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HomeMy WebLinkAbout889986A~erRecordingRemm To: AVERY FINANCIAL GROUP INC 190 N WOODRUFF AVE IDAHO FALLS, IDAHO 83401 Loan Number: 999340486 889986 BOOK 5~" OpR PAGE [Space Above Tlds Lh~e For Recordh~g Data] MORTGAGE MIN: 1000525-9993404863-4 DEFINITIONS RECEIVED L't','COiI"! COL'!,ITY CLERK 0'..?; ?: ': ,i ','i ?:; , 9 · -: '.: ::i r! ,.I · :: 899 Words used in multiple sections of this document are defined below and other words are defined in ~ections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. ERICKSON, H S AND (A) "Security Instrument" means tiffs document, which is dated together wifl~ all Riders to tiffs document. 03) "Borrower"is JOHN C. ERICKSON AND BETTY WIFE HUSBAND AND WIFE Borrower is the mortgagor Under this Security Instrument. (C) "MERS" is Mortgage Electrmfic Registration Systems, Inc. MERS is a separate corporatio: solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee unde~ Instrument. MERS is organized and existing under the laws of Delaware, and has an address and tel of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender"is AVERY FINANCIAL GROUP INC Lenderis a CORPORATION and existing under the laws of IDAHO Lender's address is 190 N WOODRUFF AVE, IDAHO FALLS, IDAHO 83401 (E) "Note" means the promissory note signed by Borrower and dated MAY 9 The Note states that Borrower owes Lender NINETY THOUSAND AND 0 0 / 10 0 Dollars (U.S. $ 9 0, 0 0 0.0 0 ) plus interest. Borr0we~ to pay this debt in regular Periodic Payments and to pay the debt in full not later than JUNE 1 (F) "Property" means tl~e property that is described below under the heading "Transfer of Rights in (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late ch~ the Note, and all sums due under this Security Instrument, plus interest. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/O1 Page 1 of 12 1 that is acting · this Security 3hone number organized , 2003. has promised 2018 [he' Property." :ges due under DocMagic eb,.~Tr~o~ $00-649-1362 www[ docrnagic, corn Wy3051 l.mzm (1t) "Riders" means all Riders to this Security Instrument that are executed by Borrower. are to be executed by Borrower [check box as applicable]: The fi 700 fllowing Riders [] Adjustable Rate Rider [] Condonfinium Rider [] Second Home Rider [] Balloon Rider [] Planned Unit Development Rider [] Other(s) [specifyl [] 1-4 Family Rider [] Biweekly Payment 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 op~mons. (J) "Community Association Dues, Fees, " and Assessments means all dues, fees, assessmnts uno omer charges that are imposed on Borrower or the Property by a condominium association, homeowners associhtion or similar organization. (IQ "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telechonic instrument computer or magnenc tape so as to order, ~nstruct, 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, transl ers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of dalnages, or proce :ds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (il danmge to, or destruction of, the Property; (ii) condenumtion or other taking of all or any part of the Property; (iii conveyance in lieu of condenmation; or (iv) misrepresentations of, or omissions as to, the value and/or condition ~ f 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. §2601 et seq.) and it~ implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or a~y additional or successor legislation or regulation that governs the same subject ~natter. As used in this Security Instrument I ' "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrmnent. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, .~xtensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nonfinee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS! with power of sale, the lbllowing described property located in theJ . COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording urisdiction] SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A" . A.P.N. #: 12-3218-31-2-06-099.00 WYOMiNG-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/O1 Page 2of 12 DocMagic ~ aoo-~4m t $62 www. docmagic, corn Wy305 I2.mzm which currently has the address of 2 7 0 E. 7 TH AFTON , Wyoming AVENUE 83110 [Street] ("Pro 701 >erty Address"): [city] [Zip Code] / TOGETHER WiTH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of die property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in tlfis Security Instrument ad the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrowdr in tiffs Securitv Instrument, but, if necessary to comply with law or custom, MERS (as ' I , 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 ,a,n.d ~11 the Pr_operty; and to take any action required of Lender including, but not limited to, releasin~ and canceling mis Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the tight to mortgage, grant and convey the Property and that the Property is unencumbered, except for ~ncumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. / THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-u form covenants with limited variations by jurisdiction to constitute a uniform security instrument coveting real prdperty. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment char~es and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to SectiOn 3. PaYments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument 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 more of the following forms, as selectedby Lender: (a) cash; (b) inoney order; (c) certified ch~ck, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose depbsits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the NoteI 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 insufficient to bring the Loan ~urrent. Lender nmy accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights her.eunder or prejudice to its rights to refuse such payment or partial payments in the future, bdt Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Paymenl is art>lied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such ~napplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, sm h funds will be applied to die outstanding principal balance under the Note irmnediately prior to foreclosure. No offset or claim which Borrower nfight have now or in the future against Lender shall relieve Borrower from makin payments due under the Note and this Security Instrument or performing die covenants and agreements secured ~y this Security Instrument. 