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HomeMy WebLinkAbout892761Return To: Prepared By: Sha ton Wa 1 ker [192761 i~OOK RECEIVED 'LINCOLNCOUNTY CLERK 532 PR PAOED 68 [Space Above This Line For Recording Data[ MORTGAGE MIN 1000492- 0001536214-5 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated together with all Riders to this document. (B) "Borrower"is Rodd Hillyard and Cindy Hillyard, August 20, 2003 Husband and 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. MERS is the mortgagee under this Security h~strument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. HILLYARD, R. AF 1536214 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS 0 Form 3051 1/01 (~®-6A(WY} (ooo6).o~ Page 1 of 15 MW 05,00.01 Initials.. ¢~/ VMP MORTGAGE FORMS - {8001521-7291 0 6 9 (D) "Lender" is Major Mortgage Lender is a A Wyoming Corporation organized and existing under the laws of Lender's address is 1920 Thomes Ave., Wyoming Ste 200. Cheyenne. WY 82001 (E) "Note" means the promissory note signed byiBorrower and dated August 20, 2003 The Note states that Borrower owes Lender One Hundred Forty Fi ve Thousand and no/100 Dollars (u.s. $145,000. O0 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than September 1, 2033 (F) "ProPerty" means the property that is described below' under the heading "Transfer of Rights in the Property." (G)'"Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider F~ Condominium Rider ['--] Second Home Rider F--] Balloon Rider F~ Planned Unit Development Rider [--] 1-4 Family Rider F--] VA Rider ~ Biweekly Payment Rider [---] Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Commtmity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to .order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in 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 taking of all or any part of the Property; (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 insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled mount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of &is Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. HILLYARD. R. AF 1536214' 0 (~-6AIWY} 10005).01 Page 2 of 1§ Form 3051 1/01 (Q) "Successor in Interest of Borrower" mea~s: any party that has taken title to the Property, whether or not that party has assumed Borrower's obligatiqnS under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERw This Security Instrument secures to Lender: (i) ~he repayment of the _~L,o.,.an, and all renewals, extensions and modifications of the Note; and (ii) the perfprnumce of Borrower s covenants and agreements under this Security Instrument and the Note. For this ~urpose, Borrower does hereby mortgage, grant and conveY to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power .~f sale, the following described property located in the County of Li ncol n : [Type of Recording Jurisdiction] i [Name of Recording Jurisdiction] Lot 13 of Twin Cliffs Subdivisio~ No. 3 to the Town of Afton, Lincoln County, Wyoming filed July 25, 2003 as Instrument No. 891931 of the records of the Lincoln County Clerk. Parcel ID Number: 12-32181830007400 997 Aspen Court Alton ("Property Address"): [Ci~] which currently has the address of [Street] , Wyoming 83110 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now ~r hereafter a part of the property. All replacements and additions shall also be covered by this Secu~iiy Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borro,~er understands and agrees that MERS holds only legal title to the interests granted by Borrower in this S~eurity Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and L~der's successors and assigns) has the right: to exercise any or all of those interests, including, but not li~ted to, the right to foreclose and sell the Property; and to take any action required of Lender includin~ but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrm~er is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the l encumbrances of record. Borrower warrants a claims and demands, subject to any encumbran THIS SECURITY INSTRUMENT' corn covenants with limited variations bY jurisdicti property. ~roperty and that the Property is unencumbered, except for ad will defend generally the title to the Property against all ecs of record. fines uniform covenants for national use and non-uniform ~n to constitute a uniform security instrument covering real HILLYARD, R. AF (~i)~-6AIWY) Iooo~.Ol 1536214 ,.,,,.,..~// ~. 0 Page 3 of 15 Form 3051 1/01 07! UNIFORM COVENANTS. Borrower and Lender covenant mad agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note 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 Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money or&r; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applie~ as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrmnent or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrawer for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, [he payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exisls after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges mad then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any mad 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 assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items 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 Funds 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 amounts HILLYARD. R. ^[ 1536214 0 1{~}~-6A(WY) (ooos).ol Page4of is Form 3051 1101 072 / due for any Escrow Items for which paymentlof Funds hap