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HomeMy WebLinkAbout8958460686428619 Return To: Prepared By: FIELDSTONE MORTGAGE COMPANY 11000 BROKEN LAND PKW~ ~,~0~ ,.} 6 COLUMBIA, MD 21044 J ~' L~ KATHY CRISP FIELDSTONE MORTGAGE COMPANY RE"'EIVED.., LI N~t""' "" ,.,vt_. ;q'i'Y CLERK [Space Above Tiffs Line For Recording Data] MORTGAGE MIN 100052606864286199 DEFINITIONS Words used in niultipie sectim~s of fids document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regardh~g the usage of words used h~ th. is document are also provided in Section 16. (A) "Security Instrmnent" means this document, wlfich is dated together with all Riders to fids document. (B) "Borrower" is December 5, 2003 GARY G. WAY AND DIANE LOUISE WAY,, HUSBAND AND WIFE Borrower is rite mortgagor under fids Security h~strument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation flint is acting solely as a nonfinee tbr Lender and Lender's snccessors and assigns. NIERS is the mortgagee under this Security Instrument. MERS is orgmfized and existing under the laws of Delaware, and has an address aud telephone number of P.O. Box 2026, Flint, Mi 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family- F:mnie Mae/Freddie Mac UNIFORM INgI'RUME1VI' WITHMERS Form 3051 1/01 ~®-6A(WY), (ooo5) ,,,.,~j ,, .,~~ " '~ ~ Paga I of 15 Initials: ,/ / VMP MORTGAGE FORNIS - (800)521-7291 (D) "Lender" is FIELDSTONE MORTGAGE COMPANY Lender is a CORPORATION orgalfized and exisfng uuder the laws of MARYLAND Lender's address is 11000 BROKEN LAND PKWY, ~t600 COLUMBIA, MD 21044 (E) "Note" meal,s the pronffssory note signed by Borro~ver and dated December fifth, 2003 The Note states that Borrower owes Lender ONE HUNDRED THIRTY FIVE THOUSAND & 00/100 Dollars (U.S. $ 13 5,0 0 0.0 0 ) plus interest. Borrower has promised to pay tiffs debt in regular Periodic Payments and to pay the debt in full not later than JANUARY 1, 2 03 4 (ID "Property" means the property that is described below under the heading, "Transfer of Rights in the Property." (G) "Loan" means the debt evklenced by the Note, pins interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrmnent, plus interest. (II) "Riders" means all Riders to this Security Lustrmnent that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~-~ Adjustable Rate Rider [~ Condmninium Rider ~ Second Home Rider ~-] Balloon Rider ~ Plmmed Unit Development Rider ~ 1-4 Fanffly Rider ~ VA Rider [--~ Biweeldy Payment Rider ~ Other(s) [specifyl (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances aud athnhffstrative rules and orders (that have the effect of law) as well as all applicable tinal, non-appealable judicial opinions. (J) "Commnnity Association Dues, Fees, and Assessme,fls" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condomilfimn association, homeowners association or similar organization. (IQ "Electronic Fmids Transfer" meaus any tramfer of fimds, other than a transaction originated by check, draft, or sinfflar paper instrument, wlfich is initiated llu:ough an electrmfic temfinal, telephonic instrmnent, computer, or nmgnetic tape so as to order, instruct, or authorize a financial hzstitution to debit or credit an account. Such term h~cludes, but is not hnffted to, point-of-sale transfers, automated teller maclfine transactions, transfers htitiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described hi Section 3. (M) "Miscellanem~s Proceeds" means any compensatimi, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described hi Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmation or other taking of all or auy part of the Property; (iii) conveyance iii lieu of condenmation; or (iv) misrepresentations o[, or onffssions as to, the value and/or condition of the Property. (N) "Mortgage hlsnrance" means 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 under the Note, phis (ii) any mnounts under Section 3 of tiffs Security hmtrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its huplementing regulation, Regulation X (24 C.I~.R. Part 3500), as they nfight be amended from thiie to thne, or any additional or successor legislation or regulation that governs the same subject matter. As used iii tlfis Security Instrument,. "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. Initials: Form 3051 1/01 591 (Q) "Successor in Interest of Borrower" means auy party that has taken title to the Property, whether or not that party Ires assumed Borrower's obligations under the Note and/or tlfis Security Iimtrmnent. TRANSFER OF RIGHTS IN THE PROPERTY This Security h~stnunent secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of lhe Note; aud (ii) fl~e perlbrnmnce of Borrower's covenants aud agreements under tlfis Security Instrmnent and flxe Note. For this purpose, Borrower does hereby mortgage, grant and couvey to MERS (solely as nonfinee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the COUNTY of Lincoln : [Type of Recordiog Jurisdiction] [Name of Recordh~g Jurisdiction] All that tract or parcel of land as shown on Schedule "A" attached hereto which is incorporated herein and made a part hereof. ParcellD Number: 2926 CROW CREEK RD FAIRVIEW ("Proper~ Address"): 3119090027300 Which currently has the address of [Street] [Cityl , Wyoming 8 3119 [Zip Code] TOGETHER WITH all the hnprovements now or hereafter erected on the property, and all easements, appurtenauces, and fixtures now or hereafter a part of fl~e property. All replacements and additions shall also be covered by fids Security