Loading...
HomeMy WebLinkAbout895160After Recording Return To: Robertson & Anschutz - Post Closing 10333 Richmond Avenue, Suite 540 Houston, TX 77042 Prepared By: Roberlson & Anschutz. P.C. 10333 Riclunond Avenue, Suite 550 Houston, TX 77042 895160 RECEIVED L1NCOLI'i COUHTY CLERK 03 !,!Or -'/ Pt 3'1 MORTGAGE La. No. §997ZZfiSg MIN No. 100052599972:~682§0 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 Inslnunent" means this document, which is dated November 6, 2003, together with all Riders to this document. (B) "Borrower" is Terry Williams and spouse, Mary Rose Moon. Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation Ihal is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is USA Home Lending Corporation. Lender is a corporation organized and existing under the laws of the Slate of Texas. Lender's address is 10900 Slonelake Boulevard', Suite 110, Austin, TX 78759. (E) "Note" means the prondssory note signed by Borrower and dated November 6, 2003. The Note states that Borrower owes Lender One Hundred Twenty Eight Thousand and no/100 Dollars (U.S. $128,000.00) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than December 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 under this Security Inslrument, plus interesl. (H) "Riders" means all Riders to this Security lnstrumenl lhat are execuled by Borrower. The following RiderS are to be executed by Borrower [check box as applicable]: [X] Adjustable Rate Rider [ ] Balloon Rider [ ]Rate Improvement Rider [ ] 1-4 Family Rider I Condominium Rider ]Planned Unit Development Rider ] Addendum to ARM Rider I1 ( ]Second Home Rider [ ] Biweekly Payment Rider [ ]Construction Loan Rider [ ]Subordinate Lien Rider (1} "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances aud 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 bya condominium association, homeowners association or similar organization. WYOMING--Single Famlly--F~aie Mae/F~nldie Mac UNIFORM INSTRUMENT (R&A) 4531558 - sicmers.wy- Rev. 10/0Z/Z001 Form 3051 1/01 (Page 1 of 13 Pages) (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 lo order, instruct, or authorize 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, transfers initiated by lelephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Ilems" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of tile Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Morlgage Insurance" means' insurance protecting Lender against the nonpayment of, or default on, Ihe Loan. (O) "Periodic Payment" means the regularly scheduled amounl 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 Seltlement Procedures Act (12 U.S.C. §2601 el seq,) and ils implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time 1o lime, or any additional or successor legislation or regulation that governs Ihe same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related morlgage loan" even if the Loan does not qualify as a "federally related morlgage 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 IN THE PROPERTY This Security Instrument secures lo Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Inslrument and ihe Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property !ocaled in the County of Lincoln: LOT 74 OF AMENDED PLAT OF STAR VALLEY RANCH COUNTY, WYOMING AS DESCRIBED ON THE PLAT NO. COUNTY OFFICIAL RECORDS PLAT 1, LINCOLN 427346 OF LINCOLN wblch currently has the address of 801 Spruce Drive, Thayae, WY 83127 ("Property Address"): WYOMING--SIngle Family--Fam~ie Mae/Freddie Mac UNIFORM INSTRUMENT Form ~051 1/01 (Page 2 of 13 Pages) (R&A} 4531558 - sicxners.wy- Rev. 10/07/2001 TOGETHER WITH all the improvements now or hereafter erected on the property, aud 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 exercise any or all of those inlerests, 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 Borrower is lawfully seised of the eslate hereby conveyed and has the right to mortgage, grant 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 tile 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 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 Trausfer. 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 Section 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 rights hereunder or prejudice to its rights to refuse such payment or partial payments iu the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current'. If Borrower does not do so wi[hin a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in tile future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied byLender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under tile 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 tile principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient 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 WYOMING--Single Famlly--Faamie Mae/Freddie Mac UNIFORM INSTRIJMENT (R&A) 4531558 - sicmers.wy z Rev. 10/02/2001 Form 3051 1/01 (Page 3 of 13 Pages) 288 Borrower to the repayment of the Periodic Payments if, and to the extent thai, each payment can be paid in full. To the extent thal any excess exists after the payment is applied to the full paymenl of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Nole shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can atlain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items 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 ail notices of amounts to be paid under INs 