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HomeMy WebLinkAbout895236 ReturllTo: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 Prepared By: WELLS FARGO HOME MORTGAGE, INC. RECEIVED LINCOLN COLIt,~Ty CLERK BOOK ...: ..... 1919 DOUGLAS,, OMAHA, 681010000 NE [Space Above Tiffs Line For Recording Dnta] MORTGAGE DEFI'NiTIONS Words used in multiple sectious of tiffs document are defined below and other words are defined in Sections 3, l 1, 13, 18, 20 and 21. Certain rules regarding fl~e usage of words used iu tiffs document are also provided, in Section 16. (A) "Sect. rity lnstrtm]ent" means this document, which is datedNOVEMBER 06, 2003 together with all iRiders to this document. (B) "Borrower" is NATHAN CRAIG HEISS AND KATHY RENE HEISS, HUSBAND AND WIFE Borrower is the mortgagor under this Security. Instrument. (C) "iLender" is WELLS FARGO HOME MORTGAGE, INC. Leltder is a CORPORATION orgallized and existing under tile laws of THE STATE OF CALIFORNIA 0035383751 WYOMING-Single Family~Fannie P, qae/Freddie Mac UNIFORM INSTRUMENT Page 1 of 15 Initial VMP MORTGAGE FORMS - (1~OO)521-7291 Form 3051 1/01 528 Lender's address is P.O. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under fids Security Instrumeut. (D) "Note" means the pronfissory note signed by Borrower aud datedNOVW. MBER 0 6, 2 003 The Note states fl]at Borrower owes Lender ONE HUNDRED .NINETY NINE THOUSAND EIGHT HUNDRED AND 00/100 Dollars (U.S. $ * * * * 199,8 0 0.0 0 ) plus interest. Borrower has promised to pay fllis debt in regular Periodic Payments and to pay rite debt in full not later flmn DECEMBER 01, 2 02 3 (E) "Property" means die property fl]at is described below under rite heading "Transfer of Rights in the Property." (1~) "Loau" means file debt evidenced by the Note, plus interest, any prepayment charges and late charges due under fl~e Note, and all stuns due under fids Security Insmm~eut, plus interest. (G) "iR, tiers" means all Riders to fids Security Instnm~ent flint are executed by Borrower. ri'he lbllowing Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~] Condominimn Rider [~] Second Home Rider ~-] Balloon Rider ~-~ Planued Unit Development Rider ~ 1-4 Family Rider 1--] VA Rider ['--] Biweekly Payment Rider [---] Of]]er(s) [spec,fyi (fl) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordimmces and adnfinistrative rules and orders (flint have file effect of law) as well as all applicable final, non-appealable judicial opinions. (1) "Comnmnity Associatio, Dues, Fees, and Assessments" means all dues, fees, assessments and other charges flint are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electrouic Funds Transfer" means any transfer of funds, off, er titan a transaction originated by check, draft, or similar paper instruumnt, which is initiated fl~rough an elecm)nic term, md, telephonic iustrument, computer, or magnetic tape so as to order, iustruct, or auflmrize a fi~mncial institution to debit or credit an account. Such term iucludes, but is ~mt lind]ed to, point-of-sale transfers, au]ohm]ed teller nmcbine transactious, transfers ,iff]ia]ed by telephone, wire trausfers, and automated clearinghouse transfers. (K) "Escrow Items" means flmse items flint are described ill Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (off, er than insnrauce proceeds paid under the coverages described in Section 5) tbr: (i) danmge to, or destruction of, the Property; (ii) condenmation or off,er taking of all or any part of the Property; (iii) conveyance in lieu of coudenmation; or (iv) ufisrepreseutati0us of. or omissions as to, file value and/or conditiou of the Property. (1%1) "Mortgage Iusura,ce" means insurance protecting Lender against file nonpayment of, or default on, the Loan. (lq) "Periodic Paylnent" means rite regularly scheduled anmunt due fox' (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of riffs Security Iustrument. (O) "RESPA" meaus fl~e Real Estate Se]dement Procedures Act (12 U.S.C. Section 2601 et seq.) aud its imPlementing regulation, Regulation X (24 C.F.R. Part 3500), as riley might be amended from time to time, or any additio~ml or successor legislation or regulation flint governs the same subject matter. As used iu fids Security Instrument, "RESPA" refers to all requirements and restrictions fllat are imposed in regard to a "federally related nmrtgage loan" even if the Loan does ]mt qualify as a "federally related mortgage loan" under RESPA. (~-6(WY) 1ooo51 Pao. 2 of 15 ' Form 3051 1101 529 (P) "Successor iu Interest of Borrower" means any party that bas taken title to the Property, whefl~er or not that party has assmned B ' orrower s obligations under the Note and/or this Security Instrument. TRANSFER OF RIGttTS IN THE PROPERTY This Security h]stmment secnres to Lender: (i) fl~e repayment of tim Loan, and all renewals, extensions and modifications of fl~e Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For tiffs purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in fl~e COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording JurisdictlonJ SEE ATTACHED LEGAL DESCRIPTION TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, INC., P.O. BOX 