Instrument. All of the foregoing is referred to in this Security h~strumeut as the "Property." Borrower understauds and agrees that MERS holds o~fly legal title to the interests granted by Borrower in tiffs Security Instrument, but, if necessary to comply with law or custom, MERS (as nonfinee for Lender and Lender's successors and assigus) lms the right: to exercise any or all of those interests, including, but not linfited to, the right to foreclose and sell the Property; and to take auy action required of Lender h~cluding, but not linfited to, releasing and canceling fids Security Instrmnent. BO1G{OWER COVENANTS tlmt Borrower is lawfully seised of the estate hereby coUVeyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encmnbrances of record. Borrower warrants and will defend generally the title to the Property agaitzst all clahns and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines umtbrm covenants for national use and non-unifom~ covenants with linfited variations by jurisdiction to constitute a mfiform security instrmnent covering real property. (~)~6A(WY) (o005) Pag~ 3 of 15 0686428619 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:. 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, mad Late Chm'ges. Borrower shall pay when due the principal of, and interest ou, 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 nnder the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other iN~strument received by Lender as payment under the Note or this Security hNstrtunent is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and tiffs Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or caslfier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electro~fic 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 may return any payment or partial payment if the payment or partial paymen[s are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments iu the future, but Leuder 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 h~terest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so witlfin 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 balauce under the Note immediately prior to foreclosure. No offset or claim wlfich Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and tiffs Security h~strtunent or performing the covenants and agreements secured by this Security hzstrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied iu the lbllowh~g order of priority: (a) h~terest due uuder 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. Auy remaining amounts shall be applied first to late charges, second to any other amounts due under tltis 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 delinqueut payment 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 fine 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 Paymeuts, 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 on the day Periodic Payments are due under the Note, until the No~e is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items wlfich can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents ou the Property, if anY; (c) premiums for any and all iNzsurance required by Lender under Section 5; aud (d) Mortgage Insurance prenfiums, if any, or aw sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premitm~s in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the teton of the Loan, 'Lender may require that Connnmfity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all 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. Leuder may waive Borrower's obligation to pay to LeaNder Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. Iu the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of (~-6A(WY) (0oo5) P~e 4 or ~ Form 3051 1/01 0686428619 593 Funds has been waived by Lender and, if Lender requires, shall furnish to Leuder receipts evidencing such payment wiflfin such rune period as Lender nmy require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covelmnt and agreement contained in tiffs Security Instrmnent, as the phrase "covemnt and agreement" is used ill Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke file waiver as to ally or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such anmu. nts, that are then required under this Section 3. Lender may, at any time, collect aud hold Funds in an amount (a) sufficient to pernfit Lender to apply the Funds at the thne specified under RESPA, and (b) not to exceed the nmximum amount a lender can require under RESPA. Lender shall esthnate the amount of Funds due on file basis of current data mid reasmmble esthnates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds slmll .be held in an institution whose deposits are insured by a federal agency, instrmnentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender slmll apply the Funds to pay the Escrow Items no later than the thne specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, am~ually atmlyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, tlmt interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an am~ual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for fl~e excess fu'nds in accordance with RESPA. If there is a shortage of Funds held itl escrow, as defined under RESPA, Lender shall noti~ Borrower as required by RESPA, and Borrower slmll pay to Leuder the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower slmll pay to Lender the amount necessary to nmke up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all stuns secured by this Security