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HomeMy WebLinkAbout893886ReturnTo: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 Prepared By: WELLS FARGO HOME MORTGAGE, INC. 893886 RECEIVED LinCOLN COLII'4TY CLERK 1919 DOUGLAS,, OMAHA, 681010000 NE i, ,r 5;36 "E OOk* PR PAG~ [SI)ace Above Tiffs Lhte For Recordhtg Data[ 345 MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and oilier words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means tiffs document, which is dated SEPTEMBER 22, 2003 together with all Riders to this document. 01) "Borrower" is JAMES R. STEPHENS AND JOANN E. STEPHENS, HUSBAND AND WIFE Borrower is the mortgagor under this SecUrity Instrument. (C) "Lender" is ~ELLS FARGO HOME MORTGAGE, INC. Lender is a CORPORATION ' ' orgalfized and existing under die laws of THE STATE OF CALIFORNIA 0028163814 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 Lender's address is P.O. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated SEPTEMBER 22, 2003 The Note states that Borrower owes Lender FOUR I-IUNDRED Tg/ENTY THOUSAND ~ 00/100 Dollars (U.S. $ * * * * 420,000.00 ) plus interest. Borrower has promised to pay tiffs debt in regular Periodic Payments and to pay the debt in full not later than OCTOBER 01, 2033 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [-~ Adjustable Rate Rider ~ Condominium Rider [--] Second Home Rider ~ Balloon Rider [--] Plato]ed Unit Development Rider [~] 1-4 Fanfily Rider [~] VA Rider ~] Biweekly Payment Rider ~ Other(s) [specify] (ti) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all apPlicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a trat~qaction originated by check, draft, or sinfilar paper instrument, which is initiated flrrough 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 linfited 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) "Miscellaneons Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any tlfird party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of conde]m~atiou; or (iv) misrepresentatiorks of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender agai~kst 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 i~nplementing regulation, Regulation X (24 C.F.R. Part 3500), as they ndght be amended from time to time, or any additioml 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} Iooos} pag~ 2 of l S / ~ · Form 3051 1/01 347 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or tlfis Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument seem'es to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the perfommnce of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, BorrOwer does hereby mortgage, grant and convey to Lent]er and Lender's successors and assigns, with power of sale, the tbllowing described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] 'SEW. -T-I-T4.~-~14t~-I-T44EN-T EXHIBIT A *SEE ADJUSTABLE .RATE RIDER TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, BOX 10304, DES MOINES, IA 503060304 INC., P.O. Parcel ID Number: 1546 STEWART TRAIL ETNA ("Property Address"): which currently has the address of [Streetl [City] , Wyonfing 83118 [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 file property. All replacements aud additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfidly seised of the estate hereby conveyed and has the right to mortgage, grant and convey tile Property and that the Property is unencmnbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and de~nands, subject to auy encumbrances of record. THIS SECURITY INSTRUMENT combines mfiform covenants for national use and non-mfiform covenants with limited variations by jurisdiction to constitute a u~fiform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as tbllows: 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 fimds tbr Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be ~nade in U.S. currency. However, if any check or other instrunlent received by Lender ~p~//lent miSer file Note or this 348 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note axd 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, in~strumentality, or entity; or (d) Electrolfic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept auy 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 payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower Inakes 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 inm~ediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from nraking payments due under the Note and this Security Instrument or perforating 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 Lender shall be applied in the tbllowing 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 iu which it became due. AW remaining amounts shall be applied first to late charges, second to any other amounts due uuder this Security h~gtrument, and then to reduce the priucipal balance of file Note. If Lender receives a payment from Borrower for a delinqueut Periodic Payment which includes a sufficient amount to pay any late charge due, the payment ]nay 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 repayment of tile 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 iu the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under file Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds rot Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, uutil the Note is paid iii full, a sum (fl~e "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) prenfiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance preufiums, if aw, or auy sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These itenks are called "Escrow Items." At origination or at any time during the term of the Loan, Lender ~nay require that Cmmnunity Association DueS,. Fees, and Assessments, if any, be escrowed by Borrower, and such dues, tees 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 unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligati°n to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver niay only be ill writing, in the event of such waiver, Borrower shall pay directly, when and where payable, the amounts (~-6(Wy} Iooos} P~ 4 o~ ~s 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 payment within such period as Lender may require. Borrower's obligation to make such payments and to provide receipts for all purposes be deemed to be a covenant and agreement contained in this Security Instru~nent, as file "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items dire~:tly~ pursuant to a waiver, and Borrower/'ails to pay the amount due for an Escrow Item, Lender may ;rcise 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 may 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 to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at an3~ time, collect and hold Funds in an amount (a) tcient to permit Lender to apply file Funds at the time specified ruder RESPA, and (b) not to exceed the tmximum amount a lender can require under RESPA. Lender shall estinmte file amount of Funds due o the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise accordance with Applicable Law. The Funds shall be held in an institution whose deposits are .nsured by a federal agency, instrumentality, or entity (including Lender, if Lender is au iustitution deposits are so ii,surer) or in any Federal Home Loan Baltk. Lender shall apply the Funds to pay the Itmns no later than the time specified under RESPA. Lender shall not charge Borrower for holding applying the Funds, almually analyzing the escrow account, or verifying file Escrow Items, unless ts Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless n agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall be required to pay Borrower any interest or earnings on file Funds. Borrower and Lender can agree ii writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without