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HomeMy WebLinkAbout89351504018328 Return To: Principal Residential Mortgage, Inc c/o Affiliated Computer svcs 4153 220 St, Urbandale, IA 50323-2314 PrePared By: Jereray COX Principal Residential Mortgage~ Inc 6200 ParkAve, Des Moinee, IA 50321 Phone Nut. er: (800) 962-3350 893515 2317947-6 [Space Above Tiffs Line For Recording Data[ MORTGAGE MIN 100026600023179471 115 2317947 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this dOculnent are also provided in Section 16. (A) "Security Instrmnent" means this document, which is dated togefl~er with all Riders to this docmnent. (B) "Borrower" is Karen G. Fett, an unmarried person August 29, 2003 Borrower is file mortgagor under tiffs Secm'ity lnstrulnent. (C) "MERS" is Mortgage Electrmfic Registration Systenls, Inc. MERS is a separate corporation flat is acting solely as a nonfinee tbr Lender and Lender's successors and assigns. MERS is the mortgagee nnder this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS (~®-6A(WY) Iooo5,m s: ~// Page I of 15 Initial VMP MORTGAGE FORMS - (8001521-7291 91453885 Form 3051 1/01 (D) "Lender"is Principal Residential Mortgage, Inc Lender is a Corporation organized and existing under tile laws of the State of Iowa Lender's address is 711 High Street, Des Moines, IA 50392 (E) "Note" aleaus tile pronlissory note signed by Borrower and dated August 29, 2003 The Note states that Borrower owes Lender Fifty Three Thousand Five Hundred Sixty Eight and 00/100 Dollars (U.S. $ 53,568.00 ) plus interest. Borrower has proufised to pay this debt in regular Periodic Payments and to pay the debt in full not later than September 1, 2033 (19 "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means file debt evidenced by the Note, plus interest, ally prepayment charges and late charges due under the Note, and all sums due under this Security fustrument, p/us interest. (H) "Riders" means all Riders to this Security Instnunent that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~] Condomi~fium Rider [~] Second Home Rider [~] Balloon Rider [~] Plam~ed Unit Development Rider [---] 1-4 Family Rider ~] VA Rider [~ Biweekly Paylnent Rider [~ Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative roles and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condonfi~fium association, homeowners .association or similar organization. (K) "Electronic Funds Transfer" means ally transfer of funds, other than a transaction originated by check, draft, or similar paper instmnmnt, which is initiated through an electrmfic terminal, telepholfic instrument, cmnputer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit all account. Such term includes, but is not limited to, point-of-sale transfers~ automated teller machine transactions, transfers ilfitiated by telephone, wire transfers, and automated cle~iringhouse transfers. (L) "Escrow ItemS" means those items that are described in Section 3. (Mi) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) /-or: (i) damage to, or destruction of, the Property; (ii) condenmatiou or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or onfissions as to, the Value and/or condition of the Property. (IN) "Mortgage Insurance" means insurance protecting Lender against file nonpaynlent of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) auy amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they ufight be amended from time to time, or any additional or successor legislation or regulation that governs the same subject nmtter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions flint are imposed in regard to a "federally related mortgage loan" even if file Loan does not qualify as a "federally related mortgage loan" under RESPA. initials.- ~/' ~ ~"? (~}~-6A(WY) (ooom.o~ Page 2 ot ~S Form 3051 1/01 (Q) "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 Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of fl~e Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenauts and agreements under this Security Instrmnent and the Note. For this purpose, Borrower does hereby nmrtgage, grant and convey to MERS (solely as nonfinee l'br Lender and Leuder's successors and assigns) and to the successors and assigns of MERS, with power of sale, file tbllowing described property located in the County of Lincoln : ]Type of Recording Jurisdiction] [Name of Recording Jurisdiction] Lot 22, nees Subdivision, according to the official plat of record in the office of County Clerk, Lincoln COunty, Wyoming. ParcelID Number: 37182040302200 165 Pine Street, Alpine ("Property Address"): which currently has the address of [Streetl [City] , Wyolifing 8 3 12 8 [Zip Coati 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 file foregoing is referred to in this Security Instrument as file "Property." Borrower understands and agrees that MERS bolds only legal title to the interests grauted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nonfinee tbr Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not linfited to, the right to tbreclose and sell file Property; and to take any action required of Lender iucluding, but not lilnited to, releasing and canceling fids Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of file 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 file title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines mfilbrm covenants /'or national use and non-mfiform covenauts with limited variations by jurisdiction to constitute a u~fiform security instrulnent covering real property. (~-6A(WY) loooslo'i P'me 3 oi' ~s Form 3051 1/01 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principnl, Interest, Escrow Items, Prepayment Chnrges, 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 lbr Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made 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 Instmnient 