h~strmnent, Lender slmll promptly refuud to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and hnpositions attributable to the Property wlfich can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Conm~unlty Association Dues, Fees, and Assessments, if any. To the exteut that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writh~g to the payment of the obligation secured by the lien in a maimer acceptable to Lender, but only so long as Borrower is performh~g such agreement; (b) contests the lien in good faith by, or defends against exfforcement of the lien [tx, legal proceedings wlfich h~ Lender's opinion operate to prevent the entbrcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures froln the holder of the lien an agreement satisfactory to Lender subordilmting the lien to tiffs Security h~strument. If Lender deternfines tlmt any part of the Property is subject to a lieu wlfich can attain priority over this Security hxstrument, Lender may give Borrower a notice identifying the lien. wiflm~ 10 Form 3051 1/01 0686428619 days of the date on which that notice is given, Borrower shall satisfy the lieu or take one or more of the actions set forth above ia tiffs Section 4. Lender may require Borrower to pay a one-thne charge for a real estate tax verification and/or reporting service used by Lender in com~ection with tiffs Loan. 5. l'roperty lnsurm~ce. Borrower shall keep the improvements now existing or hereafter erected ou the Property insured against loss by fire, hazards included witlfin the term "extended coverage," and any other liazards including, but not linftted to, earthquakes and floods, for wlfich Lender requires imurance. 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 umeasonably. Lender may require Borrower to pay, ia connection with this Loan, either: (a) a one-time charge for flood zoue detemtination, certification and tracking services;~or (b) a one-thne charge for flood zone determh~ation and certification services and subsequei~t charges each thne remappings or sinftlar changes occur which reaso~mbly nfight affect such detenulnation or certification. Borrower shall also be responsible for the payment of auy fees hnposed by the Federal Emergency Management Ageucy ia com~ection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower thils to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase auy particular type or amount of coverage. Therefore, such coverage shall cover Lender, but ufight or nftght not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage than was previously iu effect. Borrower acki~owledges that the cost of Ihe i~surance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. AW amounts disbursed by Lender under tiffs Sectiou 5 shall become additional debt of Borrower secured by lifts Security h~strument. These amounts shall bear iuterest at the Note rate from the date of disbursement and s/tall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a staudard mortgage clause, and shall ~mme Lender as morlgagee and/or as an additional loss payee. Lender shall have the right to hold the policies aud 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 loss, Borrower shall give prompt notice to the i~zsurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. U~fless 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 restoratiou or repair is economically feasible and Lender's security is not lessened. During such repair aud restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had au opportunity to h~spect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender nmy disburse proceeds for the repairs and restoration in a single payment or h~ a series of progress payments as the work is completed. Unless an agreement is made hx writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings ou such proceeds. Fees for public,adjusters, or other tlfird 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 lesseued, the insurance proceeds shall be applied to (~-6A(WY) (o005) P,g~ 6 of is Form 3051 1/01 0686428619 595 the sums .secured by tiffs Security hzstrumem, 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 clahn and related matters. If Borrower does not respond witlfin 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, h~ either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or tiffs Security h~strument, and (b) any other of Borrower's rights (other than the right to any refund of unearned prenfiums paid by Borrower) uuder all insurance policies covering the Properly, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore fl~e Property or to pay amounts unpaid under the Note or fils Security Instrument, whefl~er or not then due. 6. Occupancy. Borrower shall Occupy, estabhsh, and use the Property as Borrower's principal residence witlfin 60 days after the execution of tiffs Security Iustrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, mdess Lender otherwise agrees in writing, wlfich consent shall not be unreasonably witltheld, or unless extenuating circumstances exist wlfich are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or in,pair the Property, allow the Property to deteriorate or conmfit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is detemfined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or danmge. If h~surance or conde~mmtion proceeds are paid in cotmection with danmge to, or the taking of, the Property, Borrower slmll be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the iusurance or conde~mmtion proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation tbr the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasouable came, Lender nmy inspect the interior of the hnprovements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable came. 8. Borrower's Loan Application. Borrower shall be in dethult if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's lmowledge or consent gave materially thlse, nfisleading, or inaccurate i~fformation or statements to Lender (or thiled to provide Lender with material itffonnation) in comtection with the Loan. Material representations include, but are not linfited to, representations contenting Borrower's occupancy of file Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrmnent. If (a) Borrower/hils to perform the covenants and agreements contained in this Security Instrmnent, (b) there is a legal proceeding that nfight sig~fificautly affect Lender's interest in the Property aud/or rights under this Security h~strmnent'(such as a proceeding in ba~fl~uptcy, probate, tbr condenumtion or forfeiture, tbr e~fforcement of a lien which may attain priority over tiffs Security Instrmnent or to entbrce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for wlmtever is reasomble or appropriate to protect Lender's interest in the Property and rights under tiffs Security h~strmnent, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not lh~fited to: (a) paying any sums secured by a lien which has priority over tlfis Security Instrument; (b) appearing in court; and (c) paying' reasouable (~}~-6A(WY) (0oo5) v,g~ ? or ~s 0686428619 attorneys' fees to protect its interest iii the Property and/or rights uuder tiffs Security h~strument, including its secured position iii a bankruptcy proceeding. Securing the Property includes, but is not lhnited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, elinffnate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under tiffs Section 9, Lender does not have to do so and is not under any duly or obligation ~to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by tiffs Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesthig payment. If fids Security Instrtunent is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, file leasehold and file fee title shall not merge mxless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the prenffums required to maintain the Mortgage Insurance iii effect. If, for any reason, the 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 substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to tile cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substautiaily equivalent Mortgage hisurauce 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 hi effect. Lender will accept, use and retain these payments as a non-refuudable loss reserve in lieu of Mortgage htsurance. Such loss reserve shall be uon-refundable, notwithstanding the fact tilat the Loan is ultimately paid in lull, and Lender shall not be required to pay Borroxver any interest or earlfings on such loss reserve. Leuder can uo longer require loss reserve payments if Mortgage Insurance coverage (iii the amount and for the. period timt Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the prenfimns for Mortgage h~surance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required ~o make separately desiguated payments toward the premiums for Mortgage h~surance, Borrower shall pay the prenffums required to maintain Mortgage h~surance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage hlsurauce ends iii accordance with any written agreement between Borrower and Lender providing for such ternfiuation or until temffnation is required by Applicable Law. Nothing iii this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage h~surance reinlburses 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. Ivlortgage insurers evaluate their total risk on all such insurance in force from tinle to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are ou terms and conditions that are satisfactory, to the mortgage i~zsurer and the other party (or parties) to these agreemems. These agreements may require the mortgage insurer to make payments using auy source of funds that the mortgage insurer may have available (wlfich may inchide funds obtained fi'om Mortgage Insurance premiums). As a result of these agreemeuts, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or auy affiliate of any of Ihe lbregoing, may receive (directly or indirectly) amounts timt derive fi'om (or nfight be characlerized 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 au affiliate of Lender takes a share of the insurer's risk in exchange for a share of tile prenfiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not 'affect the amounts that Borrower has agreed to pay for Mortgage lusnrance~ or any other terms of the Loan. Snch agreements will not increase the alnount Borrower will owe for Mortgage h~surance, mid they will not entitle Borrower to rely refuud. {~-6A(WY) (ooo~) P~ 8 or ~5 Form 3051 1/01 0686428619 '(b) Amy snch agreements will not affect the rights Borrower has - if m~)' - with respect to lite Mortgage Insurance m~der the Homeowners Protection Act of 1998 or ,'my 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 Insnrm~ce terminated antomatically, m~d/or to receive a refnnd of any Mortgage Insurance premiums that were nnearned at the time of such cancellation or termination. 