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HomeMy WebLinkAbout890817J U N F R I..d F ~ F~ 402 536 2601 TO 913~)78779602 P.03 890817 RECEIVED ;LtNOOLN COUNTY CLERK BOOK 5~ ~R PAGF. 009 State of Wyoming Above This Line For Rt~ording Daul- MORTGAGE 9Ca~e No, -0935539 703 THIS MORTGAGE ("Security Instrument") is given on Jm, m 13, The Mongagor is ~ETT~ J. BZLLS, A SIlqG'-]~ I'~SON 2003 ("Borrower"). This S~.urity Instrument is given to hELLS FARGO KOl4lg MORTGAGE, 'ri,lC, which is organized and existing under the laws of TEll STJ~TE OF CAT,TI*ORNIA, arid whose address is P.O. BOX 10304, DES MoIIq'E$, IA 503060304 ("Lender"). Borrower owes Lender the principal sum of PIFTY TWO TKOUSAND O14-g I-~RED llIGItTY ON'E AND 00/100 Dollar$ (U.S. This debt is evidenced by Borrower's note dated the same date as this Security Instrum6mt ("Note"), which provides for monChly payments, with the full debt, if not paid earlier, due and payable on J'ryh¥ oz, 2033 This Security Instrument secures to Leader: (a) the repayment of the debt evidenced by the Note, with interest, and ~1 renewals, extension~ and modificatiom of the Note; (b) the payment of all other with interest, advanced under paragraph 7 to protect the security of this Security Instrument; znd (c) the performmce 0026384081 FI-IA Wyoming Mortgage - 4/96 J U ~..l 13 2003 15:11FR.kJFHN 402 536 2601 TO 91307877~6~2 P.04 0890 i.T ' 010 of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to the Lender with power of sale, the following described property located in ~x~t¢or.~ County, Wyoming: SEE ATTACHED LEGAL DESCRIPTION: THIS IS /% PURCHASE MONEY SECURITY INflTRUM]~NT. TAX STATE~(ENTS SHOULD BE SENT TO: W~LLS FARGO HO~E MORTGAGE, INC., P.O. BOX 10304, DF.S MOINES, IA 503060304 which has the address of 1010 SAGE AVENUe, KgMI,~RER lSrree~, City], Wyoming 8310.1 [zip Code] ("Property Address"); TOGETHER %VITH all the improvemm~ts now or hereafter erected on the property, and all easetnents, appurtenances and fiKtures 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 fight to mortgage, grant and conv~ the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subj~t to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. Borrower and Lender covenant and agree as follows: UNIFORM COVENANTS. 1, Payment of Prindpal, Interest and Late Charge. Borrow¢,r shall pay when due the principal of, and interest on, the debt evidenced by the Note and late charges due under the Note. 2. Monthly Payment of Taxes, Insurance and Other Charges. Borrower shall include in each monthly payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property, and (c) premiums for insurance required under paragraph 4. In any year in which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban Development ("$ecreta.~"), or in any year in which such premium would have been required if Lender still held the Security Instrument, each monthly payment shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secretary. or (ii) a monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary, in a reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items axe called "Escrow hems" and the sums pa/d to Lender are called "Escrow Funds." Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate an-tount not to exceed the maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. Section 2601 e~ seq. and implementing regulations, 24 CFR Part 3500, as they may be amended from time to time ('RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements before the Borrowt-r's payments are available in the account may not be based on amounts due for the mortgage insurance premium. JUN 1,3 £~]03 15:11 FIR WFHM P.05 If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall a~count to Borrower for the excess funds as required by RESPA. If Lhe amounts of funds held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the shortage as permitted by RE.SPA. The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument, If Borrower tenders to Lender the full payment of all such Sums, Borrower's account shall be credited with the balarme remaining for all installn~'nt items (a), (b), and (c) and any n'~ortgage insurance premium installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance remaining for all installments for items (a), (b), and (c). 3. Application of Pa.-rments. All Payments under paragraphs 1 and 2 shall be applied by I.~der as follows: First., to the mortgage insurance prerrfium to be paid by Lender to the Secretar'y or to the monthly charge by the Secretary instead of the monthly mortgage insurance premium; Second, to any taxes; special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance premiums, as required; Third, to interest due under the Note; Fourth, to amortization of the principal of tile Note; and Fifth, to late charges due under the Note. 4. Fire, lqood and Other Hazard Insurance. Borrower shall insure all improven~'nts on the Property, whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insurance. This insurance shall be rn~ntained in the amounts and for the periods that Lender requites. Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of. and in a form acceptable to, Lender. In the event of loss, Borrower shall give Lender immediate notice by mall. Lender may make proof of loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied by Lender, at irs option, either (a) to the reduction of the indebtedness under the Note and this Security Ingtrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the dan~aged Property. Any app[ieation of the proceeds to the principal shall not extend or postpone the due dare of the monthly payments Which a.re referred to in paragraph 2, or change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outatanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto. In the event of foreclosure of this Security Instrument or other transfer of title to the Pcoperty that extinguishes the indebtednesa, all right, title and interest.of Borrower ir~ and to insurance policies in force shall pass to the purchaser. S. Occupancy, Preservation, NLaintenance and Protection of thc Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender determines that requirern~nt will cause undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default. Lender ma)' t~e re2sonable action to protect and preserve such vacant or JUH 13 28E~3 15: 1 t FR I,,.JFHr,1 403 536 2681 TO 913078779602 012 abandoned Property. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Propet~y, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing. 6. Condenmation. The proceeds of any award or claim for damages, direct or coraequential, in connec.tion with any condemnation or other taking of any pan of the Property. or for conveyance in place of condemnation, a~e hereby assigned and shall be paid tO Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent anxounts applied in the order provided in paragraph 3. and then to prepayment of principal. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly payments, which ~re referred to in paragraph 2, or change the amount of such payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and thJ~ Security Instrument shall be paid to the entity legally entitled thereto. 7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or municipal charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these, obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments. If Borrower fails to make these payments or the payments required by paragraph 2, or fails to perform any other covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes, hazard insurance and other items mentioned in paragraph 2. Any amounts disbursed by Lender under this paragraph shall become an additional debt of Borrower and be secured by this Security InstrUment. These an~ount~ shall bear interest from the date of disbursement, at the Note rate, and at the option of Lender, shall be immediately due and payable. Borrower shall promptly discharge any lien which has priority over thi~ Security Instnauent unless Borrower: (a) agreed in writing to thc payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends agaimt enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; 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 pan of the Property is subject to a lien which may attain priority over this Security lnstrament, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 8. Fees. Lender may collect t'ee~ and charges authorized by the Secretary. 9. Grounds for Acceleration ol~ Debt. (a) Default. Lender may, except as limited by regulations issued by the Secretary, in the case of payment defaults, require in-n-nediate payment in full of all sums setured by this Security Instrument if: (i) Borrower defaults by failing to pay in full any monthly payment required by this Security Instrument prior to or on the due date of the next monthly payment, or (ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in this Security Instrument. (b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including Section 3al(d) of the Gam-Sl. GenTmin Depository Institutions Act of 1982, 12 U.S;C. 1701j-3(d)) and with the prior approval of the Secretary, require immediate payment in full of all sums secured by this Security Instrument if: J Il N 13 2~03 15:1I FR [4FHM 482 536 26~t TO 913878779682 P.87 O ¢DOSi. V · 0 1 3 (i) All or pan of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or otherwise transferred (other than by devise or descent), and (ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the purchaeer or grantee does so occupy the Property but his or her credit has not been approved in accordance with the requirements of the Secreraw. (c) No Waiver. If circumstances occur that would pemxit Lender to require inm~ediate payment in fu]l, but Lender does not require such payments, Lender does not waive its rights with respect to subsequent events. (d) Regulations o1' I-tlJD Secretary. In many circumstances regulations issued by the Secretary will limit Lender's rights, in the case of payment defaults, to require immediate payment in full and foreclose if not paid. This Security Instrument does not authorize acceleration or foreclosure if not permitted by regulations of the Secretary. (e) Mortgage Nol Insure. Borrower agrees that if this Security Instrument and ~e Note are not de~em~ned to be eligible for insurance under the National Housing Act within 60 days from the date hereof, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. A written statement of any authorized agent of the Secr~ary dated subsequent to 60 days from the date hereof, declining to insure this Security Instrument and the Note, shall be deemed conclusive proof of such ineligibility. Notwithstanding the foregoing, this option may not be exercised by Lender when the unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the Secretary. 10, Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full because of Borrower's failure to pay an amount due under the Note or this Security Instrument. This right applies even after foreclosure proceedings are instituted. 