Loading...
HomeMy WebLinkAbout894053After Recording Return To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Pr~ared By: TONI GANNISON 89t 853 REOF_IV£D LINCOLN COUNTy CLERK [Space Above This Line For Recording Data] 0003313022409003 [Doc ID tli] MORTGAGE MIN 1000157-0002913881-1 DEFINITIONS Words used in multiple sectmns of this document m'e defined below and other wor&q m'e defined in Sections 3, 11, 13, 18, 20and 21. Certain rules regarding the usage of words used in this docnment are also provided in Section 16. (A) "Security Instrmnent" means riffs document, which is dated SEPTEMBER 26, .with 'all Riders to this document. (B) "Borrower" is SAM A MORTON, AND JANE P MORTON, HUSBAND AND WIFE 2003 , together Borrower is the nmrtgagor under this Secnrity Instrumera. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a uominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security lnstrmnent. MERS is organized and existiug tinder the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, Mi 48501-2026, tel. (888) 679-NIERS. (D) "Lender" is COUNTRYWIDE HOME LOANS, INC. Lender is a CORPORATION organized and existing under the laws of NEW YORK Lender's address is 4500 Park Granada, Calabasas, CA 91302-1613 (E) "Nol:e" means the promissory note signed by Borrower aud dated SEPTEMBER 26, 2003 . The Note states that Borrower owes Lender SEVENTY FIVE THOUSAND .and 00/100 Dollars(U.S. $ 75,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in rill not later than OCTOBER 01, 2023 (F) "Property" means the property that is described below under tile heading "Transfer of Rights in the Property." WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS Page 1 of 11 (~®-6A(WY) (0005) CHL (08/00)(d) VMP MORTGAGE FORMS- (800)521-7291 CC)NV/VA In/l/als: FoUr 3051 1101 *23991 * * 033130224000002006A, DOC ID #: 0003313022409003 (G) "Loan" means the debt evidenced by the Note, plus iuterest, any prepayment charges and late charges due ~mder the Note, and all sums due under t!fis Security Instmmeut, plus interest. (tt) "Riders" means all Riders to this Security Instrument that are executed by Bon'ower. The following Riders m'e to be executed by Borrower [check box as applicable]:' ~] Adjustable Rate Rider [~ Condominium Rider [~ Second Home Rider ['~ Balloon Rider [~ Plauned Unit Development Rider ~ 1-4 Family Rider [--] VA Rider ~ Bi weekly Payment Rider ' [---] Otber(s) [specify] (I) "Applicable Law" means ~fll controlling applicable federal, state and local statutes, regulations, ordinances and administrative niles and orders (that have the effect of law) as Well as all applicable final, non-appealable judicial opinions. (J) "Commmfity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condonfinium association, homeowners association or similar organization. (K) "Electronic Fnnds Transl'er" means any u'ansfer of fimds, other than a transaction originated by check, dufft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is uot limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated cle,'n'inghouse trausfers. (L) "Escrow Items" means those items that ,'u:e described in Section 3. (M) "Miscell'aneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third pm'ty (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 condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Leuder against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the reguh'u'ly scheduled mnount due for (i) principal and iuterest under the Note, plus (ii) any amounts under Section 3 of this Security Insmunent. 0~) "RESPA" means the Real Estate Settlemeut Procedures Act (12 U.S.C. Sectiou 2601 et seq.) and its implementing regolation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'om time to time, or auy additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regm'd to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any pm'ty that has taken tide to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instnuneut and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and ~msigus) aud to the successors and assigns of MERS, with power of sale, the following described property .located in the COUNTY of LINCOLN : [Type of Recording Jurisdictionl [Name of Recording Jurisdiction] Lot 12 of Block 6 of the Lincoln Heights 4th Subdivision to the Town of Kemmerer, Lincoln County, Wyoming as described on the official plat thereof. ParcelDNumber: 23206085.00 1122 7TH WEST AyE, '" [Street/City} Wyoming 8 310 1-31 0 1 ("Property Address' ) [Zip Code] (~®-6A(WY) (ooos) CHL (08/00) Page 2 of 11 KEIV~qERER which currently has the address of Initials: ~~ Form 30§1 1t01 137 DOC ID #: 0003313022409003 TOGETHER WITH all the improvements now or here;flier erected on the property, m~d all easements, appurtemmces, and fixtures now or hereafter a pm't of the property. All replacements mid additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrnment as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instmtnent, but, if uecessary to comply with law or custom, MERS (as notninee for Lender and Lender's successors and assigns) has the right: to exercise any or tdl of those interests, including, but not limited to, the right to foreclose and sell tile Property; aud to take any action required of Lender including, but not limited to, releasing and cauceling this Security Insmunent. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencmnbered, except for encumbrances of record. BorrOwer warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. TItlS SECURITY INSTRUMENT combines uniform covenants for national use aud non-uniform covenants with linfited variations by jurisdiction to constitute-a uniform securit-y instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Pay~nent of Principal, Interest, Escrow Items, Prepay~nent Charges, and Late Charges. Borrower shall .pay when due the principal of, and interest ou, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bon:ower shall also pay fimds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However', if tiny check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the followiug forms, as selected by Leuder: (a) cash; (b) inoney 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, insu'umentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other locatiou 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 pay~nent or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of auy rights hereunder or prejudice to its rights to red,se such payment or partial payments m the l~ture, 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 makes payment to bring the Lom~ current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fimds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note m~d this Security lnstnmmnt or performing the covenants and agreements secured by this Security Insu'ument. 2. Application of Pay~nents or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such paymenm shall be applied to each Periodic Payment iu the order in which it beca~ne due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security hlstrument, and then to reduce the priucipal balance of the Note. If Lender receives a pay~nent from Borrower for a delinqueut Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent paymeut and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received fi'om Borrower to the repayment of the Periodic Paymeuts if, m~d to the extent that, each payment can be paid iu full. To the extent that any excess exists after the paymeut is applied to the fldl payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied ilrst to auy prepayment charges and then as described in the Note. Any application of paymeuts, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amountl of the Periodic Pay~nents. 3. Funds l)}r Escrow lte~ns. Borrower shall pay to Lender on tile day Periodic Payments are due under the Note, nntil the Note is paid in full, a sum (the "Fuuds") to provide for payment of'amounts due for: (a) taxes aud assessments and other items which can attaiu priority over this Security Instrument as a lien or encumbrance on dm Property; (b)leasehold paymeuts or ground rents on the Property, if auy; (c) premiums for any and ;ill insurance required by Lender under Section 5; and (d) Mo,'tgage I,lsurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums iu accord;race with the provisions of Section i0. These items are called "Escrow Items." At origination ox' at tory time during the term of tile Loan, Lender may require that Community Association Dues, Fees, aud Assessments, if any, be escrowed by Borrower, and such dues, tees and assessments shrill be an Escrow Item. Borrower sh~dl promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lendel: waives Borrower's obligatiou to pay the Fuuds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds tbr any or all Escrow InJlials: ~ 1~/0 I~®-6A(WY) (0005) CHL (08/00) Page 3 of 11 DOC ID #: 0003'313022409003 Items atany time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pity directly, when and where payable, the mnounts due for any Escrow Items for which payment of Funds has been waived b,y Lender and, if Lender requires, shall fln'nish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such Payments and to provide receipts shall for all purposes be deemed to be a covemmt and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Sectiou 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fitils to pay the amount due for an Escrow Item, Lender may exercise its fights under Section 9 arid pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Fnnds, aud in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Fnnds at the time specified under RESPA, and (b) not to exceed the maxilnum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasouable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Fnnds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Uuless an agreement is made in writing or Applicable Law requires interest to be paid on the Fnnds, Lender shall not be required to pay Borrower any interest or em'uings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Bon'ower, without ch,'u'ge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined undm' RESPA, Lender shall account to Bon'ower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in rio' more than 12 monthly pay~nents. If there is a deficiency of Funds held in escrow, as defiued muter RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, anti impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, it' any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these iteins are Escrow Items, Borrower shall paY them in the manuer provided in Sectiou 3. Borrower shall promptly dischiu'ge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by lhe lien in a manner acceptable to Lender, but only sc) long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Leuder's opiniou operate to prevent the enforcement of the lien while those proceedings m'e pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Secnrity Instrument. If Lender detertnines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date ou which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the te~m "extended coverage," and any other hazards including, but riot limited to, earthquakes and floods, for which Lender requires insurauce. This insurance shrill be maiutained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can chm~ge during the term of the Loan. The insurance career providing the insurance shall be chosen by Bon'ower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised nnreasonably. Lender may require Bon'ower to pay, in connection with this Loan, either: (a) a one-time charge for llood zone determination, certification and tracking services; or (b) a one-time thru'ge for flood zone determination and Certification services aud subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of auy fees imposed by Ihe Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails tO maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option arid Borrower's expense. Lender is tinder