11. Assigmnent of Miscellaneous Proceeds; Forfeitnre. Ail Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds slmll 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 snch repair and restoration period, Lender shall have the right to hold such Miscellaneons Proceeds until Lender has had an opportmfity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be uudertaken promptly. Lender may pay lbr the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required Io pay Borrower any interest or earnings on such Miscellaueous Proceeds. If the restoration or repair is not econonfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security htstrumeut, 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. Itt the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by tiffs Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial talchig, destruction, or loss itt value of the Property in which the fair market value of the Property inm~ediately be/bre the partial taking, destruction, or lOss in value is equal to or greater than the amount of the sums secured by this Security Instrument hmnediately betbre the partial taking, destruction, or loss in value, utfless Borrower and Lender otherwise agree in writing, rite sums secured by fids Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds nmltiplied by the Ibllowing fraction: (a) the total amount of the sums secured hnmediately before the partial taking, destruction, or loss in value divided'by (b) the fair nmrket wdue of the Property innnediately before the partial taking, destruction, or loss in wdue. Any balance shall be'paid to Borrower. hi the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property hmnediately betbre the partial taldng, destruction, or loss in value is less titan the amount of the stlnls secured hmnediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by tiffs Security Instrument whether or not the stuns are then due. if rite 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 make an award to settle a clahn tbr damages, Borrower fails to respond to Lender within 30 days alter the date the notice is given, Lender is authorized to collect a~d apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security htstrulnent, 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 crininml, is begun that, in Lender's judgment, could result in tbrfeiture of the Property or other material intpainnent of Lender's interest in the Property or rights under tiffs 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 lbrfeiture of the Property or other material hnpairment of Lender's interest in the Property or rights under this Security Instrmnent. The proceeds of any award or clahn for damages that are attributable to the hnpainuent of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not apphed to restoration or repair of the Property shall be applied in the order provided for in Section 2. II~-6A(WY) (ooo~) Page 9 of 15 Form 3051 1/01 0686428619 598 12. Borrower Not Released; Forbearance By Lender Not a Waiver; Extra]sion of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend thne for payment or otherwise modify amortization of the sums secured by this Security lustrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Auy forbearance by Lender in exercising auy right or remedy including, without linfitatiou, Lender's acceptance of payments frmn third persons, entities or Successors in lmterest of Borrower of in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of auy right or remedy. 13. Joint mid Several Liability; Co-signers; Successors and Assigus Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Iustrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument tuffy to mortgage, grant and convey the co-signer's interest in the Property under file terms of fids Security Instrmnent; '(b) is not persoually obligated to pay the stuns secured by tiffs Securily Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modil~,, forbear or make any accommodations with regard to the terms of tiffs Security h~strumeut or the Note without the co-signer's COlKsent. Subject to the provisions of Section 18, any Snccessor in Interest of Borrower who assumes Borrower's obligations under this Security Instrmnent in writing, and is approved by Lender., shall obtain all of Borrower's rights and benefits under Ilfis Security Instrument. Borrower shall not be released from Borrower's obligatimts and liability under Ilfis Security h~strument mfless Leuder agrees to such release in writing. The covenants and agreements of Il]is Security h[strtunent shall bind (except as provided in Section 20) and benefit the successors aud assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in conuectiou with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under Ilfis Secnrity Instrument, including, but not linfited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority iu Il]is Security Instrmuent to charge a specific fee to Borrower shall not be construed as a prolfibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by Il]is Security Instrmnent or by Applicable Law. If the Loan is subject to a law wiffch sets nmxhnum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the pernfitted lhnits, then: (a) auy such loan charge shall be reduced by the amount necessary to reduce the charge to the pemfitted linfit; and (b) any sums already collected from Borrower which exceeded pem]itted linfits will be refunded to Borrower. Lender may choose to make tiffs refund by reducing the principal owed under the Note or by malting a direct payment to Borrower. If a refund reduces principal, the reduction 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 direct payment to Borrower will constitute a waiver of any right of action Borrower might have arisiug out of such overcharge. 