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HomeMy WebLinkAbout887130Return To: NEW CENTURY HORTGAfiE CORPORATION 18400 YON KARNAN, SUITE 1000 IRVINE, CA 92612 ~eparedBy: NEW CENTURY MORTGAGE CORPORATION ,[Space Above Thi-~ Line For Recording Data], 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 ol! words used in Offs document are also provided in Section :16. (A) "Security Instrument" ~neans this document, which is dated January 15, 2003 together with 'all Riders to this document. (II) "Borrower" is DAN WRIGHT AND MACHELLE CHRISTINE ~RlfiflT, HUSBAND AND I4IFE, Borrower is Lhe mortgagor under this Security Instrument. (C) "Lender" is NEll CENTURY HORTfiAfiE CORPORATION Lender isa CORPORATION organized and existing under the laws of CA L I FO R N I A WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~}~-6(WY) ,ooo5) i~I 0000737399 Form 3051 1~01 483 Lender s address is 18400 VON KARHAN, SUITE 1000 IRVINE, CA 92612 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated January 15, 2003 The Note states that Borrower owes Lendcr Seventy-Three Thousand and 1101100 .Dollars (U.S. $ ' 73,000.00 ) plus interest. Borrower has pro~nised to pay this debt in regular Periodic PaymenLs and to pay file debt in full not later than February 1, 2033 (E) "Property" means the property that is described below under the heading "Transfer of Rights in file ~hoperty." (F) "Loan" memos the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under file Note, and all sums due under this Security InsUmnent, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Bom)wet. The Rfllowing Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Ram Rider [---} Condo~ninium Rider [---] Second Home Rider [-'-} Balloon Rider [--} Planned Unit iDevelop~nent Rider [--] 1-4 Fanfily Rider ~-~ VA Rider [---] Biweekly Payment Rider [~ Other¢) [specify] Prepayment Rider Arm Rider Addendum (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and ad~ninistrafive rules and orders (that have the effect of law) as well as 'all applicable final, non-appealable judicial opinions. (1) "Co.mmunity Associatiun 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. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, drali, or similar paper instrument, which is initiated through an electronic terminal, telephonic instru~nent, computer, or magnetic tape so as to order, instruct, or authorize a financial restitution to debit or credit an account. Such term includes, but .is not limited to, point-of-sale transfers, automat~ teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3, (L) "Miscellaneous Proceeds" ~neans troy compensation, settlement, award el~ danmges, or precis paid by any third party (other than insnrance proceeds paid under the coverages d~cribed in Section 5) for: (i) damage to, or destruction of, the Property; (ii) conde~nnafion or other t~ing 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. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpay~nent of, or dehult on, the Loan. (N) "Periodic Payment" means the regularly scheduled anmunt due for (i) princip'al and interest under the Note, plus (ii) any mnounts under Section 3 of this Security Instrument. (O) *'RESPA" means the Rc~fl Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation .X (24 C.F.R. iPart 3500), as they might be amended from thne to fi~ne, or any additional or successor legislation or regulation that governs the santo subject matter. As used in Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. Inilial$; ~ 0000737399 Form 3051 1/01 (P) "Successor in Interest of Bnrrower" means any party that has taken rifle to the Property, wheLher or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS liN THE PROPERTY This Security Instrument secures m Lender: (i) die repayment of the Loan, and all renewals, extensions mid modifications of the Note; mid (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower docs hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with l~>wer of sale, the following described property located in the COUNTY of LINCOLN : [T)Te of Recording l'urisdictionl lName of Recording Jurisdiction] SEE LEGAL DESCRIPTION ATTACHED HERETO AND NADE A PART HEREOF. Parcel ID Number: 12341923100075.00 529 HENNERT LANE , THAYNE ("Property Address"): which currendy has the address of [streetl lCityl , Wyoming 83127 IZip codel TOGETHER WITH all the improvements now or hereafter erected on die property, mid 'all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be coverexl by this Security Instrmnent. Afl of the foregoing is retorted to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and dial the Property is unencumbered, except tot encumbrances of record. Borrower warrants ami will defend generally die title to the Property against all claims and demands, subject to an), encumbrances ot! record. THIS SECURITY INSTRUMENT combines unilbrm covenants for nadonal usc and non-uniform covcnan[s with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree tls follows: 1. Payment o1' Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and intcrcst on, the debt evidenced by thc Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. HOwever, it' any check or oilier instrument received by Lender as ~yment~ under the Note or this -q..0000737399 Security Instrument is returned to Lende. r unpaid, Lender ma:y require that any o:r all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or 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. Payments arc deemed received by Lender when received at the location designated in the Note or at such other location as may be &signated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial paymen[s in file future, but Lender is not obligated to apply such paymenLs at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, fllen Lender need not pay interest on unapplied funds. Lender may hold such unappl:ied funds until Borrowe, r makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied ear'lJcr, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or pertbrming the covenants and agrcement.s secured by this Security fnstrument. 