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HomeMy WebLinkAbout8953348953314 RECEIVED LINCOLN COUNTY OLERK After Recording Return To: FIRST BANK OF IDAHO, FSB D/B/A FIRST BANK ADVISORS P.O BOX 12860 JACKSON, WY 83002 [Space Above Tbis Line For Recording Datal I~YER.q MORTGAGE Lo~ #, 4940~0s~s MIN: 100174102000009052 PIN #: 12-3418-05-3-07-032.00 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) Security Instrument means this document, whichis dated NOVEMBER 14, 2003 together with all Riders to this document. (B)."Borrower"is DANIEL NOEL MYERS A_ND KIMBERLY A. MYERS-HAYES, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a notninee for Lender and Lender's successors and assigus. MERS is the mortgagee under this Secnrity Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender"is FIRST BAlqK OF IDAHO, FSB D/B/A FIRST BANK ADVISORS Lender is a CORPORATION' organized and existing under the laws of IDAHO . Lender's address is P.o. BOx 9000 KETCHUM, ID 83340 (E) "Note" means tile promissory note signed by Borrower and dated NOVEMBER 14, 2003 The Note states that Borrower owes Lender TWO HUNDRED FIVE THOUSAND FIVE HUNDRED A_ND 00/100 Dollars (U.S. $ 205,500. O0 ) pitts interest. Borrower has promised to pay ttfis debt in regular Periodic Payments and to pay the debt in fitll not later than DECEMBER 1, 203 3 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums dne under tlfis Security Instrument, pitts interest. WYOMING - Single Family - Fan.ieMa~Freddie Mae UNIFORM INSTRUMENT DOCUKWYI (Page l o fl3 pageO DOCUKWYI.VTX 10/17/2002 . Form 3051 1/01 494010515 (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The followhig Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Balloou Rider [] 1-4 Family Rider [] Condominium Rider [] Planned Uuit Development Rider [] Other(s) [specify] [] Second Home Rider [] Bixveekly Payment Rider (I) "Applicable Law" means all controlling applicable Federal, state and local statutes, regulations, ordinances and adnfinistrative niles and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opiuions. · (J) "Community Association Dues, Fees, and Assessments" means all dues, Fees, assessments and other charges that are in,posed ou Borrower or the Property by a condominium association, homeowners association or sinfilar organization. (K) "Electronic Funds Transfer" means any transfer of fUnds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instm~t, or authorize a finaucial institutiou to debit or credit an account Such term includes, but is not linfited to, point-of-sale transfers, automated teller maclfine transactions, trausfers initiated by telephone, wire transfers, and automated clearinghouse trans£ers. (L) "Escrmv Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compeusation, settlement, award of damages, or proceeds paid by auy third party (other than insnrance proceeds paid tinder the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmation or other taking of.all or any part of the Property; (iii) conveyance in lieu of condmnnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurauce" ineans insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest trader the Note, plus (ii) auy amonnts uuder Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended From time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used iii this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed iii regard to a "federally related mortgage loan" eveu if the Loan does not qualify as a "Federally related mortgage loau" under RESPA. {Q) "Successor in Iuterest of Borrower" means any party that has taken title to the Property, whether or uot that party has assumed Borrower's obligations under the Note and/or tiffs Security Instnunent. TRANSFER OF RIGHTS IN THE PROPERTY This S~curity Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; aud (ii) the performance of Borroxver's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nmninee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, and Lender's successors and assigns, with power of sale, the Following described property located in the COUNTY CLERK of LINCOLN (Type of Recording Jurisdiction) (Name of Recordiug Jurisdiction) : LOT 67 OF STAR VALLEY RANCH PLAT 21, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF which currently has the address of 132 BONNEVILLE ROAD THAYNE ,Wyornh~g 83127 [City] [Zip Code] WYOMING -Single Family - Fannie Mae/Freddie 1Mac UNIFORM INSTRUMENT DOCUK~W2 (Page 2 o fl3 pages) ~oc. mv~ .v'rx xo/xv/~oo~ [Street] ("Property Address"). Form 3051 1/01 4940:1.0515 TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Inst]'Ument as the "Property." Bon'ower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not li]mted to, releasing and canceliug this Security Insmnnent. 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 uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and tiffs Security Instrument shall be made in U.S. currency. However, if any check or other instnlment received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money obder; (c) certified check, bank check, t~easurer'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. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender nmy return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such pay~nent 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 unapplied funds nntil Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or perfornfing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due tinder the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in wlfich it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent paymeut and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in 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. ~VYOM1NG ~ Single Family - Fannie Mae,'Freddie Mac UNIFORM INSTRUMENT DOCUlCW','3 (Page 3 of 13 pages) ~oeunvt~.wx Form 3051 1/01 494010515 Any application of payments] insurance proceeds, or Miscellaneous Proceeds to principal due under the Note Shall ]lot extend or postpone the due date, or change tile amount, of the Periodic Payments. 3. Funds for Escrow Items. Borroxver shall pay to Leuder on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) prenfiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any,.or any sums payable by Bo~xower to Lender in lieu of the payment of Mortgage Iusurance premiums in accordance with the provisions of Section 10. These items are called "Escroxv Items." At origination or at any time during the term of the Loan, Lender may require that Conmmnity Associatiou Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In tile event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borroxver's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a coveuant and agre. ement 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 doe for an Escrow Item, Lender ]nay exercise its rights Under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any snch amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice giyen in accordance with Section 15 and, upon'such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Ftmds in an amount (a) sufficient to permit Lender .to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amotmt a lender can require under RESPA. Lender shall estimate tile amount of Funds due on the basis of current data and reasouable estimates of expenditures of future Escrow Items or otherWise in accordauce 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 institntion whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay tile Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying tile Funds, aunually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower iuterest on the Funds and Applicable Law pemfits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eamiugs on the Funds. Borrower and Lender can agree in whting, however, that interest shall be paid on the Funds. Leuder shall give 'to Borrower, without charge, an ammal accounting of the Funds as required by RESPA. If there is a surplus of Fuuds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in uo 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 amount uecessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, lease!~old payments or ground rents on the Property, if any, and Commumty Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, BorroWer shall pay them in the mauner provided in Section 3. Borrower shall promptly discharge any lien which has priority over tiffs Security Instrument unless · Borrower: (a) agrees in xvritiug to the payment of the obligation secured by the lien in a mmmer acceptable to Lender, but only so loug as Borrower is perforating such agreemeut; (b) contests the lien in good faith by, or WYOSIING - Single Family - Fannie ?,~lae/Freddie Mac UNIFORS! INSTRU~IENT Form 3051 1/01 DOCU~W,* (Page 4 of 13 pages) ~ocm<~4.v~x xo/z~/~ooo 9 0 494010515 defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender deternfines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax Verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Bmxower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not linfited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone deternfination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such dete~Tnination or certification. Borrower shall also be responsible Ibr the payment of any fees imposed by the Federal Emergency Management Agency in co~mection with the review of any flood zone deternfination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Bmmwer's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or nfight not protect.Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Bon'ower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such iuterest, upon notice from Lender to Borrower requesting payment. All insurance policies required by. Lender and renewals of such policies shall be subject to Lender's right tO disapprove such policies, shall include a standard ~nortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of lossl Borrower shall give prompt notice to the insnrance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the PrOperty, if the restoration or repair is econonfically 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 Prope~Xy to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnhtgs on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower 'shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~OCUKWY~ (Pnge 5 of 13 pages) D 0 CU lO,~w/5 .VT~r 10/17/2002 Form 3051 1/01 494010515 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, Bo~ower hereby assigns