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HomeMy WebLinkAbout892839Remm To: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 892839 RECEIVED LINCOLN COUNTY CLERK Prepared By: WELLS FARGO HOME MORTGAGE, INC. ,~.7~K~PR PAGE 1919 DOUGLAS,, OMAHA, NE 681010000 [SlmceAboveTl~sLhteForRecordh~gData] 414 MORTGAGE 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 osage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is datedAUGUST 2 2, 2 0 03 together with all Riders to this document. (B) "Borrower" is JOHN DAULTON AND KATHLEEN A DAULTON, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "Leuder" is WELLS FARGO HOME MORTGAGE, INC. Lender is a CORPORATION orgmfized and existing under the laws of THE STATE OF CALIFORNIA 0032661811 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~I®-6(WY) Iooosl page 1 of 15 Initials: VMP MORTOAGE FORMS - (800)521-7291 Form 3051 1/01 415 Lender's address is P.O. BOX 10304, DES MOINES, IA 503060304 Lender is tile mortgagee under this Security hlstruulent. (D) "Note', nreans the promissory note signed by Borrower and datedAUGUST 22, 2 003 The Note states that Borrower owes Lender ONE HUNDRED FORTY SEVEN THOUSAND NINETEEN AND 00/100 Dollars (U.S. $ * * * * 147,019.00 ) plus interest. Borrower has proufised to pay riffs debt in regular Periodic Payments and to pay the debt in full not later than SEPTEMBER 01, 2O33 (E) "Property" meatus fire property that is described below under the heading "Transfer of Rights in file Property." OD "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. (G) "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 ~-~ Condonfinium Rider ~ Second Home Rider [~ Balloon Rider ~'~ Plmmed Unit Development Rider [-~ 1-4 Family Rider [--] VA Rider ~] Biweekly Pay]nent Rider ~ Other(s) [specify] 0t) "Applicable Law" means all controlling applicable federal, state and local statutes, regulatio]~s, ordi~mnces and adnfinistrative rules and orders (that have file effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Commnnity Association Dues, Fees, and Assessnmnts" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condonmfiUln association, homeowners association m' sinfilar organization. (J) "Electronic Funds Transfer" means auy transfer of funds, other than a tramsaction originated by check, draft; or sinfilar paper instrument, which is initiated fi]rough 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, bnt is not limited to, point-of-sale transfers, autonmted teller machine transactions, .transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (IQ "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settle]nent, 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) condenmation or other taking of all or any part of file Property; (iii) conveyance in lieu of condenmation; 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. (IX]) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any anlounts under Section 3 of this Security Instrument. (O) "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 saJne subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are in]posed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. ~niti~ds~~ (~-6(WY) (ooos~ P~ge 2 of ~s Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party that has taken title to file Property, wheflmr or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY Tiffs Security Instrument secures to Lender: (i) fl~e repayment of the Loan, and all renewals, extermions and modifications of the Note; and (ii) fl~e performance of Borrower's cove~mnts and agreements under fids Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdictioul [Name of Recording Jurisdiction] LOT 50 OF STAR VALLEY RANCH PLAT 10, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, INC., P.O. BOX 10304, DES MOINES, IA 503060304 Parcel ID Nmnber: 206 VISTA DRIVE THAYNE ("Property Address"): wlfich currently bas the address of [Streetl ]City] , Wyoming 8 312 7 [Zip Codel TOGETHER WITH all the ilnprovements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security hmtmment. All of the Ibregoing is referred to in this Security h~strument as the "Property." BORROWER COVENANTS flint Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and denmnds, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines mfiform covetmnts for natio~ml use and non-mfiform covelmnts with limited variations by jurisdiction to constitute a mfiform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Princil)al, Interest, Escrow Items, Prepayment Clmrges, 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 Instrmnent shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Initial~:~ ~ (~)~-6(WY) 100051 vag~ 3 o~ ~ Form 3051 1/01 [ '' i.-... L ;!;P.v., . '- Security Instrunrent 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 auy payment or partial payment if the pay~nent or partial payments are irksufficient to bring the Loan current. Lender nmy accept any payment or partial payment i~ksufficient 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 nmy hold such unapplied funds until Borrower makes pay~nent to bring the Loan current. If Borrower does not do so witlfin a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If ]mt applied earlier, such funds will be applied to the outstanding priucipal balance under the Note immediately prior to foreclosure. No offset or clai~n which Borrower might have now or in the future against Lender shall relieve Borrower from ntaking 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 tlfis 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 a~nounts shall be applied first to late charges, second to any offmr amounts due under this Security Instrument, and fl~en to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge.. If more than one Periodic Payment is outstanding, Lender may apply any payment received fi:om Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to 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. 