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WELLS FARGO HOME MORTGAGE, INC.
3601 MINNESOTA DR. SUITE 200
BLOOMINGTON, MiNI 55435
8 9 3 k, '5 3
Prepared By:
WELLS FARGO HOME MORTGAGE, INC.
RECEIVED
L~I,IL, OI._r..I "'~"i ~:'ITY,. L,. CLERK
1919 DOUGLAS,, OMAHA,
681010000
NE
r~--' ~n 846
: gOOK~-~t~ ~t PR PACE
[Space Above This Line For Recordhlg Data]
MORTGAGE
DEFINITIONS
Words used iii multiple: sections of this document are defined below and other words are defined in
Sections 3, i1, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this document are
also provided in Section 16.
(A) "Security Instrument" ineans this document, which is datedSEPTEMBER 15,
together with all Riders to this docmnent.
(B) "Borrower" is KEVIN W JONES, A SINGLE PERSON
2003
Borrower is the mortgagor under this Security Instrument.
(C) "Lender" is WELLS FARGO HOME MORTGAGE, INC.
Lender's address is P · O.
BOX 10304, DES MOINES, IA 503060304
847
Lender is the mortgagee under tlfis Security Instmmem.
(D) "Note" means the prondssory note signed by Borrower and dated S1;'..PTW. MBRR 15, 2003
The Note states that Borrower owes Lender SIXTY THRW..R THOUSAND NINE HUNDRW..D TWRNTY
AND 00/100 Dollars
(U. S. $ * * * * * 63,920.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic
Paylnents and to pay the debt in dill not later than OCTOBER 01, 2033
(E) "Property" means the property that is described below under the heading "Transfer of Rights iii the
Property."
(F) "Loau" 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 [-~ Condonlinimn Rider ~] Second Home Rider
[~ Balloon Rider ~ Planned Unit Development Rider ~ 1-4 Fanfily Rider
~ VA Rider [--] Biweekly Payment Rider ~ Other(s) [specify]
(H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations,
ordinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final,
non-appealable judicial opinions.
(I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and odier
charges dmt are imposed on Borrower or the Property by a condominium association, homeowners
association or sinfilar organization.
(J) "Electronic Funds Transfer" means any tramsfer of funds, other than a transaction originated by
check, draft, or similar paper instrument, which is ilfitiated through an electrmfic terininal, telephmfic
iustmment, computer, or magnetic tape So as to order, instruct, or authorize a fimumial institutiou to debit
or credit an account. Such term includes, but is not linfited to, point-of-sale trarksfers, auto,hated teller
nmchine transactions, transfers i~fitiated by telephone, wire transfers, and automated clearinghouse
transfers.
(K) "Escrow Items" means those items that are described iii Section 3.
(L) "Miscellaneous Proceeds" meaiks any compeusation, settlement, award of damages, or proceeds paid
by any third party (other than insurance proceeds paid under die coverages described in Section 5) tbr: (0
danmge to, or destruction of, die Property; (ii) condeimmtion or other taking of all or any part of the
Property; (iii) conveyance iii lieu of condenmation; or (iv) nfisrepresentations of, or onfissions as to, the
value and/or condition of die Property.
(M) "Mortgage Insurauce" means insurance protecting Lender agaiust die nonpayment of, or default on,
the Loan.
848.
(P) "Successor in Interest of Borrower" means any party flint 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 Secufit.y Instrument secures to Lender: (i) the repaymem of the Loan, and all renewals, extensions and
modifications of the Note; and (ii) the performance 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 of Recording Ju,'isdiction] [Name of Recording Jurisdiction]
LOT 4 OF BLOCK 4 OF THE LINCOLN HEIGHTS 4TH SUBDIVISION TO THE CITY OF
KEMMERER, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF.
THIS IS A PURCHASE MONEY SECURITY INSTRUMENT.
TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE,
BOX 10304, DES MOINES, IA 503060304
INC., P. O.
