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HomeMy WebLinkAbout894744After Recording Return To: Bank of Jackson Hole P.O. Box 7000 Jackson, WY 83002 RECEIVED LINCOLN COUNTY CLERK 03 OCT 27 I0:38 Loan No: 29294619 MIN #100015700027188065 ]Space Above This Line For Recording Data] MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, tl, 13, 18, 20 and 21. Certain rules regarding tbe usage of words used in this doct, ment are also provided in Section 16. (A) "Security Instrument". means this document, which is dated July 3, 2003 together with all Riders to this document. ' (B) "Borrower" is lerry J. Rauterkus, Jeane Story Rauterkus, husband and wife Borrower is the mortgagor under this Security Instrument. (C) "Lender"is Bank of dackson Hole Lender is a Corporate organized and existing nnder the laws of Wyoming Lender's address is P.O. Box 7000 Jackson, WY 83002 Lender is the mortgagee under this Security Instrument. (D) "Note"~neans the promissory note signed by Borrower and dated July 3, 2003 The Note states that Borrower owes Lender One Hundred Forty Five lhousand DOLLARS and Zero CENTS Dollars (U.S. $145,000.00 · ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in riel not later than August 1, 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 iuterest, any prepayment charges and late charges dne under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~-] Adjustable Rate Rider [---] Condominium Rider [--] Second Home Rider [~] Balloon Rider ~-] Planned Unit Development Rider [---I 1-4 Family Rider ~ Biweekly Payment Rider [---] V.A. Rider ~] Other(s) [specifY] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1101 Laser Forms Inc. (800)446-3555 LFI#FNMA3051-L 1/01 (A) Page 1 of 9 Initials , (J) "Electronic 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, instructl or attthorize a financial institution to debit or credit an acco0nt. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, trans.fers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemt,ation 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 aud/or condition of the Property. (M) "Mortgage Insurance" means insurauce protecting Lender against tile nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regolarly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "iRESPA' means the Real Estate Settlement Procedures Act (12 U.S.C. §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 regulatiou that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if tile Loan does not qualify as a "federally related mortgage loan" nnder RESPA. (P) '!Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has asstuned Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS 1N THE PROPERTY This Secnrity Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performauce of Borrower's covenants and agreements under this Security Instm nent 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 · IType of Rec~rdin9 Jurisdiction] [Name oi' Recordin9 Jurisdiction] See Exhibit "A" attached hereto and made a part hereof which currently has the address of 90 Rambling Hills Drive [Streetl Freedom , Wyoming 83120 [City] · [Zip Code] ("Property Address"): TOGETHER WITH all tile improvements now or hereafter erected on the property, and all easemeuts, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrumel~t. 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 and has the right to mortgage, grant and convey the Property and that the Properly is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a unifom~ security instrument covering real property. VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 Laser Forms Inc. (800) 446-3555 LFI#FNMA3051-L 1/01 Page 2 of 9 Initials: 'UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal oi; and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay fimds for Escrow ltems pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made ill U.S. currency. However, if any check or other iustrument received by Lender as payment under the Note or this Secnrity Instrument is returned to Lender' unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the 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, instrmnentality or entity; or (d) Electronic Funds Transfer. ' Payments are deemed received by Lender when received at the location designated in the Note or at si,ch other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial paymeuts 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 reftme 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 schednled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not doso within a reasonable period of time, Lender shall either apply such fimds or return them to Borrower. If not applied earlier, sucb fimds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have ,iow or in the filture against Lender shall relieve Borrower fi'om making payments due under the Note aud this Security Instrument or performing tile covenants aud agreements secured by this Secnrity Instrument. 2. Application of Paymeuts or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied iii the following order of priority: (a) interest due trader 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 became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinqnent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to tile delinqnent payment and the late charge. If more than one Periodic Payment is on,standing, Lender may apply any payment received from 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 in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due uuder the Note sliall not extend or postpone the due date, or change the alnount, of the Periodic Payments. 