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 Itmns. 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 fids 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 of Mortgage Insurance premiunxq 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 Conununity 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 fl~e Funds for ~crow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Itenks. Lender may waive Borrower's obligation to pay to Lender Funds lbr 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 {~)~-6(Wy) ~ or 15 Form 3051 1/01 (0005) P,3ge due for any Escrow Items tbr 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 nmy 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 agrdement" 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 amouut and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in Such amounts, that are then required under this Section 3. Lender nmy, at any time, collect and hold Funds in an amount (a) sufficient to pernfit Lender to apply the Funds at the time specified Imder RESPA, and (b) not to exceed the maxinmm amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of cra'rent data and reaso~mble 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, instrmnentality, 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, aimually analyzing the escrow account, or verifying the Escrow Itenm, unless Lender pays Borrower interest on the Funds and Applicable Law pernfits Lender to make such a charge. Unless an agreement is nmde in writiug or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA; If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. BorroWer shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property wlfich can attain priority over fids Security Instrument, leasehold payments or ground rents on the Property, if any, and Conununity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a maimer acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the en/brcement of the lien while those proceedings are pending, but mdy until such ~roceedings are concluded; or (c) secures from the holder of the lien an agreemeut satisfactory to Lender subordinating the lien to this Security Instrmnent. If Lender determines that any part of the Property is subject to a lien wlfich can attain priority over fids Security Instruinent, Lender nmy give Borrower a notice identifying the Initials: ~)~6(WY) (ooo51 Paoe ~ of ~ Form 3051 1/01 419 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 lbr a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the 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 shall 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 cmmection 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 dine remappings or siufilar changes occur wlfich reasonably INght affect such determination or certification. Borrower shall also be respork~ible for the payment of any fees imposed by rite Federal Emergency Management Agency in co~mection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to main.rain any of the coverages described above, Lender nmy obtain itx~urance 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 nfight provide greater or lesser coverage than was previously in effect. Borrower acknowledges ,that the cost of the insurance coverage so obtained nfight sigNficantly 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 rite 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 s!lall 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 destn~ction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additiolml loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender nmy make proof of loss if not made promptly by Borrower. Unless Lender attd 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 i~xspect such Property to ensure the work has.been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may d[sbm:se 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 eanfings on such proceeds. Fees /hr public adjusters, or other third parties, retained by Borrower shall not be paid out of the i~t~urance 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, tile insurance proceeds shall be applied to the sums secured by tiffs Security Instrument, whether or not then due, with Initia~.~:~ (~-6(WY) (O00St P~e 6 o~' 15 Form 3051 1/01 the excess, if any, paid to Borrower. Such i~xsurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons fire ProPerty, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any i~surance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Inst~mnent, and (b) any other of Borrower's rights (other than the right to any retired of unearned prenfiums paid by Borrower) under all insurance policies covering the Property, insot:ar as such rights are applicable to the coverage of the Property. Lender may use fl~e 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/'or at least one year after the date of occupancy, mfless Lender otherwise agrees in writing, which consent shall not be unreasonably wiflfl~eld, or unless extenuating circmnstances exist wtfich are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or cmmnit 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 deternfined 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 i~.gurance or condenmation proceeds are paid in cmmection with damage to, o,' 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 condenmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation tbr the completion of such repair or restoration. Lender or its agent may make reaso~mble 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 cause. 