ParcelID Number: 12211623211142.00
1433 7TH WEST AVENUE
KEMMERER
("Property Address"):
which currently has the address of
[Street}
[Cityl , Wyoming ~3101 [Zip Codel
TOGETHER WITH all the improvements now or hereafter erected on the property, and all
easements, appurte~mnces, 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 Ibregoing is referred to in this
Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seised of rite estate hereby conveyed and has
the right to mortgage, grant and convey the Property and that the Property is unencumbered, e, xcept lbr
encumbrances of record. Borrower warrants and will defeud generally the title to the Property against all
claims aud denmnds, subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines mfitbnn covenants for natimud use and non-uniform
849
Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent pay~nents
due under the Note and this Security Instrument be made in one or more of the tbllowing 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 drawu upon an institution whose deposits are insured by a
federal agency, instrumentality, or entity; or (d) Electro~fic 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
briug file Loan current. Lender may accept any payment or partial payment iusufficient to bring the Loan
current, without waiver of any fights hereunder or prejudice to its fights 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 nnapplied funds until Borrower makes payment to bring
fl~e Loan-current. If Borrower does not do so wifltin a reasouable period of Ii,ne, Lender shall either apply
such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstauding
principal balance under the Note inm~ediately prior to foreclosure. No offset or claim which Borrower
might have ~mw or in the future against Lender shall relieve Borrower from making payments due under
the Note and this Security Instrmnent or perfornfing the covenants and agreements secured by this Security
Instrument.
2. Applicatiou of Payments or Proceeds. Except as otherwise described in this Section 2, all
payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest
due under the Note; (b) pfincipal 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 remai~fing 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 file Note.
If Lender receives a payment from Borrower Ibr a delinqueut 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 nmy apply any pay~nent received
from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be
paid in full. To the extent that any excess 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 fl~en as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under
the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
3. Funds for Escrow Items. Bmxower shall pay to Lender on the day Periodic Payments are due
uuder the Note, until the Note is paid in full, a sum (the "Funds") to provide/hr 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)
pre~niums for any and all insuranCe required by Lender under Sectiou 5; and (d) Mortgage Insurance
premiums, if auy, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage
Insurance prenfimns in accordance Mill the provisions of Section 10. These items are called "Escrow
850
due tbr any Escrow Items for which, payment of Funds has been waived by Lender and, if Lender requires,
shall furnish to Lender receipts evidencing such payment wiflfin such time period as Lender nhay require.
Borrower's obligation to make such payments aud to provide receipts shall lbr all purposes be deemed to
be a covexmnt and agreement .contained in this Security Instrument, as the phrase "cove~mnt and agreement"
is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and
Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9
and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such
amount. Leuder 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 ~nay, at any time, collect and hold Funds in an amount (a) sufficient to pernfit Lender to apply
the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can
require under RESPA. Lender shall estimate fl~e amount of Funds due on the basis of current data and
reaso~mble estinmtes of expenditures of future Escrow Items or'otherwise in accordance with Applicable
Law.
The Ftmds shall be held in an institution whose deposits are insured by a federal agency,
instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in
any Federal Home Loan Ba~flc. 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 applyiug the Funds, ammally
m~alyzing the escrow account, or verifying the Escrow Items, mfless Lender pays Borrower interest on the
Funds and Applicable Law pernfits Lender to nhake such a charge. U~dess an agreement is made in writing
or Applicable Law requires interest to be paid on the Funds, Leuder shall not be required to pay Borrower
any interest ot 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 ammal accounting of the
Funds as required by RESPA.
If there is a surplns of Funds held iu 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 uotify Borrower as required by RESPA, and Borrower shall pay to
Lender the amount necessary to nmke 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 amouut 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 fids Security Instrument, Lender shall promptly refund
to Borrower any Funds held by Lender.
4. Charges; Lieus. Borrower shall pay all taxes, assessments, charges, fines, and impositions
attributable to the Property which can attain priority over this Security Instrument, .leasehold payments or
ground rents on the Property, if any, and Commmfity Association Dues, Fees, and Assessments, if any. To
the extent that these items are Escrow Items, Borrower shall pay them in the maimer provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument mdess
Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a maxmer acceptable
to Lender, but only so long as Borrower is verfonnin~ such a~reement: (b) contests the lien in uood faith
851
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 lbrth above in this Section 4.
Lender nmy require Borrower to pay a one-time charge for a real estate tax verification and/or
reporting service used by Lender in co~mection 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 withiu the term "extended coverage," aud any
other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance.
