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HomeMy WebLinkAbout890012WHEN RECORDED, MAIL TO: UTAH POWER & LIGHT EMPLOYEES' CREDIT UNION 1407 W NORTH TEMPLE ~ C~ SALT LAKE CITY, UTAH 84116 ' ' This Instrument was prepared by: UTAH POWER & LIGHT EMPLOYEES' CREDIT UNION 1407 W NORTH TEMPLE SALT LAKE CITY, UTAH 84116 801-220-4180 Loan Number: 92180-1-0016 Order Number: FA 10021 i2 BOOK '~"~ ()PR PAGE 798 (Space Above This Line For Recording Data) MORTGAGE REcEIvED Lib I ''~ r5 I ~,1 ,,~ ,,'~vL ~ COl!r,!Ty CLERK WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 1 of 9 IDS, Inc, - (800) 554-1872 rs~ 3051 1/01 Borrower(s) Initial G(~]) DEFINITIONS Words used in multiple sections of this document are def'med below and other words are de£med in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage 0fwords used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated May 7, 2003, together with all Riders to this document. Husbanff aqd ife (B) "Borrower" is DONALD I. BISHOP AND CHARLENE BISHOP . Borrower Is thee mortgagor under this Security Instrument. (C) "Lender" is UTAH POWER & LIGHT EMPLOYEES' CREDIT UNION, organized and existing under the laws of UTAH. Lender's address is 1407 W NORTH TEMPLE, SALT LAKE CITY, UTAH 84116. l.ender is the mortgagee under this Security Instrument. t (D) "Note" means the promissory note signed by Borrower and dated May 7, 2003. The No ,e states that Borrower owes Lender SIXTY- THOUSAND and no/100 Dollars (U.S. $60,000.00) plus interest. Borrower has promised tb pay this debt in regular Periodic Payments and to pay the debt in full not later than June 1, 2018. / (E) "Property" means the property that is described below under the heading "Transfer oI Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and Ilate charges due Under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. Yhe 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 [] VA Rider [] 1-4 Family Rider [] Biweekly Payment Rider [] Other (Specify) - (H) "Applicable Law" means all controlling applicable federal, state and local statutes, reg, dations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judici al opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessn lents and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, compu :er, 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 learinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or de struction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment o~ or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) 799 ud its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or sul:cessor 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 reh ted mortgage loan" under RESPA. title to the Pro lc- whether or n t th t (P) "Succ, essor in Interest of Borrower" means any party that has taken p ny, o a parry as assumea Borrower s obligations under the Note and/or this Security Instrument.TRANSFER OF RIGHTS 1N THE PROPERTY w This Security Instrument secures to Lender: (i) the repayment of the Loan, and all rene al. exte sions 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 Lender and Lender's successors and assigns, with power of sale, the following described property located in the County of LINCOLN: Lot 7 of Block 8 of the lincoln Heights 4th Subdivision to the Town of Kern merer, I_ incoln County, Wyoming as described on the official plate thereof. Parcel Identification Number: 23-2-05-062.00 which currently has the address of: 1131 7TH WEST AvENuE KEMMERER, WYOMING 83101 ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, .md all easements, appurtenances, and fuctures 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 COVENANTS that Borrower is lawfully seized 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 fif 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 u!e and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. · UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Lale Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and 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 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 whos~ deposits 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 Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender ma~ return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may acceptlany payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the furore, but Lender is not obligated to apply such payments at the time such payments are hccepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes 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, such funds will be applied to the ~)utstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in th~~ future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this by Lender shall be applied in the following order of priority: (a) interest due under the Note; due under Section 3. Such payments shall be applied to each Periodic Payment in the on amounts shall be applied first to late charges, second to any other amounts due under this principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment w late charge due, the payment may be applied to the delinquent payment and the late ch~ outstanding, Lender may apply any payment received from Borrower to the repayment of th each payment can be paid in full. To the extent that any excess exists after the payment i~ Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayrr charges and then as described in the Note. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 2 of 9 IDS. Inc. - (800} 554-1872 ection 2, all payments accepted and applied ~) principal due under the Note; (c) mounts ler in which it became due. Any remaining Security Instrument, and then to reduce the hich includes a sufficient amount to pay any · ge. If more than one Periodic Payment is Periodic Payments if, and to the extent that, applied to the full payment of one or more ents shall be applied first to any prepayment  3051 1/01 Borrower(s) Initials ~.J ~ 800 Any application of payments, insurance proceeds, or Miscellaneous prOceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Es,c, row Items. Borrower shall pay to Lender on the day Periodic Pa)ments are due under the Note, until the Note is paid in full, a sum (the Funds") to provide for payment of amounts due for: (a) taxes and ~ssessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and !d) ~ortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance prem~um~ m accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community 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 amounts to be paid under this SectiOn. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has be n wmved by Lender and, ff Lender reqmres, shall furnmh to Lender receipts ewdencmg such payment within such tune 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 Instrument, as the phrase "covenant and hgreement' is used in Section 9 If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the lamount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notme given m accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then reqmred under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to p~nnit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require un4er 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 so insured) or in any Federal Home Loax~ 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 applyine the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds anc~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 to pay Borrower any interest or earnings on the FundsI 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. I If there is a surplus of Funds held in escrow, as de£med 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 necessa~ 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 defmed under RESPA, Lender shall notify Borrower as required by RESPAi 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 promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, f'mes, 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 manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument 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 performin, g such agreement; (b) contests the lien in good faith by, or defends against enforcement ofthellien in, legal proceedings which in Lender s opinion operate to prevent the enforcement of the lien while those proceedings are pending, b~t only until such proceedings are concluded; 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 may give Borrower a notice identifying the 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 £~re, 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 amofints (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences c4n 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 connectio~ with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge f( flood zone determination and certification WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 3 of 9 IDS, Inc. - (800) 554-1872 '~051 1101 Borrower(s) Initials __M.x~_J Q 1,~ services and subsequent charges each time remappings or similar changes occur which re certification. Borrower shall also be responsible for the payment of any fees imposed by ti in connection with the review of any flood zone determination resulting from an objection If Borrower fails to maintain any of the coverages described above, Lender may and Borrower's expense. Lender is under no obligation to purchase any particular type or m shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Pro any risk, hazard or liability and might provide greater or lesser coverage than was previous 801 ~sonably might affect such determination or te Federal Emergency Management Agency by Borrower. brain insurance coverage, at Lender's option aount of coverage. Therefore, such coverage ~erty, or the contents of the Property, against ly in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insuran :e that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate fi:om the date of disbursement and shall be payabl~ with such interest, upon notice fi-om Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be ~bject to Lender,s right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee an([/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shal promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not o[herwise required:by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage 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 o[ the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an 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 disbm se proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agr '~ment is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pa Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be )aid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible Dr Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whethe~ 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 fi'om Lender that the insurance carder has offered to settl~ a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights tolany insurance prOceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and Co) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or r6store the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower' principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be ~nreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Bon'ower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Biorrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property fi:om 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, Bcrrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds re paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property )nly if Lender has:released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment m in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restr re the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Prop :n'y. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower noti.:e at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be i~, default if, during the Loan i~pplication process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower s knowledge or consent gax e materially falsei 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 WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT .~.~ 3051 1/01 Page 4 of 9 IDS, Inc. - (800) 554-1872 Borrower(s) Initials condemnation or forfeRure, for enforcement of a lien which may attain priorRy over thi: Security Instrument or to enforce 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 under this Security · · .I . 