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Remm To:
THE JACKSON STATE BANK &
TRUST
112 CENTER ST., P 0 BOX
1788, JACKSON, WY 83001
Prepged By:
Lorene Carter
892.6t6
RECEIVED
LINCOLN COUNTY CLERK
03/tU.[;, 2 1 AH II: 07
· ., ,~ JEANNE WAGNER
531 PR'PAGE
[Space Above 77 "Lira .~ :r .V.~ording Data]
MC,?.T AGE
DEFINITIONS
Words used in multiple sections of this document ~ue defined below and other words are defined in
Sections 3, 11, 13, 18, 20 and 21. Certain rules reg~iQl~ng the usage of words used in this document are
also provided in Section 16.
(A) "Security Instrument" means this document, wai ,. is dated August 12. 2003 ,
together with all Riders to this document.
OI)"Borrower"isdeffrey P. Palmer and D': ~,-~e Palmer, Husband and wife, as
tenants by the entireties .
Borrower is the mortgagor.under this Security InsCmm,:ht.
(C) "Lender" is THE JACKSON STATE BANK' & ,,U~ F
,,,
Lender is a State Bank
organized and existing under the laws of THE STATE OF WYOMING
PALMER, J &D- REF I 29430873
WYOMING-Single F~mily-Fannie Mae/Freddie Mac LINIF~.~IVi ~:!STRUMENT
I.~.~/®-6(WY) {ooo5) ,
Page 1 of 15 MW 05/00.01 Initials:__ ~.
VMP MORTGAGE FORMS- (800)521-7291
Form 3051 1/01
652
Lender's address is 112 CENTER ST., P 0 BO'/ 17'88. JACKSON, WY 83001
I~nder is the mortgagee under this Security Instrumen'L
(D) "Note" means the promissory note signed by Bom'ewer and dated August 12. 2003
~ll~e Note states that Borrower owes Lender One Hupdred Fi J:ty Two Thousand and no/100
Dollars
(u.s. $152. 000.00 ) plus interest. Borrc.wer has promised to pay'this debt in regular Periodic
Paymems and to pay the debt in full not later than September 1. 2033
(E) "Property means the property that is described below under the heading "Transfer of Rights in the
Property."
(F) "Loan" means the debt evidenced by the Note, pi '? ~nterest, any prepayment charges and late charges
due under the Note, and all sums due under this Secur "~ .2astrument, plus interest.
(G) "Riders" means all Riders to this Security Instn '.:_~:.: that are executed by Borrower. Tae following
Riders are to be executed by Borrower [check box as
~ Adjustable Rate Rider ~-~ Condominium Rider ~ Second Home Rider
~--] Balloon Rider ~ Planned Unit Devel.r~me:.:t. Rider ~ 1-4 Family Rider
[-~ VA Rider ~ Biweekly Paymert .i 'der ~ Other(s) [specifyl
(It) "Applicable Law" means all controlling app!~ a',:.ie federal, state and local statutes, regulations,
ordinances and administrative rules and orders (that _ ~'.,e the effect-of law) as well as all applicable final,
non-appealable judicial opinions.
(I) "Community Association Dues, Fees, and Asse ::ments" means all dues, fees, assessments and other
charges that are imposed on Borrower or the Pr%eny by a condoininium association, homeowners
association or similar organization.
(J) "Electronic Fun~ Transfer" means any transfe: ,of funds, other than 'a transaction originated by
check, draft, or similar paper instrument, which is ifitiaied through an electronic term/nfl, telephonic
instrument, computer, or magnetic tape so as to order,i instruct, or authorize a financial institution to debit
or credit an account. Such term includes, but is not, inaited to, point-of-sale transfers, automated teller
machine transactions, transfers initiated by teleph *ne, wire transfers, and automated clearinghouse
transfers.
(K) "Escrow Items" means those items that are descri >:d in SeCtion 3.
(L) "Miscellaneous Proceeds" means any compenSat ca, se,ttlement, award of damages, or proceeds paid
by any third party (other than insurance proceeds paid ,ruder the coverages described in Section 5) for: (i)
damage to, or destruction of, the Property; (ii) con !': mnation or other taking of all or any part of the
Property; (iii) conveyance in lieu of condemnation; .~} 0v) misrepresentations, of, or omissions as to, the
value and/or condition of the Property. '
~ "Mortgage Insurance" means insurance protecti;~g Lender against the nonpayment of, or default on,
the Loan.
(Iq) "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 Secuiity Instrument.
(O) "RESPA" means the Real Estate Settlement Procerlures Act (12 U.S.C. Section 2601 et seq.) and its
implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to
time, or any additional or successor legislation or reg-alation that governs the same subject matter. As used
in this Security Instrument, "Pd~SPA" refers to all recUirements and restrictions that are imposed in regard
to a "federally related mortgage loan" even if the Loifi does not qualify as a "federally 3elated mortgage
loan" under RESPA.
PALMER. J&D-REFI. 2943h ~73 0
Initials:
(~-6(WY) 1ooo5) · Page2. ~5 Form 3051 1/01
(P) "Successor in Interest of Borrower" means ,ani , party that has taken title to the Property, whether or
not that party has assumed Borrower's obligations ~,!6~r the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument secures to Lender: (i) thelre i:~yment of the Loan, and all renewals, extensions and
modifications of the Note; and (ii) the performance :.ff Borrower's covenants and agreements under this
Security Instrument and the Note. For this purpose', i~oi-cower does hereby mortgage, grant and convey to
.Lender and Leader s successors and assigns, with p0~,,e~- of sale, the following described property located
m the County ~. Li ncol n :
[Type of Recording Jnfisdiction]
Lot 24, Corsi Ranchettes Second.'-' I.~!,.. Sabdivision, Lincoln County,
Wyoming, according to that plat .le('-i.n the Office of Lincoln County
Clerk on November 2, 1995, Instc.;;.,eni! No. 810869. Plat No. 244 B.
Parcel ID Number:
267 C-S Lane
Etna
("Property AddreSs"):
which currently has the address of
[Street]
[City] , Wyoming 83118 [Zip Code]
TOGETHER WITH all the improvemer~ts qc? or hereafter erected' on the property, and all
easements, appurtenances, and fixtures now o~ .~.,e~ e!lfter a part of the property. All replacements and
additions shall also be covered by this Security Ic.a}'ument. All' of the foregoing is referred to in this
Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is ~iwfully seised of the estate hereby conveyed and has
the right to mortgage, grant and convey the Proper and that the Property is unencumbered, except for
encumbrances of record. Borrower warrants arid wE ~ defer, d generally the title to the Property against all
claims and demands, subject to any encumbra.vcez of '~,ccrcl.
THIS SECURITY INSTRUMENT combinec '..i~.ifc~ covenants for national use and non-uniform
~ .
covenants with limited variations by jurisdiction to ~ :i~st~tut~.~ a uniform security instrument covering real
property.
UNIFORM COVENANTS. Borrower and Lend.,.., c~¢enant and agree as follows:
1. Payment of Principal, Interest, Escrow .~!v.-~:.,..s, Prepayment Charges, and Late Charges.
Borrower shall.pay when due the principal of, ar:c...'i'~.:tecest on, the debt evidenced by the Note and any
prepayment charges and late charges due under th*.. h' ~ie. Borrower shall also pay funds for Escrow Items
pursuant to Section 3. Payments due under '?: !.'.)te :io~ 'this Security Instrument shall be made in U.S.
currency. However, if any check or other irish:.' ':r.~. ::' :6i.-,.ed by Lender as payment under the Note or this
PALMER,J&D-REFI ~43i~ .~73 0
Initials:
6(WY) {ooo5) ~!,/.,~ ~5 Form 3051 1/01
654
Security Instrument is returned to Lender unpaid, L~ ader may require that any or all subsequent payments
due under the Note and this Security Instrument t e made in one or more of the following forms, as
selected by Lender: (a) cash; (b) money order; ((') certified check, bank check, treasurer's check or
cashier's check, provided any such check is drawn t'pon, an institution whose deposits are insured by a
federal agency, instrumentality, or entity; or (d) Elec:~alxic Funds Transfer.
