Loading...
HomeMy WebLinkAbout889504When recorded mail to: ABN AMRO MORTGAGE GROUP, INC. P.o. Box 5064 RECEIVED TROY, MICHIGAN 48084 LINCOLN COJi'.]T¥ CLERk< ATTN,FINAL/TRAILING DOCUMENTS 8 8 9 5 0 ~ BOOK ~- ~PR PAGE LOAN #: 635817446 [Space Above Tiffs Lia~e For Recording Data] MORTGAGE DEFINITIONS Words used in multiple sections of this documem are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated APRIL 12, 2003, together with all Riders to this document. (B) "Borrower" is STEVEN C AINSLIE,. AND MARY CANDACE AINSLIE Borrower is the mortgagor under this Security Instntment. (C) "Lender" is ABN AMRO MORTGAGE GROUP, INC. Lender is a CORPORATION organized and existing under the laws of DELAWARE. Lender's address is 2600 W. BIG BEAVER RD. TROY, MICHIGAN 48084. Lender is the mortgagee under this Security Instmmem. (D) "Note" means the pronffssory note signed.by Borrower and dated APRIL 12, 2003. The Note states that Borrower owes Lender * * * * * * * * * * * * * * * * * * * * * * * * *ONE HUNDRED SEVENTY TWO THOUSAND AND NO/100 · ********************************************************* Dollars(U.S. $172,000.00 ) phis imerest. Borrower has pronffsed to pay tiffs debt in regular Periodic Payn]cnts and to pa)r the debt in fidl not later than MAY 1, 2023. (E) "Property" means the property that is. described below under the heading "Transfer of Rights in the Property.." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider [--~ Condominmm Rider ~ Second Home Rider ~ Balloon Rider [--~ Planned Unit Development Rider ~ Other(s) [specify] ~ 1-4 Fanffly Rider ~ Biweekly Payment Rider (H) "Applicable Law" means all comrolling applicable federal, state and local statutes, regulations, ordinances and adnffnistrative rides and orders (that have the effect of law) as welI as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) '~Electronic Fun ds Transfer" means any transfer offi~nds, other than a transaction originated by check, draft, or sinfilar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not lmffted to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow items" means those items that are described in Section 3. (L) "Miscellaneous Proceed s" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Propem,; (ii) % %l~'OMING--Single Family--Famde Mae/Freddie Mac UNIFORM INSTRUMENT initials: ~ ~?~/~'~ Fonn3051 1/01 Page 1 of 8 WYUDEED 0109 LOAN #: 635817446 condenmation or other taking of all or any part of the Property; (iii) conveym~ce in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Proper5,. (M) ~Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 oftlds Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its ixnplementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Securi .ty 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 quali .fy as a "federally related mortgage loan" under RESPA. (P) ' ~Successor in Interest of Borrower" means any partythat has taken title to the Property, whether or not that party has assumed Borrower's obligations nnder the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Secnrity Instnunent secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and lnodifications oftheNote; and (ii) the performance of Borrower's covenants and agreements under this Securi .ty Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Leuder's successors and assigns, with power of sale, the following described property located in the COUNTY [Name of Recording Jurisdictim~] of L I N COLN [Name of Recording Jurisdiction]: SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF. Milch currently has the address of Wyonfing 8 31 ! 8 [Zip Code] 1094 SADDLE DRIVE, (' 'Property Address"): ETNA, [Street] [City] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instnnnent as the "Property.'.' BORROWER COVENANTS that Borrower is laxvfully seized of the estate hereby conveyed and has the right to lnortgage, grant and conveythe Property and that the Propertyis unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property. against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT co~nbines uniform covenants for national use and non-mfiform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shallpay when due the phncipal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3: Payments due under the Note and tlfis Security Instrument shall be made in U.S. currency. However, if auy check or other instrument received by Lender as payment under the Note or this Secuhty Instnunent is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or ~nore 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 a~\¥ such check is drawn npon an institution whose deposits are insured by a federal agency, instmmentali .ty, or enti .ty; or (d) Electronic Fnnds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are instffficient 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 payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes paymenl 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 earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or perforating the covenants and agreements secured by this Securi .ty Instnnnent. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it becmne due. Any Form 3051 1/01 Page 2 of 8 WYUDE, ED remai]fing amounts shah be applied first to late charges, second to any other amounts due under this Security Instnmtent, and then to reduce fl~e principal balance of the Note. ~ Lender receives a paymem from Borrower for a delinquen1 Pehodic Payment which includes a st~tcient amoum to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. ~ more than one Periodic Payment is outstanding, Lender nmy apply any payment received front Borrower to the repayment of/he Periodic Payments if, and to the extent that, each payment can be paid in full. To the ex2ent that any excess exists ~er the payment is applied to the fidl payment of one or more Periodic Paymeuts, such excess may be applied to any late charges due. VoluntaU, prepayments shall be applied first to any prepayment charges and then as described in the Note. ~y application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Ite~ns. Borrower shall pay 1o Lender on the day Periodic Payments are due under the Note, until the Note is paid in rill, a sum (the "Funds' ') to provide for payment of amounts due for: (a) taxes and assessments and other items which cau a~ainpfiofity over tlfis SecuriB, Instnnnent as a lien or encmnbrance on the Prope~,; ¢) leasehold payments or ground rents on the Prope~, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mo~gage Insurance premiums, ff any, or any sums payable by Borrower to Lender in lieu of the payment of Mo~gage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Commu~B, Association Dues, Fees, and Assessments, ff any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly hrnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for ally or all Escrow Items at any time. Any SUCh waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for Which paymeia of Funds has been waived by Lender and, if Lender requires, shall fnrmsh to Lender receipts evidencing suchpayment within such time period as Lender may require. Borrower's obligation to make suchpayments and to provide receipts shall for allpu~oses be deemed tobe a covenant and agreement contained in ~is Security Iustmment, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender 1nay exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such mnount. 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 Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and lmld Fnnds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under ~SPA, and ¢) not lo exceed the mammum amount a lender can require under ~SPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of ~ture Escrow Items or othenvise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instmmentali9,, or entiB, (including Lender, if Lender is an institution whose deposits are so insured) or in auy Federal Home Loan Bank. Lender shall apply the Fnnds to pay the Escrow Items no later than the time specified under ~SPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or veri~Sng the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pernfits Lender to m~e such a charge. Unless an agreement is made in writing or Applicable Law requires imerest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eanfings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by ~SPA. If there is a su~lus of Funds held in escrow, as defined under ~SPA, Lender shall account to Borrower for the excess ~nds in accordance with ~SPA. ~there is a shoaage of Funds held in escrow, as defined under ~SPA, Lender shall not~ Borrower as required by.~SPA, and Borrower shall pay to Lender the amount necessau, to make up the sho~age in accordance with ~SPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under ~SPA, Lender shall not~ Bo~ower as required by ~SPA, and Bo~ower shall pay to Lender the amount necessau' to make up the deficiency in accordance ~vith ~SPA, but in no more than 12 montlfly payments. Upon paymem in ~11 of all sums secured by this Securi~' Instrument, Lender shall promptb,refund to Bo~ower any Funds held by Lender. 4. Charges; Liens. Borrowershallpayalltaxes, assessments, charges, fines, andimposifions attributable to the Prope~ wlfich can attain prioriW over this Securib~ Instnunent, leasehold payments or ground rents on the Prope~, if any, and Commumb~ Association Dues, Fees, and Assessments, ff aKy. To the extent that these items are Escrow Items, Borrower shall pay them in the rammer provided in Section 3. Borrower shall promptly discharge mkvlien which has pfioriW over this S ecurib~ Instrument m~ess Borrower: (a) agrees in writing to tim payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; ¢) contests thelien in good faithby, or defends against enforcement of the lien in, legalproceedings wlfich in Lender's opinion operate to prevent the e~fforcement of the