2. ApPlication of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due lnder the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such paymems shall be applied o each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late :harges, second to any other amounts due under tlfis Security Instrument, and then to reduce the principal balance o f the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment wirier inck des a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge~ . If WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/01 Page3 of 12 ~)ocMagic ~yi~ 800-64~-1362 w ww. docrnagic, corn Wy30513 .mzm O ?]L D B 7 0 2 more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. T D the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment, :harges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal du~ under die Note shall not extend or postpone the due date, or change die amount, of the Periodic Payments. 3. Funds for Escrow Items. BorroWer,shall p? to Lender on the day Periodic Payments a re due under the Note, until the Note is paid in full, a sum (die 'Funds ) to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or enct~mbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any a~d all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage I~urance premiums in accordance with the provisions of Section 10. These ~telns are called Escrow Items. At origination or at any nme dunng die term of the Loan, Lender nmy require that Conmmnity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of ampunts to be paid under this Section. Borrower shall pay Lender the Funds Ibr Escrow Items unless Lender. waives Borrower's obligation to pay the Funds for any or all Escrow Itmns. Lender nmy waive Borrower's obhgatmn m pay to Lender Funds for any or all Escrow Items at any time. Any such waiver ~nay only be in writing, n the even~ of such waiver, Borrower shall pay directly, when and where payable, the amounts 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 purposes be deemed to be a covenant and agreement contained in this Security Instrumeht, as the uhrase "covenant and agreement.. is used in Section 9. If Borrower is obligated to pay Escrow items directly, ~urst;ant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its righlts ~n~ler Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender a~iy such amouut. Lender may revoke die 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 sucl! amounts, that a 'e then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to ipply the Funds at the time specified under RESPA, and (b) not to exceed the xnaximum amount a lender can require under RESPA. Lender shall estinnate the amount of Funds due on the basis of current data and reasonable estinmtes of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in 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 pai 1 on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and L ruder can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, wit] lout 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 Borrower for die 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 t 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 makeup the deficiency in accordance with RESPA, but 1 no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly reft nd to Borrower any Funds held by Lender. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMagic~. 8oo-64~t362 Form 3051 1/01 Page 4 of 12 www. docma~Tic, corn Wy30514.mzm 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property Which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, 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 nmnner provided in Section 3. I Borrower shall promptly discharge any lien which has priority over this Security Instrument ~nless 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 et the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien c I while those proceedings are pending, but only until such proceedings are oncluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender ~nay give Borrower a notice identifying the lien. Within 10 days of the date on wlfich tha 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 eporting service used by Lender in cmmection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereaf :r erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and ~ny other hazards including, but not limited to, earthquakes and floods, for wlrich 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 du!]ng the term of the Loan. The insurance ~arrier providing the insurance shall be chosenby 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, leither: (a) a one- time charge Ibr flood zone determination, certification and tracking services; or (b) a One-time charge for flood zone deternfination and certification services and subsequent charges each thne remappings or similar charges occur which reasonably ~night 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 to purchase any particula} type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borro'ver, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and migh: provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained nfight significantly exceed the cost of insurance that Borrower could have obtained. Any an taunts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security In~ ;trument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, wi th 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 mortg4gee 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 prenfiunk~ and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, th~ Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as a~ additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. L proof of loss if not xnade promptly by Borrower. Unless Lender and Borrower otherwise agree insurance proceeds, whether or not the underlying insurance was required by Lender, shall be appli, or repair of the Property, if the restoration or repair is economically feasible and Lender's security During such repair and restoration period, Lender shall have the right to hold such insurance proce. 