Payments are deemed received by Lender whet _eceived at the location designated in the Note or at
such other location as may be designated by Lender i ~ -:.:'~ordance with the notice provisions in Section 15.
Lender may return any payment or partial payment '; '!~e payment or partial payments are insufficient to
bring the Loan current. Lender may accept any pay~ ~:~:"~i 3r partial payment insufficient to bring the Loan
current, without waiver of any rights hereunder or p: '. u~.*ze to its rights to refuse such payment or partial
payments in the future, but Lender is not obligated l?.-aP~i~.y such payments at the time such payments are
accepted. If each Periodic Payment is applied as of ~;s :::heduled due date, then Lender need not pay
interest on unapplied funds. Lender may hold such uiiapl:~e~ funds until Borrower makes payment to bring
the Loan current. If Borrower does not do so withir q reay' -~.:ble period of time, Lender shall either apply
such funds or return them to Borrower. If not apT.'_i{: ear! ~: :. quch funds will be applied to the outstanding
principal balance under the Note immediately prio. to -. ~c':29sure. No offset or claim which Borrower
might have now or in the future against Lender sh: !. r~ ;eVe ~orrower from making payments due under
the Note and this Security Instrument or performir~g .'-re .:ovenants and agreements secured by this Security
Instrument. ~.
2. Application of Payments or Proeeeds~ F cept aa otherwise described in this Section 2, all
payments accepted and applied by Lender shall be ~ plied in' the following order of priority: (a) interest
due under the Note; (b) principal due under the Nc!:e; (c) amounts due under Section 3. Such payments
shall be applied to each Periodic Payment in the order' in. which it became due. Any remaining amounts
shall be applied first to late charges, second to any othe..-, amounts due under this Security Instrument, and
then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower ~?qr 'a delinquent Periodic Payment which includes a
sufficient amount to pay any late charge due, the pa. i~ent may be applied to the delinquent payment and
the late charge. If more than one Periodic Payment. is ;:,utstanding, Lender may apply any paYment received
from Borrower to the repayment of the Periodic Pay ~.enls if, and to the extent that, each payment can be
paid in full. To the extent that any excess exists afte; :he payment is applied to the full payment of one or
more Periodic Payments, such' excess may be applied t° any late charges due. Voluntary prepayments shall
be applied first to any prepayment charges and then a~ .d~scribed in the Note.
Any application of payments, insurance procee?'.:, o? Miscellaneous Proceeds to principal due under
the Note shall not extend or postpone the due date, oi .: range the amount, of the Periodic 'Payments.
3. Funds for Escrow Items. Borrower shall 1~ !.to Lender on the day Periodic Payments are due
under the Note, until the Note is paid in full, a sum i':~e "Funds") to provide for payment of amounts due
for: (a) taxes and assessments and other items which,,, an attain priority over this Security Instrument as a.
lien or encumbrance on the Property; (b) leasehold ! avments or ground rents on the Property, if any; (c)
premiums for any and all insurance required by L,:Lder under Section 5; and (d) Mortgage Insurance
premiums, if any, or any sums payable by Borr°¥~,;r to Lender in lieu of the payment of Mortgage
Insurance premiums in accordance with the provisi ~:ts of Section 10. These items are called "Escrow
Items." At origination or at any time during the ter r Of the Loan, Lender may require that Community
Association Dues, Fees, and Assessments, if any, be bserowed by Borrower, and such dues, fees and
assessments shall be an Escrow Item. Borrower shall ir~r~mptly furnish to Lender all notices of amounts to
be paid under this Section. Borrower shall pay Lend. -:he 'Funds for Escrow Items unless Lender waives
Borrower's obligation to pay the Funds for any o: (~'_~i',Escrow Items. Lender may waive Borrower's
obligation to pay to Lender Funds for any or all Esc~ *"~' ?ems at any time. Any such waiver may only be
in writing. In the event of such waiver, Borrower sha. pay ~lirectly, when and where payable, the amounts
PALMER. 3fD- RE F I 2943,3873 0
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(~-6(WY) IooosF Pa~a; :~t~ Form 3051 1/01
655
due for any Escrow Items for which payment of Fun.;4has been waived by Lender and, if Lender requires,
shall furnish to Lender receipts evidencing such p~a~..'~;~ent within such time period as Lender may require.
Borrower's obligation to make such payments until.t:) provide receipts shall for all purposes be deemed to
be a covenant and agreement contained in this SeCUri ,.~ Instrument, as the phrase "covenant and agreement"
is used in Section 9. If Borrower is obligated tO _r. !:~ Es'crow Items directly, pursuant to a waiver, and
Borrower fails to pay the amount due for an EscrOy ~tem, Lender may exercise its rights under Section 9
and pay such amount and Borrower shall then be 6!~:igated under Section 9 to repay to Lender any such
amount. Lender may revoke the waiver as to a~.',y ~ l: all Escrow Items at any time by a notice given in
accordance with Section 15 and, upon such revoc~ti!!n~.' Borrower shall pay to Lender all Funds, and in
such amounts, that are then required under this Sectit~r~ 3,.
Lender may, at any time, collect and hold Fund~: n, an ~ount (a) sufficient to permit Lender to apply
the Funds at the time specified under RESPA~ and !i :)' not to exceed the maximum amount a lender can
require under RESPA. Lender shall estimate the .3_n!¢'::,::~ of Funds due on the basis of current data and
reasonable estimates of expenditures of future. Eacna!.' ~tems or otherwise in accordance with Applicable
Law.
The Funds shall be held in an in~c':: :~n ?~)s.: deposits are insured by a federal agency,
instrumentality, or entity (including Lender ~ndei'. iS ~.~ institution whose deposits are so insured) or in
any Federal Home Loa~. Bank. Lender shall :. _ ../th::?. iunds to pay the Escrow Items no later than the time
specified under RESPA. Lender shall not cl~:::~'a. Bo;rawer for holding and applying the Funds, annually
analyzing the escrow account, or verifying the i;s~..:(,~, Items, unless Lender pays Borrower interest on the
Funds and Applicable Law Permits Lender to rn .re., t~;ch a charge. Unless an agreement is made in writing
or Applicable Law requires interest to be paid C;: :h(; [~unds, Lender shall not be required to pay Borrower
any interest or earnings on the Funds. Borrowe:: :(~/Lender can agree in writing, however, that interest
shall be paid on the Funds. Lender shall give te _. Cxow~r, without charge, an annual accounting of the
Funds as required by RESPA. ,
If there is a surplus of Funds held in escr,,.v,~ as defined under RESPA, Lender shall account to
Borrower for the excess funds in accordance with }ki~PA; If there is a shortage of Funds held in escrow,
as defined under RESPA, Lender shall notify Borrt,~.v~r as required by RESPA, and Borrower shall pay to
Lender the amount necessary to make up the short'~ei!in accordance with RESPA, but in no more than 12
monthly payments. If there is a deficiency of Funds i-!~!d in escrow, as defined under RESPA, Lender shall
notify Borrower as ~'equired by RESPA, and Borro'>':~r shall pay' to Lender the amount necessary to make
up the deficiency in accordance with RESPA, but in i':i}~ more than 12 inonthly payments.
