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HomeMy WebLinkAbout894495AfterRecording Retum To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prepared By: SHEILA POUNDS [Space Above This Line For Recording Data] FA10892M [Escrow/Closing ~] MORTGAGE RECEIVED !lrllxl00tH COUNTY OLERF, 0004068685110003 [Doc ID ~] DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11; 13, 18, 20 and 21. Cemfin rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated OCTOBER 10, with all Riders to this document. (B) "Borrower" is KIRK A ZABEL, AND BEVERLY J ZABEL, HUSBAND AND WIFE 2003 , together Bon:ower is the mortgagor under this Security Instrument. (C) "Lender" is COUNTRYWIDE HOME LOANS, INC. Lender is a CORPORJrTION organized m~d existing under the laws of NEW YORK Lender's address is 4500 Park Granada, Calabasas, CA 91302-1613 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated Note states that Borrower owes Lender NINETY SIX THOUSAND SIX HUNDRED /and 00/100 OCTOBER 10, 2003 . The Dollars (U.S. $ 96, 600.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in fall not later than NOVEMBER 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 Instm,nent, plus interest. WYOMING-SIngle Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~ Page 1 of 11 Initial (~®-6(WY) (0005) CHL (08/00)(d) VMP MORTGAGE FORMS- (800)521-7291 Form 3051 1/01 CONV/VA *23991* ' 040686851000002006-* 704 DOC ID #: 0004068685110003 (G) "Riders" means all Riders to this Security Instrument that are executed by Bon'ower. The following Riders are to be executed by Borrower [check box as applicable]: [-~ Adjustable Rate Rider ~] Condominium Rider ~-] Second Holne Rider [--] Balloon Rider ~-] Planned Uuit Development Rider ['~ 1-4 Family Rider ~ VA Rider [--~ Biweekly Payment Rider ['--] Other(s) [specify] (It) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative roles and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (1) "Com~nunity 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) "Electro~fic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit tm account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse trausfers. (K)."Escrow Items" means those items that are described iu Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, awm'd of damages, or proceeds'paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) datnage 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. .(M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a 'Tederally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor iu Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instruinent. 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 mid agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdictionl LOT 29-L-3 OF THE ROI, LING HILLS 1ST ADDITION TO THE CITY OF KEblMERER, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF Parcel ID Number: 12 21162 2 402 02 90 0 2018 BASIN DRIVE, [Street/City] Wyoming 83101 ("Property Address ) ' [Zip Codel KEMMERER which currently has the address of tI~}®~6(Wy) (ooo5) CHL (08!00) Page 2 of 11 Form 3051 1/01 7O5 DOC ID #: 0004068685110003 TOGETI-[ER WITH all the improvements now or here,'ffter erected on the property, and 'all easements, appurtenances, and £mtures now or hereafter a part of the property. All replacements and 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 lawfully seised of the estate hereby conveyed ,'md has the right to mortgage, grant and co~nvey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower wan'ants and will defend generally the title to the Property against all claims ,'md demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and nonmniform covenants with limited variations by jurisdiction to coustitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant ,and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepay/nent Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Insu'ument shall be made in U.S. currency. . However, if ,any check or other instrument received by Leuder as payment under the Note or this Secnrity Instrument is retorned to Lender unpaid, Lender may require that any or all snbseqnent payments due nnder the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified Check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Elec~'onic Funds Transfer. Payments ,are deemed received by Lender when received at the location designated in tile Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may rerurn any payment or p,'u:tial payment if the payment or partial pay~nents are insufficient to bring tile Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to retiree such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments m'e accepted. If each Periodic Payment 'is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender ~nay hold such nnapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fimds or return thetn 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 th'e fl~ture against Lender shall relieve Borrower from making payments dne under the Note and this Security Instrument or performing 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 following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it bec,'une due. Any remaining amounts shall be applied first to late charges, Second to any other amounts due uuder this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment fi'om Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay auy late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any pay~nent received frotn Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists ,after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described iu the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amonnts 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) preminms for any aud all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items m'e called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community AssOciation Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly fl~mish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Bon'ower's obligation to pay the Fonds for any or all Escrow Items. Lender may waive Bon'ower's obligation to pay to Lender Funds for any or all Escrow Ite~ns at any time. Any such waiver may only be in writing. Iu the event of Sucli waiver, Borrower shall pay directly, wheu and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender aud, if Lender requires, shall furnish to Lender receipts evidencing nitials: ~"1~'~ (~t®-6(WY) (0005) CHL (08/00) Page 3 of 11 Form 3051 l/O1 706 DOC ID #: 0004068685110003 such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shah for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, ;md Boffower fails to pay thc amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke tile waiver as to auy 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 Funds, and in such amounts, that are then required under this Section 3. Lender tnay, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed thc maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds duc on tile basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits arc insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Feder;fl Home Loan Bank. Lender shall apply the Funds to pay tile Escrow items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, ammally analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on tile Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on thc Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, Without charge, an annual accounting of the Funds