no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard Initials: '~~ (~®-6A(WY) (ooo5) GIlL (08ID0) Page 4 of 11 I 1/01 I39 DOC ID #: 0003313022409003 or liability and might prOvide greater or lesser coverage than was previously in effect. Bon:ower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insm'ance that Borrower could have obt~fined. Any amounts disbursed by Leader under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursemeut and shall be payable, with such interest, upon notice fl'om. Leuder to Borrower requesting payment. Ail insurance policies required by Lendm' 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 toss payee. Lender shall have the right lo hold the policies and reuewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and reuewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a staudm'd morlgage clause and shall name Lender as mortgagee and/or as an additiOnal loss payee. Iu the event of loss, Borrower shall give prompt notice to the insurance cra'tier and Leuder. Lender may make proof of loss if not made promptly by Borrower. Unless Lender :a~d Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insnrance was required by Lender, shall be applied to restoration or repair of the Property, if the restoratiou or repair is economically feasible and Lender's security is not lesseued. During such .repair and restoration period, Lender shall have the right to hold such iusurance proceeds uutil Lender has had an opportnnity to inspect such Property to ensure the work has been completed to Leader's satisfaction, provided that such inspectiou shall be uudertaken promptly. Lender may disburse proceeds' for the repairs and restoration in a siugle payinent or in a seres of progress payments as the work is completed, Unless au agreement is made in wriling or Applicable Law .requires interest to be paid on such iusurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for pu'blic adjusters, or other third parties, retmned by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligatiou of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the stuns secured by this Security Iustmment, whether or not then due, with the excess, if m~y, paid to Bon-ower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender xnay file, negotiate and settle any available insurance claim and related matters. If Bom)wer does not respoud within 30 days to a uotice from Lender that the insurance c,'u'rier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin When the notice is given. In either event, or if Lender acquires the Property uuder Sectiou 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in im amount not to exceed the amounts unpaid under the Note or this Secnrity Instrument, and d)) any other of Borrower's rights (other than the right to any refuud of ahem'ned premiums paid by Bon:ower) 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 mnonnts unpaid under the Note or this Security Instrumeut, whetlmr 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 Iustrument and shall continue to occupy the Property as Borrower's princip~d residence roi' at least one year after the date of occupancy, unless Lender otherwise agrees in wfidug, which consent shall not be um'easonably withheld, or unless extenuating circumstances exist which ,are beyond Bon'ower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, dmnage or impair the Property, ~fllow the Property to deteriorate or commit waste on Ire Property. Whether or not Borrower is residing in the Property, Bon'ower shall maiutain the Property in order to prevent the Property fi'om deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Bo,xower shall prompdy repair the Property if damaged to avoid fimher deterioration or damage. If insurance or condemnation proceeds m'e paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Propei-ty only if Lender has released proceeds for such puq)oses. 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 uot 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 improvemeuts on the Property. Lender shall give Borrower notice at the time of or prior to such au interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be m default if, during the Loau application process, Borrower or any persons or entities acting at the direction of Borrower or widi Borrower's knowledge or conseut gave materially false, misleading, or inaccurate inforluation o,' statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material rep,'esentations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's priucipal residence.. · (~®-§A(WY) (o0os) CHL (08/00) Initials: F~or 30~5 Page 5 of 11 1/01 DOC ID #: 0003313022409003 9. Protection of Lender's Interest in the Property and Rights Under this Secm'ity Instrument. if (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceediug that might significantly affect Lender's interest in the Property and/or rights under this Security Instrmnent (such as a proceeding in bauM-uptcy, probate, for condemnation or forfeiture, for enforcemeut of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's iuterest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing aud/or repairiug the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over Ihis Security Iustrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security lnstmn~ent, including its secured position in a bankruptcy proceeding. Secm'ing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or bom'd np doors and wiudows, 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 incurs no .liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender undo; this Section 9 shall become additional debt of Borrower secured by this Security h~sU'nment. These amounts shall bern' interest at the Note rate fi'om the date of disbursement and shall be payable, with such interest, upon notice fi'om Leuder to Bon-ower requestiug payment. If this Security Instrutnent is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee tide to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums requited