char an ammal accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrowl as defined under Lender shall account to Borrower for file excess funds ill accordance with RESPA. If there is a rtage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defil RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 payments. Upon payment in full of all sums secured by tiffs Security Lender shall promptly refund to Borrower ally Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, attributable to file Property which can attain priority over this Security Ins ground rents on file Property, if any, and Conmmnity Association Dues, the extent that these items are Escrow Items, Borrower shall pay them in Borrower shall prmnptly discharge any lien which has priority over Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a mamaer acceptable to Lender, but only so long as Borrower is performing such agreement; contests the lien in good faith by, or defends against'enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of file lien while those proceedings are pending, only until such proceedings are concluded; or (c) secures from file holder of the lien an agreement to Lender subordinating file lien to this Security Instrument. If Lender determines that any part of Property is subject to a lien which can attain priority over this Security hkstrument, Lender may give ~rrower a notice identifying file arges, fines, and impositions leasehold payments or and Assessments, if ally. To maimer provided in Section 3. ' Security Instrument unless Initi~ 6(WY) Iooos} P.g. 6 o~ ~s 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 witlfin the term "extended coverage," and any other hazards including, but not linfited to, earthquakes and floods, for wlfich Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing fl~e insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised um'easonably. Lender ]nay require Borrower to pay, in cmmection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone detemfination 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 the payment of any fees imposed by tbe Federal Emergency Management Agency in com~ection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is uuder no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but nfight or nfight not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage than was previously ni effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance flint 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 frmn the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting paylnent. All insurance poficies 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 tbrm 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 ]mt' made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insura]me proceeds, whether or not the underlying insurance was required by Lender, sball be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has 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 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 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 econonfically feasible or Lender's security would be lessened, the insurance proceeds sball be applied to the sums secured by this Security hkstmment, whether or not then due, with tI~}~-6{WY) (0005} pag~ ~ o~ ~s Form 3051 1/01 the excess, if any, paid to Borrower. St~ch insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond witlfin 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires file Property under Section 22 or otherwise, Borrower hereby assigns to Leuder (a) Borrower"s rights to any insurance proceeds in an amount not to ex':ced the amounts unpaid under the Note or this Security Instrument, and (b) any off,er of Borrower's rights (other than the right to any refund of unearned prenfiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. OccuPancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably wiflfl~eld, or unless extenuating circuntgtances 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 conmtit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is deterufined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall Promptly repair the Property 'if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the. Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasom~ble 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 file direction of Borrower or with Borrower's la~owledge or consent gave materially 'false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in com~ection with the Loan. Material representations include, but are not linfited 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 pe~:tbrm the covenants and agreements contained in this.Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in file Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for conde~m~ation or tbrfeiture, tbr enforcement of a lien which may attain priority over this Security Instrument or to entbrce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay tbr whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting'and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not liufited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (~-6,WY) ,ooos, Page7ol'15 ~~ ~Form 3051 1/01 352 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. SecUring the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditiOns, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender iucurs 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 fids Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such iuterest, upon notice fi'mn Lender to Borrower requesting payment. If this Security Instnunent 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 lee title shall not merge mdess Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Imurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such iusurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiun~s required to obtain coverage substantially equivalent to the Mortgage Insurance previously in 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 Irk~urance coverage is not available, Bon:ower shall conti~me 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 Iusurance. Such loss reserve shall be non-refundable, notwithstanding the Ihct that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower auy interest or eanfiugs 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 Insurance. If Lender required Mortgage Insuraoce as a condition of making the Loan and Borrower was required to nmke separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the prenfiums required to nmintaiu Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement lbr Mortgage Insurauce ends iu accordance with any written agreement between Borrower aud Lender providing for such ternfination or until termination is required by Applicable Law. NOthing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to ihe Mortgage Ilkqurance. Mortgage insurers evaluate their total risk on all such insurance in force fi'oln time to time, and umy enter into agreements with other parties that share or modify 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 make payments using any source of funds that the 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 any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive fi:om (or might be characterized as) a portion of Borrower's payments lbr Mortgage Insurance, iu exchange for sharing or modifying the mortgage insurer's risk, or reduciug losses. If such agreement provides that au affiliate of Leuder takes a share of the insurer's risk in exchange lbr 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, m' any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Bof-r~)y/e,r to any refund. (~-6(WYl(ooos) p~g~o~S Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if aoy - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such caucellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is 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 econonfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by fids Secm'ity Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the:Property in which the fair nmrket value of the Property innnediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument innnediately 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 immediately betbre the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property iunnediately 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 u~trket value of the Property innnediately before fl~e partial taking, destruction,' or loss in value is less than the amount of fl~e 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 fl~e sums secured by this Security Instrument whether or not fl~e sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower fl~at fl~e Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party fl~at owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. ' Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun fl~at, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in fl~e Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be disnfissed with a ruling fl~at, in Lender's judgment, precludes tbrfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are n°t applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. (~-6{WY) (ooosl Page g gl ~S Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Exteir4on of file time for payment or modification of amortization of the sums secured by this Security Instnlment granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release file 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 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 limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the a~nount then due, shall not be a waiver of or preclude the exercise of any fight or remedy. 1.3. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer ) (a) is co-signing this Security Instrument 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 file sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accmmnodations 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 Instrument in writing, and is approved by Lender, shall obtain all of Bmxower's rights and benefits under fllis Security Instrument. Borrower shall not be released fi'om Borrower's obligations and liability under fids Security Instrument mfless Lender agrees to such release in writing. The covenants and agreements of this Security hzstrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender [nay charge Borrower fees for services performed iu comlection with Borrower's default; for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not linfited to, attorneys' fees, property inspection and valuation tees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prolfibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that laxv is finally interpreted so that the interest or other loan charges collected or to be collected in com~ection with the Loan exceed die pernfitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce file charge to the pemfitted limit; and (b) any sums already collected from Borrower which exceeded pernfitted linfits will be refunded to BorrOwer. Lender may choose to make this refund by reducing the princiPal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund nmde 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 connection with this Security Iustrument must be in writing. Any notice to Borrower in cmmection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Bon'ower'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 promptly · 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 flint specified procedure. There may be only one designated notice address under this Security Im~trument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in com~ection wifl~ this Security Instrument shall not be deemed to have been given to Lender until actually received by Leuder. If any notice required by this Security h~strument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under tiffs SecuritY Ii~stmment. (~)~-6(WY) {ooosl Page lo or 15 Form 3051 1/01 355 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in fltis Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law nfight 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. In the event that any provision or clause of this Security Instrmnent or the Note conflicls 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 Se¢urity Instrument: (a) words of fl~e masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "my" 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 tiffs Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, rinse 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 tide 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 may require ium~ediate payment in full of all stuns secured by this Security Iustrument. However, tiffs 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 which Borrower nmst pay all stuns Secured by this Security Instrument. If Borrower Ihils 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 denmnd on Borrower. 19. Borrower's Right to Reiustate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument disconti~med 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 lbr the terufi~mtion of Borrower's right to reinstate; or (c) entry of a judglnent entbrcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrmnent and the Note as if no acceleration had occurred; (b) cures any default of any other covmmnts or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not linfited to, reaso~mble attorneys~ fees, property inspection and valuation tees, and oflmr tees incurred for the purpose of protecting Lender's interest in the Property and rights under tiffs Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement stuns and expenses in one or more of the tbllowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or caslfier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality m- entity; or (d) Electrmfic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall renmin fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or ~nore times without prior notice to Borrower. A sale nfight result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Ii~strument and performs other mortgage loan servicing obligations under the Note, tiffs Security Instrument, and Applicable Law. There also nfight be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the ~m~ne and address of the new Loan Servicer, the address to which payments should be made and any other infonnatiou RESPA (~-6(WY) 1ooo61 Page ~1 of ~s orm 3051 1/01 356 requires iii com~ection 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 rite 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 rite Note purchaser unless otherwise provided by the Note purchaser. . Neither Bon'ower nor Lender may commence, 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 aftbrded the other party hereto a reasonable period after rite giving of such notice to take corrective action. If Applicable Law provides a time period which nmst elapse before certain action can be taken, that time period will be deemed to be reasonable tbr 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 rite notice and opportmfity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substauces defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flanunable or toxic petroleum products, toxic pesticides and herbicides, volatile, solvents, nzaterials containiug asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or removal action, as defined in Enviromnental Law; and (d) an "Enviromnental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause or pernfit fl~e