as.required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower 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 tile amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 mouthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender tile 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 see. uteri by this Security Instn~ment, Lender shall promptly ref~und to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay al! taxes, assessments, charges, fines, and impositions attributable to thc Property which can attain priority over this Security Instrument, leasehold payments or ground rents ou the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items arc Escrow Items, Bon'ower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrumeut unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Bon'ower is performing such agreement; (b) contests tile lien in good faith by, or defends against enforcement of tile lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings m'e concluded; or (c) secures fi'om thc holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. if Lender determines 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 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 tile Property insured against loss by fire, hazards included within tile term "extended coverage," and any other hazards including, but not linfited to, earthquakes and floods, for which Lender requires insurance. This insurance sh,'fll be maintained in thc 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. Tile insurance, carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which fight shall not be exercised unreasonably. Lender may ,'eqnire Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and 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 any fees imposed by the Federal Emergency Management Agency in connection with tile review of m~y 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 under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in thc Property, or the contents of the Property, against any risk, hazard or Initials: ~I~."L. (~®-6(WY) (0005) CHL (08/00) Page 4 of 11 ' Form 3051 1/01 707 DOC ID #: 0004068685110003 liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed thfi cost of insurance that BorrOwer could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secnred by this Secnrity Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of snch policies shall be snbject to Lender's right to disapprove such policies, shall include a st,'mdard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is 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 paymeuts as the work is completed. Unless an agreemeut 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 insur,'mce proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lesseued, the insurance proceeds shall be applied to the stuns secured ~by this Security Instrument, whether or not then dne, with the excess, if any, paid to Borrower. Such 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 iusurance claim and related matters. If Borrower does not respond withiu 30 days to a notice fi'om Lender that the insurance carrier has offered to settle a cl,'fim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security I,~strument, and (b) auy other of Borrower's rights (other than the right to any refund of unearned premiums paid by Bon'ower) under all insnrance policies covering the Property insofar as such rights are applicable to the coverage of the Property. Lender may use the insnrance 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 Borrowe~ s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's princip',d residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which- consent shall not be unreasonably withheld~ or unless extenuating circumstances exist which are beyond Borrower's control. 7, Preservation, M,'fintenance and Protectiou of tile Property; Inspeclious. Borrower shall not destroy, damage or impair the Property, 'allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in orde,' to prevent the Property from deteriorating or decreasing in value due to its condition. Uuless it is determined 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 condemnatioa proceeds are paid in connection with dmnage 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 snch repair or restoration. Lender or its agent may make reasonable eutries upon and inspectious 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 an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during tile Loan application process, Borrower or any persons or entities acting at the direction of Bon'ower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in conuection with the Loan. Material representations include, but are not limited to, representations concerning Bon'oxver's occupancy of the Property as Borrower's principal residence. initials: (~®-6(WY) (O00S) CHL (08/00) Page 5 of 11 Form 3051 1/01 7O8 DOC ID #: 000z]068685110003 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrmnent. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in banh'uptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrmnent 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 interest in the Property and rights under this Security Instrument, including protecting and/or assessing the v~ue of the Property and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any stuns secured by a lien which has priority over this Security hmtmment; (b) appearing in court', and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights nnder 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 ddes not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incm's 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 deb[ of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge 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 required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to' make separately designated payments toward the premiurus for Mortgage insurance, Borrower shall pay the premiums 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 Leuder. If substantially equiv~ent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the anmunt 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 lien of MOrtgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in fifll, and Lender shall not be required to pay Borrower any interest or earnings ou such loss reserve. Lender can no longer require loss reserve paYments if Mortgage Insnrance coverage (in the alnount 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 Insurance. If Lender required Mortgage Insumuce as a condition of making the Loan and Borrower was required to make separately desiguated pay]nents towm'd the premiums for Mortgage Insurance, Borrower shall pay tile premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until the Leuder's requirement for Mortgage Insurance ends in accordance with auy written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Bon'ower'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 the Mortgage Insurance. Mortgage insurers evaluate thek total risk on all such insurance in force from time to time, and ~nay enter int° agremnents with other pm-ties 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 fi]nds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If snch agreement provides that an affiliate of Lender takes a share of the iusurer's risk in exchange fol' a share of tile premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will nnt afl'ect the mnounls that Borrower has agreed to pay for Mortgage Insnrance, or any other terms of the Loan. Snch agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. Initials:~ {~}®-6(WY) (0005) CHL (08/00) Page 6 of 11 Form 3051 1/01 709 DOC ID #: 0004068685110003 0D) Any such agreements will not affect the rights Borrower. ]las - il' any - with respect to the Mortgage Insurance under the Homeowuers Protection Act of 1998 or any other law. These rights may include tile right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance~ to have file Mortgage Insurance terminated automatically, and/or to receive a rebind of any Mnrtgage Insura,ce premimns that were unearned at rite time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shaJl 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 sha!l be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress paymenks 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 restoratiou or repair is not economically fea~sible or Lender's. security would be lessened, 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. 