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HomeMy WebLinkAbout893887Recording requested by: Wells Far§o Bank N.A. Wells Fargo Home Equity 526 Chapel Hills Drive Colorado Springs, CO 80920 ' When recorded return to: Wel 1 s Fargo Bank N.A. Wel 1 s Fargo Services Co. Consumer Loan Servicing Center P.O. Box 31557 Billings, MT 59107-9900 State of Wyomh~g 893887 RECEIVED LINCO[.H COUNTY CLERK 03 SFP 2 6 ?M 1'- t, 3 'EOOK ~JGpRPAGa__ Space Above Ods Lh~e For Reeordh~g Date o MORTGAGE 65497363791998 (With Future Advance Clause) DATE AND PART[ES. The date of this Deed of Trust ("Security Instrument") is 22 September 2003 and the parties, their addresses and tax identification numbers, if required, are as follows: MORTGAGOR: JAMES R STEPHENS, AND JOANN E STEPHENS, WIFE HUSBAND AND o If checked, refer to the attached Addendum incorporated herein; for additional Mortgagors their signatures and acknowledgments. LENDER: Wells Fargo Bank N.A. 420 Montgomery Street San Francisco, CA 94104 CONVEYANCE. For good and valuable consideration, the receipt and Sufficiency of which is acknowledged, and to secure the Secured Debt (defined below) and Mortgager's perlbrrnance under this Security Instrument, Mortgagor grants, bargains, conveys, mortgages and warrants to Lender, with power of sale, the following described property: See attached Exhibit A The property is located in Li ncol n at 1546 STEWART TRAIL (County) (Address) ETNA , Wyoming 83118- 0000 (City) CZi1) Code) WYOMING - MASTER FORM MORTGAGE Page 1 o1' 8 LEWY1 (0210J VMP',"O,',-,:,*~': ~o.~.-{~oo~.~,-~o~ 20032467800022 366 Together with all rights, easements, appurtenances, royalties, nfineral rights, oil and gas rights, all water and riparian rights, ditches, and water stock and all existing and future impruvements, structures, fixtures, and replacements that may now or at any time in the future be part of the real estate described above (all referred to as "Property"). 3. M XIMUM OBLIGATION LIMIT. The total principal amount secured by fids Security Instrument at any one time shall not exceed $ 50,000.00 . Tlfis limitation of amount does not include interest and oilier fees and charges validly ~nade pursuant to this Security Instrument. Also, this limitation does not apply to advances made under the terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. 4. SECURED DEBT AND FUTURE ADVANCES. The term "Secured Debt" is defined as follows: A. Debt incurred under the terms of the prondssory note, revolving line of credit, contract, guaranty or oilier evidence of debt dated 9/22/2003 together with all amendments, extensions, modifications or renewals. The maturity date of the Secured Debt is 10/10/2013 B. All future advances from Lender to Mortgagor under such evidence of debt. All future advances are secured as if made on the date of this Security Instrument. Nothing in this Security Agreement shall constitute a cmmnitment to make additional or future loans or advances which exceed the amount shown iii Section 3. Any such conmfitment must be agreed to iii a separate writing. C. All sunrs advaoced and expenses incurred by Lender for insuring, preserving or oflmrwise protecting fl~e Property and its value and any other sums advmlced and expenses incurred by Lender under the temps of fids Security Instrument. 5. PAYMENTS. Mortgagor agrees tbat all payments under the Secured Debt will be paid when due and in accordance wifli the terms of the Secured Debt and this Security Instrument. 6. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or oilier lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lender any notices fl~at Mortgagor receives from the holder. C. Not to allow any modification or extension of, nor to request any~ future advances under any note or agreement secured by the lien docunmnt wiflmut Lender's prior written consent. 7. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due. Lender may require Mortgagor to provide to Lender copies of all notices flint such atnounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the'lien of the Security Instrument. Mortgagor agrees to assign to Lender, as reqnested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor or materials to maintain or improve the Property. 8. DUE ON SALE OR ENCUMBRANCE. Upon sale, transfer, hypofliecation, assigmnent or encumbrance, whether voluntary, involuntary, or by operation of law, of all or any part of the Property or any interest flmreiu, then at its sole option, Lender may, by written notice to Mortgagor, declare all obligations secured hereby inunediately due and payable, except to the extent that such acceleration for and in such particular circumstances where exercise of such a right by Lender is prohibited by law. 9. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property iii good condition and make all repairs flint are reasonably necessary. Mortgagor shall not conunit or allow any waste, impairment, or deterioration of the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor agrees that the nature of the occupancy and use Will not substantially change without Lender's prior written consent. Mortgagor will not pernfit any change in any lice~se, restrictive covelmnt or easement without Lender's prior written consent. WYOMING - MASTER FORM MORTGAGE LEWY2 Io2]o! Page 2 of ~] 20032467800022 ,J Mortgagor will notify Lender of all denmnds, proceedings, claims, and actions against Mortgagor, and of any loss or damage to the Property. Lender or Lender's agents may, at LendeFs option, enter the Property at any reasonable time fur the propose of inspecting file Property, Lender shall give Mortgagor notice at the time of or before an inspection specifying a reasonable pm'pose tbr the inspection. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 10. AUTHORITY TO PERFORM. If Mortgagor fails to perform arty duty or any of the covetmnts contained in this Security Instrument, Lender ~nay, without notice, perfurm or cause them to be performed. Mortgagor appoints Lender as attorney in /'act to sign Mortgagor's ~mme or pay any amount necessary tbr pertbrmance. Lender's right to perform for Mortgagor shall not create an obligation to pertbrm, and Lender's failure to perform will not preclude Lender fi'om exercising any of Lender's other rights under the law or tlfis Security Iustrument. If any construction on the Property is discontinued or ~mt carried on in a reasonable nkalmer, Lender may take all steps necessary to protect Lender's security interest in the Property, including completion of the construction. 11. ASSIGNMENT OF LEASES AND RENTS. Mortgagor irrevocably grants, bargains, conveys, mortgages and warrants to Lender as additional security all file right, title and to any and all existing or future leases, subleases, and any other written or verbal agreements for the use and occupancy of any portion of the Property, including any extensions, renewals, modifications or substitutions of such agreements (all referred to as "Leases") and rents, issues and profits (all referred to as "Rents"). Mortgagor will promptly provide Lender with true and correct copies of all existing and future Leases. Mortgagor nmy collect, receive, enjoy and use the Rents so long as Mortgagor is not in dethult under the terms of this Security Instrument. Mortgagor agrees that this assig~anent is i~mnediately effective between the parties to this Security Instrmnent. Mortgagor agrees that tiffs assigmnent is effective as to third parties when Lender takes affirmative action prescribed by law, and that this assignment will . remain in effect during any redemption period until file Secured Debt is satisfied. Mortgagor agrees that Lender nmy take actual possession of the property without the necessity of commencing legal action and that actual possession is deemed to occur when Lender, or its agent, notifies Mortgagor of default and demands that any tenant pay all future Rents directly to Lender. On receiving notice of default, Mortgagor will endorse and deliver to Lender any payment of Rents in Mortgagor's possession and will receive any Rents in trust for Lender and will not co~mningle the Rents with any other funds. Any amounts collected will be applied as provided iu this Security Instrument. Mortgagor warrants that no default exists under file Leases or auy applicable landlord/tmmnt law. Mortgagor also agrees to maintain and require any tenant to comply with rite terms of the Leases and applicable law. 12. LEASEHOLDS; CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. Mortgagor agrees to comply with file provisions of any lease if tiffs Security Instrument is on a leasel'told. If the property is a unit in a Condonfinium Project or is part of a Plam~ed Ulfit Development ("PUD"), Mortgagor agrees to the following: A. Obligations. Mortgagor shall perform all of Mortgagor's obligations under the Constituent Documents. The "Constituent Documents" are the: (i) Declaration or any other document which creates the Condonfinium Projects or PUD and any homeowners association or equivalent entity ("Owners Association"); (ii) by-laws; (iii) code of regulations; and (iv) other equivaleut documents. Mortgagor shall .promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Hazard Insurance. So long as the Owners Association nmintains, wifl~ a generally accepted insurance carrier, a "master" or "blanket" policy on the Condominium Project or PUD which is satisfactory to Lender and which provides insurance coverage in the amounts, tbr the periods, and against the hazards Lender requires, including fire and hazards included within the term "extended coverage," then Mortgagor's obligation under Section 19 to unfintain hazard insurance coverage on the Property is deemed satisfied to file extent that the required coverage is WYOMING - MASTER FORM MORTGAGE LEWY3 {0210) Page 3of 8 20032467800022 13. 