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HomeMy WebLinkAbout895012Remrn To: Kim Majestic Quicken Loans Inc. 20555 Victor Parkway Livoma, Ml 48152 Prepared By: Michelle Lynn 895DI2 RECEIVED LINCOLN COUNT'[ CLERK 03 }~lOV - h PN ~: ! 8 JEANNF ¢~, .... ~OOK ~40 _~p^GE $ ! 4 -[Space Above This l_iHe Fro' Recording Data] 467237860~P MORTGAGE ~4~N 100039046723786089 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 1 l, 13, 18, 20 and 21. Certaiu rules regarding the usage of words used in this document a,-e .also provided in Section 16. (A) "Security Instrument" means this document, which is dated together with all Riders to this document. (B) "Borrower" is Charles h. Grim, a married man, October 21, 2003 Borrower is lite mortgagol-ullder dlis Security [llslrtlm¢llt. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporadou thai is acting solely as a uomiuee I:or Leuder and Leuder's successors and assigns: [VIERS is tile mortgagee under this Security Instrument. M ERS is organized aud 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. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1101 240758010 (~®-6A (WY) looos) ~ 8!5 (D) "Lender" is Quicken Loans Inc Lender is a Corporati on orgauized and existing under tile laws of the State of Mi chi gan Lender's address is 20555 Victor' Parkway. Livonia, MI 48152 (E) "Note" means the pl-omissory note signed by Borrower and dated October 21 2003 The Note states that Borrower owes Leuder NJ nety NJ Fie Thousand Fi ve Hundred and 00/100 Dollars (tLs. $99. 500.00 ) plt,s iuterest. Borrower bas promised to pay this debt in regular Periodic Payments and to pay tile debt in fldl not later than November' 1. 2028 (F) "Property" means tile property that is described below under the heading "Translkr of Rights in the Property." (G) "Loan" means the debt evidenced by tile Note, plus interest, nny prepayment charges and late charges due under the Note, and all sums due under this Security h~strument, plus interest. (H) "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 ~-] Condomiuiunl Rider ~] Second Home Rider ~ Balloou Rider [] Planned Unit Developnrent Rider [] 1-4 Family Rider [--] VA Ride,' ~} Biweekly Payment Rid'er [~] Other(s) [specifyl (I) "Applicable Law" meaus all controlling applicable federal, state and local statutes, regt,lations, ordinances and administrative rules and orders (that bare the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Comnnmity Association Dries, Fees, and Assessments" means all dnes, fees, assessments and other charges that are imposed on Borrower o,- the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of fnnds, other than a trnnsaction originated by check; draft, or similar paper instrument, which is initiated througl~ an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or anthorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, ,taus,ers initiated by telephone, wire transfers, and at,,oma,ed clearinghouse transfers. (L) "Escrow Items" means those items that are described itl Section 3. (M) "Miscellnneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third pa,'ty (other than insurance proceeds paid under the coverage:s described in Section 5) for: (i) damage to, or destructioi~ of, the Property; (ii) condemnation or other takiug of all or any part of the Property; (iii) conveyance m lieu of condemuation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insnrnnce" lneans insurance protecting Lender against tile nonpaylnent'of, or default on, tile Loan. (O) "Periodic Payment" means the regularly scheduled amount dne for (i) principal and interest uuder the Note, plus (ii) auy amounts under Section 3 of this Security lustrument. (P) "RESPA" means the Real Estate Settlement Procedules Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As nsed in this Security Ins,tureen[, "RESPA" refers to all requirements and.restrictions tbat'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.' ~c~-GAIWY) Iooos) Page 2 of 15 Form 3051 1/01 816 (Q) "Successo,' in Interest of Borrowe,'" means any party that bas taken title to the Property, wl~ether or not that party has assumed Bo,'rower's obligatioqs under the Note and/or this Secmity Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secu,-es to Lender: (i) the repayment of the Loan, and all renewals, extensious and modifications of the Note; and (ii) the performance of Bo,','ower's covenants and agreements tinder this Security Instrument and tile Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigus of MERS, witll power of sale, the lbllowing described property located in the Coun[y of L~ rICO] FI : [Type of Recording Jnrisdiction] IName of Recording Jurisdicdonl SEE EXHIBIT "A" ATTACttEDHERETO AND MADE A PART HEREOF. SUBJECT TO COVENANTS OF RECORD, Parcel ID Number: 3436 Hwy 238 ("Property Address"): Auburn which currently bas tile address of ISu'eetl ICityl , Wyoming 83111 IZip Codel TOGETHER WITH all the ilnprovements ]iow or hereafter erected on the property, and all easements, appurtenauces, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of die tbregoing is relErred to in this Security lustrument as the "Property." Borrower uuderstands and agrees that MERS holds ouly legal title to the interests granted by Borrower in this Security Instrument, but, if necessary ~o comply with law or custom, MERS (as nominee for Lender aud Lender's successors and assigns) has the right: to exercise any or all of those interesls, including, but not limited to, tim right