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HomeMy WebLinkAbout895330RetumTo: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 ~BLOOMINGTON, MN 55435 Prepared By: WELLS FARGO HOME MORTGAGE, INC. 1919 DOUGLAS,, 681010000 895330 RECEIVED LINOOLh! COUNTY CLERK OMAHA, NE BOOK 541 PR v^e .7 7 2 [Space Above Tiffs Lhte For Recordb~g Data] MORTGAGE DEFINITIONS Words used in multiple' section,s of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrmnent" means this document, which is datedNOVEMBER 10, 2003 together with all Riders to this document. (B) "Borrower" is JONATHAN A. LABENNE AND PAMELA A. LABENNE, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) ".Lender" is WELLS FARGO HOME MORTGAGE, INC. Lender is a CORPORATION organized and existing under the laws of THE STATE OF CALIFORNIA 0035325067 WYOMING-Single~ ~/e/Freddie Mac UNIFORM INSTRUMENT VfvlP MORTGAGE FORMS - {8001521-7291 Form 3051 1/01 7?3 Lender's address is P.o. Box 10304, DES MOINES, IA 503060304 Lender is the mortgagee under tlfis Security Instrument. (D) "Note" means the pronfissory note signed by Borrower and dated NOVEMBER 10, 2003 The Note states that Borrower owes Lender TWO HUNDRED THOUSAND FTVE HUNDRED AND 00/100 Dollars (U. S. $ * * * * 200,500.00 ) plus interest. Borrower has pronfised to pay this debt in regular Periodic Payments and to pay the debt in full not later than DECE~4BIgR 01, 2033 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under fids Security Instmlnent, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [~ Adjustable Rate Rider I---] Condominium Rider [--1 Second Home Rider [~] Balloon Rider ~1 Planned Unit Development Rider ~-~ 1-4 Family Rider [~ VA Rider ~-~ Biweekly Payment Rider ~-~ Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state aud local statutes, regulations, ordinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinio~zs. (l) "Community Associatiou Dues, Fees, anti Assessments" means all dues, tees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or siufilar organization. (J) "Electronic Funds Transrer" means any transfer of fuuds, other than a transaction originated by check, draft, or similar paper instrument, which is i~fitiated through au electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial iustitntion to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, aud automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of dan~ges, or proceeds paid by any flfird party (other thau insurauce proceeds paid under the coverages described in Section 5) for: (i) danuige to, or destruction of, fl~e Property; (ii) condemnation or other taking of all or any part of the Propertyi (iii) conveyance in lieu of condemmtion; or (iv) ntisrepresentations of, or onfissions as to, the value and/or condition of the Property· (M) "Mortgage Insurauce" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note/plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended t¥om time to time, or any additional or successor legislation or regulation that governs the same subject nmtter. As used · ' · ' " " all requirements and restrictions that are/imposed in regard m fins Security Instrument, RESPA refers to to a "federally related mortgage loan" even il' the Loan does not qualify asa,,Sfe, de, n~y related mortgage loan" under RESPA. (~)~-6(WY) (0o051 p~g~ 2 o~ ~s Form 3051 1/01 774 (P) "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 fids Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements raider this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assig~k% with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 15 AS SHOWN ON THE MAP ENTITLED WESTHILLS SUBDIVISION, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE SURVEY OF SAID SUBDIVISION (PLAT 343), FILED JUNE 12, 1992 AS INSTRUMENT NO. 749847 ON FILE IN OFFICE OF THE LINCOLN COUNTY CLERK. Parcel ID Number: 1150 CROW CREEK ROAD FAIRVIEW ("Property Address"): which currently has fl~e address of {Streetl [City] , Wyoufing 8 3119 [Zip Code] TOGETHER WITH all the improvelnents ~mw or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements aud additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the 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 mfitbrm covenants lbr national use and non-uniform coveuants with linfited variations by jurisdiction to constitute a uniform securitY instrmnent covering real property. UNIFORM COVENANTS. Borrower and Lender cove]mm and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items due under fl~e Note and this Security Instrument shal)be nmde in U.S. pursuantcurrency.tOHowever,Section 3.if auyPaymentScheck or other instrument received by Lender as payment m~ler file Note or this (~-6(WY) (ooos) Page 3 o~ ~5 ~________~~ / Form 3051 1/01 775 Security Instrument is returned to Lender unpaid, Lender ntay require that any or all subsequent payments due under the Note and this Security Instrument be nude 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) Electroxfic Funds Traosfer. Payments are deemed received by Lender when received at the location desig~mted in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender nmy return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender umy accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but 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 mmpplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reaso~hable 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 irmnediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the