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HomeMy WebLinkAbout892762Return To: WELLS FARGO HOME MORTGAGE, INC.i! FINAL DOCUMENTS X4701-022 ~ 3601 MINNE.~;OTA DRIVE BLOOMINGTON, MN 55435-5284 Prepared By: TINA BROWN WELLS FARGO HOME MORTGAGE, INC. 3301 RIDER TRAIL SOUTH EARTH CITY, MO 63045-1342 892762 RECEIVED LINCOLN COUNTY CLERK [Space Abo~e This Line For Recording Data] MORTGAGE 0130926322 DEFINITIONS Words used in multiple sections of this;idocument are defined below and other words are defined in Sections 3, '11, 13, 18, 20 and ~1. Certain rules regarding the usage of words used in this document are also provided in section 16. (A) "Security Instrument" means this doc;,ument, which is dated AUGUST 8, 2003 together with all Riders to this document: (Bi "Borrower" is JOSHUA J. HENDERSON AND ERIN R. H,~NDERSON Borrower is the mortgagor under this SeF, urity Instrument. (C) "Lender" is WELLS FARGO HOME M~DRTGAGE, INC, Lender is a Corporation organized and existing under the laws cfi! THE STATE OF CALIFORNIA WYOMING - Single Family . Fannie Mae/Freddie M~c UNIFORM INSTRUMENT Page 1 of 18 Initials: FORM 3051' 1101 SWY0~ Rev 08/13/01 O84 Lender's address is P. O. BOX 5137, DES MOINES, IA 50306-5137 Lender is the mortgagee under this Security Instrument. (D) "Note "means the promissory note -=~igned by Borrower and dated AUGUST 8, 2003 The Note states that Borrower owes Lender ONE HUNDRED FOUR THOUSAND SEVENTY-NINE AND NO/100 Dollars (U.S. $ . .1.Q.4,.0..7'..9.,.0..0. .......... ) plus interesl. Borrower has promised to pay this debt in regular Periodic Payments 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, plus interest, any prepayment charges and late charges due under the Note, andlall sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this S~curity Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicabJe]: ~ Adjustable Rate Rider J---] Condominium Rider r-]Second Home Rider [] Balloon Rider r--"] Planned Unit Development Rider j-~ 1-4 Family Rider [---] VA Rider r-"'] Biweekly' Payment Rider r-~ Other(s) [specify] (H) "Applicable Law" means all control~ling applicable federal, state and local statutes, regulations, ordinances 'and administrat v~ rules and orders (that have the effect of law) as well as all applicable final, non-appealal-le judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that aire imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as Io order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transrers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items fi'at are described in, Section 3. (L) "Miscellaneous Proceeds" means an0/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 t~, 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. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, pi'us (ii) any amounts under Section 3 or this Security Instrument. (O) "RESPA" means the Real Estate Settlernent 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 SWY02 Rev 12/18/00 Page 2 of t8 Initials: FORM 3051 1101 governs the same subject matter. As us~ed in th s Security Instru,,,ment "RESPA" refers to all requirements and restrictions that areimposed in regard to a feder loan" even if the Loan does not .ualir,. ~Js a ".-"---,, ............ al!y r_e, lated mortgage ....... ~ ., ~ ,~,,=,a,,y ~,~u mortgage loan under RESPA. [~'7 ~uccessor in Interest of Borrower" ~means any party that has taken title to the Property, whether or not that party has assumec~ Borrower's Obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPER~Y This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the NotE~; and (ii) the performance of Borrower's convenants and agreements under this Security InStrument and the Note. For this purpose, Borrower does hereby mortgage, grant and conv~y to Lender and Lender's successors and assigns, with power of sale, the following described property located, in the County of LINCOLN :. [Type of Recording Jurisdiction] (Name ot~ Recording Jurisdiction] LEGAL DESCRIPTION IS ATTACHED HEI~ETO AS SCHEDULE "A" AND MADE A PART HEREOF. Parcel ID Number: 724 MADISON STREET AFTON ("Property Address"): which currently has the address of (Street] (City], Wyoming 83110 [Zip Code] TOGETHER WITH all the improvement., now or hereafter erected on the property, and all easements, apPurtenances, and fixture., now or hereafter a part of the property. All replacements and additions shall alSo b covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrow~;r is lawfully seised.of the estate hereby conveyed and has the right to mortgage, grant al d convey the Property and that the Property is unencumbered, except for encumbrance; of record. Borrower warrants and will defend generally the title to the Property ag,~inst all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combin% uniform covenants for national use and non- uniform covenants with limited variation~ by jurisdiction to constitute a uniform security instrument covering real property. SWY03 Ray 11/06/00 Pags 3 o[ 18 Initials: FORM 3051 1101 086 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment o! 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. Howeve.r, 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 order; (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 applied 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 o!fset 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 Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any lale charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments. ir, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. SWY04 Rev 11/06/00 Page 4 of 18 Inilials: FORM 3051 1101 087 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 and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment or Mortgage Insurance premiums in accordance with the provisions of Seclion 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 Borr. ower, 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 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice §jven