Loading...
HomeMy WebLinkAbout889909'i Return Toi EquiFirst Corporation Attn: Collateral M 500 Forest Point Circle Charlotte, NC 28273 Prepared By: Eunice Schwert 500 Forest Point Circle, Charlotte, NC 28273 02017743 8899 O9 BOOK~' '(-) PR PAGE [Space Above This Line For Recording Data] MORTGAGE MIN 10020010003098i6'214 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in thik document are also provided in Section 16. (A) "Security Instrument" means this document, which is datedMay 7, 2003 together with all Riders to this document. ' (B) "Borrower" is:,David Lomeli and Stephanie Marie L°meli-Mariani, h~sband and wife Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corp~)ration that is acting solely as a nominee for Lender and Lender's successors and assigns. 1VIERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. 309862 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS ~®-6g(wY) (0005).02 ~ Page 1 of I 5 Initial VMP MORTGAGE FORMS - (800)521-7291 - ~ Fo[m 3051 1/01 4i3 g (D) "Lender" is EquiFirst Corporation Lender is a Corporation organized and existing under the laws of North Carolina Lender's address is 500 Forest Point Circle, Charlotte, NC 28273 (E) "Note" means the promissory note signed by Borrower and datedMay 7, 2003 The Note states that Borrower owes Lender two hundred sixty-one thousand eight hundred and 00/100 Dollars (U.S. $ 261,800.00 ) plus interest. Borrower has promised to pay this debt in r~gular Periodic Payments and to pay the debt in full not later than tqay 17, 2033 (F) "ProPerty" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~ Condominium Rider [~ Second Home Rider [~ Balloon Rider ~-~ Planned Unit Development Rider ~ 1-4 Family Rider [-~ VA Rider [-~ Biweekly Payment Rider [~ Other(s) [specify] Arbitration Rider i ARM Floor/Prepay Rider (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are in]posed on Borrower or the Property by a condominium associationI homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction ioriginated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated i clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or iproceeds 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 Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 ei seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended /'rom time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally rellated mortgage loan" under RESPA. 309862 Initials: (~-6A(WY) (0005).02 Page 2 of 15 051 1/01 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Prope:.Xy, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY i This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals,i extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements~ under th;s Security Instrument and the Note. For this pbrpose, Borrower does hereby mortgage, g~ant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to ithe successors and assigns of MERS, with power of sale, the following described property located in the County of Lincoln ! : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] See Attached Exhibit A Parcel ID Number: 36191530038600 which currently has the address of Lot 12 Ashley Drive ! [Street] Alpine [City] , Wyoming 83128 [Zip Code] ("Property Address "): 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 Instrument as the "Property." Borrower understands and agrees that MERS holds i only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comPly with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceliag this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Properly against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use anld non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrumeqt covering real property. 309862 Initials: ~-6A(WY) (00051.02 Page3of 15 U~--~ ~"",~orm 3051 1/01 442 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, · shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. BorroWer's obligation to make such payments and to provide receipts shall for all purpose~s be deemed to be a covenant and agreement contained in this Security Instrument, 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 may exercise its rights 2nder Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to L'ender any such amount. 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 hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. 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 s6 insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the 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 to make such a charge. Unless an agreement is made in writing or ApPlicable Law requires interest to be paid on the Funds, Lender'shall not be required tS 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. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to BorroWer for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If 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 amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall p~omptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leaseho!d payments or ground rents on the Property, if any, and Community Association Dues, Fees, 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 Inltrument unless BorroWer: (a) agrees in writing to the payment of the obligation secured by the lien in a manner, acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lende? 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 Security Instrument, Lender may give Borrower a notice identifying the 309862 (~-6AlWY) (0005L02 Initials:'~ Page 5 of 15 ~ Frym 3051 1/01 , 43 lien. Within 10 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 this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or repOrting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's 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: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services 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 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 t6 purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard :or liability and might provide greater or lesser coverage than was previously in effect. 