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Home My WebLink About892413AIJG-li-2803 17:48 CHEUY CHASE BANK Remm To: Document Control Dept. 7501 wiaoonain Avenue Pr~edBy: Tnnya Oronior, Loan Clo~er Chevy cha~e Bank, 15 Enterpriae Ali~o Vi~jo, CA 92656 892kl3 P.18 RECEIVED LINCOLN COUNTY CLERK 03 fit!C, P?4 3'. 5 9 .[Space Abo~'e This Line For Recording D~U~ PURCRAFl ~. MON~/ MORTGAGE MIN 1000153-0553156134-2 DEFINITIONS Words used in multiple sections of this document are defined below and other words ~re defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the u~age of words used in this document are · lso provided in Section 16. (A) "Security h~trument" means this document, which is date. A Augu,: t: 11, 2003 together with all Riders to this document. ~) "Borrower" is H0wmm L. LYSAOER AND ~ILY C. LYSAOER, HUSBAMD m WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a 'nominee for Lender and Lender's successors and assigns, lVI2ERS Is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2.026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING.SIngle Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Paoa I cfi 1 $ Initials: VMP MORTGAGE ,CORMS- (900)621,7291 9459702 Form 3051 1/01 CHEU"," CHASE BAHK P.19 1000i53-055315613¢-2 (D) "Lender" is Chevy Chase Bank, 5O4 Lender is a federally chartered saving8 bank organized and existing under the laws of the United Statee of Amorica Lender's address is 7501 wisoon.in Avenue,: Bethe~dao KD 20814 (E) "Note" means the pronfissory note ~i~n~ by Bogeyer ~d daf~ August 11, 2003 ~e Note states ~at ~ower owes Lender One H~dred Sixty Six Thousand ~o Hundred Fifty and 00/100 Delian (U.S. i 166,250.00 ) plus ~[e~L ~wer h~ pm~sed [0 pay this deb~ in retie Periodic Paymen~ ~d to pay ~e debl in MI no~ later ~ Septs~er 1, 2033 ~) "~" ~ ~e prope~y ~at is d~cribed below ~der ~e h~d~E "Tr~sfer of Ri~ in ~e (G) "~sn" m~s the deb~ evidenc~ by ~e Note, plus interest, ~y prepayment ~arEes ~d late c~E~ due ~d=r ~e Note, ~d ~] s~ due ~de[ ~s S~[y l~n[, pl~ ~Ier~. (~ "~de~" ~ ~1 Riders [o ~is S~i~ I~en[ ~a[ ~e executed by Bo~ow~. ~e followm~ Riders ~e to be ex~lM by ~wer [ch~k box as applicable]: ~ Adj~le ~[a Rider ~ Condo~ Rider ~ S~nd Home Rider ~ Balloon Rider ~ H~M Unit Development Rid~ ~ 1-4 P~ly Rider ~ VA Rid~ ~ Biw~y Payment Rider ~ Omer(s) [sp~i~] L.gal Descrip. (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and admirfisrrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Due~, 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. (IO "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 a.t 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, autonmted teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described m section 3. (M) "Miscellaneous 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 talcLn, g of all or any parr of the Proper~y; ('iii) conveyance in lieu of condemnation; or (iv) misrepresentations of. or omissions as to, the value and/or condition of the Property. ' (N) "Mortgage Insurance" means inqurance protecting Lender against the nonpayment of, or default on, the Loan. · (0) "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. (P) "RESPA" means the Real Estate Serdemem Procedures Act (12 U.S.C. Section 2601 er seq.) and its i.mplementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to t,me., 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' trader REsPA. GA(WY) iooosi ow,~otre Form 3051 1/01 9459702 AUG- 1 1-213EJ3 1'7: 4'9 CHE~ .h' CHASE BANI'( P. 20 ,.41.3 ' 505 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has ~surned 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, aM all renewals, extensions and modifications of the Note; and (ii) the performance 'of Borrower's covenants and agreements u.Mer this Security Instalment and the Note, For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors ;md assigns) and to the successor~ and assigns of MERS, with power of sale. the following described property located in the County of Lincoln [Type of Recording Jurisdiction] [Nam~ of Recording lur~sdichon] SEE L~AL DESCRIPTION ATTACHED HERETO AND MADE A PART. HEREOF. SUBJECT TO COVZNANT8 OF RECORD. THE AFORESAID FEE SIMPLE PROPERTY HAVIN~ BEEN PURCKASED IN WHOLE OR IN PART WITH TH~ SUMS SECURED HZREBY. Parcel ID Number; which currently has the address of [st~ecq 275 WALNUT DRIVI~ LINCOLN COUNTY [City] , Wyonling 8312'7 [Zip Code] ("Property Address"): TOGETHER WITH all the improvems~ts now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be cowered by this Security Instrument.. A{1 of the foregoing is referred to in this Security Instrument as the ,Property." Borrower understands and agiees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited tO, releasing and canceling this Security Instrument. BORROWER cOVENANTS that Borrower is lawfully seised of the estate hereby conv~ed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower wan'ants and will defend generally the title to the Property against all clakms 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 jurisAiction to constitute a un~form security instrument covering real property. 