2. Application nf Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by .Leuder shall be applied in thc following order of priority: (a) interest due under the Note; (b) principal due under file Note; (c) amounts due under Section 3. Such paymenks shall be applied to each Periodic Payment in file order in which it bcczune due:. Any remaining mnounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce thc principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any law charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Pay[nent is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic PaymenB, such excess may be applied to any late charges due. Volunlary prepayments shall he applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principai due under file Note shall not extend or postpone thc duc date, or chmlge file mnount, of thc Periodic Paymeuts. 3. Fuuds for Escrow Iten]s, Borrower shall pay to Lender on the day Periodic PaymenLs are duc under the Note, until the Note is paid :in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and ()filer items which can attain priority over this Security fustrument as a lien or encumbrance on the Property; (b) l~eho]d payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance prcnfiums, if any, or any stuns payable by Borrower to Lender in lieu of file payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Itmns." At origination or at any time during the term of the Loan, Lender may require that Cmmnunity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, m~d such dues, fees and assessments shail be an Escrow Item. Borrower shall promptly furnish to Lender all notices of arlloUnL5 to be paid under this Section. Borrower shall pay Leuder the Funds for Escrow Items unless Lender waives Borrower's obligation to pay thc Funds l~r any or all Escrow Items. Lcnder may waive Bt)rrower's obligation to pay to Lender Funds for any or all Escrow Items at any fi[nc. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of t~t~: (~, ~/0000737399 (~,~-6(W¥) (0005) Page 4o~' ,5 C~'1/1 ~:6(,J Form 3051 1101 . 186 Funds hms been waived by Lender and, it' Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender [nay require. Borrower's obligation to make such payments mid to provide receipts shall for 'all purposes be deemed to be a covenant and agreement coumined in this Security Instrument, as the phrase "covenant aud agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant U') a waiver, and Borrower fails to pay the amount due for an :Escrow Item, Lender may exercise its rights under S~ction 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to L~ndcr any such aniount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Fuuds, and in such amounts, that arc then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient m permit Lender to apply the Funds at tile time specified under RESPA, and (b) not to exceed the maximum aanount a lender can require under iRESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in auy Federal Home Loan Bank. Lender shall apply the Funds to pay thc Escrow Items no late:r than thc time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender m make such a charge. Unless an agreemen! is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. iLender shall give to Borrower, without charge, an rumual accounting of the Funds as required by RESPA. If there is a suqllas of :Funds held in escrow, as defined under RESPA, Lender shall account m Borrower for the excess funds iii accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall noilly, Borrower as required by :RESPA, and Borrower shall pay to Lender the amount necessao' to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. It! there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the an]ount necessary to make up the deficiency iii accordance with RESPA, but in no more than 12 monthly payments. Upon payment in :lull of all sums secured by this Sec:urity Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessmencs, charges, fines, and impositions attribul~lblc to thc Property which czm attain priority over this Security Instrument, leasehold payments or ground rents on the Property, il' any, rind Community Association Dues, Fcc. s, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge, any lien which has priority over this Security Instrument unless Borrower: (a) agTeeS in writing to the payment of thc obligation secured by the lien in a manner acceptable to :Lender, but only so long as Borrower is performing such agreement; (b) contes~.s the lien in good faith by, or dct~nds against enforcement of thc lien in, legal proceedings which in Lender's opinion operate to prevent thc enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of thc lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Securily Instrument, Lender may give Borrower a notice identifying die lien. Within 10 Initial,: '~",[~.,I0000737399 (~)~-6(WY) (0005) Pago5o, ,5 ~]/~,~// Form 3051 1/01 487 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in thks Section 4. Lender may require Borrower to pay a one-time charge ti)r a real estate tax verification and/or reporting service used by Lender in connection with this Loan, 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, h~ards included within the term "extended coverage," and any other haT~rds including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the mounts (including deductible levels) and lbr the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: Ca) a one-time charge for flood zone determination, certification and ~-acking services; or Cb) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower hils to inaintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or