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HomeMy WebLinkAbout894600Return To: HOMBCOMINGS FINANCIAL iWBTWORK, INC ONB MBRIDIAN CROSSING, STP. 100 MINNEAPOLIS, MN 55423 Loan Number: 041-869282-8 89h 00 Prepared By: HomeComings Financial Network 14850 Quorum Drive, Suite 500 Dallas, TX V5254 RECEIVED LINCOLN COUNTY CLERK 03 OCT 20 ?M 3:35 134 i-gOOK5 9 P PAGB. [Space Above Tiffs Lhte For Recordh~g Data] MORTGAGE MIN 100062604186928281 DEFINITIONS Words used in multiple sections of dfis document are defined below and other words are defined in Sections 3, I1, 13, 18, 20 and 21. Certain rules regarding the usage of words used in riffs document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated OCTOBER 14TH, together with all Riders to dfis document. (B) "Borrower" is CODY I,UTHI /~IqD RONDA D. ~I,UTHI, HUSBAND JkND WIFE 2003 Borrower is fl~e mortgagor under fids Security Instrument. (C) "M2ERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a uonfinee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number 0f P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS MFWY7770 (11/00) / 041-869282-8 (~)®-6A(WY) ,ooos,.o~ ~.~ Page 1 of 15 Initials:~'~ VMP MORTGAGE FORMS - (800}521-7291 Form 3051 1/O1 135 "Lender" is HOMECOMINGS F~INANCIAL NETWORK INC. Lender is a CORPORATION organized and existing under the laws of DEI~WARE Lender's address is 14850 QUORUM DRIVE, SUITE 500 DALLAS, TX 75254 (E) "Note" means the promissory note signed by Borrower and dated OCTOBER 14TH, 2003 The Note states that Borrower owes Lender SEVENTY SIX THOUS3JxlD AND NO/100 Dollars (U.S. $ 76,000.00 ) pitts interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than NOVEMBER 1ST, 2018 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges aud late charges due under the Note, and all sums due under this Security Instrument, plus interest. (Il) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The ibllowing Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~-~ Condominium Rider [-~ Second Home Rider [-~ Balloon Rider ~ Planned Unit Develop~nent Rider ~] 1-4 Family Rider [-~ VA Rider ~ Biweekly Payment Rider ~ Other(s) [specifyl (1) "Applicable Law" means all controlling applicable federal, state and loqal statutes, regulations, ordinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are in]posed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" ~neans arty 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 an account. Such term includes, but is not liufited to, point-of-sale transfers, autonmted teller machine transactions, transfers initiated bY telephone, wire transfers, and autonmted clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any fltird party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) coudenmation or other taking Of ail or any part of the Property; (iii) conveyance in lieu of ~ondenmation; or (iv) misrepresentations of, or onfissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against rite nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any mnounts under Section 3 of this Security Instrument. (P) "RESPA" means rile 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 saute subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. MF'WY7770 (11/00, , 041-869282-8 ,nm-~,~-~: ~J° {~-6A(WY) {0005).01 Page 2 of 15 Form 3051 1/01 136 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assmned Bon'ower'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 Instrument 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 assigns) and to the successors and assigns of MERS, with power of sale, the tbllowing described property located in the COUNTY of LINCOLN : '[Type of Recordiug Jurisdictiou] [Name of Recording Jurisdiction] Legal description attached hereto and made a part hereof ParcellD Number: 35193320031600 5434 COUNTY ROAD 125 FREEDOM ("Property Address"): which currently has the address of , [Street] [City] , Wyoming 8 312 0 [Zip Codel TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtmmnces, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security InsU-ument. All of the foregoing is referred to in this Security Instrument as tim "Property." Borrower understands and agrees that MERS holds olfly legal title to the interests granted by Borrower in this SecUrity Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has fl~e right: to exercise any or all of fl~ose interests, inCluding, but not limited to, fire right t9 foreclose and sell the Property; and to take any action required of Lender i~mluding, but not linfited to, releasing and canceling this Security Ins tmment. 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 ibr encumbrances of record. Borrower warrants and will defend generally fl~e title to the Property against all claims and denmnds, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. MFWY7770 (11/00) / 041-869282-8 (~d6A(wY) Iooos~ol Page 3 of 15 Form 3051 1/01 137 UNIFORM COVENANTS. Borrower and Lender covenant and agree as Ibllows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any · prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be ~nade in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or ,Iris' 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 nmde in one or more of the following tbrms, 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. Payments are deenred received by Lender when received at the location designated in the Note or at such other location as nmy be designated by Lender in accordance with the notice provisions in Section 15. Lender nmy return any payment or partial payment if the payment 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 any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender ~nay hold such unapplied 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 funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note i~mnediately prior to foreclosure. No offset or claim which Borrower nfight