay the amounts due to Lender under Paragraph 2 above; Next, to pay interest due; Next, to pay principal due; and Last, to pay any late charges due under the Note. 4. BORROWER'S OBLIGATION TO PAY CHARGES, ASSESSMENTS AND CLAIMS '-I ,;vill pay ail taxes, assessments, water frontage charges and other similar charges, sewer rents, and any other charges and fines that may be imposed on the Property and that may be superior to this Security Instrument. I will also make payments due under my lease if I am a tenant on the Property and I will pay ground rents (if anY) due on the Property. I will do this either by making the payments to Lender that are described in Paragraph 2 above or, if I am not required to make 4 INMc#912wY 8/15/95 Fix~.d Mortgage payments under Paragraph 2, by making the payments on time to the person owed them. ( In this Security Instrument, the word "person" means any person, organization, governmental authority or other party.) If I make direct payments, then promptly after making any of those payments I will give Lender a receipt which shows that I have done so. If I make payment to Lender under Paragraph 2, I will give Lender all notices or bills that I receive for the amounts due under this Paragraph 4. I will promptly pay or satisfy all liens against the Property that may be superior to this Security Instrument. However, this Security Instrument does not require me to satisfy a superior lien if: (A) I agree, in writing, to pay the obligation which gave rise to the superior lien and Lender approves the way in which I agree to pay that obligation; or (B) in good faith, I argue or defend against the superior lien in a lawsUit so that, during the lawsuit, the superior lien may not be enforced; or (C) I secure from the holder of that other lien an agreement, approved in writing by Lender, that the lien of this Security Instrument is superior to the lien held by that person. If Lender determines that any part of the Property is subject to a superior lien, Lender may give Borrower a notice identifying the superior lien. Borrower shall pay or satisfy the superior lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. BORROWER'S OBLIGATION TO MAINTAIN HAZARD INSURANCE OR PROPERTY INSURANCE I will obtain hazard or property insurance to cover all buildings and other improvements that now are or in the future will be located on the Property. The insurance must cover loss or damage caused by fire, hazards normally covered by "extended coverage" hazard insurance policies and other hazards for which Lender requires coverage, including floods and flooding. The insurance must be in the amounts and for the periods of time required by Lender. I may choose the insurance company, but my choice is subject to Lender's approval. Lender may not refuse to approve my choice unless the refusal is reasonable. If I do not maintain the insurance coverage described above, Lender may obtain insurance coverage to protect Lender's rights in the Property in accordance with Paragraph 7 below. All of the insurance policies and renewals of those policies must include what is known as a "standard mortgage clause" to protect Lender. The form of all policies and renewals must be acceptable to Lender. Lender will have the right to hold the policies and renewals. If Lender requires, I will promptly give Lender all receipts of paid premiums and renewal notices that I receive. If there is a loss or damage to the Property, I will promptly notify the insurance company and Lender. If I do not promptly prove to the insurance company that the loss or damage occurred, then Lender may do so. The amount paid by the insurance company is called "proceeds." The proceeds will be used to repair or to restore the damaged Property-unless: (A) it is not economically feasible to make the repairs or restoration; or (B) the use of the proceeds for that purpose would lessen the protection given to Lender by this Security Instrument; or (C) Lender and I have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically feasible or if it would lessen Lender's protection under this Security Instrument, then the proceeds will be used to-reduce the amount that I owe to Lender under the Note and under this Security Instrument. If any of the proceeds remain after the amount that I owe to Lender has been paid in full, the remaining proceeds will be paid to me. INMC#912WY 8/1519 5 Fixed Mortgage If I abandon the Property, or if I do not answer, within 30 days, a notice from Lender stating that the insurance company has offered to settle a claim, Lender may collect the proceeds. Lender may use the proceeds to repair or restore the Property or to pay the Sums Secured. The 30-day period will begin when the notice is given. If any proceeds are used to reduce the amount of principal which I owe to Lender under the Note, that use will not delay the due date or change the amount of any of my monthly payments under the Note and under Paragraphs 1 and 2 above. However, Lender and I may agree in writing to those delays or changes. If Lender acquires