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HomeMy WebLinkAbout893501WHEN RECORDED, MAIL TO: ~ C{'3.DC~ / SALT LAKE CITY, UTAH 84116 This Instrumeut was prepared by: UTAH POWER & LIGHT EMPLOYEES' CREDIT UNION 1407W NORTH TEMPLE SALT LAKE CITY, UTAH 84116 801-220-4180 Loan Number: 132080-5-001 Order Number: FA 10716 OM (Space Above This Line For Recording Data) MORTGAGE BOOK DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated September 15, 2003, together with all Riders to this document. (B) "Borrower" is DUANE T. FREEMYER . Borrower is the ~nortgagor under this Security Instrument. (C) "Lender" is UTAH POWER& LIGHT EMPLOYEES' CREDIT UNION, organized and existing under the laws of UTAH. Lender's address is 1407 W NORTH TEMPLE, SALT LAKE CITY, UTAH 84116. Lender is the mortgagee under this Security Instrmnent. (D) "Note" means the promissory note signed by Borrower and dated September 15, 2003. The Note states that Bon-ower roves Lender SEVENTY-THREE THOUSAND and no/100 Dollars (U.S. $73,000.00) pins interest. Borrower has prmnised to pay this debt in regular Periodic Payments and to pay the debt in full not later than October 1, 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 trader the Note, and all sums due under this Security Instmnmnt, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The ~bllowing Riders are to be executed by Borrower (check box as applicable): [] Adjnstable Rate Rider [] Condominium Rider [] Second Home Rider [] Balloon Rider [] Planned Unit Development Rider [] VA Rider [] 1-4 Family Rider [] Biweekly Pa)qneut Rider [] Other (Specify) - (H) "Applicable Law" means all controlling applicable federal, state and local statntes, regulations, ordinances and administrative 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 other charges that nre imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a t,'ansaction originated by check, draft, or similar paper instrument, xvhich is initiated through an electronic terminal, telephmfic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, axvard of damages, or proceeds paid by any third proxy (other than insu,'ance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condelnnation or other taking of all or any part of the Property; (iii) conveyance in lieu ofcoudemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan: (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. WYOMING - Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 1 of 8 IDS, Inc. {§00) 554-1872 Form 3051 1/01 Borrower(s) Initials ~ (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject maner. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed m regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related ~nortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any 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 Instrnment. TRANSFER OF RIGHTS 1N THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renexvals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Sect!rity Instrument and the Note. For this pnrpose, Borrower does hereby ~nortgage, 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: "SEE ATTACHED" Parcel Identification Nmnber: 12-2116-23-1-0'7-079.00 which currently has the address of: 912 SORSENSON DRIVE KEMMERER, WYOMING 83101 ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and tbat the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the PropmXy against all claims and demands, 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 unifom~ security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepaymeut Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Il~strument shall be ~nade in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the ibllowing forms, as selected by Lender: (a) cash; (b) lnoney order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be 'desigmated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the pay~nent or partial payments are insufficient to bring the Loan cun'ent. Lender may accept any payment or partial payment insufficient 1o bring the Loan current, without waiver of any rights herennder or prejndice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the tiBne such payments are accepted. If each Periodic iPayment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes · payment to bring the Loan current. If Borrower does not do so xvithin a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borro~ver fi'om making payments due under the Note and this Security Instrument 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) 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. lfLender receives a payment fi'om Borrower for a debnquent Periodic Payment which includes a sufficient mnount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received fi'om Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the fidl payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the clay Periodic Payments are dne under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items xvhich can attain priority over this Security Instrument as a lien or enculnbrance on the Property; (b) leasehold payments or ground rents on the Property, if WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 2 of 8 IDS, Inc. -(800) 554-1872 Form 3051 1/01 Bor,-o,,v~,-¢) ~,~itial, ~'<:?_Z--~_ ..... any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the paunent of Mo~gage Insurance premiulns in accordance with the provisions of Sectiou 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Communi~ Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assess~nents shall be an Escrow Item. BmTower shall promptly furnish to Lender all notices of amounts to be paid under this Sedtion. Borrower shall pay Lender the Funds for Escrow Itmns unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Bmxower shall pay directly, when and where payable, the amounts due for any Escrow Items for ~vhich payment of Funds has been waived by Leuder and, if Lender requires, shall fi~rntsh 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 m tiffs SecuriW Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a wai3er, and Borrower fails to pay the mnount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amouut and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and bold Fnads in an mnount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maxilnmn