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HomeMy WebLinkAbout878187 After Recording Return To: COMMTrNITY FIRST NATIONAL BANK 200 NORTH CENTER STREET ROCK SPRINOS, WY 82901 [Space Above This Line For Recording Data] ItOWES MORTGAGE ~,o~ ~: P~CEL ~MBER: DEFINITIONS Words tlsed in multiple sections of this document are defined below and other words are defifled ~n Sections 3, ] 1, 13, 18, 20 and 21. Certain roles regarding the asage o~' words used in this document are also provided hl Section 16. (A) ~Security InstrumenF~ means this docume]l[, which is dated DECEMBER 26, 2001 togdher with all Riders to this document. (B) ~BorroweF'is ERIC D. HO~S ~D DEB~ HO~S, ~SB~D ~D WIFE ~ Borrower is the mortgagor under this Security Instrument. (C) "Lender" is COMMUNITY FIRST NATIONAL BANK /. J Lender is a CORPORATION organized and existing under the ,,), laWs of THE UNITED STATE OF AMERICA .Lender's address is 200 NORTH ' t. CENTER STREET ROCK SPRINOS, WY 82901 .~,~.: Lender is the mortgagee under this Security Instrument, ~' (D) "Note" means the promissory note signed by Borrower and dated DECEMBER 26, 2001 The Note states that Borrower owes Lender EIOHTY-TWO THOUSAND AND 00/100 Dollars (U.S. $ 82,000.00 ) plus interest. Borrower has promised: [o pay this debt in regular Periodic Payments and to pay the debt in full not later than JANUARY 1, 2032 (E) "Property" means the property that is described below under tim heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the~ Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. WYOMING - Single Family - Fam~ie MadFreddie Mac UNIFORM INSTRUMENT Fo~an .]05'1 1/01 DOCU1WY1 (Page I of 12 pages) G) "Riders" means all Riders to this Security Instrument that a-e executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Condomini~um Rider [] Second Home Rider [] Balloon Rider [] Planned Unit Development Rider [] Biweeldy Payment Rider [] 1-4 Family Rider [] Other(s) [spe~ify] TAX-EXEMPT FINANCINO RIDER (1t) ~Applicable Law" means all conti~lling applicable federal, state and local statutes, regulations, ordinmlces and administrative roles and orders (that have the effect of law) as well as alt applicable final, non-appealable judicial opinions. (I) "Community Association Du~, 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 organizatior~ (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, m~tomated teller machine transactions, transfers initiated by telephone, wire transfers, md automated clearinghouse transfers. (K) "Escrow Items" means those items that are described h Section 3. (L) 'qVliscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnatim; or (iv) misrepresentations of, or omissions as to, the value aal/or condition of the Property. (h/I) ~rMortgage Insurance" means insurance Fotecting Lender against the nmpayment of, or default on, the Lomx. (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 Instnm~ent. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi:om 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 requiremmtts 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. (P) "Successor in Interest of Bm'rower" means any party that has taken title to the Property, whether or not that party has assumed Bon~wer'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 (Type of Recording ~\~fisdiction) Of LINCOLN (Name of Recording Jufisd ictioa) LOT 15 OF BLOCK 4 OF THE LINCOLN HEIOHTS 3RD SUBDIVISION TO THE TOWN OF KEMlqERER, LINCOLN COUNTY, WYOMINO AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. / which currently has the ',ddress of 1302 GARNET STREET [Street] ~RER ,Wyoming 8 3101 ("Prq~erty Address"). [City] (Zip Co~te] WYOMING - Single Family - F~mnie Mae/Freddie Mac [/NIFORM INSTRUMENT Form 3051 1/01 DOCUIWY2 ('Page 2 of 12 pages) ~oc~wYa .~'?x ~:./0~/a000 TOGETttER WITH all the improvements now or hereafter erected on the property, and all easements, appurtertances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Sem~rity Instrunmnt. All of the foregoing is referred to in this Security Instrmnent as the "Property." BORROVV~ER COVENANTS that Borrower is lawfully seized of lhe estate hereby conveyed and has the right to mortgage, grea~t and com, ey the Property and that the Property is unencumbered, except for enm~mbrances of record. Borrower Warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFOR'M COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, nmi Late Ohnrges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges d~_~e under the Note. Borrower shall also pay funds for Escrow Items"pursuant to Section 3. Payments due under the Note mid this Security Instrument shall be made in U .Scurrency. HOwever, if any check or other instrmnent received by Lender as payment under the Note or this Security Instrument is returned to Lender ur~paid, Lender may requ/re that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bm~k check, treasurer's check or caslqier's check, provided an'y such check is drawn upon an institution wlxose deposits are insured by a federal agmmy, instrumentality, or entity; or (d) Electronic Funds Trtmsfer. Payments are deemed received by Lender when received at the location designated in the Note or at si'Ich other location as may be designated by Lender in accordance with the notice provisions m Section 15. Lender may return any payment or partial payment if the payment or partial paynmnts are insufficient to bring the Loan current. Lender may accept an'y payment or partial payment insufficient to bring ttxe Loan current, without, waiver of any rights 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 su. ch payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on xmapp'lied funds. Lender may hold such unapplied funds nntil 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 thorn to Borrower. If not applied earlier, such funds wlll 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 fu.ture against Lender shall relieve Borrower from making paymeuts due under tlxe 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: (a) interest due under the Note; (b) principal due under the Note; (c) ammmts 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 sufficieut 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 Ihe full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall beapplied first to any prepayment charges and then a,s described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note st~all not extend or postpone the due date, or cha~ge the amount, of lhe Periodic Payments. 