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HomeMy WebLinkAbout894916.04j01812~ This mortgage is being re-recorded the Borrower's name. to correct RECEIVED LINCOLN COUNTY CLERK After Recording Remru To: FIRST BANK OF IDAHO, FSB D/B/A FIRST BANI< ADVISORS P.O BOX 12860 JACKSON, WY 83002 894916 RECEIVED LINCOLN COUNTY CLERK 03 OCT 30 JEANNE \qAGNER ,.,.,-, [Space Above This Line For Recording Datal SPE~IN MIN: 100174102000008484 PIN ~: 36192420031300 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated OCTOBER 14 ,' 2003 together with all Riders to this document. (B) "Borrower"is WILLIAM LLOYD SPEARIN AND ELLIN ELIZABETH SPEARIN, TRUSTEES, OR THE SUCCESSORS IN TRUST, UNDER THE WILLIAM LLOYD SPEARIN AND ELLIN ELIZABETH SPEARIN,L.II/ING TRUST, IluWTED 14ARCH 29, 2001 Borrower is the mortgagor under this Security InstTum/e~n~.In t~f.O t2,'.~/..~ (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS ~s organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" ~s FIRST BANK OF IDAHO, FSB D/B/A FIRST BAlgK ADVISORS Lender is a CORPORATION organized and existing tinder the lawsof IDAHO . Lender's address is P.o. BOX 9000 KETCHUM, ID 83340 (E) "Note" means the promissory note signed by Borrower and dated OCTOBER 14, 2003 The Note states that Borrower owes Lender ONE HUNDRED EIGHTY THOUSAND FIVE HUNDRED AND 00/100 Dollars (U.S. $ 180,500.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than NOVEMBER 1, 2033 (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 and late charges due under the Note, and all sums due tinder this Security Instrument, plus interest. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCUKWYI (Page I of 13 pages) oocura'tx.vrx xo/x?/~oo2 · 494010119 5 I $ (H) ".Riders" means all Riders to this Secnrity Instrument that are executed by Borrower. The following Riders arc, to bc executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Balloon Rider [] 1-4 Fanfily Rider [] Condominium Rider [] Plmmed Unit Development Rider [] Other(s) [specify] TRUST [] Second Home Rider [] Biweekly Payment Rider (I) "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. (J) "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. (K) "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, instruct, or authorize a t'mancial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse 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 ttiird party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the 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 amounts under Section 3 of this Security Instrument. (P) "RESPA" 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 regulation that governs the same subject matten 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. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RiGHTS 1N 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 Borroxver'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 nonfinee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY CLERK of LINCOLN (Type of Recording Jurisdiction) (Name of Recording Jurisdiction) -: A PORTION OF THE N1/2NW1/4 SECTION 24, T36N, Rll9W, 6TH P.M., LINCOLN COUNTY, WYOMING, BEING MORE PARTICULARLY DESCRIBED IN EXHIBIT A. which cun'ently has the address of 2649 STEWART TRAIL ETNA ,Wyoming 83118 [City] [Zip Code] WYOMING - Single Family 7 Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKWY2 (Page 2 of 13 pageO DO CIIKW~/2 .VTX 10/17/2002 [Street] ("ProPerty Address"). Form 3051 1/01 494010119 5 ! 7 TOGETHER V~ITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only 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 the right: to exermse any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borroxver is lawfully seised of the estate hereby conveyed and has the right to mortgage, gram and convey the Property and that the Property 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 uniform security instrument covering real property. 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 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 made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's cl!eck, 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 deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Sectiou 15. Lender may 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 fights hereunder or prejudice to its rights to refuse such payment or partial payments in the furore, but Lender is not obligated to apply such payments at the time such payments are accepted. If eack Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fuhds or return them to Borrower. If not applied earlier, such fimds will be applied to the outstanding principal balance under lhe Note h~anediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due trader the Note and this Security Instrument or perfmming the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it 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 delinquent Periodic Payment which includes a sufficieut amount to pay any late charge due, the .payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in fidl. 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. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT' Form 3051 l/0l DOCOKWY3 (Page 3 of 13 pages') ~ocw, arta .v~x Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. ~. Fnnds for Escrow Items. Bon:ower shall pay to Lender on the day Periodic Payments are due under the Note, until the 'Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over tiffs Security Instrument as a lien or encumbrance on the Prope~y; (b) leasehold payments or ground rents on the Propen~y, if any; (c) pren2ums for any and all insurance required by Lender under Section ~; and (d) Mo~gage Insurance premiums, if any, or any sums payable by BorroWer to Lender in lieu of the payment of Mo~gage Insnrance premiums 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 may re. quire that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Bon-ower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligatiou to pay to Lender Funds for any or all Escro~v Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such paymeut within such time period as Lender may requite. BorroweFs obligation to make such payments and to provide receipts shall for all proposes 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 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 a~nounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified nnder RESPA, and (b) not to exceed the maximum amount a lender 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 Fun~ds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bmtk. Lender shall apply the Funds to pay the Escroxv Items no later than the time specified under RESPA. Lender · shall not charge Borrower for holding and applying the Fnnds, annually analyzing the escrow account, or verifying the Escrow Items, nnless 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 reqnires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings o~tthe Funds. Borrower and Lender can agree in writing, hov~ever, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an a~mual accounting of the Fnnds as required by RESPA. If there is a surplus of Funds held in escro~v, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender 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 required by RESPA, and Bon'ower shall pay to Lender the amount uecessary to make up the deficiency, in accordance with RESPA, but in no more than 12 montlfly payments: Upon paymeut 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, fmcs, and impositions attributable to the Property wlfich 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, Borrower shall pay them in the maturer provided in Section 3. Borrower shall promptly discharge' any lien which has priority over this Security Instrument unless Bon'ower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCU~CWY4 (Page 4 of13 page~) ooc~.~x xo/z?/aooo Form 3051 1/01 defends against enforcement 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 (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 lien. Within l0 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service nsed 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 term "extended coverage," and any other hazards including, but not limited to~ earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. 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 Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone deternfination, certification and ta'acking services; or (b) a one-time charge for flOod zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of anY fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or nfight not protect Borrower, Borrower's equity in fl~e 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 fl~at Borrower could have obtained. Any amounts disbursed by Lender under fids 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 Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or desn'uction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event'of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds nntil Lender has had an opportunity to inspect such Property to ensure the work. has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is.completed. Unless 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 any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the 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 Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCIJKWY5 (Page 5 of 13 pages) Form 3051 1/01 52O offered to settle a claim, then Lender may negotiate and settle~ the claim. The 30-day period will begin wllen the notice is given. In either event, or if Lender acquires !he Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in all amount not to exceed tile amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums 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 nnder tile 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, unleSs Lender otherwise agrees in writing, which consent shall not be nareasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance anti Protection of tile Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or comfit waste on the Property. Whether or not Borrower is residing hi the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing iii value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economicall'y feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation 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 for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or'reStoration: Lender or its agent niay make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at tile time of or prior to snch an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan apphcation 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 information) in cormection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occnpancy 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 perforna the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that nfight significantly affect Lender's interest in the Property and/or rights under this Security