cove~mnts and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in tiffs Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment iu the order in which it became due. Any remainiug amounts shall be applied first to late charges, second to any other alnounts due under this Security Instrument, and theu to reduce the 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 thau one Periodic Payment is outstanding, Lender may apply any payment received fi'on] Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note 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 ou die day Periodic Payments are due under the Note, until the Note is paid in lull, a snm (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instmtnent as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) prenfinms for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance pretniums, if any, or any sums payable by Borrower to Lender iu lieu of the payment of Mortgage Insurance prenfiums iu accordance with the provisions of Section 10. These itenrs are called "Escrow Items." At origi~mtion or at any time during the term of the Loan, Lender nny require that Connnnnity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, lees and assessments shall be an Escrow Item: Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds tbr any or all Escrow Items. Lender ]nay waive Borrower's obligation to pay ~' ,.-,~P~~ to Lender Fuuds for any or all E~crow Itenrs at any time. Any su?h waiver umy tuffy be e payable, the amounts in writing. Iu the event of such waiver, Borrower shall pay directly~r (~)~6(WY) (ooo51 ' Initials~ Page4of ~5 Form 3051 1/01 due for any Escrow Items for which payment of Funds has been Waived by Lender and, if Lender requires, shall funfish to Lender receipts evidencing such payment within such time period as Lender may require.' Borrower's Obligation to make such payments and to provide receipts shall tbr all pu~oses be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due Ibr an Escrow Item, Lender nmy exercise its rights under Section 9 and pay such anmunt and Borrower shall ~en be obligated under Section 9 to repay to Lender any such amount. Lender ~my revoke the waiver as to any or all Escrow Ite~ at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower sball 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 iu an amount (a) sufficient to pemfit Lender to apply the Funds at the time specified under ~SPA, and (b) not to exceed the maximum amount a lender can require under ~SPA. Lender shall estiumte the amount of Funds due on the basis of current data and reasonable estinmtes of expenditures of hture Escrow Itelns or otherwise in accordance with Applicable Law. The Funds Shall be held in an i~titution whose deposits are imsured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Ba~. Lender shall apply the Funds to pay the Escrow Items no later ~an the time specified under ~SPA. Lender shall not charge Borrower for holding and applying the Funds, ammally atmlyzing the escrow account, or verifying ~e Escrow Iten~, uldess Lender pays Borrower interest on the Funds and Applicable Law pemfitS Lender to make such a charge. U~ess an agreement is nmde in writing or Applicable LaTM requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or ear~fings on fl~e FUnds. Bo~ower and Lender can agree in writing, however, that interest shall be paid on the Punds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by ~SPA. If there is a surplus of Funds held in escrow, as defined under ~SPA, Lender shall account to Borrower for the excess ~nds in accordance with RESPA. If there is a shortage of Funds held iu escrow, as defined under ~SPA, Lender shall notify Borrower as required by ~SPA, and Borrower shall pay to Lender the amount necessary to nmke up the shortage in accordance with ~SPA, but in no more than 12 nmnthly payments. If fl~ere is a deficiency of Funds held in escrow, as defined under ~SPA, Lender shall notify Borrower as required by ~SPA, and Borrower shall pay to Lender the amount necessary to nmke up the deficiency in accordance with ~SPA, but in no more than 12 monthly payments. Upon payment iu ~11 of all sums secured by this Security hmtmment, Lender shall promptly re,nd to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property w~ch can attain priority over this Security l~tmment, leasehold payments or ground rents on the Property, if any, aod Connnunity AssociatiOn Dues, Fees, and Assessments, if any. To the extent flint these items are Escrow Items, Borrower shall pay them in the nmlmer provided in Section 3. Borrower shall promptly discharge any lieu which has priority over ~is Security Instrument Ulfless Borrower: (a) agrees in writiug to the payment of the obligation secured bY the lien in a inam~er acceptable to Lender, but o~y so long as Borrower is perfornfing 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 enlbrcement of the lien wlfile those proceedings are pending, but o~y until such proceediugs are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordimting fl~e lien to fids Security I~tmment. If Lender deternfiues fl~at any part of the Prope~ is subject to a lien wlfich can attain priority over Otis Security Instrument, Lender ~~ notice identifying the 6(WY) (0005) Page 5 of 15 Form 3051 1/01 777 lien. Withiu 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 Sectiou 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 iusured against loss by fire, hazards included within the term "exteuded