to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be awfilable fi'om the mortgage insuter that previously provided such insurance and Bon'ower was required to make separately designated paymeuts tow,'u'd the p,'emiums for Mortgage Insurance, Borrower shall pay' the preinmms requited to obtain coverage substantially equivalent Io the Mortgage Insurance previously iu effect, at a cost substantially equivaleut to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the sep,'u'ately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these paylnents as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be .required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (m 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 premiums for Mortgage Iusurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-relimdable loss reserve, uutil Lender's requirement for Mortgage Insurance ends in accordance with m~y written agreement between Borrower and Lender providing for such termination or nntil termination is required by Applicable Law, Nothing in this Section 10 affects Bon'ower's obligation to pay interest at the rate provided m 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. Bon'ower is not a party to the Mortgage Insurance. Mortgage insuters evaluate their total risk 0n all such insurance in force from time to ti~ne, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements tu'e on terms and conditious that ,'u'e 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 fm~ds that the mortgage insurer ~nay have awfilable (which may include fxmds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any odmr entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) ;unounts that derive fi'om (or might be characterized as) a portion of Bon'ower's payments for Mortgage Insnrauce, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that au affiliate of Lender takes a share of the insurer's risk in exchange for a sh,'u'e of the premiums paid to the insurer, the an'angement is often tenued "captive reinsurance/" Fu,:ther: (a) Any such agreements will not affect the amounks flint Burrower bas agreed tn pay fur Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refnnd. (~®-6A(WY) (0005) CHL (08/00) Page 6 of 11 Initials: ~F~r 3~051 1/01 .14I DOC ID #: 0003313022409003 (b) Any such agreements will not affect the rights Borruwer has - :il' any - ~Sth respect to tile Mortgage Insurance under tile Humenwners Prntec/ion Act of 1998 or any other law. These rights may include the right to receive cerlain disclnsures, to reqnest and oblain cancellation of tile Morl:gage Insurance, to have tile Mo:rtgage Insurance terminated autmnatically, and/nv to receive a tel'and of any Mortgage Insurance prenfiums that were unearned at tile time nf such cancellation ~ r termination. 11. Assignment of Miscclhmeous Proceeds; Forfeiture. All Miscellaneous Proceeds arc hereby assigned to anti shall be paid to Lender. If tile Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the 'Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hohl such Miscellaneous Proceeds until Lender has had an oppommity 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 thc repairs and restoration in a single disbursemcm 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 socl~ Miscellaneous Proceeds, Lender shall not be required to pay Bon'owcr any interest or earnings on such Miscellancons Proceeds. If the restoration or repair is not economically feasible or Lender's secm'ity would be lessened, the Miscellaneous Proceeds shall be applied to thc sums secured by this Security Instrmncnt, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied m the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of thc Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then dne, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property ill which lhe fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amonnt of the snms secured by this Security Instminent immediately before the partial taking, desn'uction, or loss in value, un]ess Bor,'ower and Lender otherwise agree itl writiug, the stuns secured by this Secnrity Instrument shall be rednced by the amount of the Miscellaneous Proceeds nmltiplied b'y the following fraction: (a) the total amount of the sums secured immediately before the pm:rial taking, destruction, or loss in value divided by 09 the fair ~nm'ket value of the Property immediately before the partial taking, destruction, or loss in wdue. Any balance shall be paid to Borrower. In the event of a pa,:tial taking, destruction, or loss in value of the Property m which the fait' market value of the Property immediately before the partial takiug, destruction, or loss iu value is less than tile amount of the sums secured immediately before the partial taking, destruction, or loss in wdue, unless Borrower and Lender otherwise agree in writing, the Miscellaneons Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Bol'rower, or if, after notice by Lender to Borrower that the Opposing Pm~y (;ts defined in the next sentence) offers to make an award to settle a claim for damages, Bon'ower fifils to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Mi,qcellaneous 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" nmans the third pm-ty that owes Borrower Miscell,'meous Proceeds or the pm'ty against whom Borrower has a nuht of action in regm'd to Miscellaneous Proceeds. Borrower shall be in defimlt if any action or proceeding, whether civil or criminal, is begun that, Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate ;ts provided m Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or clai~n for damages that m'e attributable to the impairment of Lender's interest .in the Property ;u'e hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that m'e not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Bon'ower. Lender shall not be required to commence l)roceedings agaiust troy Successor in Interest of Bon'ower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason o£ any demand made by