lien wlfile those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactou~ to Lender subordinating the lien to this SecuriB, Instrument. ffLender deternfines that anypaa of the Prope~ is subject toa lien wldch can a~n priori~ over this Securib~ Instrument, Lender may give Borrower a notice identi~ing the lien. Witlfin 10 days of the date on Milch that notice is given, Borrower shall satis~ the lien or t~e one or more of the actions set fo~h above in this Section 4. Lender may require Bo~ower to pay a one-time charge for a real estate tax verification ancot reposing sen,ice used by Lender in connection with tlfis Loan. 5. Prope~y Insurance. Borrower shall keep the improvements now e~sting or here~er erected on the Prope~ insured against loss by fire, hazards included within the terln "extended coverage," and any other hazards including, but not limited to, ea~hqu~es and floods, for which Lender requires insurance. This insurance shallbe maintained inthe amouuts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in commction with this Loan, either: (a) a one-time charge for flood zone deterufination, ce~ification and tracking sen,ices; or ~) a one-Ii,ne charge for flood zone determination and cemfication se~,ices and subsequent charges each time remappings or similar changes occur which XS~'OMINO--Single Fmily--Falufie Mae/Fre,hlie Mac UNIltORM INSTRUMENT Initials: Fon~t 3051 1/01 Page 3 of 8 - ' W~DEED LOAN #: 635817446 reasonably rmght affect such deternfination or certification. Borrower shall also be responsible for the paymem of any fees imposed by the Federal Elnergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity m the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any ,amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate front 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 fight to disapprove such policies, shall inclnde a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shallpromptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Proper5.~, such policy shall include a standard mortgage clause m~d shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportuniB.' to iuspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress pay~nents as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shallbe the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened; the insurance proceeds shall be applied to the sums secured by this Security Instnunent, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property., Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carder has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property. under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or tlfis Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned prenfiums 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 Proper5/ 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 Propem/as Borrower's principal residence within 60 days ,after the execution of this Security Instrument and shall continue to occupy the Propem~' as Borrower's principal residence for at least one year after the date of occupancy, nnless Lender otherwise agrees in wfiting, which consent shall not be unreasonably withheld, or unless extemmting circmnstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the ProperBr to deteriorate or connnit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Propem/from deteriorating or decreasing in valne due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in com~ection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Properly only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condenmation proceeds are not stffficient to repair or restore the Property, Borrower is not relieved Of Borrower's obligation for the completion of such repair or' restoration. Lender or its agent may make reasonable entries npon and inspections of the Propenb/. If it has reasonable cause, Lender may inspect the mtefior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shallbe in default if, dudng theLoanapplicafionprocess, Borrower or anypersons or entities acting at the direction of Borrower or with Borrower' s knowledge or consent gave matefially false, nfisleading, or inaccurate i~ifor,nation or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in tlfis Security Instrument, (b) there is a legal proceeding that might sigmficantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bamkmptcy, probate, for condemnation or forfeiture, for e~iforcement of a lien which may attain priority over this Security Instrument or to e~fforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and fights under this SecuriB~ Instnnnent, including protecting aud/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are ~mt li~nited to: (a) paying any sums 'secured by a lien which has priodty over tlfis Security Instrument; Co) appearing iu court; and (c) paying reasonable attorneys' fees to protect its interest m the Property and/or rights under this Security Instrument, including