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HomeMy WebLinkAbout893019Return To: WELLS FARGO HOME MORTGAGE, INC. 36Ol MINNESOTA DR. SUITE .00 Prepared By: WELLS FARGO HOME MORTGAGE, INC. RECEtV£D LINCOLN !-?OUNT¥ CL£R!< 1919 DOUGLAS,, OFtAHA, 681010000 NE [Space Above rids Line For Recording Data] MORTGAGE DEFINITIONS Words used in multiple sections of tlfis document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is datedAUGUST 2 5, 2 0 03 together with all Riders to this document. (B) "Borrower" is MARK R WELSH AND JULIE D WELSH, HUSBAND AND WIFE Borrower is the mortgagor under fl]is Security Instrument. (C) "Lender" is WELLS FARGO HOME MORTGAGE, INC. Lender is a CORPORATION organized and existing under the laws of THE STATE OF CALIFORNIA 0031607393 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6(WY) IOOOS} Page 1 of 15 Initials: Form 3051 1/01 166 Lender's address is P .O. BOX 10304, DES MOINES, IA 503060304 Lender is the ~nortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated AUGUST 2 5, 2 0 0 3 The Note states that Borrower owes Lender SIXTY ONE THOUSAND AND 00/100 Dollars (U.S $ ****'61,000.00 ) plus interest. Borrower has promised to pay tiffs debt in regular Periodic Payments and to pay the debt in full not later than SEPTEMBER 01, 2018 (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, and all sums due under this Security Instrulnent, plus interest. (G) "Riders" means all Riders to tiffs Security InsU, ument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~- Condomininm Rider ~-~ Second Home Rider ~-~ Balloon Rider ~' Planned Unit Development Rider [~ 1-4 Family Rider ~- VA Rider ~ Biweekly Payment Rider ~ Other(s) [specifyl (Il) "Applicable Law" means all controlling applicable federal, state and local statutes, regulatimks, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial optnions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium assocmtion, homeowners association or similar organizhtion. (J) "Electronic Funds Transfer" means any transfer of funds, oti~er than a transaction originated by check, draft, or sinfilar paper instrumem, which is initiated through an electronic terminal, telephonic instrument, computer, or nmgnetic tape so as to order, irkstruct, or authorize a financial institution to debit or credit an account. Such teru~ includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any flfird party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, fire Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condeinnation; 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. (lq) "Periodic Payment" means the zegularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of tiffs '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 I¥om time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(wy) (ooos) Page2oi' ~s Form 3051 1/01 Initials: (P) "Successor in Interest of Borrower" means auy party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This SecUrity Instrument secures to Lender: (i)the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the pertbrnmnce of Borrower's covenants and agreements under this 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 0fRecording Jurisdiction] [Name of Recording Jurisdiction] LOT 8 OF BLOCK 2 OF THE LINCOLN HEIGHTS 3RD SUBDIVISION TO THE CITY OF KEMMERER, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. LESS AND EXCEPT THE LAND CONTAINED IN WARRANTY DEED RECORDED SEPTEMBER 29, 1992 IN BOOK 316PR ON PAGE 562 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, INC., P.O. · BOX 10304, DES MOINES, IA 503060304 ParcelID Number: 12211623107083.00 909 GARNET STREET KEMMERER ("Property Address ) which currently has the address of [Street] [City] , Wyoming 8 3101 [Zip Code] TOGETHER WITH all the improveinents now or hereafter erected on the property, a~M all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that 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 uuencumbered, excePt tbr 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 uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument coveriug real property. UNIFORM COVENANTS. Borrower and Lender covenaut and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under fl~e Note. Borrower shall also pay funds for Escrow Itmns pursuant to Section 3. Pay~nents due under the Note and this SecuritY Instrument shall be umde in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this · (~)~-6(WY) (0005} Page 3 of ~5 Form 3051 ,1/01 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 caslfier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentalityt 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 cun'ent, 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 nmkes payment to bring the Loan current. If Borrower does not do so within a reasomble 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 inunediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security 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 die 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 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 repayinent of the Periodic Payments if, and to the extent fliat, 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 nmy 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 nnder 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 tbr 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) prmniums 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 prenfiums 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 nmy require that Colmnunity 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 die Funds for Escrow Items mfless Lender waives Borrower's obligation to pay the Funds lbr 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 nmy only be in writing. Iu the event of such waiver, Borrower shall pay directly, when and where payable, the amounts (~-6(WY) (ooos} Page 4 of 15 Initials: Form 3051 1/01 .!:5:5:1: due for any Escrow Items for wlfich payInent 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 Ilkstmment, as the pltrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Itenk~ 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 ~nay 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 may, at any ti~ne, collect and hold Funds in an a~nount (a) sufficient to pernfit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the nmximum amount a lender can require under RESPA. Lender shall estinhate the amount of Funds due on the basis of current data and reasonable estixnates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are ilxsured by a federal