in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time sPecified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be SW¥05 Rev 11/06/00 Page 5 of 18 Initials: FORM 3051 1101 required to pay Borrower any interest qr earnings on the Funds. Borrower and Lender can agree in writing, however, that interesl~ shall be paid on the Funds. Lender shall give to Borrower, without Charge, an annual acc~ounling of the Funds as required by RESPA. If there is a surplus of Funds held i!n escrow, as defined under RESPA, Lender shall account to Borrower for the excess run,Is in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined und;er RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay t(~ Lender the amount necessary to make up the shortage in accordance with RESPA, bul in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as as required by RESPA, and Borrower sh~ the deficiency in accordance with RESPA Upon payment in full. of all sums se promplly refund to Borrower any Funds h 4. Charges; Liens. Borrower shall p. impositions attributable to the Propel Instrument, leasehold payments or groL Association Dues, Fees, and Assessmenl Items, Borrower shall pay them in the m~ lefined under RESPA, Lender shall notify Borrower ill pay to Lender the amount necessary to make up , but in no more than 12 monthly payments. cured by this Security Instrument, Lender shall eld by Lender. ~y all taxes, assessments, charges, fines, and ty which can attain priority over this Security nd rents on the Property, if any, and Community s, if any. To the extent that these items are Escrow nner provided in Section 3. Borrower shall promptly discharge my lien which has priority over this Security Instrument unless Borrower: (a) agrees" n writing lo the payment of lhe obligation secured by the lien in a manner acceptable to ;rider, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the hold~'r of the lien an agreement satisfactory to Lender subordinating the lien to this security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying t~he 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 and/or reporting service used by Lender ir 5. Property Insurance, Borrower sha, erected on the Property insured agains "extended coverage," and any other haz~ floods, for which Lender requires insur~ amounts (including deductible levels) and requires pursuant to the preceding senter a one-time charge for a real estate tax verification connection with this Loan. keep the improvements now existing or hereafter loss by fire, hazards included within the term rds including, but not limited to, earthquakes and ~nce. This insurance shall be maintained in the for the periods that Lender requires. What Lender ~ces can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, ~hich right shall not be exercised unreasonably. Lender may require Borrower to pay, in iconnection with this Loan, either: (a) a one-time i, charge for flood zone determination, cedj~cation 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 SWY08 Rev 10/25/00 Page 6 of 18 Initials:, FORM 3051 1101 or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management AgenCy in connection wilh the review of any t]ood zone determination resulting h-om an ob.iection by Borrower. If Borrower fails to maintain any of' the coverages described above, Lender may obtain insurance coverage, at Lender's opticn 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 migl-t not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost o[ 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, aot otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by 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 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 insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance 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 insuranoe 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 insurance Proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If B'orrower does not respond within 30 days to a notice from Lender that the insurance carder has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In SWY07 Ray 10/25/00 Page 7 of 18 Initials:.. FORM 3051 1101 090 either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower'.~ rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6, Occupancy, Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection o! the Property; Inspections. Borrower shall not destroy, damage or impair the Pro3erty, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, BOrrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the. Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable caLse. 8. Borrower's Loan Application, Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, 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 the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrumen: or to enforce laws or regulations), or SWY08 Rev 10/25/00 Page B of 18 Initials: FORM 3051 1101 (c) Borrower has abandoned the Property, then Lender may do and pay [or whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the valu'e of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not 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 attorneys' fees to protect its interest in the Property and/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, replace.or board up doors and windows, drain water from pipes, eliminate building or olher code violations or dangerous conditions, and have utilities turned on or off. AlthoLgh Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender u,3der this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date o¢ disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance, If Lender required Mortgage Inlsurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Morlgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower Was required to make seoarately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance p:reviously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower sh~all continue to pay to Lender the amount of the separately designated pa:/ments that were dlue when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insuran~ce. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mo~gage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insuran:e in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insuranc~e ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to paY interest at the rate provided in the Note. SWY09 Rev 11/13/00 Page ~ of 18 Initials: FORM 3051 1101 092 Mortgage Insurance reimburses Ler~der (or any entity that purchases the Note) for certain losses it may incur if Borrower d~oes not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their to~ time, and may enter into agreements w reduce losses. These agreements are o mortgage insurer and the other party (c may require the mortgage insurer to r~ mortgage insurer may have available ( Insurance premiums). As a result of these agreements, Le~ any reinsurer, any other entity, or any al" or indirectly) amounts that derive fro~ Borrower's payments for Mortgage InsL mortgage insurer's risk, or reducing los., Lender takes a share of the insurer's ris the insurer, the arrangement is often terrr (a) Any such agreements will not afl for Mortgage Insurance, or any other ter the amount Borrower will owe for Mortg~ any refund, (b) Any such agreements will not al to the Mortgage Insurance under the Ho These rights may include the right to cancellation of the Mortgage Insur'am automatically, and/or to receive a rerun unearned at the time of such cancellation 11, Assignment of Miscellaneous Pre hereby assigned to and shall be paid to L~ If the Property is damaged, such IVlisc risk on all such insurance in force from lime to th other parties that share or modify their risk, or terms and conditions that are satisfactory to the parties) to these agreements. These agreements ~ke payments using any source of funds that the /~hich may include funds obtained from Mortgage ~der, any purchaser of the Note, another insurer, iliate of any of the foregoing, may receive (directly n (or might be characterized as) a portion of rance, in exchange for sharing or modifying the es. If such agreement provides that an afl~liate of ~ in,exchange for a share of the premiums paid to ~ed 'captive reinsurance." Further: eot the amounts that Borrower has agreed to pay ns of the Loan, Such agreements will not increase ge Insurance, and they will not entitle Borrower to rect the rights Borrower has - if any - with respect leowners Protection Act of 1998 or any other law. :ceive certain disclosures, to request and obtain to have the Mortgage Insurance terminated of any Mortgage Insurance premiums that were or termination. ceeds; Forfeiture. All Miscellaneous Proceeds are ~nder. ellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoratio or repair is economically feasible and Lender's security is not lessened. During such rep~air 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 b that such inspection shall be undertake restoration in a single disbursement or completed. Unless an agreement is made be paid on such Miscellaneous Proceeds, interest or earnings on such Miscellane( economically feasible or Lender's security shall be applied to the sums secured by with the excess, ir any, paid to Borrower. the order provided for in Section 2. .~en completed to Lender's satisfaction, provided promptly. Lender may pay for the repairs and a series or progress payments as the work is in writing or Applicable Law requires interest to Lender shall not be required to pay Borrower any ~us Proceeds. If the restoration or repair is not would be lessened, the Miscellaneous Proceeds his Security Instrument, whether or not then due, Such Miscellaneous Proceeds shall be applied in SWY10 Rev 10/25/00 Page 10 oi' 18i Initials; FORM 3051 1/01 .... 093 In the event of a total taking, destruction, Or loss in value of the Property, the Miscellaneous Proceeds shall be applied to tl~e sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destructiod, or loss in value of the Property in which the fair market value of the Property immedialely jbefore the partial taking, destruction, or loss in value is equal to or greater than the ardount of the sums secured by this Security Instrument immediately before the partial t~king, 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 1he partial taking, destruction, or loss in value divided b.'y (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, destruclionl 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 s~cUred immediately before the partial taking, destruction, or loss in ValUe, unless Borrowerland Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, Or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) of¢ers to make an award to settle a claim for damages, Borrower fails to respond io Lender within 30 days after the date the notice is given, Lender is authorized to collect And apply the Miscellaneous Proceeds 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 wl~om Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action ori proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result ih 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 acceleiation has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of thei Property or other material impairment of Lender's interest in the Property or rights und~r 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 b~ paid to Lender. All Miscellaneous Proceeds that are not appllied to restoration or repair of the Property shall be applied in the order provided for ia Section 2. 12. Borrower Not Released; Forbearance By ~.ender Not a Waiver. Extension of the time for payment or modification of amortization of 1hie sums secured by this Security Instrument granted by Lender to Borrower or any Successor- in Interest of Borrower shall not operate to release the liability of Borrower or any SuccessOrs in Interest of Borrower. Lender shall not be required to commence proceedings against ~ny Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by SWY11 Rev 11/06/00 Page 11 of 18 Inifials:~ FORM 305t 1101 094 this Security Instrument by reason of any de'hand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender' ]acceptance of payments from third persons, entities or Successors in Interest of Borrower t)r m amounts less than the amount then due, shall not be a waiver of or preclude the exerci., e of any right or remedy. 