the Property under Paragraph 21 below, all of my rights in the insurance policies will belong to Lender. Also all of my rights in any proceeds which are paid because of damage that occurred before the Property is acquired by Lender or sold will belong to Lender. However, Lender's rights in those proceeds will not be greater than' the Sums Secured immediately before the Property is acquired by Lender or sold. 6. BORROWER'S OBLIGATIONS TO OCCUPY THE PROPERTY, TO MAINTAIN AND PROTECT THE PROPERTY, AND TO FULFILL ANY LEASE OBLIGATIONS; BORROWER'S LOAN APPLICATION (A) Borrower's Obligations to Occupy the Property I will occupy the Property and use the Property as my principal residence within sixty days after the "Permanent Loan Commencement Date" referred to in the Construction Rider attached hereto. I will continue to occupy the Property and to use the Property as my principal residence for at least one year. The one year period will begin when I first occupy the Property. However, I will not have to occupy the Property and use the Property as my principal residence within the time frames set forth above if Lender agrees in writing that I do not have to do so. Lender may not refuse to agree unless the refusal is reasonable. I also will not have to occupy the Property and use the Property as my principal residence within the time frames set forth above if extenuating circumstances exist which are beyond my control. (B) Borrower's Obligations to Maintain and Protect the Property I will keep the Property in good repair. I will not destroy, damage or harm the Property, and I will not allow the Property to .deteriorate. I will be "in default" under this Security Instrument if I fail to keep any promise or agreement made in this Security Instrument. I also will be in default under this Security Instrument if any civil or criminal action or proceeding for "forfeiture" (that is, a legal action or proceeding to require the Property, or any part of the Property, to be given up) is begun and Lender determines, in good faith, ~hat this action or proceeding could result in a court ruling (i) that would require forfeiture of the Property or (ii) that would materially impair the lien of this Security Instrument or Lender's rights in the Property. I may correct the default by obtaining a court ruling that dismisses the legal action or proceeding, if Lender determines~ in good faith, that this court ruling prevents forfeiture of my interests in this Property and also prevents any material impairment of (i) the lien created by this Security Instrument or (ii) Lender's rights in the Property. If I correct the default, I will have the right to have enforcement of this Security Instrument discontinued, as provided in Paragraph 18 below, even if Lender has required immediate payment in full. (C) Borrower's Obligations to Fulfill Any Lease Obligations 6 RqMC#912wY 8/15/95 Fixed Mortgage If I do not own but am a tenant on the Property, I will fulfill all my obligations under my lease. I also agree that, if I acqUire the fee title to the Property, my lease interest and the fee title will not merge unless Lender agrees to the merger in writing. (D) Borrower's Loan Application If, during the application Process for the loan that I promise to pay under the Note, I made false or inaccurate statements to Lender about information important to Lender in determining my eligibility for the loan, Lender will treat my actions as a default under this Security Instrument. False or inaccurate statements about information important to Lender would include a misrepresentation of my intentions to occupy the Property as a principal residence. This is just one example of a false or inaccurate statement of important information. Also, if during the loan application process I failed to provide Lender with information important to Lender in determining my eligibility for the loan, Lender will treat this as a default under this Security Instrument. 7. LENDER'S RIGHT TO PROTECT ITS RIGHTS IN THE PROPERTY If: (A) I do not keep my promises and agreements made in this Security Instrument, or (B) someone, including me, begins a legal proceeding that may significantly affect Lender's rights in the Property (such as a legal proceeding in bankruptcy, in probate, for condemnation or forfeiture, or to enforce laws or regulations), Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include appearing in court, paying reasonable attorney's fees and entering on the Property to make repairs. Although Lender may take action under this Paragraph 7, Lender does not have to do so. I will pay to Lender any amounts, with interest, which Lender spends under this Paragraph 7. I will pay those amounts to Lender when Lender sends me a notice requesting that I do so. I will also pay interest on those amounts at the Note rate. 'interest on each amount will begin on the date that the amount is spent by Lender. However, Lender and I may agree in writing to terms of payment that are different from those in this paragraph. This Security Instrument will protect Lender in case I do not keep this promise to pay those amounts with interest. 