Upon payment in full of all sums secured by ,L(~:i Security Instrument, Lender shall promptly refund
to Borrower any Funds held by Lender. ~
4. Charges; Liens. Borrower shall pay ai! b~xes, assessments, charges, fines, and impositions
attributable to the Property which can attmn priorit3: .?'vet this Security Instrument, leasehold payments or
ground rents on the Property, if any, and Commt_,ai{~ ;-~'~ssociation Dues, Fees, and Assessments, if any. To
the extent that these items are Escrow Items, Bo:ro-a': :~! shall pay them in the manner provided in Section 3.
Borrower shall promptly discharge any lie: ~i:'~}h has priority over this Security Instrument unless
Borrower: (a) agrees in writing to the payment of t.h, {}bligation secured by the lien in a manner acceptable
to Lender, but only so long as Borrow.er is perforw2l~ig such agreement; (b) contests the lien in good faith
by, or defends against enforcement of ~e lien in, ~ishl proceedings which in Lender's opinion operate to
prevent the enforcement of the lien while those pr(',i:i~dings axe pending, but only until such proceedings
are concluded; or (c) secures frOm the holde, r of the ili;in aq, agreement satisfactory to Lender subordinating
the lien to this Security Instrument. If Lent,er d".~e_qi{[nes ~.nat any part of the Property is subject to a lien
which can attain priority over this Security lnsti'm:.5~;l I ~ader may give Borrower a notice identifying the
PALMER, J&D- REF I ~ 2943!~:373 0
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(~}~-6{WY (ooo5) r~ge ~ . 'i~ Form 3051 1/01
656
lien. Within 10 days of the date on which that nohci~ is given., Borrower shall satisfy the lien or t~e one Or
more of the actions set forth above in this Section 4.
Lender may require Borrower to pay a or';-,ime charge for a real estate t~ verification and/or
reporting service used by Lender in connection With 'h'is Loan..
5. Property Insurance. Borrower shall keep th6 improvements now existing or hereafter erected on
the Property insured against loss by firel hazards i~ ~.!uded within the term "extended coverage," and any
other hazards including, but not limited to, earthqm' es ~d floods, for which Lender requires insurance.
This insurance shall be maintained in the amounts izacluding deductible levels) and for the periods that
Lender requires. What Lender requires pursuant to I¢.e preceding sentences can change during the term of
the Loan. The insurance carrier providing the insurt:zme shall be chosen by Borrower subject to Lender's
fight to disapprove Borrower's choice, which figkt '.~haO. i! not be exercised unreasonably. Lender may
reqmre Borrower to pay, in connection w~th th~s,. ~..oan; either: (a) a one-time charge for flood zone.
determination, certification and tracking services; i~z (b) a one-time charge for flood zone determination
and certification services and subsequent charges e. cb time. remappings or similar changes occur which
reasonably might affect such determination or ceftin:cation. Borrower shall also be responsible for the
payment of any fees imposed by the Federal Eme,.;ency Management Agency in connection with the
review of any flood zone determination resulting froz': an objection by Borrower.
If Borrower fails to maintain any of the cove '~ ges described above, Lender may obtain insurance
coverage, at Lender's option and Borrower's expe ,_.e. Lender is under no obligation to purchase any
particular type or amount of coverage. Therefore, s.~;zh coverage shall cover Lender, but might or might
not protect Borrower, Borrower's equity in the Prop :rty, or the contents of the Property, against any risk,
hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower
acknowledges that the cost.of the insurance coverage: so obtained might significantly exceed the cost of
insurance that Borrower could have obtained. Any amo'?~nts disbursed by Lender under this SeCtion 5 shall
become additional debt of Borrower secured by this,$scufity Instrument. These amounts shall bear interest
at the Note rate from the date of disbursement and s}i~;, be payable, with such interest, upon notice from
Lender to Borrower requesting payment. . , '. ·
All insurance policies required by Lender and; mewals of such policies shall be subject to Lender's
right to disapprove such policies, shall include a :t-~ndard mortgage clause, and shall name Lender as
mortgagee and/or as an additional loss payee. Lende:?shal. 1 have the right to hold the policies and renewal
certificates. If Lender requires, Borrower shall proi:~p, il7 give to Lender all receipts of paid premiums and
renewal nouces. If Borrower obtams any form o,.. ;:. ;sp:aq.~e .coverage, not otherwise required by Lender,
for damage to, or destmcUon of, the Property, suc~¢ ~ol]cy ~,hall include a standard mortgage clause and'
shall name Lender as mortgagee and/or as an additic a'~l tgss payee.
In the event of loss, Borrower shall give pror.~Pt ndtice to the insurance carrier and Lender. Lender
,t
may make proof of loss if not made promptly by B.,'ro ~er. Unless Lender and Borrower otherwise agree
in writing, any insurance proceeds, whether or no:: ~i under!ymg insurance was required bY Lender, shall
be applied to restoration or repair of the Property, i~ .the restoration or repair is economically feasible and
Lender's security is not lessened. During suc.h, repai, .m,d'..restoration period, Lender shall have the fight to
hold such insurance proceeds until Lender has l!ad,"~.~ippportunity 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 thd'rep ~rs and restoration in a single payment or in a series
of progress payments as the work ~s completed. Unicef: an agreement ~s made in writing or Applicable Law
requires interest to be paid on such insurance procee':, ;',' Lender shall not be required to pay Borrower any
interest or earnings on such proceeds. Fees for. [ ::'fflc adjusters, or other third parties, retained by
Borrower shall not be paid out of the insurance pro( ¢ ;ds and shall be the sole obligation of Borrower. If
the restoration or repair is not economically feasible .~: Lender's security would be lessened, the insurance
proceeds shall be applied to the sums secured by .thil SeCurity Instrument, whether or not then due, with
PALMER. 3&O- REV I 294~.~i 87~' 0
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(~-6{WY) (ooo5~ Page .:,:, r~5.. Form 3051 1/01
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the excess, if any, paid to Borrower. Such ir.~.~.~ imce ~0ceeds shall be applied in the order provided for in
If Borrower abandons the Property, Lender ~; {~y file, negotiate and settle any available insurance
claim and related matters. If Borrower does nov :.e.~;md w~thm 30 days to a notice from Lender that the
insurance carrier has offered to settle a claim, t~-~.~i'. ;.'i~nd~r may negotiate and settle, the claim. The 30-day
period will begin when the notice is given. In~ '~-"~
.... ~.~.r event, or if Lender acquires the Property under
Section 22 or otherwise, Borrower hereby assig~:~ :'to Lender (a) Borrower's rights to any insurance
proceeds in an amount not to exceed the amounts '.]:~0aid under the Note or this Security Instrument, and
(b) any other of Borrower's rights (other than &~e:.!i'ight to any refund of unearned premiums paid by
Borrower) under all insurance policies covering: ~e. ...l~r°perty'. insofar as such rights, are applicable to the
coverage of the Property. Lender may use the insura~e proceeds either to repair or restore the Property or
to pay amounts unpaid under the Note or .this Secufil'?Insti-ument, whether or not then due.
