Loading...
HomeMy WebLinkAbout8900970682937619 Return To: Prepared By: FIELDSTONE MORTGAGE COMPANY 11000 BROKEN LAND PKWY~ SOL--IA, 21044 u BOOK--pR ^or t 5 8 SHIRLEY COCA FIELDSTONE MORTGAGE COMPANY RECEIVED LINOOLN COUNTY CLERK "5 [Space Above This Line For Recordh~g Data] MORTGAGE MIN 100052606829376192 DEFINITIONS Words used h~ multiple sections of this docmnent are defined below and other words are defined h~ Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used m this document are also provided in Section 16. (A) "Security Instrmnent" means fids document, which is dated together with all Riders to tlfis docmnent, (13) "Borrower" is May 13, 2003 LARNELL S. CLEVERLEY, , Borrower is the mortgagor under tlfis Security Iustrument. (C) "]VIERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nomiuee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephoue number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Fanfily-Fmmie Mae/Freddie (~®-6A(WY) (or)os) Page I of 15 In/rials: ~. ~ VMP MORIGAGE FORMS - (800)521-729l Mac UNIFORM INSFRUMENT WITHMERS Form 3051 1/01 ._'59 (D) "Lender" is FIELDSTONE MORTGAGE COMPANY Lender is a CORPORATION organized and existing under the laws of bfARYLAND Lender's address is 11000 BROKEN LARD PKWY, #600 COLUMBIA, MD 21044 (E) "Note" means tile pronfissory note signed by Borrower and dated May thirteenth, 2003 The Note states that Borrower owes Lender NINETY ONE THOUSAND & 00/100 Dollars (U.S. $ 91, 0 00.0 0 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JUI~ 1, 2 03 3 (F) "Property" means the property that is described below under the heading "Transfer of Rights m the Property." (G) "Loan" means tile debt evidenced by the Note, plus interest, any prepayment charges and late clmrges due under the Note, and all stuns due under tiffs Security h~strument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider [~ Condonfitfium Rider ~ Second Home Rider ~] Balloon Rider [~ elmmed Ulfit Development Rider . ~ 1-4 Fanfily Rider ~ VA Rider [~ Biweekly Payment Rider [~ Other(s) [specifyl il) "Applicable Law" means all controlhng apphcable federal, state and local statutes, regulations, ordilmnces and achmnistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. : (J) "Community Association Dues, Fees, and Assessments" means aH dues, fees, assessments and other charges that are imposed on Borrower or the Property by a coudominimn association, homeowners association or sinfilar orgalfization. (K) "Electronic Fnnds Transfer" means any transfer of funds, other than a transaction origiimted by check, draft, or sinfilar paper instrument, wlfich is hfitiated through an electrmfic temfinal, telepho~fic: instrument, computer, or magnetic tape so as to order, h~struct, or authorize a fi~mncial institution to debit or credit an account. Such term includes, but is not linfited to, point-of-sale transfers, automated tel)er nmclfine transactions, transfers initiated by telephone} wire transfers, and autonmted clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (ND "Miscellaneous Proceeds" means any compensation, settlement, award of dalnages, or proceeds paid by any third 'party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condennmtion or other taking of all orany part of the Property; (iii) conveyance in lieu of condennration; or (iv) lmsrepresentations of, or omissions as to, the Value and/or condition of the Property. ' (iN) "Mortgage h~snrance" means insurance protecth~g Lender agafl~st the nonpayment of, or default on, the Loan.. (O) "Periodic Pay~nent" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its hnplementing regulation, Regulation X (24 C.F.R. Part 3500), as they nfight be amended from thne to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in tiffs Security htstrmnent, "RESPA" refers to all requirements and restrictions timt are imposed iii iregard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. 1~-6A(WY) (ooo5) PageZor:5 Form:3051 1/01 160 (Q) "Successor ill h~terest of Borrower" nleans any party that has taken title to the Property, Wheti~er or not that party has. assumed Borrower's obligations under the Note and/or tiffs Security h~strmnent. TRANSFER OF RIGHTS IN THE PROPERTY Tlfis Security Instrmneut secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under tiffs Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the COUNTY of Lincoln [Type of Recordiug Jurisdiction] [Name of Recordh~g Jurisdiction] All that tract or parcel of land as shown on Schedule "A" attached Parcel ID Number: 321942410007900 172 SO. KENNINGTON-BURTON LANE AFTON ("Property Address"): [City] , which currently has the address of , [Street] Wyonfing 8 3 1 1 0 ! [Zip Code] TOGETHER WITH all the hnPr0vements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrmnent. All of the foregoing is referred to in this Security Instrtunent as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security histrument, but, if necessary to cmnply with law or custom, MERS (as nmrm~ee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not linfited to, the right to foreclose and sell the Property; aud to take any action requireld of Lender including, but not linfited to, releasing and canceling this Security h~strmnent. : BORROWER COVENANTS timt Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unenctunbered, except tbr encumbrances of record. Borrower warrants and will. defend