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HomeMy WebLinkAbout896750Return To: Attn: Post Production/Loan Delivery State Farm Bank, F.S.B. 7500 West Jeff~rson~ Blvd Fort Wayne, IN 46804 896750 Prepared By: State Farm Bank, F.S.B. 7500 W. Jefferson Blvd Fort Wayne, IN 46804 RECEIVED LINO, OLH COrJt,!Ty OLERK ':BOOKO'J:rr'n 6 PR PAGE 507 .[Space Above Tlds Lhte For Recordh~g Data[ MORTGAGE 5036681 DEFINITIONS Words used in nmltiple sections of this document are defined below and other words are defined in Sectious 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in tiffs document are also provided in Section 16. (A.) "Security Instrument" means this document, which is dated January 13 th, 2 0 04 together with all Riders to dfis document. (B) "Borrower" is Frank Krachik, husband and wife, and Carolyn Sue Krachik, husband and wife Borrower is the mortgagor under dfis Security Instrument. (C) "Lender" is State Farm Bank, F.S.B. Lender is a Federal Savings Bank orgmfized and existing under the laws of the United States 70813493 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6{WY) 1ooo51 VMP MORTGAGE FORMS - {8001521-7291 Form 3051 1/O1 0S 6750 508 5036681 Lender's address is One State Farm Plaza, Bloomington, IL 61710-0001 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated January 13 th, 2004 The Note states that Borrower owes Lender One Hundred Sixty Two Thousand Six Hundred Thirty Five and 00/100 Dollars (U.S. $ 16 2,6 3 5.0 0 ) plus interest. Borrower has promised to pay this debt itl regular Periodic Payments and to pay the debt in full not later than February 1st, 2034 (E) "Property" medaLS the property that is described below under the heading "Transfer of Rights in the Property." OF) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~-] Adjustable Rate Rider [-~ Condominium Rider ~] Second Home Rider ~ Balloon Rider ~-~ Plam~ed Unit Development Rider ~] 1-4 Family Rider [-~ VA Rider ~ Biweekly Pay~neut Rider ~] Other(s) [specifyl 0t) "Applicable Law"' means all controlling applicable federal, state and local statutes, regulations, ordinances a~xl administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, ho~neowners association or similar organization. (J) "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 ternfinal, telephonic instrument, computer, or ~nagnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller nmchine transactions, transfers initiated by telephone, wire transfers, and autonmted clearinghouse transfers. : (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" meaus any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5)'for: (i) damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condennmtion; or (iv) xnisrepresentati0ns of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpay~nent of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) auy amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Setflement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~)~-6(WY)' (00061 Page 2 of 15 Form 3051 1/01 .... 509 5036681 (P) "Successor in Interest of Borrower" nleans any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrmnent. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions aid lnodifications of the Note; and (ii) the performance of Borrower's cove,ants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located inthe Recorder of Lincoln County : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 36 OF STAR VALLEY RANCH PLAT 5, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. Parcel ID Number: 12-3419-01-01-078.00 226 Scrub Oak Drive Tha yne ("Property Address"): ]City] , which currently has the address of ]Street] Wyoming 8 3 12 7 [Zip Code] 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 tiffs Security Instrument. All of die foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS flat 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 die 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-unifomn covenants with lilnited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covmmnt 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 prepaytnent charges and late charges due under the Note. Borrower shall also pay funds for Escrow Ite~ns pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Initials.~/~ (~-6{WY) (ooos} P~. :3of 15 -'-"' - I Form 3051 1/01 08 750 510 5036681 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 rime Ibllowing forms, as selected by Lender: (a)cash; (b) nmney order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. 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 phyments are insufficient to bring the Loau current. Lender may accept any paylnent or partial payment insufficient to bring time Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on mmpplied funds. Lender may hold such unapplied funds until 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 inunediately prior to foreclosure. No offset or claim which Borrower ~night 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 under 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 which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received /'rom Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be. paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrmv Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: ~a) taxes and assessments and other ite~ns 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) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance prmniums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any tilne during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly funfish 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 Leuder Funds for any or all Escrow Items at any time. Any such waiver may only be in writiug. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts Init~ (~-6{WY) Iooosl Page 4 of 16 Form 3051 1/01 511 5036681 due for any Escrow Iteuis for which payment of Funds has been waived by Lender and, .if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to nmke such paymeuts and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such an]ount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender nay revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pal to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Iten~ no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, a~mually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is nnde in writing or Applicable Law requires interest to be 'paid on the Fro]ds, Lender shall not be required to pay Borrower any interest or eanfings on the Funds. Borrower and Lender can agree in writing, however, that 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 the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as deftned under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to nmke up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender die amount necessary 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 wlfich can attain priority over fids Security Instrument, leasehold payments or ground rents on the Property, if any, and Contain]dry Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the ntam~er provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a maimer acceptable to Lender, but only so long as Borrower is perfornfing such agreement; (b) contests the lien in good faith by, or defends against enforcement of die lien in, legal proceedings which in Lender's opi]fion 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 determines that any part of the Property is. subject to a lien which can attain prioritY over this Security h~strument, Lender may give Borrower a notice identifying the (~)~-6(WY) (ooo5l Page 5 o~ ~s Form 3051 1/01. 