have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or pertbrming the coveimnts 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 pay~nents shall be applied to each.Periodic Payment in the order in which it became due. Any renmining amounts shall be applied first to late charges, second to any other amounts due under this Security Instm,nent, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which ilmludes a sufficient amount to pay any late charge due, the payment nmy be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender nmy apply any payment received from Borrower to file 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 ()ne or more Periodic Payments, such excess nmy be applied to any late charges due. Voluutary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, ilrmrance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the anrount, 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 stun (the "Funds") to provide for payment of amounts due tbr: (a) taxes and assessments and oilmr items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) prenfiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurauce premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance prenfiums in accordance with the provisio~m of Section 10. These items are called "Escrow Items." At origi~mtion or at any time during file term of the Loan, Lender nmy require that Conunmfity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, tees and assessnrents shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds tbr Escrow Items unless Lender waives Borrower's obligation t° pay the Funds Ibr any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may o~fly be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts MFWY7770 (11/00) / 041-869282-8 ,niti~sC~- (~-6A(WY) t00051.01 Pageaofl5 Form 3051 1/01 I38 due for any Escrow Itenzs for Milch payment of Funds has been waived by Lender and, if Lender requires, shall funfish to Lender receipts evidencing such payment within such time period as Lender nmy require. Borrower's obligation to nmke such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covmmnt and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pnrsuant to a waiver, and Borrower fails to pay the amount due /'or an Escrow Item, Lender nmy 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 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 Funds, and in such anmunts, that are then required under this Section 3. Lender nmy, at any time, collect and hold Funds in an atnount (a) sufficient to pernfit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the nmxi~num amount a lender can reqnire under RESPA. Lender shall estimate fl~e amount of Funds due on fl~e basis of cun-ent data and reasmmble estinmtes of expenditures of future Escrow Itenxs 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 i~stitution 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 Funds, mmually 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. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Fund& Lender shall not be required to pay Borrower any interest or eanfings 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 Fm~ds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess fin~ds in accordance with RESPA. If there is a shortage of Fm~ds 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 no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as requiredby 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 mondfly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Counnunity Association Dues, Fees, and Assessments, if anyl To the extent that these items are Escrow Iten~s, Borrower shall pay them in the nm~mer provided in Section 3. Borrower shall prolnptly discharge any lien which has priority over this Security Instnxment tmiess Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a nnmner acceptable to Lender, but only so long as Borrower is pertbrnfing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opi~fion operate to prevent the entbrcement of the lien while those proceedings are 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 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 MFWY7770 (11/00) / 041-869282-8 (~-6AlWY) Iooos~.o~ · Page 5 of 15 Form 3051 1/01 .1.39 lien. Witlfin 10 days of the date on which that notice is gxven, Borrower shall satisfy the lien or take one or more of the actions set fortl~ above in this Section 4. Lender ]nay require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in co~mection with f/tis Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any. other hazards inchiding, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintaiued in the amounts (including deductible levels) and fbr the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised nnreasonably.. Lender ]nay require Borrower to pay, in connection with this Loan, either: (a) a one-time charge fbr 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 fbr the payment of any fees imposed by the Federal Elnergency Management Agency in connection with the review of any flood zone deternfination resulting f¥om an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insnrance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or mnount of coverage. Therefore, such coverage shall cover Lender, but might or nfight' not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and 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 the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate 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 such policies shall be subject to Lender's right to disapprove Such policies, shall include a standard mortgage clause, and shall name Leuder 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 shrill prompdy give to Lender all receipts of paid premiums and' renewal notices. If Borrower obtains any tbrm. of insurance coverage, not otherWise required by Lender, for da~nage