6. Occupancy. Borrower shall occupy, estal l~sh, and use the Property as Borrower's principal
residence within 60 days after the execution of this ~ecurity Instrument and shall continue to occupy the
Property as Borrower's principal residence for at lea-_..?~ one year after the date of occupancy, unless Lender
otherwise agrees in writing, which consent shall :.: :?t be unreasonably withheld, or unless extenuating
circumstances exist which are beyond Borrower's
7. Preservation, Maintenance and Protecfi0i~i of the Property; Inspections. Borrower shall not
destroY, damage or impair the Property, allow ~:~. Property to deteriorate or' commit waste on the
Property. Whether or not Borrower is residing in ~:i~',Property, Borrower shall maintain the Property in
order to prevent the Property from deteriorati~.;g ¢;r ~ecreasing in value due to its condition. Unless it is
determined pursuant to Section 5 that repair oi~ res~lrat~on ~s not economically feasible, Borrower shall
promptly repair the Property if damaged tO ~v~il]i! further deterioration or damage. If insurance or
condemnation proceeds are paid in connection with ciamage to, or the taking of, the Property, Borrower
shall be responsible for repairing or restoring the Pi 'iperty only if Lender has released proceeds for such
purposes. Lender may disburse proceeds for the repa: .~; and restoration in a single payment or in a series of
progress payments as the work is completed. If the it!sur~;:ce or condemnation proceeds are not sufficient
to repair or restore the Property, Borrower is ~,;.~: re*i~.vcf, of Borrower's obligation for the completion of
such repair or restoration.
Lender or its agent may make reasonable enti (::a upe:!; and inspections of the Property. If it has
reasonable cause, Lender may inspect the interior"ofi~i-~e i. rc~provements on the Property. Lender shall give
Borrower notice at the time of or prior to such an m~e!~h]r inspection specifying such reasonable cause.
8. Borrower's Loan Application. Bo~rowar :~i-i~,~i be in default if, during the Loan application
process, Borrower or any persons or entities acdniii~ at the direction of Borrower or with Borrower's
knowledge or consent gave materially false, mis',:~adi::i!g, or inaccurate information or statements to Lender
(or failed to provide Lender with mate~':~; infc~!?:t~n) in connection with the Loan. Material
representations includ, e, but are not limited., repi~:~'.:~tions concerning Borrower's occupancy of the
Property as Borrower s principal residence.. ' ~ ' ·
9. Protection of Lender's Interest in t~¢ 2):opeity and Rights Under this Security Instrument. If
(a) Borrower fails to perform the covenants and '-..gl ~nents contained in this Security Instrument, (b) there
is a legal proceeding that might significantly ai!.~: ~ender's interest in the Property find/or rights under
this Security Instrument (such as a proceeding i~ ':a4; :.~uptcy, probate, for condemnation or forfeiture, for
enforcement of a lien which may attain priorl[.~ :"/~er this Security Instrument or to enforce laws or
regulations), or (c) Borrower has abandoned ,?e ~. '~i~erty, then Lender may do and pay for whatever is
reasonable or appropriate to protect Lender s h'i': ~st in the Properly and rights under this Security
Instrument, including protecting and/or assessing 'd~c~talue of the Property, and securing and/or repairing
the Property. Lender's actions can include, but are ~t~:~t limited to: (a) paying any sums secured by a lien
which has priority over this Security Instrument;, ~b) appearing in court; and (c) paying reasonable
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658
attorneys, fees to protect its interest in the Property :md/or rights under this Security Instrument, including
its secured position in a bankruptcy proceeding. SecUring the Property includes, but is not limited to,
entering the Property to make repairs, change locks, i~bplace or board up doors and windows, drain water
from pipes, eliminate building or other code violatic};¢.,er dangerous conditions, and have utilities turned
on or off. Although Lender may take action under thi?.'~ection 9, Lender does not have to do so and is not
under any duty or obligation to do so. It is agreed ~;:~-~ .Lender incurs no liability for not talcing any or all
actions authorized under this Section 9. ~..,
Any amounts disbursed by Lender under this.'..:~ ~''': on 9 shall become additional debt of Borrower
secured by this Security Instrument. These amounts.i'!h~Li bear interest at the Note rate from the date of
disbursement and shall be payable, with such interco,.: d~on notice from Lender to Borrower requesting
payment.
If this Security Instrument is on a leasehold, i~0rr?w¢-c· shall comply with all the provisions of the
lease. If Borrower acquires fee title to the Property; th~ i~;<~i.hold and the fee title shall not merge unless
Lender agrees to the merger in writing. ,
10. Mortgage Insurance. If Lender required 1~;' ~ng~ :'" ~nsurance as a condition of making the Loan,
Borrower shall pay the premiums required to ma~nta' t. the Mortgage Insurance in effect. If, for any reason,
the Mortgage Insurance coverage required by Lende ceases to be available from the mortgage insurer that
previously Provided such insurance and Borrower :~ ~equired to make separately designated payments
toward the premiums for Mortgage Insurance, B-~:rower shall pay the premiums required to obtain
coverage substantially equivalent to the Mortgage ~ ~surance previously in effect, at a cost substantially
equivalent to the cost to Borrower of the M~rtg~:i ~ Insurance previously in effect, from an alternate
mortgage insurer selected by Lender. If substanti::.,iv:equivalent Mortgage Insurance coverage is not
available, Borrower shall continue to pay to Lend~ :]~$ amount of the separately designated payments that
were due when the insurance coverage ceased to b:~i i~ :ffect. Lender will accept, use and retain these
payments as a non-refundable loss reserve m. lieu ]:);. Mortgage Insurance. Such loss reserve shall be
non-refundable, notwithstanding the fact that the Lo~ 'is ultimately paid in full, and Lender shall not be
required to pay Borrower any interest or earnings oK;tmh loss reserve. Lender can no longer require loss
reserve payments if Mortgage Insurance coverage (i~,the amount and for the period that Lender requires)
provided by an insurer selected by Lender again I~ecomes available, is obtained, and Lender requires
separately designated payments toward the premiUn~, for Mortgage Insurance. If Lender required Mortgage
Insurance as a condition of making the Loan and 1~ o~o..wer was required to make separately designated
payments toward the premiums for Mortgage Ins~ac'e~ ~Borrower shall pay the premiums required to
maintain Mortgage Insurance in effect, or to pm?Me a non-refundable loss reserve, until Lender's
requirement for Mortgage Insurance ends in accorda~'ce w:th any written agreement between Borrower and
Lender providing for such termination or until termi-~?~fion is required by Applicable Law. Nothing in this
Section 10 affects Borrower's obligation to pay interest'at Me rate provided in the Note·
Mortgage Insurance reimburses Lender (or any. ~ntity that purchases the Note) for certain losses it
may incur if Borrower does not repay the Loan a~,; agreed. Borrower is not a party to the Mortgage
Insurance. ~ ...
Mortgage insurers evaluate their total risk on aK sdch insurance in force from time to time, and may
enter into agreements with other parties that share or n-,.odify their risk; or reduce losses. These agreements
are on terms and conditions that are satisfactory to ti e rlmrtgage insurer and the other party (or parties) to
these agreements. These agreements may require the mortgage insurer to make payments using any source
of funds that the mortgage insurer may have available ~which may include funds obtained from Mortgage
Insurance premiums).
As a result of these agreements, Lender, an~ p ~;?e~.a~er of the Note, another insurer, any reinsurer,
any other entity, or any affiliate of any of the forego '_~o,'.may receive (directly or indirectly) amounts that
derive from (or might be characterized as) a portion' f Borrower's payments for Mortgage Insurance, in
exchange for sharing or modifying the mortgage"
ne.~.:::: s risk, or reducing losses. If such agreement
provides that an affiliate of Lender takes a share c =.tTvc'.insurer's risk in exchange for a share of the
premiums paid to the insurer, the arrangement is ofte~ ~ :erg.~ed. "captive reinsurance." Further:
'(a) Any such agreements will not affect tla, amounts that Borrower has agreed to pay for
Mortgage Insurance, or any other terms of the L;i .~.n.'.Sueh agreements will not increase the amount
Borrower will owe for Mortgage Insurance, and. tb 'I"'~41t t:ol entitle Borrower to any refund.