3. Fnnds for Esc,-ow Items. Borrower shall pay to Lender on the day Periodic Payments are due under ,be Note, until the Note is paid in fi, Il, a sum (the "Funds") to provide for payment of a,nounts dne lbr: (a) taxes and assessments and other items which can attain priority over this Secnrity lnstnm~ent as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or an7 sums payable by Borrowe,- to Lender in lieu of the payment of Mortgage Insurance premimns in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender inay 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 furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items nnless Lender waives Borrower's obligation to pay the Funds for 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 only be iii writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts tine for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall fin'nish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a 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, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay snch 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 give,.~ in accordance with Section 15 and, upon such revocat on, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any tiine, collect and hold Funds in all amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a leuder can require under RESPA. Lender shall estimate the amount of Funds due on the 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 are insured by a federal agency, iustrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insnred) 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. Leuder shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the 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. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/0'1 LFI#FNMA3051-L 1/01 . Page 3 of 9 Initial If there is a surphls of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower For the excess funds ill accordance with RESPA. If tbere is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notifY Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to lnake up the shortage ill accordance with RESPA, but ill no more than 12 monthly payments. If there is a deficiency of Funds held ill 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 deficiency ill accordance with RESPA, but in no more than 12 monthly payments. Upon payment in fidl ofa/l sums secured by this Secnrity Instrument, Lender shall promptly retired to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessmel~ts, 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 Community Association Dues. Fees, and Assessments, if any. To the extent that these items are Escrow Items, Bol:rower shall pay them in l:lle manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: Ca) agrees ill writing to tim payment of the obligation secured by the lien in a Inanner acceptable to Lender, but only so long as Borrower is performing such agreement; Cb) contests the lien ill good faith by, or defends against enforcelnent of the 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 are concluded; or Cc) secnres fi'om the bolder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrnment. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrumellt, Lender may give Borrower a notice identifyil~g 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 Inay require Borrower to pay a one-thne charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the terln "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance sliall be maintained in the amonnts (including deductible levels) and for tim 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 unreasonably. Lender may require Borroxver to pay, in connection with this Loan, either: Ca) a one-time charge for flood zone determination, certification and tracking services; or Cb) a one-tilne charge fi)r flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect snch determination or certification. Borrower shall also be responsible for the payment of any fees inlposed by the Federal Emergency Managenmnt Agency in connection with the review of any flood zone determination resulting from ali objection by Borrower. lfBorroxver Fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is tinder no Obligation to purchase any particular type or amonnt of coverage. Therefore, such coverage shall cover Lender, but might or Inight not protect Borrower, Borrower's eqnity ill the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously iii effect. Borrower acknowledges that the cost of the insurance coverage so obtained Inigbt significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall beconle additional debt of Borrower secured by this Security hlstrulnent. These amounts shall bear interest at the Note rate fi'oin the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower reqnesting 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'Lender as mortgagee and/or as all additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender reqnires, 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 destrnction of, the Property, such policy shall include a staudard mortgage clause and shall name Lender as mortgagee and/or as ali additional loss payee. Ill 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, all), insnrance 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 snch repair and restoration period, Lender shall have the right to bold such insnrance proceeds until Lender bas had an opportunity to inspect such Property to ensure the xvork has been completed to Lender's satisfaction, provided that such inspection shall be tmdertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law reqnires 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 ad. justers, or oilier 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, tim insurance proceeds shall be applied to the sums secured by this Security Instrument, whetiler or not then clue, xvith the excess, if any, paid to Borrower. Sucl~ insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. ]f Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender mav negotiate and settle the clailn. 