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 in a single payment or in a series of progress payments as the work is completed. Unlels an agreement is inade in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be ruder may make in writing, any :d to restoration is not lessened. :ds until Lender Wy30515.mzm WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/01 DocMagic ~ Page5 of 12 wu ~ 8o0 649-~362 w. docmagic, corn required to pay Borrower any interest or earnings on such proceeds. Fees/bt public adjusters, or oth¢r third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligatio~t of Borrower. If the restoration or repair is not ecouomically 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 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 carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will ~egin when the notice is given. In either event,, or if Lender acquires the Property under Section 22 or otherwise, Bolrruwer 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 righ! to any refund of unearned premiums paid by Borrower) under all insurauce policies covering the Property, insofarI as such rights are applicable to the coverage Of the Property. Lender may use the i~sm'ance proceeds either to repai~ or restore the Property or to pay amounts unpaid under the Note or dfis Security Instrument, whether or not then lue. 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 tbr at least one year after the date of occupancy, unless Lender otherwise agrees in vriting, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyo: ~d Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower sha~l not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not · Borrower is residing in the PrOperty, Borrower shall maintaiu the 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, Borrower shall promptly repair the Property if damaged to avoid further deterioration or dmnage. If insurance or condemnation proceeds are paid in connection with damage toI, or the taking of, the Property, Borrower shall be responsible tbr 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 or in a series of progress payments as the work is completed. If the insuran_c,e or conderm~ation proceeds arel not sufficient to repair or restore the Property, Borrower is not relieved of BorrOwer s obligation for the completionlof 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, durim, the Loan applichtion process, Borrower or any persons or entities acting at the direction of Borrower or with Borro~er's knowledge o~ consent gave materially false, misleading, orinaccurate information Or statements to Lender (or failed to provid~ Lender with material intbrmation) in cmmection with the Loan. Material representations include, but are n~t linfited to, representations concerning Borr0wer's occupancy of the Property as Borrower's principal residence. I 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 interestin the Property and/or rights under this Secu.rity Instrument (such as a proceeding in bankruptcy, probate, for condermmtion or/brfeiture, for enforcement of a hen which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has a~andoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value oflthe Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) pa.ying any sums · secured by a lien which has priority over this SecUrity Instrmnent; (b) appearing in court; and (c) paying reasonable attorneys' tees to protect its interest in the Property and/or rights under fids Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to entering the Property to ~nake repairs, change locks, replace or board up doors and windows, drain water from pi~es, eliminate bui~din~ or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/01 Page 6 of 12 DocMagic ~. 800-64~-1362 www. ~ocmagic. corn Wy30516.mzm 705 under this Section 9, Lender does. not have to do so and is not under any duty or obligation to do se 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 figs Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge uxfless Lender agrees to the merger in writing. ' 1 10. Mortgage Insurance. Il' Lender required Mortgage Insurance as a condition ofmaking the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, fu~ anv reason the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage i~ur~r ~at previ~'usly provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the prenfimns required to obtain coverage substantiall~ equivalent to the Mortgage Insurance previously iu effect, at a cost substantially equivalent to the cost to Borrower o~ the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substartfially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amoun~ 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, notwithstauding the fact that the Loan is ultimately paid in full, and Lender shall not ble retluired to my Borrower any interest or earnings on such loss reserve. Lender can no longer require loss res~rve~paymen~ (f Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by a~ 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 ma~ng the Loan and Borrower was required to make separately designated payments toward the premiunks for Moxtgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any x~ritten agreement between Borrower and Lender providing for such termination or until termination is required by ~pplicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain lo 5scs it may incur if Borrower does not