to Ibreclose and sell the Property; and to take any action required of Lender includiug, but not limited to, releasing aud canceling this Security Instrument. BORROWER COVENANTS thai Borrower is lawfidly seised oF the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that tl~e Property is uuencumbered, except For encumbrances of record. Borrower warrants and will deI~nd generally the title to the Property agaiust all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combiues uuiform covenants lbr uational use and non-uniform covenants with limited variaHous by jurisdiction Io constitute a uniform security instrument coveHug real property. (~®-6A(WY) 1ooo5) Pa~e 3 of ~5 Form 3051 1/01 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, P~:epayment Charges, aud Late Charges. Borrower shall pay. when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges aud 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 h-~strument shall be made m u.s. currency. However, if any check or other instnunent received by Lender as payment under the Note or this Security Instrument is returned to Leuder unpaid, Lender may require that any or all subsequent payments due tinder the Note and this Security Iustrument be made in one or more of tile I:ollowing forms, as selected by Lender: (a) cash; (b) mouey 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 inst, red by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at tile location designated in the Note or at such other locatioa as may be designated by Leuder iu accordance with the notice provisions m Section 15. Lender may return any payment or partial payment if tile payment or partial payments are inst, fficieut to bring the Loan currelm Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Leuder is not obligated to apply such payments at the time such pay,nents are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on tmapplied funds. Lender may hold such uuapplied fuuds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or returu them to Borrower. If not applied earlier, such fimds will be applied to the outstanding principal balance under the Note immediately prior to lbreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security lustrument or performing the covelrants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in riffs Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under tile Note; (b) priucipal due under the Note; (c) amotmts due under Section 3. Such payments shall be applied to each Periodic Paymeut in the order iu which it became due. Auy remaining anlounts 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 roi' a deliuquent Periodic Paymeut which includes a sufficient amount to pay any late charge due, the payment may be applied to tire deliuquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received froln Borrower to the repayment of tile Periodic Paymeuts if, aud to the extent that, each paymeut 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. Vohmtary prepayments shall be applied first to any prepayment charges and then as described in the Note. Auy application of payments, iusurauce proceeds, or Miscellaneous Proceeds to principal dne nnder the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borro~ver shall pay to Lender on the day Periodic Payments are due under the Note, uutil the Note is paid in.full, a sum (the "Funds") to provide for paymeut o1: amounts due for: (a) taxes and assessments aud other items which can attain priority over this Sectu'ity hlstrument as a lien or enctunbrance on the Property; (b) leasehokl payments or ground rents ou the Property, it' auy; (c) I)remiums for auy and all insurance reqnired by Lender trader Section 5; and (d) Mortgage lusurance premiums, i~f any, or any sums payable by Borrower to Leuder in lieu of the payment of Mortgage Insurance premiums iu 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 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 uotices of amonuts to be paid under this Section. Borrower shall pay Lender the Funds tbr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for an)' or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Fuuds for any or all Escrow Items at ally 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 (~6AIWY) tooos) Pag. 4ot~5 Form 3051 1/01 due for any Escrow Itelns for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within snch time period as Lender may reqnire. Borrower's obligation to make snch payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this SectJrity Insmm~ent, ils tile phrase "covenant and agreement" is used iii 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 hem, 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 lis to any or all Escrow Items at any time by a notice given in accordauce with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such anrounts, that are then reqnired tinder this Section 3. Lender may, at any time, collect and hold Funds iii an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, aud (b) not to exceed the maximum amount a lender cau reqnire tinder RESPA. Lender shall estimate the amount of Funds dne o,r 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, instrumentality, or entity (inclnding Lender, if Lender is an institution whose deposits are so insnred) or in any Federal Home Loan Bank. Leuder shall apply the Ftmds to pay the Escrow Items no later than the time .specified under RESPA. Lender shall not charge Borrower lbr holding and applying the Funds, annually