3. Funds for Escrow ]'toms. Borrower shall pay to Lender on the day Periodic Payments are due xmder the Note, until the Note is paid in full, a sum (the "l~\~nds'') 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 enmnrilirance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance WYOMING - Single Family - l~'mmie Ma e/l:'r ed die M:u c L~I-F OR,M INfiTRUMEN'[' l~'onn, 3051 1/01 DOCUlWY3 (Zz'age 3 of 12 pages) 68 required by Lender under Section 5; and (d) Mortgage ~asur~mce premiums, if any, or any sums payable by Bo~ower to Lender in lieu of ~he payment of Mortgage Insurance pre.urns in accordance with the provisions of Section 10. These items are called "Escrow Items," At origination or at any lime during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escroWed by Borrower, and such dues, fees and assessnmnts shall be an Escrow Item. Borrower shall promptly furnish to Lender all nolices of amounts to be paid xmder this Section. Bon-ower shall pay Lender the ~l~ds fbr Escrow Items unless Lender waives Bon-ower's obligation to pay the :~mds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for tory or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Bo~xower shall pay directly, when and where payable, the ammmts due for any Escrow Ite~ for which payment of Funds has been waived by Lender and, if Lm~der requires, shall furnish 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 robe a covenant and agreement contained in this SEcurity Instrument, 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 may exercise its rights under Section 9 m~.d pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or :all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all b~nds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds m mi amount (a) sufficient to pernht Lender to apply the ~nds at the time specified under RESPA, and 0~) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate Om amount of ~nds due on the basis of current data ~d reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposks are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution wh.ose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds [o pay the Escrow Itenm no later than the time specified under RESPA. Lender shall h0~ charge Bo~ower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Bo~ower interest on the ~nds and Applicable Law per, ts Lender to make such a charge. Unless ~ agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Bo~ower any interest or earnings on the Pnnds. Borrower m~d Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an ammal acco~mting of the ~mds as required by RESPA. If there is a su~lus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess flmds in accord~mce with. RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by ~SPA, and Bo~ower shall pay to Lender 'the amount necess~ to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of ~nds held in escrow, as defined trader RESPA, Lender shall notif~ Bo~ower as required by RESPA, ~d Bo~ower shall pay to Lender the amount necess~y to make up the deficiency in accordmme with RESPA, but in no more than 12 monthly payments, Upon payment in fl~ll of all sums secured by this Security Instn~ment, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Bo~ower shall pay ~dl taxes, assessments, ch~ges, fines; and impositions attributable to the ~opemy which can attain priority over els Security lnstn~ment, leasehold payments or ground rents on the Property, if m~y, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in fl~e manner provided in Section 3. Bon'ower shall promptly disch~ge any lien which has priority over this Security Instrument unless ' Borrower: (a) agrees in writing to the payment of the obligation secmed by the lien in a manner acceptable to Lendey, but only so long as Borrower is perfor~ng 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~ elfforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfacto~ to Lender subordinating the lien to this Security Instrument. If Lender deten~nes that m~y part of the Property is subject to a lien which can attainpriority over this Security Instrument, Lender may give Bo~ower a notice identifying the lien. Within 10 days of the date on which WYOMING - Single Family -Famde Mae/Freddie Mac [~IFORM INSTRUMENT Form 3051 1/0l 'DOCUiWY4 ('Page 4 of I2 pages) that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lehder may require Bol~ower to pay a one-time charge tbr a real estate tax Verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower sh011 keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended cove:rage," ~d any other hazm-ds including, but not limited to, e~thquakes mxd floods, for which Lender requires insur~ce. This insurmxce 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 clnosen by Borrower subject to Lender's right t0 disapprove Bo~ower's choice, which right shall not be exercised unreasonably. Lender may require Bo=ower to pay, in connection willx this Loan, ei. ther: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time