generally the title to the Property agaiust all clahns and demands, subject to any enctm~brances of record. THIS SECURITY INSTRUMENT combines umform covenants for natimml use and non-utfitbm~ covmmnts with lhmted variations by jurisdiction to constitute a unifom~ security instrmnent covering real property. (~-6A(WY) (oo05) P~g, a of 15 Form 3051 1/01 0682937619 161 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 priucipal 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 Instrmnent shall be made in U.S. currency. However, if any check or other h~strmnent received by Lender as payment under the Note or this Security h~stnm~ent is returned to Lender unPaid, Lender may require that any or all subsequent payments due under the Note and tlfis Security hlstrmnent 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 caslfier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electromc 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 may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to 'refuse such payment or partia! payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest 'on uuapplied funds. Lender may hold such unapphed funds until Borrower nmkes payment to bring the Loan current. If Borrower does not do so witlfin a reasonable period of thne, Lender shall either apply such fm~ds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note inunediately prior to foreclosure. No offset or clafln wlfich Borrower xnight have now or in the future against Lender shall relieve Borrower from makhlg payments due under the Note and this Security Instrument or .perfornfing the covenants and agreements secured by tiffs Security Iustrmnent. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2,: all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall :be apphed to each Periodic Payment in the order in wlfich it became due. Any remaining amounts shall be aPplied first to late charges, second to any other amounts due under this Security Instrmnent, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a dehi~quent Periodic Payment wlfich includes a sufficient amount to pay any late charge due, the payment may be apphed to the delinquent payment and the late charge. If more than one 'Periodic Payment is outstauding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. 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 Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide fbr payment of amounts due for: (a) taxes and assessments and other items which can attain priority over tiffs Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) prenfiums for any and all insurance required by Lender uuder Section 5; and (d) Mortgage h~surance premimns, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premimns in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Conunumty Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, lees 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 mfless 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 auy tflne. 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 tbr wlfich payment of toitials: L~ Cc-- i~-6AfWY) (0005) v~g~ 4 of 15 I7onll 3051 1/01 0682937619 Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment witliin 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 tiffs Security h~strument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obhgated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall fl~en 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 notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under tiffs Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to pemfit Leuder to apply the Funds at the time specified under RESPA, and (b) not to exceed the maxhmun amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. Tlie Funds shall be held in an institution whose deposits are insured by a federal agency, instrmnentality, 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 fl~e Escrow Items no later than the thne specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, am~ually analyzh~g the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, tlmt interest shall be paid on the Funds. Lender shall give to Borrower, without charge; an mmual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 montifly payments. If there is a deficiency of Funds held in escrow, as defmed under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by tiffs Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and hnpositions attributable to the Property which can attain priority over tiffs Security h~strmnent, leasehold payments or groined rents on the Property, if any, and Conm~unity Association Dues, Fees, and Assessments, if any. To the extent timt these items are Escrow Items, Borrower shall pay them in the maturer provided in Section 3. Borrower shall promptly discharge any lien which has priority over tiffs Security Instrmnent unless Borrower: (a) agrees in writing to the payment of the obligation secured by the hen in a rammer acceptable to Lender, but only so long as Borrower is perforating such agreement; (b) contests the hen in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrmnent. If Lender deternm~es timt any part of the Property is subject to a lien which can attain priority over tiffs Security Instrument, Lender may give Borrower a notice identifying the lien. Witlfin 10 II~6A¢VY) (0005) P~ge5 oft5 Fond 3051 1/01 