8. MORTGAGE INSURANCE If Lender required mortgage insurance as a condition of making the loan that I promise to pay under the Note, I will pay the' premiums for the mortgage insurance. If, for any reason, the mortgage insurance coverage lapses or ceases to be in effect, I will pay the premiums for substantially equivalent mortgage insurance coverage. However, the cost of this mortgage insurance coverage must be substantially equivalent to the cost to me of the previous mortgage insurance coverage, and the alternate mortgage insurer must be approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Lender will establish a "loss reserve" as a substitute for the mortgage insurance coverage. I will pay to Lender each month an amount equal to one-twelfth of the yearly mortgage insurance premium (as of the time the coverage lapsed or ceased to be in effect). Lender will retain these payments, and will use these payments to pay for losses that the mortgage insurance would have covered, and such - payments shall be irrevocable and non-refundable. Lender may choose to no longer require loss reserve payments, if mortgage insurance coverage again becomes available and is obtained. The mortgage insurance coverage must be in the amount and for the period of time required by Lender. The Lender must approve the insurance company providing the coverage. 7 INMC#912wY 8/15/95 Fixed Mortgage I will pay the mortgage insurance premiums, or the loss reserve payments, until the requirement for mortgage insurance ends according to my written agreement with Lender or according to law. Lender may require me to pay the premiums, or the loss reserve payments, in the manner described in Paragraph 2 above. : 9. LENDER'S RIGHT TO INSPECT THE PROPERTY Lender, and others authorized by Lender, may enter on and inspect the Property. They must do so in a reasonable manner and at reasonable times. Before or at the time an inspection is made, Lender must give me notice stating a reasonable purpose for the inspection. 10. AGREEMENTS ABOUT CONDEMNATION OF THE PROPERTY A taking of property by any governmental authority by eminent domain is known as "condemnation." I give to Lender my right: (A) to proceeds of all awards or claims for damages resulting from condemnation or other governmental taking of the Property;' and (B) to proceeds from a sale of the Property that is made to avoid condemnation. All of those proceeds will be paid to Lender. If all of the Property is taken, the proceeds will be used to reduce the Sums Secured. If any of the proceeds remain after the amount that I owe to Lender has been paid in full, the remaining proceeds will be paid to me. Unless Lender and I agree otherwise in writing, if only a part of the Property is taken, and the fair market value of the Property immediately before the taking either is equal to, or greater than, the amount of the Sums Secured immediately before the taking, the amount that I owe to Lender will be reduced only by the amount of proceeds multiplied by a fraction. That fraction is as follows: (A) the total amount of the Sums Secured immediately before the taking, divided by (B) the fair market value of the Property immediately before the taking. The remainder of the proceeds will be paid to me. Unless Lender and I agree otherwise in writing or unless the law requires otherwise, if only a part of the Pr6perty is taken, and the fair market value of the Property immediately before the taking is less than the amount of the Sums Secured immediately before the taking, the proceeds will be used to reduce the Sums Secured. If I abandon the Property, or if I do not answer, within 30 days, a notice from Lender stating that a governmental authority has offered to make a payment or to settle a claim for damages, Lender has the authority to collect the proceeds. Lender may then use the proceeds to repair or to restore the Property or to reduce the Sums Secured. The 30-day period will begin when the notice is given. ' If any proceeds are used to reduce the amount of principal which I owe to. Lender under the Note, that use will not delay the due date or change the amount of any of my monthly payments under the Note and under Paragraphs 1 and 2 above. However, Lender and I may agree in writing to those delays or changes. 11. CONTINUATION OF BOR_ROWER'S OBLIGATIONS AND OF LENDER'S RIGHTS (A) Borrower's Obligations Lender may allow a person who takes over my rights and obligations to delay or to change the amount of the monthly payments of principal and interest due under the Note or under this INMC#912WY 8/15/95 Fixed Mortgagc Security Instrument. Even if Lender does this, however, that person and I will both still be fully obligated under the Note and under this Security Instrument. Lender may allow those delays or changes for a person who takes over my rights and obligations, even if Lender is requested not to do so. Lender will not be required to bring a lawsuit against such a person for not fulfilling obligations under the Note:or under this Security Instrument, even if Lender is requested to do so. (B) Lender's Rights Even if Lender does not exercise or enforce any right of Lender under this Security Instrument or under the law, Lender will still have all of those rights and may exercise and enforce them in the future. Even if Lender obtains insurance, pays taxes, or pays other claims, charges or liens against the Property, Lender will have the right under Paragraph 21 below to demand that I make immediate payment in full of the amount that I owe to Lender under the Note and under this Security Instrument. 