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HomeMy WebLinkAbout891972Retm'n To: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN' 55435 Prepared By: WELLS FARGO HOME MORTGAGe.., INC. RECEIVED LINOOLN 60lJlqT'( 1919 DOUGLAS,, OMAHA, 681010000 NE [Space Above Tiffs Lfl~e For Recording Data] MORTGAGE B)~) OK q'R PAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated JULY 2 2, 2 0 03 together with all Riders to this document. (B) "Borrower" is DAVID DROLLETTE AND LISA DROLLETTE, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "Lender" is WELLS FARGO HOME MORTGAGE, INC. Lender is a CORPORATION organized and existing under the laws of THE STATE OF CALIFORNIA 0029703816 WYOMING~Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT l~®-6(Wy) poos) Page 1 of 15 ' [nitials~ VMP MORTGAGE FORMS - (8001521-7291 Form 3051 1/01 £32 Lender's address is P.O. BOX 10304, DES MOINES, IA 503060304 Lender is the lnortgagee under this Security Instrument. (D) "Note" means the pronfissory note signed by Borrower and datedJUn¥ 2 2, 2 00 S The Note states that Bon-ower owes Lender ONE HUNDRED TWENTY' THOUSAND AND 00/100 Dollars (U.S. $ ** * * 12 0,0 0 0.0 0 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than AUGUST 01, 2 018 (E) "PropertY" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment clmrges and late charges due under the Note, and. all sums due under this Security Insmnnent, plus interest. (G.) "Riders" means all Riders to this Security Inst~ment that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider [~ Condominium Rider [~ Second Home Rider [~ Balloon Rider ~ Planned Unit Development Rider ~ 1-4 Family Rider [~ VA Rider ~-] Biweekly Payment Rider ~ Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and adufinistrative roles and orders (that have the effect of law) as well as all applicable final, non-appeal able judicial opinions. (I) "Commmfity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated du-ough an electronic terminal, telephonic instrmnent, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not Ii,aired to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, 'wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of datnages, or proceeds paid by any flfird party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissio~]s as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insm'ance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its impleme]Xilxg regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(WY) Iooo5) P~g~ 2 of 15 (~ Form 3051 1/01 233 (P) "Successor in h~terest of Borrower" means any part), that has taken title to flae Property, whether or not flint party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY Tlfis Security Instrmnent 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 this Security Instrument and the Note. For rids purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors aud assigns, with power of sale, the following described property located in rite COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] PART OF SECTION 13, T34N RllgW OF THE 6TH P.M., LINCOLN COUNTY, W-YrOMING BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 161 FEET SOUTH OF THE NORTHEAST CORNER OF SAID SE1/4SE1/4 AND RUNNING THENCE WEST 219.0 FEET; THENCE SOUTH 198.9 FEET; THENCE EAST 219.0 FEET; THENCE NORTH 198.9 FEET TO THE POINT OF BEGINNING. TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, BOX 10304, DES MOINES, IA 503060304 INC., P.O. ParcellD Number: 1234191340017400 703 MUDDY STRING ROAD THAYNE ("Property Address"): which currently has fl2e address of [Street] [Cib'] , Wyom/ng 8 3 12 7 [Zip Code] TOGETHER WITH all lite improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfiflly seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and dmt the Property is unencum'berad, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and denmnds, subject to 'any encumbrances of record. THIS SECURITY INSTRUMENT combines mfifonn covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security kL~trument covering real property. UNIFORM COVENANTS. Bon'ower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note aud any prepayment charges and late charges due under the Note. Borrower shall also pay fimds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Initials~ ~:!)-6(WY) Iooo5) Pag. 3 o, 15 (~b Form 3051 1/01 Security Instrument is returned to Lender unpaid, Leander may require that any or all subsequent payments due nnder rite Note and this Security Instrument be m~de in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an imstitution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electro~fic Funds Transfer. Payments are deemed received by Lender when received at rite location designated in the Note or at such other location as may be designated by Leuder in accordance with the notice provisions in Section 1~. Lender may return any payment or partial payment if rite payment or partial payments are insufficient to bring the Loan current. Lender nmy accept any payment or partial payment insufficient to bring rite Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial' payments in rite 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 umtpplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under rite Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (at) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under riffs Security Instrument, and then to reduce the principai balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient anrount to pay any late charge due, rite payment nmy be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to rite repayment of the Periodic Payments if, and to the extent that, each payment can be paid in. rill. 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 rite Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall ~mt extend or postpone the due date, or change the amoum, 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 rite Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Insmmrent as a lien or encumbrance on rite Property; (b) leasehold payments or ground rents on the Property, if any; (c) premimns for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any stuns payable by Boo-rower to Lender in lieu of the payment of Mortgage insurance premiums in accordance with rite provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of rite Loan, Lender ma5' require that Connmu2ity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items mfless Lender waives Borrower's obligation to pay rite Funds for any or all Escrow Items. Lender may waive Bon-ower's obligation to pay to Lender Funds for any or ali Escrow Items at an5' time. Any such waiver n~iy only be in writing. In the event of such waiver, Borrower shall pay directly, when and Where payable, the amounts 1~)~-6(WY) ioo05) Page 4 of 15 4~"x Form 3051 1/01 due 'for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furxfish to Lender receipts evidencing such payment withfl~ 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 riffs Security Inst~a~ment, as the pkrase "cove~ant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due ibr an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Bor~-ower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that arc then required under this Section 3. Lender xm'ty, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed thc maxinmm amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data a~d reaso~,'~'ble estimates of expenditures of future Escrow Items or oflaerwise in accordance with Applicable Law. The Funds shall be .held in an institution whose deposits are insured by a federal agency, fi~strumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually a~mlyzing the escrow account, or verifying the Escrow Items, Ulfless Lender pays Borx-ower interest on the Funds and Applicable Law permits Lender to make such a charge. Uxfless an agreement is made in writing' or Applicable Law requires interest to be paid ou the Funds, Lender shall not be required to pay Borrower any interest or