0682937619 153 days of the date on which that notice is g~ven, Borrower shall satisI~ the hen or take one o~ more of the actions set forth above in tiffs Section 4. Lender may require Borrower to pay a one-thne charge for a real estate tax verification and/or reporting service used by Lender in cmmection with tiffs Loan. 5. Property Insnrance. Borrower shall keep the in~provements uow existh~g or hereafter erected on the Property insured against loss by fire, hazards included witlffn the term "extended coverage," and auy other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. Tlfis insurance shall be maintained in the amounts (including deductible levels) and for the periods that Leuder requires. What Lender requires pursuant to the preceding senteuces can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasouably. Lender imay require Borrower to pay, in coLmection with tiffs Loan, either: (a) a one-thne charge tbr flood zone determination, certification and trackh~g services; or (b) a one-time charge fbr flood zone deteruffnation and certification services and subsequent charges each time remappings or shnilar changes occur wlffch reasonably nfight affect such detenrmmtion or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in com~ection with the review of a~Y flood zone detemffnafion resulting from an objection by Borrower. If Borrower lhils 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 auy particular type or amount of coverage. Therefore, such coverage shall cover Lender, but nfight or nffght not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously h~ effect. Borrower acknowledges that the cost of the insurance coverage so obtained nffght significantly exceed the cost of insurance that Borrower could have obtained. Amy amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by tiffs Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice !from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additioml 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 prenffmns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required bY Lender, for dmnage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall uame 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 ~nake proof of loss if not made promptly by Borrower. U~less Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be apphed to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have: the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such flzspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or m a series of progress payments as the work is completed. U~fless an agreement is nmde in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or eanm~gs on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall uot be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not ecouonfically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to Initial,: ~. (~6A(WY) (0005) Page6or15 Form 3051 1/01 0682937S19 the stuns secured by tiffs Security h~strument, 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 nmy file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender flint the insurance carrier has offered to settle a clahn, then Lender nmy negotiate and settle the claim. The 30-day period will begin when the notice is given, hi either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or tiffs Security Instrmnent, and (b) any other of Borrower's rights (other than the right to any refund of unearned premimns paid by Borrower) under all insurance policies covering the Property, insohr as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or tiffs Security Instrmnent, whether or not then due: 6. Occupmmy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence witlfin 60 days after the execution of tiffs Security Instrmnent and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, mfless Lender otherwise agrees in writing, which consent shall not be unreasonably wifltheld, or unless extenuating circmnstances exist wlfich are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or hnpair the Property, allow the Property to deteriorate or conuint waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. U~fless it is determined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in colmection with 'damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restori.ng the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds tbr the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condenmation proceeds are not sufficient to repair or restore the Property, Borrower is not reheved of Borrower's obhgation for the completion of such repair or restoration. Lender or its agent nmy make reasonable entries upon and inspections of the Property. If it has reaso~mble cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan apphcation process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, nfisleading, or iimccurate intbrmation or statements to Lender (or failed to provide Lender with material infommtion) in connection with the Loan. Material representations include, but are not limited to, representations coucerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest iu the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in tiffs Security lnstrmnent, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under tiffs Security Instrmnent (such as a proceeding in bankruptcy, probate, for condenmation or forfeiture, for elfforcement