10304, DES MOINES, IA 503060304 ParcellD Number: 12321927300638.00 151 MAJESTIC MEADOWS LANE AFTON ("Property Address"): which currently has the address of [Streetl [City] , Wyoming 83110 [zip CodeI TOGETHER WITH all fl~e improvements now or hereafter erected on the property, arrd all easements, appurtenances, aod fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by tiffs Security Instrument. All of the foregoing i.s referred to in tiffs Security h~strument as the "Property." BORROWER COVENANTS flint Borrower is lawfiflly seised of the estate hereby conveyed and bas 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 or Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due tim pri~cipal of, and interest on, the debt evidenced, bv the Note and any prepayment charges arid late charges due under fl~.e Note. Borrower shall also pay fum]s for Escrow Items pursuant to Section 3. Payments due under fl~e Note and tiffs Security Instrument shall be made in U.S. currency. However, if any check or other instnm}ent received by Lender as payment tinder rite Note or tiffs 6(WY) (ooo5} Page 3 of 15 Form 3051 1/01 ,53O Security Iusmm~ent is returned to Leuder unpaid, Lender nnty require that any or all subsequent payments due under the Note and /his Security Instrmnent be made in one or mute of the tbllowing 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, instnm~entality, or entity; or (d) Electrmfic Funds Transfer. Payments are deemed received by [.ender when received at file location designated in file Note or at such oflier location as nmy be designated by Lender in accordance widl file notice provisions in Section 15. Lender may return arty payment or partial paylnent if fl~e payment or partial payments are iusnfficient to bring the Loan cnrreut. Lender nlay accept any payment or partial payment insufficient to bring die Loan curreut, without waiver of any rights hereunder or prejudice to its rights to refiise such payment or partial payments in die future, but Lender is not obligated to apply such payments at die tiute such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, fl~en Lender need not pay interest on unapplied lunds. Lender may hold such unapplied fimds until Borrower nmkes payment to bring file Loan cun'eut. If Borrower does not do so wiflfiu a reasonable period of time, Lender shall either apply such lunds or returu then'i to Borrower. If uot applied earlier, such lunds will be applied to the outstandiug principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender sliall relieve Borrower from nmking payments due under file Note and dfis Secm:ity Instrumeut or perlbrming fl're covemmts and agreements secured by this Security Iustrument. 2. Application of Payments or Proceeds. Except as otherwise described in fllis Section 2, all payments accepted and applied by Lender shall be applied in the tbllowing order of priority: (a) iutercst due under die Note; (b) principal due under die Note; (c) amounts due under Section 3. Such paylnents shall be applied to each Periodic Payment in tim order in which it became due. Any rennfining amounts shall be applied first to late charges, second to any other amounts duc under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment fi'om Borrower for a delinquent Periodic Paylnent which inchtdes a sufficient amount to pay any late charge due, the payment uny be applied to fl~e delinquent payment and fl~e late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of fl~e Periodic Payments if, and to the extent that, each payment can be paid in lull. To file extent that any excess exists after die payment is applied to die fidl payment of one or nmre Periodic Payments, such excess nmy be applied to any late cbarges 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 flue under d~e Note shall not extend or postpone the due date, or change file alnount, of die Periodic Pay~nents. 3. Funds for Escrow Items. Borrower shall pay to Lender on die day Periodic Payments are due under file Note, until die Note is paid in lhll, a sum (die "Funds") to provide for payment of amounts due tbr: (a) taxes and assessments and oilier items which cau attain priority over dfis Security lnstrunleut as a lien or encmnbrance on die Property; (b) leasehold payments or ground reuts on the Property, if any; (c) premiums tbr any and all insurance required by Lender under Secdou 5; and (d) Mortgage Insurance premimus, if any, or any stuns payable by Borrower to Lender ill lieu of the payment of Mortgage Insurance prenfimns in accordance with file provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of tl~e Loau, Lender nmy require that Conmmnity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall prompdy luruish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender die Funds for Escrow Items unless Lender waives Borrower's obligation to pay die Funds tbr any or all Escrow Items. Lender nu~y waive Borrower's obligation to pay to Lender Funds for ally or all Escrow Items at any time. Any such waiver nuly ouly be in writing. In file event of such waiver, Borrower shall pay directly, when and where payable, the amounts ~-6(WY) (ooo~} P~oe 4 o~ ~s ~.... ~ Form 3051 1/01 due for ally Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall t'uruish to Lender receipts evidencing such payment within such time period as Lender may reqnire. . Borroxver's obligation to make such Payments and to provide receipts shall lbr all purposes be deemed to be a corena:lit and agreement COlltairled in this Security Instrument, as the phrase "covenant and agreement" Js used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borl'ower fails to pay tile amount due tbr an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borroxver shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section. 