its secured position in a ba~hkmptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liabiliB~ for not taking any or all actions authorized under this Section 9. XVYOMING--Singie Family--Famde Mae/Fred,lie Mac UNIFORM INSTRUMENT Fomn 3051 1/01 Page 4 of § WYUDEED LOAN #: 635817446 Any autounts disbursed by Lender under this Section 9 shall become additionnl debt of Borrower secured by this Security Instnunent. These amoums shall bear imerest at the Note rme from the dine of disbursemem and shall be payable, with such interest, npon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Prope~y, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10, Mo~gage Insurance. ~Lender required Moffgage Insurance as a condition ofm~ng the Loan, Borrower shall pay the premiums required to nmintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make sepa.ralely designated payments toward the premiums for Mo~gage Insurance, Borrower shall pay the premimns required to obtain coverage substantially equivalent to the Mo~gage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mo~gage Insurance previously in effect, from an alternate mo~gage insurer selected by Lender. ~ substm~tially equivalent Mo~gage Insurance coverage is not available, Borrower shall coutinue 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-refi;ndable loss resen,e in lieu of Mo~gage Insurance. Such loss resen~e shall be non-reMndable, notwithstanding the fact that the Loau is ultimately paid in fidl, and Lender shall not be required to pay Borrower any interest or earmngs on such loss resen~e. Leuder can no longer require loss resen~e payments ifMoflgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mo~gage Insurance. If Leuder required Mo~gage Insurance as a condition of making the Loan and Bo~ower was required to m~e separately designated payments toward the prenfimns for Mo~gage Insurance, Borrower shall pay the prenfiums required to maintain Mo~gage Insurance in effect, or to provide a uon-refnndable loss resen,e, uutil Lender's requirement for Mo~gage Insurance ends in accordance with any wri~en agreement between Borrower and Lender providing for such temfination or until termination is required by Applicable Law. Nothing in tlfis Section 10 ~fects Borrower's obligation to pay interest at the rate provided in the Note. Mo~gage Insurance rmmburses Lender (or any enti~ that purchases the Note) for ce~ain losses it may incur ffBorrower does not repay the Loan as agreed. Borrower is not a pa~ to the Mo~gage Insurance. Mo~gage insurers evaluate their total risk on all such insurance in force from time to tired, and may enter into agreements with other pa~ies that share or modi$, their risk, or reduce losses. These agreements are on terms and conditions that are satisfactou, to the mo~gage insurer and the other pa~ (or pa~ies) to these agreements. These agreements nmy require the mo~gage insurer to m~e payments using any source of funds that the mo~gage insurer may have available (which may include Mnds obtained from Moagage Insurance prenmuns). As a result of these agreements, Lender, anypurchaser of the Note, another insurer, any reinsurer, any other entiq5 or any ~liate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or ~hght be characterized as) a portion of Borrower's payments for Moflgage Insurance, in exchange for sharing or mod~,ing the mo~gage insurer's risk, or reducing losses. If such agreement provides that an ~liate of Lender t~es a share of the insurer's risk in exchange for a share of the prexniums paid to the insurer, the arrangement is often termed "captive reinsurance." Fu~her: (a) Any such agreements will not affect the amouuts that Borrower has agreed to pay for Mo~gage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they u411 not entitle Borrower to any refund. (b) ~y such agreements will not aflkct the rights Borrower has - if any - with respect to the Mo~agage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive cemain disclosures, to request and obtaiu cancellation of the Momgage Insurance. To have the Mortgage Insurance terminated automatically, and/ or to receive a refund of any Mo~Xgage hsurance premiums that were unearned at the time of such cancellatiou or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. Ail Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Prope~ is damaged, such ~scellaneous Proceeds shallbe applied to restoration or repair of the Prope~5 ffthe restoration or repaif is econonfically feasible and Lender's securfq~ is not lessened. During such repair and restoration period, Lender shall hm,e the fight to hold such ~scellaneous Proceeds until Lender has had an oppo~m6, to inSPect such Prope~ to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be under,eh 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 req~fires interest to bepaid on such ~scellaneous Proceeds, Lender shall not be required to pay Borrower auy interest or earnings on such ~scellaneous