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HomeMy WebLinkAbout893505Return To: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, M/~ 55435 Prepared By: WELLS FARGO HOME MORTGAGE, INC. 1919 DOUGLAS,, OMAHA, 681010000 NE [Space Above This Line For Recarding Data] MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined ~n 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 Iustrument" means this document, wlfich is dated SEPTEMBER 10, together with all Riders to this document. (B) "Borrower" is RAY L HYDE, A MARRIED PERSON 2003 Borrower is the mortgagor under this Security Instrument. (C) "Lender" is WELLS FARGO HOME MORTGAGE, INC. Lender is a CORPORATION organized and existing under the laws of THE STATE OF CALIFORNIA 0032196206 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT VMP MORTGAGE FORMS - {800)521-7291 Form 3051 1/01 Lender's address is P.O. BOX 10304, DES MOINES, IA 503060304 Lender is file mortgagee under this Security Instrument. (D) "Note" means the pronfissory note signed by Borrower and dated $~..PT~..IVI. B~..R 10, 2 003 The Note States that Borrower owes Lender FIFTY THOUSJMNrD EIGHT HUNDR~..D F..IGHTY ~ 00 / 100 Dollars (U.S. $ * ** * * 50,880.00 ) plus interest. Borrower has promised to pay fltis debt in regular Periodic Payments and to pay the debt in full not later than OCTOBI~.R 01, 2033 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means file debt evidenced by file 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" ~neans all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [chegk box as applicable]: ~ Adjustable Rate Rider ~] Condonfinium Rider ~ Second Home Rider ~ Balloon Rider ~-~ Planned Unit Development Rider [] 1-4. Falnily Rider [] VA Rider ~ Biweekly Payment Rider ~ Other(s) [specify] 0!) "Applicable Law" means all controlling applicable federal, state and local statutes, regulationsl ordinances and ad~ninistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (D "Community Association Dues, Fees, an.d Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or sixnilar organization. (.D "Electronic Funds Transfer" means any transfer of funds,, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as 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, award of damages, or proceeds paid byany third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) nfisrepresentations of, or onfissions 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. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as riley might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~}~-6(WY) {ooos} Page 2 of 15 Initials: /' ' Form 3051 1/01 (P) "Successor in Interest of Borrower" ~neans any party that has taken title to the Property, whether or not that party has assmned Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instnunent secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements uuder this Security Instrument and the Note. For this purpose, Borrower does hereby nmrtgage, graut and convey to Lender and Lender's successors and assigns, wifll power of sale, the following described property located in the COUNTY of LINCOLN : }Type of Recording Jurisdiction} [Nanle of Recording Jurisdiction] SEE ATTACHED LEGAL *SEE ADJUSTABLE RATE RIDER TAX STATEMENTS sHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, BOX 10304, DES MOINES, IA 503060304 INC., P. 0. Parcel ID Number: 425 LINCOLN STREET AFTON ("Property Address"): which currently has d~e address of lStreet] [City] , Wyoming 8 3 Z 10 [Zip Code} 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 htstrumeut. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claitns and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-mfiform covenants with limited variations by jurisdiction to constitute a mfilbrm security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and fids Security htstmment shall be made in U.S. curreucy. However, if any check or other instrument received by Lender as payment under the Note or fids ~-6{WY) Iooos) Page3of 15 /t Form 3051 1/01 Security Instrument is returned to Lender unpaid, Lender may require that any or all. subsequent payments due under the NOte and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer!s check or 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) Electroific Funds Transfer. Payments are deemed received by Lender when received at the location designated iu the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender nmy return any payment or partial payment if the payment or partial payments are i~tsufficient to bring the Loan curren.t. Lender may accept any payment or partial pay~nent insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such nnapplied funds until Borrower nhakes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note i~nmediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower frown making payments due nuder the Note and dfis Security Instrument or perfornfing the covenants and agreements secured by this Security Instrmnent. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amonnts due under tltis Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a pay~nent from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Pay~nent is outstanding, Lender may apply any payment 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 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 day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over dfis Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender uuder Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the pay~nent of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "EscroTM Items." At origination or at any time during the term of the Loan, Lender xnay require that Cmmnunity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items mfless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Itetns. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts 6(WY) (ooosl P~go 4 of 15 Form 3051 1/01 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such paynrent within such time period as Lender maY' require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender ~nay reVoke the waiver as to any or all Escrow Items at any tinm by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amouuts, that are then required under this Section 3. Lender ~nay, at any time, collect and hold Funds in an a~nount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maxinmm amount a lender can require under RESPA. Lender shall estixnate the a]nount of Funds clue on the basis of current data and reasonable estilnates of expenditures of future Escrow Items or otherwise in accorda~me with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan BarLk. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, a~muatly analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pernfits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eanfings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the' Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower fur tim excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Fund~ held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property. which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a mmmer acceptable to Lender, but only so long as Borrower is perforating such agreement; (b) contests the lien in good faifl~ by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but tuffy until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender deternfines that any part of the Property is subject to a lieu which can attain priority over Otis Security Instrument, Lender may give Borrower a notice identifying the (~;)~-6(WY) {ooo5) P.g~ s of 15 Form 3051 1/01 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not linfited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and lbr the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flo6d zone determi~hation and certification services and subsequent charges each time renmppings or sinfilar'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 cmmection with the review of any flood zone detennix~ation resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender n~y obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. Ail 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. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not nmde promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is ec0nonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is nhade in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any iuterest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with (~I~-6(WY) 1ooo5} Page $ of ~s Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall he applied in the order provided tbr in Section 2. If Borrower abandons the Property, Lender nmy file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice t¥om Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a)' Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refuud of unearned premiums paid by Borrowe0 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 an]ounts unpaid under the Note or this Security Instrmnent, whether or not then due. 6. Occul)ancy. Borrower shall occupy, establish, and use the Property as Borrower's principal resideuce within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Leuder otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection 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 nkaintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if danmged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in cmmection with danmge to, or the taking of, the Property, Borrower shall be resp0usible for repairing or restoring the Property only if Lender has released proceeds /hr such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condexmmtion proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may nmke reasonable entries upon and inspectim~s of the Property. If it has reasonable cause, Lender ]nay 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 nmterially false, nfisleading, or inaccurate intbrmation or statetnents to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perfor]n the covenants and agree~nents contained in this Security Instrument, (b) there is a legal proceeding fl~at might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for mfforcement of a lien which may attain priority over this Security Instrumeut or to enforce laws or regulations), or (c) Borrower has abandoned die Property, then Lender ~nay do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairiug the Property. Lender's actions can include, but are ]mt 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 initials:..~~l'~ (~)~-6(WY) {ooo5} P~g. 7 o~ ~5 Form 3051 1/01 133 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a ba]dcruptcy proceeding. Securing the Property includes, but is not linfited to, entering rite Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or oilier code violations or dangerous conditions, and have utilities turned on or off. Although Lender ~nay take action under this Section 9, Lender does not have to do so and is not under any duty or Obligation to do so: It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate frotn 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 Insurance as a condition of making Om Loan, Borrower shall pay the prexniums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage iusurer that previously provided such insurance and Borrower was required to make separately desig~mted payments toward the prenfimns for Mortgage Insurance, Borrower shall pay the prenfiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously iii effect~ at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Irksurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultilnately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the prenfiums for Mortgage Insura~me. If Lender required Mortgage Insurance as a condition of nmking the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the pre~niums required to nhaintain Mortgage Insurance in effect, or to provide a non-refundable 10ss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such temfination or until ternfination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it 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 share or ~nodify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to nmke payments using any source of funds that the mortgag, e insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, nmy receive (directly or indirectly) amounts that derive l¥om (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange fur a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (~)~-6{WY) 1ooo5} Page ~ of ~5 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or auy other law. These rights may iuclude the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refuud 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 die Property, if die restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender si]all have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration ina single disbursemeut or in a series of progress payments as the work is coxnpleted. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible oi Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to rite sums secured by this Security Instrumeut, whether or not theu 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 Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security hkstrument, whether or not then due, with the excess, if any, paid to Borrower. In the eveut ofa partial taking, destruction, or loss in value of the Property in which the fair market value of the Property inunediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of die sums secured by this Security Instrument ixmnediately 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 amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured inunediately before the partial taking, destruction, or loss itt value divided by (b) the fair nmrket value of the Property intmediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair umrket value of the Property innnediatety before the partial taking, destruction, or loss in value is less than the amount of the sums secured innnediately before the partial taking, destruction, or loss in value, unless Borrower and Lender Otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by 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 Leuder within 30 days after the date the uotice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of rite Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action ia regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or crimi]ml, is begun that, in Lender's judgment, could result in forfeiture of the Property or oilier nmterial impairment of Lender's interest in the Property or fights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Sectiou 19, by causing the action or proceeding to be disnfissed 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 tiffs Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. (~l~)-6(WY) {0005) pag~ 9 of ~5 Inilials: ~~ Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by fids Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of BorroWer. Any forbearance by Lender in exercising any right or remedy including, without linfitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or iu'amounts less than the 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 covemnts 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 only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by fltis Security Instrumeut; and (c) agrees that Lender and any other Borrower can agree to extend, inodify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to fire provisions of Section 18, any Successor in Interest. of Borrower who assumes Borrower's obligations under this Security InsUmnent in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument mfless Lender agrees to such release iu writing.. The covenants aud 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 performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation tees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall uot be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pemfitted linfit; and (b) any sums already collected from Borrower which exceeded pernfitted lira/ts will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under file Note or by nmking 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 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 ufight have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in com~ection with this Security Instrument must be in writing. Any notice to Borrower in cmmectiou with this Security Instrument shall be deemed to have been given to Borrower when nmiled 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 mfless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be oaly one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class nmil to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in com~ection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If an3, notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under tlfis Security Instrument. initials~J~~/, (~I~-6(WY) 1ooo5} Pag* 10 of 15 Form 3051 1/01 . .3G 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations coutained in this Secm'ity Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it nfight be silent, but such silence shall not be construed as a prohibition against agreement by contract. Itl the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or' the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall, mean and include tile plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of tiffs Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in tile Property is sold or transferred (or if Borrower is not a lmtural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date tile notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pernfitted by tiffs Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrumem discontinued at any time prior to the earliest of: (a) five days before sale of tim Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify Ibr the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing tiffs Security Instrument. Those conditions are that Borrower: (a) pays Lender all sunks which then would be due under this Security Instrument and tile Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing Otis Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for-the purpose of protecting Lender's interest in the Property and rights under this Security Insimment; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in tile Property and rights under tiffs Security Instrument, and Borrower'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 institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, tiffs Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. Tile Note or a partial interest in the Note (together with this Security Instmmen0 can be sold one or more times without prior notice to Borrower. A sale nfight result in a change in the emity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and dds Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the chafige which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other intbrmation RESPA (~-6(WY) {goos) Page ~ o~ ~5 ' ' Form 3051 1/01 requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may connnence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportmtity to take corrective action provisions of this Section 20. 21, Hazardons Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutauts, or wastes by Environmental Law and the lbllowing substances: gasoline, kerosene, other flarmnable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde,, and radioactive materials; (b) "Enviro~mlental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health., safety or enviromnental protection; (c) "Enviro~m~ental Cleanup" includes any response action, remedial action, or removal action, as defined in Enviro~m~ental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Clea~mp. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting die Property (a) that is in violation of any Enviromnental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of snhall quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses arid to nhaintenance of the ProPerty (including, but not liinited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, clai~n, demand, lawsuit or other action by any goverrunental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual, knowledge, (b) any Environmental Condition, including but not linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of die Property. If Borrower learns, or is notified by any govenunental 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 rmnedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Enviro~nnental Cleanup. (~-6(WY) (ooos} P~9. ~2 of ~s Form 3051 1/01 .,.38 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration followiog Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cnre the default; (c) a date, not less than 30 days from tile date the notice is given to Borrower, by which the default must be cured; and (d) that failnre to cure the default on or before the date specified ill the notice may result in acceleration of the sums secured by this Security h]strument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the defanlt is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke tile power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the rmnedies provided in this Section 22, including, but not limited tO, reasonable attorneys' fees and costs of title evidence. If Lender invokes ihe power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person ill possession of the Property, if different, in accordance with Applicahle Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall puhlish the notice of sale, and tile Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to tile person or persons legally entitled to it. 23. Release. Upon pay~nent of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but o~fly if fl~e fee is paid to a third party for services rendered and the charging Of the fee is pernfitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~I~6(WY) (0005) Pag. 13 o[ 15 Form 3051 1'/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in tiffs Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: R/kY I'. (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (~<~6(WY) (ooo5) Page 14 oi' 15 Form 3051 1/01 STATE OF WYOMING, LINCOLN The foregoing instnnnent was acknowledged before me this by RAY L HYDE /0 County ss: My Connnission Expires: ~. COMMISSION ~PIRES JUNE 20 2007 Nolaw ]]~c~ ~/. (~-6G(WY) (ooos) Page 15 of 15 Form 3051 1/01 SCHEDULE C The land referred to in this commitment is situated in the State of Wyoming, County of Lincoln, and is described as follows: Part of Lot 2 Of Block 19, Afton Townsite, Lincoln County, Wyoming being more particularly described as follows: ~ BEGINNING at a Point 10 rods South from the Northwest corner of said Lot 2 and running thence East 10 rods; thence South 5 rods; thence West 10 rods; thence North 5 rods to the POINT OF BEGINNING. ALSO, BEGINNING at the center of said Block 19 and running thence West 10 rods; thence North 10 rods; thence East 10 rods; thence South 10 rods to the POINT OF BEGINNING. ALSO, BEGINNING at the Southwest corner of said Lot 2 and running thence North 5 rods; thence East 10 rods; thence South 5 rods; thence West 10 rods to the POINT OF BEGINNING. LESS AND EXCEPT the land contained in Warranty Deed recorded August 5, 1994 in Book 355PR on page 505 of the records of the Lincoln County Clerk. . .42 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Iudex - Rate Caps) THIS FIXED/ADJUSTABLE RATE R/DER is nmde this 10TH day of SEPTEMBER, and is incorporated into and shall be dee~ned to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to WELLS FARGO HOME MORTGAGE, INC. ("Lender") of tim same date and covering the property described in the Security Instrument and located at: 425 LINCOLN STREET, AFTON, W-Y 83110 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE, THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the cove~mnts and agreements made in file Security Iustrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 4.5 0 0 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of OCTOBER, 2010 , and the adjustable interest rate I will pay nmy change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." 0032196206 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Single Family - Fannie Mae Uniform Instrument (~843R (0006) Form 3182 lJJ3q ',t 3 (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on au Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant nmmrity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give nm notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND THREE-QUARTERS percentage points ( 2.7 5 0 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125 %). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the uupaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of dfis calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.5 0 0 % or less than 2.7 5 0 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying Ibc the preceding 12 months. My interest rate will never be greater than 9.500 %. (E) Effective Date of Changes My new interest rate will beconXe effective on each Change Date. I will pay the amount of my new monthly payment begimfing on the first monfl~ly pay~nent date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any chauge. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone ~mmber of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed iuterest rate changes to an adjustable interest rate under the terms stated in Section A above, Unitbrm Covenant 18 of the Security Instrument shall read as follows: Initials: ~:~? (~843R (0006) Page 2 of 4 Form 3182 1t01 Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior :written consent, Lender nmy require inunediate payment in full of all sums secured by dtis Security instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given'in accordance with Section 15 within wlfich Borrower must pay all sums secured by this Security htstrument. If Borrower fails to pay these snms prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or dmnand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section B1 above shall then cease to be in effect, and the provisions of Uxfiform Covenant 18 of the Security Instrument shall be amended to read as tbllows: Transfer of the Property or a Beneficial Interest iu Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest iu Borrower is sold or transferred) without Lender's prior written consent, Lender xnay require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being ~nade to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agremnent in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agree~nent that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made iu the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument uxfless Lender releases Borrower in writing. If Lender exercises fl~e option to require immediate payment in full, Lender shall give Borrower uodce of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within wlfich Borrower must pay all Initials:.. (~t~843R (0006) Page 3 of 4 /~/~' Form 3182 1/01 sums secured by dfis Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by tiffs Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. J4(5~- '~5~~~ (Seal) R~Y L HYI~E ~ -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower · (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~843R (00o6) Page 4 of 4 Form 3182 1/01 1-4FAMILY RIDER (Assignment o~ Rents) THIS 1-4 FAMILY RIDER