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) Electro]tic Funds Transfer. Payments are deemed received by Lender when received at the location designated iu the Note or at such oilier location as ]nay be designated by Lender in accordance with the notice provisions in Section 15. Lender ]nay return any payment or partial payment if the paynmnt or partial payments are insufficieot to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial paymeuts iu 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, fllen Lender need not pay interest on unapplied funds. Lender ]nay hold such unapplied funds until Borrower ~nakes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply Such fuods or return them to Borrower. It' not applied earlier, such funds will be applied to the outstanding principal balance under the Note inuuediately prior to foreclosure. No olivet or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or pertbrufing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as Otherwise described in this Section 2, all payments accepted and applied by Leoder shall be applied in the fullowing 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 tiffs Security Instrmnent, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower lbr a delinquent Periodic Payment which includes'a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repaymeot of the Periodic Payiuents 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. Fnnds 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 sun] (the "Funds") to provide Ibr payment of amounts due for: (a) taxes and assessments and other items which can attaiu priority over this Security Instrument as a lien or encumbrance ou the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance preutiums, if any, or any sums payable by Borrower to Lender in lieu of fl~e payment of Mortgage Insurance preufiums in accordance with the provisions of Section 10. These items a,-e called "Escrow Items." At origination or at any. time during the term of the Loan, Lender' may require that Commmfity Association Dues, Fees, aud Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower sliall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds lbr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow lteutq. 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 iu writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts Initials:tT~/~ (~-6A(WY} {o0o51.o~ pag~ a o~ ~s Form 3051 1/01 6,i due tbr any Escrow Items for which payment of Funds bas been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. BorroWer's obligation to nmke such payments and to provide receipts shall t:br all purposes be deemed to be a covenant and agreement contained in this Secm-ity Iustrument, as the phrase "covenant and aereement" is used {n Sectiou 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay file amount due for an Escrow Item, Lender umy exercise its rights under Section 9 aud pay such amount and Borrower shall titan be obligated under Section 9 to repay to Leuder any such amount. Lender ,nay revoke file 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 Fuuds, aud in such amounts, that are then required under this Section 3. Lender nmy, at any time, collect and hold Funds in ail amount (a) sufficieut to permit Lender to apply the Fuuds at the time specified uuder RESPA, and (b) not to exceed the maximum amomlt a lender can require under RESPA. Lender .shall estimate the amount of Funds due on the basis of current data and reasomble esti~nates ot] expenditures of future Escrow Items or otherwise iu accordance with Applicable Law. : The Funds shall be held in an institution whose deposits are iusured by a federal agency, inm'umentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay fl~e Escrow Items no later than file time specified under RESPA. Lender shall not charge Borrower tbr holding and applying the Funds, ammally analyzing the escrow account, or verifying fl~e Escrow hems, unless Lender pays Bon'ower iuterest on fl~e Funds and Applicable Law pernfits Lender to make such a charge. Unless an agreement is made iu writing or Applicable Law requires interest to be paid on the Funds, Leuder shall not be required to pay Borrower any interest or eanfings on fl~e Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on file Funds. Lender shall give to Borrower, without charge, an alumal accounting of the Funds as required by RESPA. If fl~ere is a surplus of Fnnds held in escrow, as defined under RESPA, Lender shall account to Borrower for fl~e excess flmds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defiued uuder RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to nmke up the shortage in accordance with RESPA, but iu no more than 12 monthly payments. If fliere is a deficiency of Fuuds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender fl~e amount necessary to make up fl~e deficiency ill accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. BOrrower shall pay all taxes, assessments, charges, fines, and impositions attributable to fl~e Property wlfich can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Commmtity Association Dues, Fees, and Assessments, if any. To file extent that these items are Escrow ltems, Borrower shall pay them in the nmnner provided in Sectiou 3. Borrower shall prolnptly discharge any lieu which has priority over this.Secm-ity Instrument unless Borrower: (a) agrees in Writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is perfornfing such agreemeut; (b) contests the lien in good thith by] or defends against enforcement of the lien in, legal proceedings which iu Lender's opinion operate to prevent the enlrbrcement of the lien while those proceedings are pending, but only uutil such proceedings are concluded; or (c) secures fi'om fl~e holder of file lien an agreement satisfactory to Lender subordi~mting the lien to tiffs Security Instrument. If