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. Lt!nder may waive Borrower's obligalion to pay to Lender Funds for any or all Escrow 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 payment within such time period as Lender may require. Borrower's obligation Io make such payments and to provide receipts shall for all purposes be deemed to be a covenanl 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 uuder Section 9 and pay such amount and Borrower shall then be obligaled 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 amounts, 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 lime specified under 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 othenvise in accordance with Applicable Law. The Funds shall be held in an institulion whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposils are so insured) or in any Federal Home Loan Bank. Lender shall apply Ihe Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, 'annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interesl or earnings on the Funds. Borrower and Lender can agree in writing, however, thal interest shall he paid on the Funds Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shail 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 Io ~nake up the shortage in accordance with RESPA, but in no more than 12 monthly paymenls. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. WYOMING--Single Famlly--Fasmi~ Mae/F~ddie Mac UNIFORM INSTRUMENT (R&A) 4531558 - slc~ners.wy- Rev. 1010212001 Form 3051 1/01 (Page 4 of 13 Pages) Upon pay~nent in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that tbese items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in wriling 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 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 bolder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this' Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire; hazards iucluded 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 determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower sball 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 amonnt of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previQusly in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insnrance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest .at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower' obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the evenl of loss, Borrower shall give prompl notice to tile insurance carrier and Lender. Lender may make proof of loss if nol made promplly by Borrower. Uuless Lender and Borrower olherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be WYOMING--Single Family--Fam~e Mae/Freddie Mac UNIFORM INSTRUMENT (R&A) 4531558 - slcmers.wy - Rev. 10/02/2001 Form 3051 1/01 (Page 5 of 13 Pages) applied to restoration or repair of the Property, if the resloralion or repair is econmnically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right lo hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. · Lender ~nay disburse proceeds for the repairs and resloration in a single payment or in a series of progress paymenls 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 Inslrumenl, whelher or unl lhen due, with the excess, if any, paid lo Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If. Borruwer abandons the Property, Lender may file, negotiate and seltle any available insurance claim and related mailers. If Borrower does nol respond within 30 days to a notice from Lender thai the insurance carrier has offered to settle a claim, then Lender ~nay negotiale and settle the claim. The 30-day period will begin when lhe notice is given. In either event, or if Lender acquires the Properly under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights lo any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrumenl. and (b) any other of Borrower's righls (other than the right to ally refund of unearned premiums paid by Borrower) under all insnrance policies covering the Property, insofar as such rights are applicable to the coverage of Ihe Property. Lender may use Ihe insurance proceeds either Io repair or restore the Property or to pay amounts unpaid under the Nole or this Security Instrument, whether or nol then due. 6. Occupancy. Borrower shall occupy, eslablish, and use the Property as Borrower's principal residence within /30 days afler the execulion 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 unreasonably withheld, or unless exlenuating circmnslances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall destroy, damage or impair the Property, allow the Property to deteriorale or commit waste on the Properly. Whelher or not Borrower is residing in the Property, Borrower shall mainlain the Property in order lo prevenl the Property from deteriorating or decreasing in value due ~o ils condition. Unless it is delermined pursuanl lo Section 5 thal repair or restoration is not economically feasible, Borrower shall promptly repair the Property ifdamaged to avoid furlher deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Properly, 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 payinent or in a series of progress payments as the work is compleled. If the insurance or condemnation proceeds are not sufficient 1o repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or resloration. Lender or ils agent ~nay make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect tlie interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior lo such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or auy persons or entities acting al the direction of Borrower or with Borrower's knowledge or consenl gave materially false, misleading, or inaccurate information or stalements lo Lender (or failed to provide Lender with malerial information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a} Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b} there is a legal proceeding that might significantly affect Lender's interest in Ihe Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for WYOMING--SIngle Family--Fanaie Mae/Freddie Mac UNIFORM INSTRUMENT (R&A) 4531558 - sicmers.wy- Rev. 10/02/2001 Form ~051 1/01 (Page 6 of 13 Pages) 29! 