Instmmeut (such as a proceeding in bankruptcy, probate, for 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 fo~ whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) payh~g any sums sectu'ed 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 Instrument, including its secured position in a bankruptcy proceeding. Securing tile Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or hoard up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities tnrned on or off. Although Lender may take action under this Sectign 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incm's no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional 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 this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of tile lease. Borrower shall not surrender the leasehold estate and interests herein conveyed or ternfinate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ' Form 3051 1/01 DOCUKWY6 (Page 6 of 13 pages.) DOCUKWi'~. VTX 10/i7/2002 5 2 ! 7 8 494010119 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums reqnired to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage reqnired by Lender ceases to be available from the mortgage insurer that previously provided such insnrance and Borrower was required to make separately designated payments toward the prenfiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by 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 dne 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 the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insnrance 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 premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mt~rtgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's reqnirement 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 reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may 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 mortgage insnrer 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 purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the prenfiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will uot 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 entitle Borrower to any refund. (b) Any such agreements will not al'feet the rights Borrmver 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 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 prenfiums 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, snch Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lefider's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken, promptlY. Lender may 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 made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the 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 WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCIJKWY7 (Page 7 of 13 pages} Form 3051 1/01 179 4,4o o , 5 2 2 this Security h~s~mc~, wh~b~ o~ ~o~ ~hc~ du~, w~h ~bc cxcc~s, ff ~X, p~d 1o Bo~o~. Such ~sc~hn~ous In the event of a total tang, destruction, or loss in value of the Prope~, the Miscellaneous Proceeds shall be applied to the sun~ secured by this Securi~ Ins~men{, whether or no{ then due, with the excess, if any, paid to Borrower. In fl~e event of a partial tak~g, dest~ction, or loss in value of the Proper~ in which the fair market value of the Proper~ ~mmdiately before the partial taking, des~ction, or loss in value is equal to or greater than the amount of {he sums secured by this Security Ins~nnent i~ediately before the partial ta~ng, dest~ction, or loss m value, unless Borrower and Lender otherwise agree in ~iting, the sun~ secured by this Securi~ Inst~ment shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured h~ediately before the partial taking, dest~cfion, or loss in value divided by (b) th~ fa~ market value of the Proper~ ~m~edia~ely before the partial ta~ng, dest~ction, or loss in value. Any balance shall be paid ~o Borrower. [n the event of a partial taking, dest~ction, or loss in value of the Proper~ ~ which ~e fair marke~ value of the Proper~ i~ediately before the pm~ial taking, destruction, or loss in value is less than the amount of the sums secured i~ediately before the partial taking, destruction, or loss in value, unless Borrower and Lender o~he~ise agree in writing, the Miscellaneous Proceeds shall be applied to the su~ secured by this Securi~ Ins~mmeut whether or not the sums are then due. If fl~e Property is abandoned by Bo~ower, or if, after notice by Lender to'Borrower that the Opposing. Par~ (as defined in the next sentence) offers to make an award to seffie a claim for damages, Bo~ower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized ~o collect and apply the Miscellaneous Proceeds either to restoration or repa~ of the Prope~ or to the sums sec~ed by this Securi~ Inst~ment, whether or not then due. "Opposing Pa~" means the third pm~ that owes Bo~ower Miscellaneous Proceeds or the par~ against whom Bo~ower has a right of action m regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceed~g, whether civil or cri~nal, is begun that, in Lender's judgment, could result in forfei~re of the Prope~ or other material impatient of Lender's ~terest ~ the Prope~ or rights under this Securi~ Instrument. Bonower can cure such a defaul~ and, if acceleration has occuned, reinstate as provided in Section 19, by causing the action or proceeding to be dis~ssed with a ~ling that, m Lender's judgment, precludes forfei~re of the Prope~ or other material impa~nent of Lender's interest in the Property or rights under this Security Ins~ment. The proceeds of any award or claim for damages that are attributable to the impaimmnt of Lender's interest in {he Proper~ are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repa~ of the Prope~ shall be applied in the order provided for ~ Section 2. 