been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing s~ch payment:~ within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in thi~ SecUrity In4tmment, as the phrase "covenant and agreement" is used in SeCtion 9. If Borrower is obligated to pay E~crow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for anlEscrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall th~n be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as Il any or alii Escrow Items at any time by a notice given in accordance with Section 15 and, upon such ~evocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under th Lender may, at any time, collect and ho the Funds at the time specified under RESP require under RESPA. Lender shall esfimat reasonable estimates of expenditures of futu Law. The Funds shall be held in an insl instrumentality, or entity (including Lender, any Federal Home Loan Bank. Lender shall .' specified under RESPA. Lender shall not cl~ analyzing the escrow account, or verifying tl Funds and Applicable Law permits Lender t( or Applicable Law requires interest to be pal any interest or earnings on the Funds. Bom shall be paid on the Funds. Lender shall g? Funds as required by RESPA. If there is a surplus of Funds held in Borrower for the excess funds in accordance as defined under RESPA, Lender shall notif~ Lender the amount necessary to make up th~ monthly payments. If there is a deficiency of notify Borrower as required by RESPA, and up the deficiency in accordance with RESPA Upon payment in full of all sums secm to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall 1 attributable to the Property which can attain ground rents on the Property, if any, and Co: the extent that these items are Escrow Items, s Section 3. d Fut~ds in ~ amount (a) sufficient to permit Lender to apply [, and (b) got to exceed the maximum amount a lender can the ,amoun~ of Funds due on the basis of current data and e Escrow Items or otherwise in accordance with Applicable itution who~e deposits are insured by a federal agency, if Lender is ~ institution whose deposits are so insured) or in Pply the Fur~ds to pay the Escrow Items no later than the time arge BorroWer for holding and applying the Funds, annually re: Esqrow Items, unless Lender pays Borrower interest on the make such ~t charge. Unless an agreement is made in writing on the Fmfds, Lender shall not be required to pay Borrower uer and Le~der can agree in writing, however, that interest te to BorroWer, without charge, an armual accounting of the escrow, as Oefined under RESPA, Lender shall account to with,RESP/~. If there 'is a shortage of Funds held in escrow, ' :Borrower a~ required by RESPA, and Borrower shall pay to shortage in ~ccordance with RESPA, but in no more than 12 Funds held in escrow, as defined under RESPA, Lender shall Borrower st~all pay to Lender the amount necessary to make but in no m,bre than 12 monthly payments. ed by this S.ecurity Instrument, Lender shall promptly refund ~ay all taxes~, assessments, charges, fines, and impositions Priority over this SecUrity Instrument, leasehold payments or nmumty Asspcmt~on Dues, Fees, and Assessments, if any. To Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge an) 'lien :which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payme at of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is lmrforming sgch agreement; (b) contests the lien in good faith by, or defends against enforcement of the li~'~n in, legal proceedings which in Lender's opinion operate to prevent the enforcement.of the lien while thbse proceedihgs are pending, but only until such proceedings are concluded; or (c) secures from the holde4of he lien ~ agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lend4r determine~ that any part of the Property is subject to a lien which can attain priority over this Security I~strument, L~nder may give Borrower a notice identifying the HILLYARD, R, AF (~-6A{WY) ~ooo~).o~ 1536211 0 Page 5 of 11~ Form 3051 1101 lien. Within 10 days of the date on which that 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 L~an. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (inclUding deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance {hail be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan;. 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 counection with the review of any flood zone determination resulting from an Objection by Borrower. If Borrower fails to maintain 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 Property, against any risk, hazard or liability and might provide greater or lesser co~verage 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 amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured bY this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage claUse, and shall name Lender as mortgagee and/or as an 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 damage to, or destruction of, the Property; such poli~y shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt not[ce 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 applied to restoration or repair of the Prope~y, if the restoration or repair is economically feasible and Lender's security is not lessened. During sucli repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has:had an opl~ortunity 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 ~d 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 proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees '.for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured: by this SecUrity