to Lender (a) Borrower's rights to any h~surance proceeds in an amount not to exceed the amounts unpaid under the Note or tiffs SecuriW Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned pre~un~ paid by Borrower) under all insurance policies covering the ProperS, ~sofar as such rights are applicable to the coverage of the Prope~. Lender may use the insurance proceeds either to repair or restOre the Property or to pay amounts unpaid under the Note or this Security Inst~ment, whether or not then due. 6. Occupancy. Bm~ower shall occnpy, establish, and use the Prope~ as Bon'ower's principal residence within 60 days after the execution of this SecuriW Instrument and shall continue to occupy fl~e ProperW as Bmmwer's principal residence for at least one year after the date of occupancy, unless Lender othe~vise agrees in ~iting, which consent shall not be umeasonably xvitlflleld, or m~ess extenuating circumstances exist w~ch are beyond Bo~ower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrmver shall not des~oy, damage or hnpair the ProperS, allow the Prope~y to deteriorate or com~t waste on the ProperW. Whether or not Bo~ower is resid~g h the Prope~, Bo~ower shall maintain the Prope~ m order to prevent the Properly from deteriorating or decreasing in value due to its condition. Unless it is deter~ned pursuant to Section 5 that repair or restoration is not economically feasible, Bo~ower shall promptly repair the Prope~ if damaged to avoid ~rther deterioration or damage. If insurance or condenmation proceeds are paid in cmmection with damage to, or the taking of, the ProperW, BorrOWer shall be responsible for repairing or restoring the Proper~ only if Lender has. released proceeds for such pu~oses. Lender may disburse proceeds for the repa~s and restoration in a single pa~nent or in a series of progress patients as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Bon-ower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the ProperW. If it has reasonable cause, Lender may inspect the interior of the ~lprovements on file ProperS. Lender shall give Bo~ower notice at the time of or prior to such an hterior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Bo~ower shall be in default if, dur~g the Loan application process, Bo~ower or any persons or entities acting at the direction of Bonmver or with Bo~ower's ~owledge or consent gave materially false, mislead~g, or inaccurate information or statements to Lender (or failed to provide Lender with material infom~ation) in co~ection with the Loan. Material representations include, but are not li~ted to, representations concernh~g Bo~ower's occupancy of the Prope~ as Bo~ower's principal residence. 9. Protection of Lender's Interest in the Property and ~ghts Under this Security Instrument. If (a) Bo~ower fails to perfmm the covenants and agreements contained in this SecuriW Ins~ment, (b) there is a legal proceeding that nfight significantly affect Lender's interest in the Properly ancot rights under tiffs Security Insh~m~ent (such as a proceeding in ba~ptcy, probate, for condenmation or forfeiture, for enforcement of a lien which may attain prioriW over this SecuriW Ins~ment or to enforce laws or regulations), or (c) Borrower has abandoned the Propm~y, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Prope~ and rights under this SecuriW Instrument, including protecting anWor assessing the value of the ProperW, and securing anWor repairing the ProperS,. Lender's actions can include, but are not lii~ted to: (a) paying any sun~ secured by a lien w~ch has prioriW over this SecuriW Ins~ment; (b) appearing in co~; and (c) paying reasonable attorneys' fees to protect its interest in the ProperW anWor rights under tiffs SecufiW Instrument, including its secured position in a ba~ptcy proceeding. Securing the Property includes, but is not li~ted to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes~ elinfinate building or other code violations or dangerous conditions, and have utilities mined on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions author~ed under tiffs Section 9. Any amounts disbursed by Lender under this Section 9 shall b4come additional debt of Borrower secured by this SecuriW Inst~ment. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such ~terest, upon notice from Lender to Bo~ower requesting pa~ent. . If this SecuriW Inst~ment is on a leasehold, Bo~ower shall comply with all the provisions of the lease. Bonower shall not su~ender the leasehold estate and interests herein conveyed or tem~ate or cancel the ground lease. Borrower shall not, without the express ~i~en consent of Lender, alter or amend the ground lease. If Borrmver acquires fee title to the Properly, the leasehold and the fee title shall not merge unless Lender agr?s to the merger in writing. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT oocuKwv6 (Page 6 of 13 pages) DOCUKWY6 .VTX 10/17)2002 Form 3051 1/01 802 494010515 10. Mortgage Insurance. If Lender required Mortgage Insm-ance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mm-tgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previonsly provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall Pay the prmniums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refi~ndable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the prenfiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward tbe premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or .any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to nuke payments using any source of funds that the mortgage insurer may have available (wlfich 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 tim foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange.for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premimns paid to the insurer, the an-angement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect tbe amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Sucb agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refl~nd. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the' Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have tbe Mortgage Insurance terminated automatically, and/or to receive a tel'end of any Mortgage Insurance prenfiums that were unearned at the time of snch cancellation or termination. 11. Assignment0f 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 econonfically feasible and Lender's security, is not lessened. During such repair and restoration period, Lender shall have the right to bold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall eot be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoratiou or repair is not econonfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKWY7 (Page 7 of 13 pages) oocm<~.wx Form 3051 1/01 -' 803 ~L r ' r'. - 4~4010515 this Security Instrument, whether or not then due, with the excess, if any, paid to BotTower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss iu value of the ProperW, the Miscellaneous Proceeds shall be applied to the stum secnred by this SecuriW Instnunent, whether or not then due, with the excess, if any, paid to Borrower. In the event of a paflial taking, desk, etlon, or loss in value of the ProperW in wlfich the hit market value of the Proper~ mnediately before the pa~ial taking, desk, etlon, or loss iu value is equal to or greater than the amount of the su~ secured by tiffs Securi~ Instrument iu~ediately before the paflial taking, desk,etlon, or loss in value, unless Bo~ower and Lender othe~ise agree in writing, the sunu secured by this SecuriW Ins~ment shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured ~mediately before the partial tahng, des~mtion, or loss in value divided by (b) the fair ~narket value of the Prope~ immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Bo~ower. ~ In the event of a pavia! taking, des~ction, or loss in value of the ProperW in which the fair market value of the PropetW innnediately before the partial tang, destruction, or loss in value is less than the amount of the su~ secured i~ediately before the paflial ta~ng, destruction, or loss in value, unless Bo~ower and Lender othe~ise agree in ~'iting, the Miscellaneous Proceeds shall be applied to the su~ secured by t~s Security Instnunent whether or not the sun~ are then due. If the Properly is abandoned by Bonower, or if, after notice by Lender to Borrower that the Opposing Prow (as defined in the next sentence) offers to make an award to settle a claim for damages, Bo~ower hils 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 fl~e ProperW or to the sums secured by this SecuriW Instrument, whether or not then due. "Opposh~g ParW" means the third parC that owes Bono~ver Miscellaneous Proceeds or the par~ against whom Bolxower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in dehult if any.action or proceeding, whether civil or crinfinal, is begun that, in Lender's judgment,' could result in forfeiture of the ProperW or other material impai~ent of Lender's interest ~ the ProperW or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, refllstate as provided in Section 19, by causing the action or proceeding to be disnfissed with a ruling that,' in Lender's judgment, precludes forfeiture of the ProperW or other material impairment of Lender's ~terest in the Proper~ or rights under this SecuriW Instrument. The proceeds of auy award or claim for damages that are a~ibutable to the impairment of Lender's interest in the Proper~ are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Proper~ shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extensiou of the time for payment or modification of amo~ization of the sunu secured by this SecuriW Ins~ment granted by Lender to Bo~ower or any Successor in Interest of Bo~ower shall not operate to release the liabiliW of Borrower or any Successors in Interest of Borrower. Lender shall not be required t0 con~ence proceedings against any Successor in Interest of Borrower or to refuse to extend time for pa~nent or oflm~ise modify amortization of the su~ secured by t~s SecuriW Ins~ment by reason of any demand made by the original Bonower or any Successors in Interest of Borrower. ~y forbearance by Lender in exercising any right or remedy ~cluding, without linfitation, Lender's acceptance of pa~ents from third persons, entities or Successors in ~terest of Boaower 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 aud Assigns Bouud. Bmxower covenaots and agrees that Bo~ower's obligations and liabiliW shall be johlt and several. However, any Bo~ower wlio co-signs