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HomeMy WebLinkAbout891975~e~m To: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 Prepared By: WELLS FARGO HOME MORTGAGE, INC. 8919-/5 REOEIVED :LINCOLN CouNTY CLERK 03 JUL. 19,19 DOUGLAS, , OMAHA, NE 681010000 [Space Above This Lflm For Recording Data] MORTGAGE 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 mbs regarding the usage of words used in this docmnent are also provided in Section 16. (A) "Security Instrument" means riffs document, which is dated JULY 2 2, 2 0 03 together with all Riders to this document. (B) "Borrower" is DONALD J KUNDINGER AND PAMELA M KUNDZNGER, 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 0028309938 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 Lender's address is P.o. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instrmnent. (D) "Note" means the promissory note signed by Borrower and datedJUr. Y 2 2, 2 0 03 The Note states that Bm'rower owes Lender ONE HUNDRED THIRTY FIVE THOUSAND SEVENTY FIVE AND 00/100 Dollars (U.S. $ * * * * 13 5, o 7 5.0 o ) plus interest. Borrower has pronfised to pay fltis debt in regular Periodic Payments and to pay rite debt in full not later than AUGUST 01, 2 013 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means rite debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this. Security hkstmment, plus interest. (G) "Riders" means all Riders to [his Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [~ Adjustable Rate Rider [~ Condominimn Rider ~ Second Home Rider [] Balloon. Rider ~ Planned Unit Development Rider ~ 1-4 Family Rider [~ VA Rider ~1 Biweekly Payment Rider [] Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (l) "Community 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 through an electronic terminal, telephonic instrument, 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 limited to, point-of-sale transfers, autmm~ted teller nmchine 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 damages, or proceeds paid by any third party (other titan insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmafion; or (iv) ~nisrepresentations of, or omissions as to, rite value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the noupaymem 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 rite Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be alnended front time to tilne, 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)(ooos) P.D~2o~S Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument 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 this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of l~ecording Jurisdiction] SEE ATTACHED LEGAL DESCRIPTION TAX STATEI~ENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, INC., P.O. BOX 10304, DES MOINES, IA 503060304 Parcel ID Number: 700 PRIVATE TREATY GROVER ("Property Address"): wlfich currently has the address of [Street] [City] , Wyoming 83:1.22 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. Ail replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrmnent as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the fight to mortgage, grant and convey the Property and that the Property is unencumbered, except for encmnbrances of record. Borrower warrants and will defend generally the title to ~e Property against all claims and dmmnds, subject to any encumbrances of record. THIS SECU~TY INSTRUMENT combines ulsform covexmnts for national use and non-u~form covmmnts with li~ted variations by jurisdiction to constitute a u~form security imstmment coveting real property. UNIFO~ 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 ~e principal of, and interest on, the debt evidenced by ~e Note and any prepayment charges and late charges due under ~e Note. Borrower shall also pay funds Ibr Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be ~tde in U.S. currency. However, if any check or other instrument received by Lender as~.xt under the Note or Otis ~6(WY) (ooo51 Pageaof ~s Form 3051 1/01 275 Security Instrument ~s returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or mnre of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, ba~zk 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) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bhng the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any hghts hereunder or prejudice to its rights to refuse such payment or partial 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 unapplied funds. Lender nmy hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reaso~able 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 innnediately prior to foreclosure. No offset or claim wlfich Borrower n:dght have now or in the future against Lender shall relieve Borrower front maki~g payments due under rite Note and tlfis Security Instrument or perfornfing the covenants and agreements secured by th/s Security InstrumenC 2. Application ot' Payments or Proceeds. Except as otherwise described in fids 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 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 this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may 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 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 nkay 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 stun (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; ' (b) leasehold payments or ground rents on the Property, if any; (c) prenSums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premimns, if any, or any stuns payable by Borrower to Lender in lieu of rite payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the tern~ of the Loan, Lender nmy require that Coaummity 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 fids Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obl/gatio~ to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may o~dy be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amomtts (~-6(WY) Iooo5) p~j~ 4 o~ ~s ~~ Form 3051 1/01 dne for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall fnntish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security InsU,ament, as the phrase "covenant 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 for an Escrow Item, Lender amy exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender ~nay revoke the waiver as to any or ail Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, BolTower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at an}, 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 the maximmn amount a lender can require under RESPA. Lender shall, estimate the amount of Funds due on the basis of current data and reasonable estinmtes of expenditures of future Escrow hems or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (inchiding Lender, if Lender is an institutiou whose deposits are so insured) or in auy Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Fm~ds 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, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an