Proceeds. ~the restoration or repair is not econonfically feasible or Lender's securily would be lessened, the Miscellaneous Proceeds shall be applied to the su~ns secured by this SecuriB, Instrument, whether or not then due, with the excess, ff any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total t~ing, destruction, or loss in value of the Prope~, the ~scellaneous Proceeds shall be applied to the sums secured by this SecuriW Instnunent, whether or not then due, with the excess, ff any, paid to Borrower. In the even/of a partial t~ing, destruction, or loss in value of the Prope~, in which the fair market value of the Prope~ inunediately before the Pa~ial t;~ing, destruction, or loss in value is equal to or greater than the amount of the sums secured by tlds SecuriB~ Instrument hmnediately before the pa~ial t~ing, destruction, or loss invalue, u~ess Borrower and Lender othe~ise agree in writing, the sums secured by tlfis Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds nndtiplied by the following fraction: (a) the total amount of the sums secured inunediately before the partial t~ng, destntction, or loss in value divided by ¢) the fair market value of the Prope~ immediately before the pa~ial t~ing, destmctiou, or loss in value. Any balance shall be paid to Borrower. In the evenI of a pa~ial t~ng, destruction, or loss in value of the Prope~~ in which the fair market value of the Prope~ inunediately before the pa~ial t~ing, destruction, or loss in value is less than the amount of the sums secured immediately before the pa~ial t~ing, destruction, or loss invalue, unless Borrower and Lender olhenvise agree in writing, fl~e ~scellaneous Proceeds shall be applied to the sums secured by tlds SecudB~ Instrument whether or not the sums are then due. ~the Prope~ is abandoned by Borrower, or if, ~ler notice by Lender to Borrower that the Opposing Pa~ (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days ~er the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoralion or repair of the Prope~y or to the sums sect~ed by tlfis Securi~ Instrument, whether or not theu due. "Opposing Pa~" means the third pa~ that owes Borrower Miscellaneous Proceeds or the pa~ against whom Borrower has a right of action in regard to Miscellaneous Proceeds. ,,,'OMING--Single Family--Famde Mae/Freddie Mac UNIFORM INSTRUMENT Initials:. ~YUDE¢ Form3051 1/01 Page 5 of 8 lcn LOAN #: 635817446 Borrower shall be in default if any action or proceeding, whether civil or crinffnal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment ofLeuder' s interest in the Property or rights under this S ecuri _ty 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, iix Lender' s judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instnunent. The proceeds of any award or claim for damages that are attributable to the ilnpairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Fm'bearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Securi .ty Instrument granted by Lender to Borrower or ely Successor in Interest of Borrower shall not operate to relea se the liabili .ty of Borrower or any Successors in Interest of Borrower. Lender shall notbe required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or othenvise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without linfftation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shallbejoint and several. However, an)'Borrower who co-signs this Security Instm,nent but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instn~ment only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Securi .ty Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or lnake any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the pro'visions of Sectiou 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Securi .ty Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release iix writing. The covenants and agreements of this Security !nstmment shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for sen,ices performed in connection with Borrower's default, for the purpose of protecting Lender's interest m the Property and rights under this Security Instrmnent, inchiding, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender ina), not charge fees that are expressly prohibited by tiffs Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally mterpreted so that the interest or other loan charges collected or to be collected iix connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the penmtted linfft; and (b) auy sulns already collected from Borrower which exceeded permitted linffts willbe refi~nded to Borrower. Lender may choose to make this refl~nd by reducing the principal owed under the Note or by makiug a direct payment to Borrower. If a re fired reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for uuder the Note). Borrower's acceptance of auy such re fiend made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. AllnoticesgivenbyBorrower orLenderinconnectionwiththis Securitylnstmmentmustbeinwriting. Anynotice 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 actuall5 deli~ ered to Borrower s notice address if sent b~ other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expresslyrequires otherwise. The notice address shallbe the Property. Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender ofB orrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under tiffs Security Instnnnent at any one time. Any notice to Lender shall be givenby delivering it or by nailing 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 Securi .ty Instmn~ent shall eot be deemed to have been given to Lender until actualty received by Lender. If any notice requiredby this Securi .ty Instnunent is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instmn~ent 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 Instrmnent are subject to any reqnirements and linfftations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it nffght be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the eveut that al\y provision or clause of this Security Instrument or the Note coldlicts with Applicable Law, such comqict shall not affect other provisions of this Security Instmn~ent or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the fenffnine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Secnrity Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest iii the Property" means any legal or beneficial iuterest in the Property, inchidmg, but not liuffted to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of wlfich is the transfer of title by Borrower at a filture date to a purchaser. If all or any part of the Property or an), Interest in the Property is sold or trausferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Leuder' s prior written consent, Lender may require immectiate payment in fifll of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 3 0 days from the date the notice is given in accordance with Section 15 within which Borrower nest pay all sans secured by WYOMING--Single Fanfily-d?amde Mae/Freddie Mac UNIFORM INSTRUMENT Fonn3051 1/01 Page 6 of 8 Initials: ~..~/~3 WYUDEED O50 ~his Securi~ Ins~mm~m. If Borrower falls ~o pay th~se stuns phor ~o fi~ expiration of fids period~ L~nder may invoke any remedies permitted by ~his Secu6~ Ins~nunen~ wi~hom ~her notice or demnnd on Bo~ower. 19. Borrower's ~ght to Reinstate After Acceleration. ~Borrower meets certain conditions, Borrower shall have the right to have mfforcement of this Secufi~ Instnnnent discontinued at anytime prior to the earliest of: (a) five days before sale ofthe Prope~y pursuant to any power of sale contained in this SecUfiW Instnnnent; ¢) such other period as Applicable Law might spec~ for the termination of Borrower's fight to reinstate; or (c) ent~ of a judgment e~orcing tlfis SecuriW Instrument. Those conditions are that Borrower: (a) pays Lender all stuns which then would be due under tlfis Security Instrument and the Note as ffno acceleration had occu~ed; ¢) cures any default of any other covenants or agreements; (c) pays all expenses incurred in mfforcing this Security Instnunent, including, but not linfited to, reasonable attorneys' fees, prope~ inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Prope~ aud rights under this SecufiW Instnunent; and (d) t~es such action as Lender may reasonably require to assure that Lender's interest in the Prope~ and rights under this Security Instrument, and Borrower's obligation to pay the stuns secured by this Securi~~ Instmnmut, shall contiuue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; ¢) money order; (c) ce~ified check, bal~ check, treasurer's check or cashier's check, provided any such check is drawn npon an institution whose deposits are insured by a federal agency, instmmentaliB, or enti~5 or (d) Electronic Funds Transfer. Upon reinstatement by Bo~ower, tbs SecuriW Instrument and obligations secured hereby shall remain ~lly effective as if no acceleration had occurred However, tlfis right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Se~wicer; Notice of Grievance. The Note or apartial interest in the Note (together with tlfis Securi~ Instrument) can be sold one or more times without prior notice to Borrower. A sale nfight result in a change in the entity (known as the "Loan Sen,icer") that collects Periodic Payments due under the Note and tlfis SecuriW Instrument and performs other mo~gage loan se~icing obligations under the Note, this SecufiW Instrument, and Applicable Law. There also might be one or more changes of the Loan Se~icer unrelated to a sale of'the Note. If there is a change of the Loan Se~icer, Bonower will be given wri~en notice of the change which will state the name and address of the new Loan Sen,icer, the address to which payments should be made and any other i~fformation ~SPA requires in connection with a notice of transfer of s4n, icing. ~the Note is sold and there~er the Loan is se~iced by a Loan