15. Notices. All notices given by Borrower or Lender itl counection with this Security Instrument must be in writing, bray notice to Borrower in cmmection with tiffs Security Instrument slmll 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 uuless Applicable Law expressly requires otherwise. The notice address shall be the Property Address uuless 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 tuffy report a change of address Ilu:ough that specified procedure. There ]nay be only one designated uotice address under this Security Instrument at any oue 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 uutess Lender has designated another address by notice to Borrower. Any notice in com~ection with this Security Instrmnent shall not be deemed to have been give]] to Leuder until actually received by Lender. If auy notice required by this Security hzstrmnent is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under Il]is Security Instrmnent. 1~-6AOYY) (000~) v, ge to orl~ Form 3051 1/01 0686428619 599 16. Gover,ing Law; Severability; Rules of Construction. Tiffs Security Instrmnent shall be governed by federal law aud the law of the jurisdiction in wlfich the Property is located. All rights and obligations contained hi fibs Security h~strmnent are subject to any requh'ements and linfftations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it nffght 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 Instrmnent or the Note cmffiicts with Applicable Law, such conflict shall not affect other provisions of tiffs Security h~strument or the Note which can be given eft%ct without the contlicting provision. As used in this Security h~strmnent: (a) words of the masculine gender shall mean and include corresponding neuter words or words uf the fenfilfine gender; (b) words iii the singular shall inean aud include the plural aid vice versa; and (c) the word "may" gives sole discretion without any obligation to take anY ac'lion. 17. Borrower's Copy. Borrower shall be given one copy of the NOte and of tlfis Security h~strument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in fibs Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not lh~fited to, those beneficial interests transferred in a bond lbr deed, contract fur deed, instalhnent sales contract or escrow agreement, the flltent of wlfich is the transfer of title by Borrower at a fi~ture date to a purchaser. If all or any part of the Property or any Interest ill the Property is sold or transferred (or if Borrower is not a natural person aid a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require hmnediate payment in full of all sums secured by tiffs Security Instrmnent. However, tiffs option shall not be exercised by Lender if such exercise is prolffbited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less tlmn 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sunls secured by this Security Instrmnent. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pemfitted by tiffs Security Instrunlent without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower sball have tile right to bare enforcement of fibs Security Instrument discontinued at any thne prior m the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrmnent; (b) such oilier period as Applicable Law nffght specify for the termination of Borrower's right to reinstate; or (c) entry of a judglnent eid'orcing tiffs Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums wlffch then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any dethult of any other covenants or agreements; (C) pays all expenses incurred in enforcing fibs Security h~strument, including, but not linfited to, reasmmble attorneys' tees, property inspection and valuation fees, and other lees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrumel~t; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property aid rights under tiffs Security Instrument, and Borrower's obligation to pay the stuns secured by tbs Security Instrument, slmll continne unchanged. Lender may require that Borrower pay such reinstatement sums and expenses iii one or more of the tbllowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or caslfier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrmnentahty or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, tiffs Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, tiffs right to reinstate shall not apply in the case of acceleration under Section 18. 20. S,'de of Note; Change of Lmm 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 Borrower. A sale nfight result fix a change in file entity (lmown as the "Loan Servicer") that collects Periodic Payments due under the Note and tiffs Security Instrument and perf0nns oilier mortgage loan servicing obligations tinder the Note, lifts Security h~strument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of file change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other intbrmation RESPA requires in cmmection with a 11~-6AONY) (oo05) p~g~ ~ or~ Fora 3051 1/01 0686428619 600 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 obhgations to Borrower will renmin with the Loan Servicer or be transferred to a successor Loan Servicer and are uot assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may conunence, 