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 iSection 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise requi~ed by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortg!age clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier 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 economicaily 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 opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration iii a single paymen! or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third partie~, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation 6f 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 Instrument, whether or not then due, with 309862 Initials: , (~I~-6A(WY) (ooos).02 Page 6 of 15 1101 444 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order iprovided 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 carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given.. In either event, or if Lender acquires the IProperty under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to[ any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are apphcable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore ithe Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy!, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commi{ waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain ~he Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, iBorrower shall promptly rePair the Property if damaged to avoid further deterioration or damage. !f insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment br in a series of progress payments as the work is completed. If the insurance or condemnation proceeds a~e not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for th~ completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8, Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's 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 this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to ehforce 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 rights unde? this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying .any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (~)~-6A(WY) Iooo5).o2 Page 7 of 15 U~"~'~~I 1/01 445 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is hot 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 futilities turned on or off. Although Lender may take action Under this Section 9, Lender does not have to dO so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and 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 prqvisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing· 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance cgverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender 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 for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, iuntil Lender's · requirement for Mortgage Insurance ends in 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 c~rtain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage 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 modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other part~. (or parties) to these agreements. These agreements may require the mortgage insurer to make payments US~lng 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,i any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgagle Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If Such agreement , i f provide -1Xs that an affiliate of Lender takes a share of the insurer s risk in exchange for a share o premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Furthen (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any r~fund. 309862 '~ : InlBals ~ (~-6A(WY) (ooo5).o2 Page 8 of 15 1/01 the 446 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law! These rights may include the right to receive certain disclosures, to request and obtain cancelilation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/(r to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination, l 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 and Lender's security i~ not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has bee~ 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 aa the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to b~ 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 ~ecurity would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the i Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. ' In: the event of a partial taking, destruction, or loss in value of the Property in which ihe fair market value o:f the Property inanediately before the partial taking, destruction, or loss in valueiis equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured ~mmediately before the partial taking, destruction, or loss in value divided by (b) the fair market value o( the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. InI the event of a partial taking, destruction, or loss in value of the Property in which [he fair market value of the Property immediately before the partial taking, destruction, or loss in value il less than the amount of the sums secured immediately before the partial taking, destruction, or loss in: value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds 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 Party (as defined in the next sentence) offers to make an award to settle a clmm for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lende~ 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 lthe third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. BOrrower shall be in default if any action or proceeding, whether civil or criminal, is ibegun that, in Lender's judgment, could result in forfeiture of the Property or other material impairmeht of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a idefault 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 lother material impairment of Lender's interest in the Property or rights under this Security Instrument. T!]e proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest ih 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. 309862 Initials (~-6A(WY) (0005).02 Page 9 of 15 I 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made bY the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercisifig any right or remedy including, without limitation, Lender's acceptance of payments from third persolns, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not bela waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. BorroWer covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any !Borrower who co-signs this SecuritY Instrument but does not execute the Note (a "co-signer"): (a) is Co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Ngte without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower[ who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not b~ released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to ~such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in 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 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 may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finall~ interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces, principal, the reduction will be treated as a partial prepayment without any prepayment charge (w.hether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund 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. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually deliveredi to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice tO all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower]shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's .I change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any Bne time. Any I , 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 been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement unde} this Security Instrument. 309862 Initials: (~-6A(WY) Iooo51.o2 Page10of15 ~/ ,~_..~orrn 3051 1/01 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 Properly 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 implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement iby contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Not~ which can be given effect without the conflicting provision. As used in this Security Instrument: (a) Words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular §hall 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 Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or benefmml interest in the Property, ~nclu&ng, Ibut not limited to, those beneficial interests transferred in a bond for deed, 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 in Borrower is sold or transferred) without Lender's prior written consent, Lender may 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. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pelrmitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certiin conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Properly pursuant to any power of s&le contained in this Security Instrument; (b) such other period as Applicable Law might specify for thei termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Ins{rument. 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 acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses 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. 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 of Grievance. The Note or a p~rtial interest in the Note (together with this Security Instrument) can be sold one or more times withoutI 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 performs othe~ mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. The~e also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other ~nformat~on RESPA 309862 Initials: ~--6A(WY) (ooos).o2 Page l l of ls 3051 1/01 449 requires in Connection with a 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 loan servic!ng 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) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or anY duty 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 breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time Period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to ~ake corrective action provisions of this Section 20. 2i. Hazardous Substances. As used in this Section 21: (a)"Hazardous Substandes' are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental 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; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Propertyi is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, bUt not limited to, hazardous substances in consume~ products). BOrrower shall promptly give Lender written notice of (a) any investigation, claim, d~mand, lawsuit or other action by any governmental or regulatory agency or private party involving the PrOperty and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release :of any Hazardous Substance, and (c) any condition caused by the presence, use 6r release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns: or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly tak~ all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any l obligation on Lender for an Environmental Cleanup. 309862 (~-6A(WY) (0005).o2 Page 12of 15 Initials:~~/01 NON-UNIPORM COVENANTS. Borrower and Lender further covenant and agree as follows: 221 Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given'to Borrower, by which the default must be cured; and (d) that failurie to cure the default on or before the date specified in the notice may result in acceleration of the sumS secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is noi cured on or before the date specified in the notice, Lender at its option may require immediate paymlent 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 !o collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but ngt limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to forecloseito Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. iLender shall publish the notice of sale, and the Property shall be sold in the manner prescribed bY Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but no! limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) 9ny excess to the person or persons legally entitled to it. 231. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. 309862 (~-6A(WY) Page 13 of 1 5 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: ~ (Seal) ~------~>'5'~avid ~~ . -Borrower 8tephan±e 1,{ar±e ~mol±-lqarian±-Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 309862 (~6AIWY) (0005).02 (Seal) -Borrower Page14of 15 Form 3051 (Seal) -Borrower 1/01 STATE OF WYOMING, The foregoing instrument was acknowledged before me this by David Lomeli & Stephanie ~arie Lomeli-Mariani 452 C6unty ss: My Commission Expires: Notary Public 309862 (~-6A(WY) (0005) 02 Page 15 of 15 Initials: 3051 1/01 !4. 