coverage," and any other hazards including, but not linfited to, earthquakes and floods, for which Lender requires insurance. Tiffs 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 cau 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 unreasmmbly. Lender may require Borrower to pay, in counection with this Loan, either: (a) a one-time charge for flood zone detemfimtion, certification and tracking services; or (b) a one-time charge lbr flood zone detemfination and certification services and subsequent charges each time renmppings or similar changes occur which reaso~mbly might affect such detemfi~zation or certification. Borrower shall also be responsible for the payment of any tees imposed by the Federal Emergency Management Agency iii 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 obtaiu insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligatiou to purchase any particular type or amount of coverage. T!terefore' such coverage shall cover Lender, but might or nfight not protect Borrower, Borrower's equity in the Property, or the contents of the Property, agaiust 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 obtained might significantly exceed the cost of insura~me that Borrower could have obtained. Any amouuts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at file 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 i~mlude a staudard mortgage clause, and shall name Lender as mortgagee and/or as all additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums attd 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 iuclude a staudard mortgage clause and sliall name Lender as mortgagee and/or as alt additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may tnake proof of loss if not made pronrptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is econoufically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to 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 iuspection shall be undertaken promptly. Lender may disburse proceeds for the repairs attd restoration in a siugle payment or itt a series · of progress payments as the work is completed. Unless au agreement is made in writing or Applicable Law requires interest to be paid on such insurauce proceeds, Lender shall not be required to pay Borrower any interest or eanfiugs on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall uot 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 wo))Id be/fesseued, rite insurance proceeds shall be applied to the stuns secured by this Security Ins~r or not tlien due, with (~d6(WY) (ooosl Page 6 or 15 -- x Form 3051 1/01 778 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in . Section 2. If Borrower abandOns the Property, Lender nmy file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has 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 Leuder 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 the amounts unpaid under the Note or fids Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned prenfiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security 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 wifltheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or co~m~fit waste on the Property. Whether or not Borrower is residing iu the Property, Borrower shall nmintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. U~fless it is detemfined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if danmged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in com]ection with damage to, or the taking of, the Property, Borrower shall be responsible ~br repairing or restoring the Property only if Lender has released proceeds Ibr such purposes. Lender nmy disburse proceeds lbr the repairs and restoration in a single payment or iu a series of progress payments as the work is completed. If the insurance or condenmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may ~nake reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable canse. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's h~owledge or consent gave materially lhlse, misleading, or inaccnrate inforntation or statements to Lender (or failed to provide Lender with material infommtion) in cotmection with the Loan. Material representations include, but are not linfited 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 Secnrity Instrument. If (a) Borrower ~hils to perfurm the covenants and agreements coutained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condem~mtion or furfeiture, for enforcement of a lien which nmy attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender nmy do and pay for whatever is reasonable or appropriate tO protect Lender's interest ill file Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and sesuring and/or repairing the Property. Lender's actions can include, but are not linfited to: (a) paying any//su~ns secured by a lien which has priority over this Security Instrument; (b) appeari~ (c) paying reasonable (~)®~6(WY) (00o5) P~j~ 7 o~ ~s ' -- Form 3051 1/01 attorneys' fees to iprotect its interest in the Property and/or rights under this Security Instrument, il.~cludiug its secured position in a baukruptcy proceeding. Secnriug the Property inch,des, but is not linfited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water fi'om pipes, eliminate building or other code violations or dangerous conditions, and have utilities tun,ed on or off. Although Lender nmy take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs uo liability fbr not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under dfis Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amouots shall bear interest at the Note rate from the date of disbt, rsement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security InsU~ment is on a leasehold, Bon'ower shall comply with all die 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 iu writing. 