Instrument, whether or not then due, with HILLYARD, R. AF 1536214 0 (~-6A(WY) 1ooo5).o~ ~=a~ ~ ot 1~ Form 3051 1/01 the excess, if any, paid to Borrower. SUch in Section 2. If Borrower abandons the Property, L, claim and related matters. If Borrower does insurance carrier has offered to settle a claim period will begin when the notice is given. Section 22 or otherwise, Borrower hereby proceeds in an amount not to exceed the amc (b) any other of Borrower's rights (other ti Borrower) under all insurance policies cover coverage of the Property. Lender may use the to pay amounts unpaid under the Note or this 6. Occupancy. Borrower shall occup) residence within 60 days after the execution Property as Borrower's principal residence fo otherwise agrees in writing, which consent cimumstances exist which are beyond Borrow, 7. Preservation, Maintenance and Pr 0?4 Durance proceeds shall be applied in the order provided for in ruder may file, negotiate and settle any available insurance not respond within 30 days to a notice from Lender that the then Lender may negotiate and settle the claim. The 30-day In either event, or if Lender acquires the Property under assigns to Lender (a) Borrower's rights to any insurance ~unts unpaid under the Note or this Security Instrument, and tan the fight to any refund of unearned premiums paid by ng the Property, insofar as such rights are applicable to the insurance prOceeds either to repair or restore the Property or Security Instrument, whether or not then due. , establish, and use the Property as Borrower's principal of this Security Instrument and shall continue to occupy the r at least one year after the date of occupancy, unless Lender shall not be unreasonably withheld, or unless extenuating ;frs control. ~tection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, a~[low the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residiJ~g 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 repairi or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged ~ avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connectioh with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restorin~ the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for t~e repairs and restoration in a single payment or in a series of progress payments, as the work is completed. IIf the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower ig: 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 intqrior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to sucl~ an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. B.oqrower shall be in default if, during the Loan application process, Borrower or any persons or entitiO, s acting at the direction of Borrower or with Borrower's Imowledge or consent gave materially false, n~isleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower s occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in th (a) Borrower fails to perform, the covenants ar is a legal proceeding that might significantly this Security Instrument (such as a proceeding enforcement of a lien which may attain pti · Property and Rights Under this Security Instrument. If d agreements contained in this Security Instrument, (b) there affect Lender's interest in the Property and/or rights under in bankruptcy, probate, for condemnation or forfeiture, for >rity 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 Lenderl's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, bet are not limited to: (a) paying any sums secured by a lien which has priority over this Security Inst~ment; (b) appearing in court; and (c) paying reasonable HILLYARD. R. AF 1536214 0 (~II~-6AIWY) (oooa).o~ Peg. ? of 15 Form 3051 1101 O?5 attorneys' fees to protect its interest in the Propert!4 and/or rights under this Security Instrnment, including its secured position in a bankruptcy proceeding. !$ecuri~g the Property includes, but is not limited to, entering the Property to make repairs, change lOcgs, replace or board up doors and windows, drain water from pipes, eliminate buildhtg or other code viOlaQons o~ dangerous conditions, and have utilities turned on or off. Although Lender may take action under this SeCtion 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that I~nder incurs no liability for not taking any or ail actions authorized under this Section 9. Any mounts disbursed by Lender under this Sectign 9 shail become additional debt of Borrower secured by this Security Instrument. These ~gnounts shai~bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrog, er shall comply with ail the provisions of the lease. If Borrower acquires fee title to the Property, the l~.asehold and the fee title shail not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required ~ortgqge Insurance as a condition of making the Loan, Borrower shail pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower! was rqquired to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantiaily equivalent to the Mortgage Insuragce previously in effect, at a cost substantiaily equivalent to the cost to Borrower of the Mortgage InSurance previously in effect, from an aiternate mortgage insurer selected by Lender. If substantJaily {quivaient Mortgage Insurance coverage is not available, Borrower shail continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in ~ffect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shail be non-refundable, notwithstanding the fact that the .I;oan is Bltimately paid in full, and Lender shail not be required to pay Borrower any interest or earrings ,on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the ~nnount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiurhs for l~lortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and! Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance,i Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to Pr°vide ia non-refundable loss reserve, until Lender's requirement fox' Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until terminatioo is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or ~y entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan: as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaiuate their total riak on;all sucla insurance in force from time to time, and may enter into agreements with other parties that slaare Or modi[fy their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to; the mdrtgage 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, any: purch~tser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of may of the foregoing, .may receive (directly or indirectly) amounts that derive from (or might be characterized as) a porti.tn of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage~ insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often ten~aed "captive reinsurance." Further: (a) Any such agreements Will not affect the amounts that Borrower has agreed to pay for Mortgage Imm'mace, or any other terms of the Loan. ~uch agreements will not increase the amount Borrower will owe for Mortgage Insurance~ and they will not entitle Borrower to any refund. HILLYARD. R. AF 1536214 0 (~-6A(WY) {ooo51.o~ P~e8o! ~s ~ Form 3051 1/01 (b) Any such agree~nents will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowner.g Protection Act of 1998 or any other law. These rights may include the right to receive certain ~disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage !Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is eConomically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such ProPerty to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall .be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums securedby this Security Instrument, 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 market value of the Property immediately before the'. partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or'not the sums are then due. If the Property is abandoned by BorrOwer, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sent~ce) offers to make an award to settle a claim for damages,. Borrower fails to respond to Lender within 30: days after the date the notice is given, Lender is authorized tO collect and apply the Miscellaneous Proce6ds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provid6:l 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 in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. HILLYARD, R. AF 153621,~ (~)~-6A(WY) (0005).01 Page 9 of 15 Form 3051 0 1101 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of tlxei sums secured by this Security Instrmnent granted by Lender to Borrower or any Successor in Interest of l~,Orrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to comanence proceedings against any Successor in Interest of Borrower or t~ refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Insu'ument 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, Lendeffs acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amoufits 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-siglaers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liab]lity shall be joint and several. However, any Borrower who co-signs this Security Instrument but does n6t execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and wy other Borrower can agree to extend, modify, forbear or make any accommodations with regard to th~ terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security I~trument 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-.his Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns 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' fees,, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Securi!y Instrument or by Applicable Law. If the Loan is subject to a law which sets. maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums. already collected from Borrower which exceeded permitted limits will be refunded to. Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct:payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prep~ment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower ir. connection with this Security Instrument shall be deemed to have been given to Borrower when mailed ~ first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice 'to any one Borrower shall constitute nOtice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute ao, tice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of addreas. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only re:port a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated :another address by notice to Borrower. Any notice in connection with this Security Instrument shall ~aot be deemed to have been given to Lender until actually received by Lender. If any OtlCe reqmred by;tins Security Instrument ~s also reqmred under Apphcable Law, the Applicable Law requirement will'satisfy the corresponding requirement under this Security Instrument. HILLYARD, R. AF 1536214 0 Initials:_~~ II~)~-6A(WY) {ooo~}.o~ Page ~o of ~ Form 3051 1/01 16. Governing Law; Severability; 1~ governed by federal law and the law of the obligations contained in this Security Instr Applicable Law. Applicable Law might expli might be silent, but such silence shall not be the event that any provision or clause of thi Law, such conflict shall not affect other prm given effect without the conflicting provision. As used in this Security Instrument: ( corresponding neuter words or words of the include the plural and vice versa; and (c) the take any action. 