5 3 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 7th day of May, 2003 , and is incorporated in~o and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date, given by the undersigned (the "Borrower") to secure Borrdwer's Note to EquiFirst Corporation (the "Lender") of the same date and covering the Property described in the Security ' Instrument and located at: Lot 12 Ashley Drive, Alpine, WY 83128 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in (the ":Declaration"). The Property is a part of a planned unit Trail Creek Subdivision [Name of Planned Unit Development] developmeni known as (the "PUD"). The Property also includes Borrower's interest in the hOmeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Associhtion") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's ConstitUent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promPtly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. ' 309862 MULTISTATE PUD RIDER-Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 1 of 3 Initiats: ~7~ ---~ (~7R (0008) VMP MORTGAGE FORMS -(800)521-7291 309862 B. Property Insurance. So long as the Owners Association maintains, with a gene]ally accepted ~nsurance carrier a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and whmh prowdes insurance coverage in the amounts 0nclud~ng deducnble levels), for the! periods, and against loss by fire, hazards included within the term "extended coverage," and any dther hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the ye!arly premium installments for property insurance on the Property; and (ii) Borrower's obligation undel Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided bY the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In !he event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss tO the Property, Or to common areas and facilities of the PUD, any proceeds payable toI Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums slecured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable ito insure that the Owners Association maintains a public liability insurance policy acceptable, in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all o'r any part df the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnatign, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums Secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and With Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment or termination required by law in the case iof substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management Of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lehder may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of p amounts shall bear interest from the date of disbursement at the Note rate and shall be interest, upon notice from Lender to Borrower requesting payment. 309862 (~TR (0008) Page 2 of 3 ayment, these )ayable, with Initials:~ ~ --~ <~ m 3150 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this PUD Rider. (Seal) -Borrower Stephanie Marie ~ -Borrower Lomeli-Mariani (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 309862 (~<~7 R (0008) Page 3 of 3 Form 3150 1/01 ; ARBITRATION RIDER ~ : (To Be Recorded Together with Security Instrument) ~ THIS RIDER is made this 7th day of May 2003 and is incorporated into and shall be ddemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of thd same date given by the undersigned (the "Borrower") to secure Borrower's Note (the "Note") to EquiFir~t Corporation (the "Lender") of the same date and covering the property described in the Security Instrument and located at Lot 12 Ashley Drive, Alph~e, WY 83128 (Property Address) As used in this Rider, the term "Lender" includes Lender's successors and assigns and the Icompany servicing the Note on Lender's behalf. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: ARBITRATION OF DISPUTES. Any claim, dispute or controversy (whether iff contract, tort, or otherwise) arising from or related to the loan evidenced by the Note, including but not limited to all statutory claims, any claim, dispute or controversy that may arise out of or is based on the relationship~ which result from the Borrower's application to the lender for the loan, the closing of the loan, or the servicingi of the loan, or any dispute or controversy over the applicability or enforceability of this arbitration agreement or the entire agreement between Borrower and Lender (collectively "claim"), shall be resolved, upon thk election of either Borrower or Lender, by binding arbitration, and not by court action, except as provided unde~ "Exclusions from Arbitration" below. This arbitratiOn agreement is made pursuant to a transaction involving interstate commerce, and shall be governed by the Federal Arbitration Act (9 U.S.C. Sections 1-16) and the Code of Procedfre of the National Arbitration Forum in effect at the time a claim is filed. Copies of the arbitration rules land forms can be obtained and any claims can be filed at any National Arbitration Forum office, at P.O. Box 50191 Minneapolis, I ' MN 55404, on the World Wide Web at www.arb-forum.com or by calling (800) 474-2371. This agreement to arbitrate shall apply no matter by whom or against whom a claim is made. Any election to arbitrate may be made at any time, regardless of whether a lawsuit has been filed or not, and isuch party making the election may bring a motion in any court having jurisdiction to compel arbitration of any claim and/or to stay the litigation of any claim pending arbitration. Any participatory arbitration hearing will take place in the federal judicial district of the Borrower's residence, unless a different location is agreed tO by Borrower and Lender. At Borrower's request, Lender will advance the first $150 of the filing and hearingl fees for any claim which the BOrrower may file against the Lender. The arbitrator will decide which party iwill ultimately be responsible for paying these fees. All claims between the Borrower and Lender shall be arbitrated individually, and shall not be subject to being joined or combined in any proceeding with any claims of ahy persons, or class of persons other than Borrower or Lender. The arbitrator shall apply relevant law and provid~ written, reasoned findings of fact and conclusions of law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. , EXCLUSIONS FROM ARBITRATION. This arbitration agreement shall not apply to rights or obligations under the loan documents that allow the Lender to foreclose or otherwise tlake possession of property securing the loan, including repossession, foreclose or unlawful detainer. Nor shall it be construed to prevent any party's use of bankruptcy or judicial foreclosure. No provision of this agreement shall limit the right of the Borrower to exercise Borrower's rights under the Uniform Covenant labeled "Borrower's Right to reinstate". Subject to these limitations, this arbitration agreement will survive the pay-off of fhe loan. SEVERABILITY. If the arbitrator or any court determines that one or more termsl of this arbitration agreement or the arbitration Code are unenforceable, such determination shall not imPair or affect the enforceability of the other terms of this arbitration agreement or the arbitration Code. 309862 EF045 (5/02) Page 1 of 2 NOTICE: WHEN YOU SION THIS ARBITRATION RIDER, YOU ~ AOP,_EE1-NG THAT EVERY DISPUTE DESCRIBED ABOVE MAY BE DECIDED EXCLUSIVELY BY ARBITRATION. YOU AI~ GIVYNO UP P, JGHTS YOU MIGHT HAVE TO LITIGATE THOSE CLAIMS AND DISPUTES I~ A COURT OR JURY TR2AL OR TO PARTICIPATE AS A R_EPRESENTATIVE OR MEMBER OF ANY CLASS OF CLAIMANTS YN CONNECTION WITH A CLAIM OR DISPUTE. !DISCOVERY IN ARBIT1LatTION PROCEEDINGS IS LIMITED IN THE MANNER PROVIDED BY THIS AOREEMENT AND THE RULES OF ARBITtkATION. THE ARBITP,~TOR'S DECISION WILL GENERALLy BE FINAL AND Bi-N-DING. OTHER PdOHTS THAT YOU WOULD HAVE 1~ YOU WENT TO COURT MAY ALSO NOT BE AVAILABLE IN ARBITtkATION. IT IS IMPORTANT THAT YOU READ THIS ENTIRE ARBIT~TION AOR~EEMENT CAREFULLY BEFOP~ SIGNING THIS AI~BITtkATION PdDER. BY SIGNING BELOW, Borrower accepts and agrees to the provisions contained in thi~ -'""'D-'~ L~)meli ~ ' -- Stel~hanie Marie Lome~-Mariani Rider. 