10. Mortgage h~surat~ce. If Lender required Mortgage Insurance as a condition of oinking the Loan, Borrower shall pay the prenfiums required to maintain the Mortgage I~r~urance in effect. If, for any reason, fire Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substaudally equivalent to the Mortgage Insu. rance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately desiD~ted payments that were due when the insurance coverage ceased to be in 'effect. Lender will accept, use and retain fl~ese payments as a uon-refimdable 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, antl Lender shall not be required to pay Borrower any interest or eaufings 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 au insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making rte Loan and Borrower was required to make separately desig~mted payments toward the premiums Ibr Moitgage Insurance, Borrower shall pay the prentiums required to maintain Mortgage Insurance in effect, or to provide a nou-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. Nodfing 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 certaiu losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage I1ksurance. Mortgage insurers evaluate their total risk on nil such insurance in force from time to time, and may enter into agreements witli 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) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that dei-ive fi:om (or might be.characterized as) a portion of Borrower's payments for Mortgage Iusura~me, in exchange for sharing or modifying the lnortgage iosurer'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: tn) Any such agreements will not affect the amounts that Borrower has/agreed to pay for Mo,'tgage lust,rance, or any other terms of the Loan. Such agreements will uoJ4ucrease the amount ~-G{WY) Iooosl ~'a~ 8 o~ ~s Form 3051 1/01 (b) Any such agreements will ]lot affect tile riglits Borrower has - if any - with respect to the Mortgage Insnrance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insnrauce terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econmnically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold sucli Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. U~dess 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 Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In rite event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by tiffs Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In file event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property innnediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument inunediately before file partial taking, destruction, or loss in value, mfless Borrower and Lender otherwise agree in writiug, the sums secured by tiffs Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total a~noUnt of rite sums secured immediately betbre the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property inm~ediately before fl~e partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In fl~e event of a partial taking, destructiou, or loss in value of the Property in wlfich the fair market value of the Property iimnediately before the partial taking, destruction, or loss in value is less than the amount of the suins secured inunediately be/bre the partial taking, destruction, or loss in value, mfless 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 fl~e Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to nhake an award to settle a claim tbr damages, Borrower fails to resPond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to fl~e impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. ~ All Miscellaneous Proceeds that are not applied to restorati~i,_~~~~ ~/fl~e Property shall be applied in the order provided for in Section 2. (~;}~-6(WY) 1ooo51 Pag* 9 of ~5 Form 3051 1/01 12. Borrower Not Released~ Forbearance By Lende~ ~ot a Waive~. ~xtens~on of ~le 0me for paymem o~ modification of amo~fizafio~ of ~e sm~s secured by ~lis Security II~t~ment ~ranted by Lender to ~o~mwer or an~ Successo~ in ~merest of ~o~rower shall not operate to release Ule liability of ~orrowe~ or any Successors in Interest of Borrower. Lender shall not be required to conunence proceediugs against any Successor in Interest of Borrower or to re,se to extend time for payment or ofl~erwise modil? amortization of the sums secured by tiffs'Security Instrument by reason of any demand nmde by fl~e original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, wifl~out limitation, Lender's acceptance of payments from flfird'persons, entities or Successors in Interest of Borrower or in amounts less fl~an tim amount flten due, shall not be a waiver of or preclude ~e exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Succ~sors and Assigns Bound. Borrower covenants and agrees fl~at Borrower's obl[gatiolm and liability shall be joint and several. However, any Borrower who co-signs tiffs Security Instrument but does not execute ~e Note (a "co-signer"): (a) is co-sig~ng tiffs Security hmtmment o~fly to mortgage, grant and convey fl~e co-signer's interest in ~e Property under fl~e terms