'To reinstate the Security Instrument, Borrower shall tender in a lump sum all amounts required to bring. Borrower's account current including, to the extent they are obligations of Borrower under thi~ Security Instrument, foreclosure costs and reasonable and customary attorneys' fees and expenses properly associated with the foreclosure proceeding. Upon reinstatement by Borrower, this Security Instrument and the obligatior~ that it secures shall ren'uain in effect as if l. znder had not required immediate payment in full. However, Lender is not required to permit reinstatement if: (i) Lender has accepted reinstatement aRer the commencement of foreclosure proceedings within two years immediately preceding the commencement of a current foreclosure proceeding, (ii) reinstatement will preclude foreclosure on c~ifferent grounds in the future, or (iii) reinstatement will adversely affect the priority of the lien created by this Security Instrament. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time of payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successor in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this SecuriW Insm.tme~t by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender i.n exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 12. Succercors and Assigns Botmd; Joint and Several Liability; Co-Signers. T'l'~e covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 9(b). Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terma of this Security Instrument: (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender ;md any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. J UN 2003 15:12 FR WFHM 402 536 260! TO 913078779602 P.08 01 4 13. Notices. Any notice to Borrower provided for in this Security InstrUment shall be given by delivering it or hy malting it by first class mail unless applicable law requires usc of another method, The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class ri'mil to Lender's address stated herein or any address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 14. Governing Law; Severability. This Security Instrument shall be governed by Federal law and the law of the jurisdiction in which the Property is located. In the event chat any provision or clause of this Security Instrument or the Note cor~flicts 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. To this end the provisions of this Security Instrument and the Note are declared to be severable. 15. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument~ 16, Ha*ardours Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property, Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the property. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and shy Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of :my Hazardous Substances affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 16, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or. toxic petroleum products, toxic pesticides and herbicides, volatile solvents, nuterials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 16, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 17. Assignment of Rents. Borrower unconditionally assigns and transfers to Lender all the rents and revenues of the Property. Borrower authorizes Lender or Lender's agents to collect the rents and revenues and hereby directs each tenant of the Property to pay the rents to Lender or Lender's agents. However, prior to Lender's notice to Borrower of Borrower's breach of any covenant or agreement in the Security Instrument, Borrower shall collect and receive all rents and revenues of the Property as trustee for the benefit of Lender and Borrower. This assigunaent of rents constitutes an absolute assignment and not an assignment for additional security only. If Lender gives notice of breach to Borrower: (a) all rents received by Borrower shall be held by Borrower as trustee for benefit Of Lender only, to be applied to The sums secured by the Security Instrument; (b) Lender shall be entitled to collect and receive all of the rents of the Property; and (c) each tenant of the Property shall pay all rents due and unpaid to Lender or Lender's agent on Lender's written demand to the tenant. Borrower has not executed any prior assignment of the rents and has not and will not perform any act that would prevent Lender from exercising its rights under this paragraph 1']. Lender shall no~ be required to enter upon, take control of or maintain the Property before or after giving notice of breach to Borrower. However, Lender or a judicially appointed receiver n~y do so at any time there is a breach. Any application of rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment of rents of the Property shall terminate when the debt secured by the Security Instrument is paid in full. JIJN 13 2003 15:12 FR I.~.JFHP1 482 536 2601 TO :31307877~60~ P.89 18. Foreclosure Procedure. if Lender requires immediate paTment in full under paragraph 9, Lender may invoke the power ol sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 18, including, but not limited to, reasonable attorneys' fees and costs of title evidence, I1 Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with applicable law. Lender shall give notice of the sale to BOrrower in the manner provided in paragraph 13. Lender shall publish the notice of sale, and the Property shall be sold in the mariner prescribed by applicable law. Lender or its desil[nee may purchase the Proptwty at any sale, The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by thi~ Security Instrument; and (c) any excess to the person or persona legally entitled to it. If the Leader's interest in this Security Instrument is held by the Secretary and the Secretary requires immediate payment in full under Paragraph 9, the Secretary may invoke the nonjudicial power of sale provided in the Single Family Mortgage Foreclosure Act of 1994 ("Act") (12 U.S.C. 3751 et seq.) by requesting a foreclosure commissioner designated under the Act to commence foreclosure and to sell the Property as provided in the Act. Nothing in the preceding sentence shall deprive the Secretary of any rights otherwise available to a Lender under this Paragraph 18 or applicable law. 19, Release. Upon payment of all sums secured by this Sec. urity Instrument, Lender shall release this Security Instrument without charge to Borrower. Borrower shall pay any recordation cotes. 