9459702 Form 3061 1/01 AIJG-li-2803 17:49 CHEtJY CHFtSE BAhK P,21 ,5O6 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charge% and Late Charges. BOrrower shall pay when due the principal of, and interest on, the debt evidenced by the. Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security In~trurnent shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may reqmre that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following fOITn~, as selected by Lender: (a)c~sh: (b) money order; (c) certified check, bank check, tre,~urer'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. Payments ara deerned received by Lender when received at the locatior~ designated in the Note or at such other location as may be designated by Lender in accorch, nce with the notice provisions in Section 15, Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any fights hereunder or prejudice to its rights to refase 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 a~ of its scheduled due date, .then Lender need not pay interest on unapplietl funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply Such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from m 'eking payments due under the Note and this Security Instrument or performing the covenants and agreements secured by tiffs Security irmtrument. 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 No~e; (b) principal due under the Note; (c) mounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remahnJng a.mounts 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 paymem can be paid in full. To the extent that any excess exists after the payment is applied to the fiill payment of one or more Periodic Payments, such excess may be applied to any late charges due..Voluntary prepayments shall be applied fkst 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 I_~nder on the day Periodic Payments are due under the Note, until the Not~ is paid in full, a s;um (the "Funds') to provide for payment of amounts due for: (a) taxes and assessments and other items Which can attain priority over this Security l.r~trument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if'any, or any sums payable by Borrower to Lender in lieu of the 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 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 assessn'umts shall be an Escrow Item. Borrower Shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive. Borrower's obligation to pay to Lender Fun~ for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the mnounts 9459702 p. ldele: Form 3051 1/01 ~UG-il-2083 17:4~ 507 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower' ,s obligation to mak~ such payments and m provide receipts shall for all purposes be deemed to be 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 rrmy exercise its rights under Section 9 and pay such amount and Borrower shall ti'urn be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver a_s to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of futura Escrow Items or otherwise in accordance with Applicable C, itw. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Lo'an 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 Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If them is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If them 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 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Fundi held by Lender. 4. Charges; Liens. Borrower shall pay ail taxes, assessments, charges, fines, and impositions attributable to the prOperty which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items am 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 mariner acceptable to Lender, but only so long as Borrower is performing 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 enforcement of the lien wkile those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can anain priority over this Security Instrument, Lender may give Borrower a notice identifying the (~)~-OA[WY) Iooo~1 Pa,,, ~ of ~ s 2'~59702 I Farm 3051 1/01 ~IJG-11-2gg2~ 17: 49 CHEUY CHASE BANK P. 23 508 lien. Within 10 days of the 6ate On which tlut notice, is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Proper~y insured against 19ss by fire, ha_7~qrds included within the term "extended coverage,' and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance ball be maintained in thc amounts (including deductible levels) and for the periods that Lender requires. W'hat Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insur~ce carrier providing the insurance shall be chosen by Borrower subject, to Lender's right to disapprove Borrower's choice, which right shall not be exercises unreasonably. Lender may require Borrower to pay, in connection with this 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 similar changes occur which reasonably 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 thc review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to mahxtain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase 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 Proper~y, against any risk, baTard or liability and might provide greater or lesser coverage, than