this Security Ins~ument but does not execute the Note (a "co-signer"): (a) is co-signing this SecuriW Instrument only to moflgage, grant and convey the co-signer's interest in the ProperW under the tem~ of this Security Instrument; (b) is not personally obligated to pay the sums secured by this SecmiW Ins~ment; and (c) agrees that Lender and any other Bon'ower can agree to extend, modify, forbear or make any accommodations with regard to the tem~ of this Security Instnnnent or the Note x~thout the co-signer's consent. Subject to the provisions of Section 18, any Successor in Inierest of Bo~ower ~vho assumes Bon'ower's obligations under this Securi~ Instrument m writing, aud is approved by Lender, shall obtain all of Borroxver's rights and benefits under this Security Ins~nnent. Bo~ower shall not be released frmn Borroxver's obligations and liability under this SectmW Instrument ~ess Lender agrees to such release in x~iting. The covenants and WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT OOCUKW','S (Page 8 of 13 pages) oocul~w/8 .VTX 10/17/~000 Form 3051 1/01 494010515 agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Bon'ower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest m the Property and rights under this Secnrity Insmunent, including, but not limited to, attorneys' fees, property inspection and valnation fees. In regard lo any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpre{ed so thai the interest or other loan charges collected or to be collected in cmmection with the Loan exceed the pernfiUed limits, then: (a) any such loan charge shall be reduced by the amount necessary to rednce the charge to the pemfitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the No~e or by ma~ng a direct payment to Borrower. If a refund reduces principal, the rednction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by dh'ect payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender m connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice 'to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly reqnires otherxvise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then BorrOwer shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in wlfich the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law 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. Itt the event that any provision or clause of this Security Instrument or the Note conflicts with ApplicablO Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Insn-ument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without 'any obligation to take any action~ 17. Borrower's Copy. Bon'ower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in fl~e Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrmnent. If Borrower fails to pay fl~ese sums prior to the / WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT / Form 3051 1/01 DOCUKWY9 (Page 9 of 13 pages) 8O5 494010515 expiration of this period, Lender may invoke any remedies pernfitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have 'enforcement of this Security Instrument discontinued at any time prior to the earliest of(a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (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 Instmn~ent. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrnment, 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 tlfis Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under tlfis Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, batik check, treasurer's check or cashier's check, provided any such check is drax~q~ upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shrill not apply in the case of acceleration under Section 18. ' 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borro;ver. 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 perfom~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 the Note. If there is a change of the Loan Servicer, Borrower xvill be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other flfformation RESPA requires in connection xvith a notice of transfer of servicing.. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless other~vise provided by the Note purchaser. Neither Borrower nor Lender nmy commence, join, or be joined to any judicial action (as either an individual litigant or the"member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security h~stmment, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration.and 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 opportnnity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or ~vastes by Enviromnental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviro~m~ental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Enviro~m~ental Law; and (d) an "Enviro~m~ental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Bo~xower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on orin the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental La;v, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, WYOMING - Single Family - Fannie Mae/Freddie blat UNIFORM INSTRUMENT ~ocu~wy ~o (Page 10 of 13 pageO ~oc-mo~. v~rx x0/x~/ao0~ Form 3051 1/01 494010515 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 file Property of small qnantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of