12. OBLIGATIONS OF BORROWER AND OF PERSONS TAKING OVER BORROWER'S RIGHTS OR OBLIGATIONS Any person who takes over my rights or obligations under this Security Instrument will have all of my rights and will be obligated to keep all of my promises and agreements made in this Security Instrument. Similarly, any person who takes over Lender's rights or obligations under this Security Instrument will have all of Lender's rights and will be obligated to keep all of Lender's agreements made in this Security Instrument. If more than one person signs this Security Instrument as Borrower, each of us is fully obligated to keep all of Borrower's promises and obligations contained in this Security Instrument. Lender may enforce Lender's rights under this Security Instrument against each of us individually or against all of us together. This means that any one of Us may be required to pay all of the Sums Secured. However, if one of us does not sign the Note: (A) that person is signing this Security Instrument only to give that person's rights in the Property to Lender under the terms of this Security Instrument; and (B) that person is not personally obligated to pay the Sums Secured; and (C) that person agrees that Lender may agree with the other Borrowers to delay enforcing any of Lender's rights or to modify or make any accommodations with regard to the terms of this Security Instrument or the Note without that person's consent. 13. LOAN CHARGES If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed permitted limits: (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 the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. NOTICES REQUIRED UNDER THIS SECURITY INSTRUMENT Any notice that must be given to me under this Security Instnanent will be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice will be addressed to me at the address stated in the section above titled "Description of the Property." A notice will be given to me at a different address if I give Lender a notice of my 9 INML~912WY 8/15/95 Fixed Mortgage different address. Any notice that must be given to Lender under this Security Instrument will be given by mailing it to Lender's address stated in subparagraph (C) of the section above titled "Words Used Often In This Document." A notice will be mailed to Lender at a different address if Lender gives me a notice of the different address.. A notice required by this Security Instrument is given when it is mailed or when it is delivered according to the requirements of this Paragraph 14 or of applicable law. 15. LAW THAT GOVERNS THIS SECURITY INSTRUMENT This Security Instrument is governed by federal law and the law that applies in the place where the Property is located. If any term of this Security Instrument or of the Note conflicts with the law, all other terms of this Security Instrument and of the Note will still remain in effect if they can be given effect without the conflicting term. This means that any terms of this Security Instrument and of the Note which conflict with the law can be separated from the remaining terms, and the remaining terms will still be enforced. 16. BORROWER'S COPY I will be given one conformed copy of the Note and of this Security Instrument. 17. AGREEMENTS ABOUT LENDER'S RIGHTS IF THE PROPERTY IS SOLD OR TRANSFERRED Lender may require immediate payment in full of all Sums Secured by this Security Instrument if all or any part of the Property, or if any right in the Property, is sold or transferred without Lender's prior written permission. Lender may also require immediate payment in full if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person. However, Lender shall not require immediate payment in full if this is prohibited by federal law on the date of this Security Instrument. If Lender requires immediate payment in full under this Paragraph 17, Lender will give me a notice which states this requirement. The notice will give me at least 30 days to make the required payment. The 30-day period will begin on the date the notice is mailed or delivered. If I do not make the required payment during that period, Lender may act to enforce its rights under this Security Instrument without giving me any further notice or demand for payment. 