was previously in effect. Borrower acknowledges that the cost of the. insurance coverage so obtained rmght significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lertder under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and Shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to I_~ader's right to disapprove such policies, shall include a standard mortgage clause, and shall nam~ Lender mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all reCeipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for darrmge to, or destruction of, the Property, such policy shall include a standard mortgage clause and sl~all 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 Borrower, Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender. shall be aPpli~ to restoration or repa/r of the Property, if the. restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, I_~mder 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 single payment 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 insurance proc~ds, Lender shall not he required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insuFance proceeds and shall be the sole obligation of Borrower, If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with inltla4~~I1~ ~ .,, IC~-6A(WYI 1oo0~ p~,:,,~ I] ~'~6 Form 30B1 1/01 R¢59'102 CHEUY CHASE BANK P. 24 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for m Section 2. If Borrower abandons the Property, Lender may file, negotiate and senle any available insurar~e claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier h~ offered to settle a claim, then L~nder may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either evenC or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceed~ in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's dght~ (other than the right to any refund of unearned prermums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceed~ either to repair or restore the Property or to pay am. aunts unpaid under the Note or this Security Imtrument, whether or not then due. 6. Occupancy, Borrower shall occupy, establish, and use the Property as Borrower's principal residence with. in 60 days after the execution of tiffs Security Instrument and shall continue, to occupy the Property as Borrower's principal residence for at lea.st one year after the date of occupancy, unless. Lender otherwise agrees in writing, which consent sl'~ll nor be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is ~esiding 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 fe&sible, Borrower shall promptly repair the Property' if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the PropenT, Borrowor shall be responsible for repairing or restoring the Property only if Lender has releasea:l proceeds for such purposes. Lender may disburse proceeds for the repairs and re2toration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections, of the Property. If it has reasonable cause, Lender may inspect the imerior of the improvements on the Property. Lender shall give Borrower notice at~ the time of or prior to such an interior inspection specifying such reasonable cause, 8. Borrower's Loan Application. Borrower shall be In default if, during the kaan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material irfforrmtion) in cormecfion with the Loan. Material representation.~ include, but are. not lirlfited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9, Protection of Lender's Interest in the Property and Right~ Under ti:ds S~,curity 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 Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement Of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender'S interest in the Property and rights urger th.is Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Propen'y. Lender's actions can include, but are not limited to: (a) paying any sunu secured by a lien which has priority over tiffs Sacurity Instrument; (b) appearing in court; and (c) paying reasonable (~6AIWY11000~ Pue, ~ of 16 ~- u Form 3051 1/01 9~59702 CHEU"r" (CHASE Bf-ql',-lk; P. 25 attornmys' frs To promct its int~res[ in ~ Propemy ~d/or rights ~der ~b S~d~ lBst~:~t, including im s~ position ~ ~ b~pmy proc~i~. S'~g ~e Prope~ include~, bm is not 11~[~ m, entering ~e Prope~y to m~e rep~rs, ch~ge loc~, repla~ or bo~d up d~m ~d w~doWs, drain water ~om pip~, elinfinate build~g or o~er code violations or dmgerou5 condition, ~d have utilities mined on or off. Al~ough ~er may t~e action ~d~ ~ Section 9, ~nder do~ not ~ve to do so ~d ~ not ~d~ ~y duw or obligation to do so. It is agre~ that ~der i~s no liability for not t~ng ~y or ~i actio~ au~ofi~d ~der ~s S~tion 9. Any ~o~ts disbmed by ~nder ~ ~s ~tion 9 s~l become addition~ debt of Bogower secur~ by ~is S~ity ~ent, ~ese ~o~ts s~l be~ interest at ~e Note rate from the ~te of disb~semt ~d s~l be payable, wi~ such interest, upon noti~ from ~der to ~ffow~ requesti~ paYm~t. If ~is S~fi~ ~strmenr is on a le~ehold, ~o~r s~t comply ruth ¢1 Otc provisions of ~e le~e. If Bo~wer acquires f~ tide to ~e Prope~, the le~hold ~ the f~ tide s~l not merge ~ess ~der agrees to ~e merger in writing. 