of ~s Security hmtmment; (b) is not personally ob}igated to pay fl~e sums secured by tiffs Security Instmmem; aud (c) agrees fl~at Lender and any ofl~er Borrower can agree to extend, modify, forbear or n~ke any acconunodations with regard to fl~e terms of tiffs Security h~tmment or Otc Note wifl~out rite co-signer's co~mellt. Subject to fl~e provisions of Section 18, any Successor in Interest of Borrower who assunms Borrower's obligations under tiffs Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under tiffs Security Instrument. Borrower shall, not be released from Borrower's obligations and liability under tiffs Security h~tmment u~ess Lender agrees to such release in writing. The covemnts and agreements of tiffs Security hmtmment shall bind (except as provided in Section 20) and benefit fl~e successors and assigns of Lender. 14. Loan Cbarga. Lender may charge Borrower fees for services performed in connection with Borrower's default, for fl~e pu~o~e of protecting Lender's interest in fl~e Property 'and rights under ~is Security hkqtmment, including, but ~mt linfited to, attorneys' fees, property inspection and valuatiou fees. In regard to any oflwr fees, fl~e absence of express aufl~ority in this Security hutmlnent to charge a specific fee to Borrower shall not be construed as a prolfibition on tim charging of such fee. Lender nmy not charge fees fl~at are expressly prohibited by tiffs Security h~tmment or by Applicable Law. If fl~e Loan is subject to a law which sets nmximum loan charges, and fl~at law is finally inte~reted so that tim interest or off,er loan charges collected or to be collected iu connection with the Loan exceed fl~e permitted li~ts, fl~en: (a) any such loan charge shall be reduced by tim amouut necessary to reduce the charge to fl~e pernfitted limit; and (b) any sums already collected ikom Borrower which exceeded permitted linfits will be re~nded to Borrower. Lender may choose to make ~is re,nd by reduciug fl~e prinCipal owed under fl~e Note or by nmking' a direct payment to Borrower. If a re,nd reduces principal, ~e reduction will be treated as a partial prepayment without any prepayment charge (whefl~er or not a prepayment charge is provided for under fl~e Note). Borrower's accepta~me of any such refund made by direct paymeut to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of sucb overcharge. 1.5. Notices. All ~mtices given by Borrower or Lender in connection with tiffs Security Instrument must be in writing. Any notice to Borrower in connection wifl~ Otis Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute ~mtice to all Borrowers mfless Applicable Law expressly requires o~erwise. The notice address shall be the Property Address mfless Borrower has desigimted a substitute notice address by notice to Lender. Borrower shall promptly notitk Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, fl~en Borrower shall o~fly report a change of address fl~rough flint specified procedure. There may be o~y one desig~mted notice address under tiffs Security Instmlnent at auy one time. Any notice to Leuder shall be given by delivering it or by lnailing it by first class mail to Lender's address stated herein mfless Lender has designated another address by notice to Borrower. Any notice in colmection wifl~ Otis Security h~tmment shall not be deemed to have been given to Lender until actually 'received by Lender. If any notice required by ~is Security Instrument is also re~ed under Applicable Iustmmeut.Law' rte Applicable Law requirement Will Satisfy the corresp~ent under tiffs Security ~6(WY) (ooos} Page 10 o[ 15 Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law axd the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instnnnent are subject to any 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 prohibition against agreement by contract. In the event that any provision or clause of this Security Instru~nent or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of dfis 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 femiuine gender; (b) words in the singular shall mean and include the plural and vice versa; a~d (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instru~nent. 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 d~e Property, iucluding, but not linfited to, those beneficial interests' transferred iu a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the iutent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Bon'ower is not a natural person and a beneficial interest in Borrower is sold or transferred) wiflmut Lender's prior written consent, Lender may require iuunediate payment in full of all sums secured by this Security Instrument. However, fids option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less titan 30 days t¥om the date the notice is given in accordance with Section 15 within wtfich Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay rinse stuns prior to the expiration of this period, Lender may invoke any remedies pernfitted by this Security Instrument without further notice or denmnd on Borrower. 