analyzing the escrow account, or verifyiug the Escrow Items, unless Lender pays Borrower interest on the Funds aud Applicable Law permits Lender to make snch a charge. Unless an agreement is made iii writing or Applicable Law reqnires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on tile Funds. Borrower and Lender can agree in writing, however, th:il interest sliall be paid on the Funds. Lender shall give to Borrower, without charge, all annual accounting or' the Funds as required by RESPA. If there is a surplus of Ftmds held in escrow, as defined under RESPA, Lender shall account to Borrower for tile excess fimds in accordance with RESPA. If there is a shortage of Funds held m escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Bo]rower shall pay to Lender the amount necessary to make up the sholtage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Fuuds 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 deficieucy in accordance with RESPA, bnt in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security hrstrument, Lender shall proniptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, frees, and impositions attributable to the Property whicb can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Connnunity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay thenl iii the maimer provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a mauner acceptable to Lender, but only so long as Borrower is perfo,ndng sncb agreement; (b) contests the lien in good faith by, or 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, bnt only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Le~ider subordinating the lien to this Security hlstrument. If Lender determines that any part of the Property is suhject to a lien which can attain priority over this Security lnst~nment, Lender may give Borrower a uotice identifyiug the (~,~-6A(WY) (ooo5) Page 5 of 15 Form 3051 1/01 lien. Within I0 days of the date on'which that notice is given, Borrower shall s/ttisfy the lien or take one or more of tile actions set forth above m this Section 4. Lender may require Borrower to pay a one-time charge tbr a real estate tax verification and/or reporti,]g service used by Lender in connection with this Loan. 5. Property Insurance. Bor,'ower shall keep tile improven]ents now existing or hereafter erected on the Property insured against loss by fire. hazards included within tile term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, fo,' which Lender requires insurance. This insurance shall be maintained in the amouuts (including deductible levels) and tbr the periods that Lender reqnires. What Lender requires pursuant to tile preceding sentences can change during the term of the Loan. Tile insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which 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 determination, certification and tracking services; or (b) a one-time charge for flood zoue determination and certification services and subseqoent charges each time remappings or similar changes occur which reasonably might affect such determination or certil'ication. Borrower shall also be responsible Ibr 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 pnrchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or tile contents of the Property, against any risk, hazard or liability and n]ight provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cOSt of insurance that Borrower could have obtained. Any amot, nts disbu,-sed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note ,-ate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower reqt,esting pnyment. All insurance policies reqnired by Lender and renewnls of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall uame 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 p,-emiums and renewal notices. If Borrower obtains any form of insurauce coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Leuder as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt nodce to the insurance carrier and Lender. Lender may make proof of loss il' ,lot made promptly by Borrower. Unless Lc,icier and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to ,'estoration or repair of the Property, if the restoration or repair is economically feasible and Lender's secnrity is not lessened. Duri~ig such repair and restoration period, Lender shall have the right to hold Snch insurance proceeds until Lender has had an opportunity to inspect such Property to ensu,'e tile work bas been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and resto,'ation in a single payment or itl 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 Bo,-rower any interest or earnings on snch proceeds. Fees for public adjnsters, or other third parties, ~etained 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 secnrity would be lessened, the insurance proceeds shall be applied to the stnns secured by this Security Instrument, whether or not then due, with (~-6A(WY) 10oo5, Pa~ 6 o¢ 15 Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the os'del' provided for in Section 2. If Borrower abandons tile 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 fi'om Lender that the insurance carrier has ofl~:red to settle it chmn, then Lender may negotiate and settle the claim. The 30-day period will begin when tile notice is given. In either event, or if Lender acquires the Property trader Section 22 or otherwise, Bonower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in all amount not to exceed the amonnts unpaid under tile 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 tile Property, insofar as such rights are applicable to the coverage of tile Property. Lender may use tile insnrauce proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy.. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Iustrtnnent 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 tmreasonably withheld, or unless extenuatiug circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protecdou of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or co,nmit waste on the Property. Wllether or not Bo,'rower is residing in the Property, Borrower shall maintain the Property iii order to prevent the Property from deteriorating or decreasing in value due to its contlition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property it' damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or tile taking of, the Property, Borrower shall he 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 itl a series of progress payments as tile work is completed. If the insurance or colldenlnation proceeds are not sufficient to repair or restore the Property, Borrower is not ~elieved of Borrower's obligation I'or the completion Of soch t'epair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such all interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccnrate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limiled to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest ill the Property and Rights Under this Security Instrument. If (a) Borrower fails to perfo~ m the covenants :md agreements contained in this Security Instrument, (b) there is a legal proceeding that .might significantly affect Lender's interest in the Prope.rty and/m rights under this Secmity lnstrmnent (such ils a proceeding in bankruptcy, probate, for condemnation or forfeittne, for enforcement of a lien which may attain priority over this Security Instrunlenl or to enforce laws or regulations), or (c) Borrower has abandoned tile Property, then Lender may do and pay Ibr whatever is reasonable or appropriate to protect Leuder's interest in the Property and rights under this Security Instrument, including protecting and/or assessing tile valne of the Property, and secnring and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in cou,'t; and (c) paying reasonable (~.-6A(WY) Iooos) Page ? o115 Form 3051 1/01 attorneys' fees to protect its interest itl tile Property and/or rights under this Security Instrument, including its secured position m a bankruptcy proceeding. Secnrmg the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violalions or dangerous conditions, and have utilities turned on or off. Although Lender may take action under ii, is Section 9, Lender does not have to do so and is not under any duty or obligation lo do so. It is agreed that Lender incm's no liability for not taking any or all actions authorized under ihis Section 9. Any amounts dishursed by Lender under this Sectiou 9 shall become additional debt of Borrower secnred by this Secnrity Instrumenl. These anaounts shall bear inlerest at tl~e Note rate from dm date or' disbursement and shall be payable, with such interest, upon notice fi-om Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower slmll comply witl~ all the provisions of the lease. If Borrower acquires l~e title to tl~e Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger m writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the preminms required to maintain the Mortgage Insurance in efl~ct. If, I~r any reason, the Mortgage Insurance coverage required 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 premimns lBr Mortgage Insnrance, Borrower shall pay the preminms reqnired to obtain coverage substantially equivalent to the Mortgage Insurance previously in eft~ct, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an ahernate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the iusurance 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 hct that the Loan is ultimately paid in fidl, 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 pre~niums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Eoan and Borrower was required to make separalely designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the preufimns required to mainlain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Leuder's requirement for Mortgage Insurance euds m accordance with any written agreemem between Borrower and Lender providing for such termination or nntil termination is reqnired by Applicable Law. Nothing in this Section 10 afl~cts Borrower's obligation to pay interest at d~e rate provided m the Note. Mortgage Insm'ance reimburses Lender (or any entity that purchases the Note) for certain losses it may incm- if Borrower does not repay the Loan as agreed. Borrower is not a party lo the Mortgage hlsnrance. Mortgage insurers evalnaie their tolal risk on all such insurance in force fi'om time to lime, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are ou terms and conditions that are satisfactory to the mortgage insnrer and Ihe other party (0r parties) to these agree~nents. These agreements may require the mortgage insurer to make payments using any source of fimds that the mortgage insnrer may have available (which may include fimds obtained fi-om Mortgage lnsnrance 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) amonnts that derive h-om (or might be characterized as) a portion of Borrower's