10; Momgage Immnee. If ~er req~r¢ Mo~gage I~urm~ ~ a condition of m~ng the Lo~, Bo~ower s~l pay ~e prem~ reqmr~ to ~t~ the Mo~gage I~e in effect. If, for ~y r~on, ~e Mo~gage lm~ mverage required by ~Mer c~ to be available from the mortgage insurer ~t previo~ly provid~ such imur~ce ~ Bo~o~r w~ requir~ to m~e s~ately d~ignated payments mwmd ~e pr~ for Mo~gage Ins~, ~wer shall pay ~e pr~ requir~ to obr~ mvmge subst~ti~ly ~v~enr to the Mo~gage ~m~ previously in eff~[, at a cost subsr~ti~ly eq~v~mt to ~e ~st to ~ower of ~e Mo~gage I~e previo~ly in off. t, from ~ ~temare mo~gage ~surer sol.ted by ~nder. If subsr~ti~ly eq~v~ent Mo~gage ~ce coverage is not av¢lable, ~ower s~l contin~ ro pay [o ~nder ~e ~r of the s~arely desig~t~ paym~u ~at were due w~n ~e imur~ce coverage ~d to be' in eff~t. ~nder will ~p[, use ~d re~¢n these paym~s ~ a non-readable loss r~e~e in li~ of Mortgage ~ce. Such loss rese~e s~l be non-readable, notwi~t~g the fact ~at ~e ~ is ~t~mtely paid in ~1, ~ ~nde.r sh¢l not be r~uired to pay Bo~ower ~y interest or ~ings on such loss rese~e. ~der c~ no lo~ require loss ~se~e payments if Mo~gage Insur~ coverage (in ~e m~r ~d for ~e ~dod that ~er r~uims) provid~ by ~ ins~er sol.ted by ~der aghn b~mes avhlable, is obtainS, ~d ~Mer req~res separately designatM pay~nts towud ~e premiu~ for Mo~gage I~ur~ce. If ~Mer r~r~ Mo~gage Ins~mce ~ a co~ition of ~ng Ce ~ ~ Bo~ower w~ r~uir~ to ~ sepuately ~sigm~ payments rowed ~ pr~ for Mortgage Imams, ~ower s~l pay ~e pre~ r~'uir¢ to ~nrhn Mo~gage Im~ce in effect, or ~o provide a non-readable loss rese~e, ~til ~Mer's requimnt for Mo~gage Ins~ ends in accor~ wi~ ~y ~nen agre~t betw~ ~ower ~ ~d~ provid~g for such te~adon or ~til te~tion is r~uir~ by Applicable ~w. No~hng in ~is S~ion 10 aff~s ~ower's obligation ro pay ~ter~t at ~e rate provided in ~e Note. Moagage I~e re~burses ~d~ (or ~y enri~ ~r purch~ ~e Nora) for ~ losses it my [nc~ if Bo~ow~ does not r~ay the ~ as agr~d, ~ower is not a p~y to ~e Mo~gage Insur~ce. MoEgage i~urers evatuate ~eir tor~ ~k on ~l such imur~ in force from ti~ to ri~, ~ ~y mt~ into agreemenu wi~ other p~es ~at share or mdi~ their ri~k, or r~uce loses. ~e agr~ts ~ on tm ~d ~tio~ that ~e sadshctow to ~e m~gage ~er ~d ~e o~er pray (or p~ies) to ·ese agr~nts. ~e~ agr~ts may r~mre ~e mo~gage i~ to m~. payments using ~y so.ce of ~ ~at ~e mo~gage ironer may have av~lable (which my include ~s obrMn~ ~om Mo~gage l~ce pr~). As a r~r of ~ese age--u. ~nd~, ~y p~ch~er of ~e Note, ~o~er i~er, ~y rei~ur~, ~y o~ ~ti~, or ~y ~filiate of my of the forego~, ~y r~ive (dir~rly or indi~fly) mo~ts ~at d~ve from (or ~ght be c~teriz~ ~) a pomion of Bo~ow~'s paym~ts for Mo~gage I~ce, in exc~ge for shrug or mo~iug the momgage 'insect's risk. or reduc~g losses. If such agr~m provid~ ~t ~ Mfdiare of ~er tak~ a shoe of ~e i~er's r~k ~ exc~e for a shue of Ce pre~ pMd m ~e i~er, the ~r~gement is oE~ te~ 'captive ~ce." F~er: (a) ~y such a~mm~ will not aff~t ~e .moun~ that Bo~ower h~ agr~ ~ pay for Mo~gage Insurance, or any o~er terns of the Loam Such agr~men~ will not ln~e ~e amount Bo~ow~ will owe for Momgage Imur. nce, .nd they will not entitle Bomw~ to any refund. ~6A(~I {ooo~) P,¢~ ~ ot 16 Form 3051 1/01 9459702 AUG-Ii-2003 17:50 CHEUY CHASE BANK P. 26 511 (b) Any such agreements will not affect the rights Borrower has - !1' any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These fights may Include thc 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 refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of MisceLlaneous Proceeds; 'Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous ~oceeds shall be applied to restoration or repair of the Property, if the restoration or repa.~r is econan'fically fea.~ible and Lender's security is not lessened- During such repair and restoration period, Lender shall have the right to hold such Mbcellaneous Proceeds until Lender has had an opportunity to inspe~:t such Property to-ensure the wo]k 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. Un/ess an agreement is made i~ writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender sh~l 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 se~urecl by this security Instrun'zent, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for ha Section 2, In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sunu secured by this Security I.nstrtunent, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair mmket value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security I.t~tmment immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwis~ agree in writing, the sums secured by this Security Instrument shall be reduced by the an~ount 'of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sunu secured immediately before the partial 'taking, destruction, or loss in va~ue divided by (b) the fair market va/ue of the Property Lrnmediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial tak4ng, destruction, or loss ~n value of the P-coperty in which the fair market va/ue of the Property immediately before the ptu-tia.l taking, destruction, or loss in value ia less than the amount of the sunu secured immediately before the partial taking, destruction, or loss