PALMER, d&O- REF I 294.,,:. !gY$'
(~-6{WY}
Initials:
' Form 3051
0
1/Ol
659
(b) Any such agreements will not affect 'the :4ghts Borrower has - if any - with respect to the
Mortgage Insurance under the Homeowners Prot,~fion Act of 1998 or any other law. These rights
may include the right to receive certain dJseJc~'~.ores, to request and obtain cancellation of the
Mortgage Insurance, to have the Mortgage Insor.iiice terminated automatically, and/or to receive a
refund of any Mortgage Insurance premiums thai "~ere unearned at the time of such cancellation or
termination.
11. Assignment' of Miscellaneous Proceeds; .~rorfeiture. All Miscellaneous Proceeds are hereby
assigned to and shall be paid to Lender.
If the Property is damaged, such Mlscellaneou,~Proceeds shall be applied to restoration or repair of
the Property, If the restoration or rcpatr is ec~nor~il~ally :teasible and Lender s security is not lessened.
During such repair and restoration period, Lent,.ax s~! he.'ve the right to hold such Miscellaneous Proceeds
until _Le, nder h? had an opportunity to inspect suc~ ~o~.erty to ensure the work has been completed to
Lender s satistaction, provided that such iuspection..,,~b~l be dndertaken promptly. Lender may pay for the
repairs and restoration in a single disbursement ~i in a series of progress payments as the work is
completed. Unless an agreement is made in writing O..:i/Applicable Law requires interest to be paid on such
Miscellaneous PrOceeds, Lender shall not be reqt:irel: ~'.; pay Borrower any interest or earnings on such
Miscellaneous Proceeds. If the restoration or repa(~ is:~<,t economically feasible or Lender's security would
be lessened, the Miscellaneous Proceeds shall be apP!' :a to the sums secured by this Security Instrument,
whether or not then duc, with the excess, if an,,. pai'. ~o Borrower. Such Miscellaneous Proceeds shall be
applied in the order provided for in Section 2.
In the event of a total taking, destru, '.2, ~;'. [c::o in value of the Property, the Miscellaneous
Proceeds shall be applied to the sums secure~ / till!/~ecuritY Instrument, whether or not then due, with
the excess, if any, paid to Borrower. ~,;.
In the event of a partial taking, destructic,,, c~r L)ss in value of the Property in which the fair market
value of the Property immediately before the ~ :-~rt,;,: taking, destruction, or loss in value is equal to or
greater than the amount of the sums secured b~. th: ~ Security Instrument immediately before the partial
taking, destruction, or loss in value, unless BO~:.: ?,,;~r and Lender otherwise agree in writing, the sums
secured by. this Security Instrument shall be 'v.~'..:.(~d by the amount of the Miscellaneous Proceeds
multiplied by the following fraction: (a) the totaZ ~nount of the sums secured immediately before the
partial taking, destruction, or loss in value di':. ~i~l by (b) the fair market value of the Property
immediately before the partial taking, destruction, or !~)ss in value. Any balance shall be paid to Borrower.
In the event of a partial taking, destruction,. ~-[~ss in value of the Property in which the fair market
value of the Property immediately before the partia :~aking, destruction, or loss in value is less than the
amount of the sums secured immediately before t,h~partial taking, destruction, or loss in value, unless
Borrower and Lender otherwise agree in Writing, th,?!~iscellaneous ProCeeds shall be applied to the sums
secured by this Security Instrument whether or not t.~i: ~ums' are then due.
If the Property is abandoned by Borrower; 0~ if, after notice by Lender to Borrower that the
Opposing Party (as defined in the next sentence) 0li~'rs to make an award to settle a claim for damages,
Borrower fails to respond to Lender within 30 days ~!~er the date the notice is given, Lender is authorized
to collect and apply the Miscellaneous Proceeds eit'i~;~r t° restoration or repair of the Property or to the
sums secured by this SecUrity Instrument, whether or t~ot then due. "Opposing Party" means the third party.
that ow~es Borrower Miscellaneous Proceeds or the ~:..:i;ty against whom Borrower has a fight of action in
regard to Miscellaneous Proceeds. "' ~'
Borrower shall be in default if any action or o~,.~;-eeding, whether civil or criminal, is begun that, in
Lender's judgment, could result in forfeiture ~f (h,..~i 'Pr°perty or other material impairment of Lender's
interest in the Property or rights under this Security 10st;'ument. Borrower can cure such a default and, if
acceleration has occurred, reinstate as provided in Sq:tion 19, by causing the action or proceeding to be
dismissed with a ruling that, in Lender's judgment, t~recludes forfeiture of the Property or other material
impairment of Lender's interest in the Property' or q'~hts ~nder this Security Instrument. The proceeds of
any award or claim for damages that are attributable .':~!~ the impairment of Lender's interest in the Property
are hereby assigned and shall be paid to Lender. · :~:
All Miscellaneous Proceeds that are not zvplii~l to izestoration or repair of the Property shall be
applied in the order provided for in Section 2. '! ' ~ !~ '
PALMER,J&D-REFI
(~-6(WY) IoooBl
Initials:
Form 3051
0
1/01
660
12. Borrower Not Released; Forbearance .,r...; ~ Lender Not a Waiver. Extension of the time for
payment or modification of amortization of the suf:~s'.~ecCred by this Security Instrument granted by Lender
to Borrower or any Successor in IntereSt of Bon:.~we' shz:~: not operate to release the liability of Borrower
or any Successors in Interest of Borrower. Lender sl~gl, 1 not be required to commence proceedings against
any Successor in Interest of Borrower or to. refuse, to extend time for payment or otherwise modify
amortization of the sums secured by this Security Inst:'~ent by reason of any demand made by the original
Borrower or any Successors in Interest of Borrower..L~y forbearance by Lender in exercising any right or
remedy including, without limitation, Lender's acceptante of payments from third persons, entities or
Successors in Interest of Borrower or in amounts less taan 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; '~uc,essors and Assigns Bound. Borrower covenants
and agrees that Borrower's obligations and liability sE~ ~ be joint and several. However, any Borrower who ·
co-signs this Security Instrument but does not exeoc, te the Note (a "co-signer"): (a) is co-signing this
Security Instrument only'to mortgage, grant and cor.'.,~y the co-signer's interest in the Property under the
terms of this Security Instrument; (b) is not personal? Obligated to pay the sums secured by this Security
Instrument; and (c) agrees that Lender and any oth~- Borrower can agree to extend, modify, forbear or
make any accommodations with regard to the terms ,f this Security Instrument or the Note without the
co-signer's consent.
Subject to the provisions of Section 18, an~' Successor in Interest of Borrower who assumes
Borrower's obligations under this Security Iastrumer t in writing, and is approved by Lender, shall obtain
all of Borrower's rights and benefits under this Secu.'.q/.Instrument. Borrower shall not be released from
Borrower's obligations and liability under this Sectu5 :~::'.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 Borr~wot fees for services performed in connection with
Borrower's default, for the purpose of protecting Le~:~er~'s interest in the Property and rights under this
Security Instrument, including, but not limited to, at'.~,.~ey$' fees, property inspection and valuation fees.