repay the Loau 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, al ~d may enter into agreements with oilier parties that share or modify their risk, or reduce losses. These agreements ire on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, orany affiliate of any of the foregoing, may receive (directly or indirectly) amounts that deri{e from (or might be characterized as) ~a, portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer s risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the ~nsurer s risk m exchange for a share of the prexmums pard to the ~nsurer, the arrangement ~s often termed "captive reinsurance." Further: ' (a) Any such agreements will nOt affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) 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 i to receive certain disclosures, to request and obtain cancellation of the Mortgage Insuran :e, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insm that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are he and shall be paid to Lender. ~clude the right 'ance premiums reby assigned to WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/01 Page 7 of 12 Wy30517 .~rmn DocMagic elTclr~ax~ 8oo-649- ~ 362 wv~ w. docrnajlic, corn Wy30518.mzm 706 If the Property is damaged, such Miscellaneous Proceeds sba11 be applied to restoration o~ repair of the Property, if tl~ restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction!, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a singlt disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pa~ Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured t y 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 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 wlfich the fair arket value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater ti an the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, o]' loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument sl dl be reduced by the amount of the Miscellaneous Proceeds multiplied by the following tYaction: (a) the total amount of the sums secured irmnediately before the partial taking, destruction, or loss in value divided by (b) the fair marl value Of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property imanediately belbre the partial taking, destruction, or loss in value is 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. b L ~ If the Property is abaudoned by Borrower, or if, after notice y e ~der to Borrower that the ~pposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender witlfin 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be iix default if any action or proceeding, whether civil or criminal, is begun th~ t, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest i the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed wit_l}, a ruling tha :, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender s interest in fl te Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment 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. Burrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by fids Security Instrument grauted by Lender to Bolrrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Success!ors in Interest of Borrower. Lender shall not be required to coxmnence proceedings against any Successor in IntereSt of Borrower or to refuse to extend time for payment or otherwise modify amortization of the stuns 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 limitation, Lender's ~cceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than th, 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 coveru nts and agrees that Borrower's obligations and liabilitY shall be joint and several. However, any Borrower who co-sign this Security WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/O1 Page8 of 12 DocMagic ~j~ aoo-t~4 s- t 3e 2 www docmagic, corn 707 Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument 9nlY to mortgage, grant and convey the co-signer's interest iii the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's cork~ent. 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 Instru~nent. Borrower shall not be released from Borrower's obliga[ions and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and ~greements of this Security Irkstrument shall bind (except as provided in Section 20) and benefit the successors and a~signs of Lender,. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection2 with Borrower s I · 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 a ay 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 prohibitet by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets ~naximum loan-charges, and that law is finally h~te~ xeted 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 thc: permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refum led 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 prepayntent without any prepayment charge (whether 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 Ire trument must be in writing. Any notice to Borrower in connection with ttfis Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice addre s 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 change of address, then Borrower shall only report a ~hange of address through that specified procedure. There may be only one designated notice address under riffs SeCurity Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection I. with dfis Security Instrument shall not be deemed to. have been given to Lender until actually recmved'by Lender. If anY notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under Otis Security Instrument. I 16. GOverning Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Appli :able Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but ~ch sih:nce shall not be construed as a prohibition against agreement by contract. In the event that any provision or claus, of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provision of this Security Instrument or the Note wlfich can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and inclU~ le corresponding neuter words or words of the feminine 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 Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As usedin this Sectio 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited t0! those beneficial Wy30519.mzm WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/O1 Page 9 of 12 J~cMagic ~- ~ 800-64~- t 352 w ~, /w. docmagic, corn 708 nent, the intent interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agree 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 i~rm~ediate 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 1~ witlfin wlfich Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the ea~ liest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entr of a judgment enforcing this Security Instrument. 