the original Borrower or au¥ Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy includiug, without limitation, Lender's acceptance of pay~nents from third persons, entities or Successors in Interest of Borrower or in mnounts less than the amount theu due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint aud Several Lialfility; Co-signers; Successors and Assigns Bonnd. Borrower covenants and agrees that Borrower's 0b]igations ,'md 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) i.s co-signing this Security i~® Initials: ~L FoUr 3~05 -6A(WY) (0005) CHL (08/00) Page 7 of 11 1/01 DOC ID #: 0003313022409003 Instrument only to mortgage, grant and convey the co-siguer's interest in the Property under the terms of this Security Instrument; (b) is riot personally obligated to pay the stuns secured by this Security Instrument; arid (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Bo,:rower's obligations under this Security Instrumeut in writing, and is approved by Lender, shall obtain all of Borrower's rights arid benefits under this Security hlstrunient. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenauts and agreemeuts of this Security Iustrument shall bind (except as provided in Section 20) aud benefit the successors and assigus of Lender. 14. Luau Charges. Leuder may charge Bon'ower fees for services performed in connectiou with Borrower's defimlt, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but riot limited to, attorneys' fees, property inspection and valuation fees. In regard to any otber fees, the absence of express authority iai this Security Iustrument to charge a specific .fee to Borrower shall not be constnmd as a prohibition on the charging of such fee. Lender may not chm'ge fees that are expressly prohibited by 'this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan chm'ges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessm-y to reduce the chat'ge to the per,hitter limit; mid (b) any sums already collected fi'om Borrower which exceeded permitted limits 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 retired reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for uuder the Note). Borrower's acceptance of any such retired made by direct pa'yment to Borrower will constitute a waiver of any right of action Borrower lnight have at'ising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instruinent must be in writing. Aaly notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or wheu actually delivered to Borrower's notice address if sent by other means. Notice to any one Bon'ower shall constitute notice to tall 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 prolnptly notify Lender of Borrower's change of address~ If Lender Specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any uotice to Lender shall be given by delivering it or by mailing it by first class mail to Leuder's address stated herein uu]ess Lender has desiguated another address by notice to Borrower. Any notice iu couuection with this Security Instrnment shall not be deemed to have been given to Lender until actually received by Lender. If rely notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the correspouding requirement under this Security Instalment. 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 fights and obligations contained in this Security Instrument ,'n:e subject to auy requiremeuts and limitatio~is of Applicable Law. Applicable Law might explicitly or implicitly allow the pat'ties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisious of this Security Instrument or the' Note which can be giveu effect without the couflicting provision. As 'used in this Secnrity Insn'ument: (a) words of tile masculine gender shall mean and include con:esponding 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 "may" gives sole discretion without any obligation to take any action. 1.7, Borrower's Copy. Borrower shall be given one copy of the Note m~d of this Security Instrument. 18. Transfer of the Property or a Benelicial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beueficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales coutract or escrow agreement, the intent of which is the n'ansfer 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 trausferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or trausferred) without Lender's prior written consent, Leuder may require immediate payment in full of ,'ill sums secm'ed by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower flails 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. Initials: (~'"'"'F~._r m~3 ~ ~ (~®-6A(WY) (ooos) CHL (o8/oo) Page a of 11 51 1/01 .! 43 DOC TD #: 00033:1_3022409003 19. Borrower's Right to Reinstate After Acceleration. If Bon'ower meets certain conditions, Borrower shall have the right to have enforcement of this Security Insu'ument discontinued at any time prior to II~e earliest of: (a) five days before sale of the Property pursuant to any power of sale'coumiued in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of' Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Iusmnneut. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and tile Note as if no acceleration had occurred; (b) cores any default of any other covenants or agreements; (c) pays all expeoses incurred in eoforcing this Sccurity Instrument, including, but not limited to, reasonable attorneys' fees, property iuspection and valuation lees, and other fees incurred for tile purpose of protecting Lender's interest in the Property and rights under this Security Insmnnent; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and fights under this Security hmtrument, and Borrower's obligation to pay the sums secured by this Security Iustrument, shall contiuue unchanged. Lender may require that Borrower pay such reinstatement stuns and expenses in oue or more of the fi)llowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashie,"s check, provided any such check is drawn upon an restitution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Trmlsfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration bad occurred. However, this right to reinstate shall not apply in the case of acceleration uuder Section 18. 