alnount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of cmxent data and reasonable estimates of expenditures ofhmre Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution xvhose deposits are insured by a federal agency, instmlnentaliW, or enti~ (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under I~SPA. Lender shall not charge Bon'ower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an a~eement is made in whting or Applicable Law requires imerest to be paid ou the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Fuuds. Borrower and Lender can agree in writing, bowever, that interest shall be paid on the Funds. Leuder shall give to Borrower, without charge, an ammal accounting of the Funds as required by ~SPA. If there is a su¢lus of Funds held in escrmv, as defined under I~SPA, Lender shall account to Bonower for the excess ~nds iu accordance with ~SPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall noti~ Borrower as required by ~SPA, and Borrower shall pay to Lender the amount necessa~ to make up the shoaage in accordance with ~SPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under ~SPA, Lender shall noti~ Borrower as required by ~SPA, and BmTower shall pay to Lender the amount necessa~ to make up the deficiency in accordance with ~SPA, but m no more than 12 monthly pay~nents. Upon payment in ~ll of all sums secured by this Security Instrument, Lender shall promptly refl~nd to Bon'ower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assess~nents, charges, fines, and impositions aUributable to the Proper~ which can attain priority over this SecuriW Instrument, leasehold payments or ~'ound rents on the Prope~, ifauy, and CommuniW Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Bon'ower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has prioriW over this SecufiW Instnnnent unless Borrower: (a) agrees in writing to the pa~nent of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is perfm'ming such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while tliose proceedings are pending, but only until such proceedings are concluded; or (c) secures from tim holder of the lien an agreement satisfacto~ to Lender subordinating the lien to this Securi. W Instrmnent. If Lender determines that any part of the ProperW is subject to a lien which can attain prioriw over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satis~ the lien or take one or lnore of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or repo~ling se~ice used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the ProperW 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 m the mnounts (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 Bon'ower subject to Leuder's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Bon-ower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, ce~ification and tracking services; or (b) a one-time charge for flood zone detemfination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in counection with the review of any flood zone determination resulting from an objection by Borrower. IfBon'ower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borro~ver's expense. Lender is under no obligation to purchase any 3a~icular ~e or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equiW in the PropmW, or the contents of the ProperW, against any risk, hazard or liabili~ and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurauce coverage so obtained might si~ificantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 3 of 8 IDS, Inc. - (800) 554-1872 Form 3051 1101 Borrower(s) Initials ~"-~ by Lender under this Section 5 shall becolne 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 fi-o,n Lender to Borrower requesting payment. All insurance policies :required by Lender and renewals of such policies shall be subject to I.ender'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 rigbt to liold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums aud renewal notices. IfBon'ower obtains any form of insurance coverage, not otberwise required by Lender, for damage to, or destructiou of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. hr the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherxvise agree m writing, any insurauce proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has bad an opportuuity to respect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration iii a single payment or in a series of progress payments as the xvork is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earumgs on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid ont of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Leuder's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borroxvet. Such insurance proceeds shall be applied in the order provided for in Sectiou 2. 1. f Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice froln Lender that the insurance carrier has offered to settle a clann, theu Lender may negotiate and settle the claim. The 30-day period will begin wheu 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 au amount not to exceed the amounts unpaid under the Note or ibis Security Insn'ument, and (b) any other of Borrower's rights (other than the right to auy refund ofuucamed 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 Instrmnent, whether or not ~then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall contiuue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, uuless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or uuless exteuuating circulnstances exist which are beyond Borro~ver's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair tim Property, allow the Property to deteriorate or co~nnfit waste on the Property. Whether or not Borrower is residing m the Prope~ry, Borrower shall maintain the Property in order to prevent the Property fi'Oln deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series ofproga'ess payments as the work is completed. If the insurance or condenmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoratiou. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvelnents on the Property. Lender shall give Borrower notice at the time of or prior to such an iuterior 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 nraterially false, misleading, or inaccurate information or statemeuts to Lender (or failed to provide Lender with material infurmation) iii connection with the Loan. Material representations include, but are not limited to, representatious concerning Borrower's occupancy of the Property as Borroxver's principal residence. 