agency, instrumentality, or entity (including Lender, if Lender is an irkstitution 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 die time specified under RESPA. Lender shall not charge Borrower/hr holding and aplSlying the Funds, ammally analyzing the escrow account, or verifying the Escrow Itenxs, unless Lender pays Borrower interest on the Funds and Applicable Law pemfits Lender to nuke such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender eau agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an am~ual 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 die shortage in accordance with RESPA, but in no ~nore dian 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 die deficiency in accordance .with RESPA, but in no inore 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 which can attain priority over this Security Instruntent, leasehold payments or ground rents on the Property, if auy, and Connnunity Association Dues, Fees, and Assessments, if any. To die extent that these items are Escrow Items, Borrower shall pay them in die nmnner provided in Section 3. Borrower shall prolnptly discharge any lien which has priority over tlfis Security Irkstrament unless Borrower: (a) agrees in writing to die payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Bol]:ower is performing such agree~nent; (b) contests the lien in good faith by, or defends agairmt euforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent die enforcement of the lien while those proceedings are pending, but only uutil such proceedings are concluded; or (c) secures from the holder of the lien an agreement satishctory to Lender subordinating die lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien wlfich can attain priority over this Security Instrument, Lender nmy give Borrower a notice identifying die Initials: lien. Within 10 days.of fire date on which fl~at notice is given, Borrower shall satisfy fire lien or take one or more of the actions set forth above in fids Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in comtection 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 co~mection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time renmppings or similar changes occur which reasonably nfight affect such deternfinafion or certification. Borrower shall also be responsible Ibr the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone detemfination resulting from an objection by Borrower. If Borrower fails to maintain anY of the coverages described above, Lender ~nay obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity :in the Property, or the contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of fl~e insurance coverage so obtained might significantly exceed the cost of insurmme 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 ~nortgage 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 premiun~$ and renewal notices. If Borrower obtains any Ibrm of insurance coverage, not otherwise required by Lender, for da~nage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additimml loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may nmke 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 econonfically 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 opportmfity 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 lbr the repairs and restoration in a single pay~nent or in a series of progress payments as the work is completed. U~fless an agreement is nutde 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 ofl~er third parties, retained by Borrower shall not be paid out of rile insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the stuns secured by this Security Instrument, whether or not then due, with Initials -- (~I~6(WY) (ooo~ P.~ ~ o~ ~ Form 3051 1 /01 fire excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided/'or in Section 2. If Borrower abandons the Property, Lender nmy file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond wiflfin 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 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 Bolxower'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, wlfich co~sent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or i~npair the Pi'operty, allow the Property to deteriorate or conmfit 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 insurance or condemnation proceeds are paid in co~mection 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 tbr fl~e completion of such repair or restoration. Lender or its agent may 1hake reasonable entries upon and i~xspections 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, dnring the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave nraterially false, misleading, or inaccurate intbrmation or statements to Lender (or failed to provide Lender with matefial information) in com~ection with the Loan. Material representations include, but are not limited to, representations concenfing 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 lhils to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that nfight significantly affect Lender's interest in the Property and/or fights under this Security Instrument (such as a proceeding in balfl~ruptcy, probate, for condenmation or forfeiture, lbr enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights 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 sunxs secured by a lien · wlfich has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (0005) Page 7 of 15 Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or rights under ~is Security Instrument, including its secured position in a ba~ptcy proceeding. Securing fl~e Property includes, but is not li~ted to, entering the Property to ~mke repairs, change locks, replace or board up doors and windows, drain water fi'om pipes, eli~mte building or ofl~er code violations or dangerous conditions, and have utilities turned on or off. Alfl~ough Lender nmy take action under tiffs Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed fl~at Lender incurs no liability lbr not taNng any or all actio~xs authori~d under ~is Section 9. Any amounts disbursed by Lender under tiffs Section 9 shall become additional debt of Borrower secured by tiffs Security Instrument. These amounts shall bear interest at ~e Note rate from ~e date of disbursement and shall be payable, wifl~ such interest, upou notice from Lender to Borrower requesting payment. If ~s Security Instrument is on a leasehold, Borrower shall co~nply wi~ all fl~e provisions of &e lease. If Borrower acquires fee title to fl~e Property, the leasehold and ~e fee title shall not merge