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 actious pursuant to tlfis Security Iustrmnent or that alleges that the other party has breached any provision of, or any duty owed by reason of, tlfis Security Instrmnent, 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 thne 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 tlfis Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous'substances, pollutants, or wastes by Envirotm~ental Law and the following substances: gasoline, kerosene, other flanunable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or fonualdehyde, and radioactive materials; (b) "Envirmunental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or' environmental protection; (c) "Envirmmlental Cleanup" includes any response action, remedial action, or removal action, as defined iu Enviromuental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or pemfit the presence, use, disposal, storage, or release of any Hazardous Substances, or flu:eaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Enviromneutal Law, (b) which creates an Environmental Condition, or (c) wlfich, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The precedh'~g two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recog~fized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, lmzardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any iuvesfigation, claim, demand, lawsuit or other action by any govenm~en~al or regulatory agency or private party involving the Property and any Hazardous Substance or Enviromnental Law of which Borrower has actual lmowledge, (b) any Enviro~m~ental Condition, including but not lh~fited to, any spillh~g, 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 goverlnnental 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 E~Vironmental Law. Nothh~g herein shall create any obligation on Lender for an Environmental Cleanup. Form 3051 1/01 Page 12 of 15 (~-6A(WY) (ooo5) 0686428619 NON-UNII~ORM 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 tiffs Secnrity Instrmnent (but not prior to acceleration nnder Section 18 mfless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action reqnired to cnre the defaalt; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the defanlt must be cnred; and (d) that faihwe to cnre the defanlt on or before the date specified in the notice may resnlt in acceleration of the snms secnred by this Secnrity Instrnment m~d sale of the Property. The notice shall fnrtber inform Borrower of the right to reinstate 'after acceleration m~d the right to bring a conrt action to assert the non-existence of a defanlt or any other defense of Borrower to acceleration and sale. If the defanlt is not cured on or before Ibc date specified in the notice, Lender at its option may require i~nmediate payment in full of all stuns secnred by this Security Instrnment withont fllrtber denmnd m~d nmy 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, inclnding, but not limited to, reasonable attorneys' fees mtd costs of title evidence. If Lender invol;es tile l)ower of sale, Lender slmll give notice of h~tent to foreclose to Borrower and to the person in possession of the Property, if differe,R, in accordm~ce with Applicable Law. Lender shall give notice of tile sale to Borrower in the manner provided in Section 15. Lemler shall publish the notice of sale, and the Property shall be sold in tile rammer 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, inclt,ding, bnt not limited to, reasonable attorneys' fees; (b) to all snms secured by this Secnrity Instrnment; and (c) any excess to the person or persoas legally entitled to it. 23. Release. Upon payment of all stuns secured by tiffs Security Instrmnent, Lender shall release fids 'Security Instrmnent. Borrower shall pay any recordation costs. Lender nmy clmrge Borrower a fee for releasing tiffs Security h~strument, but only if tile lee is paid to a third party for services rendered and the charging of the fee is pernfitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. ~&-6A(WY) (0oas) Pag~ 13 of t5 Form 3051 1/01 0686428619 BY SIGNING BELOW, Borrower accepts and agrees 'to the terms and covenants contained in this Secm'ity Instrmnent and in any Rider executed by Borrower and recorded with it. Witnesses: (Se.al) \Bo DIANE WAY (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -13orroxver -Borrower (Seal) (Seal) -Borrower -Borrower (~6AfWY) (0oo5) ~'ag¢ 14or t5 Form 3051 1/01 0686428619 603 STATE OF WYOMING, ~¢~~ County ss: The foregoh~!nstrumentwas aclmowl,~edbefore me this ~ r~ ~ ~.~E~ ~V~, My Conmfission Expires: Notary Public Page 15 of 15 Form 3051 1/01 SCHEDULE A Part of Section 9, T31N Rll9W of the 6th P.M., Lincoln County, Wyoming, described as follows: BEGINNING N 16°15' W, 1386 feet from the South Quarter corner of said Section 9; thence S 89045, W, 217 feet; thence N 0°15, W, 208.5 feet; thence N 89045, E, 182 feet; thence southerly along the centerline of the Crow Creek County Road No. 12-141 to the POINT OF BEGINNING. 