Se~icer other than the purchaser of the Note, the mo~gage loan se~icing obligations to Borrower will remain with the Loan Sen,icer orbe transferred to a successor Loan Sen, icer and are not assumed by the Note purchaser mfless othenvise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other pa~y's actions pursuant to tlfis SecufiB, Instrument or that alleges that the other has breached any provision of, or any du~ owed by reason of, this SecuriB, Instmmeut, until such Borrower or Lender has notffied the other pa~y (with such notice given in compliance with the requirements of Section 15) of such alleged breach and ~orded the other pa~ hereto a reasonable period ~er the giving of such notice to t~e corrective action. ~ Applicable Law provides a time period which must elapse before ce~ain action can be t~en, that time period willbe deemed to be reasonable for pu~oses oftlfis paragraph. The notice of acceleration and oppofluniB, to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shallbe deemed to safis~the notice and oppo~uni~, to t~e corrective actionprovisions oftlds Section 20. 21. H~ardous Substances. As used m this Section 21: (a) "Hazardous Substauces" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; ¢) "Environmental Law" means federal laws and laws of the jurisdiction where the Properly is located that relate to health, s~ety or environmental protection; (c) "Environmental Cleanup" includes auy response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or othenvise trigger an Enviromnental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to ~elease any Hazardous Substances, on or in the Prope~y. Borrower shall not do, nor allow anyone else to do, ans~hing ~ecting the Prope~, (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the Presence, use, or release of a Hazardous Substance, creates a condition !hat adversely ~ects the value of the Prope~,. The preceding two sentences shall not apply to the presence, use, or storage on the Prope~' of small quantities of Hazardous Snbstances that are generally recognized to be appropriale to normal residential uses and to maintenance of the Pr0pe~, (including, but not limited to, hazardous substances in consmner products). Borrower shall promptly give Lender written notice of (a) any investigation, clmm, demand, lawsuit or other action by any govermnental or re~llato~ agency or private pa~, involving the Properly and any Hazardous Substance or Environmental Law of Milch Borrower has actual knowledge, ¢) any Environmental Condition, including but not limited to, auy spilling, le~ing, discharge, release or t~eat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adverselY ~ects the value of the Prope~r. ~ Borrower learns, or is not, ed by a~[v governmental or re~dato~, authoriB5 or any private pa~, that any removal or other remediation of any Hazardous Substance ~ecting the Prope~ is necessa~, Borrower shall promptly t~e all necessa~ remedial actions in accordance with Environmental Law. Notlfing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrmnent (but not prior to acceleration under Section 18 nnless 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 h'om the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Secm-ity Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration aud the right to bring a court action to assert the non-existence of a default or an), other defense of Borrower to acceleration and sale. if the default is not cured on or before the date specified in the notice, Lender at its option may requh'eimmediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not liniited to, reasonable attm'neys' fees and costs of title evidence. XtrYOMING--Single Family--Fmmie Mae/Freddie Mac UNIFORM INSTRUMENT Form3051 1/01 Page 7 of 8 WYUDE~D ~17 LO/all #: 635817446 If Lender invokes tim power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrowel- in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at an3, sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secm'ed 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 Ifistmment. Borrower shall pay any recordation costs. Lender ma), charge Borrower a fee for releasing tlfis Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyonfing. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained h~ this Security Instmn~ent and m any Rider executed by Borrower and recorded with it. '/' State of WYOMING ) Count of 1' oD I/ J > ) The foregoing' instrument was Witness my hand and official seal. (Signed) . ' Notary Public ~, k)~ ~, ~~ (Prim% or type name) My Commission Expires: ~ 2-- 1!-0~ acknowledged before me by STEVEN C AINSLIE~, this AND MARY CANACE AINSLIE {fl ~/~i~] Notory Public ~] Lincoln County ~ Wyoming My Commission Expires Dec 11 2006 ~OMING--Single Family--Fmude Mae/Freddie Mac UNIFORM INSTRUMENT Fornt 3051 1/01 Page 8 of 8 WYUDEED LEGAL DESCRIPTION Lot 105 of Nordic Ranches Division No. 7, Lincoln County, Wyoming as described on the official plat thereof.