uNess Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage hksurance as a condition of ~mhng fl~e Loan, Borrower shall pay ~e pre~ums required to maintain the Mortgage I~urance in effect. If. Ibr any reason, the Mortgage hxsurance coverage required by Lender ceases to be av~lable from ~e mortgage imgurer that previously provided such insurance and Borrower was required to nmke separately desig~mted payments toward fl~e prmNunm for Mortgage I~urauce, Borrower shall pay fl~e prenfiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to ~e cost to Borrower of fl~e Mortgage Insurauce previously in effect, t~om an alternate mortgage i~ksurer selected by Lender. If substantially equivalent Mortgage Imqurance coverage is not available, Borrower shall continue to pay to Lender ~e amount of the separately desigmted payments that were due when fl~e insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-re,ridable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-rehndable, notwi~standing ~e fact that the Loan is ultimtely paid in ~11, and Lender shall not be required to pay Borrower any interest or ear,rigs on such loss reserve. Lender can no longer require loss reserve payments if Mortgage hksurance coverage (in tim amount and fbr the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately desigmted payments toward the pre~Nunm for Mortgage Imqurance. If Lender required Mortgage Insurance as a condition .of nmking the Loan and Borrower was required to rake separately desigmted payments toward the pre~ux~$ tbr Mortgage I~urance, Borrower shall pay the pre~u~$ required to umintain Mortgage Insurance in effect, or to provide a non-re~ndable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termimtion or until ter~lmtion is required by Applicable Law. No~ing in this Section 10 affects Borrower's obligation to pay interest at ~e rate provided in the Note. Mortgage hzsurance reimburses Lender (or any entity that purchases ~e Note) for certain losses it ~my incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage i~urers evaluate their total risk on all such insurance in force f~om time to time, and enter into agreements wifl~ o~er parties fl~at share or modiI~ fl~eir risk, or reduce losses. These agreements are on terms and conditions that are satishctory to fl~e mortgage imgurer and the other party (or parties) to , .fl~ese agreements. These agreements ~my require the mortgage i~murer to nmke pay~nents using any source of ~nds ~at the mortgage insurer ~my have available (which my include ~nds obtained from Mo~gage htqurance pre~unu). As a result of ~ese agreements, Lender, any purchaser of tim Note, another insurer, any reimsurer, any o~er entity, or any affiliate of any of ~e foregoing, may receive (directly or indirectly) amounts ~at derive from (or ~ght be characterized as) a portion of Borrower's payments for Mortgage Imqurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides ~at an affiliate of Lender takes a share of ~e insurer's risk in exchange lbr a share of the pre~m~ paid to the insurer, ~e arrangement is oIlen te~ed "captive reinsurance." Fur~er: (a) Any such agreements will not affect the amoun~ that Borrower has a~eed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreemen~ will not increase the amount BOrrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (~)~-6(WY) (ooo5) Page e of ~5 Form 3051 1/01 Initials: (b) Any such agreements will not affect the rights Borrower has - if auy - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rigbts may include the right to receive certain disclosures, to request and obtain cancellation of tile Mortgage Insurance, to have the Mortgage Iusurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums tbat were unearned at tile time of such cancellation or termination. 11. Assignment of MiscellaneoUs Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration.pefiod, 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 colnpleted to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender nmy 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 nmde in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided lbr in Section 2. In the event of a total taking, destruction, or loss in value of file Property, the Miscellaneous Proceeds shall be applied to the sunks secured by this Security Instrument, whether or not then due, with the excess, if ally, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property innnediately beIbre the partial taking, destruction, or loss in value is equal to or greater than the amount of the stuns secured by this Security h~strument intmediately before the partial taking, destruction, or loss in value, mfless 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 fi'action: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair nmrket value of the Property immediately before the partial taking, destn~ction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by fids 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) offers to make an award to settle a claim tbr damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized tO collect and apply the Miscellaneous 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 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 crinfinal, 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 fights under this Security Instrument. Borrower can cure such a default and, if acceleration 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 the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 6(WY) (ooos) Page 9 of ~5 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amoruzadon of the sums secured by tlfis 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 agairkst any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by riffs Security Irk~trument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from flfird persons, entities or Successors in Interest of Borrower or in amom~ts less than the amount then due, shall not be a waiver of or preclude the exercise of any fight or remedy. 