payments lbr Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides tbat an affiliate of Lender takes a share of tl~e insurer's risk in ¢xchange l~r a share of the prenliunls paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower bas agreed to pay for Mortgage Insurande, or any otl~er terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to auy refund. ~6A{WYI{ooos} Pa~eSof~5 Form 3051 1/01 (b) Any such agreements will nol affect the rights Burrower has - if any - wilh respect to the Mortgage ]nsnrance under the Homeowners Protection Act of 1998 or any other law. These rights may inclnde the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insnrance terminaled automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assigmnent of Miscellaneous Proceeds; Forfeiture. All Miscellaneons 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 l~asible aud Lender's security is not lessened. Duriug such repair and restoratiou period, Lender shall have the right to hold snch Miscellaneous Proceeds until Lender has had an opportnnity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspectiou shall be undertaken promptly. Lender may pay fi)r the repairs and restoration m a single disbursement or in a series of progress payments as Jl~e work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid ou such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscelhmeous Proceeds. If the restoration or repair is not ecouomicatly 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 dne, with the excess, if auy, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, d~e 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 Bon-ower. Inthe eveut of a partial taking, destruction, or loss in valne of the Property m which the fair market wdue of the Property immediately belBre the partial takiug, destruction, or loss in value is equal to or greater than the amouut of the sums secured by dfis Security Instrument immediately belBre 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 Miscellaueous Proceeds nmltiplied by the IBIIowing fi'action: (a) tl~e total amount of the sums secured immediately before the partial taking, destrnction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destrnction, or loss in value of the Property in which the fair market wdue of the Property immediately before the partial taking, destruction, or loss m value is less than tim amount of the sums secured immediately before Ihe partial taking, destruction, or loss in value, unless Borrower and Leuder otherwise agree in writing, tl~e Miscellaneous Proceeds shall be applied to the sums secured by this Secnrity Instrument whether or not tl~e sums are then due. If the Property is abandoned by Borrower, or if, after notice by Leuder to Borrower that the Opposing Party (as del'ined in the next sentence) offers to make an award to settle a clai~n tBr damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the' sums secured by this Security Instrument, whether or not dmu due. "Opposing Party" means tl~e thhd party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if auy actiou or proceediug, whether civil or crimiual, is begun that, in Lender's judgment, could resuh iu forfeiture of the Prope~ty or other material impairment of Lender's interest in the .Property or rights under this Security lustrument. Borrower can cure such a default and~ if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest m tl~e Property or rights under this Security h~strument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. (~-6A{WY} {ooo5} Pa~e 9 ol ~5 Form 3051 1/01 823 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amorlization of the sums secured by this Security Instrnn~ent by reason of any demand made by the original Bo,','ower or any Successors m lnterest oi' Borrower. Any lbrbearaoce by Lender m exercising any right or remedy inclnding, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the anlount d~en due, shall uot be a waiver of or preclude the exercise of auy right or remedy. 13. Joint and Several Liability; Co-signers; Successors aud Assigns Bound. Bo,','ower coveuauts and agrees that Borrower's obligations and liability shall be joinl and several. However, any Borrower who co-signs this Security Instrument but does uot execute the Note (a "co-signer"): (a) is co-signing this Security Iustru,nent only to mortgage,' grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is uot personally obligated to pay the sums secured by this Security Instrnment; and (c) agrees that Lender and any other Borrower can agree to exlend, modify, forbear or make any accommodations with regard to tile ternrs of dfis Security lustrument 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 uuder this Security lustrument in writing, and is approved by Leuder, shall obtain all of Borrower's rights and benefits under this Security lustrument. Borrower shall not be released from Borrower's obligations and liahility nnder this Security Instrun~ent unless Lender agrees to such release in writing. The covenants and ag,'eements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns o1: Lender. 