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 Instrnmeut, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in wdue of the Property in which the fair m,'u'ket value of the Property immediately before the p,'u'tial taking, destruction, or loss in value is equal to or greater thau the amount of the sums secured by this Security Instrument immediately before the par'rial taking, destnicti0n, 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 before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately 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 tide Property in which the fair mm'ket value of the Property immediately before the partial taking, destrnction, or loss iu value is less than the amonnt of the sums secured immediately before the partial taking, destn~ction, or loss in value, unless Borrower and Lender otherwise agree in Writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (a~s 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 tile Property or to the sums secured by this Security Instrument, whether or not then due. "OpPosing Party" means the third pm'ty tllat owes Borrower Miscellaneous Proceeds or the party against whom BesTower has a fight of action in regard to Miscellaneous Proceeds. Borrower shall b~-in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impaim~ent of Lender's interest in the Property or rights under this Security Instrument. Borrower eau cure such a default and, if acceleration has occurred, reinstate as provided in 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 claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the PropetXy 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 Bo~'ower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Insla'ument by reason of any demand made by tile original Borrower or any Successors iu Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of paymenl~s from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of auy right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants aud 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 Initials: I~)®-6(WY) (0005) CHL (08/00) Page 7 of 11 Form 3051 1/01 710 DOC ID #: 0004068685110003 Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrumeut; (b) is not personally obligated to pay the sums secured by this Security h~strument; mid (c) agrees that Lender and any other Borrower can agree to extend, modi£y, 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, auy 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 Borrower'S rights and benefits under this Security Instrument. Bon'ower shall not be released fi'om Borrower's obligations attd liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instruinent shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection ,and valuation fees. In regard tO any other fees, the absence of express authority in this Security Instnnnent 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 prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan chat'ge shall be reduced by the amount necessm'y to reduce the chat'ge to the permitted limit; and (b) any sums already collected from Bon'ower 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 refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any 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 when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall coustitute 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. Bon'ower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, theu 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 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 conoection With this Security Instrument shall not be dec,ned to have been given to Leuder until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Govertfing 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 are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibitiou against agreement by conu'act. In the event that any provision or clause of this Security Instrutnent or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security instrument or the Note which cau be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine geuder; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "inay" 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 this Security Iustrument. 18. Trans[er of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred itt a bond for deed, contract for deed, installment sales conn'act or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Propm'ty or any Interest in the Property is sold or transfen'ed (or if Borrower is not a natural person and a beneficial interest m Borrower is sold or transferred) with0nt Lender's prior written consent, Lender may require immediate payment itt fldl of all stuns secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bon'ower 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 within which Borrower must pay all sums secured by this Security Insu-ument. 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. (~®-6(WY) (ooo5) CHL (08/00) Page 8 of 11 Form 3051 1/01 DOC ID #: 0004068685110003 19. Borrower's Right to Reinstate After Acceleratiou. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) ent~7 of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any defitult of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees; property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest iii 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 sums and expenses in One or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change iff Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together'with this Security Instrument) 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 obligations under the Note, this Security Insu'ument, 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 name and address of the new Loan Servicer, the address to which payments should be tnade and any other information 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 servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may 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 troy provision of, or ,'my duty owed by re~son of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can'be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursnant to Section 22 and the notice of acceleration given to Borrower pursnant to Section 18 shall be deemed to satisfy tlie notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hfi~ardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum produc[s, toxic pesticides and herbicides; volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jnrisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Enviroutnental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, dne to the presence, use, or release of a Hazardous Substance, creates a condition that adverselY affects the value of the Property. The preceding two seutences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized robe appropriate to normal residential uses and to maintenance of the Property (including,-but not limited to, hazardous substances in consnmer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and' (c) any condition caused by thepresence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower 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 necessary remedi,-fl actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. Initials: '~'~ ~.'