or,ge for flood zone detern~nation m~d certification services and subsequent charges each time remappings or simil~ ch~ges occur which reasonably might affect such determination or certification. Bogower shall also be responsible for the payment of m~y fees imposed by the Federal Enmrgency Managemen~t Agency in connection with the review of any flood Zone determination resulting fi'om an objection by Bogower. If Borrower fails to maintain mxy of the coverages described above, Lender may obtain insurance coverage, at Lender' s option and Bogower' s expense. Lenderis under no obligation to purclxase ~y particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Bo~ower, Bo~Tower's equity in the Property, or the contents of the Property, against any risk, hazard or liability m~d ~ght provide greater or lesser coverage than was previously in effect. Bo~Towm' acknowledges that the cost of the insur~ce coverage so obtained might signific~tly exceed the cost of insurance that Borrower cmfld have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Boffower secured by this Security Instrument. These amounts shall bear interest at the Note rate fi'om the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender ~md renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgag~lause, and shall name Lender as mortgagee and/or as ~ additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Bo~ower 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, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Boffower. Unless Lender and B offower otherwise agree in writing, insurance proceeds, whether or not the tmderlying insurm~ce was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is econo~cally feasible m~d 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 Pr0pe~y 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 restoration in a single payment or in a series of progress payments as the work is completed. Unless ~ agreement is made in writing or Applicable Law [equires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees tbr public adjusters, or other thirdparties, retained by Bo=ower shall not be paid out of the insur~ce proceeds and shall be the sole obligation of Borrower. If the restoration or repair i.s not economic~ly feasible or Lender' s security would be lessened, the insuraace proceeds sh~ll be applied to the sums secured by this Security fl~strument, whed~er or not then due, with the excess, if ~y, paid to Bo~ower. Such insurance proceeds shall be applied in the order provided for in Sect:ion 2. If Bo=ower abandons the Property, Lender may file, negotiate m~d settle any available insur~ce cl~ln related matters. If Boffower does not respond within 30 days to a notice from Lender that 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, or if Lender acquires the Prope~y under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds m an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and ¢) any other of Borrower's rights (other thmfl~e right to any refund of unearned premiums paid by Bo~ower) m~der all insurance policies covering the ~operty, insof~ as such rights WYOMING'- Single Family - Famde ~{a~reddie Mac ~ORM INSTRI~MENT ~'on~ 3051 1/01 DOCUIWY5 ~Page 5 of 12 pages) '7 0 are applicable to the coverage of the Property. Lender may use the insuranceproceeds 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. Oeenpaney. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60~ days after the execution of this Security h~strument and shall continue to occupy the Property as Borrower's principal residence for at least one yea? after the date of occupancy~ unless Lender otherwise agrees in writiflg, which consent shall not be unre~onably withheld, or unless extenuating circumstances exist Which are beyond Borrower's control. 7. Preservation, Maintenance lind Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit 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 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 insurm]ce or condemnation proceeds are paid in connection with damage 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 purposes. 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 %ondemnation proceeds are not sufficient to repair or restore tl\e 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 may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at tile time of or prior to such an interior ~nspection 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 consmtt gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with materiaI information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of t2~e Property as Borrower's principal residence. 9. Protection of LendeWs Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security h~strument (such as a proceeding in ban 'kruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority ()ver th'is Security h~strument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, thm~ Lender may do and pay for whatever is reasonable or approp:rmte to protect Lender's interest in the Property and rights under this Secur/ty Ins trument, including protecting and/or assessing !he 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 reasonable attorneys' fees to protect its interest in the Property and/or rights 'trader this Security Instrument, including its secured positkm in a bankruptcy proceeding. Secut'ing 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 ottler code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no lial;ility for not taking any or all actions m~thorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall beck)me additional debt of Borrower secured by this Security Instrument. These amounts sh~ll bear interest at the Note rate from the date of disbu!isement and shall be payable, with such interest, upon notice from Lender to Borrower reques ting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borro~yer acquires fee title to [tie Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Morigage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insure'race in effect. If, for any reason, the Mortgage lnsurm~ce coverage required by Lender ceases to be available from the mortgage insurer that previm~sly provided such insurance and Borrower was required to make separately designated payments toward the pren~ums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substm~tially equivalent to WYOMING- Single Family -Famfie Mae/Freddie Mac L~'IFO R~[ INSTRUMENT Form 3051 1/01 DOCUIWY6 ?age 6 of l 2 pages) DOCU1WY6 .