14. Loan Charges. Lender ~nay charge Borrower l'ees for services perl'ormed in co,mection with Borrower's default, for the pnrpose of protecting Leuder's interest in the Property and rights under this Security Instrument, including, but not limiled to, attorneys' fees, property mspeclion and valuation lees. In regard to any other fees, the absence of express at, thority in this Secority Instrument to charge a specific fee to Borrower shall uot be construed as a prohibition on the charging of such fee. Lender may not charge lees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets nlaxilntull loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to he collected in connectiou witl~ tile Loau exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums ah'eady collected from Borrower which exceeded permitted limits will be refanded to Borrower. Lender may choose to make this refund by reducing the priucipal owed under the Note or by making a direct payment to Borrower. If a retired reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for uuder the Note). Borrower's acceptance of any such refund made by direct paymeut 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 m connection with this Security last,-uu~ent must be iu writing. Any ootice to Borrower in conuection with this Security Instrument shall be deenred to have been given to Borrower when mailed by first class mail o,' when actually delivered to Borrower's notice address if seal by other rneaas. Notice lo any one Borrower shall constitute uotice to all Borrowers tmless Applicable Law expressly requires otherwise. Tile 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 tbr reporting Borrower's chaoge of address, then Borrower shall only report a change of address throngh that specified procedure. There may be only one designated notice address under this Security Instrument at any one tirne. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address slated herein uuless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrmnent shall not be deemed to have been given to Lender until aclually 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 ll~is Security Instrument. (~}~-6AIWY) (0005) Page ~0 o~ ~5 Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations coutamed in this Secnrity Instrument are subject to auy requirements and limitations of Applicable Law. Applicable Law might explicitly or implicidy allow the parties to agree by contract or it Inight be silent, but such silence shall not be constrned as a prohibition against agreement by contract. In the event that any p~:ovision or clause of tiffs Security lnstrnment or the Note conflicts with Applicable Law, snch conflict shall not affect other provisions of this Security [nstrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrumeut: (a) words of tile 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 Iustrument. 18. Transfer of the Property or a Beneficial Interest itl Borrower. As used iu this Section 18, "Interest in the Property" meaus any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sides contract or escrow agreement, the intent of which is the transfer of title by Borrower at a fnture 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 reqnire immediate payment m hdl 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 tile notice is given iu accordance with Seclion 15 within which Borrower nmst pay all sums secnred by this Security Instrument. If Borrower fails to pay these snms prior to tile expiration of this period, Lender may invoke auy remedies permitted by this Secm ity [nstrtl~lleu! withont further notice or demand on 13orrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, 13orrower shall have the right to have enforcement of this Security Instnunent discontinned at an)' time prior to the earliest of: (a) five days before sale of the Property ptn-suant to auy power of sale contained m this Security Iustmment; (b) such other period its Applicable Law might specify for the termmatiou of Borrower's right to reinstate; or (c) entry of a judgment enl'orcing this Security lnstrt, ment. Those conditions are that Borrower: (a) pays Lender all sums which then would be dne nnder this Security Instrument and the: Note as if no acceleration had occurred; (b) cures any defimlt of any other coveuants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, includiug, but not limited to, reasonable attorneys' fees, property inspection and valnation fees, aud other lees iucurred for the purpose of protecting Lender's interest in tire Property and rights under this Security lnstrnment; and (d) takes such action as Lender may reasonably reqnire to assure that Lender's interest in tile Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security h~strnment, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or'more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasnrer's check or cashier's check, provided any snch check is drawu np0n an institution whose deposits are insured by a l~de~al ageucy, instrumentality or entity; or (d) Elecuonic Funds Trausfer. Upon reinstatemenl by Borrower, this Security Instrument and obligations secnred hereby shall remain fully effective as if no acceleration had occurred. However, this right to reiustate 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 Instrumem) can be sold one or more times without prior uotice to Borrower. A sale might result in a change in tile enlity (kuowq as the "Loan Servicer") that collects Periodic Payments due under the Note and this Secnrity Instrument and performs other mortgage loan servicing obligations under the Note, this Security lnstrumeut, and Applicable Law. There also might be one or more chauges of the Loan Servicer unrelated to a sale oi' the Note. If there is a change o1' the l~oan Servicer, Borrower will be given written notice of lite change which will state tim