Lender deternfines that any part of the Property is subject to a lien which can attain priority over tiffs Security Instrument, Lender ~nay give Borrower a notice identifying file (~¥6A(WY) Ioooslm Pa~. s o~ ~S Form 3051 1/01 .t62 lien. Within 10 days of the date on which that not~ce is given, Borrower shall satisfy the lien or take one or more of tbe actions set forth above in fl]is 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 com~ection wifl] this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes aud floods, lot"which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for file 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 com~ection wifl~ this Loan, either: (ar a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably nfight affect such deternfination or certification. Borrower shall also be responsible for file payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender niay 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 nfight not protect Borrower~ Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and ][right provide greater or lesser coverage than was previously in effecL Borrower acknowledges that tim cost of the insurance coverage so obtained ufight significantly exceed the cost of insurance that Borrowe~- could have obtained. Any amouuts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at fl}e Note rate from the date o[ disbursement and shall be payable, with such interest, upon notice from Lender to BorroWer requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and 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 pre~niums and renewal notices. If Borrower obtains any lbrm 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 rile insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree itl writing, any insurance proceeds, whether or not the underlying insurance was 'required by Lender, shall be applied to restoration or repair of tile Property, if the restoration or repair is economically feasible and Leuder's security is not lessened. During such repair and restoration period, Lender shall have the right to hold snch insurance proceeds until Lender has had an opportunity to inspect such Property to ensure file work has been completed to Lender's satishction, 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 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 earnings on such proceeds. Fees lbr 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 tile sums secured by 01is Security Instrument, whether or not then due, with (~}~-6A(WY) Iooo5~.ol P*g. 6 o¢ 15 Form 3051 1/01 fire excess, if any, paid to Borrower. Such insurance proceeds shall be applied in fl~e order provided ~br in Section 2. If Borrower abandons tim Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond wiflfin 30 days to a notice fi-om Lender that i~qurance cagier has oft~red to settle a claim, fl~en Lender may negotiate and settle ~e claim. The 30-day period will begin when fl~e notice is given. In eifl~er event, or if Lender acquires fl~e Property under Section 22 or ofl~erwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under fl~e Note or tiffs Security Instrument, and (b) any ofl~er of Bo~ower's rights (oilier fl~an fl~e right to any re,nd of unearned prenfiums paid by Borrowe0 under all insurance policies covering fl~e Property, insothr as such rights are applicable to fl~e coverage of fl~e Property. Lender may use fl~e insurance proceeds eifl~er to repair or restore fl~e Property or to pay amounts unpaid under fl~e Note or this Security Iustmment, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use ~e Property as Borrower's principal residence wiflfin 60 days after the execution of tiffs Security Instrument and shall conti]me to occupy fl~e Property as Borrower's priucipal residence fi)r at least one year atier fl~e date of occupancy, mfless Lender o~erwise agrees in writing, which consent shall not be um'easotmbly wiflflmld, or mdess extmmating · circmnstances exist which are beyond Borrower's control. 7. Preservation, Mainteuance and ~otection of the ~operty; Inspections. Bo~ower shall not destroy, danmge or impair the Property, allow fl'm Property to deteriorate or conunit waste on the Property. Whefl~er or not Borrower is residing iu file Property, Borrower shall maintain fl~e Property in order to prevent fl~e Property from deteriorating or decreasing in value due to its condition. U]fless it is deternfined pursuant to Section 5 flint repair or restoration is not econonfically t~asible, Borrower shall promptly repair the Property if danmged to avoid Mrther deterioration or danmge. If insurance or condenmation proceeds are paid in connection with daumge to, or fl~e taking of, file Property, Borrower shall be responsible for repairing or restoriug ~e Property oxfly if Lender has released proceeds for such pm'poses. Lender may disburse proceeds Ibr the repairs and restoration iu a single payment or in a series of progress payments as ~e work is completed. If ~e insurance or condemnation proceeds are not sufficient to repair or restore fl~e Property, Borrower is not relieved of Borrower's obligation fbr fl~e completion of such repair or restoration. Lender or its agent may nmke reasomble entries upon and inspectiou~ of file Property. If it has reasotmble cause, Lender may inspect fl~e interior of tim iinprovements on fl~e Property. Lender shall give Borrower notice at fl~e time of or prior to such an interior inspection specilying such reasonable cause. 8. Borrower's Loau Application. Borrower shall be in de/hult if, during the Loan application process, Borrower or any persons or entities acting at file direction of Borrower or with Borrower's knowledge or consent gave tnaterially false, misleading, or itmccurate intbrmation or statements to Lender (or lhiled to provide Lender wifl~ material in/brnmtion) in connection wifl~' the Loan. 