19. Borrower's Right 'to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enlbrcement'of this Security Instru~nent discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in tlfis Security htstrmnent; (b) such other period as Applicable Law nfight specify /hr the terufination of Borrower's fight to reinstate; or (c) entry of a' judgment enforcing tiffs Security Instrument. Those conditions are that Borrower: (a) pays Leuder all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures, any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under fids Security Instrument; and (d) takes such action as Lender may reasolmbly require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by fids Security Instrument, shall continue unchanged. Lender may require fl~at Borrower pay such reinstatement sums and expenses in one or more of the following forms, 'as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by BOrrower, fids Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply Jn the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instmlnent) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and pertbrn~s 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 fl~e Note. If there i/a change of the Loan Servicer, Borrower will be given written notice of the change wlfich will state the/flame and address of the new Loan Servicer, the address to which paymeuts should be ~~ther intbrmation RESPA Initials: I ~ (~'6(WY) IO00S} Page 11 o[ 15 Form 3051 1/01 783 requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to BorroWer will renudn with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser mdess otherwise provided by the Note purchaser. Neither Borrower nor Lender nu~y connuence, joiu, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to tiffs Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, tiffs Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance wifl~ the requirements of Section 15) of such alleged breach and aflbrded 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 certaiu action can be taken, fltat 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 to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substauces defined as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasoline, kerosene, other flannnable or toxic petroleum products, toxic pesticides. and herbicides, volatile solventS, nmterials containing asbestos or fornmldehyde, and radioactive materials; (b) "Enviromnental Law '' means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or .enviro~nnental protection; (c) "Environmental Cleanup" includes any response action, renXedial action, or removal action, as defiued in Enviro~nnental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anyflfing affectiug the Property (a) that is in violation of any Enviromnental Law, (b) which creates an Enviromnental 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 the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nornhal residential uses and to maintenance' of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any govermnental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, including but not linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any coudition caused by the presence, use or release of a Hazardous Substauce 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 o/~her remediation of any Hazardous Substance affecling the Property is necessary, Borrower shall pro~nptly/take all necessary remedial actions in accordance '~xith Enviromnental Law. Nodfing herein shall create//any obligation on Lender for an Enviromnental Cleanup. ~ , Initial~:~ (~6(WY} Iooo51 Page 12 of 15 ' -- ' Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further cove~mnt and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrmver 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 othenvise). The notice shall specify: (a) the default; (b) the action reqnired to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure tile default on or before tile date specified in tile notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. Tile notice shall further inform Borrower of tile right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in tile notice, Lender at its option may require immediate payment in full of all sums secured by this Secnrity Instrument without further demand and may invoke tile 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 tile power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of tile Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided itl Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner .prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a)to all expenses of the sale, inclnding, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrmnent; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all stuns secured by this Security hmtmment, Leuder shall release this Security Instrument. Borrower shall pay any recordation costs. Lender inay charge Borrower a fee for releasing Otis Security Instrument, but only if the fee is paid to a tlfird party for services rendered and fl~e charging of fl~e fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of fl~e homestead exemption laws of Wyoming. (~-6(WY) (0o0~} P=~= 13 of 15 Form 30,51 1/01 ?'85 BY SIGNING BELOW, Borrower accepts and agrees to fl~e terms and covenants contained it~ this Security Instrument and in auy Rider executed by Borrower and recorded with it. / Witnesses: ~ / /_~o~,,.~ .,~,,~.~,~ ~- -- - ' ~o~::':r PAMELA A. LABENNE -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~(~6(WY) (ooos} Page 14 o[ 15 Form 3051 1/01 - :3-:..= '; '. - .. 7'8;.'6 STATE OF WYOMING, LINCOLN County ss: The foregoing instrument was acknowledged before me this 10th day of November 2003 by JONATHAN A. LABENNE AND PAMELA A. LABENNE My ConnnissionExpires: /o- oQ O- D 0 0'7 ~L t'~t. LA'~'~SON~*~'~- N ~ MY COMMISSION EXPIRES JUNE 20, 2007 N~f Public (~-6G(WY) (ooos) P~e 15 of 15 Form 3051 1/01