309862 EF0452 (5/02) Page 2 of 2 458 ADJUSTABLE RATE INTEREST RATE FLOOR &i PREPAYMENT PENALTY Rider to Security Instrument (To Be Recorded Together with Security Instrument) This ADJUSTABLE INTEREST RATE FLOOR & PREPAYMENT PENALTY RIDER (the "Rider") is made this 7th day of May, 2003, and amends the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") dated the same date and given by the person(s) who signs below (the "Borrower(s)") to EquiFirst Corporation (thel "Lender") to secure prepayment of a Note in the amount of U.S. $ 261,800.00. In addition to the agreements and provisions made in the Note and the Security Instrument, and notwithstanding any provisions to the conta'ary contained in said Note or the Security Instrument, both the Borrower(s) ar d the Lender fmlher agree as follows ADJUSTABLE INTEREST RATE FLOOR This loan has an Interest Rate "Floor" which will limit the amount the Interest Rate can decrease! Regardless of any changes in the index, the Interest Rate during the term of this loan will never be less than the initial Interest Rate provided for in Section 2 of the Note. PREPAYMENT PENALTY IfI prepay this loan in full within 2 year(s) from the date of this loan, I agree to pay a prepayment penalty in an amount equal to 6.00% of the balance of the loan outstanding on the date of prepayment. This amount, known as a prepayment penalty, will be in addition to any other amounts I may owe under the provisions of the Note or the Security Instrument that secures the Note. If I make a prepayment in full on or after the 2nd anniversary date of the Note, the Note Holder will impose no prepayment penalty, alty. David Lomeli StePhanie Marie Lomeli-Mariani i 309862 EF058 (05/02) ADJUSTABLE RATE RIDER to Security Instrument (LIBOR 6 Month Index - As Published in Tl, e Wall Street Journal - Rate Caps)i (To Be Recorded Together with Security Instrument) THIS ADJUSTABLE RATE RIDER is made this 7th day of May, 2003 and incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument"l of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to EquiFirst Corporation (the "Lender") of the same date and covering the property described in the Security Instrument and located at: Lot 12 Ashley Drive, Alpine, WY 83128 (property address) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM AND MINIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 6.175 %. The Note provides for changes in the interest rate and the monthly payment as follows: (A) Change Dates The interest rate I will pay may change on May 17, 2005 and on that day everyisixth month : thereafter. Each date on which my interest rate could change is called a "Change Date". 01) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The I · "Index" is the average of interbank offered rates for six-month U.S. dollar-denormnated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month is which the Change Date occurs is the "Current Index." I If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choicei (C) Calculation of Changes : Before each Change Date, The Note Holder will calculate my new interest rate by adding 5.775 percentage points (5.775 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subjeclt to the limits stated in Section 4(D) below, this rounded amount will be my interest rate until th9 next Change Date. ~ The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. Thel result of this calculation will be the new amount of my monthly payment. ~ (D) Limits on Interest Rate Changes i The interest rate I am required to pay at the first Change Date will not be greater ihan 9.175% or less than 6.175% . Thereafter, my interest rate will never be increased or decrelased on any single Change Date by more than one percentage point(s) (1.00%) the rate of interest I have been paying for the preceding six months. My interest rate will never be greater than 12.175 % or less than the initial interest rate provided for in Section 2 of this Note. 309862 EF0611 (05/02) Page 1 of 2 4 GO (E) Effective Date of Changes ~ My new interest rate will become effective on each Change Date. I will p~y the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. ~ (F) Notice of Changes i The Note Holder will deliver or mail to me a notice of any changes in my new interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given me and also thb title I - and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF TItE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 17 of the Security Instrument is amended to read as follows: Transfer of Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person), without Lender's priorwritten' consent, Lender~ may, at its option, require immediate payment in full of all sums secured by this Security InStrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law! as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Borrower cafises to be submitted to Lender information required by Lender to evaluate the intended transferee as if a hew loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreemelnt in this Security Instrument is acceptable to Lender. ' To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates to the transferee to keep all the promises and agreements made in the Note and in the Security Instrument. Borrower will continue to be bbligated under the Note and this Security Instrument unless Lender releases Borrower in writing. ! If Lender exercises the Option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borroxver must pay all sums secured by this i Security h~stmment. 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. David L"6'~T~~ 309862 EF0612 (5/02) Page 2 of 2 Attached Legal Description Exhibit "A" Lot 12 Trail Creek Subdivision, Lincoln County, Wyoming, according to that plat filed April 3, 2002 in the Office of the Lincoln County Clerk as Plat No. 196F.