'Material representations include, but are not linfited to, representations concerning Borrower's occupancy of fl'~e Property as Borrower's principal residence. 9. Protection of Lemler's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to pedBnn the covenants and agreements contained in this Security Instrument, (b) fl]ere is a legal proceeding fl~at might sig]fificantly aft~ct Lender's interest in fl~e Property and/or rights under tiffs Security Instrument (such as a proceeding in bat~mptcy, probate, fi)r conde]mlation or IbrI~iture, fi~r enforcement of a lien which may attain priority over tiffs Security Instrument or to entBrce laws or regulations), or (c) Borrower has abandoned fl~e Property, ~en Lender may do and pay Ibr whatever is reasotmble or appropriate to protect Lender's interest in the Property and rights under riffs Security Instrument, including protecting and/or assessing file value of file Property, and securing and/or repairing the Property. Lender's actions can include, but are not linfited to: (a) paying any sums secured by a lien which has priority over ~is Security h~strument; (b) appearing in court; arid (c) paying reasonable ~6A(WY) 100o5).0~ P~eTot lS Form 3051 1/01 attorneys' fees to protect its interest in file Property aud/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing fl~e Property includes, but is not limited to, entering fl~e Property to make repairs, change locks, replace or board up doors and windows, drain water t3om pipes, eliminate building or off,er code violations or dangerous conditions, aud have 'utilities turned on or off. Alfl~oUgh 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 fliat Lender incurs no liability for not taking any or all actions authorized under tiffs Section 9. Any amounts disbursed by Lender under Otis Section 9 shall beconm additional debt of Borrower secured by tiffs Security Instrument. These amounts shall bear interest at fl~e Note rate t)om the date of disbursement and shall be payable, wifll such interest, upon notice fi'om Lender to Borrower requesting payment. If tiffs Security Instrument is on a leasehold, Borrower shall comply wifll all file provisions of lease. If Borrower acquires fee title to file Property, fl~e leasehold and fl~e fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of nmking file Loan, Borrower shall pay the prenfiums required to maintain file Mortgage Insurance iu eft~ct. If, for any reason, fl~e Mortgage Insurance coverage required by Lender ceases to be available from fl~e mortgage insurer fl~at previously provided such insurance and Borrower was required to make separately designated payments toward the prenfiums for Mortgage Iusurauce, Borrower shall pay tim premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to fl~e cost to Borrower of ~e Mortgage Insurance previously in'effect, from au alternate mortgage insurer selected by Lender. I[ substantially eqnivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender die amount of fl~e separately designated payments fllat were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain fl~ese payments as a non-refundable loss reserve in lieu of Mortgage Insurance.' Such loss reserve shall be nou-rehmdable, notwifl~standing the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or eartfings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in file amount and lbr file period fllat Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward fl~e pren5ums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making file Loan and Borrower was required to make separately designated paynrents toward fl~e prenfiuu~s for Mortgage Insurance, Borrower shall pay fl~e prenfiums required to mai~tain Mortgage Insurance in effect, or to provide a non-rethndable loss reserve, until Lender's requirement lbr Mortgage Insurance ends in accordance wifl~ any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Noflfing iu ~is Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity fl~at purchases the Note) for certain losses it may incur if Borrower does not repay fl~e Loan as agreed. Borrower is not a party to fl~e Mortgage hlsurance. Mortgage insurers evaluate their total risk on all such insurance iu force t)om time to time, and may enter into agreements with off, er parties flint share or modify their risk, or reduce losses. These agreements are on terms and conditions fl~at are satisfactory to tim mortgage insurer and the oflmr party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of hnds that fl~e mortgage insurer may have available (which may include funds obtained from Mortgage Insurance prenfiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or auy affiliate of any of fl~e foregoing, may receive (directly or indirectly) amounts fl~at derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange Iht sharing or modi/~ing fl~e mortgage insurer's risk, or reducing losses. If such agreement provides flint an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the prenfiums paid to fl~e insurer, fl~e arrangement is often termed "captive reinsurauce." 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 Bor~r~r ~ any refund. Initials~) t/ ~ ~6A(WY) (ooosho~ P~ge 8 of ~S Form 3051 1/01 J.'G 5 (b) Any such agreements will uot affect the rights Borrower has - if auy - with respect to the Mortgage lnsurauce under the Hmneowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premimns that were unearued at the time of such cancellation or terruination. 