~_ ' 1I~)®-6(WY) (0005) CHL (08/00) Page9 of 11 Form 3051 1/01 712 DOC iD #: 0004068685110003 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Reinedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any Covenant or agreen]ent in this Security Instrument (but not prior to acceleration under Section 18 mfless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days h'om the date the notice is given to Borrower, by which the default nmst be cured; and (d) that failure to cure the default on or before the date specified in the notice may result iu acceleration of the stuns secured by this Security Instrument and sale of fl~e Property. The notice shall further inform Borrower of the right to reinstate after acceleratiou and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cnred on or before the date specified in the notice, Lender at its option may reqtdre immediate payment in lhll of all sums secured by this Security Instrnment without li~rtber demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be eutitled to collect all expensas incurred in pursuing file remedies provided in this Section 22, including, but not li~nited t.o, reasonable attorneys' fees' and costs of title evidence. I1' Lender invokes file power of' sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession olY the Property, if dill'erent, 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 tile Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase tie Property at any sale. The proceeds 0f the sale shall be applied in the following order: (a) to all expenses of the sa]e, including, but not limited to, reasonable attnrneys fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all slims secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the ch~ging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to tile reruns and covenants contained in this Security Instrument ;md ill any Rider executed by Borrower and recorded with it. Wimesses: BEVERLY J. Z~.~~ (Se~) -Bo~ower (Seal) -Bo~owe[ (Seal) I~}®-6(WY) (0005) CHL (08/130) Page 10 of 11 Form 3051 1/01 STATE OF WYO~G, The foregoing instrument was acknowledged before me this by Kirk A. Zabet and Beverly J. Zabel. DOC ID 10th day 713 #: 0004068685110003 Lincoln County ss: of O~tober, 2003 My Commission Expires: March 12, 2005 Not,.u:y Public (~®-§(WY) (ooo5) CHL (08/00) Page 11 of 11 Initials: Form 3051 1/01 ' 714 [Space Above This Line For Recordh]g Data] HXED/ADJUSTABLE RATE RIDER (LIBOR Twelve Month Index - Rate Caps) After Recording Return To: COUNTRYWIDE HOME LOANS, INC. MS SV'79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prepared By: SHEILA POUNDS FA10892M [Escrow/Closing #] 0004068685110003 [Doc ID #] THiS FIXED/ADJUSTABLE RATE RIDER is made this TENTH day of OCTOBER, 2003 , and is incorporated iuto and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned CBorrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to COUNTRYWIDE HOME LOANS, INC. CLender'~)~fthesamedateandc~veringthepr~pe~VdescribedintheSecurity~nstmmentand~catedat: 2018 BASIN DRIVE KEMMERER, WY 83101 [Prope~y Address] CONV ,~ · ARM Fixed Pedod LIBOR Rider 2U652-XX (04/01)(d) Page ~ of 4 Initials:~..~.__ *23991* ' 04 068685 1000002U6 52' 71 5 DOC ID #: 000q068685110003 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 made i.n the Security Instrument, Borrower and Lendei: further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLy PAYMENT CItANGES The Note provides for an initial fixed interest rate of 5.250 for change in the initial fixed rate to an adjustable interest rate, as follows: %. The Note also provides 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 NOVEMBERt 2008 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (13) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the average of interbank offered rates for twelve tnonth U.S. dollar-denominated deposits in the London mm:ket, as published in the The Wall Street .Iottrnal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs 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 this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO & ONE-QUARTER pementage points ( 2. 250 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded ,'unount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the 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 paymen[s. 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 7. 250 % or less than 3. 250 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by ~nore 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 11. 250 %. · (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on 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 changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any 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 regm'ding the notice. CONV · ARM Fixed Pedod LIBOR Rider 2U652-XX (O4/01) Page 2 of 4 Initials: ~ ~"t~ DOC ID #: 0004068685110003 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 18 of the Security Instrument shall read as follows: Transfer of tlm Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If ,all or any part of the Property or any Interest in the Property is sold or u'ansferred (or if Borrower is not a natural person and a beneficial interest in Bon'ower is sold or transferred) withont Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is g~ven in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 2. iWhen Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section BI above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any pm't 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 ii1 Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all stuns secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes · to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreemeut in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the trausferee to keep all the promises and agreements made in the Note and m this Security Insu'ument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require i~nmediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days h'om the date the notice is given in accordance with Section 15 within which Borrower must pay all stuns secured by this Security Instrumeut. If Borrower fifils to pay these sums prior to the expiration of this period, Lender [nay invoke any remedies permitted by this Security Instn~ment without further notice or demand ou Borrower. CONV · ARM Fixed Period LIBOR Rider 2U652-XX (O4/01) Page 3 of 4 717 DOC ID #: 0004068685110003 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider, (Seal) K IRK - Borrower A. ZABEI~ (Seal) - Borrower (Seal) - Borrower (Seal) - ]~ OrrOWC[ CONV · ARM Fixed Period LIBOR Rider 2U652-XX (04/01) Page 4 of 4