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under fills Section 3. Lender may, at any time, collect and hold Funds iu au amount (a) sufficient to pernfit Lender to apply the Funds at fl'm time 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 curreot 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 (including Lender, if Lender is an institutiun xvhose deposits are so insured) or in ally Federal Home Loau Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower Ibr 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 pernfits Lender to make such a charge. Unless an agreement is made in writing or Applicable Lav~ requires interest to be paid on the Funds, Lender shall, not be required to pay Borrower any interest or eanfings on the Fun.ds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borroxver, wJfllout charge, an annual accounting of file Funds as required by RESPA. If there is a surplus of Fnnds held in escrow, as defined under RESPA, Lender shall account to Borrower tbr the excess funds in accordance Mill RESPA. If there is a shortage ol' Funds held ill escrow, as defined under RESPA, Lender shall notify Borroxver as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amouut necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon paymeut in full of all sums secured by this Security Instrument, Lender shall promptly retired to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, flues, and impositimk~ attributable to file Property which can attain priority over t lis Security Instrument, leasehold payments or ground rents on the Property, if any, and Commuaity Association Dues, Fees, and Assessmeuts, if aoy. To the extent that these items are Escrow Items, Borrower shall pay them in the maturer provided in Section 3. Borrower shall promptly discharge any lien which has priority over tiffs Security Instrument unless Borrower: (a) agrees in writing to file payment of the obligation secured by the lien in a mamler acceptable to Lender, but only so long as Borrower is perforufing such agreement; (b) contests the lien in good faith by, or defends against enforcement of fl~e lien in, legal proceedings which in Lender's opbfiou operate to preven.t the enforcement of the lien while flmse proceedings are pending, but tuffy until such proceedings are concluded; or (c) secures from tim holder or' fl~e 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 532 lien. Within l0 days of the date on which that notice is given, Borrower shall satisfy file lie]] or take one or more of rite actions set lbrth above in this Section 4. Lender may requfre 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 rile intprovements 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 liufited to, earthquakes and floods, tbr which Lender requires insurance. This insurance shall 'be maintah~ed in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuaut to the precediug senteuces can change during file term of the Loan. The insurance carrier providing the insurance shall be choscu 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 comtection with this Loan, either: (a) a one-time charge for flood zoue deternfim~tion, certification and tracking services; or (b) a one-time charge for flood zone deternfimttion and certification services and subsequent charges each time remappings or similar changes occur which reasonably nfight affect such deternfination or certification. Borrower shall also be responsible for the payment of any fees in]posed by the Federal Emergency Ma]mgcment Ageucy in com~ection with the review of any flood zone deternfinatiou resulting front 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 uoder no obligation to pm'chase any particular type or anmunt of coverage. Therefore, such coverage shall cover Lender, but migltt or might not protect Borrower, Borrower's equity in the Property, or the contents of file Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower ackuowledges that the cost of the insurance coverage so obtaiued might significantly exceed the cost of insm'ance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additio~ml debt of Borrower secured by this Security Instrument. These amonnts shall bear interest at the Note rate t¥om rite date of disbursement and shall be payable, with such interest, upon notice fi'om 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 file policies and reucwal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid preufiums and reuewal notices. If Borrower