11. Assigmnent of Miscellaneons Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have die right to hold such Miscellaneous Proceeds until Lender has had an opportmfity to inspect such Property to ensure the work has been completed to Lender's satisfaction,' provided fllat such inspection shall be undertaken promptly. Lender nniy pay Ibr the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is ]rmde in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Bon'ower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not econonfically feasible or Lender's security would be lessened, die Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, widi the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided lbr in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the stuns secured by this Security Instrument, whether or not then due, with die excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which die fair market value of the Property inmlediately betbre the partial taking, destruction, or-loss in value is equal to or greater than the amount of the sums .secured by this Security Instrument immediately before die partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Iustrumeut shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the /'air market value of die Property innnediately before the partial taking, destruction, or loss iu 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 thir market value of the Property innnediately before the partial taking, destruction, or loss iu value is less dian die amount of die sums secured i]mnediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to die sums secured by diis Security Instrument whether or not the stuns 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, Bon'ower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply die Miscellaneous Proceeds either to restoration or repair of die Property or to the sums secm'ed by this Security instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaueous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or crinfinal, is begtm that, in Lender's judgment, could result iu tbrfeiture of the Property or other nmterial impairmeut of Lender's interest in die Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reiustate as provided in Section 19, by causing the actiou or proceeding to be dismissed with a ruliug that, in Lender's judgment, precludes forfeiture of the Property or other inaterial impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for danntges 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. (~)~-6A(WY) (ooos}m Pag~ 9 o~ ~5 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 this Security Instrument granted by Lender to Bo]tower 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 conunence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortizafion of file sums secured by this Security Instrument by reason of any demand made by the origin',fl Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without liudtation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer'): (a) is co-siglring this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the tenus of this Security Instrument; (b) is not personally obligated to pay the sums secured by fids Security hlstrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, 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 the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security fustrmnent in writing, and is approved by Lender, shall obtain all of Borrower's rights aim benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations aim liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security histmment shall bind (except as provided in Section 20) aim benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower tees for services performed in cmmection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not linfited to, attorneys' fees, property inspection aud valuation fees. In regard to any other fees, the absence of express authority in fids Security Instrument to charge a specific lee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximmn loan charges, and that law is finally interpreted so fi]at the interest or other 10an charges collected or to be collected in com]ection with the Loan exceed the perufitted limits, then: (a) aoy such loan charge shall be reduced by. the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted linfits will be refunded to Borrower. Lender may choose to make this refund by reducing die principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, die reduction will be treated as a partial prepayment without any prepayment charge. (whether or not a prepayment charge is provided lbr under die Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in cmmection with this Security Instrument must be iu writing. Any notice to Borrower in cmmectioa with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall prompfiY notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall tuffy report a change of address through fi]at specified procedure. There m;iy be only one designated notice address uoder fids Security Instrument at any one time. Any notice to Lender shall be given by deliveriog it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security histrument shall not be deemed to have bee]] given to Lender until actually received by Lender. If any notice required by fi]is Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security lustrument. {~)~-6A{WY) IooosLo~ P~? mo~ ~5 Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrmnent shall be governed by federal law and the law of file jurisdiction in which file Property is located. All rights and obligations contained in this Security instrument are subject to any requirements and linfitations 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 constnled as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrumeut or thc Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security hlstrument or tile Note which can be given effect without the conflicting provision. As used in this Security Instnm~ent: (a) words of file masculine gender shall mean and inchtde corresponding neuter words or words of the feminine gender; (b) words in file siugular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without ally obligation to take any action. 