18. BORROWER'S RIGHTS TO HAVE LENDER'S ENFORCEMENT OF THIS SECURITY INTEREST DISCONTINUED Even if Lender has required immediate payment in full, I may have the right to have enforcement of this Security Instrument discontinued. I will have this fight at any time before sale of the Property under any power of sale granted by this Security Instrument or at any time before a judgment has been entered enforcing this Security Instrument if I meet the following conditions: (A) I pay to Lender the full amount that then would be due under this Security Instrument and the Note as if immediate payment in full had never been required; and (B) I correct my failure to keep any of my other promises or agreements made in this Security Instrument; and (C) I pay all of Lender's reasonable expenses in enforcing this Security Instrument including, for ekample, reasonable attorneys' fees; and (D) I do whatever Lender reasonably requires to assure that Lender's rights in the Property, Lender's rights under this Security Instrument, and my obligations under the Note and under this Security Instrument continue unchanged. INMC#912WY 8/15/95 Fixed Mmlgage If I fulfill all of the conditions in this Paragraph 18, then the Note and this Security Instrument will remain in full effect as if immediate payment in full had never been required. However, I will not have the right to have Lender's enforcement of this Security Instrument discontinued if Lender has required immediate payment in full under Paragraph 17 above. 19. NOTE HOLDER'S RIGHT TO SELL THE NOTE OR AN INTEREST IN THE NOTE; BORROWER'S RIGHT TO NOTICE OF CHANGE OF LOAN SERVICER The Note, or an interest in the Note, together with this Security Instrument, may be sold one or more times. I may not receive any prior notice of these sales. The entity that collects my monthly payments due under the Note and this Security Instrument is called the "Loan Servicer." There may be a change of the Loan Servicer as a result of the sale of the Note; there also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. The law requires that I be given written notice of any change of the 'Loan .Servicer. The written notice must be given in the manner required under Paragraph 14 above and under applicable law. The notice will state the name and address of the new Loan Servicer, and also tell me the address to which I should make my payments. The notice also will contain any other information required by the law. 20. CONTINUATION OF BORROWER'S OBLIGATIONS TO MAINTAIN AND PROTECT THE PROPERTY The federal laws and the laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection are called "Environmental Laws." I will not do anything affecting the Property that violates Environmental Laws, and I will not allow anyone else to do so. Environmental Laws classify certain substances as toxic or hazardous. There are other substances that are considered hazardous for purposes 'of this Paragraph 20. These are gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. The substances defined as toxic or hazardous by Environmental Laws and the substances considered hazardous for purposes of this Paragraph 20 are called "Hazardous Substances." I will not permit Hazardous Substances to be present on the Property. I will not use or store Hazardous Substances on the Property, and I will not allow anyone else to do so. I also will not dispose of Hazardous Substances on the Property, or release any Hazardous Substance on the Property, and I will not allow anyone else to do so. However, I may permit the presence on the Property of small quantities of Hazardous Substances that are generally recognized as appropriate for normal residential use and maintenance of the Property, and I may use or store these small quantities on the Property. In addition, unless the law requires removal or other action, the buildings, the improvements and the fixtures on the Property are permitted to contain asbestos and asbestos-containing materials if the asbestos and asbestos-containing materials are undisturbed and "non-friable" (that is, not easily crumbled by hand pressure). If I know of any investigation, claim, demand, lawsuit or other action by the government or by a - private party involving the Property and any Hazardous Substance or Environmental Laws, I will promptly notify the Lender in writing. If the government notifies me (or I otherwise learn) that it is necessary to remove a Hazardous Substance affecting the Property or to take other remedial actions, I will promptly take all necessary remedial acitons as required by Environmental Laws. 1 1 INMC#912WY 8/15/95 Fixed Mortgage 21. LENDER'S RIGHTS IF BORROWER FAILS TO KEEP PROMISES AND AGREEMENTS Except as provided in Paragraph 17 above, if all of the conditions stated in subparagraphs (A), (B) and (C) of this Paragraph 21 are met, Lender may require that I pay immediately the entire amount then remaining unpaid under the Note an under this Security Instrument. Lender may do this without making any further demand for payment. This requirement is called "immediate payment in full." If Lender requires immediate payment in full, Lender, at its election, may foreclose this Security Instrument, either by (A) advertisement and sale of the Property as provided in the Wyoming Statutes, as amended from time to time (the power of sale authorized by the Wyoming Statutes is hereby expressly granted to Lender by me) or (B) bringing a lawsuit to foreclose and take away all my remaining fights in the Property and having the Property sold. Under either of these methods, Lender or another person may acquire the Property. The right of'Lender .to take away all of my rema!ning fights in the Property and to have the Property sold, whether by advertisement and sale or by bringing a lawsuit, is known as "foreclosure and sale!'