earxfings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a sm-plus of Funds held in escrow, as defined mxder RESPA, Lead.der shall accomxt to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments, if there is a deficiency of Fnnds held in escl'ow, 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 deficiei~cy in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums seem-ed by this Security Instrument, Lender shall promptly ~'efund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, flues, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Conmmnity Associatioxx Dues, Fees, and Assessments, if any. To the extent fl~at these items are Escrow Items, Borrower shall pay them in the n~anner provided in Section 3. Borrower shall promptly discharge any lien which has priority over fids Security ImsU~me~t unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a nmnner acceptable to Lender, but olfly so long as Borrower is perfornaing such agreement; (b) contests fl~e lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Le~der's opinion, operate to prevent the e~xfol'cement of the lien while those proceedings are pending, but only mxtil such proceedings are concluded; or (c) secures from the holder of thc lie~x an agreement satisfactory to Lender subordinating the lien to this Security Instrmnent. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender nmy give Borrower a notice identifying thc (~-6(WY) (ooo5) Pa~e 5 o[ 15 (~ Form 3051 1/01 lien. Wi.thin 10 days of the date on which that notice is g~ven, Borrower shall satisfy the lien or take one or more of rite actions set forth above in this Section 4. Lender' may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with fi]is Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not linfited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay', in connection with this Loan, eitJ~er: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or sinfilar changes occur which reasonably might affect such determim~tion or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of rite coverages described above, Lender may obtain insurance coverage, at Lender's option and Bon'ower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but nfight or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that rite cost of the i~xsurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any am.ounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. Alii 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 adchtional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, rite Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In rite event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may ~nake proof of loss if not ~nade promptly by Borrower. Unless Lender and'Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of rite 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 fight to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless 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 earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the stuns secured by th.is Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond widfin 30 days to a notice from Lender that the insm'ance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Leander (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are 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 this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be m~reasonably withheld, or unless extenuating circmnstances exist which are 'beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or connnit 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 decreasiug in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in com~ection with dan~ige to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such pm-poses. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reaso~mble entries upon and inspections of tl~e Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at fl~e time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in co~mection with the Loan. Material representations include, but are not limJ.ted to, representations conceruing Borrower's occupancy of the Property as Bo~'ower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) tltere is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condennmtion or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned rite Property, then Lender may do and pay for whatever is reaso~mble or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any stuns secured by a lien which, has priority over this Security Instrument; (b) appearing in court; and (c) paying reaso~mble InitialsC~~ (~-6(WY) (ooos) PageTof 15 (~ Form 3051 1/Ol 38 attorneys' fees to proteci its interest in the Property and/or rights under this Security Instrmnent, including its secured position in a bankrnptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under tiffs Section 9, .Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized tmder this Section 9. Any amounts disbursed by Lender under riffs Section 9 shall become additio]ml debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If tlfis Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to th.e merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of nmking the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to nmke separately desig~mted payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately desig~kated payments that were due when the :insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is nltin~tely paid in f~fll, and Lender shall not be required to pay Borrower any interest or eanfings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately desig~mted payments toward the prenfiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately desiglmted payments toward the premiuins for. Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage I~ksurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for 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 al1 such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are. satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer nmy have available (which nk'ty include funds obtained from Mortgage Insurance prei~mms) As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive fi'om (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modiSdng the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of tim insurer's, risk in exchange for a share of the pre~fiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage insurance, and' they will not entitle Borrower to any refund. Initia~ . (~-6(WY)(ooos) PageBof15 CD Form3051 1/01 235 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and oDtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If rite restoration or repair is not econmnicallv feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to flue sums"secured by this Security hkstrument, whether or not then due, with rite excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total tahng, destruction, or loss in value of tbe Property, the Miscellaneous Proceeds shall be applied to the stuns secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In rite event of a partial taking, destruction, or loss in value of the Property in which the fair market value of rite Property immediately before the partial ta~ng, destruction, or loss in value is equal to or greater than the amonnt of the stuns secured by this Security Instrument iLmnediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by rite amount of the'Miscellaneous Proceeds nmltiplied by the following fraction: (a) the total amount of the sums secured intmediately before the partial taking, destruction, or loss in value divided by Co) the fair market value of the Property innnediately before rite partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the stuns secured by tlfis Security Instrument whether or not rite sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date rite notice is given, Lender is author/zed to collect and apply the Miscellaneous Proceeds either to restoration or repair of rite Property or to the stuns secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom BmTower has a fight of'action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or cr/minal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a dehult and, if acceleration has occurred, reinstate as provided in Section 19, by causing rite action or proceeding to be dismissed with a ruling that, in Lender's judgnrent, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under Otis Security instrument. The proceeds of any award or claim for damages that are attributable to rite impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. (~-6(WY) (ooo5) Page ~ of 15 (~(~) Farm 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Secm'ity Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to co;mnence proceedings against any Successor in interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security I~strument by reason of any demand nmde by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or rem.edy including, without limitation, Lender's acceptance of payments from flfird persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Bo~Tower who co-signs ~tfis Security Instrument but does not execute tl~e Note (a "co-signer"): (a) is co-sighting this Security Instrument only to mortgage, grant and convey the ~o-signer's interest in the Property under the terms of this Security Instrument; (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., m.odify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released front Borrower's obligations and liability under this Security Instrmnent unless Lender agrees to such release in writing. The covem~nts and agreements of this Security Instrument shall bind (except as provided in Section 20) and ben, fit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Bo~u'ower fees for services performed in com~ection with Borrower's default, for the pnrpose of protecting Lender's interest in the Property and rights under this Security instlmnent, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prolfibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrmnent or by Applicable Law. If the Loan is subject to a law which sets maximmn loan charges, and that law is finally intml~reted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the per~nitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for xmder the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of such overcharge. 15. Notices. All notices given'by Borrower or Lender in co~mection with this Security Instrument nmst be in writing. Any notice to Borrower i~t comxection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has desig~mted 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 o~tly one desiglk~ted notice address under riffs Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has desig~mted another address by notice to Borrower. Any notice in cormection with this Security Instrmnent shall not be deemed to have been given to Lender until actually received by Lender. if any notice required by this Security Instrmnent is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. Tiffs Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shalI mean and include corresponding neuter words or words of the fenfitfine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may~' gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrnment. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those benefi.cial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender :may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is protfibited by Applicable Law. If Lender exercises tiffs option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by tiffs Secmity Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in tiffs Security Instrument; (b) such other period as Applicable Law rrdght specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing Otis Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under tlfis Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enfbrcing this Security Instrmnent, including, but not linffted to, reasonable attorneys' fees, property inspection and valuation tees, and other fees incurred for the propose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security instrument, and Borrower's obligation to pay the sums secured by tiffs Security Instrument, shall conti~me unchanged. Lender may require that Borrower pay such reinstatement stuns and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity: or (d) Electrolfic Funds Transfer. Upon reinstatement by Borrower, this Security h~strument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 1.8. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with riffs Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments cfm under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA Init[als~ ~-6(WY){ooo51 P~of~s Form 3051 1/01 requires in connection with a notice of transfer of servicing. If die Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, die 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 mdess otherwise provided by the Note purchaser. Neither Borrower nor Lender may conm~ence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges diat the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reaso~mble period after the giving of such notice to take con'ective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of Otis paragraph. The notice of acceleration and oppo~tmtity 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 Enviromnental Law and the following substances: gasoline, kerosene, other flanmmble or toxic petrolemn products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environ.mental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environn~ental Law; and (d) an "EnviromnentaI Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause'or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Enviromnental Law, (b) which creates an Enviro~m:lental Condition, or (c) wlfich, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of snmll quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any govermnental or regulatory agency or private party involving tt~e Property and an), Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, Co) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any govenm~ental or regulatory authority, or any private part),, that an), removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall prompdy take all necessary relnedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. I~I~-6(WY) (000 s) Page 12 of 15 (~D Form 305t 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement iii this Security Instrument (but not prior to acceleration under Section 18 mdess Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure tine default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result iii acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after, acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment iii full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of inteut to foreclose to Borrower and to tine person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish tine notice of sale, and the Property shall be sold iii the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all stuns secured by this Security Instrument, Lender shall release Otis Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing dfis Security Instrument, but only if fl~e fee is paid to a tlfird party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~6(WY) (ooo5) P.¢e ~3 or15 (~5 Form 3051 1/01 24,1 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and irt any Rider executed by Bo~a-ower and recorded with it. Witnesses: DAVID DROLLETTE -Borrower LISA DROLLETTE -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -]3orrower (Seal) (Seal) -Borrower -Borrower (~)~6{WY) (ooos) Page 14 of 15 Form 3051 1/01 2, 5 STATE OF ~v~OMING, The foregoing instrument was acknowledged before me this by DAVID DROLLETTE AND LISA DROLLETTE Lincoln 22nd day of County ss: July, 2003 'My Commission Expires: November 4, 2006 Notary Public ~-6G(WY) {ooosl Page 15 of 15 Initial~ Form 3051 1/01