This insurance shall be nmintained in the amounts (including deductible levels) and for the periods that
Lender requires. What Lender requires pursuant to the preceding sentences cau change during the term of
the Loan. The insurance carrier providing die insurance shall be chosen by Borrower subject to Lender's
right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender ]nay
require Borrower to pay, in connection with tiffs Loan, either: (a) a one-time charge for flood zoue
deter~ni~mtion, certification and tracking services; or (b) a one-time charge for flood zone deter~nination
and certification services and subseqnent charges each tilue renmppings or similar changes occur which
reaso~mbly might affect such deten~fination or certification. Borrower shall also be responsible lbr the
payment of auy fees imposed by the Federal Emergency Management Agency in com~ection with the
review of any flood zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurauce
coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any
particular type or amount of coverage. Therelbre, such coverage shall cover Lender, but nfight or nfight
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 i]~surance coverage so obtained might sig~fificantly exceed the cost of
insurance that Borrower could have obtained. Any mnounts disbursed by Lender under this Section 5 shall
become additional debt of Borrower secured by this Security h~strument. These amounts shall bear interest
at the Note rate from the date of disbursement and shall be payable, with such interest, upon uotice from
Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender's
right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as
mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal
certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender,
for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and
shall name Lender as mortgagee and/or as an additional loss payee:
Iu the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
may ]nake proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree
in writing, any insurance proceeds, whether or not Om underlying insurance was required by Lender, shall
be applied to restoration or repair of the Property, it' 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 opportmfity to inspect such Property to ensure the
work has been completed to Lender's satisfaction, orovided that such insoection shall be undertaken
the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided 'for in
Section 2.
If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
claim and related nmtters. 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 umy 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 riffs Security Instrument, and
(b) any off,er of Borrower's rights (other than the right to any refund of unearned prenfiums paid by
Borrower) under all insurance policies covering fire 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 Instmlnent, whether or not then due.
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
residence within 60 days alter 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, mfless Lender
otherwise agrees in writing, which consent shall not be um-easo~mbly witltheld, or mfless exte~mating
circumstances exist which 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 conmfit waste on the
Property. Whether or not Borrower is residing in the Property, Borrower shall nmintain the Property in
order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is
deten~fined 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
condenmation proceeds are paid in commction with danmge to, or the taking of, the Property, Borrower
shall be responsible for repairing Or restoring the Property o~fly if Lender has released proceeds lbr such
purposes. Lender nmy disburse proceeds lbr the repairs and restoration in a single payment or in a series of
progress payments as the Work is completed. If the i~surance or condemnation proceeds are not sufficient
to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of
such repair or restoration.
Lender or its agent nmy nmke reasonable entries upon and inspections of the Property. If it has
reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.
8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application
process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
knowledge or consent gave materially false, misleading, or inaccurate infonrmfion or statements to Lender
(or failed to provide Lender with nmterial information) in com~ection with the Loan. Material
representations include, but are not linfited to, representations c0ncenfing Borrower's occupancy of the
Property as Borrower's principal residence.
9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If
(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there
is a legal proceeding that nfight significantly affect Lender's interest in the Pro~ertv and/or ri~ht.~ m~der
attorneys' fees to protect its interest in the Property and/or rights under this Security Instrmnent, including
its secured position in a bankruptcy proceeding. Securing the Property includes, but is not liufited to,
entering the Property to make repairs, change locks, replace or board up doors and windows, drain water
frmn pipes, elinfinate building or other code violations or dangerous conditions, and have utilities turned
on or off. Although Lender may take action under tiffs Section 9, Lender does not have to do so and is not
under any duty or obligation to do so. lit is agreed flint Leuder incurs no liability for not taking any or all
actions authorized under this Section 9.
Any mnounts disbursed by Lender under this Section 9 shall becmne additional debt of Borrower
secured by this Security Instrument. These amounts shall bear interest at the Note rate frown 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 mfless
Lender agrees to the merger in writing.