to, or destruction of, the Property, such policy shall inchide 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 nuty 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 opportmfity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. U]fless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower auy interest or ear]tings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Ii~trument, whether or not then due, with MFWY7770 (11/00) / 041-869282-8 I~-~AIWY} iooos~o~ Page 6 of 15 Form 3051 1/01 140 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 insura~me claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires 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 tiffs Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of uuearned premiuuks paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, mfless Lender ofl~erwise agrees in writing, which consent shall not be um:easonably withheld, or unless extenuating circumstances exist which are beyoud Borrower's control. 7. Preservation, Mainteuance and Protection of the Property; Inspections. Borrower shall uot 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 order to prevent the Property from deteriorating or' decreasing in value due to its condition. U~fless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if dmnaged to avoid further deterioration or damage. If insurance or condmmmtion proceeds are paid in comtection with damage to, or the taking of, the Property, Borrower shall be responsible lbr repairing or restoring the Property o~fly if Lender has released proceeds tbr such purposes. Leuder 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 coudemnation proceeds' are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reaso~mble cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's katowledge or consent gave materially false, nfisleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in com~ection with the Loan. Material representations include, but are not linfited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to 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 bmdcruptcy, probate, tbr condemnation or forfeiture, for enforcement 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 interest in the Property and rights under tiffs Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appeariug in court; and (c) payiug reasonable MFWY7770 (11/00) / 041-869282-8 initialsd&: ~ (~)~-6A(WY) 1ooo5).ol Page 7 o~ is Form 3051 1/01 1.41 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing Lite 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, elinfinate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender nmy take action under Lifts 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 under this Section 9 shall become additional debt 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 Lifts 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 lee title shall not merge mfless Lender agrees to Lite 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, Ibr auy reason, Lite 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 prenfiums for Mortgage Insurance, Borrower shall pay the prelnimns required to obtain coverage substantiallY equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve, shall be non-refundable, notwithstanding rite 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 (in the amount and for Lite period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward rite premiunkq lbr Mortgage Insurance. If Lender required Mortgage Insurance as a condition of ~nakiug the Loan and Borrower was required to make separately designated payments toward the premiun~s for Mortgage Insurance, Borrower shall pay the prenfiums required to nmintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such ternfination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in rite Note. Mortgage Insurance reimburses Lender (or any entity that purchases Lite Note) Ibr certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is ]tot a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and nmy enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the nmrtgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer nmy have available (which may include funds obtained from Mortgage Insurance prenfiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the Ibregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments lbr Mortgage Insurance, in exchange for sharing or modifying rite mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange Ibr a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not eutitle Borrower to any refund. MFWY7770 (11/00) / 041-869282-8 ,.,t,~,.~.~_.._ t~ (~)~-6A(WY) {O00S).O1 Paoeeof 15 Form 3051 1/01 142 (b) Any such agreements will not affect th~ rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certaiu disclosures, to request and obtain cancellation of the Mortgage Iusurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of'any Mortgage h~surance premiums that were unearned at the 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 danmged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible aud Lender's security is not lessened. During such repair and restoration period, Lender shall have fide right to hold such Miscellaneous Proceeds until Lender has had an opportmfity to inspect such Property to ensure the work has been completed to Leuder's satisfaction, provided that such inspectiou shall be undertaken promptly. Lender umy pay tbr the repairs and restoration in a siugle disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or ear~fings on such Miscellaneous Proceeds. If the restoration or repair is not econoufically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sunrs 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 iu value of the Property, the Miscellaneous Proceeds shall be applied to the sun~g secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or 10ss in value of fl~e