In regard to any other fees, the absence of express au ?-.5~*.y in this Security Instrument to charge a specific
fee to Borrower shall not be construed as a prohibitio::','~g fl~8 charging of such fee. Lender may not charge
fees that are expressly prohibited by this Security Ins.t~:?me~.t or by Applicable Law.
If the Loan is subject to a law which sets maxin~ ~m loan charges, and that law is finally interpreted so
that the interest or other loan charges collected or t~ Be collected in connection with the Loan exceed the
permitted limits, then: (a) any such loan charge sh:~tl ;:be r.ed:med by the amount necessary .to reduce the
charge to the permitted limit; and (b) any sums a!.re;~ i:!! .c01!~c.:ed from Borrower which exceeded permitted
limits will be refunded to Borrower. Lender m3y r:~oose ;c. make this refund by reducing the principal
owed under the Note or by making a d~rect payment :re rmrrower. If a refund reduces prmmpal, the
reduction will be treated as a partial prepayment i".,~l/out ~my prepayment charge (whether or not a
prepayment charge is provided for under the Not~) :[/)orrawer's acceptance of any such refund made by
direct payment to Borrower will constitute a waiver ?'ilan'y.right of action Borrower might have arising out
of such overcharge.;~
15.. Notices. All notices given by Borrower' o "Eender in connection with this Security Instrument
must be in writing. Any notice to Borrower in conne':',~ion.with this Security Instrument shall be deemed to
have been given to BorroWer when mailed b~t firs~ t:[.ass. ;.mail or when actually delivered to Borrower's
notice address if sent by other means: Notice to 'any ~ae Borrower shall constitute notice to all Borrowers
unless Applicable Law expressly requires otherwise] The'~notice address shall be the Property Address
unless Borrower has designated a substitute notiee a'~.'r,ess by notice to Lender. Borrower shall promptly
notify Lender of Borrower'S change of address. If Lyider specifies a procedure for reporting Borrower's
change of address, then Borrower shall only report ~' .:hange of address through that specified procedure.
There may be only one .designated notice address u~::ler~'this Security Instrument at any one time. Any
notice to Lender shall be given by delivering it or ?~y'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 beMe6med to have been given to Lender until actually
received by Lender. If any notice required by this S.,~Curity. Instrument is also required under Applicable
Law, the Applicable Law requirement will satisfy ..!:~e corresponding requirement under this Security
Instrument. "
PALMER. J&D-REF I 2943 ~37~ ' 0
(~-6(WY) Iooo5} Pa~e ~, ' ~5 Form'3051 1/01
661
16. Governing Law; Severability; A'~..).s .r~:'. Construction. This Security Instrument shall be
governed by federal law and thc law of the ;~:5.rdicA ~n in which the Property is located. All rights and
obligations contained in this Security Instmm~Dt" ,~e subject to any requirements and limitations of
Applicable Law. Applicable Law might explic!.~:.~.y 9~implicitly allow the parties to agree by contract or it
fight be silent, but such silence shall not be c~nstri,:~l as a prohibition against agreement by contract. In
e event that any provision or clause of this ,,%:.~,;~ Instrument or the Note conflicts with Applicable
Law, such conflict shall not affect other provisi(-!:'~.ii' ~f this Security Instrument or the Note which can be
given effect without the conflicting provision.
As used in this Security Instrument: (a) w.~!.:,:~ of the masculine gender shall mean and include
corresponding neuter words or words of the fern~a~!ie gender; (b) words in the singular shall mean and
include the plural and vice versa; and (c) the wotd/~tnay'' gives sole discretion without any obligation to
take any action.
17. Borrower's Copy. Borrower shall be give5 ~ne copy of the Note and of this Security Instrument.
18. Transfer of the Property or a Benefici$!~Interest in Borrower. As used in this Section 18,
"Interest in the Property" means any legal or benefi<i~l interest in the Property, including, but not limited
to, those beneficial interests transferred in a bond fc: :deed, contract for deed, ~nstallment sales contract or
escrow agreement, the intent of which is the transfer ~,f title by Borrower at a future date to a purchaser.
If all or any part of the Property or any Interes~ ,n the Property is sold or transferred (or if Borrower
is not a natural person and a beneficial interest in El. ~ower is sold or transferred) without Lender's prior
written consent, Lender may require immediate pT,~rnent in fuIl of all sums secured by this Security
Instrument. However, this option shall nOt be ex:r..cised by Lender if such exercise is prohibited by
Applicable Law.
If Lender exercises this option, Lender shall'l~;~'e Borrower notice of acceleration. The notice shall
provide a period of not less than 30 days from t~ $[~te the notice is given in accordance with Section 15
within which Borrower must pay all sums secu:~t ~ this Security Instrument. If Borrower fails to pay
these sums prior to the expiration of this period. 'I.~ender may invoke any remedies permitted by this
Security Instrument without further notice or de~namt T~n Borrower. ·
19. Borrower's Right to Reinstate Aft6r ~3.~celeration. If Borrower meets certain conditions,
Borrower shall have the right to have enforcemen~ .!;f this Security Instrument discontinued at any time
prior to the earliest of: (a) five days before sale of. q ~xProperty pursuant to any power of sale contained in
this Security Instrument; (la) such other periOd as '.,~pplicable Law might specify for the termination of
Borrower's right to reinstate; or (c) entry of .? l:~lgment enforcing this Security Instrument. Those
conditions are that Borrower: (a) pays Lende~ c':i i~i.; which then would be due under this Security
InstrUment and the Note as if no acceleration had ~c~"'~:'ed; (b) cures any default of any other covenants or
agreements; (c) pays all expenses incurred in enforchi~ii this ~3ecurity Instrument, including, but not limited
to, reasonable attorneys' fees, property inspection)3~ld valuation fees, and other fees incurred for the
purpose of protecting Lender's interest in the Prope;~i¥ ~:_,-~d rights under this Security Instrument; and (d)
takes such action as Lender may reasonably req;:ire;i[> assure that Lender's interest in the Property and
rights under this Security Instrument, and Borrower? _~ pbligation to pay the sums secured by this Security
Instrument, shall continue unchanged. Lender n.v.y r,.. c ~ire that Borrower pay such reinstatement sums and
expenses in one or more of the following fz '-.;, a~. ~eier:ted by Lender: (a) cash; (b) money order; (c)
certified check, bank check, treasurer's chec:< cam'~ ?.rq,'. check, provided any such check is drawn u~on
an ~nst~tution whose deposits are insured bye' :.' ~:der~.$ ~gency, instrumentality or entity; or (d) Electronic
Funds Transfer. Upon reinstatement by Borrc;~,}':. this: Security Instrument and obligations secured hereby
shall remain fully effective as if no acceleraticr. ~'~a:i'.,.i:bccurred. However, this right to reinstate shall not
apply in the case of acceleration under Section l
20. Sale of Note; Change of Loan Servic.~i:; ' * ' of
:,;pt~ce Grievance. The Note or a partial interest in
the Note (together with this Security Instmmen':'.' C: 'ii be sold one or more times without prior notice to
Borrower. A sale might result in a change in ' i}ndty (known as the "Loan Servicer") that collects
Periodic Payments due under the Note and this:~. ~'Lu-ity Instrument and performs other mortgage loan
Servicing obligations under the Note, this Securit?.?~tmment, and Applicable Law. There also might be
one or more changes of the Loan Servicer unrelatec; t~. a sale of the Note. If there is a change of the Loan
Servicer, Borrower will be given written notice of rE,change which will state the name and address of the
new Loan Servicer, the address to which payments~jhould be made and any other information RESPA
PALMER, J&D- REF I 294~ .i!873 0
Initials:
6(WY) Iooos} pag~;:,i oi 15 Form 3051 1/01
662
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 purchase] of'the Note, the mortgage loan servicing obligations
to Borrower will remain with the Loan Servicer or .b:~ tr~i~sferred to a successor Loan Servicer and are not
assumed by the Note purchaser unless otherwise provi ,.!~, ~y the Note purchaser.