8. Borrower's Loan Application. Borrower shall be in default if, during' the Loan application process, Borrower or any persmxs or entities acting at the direction of Borrower or with Borrower's knowledge or co~ent gave materially false, misleading, or inaccurate intbrmation or statements to Lender (or failed to provide Lender with material information) in com~ection 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 tails to perform the covenants and agreements contained in this Secm-ity hzstrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights uuder tiffs Security Instrument (such as a procee'ding in bankruptcy, probate, tbr condenmation or tbrfeimre, /bt enforcement of a lien which may attain priority over this Security Instrument or to entbrce laws or regulations), or (c) Borrower has abandoned the Property, then Lender nmy do and pay ~br 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 value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not linfited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasmmble ~-6(WY) looo51 Page 7 o~ ~ ' Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrmnent, including its secured position in a ba[kkruptcy 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 titan pipes, elinfinate building or other code violations or dangerous conditions, and have utilities turned on or off. Alth6ugh 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 Otis Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall.bear iuterest 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, 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. I0. Mortgage Insurance. If Lender required Mortgage Insurance 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 Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to ~nake separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premimrks required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately desi'gnated payments that were due 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 hzqurance. Such loss reserve shall be non-refundable, uotwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or eanfings 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 nmking the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Bon'ower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such irksurance in force from time to time, and may enter into agreements with other parties that share Or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage, insurer may have available (which [nay include funds obtained from Mortgage Insurance prenfiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other eutity, or any affiliate of any of the foregoiug, may receive (directly or indirectly) amounts that derive fi'om (or nfight be characterized as) a portion of Borrower's payments Ibr 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 ofteu termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay roi' Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. Initiel~:~~ (~-6(WY) 10005) p~g~ ~ o~ 15 Form 30~1 1/01 . 22 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the HOmeowners Protection Act of 1998 or any other law. These rights nmy include the right to receive certain disclosures, to request and obtain cancellation of tile Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were uuearned at the time or 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 danmged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically 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 Bon'ower any interest or eanfings 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 fills Security Instrument, whefl~er 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 fl~e Property, the Miscellaneous Proceeds shall be applied to the stuns secured by fids 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 thir market value of the Property innnediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Insn-un,ent inm~ediately before file partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the stuns secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following traction: (a) file total amount of the sums secured immediately before file partial takiug, destruction, or loss in value divided by (b) the fair market value of the Property innnediately before the partial taking, destruction, or loss in value. Auy balance shall be paid to Borrower. in the event of a partial taking, destruction, or loss in value of the Property in which file fair market value of the Property imlnediately before fl~e partial taking, destruction, or loss in value is less fl~an fl~e amount of the sums secured innnediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writiug, the Miscellaneous Proceeds shall be applied to the stuns secured by this Security Instrument whether or not the sums are then due. If fl~e Property is abandoned by Borrower, or if, after notice by Lender to Borrower fl~at the Opposing Party (as defined in the next sentence) offers to xmtke 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 aud apply the Miscellaneous Proceeds either to restoration or repair of fl~e Property or to fl~e sun~g 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 cau cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be 'disnfissed with a ~x31ing that, in Lender's judgment, precludes forfeiture of the Property or other material impaim~ent of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award ox' 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. (~I~-6(WY) looos) Page 9 of 15 [.,/ ~Forrn 3051 1/01 12. Borrower Not Released; Forhearance By Lender Not a Waiver. Extension of fire time fbr payment or modification of amortization of the 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 connnence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of paynmnts fi'om tlfird persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 1.3. Joint and Several