mnount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the content.s of the Property, against any risk, h~ard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significandy exceed the cost of insurance that Borrower could have obtained. Any amom~ts disbursed by Lender under this Section 5 shall becoine additional debt of Borrower secured by this Security lnstrumem. These anmunts 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, sh~l include a standard mortgage clause, and shall nmne Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal cerfil'icates. If Lender requires, Borrower shall promptly give to Lender alt receipts of paid prenfimns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for dmnage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall nmne Lender as mortgagee trod/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to fire insurance earrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if die restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to h.old such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work ha~s been completed to Lender's satislhcfion, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or iii 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 insurauce proceeds, iLender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurmice proceeds anti shall be the si~le obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, thc insurance proceeds shall be applied to Form 3051 1/01 488 the sums secur~ by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the. order provided for in Section 2. If Borrower ab:radons the Property, Lender may file, negotiate m~d 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 thc notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the tunounk~ 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. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence lbr at least one year after thc date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circums~ces exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspectious. Borrower shall not destroy, damage or impair thc Property, 'allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property l¥om deteriorating or decre&sing in value due to its condition. Unless it is detemfined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair thc Property it' damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or thc taking of, the Property, Borrower shall be responsible tbr repairing or restoring the Property only if Lender has rcle0.sed proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If thc insunmce or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reatsonable entries upon mul inspections of the Property. If it has reasonable cause, Lender may respect the interior of the improvement.s on the Property, Lender sh',fll give Borrower notice at the time of or prior to such tm interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statemcnl.s to Lender (or failed to provide Lender with material information) in connexfion with the Lomb. Material representations include, but are not limited to, representations concerning Borrower's occuptmcy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property aud Rights Under this Security Instrument. Il- (a) Borrower Pails to perform the covenants and agreements contained in this Security Instrmnent, (b) there is a legal proceeding that ~nigbt significantly affect Lender's interest in the Property and/or hghl.s under this Security Instrument (snch as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abm~doned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instru~nent, including protecting and/or assessing the value of the Property, and securing anti/or repairing the iProperty. Lender's actions can include, but are not li~nitcd to: (a) paying any sums secured by a lien which has priority over this Stx'urity Instrument; (b) appearing in court; and (c) paying reasonable ("~ ~,~, 0000737399 Initials: ~ attorneys' fees to protect ils interest in the Property trod/or rights under this Security lnsU'ument, including its secured position in a ban -kruptcy proceeding. Securing die Property includes, but is not limited to, entering the Property to ~n'ake repairs, change locks, replace or bored up doors mid windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or oft'. Although Lender may take action under this Sex'lion 9, Lender does not have to do so and is not tinder any duty or obligation to do so. It is agreed that Lender incurs no liability for not raking any or ~1 actions authorized umlcr this Section 9. Any mnounts disbursed by Lender under this Sectiou 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 acqaires I:ee rifle to the Property, the lcasehol.d mid file fee rifle shall not merge mdess Lender agrees to the inerger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall ipay the premiums required to maintain the Mortgage Insurance in effect, tf, for any reason, file MOrtgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to m',fl~e separately designated payments toward the premiums tbr Mortgage Insurance, Borrower sh~l pay the premiuins required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost subsumtially equivalent to the cost to Borrower of the Mortgage Insurm~ce previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable 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 inte, est 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 insnrer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums tbr IVlortgage Insurance, Borrower shall pa3' the premiums required to maintain MOrtgage Insurance in effect, or to provkle a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends ill accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's Obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a part3' to the iMortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modit}' their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer mid the other party (or parties) to these agreements. These agreemen[s may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any o.f the foregoing, may receive (directly or indirectly) mnounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a sha~e of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not afl'ecl the amnunts that Borrmver has agreed tu pay for Mortg:lge Insurance, nr any other terms nf the Loan. Such agreements will nnt increase the amuunt Borrower will owe for Mortgage Insurance, and they will not entitle Bnrrower to a. ny refund. ,~ /, ~000737399 430 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the tlomeowners Protection Act of 1998 or any other law. These rights may include the right tu receive certain dksclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund nf any Mortgage Insurance premiums that were unearned at the time of such cancellation ur termination. 11, Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible mid Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellmleous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may 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 iutcrcst to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds slut! be applied to the sums secured by this Security Instrument, whether or not then due, with file excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided tbr in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscelhmeous Proceeds shall be applied to file sums secured by this Security Instrument, whether or not then due, with file 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 before the partial taking, destruction, or loss in value is equal to or greater than the mnount of the sums s~ured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security h~strument shall be reduced by the amount of file Miscellaneous Proceeds multiplied by the following lYaction: (a) the total amount of the sums secured itmnediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the parti.'d talcing, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amouut of file sums ~cured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in whfing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing P~ty (as defined in the next sentence) offers to inake an award to settle a claim for dmnages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means file third party that owes Borrower Miscellaneous Proceeds or the Party against whom Borrower bas a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default il' any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material i~npamneut of Lender's interest in the Property or rights under dtis Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in [tie Property or rights under this Security Instrmnent. The proceeds o15 any award or claim for dmnages that are attributable to the impairment of Lender's interest in thc Property are hereby assigned auld 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. ~ ~/0000737399 (~)~-6(WY) (ooos} vag~,oo~ ~6 'i Form 3051 1t01 491 12, Borrower Not Released; Forbearance By Lender Not a Waiver. iExtension of the time for payment or modificatkm 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 rely 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 lbr payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the origimd Borrower or an), Successors in Interest of Borrower. Any forbeanmce by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of paymen[s l'rom third persons, entities or Successors in lnterest of Borrower or in amounts less than the amount then due, sh~l not be a waiver of or preclude the exercise of any right or remedy. 1i3. Joint and Several Liability; Co-signers; Successors and Assigns Bound. iBorrower covenanCs and agrees that Borrower's obligations mid liability shall be joint and several However, any Borrower who co-signs this Security Instrmnent but does not execute the Note (a "co-signer"): ia) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the stuns secured by this Security Instrument; and (c) agrees that Lender ~md any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or thc Note without the co-signer's consent. Subj~t to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's Obligations under this Security' Instrumcnt in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Sex'urity Instrument. Bom)wet shall not be released l¥om Borrower's obligations and liability under this Security Instrunlent unless Lender agrees to such release in writing. The covemmts and agreemenks of this Security Instrutnent shall bind (except as provided itl Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fces lbr services performed in counection with Borrower's default, for the purpose of protecting Lender's interest hi the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other lees, the absence of ex.press authority in this Security Instrument ti) charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instnunent or by Applicable Law. If die Loan is subj'~t to a law which sels 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 the permilted limits, then: ia) any such loan charge shall be reduced by the amount necessary to reduce fl~e cltarge ti) the permitted limit; and (b) any sums 'already collected from Borrower which exceeded permitted limits will be refUnded to Borrower. Lender may choose to m~e this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. Ifa refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (,whether or not a prepayment ch;u'ge is provided t'or under the Note). Borrower's acceplzmce of any such refund made by direct payment to Borrower will constitute a waiver o1' any right of action Borrower Inight have arising out of such overcharge. 