9. Protection of Lender's Iuterest in the Property and Rights Under this Security Instrument. If(a) Borrower thils to perform the covenauts and agreements coutained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in tire Prope~y and/or rights under tlfis Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security 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 Properly 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 uot limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing'in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured positiou in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Propen'y to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate buildhig or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Leuder incurs no liability for not taking any or all actions authorized under this Section 9. WYOMING - Single Family - Fannie Mae IDS, Inc. - (800) 554-1872 'Freddie Mac UNIFORM INSTRUMENT Page 4 of 8 Form 3051 1101 Borrower(s) initials t~7 Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this SecuriW Instrument. These amounts shall bear interest at the Note rate ~om the date of disbursement and shall be payable, with such interest, upon notice fTom Lender to Bon'ower requesting payment. If this SecuriW Instrument is on a leasehold, Bm-rower shall comply with all the provisions of the lease. Borrower shall uot surrender the leasehold estate and interests herein conveyed or telminate or cancel the ground lease. Bonower shall not, without the express written consent of Lender, alter or amend the ~'ound lease. If Borrower acquires fee title to the Prope~W, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mo~gage Insurance as a condition of making the Loan, Borrower shall pay the premiulns required to maintain the Mortgage Insurance in effect. If, for any reason, file Mortgage Insurance coverage required by Lender ceases to be available horn the umrtgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Bon'o~ver shall pay the ln'emiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially eqoivalent to the cost to Bonower of the Mo~gage Insurance previously in effect, from an altm-nate mortgage insurer selected by Lender. If substantially equivalent Mm~gage Insurance coverage is not available, Borrower shall continue to pay to Leuder the amount of the separately designated payments that were due when the iusm'ance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mo~gage Insurance. Such loss reserve shall be non-re~ndable, no~vithstanding the fact that the Loan is ultimately paid m ~11, and Lender shall not be required to pay Borrower any interest or earnings ou such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurauce coverage (in the mnount and for the period that Lender requires) provided by an insurer selected by Leuder again becomes available, is obtained, and Lender requires separately designated payments toward the premiunm for Mortgage Insurance. If Lender required Mo~gage Insurance as a condition of making the Loan and Bo~ower was reqnired to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-reflmdable loss reserve, until Lender's requirement for Mortgage Insurance ends m accordance with auy written agreement between Bon'ower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entiW that purchases the Note) for ceaain losses it may incur ifBon'ower does not repay the Loan as agreed. Borrower is not a pa~ to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance m tbrce fi'om time to time, and may enter into agreements with other parties that share or modi~ their risk, or reduce losses. These agreements are on terms aud conditions that are satisfactmT to the mortgage insurer and the other pa~W (or parties) to these agreements. These agreements may require the Inongage insurer to make papnents using any source of fl~nds that the mortgage insurer may have available (which may include fimds obtained lkom Mortgage Iusurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other enti~, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive froln (or Might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modi~ing the mo~gage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements ~vill not atIect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any off, er terms of the Loan. Such agreements Will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (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 rights may iuclude the right to receive certain disclosnres, to request and obtain cancellation of the Mortgage Insurance. To have the Mortgage Insurance terminated automatically, and/or to receive a ret~nd of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the PropmW, 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 oppor~niw to inspect such ProperW to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undmxaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the xvork is completed. Unless an figreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically t~asible or Lender's securiW would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this SecuriW Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Prope~, the Miscellaneous Proceeds shall be applied to the sums secured by this SecuriW Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a pa~ial taking, destruction, or loss m value of the Prope~ in which the fair market value of the'PropmW inunediately before the paflial taking, des~ction, or loss in value is equal to or ~eater than the amount of the sums secured by this SecufiW Instrumeut immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amouut of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total anaount of the stuns Secured immediately before the pa~ial taking, destruction, or loss in value divided by (b) the fair market value of the Proper~ immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a paffial taking, destruction, or loss in value of the Propeay in which the fair market value of the Prope~y inm~ediately before the paaial takiug, destruction, or loss in value is less than the amount of the sums secured i~mnediately