name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA (~-6AiWY) ~oo05) Page 11 of 15 Form 3051 1/01 825 requires iu connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loau Servicer other thau the purchaser of the Note, the mortgage loan serviciug obligations [o Borrower will remain witl~ the Loan Servicer or be transI~rred to a successor Loan Servicer and are not assumed by the Note pnrchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, joiu, 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 ~o this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reasou of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach aud afforded the other party hereto a reasonable period after the giving of such notice Io lake corrective action. If Applicable Law provides a time period which must elapse before certain action can he takeu, that time period will be deemed to be reasonable Ibr proposes of this paragraph. The notice of acceleradou and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration giveu to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportuuity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used m this Section 21: (a) "Hazardous Substances" are those substances defined as (oxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substauces: gasoline, kerosene, od~er flammable or toxic petroleum products, toxic pesticides and herbicides, volalile solvents, materials containing asbestos or tBrmaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of die jnrisdicdon where the Property is located that relate to health, satkly or environmeutal protection; (c) "Environmeulal Cleannp" iucludes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition thai can cause, contribute to, or olherwise trigger an Environmental Cleannp. Borrower shnll not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, ou or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) tl~at is in vioh, ion of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the preseuce, use, or release of a Hazardous Substance, 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 tlmt are generally recognized to be appropriate to normal residential uses and to maiulenance of the Property (including, but not limited lo, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmeulal or regnlatory agency or private party involving the Property and any Hazardous Substance or Euvironmental Law of which Borrower has actnal knowledge. (b) any Environmental Coudidon, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any coudition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, dmt any removal or other remediation of any Hazardous Substauce affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothiug herein shall create any obligation on Lender for an Environmental Cleanup. (~I,,~6A(WY} (0005) Page 12 o115 Form 3051 1/01 826 NON-UNIFORM COVENANTS. Borrower and Lender further covenant aod agree as tbllows: 22. Acceleralion; Remedies. Lemler shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Secucity Instrument (but not prior to acceleration trader Secti0u 18 tmless Applicahle Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, uot less than 30 days from the date the uolice is given to Borrower, hy which the default must be cra'ed; and (d) lhat failure to cure the default on or before the date specified in the uofice may result in acceleration of the sums sect, red 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 hriug a court action to assert the nou-existeuce 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 Iustrumeut without further demaud aud may iuvoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect till expeuses iucurred in pursuiug the remedies provided iu this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Leuder invokes the power of sale, 'Lender shall give notice of inteut to' foreclose t0 Borrower and to lhe person in possession of the Property, if different, iu accordance with Applicable Law. Lender shall give uotice of the sale to Borrower in Ibc manuer provided in Section 15. Leuder shall publish the notice of sale, aud the Property shall be sold in the manner p,'escribed hy Applicable Law. Lender or its desiguee 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, hut not limited to, reasonable atlorneys' fees; (b) to ali stuns secured hy Ihis Sect, rity Instrument; and (c) any excess to the persou or persons legally entitled to it. 23. Release. Upon paymeot 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 l~e for releasing this Security Instrument, but only if the lee is paid to a third party t'or services rendered aud dm charging oi' the tee is permitted under Applicable Law. 24. ~¥aivers. Borrower releases and waives all rights under and by virtue of tl~e homestead exemption laws of Wyoming. (~I~-6AIWY) 1o0o5) Page ~3 o! 15 Form 3051 1/01 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 il. Witnesses: C ar es A. Grim lO/21/200~,Seal) (Seal) '(Seal) (Seal) (Seal) -Borrower -~ol'rowl2r (Seal) (Seal) -~Ofl'OWer -Bol i'o Wel' 100051 P~ s4 o~ ~5 Form 3051 1/01 STATE OF WYOMING, L i ncol n The foregoing instrument was acknowledged before me this by Charles A. Grim, a married man. ' October County ss: 21 2003 My Commission Expires: Nma,'y Public *87 ~NE1J. Lm( ~ - NOTARY (~c,~-6A(WY) Iooos) Page 15 ol 15 Form 3051 1/01 EXHIBIT A Lot 3 of the Ivan Tippetts Subdivision, Lincoln County, Wyoming as described on Plat' No. 857454 filed March 19, 1999 in the records of Lincoln County Clerk.