of a lien wlfich may attain priority over tiffs Security h~strmnent or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender nmy do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under tiffs Security h~strmnent, 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 linfited to: (a) paying any stuns secured by a lien wlfich has priority over tiffs Security Instrument; (b) appearing in court; and (c) paying reasonable (~6A(WY) (0005) Page 7 of is Form 3051 1/01 0682937619 attorneys' fees to protect its interest in the Property and/or rights under tiffs Security Instrmnen[ including its secured position in a ba~flcruptcy proceeding. Securing the Property inchides, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, elinffnate buildiug or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obhgation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under tfis Section 9 shall become additional debt of Borrower secured by tiffs Security h~strmnent. These amounts shall bear interest at the Note rate fronl the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If tiffs 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 aud the fee title shall not merge mfless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the prenffmns required to maintain the Mortgage Iusurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such iusurance and Borrower was required to make separately designated payments toward the prenfimns for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to file Mortgage Insurance previously in effect, at a cost substantially lequivalent 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 the separately designated payments that were due when tile insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-re'fundable loss reserve in lieu of Mortgage h~surance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultin~ately paid in full, and Lender shall not be required to pay Borrower any interest or eartm~gs on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount aud for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtaiued, and Lender requires separately designated payments toward tile premiums for Mortgage Insurance. If Lender required Mortgage h~surance as a condition of making the Loan and Borrower was required to make separately designated payments toward the prenfiums for Mortgage Insurance, Borrower shall pay the prenffums required to maintain Mortgage h~surance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until ternmmtion is required by Applicable Law. Notlfing in flLis Section 10 affects Borrower's obhgation to pay interest at the rate provided lin the Note. Mortgage Insurame 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. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, aud 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 satislhctory to the mortgage insurer and the other party (or pa~ties) to these agreements. These agreements may require the mortgage h~surer to make payments using any source of funds that the moil:gage insurer may have available (Milch may include funds obtained from Mortgage Insurance premimns). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any ieiusurer, 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 Insurancel in exchange for sharing or modifying the mortgage h~surer's risk, or reducing losses. If such agreement provides tlmt an affiliate of Lender takes a share of the insurer's risk in exchange for a share of rite premimns paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect tile mnounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not iucrease the mnmmt Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. Initials: L~ Q-~ (~¥6AONY) (0005) Page 8 of 15 Form 3051 1/01 0682937619 (b) Any such agreements will not affect the rights Borrower has - if m~y - with reSpect to the Mortgage Insurance m~(ler the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request m~d obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refuud of any Mortgage Insurauce preminlns that were mmarned at the time of such cancellation or termination. 11. Assigmnent of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. ~ If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econouffcally feasible and Leuder'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 opportumty to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be uudertaken promptly. Lender may pay tbr the repairs and restoration m a single disbursement or in a series of progress payments as the work is completed. Unless an agreelnent 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 eanfings on such Miscellaneous Proceeds. If the restoration or repair is not econonfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to ti~e sums secured by tiffs Security Instrtunent, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be apphed in tile order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, tile Miscellaneous Proceeds shall be applied to the stuns secured by this Security Instrument, whether or not then due, with tile excess, if any, paid to Borrower. h~ the event of a partial taking, destruction, or loss m value of the Property in wlffch tl~e fair market value of the Property mnnediately before the partial takh~g, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security h~strmnent iffnnediately before the partial