before the pmlial WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 5 of 8 IDS, Inc. - (800) 554-1872 Form 3051 1/01 Borrower(s) initials ~7~_'"'~__ taking, destruction, or loss m value, uuless Borrower and Lender othcrxvise agree iu writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security lnstrumeut 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 seutence) offers to make an award to settle a claim for damages, Bon:ower fails to respond to Lender witbin 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 Pi-operty or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the thi,'d 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 actiou or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property' or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as 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 Seem'try Instrument. The proceeds of any award or claim for damages that are attributable to the i~npairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are uot applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Leuder Not a Waiver. Exteusion of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or auy 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 corn,hence proceedings against any Successor m Interest of Borrower or to refuse to extend tilne for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Iuterest of Borrower. Any forbearance 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 the amouut theu 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 Borruxver'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 lnstrumeut only to mortgage, grant and couvey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Insta-ument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make auy accommodations wit!~ regard to tbe terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and beuefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. Tbe covenants and agreements of this Security Instrument shall bind (except as provided in Sectiou 20) aud benefit the successors and assigns of Lender. 14. Loau Charges. Lender may charge Borrower fees for services performed in conuection with Borrower's default, for the pm-pose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property, inspection and valualion fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Leuder may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected m connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessal2? to reduce the charge to the permitted limit; and (b) any stuns already collected fi'om Borrower wbich exceeded permitted limits will be refunded to Borro~ver. Lender may choose to make this retired 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 n-eared as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might' have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender iu connectiou with this Security Instrument must be in writing. Any notice to Borrower in connectiou with this Secm'ity Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The uotice address shall be the Property Add,'ess unless Borrower has designated a substitute notice address by notice to Leuder. 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 thruugh that specified procedure. Theremay be only one designated notice address under this Secur{ty Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated hereto unless Lender has designated another address by notice to Borrower! Any notice iu connection ~vith this Security Instrument shall not be deemed to have been given to Lender uutil actually received by Lender. If any notice required by this Security Instrumeut is also required uuder Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security lustrument. 16. Governing Law; Severability; Rules of Construction. This Security lnstrtunent 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 lustrument 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 VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 6 of 8 IDS, Inc. - (800) 554-1872 Form 3051 1/01 Borrower(s) Initials ,~7~-,~'- 099 clause of this Security Instrument or the Note conflicts w th Applicable La,v, such conflict shall not affect other provisious of this Securi~ Instrument or the Note which can be given effect without the conflicting provision. As used in tbis SecuriW Instrument: (a) words of the masculine gender sball ~nean and include cotxesponding neuter words or words of the feminine gender; (b) words in the sin~dar, shall mean and include the plural and vice versa; aud (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Bo~ower shall be given one copy of the Note and of this SecuriW Instrument. 18. Transfer of the ProperW Or a Beneficial Interest in Borrower2 As used in this Section 18, "Interest in the ProperW" means any legal or beneficial interest in the PropmW, including, but not linfited to, those beneficial interests ~ansferred 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 pa~ of the ProperW or any Interest in the Propeny is sold or transfe~ed (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transfe~ed) without Lender's prior w~fnen consent, Lender may require immediate payment in ~11 of all sums secured by this SecuriW h~stmment.' However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bon'ower notice of acceleration. The notice shall provide a period of not less than 30 days fi'mn the date the notice is given in accordance with Section 15 within which Bo~ower must pay all sums secured by this SecuriW Instrument. IfBon-ower fails to pay these sums prior to the expiration of this period, Leoder may invoke any remedies permitted by this SecuriW Instrument without ~her notice or demand on Borrower. 