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, tben Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: {a) paying any sums secured by a lien which has priority over this Security Instrument; (b) 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 the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not bare to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts-disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender .to Borrower requesting payment. If this Security Instrument is on a leasehold. Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided sucb insurance and Borrower was required to make separately 'designated payments toward the pre~niums for Mortgage Insurance, Borrower shall pay the pre~niums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of tbe Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding 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 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 premiums for Mortgage Iusurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premimns for Mortgage Insurance. Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such 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 tolal 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 insurer and the other party (or parties) 1o 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 tbe Note, another insurer, any reinsurer, any other entity, or any affiliate of any of tbe foregoing, may receive (directly or indirectly) amounts that derive WYOMING--Single Famlly--F~,~u. Mae/Freddie Mac UNIFORM INSTRUMENT (R&A) 4531558 - sicmers.wy - Rev. 10/02/2001 Form 3051 1/01 (Page 7 of 13 Pages) ,:,92 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 premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: {a} Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect Ihe rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive ceriain 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 prem~mn that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect sucli Property to ensure the work has been completed to Lender's salisfaction, 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 this Security Iustrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the a~nount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, tile sums secured by this Security Instrument shall be reduced by the amount of Ihe Miscellaneous Proceeds multiplied by Ihe following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immedialely before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before tile partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value; unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in Ihe next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply Ihe Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument. whelher or not then doe. "Opposing. Party" means tile third party that owes Borrower Miscellaneous Proceeds or the party agains~ whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgmenl, could result in forfeiture of the Property or other material impairment of Lender's interest WYOMING--Single Famlly--Famale Mac/Freddie Mac UN1FORM INSTRUMENT Form 3051 1/01 (Page 8 of 13 Pages) (R&A} 4531558 - sicmers.wy- Rev. 10/02/2001 t) in lhe Property or rigbts tinder this Sect, rily Instrumenl. Borrower can cure such a defaull and. ifaccele,'ation I,as occurred, reinstate as provided in Section 19, by causing lite aclion or proceeding Ia be dismissed wilh a ;'uling that. in Lender's judgment, precludes forfeiture of the Property m' other material i,npairinenl of Le,~der's interest in lhe Properly or righls under Ibis Securily Ins(ri,men(. The proceeds, of any award or claim for damages Ihat are altribulable lo lite impairmeht of Lender's interest in lhe Property are hereby assigned and shall be paid Io Lender. All Miscelhmeous Proceeds that are not applied la restoration Or repair of llie Property shall be applied in lhe re'der provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Exlension of the lime for paymenl or modification of amorlization of lite st,ms secured by lids Security Instrument granled by Lender In B6rrower or any Successor in Interest of Borrdwer shall not operate to release Ihe liability of Borrower or a,~y Snccessnrs iii Inlerest of Bm'rower. Lender shall not be required Io cmnmence proceedings against any Successor in Interest of Borrower or to reft,se to exlend time for payment or olherwise modify amm'lizalion of Ihe snms sec,tred by this Secnrity lnslrumenl by reaso;~ of any dema,~d made by lite original Borrower or aqy Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceplance of payments from third persons, col(lies or Successors in h, teresl of BmTower or in amounts lets than ll,e amount then due. shall not be a waiver of o,' preclude lite exercise of any right or re,nedy. 13. Joint and Several Liabilily; Co-signers; Succe~o~ and A~signs Bound. Borrower covenants and agrees lha/ Borrower's obligaiions and liability shall be join/ and several. However. any Bo,'rower who co-signs this Security Instrument but does not execule lite Note {a "co-sigoer"): (a) is co-signing this Secnrily I,~strument only to morlgage, grant and convey the co-signer's ioleresl in Ihe Property under tile terms of this Secnrity Instrument; (b) is not persomdly obligated to pay lhe su,ns secured by this Security Instrument: and (c) agrees that Lender and any oilier Borrower can agree Io exteud, modify, fro'bear or make any accmnnmdaiimts wilh regard to Ihe lerms of this Securily lustrumenl or the Nole wilhout Ihe co-signer's COllsent. Subject Io the provisions of Seclion 18, any Successor in Interest of Borrower who assumes Borrower's obllgalions under lhis Security Instrument in writing, and is approved by Lender. shall obtain all of Burrower's rights and benefits nnder Ibis Security Inslrument. Borrower shall ,mi be released from Borrower's obligations a,td liability under this Security lnslrnment unless Lender agrees to such release in writing. The covenanls and agreements of this Secm'ity'Inslrnnmnt shall bind (excep{ as provided io Seclioq 20) and beuefil Ihe successors and assigns of Lender. 14. Loan Clharges. Lemler may charge Borrower fees for services performed'in conneclion with 'Borrower's default, for ihe purpose of prolecli,,g Lender's i,,lerest in the Properly and rights mnler this Secu,'ity Inslrmnent. inch, ding. hut not Ii,oiled to. altorneys fees, property lnspectio,~ and valualion fees. I,~ regard to any otber fees, the absence of express anlhority in Ibis Securily. Instrument Io charge a specitic fee In Borrower shall not be construed at a prohibilion on lite charging of such fee. Lender may not charge fees thai are expressly prohibited by il,is Security Instrument or by Applicable Law. If the Loan It subject to a law which sels maximum loan charges, and that law it finally inlerpreled so that the interest or other loan charges collected, or Io be collected in conneclion wilh the Loan exceed tl,e permitted limits, then: (a) any stlch loa,~ charge shall be reduced by the amount necessary to reduce Ihe cha,'ge Io Ihe permitled limil; and (b) any sums already collected fi'mn Borrower which exceeded permiited limits will be refimded lo Bm'rower. Lender may choose to make this refund by reducing ihe prhtcipal owed umler the Nole or by making a direct payment lo Borrower. Ifa relimd reduces principal, lhe reduclion will be Irealed as a Partial prepaymenl without any prepayment charge (whether or nola prepayment charge is provided for u,tder tim Nole}. Borrower's acceptance of any .such refund made by direct payment to Bm'rower will constilute a waiver of any righl of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower m' Lender in connection wittl this Security Inslrument musl be itt writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given 1o Bm'rower when mailed by firsl class ,nail or when aclually delivered lo Borrower's notice address if se,it by othe,' means. Notice to any one Borrower shall constitute ,mitre to all Borrowers unless WYOMING--Single Fa,nlly--F::,.,.,,,i.. Mae/Freddie Mac UNIFORM IIqS'FRLIMFMT {R&A} 1531558 - ~lcmer,~.wy- Rev. 10102/2001 Form 3051 l/Ol (Page 9 of ILl Page,,} Applicable Law expressly requires olherwise,. The notice address shall be the Property Address unless Borrower has designaled a substilute notice address by notice to Lender. Borrower shall promplly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only reporl a change of address lhrough that specified procedure. There may be only one designaled notice address under this Securily Inslrumenl at any one time, Any notice Io Lender shall be given by delivering it or by mailing il by first class mall to Lender's address slated herein unless Lender has designated another address by nolice to Borrower. Any notice in con. neclion with this Security Inslrument shall nol be deemed Io have been given to Lender until actually received by Lender. If any nolice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy/be corresponding requirement under this Security Inslrument. 15. Governing Law; Severability; Rules of ConslrUclion. This Security Inslrument shall be governed by federal law and Ihe law of the jurisdiction in which Ihe Property is located. All righls and obligations conlained in lhis Security Inslrument are subjecl Io any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicilly allow Ihe parties Io agree by conlracl or il mighl be silenl, bul such silence shall nol be conslrued as a prohibilion againsl agreement by conlracl. In Ihe event that any provision or clause of this Securiiy Instrument or the Note conflicls with Applicable Law, such'conflict shall not affect other provisions of this Security Instrument or the Note which can be giveu effecl wilhoul the conflicting provision. As used in this Security Inslrument: (a) words of the masculine gender shall mean and include corresponding neuler words or words of tile feminine gender; (b) words in lhe singular shall mean and inclnde Ihe plural and vice versa; and (c) the word "may" gives sole discretion without any obligation Io take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Nole and of this Security Instrumenl. 