17: BorroWer's Copy. Borrower shall be given oue copy of the Note and of this security Instrument. 18. Transfer of tile 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 linfited to, those beneficial interests transferred in a bond tbr deed, contract tbr 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 file 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' may require inm~ediate 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 t¥om the date file notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security ]nstrumeut. If Borr°wer fails to pay these sums prior to file expiration of this period, Lender may invoke any remedies permitted by this Secm'ity Instrmnent 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 enibrcement of this Security Insu~ment discontinued at any time prior to the earliest of: (a) five days betbre sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify tbr the termination of Borrower's right to reinstate; or (c) entry of a judgment entbrcing this Secm-ity Instrument. Those. conditions are that Borrower: (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 entbrcing this Security Instrument, including, but not linfited to, reasonable attorneys' fees, property inspection and valuation fees, and other tees iucurred for the purpose of protecting Lender's interest in the Property and rights uuder this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security instrument, and Bon'ower's obligation to pay the sums secured by this Security Instrument, shall conti~me unchanged. Lender may require that Bm-rower 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, iusU~mentality or eutity; or (d) Electrolfic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleratiou had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest ill the Note (together with this Security Instrumen0 can be sold one or more times without prior notice to Borrower. A sale nfight result ill a change in the entity (known as file "Loan Servicer") that collects Periodic Payments due under the Note aud this Security Instrument and pertbrms other morteaee loan servicing obligations nuder file Note, this Security Instrument, and Applicable Law. There also~gbt be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of file Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other infurmation RESPA Initial$.'~ J~ (~-6A(WY) {ooo51.o~ Page ~ o~ is Form 3051 1/01 requires in connection with a uotJce of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer otber than die 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 ]lot assumed by the Note purchaser mfless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be .joined to any judicial action (as either an individual litigant or the ]nember 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 aflbrded 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 deenmd to satisfy the notice and oppormxfity 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. Enviromnental Law and the following substauces: gasoline, kerosene, other flauunable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" means federal laws and laws of the jurisdiction where the Property is located fl]at relate to health, safety or envirmm]ental protection; (c) "Enviromnental Cleauup" iucludes auy response action, remedial action, or removal action, as defined in Enviromnental Law; aud (d) an "Envirmm~ental Condition" means a coudition that can cause, contribute to, or otherwise trigger an Envirolm~ental Cleanup. 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 the Property (a) that is in violation of any Envirmm~ental 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 small quantities of Hazardous Substa~mes that are generally recog,ized to be appropriate to normal resideutial uses and to maintenance of the Property (including, but not linfited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any govermnental or regulatory agency or private party involving the Property and any Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any Environ]nental Condition, including but not linfited to, any spilling, leaking, discharge, release or fl~reat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects fl~e value of tim Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or off, er remediation of any Hazardous Substance affecting die Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Euviromnental Law. Nothing herein shall create any obligation ou Lender Ibr an Enviromnental Cleanup. (~;}~-6A(WY) (ooos).o~ Peg~ ~z of ~s Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remetlies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may resolt in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration anti sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to tile person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower itl the manner provided in Section 15. Lender shall pnblish the notice of sale, anti the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may porchase 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 li]nited 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 ]nay charge Borrower a tee tbr releasing this Security Instrument, but o~dy if fire tee is paid to a third party for services rendered and file charging of fl~e fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyonfing. I~}~-SA{WY} Iooos>.o~ Page 13 of 15 Form 30,51 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: Karen G. Fett (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (~)<~6A(WY) 1ooo51.o~ p~e ~4 or ~5 Form 3051 1/01 t71 STATE OF WYOMING, Lincoln The tbregoing instrument was acknowledged before me this by Karen G. Fett, an unmarried person ~ County of ,~.t~ S~te ~ ~ Unc~ln ~ ~m~ My Comnfission 2xp~res: O~/~ ~ .... Nota~ ~blic County ss: i~-6A(WY) iooos~.o~ Page ! 5 of 15 Form 3051 1/01 2317947-6 .! 