a~maal accounting of the Funds as required by RESPA. If there is a smplus 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 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthiy payments. Upon payment in full of all sums secured by fids Secm-ity Instrument, Lender shall promptly refund to Borrower any Fuuds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over fids Security Instrument, leasehold payments or ground rents on the Property, if any, and Cmmnunity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a nmlmer acceptable to Lender, but only so long as Borrower is per.forming such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which, in Lender's opinion operate to prevent the mfforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures fi'om the holder of the lien an agreement satisfactory to Lender subordinating th.e lien to this Secm:ity Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender ~nay give Borrower a notice identifying the (~-6(WY) (ooos) P~g. ~ or t5 ~ Form 3051 '~I01 277 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or nrore of the actions set forth above in Offs 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 cotmection with this Loan. 5. Property Insurance. Bon'ower shall keep the improvements now existing or hereafter erected on rite Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards .including, but not limited to, earthquakes and floods, for wl~ch 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 rite preceding sentences can change during rite term of rite Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Bon'ower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in cmmection with fids Loan, either: (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 sin]ilar changes occur which reaso~mbly might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with rite review of any flood zone deterufination resulting from an objection by Borrower. If Borrower fails to maintain any of rite coverages described above, Lender nxay obtain i~Lqurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might 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 the cost of rite insurance coverage so obtained might sign/flcantly exceed the Cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under fltis Section 5 shall become additional, debt of Borrower secured by this Security Ilkstmment. These amounts shall bear interest at rite Note rate from rite 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 fight to .disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have rite fight to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of pMd 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 shM1 include a standard mortgage clause and shall name Lender as mortgagee and/or as an additio~ml loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier attd Lender. Lender may make proof of loss if not nk'tde prom.ptly by Borrower. U~dess Lender and Borrower otherwise agree in wfiting, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if rite restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a siugle payment or in a series of progress payments as the work is completed. U~tless au agreement is ~nade 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 ear~fings 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 Bon'ower. If rite restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to rite stuns secured by this. Security Irkstmment, whether or not then due, with (~l~-6(WY}(ooo5, P age6of15~~~'~'"'~Form3051 1/01 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 insura~ce claim and related matters. If Borrower does not respond within 30 days to a notice'fi-om Lender tlaat the insurance 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, ol' if Lender acquires the Property ~mder Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insm'ance proceeds in an amount not to exceed, the amounts unpaid under the Note or fi]is Security Instrument, and (b) any other of Borrower's rights (other tl~an the right to any refund of uneaixted premiums paid 'by BorroweO under all insurance policSes covering the Property, irksofar 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 flzis 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 Inst~'ument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupa~acy, unless Lender otherwise agrees in writing, which consent shall not be mn:easonably widfl~eld, or unless extenuating circumstances exist which are beyond Borrower's control. '7. Preservation, Maintenance and Protection of the Property; Inspections. Bo~5ower shall not destroy, damage or impair tl~e 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 decreasing in value due to its condition. Unless it is deternfined pursuant to Section 5 drat repair or restoration is not economically feasible, Borrower shall promptly repair the Property if danmged to avoid further deterioration or damage. If insm'ance or condenmation proceeds are paid in co~mection with danmge to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property o~lly if Lender has released proceeds for such proposes. Lender may disburse proceeds for the repairs and restoration in a si~gle payment or in a series of progress payments as fire work is completed. If the insurance or condenmation 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 reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender nmy inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspectio~ specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Bo~xower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave ~naterially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender wifl~, material i~fformatio~O in c0~mection with the Loan. Material representations include, but are not limited to, representations concer~fing Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the 15'operty and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained i~ this Security Instrument, (b) there is a legal proceeding that.might sig~fificantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bank~2ptcy, probate, for condenmation or forfeiture, for enforcement of a lien wlfich may attain priority over this Secm-ity Inst~2ment or to enfbrce 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 this Security Instnnnent, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actio~s can include, but are ~ot limited to: (a) paying any sums secured by a lien which has priority over this Security Insmm~ent; (b) appearing in court; and (c) paying reasonable {~i)~-6(WY) (ooos) P~ 7 of 15 Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or fights under this Security Instrument, including its seem-ed position in a bmLkmptcy 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 fi]is Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed fimt Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Insmnnent. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such iuterest, upon notice from Lender to Borrower requesting payment. If this Security instrument is on a leasehold, Borrower shall comply with all Ute 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 the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage h~surance in effect. If, for any reason, rite Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall 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 th~ amount of the separately designated payments that were due when rite insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mmtgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period flint Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward rite premimns for Mortgage Insmance. if Lender required Mortgage Insurance as a condition of nmking the Loan and Borrower was required to nmke separately designated payments toward rite premiums 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 requirmnent for Mortgage Insurance 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 rehnburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay rite Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total fisk on all such insurance in force from time to time, and nk~ty 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 fl~e mortgage insurer and rite 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 ~nay have available (which nmy include funds obtained from Mortgage Insurance prenfiums). 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 from (or might be characterized as) a portion of Borrower's payments, for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive rei~L~urance." 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 Insnrance, and they will not entitle Borrower to any refund. (~-6(WY) looos) p~g~aof~5 ~ Form 305I 1/01 280 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homemvners Protection Act of 1998 or any other law. These rights may include the right to receive certaiu disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a rebind of any Mortgage h~surance premimns that were unearned at tine time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. AIl Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. if rite Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, :if rite 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 opportmtity 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 restorations 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 the restoration or repair is not econonfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destructions, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sunks secured by tlfis Security Instrument, whether or ~ot then due, witl~ the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property ia wJ2ich the hit market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the stuns secured by tlds Security h~trument i~mnediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the stuns secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured innnediately before the partial, taking, destruction, or loss in value divided by (b) the fair u~trket value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the hir market valne of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured iNmnediately before the partial taking, destruction, or loss in value, unless BorroWer aud Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. 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 nntke an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after tt~e date the notice is given, Lender is audtorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of rite Property or to the sums secured by this Security Instrument, whether or not fl~.en due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against .whom Borrower has a figl~t of action in regard to Miscellaneous Proceeds. Borrower shatl be in default if any action or proceeding, whether civil or crimimd, 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 default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action, or proceeding to be disnfissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in fine order provided lbr in Section 2. (~e-6(WY) (ooos) Pa~. 9 of 15 ~ Form 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 Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of 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 this Security Instrument by reason of any demand nmde by the original Borrower or any Sucdessors in Interest of Borrower. Any forbearance by Lender in exercisin~ an.y right or remedy including, without limitation, Lender's acceptance of payments from d~ird persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute thc Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pa}, the sums secured by this Security Instrument; aud (c) agrees that Lender and any other Borrower can agree to extend, modify, lbrbear or nmke 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 fids Security Instrument. Bon'ower shall not be released from Borrower's obligations and liability under this Security Insmunent mfless Lender agrees to such release in writing. The covenants and agreements of tltis Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 1.4. Loan Charges. Lender may charge Borrower fees for services performed in cmmection with Borrower's default, for the pm'pose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prolfibition on the charging of such fee. Lender n~y not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. if the Loan is subject to a law which sets maxinrum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be colIected in com~ection with the Loan exceed the pernfitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pemfitted limit; and .(b) any sums already collected from Borrower which exceeded pernfitted linfits will be refimded to Borrower. Lender may choose to make riffs 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 under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in coimection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class ~mil or when acmall¥ delivered to Borrower's notice address if sent by other mealx~. Notice to any one Borrower shall constitt~te notice to all Borrowers m~less Applicable Law expressly requires otherwise. The notice address shall be the Property Address mzless 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 designated notice address under th_is Security InStmlnent at any one time. Any notice to Lender shall be given by delivering it or by nmiling it by first class nk'dl to Lender's address stated herein unless Lender has desig~mted another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to l~ave been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. (~)~-6(WY) (ooo51 Page 10 of lS ~ Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Imstrument 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 rite parties to agree by contract or it might be silent, but such silence shall not be const~x~ed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrmnent or the Note conflicts with Applicable Law, such contli.ct shall not affect other provisions of fi]is Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the nmsculine gender shall mean and include corresponding lmuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa-; and. (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instnm~ent. 