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 lmnted to: (a) paying any sums secured by a hen · I ~ which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable 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 not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water fi.om pipes, eliminate building or other code violations or dangerous conditions, and havre utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. I Any amounts disbursed by Lender under this Section 9 shall become additionalI debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate fi.om the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment· I ' . If this Security Instrument is on a leasehold, Borrower shall comply with all theI provisions of the lease· Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease· Borrower shall not, without the express written consent of Lender, alter or amend the ground 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~f 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 fi.om 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 payIthe 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 coverage is not available, Borrower shall continue to pay to Lender the amount of ihe separately designated payments that were due when the insurance coverage ceased to be in effect· Lender will accept, use and retain th~se 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, Borrow,er shall pay the premiums requi]ed to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender s requirementI for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination ar until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance· I : Mortgage insurers evaluate their total risk on all such insurance in force fi.om timelto 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 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 nay include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, a~y 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 Mortgage Insurance, in exchange for sharing or modifying the n ortgage insurer's risk, or reducing losses· If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exc~ ange for a share of the premiums paid to the insurer, the arrangement is 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 6we 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 include lhe right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance. To have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of MiscellaneoUs Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. I If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repmr ~s economically feasible and Lender's security is not lessened· During such repair ~md 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 prc mptly. Lender may pay for the repairs and restoration ina single disbursement or in a series of progress payments as the work is compl~ ~'ted. 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 pay Borrower any interest or earnings on such Miscellaneous Proceeds· If the restoration or repair is not economically feasible or Lender's security would be WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~m 3051 1/01 Page 5 of 9 ~ ~2 IDS, Inc. - (800) 554-1872 Borrower(s) Initial 8O3 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 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 the fair market value of the Property immediately before the partial taking, destruction, or loss in value is 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 tt~e Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. I In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amountlof the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in Iwriting, 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 B~rrower, or if, after notice by Lender to Borrower that the Opposing Party (as def'med in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes BorrOwer Miscellaneous Proceeds or the party against whom Borrower has a right of actmn m regard to Miscellaneous Proceeds. BorroWer shall be in default if any action or proceeding whether civil or criminal is beoun that in Lender's iudo~ent could result in forfeiture of the Property or other material impairment of ~ender's intdrest in the Pr.ol~erty o~ rights 'under this Sec~rity~"~nstr'ument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or ,rights under this Security Instrument. The proceeds of any awar.d 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. Borrower Not Released; Forbearance By Lender Not a Waiver. Extensio~ 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 BorrowerJ Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for p!ayment 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 exercising any right or remedy including, without limitation, Lender s acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. / 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a .......... ' · , ' ' co-s~gner ): (a) is co-s~gnmg th~s Security Instrument only to mortgage, gragt and convey the co-signer s interest m 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 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 be released from Borrower's obligations and liability under this Securlty Instrument unless Lender agrees to sucl~ 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~onnection 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 finally interpreted so that the interest or other oan charges collected or to be collected m 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 ~efund 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 (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. VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 6 of 9 IDS, Inc. - (800) 554-1872 Borrower(s) Initials 8O4 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 givenI to Borrower when mailed by first class mail or when actually delivered 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 b~ the Property Address unless Borrower has designated a substitute notice address by notice to L,ender. 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 change of address through that specified procedure. There may be only one designated notice address under ~is Securlty 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 addres.~ 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 Instrumefit is also required under Applicable Law, the · I Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. / 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or 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 by 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 Note which can.be given effect without the conflicting provision. As used in this Security InstrUment: (a) words of the masculine gender shall mean and include corresponding neuter words or I · words of the feminine gender; (b) words in the singular shall mean and include the plural and v~ce 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 thi! Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but 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 Itransfer of title by Borrower at a future date to a purchaser. I 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 requke 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. The If Lender exercises this option, Lender shall give Borrower notice of acceleration, 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 permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certah: 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 Property pursuant to any power of sale contained in this Security Instrument; (b) such other perio :I as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Sec urity Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instmnlent 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 Instrumentl 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 J sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) treasurer's check or cashier's check, provided any such check is drawn upon an institution wi instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrow secured hereby shall remain fully effective as if no acceleration had occurred. However, thi~ of acceleration under Section 18. equire that Borrower pay such reinstatement honey order; (c) certified check, bank check, ose deposits are insured by a federal agency, gr, this Security Instrument and obligations right to reinstate shall not apply in the case 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (knoWn as th.e ~'Loan .Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servmmg obhgations under the Note, this Security Instrument, and Applicable Law. There alio 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 information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold affd thereafter the LOan is ~erviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to BCrrower 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 a~tion (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 / VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 7 of 9 IDS, Inc. - (800) 554-1872 Borrower(s) Initials pa~O, (with such notice given in compliance with the requkements of Sectio~ ] 5) oE suc~ al]~ ~d breac~ ~ a~orded th~ other p~ a reaso~ab]~ ~edo~ a~er the giv~g oEsuc~ ~otice to ta~e co~ecfiv~ actiom I~Ap~licab]~ ~w ~rovi~es ~ t~ per]od ~ic~ must before ce~a~ action can be taken, that t~e period will be deemed to be reasonable for pu~oses of this paragraph. The notice of acceleration ~d oppo~ni~ to c~e given to Bo~ower pursuant to Section 22 and the notice of acceleration given to Bo~ower p~su~t to Section 18 shall be deemed to satis~ the notice and oppo~ni~ to,take, co~ective actio¢'/"pr°visi°ns of this section 20. 21. Hazardous Substances. As used ~ this Section 21: (a) Hazardous Subst~ces ' ~e those substances deffmed as toxic or . haz~dous subst~ces, pollut~ts, or wastes by Envkomental Law ~d ~e follow~g substances: g~ol~e, kerosene, o~er fla~able or toxic pe~ole~ produc~, tomc pesticides and herbtc~des, volatde solvents, materials conta~g asbestos or fo~aldehyde, ~d radioactive materials; (b) Envkomental Law" means federal laws and laws of the jurisdiction wher6 the Prope~ is located that relate to health, safeW or envkomental protection; (c) "Envko~ental Cleanup" ~cludes ~y response a :tion, remedial action, or removal action, as deffmed ~ Envkomental Law; and (d) ~ "Envkomental Condition" means a condition ~at c~ cause, con~ibute to, or othe~ise ~igger an Envkomental Cleanup. Bo~ower shall not cause or pe~it the presence, use, disposal, storage, or release of any Hazardous Substances, or t~eaten to release any Hazardous Substances, on or ~ the Prope~. Bo~ower shall not do, nor allo~ anyone else to do, ~h~g affect~g the Prope~ (a) that is ~ violation of any Envkonmental Law, (b) which creates ~ Envkomental Condition, or (c) which, due to the presence, use, or release of a H~dous Subst~ce, creates a condition ~at adversely affecB the value of~e Prope~. ~e preced~g ~o sentences shall not apply to the presence, use, or storage on the Prope~ of small quantitie of Hazardous Substances that are generally recognized to be appropriate to no~al residential uses and to ma~tenance of the Prope~ (~clud~g, but not l~ited to, haz~dous Substances ~ consumer products). Bo~ower shall promptly give Lender wri~en notice of (a) ~y ~vestigation, cla ~, demand, lawsuit or other action by any gove~ental or regulato~ agency or private pa~ ~volv~g the Prope~ ~d ~y H~do~ ~s Substance or Envkomental Law of which Bo~ower has actual ~owledge, (b) any Envkomental Condition, ~clud~g but not l~ite d to, any spill~g, leak~g, discharge, release or t~eat of release of any Hazardous Substance, and (c) ~y condition caused by the presence, use or release of a Hazardous' Substance which adversely affects the value of the Prope~. IfBo~ower le~s, or is notified by any ~ove~ental or regulatou authori~, or any private pa~, that any removal or other remediation of any Ha~rdous Substance affect~g the Prope~ is necess~, Bo~ower shall promptly rake all necess~ remedial actions ~ accord~ce with Envkomental Law. No~mg hereto shall create ~y obhgat~on on Lender for e an Envkomental Cleanup. NON ~IFO~ COVENANTS Bo~ower and Lender ~her covenant and a r e as ~ 11 - ' · gl o ows: 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 acceleratio~ 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 cu~ed; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums sechred 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 accelleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of salle and any other remedies permitted by AppliCable Law. Lender shall be entitled to collect all expenses incurred in pursuinl Ithe remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. I If'Lender invokes the power of sale, Lender shall give notice of intent to reclose 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 notice of sale, and the Prope 'ty shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The following order: (a) to all expenses of the sale, including, but not limited to, reasonable this Security Instrument; and (c) any excess to the person or persons legally entitled 23. Release. Upon payment of all sums secured by this Security Instrument, Lc Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing is paid to a third party for services rendered and the charging of the fee is permitted under 24. Waivers. Borrower releases and waives all rights under and by virtue of the h proceeds of the sale shall be applied in the attorneys' fees; (b) to all sums secured by it. lder shall release this Security Instrument. this Security Instrument, but only if the fee a, pplicable Law. amestead exemption laws of Wyoming. VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 8 of 9 IDS, Inc. - (800) 554-1872 Borrower(s) Initials 3051 1101 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants any Rider executed by Borrower and recorded with it. Witnesses: 806 :ontained in this Security Instrument and in DONALD I. BISHOP (Seal) -Bo~ower (Seal) -Borrower STATE OF WYOMING, The foregoing instnmaent was acknowledged before me this by DONALD I. BISHOP, and CHARLENE. BISHOP. My commission expires: November 4~, 2006 WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 9 of 9 IDS, Inc. - (800) 554-1872 LINCOLN County ss: 7th day of May, 2003 Notary Public (date) Form 3051 1/01