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 Ca)~ Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security hlstrument, and Cb) any other of Borro~ver's WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 LFI#FNMA3051-L 1/01 Page 4 of 9 Initial rights (other than the right to any refund of unearned premiums paid by Borrower) under all insnrance 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 file 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 tide execution of this Secnrity Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, nnless 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, Maintenance and Protection of the Property; Inspections. Bor,'ower 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 order to prevent the Property froln deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not econolnically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds fox' the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If tile insurance or condemnation proceeds are not sufficient to repair or restore the Property; Borrower is not relieved ofBorrowe,-'s obligatiou fox' the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of tile improvelnents on the Property. Leuder 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 Borrower 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 inlbrmation) in connection with the Loan. Material representations include, but are not limited 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 lnstrnment. If(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might sign. ificantly affect Lender's interest itl tile Property and/or rights t, nder this Secnrity Instrument (such as a proceeding in bankruptcy, probate, for condemnatiou or forfeiture, tbr enforcement of a lien which may attain priority over this Security lnstrt, ment or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whateve,- is reasonable or appropriate to protect Lender's interest in the Property and rights uuder this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repaMng tile 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) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrume,~t, inch, ding its secured position in a bankruptcy proceeding. Securing the Property inclndes, but is not limited to, entering tide Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate buildiug or other code violations or dangerous conditions, and have utilities turned on ox' off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligatiou to do so. lit is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amonnts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security h~strument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, t,pon notice fi-om Lende,' to Borrower requesting paytnent. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title tothe Property, the leasehold and the tee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insnrance. 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 tile mortgage inst, re,' that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums fox' Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equiwflent to tide cost to Borrower of the Mortgage Insurance previously itl effect, fi'om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage lusurance coverage is not available, Borrower shall continoe 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 t-eserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refimdable, notwithstanding tbe tact 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 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 preminms for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making tile Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage lusurance, Borrower shall pay tile premiums required to maintain Mortgage Insurance in effect, or to provide a non-refimdable loss reserve, nntil Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimbut-ses 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 tothe Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and ,nay enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 LFI#FNMA3051-L 1/01 Page 5 of 9 Initials: ? terms and conditions that are satisfactory to the mortgage insurer and the other party. (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a resUlt of these agreements, Lender, any pnrchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the fbregoing, may receive (directly or indirectly) amounts that derive fi'oln (or might be characterized as) a portion of Borrower's payments roi' Mortgage Insurance, in exchange for sharing or modifying the mortgage insnrer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements ~vill not affect the amonnts that Borrower has agreed to pa), for Mortgage Insurance, or any other terms of the Loan. Snch agreements will not increase thc amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if an), - with respect to the Mortgage Insurance under- the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such 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 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 righ't to hold such Miscellaneous Proceeds until Lender bas 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 nla}r pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is ~nade in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible 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 Section 2. lu the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due. with the excess, if any, paid to Borrower. · tn the event of a partial taking, destruction, or loss in value of the Property in which the htr market value of the Property immediately before the partial taking, destruction, or loss in valne is equal to or greater than the mnount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately 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. Iu the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in xvriting, the Miscellaneous Proceeds shall be applied to the stnns secured by this Security hlstrument 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 (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrnment, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscelhmeous Proceeds or the party against whom Borro;ver has a riaht of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, iii. Lender's judgnlent, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borroxver can 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 impairFnent of Lender's interest in the Property or rights trader this Security Instrument.. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest iii the Property are hereby assigned and 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. 