preseuce, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in rite Property. Borrower shall not do, nor allow anyone else to do, anything affecting the 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 rite presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recog~fized to be appropriate to normal rehdential 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 Enviromuental Condition, including but ]tot limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of rite Property. If Borrower learns, or is notified by any govennnental or regulatory authority, or any private party, that any'removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviro]m~ental Law. Nothing herein shall create any obligation on Lender for an Enviromnental Cleauup. (~-6(WY) moosl Page ~ of ~S Form 30,51 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrnment (but not prior to acceleration under Section 18 mfless Applicable Law provides otherwise). Tbe notice shall specify: (a) the default; (b) the action required to cure tbe 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 result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of tbe right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any otber defense of Borrower to acceleration and 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 witimut further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender sball 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 sball give notice of intent to foreclose to Borrower and to the person in possession of tbe Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and tbe Property simll 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 tbe person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by tiffs Security Instrument, Lender shall release tiffs 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 flfird party lbr services rendered and fl~e charging of fl~e tee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of fl~e homestead exemption laws of Wyonfing. 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: (Seal) -Borrower JO~N E. STEPHENS -Borrower (Seal) (Seal) -Borrower =Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 6(WY) (ooos! Pa0e 14 or lS Form 3051 1/01 359 STATE OF WYOMING, LINCOLN The foregoing instrument was acknowledged before me tiffs by JAMES R. STEPHENS AND JOANN E. STEPHENS County ss: 22nd day of September, 2003 My Commission Expires: February 2, 2006 &'qEII.EY ~. ~OlrARy PtJeUO (~)~-6GJWY} Iooos} Page 15 of 15 In?(~ ~Form 3051 1/Ol 3GO EXHIBIT A A tract of land located in the NWIA of Section 23, T36N Rll9W of the 6th P.M., Lincoln County, Wyoming, being more particularly described as follows: BEGINNING at the N ~,~ corner of said Section 23, where is found a brass cap inscribed "Nelson Engineering, Jackson, Wyoming 1/4 S-14/S-23, RLS 578"; thence S 89042'32'' W, 403.50 feet along the section line of said Section 23, to a point; thence S 00034'33'' E, 1493.29 feet to a point; thence N 40°39'51'' E, 190.87 feet to a point; thence N 51°12'58'' E, 353.37 feet to a brass cap inscribed "Nelson Engineering, Jackson, Wyoming, property corner, RLS 578"; said brass cap lying on the north-south centerline of said Section 23; thence N 00°34'33'' W, 1129.19 feet along said centerline of section to the POINT OF BEGINNING. 361 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Rate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is nutde this 22ND day of SEPTEMBER, , 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 salne date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to WELLS FARGO HOME MORTGAGE, INC. ("Lender") of the same date and covering the property described in the Secmity Instrument and located at: 1546 STEWART TRAIL, ETNA, WY 83118 [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 covenants and agreements ]nude in tl~e Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note providers for an initial fixed interest rate of 4.875 %. 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 monflt thereafter. The date on which my i~fitial 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." 0028163814 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Single Family - Fannie Mae Uniform Instrument [ II!11 II II 111111111 I IIII IIII ...... : ! ..;::::::::: :::!: i 362 (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on U~fited States Treasury securities adjusted to a constant maturity 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 me notice of fltis choice. (C) Calculation of Changes Before each Change Date, the' Note Holder will calculate my new interest rate by adding TWO AND THREW.-QUARTERS percentage points ( 2.75 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 linfits 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 deternfine the amount of the monthly payment that would be sufficient to repay tile unpaid 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 this 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 9.87 5 % or less than 2.750 %. 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 for the preceding 12 months. My interest rate will never be greater than 9. 875 %. (E) EffectiYe 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 the first monthly payment 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 chauges 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 change. 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 number 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 interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 1.8 of d~e Security Instrument shall read as follows: Initia~_~~ (~1~843R (0006) Page 2 of 4 Form 3182 1/01 : 63 Transfer of the Property or a Beneficial Interest in Borrower. As used in tiffs 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 tral~sfer 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 this Security Instrmnent. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender fl~all 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 secm'ed by this Security InStrument. If Borrower 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 demaud on Borrower. 2. When' Borrower's i~fitial fixed interest rate changes to an adjustable interest rate under the terms stated iu Section A above, U~fiform Covenant 18 of the Security It]strument described iu Section B1 above shall then cease to be in effect, and the provisions of Unitbrm Covenant 18 of d~e Security h~,~trmnent shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in tiffs Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but uot li~nited to, those beneficial interests transferred iua bond for 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 auy 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 ia 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. Leuder also shall not exercise this option if: (a) Borrower causes to be subnfitted to Lender information.required by Lender to evaluate the intended transferee as if a new loan were being made to the trausferee; 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 auy covenant or agreement in this Security Instrument is acceptable to Lender. To the extent pernfitted 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 agreement that is acceptable to Lender and that obligates the transferee to keep all the pronfises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and fids Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require iunnediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi'om the date the notice is given in accordance with Section 15 wiflfin which Borrower must pay all (~843R (0006) Page 3 of 4 Form 3182 1/01 sums secured by tiffs Security Instrument. If Borrower 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in riffs Fixed/Adjustable Rate Rider. -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~843R (0006) Page 4 of 4 Form 3182 1/01