0S96750 512 5036681 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can. change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in comlection with this Loan, either: (a) a one-time charge for flood zone deternfination, certification and tracking services; or (b) a one-time charge for flood zone determination 'and certification services and subsequent charges each time remappings or sinfilar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone deternfination resulting from an objectiou by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's optiou and Borrower'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 might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower'could hax(e obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment, All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for danmge 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 file insurance 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 economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure file work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken proxnptly. 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, kender shall not be required to pay Bfrrower any interest or earnings on such proceeds. Fees for public adjusters, or 'other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with ~ initi=as:~ (~-6(WY) Iooosl Pag~ ~ of ~s ~ ~ Form 3051 1/01 513 5036681 rite excess, if any, paid to Borrowe/. 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 nmtters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender nmy 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 Secdon 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 this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence wiflfin 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after file date of occupancy, unless Lender ofl~erwise agrees in writing, which consent shall not be unreasoitably withheld, or unless extenuating circumstances exist wlfich are beyond Borrower's control. 7. Preservation, Maintenance aud Protection of the Property; Inspections. Borrower shall not destroy, damage or impair file Property,' allow the Property to deteriorate or comfit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall nmintain the Property in order to prevent tl~e Property from deteriorating or decreasing in value due to its condition. Unless it is deternfined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if danmged to avoid further deterioration or danmge. If insurance or conde~m~ation proceeds are paid in com~ection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property tuffy if Lender has released proceeds for such purposes. Lender may disburse proceeds for fl~e repairs and restoration in a single payment or in a series of progress payments 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 Borrower's obligation for the completion of such repair or restoration. Lender or its agent nmy make reasonable entries upon and inspections of the Property. If it has reaso~mble cause, Lender may inspect the interior of the improvements on the Property. Lender sliall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. BorrOwer's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave nmterially false, misleading, or inaccurate i~fformation or statements to Lender (or failed to provide Lender with material inforumtion) in com~ection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covelmnts and agreements contained in this Security Instrument, (b) there is a legal proceeding that ndght significantly affect Lender's interest in tl~e Property and/or righk~ under tlfis Security Instrument (such as a proceeding in bankruptcy, probate, for condemtmtion or forfeiture, for enforcement of a lien which nmy attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender nmy do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and' rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions cau include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable {~-6(WY) (ooos) P,,g~ 7 o115 Form 3051 1/01 0S9(i750 514 5036681 attorneys' fees to protect its interest in the Property and/or rights under this Security hlstrument, including ~ts secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to nmke repairs, change locks, replace or board up doors and windows, drain water fro:n pipes, eli~ni~mte building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized uuder this Section 9. Any amounts disbursed by Lender under this Section 9 shall beco~ne additional debt of Borrower secured by this Security [ustrmnent. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the ~nerger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the prenfimns for Mortgage Insurance, Borrower shall pay the premimns 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 ih effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, ahd Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. I'f Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the prenfiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until ternfination 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 enterinto 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 nmy require the ~nortgage insurer to nmke payments using any source of funds that the mortgage .insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that 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 premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any sukh agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance,, or any other terms of the Loan. Such agreements will not increase the amonnt Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. I (~-6(WY) 10o061 Pa~e 8 o~ 1~5 Form 3051 1/01 515 5036681 (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 the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken pro~nptly. Lender n]ay pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is cmnpleted. Unless an agreement is ~nade in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If il~e restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with fl~e excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property ilmnediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by tiffs Security h]strument inunediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaueous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured i~mnediately before the partial taking, destruction, or loss, in value divided by (b) the fair market value of the Property iunnediately before the'Partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property innuedia!ely before the partial taking, destruction, or loss in value is Iess than the amount of the sums secured inm~ediately 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 stuns secured by this Security Iustrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or ~mt 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 crinfinal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the actiOn or proceeding to be disnfissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender'g interest in the Property or rights under this Security Instrument. The proceeds of any award or clai~n for dan]ages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. (~-6(WY) Iooos) P~. 