20. Sale o1' Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest iu tile Note (together with this Security hmtmment) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligatious under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the mnne and address of tile new Loao Servicer, the address to which payments should be made and any othm' infom~ation RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan serviciug obligations to Borrower will re~nain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by tile Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that m'ises 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 reasou of, this Security Instrument, until such Borrower or Lender has notified tile other p,'n'ty (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other pm'ty hereto a reasonable period after the giviug of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be token, that time period will be deemed to be reasonable for purposes of this pm'agraph. The notice of acceleration and opportmfity to cure given to Borrower pursuant to Section 22 ami the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action l)rovisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" ,'n'e those substances defined as toxic or hazm'dous suhstances, pollutants, or wastes by Environmental Law and the followiug substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials coutaining asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal htws aud laws of the jurisdiction where the Property is located that relate to health, safety or euvironment,-d protection; (c) "Environment;d Cleaoup" includes any response action, remedial action, or re~nov;d action, as defined in Environmental Law; and (d) an "Envil:onmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not canse or permit the presence, use, disposal, storage, or release of ;uly Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Bon'ower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazta'dous Substance, creates a condition that adversely affects the valoe of the Property. The preceding two sentences shall not apply to the presence, use, or.storage on the Property of small quantities of Hazm'dous Substances that are generally recogoized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, haz,'u'dous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatow agency or priwtte party involving the Property and any Haz,'u'dons Substance or l~nvironmental Law of which Borrower luts actual knowledge, (b) any Environmem;d Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazm'dons Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Bon'ower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower: shall promptly take all nccessm'y reinedial actions iu accord'ance with Environmental Law. Nothing herein shall create any obligation oil Lender for an Environmental Cleanup. ~®-6A(WY) (0005) CHL (08/00) Page 9 of 11 Initials: DOC ID #: 0003313022409003 NON-UNIFORM COVENANTS. Borrower mid Lender fnrther covenant ,and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration t'ollowing BorroWer's breach ot' any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 uuless Applicable Law provides otherwise). The notice shall speciry: (a) the del'ault; (b) the 'action required to cure the delhult; (c) a date, not less than 30 days l'rom the date the notice is given to Borrower, by which file dei'anlt must he cured; and (d) that l'ailure to cm:e tim default on or hel¥}re the date specilled in the notice may result in acceleration or the sums secured by this Security Instrument mid sale of file Property. The notice shall l'urther inform Borrower of tile right to reinstate al'let acceleration and the right to 1)ring a court action to assert fl~e non-existence o1' a derault or any other defense of Borrower to acceleration and sale. If the del'ault is not cured on or bel'ore the date specified in file notice, Lender at its option may reqnire immediate payment in hall of till sums secured by this Security Instrument without rurlher demaud and may invoke the power o1' sale and airy other remedies permitted hy Applicable Law. Lender shall he entitled to collect all expenses incurred in pursuing tile remedies provided in fids Section 22, including, hut not linfited to, reasonable attorneys' l'ees aud costs of title evidence. If Lender invokes the power ot' sale, Lender shall give notice of inleut to l'oreclose to Borrower and to the person in possession of the Property, il' different, iu accordauce with Applicable Law. Lender sliall give notice o[ the sale to Borrower iu the lnanner provided in Section 15. Lender shall puhlish the notice of sale, and file Property shall be sold ill the rammer prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied ill the l'ollowing order: (a) to all expenses o[ the sale, including, but not limited to, reasonable attorneys' lees; (b) to all stuns secured by flfis Security Instrunmnt; and (c) any excess to the person or persous legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may chm'ge Bon'ower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the chm'ging of the fee is pmrnitted under Applicable Law. 24. Waivers. Borrower releases and waives all ]sghts under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to the terms aud covenants contained in this Security Instrument ,and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) //S/~I A. HORTON -Borrower .]/tNE it.. MORTON -Borrower (Seal) -Bon'ower (Seal) -Borrowe[ (2~®-6A(WY) (ooo5) CHL (08/00) Page 10 of 11 Form 3051 1/01 145 STATE OF WYOMING, The foregoing instrument was acknowledged before me this by Sam A. Morton and Jane P. Horton DOC ID #: 0003313022409003 County ss: 26th day of September, 2003 My Commission Expires: February 2, 2006 Not~y Public (~®-6A(WY) (0005) CHL (08/00) Pagellot11 Initials: (:~ ~1/01