is made dfis 10TH day of SEPTEMBER, 2003 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note toWELLS FARGO HOME MORTGAGE, INC. (the "Lender") of the same date and covering the Property described iii the Security Instrument and located at: 425 LINCOLN STREET, AFTON, WY 83110 [Property Address] 1-4 FAMILY COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADDITIONAL PROPERTY SUBJECT TO THE SECURITY INSTRLrMENT. In addition to the Property described iii the Security Instrument, rite following items now or hereafter attached to the Property to the extent they are fixtures are added to the Property description, and shall also constitute fl~e Property covered by the Security Instrmnent: building nmterials, appliances and goods of every nature whatsoever now or hereafter located in, on, or used, or intended to be used in connection with the Property, including, but not limited to, those for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light, fire prevention and extinguishing apparatus, security and access control apparatus, plmnbiug, bath mbs, water heaters, water closets, sinks,-ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awlfings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached mirrors, cabinets, paneling and attached floor Covetings, all of which, including replacements and additions thereto, shall be deemed to be and reumin a part of file Property covered by the Security Instrument. All of the foregoing togefl~er with the Property described in the Security Instrument (or fl~e leasehold estate if the Security Instrument is on a leasehold) are referred to in this 1-4 Family Rider and the Security Instrument as the "Property." 003219'6206 MULTISTATE 1- 4 FAMILY RIDER - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~57R (0008) Page I of 4 Form 3170 1/01 VMP MORTGAGE FORMS - (800)521-7291 B. USE OF PROPERTY; COMPLIANCE WITH LAW. Borrower shall not seek, agree to or nkake a change in the use' of the Property or its zo~fing classification, unless Lender has agreed in writing to the change. Borrower shall comply with all laws, ordi~mnces, regulations and requirements of any govermneutal body applicable to the Property. C. SUBORDINATE LIENS. Except as permitted by federal law, Borrower shall not allow any lien inferior to the Security Instrument to be perfected against the Property without Lender's prior written pernfission. D. RENT LOSS INSURANCE. Borrower shall maintain insurance against rent loss in addition to the other hazards for which insurance is required by Section 5. E. "BORROWER'S RIGHT TO REINSTATE" DELETED. Section 19 is deleted. F. BORROWER'S OCCUPANCY. Unless Lender and Borrower otherwise agree in writing, Section 6 concerning Borrower's occupancy of the Property is deleted. G. ASSIGNMENT OF LEASES. Upon Lender's request after default, Borrower shall assign to Lender all leases of the Property and all security deposits made in com~ection with leases of the Property. Upon the assigmnent, Lender shall have the right to modify, extend or temfinate the existing leases and to execute new leases, in Lender's sole discretion. As used in this paragraph G, the word "lease" shall mean "sublease" if the Security Instrument is on a leasehold. H. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION. Borrower absolutely and unconditio~mlly assigns and transfers to Lender all the rents and revmmes ("Rents") of the Property, regardless of to whom the Rents of the Property are payable. Borrower authorizes Lender or Lender's agents to collect the Rents, and agrees that each tenant of the Property shall pay the Rents to Lender or Lender's agents. However, Borrower shall receive the Rents until: (i) Lender has given Borrower notice of default pursuant to Section 22 of fl~e Security Instrument, and (ii) Lender has given notice to the tenant(s) that the Rents are to be paid to Lender or Lender's agent. This assig~m~ent of Rents constitutes an absolute assigmnent and not an assigmnent for additional security only. If Lender gives notice of default to Borrower: (i) all Rents received by Borrower shall be held by Borrower as trustee for the benefit of Lender only, to be applied to the sums secured by the Security Instrument; (ii) Lender shall be entitled to collect and receive all of the Rents of the Property; (iii) ~57R (0008) Page 2 of 4 initials: ./~~.. Form 3170 '1/01 Borrower agrees that each tenant of the Property shall pay all Rents due and unpaid to Lender or Lender's agents upon Lender's written demand to the tenant; (iv) mdess applicable law provides otherwise, all Rents collected by Lender or Lender's agents shall be applied first to the costs of taking control of and managing the Property and collecting the Rents, including, but not li~nited to, attorney's fees, receiver's tees, premiums on receiver's bonds, repair and maintenance costs, insurance premiums, taxes, assessments and other charges on the Property, and then to the sums secured by the Security Instrument; (v) Lender, Lender's agents or any judicially appointed receiver shall be liable to account tbr only those Rents actually received; and (vi) Lender shall be entitled to have a receiver appointed to take possession of and manage the Property and collect the Rents and profits derived from the Property without any showing as to the inadequacy of tile Property as security. If the Rents of the Property are not sufficient to cover the costs of taking control of and managing tile Property and of collecting the Rents any funds expended by Lender for such purposes shall become indebtedness of Borrower to Lender secured by the Security Instrument pursuant to Section 9. Borrower represents and warrants that Borrower has not executed any prior assignment of the Rents and has not performed, and will not perform, any act that would prevent Lender from exercising its rights under this paragraph. Lender, or Lender's agents or a judicially appointed receiver, shall not be reqnired to enter upon, take control of or maintain the Property before or after giving notice of default to Bo~xower. However, Lender, or Lender's agents or a judicially appointed receiver, may do so at any time ~vhen a default occurs. Any application of Rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment of Rents of the Property shall temfinate when all the sums secured by the Security Instrument are paid in full. I. CROSS-DEFAULT PROVISION. Borrower's default or breach under any note or agreement iii which Lender has an interest shall be a breach under the Security Instrument and Lender may invoke any of the remedies Permitted by the Security Instrument. (~<~57R (0008) Page 3 of 4 Form 3170 1/01 '49 BY SIGNING BELOW, Borrower accepts and agrees to fl~e terms and provisions contained in this 1-4 Fanfily Rider. RAY L HYD,~ -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) . (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (~57R (0008) Page4 of 4 Form 3170 1/01