14. provided by the Owner's Association policy. Mortgagor shall give Lender prompt notice of any lapse in required hazard insurance coverage. In the event of a distribution of hazard insurance proceeds in lieu of restoration or repair following a loss to Property, whether to the milt or to common elements, any proceeds payable to Mortgagor are hereby assigned and shall be paid to Lender for application to the sums secured by this Security Instrument, with any excess paid to Mortgagor. C. Flood Insurance. Mortgagor agrees to maintain flood insurance for the life of the Secured Debt ' wlfich is acceptable, as to form, amount and extent of coverage to Lender. D. Public Liability Insurance. Mortgagor shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. E. Condemnation. The proceeds of any award or claim for damages, direct or coosequential, payable to Mortgagor in colmection with any condemnation or other taking of all or any part of file Property, whether of the milt or of the conunon elements, or for any conveyance ill lieu ot' condeumation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 18. F. Lender's Prior Consent. Mortgagor shall not, except after notice to Lender and wifl~ Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandomuent or ternfi~mtion of the Condomittium Project or PUD, except for abandomnent or ternfination required by law in tim case of substantial destruction by fire or other casualty or in the case of a taking by condenmation or enfinent domain; (ii) any amenthnent to any provision of the Constituent Documents if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management by the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. G. Remedies. If Mortgagor does not pay condonfi~fium or PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this section shall become additional debt of Mortgagor secured by this Security Instrunmnt. Unless Mortgagor and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Secured Debt rate and shall be payable, with interest, upon notice froln Lender to Mortgagor requesting payment. DEFAULT. Mortgagor will be in default if any party obligated on the Secured Debt fails to make paylnent when due. Mortgagor will be in default if a breach occurs under the terms of this Security Instrument or any other document executed for the purpose of creating, securing or guarantying the Secured Debt. A good faith belief by Lender flint Lender at any time is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment or the value of file Property is impaired shall also constitute an event of default. REMEDIES ON DEFAULT. In some instances; federal and state law will require Lender to provide Mortgagor with notice of the right to cure or other notices and may establish time schedules for foreclosure actions. Subject to these lilaitations, if any, Lender nmy accelerate the Secured Debt and foreclose rids Security Instrument in a mamler provided by law if Mortgagor is in default. At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall becolne inunediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies provided by law, the terms of the Secured Debt, this Security Instrument and any related documents, including without limitation, tim power to sell the Property. All remedies are distinct, cunmlative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of or WYOMING - MASTER FORM MORTGAGE LEVVY4 (o2 lol Page 4 of 8 20032467800022 Lender's right to require complete cure of auy existing delhult. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 15. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when Prohibited by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagor breaches any covenant in this Security Instrument. MOrtgagor will also pay on demand auy amount incurred by Lender for insuring, inspecting, preserving or otherwise protecting the Property and Lender's security interest. These expenses will bear interest from the date of the payment until paid in full at the highest interest ~ate in effect as provided in the terms of the Secured Debt. Mortgagor agrees to pay all costs and expenses incurred by Lender in collecting, enforcing or protecting Lenders' rights and remedies under this Security Instrument. This amount ]nay include, but is not liufited to, attorneys' fees; court costs, and other legal expenses. This amount does not include attorneys' fees fur a salaried employee of the Lender. This Security Instrumeut shall remain in effect until released. Mortgagor agrees to pay for auy recordation costs of such release. 16. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Enviro]m~ental LaW means, without limitation, the Cmnprehensive Enviromnental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), and all off,er federal, state and local laws, regulations, ordimmces, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, enviromnent or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render file substance dangerous or potentially dangerous to the public health, safety, welfare or envirmunent. The term includes, without linfitation, any substances defined as "hazardous n]aterial," "toxic substances," "hazardous waste," or "hazardous substance" under any Enviromnental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous Substance is or will be located, stored or released on or in the Property. This restriction does not apply to sn]all quantities of Hazardous Substances that are generally recog]fized to be appropriate/hr the normal use and maintenance of the Property. B. EXCept as previously disclosed and acknowledged in writing to Lender, Mortgagor and every teuant have been, are, and shall remain in full compliance with any applicable Enviromnental Law. C. Mortgagor shall inunediately notify Lender if a release or threatened release of a Hazardous Substance occurs on, under or about the Property or there is a violation of any Enviromnental Law concenfing the Property. In such an event, Mortgagor shall take all necessary remedial action in accordance with any Environmental Law. D. Mortgagor shall innnediately notify Lender in writing as soon as Mortgagor has reason to believe there is any pending or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous Substance or the violation of any Enviromnental Law. 17. CONDEMNATION.' Mortgagor will give Lender prompt notice of any Pending or threatened action, by private or public entities to purchase or take any or all of the Property through condemnation, enfinent don]ain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for dan]ages cmmected with a condenmation or other taking of all or any part of the Property. Such proceeds shall be considered paymeuts and will be applied as provided in this Security Instrutnent. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, WYOMING - MASTER FORM MORTGAGE LEWY5 (o21o) Page § of B 20032467800022 -'D 18. INSURANCE. Mortgagor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably associated with file Property due to its type and location. This insurance shall be maintained in the amounts and for the periods ti~at Lender requires. The insurance career providing file insurance shall be chosen by Mortgagor subject to Lender's approval, wlfich shall not be um-easonably wifllheld. If Mortgagor fails to maintain the coverage described above, Lender may, at Leuder's option, obtain coverage to protect Lender's rights in tile Property according to the terms of tiffs Security Instrument. All insurance policies and renewals shall be acceptable to Lender and shall inm~ediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall inunediately give to Lender all receipts of paid premimns and renewal notices. Upon loss, Mortgagor shall give inmlediate notice to tile insurance carrier and Lender. Lender may ]]lake proof of loss if not made ilmnediately by Mortgagor. U~dess otherwise agreed iu writing, all insurance proceeds shall be applied to file restoration or repair of file Property or to the Secured Debt, whether or not then due, at Lender's option. Auy application of proceeds to principal shall ]lot extend or postpone the due date of tile scheduled payment nor change file amount of ally payment. Any excess will be paid to fl~e Mortgagor. If the Property is acquired by Lender, Mortgagor's right to any insurance policies and proceeds resulting from damage to fl~e Property before the acquisition shall pass to Lender to the extent of the Secured Debt innnediately before the acquisition. 19. ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and ilksurance iu escrow. 20. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor will provide to Lender upon request, any financial statement or information Lender may deem reasonably necessary. Mortgagor agrees to sign, deliver, and file any additional documents or certifications that Lender ]]lay consider necessary to perfect, conti]me, and preserve M0rtgagor's obligations under tiffs Security Instrument and Lender's lien status on fl~e Property. 21. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Security Instrument are joint and individual. If Mortgagor signs this Security Instrument but does not sign au evidence of debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secm'ed Debt. If this Security Instrument secures a guaranty between Lender and Mortgagor, Mortgagor agrees to waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation. These rights nmy include, but are not linfited to, any anti-deficiency or one-action laws. Mortgagor agrees that Lender and any party to flfis Security Instrument may extend, modify or make any change in the terms of this Security Instrument or any evidence of debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Security hkstmment. The duties and benefits of flfis Security Instrument shall bind and benefit the successors and assigns of Mortgagor and Lender. 22. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This Security Instrument is governed by tile laws of the jurisdicti:on in which the Property is located, except to the extent otherwise required by tim laws of the jurisdiction where tile Property is located. This Security Instrument is complete and fully integrated. Tlds Security hk~tmment may not be amended or modified by oral agreement. Any section in this Security hkstrument, attaclunents, or any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law expressly or impliedly permits the variations by written agreement. If any section of this Security Instrument camlot be enforced according to its terms, fllat section will be severed and will not affect the enforceability of the remainder of this Security Instrument. Whenever used, the singular shall include the plural and the plural the singular. The captions and headings of the sections of tiffs Security Instrument are for convenience olfly and are not to be used to interpret or define the ternkq of tiffs Security Instrument. Time is of the essence in this Security Instrmnent. In the event any section of this WYOMING - MASTER FORM MORTGAGE LEWY6 Io2,m P~. ~ o, ~ 20032467800022 371 23. 24. 25. Security Instrument directly conflicts with any section of the revolving line of credit agreement or promissory note referenced in Section 4, the terms and conditions of the revolving line of credit agreement or pronfissory note (as applicable), the arbitration agreement and the agreement to provide agreement or promissory note (as applicable), the arbitration agreement and the agreement to provide flood/property insurance, all of which I agree to by sig~fiug this Security Instrument, the terms and ~onditions of said documents aud not the Security Instrument shall control. NOTICE. U~xless otherwise required by law, any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Security Instrument, or as shown in Lender's records, or to any other address designated in writing. WAIVERS. Except to the extent prohibited by law, Mortgagor waives and right regarding the marshalling of liens and assets, and hereby releasiug and waiving all rights under and by virtue of the homestead exemption laws of this state. OTHER TEI~IS. If'checked, the following are applicable to this Security Instrmnent: ~-] Line of Credit. The Secured Debt includes a revolving line of credit provision. Although the Secured Debt may be reduced to a zero balance, this Security Instm~nent will remain in effect until released. ~-~ Construction Loan. Tiffs Security Instrument secures an obligation iucurred for the construction of an improvement on the Property. [-~ Fixture Filing. Mortgagor grants to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Property. This Security Instrument suffices as a financing statement and any carbon, photographic or other reproduction may be filed of record tbr pm'poses of Article 9 of the Unitbrm Conm~ercial Code. ~ Additional Terms. Home Asset Management Account Rider SIGNATURES: By siDfing below, Mortgagor agrees to the terms aud covmmnts contained in this Security Instrument and in any attachments. Mortgagor also acknowledges receipt of a copy of this Secmity I~ment on ~e date sta~d on page 1. t ~T~PffENS ~.g.o~ OAMES R'StEPHEN¢ Pa,~ No.,.~o. FOOANN mte Mortgagor Date Mortgagor Date Mortgagor Date Mortgagor Date Mortgagor Date Mortgagor Date WYOMING - MASTER FORM MORTGAGE LEWY7 1o2~01 Page 7 of B 20032467800022 372 ACKNOWLEDGMENT: (Individual) STATE OF WY COUNTY OF L1 nco1 n The foregoing instrument was acknowledged before me by 3AMES R STEPHENS, 30ANN E STEPHENS this 22nd day of September, 2003 Witness m,~apd an, d( ~ official seal. (Signature of Officer) / Notary P'ublic (Title of Officer) ~ ~ · NO?/~IY PUBUC My ConmfissionExpires: February 2. 