9 o~ ~s Form 3051 1101 5036681 12. Borrower Not Released; Forbearance By Lender Not a V~aiver. Extension of the time for payment or ]nodification 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 time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any dmnand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing fllis Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of tiffs Security Instrument; (b) is not personally obligated to pay .the sums secured by tiffs Security Instrument; and (c) agrees that Lender and any other Borrower can agree to. extend, modify, forbear or make any acconnnodations with regard to the ternks of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released t¥om Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and 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 nuiy charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instnunent, including, but not linfited to, attorneys' fees, property inspection and valuation tees. In regard to 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 nmy 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 nmximum 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 Ii,nits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pernfitted limit; and (b) any stuns already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Letder lnay choose to make this refund by reducing die principal owed under the Note or by making 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 arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in 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 nmiled by first class lnail 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 requires otlmrwise. The notice address shall, be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall prolnptly 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 nmy 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 ~nail to Lender's address stated herein unless Lender has designated atmther address by notice to Borrower. Any notice in com~ection 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 Ins trument. I (~-6(WY) (OddS} Page 10 o¢ 16 Form 3051 1/01 O89G?GO 517 5036681 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed lay federal law and the law of thc jurisdiction in which 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. In the event that any provision or clause of this Security Instrument or fire Note conflicts with Applicable 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 Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or Words of the femi~fine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "nmy" gives sole discretion without auy obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of Otis Security Instrument. 18. Transfer of the Property or a Beneficial Iuterest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not li~nited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest 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 paynrent in full of all sums secured by this Security Instru~nent. 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 Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets Certain conditions, Borrower shall have the right to have enforcement of this Security Instrument 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 Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under tiffs Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not linfited to, reasonable attorneys' fees, property inspection a~d valuation fees, aud oilier fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by 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, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However,' this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrumen0 can be sold one or more ti~nes without prior notice to Borrower. A sale nfight result in a change in the entity (known as the "Loan Servicer") fl~at collects Periodic Payments dne under the Note and fids Security Instrument and performs oilier mortgage loan servicing obligations under the Note, this Security Instrument, aud Applicable Law. There also nfight be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA · (~-6{WY) (OddS} Paoe 11 of 15 Form 3051 1/01 518 5036681 requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the ~nortgage. loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an imiividual 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 Instrument, 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 dee~ned to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviro~unental 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) "Enviromnental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environn~ental protection; (c) "Enviromnental Cleanup" includes auy response action, remedial action, or removal action, as defined in Environn~ental Law; and (d) an "Enviroiunental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or thr~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 Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two senteuces shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintexmnce of the Property (including, but not linfited 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 governmental or regulatory agency or private party involving the Property and any Hazardous Substauce or Environmental Law of which BorroWer has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substauce which adversely affects die 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. Nodfing herein shall create any obligation on Lender for an Enviromnental Cleauup. II~-6(Wy) Iooosl P~e 12 o~ 15 Form 3051 1/01 519 5036681 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender si]all 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 secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice,. Lender at its option may require immediate payment in full of all 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 limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of tbe Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in tile manner provided in Section 15. Lender shall publish the notice of sale, and'the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in tbe following order: (a) to all expenses of tile sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release tlfis Security Instrmnent. Borrower shall pay any recordation costs. Lender ]nay charge Borrower a fee for releasing fids Security Instrument, but oldy if fl~e fee is paid to a tkird party for services rendered and fl~e charging of die fee is pernfitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights Under and by virtue of fl~e homestead exemption laws of Wyonfing. (~)~-6(WY) (ooos) Page 13of ~5 Form 3051 1)01 OS fi?50 5 0 5036681 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Securi [y Instrument and in any, Rider executed by Borrower and recorded with it. Witnesses: Frank Krachi~ (Seal) -Borrower Carol yn~' Sue Krac~k -Borrower (Seal) (Seal) znorrower -Borrower . (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~6(WY) moos) Pag. ~4 of ~ Form 3051 1101 STATE OF WYOMING, The foregoing instrument was acknowledged before ~ne this by Frank Krachik, and Carollrn Sue Krachik January 13th, County 2004 LINCOLN \~._..