. In any proceeding for foreclosure and sale of the Property, Lender will have the right to collect all costs and disbursements and additional allowances allowed by law and will have the right to add all reasonable attorneys' fees to the amount I owe Lender, which fees shall become part of the Sums Secured. If Lender elects to foreclose and sell the Property by'exercising the power of sale that I have granted to Lender in this Paragraph 21, Lender will give written notice of its intent to foreclose this Security Instrument to me and, if I am not possessing or occupying the Property, to the person who is in possession of the Property, in the manner allowed by law. The notice of intent to foreclose will be given to me, by certified mail, return receipt requested, in the manner provided by Paragraph 14. After giving me notice of its intent to foreclose, Lender will publish notice of the sale of the Property for four (4) consecutive weeks, at least once in each week, in a newspaper printed or of general circulation in the county where the Property is located. After publishing the notice of sale, the Property :.will be sold by the sheriff or deputy sheriff of the county where the Property is located at the time and place and in the manner-required by applicable law and published in the notice of sale. Lender may require immediate payment in full under this Paragraph 21 only if all of the following conditions are met: (A) I fail to keep any promise or agreement made in this Security Instrument, including the promises to pay when due the Sums Secured. (B) Lender sends to me, in the manner described in Paragraph 14 above, a notice that states: (i) The promise or agreement that I failed to keep; (ii) The action that I must take to correct that default; (iii) A date by which I must correct the default. That date must be least 30 days from the date on which the notice is given; (iv) That if I do not correct the default by the date stated in the notice, Lender may require immediate payment in full, and Lender or another person may acquire the Property by means of foreclosure and sale; - (v) That if I meet the conditions stated in Paragraph 18 above, I will have the right to have Lender's enforcement of this Security Instrument discontinued and to have the Note and this Security Instrument remain fully effective as if immediate payment in full had never been required; and 1 2 INMC#912wY 8/15/95 Fixed Mortgage (vi) That I have the right ~in any lawsuit for foreclosure and sale to argue that I did keep my promises and agreements under the Note and under this Security Instrument, and to present any other defenses that I may have. (C) I do not correct the default stated in the notice from Lender by the date stated in that notice. 22. LENDER'S OBLIGATION TO DISCHARGE THIS SECURITY INSTRUMENT When Lender has been paid all amounts due under the Note and under this Security Instrument, Lender will discharge this Security Instrument by delivering a certificate stating that this Security Instrument has been satisfied. I will pay all costs of recording the discharge in the proper official records. I agree to pay a fee for the discharge of this Security Instrument, if Lender so requires. Lender may require that I pay such a fee, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted by applicable law. 23. RELEASE OF HOMESTEAD To the extent applicable to me, I hereby release and waive all rights under and by virtue of the homestead exemption laws of the State of Wyoming. 24. RIDERS TO THIS SECURITY INSTRUMENT If one or more riders are signed by Borrower and recorded together with this Security Instrument, the promises and agreements of each rider are incorporated as a part of this Security Instrument [Check applicable box(es)] [ ] Adjustable Rate Rider(s) [ ] Condominium Rider [ ] Graduated Payment Rider [ ] Planned Unit Development Rider [ ] Balloon Rider [ ] Rate Improvement Rider [ ] V.A. Rider [ ] Other(s) [specify] [ ] 1-4 Family Rider [ ] Biweekly Payment Rider [ ] Second Home Rider [ x ] Construction Rider BY SIGNING BELOW, I accept and agree to the promises and agreements contained in pages 1 through 13 of this Security Instrument and in any rider(s) signed by me and recorded with it. TERRANCE Q. NAEF /JENN~ER L. }NAEF STATE OF WYOMING ) ) SS: 13 INMC#912WY 8/15/95 Fixed Mortgage COUNTY OF ,,~~ ) The foregoing instrument was acknowledged before ~ day of 7~.