17, Borrower's Copy. Borrower shall b{ 18. Transfer of the Property or a Be~ "Interest in the Property" means any legal or to, those beneficial interests transferred in a b. escrow agreement, the intent of which is the tr If all or any part of the Property or any 1 is not a natural person and a beneficial intere., written consent, Lender may require immed 078 Ules. of Construction. This Security Instrument shall be ifirisdiction in which the Property is located. All rights and ament are subject to any requirements and limitations of iffy or implicitly allow the parties to agree by contract or it :onstrued as a prohibition against agreement by contract. In Security Instrument or the Note conflicts with Applicable sions of this Security Instrument or the Note which can be 0 words of the masculine gender shall mean and include feminine gender; (b) words in the singular shall mean and Word "may" gives sole discretion without any obligation to given one copy of the Note and of this Security Instrument. eficial Interest in Borrower. As used in this Section 18, :neficial interest in the Property, including, but not limited nd for deed, contract for deed, installment sales contract or asfer of title by Borrower at a future date to a purchaser. Lterest in the Property is sold or transferred (or if Borrower in Borrower is sold or transferred) without Lender's prior ~te payment in full of all sums secured by this Security Instrument. However, this option shall not ~e exercised by Lender if such exemise is prohibited by Applicable Law. ~, If Lender exercises this option, Lender ihall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days frorpi the date the notice is given in accordance with Section 15 ~lthm which .Borrowe. r must pay ail sums se~gred by this Security Instrument. If Borrower fails to pay mese sums prior to the expiration of this p{!'iod, Lender may invoke any remedies permitted by this Security Instrument without further notice or dbmand on Borrower. 19. Borrower's Right to Reinstate A~ier Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sal~ of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other periqd as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry >f a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lend[rdall sums which then would be due under this Security Instrument and the Note as if no acceleration agreements; (c) pays ail expenses incurred in to, reasonable attorneys' fees, property ins purpose of protecting Lender's interest in the takes such action as Lender may reasonably rights under this Security Instrmnent, and Bor occurred; (b) cures any default of any other covenants or a.'forcing this Security Instrument, including, but not limited ~etion and valuation fees, and other fees incurred for the Property and rights under this Security Instrument; and (d) quire to assure that Lender's interest in the Property and >wer's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender any require that Borrower pay such reinstatement sums and expenses in one or more of the following foCas, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check ~Y cashier's check, provided any such check is drawn upon an institution whose deposits are insured by alfederal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borro.~J.~r, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleratign had occurred. However, this right to reinstate shail not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servi the Note (together with this Security Instrume Borrower. A sale might result in a change i~ Periodic Payments due under the Note and tl servicing obligations under the Note, this Sect one or more changes of the Loan Servicer unn Servicer, Borrower will be given written notic~ new Loan Servicer, the address to which pay HILLYARD, R. AF (~-6A(WY) {ooot~}.o~ eer; Notice of Grievance. The Note or a partial interest in fit) can be sold one or more times without prior notice to t; the entity (known as the "Loan Servicer") that collects .is Security Instrument and performs other mortgage loan ity Instrument, and Applicable Law. There also might be tted to a sale of the Note. If there is a change of the Loan ~f the change which will state the name and address of the ~ents should be made and any other information RESPA !1536214 0 Page 11 of 15 Form 3051 1101 requires in connection with a notice of traasfi serviced by a Loan Servicer other than the pt to Borrower will remain with the Loan Servic assumed by the Note purchaser unless otherwi Neither Borrower nor Lender may co~ individual litigant or the member of a class Security Instrument or that alleges that the ott reason of, this Security Instrument, until suct ;~of servicing. If the Note is sold and thereafter the Loan is rChaSer of the Note, the mortgage loan servicing obligations e~ or' be transferred to a successor Loan Servicer and are not ;6 provided by the Note purchaser. ~nce, join, :or be joined to any judicial action (as either an !hat arises from the other party's actions pursuant to this  party has .breached any provision of, or any duty owed by orrower or Lender has notified the other party (with such notice given in compliance with the require~r e~ts of Section 15) of such alleged 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 whic~imust elapse before certain action can be taken, that time period will be deemed to be reasonable for ~i~rposes 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 dee~ed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. · 21. Hazardous Substances. As used tn~: this Section 21: (a) 'Hazardous Substances" are those sut~stm.