taking, destruction, or loss m value, unless Borrower and Lender otherwise agree in writing, tile stuns secured by this Security Instrtunent shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the stuns secured munediately before the partial takh~g, destruction, or loss in value divided by (b) the fair market value of the Property mnnediately 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 tile Property h~ wiffch th~ fair market value of ti~e Property iffnnediately before the partial takiug, destruction, or loss m value is less titan the amount of the sums secured hmnediately before the partial talm~g, destruction, or loss m Value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the stuns secured by tiffs Security Instrtunent whether or not the stu~s are then due. If the Property is abandoned by Borrower, or if, after notice by Leuder to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claml 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 stuns secured by tiffs Security Instrmnent, whether or not then due. "Opposing Party" meaus the tlffrd 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 h~ default if any action or proceeding, whether civil or criff~ml, is begun that, in Lender's judgment, could result in forfeiture of the Property or other nmterial m~paim~ent of Lender's interest in the Property or rights under tiffs Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided m Section 19, by causiug the action or proceeding to be disnffssed with a ruhng that, in Lender's judgment, precludes forfeiture of the Property or other material flnpamnent of Lender's interest in the Prolyerty or rights under tiffs Security Iustrmnent. The proceeds Of any award or clahn tbr danmges that are attributable to the m~painnent of Lender's interest in the Property are hereby assigued and shall be paid to Lender. All Miscellaueous Proceeds that are not applied to restoration or repair ofthe Property shall be applied in the order provided for in Section 2. I~-6AOYY) (0oo5) Page 9 or ~5 Form 3051 1/01 10682937619 12. Borrower Not Released; Forbearm~ce By Lender Not a Waiver. Extension of the thne for payment or modification of amortization of the sums secured by fltis Security hzstrument granted by Lender to Borrower or auy Successor in Interest of Borrower shall not operate to release the liability of :Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings' against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by tiffs Security h~strmnent by reason of any demand made by the original 'Borrower or auy Successors in Interest of Borrower. Any forbearance by Lender in exercising auy right or remedy including, without linfitation, 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 mid Assigns Bound. Borrower coveizants and agrees that Borrower's obligations and liabihty shah be joint and several. However, auy Borrower who co-signs tiffs Security Imtrument but does not execute the Note (a "co-signer"): (a) is co-sighting tiffs Security Instrmnent ordy to mortgage, grant and convey the co-signer's interest in the Property under the temps of tiffs Security Instrmnent; (b) is not personally obligated to pay the sums secured by tiffs Security Instrmnent; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make auy acconnnodations with regard to the terms of this Security h~strument or tile Note without the co-signer's COllsent. Subject to the provisions of Section 18, any Successor m Interest of Borrower who assmnes Borrower's obligatious under this Security Instrument in writing, and is approved by Lender, shall Obtain all of Borrower's rights and benefits under tiffs Security h~strmnent. Borrower shall not be released from Borrower's obligatim~s and liabihty under this Security hzstrmnent mfless Lender agrees to such release in writing. The covenants and agreements of tlfis Security Instrmnent shall bind (except as provided in Section 20) and benefit tile successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services perlbrmed in connection with Borrower's dehult, for the purpose of protecting Lender's interest in the Property and rights under tlfis Security hmtrmnent, ilmluding, but not lfl~fited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of'express authority in tlfis Security h~strument to clmrge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not clmrge fees that are expressly prolfibited by tiffs Security Instrument or by Apphcable Law. If tile Loan is subject to a law which sets maxflnum loan charges, and timt law is finally interpreted so that file interest or other loan charges collected or to be collected in connection with the Loan exceed the pemfitted linfits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pemfitted lmfit; and (b) any sums already collected froln Borrower wlfich exceeded pernfitted lmfits will be refunded to Borrower. Lender may choose to make tiffs refund by reducing the principal owed uuder 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 (wbether or not a prepayment charge is provided for under tile Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in com~ection with tiffs Security Instrmnent must be in writing. Any notice, to Borrower in connection with tlfis Security h~strmnent shall be deenled to have been given to Borrower when mailed by first class mail or xvhen 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 be the Property Address