10. Mortgage Insurance. If Lender required Mortgage Iusurauce as a condition of making the Loan,
Borrower shall pay the premiums required to ~naintain the Mortgage Insurance in effect. If, ~br 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 make separately designated pay~neuts
toward the prentiums lbr Mortgage Insurance, Borrower shall pay the prenfiums required to obtain
coverage substantially equivalent to the Mortgage Insurance previously iu effect, at a cost substantially
equivalent to the cost to Borrower of the Mortgage Iusurance 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 designated payIneuts that
were due when the insurance coverage ceased to be in effect. Lender will accept, use' and retain these
paylneuts as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be
non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, aud Lender shall not be '
required to pay Borrower any interest or eanfings on such loss reserve. Lender can uo longer require loss
reserve payments if Mortgage Insurauce coverage (in the amount aud for the period that Le~der requires)
provided by an insurer selected 'by Lender again becomes available, is obtained, aud Lender requires
separately designated payments toward fl~e premiums for Mortgage Insurance. If Lender required Mortgage
Iusurance as a conditiou of making the Loau and Borrower was required to make separately designated
payments toward the premiums lbr Mortgage Insurance, Borrower shall pay the premiums required to
nmintain 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 lbr such ternfination or until termination is required by Applicable Law. Nothing in tiffs
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) tbr cert~fin losses it
nmy incur if Borrower 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 insurance in force from time to time, and may
enter into agreements with other parties that sbare or modify their risk, or reduce losses. These agreements
are on terms aud conditions that are satisfactory to the'mortgage insurer and the other party (or parties) to
these agreements. These agreements may require the mortgage i~kqurer to make payments using any source
of funds that the mortgage insurer ~nay have available (which may include funds obtained from Mortgage
Insurance prenfiums).
S54
(b) Any such agreements will not affect the rights Borrower has i if any - with respect to the
Mortgage Insurance onder tile Homeowners Protection Act of 1998 or any other law. These rights
may include the right to receive certain disclosures, to request and obtain cancellation of the
Mortgage Insurance, to have tile Mortgage Insurauce terminated automatically, aud/or to receive a
refund of ally Mortgage Insurance premiums that were unearned at the time of such caucellation or
termination.
~11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
assigned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of
the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds
until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay tbr the
repairs and restoration in a single disbursement or iu a series of progress, payments as the work is
completed. Unless an agreement is made in writiug or Applicable Law requires interest to be paid ou 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 tile order provided for in Section 2.
In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous
Proceeds shall be applied to the sums secured by this Security Instrmnent, whether or not then due, with
the excess, if any, paid to Borrower.
In tire event of a partial taking, destruction, or loss in value of the Property in which the fair market
value of fire Property inm~ediately beibre the partial taking, destruction, or loss in value is equal to or
greater than the amount of the sums secured by this Security h~strument inunediately betbre the partial
taking, destruction, or loss in value, unless Borrower and Lender otherwise'agree in writing, the sums
secured by this Security Instn~ment shall be reduced by the amount of file Miscellaneous Proceeds
multiplied by the following traction: (a) the total amount of the sums secured iunnediately belbre the
partial taking, destruction, or loss iu value divided by (b) the l:air market value of the Property iuunediately
before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower.
In tile event of a partial taking, destruction, or loss in value of the Property iu which the fair market
value of the Property immediately before the partial taking, destruction, or loss in value is less than the
amount of the sums secured iuunediately before the partial taking, destmctiou, or loss in value, unless
Borrower and Lender otherwise agree iu writing, the Miscellaneous Proceeds shall be applied to the sums
secured by this Security Instrument whether or not the sums are then due.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages,
Borrower fails to respond to Lender within 30 days after tile 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 fl~en due. "Opposing Party" means the third party
rial 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
intere.~t in the Prnnertv nr rif,ht~ ~nder thi~ qer',~rltx, [ll(:/nl,llF~,lJ' ~nrrnx~tor £'*~,~ £'1,,'~c* o,,nh ~ ~i~f'.~lt .... .~l
855
12. Borrower Not Released; Forbearance By Lender Not a Waiver. ExteJksion of the time fur
pay~nent or modification of amortization of file 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 conm~ence proceedings against
any Successor in Interest of Borrower or to red, se to extend time for payment or otherwise modify
amortization of the sums secured by this Security hLstrument by reason of any dentand nmde by the original
Borrower or any Successors iu Interest of Borrower. Any Ibrbearance by Lender in exercising any right or
remedy including, without limitation, Lender's acceptance of payments from third persons, entities or
Successors in Interest of Borrower or in amounts less than file amount then due, shall not be a waiver of or
preclude the exercise of any right or remedy.