15. Nntices. All notices given by Borrower or Lender itl connection with this Security Iustrmnent 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 .il' 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 Property Address unless Borrower has designated a substitute notice address by nodce 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 shtdl only report a change of address through that specified procedure. There may be only one designated notice address under this Scx'urity Instrmnent al any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have beeu 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 correspomling requirement under this Security 'instrument. [ ,nitial~; ~'~ ~'t'-/h 000737399 (~-6(WY) (o0os) PEG'. ~oo~ ]$ ,' Form 3051 1t01 495 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 Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicidy allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrmnent or the Note conflicts with Applicable Law, such contlict 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 o1! the masculine gender shall mean and include corresponding neuter words or words of the fe~ninine gender; (b) words in the singular shall mcan and include the plural m~d vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrawer's Copy. Borrower shzdi be given one copy of the Note and of this Security Instrument. 11.8. Transfer rff the Praperty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" tne:u~s any legal or beneficial interest in the Property, inclnding, but not limited to, those beneficial interests transferred in a bond I'or d~, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest m Borrower :is sold or transferred) without Lender's prior written consent, Lender may require im~nediate 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 aorice shall provide a period of not less than 30 days from the date the notice is given in actor ~dance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. It' 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. Bnrrower's Right to Reinstate After Acceleration. If Borrower meets certain conditkms, 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 nay power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) onry o[ a judgment enforcing this Security Instru~nent. Those conditions are that Borrower: (a)pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleratkm had occurred; (b) cures any default of any ottmr covenants or agreemenLs; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attoraeys' t~es, property inspection m~d valuation fees, and other tees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action tis Lender may reasonably require to assure that Leader's interest in the Property and rights under this Security Instrument, zu~d Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following fi~rms, ~s selected by Lender: (a) cash; (b) tnoney order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposiLs are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument 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 nf Grie~'ance. The Note or a partial interest in the Note (together with Lhis Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and pcrfor~ns other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There 'also might be one or more changes of thc Loan Servicer unrelated to a stile of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the nmne and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a ,~,~ia~: ,~; {,~,!0000737399 (~-6(wY) (ooos) Page 11of 15 ,1/~, , j Form 3051 1/01 493 notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage k)an servicing obligations to Borrower will remain with the Loan Servicer or 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) dlat arises from the oilier party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged brc~ch and 'afforded the other party hereto a reasonable period ',flier file giving of such notice to take corrective action, If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of 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. tlazardnus Substances. As used in this Section 211: (a) "Hazardous Substances" are those substances defin~ as toxic or hazardous subsumces, poIlu~lLs, or wastes by Environmental Law mid the following substances: g~oline, kerose:ne, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, mid radioactive tnaterials; (bi "Enviromnental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromncntal protecfiou; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined m Environmental Law; mid (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Clemmp. Borrower shall not cause or permit the presence, use, disposal, storage, or release of an), H~ardous 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 Enviromnental Law, (bi which creates an Environmental Condition, or (c) which, due to the presence, usc, or release of a Hazardous Substance, creates a condition that adversely affects file value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small qnanfities of Hazardous Substmlces fliat are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, h~ardons subst~mces in consumer products). Borrower shall promptly give Lender written notice of (a) rely investigation, claim, dcmmld, lawsuit or other action by any governmental or regUlatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (bi any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any ltazardous Subs~lce, and (c) any condition caused by the presence, use or release of a H~ardous Substance which adversely affec[s the value of the Property. Il' Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that an5' removal or other remediation of any H~ardous Subsumce affecting thc Property is necessary, Borrower shall promptly take all necessary remedial actions m accordance with Environmental Law. Nothiug herein shall create any obligation on Lender for an Environmental Cleanup. Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. iLender shall give notice to Burrower prior to acceleration fifllowing Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 1.8 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 thk~ Security Instrument and sale of the Property. The notice shall further inflDrm Borrower of the right to reinstate after acceleration and the right to bring a cnurt action to assert the non-existence of a default or any other defense of Borrower to acceleratiou and sale. If the default is not cured on or beh:}re 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 iuvoke the power of sale and an)' other remedies permitted hy Applicahle Law. Lender shall be entitled ltd collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but mdt limited to, reasonable attorneys' fees and costs of title evidence. If Lender invnkes the power uf sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Pruperty, if different, in accnrdance with Applicable Law. Lender shall give notice of the: sale to Borrower in the manner provided in Section 15. Lender shall publish the nolice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender ur its designee may purchase the Prnperty at any sale. The proceeds of the sale shall be applied in the following order: (a) to ali expenses ~ff the sale, including, but not limited to, reasunable 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. iBorrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fcc is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower reic4~cs zmd waives all rights under and by virtue of the homestead exempt/on laws of Wyoming. ~,~a~s: D;~L,/ 0000737399 (~I[-6(WY) (ooos) Page ~3 o~ ~5 -~ Form 3051 1t01 BY SIGNING BELOW, Borrower accepm and agrees to file terms and covenants contained in this Security Instrument and in tin)' Rider executed by Borrower and recorded wifll it. Wimcsscs: DAN WRIGHT -m,.o~,~r (Seal) -Borrower (Seal) (Seal) -~{orrower (Seal) 41orrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower ~?(W¥) iooo~) I~age 14 ol 15 0000737399 Form305~ llOl STATE 0~(;, 'X~-f'4 \'~ ~ k~'~.~ Count)' ss: My Commission Expires: NoraD' Public Legal Description 497 That part of the NW~filN.E¼ of Section 23, T34N Ri l9W of the 6th P.M.,within the Incorporated Limits of the Town of Thayne, Lincoln County, Wyoming being part of that tract of record in the Office of the Clerk of Lincoln County in Book 274PR on page 52, described as follows: BEGINNING at a point S 89°48'18" E, 389.07 feet from the Northwest corner of said NW 1/4 NE ¼; thence S 89°48'18'' E, 246.00 feet, along the north line of said NW¼NE¼, to a point; thence S 00o03, 18" W, 130.00 feet, to a point on the south line of said tract; flmnce N 89°48'18.. W, 246.00 feet, along said South line, to a point; thence N 00o03'1.8'' E, 130.00 feet to the POINT OF BEGINNING. Lc, anNm~rO000737399 ADJUSTABLE RATE RIDER ADDENDUM (Libor Index - Rate Caps) This .Adjustable Rate Rider is made this 1 §th day of January 2003 and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "Note") and Mortgage, Deed of Trust or Security Deed (the "Security Instrument") and Adjustable Rate Rider (the "Rider") of the same date given by the undersigned (the "Borrower") to secure repayment of Borrower's Note to NEW CENTURY NORTGAGE CORPORATION (the "Lender"). Property securing repayment of the Note is described in the Security InstTument and located at: 529 HENI4ERT LANE , THAYNE, WYOMING 83127 (Property Address) To the extent that the provisions of this Adjustable Rate Rider Addendum are inconsistent with the provisions of the Note and/or Security Insmm~ent and/or Rider, the provisions of this Addendum shall prevail over and supersede any such inconsistent provisions of the iNote and/or Security Instrument and/or Rider. iin addition to the covenants and agreements made in the Note, Security lnstTument, and 'Rider, Borrower and Lender further covenant and agree as follows: 4. (D) LIMITS ON INTEREST RATE CHANGES The interest rate I am required to pay at the first change date will not be greater than 11. 0000 % or less than 9. 5001/~. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than One and 0ne-Hal f percentage point(s) ( I. 500 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 16.5000 % or less than 9.5000 %. BY SIGNING .BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider Addendum. DAN I~RIGHT ~:~ MACHELLE CHRISTINE WRIGHt New C~ntury Mortgage RE 102 (082296) 499 ADJUSTABLE RATE RIDER (LIBOR SLx-M. unth Index (As Published In The Wall Street Journal) - Rate Caps) 2 YEAR RATE LOCK THIS ADJUSTABLE RATE RIDER is made this 15th day of January 2003 , and is incorporated into and shall be dee~ned to mncnd and supplement the Mortgage, Dccd of Trust, or Security Deed (the "Security lnstrumenf') of the same date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to NEW CENTURY HORTGAGE CORPORATION CLender") of the same date and. covering thc property described in the Security Instrmnent and located at: 529 HEHNERT LANE, THAYNE, ~/Y 83127 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenanLs and agreements made in the Security Instru~nent, Borrower anti iLeuder further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CtlANGES The Note provides for an initial interest rate of 9.5 0 0 0 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates Tile interest rate I will pay may change on the first day of F e b r u a r y 2 0 0 5 and on that day every 6th month ther"cafter. Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER-LIBOR SIX-MONTH INDEX (AS STREET JOURNAL) ~Single Family-Fannie Mae Uniform Inslrumenl {~i~838R (0006) Form 3~38 Page I of 4 Initials:l)iL~t. VMP MORTGAGE FORMS - (800)521-7291 0000737399 PUBLISHED IN THE WALL 500 (B) The Index Beginning with the first Change Date, my interest rate will be based oil an Index. Thc "Index" is the average of interbank offered rates for six month U.S. dollar-denominated deposits in the London market CLIBOR"), as pUblished in 1'he Wall Street Journal. The most recent Index figure available as of the first business day of file month immediately preceding the month iii which thc Change Date occurs is called the "Current Index." If the Index is no kroger available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of Ihis choice. (C) Calculation of Changes Before each Change iDate, the Note Holder will c~culate my new interest rate by adding Seven and One-Tenth pcrcentage points ( 7.1000 %) to the Current Index. The Note Holder will then round file result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded mnount will be my new interest rate until file next Change Date. The Note Holder will then determine the amount of file monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at file Change Date in full on the Maturity Date at iny new interest rate in substantially equal payments. Thc result of this calculation will bc the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I ,un required to pay at the first Change Date will not be greater than 11,0000 % or less thtm 9. 5000 %. Thereafter, my interest rate will never be increased or decreased ou an), single Change Date by more than One and One-Ha I f percentage points ( 1.500 %) frown the rate of interest I have been paying l~r the preceding fi Inonths. My interest rate will never be greater than 1 §. 5000 %, (E) Effective Date o1' Changes My new interest rate will become effective on each Change Date~ 1 will pay file mnount of my new monthly payment beginning on tile first monthly payment date after file Change Date until tile anmunt of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail tx) me a notice of any changes in my interest rate and file amount of my monthly payment belt>re file effective date of any change. The notice will include information required by law m be given to me and also the title trod telephone number of a person who will answer any question I may have regarding file notice. (0006) Page 2 of 4 0000737399 Form 3138 1t01 501 13. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of tile Security Instrument is anmnded to read as follows: Transfer of the l~rnpe:rty or a Beneficial Interest in B[~rrower. As used in this Section 18, 'Interest in tile Property" metros any legal or beneficial interest in the Property, including, but not li~nited m, those beneficial interests transferred in a bond for deed, cona'act for deed, instalhncut sales contract or escrow agreement, the intent of which is the transfer ol title by Borrower at a furore 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 natur~ persou and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender [nay require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law, Lender also shall not exercise this option il-.' (a) Borrower causes to be submitted to Lender inl'ormation required by Lender to evaluate the intended transferee as if a new loan were being made to the trm~sferee; and. (b) Lender re~onably determines that Lender's security will not be i~npaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrmnent is acceptable to Lender. To the extent permitted by Applicable Law, Lender may chzu'ge a reasonable fee as a condition to Lender's consent to the loan assumption, Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreemenks made in the Note and in this Security Instrument. Borrower will continue t~ be obligated under the Note and this Security Instrument unless Lender releases Borrower itl writing. If Lender exercises the option to require ilnmcdiatc payment in I'ull, Lender shall give Borrower notice of acceleration, The notice shall provide a period o1' 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. (~1~838R (0006) Page 3 o! 4 000737399 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate R~ider. · : ~:~. ': (Seal) DAN WRIGHT -Borrower NACHELLE CHRISTINE WRIGHT -Borrower (Seal) (Seal) -Borrower -Borrower .(Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~,838R (0006) Page 4 of 4 0000737399 Form 3138 1/01 503 Loan t'lumbe~O000737399 PREPAYMENT RIDER ADJUSTABLE RATE LOAN This Prepayment Rider is made this 15th day of January 2003 and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "iNote") and Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned. (the "Borrower") to secure repayment of Borrower's Note to NE~/ CENTURY NORTGAfiE CORPORATION (the"Lender"). To the extent fl~at the provisions of this Prepayment Rider are inconsistent with the provisions of the NOte and/or Security Instrument, the provisions of this rider shall prevail over and shall supersede any such inconsistent provisions of the Note and/or Security Instrument. lin addition to the covenants and agreements made in the Note and Security Instrument, the Borrower and Lender further covenant and agree as follows: 5. BORROWERS RIGHT TO PREPAY i have the right to make prepayments of principal any time before they are due. A ipayment of principal only is known as a "prepayment". When I make a prepayment, I will tell the Note Holder in ,axiting I am doing so. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will be no changes in the due dates of my monthly payments unless: the Note Holder agrees in writing to those changes. My partial prepayment may reduce the amount of my monthly payments after the first Change Date following my partial prepayment. If within 2 year(s) from the date of execution of the Security Instrument, I make a full prepayment or, in certain cases a partial prepayment, and the total of such prepayment(s) in any 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of this loan, I will pay a prepayment charge in an amount equal to the payment of 6 months advance interest on the amount by which the total of my prepayment(s) within that 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of the loan. BY SIGNING BELOW, Borrower ct~tained in dtis Prepayment Rider. accepts and agrees to the terms and covenants NCMC Creneric Prepayment Ride~ RE 11)3 Revised (020800) f,IE- 103Jld