Property in which the fair lnarket value of the Property immediately beIbre the partial taking, destruction, or loss in value is equal to or greater than the amount of the stuns secured by this Security Instrulnent ilmnediately before the partial taking, destruction, or 10ss 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 tbllowing fraction: (a) the total amount of the sums secured i~mnediately betbre the partial taking, destruction, 'or loss in value divided by (b) the fair nnirket value of the Property innuediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property inm~ediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured inm]ediately before fide partial taking, destruction, 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 fl~en due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to n]ake an award to settle a claim tbr damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to tim stuns secured by fids Security I1]strument, whether or not then due. "Opposing Party" Dneans the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, Whether civil or criminal, is begun that, in 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 as provided in Section 19, by causing the action or proceeding to be disnfissed with a ruling that, in Lender's judgment, precludes Ibrfeiture 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 dan]ages flint are attributable to the impairment of Lender's interest in the Property are hereby assigned aud shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2~ MFWY7770 (11/00) / 041-869282-8 tI~)~-6AIWY) Iooos~.ol Page 9 of 15 Form 3051 1/01 payment or modification of ainortization of the sunts secured by this Security htstrument 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 Borrower. 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 fltis Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of 'Borrower. Any forbearance by Lender in exercising any right or remedy including, without li~nitation, Lender's acceptance of payments from tlfird persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligatimks and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument tuffy to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sun,s secured by this Secnrity hzstrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any acconm~odations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security htstrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under fids Security h~strument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower tees Ibr services performed in cmmection with Borrower's default, tbr the purpose of protecting Lender's interest in file Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other tees, the absence of express authority iu this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender inay not charge fees fllat are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a taw which sets nmxinmm loan charges, and fllat 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 necessary to reduce file charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded pemfitted limits will be refunded to Borrower. Lender may choose to make fids refund by reducing the principal owed under the Note or-by making a direct payment to Borrower. If a refund reduces principal, file reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided fur 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 Bon-ower ufight have arising out of such overcharge. .. 15. Notices. All notices given by Borrower or Lender in cmmection with this Security Instrument must be in writing. Any notice to Borrower in cmmection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class nmil or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure Ibr 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 Instrulnent 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 iu com~ection with this Security Instrument shall not be deemed to have been given to Lender until actnally received by Lender. If any notice reqnired by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Ins trument. MFWY7770 (11/00) / 041-869282-8 ,~t,~,,~'' ~ (~)~-6A(WY) 10005}.0~ Page lo of 15 Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements aud limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it nfight be silent, but such silence shall not be construed as a prohibition against agremnent by contract. In the event that any provision or clause of fids Security Instrument or the Note conflicts with Applicable Law; such conflict shall not affect other provisions of fids Security Instrument or thc Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of rise nmsculine gender shall mean and include corresponding neuter words or words of rise feufinine gender; (b) words in rise singular shall mean and include the plural and vice versa; and (c) the word "~nay" 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 tlfis Security Instrmnent. 18. Transfer of the Property or a Beneficial 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 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 transferred (or if Borrower is not a mtural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require 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 tlfis 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 Instrmnent. 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. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of tiffs 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 fids Security Instrument; (b) such other period as Applicable Law might specify fur the termination of Borrower's right to reinstate; or (c) entry of a judgment entbrcing 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 default Of auy other covenants or agreements; (c) pays all expenses incurred in entbrcing this Security Instmxneut, including, but not limited to, reasonable attorneys' tees, property inspection and valuation fees, and other tees incurred for the .purpose of protecting Lender's interest in the Property and rights under this Security Insu-ument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the smrkq secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses iu 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) Electrmfic Funds Transfer. Upon reinstatement by Borrower, this Security lnstrumeut and obligations secured hereby shall renmin fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in rise Note (together with this Security Instrumen0 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 Payg~ents due under the Note and this Security Instrument and pertbrms other mortgage loan servicing obligations 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 name and address of the new Loan Servicer, the address to which payments should be made and auy other information RESPA (~-6A(WY) (ooo51.Ol Page 11 of ~5 Form 3051 1/01 145 requires in connection with a notice of trm~sfer 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 rite Note purchaser u]fless otherwise provided by the Note purchasen Neither Borrower nor Lender nmy coumtence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant 'to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, fl]is Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and aflbrded the other party hereto a reasonable period after the giving of such notice to take' corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that ti~ne period will be deemed to be reaso~mble Ibr purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and tim notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfY the notice and opportunity to take corrective action provisions of fids Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Envirmnnental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or fbrmaldehyde, and radioactive nmterials; (b) "Enviromnental Law" mearks federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or' environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Envirmm~ental Condition" meaus 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, anyflfing affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a HazardoUs Substance, creates a condition that adversely affects rite value of the Property. The preceding two sentences shall not apPly to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nomml residential uses and to nmintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, denmnd, lawsuit or other action by any govermnental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of wi]ich Borrower has actual lmowledge, (b) any Enviromnental 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 the presence, 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 remedial actions in accordance with Enviromnental Law. Nothing herein shall create any obligation on Lender for an Enviromnental Cleanup. MFWY7770 (11/00) / 041-869282-8 (~}~6AIWY) (ooos).o~ P.ge~2of~ Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender furflmr covenant and agree as tbllows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement iu this Security lustrument (but uot prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reiustate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration aud sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument withont further demaud and may invoke the power of sale aud any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evideuce. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance witli Applicable Law. Leuder shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall. publish the notice of sale, and the Property shall be sold iu the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expeuses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. ' 23. Release. Upon payment of all sums secured by this Security htstmmentl Lender shall release dfis Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a tee releasing tlfis Security Instrument, but only if the fee is paid to a third party for services rendered aud the charging of the fee is perufitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exe~nption laws of Wyonfing. MFWY7770 (11/00) ! 041-869282-8 (~-6AIWY) Iooosl.o~ Page 13 ol 15 Initials:~''- ~ Form 3051 1/01 08D4GO0 147 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covmmnts contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: ~ (Seal) CODY Bx'ISff/H I / -Borrower D. LUTHI~ (Seal) -Borrower (Seal) -Bo,'rower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower MFWY7770 (11/00) / 041-869282-8 (~6A(WY) ~ooo51.Ol Page 14 of 15 Form 3051 1/01 STATE OF WYOMING, The foregoing iOStmment was ac'knowledged before me dfis ~ by CODY LUTHI AND RONDA D. LUTHI, HUSBAND AND WIFE County ss: /~ff/ 2003 My Conunissioll Expires:~~/¢ ,~dd~ ~ Nota~/Public MFWY7770 (11/00) 041-869282-8 (~-6AIWY) (ooomol Page 15 of 15 Form 3051 1/01 Legal Description That part of Lot 2 of Section 33, T35N Rll9W of the 6th P.M., Lincoln County, Wyoming being part of that tract of record in the Office of the Clerk of Lincoln County in BoOk 170. of Photostatic Records on page 241 being described as follows: BEGINNING at a point N 40°06 W, 4,534.74 feet from the Southeast corner of said Section 33; thence N 89°26...5' W, 245.00 feet in part, along an existing east- west fence line identical with the North line of that. tract of record in Book 168PR on page 104 to an intersection point with that 'east right-of-way line of the Thayne-Freedom County Road No. i2-126, N 00002, E, 1134.68 feet and S 89026.5' E, 30.00 feet from the centerline Station P.I. 224+67.34 of said Road No. 12-125; thence N 00002, E, 89.0'feet along said east right-of-way line to a. point; thence S 89026.5' E, 245.0 feet' parallel to the said east-west fence line to a point; thence S 00002' W, 89.0 feet parallel to said east right-of-way line to the POINT OF BEGINNING. li/91