mfless 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 change of address through that specified procedure. There may be only one desig~mted notice address under tiffs Security Instrmneut at any one thne. Any notice to Lender shah 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. Auy notice in com~ection with this Security Instrmnent shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by flfis Security Instrmnent is also required under Applicable Law, the Apphcable Law requirement will satisfy the corresponding requirement under tlfis Security Instrmnent. (~}~6A(WY) (000~) P~ m of l~ Form 3051 1/01 0682937619 16. Governing Law; Severability; Rnles of Construction. Tiffs Security Iustrmnent shall be governed by federal law and the law of the jurisdiction in wlffch the Property is located. All rights and obligations contained' in this Security h~strmnent are subject to any requirements and limitations of Applicable Law. Applicable Law xmght explicitly or [mphcitly allow the parties to agree by contract or it nfighi be silent; but such silence shall not be construed as a prohibition against agreement by contract. In the ~vent that any provision or clause of this Security Instrument or the Note co~ffiicts with Applicable Law, such cmfflict shall not affect other provisious of fi]is Security Instrument or the Note which can be given effect without the c o~fllic ting provision. AS used iu tiffs Security Instrument: (a) words of the masculine gender shall mea~ and include corresponding neuter words or words of the femimne gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "nmy" 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 Instrmnent. 18. Tr,'msfer of the Property or a Beneficial Interest in Borrower. As used in tiffs Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, inchiding, but not lm]ited to, those beneficial h~terests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of wlfich is the transfer of title by Borrower at a 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 uatural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require i,mnediate payment in full of all sums secured by tfis Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises fils optiou, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 witlm~ which Borrower must pay all stuns secured by this Security h~strument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies perlnitted by: tfis Security Instrmnent without further notice or demand ou Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain couditions, Borrower shall have the right to have enforcement of this Security h~strument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuaut to auy power of sale contained iu this Security Instrument; (b) such other period as Applicable Law n]ight specify for the temmmtion of Borrower's right to reinstate; or (c) entry of a judgment enforcing flfis Security lnstrmnent. Those conditious are that Borrower: (a) pays Leuder all stuns wlfich then would be due under this Security Iustrument and the Note as if no acceleration had occurredi (b) cures any default of any other cove~mnts or agreements; (c) pays all expenses incurred in enforcing tiffs Security Iustrmnent, including, but not limited to, reasonable attorneys' tees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights uuder this Security Instrument; and (d) takes such action as Lender may reasouably require to assure that Lender's interest in the Property and rights uuder this Security fustrmnent, and Borrower's obligation to pay the stuns secured by this Security Instrmnent, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses iu one or more oflthe followiug 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 clieck is drawn upon au iustimtion whose deposits are insured by a federal agency, iastrumentality or entity; or (d) Electro~fic Funds Transfer. Upon reinstatement by Borrower, tiffs Security Instrument aud obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleratiou under Section 18. 20. Sale of Note; Clmmge of Loau Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrmnent) can be sold one or more thnes without prior notice to Borrower. A sale nfight result in a change m the entity (known as the "Loau Servicer") that collects Periodic Payments due uuder the Note and tiffs Security Instrmnent and performs other mortgage loan servicing obligations under the Note, fl]is Security Instrument, and Applicable Law. There also nffght 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 chauge wlfich will state the ~mme and address of the new Loan Servicer, the address to which payments should be made and any other mtbnnation RESPA requires in cmmection with a (~<D-6A(WY) (ooo5) Page it or 15 ' Form 3051 1/01 0682937619 I69 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 Leuder nmy cotmnence, join, or be joined to any judicial action i(as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to tiffs Security !mstrmnent or that alleges that tlie other party lms breached any provisiou of, or any duty owed by reasou of, tlfis Security Instrument, until such Borrower or Lender lms notified the other party (with such nOtice given iu compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period Wlfich must elapse before certain action can be taken, that tm]e period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and oppormmty to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action' provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "HazardoUs Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental iLaw and the fbllowing substances: gasoline, kerosene, other flamnmble, or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive n~aterials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Envirmm~ental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Enviro~m~enthl Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup.. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower lshall not do, nor allow anyone else to 'do, anyflfing affecting the Property (a) that is in violation of any Enviromnental Law, (b) wlfich creates an Enviro~m~ental Condition, or (c) Milch, due to the presence, use, or release of a Hazardous Substalme, 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 snmll quantities of Hazardous Substances that are generally recog~fized to be appropriate to normal residential uses and to mainte~mnce of the Property (including, but not lhnited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, clahn, demand, lawsuit or other action by any govermnental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of wlfich Borrower has actual lmowledge, (b) any Envirolm~ental Condition, including but not linfited to, any spilling, leaking, discharge, release or tlueat of release of any Hazardous Substance, and (c) auy condition caused by the presence, use or: release of a Hazardous Substance wlfich adversely affects the value of the Property. If Borrower learns, or is notified by any govenm~ental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordauce with Environmental Law. Noflfing herein shall create any obhgation on Lender for au Enviromnental Cleanup. ~i~: L ~ c__ : (~--6A(WY) (0005) Pagel2of~5 Form 3051 1/01 0682937619 170 NON-UNIFORM COVENANTs. Borrower and Leuder further cove~mnt and agree as follows: 22. Acceleration; Re~nedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Secnrity Instrmnent (but not prior to acceleration nnder Section 18 nnless Applicable Law provides otherwise). The notice slmll specify: (a) tile defanlt; (b) the action required to cnre the defanlt; (c) a date, not less thml 30 days frmn the date the notice is given to Borrower, by which tile defanlt must be cnred; and (d) that failnre to cnre the defanlt on or before the date specified in tile notice may resnlt in acceleration of the sulns secnred by this Secnrity Instrnment and sale of the Property. The notice shall fi~rther inform Borrower of the right to reinstate after acceleration and the right to bring a conrt action to assert the non-existence of a defanlt or any other defense of Borrower to acceleration mid sale. If the defanlt is not Cured on or before the date specified in the notice, Lender at its option may reqnire i~n,nediate payment in fidl of all snms secnred by this Secnrity Instrmnent withont fi~rther demand and may invoke the power of sale and m~y other relnedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pnrsning the remedies provided ill this Section 22, inclnding, 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 m~d to the person in possession of tile Property, if different, in accordmme with Applicable Law. Lender shall give notice of the sale to Borrower ill the manner provided in Section 15. Lender shall pnblisb the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee ~nay purchase the Property at any sale. The proceeds of the sMe shall be applied in the following order: (a) to all expenses of the sale, inclnding, bnt not lilnited to,: reasonable attorneys' fees; (b) to all sums secured by this Secnrity Instrulnent; anti (c) any excess to tile person or perso~Ls legally entitled to it. 23. Security releashlg chargh~g Release~ Upon payment of all stuns secured by this Security Instrtunent, Lender shall release tiffs h~strument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for tiffs Security h~strument, but only if the fee is paid to a third party for services rendered and the of the fee is pemfitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~-6A(WY) (ooo5) Page 13 or ~5 Form 3051 1/01 0682937619 ' i71 BY SIGNING BHLOW, Borrower accepts and agrees to the terms and covelmnts cou[ained in this Security Instrument and in ally Rider executed by Borrower and recorded with it. Witnesses: LAP.NELL S. CLEVERLEY ] (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (~<~6A(WY) Page 14 of 15 Form 3051 1/01 0682937619 STATE OF WYOMING, I72 County ss: 2005 The foregoing instrmnent was aclmowledged before ~ne tiffs [..~ _r~ ,~' /'~a.