0686428619 gO5 ADJUSTABLE RATE RIDER (LIBOR 6 Month Index (As Published hi The Wall Street Jout?ml) - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this fifth day of December, 2003 , and is incorporated il]tO and shall be deemed to amend and supplement the lvlortgage, Deed of Trust, or Security Deed (the "Security h~strument") of the ~ame date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Noie") to FIELDSTONE MORTGAGE COMPANY ("Lender") of the same date and covering the properly described located at: 2926 CROW CREEK RD, FAIRVIEW, Wyoming 83119 in the Security lustrument and [Prope[ty Address] TIlE NOTE cONTAINS PROVISIONS ALLOW1NG FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE L1MrFs TIldE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND TIIE MAXIMUM II. ATE BOIGROWER MUST PAY. ADDITIONAL coVENANTS. In addition to die covemuts and agreements omde in the Security h~strument, Borrower aod Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CIIANGES The Note provides for an iuitial interest rate of 7. 500 %. TILe Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEl*EST RATE AND MONTHLY PAYMENT C}h~dX/GES (A) Chaage Dales The interest rate I will pay may change on the first day of January 2 0 0 6 , and on that day every SIXTH month fl~ereafter. Each date on which my interest tale could change is called a "C!mnge Date." 1MULTISq'ATE ADJUSTABLE RATE RIDIgR-[ 1BOR 6 MON'FH INDEX (AS PUBLISHED IN THE ~VALL S'I?~EET JOURNAL )-Single Family-Fmmie Mae U~dfonu lastrumeut 1~838R (0005) Form 3138 lJ(ll Page I of 4 Initials: VMI, MOKTGAGE FOILMS - (800)521-7291 (B) The Index Begimfing wifl~ the first Change Date, my interest rate will be based on an Index. The "Index" is the average of iuterbank offered rates for 6 month U.S. dollar-denominated deposits hi file London market ("LIBOR"), as published hi The Wall Street JoutT~al. The most recent Index figure available as of file first business day of the month iumlediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is. no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding FIVE AND ONE-HALF percentage points ( 5. 500 %) to /he Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.12556). Subject to the lmfils stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment .that would be sufficient to repay fl~e unpaid principal that I am expected to owe at the Change Date hi full on the Maturity Date at my new interest rate in substantially equal payments. The result of tiffs calculation will be the new amount of my monfldy payment. (D) Limits on Interest Rate Chmlges The interest rate I am required to pay at the first Ch~mge Date will not be greater than 10. 500 % or less than 7. 500 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than ONE percentage points ( 1.0 0 0 %) froni tile rate of interest I have been paying for the precedh~g 6 months. My interest rate will never be greater than 13.5 0 0 %. (E) Effective Date of Changes Ny ±nterest rate will never be les~ than 7.500%. My new interest rate will become effective on each Change Date. I will pay the amount of my new monfldy payment begimdng on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any chal~ges iai my .interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me. and also the title and telephone nmnber of a person who will answer any question I may have regarding fl~e lmtice. 1~838R (0005) Page 2 of 4 Initials: ~~J~~~ Form 3138 l/0l B. TRANSFER OF THE PROPERTY OR A BENEFICiAL INTEREST IN BORROWER U~fiform Covenant 18 of the Security Instrmnent is amended to read as Ibllows: Transfer of the Property or a Beneficial Interest in Borrower. As used iu tiffs Section 18, "Interest hx file Property" means any legal or beneficial interest in the Property, including, but not hntited to, those beneficial interests transferred in a bond for deed, conmtct for deed, instalhnent sales contract or escrow agreement, .the intent of which is fl~e transfer of title by Borrower at a future date to a purclmser. If all or auy part of tile Property or any Interest in fl~e Property is sold or transl:~rred (or if Borrower is not a natural person and a beueficial interest in Borrower is sold or transferred) wifllout Lender's prior written consent, Lender nmy require hmuediate payment in full of all sums secured by tiffs Security Instrtunent. However, this option shall not be exercised by Lender if such exercise is.prolfibited by Applicable Law. Lender also shall not exercise tiffs option if: (a) Borrower causes to be subnfitted to Lender itfformation required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably detemfines tlmt Lender's security will not be impaired by the loan assmnption and that the risk of a breach of auy covenant or agreement in this Security h~strument is acceptable to Lender. To the extent pemfitted by Applicable Law, Lender nmy charge a reasomble tee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the pronfises and agreements made h~ fl~e Note and h~ tiffs Security Instrument. Borrower will continue to be obliga.ted under the Note aud tiffs Security Instrument tufless Lender releases Borrower in writing. If Lender exercises the option to require hmnediate payment in full,. Lender shall give Borrower notice of acceleration. The notice shall provide a period of uot less titan 30 days from ihe date the notice is given in accordance wiflx Section 15 within wlfich Borrower must pay all sums secured by tiffs Security Instrument. If Borrower fails to pay ti~ese stuns prior to file expiration of this period, Lender may invoke any remedies Pernfitted by fllis Security h~strtunent wifl~out furfl~er notice or demand on Borrower. I~838R (0005) Page 3 of 4 Form 3138 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and cove~mnts contained in tiffs (Seal) -Borrower Adjustable Rate Rider. ~~~al)  -BorroWer (Seal) (Seal) -Borrower DIA~ ~W~ ~ -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) [Seal) -Borrower -Borrower ~838R (0005) Page 4 of 4 Form 3138 1/01