in va~ue, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Procoeds shall be applied to the sums secuxed by this Security Instrument whether or not the sunu 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) offexs to make an award to setde a claim for danuges, Borrower fails to respond to Lender within 30 days ager the date the notice is given, Lender is authorized to collect and apply the Miaaelhaeous Proceeds either to restoration or repair of the Property or to the sums seCured by this Security Instnu~ent, whether or not the~ due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a fight of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or crLminall is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Propeay or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as providext in Section 19, by causing 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 ha the Property or rights under this Sec.udty 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 l:'~opert7 shall be applied in the order provided for in Section 2. p.~. e o~ ~s Form 3,051 1/.01 9459702 AUG-11-2883 17:58 CHEVY CHASE BANK P. 27 5!2 12, Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization oflthe sums secured by this Security lnstrumen~ grant~ 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 other'wise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any 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; 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 the Note (a "co-signer"): (a) is co-signing this Security Insmm~ent 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 9bli§ated 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 any accommodations with regard to the terms of this Sex:urity Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released 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 Inset shall bind (except as provided in Section 20) and benefit the successors and a~signs of Lender. 14. Loan Charges. Lender. may charge Borrower 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' fee~, 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 prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security lr/strament 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 shall be reduced by the amount necessary to reduce the charge to the permitted lin'fit; 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 rmldng 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 rrmde 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 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 actu~lly delivered to Borrower's · notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice a~dress sh~ll be the Property Address unless Borrower has designates 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 Mdress th. rough that specified procedure. There may be only one designatext notice address under this Security Inset at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have 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. (~)~-6A(WYI (0006) ~'.~ lO o~ ~6 3051 1/01 9459701 AIJG-11'~005 17:51 CHEUY CHASE BANK P. MIN 1000153-055315613~-2 16, Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such Conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender 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 Security Instrument. 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 ben~cial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest m the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, th.is option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Insmunent without further notice or demand on Borrower. 19. Borrower's Right to Reinstate Atter Acceleration. If Borrower meets certain conditions, Borrower shall have the fight 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 might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums wkich then would be due under ti'ds Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for 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's interest in the Property and fights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; Co) money order; (c) certified check, bank check, treasurer's check or cashier's check, providext any such check is drawn upon an institution whose deposits are insured by a federal agency, instnunentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 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 (known a.s the "Loan Servicer") that collects Periodic Payrrmnts 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 unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA (~®-6A(WY) (ooo~;) P,,a~ I1 ot it Fo~m 3051 1/01 9¢$9702 RIJG-11-2~8~ 17:51 CHEbh" CHASE BANK P.29 1000153-055315613~-2 5!4 requires in connection 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 purcha_qer 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 purch~q.ser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, jqin, or be joined to any judicial action (as either an individual litigant or the member of a cla~s) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached a.ny provision of, or any duty owed by reason of, this Security Irkstrumenr, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such allegexl breach and afforded the other party hereto a reasonable period after the giving of such notice to take correCtive action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time 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 of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and 'opportunity to take corrective action provisions of Ods Section 20. 