Neither Borrower nor Lender may commence, .3~::c~; or be joined to any judicial action (as either an
individual litigant or the member of a class) that az?sc:, from the other party's actions pursuant to this
Security Instrument or that alleges that the other party ha~ breached any provision of, or any duty owed by
reason of, this Security Instrument, until such Borrower o7 Lender has notified the other party (with such
notice given in compliance with the requirements 0,~ Sec.?ion 15) of such alleged breach and afforded the
other party hereto a reasonable period after the :~giving'-':,f such notice to take corrective action. If
Applicable Law provides a time period which ~us; ~!ap{~ 5efore certain action can be taken, that time
period will be deemed to be reasonable for purposes of ':_~.:.: paragraph. The notice of acceleration and
opportunity to cure given to Borrower pursuant t:: Sec~!.on 22 and the notice of acceleration given to
Borrower pursuant to Section 18 shall be deemed t~' :~at:.sfy the notice and opportunity to take corrective
action provisions of this Section 20.
21. Hazardous Substances. As used in thir. Section 21: (a) "Hazardous Substances" are those
substances defined as toxic or hazardous subs~ances~ pollutants, or wastes by Environmental Law and the
following substances: gasoline, kerosene, other fiaz)~nable or toxic petroleum products, toxic pesticides
and herbicides, volatile solvents, materials conta!.ning as~.~cs or formaldehyde, and radioactive materials;
(b) "Environmental Law" means federal laws and !aw{ of the jurisdiction where the Property is located that
relate to health, safety or environmental protecti0n~i'(:). "Environmental Cleanup" includes any response
action, remedial action, or removal action, as defme'~. ~ .Environmental Law; and (d) an "Environmental
Condition" means a condition that can cause', C°i:,~rjbute to, or otherwise trigger an Environmental
Borrower shall not cause or permit the preseng'~ i ~nse, disposal storage, or release of any Hazardous
Substances, or threaten to release any Hazardous ,Sul~"tanees, on or in the Property. Borrower shall not do,
nor allow anyone else to do, anything affecting the .p;qpeny'(a) that is in violation of any Environmental
Law, (b) which creates an Environmental Conditional .)r (c) which, due to the presence, use, or release of a
Hazardous Substance, creates a condition that adve.rr't!y affects the value of the Property. The preceding
two sentences shall not apply to the presence, use..~'r storage on the Property of small quantities of
Hazardous Substances that are generally recognized to be appropriate to nOrmal residential uses and to
maintenance of the Property (including, but not limited tO, hazardous substances in consumer products).
Borrower shall promptly give Lender written n;_~t{'c~: of (a) any investigation, claim, demand, lawsuit
or other action by any governmental or regulatory a~(::0,cy or private party involving the Property and any
Hazardous Substance or Environmental LaW of :';,&ich Borrower has actual knowledge, Co) any
Environmental Conditionl including but not limited t051 =ahy spilling, leaking, discharge, release or threat of
release of any Hazardous Substance, and (c) any. Cc.r.;.::~t. mn caused by the presence, use or release of a
Hazardous Substance which adversely affects the vat',.?: ;of the Property. If Borrower learns, or is notified
by any governmental or regulatory authority, or any 07~a, te party, that any removal or other remediation
of any Hazardous Substance affecting the Property is .*:.;~esaary, Borrower shall promptly take all necessary
remedial actions in accordance with Environmentat.it.aw...Nothing herein shall create any obligation on
Lender for an Environmental Cleanup.
PALMER. J&D-REFI
(~)~'6!WY) {ooo~
Initials:
Form 3051
0
1/01
NON-UNIFORM COVENANTS. Borrower P~D Lender further covenant and agree as follows:
22. Acceleration; Remedies. Lender shall g~., ~i. notice to Borrower prior to acceleration following
Borrower's breach of any covenant or agr~eem~a';t in this Security Instrument (but not prior to
acceleration under Section 18 unless Applicab~v~ L li* provides otherwise). The notice shall specify: (a)
the default; (b) the action required to cure the de'~ a ult; (c) a date, not less than 30 days from the date
the notice is given to Borrower, by which the det.qflt must be cured; and (d) that failure to cure the
default on or before the date specified in the noti, '.~ may result in acceleration of the s,]mn secured by
this Security Instrument and sale of the Properti~(.; The notice shall further inform Borrower of the
right to reinstate after acceleration and the right ~ bring a court action to assert the non-existence of
a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or
before the date specified in the notice, Lender ~"i t'$ o~Jtion may require immediate payment in full of
all sums secured by this Security Instrument witr;i~i::t further demand and may invoke the power of
sale and any other remedies Permitted by ApPli,:tble Law. Lender shall be entitled to collect all
expenses incurred in pursuing the remedies provid!~J in this Section 22, including, but not limited to,
reasonable attorneys' fees and costs of title evid a!i. '
If Lender invokes the power of sale, Lendec :.;;':all give notice of intent to foreclose to Borrower
and to the person in possession of the 1~.'? - rty,'.!!' different, in accordance with Applicable Law.
Lender shall give notice of the sale to Bot-:. 'er i~ ~he manner provided in Section 15. Lender shall
publish the notice of sale, and the Prope:. shai~.i Oe sold in the manner prescribed by Applicable
Law. Lender or its designee may purchase ~.a :. Frc~?rty at any sale. The proceeds of the sale shall be
applied in the following order: (a) to al): e×l~i!~es of the sale, including, but not limited to,
reasonable attorneys' fees; (b) to-all sums se: .~e,!'by this Security Instrument; and (c) any excess to
the person or persons legally entitled to it. ' :~
23. Release. Upon payment of all sums secu~ :~'by this Security Instrument, Lender shall release this
Security Instrument. Borrower shall pay any rec ",trion. costs. Lender may charge Borrower a fee for
releasing this Security Instrument, but only if the ie :::is paid to a third party for services rendered and the
charging of the fee is permitted under Applicable La.~L
24. Waivers. Borrower releases and w'aive~ 'all rights under and by virtue of the homestead
exemption laws of Wyoming.
PALMER, J&D-REFI
(~)~-6(WY! (ooo~)
Initials:
Form 3061
1/Ol
664
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this
Security Instrument and in any Rider executed by BmT,:)wer and recorded with it.
Witnesses:
(Seal)
-Borrower
D'i ane Palmer
(Seal)
-Borrower
(Seal) . (Seal)
-Borrower · . -Borrower
PALMER.J&D:REFI
(~6(WY) 10005~
(Seal)
-Borrowe~
(Seal) .