¥?X 11/0&/2000 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 ,~;!mll continue to pay to Lender tt~e amount of the separately designated payments that were due when the insurm~ce coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-reflmdable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be :non-refundable, notwitl~st~mding the ['act that the Loan is .ultimately paid in t\~ll, and Lender shall not be required to pay Borrower any interest or earnings on st:tch loss reserve. Lender can no longer reqcm'e loss reserve payments if Morlgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the pren-d'ums required to maintain Mortgage Insurance in effect, or to provide a non-ref\mdable loss reserve, until Lender's requirement for Mortgage Insurm~ce 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 tile Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their tot~fl risk on ail suets, 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 ma5, require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage h~surance prerniums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, mD, reinsurer, an'y other entity, or any affiliate of an}, 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 fo~sharing or modifying the mortgage insurer's risk, or reducing losses, if such agreement provides that ax~ affiliate of Lender takes a share of the insurer's risk in exch.gnge for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage lnsurance~ or any other terms of the Loan. Such agreements will not increase the amonnt Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a rebind 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 the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured hy this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in d~e order provided for in Section 2. In the event of a total la:king, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, Whethgr or not then due, with the excess, il' any, paid to Borrower. WYOMING - Single Family - Yannie Mae/Freddie Mat: I'TNIEO IIM INS'I'RU~ IENT Ii'erin 3051 I/0l DOCUlW¥? (Page 7 q~ 12 pt~ges.) In t'he event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property in-n-nediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the pm'rial taking, destruction, or loss in value, xmless Borrower and Lender otherwise agree in writing, the sums secured by this Securitylnstrument shall be reduced by the amount of the Miscellmteous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured in2nediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Propm:ty immediately before tlne partial taking, destruction, or loss in value is less than the amount of the sums sea,red immediately before the partial taking, destruction, or loss in yahoo, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the stuns secured by this Security Instru:ment 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 [he next sentence) offers to make m~ award to settle a claim, for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized 'fo collect and apply the M'iscel.lanerms Proceeds either to restoration or repair of the Property or to the stuns secured by this Security Instrument, whether or not then clue. "Opposing Party" means the third pm'ty that oWes Borrower Miscellaneous Proceeds o:r lhe party against Whom Bon:ower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or pr'oceeding, wh~ther civil or criminal, is beguu that, in Lender's judgment, could result in forfeiture of theProperty or other material impairment of Lender's interest in the Property or rights under this Security Instnfinent. Borrower can cure 'such a default and, if acceleration has occurred, reinstate as provided in Section 19, by cm:lsing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any 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 the order provided for in Section 2. 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 Secmity 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 m 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 modi[y amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or tory Successors in Interest of BorrOwer. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of paYments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Ca-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrumentonly to mortgage, grant and convey the co-signer's interest in the Property ~lnder the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make an}, accommodations with regard to the terms of this Security Instrmnent or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower Who assmnes'Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of BorroWer's rights,,and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Bon:ower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any WYOMING - Single Family - Fam~ie Mae/lCred~lie Mac UNII?ORlVl INSTRUMENT Form 30S1 1/01 BOCU~WYS (Page 8 ~>f 12 pages) ~ocux~a.wx x~/o~/aooo other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Secprity Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge sha]l be r.gduce{by the amountnecessary 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. It' 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 b'y direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge, lS. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address ifsent by other means. Notice to any one Bon'ower shall constitute notice to all Borrowers unless Ap'plicable Law expressly requires otherwise. The notice address shall be the Property Address ~,mless BotTower has designated a substitute notice address by notice to Lender. Borro?er shah 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 this Sem~rity 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 tmless Lender has designated another address by notice to Borrower. Any notice in connection with this Sem~rity instrument shall not be deemed tohave been given to Lender until actually receh, ed by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law req'uirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrumem shall be governed by federal law and the law of the jurisdiction in which the l'h'operty is located. All rights ~md obligations contained in this Security Instrument are subject to any requirements m~d limilntions 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. Inthe event fl~at any provision or clause of this Security Instrument or the Note conflicts with Applic'able 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 II~e masculine gender shall mean and include corresponding neuter 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 Sem~rity Instrument. 18. Transfer of the Property or t~ Beneficial Imerest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Propcrty, including, but not limiled to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is ~he transfer of title by Borrower at a l\lture date to a purchaser. If all or any part of tim Property or any Interest in thePropelty 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 Insmm~ent, However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender §hail give Borrower notice of acceleration. The notice ~hall 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 permilted by this Security Instrument without further notice dr 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 disconti~med at any time prior to the earliest of WYOMING - Single Family -Fmmie Mae/Freddie Mac ENIFORM INSTRUMENT Form 3051 V01 DOCUIWY9 (Page 9 of 12 pages) (a) five days before sale of the Property pursuant to any power of sale contained m this Security Instrument; (b) such other period as Applicable Law might specify fl0r the ter~nation of Bon'ower's right to reinstate; or (c) entry of a judgmmxt enforcing this Security lnstnlment. Those conditions are that Borrower: (a) ~pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (h) cures any default of any other covenants or agreemeats; (c) pays all expenses incurred in mfforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incuxed ibr the purpose 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'~ interest in the Property and rights under this Security Instrument, and Bo~ower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Bo~ower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified Check, b~k check, treasurer's check or cashier's check, provided any such check is drawn npon an institution whose deposits are insured by a federal agency, instn~mentality or entity; or (d) Electronic ~mds Transfer. Upon reinstatemm~t by Borrower, this Security Instrument and obligations secured hereby shall remain flilly effective asif no acceleration had occurred. However, this rig!~t 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 the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (~own as the "Lo~ Servicer") that collects Periodic Payments due under the Note and this Security Instrument and perfor~ other mortgage loan sea, icing 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, Bo=ower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payment,ho'uld be made and any other information ~SPA requires in connection with a notice of transfer of servicing. If the Note is sold alld thereafter the Lo~ is serviced by a Loan Se~icer other thm~ the pm'chaser of the Not< fl~e mortgage loan se~,icing Obligations to Bo=ower will remain with the Lo~ Servicer or be trm~sfe~ed to a successor Loan Servicer m~d ~e not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Bo~ower nor Lender may conxnence, join, or be joined to any judicial action (as either an individual litig~mt or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reascm of, this Security Instrument, until such Bo~ower or Lender has notified the other party (with such notice given in compli~ce with the requirements of Section 15) of such alleged breach m~d afforded the other party hereto a reasonable period after the giving of such notice to take co~ective action. If Applicable Latv provides a ti~ period which must elapse before certain action cmn be taken, that t~me period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice o~' acceleration given to Bo=ower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of [his Section 20. 21, Hazardous Substances. As used ~n this Section 21: (a) "Hazardous Substances" m'e those substances defined as toxic or hazardous substances, pollutants, or wastes by Envir(mmental Law ancthe followin~ substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile soh,ents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to heal[h, saf'ety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedml 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 mx Environmental Cleanup. Borrower shall not cause or permit tl~e presence, use, disposal, storage, or release of any Hazm'dous Substt~ces, or threaten to release any Hazardous Substances, on or in theProperty. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) [hat is in violation of any Environrnental Law, (b) which creates an Environmental Condition, or (c) xvhich, due to the presence, use, or release of a Haz~dous Subst~ce, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply the presence, use, or storage on the Property of small qu~tities of Haz~dous Substances that are generaIly WYOMING - Single Family - Falmie 1Mae/Freddie Mac UNIFORM INSTRUMENT Form 31)51 1/01 DOCUiWY10 (Page 10 cfi2 pages) DOeU~Y~,,VWX ~,I/Ot,/2000 75 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 govm~nmental or regulatory agency or private pm'ty revolving the Property m~d m~y Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Euvironmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of ,my Hazardous Substance, and (c) any condition cm~sed 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 governmental or regulatory mtthority, ot m~y private party, fhat arty removal or other remediation of any Hazm'dous Substance affecting the Property is necessary, Borrower shall promptly take all necess~¢y remedial actions m accordance with Environmental Law, Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender fl~rther covenant mid agree as follows: 22. Acceleration; Remedies. Lender slmll give notice to Borrower prior to acceleration following Borrower's hreaeh o[' any covenant or agreement in this Security lnstrnment (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify:"(a) the deflmit; (b) the action required to cure the defaulB (c) a date, not less than 30 days ['rom the date the notice is given to Borrower, by which the default nmst be cra'ed; and (d) that failure tu cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument ami sale of the Property. The notice shall further inh}rm 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 cra'ed on or before the date specified in the notice, Lender at its option may require immediate payment in full o~' all sums secured by this Security Instrument without fl~rther 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 evideneel 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 provided 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 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 sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any rec~ordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted trader Applicable Law. 24. Waivers. Borrower releases and waives all rights nnder m~d by virtue of the homestead exemption laws of W'yoming. WYOMING - Single Fanfily - Fmmie Mae/Freddie M'ac UNII~'¢)RM INSTRUMENT Form 30~1 1/111 DOCU1WYll (Page 21 ,~ 22 page~') BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenm~ts contained in this Security Instrument and in any Rider executed by Borro.wer and recorded with it. _(Seal) B O~Tower (Seal) Borrower ERIC D. ~O~fi '//'' Bo/Tower ~EBRA ttOEfi Bon'ower (Seal) .(Seal) B OtTower Borrower [Space Below This Line For Acknowledgment] STATE OF COUNTY OF LINCOLN The foregoing instrument was acknowledged before me by ERIC D. HOWE~ AND DEBRA HOWES this 26TH day of DECEMBER, 2001 } LINCOLN ~ ~OMING ~ My Commas '~m WYOMING - Single Family - Famde Matgl?reddie Mac T,~%TIFORM INSTRUMENT Form 31151 1/111 Docu1WYI2 ('Page 22 of J2 pages) nocmm'c.wx ss/oa/aooo MORTGAGE ADDENDUM The following is an Addendum to the Mortgage. The addendum shall be incorporated into, and recorded with, the Mortgage. TAX EXEMPT 'FINANCING RIDE~'}~'~" This Tax-Exempt Financing Rider is incorporated into and ahall bc deemed to amend thc terms of the Mortgage to which it is attached. In addition to the covenants and agreements made in thc Security instrument, Borrower and'Lender further covenant and agree as follows: Lender, or such of its successors or assigns as may, by separate instrument, assume responsibility for assuring compliance by thc Borrower with thc provisions of this Tax Exempt Financing Rider, may require 'immediate payment in full of all sums secured by this Sect/ri ~ty Instrument if; Ail or parl. of [tie Property ~old or otherwise transferred (other th~ui by devise, descent or operation of law) by Borrower to a purchaser or other transferee: i) Who cannot reasonably be expected to occupy the property as a principal resident within a reasonable time after the or transfer, all as provided in Section 143(c) and (iI (2} of the Internal Revenue Code; or ii) Who has had a present ownership inten;st in a principal residence during any part of the three year period ending on the date of the sale or transfer, all as provided in Section 143(d) and (i) (2} of the Internal Revenue Code; or iii) .At an acquisition cost which is greater than 90 percent of the average area purchase price (greater than 110 percent for targeted area residences}, all as provided in Section 143(c} and (i) (2} of the Internal Revenue Code; or ,, iv) Whose family income exceeds applicable income limits as provided in Section 143(1] and (i} (2} of the Internal Revenue Code. b) Borrower fails to occupy the property described in the Security Instrument without prior written consent of the lender or its successors or assigns described at the beginning of this Tax Exempt Financing RideG or c) Borrower omits or misrepresents a fact that is material with respect to thc provisions of Section 143 of the Internal Revenue Code in an application for the loan secured by this Security Instrument. References are to the Internal Revenue Code as amended, in effect on the date of execution of thc Security Instrument and are deemed to include the implementing regulations. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions in this Tax-Exempt Financing Rider. MPP 210-B (Revi~d 12/95)