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 linfited to, those beneficial interests transferred in a bond for deed, contract fbr 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 iu 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 in:nnediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law, If Lender exercises tlfis option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi:om the date the notice is given in accordance wifl~ Section 15 within wlfich Borrower must pay all sums secured by this Security Instrument. if Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrmnent without further notice or demand on Bon-ower. 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 this Security Instrument; (b) such other period as Applicable Law ufight specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Boo,rower: (a) pays Lender all sums wlfich then would be clue under this 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 incm-red in enforcing this Security Instrmnent, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and. other lees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instalment; and (d) takes.such action as Lender nmy reasom~bly require to assure that Lender's interest in the Property and rights m~der fi]is Security Instrument, and Borrower's obligation to pay the sums secured by fi]is Security Instrument, shall continue m~changed. Lender may require that Borrower pay such reinstatemem stuns and expenses in one or more of rite following forms, as selected by Lender: (a) cash; (b) money order; (c) certilied 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) Electronic Funds Transfer. Upon reinstatement by Borrower, t/tis Security I~x~trument and obligations secured hereby shall remain dilly effective as i.f no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in rite Note (together with this Security Instrmnent) can be sold one or more times without prior notice to Borrower. A sale nfight result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due 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 mn'elated to a sale of tl~e Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state rite name and. address of the new Loan Servicer,' rite address to which payments should, be nkqde and any other information RESPA (~)~-6(WY) Iooos) Page 11 of 15 ~~ Form 3051 1/01 requires in co~mection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individnal litigant or the member of a class) that arises from the other party's actions pm-suant to tlfis Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other 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]]able period after the giving of such notice to take corrective action. If Applicable Law provides a time period Milch must elapse before certain action can be taken, that time period will be deemed to be reasolmble for purposes of this paragraph. The notice of acceleration and opportunity 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 Secd. on 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 flannnable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or forrmddehyde, and radioactive materials; (b) "Enviromnental 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 respom~e action, remedial' action, or removal action, as defined in Environmental Law; and (d) an "Enviromnental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleannp. Borrower shall not cause or permit the presence, use, disposal, storage, or release of an5, 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 Enviro~m~ental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the ProPerty (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written ~otice of (a) any investigation, claim, 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 which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leakiug, discharge, release or fin-eat 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 govermnental or regulatory authority, or any private party, that an5' removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law'. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. (~-6(WY) (OddS) Page ~2 or ~ 5 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lm~der further cove~ant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleratiou under Section 18 unless Applicable Law provides other~vise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days froin 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 iu 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 an), 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 in full of all sums secured by this Security Instrument without further denmnd and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner pro¥ided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but uot 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 sums secured by fids Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but oztly if the fee is paid to a third 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 Wyonfing. (~-6{WY) Iooos) Pag~ 13 of 15 orm 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded wi~ it. Wimesses: ~~~' ~ '~- (Seal) DONALD 3 K~INGER ~Borrower ~~al) ~E L~I/ND I~R f -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~o56(WY) (ooo5) Page 14 o[ 15 Form 3051 1/01 286 STATE OF WYOMING, /-. t' rtr~l ~x County ss: by DONALD J KUNDINGER AND PAMELA M KUNDINGER My Conmfission Expires: Notary (~SG(WY) (ooos) Page 15 of 15 Initials:__ Form 3051 1/01 LEGAL DESCRIPTION 287 A tract of land lying in the NW~XNE~ of Section 7, T32N RllSW of the 6th P.M., Lincoln County, Wyoming more fully described as follows: BEGINNING at a point which is 75 feet West and 40 feet S 0°05' E from the NE corner of the NW~NE~ of said Section 7 and proceeding thence S 0°05' E, 165 feet; thence West 264 feet; thence N 0°05' W, 165 feet; thence East 264 feet.to the POINT OF BEGINNING. TOGETHER with the right of ingress and egress across the following described land: A tract of land lying in the NW~NE~ of Section 7, T32N RllSW ef the 6th P.H., Lincoln County, Wyoming being a parcel being sixty feet in width, with 30 feet en each side ef the following described line: BEGINNING at a point being West, 75 feet; S 0o05, E, 40 feet; West, 264 feet; S 0o05, E, 30.00 feet from a brass cap monument marking the Northeast corner of the NW~NE~ of said Section 7; thence running West, 23.78 feet; thence S 38°19'16" W, 398.99 feet; thence running S 87o13'44'' W, 281.54 feet to an iron pipe set in the easterly terminus' of the center line of an existing 66 foot wide easement from U.S. Highway 89.