13. Joint aud Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs fids Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security h~strument only to mortgage, grant, and convey the co-signer's interest in the Property under the temps of riffs Security InsU-ument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any acconnnodations with regard to the ternks of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under fids Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under Otis Security hlstrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of 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 lbr services performed in connection with Borrower's default, tbr 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 lees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by fids Security Instrument or by Applicable Law. If the Loan is subject to a law which sets nmximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pernfitted linfit; and (b) any sums already collected from Borrower which exceeded pernfitted limits will be refunded to BorroWer. Lender. may choose to nuke this refuud by reducing the principal owed under the Note or by ~naking a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepaymeut charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with fids Security Instrument must be in writing. Any notice to Borrower in com~ection with this Security Instrument shall be demned 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 uotice 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 of address through that specified procedure. There may be only one designated notice address under this Security Irkstrument at any one time. Any notice to Lender shall be given by delivering it or by nhailing it by first class mail to Lender's address stated herein unless Ldnder has desig~ated another address by notice to Borrower. Any notice iu commction with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by fl:tis Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. Initials: 1~-6(WY) Iooos) p~ge lO of 15 Form 3051 1/01 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 Insu-ument 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 hx~trument: (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 iu Borrower. As used in this Section 18, "Interest in the Property" means any 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 wlfich 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 transfen'ed) without Lender's prior written consent, Lender may require inunediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prolfibited 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 froln the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Il~strument. If Borrower fails to pay these sums prior to the expiration of this period, Lender nmy 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 entbrcement of this Security Instrument discontinued at any dine prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in tiffs Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment entbrcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security InsU-ument 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, inchiding, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrulnent, shall continue unchanged. Lender ri:kay require that Borrower pay such reinstatement sums and expenses in one or more of the lbllowing 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. Upon reinstatelnent by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 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 Instrmnent) can be sold one or more times without prior notice to Borrower. A sale nfight result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Insu-ument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also nfight be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other iutbrmation RESPA Initials: (~..-6(WY) (goos) Page ~ ot~5 Form 3051 1 /Ol x ,9. requires in connection with a not:ce of tra~kRfer 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 reinain 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 Lender may co:mnence, join, or be joined to any judicial action (as either an individual litigam or the member 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 owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of dfis paragraph. The notice of acceleration and opportunity to cm'e given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to. satisl~ the notice and opportunity to take Corrective action provisions of this Section 20. 21. Hazardous Substances. As Used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental. Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a .Hazardous Substance, creates a condition flint adversely affects fire value of the Property. The preceding two sentences shall not apply to. the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to nmintenance of the Property (including, but not limited to, hazardous substances in consmner products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, delnand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Enviro~mmntal Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any govermnental 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 actions in accordance with Enviromnental Law. Notlfing herein shall create any obligation on Lender for au Environnxental Cleanup. (2~-6(WY) 1ooo5) Page ~2 o~ ~8 Form 3051 1/01 Initials: I77 NON-UNIFORM COVENANTS. Borrower 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 covenant or agreement in this Security Iostrument (but not prior to acceleration nnder 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 ma)' 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 action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the defanlt is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this 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 the person in possession of the ProPerty, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the ~nanner provided in Section 15. Lender 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 ProperD' 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 riffs Security Iik~tmment, Lender shall release fids Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a lee tbr releasing fids Security Instrument, but only if fl~e fee is paid to a third party for services rendered and the charging of fl~e fee is permitted under Applicable Law. 24. WaiVers. Borrower releases and waives all rights under and by Virtue of the homestead exemption laws of Wyoufing. Initials: C'-'"x Form 3051 1/01 · BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in ttris Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: r~ ~'/"~/~ (Seal) MARK R WELSH -Borrower ~~E~WELS~' -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~6(WY) Iooos) Page 14 of 15 Form 3051 1/01 STATE OFWYOMING~ LTNCOr,N O~'~.~Y~~ The foregoing instrument was acknowledged before me this 25 th day by MARK R WELSH AND JULIE D WELSH County ss: Of August, 2003 My Commission Expires : February 2, 2006 I SHELLEY SANDAm_k - NOTARY PtlOUG Notary Public I~-6G(WY) (ooo5) Page 15 of 15 Initials: Form 3051 1/01