obtains any Ibrm of insurance coverage, not otherwise required by Lender, ibr danmge to, or destruction of, the Prope]'ty, such policy shall include a standard mortgage clause and shail name Lender as ]nortgagee and/or as an additional loss payee. In rite event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss it' not nmde prompdy by Borrower. Unless Lender and Borrower otherwise agree iu writing, any insurance proceeds, whether or not the underlyiug insurance was required by Lender, shall be applied to restoration or repair of file Property, if rite restoration or repair is ccouomically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such iusurance proceeds until Lender has had au opportunity to inspect such Property to ensu,-e the work has been completed to Lender's satisfaction, provided, that such inspection shall be undertaken promptly. Leuder may disburse proceeds lbr file repairs and restoratiou in a single payment or in a series of progress payments as the work is completed. Unless an agreement is nmde 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 earuings on such proceeds. Fees for public adjusters, or other third parties, retail]ed 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 econonfically feasible or Lender's security would be lessened, file insmauce proceeds shall be applied to the stuns secured by tiffs Security Instrmnent, whether or not then due, with / Initials ~-~ (~)~-6(WY) (ooosl Page 6 of 15 Form 3051 1/01 533 tile excess, i.f any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle ally available insurance claim and related matters. If Borrower does not respond within 30 days to a notice fi'om Lel]der rial the insurauce carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed fl~e amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all iusurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use file insurance proceeds either to repair or restore the Property or to pay amounts unpaid under fl~e 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 rite execution of this Security Instrument and shall continue to occupy fl~e Property as Borrower's principal residence for at least one year after file date of occupandy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld,, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protectiou of the Property; h~spections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or conunit waste on the Property. Whefl~er or not Borrower is residing in the Property, Borrower shall maintain the Property iu order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if damaged to avoid furrier deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring file Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as file work is completed. If tire insurance or conde~m~atiou proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation Ibr file completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender inay inspect the iuterior of the improvements ou the Property. Lender shall give Borrower notice at the thne of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Applicatiml. Borrower shall be in default if, during the Loan application process, Borrower ot any persons or entities acting at fl~e direction of Borrower or with Borrower's .knowledge or consent gave materially false, misleading, or im~ccurate hff(mnation or statements to Lender (or riled to provide Lender with material information) ill connection with the Loan. Material representations include, but are not limited to, representations concenfing Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Secu,'ity Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might sJgtfificantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding iu bankruptcy, probate, for condeluuation or f°rfeiture, for enforcelueut o.f a lien which may attain priority over this Security lustmment or to enforce laws or regulations), or (c) Borrower has abandoned fl~e Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security htstmnlent, including protecting and/or assessing tile value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not linfited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (~O-6(WY) {0oo5) , Page 7 of 15 Form 3051 1/01 534 attorneys' lees to protect its interest in the Property and/or rights under flris Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not linfited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliufinate building or other code violations or dangerous conditious, and have utilities turned on or off. Alfllough Lender nmy take action under fltis Section 9, Lender does not have to do so and is.not under any duty or obligation to do so. It is agreed dial Lender incurs no liability for not taking ally or all actions aufllorized under fids Section 9. Any amounts disbursed by Lender under fltis Section 9 shall become additional debt of Borrower secured by fills Security Instrument. These amounts shall bear interest at file Note rate from file date of disbursement and shall be payable, wifl~ such interest, upon notice from Lender to Borrower requesting payment. 