72 ADJUSTABLE RATE RIDER (1 Year LIBOR Index - Rate Caps) (Assumable after Initial Period) MIN 100026600023179471 THIS ADJUSTABLE RATE RIDER is made fills 29th day of August, 2003 , and is incorporated into and shall be deemed to alnend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of die same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note to Principal Residential Mortgage, Inc (the "Lender") of the stone date and covering the property described in fl~e Security Instrument and located at: 165 Pine Street Alpine, WY 83128 [Properly Address] THE NOTE cONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agremnents made in the Security Instrument, Borrower and Lender further coveoant and agree as lbllows: A. INTEREST RATE AND MONTttLY PAYMENT CHANGES The Note provides for an initial interest rate of 4. 375 %. The Note provides for changes in file interest rate and the monthly payments as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial interest rate I will pay may change on the first day of September, 2008 , and may change on that day every 12th monfl~ thereafter. Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER -1 Year LIBOR Index (Assumable after Initial Period) - Single Family - Freddie Mac UNIFORM INSTRUMENT (~856R (0108) Form 3177-/1~01~ VMP MORTGAGE FORMS - (8Oo)5J.I/-~2¢t31 !73 (B) The Index Begi~ming with the first Change Date, ~ny interest rate will be based on an Index. Tile "Index" is the one-year London Interbank Offered Rate ("LIBOR") which is the average of interbank offered rates for one-year U.S. dollar-denonfinated deposits in the London market, as published in The Wall Street JoutTtal. The ~nost recent Index figure available as of the date 45 days betbre each Change 'Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable intbrmation. The Note Holder will give me notice of this choice. (C) Calculation of Changes .. Before each Change Date, fl~e Note Holder will calculate n!y new interest rate by adding Two and 500/1000 percentage points ( 2.50O %) 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 file limits stated in Section 4(D) below, tiffs rounded amount will be my new interest rate until the next Chance Date. The Note Holder will then detemfine the amount of fl~e monflfly payment t~at would be sufficient to repay the unpaid principal that I am expected to owe at file Change Date in full on the nmmrity date at my new interest rate in substantially equal payments. The result of tiffs calculation will be file new amount of my monthly paYm~ent. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 6. 375 % or less than 2. 500 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more fllan cwo and 000/000 percentage point(s) ( 2. 000 %) from file rate of interest Ihave been paying tbr the preceding 12 months. My interest rate will never be greater than 9.375 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on fl~e first monthly payment date alter file Change Date until the amount of my monthly payment changes again. (~856R (Ol 08) Page 2 of 5 InitJals:~'~t/? Form 3148 1/01 (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment belbre the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a persou who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST 1N BORROWER . 1. UNTIL BORROWER'S INITIAL INTEREST RATE CHANGES UNDER THE TER3~IS STATED IN SECTION A ABOVE, UNIFORM COVENANT 18 OF THE SECURITY INSTRUMENT SHALL BE IN EFFECT AS FOLLOWS: Trausfer 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 fl~e 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 iutent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of file Property or any Interest ia the Property is sold or transferred (or if Bo;rrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require iunnediate payment iu full of all sums secured by this Security Instrument. However, this option shall uot 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 which Borrower must pay all sums secured by this Security Instrument. If Borr6wer fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. (~856R (0108) Page 3 of 5 Form 3148 1/01 2. AFTER BORROWER'S INITIAL INTEREST RATE CHANGES 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 UNIFORM COVENANT 18 OF THE SECURITY INSTRUMENT SHALL BE AMENDED TO READ AS FOLLOWS: 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 linfited to, those beneficial interests transferred iu a bond /bt deed, contract fur deed, instalhnent sales contract or escrow agreement, the intent of which is file '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 ~mtural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require inmlediate payment iu full of all 'sums secured by flits 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 infurmation required by Leuder to evaluate file intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably deterufines that Lender's security will not be impaired by the loau assumption and that file risk of a breach of any cove~ant or agreement in this Security Instalment is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a ~reasonable tee as a condition to Lender's consent to the loan assumption. Lender may also require die transferee to sign an assumption agreement that is acceptable to Lender and that obligates file transferee to keep all the pronfises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated m~der file Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require inunediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days the date the notice is given iii accordance with Section 15 within which Borrower nmst 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 this Security Instrument without further notice or demaud on Borrower. 08) Page 4 of 5 initials: ¢~~/-) Form 3148 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. Karen G. Fett (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~856R(O108) Page 5 of 5 Form 3148 1/01