~ces defined as toxic or hazardous subs~ahces, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, othf~ flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials: (b) "Environmental Law" means federal laws ~ laws of ~e jurisdiction where th~,Property is located that relate to health, safety or environmental prot{q~tion; (c) Environmental Cleanup includes any response action, remedial action, or removal action, as ld~fined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cau~ei contribute to, or otherwise trigger an Environmental Cleanup. ~ Borrower shall not cause or permit the p Substances, or threaten to release any Hazardo~ nor allow anyone else to do, anything affectin Law, (b) which creates an Environmental Cone Hazardous Substance, creates a condition that e~ence, use, disposal, storage, or release of any Hazardous Substances, on or in the Property. Borrower shall not do, ~he Property (a) that is in violation of any Environmental iiion, or (c) which, due to the presence, use, or release of a a~lversely affects the value of the Property. The preceding two sentences shall not apply to the presenc · :use, or storage on the Property of small quantities of Hazardous Substances that are generally reco~m"zed to be. appropriate to normal residential uses and to maintenance of the Property (including, but notllimited to, hazardous substances in consumer products). Borrower shall promptly give Lender wri{~n notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Lax~!of which Borrower has actual knowledge, (b) any Environmental Condition, including but not li:x i~ed to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) :~y condition caused by the presence, use or release of a Hazardous Substance which adversely affects tit0 value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, c r!any private party, that any removal or other remediation of any Hazardous Substance affecting the Prope :t~, is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Envirom ~tal Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. 079 HILLYARD, R. AF ~'1'536214 . Iniflala: 6A{WY) 1000§).01 i Pagb 12 of 15 - - Form 3051 1/01 O8O NON-UNIFORM COVENANTS. Borrower an? Lender further covenant and agree as follows: 2 ' 2. Acceleration; Remedies. Lender shall gi.v~ notice to Borrower urior to accelera ' · Borrower's breach of any covenant or agreement in this. Security ~nstrument (buttln°~t f;lrl;7~og acceleration under Section 18 unless Applicable L~w 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 must be cured; and (d) that failure to cure the de. fault on. or before the date specified in the notic~ may result in acceleration of the sums secured by ~ih~;tS~oc;;litnYsta~t;t:~e;:tccaeTedraSt~nOfanthe Propert.yt The notice shall further inform Borrower of the ' ' d the rightt9 bring a court action to assert the non-existence of a default or any other defense of Borrower to acc~'leration and sal .... .j ~:. aa uae Ul~lalllg IS no[ Cllren on or before the date specified m the notme, Lender at ~¢ option may require immediate payment in full of 5~su~_n~ s_e_cure.d, by this S..ecurity Instr.u~. ent without further demand and may invoke the power of amc aau any omer remenies permitted t}y. AppliCable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies Provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title eviden¢e. If Lender invokes the power of sale, Lender and to the person in possession of the ProPerty, Lender shall give notice of the sale to Borrower il publish the notice of sale, and the Property shah Law. Lender or its designee may purchase the Pro applied in the following order: (a) to all expe reasonable attorneys' fees; (b) to all sums secured the person or persons legally entitled to it. ~hall give notice of intent to foreclose to Borrower if different, in accordance with Applicable Law. the manner provided in Section 15. Lender shall be sold in the manner prescribed by Applicable ~erty at any sale. The proceeds of the sale shall be scs of the sale, including, but not limited to, ~y this Security Instrument; and (c) any excess to S .23. _Release. Upon payment of all sums secured ~y this Security Instrument, Lender shall release this county lnstrmnent. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the feelis 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 ~1 rights under and by virtue of the homestead exemption laws of Wyoming. HILLYARD, R. AF 1536,214 0 6A(WY} {0005}.01 Page 13 ~f 15 Initials: Form 3051 1101 081 BY SIGNING BELOW, Borrower accel,ts Security Instrument and in any Rider executedl by Witnesses: and agrees to the terms and covenants contained in this Borrower and recorded with it. (Seal) -Borrower Ci y ' l~i[?cf-- -~r-- _Bo.ewer -Borrower (Seal) -Borrower -Borrov~er (Seal) -Borrower (Se~ -Borro (Seal) -Borrower HILLYARD. R. AF (~6A(WY} (ooos}.o~ 1536214 Page14of 15 Form 3051 0 1101 082 STATE OF WYOMING, The foregoing instrument was acknowledged before me this byRodd Hillyard and Cindy Hillyard County ss: My Commission Expires3. \~-~2/20~ 7Ubli' ~~~e HILLYARD, R. AF (~-SAIWY) 1536214 Pa~e 15 of 15 InitJals~7~ Form 3051 0 1/01