21. Hazardous Substances. As used in this Section 21: (a) 'Hazazdous Substances" are those substances defined as toxic or iqn?ardous substances, pollutants, or wastes by En'virOranental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and hezbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Lawh 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 rmpome action, remedial action, or renmval action, as del'reed in Environmental Law; and (d) an 'Environmental Condition~ means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. i Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Proper~y. Borrower shall not do, nor allow anyone else to do, anything affeCting the Property (a) that is in violation of any Environmental I.aw, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Ha?~rdous Substance, creates a condition that adversely affects the value of the P?operty. The preceding two sentence~ shall not apply to the presence, use, or storage on the Property of small quantities of Hazardou~ Substances tt~t are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not lira/ted to, haTardous substances in consumer products). Borrower shall promptly give Lender writ-ten notice of (a)any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property ~d any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. (b) any Environmental Condition, includiog but not limit~ to, any spilling, leaking, discharge, release or threat of release of any H~zardous 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 goverrunental or regulatory authority, or any private parry, that any removal or other remediafion 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. (~-6A(WY) iooos) p~ ~ o~ ~ Form 3051 1/01 9459702 AUG-11-288~ 17: 51 CHEU"r' CHASE BANK P.30 1000153-0553156134-2 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 515 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement tn this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default musl be cured; and (d) that failure to cure the default on or before the date specified in the notice may result In acceleration of the sums secured by this Setmrity Instrument and sale of the Property. The notice shall further tnfom Borrower of the rtght to reinstate after acceleration and the right to bring a court action to re;sere the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified In the notice, Lender at Its option may require Immediate payment In full of all sums secured by this Security Instrument without further demand and may Invoke the power of sale and any other remedies permitted by Applicable Law; Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Sectton 22, including, but not limited to, reasonable attorneys' fees and cost~ 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 provided in Section 15. Lender shall publish the notice of s~le, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or Its designee may purch~e the Property at any sale. The pro~:eeds of the sale shall be applied In the following order: (a) to all e~penses of the sale, including, but not limited to, reasonable attorneys' lees; (b) to all sums secured by this Security Instrument; and (c) any excess to the per, on or persons legally entitled to it. 23. Release. Upon payment of all sums secured by fids Security Instrument, Lender shall release this Securky Instrument. Borrower shall pay any recordation 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 under Applicable Law. 24. Waivers, Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. ~-eAI VW'I iooos~ 9459702 Form 3051 1/01 AUG-11-208~7 17:51 CHEUY CHASE BANK P.31 1000153~0~5315~i~Z2 516 BY SIGNING BELOW, Borrower accepts and agrees to the terms and c~venants contained in this Security Instrument and in any Rider exeCuted by Borrower and recorded with it. Witnesses: / -Borro~ver (Seal) (Seal) -Borrower -Borrower (Seal) ('Seal) -Bot-ro w¢l' -]~OITOWcr (s~) (s~) -lEto rrower -Borrower (~6A[WY) (ooo,q ~,~. ~ao~l$ Form 3051 1/01 9'~59702 AIJG- 11-2~3~.~ 17: 51 CHEU"r' CHASE BANK STATE OF WYOMING, The foregoing instrument was acknowledged before me this by Howard L, Lysager and Emily C, LYsager, P.32 1000153-0553156134-2 5!7 LINCOLN County ss: llth day ~ August 2003 My Commission Expires: November 4, 2006 (~-6A(WY} Iooo*) 9459702 PaOe 15 o118 1/01 LEGAL DESCRIPTION 5!8 Lot 38 of the Star Valley Ranch Plat 10, Lincoln County, Wyoming as described on the official plat thereof. CHEUY CHASE BANI< P..~3 i000153 -055315613~-2 ADJUSTABLE RATE RIDER (Interest Only Optional Month LIBOR Index/Lifetime Rate Cap) THIS ADJUSTABLE RATE RIDER is made this lith day of Au~u~ , 2003 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to chevy Cha~e nemk, F.s.s. (the "Lender") of the same date and covering the Property described in the Security Instrument ,.nd located at: 519 275 WALNUT DRIVE, LINCOLN COUNTY, WY 83127 [Properly Address] THIS RIDER CONTAINS PROVISIONS ALLOWl~G FOR CHANGES IN MY INTEREST RATE AND MY MONTm'.Y PAYMENT. THE AMOUNT BY W'HICH MY INTEREST RATE MAY INCREASE OVER TIq'E LIFE OF THE LOAN IS LIMITED. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, BorrOwer and Lender further covenant and agree as folloWs: 1. INTEREST (A) Interest Rate Interest will be charged on unpaid principal until the full amount of pnncipal ha~ been paid. I will pay interest a.t the yearly rate of 4. is0 %. The interest rate I will pay may change. The interest rate required by this Section I is the rate I will pay both before and after any default described in Section 7 (B) of the Note.. (B) Interest Rate Change Dates The interest rate I will pay may change on the first day of ~ovomb~r, 2003 and on that day every month thereafter. Each date on which my interest rate eoald change is called an "interest Rate Change Date." The new rate of interest will become effective on each Interest Rate Change Date. (C) Interest Rate Limit My interest rate will never be greater than z3. 750 %. (D) The Index Beginning with the first Interest Rate Change Date, my interest rate will be basM on an Index. The "Index" is the one month London l_nterbank Offered Rate (LIBOR) as published in The. Wall Street Journal. The most recent Index figure available as of the first business day following the twm~ty-fifth day of the month immediately preceding the month in which the Interest Rate Change Date occurs is called the "Current Index." If the Index or any Index previously substituted under this Section 1 (D) is no longer available, or is otherwise unpubhshed, the Note Holder may choose a new Index and a new Margin to result in a rate similar to the rate in effect at that ti_me which is based upon comparable information. The Note Holder will give me notice of the choice. LB1M25'~'~ '>~v. 11/25/02 9/.597'03 ' - :::;::;:':?: ....... . .. AIJG-1 17:S1 CHEUY CHASE BANK MIN P.34 520 (E) Calculation of Interest Rate Changes Before each Interest Rate Change Date, thc Note Holder will calculate my new interest rate by adding Three ~ud ioo/iooo percentage points ( 3.ioo %) (the "Margin") to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the interest rate limit stated in Section 1 (C), the rouaded mount will be my new interest rate (the "Fully Indexed Rate" ) until the next Inter~t Rate Change Date. 2. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making payments every month. I will make my monthly payments, as described in Subsections B through D, below, on the first day of each month beginning on Ootober l, 2003 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may .owe under the Note. My monthly Payments will be applied to interest before principal. If, on Sept~m~,ber 1, 20't3 , I still owe amounts under the Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at ~,.0. Box 17000, Baltimore, KD 21203 , or at a different place if required by the Note Holder. 0t) Full Monthly Payment. As. of the date of the Note, my Full Monthly Payment of principal and interest is $ 8oa. is My Full Monthly Payment is recalculated each month so that it equals the amount that would be sufficient to repay the unpaid principal in full on the Maturity Date in substantially equal payments. (C) Payment Changes. My Full Monthly payment may change on the first day of Dsc~.,her, 2003 , and on that same day every month thereafter. Each of these dates is called a "Payment Change Date." Before each Payment Change Date, the Note Holder will calculate the amount of the monthly payment that would be sufficient to repay the unpaid principal in full on the Maturity Date in substantially equal installments at the Fully Indexed Rate. My new monthly Full Monthly Payment will be set equal to that amount. (D) . Interest-Only Payment Option. Each month for the first 180 payments due under the Note, I will have the option to make an interest-only payment (i.e., a payment equal to the interest accrued on the principal balance.) The amount of my interest-only payment may change each month based on changes in the Index (as described in Section ID) and changes in the amount of my principal balance. During this per/od, I must. make at least the interest-only payment each month. A timely payment of interest-only made in accordance with the Note will be deemed to be in compliance with the terms hereof. Following the l$0th payment, this interest-only payment option will expire and I must pay the Full Monthly Payment each month thereafter. LBIM25RD 9659703 Rev. 11/25/02 Page 2 of 4 17:52 CHEL.h" CHRSE BRHK MIN P. 35 1000153-0553156134-2 521 3. NOTICES OF CHANGES The Note. Holder will deliver or mail to me a notice of any changes in the amount of my Full Monthly Payment at least 25 days before the effective date of any change. The notice will' contain the interest rate or rates applicable to my loan for each month since the prior notice or, Er the first notice, since the date of th/s Note, and the payment mount applicable to the loan. The notice will also include information required by law to be given to me, and also the title and telephone number of' a person who will answer may question I may have regarding the notice. 4. BOtLROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due. A payment of principal only is lcnmvn as a "prepayment." When I make a prepayment, I will tell the Note Holder in writing that I am doing so. Unless otherwise stated on a Prepayment Penalty Addendum included in the Loan Documents, I may make a full prepay'merit or partial prepayments, without paying any prepayment charge . The Note Holder will use all of my prepayments to reduce the amount of pnncipal that I owe under the Note. A partial prepayment, will not .result in a change in the amount or due dates of any of mY monthly payment options unless the Note Holder agrees in writing to those changes. My partial prepayment may reduce the number of my payment options after the first Payment Change Date following my partial prepayment. However, any reduction due to my partial prepayment could be offset by an interest rate increase. 5. TRANSFER OF TI-IF. PROPERTY OR A BENEFICIAL INTEREST IN BORROWER. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior writ-ten consent, Lender may, at its option, require immediate payment in full of all sums secured by the Security Instalment. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of the Security instrument. Lender shall also not exercise th/s option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and Co) Lender reasonably determines that Lender's security will· not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in the Security Instrument is acceptable to Lender. LB1MlSRD Rev. 11/25102 ...:,::..., RUG-11-PDO] 17:52 CHEUY CHASE BANK P. J6 1000153 -0553156134 -2 To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an Assumption Agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in the Security Instrtanent. Borrower will continue to be obligated under the Note and Security Instrument unless Lender releases Borrower in wr/ting, If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed with/n which Borrower must pay all sums secured by the Security Instrument. If the Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by the Secur/ty Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in the Adjustable Rate Rider. ], Date Date Date Page 4 of 4 LB1M2§RD Rev. 11/25102 9459703 AUG-11-2~O~ 17:52 CHEU',; CHASE B,qHK 10001B3-0553156134-2 5¢3 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 11th day of AuRuat, 2003 , and b incorporated into and shall be deemed to amend and supplement the Mortgage. Deed of Trust, or Security Deed (the "Security Instrument") of the same date, given by the undersigned (the "Borrower') to secure Borrower's Note to Chevy Cha~e Bank, F.8.B. (the 'Lender") of the same date. and covering the Property described in the Security Instrument and located at: 275 WALNUT DRIVE, LINCOLN COUNTY, WY 83127 L~peny Adme~s] The Property includes, but is not linfited to, a parcel of land improved with a dwelling, together with °ther such parcels and certain common area~ and facilities, as described in COVm~ANTS, CONDITI01~S AND R~STRICTIONS (the "Declaration"). The Property is a pan of a planned unit development known as STAR VALLI~Y RANCH [Name of Phrased Un;t Development] (the "PUD"). The Property also includes Borrower's interest in the home,owners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. FUD COVENANTS, In addition to the covenants and agreements made in the Security Ir~t-mment, Borrower and Lender further covenant and agree as follows: A. PUD Obligations, Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. MULTISTATEPUD RIDER- Single Femjly- FennJeMeo/Freddie Mac UNIFORM INSTRUMENT J~orm3150 1/0'I~ ~ Page I of 3 Initlal.~:./~ ~_.~. 7R (0008) VMP MORTGAGE FORMS- (800~521-7291 AU$-I 1-200~ 17:52 CHEt.,W CHASE BANK MIN P.3B ~000i~-05~3~5613&-2 524 B. Pr°perry Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a 'master" or "blanket" policy insures the Property which is satisfactory to Lender and which provides imurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other haTards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to connnon areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the stuns secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance, Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument a.s provided in Section 11. E, Lender's Prior Consent. Borrower shall not. except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonn~ent or term/nation required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemrration or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action wkich would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. Ir. Remedies. If Borrower does not pay PUD due~ and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amotmts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. ~7R Page 2 of 3 (00081 9459704 Form 3150 1/01 AUG-ii-2003 i7:52 CHEUY CHASE BANK P.39 MIN 1000153-0553156134-2 525 Rider./ ('Seal) -Borrower (S~d) -Bo~o~.r · (Seal) -Borrower -BOtTOwer (Seal) -Borrower -Borrow-er (Seal) -Borrower 7R {0008) 9459704 Psge 3 of 3 Form 3150 1/01