'If fids Security Iustrmnent is on a leasehold, Borrower shall comply with all file provisions of the lease. If Borrower acquires.fee title to fl~e Property~ fl~e leasehold and file lee title shall not merge unless Lender agrees to fl~e merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making file Loan, Borrower shall pay fl~e premiums required to maintain fl~e Mortgage Insurance in effect. If, lbr any reason, fl~e Mortgage Iusurance coverage required by Lender ceases to be available from the mortgage insurer fllat previously provided such insurance and Borrower was required to make separately designated payments toward fire premiums /bt Mortgage Insurance, Borrower shall pay rite premimns required to obtain coverage substantially equivalent to fl~e Mortgage Insurance previously in effect, at a cost substantially equivalent to fl~e cost to Borrower of the Mortgage Insurance previously in effect, l¥om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Iasurance coverage is not available, Borrower shall contimte to pay to Lender file amount of fl~e separately desiglmted payments that were due when file insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve ill lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwifllstanding file fact that tim Loan is ultimately paid ill 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 an~ount and fur file period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward file prmniums for Mortgage Insurance. If Lender required Mortgage Insurauce as a condition of making the Loan and Borrower was required to make separately designated paynmuts toward the prenfiums 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 Iusurance ends in accordance with auy written agreemeut between Borrower and Lender providing for such tenlfination or until ternfination is required by Applicable Law. Noflmlg in this Section 10 affects Borrower's obligation to pay interest at the rate provided in file Note. Mortgage Insurance reimburses Lender (or ally entity that purchases file Note) for certain losses it may incur if Borrower does not repay fire Loan as agreed. Borrower is not a party to fl~e Mortgage Insurance. Mortgage insurers evaluate flleir total risk on all such insurance in force from time to time, and may enter into agreements with off,er parties flint share or modify flieir risk, or reduce losses. These agreements are on terms and conditions dial are satisfactory to file mortgage insurer and file other party (or parties) to these agreements. These agreements n~ly require file mortgage insm-er to make payments using any source of funds that file mortgage insurer may have available (Milch nmy include funds obtained front Mortgage Insurance premiums). As a result of fllese agreements, Lender, any purchaser of file Note, anofl~er insurer, any reinsurer, any off, er entity, or any affiliate of any of die fi)regoing, nmy receive (directly or indirectly) amounts that derive from (or nfight be characterized as) a portion of Borrower's payments /bt Mortgage Insurance, in exchange for sharing or modifying fl~e mortgage insurer's risk, or reducing losses. If such agreement provides dial an affiliate of.Lender takes a share of fl~e insurer's risk in exchange /hr a share of file premiums paid to fl~e insurer, file arrangement is often termed "captive reinsurance." Furfl~er: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of tile Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance; and they .will not entitle Borrower to any refund. 535 (b) Any such agreements will not affect the rights Borrower has - if any - ~vith respect.to the Mortgage Insnrauce under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certaiu disclosures, to reqnest and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refuud of any Mortgage Insurance premiums that were unearned at tile tiine of snch cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Fo,'feiture. 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 Ille 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 au opportmfity to inspect such Property to ensure tile work has been completed to Lender's satisfaction, provided Ilmt 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 die restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by.this Security Instrument, whether or not then due, with dt.e excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the nrder provided, lbr in Section 2. In the event of a total taking, destruction, or loss in value ol' the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not dien due, wid~ the excess, if any, paid t° Borrower. lit die evem of a partial taking, destruction, or loss in value of the Property iu which the fair market value of Il]e Property innnediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the stuns secured by this Security Instrument iuunediately before the partial taking, destruction, or loss iu value, unless Borrower and Lender otherwise agree ill writing, the SUlnS secured by this Security h]stmment shall be reduced by die amount of the Miscellaneous Proceeds nmltiplied by the following fraction: (a) the total amount of the sums secured inuuediately before the partial