18. Tr'~nsfer of the Properly or a Beneficial Interesl in Bon'ower. As used in this Section 18, "Inleresl in tile Property" means any legal or beneficial interest in the Property, including, hul nol limited Io, those beneficial interests transferred in a bond for deed, contracl for deed, inslallment sales contract or escrow agreement, the intenl of which is the transfer of lille by Borrower at a fulure date Io a purchaser. If all or any part of the Property or any lnleresl in lhe Properly is sold or Iransferred (or if Borrower is nol a nalural person and a'beneficial inlerest in Borrower is sold or transferred) withoul Lender's prior writlen consent, Lender may require immediate paymenl in full of all sums secured by Ihis Security lnslrumenl. However, this option shall nol be exercised by Lender if such exercise is prohibited by Applicable Law. If Leuder exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of no/ less than 30 days from the dale Ihe nolice is given in accordance with Section 1S within which Borrower musl pay alt sums secured by lhis Security Inslrument. If Borrower fails In pay these sums prior to the expiration of this period, Lender may invoke any remedies permilted by this Security Instrument withoul further notice.or demand on Borrower. 19. Borrower's Right to Reinslate After Acceleration. If Borrower meets certain conditions, Borrower shall have the righl lo have enforcement of this Security Instrument discontinued at any lime prior to the earliest of: (a) five days before sale of the Properly pursuanl Io any power of sale conlained in this Security Instrument; (b) such other period as Applicable Law might specify for the lermination of Borrower's right to reinstate; or (c) entry of a judgment enforcing Ihis 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, bul nol limited to, reasonable allorneys' fees, property inspection and valuation fees, and olher fees incurred for the purpose of protecting Lender's interest in tile Property and rights under this Security Instrument; and (d) takes such aclion as Lender may reasonably require lo assure thai Lender's interest in the Property and rights under this Security lnstrumenl, and Borrower's obligation lo pay the stuns secured by this Security Instrument, shall continue unchanged. Lender may require that Burrower pay such reinslalement sums and expenses in one or more of the following forms, as selecled by Lender: (a) cash; (b) money order; (c) certified check, bank check, Ireasurer's check or cashier's check, provided any such check is drawn upon an instilution whose deposits are insured by a federal WYOMING--SIngle Family--Fam~ie Mae/Freddie Mac UNIFORM INSTRUMENT (R&A) 4531558 - slcmers.wy- Rev, 10/02/2001 Form 3051 I/IH (Page 10 of 13 Pages) agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together witb this Security Instrumen0 can be sold one or more times witbout prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collecls Periodic Payments due under the Note and this 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 slate the name and address of the new Loan Servicer, the address' to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, Ihe mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to'any judicial action (as either an individual litigant or the member ora class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that tbe other party has breached any provision of, or any duty owed by reason of. this Security Instrument, until such Borrower or Lender has notified the other party (with such nolice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant lo 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. Ha?ardous 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 flammable 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. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances. or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting, the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two senlences shall not apply to the presence, use, or storage on the P.roperty 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 nolice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary. Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. WYOMING--SIngle Famlly--Fmmie Mae/F~ddie Mac UNIFORM INSTRUMENT (R&A) 4531558 - slcmers.wy - Rev. 10/02/2001 Form 3051 1/01 (Page 11 of 13 Pages) NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 2~.. 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 date, not less Ihan 30 days from the date the notice is given to Borrower, by which the default must be cured: and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right !o 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 s~,ms 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 possession 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) lo all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) lo all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Secm'ity Instrmnent. 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. ?