12. Borrower ~ot Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the su~ secured by tlfis Securi~ Ins~ment granted by Lender to Bonower or any Successor in Interes~ of Bo~ower shall not operate to release the liabili~ of Bonower or any Successors ~ Interest of Bo~ower. Lender shall not be required to con~ence proceedings aga~st any Successor m Interest of Borrower or to re~se to extend time for pa~ent or othe~vise modify amo~ization of the sums secured by tiffs Securi~ Inst~ent by reason of any demand made by d~e origh~al Bo~ower or any Successors in ~terest of Bo~ower. Any forbearance by Lender in exercising any right or remedy h~cluding, without l~tation, Lender's acceptance of pa~ents fi'om third persons, entities or Successors in Interest of Bo~ower or ~ amounts less ~an 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. Bo~ower covenants and agrees that Bon'ower's obligations and liabili~ shall be joint and several. However, any Bonower who co-signs this Securi~ Inst~ment but does not execute the Note (a "co-signer"): (a) is co-signing this Secud~ Ins~ment only to mortgage, grant and conwy the co-signer's interes~ in {he Prope~ under the te~ of this Securi~ Ins~ment; (b) is no~ personally obligated to pay the su~ secured by this Securi~ Ins~men{; and (c) a~e~s that Lender and any other Borrower can agree to extend, modify, forbear or make any acco~odations with regard to the te~ of t~s Securi~ Inst~ment or fl~e Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Bo~ower's obligations under this Securi~ Ins~ment in ~itmg, and ~s approved by Lender, shall obtain all of Bonower's rights and benefits ~der this Securi~ Inst~ment. Bo~ower shall not be released from Bonower's obligations and liabili~ under {lfis Securi~ Inst~ment unless Lender agrees to such r~lease h~ ~ifing. The covenants and WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCtlKWY8 (Page 8 of 13 pages) noc~*r~, v"i"x io/i'~/2ooo Form 3051 1/01 5 2 3 agreements of this Security Instnxment shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security 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 orby Applicable Law. If the Loan is subject to a !aw 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 charge to the penmtted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall 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 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 Instnunent at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in com~ecfion with this Security Instn~ment shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Coustruction. This Security Instn~ment 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 and limitations of Applicable Law. Applicable Law n-fight 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 Law, such conflict shall not affect other provisions of this Security Instn~ment 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. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, conn'act 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 natural 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 this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~)ocmcwy9 (Page 9 of 13 pages) ~oem~w~9.wx xO/XT/~00~ Form 3051 1/01 494010119 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 this Security Instrument discontinued at any time prior to the earliest of(a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrnment; (b) such other period as Applicable Law might specify for the ternfination of Borrower's right to reinstate; or (c) entry of a .judgment enforcing this Security Instrument. Those conditions are that BOrrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument,. including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Iustrnment, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) Inoney order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, tiffs Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occun'ed. 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 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 collOcts Periodic Payments due under the Note and tlffs Security Instrument and performs 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 any other information RESPA requires in com~ection 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 assmned by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may conunence, 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, tiffs Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of Such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which mUst elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportnnity 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 Substances. 