taking, destpdctiou, or loss in value divided by (b) the fair market value of the Property inunediately before the partial taking, destruction, or loss itl value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction., or loss in value of the Property iu which the fair market value of tile Property iunnediate/y be.lbre die partial taking, destruction, or loss in value is less than tile amount of fl~e sums secured iuunediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree iii writing, the Miscellaneous Proceeds shall be applied to the sums scented by this Security Instrument whether or not the sinus are then due. If the Property is abaudotmd by Borrower, or if, after notice by Lender to Borrower fl]at die Opposiog Party (as defined itt Om next sentence) offers to make an award to settle a claim for dan]ages, Borrower fidis to respond to Lender within 30 days after the date the notice is given, Lender is auillorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of rte Property or to the sums secured by this Security lnstruuxent, whether or not then due. "Opposing Party" means the dlird party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action iu regard to Miscellaneous Proceeds. Borrower shall be iu default if any action or proceeding, whether civil or criminal, is begun fl]at, in Lender's judgment, could .tesul.t in forfeiture of the Property or other material impairment of Lender's interest iu the Property or rights under this Security Instrument. Borrower can cure such a defanlt and, if acceleration has occurred, reinstate as provided iu Section 19, by causing d~e action or proceeding to be dismissed widx a ruling that, in Lender's judgment, precludes tbrfeiture of die Property or oilier material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to die impairment of Lender's interest iix Ille 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 iu die order provided for in Section 2. 1~-6(wY) looos} P.g, 9olls ~.~ Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of file time tbr payment or modification of amortization of the stuns secured by this Security Instrumeut granted by Leuder 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 conunence proceediugs agaiust any Successor in Interest of Borrower or to refuse to extend time for paymeut or otherwise modify amortization of the sums' secured by fids Security Instrulneut by reason of any denmnd made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without linfitation, Leuder's acceptance of payments from third persons, entities or Successors iu Iuterest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees fllat Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute file Note (a "co-signer"): (a) is co-siguing dfis Security Instrmuent olfly to mortgage, grant aud convey file co-signer's interest in file Property under the terms of this Security Iustrmnent; (b) is not persolmlly obligated to pay the sums secured by tbis Security Instrmuent; and (c) agrees flint Leuder and any off,er Borrower can agree to extend, modify, forbear or nmke any acconmmdations with regard to the terms of this Security h~strument or file Note without fl~e co-signer's consent. Subject co the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under fids Secm-ity Instrument in writing, and is approved by Lender, shall obtaiu all of Borrower's fights and benefits under fids Security Instrument. Borrower shall not be released fi'om Borrower's obligations and liability under this Security Instmn~eut unless Leuder agrees to such release in writing. The coveqants and agreements of fids Security Instrument shall bind (except as provided in Section 20) and benefit fire successors and assigns of Lender. 14. Loan Charges. Lender nmy charge Borrower fees for services performed in com~ection with Borrower's default, for the purpose of protecdug Lender's interest in file Property and rights uuder filis Security Iustrmnent, including, but not limited to, attorneys' lees, property inspectiou and valuation fees. in 'regard to any off, er fees, the absence of express aufllority in fids Security lnstrumeut to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Leuder nmy not charge fees dlat are expressly prohibited by dlis Security Instmn~e,~t or by Applicable Law. If the Loan is subject to a law which sets maxinmm loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed tbe pernfitted limits, dieu: (a) any such loan charge shall be reduced by the amount necessary to reduce fl~e cbarge to the pernfitted linfit; and (b) any stuns already collected fi'om Borrower which exceeded permitted liufits will be refunded to Borrower. Lender nmy choose to make this refund by reduciug fl~e priucipal owed under fl-~e Note or by nmking a direct paymeut to Borrower. If a refund reduces principal, die reduction will be treated as a partial prepayment wifllout any prepaymeut charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptauce of any such retired made by direct payment to Borrower will constitute a waiver of :my fight of action Borrower nfight bare arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in counection with fids Security lnstnmlent