~ ~~ · ,(~C/Co~./ission Expires: me.:byJ~ ~ · this Notary Public 14 INMC#912WY 8/I 5/95 Fixed Mortgage Loan # CTP-1826508 CONSTRUCTION RIDER THIS CONSTRUCTION Rider is made this 25TH DAY OF NOVEMBER, 2002 , 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 ("Borrower") to secure Borrower's Adjustable Rate Note or Fixed Rate Note (the "Note") to INDYMAC BANK, F.S. B. , a federally chartered savings bank (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 188 PINE DRIVE THAYNE, WY 83127 (Property Address) ADDITIONAL COVENANTS. In addition to the covenants made in the Security Instrument, Borrower and Lender further covenant and agree as follows: 1. CONSTRUCTION LOAN AGREEMENT. Borrower shall promptly pay and perform when due all of Borrower's obligations under that certain Construction Loan Agreement, dated the same date as the Security Instrument (the "Construction Loan Agreement") and all amendments thereto. The loan evidenced by the Note will be DDS-Kgl FORM INMC 911 (Multistate) 8-30-94 advanced to Borrower pursuant to the Construction Loan Agreement. The period of time commencing on the date hereof and ending on the last day of the month in which the "Completion Date" under the Construction Loan Agreement occurs is referred to herein as the "Construction Period." If there is no "Adjustable Rate Rider" attached hereto the first day of the first month after the Completion Date occurs is referred to herein as the "Permanent Loan Commencement Date." If there is an Adjustable Rate Rider attached hereto, the "Permanent Loan Commencement Date" shall be the date referred to in such Adjustable Rate Rider. The period of time commencing on the Permanent Loan Commencement Date and ending on the Maturity Date described below is referred to herein as the "Permanent Loan Period." The expiration of the Construction Period may be evidenced by the Lender's execution and recordation in the Official Records of the County where the PropertY is located of a supplement to the Security Instrument which includes a certification stating the Completion Date, the Permanent Loan Commencement Date, the Maturity Date and the principal balance of the loan evidenced by the Note on the Permanent Loan Commencement Date. Any subsequent holder of the Security Instrument shall be entitled to rely on such certification. 2. MATURITY DATE. The indebtedness evidenced by the Note, if not earlier paid, shall become due and payable on 3 o years after the Permanent Loan Commencement Date. That date is called the "Maturity Date." 3. INTEREST RATE DURING CONSTRUCTION PERIOD. During the Construction Period, the Note provides for an interest rate of 7.3 7 5 %. This rate may change during the Permanent Loan Period as provided in the Note or in any other Rider attached to the Security Instrument. -2- DDS-K91 FORM INMC 911 (Multistate) 8-30-94 ' 4. BRIDGE LOAN NOTE. Borrower agrees that if, as described in the Construction Loan Agreement, Borrower has obtained an additional "bridge" loan from Lender, then the Security Instrument secures, in addition to all obligations set forth therein, all obligations of Borrower under the note evidencing such bridge loan, which note is dated I~/A and is in the Original principal amount of $ l~l/J~ [state date and amount or "not applicable"] (the "Bridge Loan Note") and all other documents relating thereto, and that all references in the Security Instrument to the "Note" or the indebtedness or debt secured by the Security Instrument shall include the Bridge Loan Note as well as all other notes referred to in the Security Instrument. 5. SECURITY AGREEMENTS; FIXTURE FILING. The term "Property" as used in this Security Instrument shall also include all building materials, appliances, equipment, machinery, goods and fixtures (collectively, "personal property") now or hereafter located on or attached or affixed to the real property described herein, the cost of which was paid, in whole or in part, from the proceeds of the loan made by Lender to Borrower pursuant to the Construction Loan Agreement, and Borrower hereby grants to Lender a security interest in and to the personal property and all proceeds hereof, pursuant to the Security Instrument and the Uniform Commercial Code of the state where the real property is located, and all rights and remedies of a secured party under the Uniform Commercial Code in the event of any breach of.any covenant or agreement in the Security Instrument. Borrower shall execute and deliver such financing statements as Lender may request in order to perfect Lender's security interest in the personal property. The Security Instrument constitutes a fixture filing with respect to any and all fixtures or any goods which may now be or may hereafter become fixtures included within the term "Property." -3- DDS-K91 FORM INMC 911 (Multistate) 8-30-94 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Construction Rider. 'J~NNIFER/L. NAEF DATE D;[TE DDS-K91 (Multistate) FORM INMC 911 8-30-94 QUALITY BUILDERS & R. Fax:$07-877-5500 Nov 26 '02 19:Il P. O1 Exhibit "A" Lot 51 in Star Valley Ranch Plat 3, Lincoln County. Wyoming as described on the official plat thereof