~ ~.WYq~NG $ Notary P~ l ic Form 3051 1/01 522 5036681 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is nmde this 13 th day of January, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date, given by the undersigned (the "Borrower") to secure Borrower's Note to State Farm Bank, F.S.B. (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 226 Scrub Oak DriVe, Thayne, WY 83127 [Property Address] The Property includes, but is not limited 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 Restrictions of Record (the "Declaration"). The Property is a part of a planned unit 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 nmnaging the cormnon 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 ll~strument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Bor,,rower shall perform all of Borrower's obligations under the PUD's Constitueut Documents. The Constituent Documents are the (0 .Declaratton; 00 articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or off, er rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. MULTISTATE PUD RIDER Single Family Fannie Mae/Freddie Mac UNIFORM - - INSTRUMENT 6orm 3150 3/99 ?0813490 Page 1 of 3 Initials: ~/ (~7R (0003) VMP MORTGAGE FORMS- (800)521-7291 ~~ ,~'/~ 523 5036681 B. Prop.erty Insurance. So long as the Owners Association maimains, with a generally accepted insurance career, a "master" or "blanket" policy insunng 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 premimn instalhnents for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to nmiutain 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 condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance 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 connnon 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 tile sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. 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 form, 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 com~ection with any condenmation or other taking of all or ally part of the Property or the conunon areas and facilities of tile 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 abandomnent or temfination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condenmation or enfinent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) temfination of professional management and assmnption 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 assess~nents When due, then Lender may pay tl~em. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at tile Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. (~<~7R (0003) Page 2 of 3 Form 3150 3/99 5036681 BY SIGNING BELOW, Borrower accepts and agrees [o the £erms and provisions conta|ned in this PUD Rider. -Borrower Frank Kra ct~k/ -Borrower (Seal) ~/~K~ (Seal) -Borrower r ylq C~ ch i k -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower IIi%7 (ooo3) Page 3 of 3 Form 3150 3/99 0S96750 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Rate Caps) 5036681 THIS FIXED/ADJUSTABLE RATE R/DER is nmde this 13th day of ,January, 2004 , and Is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to State Farm Bank, F.S.B. ("Lender") of the same date and covering the property described in the Security Instrument and located at: 226 Scrub Oak Drive, Thay~ne, WY 83127' · [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 5.125 %. The Note also provides fora change in the i~fitial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates ' The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of February, 2011 , and the adjustable interest rate I will pay nmy change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date ou which my adjustable interest rate could change, is called a "Change Date." 70813491 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Single Fannie Mae Uniform Instrument VMP MORTGAGE FORMS - (800)521-7291 5036681 (B) The I.dex Begi~ming with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant ma turity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "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 tiffs choice. (C) Calculation of Changes Before each Change Date, the Note Holder Will calculate ~ny new ~nterest rate by adding Two and '750 / 1000 percentage points ( 2. 750 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125 %). Subject to the linfits stated in Section 4(D) below, this rounded amount will be ~ny new interest rate until the next Change Date. The Note Holder will then deternfine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I a~n expected to owe at fl~e Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new axnount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 10. 125 % or less than 2. 750 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will uever be .greater than 10. 125 . %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any chauges in my adjustable interest rate before the effective date of any cha~ge. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any question I nmy have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument shall read as follows: Initials:...~/ i1~843R (0006) Page 2 Of 4 ~ ' -- Form 3182 1/01 527 5036681 Tr;1nsl'er ot' tile Property or ;1 Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property'i means any legal or beneficial interest in the Property, including, but not lilnited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural Person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender ~nay require i~mnediate 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 these sums prior to the expiration of this period, Lender nmy invoke any remedies perniltted by this Security Instrmnent without further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described ill Section B1 above shall then cease to be in effect, and the provisions of U~fiform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in file Property" means any legal or beneficial interest in the Property, including, but not lindted to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural .person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were bei;1g made to the transferee; and (b) Lender reasonably deternfines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent pernfitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also my require the transferee to 'sign an assumption agreement flint is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made ill the Note and in this Security Instrument. Borrower willcontinue to be obligated under the Note and this Security Instrument mfless Lender releases Borrower in writing. If Lender exercises the option to require inm~ediate payment in full, 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 wlfich Borrower must pay all · (~843R (0006) Page 3 of 4 Form 3182 1/01 O8.96'?5O 5036681 sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pemfitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in fltis Fixed/Adjustable Rate Rider. -Borrower Frank Kra ct~k -Borrower (Seal) ~~5'*{J--'~~ (Seal) -Borrower Carolyn Sue' KrachkJ..k -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower' -Borrower (~843R (0006) Page 4 of 4 . Form 3182 1/01