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 Borroxver or any Successor iii 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 refiFse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrunmnt 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, witbont limitation, Lender's acceptance of payments fi'om 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 any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 II01 LFI#FNMA3051-L 1/01 Page 6 of 9 Initials: agrees that Borrower's obligations and liability shall be joint and several. HoWever, any Borrower who co-signs this Security Instrtunent but does not execute the Note (a "co-signer"): (a) is Co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and ally other Borrower can agree to extend, modi~, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rigbts and benefits under this Security Instrument. Borrower shall uot be released from Borrower's obligations and liability under this Security Instrument nnless Lender ag,-ees to such release in writing. The covenants and agreements of this Security Instrumeut 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 tile 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 Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If tbe 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 charge shall be reduced by the amount necessary to reduce the cha,'ge to tile permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this retired by reducing tile principal owed under the Note or by making a direct payment to Borrower. If a retired reduces principal, tile 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 retired made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. NoHces. All notices given by Borrower or Lender in connection with ttiis Security Instru,nent must be in writing. Any notice to Borrower in connection with this Security lnstrtnnent 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 constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reportiug Borrower's change of address, then Borrowe,' 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 oue 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. Ally notice in connection with this Security Instrument shall not be deemed to have been given to Lender nntil actually received by Lender. If any notice required by this Security Instrument :i:s also required under Applicable Law, the Applicable Law requirement will satisl~ the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrnment 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 Instrt, ment .are subject to any requirements and li,nitations 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 prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Lawl such conflict shall not affect other provisions of this Security Instrument or the Note which can be 'given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" 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 Instrument. 18. T,'ansfer of the Property or a Beneticial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest itl the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreemeut,/be intent of which is the transfer of title by Borrower at a fixture date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borroxver is sold or t,'ansferred) xvithout Lender's prior written consent, Lender may require immediate payment in ftdl 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. ]f Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower lnust 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 lnstrnment 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 this Security Instrument discontinued at an5, 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) entry of a jt,dgment enforcing this Security Instrament. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under tbis Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred itl enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 LFI#FNMA3051-L 1/01 Page 7 of 9 Initials: property inspection and valuatiou fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rigl~ts under this Sectn'ity Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the st, ms secured by this Security Instrument, shall continue unchanged. Lender l.nay require that Borrower pay soch 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 Jnstitntion whos~ deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Fonds Transfer. Upon reinstatement by Borrmver, this Secnrity Instrument and obligations secured hereby shall remain fidly effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be s01d one or more times without prior notice to Borrower. A sale might rest, It 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 Secority 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 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 otherxvise provided by the Note purchaser. Ne ther 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 fi'o,n the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any dory owed by reasou of, thi:s Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the reqoirenmnts 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 reasouable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substauces. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" means 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 "Environmental Condition" means a condition that can cause, contribote 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 Snbstances, on or iii the Property. Borrower shall ,lot 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, due to the presence, use, or release of a Hazardous Snbstance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or stol'age on the Property of small quantities of Hazardous Snbstances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but ,lot limited to, hazardous substances iu consumer products). Borrower shall promptly give Lender writteu notice of (a) any investigation, claim, demand, lawsoit or other action by any govermnental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (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 regnlatory authority, or any private party, that any removal or other reined,at,on of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all uecessary remedial actions in accordance with Environmental Law. Not~ing herein shall create any obligation on Lender for an Environmental Cleannp. NON-UNIFORM COVENANTS. Borrower and Lender fl~rtimr covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Secnrity Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a)/lie default; (b) tile action required to cure the default; (e) 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 fnih, re to cure the defanlt on or before the date specified' in the notice may result in acceleration of the snms secured by this Secnrity Instrument and sale of the Property. The notice shall further inform Borrower of tile right to reinstate after acceleration and the right to bring n court action to assert the non-existence of n default or any other defense of Borrower to accelerafion and sale. If the default is not cnred on or before the date specified in the notice, Lender at its option may require immediale payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in porsoing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 ~/0'1 Laser Forms Inc. (800) 446-3555 LFI#FNMA3051-L 1/01 Page 8 of 9 Initials: If Lender invoices the power of sale, Lender shall give notice of intent 1o foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided ill Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable iLaw. Lender or its designee may purclmse the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, bnt not limited to, reasonable attorneys' t'ees; (b) to ali sums secured by this Secnrity 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 Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee tbr releasing this Security Instrument, but only if'the fee is paid to a third party for services rendered and the charging 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 Wymning. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: T~-~rry J. R~terl~s ' (Seal) -Borrower (Seal) -Borrower [Space Below This Line For Acknowledgment] STATE OF WYOMING, The foregoing instrmnent was acknowledged before me this by Terry J. Rauterkus, dearie Story Rauterkus, husband and wife (Seal) -Borrower Teton Connty ss: July 3, 2003 (date) WITNESS my hand and official seal. My commission expires: (person acknowledging) Notary Public VVYOMING ~ Single Family - FannieMae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 Laser Forms Inc. (800) 446-3555 LFI#FNMA3051-L 1/01 Page 9 of 9 EXHIBIT "A" PARCEL 1 FEE simPLE: A portion of the~W1/2SW1/4SWt/4 of Section 25, T35N, Rll9W of the 6th P.M., Lincoln County, Wyoming and being more particularly described as follows: BEGINNING at a point 331.27 feet N0°33'21"W, along the West line of said SW1/4SW1/4 from a BLM type monument found marking the Southwest corner of said Section 25 and running thence N0°33'21"W, along said West line, 132.0 feet; thence N89oRg'06"E, 660.85 feet to the East line of said W1/2SW1/RSW1/4; thence S0°31'54"E, 132.0 feet; thence S89o56'22"W, 660.58 feet to the POINT OF BEGINNING PARCEL 2 EASEMENT INTEREST: That easement for ingress and , egress· as described in Warranty Deed recorded March 20, 2002 Book 485 P.R'., Page 719. PREPARED BY: AND WHEN RECORDED MAIL TO ~-- Address, City State) (Name, and Bank of Jackson Hole P.O. Box 7000 Jackson, WY 83002 89 I Parcei Tax ID #.: 35192530016900 MIN #100015700027188065 RECEIVED LINC0t_N COUNTY cLERK ¢il 1 . SPACE ABOVE THIS LINE FOR RECORDER'S USE Corporation Assignment of Real Estate Mortgage FOR VALUE RECEIVED, the undersigned liereby grants, assigns and transfers to Mortgage Electronic Registrations Systems, Inc. P.O. Box 2026, Flint, MI 48501-2026 all the rights, title and interest of undersigned in and to fhat certain Real Estate Mortgage dated July 3, 2003 , executed by Terry J. Rauterkus, Jeane Story Rauterkus, husband and wife to Bank of Jackson Hole, a Corporate a corporation organized under tbe laws of Wyoming place of business P.O. Box 7000, Jackson, WY 83002 and recorded in Liber d~ page(s) ~,r Fd State of Wyoming See Exhibit "A" attached hereto and made a part hereof and who's principal Lincoln County Records. described as follows: TOGETHER with the Note or Notes therein described or referred to, the money due and to become due thereon with interest, and all rights accrued or to accrue nnder said Real Estate Mortgage. Laser Forms Inc. (800) 446-3555 LFItt5CAM 9/99 Page 1 of 2 Initials: BANK OF JACKSON HOLE ~3~: S~i'ndra L. Krogh ', Witness: Its: Vice President Witness: By: Witness: Its: Witness: STATE OF Wyoming COUNTY OF Teton On O® said County m~d State, personally appeared known to me to be the Vice President and before me, the undersigned, a Notary Public in and for Sandra L. Krogh , known to me to be of the corporation herein which executed the within instrument, that the seal affixed to said instrument is the corporate seal of said corporation, that said instrument was signed and sealed on behalf of said corporation pursuant to it's by-laws or a resolution of it's Board of Directors and that he~)acknowledges said instrument to be the free act and deed of said corporation. Notary Public My Commission Expires Teton County, Wyoming LIoA M. PADDLEFORD - NOTARY PIJBLI~"~ County of ~ State of Teton ~'-~ Wyoming (THIS AREA FOR OFFICIAL NOTARIAL SEAL) Laser Forms Inc. (800) 446-3555 LFI #5CAM 9/99 Page 2 of 2 ,i PARCEL 1 FEE SIMPLE: A portion of the W1/2Sw1/4SWt/4 of Section· 25, T35N, Rll9W of the 6th P.M., Lincoln County, Wyoming and being more particularly described as follows: BEGINNING at a point 331.27 feet N0°33'21"W, along the West line of said SWt/4SW1/4 from a BLM type monument found marking the Southwest corner of said SeCtion 25 and running thence N0°33'21"W, along said West line, 132.0 feet; thence N89°R9'06"E, 660.85 feet to the East line of said W1/2SW1/4SW1/4; thence S0°31'54"E, 132.0 feet; thence S89°56'22"W, 660.58 feet to the POINT OF BEGINNING PARCEL 2 EASEMENT INTEREST: That easement for ingress and egress as described in Warranty Deed recorded March 20 2002,