13. Joint and Several Liability; Co-signers; 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 this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this
Security Instrument o~fly to mortgage, grant and convey the co-signer's interest m the Property under the
terms of fids Security Instmn~ent; (b) is not personally obligated to pay the sums secured by this Security
Instrmneut; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or
make any accommodations with regard to the ter~rks of tiffs 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 this Security Instmn~ent. Borrower shall not be released Ii'om
Borrower's obligations and liability under this Security hzStnlment unless Lender agrees to such release in
writing. The covenants and agreements of this Security Instrument shall bind (except as provided in
Section 20) and benefit the successors and assigns of Lender.
14. Loan Charges. Lender may charge Borrower fees for services pertbrmed in com~ection 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 lees.
In regard to any other fees, the absence of express authority in fids Security Instrument to charge a specific
fee to Borrower shall not be construed as a prohibition on the charging of such tee. Lender nmy not charge
fees that are expressly prohibited by this Security Instrument or by Applicable Law.
If the Loan is subject to a law Milch sets maximum loan charges, and that law is finally interpreted so
that the interest or other loan charges collected or to be collected in com~ection with the Loan exceed the
pernfitted linrits, 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 nuke this refund by reducing the principal
owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the
reduction will be treated as a partial prepayment without any prepayment charge (whether or not a
prepayment charge is provided Ibr under the Note). Borrower's acceptance of any such refund ~nade by
direct payment to Borrower will constitute a waiver of any right of action Borrower nfight have arising out
of such overcharge.
15. Notices. All notices given by Borrower or Lender in cmmection with this Security Instrument
must be iu writing. Any notice to Borrower in comlection with this Security Instrument shall be deemed to
have been given to Borrower when ~nailed 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 nrnmn~lv
856
16. Governing Laxv; 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 linfitations of
Applicable Law. Applicable Law nfight explicitly or ilnplicitly 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 tlfis Security Instrument or the Note conflicts with Applicable
Law, such conflict shall not affect other provisions of this Security Instrument or the Note wlfich can be
given effect without the coxfflicting provision.
As used in this Security Instrument: (a) words of the masculine gender shall ~nean and include
corresponding neuter words or words of the femi~fine 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 rte Note and of fids Security Instrument.
18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18,
"Interest in the Property" ~neans any legal or beneficial interest in the Property, including, but not linfited
to, tlmse 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 rite 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 nhay require i~nmediate payment iu 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 tlfis option, Lender shall give Borrower notice of acceleration. The notice shall
provide a period of not less than 30 days from the date the ~mtice is given in accordance with Section 15
within wlfich Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay
these sums prior to the expiration of this period, Lender nhay invoke any remedies pemfitted 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 fids 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 iu
this Security Instrument; (b) such other period as Applicable Law ~night specify for the ternfination of
Borrower's right to reinstate; or (c) entry of a judglnent enforcing this Security Instrument. Those
conditions are that Borrower: (a) pays Lender all sums which then would be due under fids Security
Instrument and fire 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 liufited
to, reasonable attorneys' tees, property inspection and valuation fees, and other lees incurred lbr the
purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d)
takes such action as Lender nray reasonably require to assure fllat Lender's interest in fire Property and
rights uuder this Security Iustrument, and Borrower's obligation to pay the sums secured by this Security
Instrument, shall continue unchanged. Lender nmy require that Borrower pay such reinstatement sums and
expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) ~noney 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 ageucy, instrumentality or entity; or (d) Electrmfic
Funds Transfer. Upon reinstatement 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.
requires ill COlUlection widl a notice of tralksfer of servicing. If die Note is sold and fllereafter die Loan is
serviced by a Loan Servicer other than the purchaser of fl~e Note, fl~e mortgage loan servicing obligatio~m
to Borrower will remain wifl~ fl~e Loan Servicer or be trmmferred to a successor ~an Servicer and are not
assumed by fl~e Note purchaser unless ofl~e~ise provided by fl~e Note purchaser.