13. Joint and Several Liability; Co~signers; covenants and agrees that Borrower s obliga However, any Borrower who co-signs this Sec[ (a "co-signer"): (a) 's co-sign'ng thru Security Ir the co-signer's interest in the Property under t, personally obligated to pay the sums secure( that Lender and any other Borrower can ag~ accommodations with regard to the terms of th co-signer's consent. Subject to the provision of Section 18, any Successors and Assigns Bound. Borrower ions and liability shall be joint and several. rity Instrument but does not execute the Note ~strument only to mortgage, grant and convey ~e terms of this Security Instrument; (b) is not by this Security Instrument; and (c) agrees ee to extend, modify, forbear or make any is Security Instrument or the Note without the Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's ,right..' and benefits under this Security Instrument. Borrower shall not be released from Borrowerls obligations and liability under this Security Instrument unless Lender agrees to such relea~se in writing. The covenants and agreements of this Security Instrument shall bind (excePtias provided in Section 20) and benefit the successors and assigns of Lender. 14, Loan Charges. Lender may charge Bor?ower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. I~ 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 qf such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets m~aximum loan charges, and that law is finally interpreted so that the interest or other IoaD charges collected or to be collected in connection with the Loan exceed the permittedilimits, then: (a) any such loan charge shall be reduced by the amount necessary to reduc~ the charge to the permitted limit; and (b) any sums already collected from Borrower whicl~ exceeded permitted limits will be refunded to B.orrower. Lender may choose to make this ~fund by reducing the principal owed under the Note or by making a direct Payment to B,brrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is Provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borro~ver will constitute a waiver of any right of action Borrower might have arising out of such c~vercharge. 15. Notices. All notices given by Borrower ~r Lender in connection with this Security Instrument must be in writing. Any notice to ~BOrrower in connection with this Security Instrument shall be deemed to have been given ~to Borrower when mailed by first class mail or when actually delivered to Borrower's noticei address if sent by other means. Notice to any one Borrower shall constitute notice to all B.~rrowers unless Applicable Law expressly SWY12 Rev 11/06/00 Page 12 of 18 Initials: FORM 3051 1101 095 requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change or 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 not be deemed to have been given to Lender until actually received by Lender. Ir any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a} words of the masculine gender shall mean and include corresponding neuter words Or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17'. Borrower's Copy, Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means an~/ legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any laterest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent; Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. SWY13 Rev 11/06/00 Page 13 of 18 Initials:_ FORM 3051 1101 096 19. Borrower's Right to ReinState Afte conditions, Borrower shah have the rig discontinued at any time prior to the e~ pursuant to any power of sale contained Applicable Law might Specify for the tern of a judgment enforcing this Security In pays Lender all sums which then would as if no acceleration had occurred; (I ;'Acceleration. If Borrower meets certain ~t to have enforcement of this Security Instrument ~rliest of: (a) five days before sale of the Property in this Security Instrument; (b) such other period as dnation of Borrower's right to reinstate; or (c) entry strument. Those conditions are that Borrower: (a) )e due under this Security Instrument and the Note 0 cures any default of any other covenants or agreements; (c) pays all expenses incun'ed in enforcing this Security Instrument, including, but not limited to, reasonable attorneys'! fees, propert_y, inspection and valuation fees, and other fees incurred for the purpose of pr~lecting Lender s interest in the Property and rights under this Security Instrument; and (d} t~kes such action as Lender ma reasonabl · taOn~SSure that Lender's interest in the ~roperly and rights under this Ysecunty In~rruemq~lnr~, Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may requir, expenses in one or more of the followin.c order; (c) certified check, bank check, h such check is drawn upon an institution instrumentality or entity; or (d) Electronic this Security Instrument and obligations ~ acceleration had occurred. However, thi~ acceleration under Section 18. 20. Sale of Note; Change of Loan Servi interest in the Note (together with this S without prior notice to Borrower. A sale "Loan Servicer") that collects Periodic I Instrument and performs other mortgage , that Borrower pay such reinstatement sums and forms, as selected by Lender: (a) cash; (b) money ~asurer's check or cashier's check, provided any !whose deposits are insured by a federal agency, Funds Transfer. Upon reinstatement by Borrower, ;ecured hereby shall remain fully effective as if no right to reinstate shall not apply in the case of ;er; Notice of Grievance. The Note or a partial ,curity Instrument) can be sold one or more times light result in a change in the entity (known as the ~ayments due under the Note and this Security , loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of theI Note. If there s a change of the Loan Servicer, Borrower will be given written notice of tl~e change which will state the name and address of the new Loan Servicer, the address t~ which payments should be made and any other information RESPA requires in connectio.