-Borrower
2942'.873
Page 1~; ~f ! 5
(Seal)
-Borrower
(Seal)
-Borrower
0
Form 3051 1/01
665
ADJUSTABI',], RATE RIDER
(LIBOR One-Year Index (As Publis~:..~,~ ~ The Wall Street Journal) - Rate Caps)
THIS ADJUSTABLE RATE RIDER is made., I.; 12th day of ^ugust 2003
and is incorporated into and shall be deemed tv a i,~nd and supplement the Mortgage, Deed of Trust,
or Security Deed (the "Security Instrument") of t~e s.trne date given by the undersigned (the "Borrower")
to secure Borrower's Adjustable Rate Note (the "Nc, :") to/HE OACKSON $1^1[ 8ANK & IRUST
(the "Lender") of the same date and covering the pn.lmrty described in the Security Instrument and located
at:
267 C-S Lane.':l;na.WY 83118
[Propen!, ~ddress]
THE NOTE CONTAINS PROVISION~ ALLOWING FOR CHANGES IN THE
INTEREST RATE AND THE MONTH[ ~ PAYMENT. THE NOTE LIMITS THE
AMOUNT THE BORROWER'S INTi:'I~E~T RATE CAN CHANGE AT ANY ONE
TIME AND THE MAXIMUM RATE THE ~ORROWER MUST PAY.
ADDITIONAL COVENANTS. In addition :,.. the covenants and agreements made in the Security
Instrument, Borrower and Lender further covenant ~ i agree as follows:
A. INTEREST RATE AND MONTELLY 2.&~:~glF, I~-~T CHANGES
The Note provides for an initial interest rate c ::. 3. 7500 %. The Note provides for
changes in the interest rate and the monthly paymenr_s ~:s'follcws:
AND MONTHLY PA'Y~tENT CHANGES
4.
INTEREST
RATE
(A) Change Dates '"
The interest rate I will pay may change on tt,~ fi~',~...-lay of September. 2006 ,
and on that day every 12th month thereafter, l~ach d:~:: on which my interest rate could change is called a
"Change Date."
PALMER.d&D-REFI 943 3Y 0
MULTISTATE ADJUSTABLE RATE RIDER - WSJ L::,-..'~ar ,.;:5OR -Single Family- Fannie Mae
UN IFORM INSTRUMENT
I~I1-166R (0109).01 Form 3189 6/01
VMP MORTGAGE FORMS - (800)521-7291
i
666
01) The Index
Beginning with the first Change Date, my interest re.'~ ,:-ill be based on an Index. The "Index" is the
average of interbank offered rates for one-year U.5 dolS,--denominated deposits in the London market
("LIBOR"), as published in The Wall Street Journal. Uae -r',rsz recent Index figure available as of the date
45 days before each Change Date is called the "Current Index. :'
If the Index is no longer available, the Note tiolder will choose a new index which is based upon
comparable information. The Note Holder will give :7.2 notice of this choice.
(C) Calculation of Changes
Before each Change Date, the Note Holde;" .will calculate my new interest rate by adding
Two and One / Quarter percentage points
( 2. 2500 %) to the Current Index. ~The Note Holder will then round the result of this
addition to the nearest one-eighth of one percentage. pbint (0.125%). Subject to the limits stated in Section
4(D) below, this rounded, amount will be my new inte~ sst rate until the next Change Date.
The Note Holder will then determine the amotm}.~of.the monthly payment that would be sufficient to
repay the unpaid principal that I am expected to owe .}: uhe Change Date in full on the maturity date at my
new interest rate in substantially equal payments. Th,'result of this calculation will be the new amount of
my monthly payment. , .~
(D) Limits on interest Rate Changes . ~
The interest rate I am required to pay ai~ ~he first Change Date will not be greater than
5. 7500 % or less than 2::2.500 %. Thereafter, my interest rate will
never be increased or decreased on any single Chang: Date by more than two percentage points from the
rate of interest I have been paying for the preceding 12 mon. ths. My interest rate will never be greater than
9. 7500 %.
Og) Effective Date of Changes . ~'
My new interest rate will become effective on ,}ch'Change Date. Ii will pay the amount of my new
monthly payment beginning on the first monthly pay.~:~ent date after the Change Date until the amount of
my monthly payment changes again. ~ ~.,
PALMER. J&D- REF I
(~166R 10109).01
29430373.
Page '? .of 4,"
~ ,
;.
Initials:
Form 3189 6101
667
(F) Notice of Changes
The Note Holder will deliver or mail to me a n, ..ice of any changes in my interest rate and the amount
of my monthly payment before the effective date ,~,f any change. The notice will include information
required by law to be given to me and also the title ~t;l'telephone number of a person who will answer any
question I may have regarding the notice.
B. TRANSFER OF Tll~E PROPERTY OR A BEN[,tlCI-~L INTERF_,ST IN BORROWER
Section 18 of the Security Instrument is amended to r~ ,dm follows:
Transfer of the Property or a Beneficia! ~[r:erest in Borrower. As used in this Section
18, "Interest in the Property" means any legal r~:' 0eneficial interest in the Property, including,
but not limited to, those beneficial interes~.s tr~i:L~ ferred in a. bond for deed, contract for deed,
installment sales contract or escrow agree.uenL: .:~e intent of which is the itransfer of title by
Borrower at a future date to a purchaser.
If all or any part of the Property c: -'..y In~:..'eot in the Property is sold or transferred (or if
Borrower is not a natural person and ~. t,~...,:efi,j. 1 interest in Borrower is sold or transferred)
without Lender's prior written consent, L.'.r.3t ~ may require immediate payment in full of all
sums secured by this Security Instrument. i:-":o~ ,'er, this option shall not be exercised by Lender
if such exercise is prohibited by Applicab;t., L;. ~'. Lender also shall not exercise this option if:
(a) Borrower causes to be submitted to Lc-:: .".: reformation required by Lender to evaluate the
intended transferee as if a new loan wet',: !;~ing made to the transferee; and (b) Lender
reasonably determines that Lender's security . ;'il not be impaired by the loan assumption and
that the risk of a breach of any covenant or ag~.' etnent in this Security Instrument is acceptable to
Lender.
To the extent permitted by Applicable l.~w, Lender may charge a reasonable fee as a
condition to Lender's consent to the loan ass ,m-d[ltion. Lender may also require the transferee to
sign an assumption agreement that is acceptab~ to Lender and that obligates the transferee to
keep all the promises and agreements made :n the Note and in this Security Instrument.
Borrower will continue to be obligated made,, the Note and this Security Instrument unless
Lender releases Borrower in writing.
If Lender exercises the option to requin, ~anmediate payment in full, Lender shall give
Borrower notice of acceleration. The notice sn~tprovide a period of not less than 30 days from
the date the notice is given in accordance with :.ection 15 within which Borrower must pay all
sums secured by this Security Instrument. It ;?c, rrower fails to pay these sums prior to the
expiration of this period, Lender may invoke, ia,?: remedies permitted by this Security Instrument
without further notice or demand on Bcrro
PALMER,J&D-REFI
294311873
(~.;166R ¢0109).01 Page ~ of 4
(.
Initials:
Form 3189 6101
668
BY SIGNING BELOW, Borrower accepts and ag}ecs to the terms and covenants contained in this
Adjustable Rate Rider.
-Borrower
· Di ane Pal mer -Bo~ow=
(Seal)
-Borrower
(Seal)
-Borrower
PALMER. J&D- REF I
(~166R (0109J.01
(Seal)
-Borrower
(Seal) ·
-Borrower '
2943(:873
Page . of 4
(Seal)
-Borrower
(Seal)
-Bo~ower
0
Form 3189 6/01
STATE OF WYOMING,
The foregoing instrument was acknowledg*d 'b~fr
-~ . e me this
bydeffrey p. Palmer ~n..d Piane
669
Teton C6unty ss:
August 12. 2003
My Commission Expires:
STATE OF
The foregoing instrument was ackfio*r[edged before me this
by .- '
COUNTY ss:
My Commission Expires:
PALMER, J&O- REF I
I~-6(W¥} ;ooom
2943~,3 ~3
Page ti 5 i ' 5
IniliaJs:
0
Form 3051 1/01