Liability; Co-signers; Successors and Assigns Bound] Borrower covmmnts and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-sig~fing 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 fire sums secured by this Security Instrument; and (c) agrees that Lender and any oilmr Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of Offs 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 Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under fidis Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security hzstrument uuless Lender agrees to such release in writing. The covenants and agreements of fids 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 commcfion with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not linfited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security hk~trument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security 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 commction with the Loan exceed the permitted Unfits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pernfitted limit; and (b) any sums already collected from Borrower which exceeded permitted linfits will be refunded to Borrower. Lender may choose to make Offs refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, fide 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 Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 1.5. Notices. Ail notices given by Borrower or Lender in commction with this Security Instrument must be in writing. Any notice to Borrower in commction with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address 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 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 tuffy report a change of address through that specified procedure. There may be only one desig~mted 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 lmreJn mfless Lender has designated another address by notice to BorrOwer. Any notice in connection with fids Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Ins trument. ~-6(WY) Iooo~} v~g~ ~o o~ ~s Form 3051 1/01 424 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 nfight 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 masculiue gender shall mean and include corresponding neuter words or words of the femi~fine gender; (b) words in the singular shall mean aud 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 Instmlnent. 18. Transfer of the Property o,' a Beneficial Interest in Borrower. As used in fids Section 18, "Interest in the Property'! means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest 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 lnay require innnediate payment in full of all sums secured by this Security Instrument. However, fids 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 fl~e notice is given in accordance with Section 15 within wlfich Borrower ~nust Pay all sums secured by this Security Instrmnent. If Borrower fails to pay these stuns prior to the expiration of this period, Lender ~nay invoke any remedies permitted by this Security instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law nfight specify tbr the termination of Borrower's right to reiustate; or (c) entry of a judgment enIbrcing this Security Instrmnent. Those conditions 'are that Borrower: (a) pays Lender all stuns which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred lrbr the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender nmy reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the stuns secured by this Security Insmunent, shall contilme unchanged. Lender nmy require that Borrower pay such reinstatement sums and expenses in one or more of the fbllowing 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, instruinentality or entity; or (d) Electrmfic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall renmin fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this. Security Irkstrumen0 can be sold one or more times without prior notice to Bm-rower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Paylnents due under the Note and this Security Instrument and pertbrms other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also nfight be one or more changes of the Loau Servicer mn'elated to a sale of the Note. If there is a change of the Loau Servicer, Borrower will be given written notice of the change which will state fl~e ~mme and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA Initi~ls~ I~6(WY) Iooosl Page ~ o* ~s ~/ - Form 3051 1/01 requires in com]ection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Leuder nmy conunence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) fl]at arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, uutil such Borrower or Lender has notified the other party (with such notice given in compliauce with the requirmnents of Section 15) of ach 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 which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuaut to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy-the notice and opportunity to take corrective action provisions of this Section 20. 