~ with a notice of trans[er or servicing. If the Note is sold and thereafter the Loan is Serviceld by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing ol~ligations to Borrower will remain with the Loan Servicer or be transferred to a successor~l. Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by thee Note purchaser. Neither Borrower nor Lender may com~Tlence, join, or be joined to any jud cial action (as either an individual litigant or the mer~ber of a class} that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty oiWed by reason of, this Security Instrument, until such Borrower or Lender has notified the tother party (with such notice given in compliance with the requirements of Section 15) of s~=ch alleged breach and afforded the other party hereto a reasonable period after the gi~,ing of such notice to take corrective action. If Applicable Law provides a time period ~hich must elapse before certain action can be taken, that time period will be deemed to I~e reasonable for purposes of this paragraph. SWY14 Rev 12/27/00 Page 14 of 18j Initials:_ FORM 3051 1101 097 The notice of acceleration and opportuni and the notice of acceleration given to E satisfy the notice and opportunity to take 21, Hazardous Substances, As use( are those substances defined as toxic Environmental Law and the following .. toxic petroleum products, toxic pestic containing asbestos or formaldehyde, a means federal laws and laws or the juri-. health, safety or environmental prote Iy to cure given to BorroWer pursuant to Section 22 °rrower pursuant to Section 18 shall be deemed to ccrrective action provisions of this Seclion 20. in this Section 21: (a) "Hazardous Substances" )r hazardous substances, pollutants, or wastes by ~bstances: gasoline, kerosene, other flammable or des and herbicides, volatile solvents, materials nd radioactive materials; (b) "Environmental Law" diction where the Property is located that relate to ',tion; (c) "Environmental Cleanup" includes any response action, remedial action, or ren oval action, as defined in Environmental Law; and (d) an Environmental Conddlon" rhea,is a condition that can cause, contribute to, or otherwise trigger an Environment Cleanu ). Borrower shall not cause or permit he presence, use, disposal, storage, or release of any Hazardous Substances, or threaten :o ~elease any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of 'an¢ Environmental Law, (b) which creates an Environmental Condition, or (c) which, dL'e to the presence, use, or release of a Hazardous Substance, creates a condition that a Jversely affects the value of the Property. The preceding two sentences shall not apply lo the presence, use, or storage on the Property of small quantities of Hazardous Substance., fi-at 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 ~vritten notice ol~ (a) any investigation, claim, ini~?nd~ I;~VeSU~ro°;fdthyerana~ti°a~ybYHaa;Yarg,d~oVu;rn~u;nsttaalnc°er reorgUlEantv°i%namg;nn;aYI °;fwr'Vaotfe wP~irtc~ wer has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, releas~ .or threat of release of any Hazardous Substance, and (c) any condition caused by the pre~_ence, use' or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, oi any private parly, that any removal or other remediation of any Hazardous Substance ~affecting the Properly is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligationlon Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borroweri and Lender further covenant and agree as follows: 22. Acceleration; Remedies, Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any cover an~ or agreement in this Security Instrument (but not prior to acceleration under Section 1l notice shall specify: (a) the detault; (b) tt not less than 30 days from the date the unless Applicable Law provides otherwise). The action required to cure the default; (c) a date, ,OEce is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the s;Ems secured by this Security Instrument and sale of the Property.' The notice shall furtherI inform Borrower of the right to reinstate after acceleration and the right to bring a Court action to assert the non-existence ota 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, Lenlder at its option may require immediate payment SWY15 Rev 10/25/00 Page 15 of 1~ Inilials:_ FORM 3051 1/01 In full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs o! title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person irt possession of the Property, il different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of salel and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release, Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if'the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers, Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. SWY16 Rev 10/25/00 Page 16 of 18 Initials: FORM 3051 1/01 099 BY SIGNING BELOW, Borrower accepts a~d agrees to the terms and covenants contained in this Security Instrument and in anyIRider !executed by Borrower and recorded with it. Witnesses: SHUA J. HENDERSON / ERIN R. HENDERSON .~-~'"!) Borrower (Seal) Borrower SWY17 Rev 12/27/00 Page 17 pi' 18 Initials: FORM 3051 1101 100 STATE OF WYOMING, LINCOLN The foregoing instrument was ackr~owledged before me this JOSHUA J, HENDERSON AND ERIN R, HI~NDERSON County ss: AUGUST 8, 2003 by My Commission Expires: Nota~ Public ' SWY18 Rev 10/25/00 Page 18 o[ 181 Initials: FORM 3051 1/01 _31 LEGAL DESCRIPTION Lot 18 of Block 36 of the Glen Kennington, et al, Addition to the Afton Townsite, Lincoln County, Wyoming as described on the official plat thereof.