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 an~ 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 ihcurred for the of protecting Lender's interest in the Property and rights under this Security Instrument; anO purpose (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 &ashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or emity; or (d) Electronic Funds Transfer. Uponreinstatement by Borrower, this Security Instrumen and obligations secured hereby shall renmin fully effective as if no acceleration had occurred. However, this right reinstate shall not apply in the case of acceleration nnder Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial inte est in the Note (together with this Security Instrulnent) can be ,~old one or more times without prior notice to Borrowe :. A sale ~night result in a change in the entity (known as the Loan Servicer") that collects Periodic Paymeuts due under the Note and tiffs Security Instrument and performs other mortgage loan servicing obligations under the Not,*, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. 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 wlfich pay~nents should be nmdg and any other infornmtion RESPA 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 servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may connnence, join, or be joined to any judicial action (as either an individual litigant or the member ora class) that arises from the other paity's actions pursuant to this Security In}trument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Secm ity Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with tl.e 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 befor~ 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 acc :leration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take cr,rrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are ti ose substances ~: Sfiol~ ien5 ~ Sic ;; oXis; On;,hOa thz~ rd ~]uasr~ ;tl~en;; st,0 ~dO~l;;~ rn~Sl} uOi~l; ;; tde~ cbt ~, tSnxVl ~ ;e snnlt ~cni~ le sLaanWd ~l;dl-b ithcei df; ~Io v~ lna gti iSeubs ;tlr; Cn~Ss: WYOMiNG--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/O1 Page 1Oof 12 J~c. Magl'c ~. $00-649-t362 www. docrnagic, corn Wy~05110.mzm Wy30511Lmzm 709 materials containing asbestos or fornmldehyde, and radioactive materials; (b) "Environmental Law" means federal · I · laws and laws of the jurisdiction where the Property is located that relate to health, safety or enwronmental protection; (c) "Environmental .Cleanup" includes any response action, remedial action, or removal action, as' defined in Environmental Law; and (d) an "Environmental Condition" memos a condition that can cause, contribute to, or otherwise trigger an EnvirmLmental Cleanup. I 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 Envirmmaental 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, bdt not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand! lawsuit or other action by any governmental or regulate ry 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 linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous SubstAnce, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affect} the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any rivate party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessar Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Not/ting herel shall create any obligation on Lender for an Enviromnental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to ac :eleration 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 :o Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of th _' Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may re~luire immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable. attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notic~ 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 al expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured ~y 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 tel :ese this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for relea: ;ing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of th~ fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestear exemption laws of Wyoming. WYOMING--Single Family--Fannie Mae/Freddie Mae UNIFORM INSTRUMENT - MERS DocMagice~-w'~r~ $oo-649-1352 Form 3051 1/01 Page 11 of 12 w~vw. docrnagic, corn BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained Instrument and in any Rider executed by Borrower and recorded with it. Witness: State of Wyoming ) ) SS. County of LINCOLN ) 710 in this Security (Seal) ~ (Seal) -Borrower B ETT~]~ CKS ON -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower The foregoing instrument was acknowledged before me by ERICKSON this q¥~ day of ~/~/~ff ,'21~B Witness my hand and official seal. Witness: JOHN C. ERICKSON, 3ETTY ~ qSn~~ype Name (Seal) 'My commission expires: ~) 0 II e~ ~ '~r q) 209~ WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMagic~ 800-649-1362 Form 3051 1/01 Page 12 of 12 www!docmagic, com Wy305112.mzra EXHIBIT A Lot 16 of Block 36 of the Glen Kennington Etal Addit ~n to the Townsite of Alton, Lincoln County, Wyoming as described on the official plat thereof.