19. Borrower's l~ght to Reinstate After Acceleration. If Borrower meets ceaain conditions, Bon'ower shall have the right to have enforcement of this SecnriW Instrument discontinued at any time prior to the earliest of: (a) five 'days before sale of the Prope~ pursuant to any; poxver of sale contained in this Securi~ Instrument; (b) such other period as Applicable Law might speci~ for the termination of Borrower's right to reinstate; or (c) ent~ of a jud~nent enforcing this Security Instrument. Those conditions are that Bon'ower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this SecuriW Instrument, including, but not limited to, reasonable attorneys' fees, properW inspection and valuation fees, and other fees incurred for the pu~osc of protecting Lender's interest in the ProperW and rights nnder this Secority Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Proper~ and rights under this SccuriW InsWument, and BoiTower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following 'forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an iustimtiou whose deposits are insured by a federal agency, instrnmentali~ or entiw} or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this SecuriW Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurrcd~ Hoxvever, this i'igbt to reinstate shall not apply in the case of acceleration uuder Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together xvith this Security Instrument) can be sold one or more 6roes without prior notice to Borrower. A sale might result in a change in the entiW (known as the "Loan Servicer") that collects Periodic Payments due under the Note and thi~ Securiw [nsaxm~ent and perfom~ other mortgage loan servicing obligations under the Note, this SecuriW Instrument, and Applicable kaw. There also might be one or more changes of the Loau Servicer mu-elated to a sale of the Note. If there is a change of the Loan Servicer, Bo~ower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to xvhich payments should be made and any other information RESPA requires in connection ;vith a notice of transfer of servicing. If the Note is sold and thereafter the Loan is se~iced by a Loan Servicer other than the purchaser of the Note, the mo~gage loan servicing obligations to Borrower will remain with the Loan Servicer or be transfmxed 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 commence, join, or be joined to any judicial action (as either an individoal litigant or the member of a class) that arises from the other pa~y's actions pursuant to this Security Instmnlent or that alleges that the other parW has breached any provision of, or any duty owed by reason ot~ this Security lnstrmnent, until such Borrower or Lender has notified the other party (with such notice given in compliance wit]~ the requirements of Section 15) of such alleged breach and afforded the other paay hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period xvhicb nmst elapse before certain action can be taken, that time period will be deemed to be reasonable for pu~oses of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursoant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and oppormniW 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 folloxving substances: gasoline, kerosene, other flammable or toxic petrolemn products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" means federal laws and laws of the jurisdiction where the ProperW is located that relate to health, safe~ or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental LaW; and (d) au "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not can.se or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in thc ProperW. Borrower shall not do, nor allow anyone else to do, anything affectiog the ProperW (a) that is in violation of any Environmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the preseuce, use, or release ofa ttazardous Substance, creates a condition that adversely affects the value of the Prope~. The preceding two sentences shall not apply to the preseuce, use, or storage on the Propeay of small quantities of Hazardous Substances that are generally recognized to be WYOMING ~ Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 7 of 8 IDS. Inc.. (800) 554-1872 Form 3051 1101 Borrower(s) InJ[ials ~._7'-~' 100 appropriate to normal residential uses and to maintenance of the Property (including but not limited to, hazardous substances in consumer products). ' Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Enviroomental Condition, including but not limited to, any spilliug, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release ofa Hazardoos Substaoce which adversely affects the value of{be Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation ou Lender for an Enviromnental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as folloxvs: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of rmv covenant or agreement in this Security Instrument (bnt not prior to acceleration under Section 18 unless Applicable Law provide's otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 {lays fi'om the {late the notice is given to Borrower, by which the default nmst be cured; and (d) that failure to cure the default ou or before the {late specified in the notice may result iu acceleration of the sums secured by this Secm'ity 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 anti sale. If the default is not cured on or belbre Ibc date specified in the no flee, Lender at its option may require immediate payment in full of afl sinus secured by fids Security Instrument without fin'{her demand anti may invoke the power of sale and any other remedies permitted by Applic'able Law. Lender shall be entitled to collect all expenses incm-red in pursuing the remedies provided in fids 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 La,v. 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 tile Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sate, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrmnent; and (c) any excess to the person or persons legally entified to it. 23. Release. Upon payment of all sums secured by tliis Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered aud the charging of the fee is permitted nnder Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the holnestead exemption laws of Wyonfiug. BY SIGNING BELOW, Borrower accepts and agrees to tile terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded With it. Wimesses: DUANE T. FREEMS~ER - - -Borrower (Seal) ~Bol'rower STATE OF WYOMING, LINCOLN county ss: The foregoing instrument was acknowledged before me this by DUANE T. FREEMYER. My commissiou expires: February 2, 2006 15th day of Sept~mb,er, 2003 (date) WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 IDS, Inc. - (800) 554-1872 Page 8 of 8 LEGAL DESCRIPTION 101 Lot 2 of Block 2 of the Lincoln Heights 3rd Subdivision to the City of Kemmerer, Lincoln County, Wyoming as described on the official plat thereof.