Nei~er Borrower nor Lender nmy commence, join, or be joined to any judicial action (as eifl~er an
individual litigant or the member of a class) ~at arises l~om fl~e off, er party's actions pursuant to fids
Security Instrument or ~at alleges tbat file off, er party has breached any provision of, or any duty owed by
reason of, this Security hmtmment, until such Borrower or Lender has notified fl~e off,er party (wi~ such
notice given in compliance wifl~ the requirements of Section 15) of such alleged breach and aflbrded
off, er party hereto a reasonable period after fl~e giving of such notice to take corrective action. If
Applicable Law provides a'time period wlfich must elapse before certain action can be taken, flint time
period will be deemed to be reasomble for pu~oses of tiffs paragraph. The notice of acceleration and
opportnnity-to cure given to Borrower pursuant to Sectiou 22 and fl~e notice of acceleration given to
Borrower pursuant to Section 18 shall be deemed to satisfy fl~e notice and opporm~fity to take corrective
action provisions of fids Section 20.
21. H~ardous Substances. As used in fids Section 21: (a) "Ha~rdous Substances" are fl~ose
substances defined as tofic or hazardous substances, pollutants, or wastes by Enviro~m~ental Law and
Ibllowing substances: gasoline, kerosene, o~er flamumble or to~c petroleum products, toxic pesticides
and herbicides, volatile solvents, materials contai~fing asbestos or fonmldehyde, and radioactive nmterials;
(b) "Environmental Law" ~nea~ federal laws and laws of fl~e jurisdiction where fl~e Property is located flint
relate to heal~, safety or enviromnental protection; (c) "Enviromnental Cleanup" includes any respouse
action, remedial action, or removal action, as defined in Enviromnental Law; and (d) an "Enviromnental
Condition" means a condition flint can cause, contribute to, or ofl~erwise trigger an Enviromnental
Cleanup.
Borrower shall not cause or permit fl~e presence, use, disposal, storage, or release of any Hazardous
Substauces, or flxreaten to release any Hazardous Substances, on or in ~e Property. Borrower shah not do,
nor allow anyone else to do, anytlfing affecting fl~e Property (a) flint is in violation of auy Environmental
Law, (b) which creates an Enviromnental Condition, or (c) which, due to fl~e presence, use, or release of a
Hazardous Substance, creates a condition fl~at adversely affects fl~e value of fl~e Property. The preceding
two sentences shall not apply to fl~e presence, use, or storage on ~e Property of snmll quantities of
Hazardous Substances flint are generally recog~zed to be appropriate to normal residential uses and to
nmintemnce of fl~e Property (including, but not liufited to, hazardous substances in consumer p:roducts).
Borrower shall promptly give Lender written notice of (a) any investigation, claim, de~mnd, lawsuit~
or off, er action by any govermnental or regulatory agency or private party involving ~e Property and any
Ha~rdous Substance or Enviromnental Law of which Borrower has actual'knowledge, (b) any
Environmental Condition, inclnding but not limited to, any spilling, leaking, discharge, release or fl~reat of
release of any Hazardous Substance, and (c) any condition caused by fl~e vresence, use or release of
NON-UNIFORM COVENANTS. Borrower aud Lender furrier covemmt and agree as follows:
22. Acceleration; Relnedies. Lender shall give notice to Borrower prior to acceleration following
Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to
acceleration under Section 18 nnless Applicable Law provides otherwise). The notice shall specify: (a)
the default; (b) the action required to cure the defanlt; (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 iuform Borrower of the
right to reinstate after acceleration and tile 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 default is not cured on or
before the date specified iu the notice, Lender at its optiou may require immediate payment in full of
all stuns 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 tile 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 manner 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 Property at any sale. The proceeds of the sale shall be
applied in the following order: (a) to all expenses of the sale, inclndingi 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 paylnent of all sums secured by tiffs Security h~strument, Lender shall release this
Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee tbr
releasing this Security Instrumeut, but only if the fee is paid to a third party for services rendered and fl~e
charging of the fee is permitted under Applicable Law.
24. Waivers. Borrower releases and waives all rights under and by virtue of the hoinestead
exemption laws of Wyoming.
859
BY SIGNING BELOW, Borrower accepts and agrees to fl~e terms and covenauts contained in this
Security Instrument and in any Rider executed by Borrower and recorded wifl~ it.
Witnesses:
(Seal)
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
(Seal) (Seal)
-Borrower -Borrower
860
STATE OF WYOMING, LINCOLN
The foregoing instrument was acknowledged before me this
by KEVIN W JONES
15th day
Countyss:'
of September, 2003
My ConunissionExpires: February 2, 2006
SHEU.EY S,4A~,~ - NOTA~ Pt~UC