20. Waivers, Borrower waives all rights of homestead exemption in the Property and relinquishes all rights of curtesy and dower in the Property. 21. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security InstrumenT, the covenants of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a pan of this Security Instlm~ent. [check applicable box(es)]. ~Condominium Rider [~ Growing Equity Rider [~ Otb.er [specify] [-~ Planned Unit Development Rider [~ Graduated Payment Rider ~ TAX EXEMPT FINANCING RIDER , P~e 7 m' $ JUN 13 2883 15:~2 FR UJFHD1 4D2 536 2601 TO 3~307877S6~2 P,10 016 BY SIGNING BELOW, Borrower accepts and agrees to the terms contained in this Security Inslrurr=nt and in ~y rider(s) executed by Borrower and recorded with it. K?.TT}I J. B -Borrower (~ai) -[lorrowe'~ (Seal) (Seal) .Borrower -Borrower ,(Seal) (Seal) -Bo rrowcr -B o fro wet (Seal) (Seal) .Borrower -Borrower STATE OF WYOMING, ~.~co~ The foregoing instrument was acknowledged before me this 13TR, 2003 County ss: (da~=) by KEITH J. BILLS My Commission Expires: February 2, 2006 ' Notary P~ blic ~ [ ~ ~ - NOTASY PUBUC JlJN 13 2903 15: iP FR bFHM 4~2 5~6 2601 TO ~1:397877~92 P.II 017 SCHEDULEC The l~d referred to 'in tls commitment is simate~ ~ ~e State of Wyom~g, CounV of L~co~, describ~ as ~llows: ' The Southerly 37M feet. of Lot 4 6f B16~"k 50 of the Second Addition to the Town of Kemmerer, Lincoln County, Wyoming more particularly described as follows: BEGINNING at the southwesterly corner of said Lot 4 of Block 50; and, running thence northerly along, the westerly boundary line and fronting on Sage Avenue, a distance of 37.~ .feeti thence easterly at right angles and parallel with the northerly and southerly boundary lines of said Lot 4, a distance of 140 feet to a point on the easterly b6undary line of said Lot thence southerly at right angles along the easterly boundary line of said Lot 4, a distance of 37~ feet to the southeasterly corner of said Lot 4; . thence westerly along the southerly boundary line of said Lot 4, a distance of 140 feet to the PLACE OF BEGIb~ING. JIJN 13 2130,~ 15:12 F~ [,.JFHH 402 53G 2~1 TO 31307B773B82 P.12 018 TAX-EXEMPT FINANCING RIDER  --fi-^ Cas,- No. .............. ~9!-0935539. 703 THIS TAX-EXEMPT FINANCING RIDER is made thisl3T~ day of ~ , 2003 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed ('Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Note ("Note") toWZLV.S 'AaXGO I-IOi~ MORTGAGIlt 'ri,lC. ('Lender") of the sanle date md covering the Property described in the Security Instrument and located at: 1010 SAGE AVENUe, ~RER, WY 83101 ['P-r oper~ Address] ADDITIONAL COVENANTS- In addition to the covenants and agreements made in the Security Instrument. Borrower and Lender lumber covenant and agree to amend Paragraph 9 of the Security Instrument. entitled "Grounds for Acceleration of Debt," by adding additional grounds for acceleration as follows: Lender, or such of its successors or assign as may by separate instrument assume responsibility for assuring compli~ce by the Borrower with the provisions of this Tax-Exempt Financing Rider, may require immediate payment in full of all sums secured by this Security Imtmment if: (a) All or part of the Property is sold or otherwise transferred by Borrower to a purchaser or other transferee: (i) Who cannot reasonably be expected to occupy the Property as a principal residence within a reasonable time after the sale or transfer, all as provided in Section 143(c) and (i)(2) of the Internal Revenue Code; or (ii) Who has had a present ownership interest in a principal residence during any par~ of the three-year period ending on the date of the sale or transfer, all as provided in Section 143(d) and 0)(2) of the Internal Revenue Code (except that "100 percent" shall be substituted for "95 percent or more" where the latter appears in Section 143(d)(1)); or ltl-lA Multlstat~ Tax-Exempt Finanelng Rider - 10/95 0026384081 Page 1 Of 2 In?tial5:~..~ VMP MORTGAGE FORMS - (8OO)521-7291 J U N 13 2083 15:12 FR b. IFHH 536 2S81 TO 91387877~G02 P.I3 (iii) At an acqubition cost which is greater than 90 percent of the average area purchase price (greater than 110 percent for targeted area residences), all as provided in Section 143(e) and 0)(2) of the Internal Revenue Code; or (iv) Who has a gross family income in excess of the applicable median family imome as provided in Section 143(0 and 0)(2) of the Intern,al Revenue Code; or (b) Borrower fails to occupy the Property described in the Security Instrument without prior written consent of Lender or its successors or a.ssigns described at the beginning of this Tax-Exempt Financing Rider, or (c) Borrower omits or misrepresents a fact that is material with respect to the provisions of Section 143 of the Internal R~venue Code in an application for the loan secured by this Security Instrument. References are to the Internal Revenue Code as amended and in effect on the date of issuance of bonds, the proceeds of which will be used to finance the purchase of the Security Instrument and are decu-ned to include the implmuenting regulations. BY SIGNING BELOW, Borrower accepts and agrees to the terms md covenants contained in this Tax_Exempt Financing Rider. (Seal) -Borrower (Seal) -l[Iorrowcr (Seal) -~ortowcr (Seal) (Seal) -Borrower -ltorrowcr (s~) (Seal) -Bo~ower -gorrowcr (~587U (9705l Page 2 of 2