must be in writing. Any notice to Borrower in connection with fids Security Instrmuent shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Bm'tower's notice address if sent by off, er means. Notice to any one Borrower shall constitute notice to all Borrowers mfless Applicable Law expressly requires ofl~erwise. The notice address shall be the Property Address mdess Borrower has designated a substitute notice address by notice to Lender. Borrower shall prompdy notify Lender of Borrower's chauge of address. If Lender specifies a procedure for reporting Borrower's chauge of address, then Borrower shall o~fly report a change of address fl~rough that specified procedure. There may be o~fly one designated notice address under fills Security h~strument at any one dine. Any notice to Lender shall be given by delivering it or by nmiling it by first class nmil to Lender's address stated herein unless Lender has designated anofl~er address by notice to Borrower. Any notice in conuection wifll fids Security Instrument shall uot be deemed to have been given to Lender until actually received by Lender. If any notice required by riffs Secm:ity Instrument is also required uuder Applicable Law, the Applicable Law requirement will satisfy fl~e corresponding requirem¢ut under this Security Instrument. (~-6(WY) ,ooo5) . P.g. ~o o,,, 1/~ ./L., Form 3051 1/01 537 16. Governing Law; Severahility; Rules of Construction. This SecuritY Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained itt this Security Instrument are subject to arty requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such. silence shall not be construed as a prohibitiou against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect otlmr provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the fenfinine gender; (b) words in the singular shall mean a~d include the plural and vice versa; arrd (c) the word "may" gives sole discretion without any obligation to take any action. 1.7. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial iuterests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of' title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest iu the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or traosferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not Jess than 30 days fi'om the date tire notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to tlm expiration of this period, Lender may invoke any renmdies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discouti~med at an3, time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contaioed in this Security htstrument; (b)' such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing Otis Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in tlm Property and rights under this Security Instrument; and (d) takes snch action as Lender may reasonably require to assure that Lender's interest in the Property and righ. ts under this Security histmment, and Borrower's obligation to pay the sums secured by'this Security Instrument, shall continue mmhanged. Lender may require that Borrower pay such reinstatement sums and expenses iu one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Trausf'er. 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 itl the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest iu the Note (together with this Security [nstmmen0 can be sold one or more times without prior uotice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and perlbrms other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also nfight be one or more changes of tim Loan Servicer unrelated to a sale of the Note. If there is a change of fire Loan Servicer, Borrower will be given written notice of the change which will state the name and address of rile new Loan Servicer, the address to which paytnents should be made and any other inibrmatiou RESPA 538 requires iu com~ection with a notice of transfer of servicing. If tile Note is sold and fl~ereafter the Loan is serviced by a Loan Servicer oilier thau the purchaser of the Note, the mortgage loan servicing obligatious to Borrower will remain with file Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by fire Note purchaser unless otherwise provided by file Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from fl~e other party's actions pursuant to this Security Instnm~ent or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender bas notified file oilier party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and aflbrded file other party hereto a reasmmble period alter the giving of such notice to take corrective action. If Applicable Law provides a time period which nmst elapse before certain actiou can be taken, that time period will be deemed to be reasmmble tbr pm-poses of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and file notice of acceleration given to Borrower pm'suant to Section 18 shall be deemed to satisfy file notice aud opportmfity to take corrective action provisions of tiffs Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasoline, kerosene, other flammable or toxic petrolemn products, toxic pesticides and herbicides, volatile solvents, materials contai~fing asbestos or lbmmldehyde, and radioactive un~terials; (b) "Euvironmental Law" lneans l~deral laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Enviroumental Cleanup" includes any response action, remedial action, or removal action, as defined in Environnlental Law; and (d) an "Enviromnental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Clea~mp. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substauces, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting file Property (a) that is in violation of any Envkonmental 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 .sentences shall not apply to file presence, use, or storage on the Property of small quantities of Hazardous Substances tlmt are generally recognized to be appropriate to nornml residential uses and to maintel~ance of the Property (including, but not linfited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigatiou, claim, &maud, lawsuit or other action by any governmental or regulatory ageucy or private party involving the Property and ally Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any Environmental Coudition, including but not limited to, an3, spilling, leaking, discharge, release or fl~reat of release of any Hazardous Substauce, and (c) any condition caused by the preseuce, 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 remcdiatiou of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all uecessary remedial actions in accordance with Environmental Law. Nothiug herein shall create any obligatiou on Leuder fbr an Enviromnental Cleanup. (~)~-6(WY) (ooo5} Page ~2 o~ ~5 ~/ Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further coveuant and agree as follows: 22. Acceleration; Remedies. Leuder shall give notice to Borrower prior to acceleratiou followiug Borrower's breach of any coveuant or agreemeut in this Security Instrument (but not prior to acceleratiou uuder Section 18 uuless Applicahle Law provides othm~vise). 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 notice is giveu to Borrower, by which the default must be cured; aud (d) that failure to cure the default ou or before the date specified iu the notice may result iu acceleration of the sums secured by this Security Instrument aud sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration aud the right to briug a court action to assert the non-existence of a default or any other &reuse of Borrower to acceleratiou and sale; If the default is not cured ou or before the date specified in the uotice, Lender at its option may require immediate payment in full of ali sums secured by this Security Iustrument without fnrther demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be eutitled to collect all expeuses incurred in pt, rsuiug the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evideuce. If Lender invokes the power' of sale~ Leuder shall give notice of intent to foreclose to Borrower and to the person iu possession of the Property, if differeut, iu accordance with Applicable Law. Lender shall give notice of the sale to Borrower hi the mauner provided in Section 15. Lender shall publish the uotice of sale, aud the Property shall be sohi in the mauuer prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied iu the following order: (a) to ali cxpeuses of the sale, includiug, but not limited to, reasouable attorneys' fees; (b) to all sums secured by this Security Instrumeut; aud (c) any excess to the person or persous legally entitled to it. 23..Release. Upon payment of all sums secured by this Security Instrument, Leuder shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee /'or releasing this Security Instrument, but ouly if fl~e fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyomiog. ~.~, ~_~'~,~ (~)~-6(WY) (0005) P~ge ~3 of ~s ~.-' Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to file terms and covenants Contained in Security Instrmnent and in any Rider executed by Bon'ower and recorded wifl'l it. Witnesses: NATHAN CRAIG HEIq~ -Borrowe,' ~~ (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower fBorrower 6(WY) Iooos) P~. 14 of 15 Form 3051 1/01 STATE OF WYOMING, LINCOLN The foregoing instrument xvas acknowledged before me this by NATHAN CRAIG HEISS AND KATHY RENE HEISS County ss: My ColnnlJssioll Expires: ~-6G(WY) ~ooos) p~e ~s o, 15 Form 3051 1/01 542 Legal Description Parcel 1 That part of Section 27, T32N Rll9W of the 6th P.M., Lincoln County, Wyoming, being part of that tract of record in the Office of the Clerk of Lincoln County in Paragraph 5 of Book 401PR on page 812, 813 described as follows: Beginning at a point on the east line of said tract N 00o23'12,, E, 816.83 feet from the southeast· corner of the SW~ of said Section 27; thence N 00023'12' E, 766.00 feet, along said east line, to a point; thence S 88°36'49,, W, 660.56 feet, to a point on the west line of said tract; thence S 00o22,36,, W, 766.00 feet, along said west line to a point; thence N 88036'49'' E, 660.43 feet to the point of beginning. Parcel 2 The.right of access provided for in instrument recorded July 6, 1999 in Book 432PR on page 561 of"the records of the Lincoln County Clerk.