2006 WYOMING - MASTER FORM MORTGAGE LEWY8 Io2~o! Page 8 of 8 20032467800022 373 EXHIBIT A A tract of land located in'the NW¼ of Section 23, T36N Rll9W of the 6th P.M., Lincoln County, Wyoming, being more particularly described as follows: BEGINNING at the N lA 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 89o42'32'. W, 403.50 feet along the section line of said Section 23, to a point; thence S 00o34'33.' E, 1493.29 feet to a point; thence N 40°39'51.' E, 190.87 feet to a point; thence N 51o12'58'' 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 00034'33'' W, 1129.19 feet along said centerline of section to the POINT OF BEGINNING. 374 HOME ASSET MANAGEMENT ACCOUNT {SM} RIDER TO MORTGAGE/DEED OF TRUST (Open end credit with ~-]fixed rate ~ variable rate interest) This Home Asset Managenient Account {SM} Rider is dated 9/22/2003 and is an antenchnent to the Mortgage or Deed of Trust ("Mortgage") of the stone date given by the undersigned, JAMES R STEPHENS, JOANN E STEPHENS (hereinafter "Mortgagor") to secure the borrower's EquityLine with FlexAbilitym Agreement with Wells Fargo Baatk, N.A. ("Lender") of the same date covering the property more particularly described in the Mortgage (the "Property"). In addition to the coveuants and agreements made in the Mortgage, Mortgagor and Lender further covenant and agree as follows: 1. The word "Note'', as used in the Mortgage and this Rider, refers to the EquityLine with FlexAbility s.~ Agreement and Home Asset Managmnent Account m Addendum to EquityLine with FlexAbility m. 2. Despite any lauguage to the contrary in the Mortgage, Mortgagor covenants that the Property is unencumbered, except for a first lien purchase money or refinance &purchase money encumbraame in the name of Wells Fargo Home Mortgage, Inc,, its affiliates, successors or assignees. 3: Paragraph number 4 of the Mortgage, which is captioned SECURED DEBT AND FUTURE ADVANCES is hereby deleted in its entirety and replaced by the following paragraph: SECURED DEBT AND FUTURE ADVANCES. The tern] "Secured Debt" is defined as follows: A. Debt incurred under the terms of the promissory note, revolving line of credit agreement, contract, gnaranty or other evidence of debt of saute date together with all amenthnents, extensions, modifications or renewals. The maturity date of the secured Debt is 10/10/2013 B. All future advances from Lender to the borrower under such evidence of debt, whether obligatory or discretionary. All obligatory future advances and advances to cure breeches of covenants contained in the Mortgage are secured as if made on the date of this security Instmmeut. Nothing in this Secnrity h~stmment shall constitute a commitment to make additional or future loans or advances which exceed $ 50,000.00 Hamaridr 042903 20032467800022 PAGE 1 375 C. All stuns advanced and expenses incurred by Lender for insuring, preserving, or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Security Instrument. D. The terms and conditions of the Note referenced in A above include, but are not limited to, a 10 year period for advances under a revolving line of credit. Except if this Note is secured by property located in the state of Te~messee, the parties have agreed that subject to certain qualifying conditions the Lender may extend the period for advances for another 10 years for a total of 20 years. Nothing in this Security h~strument shall constitute a connnitment to extea~d rite period for advances beyond the initial 10 year period. E. Borrower(s) and the Lender have agreed that subject to the satisfaction of certain qualifying conditions, the Credit Line Limit in the Note may be increased quarterly and/or a~mually. One of those conditions, inter alia, is tim borrower's maintenance of a first mortgage loan on the Property with Wells Fargo Home Mortgage, h~c., or one of its affiliates. (the "WFHM Loan"). All such increases, if any, shall increase tim amount of the Maxinmm Obligation Limit disclosed in Paragraph 4 (if the Mortgage is in Virginia the "total principal indebtness "in tie 3rd recital) and the current Credit Line Linfit described in Section 3 hereinabove fit the same amount(s). 4. The Note provides for a montlfly variable rate of interest expressed as a daily periodi~ rate equal to 1/365 of an annual rate of 0.500 plus the "Index Rate". The Daily Periodic Rate of FINANCE CHARGE may increase if the lfighest prime rate published in the Wall Street Journal Western Edition "Money Rates" table (fl~e "Index Rate") increases. The itfifial Daily Periodic Rate of FINANCE CHARGE is 0.01232877 Which corresponds to an initial ANNUAL PERCENTAGE RATE of 4.5 The ANNUAL PERCENTAGE RATE will never be more titan 18.00%. Any increase in Daily Periodic Rate may increase the minimmn monthly payments. 5.The ParagraPh which is captioned in the Mortgage, ESCROW FOR TAXES AND INSURANCE (which may be found as Paragraph 19, 20, 21, 23, 24, depending on the document) is hereby deleted in its entirety. ~ JAMES R STEPHEI~ ' Date J Date / Date D ate Date Date Date Date Hamaridr 042g03 20032467800022 PAGE 2