tile 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 govelmnental or regulatory agency or private palty involving the PropmXy and any Hazardous Substance or Envirorm~ental Law of which Borrower has actual katowledge, (b) any Environmental Condition, including but not linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Notlfing herein shall create any obligation on Lender for an Envirorm~ental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default nmst be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secm'ed by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to ~assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the .date specified ill tl!e notice, Lender at its option may require immediate payment in full of ali sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not linfited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided itt Section 15. Lender shall publish the notice of sale, and the Property shall be sold itt the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of tile sale shall be applied in the following order: (a) to all expeuses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; ami (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrmnent, Lender shall release ttfis Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law.. 24. Waivers. Bmxower releases and waives all rights under and by virtue of the homestead exemption laws of Wyonfing. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT OOCOKW¥~ (Page 11 of 13 pages) DOC'~KY~Yll. VTI 10/17/2002 Form 3051 1/01 807 494010515 BY SIGNING BELOW, Borrower accepts and agrees to the temps and covenants contained m this Security Instrument and in any Rider executed by Borroxver and recorded with it. BORROWER - KIMBERLY A. M~RS-HAYES - DATE - WYOMING - Sing!e Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUK~2 (Page 12 of 13 pages.) ~ocuKmc. ~n~ Form 3051 1/01 494010515 808 [Space Below This Line For Acknowledgment] STATE OF ~r~rOMING COUNTY OF LINCOLN The foregoing instrument was acknowledged before me by DANIEL NOEL MYERS AND KIMBERLY A. MYERS-HAYES, HUSBAND AND WIFE this 14TH day of NOVEMBER, 2003 Wimess my hand and official seal. My Commission Expires: ~//~./5/'z9 ,'~ WYOMING - Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCU~W~ ' (Page 13 of 13 pages) DOCIJKWYD. VTX 6/6/2002 Form 3051 1/01 809 MYERS LOAN #: PLANNED UNIT DEVELOPMENT RIDER 494010515 THIS PLANNED UNIT DEVELOPMENT RIDER is made this 14TH day of NOVEMBER 2003 , and is incorporated into and shall be deemed to amend and snpplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date, given by the undersigned (the "Borrower") to secure Borrower's Note to FIRST BANK OF IDAHO, FSB D/B/A FIRST BANK ADVISORS (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 132 BONNEVILLE ROAD, THAYNE, WY 83127 [Property Address] The Property includes, but is not linfiled to, a parcel of land improved with a dwelling, together with other such parcels and certain connnon areas and facilities, as described in COVENANTS, CONDITIONS AND RESTICTIONS (the "Declaration"). The' Propm~y is a part of a planned nnit development known as STAR VALLEY RANCH [Name of Planned unit Development] (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instmmeut, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perfom~ all of Borro~ver's obligations under the PUD's Constitnent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation,' trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other roles or regulations of the Owners Association. Bon'ower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. MULTISTATE PUD RIDER--Single Faro!fy--Fannie Mae/Freddie Mac UNIFORI~I INSTRUMENT DOCU~A ! (page I of 3 pages) DOCURgA1. VTX 10/15/<m002 Form 3150 1/01 810 494010515 B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance can'ier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly prenfium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a conditiou of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insnrance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instn~ment, whether or not then due, with the excess, if any, paid to Bo,'rower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance pOlicy acceptable in fom~, amount; and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or auy part of the Property or the conunon areas and facilities of the PUD, or for any conveyance in lieu of condenmation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i)the abandomnent or termination of the PUD, except for abandonment or termination reqnired by law in the case of substantial destruction bY fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Docnments" if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amonnts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrnment. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. MULTISTATE PUD RIDER--Single Family--FannieMae/Freddie Mac UNIFORM INSTRUMENT Form3150 1/01 DOCO~P^2 (page 2of3pageO DOCURP~2.VT~ 10/15/2002 494010S15 BY SIGNING BELOW, Borrower accepts and agrees to thc terms and provisions contained in this PUD Rider. ~ ~ ~ //~/~ MULT1STATE PUD RIDER--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUI%IENT Form 3150 1/01 DOCU~A~ (page 3 of 3 pages) ~oc~.~,~.~x 0/27/2002