~, by LARNELL S. CLEVERLEY My Connnission Expires: 3-I~'- 0 '~ Notary Public lkfitials: ~ ~ I~-6A0,VY) (mos) ea~, 25 of 25 Form 3051 1/01 SCHEDULE "A" 173 A portion of the NW~ANE~A of Section 24, T32N Rll9W of the 6th P.M., Lincoln County, Wyoming and more particularly described as follows: BEGINNING at an iron pipe found in the South line of a County Road 1329.981 feet S 89051' W and 33 feet S 0° 15' W from the Northeast corner of said Section 24; thence running S 0°15, W, .409 feet; thence West 120.51 feet; thence N 0°15, E, 408.69 feet to the first said South line; thence N 89o51, E, along last said line, 120.51 feet to the POINT OF BEGINNING. ADJUSTABLE RATE RIDER LIBOR 6 Month Index (As Pnblished In The Wall Street Journal) - Rate Caps)i THIS ADJUSTABLE RATE RIDER is made tiffs thirteenth day of May, 2003 , and is incorporated into and shall be deemed to amend and supplement the Mortgage,'Deed of Trust, or Security Deed (the "Security Instrmnent") of the same date given by the undersigned ("Borrower") to secure Borrower's, Adjustable Rate Note (the "Note") to ' FIELDSTONE MORTGAGE COMPANY ("Lender") of the same date and covering the property described m the Security h~strumeut and located at: 172 SO. KENNINGTON-BURTON LANE, AFTON, Wyomin9 83110 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAY/X'IENT. THE NOTE LIGHTS THE AIVIOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIM-UqVI RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security h~strmnent, Borrower and Lender fixrther covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an hfitial interest rate of 7.750 changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYS~fENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of June and on that day every is called a "Clmnge Date." %. The Note provides for 2005 SIXTH month thereafter. Each date on which my interest rate could clmnge MULTISTATE ADJUSrABLE RATE RIDER-LIBOR 6 MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL )-Single Family-Famfie Mae Uniform instrument (~838R (0005) Form 3138 1/01 Page 1 of 4 Initials: L_ VlvlP MORTGAGE FORMS - (800)521-7291 (B) The Index ~ Beginning with the first Change Date, my interest rate will be based on an Index. The "index" is the average of interbank offered rates for 6 month U.S. dollar-denomhmted deposits in the London market ("LIBOR"), as published in 7he Wall Street Journal. The most recent Index figure available~ as of the first business day of the month immediately preceding the month in wlfich the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable i~fformation. The Note Holder will give me notice of this choice. (C) Calcnlation of Changes Before each Change Date, the Note. Holder will calculate my new interest taste by adding FIVE AND ONE-QUARTER pe!centage points ( 5. 250 %) to the Current Index. The Note Holder will then round the result of tiffs addition to the nearest one-eighth of one percentage point (0. 125%). Subject to the lhnits stated in Section 4(D) below, tlfis rounded amount will be my new interest rate until the next Chauge Date. The Note Holder will then deternfine the mnom~t of the montl~y payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in dali on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new :amount of my monflily payment. (D) Limits on Interest Rate Chm~ges The interest rate I am required to pay at the first Clmnge Date will not be greater than 10.750 % or less than 7.750 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than O1~ percentage points ( 1.0 0 0 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater titan 13.7 5 0 %. (E) Effective Date of C!~m~ges My interest rate will never be less than 7. 750%. My new interest rate will become effective on each Change Date. I will pay the amount of my new montlfly payment begi~ming on the first montIdy payment date after the Change Date until the mnount of my monthly payment changes again, i (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include i~ffonnatiou required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. hfitials: ~ ~- C___ ~}~838R (0005) Page 2 of 4 Form 3138 1/01 B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER , Uniform Covenant 18 of the Security lnstrmnent is amended to read as follows: Trm~sfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "hiterest 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, imtallment sales contract or escrow agreement, the intent of wlfich is the transfer 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 require inunediate payment in full of all stuns secured by tlfis Security Instrmnent. However, lifts option shall not be exercised by Lender if such exercise is prolfibited by Applicable Law. Lender also shall not exercise tlns option if: (a) Borrower causes to be subnfitted to Lender ixrtbnnation required by Lender to evaluate the intended transferee as if a new loan were being nmde to the transferee; and (b) Lender re:asonably detemfines that Lender's security will not be m~paired by the loan assumption and that theI risk of a breach of any covenant or agreement in this Security h~strument is acceptable to Lender. To the extent penuitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan asstunption. Lender also may require the tranSferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in tiffs Security h~strument. Borrower will continue to be obligated under the Note and tiffs Security h~stmment tufless Lender releases Borrower in writh~g. If Lender exercises fl~e option to require hmnediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordauce with Section 15 within wlfich Borrower must pay all stm~s secured by tiffs Security Instnunent. If Borrower fails to pay these stuns prior to the expiration of tlfis period, Lender may invoke any remedies penmtted by tlfis Security Iustrmnent without further notice or demand on Borrower. ~838R (0005) Page 3 of 4 Form 3138 1/01 I77 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained hx tlfis Adjustable Rate Rider. -Borrower LARNELL S. CLEVERLEY / (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower 838R (0005) Page 4 of 4 Form 3138 1/01