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 flanunable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental 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, contribute to, or otherwise trigger an Environmental Cleanup. Bon'ower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b)' which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 t>OCU~wvm (Page 10 of 13 pages) DOCtlK~A. VTI( 10/17/2002 5 2 5 creates a condition that adversely affects the 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 normal residential uses and to maintenance 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, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not linfited 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 regulato~3t authority, or any private party, that any removal or othe. r remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further 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 Security Instrument (but not 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 (late, not less than 30 days from the date the notice is given to Borrower, by which the default nmst be cured; and (d) that failure to cure the default on or before the date specified in the notice may result 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 reinstate 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 and 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 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 pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possessioh of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in 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 expenses 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 tile 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 for 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 ~,irtue of the homestead exemption laws of Wyonfing. WYOMING - Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKW'YI I (Page 11 of 13 pages) DO r21IlfI, P/B. V'I'X 10/1'7/11002 Form 3051 1/01 08 4t;07 183 BY SIGN~G BELOW. Borro~ver ~epts and agrees to the te~ and covenants contahed h t~s SecuriW Inst~ment ~d~y ~aer e~d by B~ower and ~ed wj~ it. - BORROWER - WILLI~LLOY~SPEARIN, TRUSTEE - DAT~ - Willi~ Lloyd Spearin and Ellin Elizabeth Spearin~ T~stees, or the successors in tms}, under the Willim Lloyd ~pearin ~d 'Ellin Elizabeth Spe~r~.Liv~ ~st, dated ~rch 29, 2001 ~///Joint ~illi~ Lloyd 5~earin and ~ll~n ~llzabe~h 5~eari~ Tmstees~ or the successors i~ t~st~ under the ~illi~ Ll~d ~peari~ ~ Ellen ~lizabe~h Spearin Livi~ Trust, da~ed ~rcb 29~ 200~ /Jo~nt WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUK~WlZ (Page 12 of 13 pages) ~oc~.~c.~x to/xTnoo~ Form 3051 1/01 I84 [Space Below This Line For Acknowledgment] STATE OF W3roming COUNTY OF L£nca4n -T-'-~-~ The foregoing insn~ment was acknowledged before me by William Lloyd Spearin and illin Elizabeth Spearin, Trustees of the William Lloyd Spearin and Ellin Elizabeth Spearin Living Trust, dated March 29, 2001 /Joint 14th day of October, 2003 , Witness my hand and official seal. on Expires: / WYOMING - Single Family - Fanoie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKWY~3 (Page 13 of13 pagesJ DOCUKWYD. VTX 6/6/2002 Form 3051 1/01 85 528' FIXED/ADJUSTABLE RATE RIDER (LIBOR One-Year Index (As Published In The Wall Street Journal)-Rate Caps) THIS FIXED/ADJUSTABLE RATE R/DER is made this 14THday of OCTOBER, 2003 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instntmcnt") of the stone date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the"Note!') to FIRST BANK OF IDAHO, FSB D/B/A FIRST BANK ADVISORS ("Lender") of the same date and covering the property described in the Security Instrument and located at: 2649 STEWART TRAIL ETNA, WY 83118 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in' the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interes{ rate of 4.500 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: ADJUSTABLE INTEREST RATE AND MONTHLY PAYI~IENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of NOVEMBER l, 2008 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." MULTISTATE FIXED/ADJUSTABLE RATE RIDER--WSJ One-Year LIBOR-- Single Family--Fannie Mae Uniform Inslru,.ent Form 3187 6/01 vocu^9~ Page 1 of 4 DOCUAQT1. VTX 08/20/2001 :. . - :. ,?.,,~,,',:::: : 0~9491G 529 (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "index" ~s the average of interbank offered rates for one-year U.S. dollar-denominated deposits in fl~e London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding' Two kttD OldIE- FOURTH percentage points ( 2.2 5 0 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be nry new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the nnpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Chahges The interest rate I am required to pay at the first Change Date will not be greater than 9.5 0 0 % 'or less than 2.2 5 0 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two Percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 9.5 0 0 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again.' (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument shall read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in'a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of wtfich is the transfer of title by Bon'ower at a future date to a purchaser. MULTISTATE FIXED/ADJUSTABLE RATE RIDER--WSJ One-Year LIBOR--Single Family--Fa unie Mae IJnllbrm Instrument ~oco^o72 Page 2 of 4 DOCUAQ72. rtl 07/12/2003 Form3187 6/01 If all or any part of the Property or any Interest in the Property is sold or transferred (or if Bou:ower is not a natural 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 prolfibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower nmst pay all sums secured by this Security Instrument If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate nnder the terms stated in Section A above, Uniform Covenant 1 8 of the Security Instrument described in Section B 1 above shall then cease to be in effect, and the provisions of Uniforn~ Covenant 1 8 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in tiffs Section 18, "Interest in the Property'' means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural 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. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender ilfformation required by Lender to evaluate the iutended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security xvill not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent pemfitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will conthme to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi.om the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender nmy invoke any remedies pernfitted by this Security Instrument without further notice or demand on Borro~ver. 530 MULTISTATE FIXED/ADJUSTABLE RATE RIDER--WSJ O.e-Year LIBOR-- Single Fanfily--Fannle Mae Uniform Inslru,nent DOCUAQ73 Pa~et of 4 DOCUAQ7 ] VTX 08/20/2001 Form 3187 6/01 53! BY SIGNING BELOW, Borrower acccpm and a~oos ~o ~ho [e~ and covenan[s contained Fixe~Adjustable~ate Rider. - BORROWER - WI~I~ ~OYD SPEARIN, TRUSTEE - DATE - Willi~ Lloyd Spearin and ~lin Elizabeth Spearin, T~stees, or the successors in t~t, under the Willi~ Lloyd Spear~ and Ellin Elizabe~ Sp~in LivinE T~st, Dated ~rch Z9, ~001 ~. /Joint '.Y?f.-' -~-,-~~~P~,~us~' - - - ' William Lloyd Spearin and Ellin Elizabeth Spearin, Trustees, or the successors in trust, under the William Lloyd Spearin and Ellin Elizabeth Spearin ,Living Trust, dated March 29, 2001 ~ /Joint IVlIJLTISTATE FIXED/P~JUSTABLE RATE RIDERWSJ One-Year LIBOR-- Sh~gl¢ Fanfily--Fannie Mae Uniform I~Irumeul Docu^oy~ Page 4 of 4 DOCUAQ?4. VT/ 12/03/:1001 Form 3187 6/01 INTER VIVOS REVOCABLE TRUST RIDER 189 532 /Joint (A) "Revocable Trust." The ~Villiam Lloyd Spearin and Ellin Elizabeth Spearin Living Trust created under trust ins,x~ment dated March 29, 2001, for the benefit of William Lloyd Spearin and Ellin Elizabeth Spearin, or the successors iu trust. (B) "Revocable Trust Trustee(s)." William Lloyd Spearin and Ellin Elizabeth Spearin, trustee(s) of the Revocable Trust. (C) "Revocable Trust Settlor(s)." William Lloyd Spearin and Ellin Elizabeth Spearin, settlor(s) of the Revocable Trust signing below (D) "Lender." First Bank of Idaho, fsb d/b/a First Bank Advisors (E) "Security Instrument." The Deed of Trust and auy riders thereto of the same date as this Rider given to secure the Note to the Lender of the same date and covering the Property (as defined below) (F) "Property." The property described in the Security Instrument and located at: 2649 Stewart Trail, Etna, WY 83118 [Property Address] THIS INTER VIVOS REVOCABLE TRUST RIDER is made this 14th day of October, 2003, and is incorporated into and shall be deemed to amend and supplement the Security Instrument. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, the Revocable Trust Trustee(s) and the Revocable Trust Settlors(s) and the Lender further covenant aud agree as follows: A. ADDITIONAL BORROWER(S) The term "Borrower when used in the Security Instrument shall refer to the Revocable Trust Trustee(s), the Revocable Trust Settlor(s), and the Revocable TrUst, jointly and severally. Each party signing this Rider below (whether by accepting and agreeing to the terms and covenants contained herein or by acknowledging all of the terms and covenants contained herein and agreeing to be bound thereby, or both) covenants and agrees that whether or not such patty is named as "Borrower" on the first page of the Security Instrument, each covenant and agreement and undertaking of the "Borrower" in the Security Instrument shall be such party's covenant and agreement and undertaking as "Borrower" and shall be enforceable by the Lender as if such party were named as "Borrower" in the Security Instrument. BY SIGNING BELOW, the Revocable Trust Trustee(s) accepts and agrees to the terms and covenants contained in this Inter Vivos Revocable Trust Rider. William Lloyd Spearin, Trustee of the William Lloyd Spearin and Eilin Elizabeth t~ JoJ_nl; Living Trust under trust instrument dated March 29, 2001 for the benefit of William Lloyd Spearin and Ellin ElizabeJ)h Spe. arj~{, Or the successors.in~ust ..~/ /./~ . William Lloyd Spearin t/ - borrower Ellin Elizabeth Spearin, Trustee of the William Lloyd Spearin and Ellin Elizabeth Spearin Living Trust under trust instrument dated March 29, 2001 for the benefit of William Lloyd Spearin and Ellin Elizabeth Spearin, or the successors in trust Ell-in Elizabeth Sl~arin -- --~/ ~ - borrower BY SIGNING BELOW, the undersigned Revocable Trust Settlor(s) acknowledges all of the terms and covenants contained in this Inver Vivos Revocable Trust Rider and agrees to be bound thereby. William Lloyd Spearing -Revocable Trust Settlor Ellin E-~izabethq~Pearin-'" ~e~Re~ocable Trust Settlor 191 LEGAL DESCRIPTION A portion of the N1/2NWI/4 Section 24, T36N, RllgW, 6th P.M., Lincoln County, Wyoming, being more particularly described as follows: BEGINNING at a point in the south line of said N1/2NW1/4, said point being 601.68 feet S89o29,33,,W from the BLM type monument found marking the Southeast Corner of said N1/2NW1/4; thence S89o29,33,W 762.32 feet; thence North 927.80 feet to a point in the Northerly line of the prope~rty described in that "Affidavit Affecting Title Correcting Legal Desription filed 29 SEP, 98 Number 853651, in Book 418 PR, Page 560 of the Lincoln County public records,, thence N84°58'41"E, along said North line, 338.47 feet; thence N57o48,15,,E, 135.07 feet; thence Ni6o24,02,,E 121.66 feet; thence N0.31,12,W 168.77 feet; thence East 278. 00 feet; thence South 1308.11 feet, to the point of beginning.