-4. Waivers. Borrower releases and waives all rights under and byvirtue of the homestead exemption laws of Wyoming. REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this Deed of Trust to give Notice to Lender, at Lender's address set forth on page one of this Deed of Trust, of any default under the superior encumbrance and of any sale or other foreclosure action. It is expressly agreed by Borrower and Lender that the lien created by this Deed of Trust is inferior and subordinate to that certain lieu created by Deed of.Trust ("First. Deed of Trust") dated NOVEMBER 6, ~-003 , executed by Borrower to secure that certain Note ("First Lien Note") of even date therewith in the original principal sum of $17.8,000.00 and payable to the order of USA HOME LENDING CORPORATION  BnY~eNnltNaGndBilEILaOnl~v~il~eO~r;xweecrut~lcebp~sn~'~rdO~avgerreeasn&Ortehc;r;eeTswiat~dit~Ovenants contained in this ..~TJ',~ -Borrower lV~ar (Rose {~oon . (- -Borrower (Seal) (Seal) -Borrower -Borrower WYOMING--Single Family--Fmmie Mae/Freddie Mac MODIFIED BY Rata Form 3851 1/80 (Page 12 of 13 Pages) (R&A) 4531559 - sicmers2.wy - Rev. 12/18/2001 STATE OF WYOMING, Lincoln County ss: The foregoing instrument was acknowledged before me this hlovomher 7.. 700't , My Commission expires: February 2, 2006 Notary Public NOT/UTi PLIBIJG I~YOMING--Slngle Family--Fannie Mae/FvMdie Mac UNIFORM INSTRUMENT (R&A) 4531558 - sicmers.wy- Rev. 10/0Z/Z001 Form 3051 1/01 (Page 13 of 13 Pages) ADJUSTABLE RATE RIDER (One-Year Treasury Index--Rate Caps) Loan No.: 99972268Z THIS ADJUSTABLE RATE RIDER is made this slx~h day of November, 2003 and is incorporated into. and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to USA Home Lending Corporation (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 801 Spruce Drive Thayne, WY 83127 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE 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. INTEREST RATE AND MONTHLY PAYMENT CHANGES Tile Note provides for an initial interest rate of 3.875%. The Note provides for changes in the interest rate aod the monthly payments as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the in-st day of December, 2006, and on that day every 12th month thereafter, Each date on which my interest rate could change is called a "Change Date." (B} The Index Beginning wid! the first Change Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United Stales Treasury securities adjusted to a constanl maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before'each Change Date is called the "Currenl Index." If Ibe Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me nolice of this choice. (C) Calculation of Changes Before each Change Dale, the Note Holder will calculate my new interest rate by adding Two and Seven Eighfl~s percentage points (Z.875%) lo the Currenl 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 Ihe limits slated in Section 4(D) below, this rounded amount will be my new interest rate unlil the next Change Dale. The Note Holder will then determine the amount of the monthly paymenl that would be sufficienl to repay the unpaid principal that I am expected to owe al the Change Date in full on the maiurily MULTI~^I'E ADJUSTABLE RATE RIDER-ARM 5-Z--Single Famlly--F,m~: MardF~ddie Ma~ UNIFORM INSTRUMENT Form 3111 1]01 (R&A) 4531558 - rd3111.mls - Rev. 10/0Z/2000 (Page I of 3 pages) Loan No.: 999722682 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 Changes The interest rate I am required to pay at the first Change Date will.not be greater than 5.875% or less than 2.875%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points (2.0%) from the rate of interest I have been paying for the preceding twelve months My interest rate will never be greater than 9.8?5%. {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 paymenl 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 interest rate and the amount of my monlhly payment before the effective date of any change. The notice will include. information required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. Bo TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest itl the Property" means any legal or beneficial inlerest in the Property, including, bul not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installmem sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a fulure 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 information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee: and (b) Lender reasonably determines that Lender's security will not be impaired by tile 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 permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the Iransferee lo keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security lnstrmnent 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 ootice 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 secm'ed by this Security Instrument. If Borrower fails to pay these sums prior MULT1STATE ADJUSTABLE RATE RH~ER-ARM S-Z--Single Family--F.n.n~: Mae/Fn~ddte Ma~ UNIFORM [NSTR~ Form :3111 1/01 (R&A) 4531558 - rd3111.mls - Rev. 10/0Z/2000 {Page 2 of 3 pages). 3O0 ]Loan No.: 999722682 to the eXpiration of this period, Lender may invoke any remedies permitted by this Security Instrument without, further notice or demand on BOrrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rale Rider~ ~--~~'~Vil~ls -Borrower Mary~ose ]q~on ("/ ( - - Bo(lSr:wal,)r (Seal) .(Seal) -Borrower -Borrower MULTISTATE ADJUSTABLE RATE RID.ER-ARM S-Z--Single Famlly--Fal~ Ma~Fnxldle Mac UNIFORM INSTRUMENT Form 3111 !/01 (R&A) 4531558 - rd3111.mls - Rev. 10/02/2000 (Page 3 of 3 pages}