21. }tazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and the following substauces: gasoline, kerosene, other flamumble or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Enviromnental Cleanup" iucludes any response action, remedial action, or removal action, as defined in Enviromnental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substauces, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow auyone else to do, anytlfiug affecting the Property (a) that is in violation of any Euvironmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance; creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage ou the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (includiug, but not linfited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by aw governmental or regulatory agency or private party involving the Property and any Hazardous' Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but uot limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) auy condition caused by the presence, use or release of a Hazardous Substance which adversely affects fl~e value of the Property. If Borrower learus, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actimk~ in accordance with Enviromnental Law. Nothing hereiu shall create auy obligation on Lender for an Enviromnental Cleanup. (~)~6(WY) (ooo5) ~'*ge ~2 o~ ~5 orm 3051 1/01 .126 NON-UNIFORM COVENANTS. Borrower and Lender further covemmt and agree as follows:. 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleratiou following Borrower's breach of any coveuant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law PrOvides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default 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 sums secured by this SecUrity Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court actiou to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified iu the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes, the power of sale, Lender shall give notice of intent to foreclose to Borrower and to tbe person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Leuder shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by tiffs Security Instrument, Lender shall release tiffs Security Instrmnent. Borrower shall pay auy recordation costs. Lender nmy charge Borrower a lee Ibr releasing riffs Security Instrument, but only if the fee is paid to a dfird party tbr services rendered and fl-re charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of ti~e homestead exemption laws of Wyonfing. (~¥6(WY) Iooo61 Page, 13 of 15 Initials:~ Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to fine terms and covenants contained in fl]is Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: JOH~ DAULTON (Seal) -Borrower LEEN A DAULTON -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (~(~6(WY) Iooos} Page 14 of 15 Form 3051 1/01 428 STATE OF WYOMING, Linc o ~n The foregoing instrument was acknoWledged before me this by JOHN DAULTON AND KATHLEEN A DAULTON 22nd day County ss: of August, 2003 My Connnission Expires: February 2, 2006 ~ K:~,~A;',IOALL. NOT;4:~' PUSU6 Notary Public (~l~-6 G(WY) (ooos) Page 15 Df 15 lnitial$~ ~orm 3051 1/01 A IJ G 1~:33 FR I,dELLS FA~!30 HOHE HTG TO 313078779602 P.0]/03 429 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 221¢D dayof AVOUaT, 2003 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date. given by the undersigned (the "Borrower") to secure Borrower's Note to W-ZLLS FARGO HOM~; MORTOAO/~, II~'C. (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 206 VISTA DRIVE, THAYlq~, WY 83127 []:h'O per~ Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described inCOV'lgNma'rs, cotrOlTIONS mTD RE STRICTIO'D~S (the "Declaration"). The Property is a part of a planned unit development known as STAR VALLEY RANCH [Name of Planned Unit Development} (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association') and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS, In addition to the covenants and agreements nude in the Security Instrument, Borrower and Lender further covenant and agree a~ follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Conzituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. 0032661811 MULTISTATE PUD RIDER Single Family Fannl~ Mae/Freddie Mac UNIFORM · ' INSTRUMENT Form 31GJ~,I/01 Page I of 3 initia is ,(~)~~_~ (~7R ~0008) VMP MORTGnGE FORMS - fB00)$21-7291 RiJG 2 ! 2D03 14:33 FR I,,]ELLS FARGO HOt'IE I'.ITG TO 913D'~,8,'-~79602 P.O2/D3 B. Property Insurance. So lOng as the Owners Association maintains, with a generally accepted insurance carrier, a "m~ter" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, haTards included within the term "extended coverage," and any other ha?-~rds, including, but not limited to, earthquakes ~nd floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 [or the Periodic Payment to Lender of the yearly premium installments for property insurance on the l'roperty; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is. provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the tema of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sun~ secured by the Security Ir~trument, whether or not then due, with the excess, if any, paid to Borrower. -C, Public Liability Invarance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maint,xins a public liability insurance policy acceptable in form. amount, and extent of coverage to Lender. D. Condemnation, The proceeds of any award or claim tbr damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any pan of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, we hereby assigned and. sha]l be paid to Lender. Such proceeds shall be applied by Lender to d~c sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other c~ualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the pro,,ision is for the express benefit of Lend~; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendenng the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedie~. If BorroWer does not pay PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F sh~ll become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. (~ Initi.Hs~~ 7R (0008l Page 2 of ~ Form 3150 1/01 AIJG 2 I 14:33 FR lxlELLS FARGO HOME MTG TO ~13078770602 03/83 431 BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this PUD Rider. oom,~ n~'ro~ . , (Seal) -Borrower X~HLEEI~ A DAULTOI~ -Borrower (Seal) (Seal) -Borrowe~- -Bo[T~wer (Sea]) (Seal) -~lorro~,er ' -BOrrO~ef (Seal) -8orrower (Seal) -Borrower (~7R Page 3 Of 3 Form 3150 1/01 P~GE.03