Loading...
HomeMy WebLinkAbout896985#30173(02) 896985 RECEIVED LINCOLN COrJNTY CLERK O",?_.',!~N ~0 f'!l I: 25 After Recording Return To: FIRST BANK OF IDAHO, FSB D/B/A FIRST BANK ADVISORS P.O BOX 12860 JACKSON, WY 83002 DEFINITIONS [Space Above This Line For Recording Data] SANDNER MORTGAGE Low #: 494011190 MIN: 100174102000010852 PIN #: 34191040001900 Words used in multiple sections of this document are defined below and other xvords are de£med in Sections 3, 11, 1~, 18, 20 and 21. Certain roles regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrumeut" means this document, which is dated together with all Riders to this document. (B) "Borrower"is JERED M. SANDNER, A SINGLE MAN JANUARY 26, 2004 Borrower is the mortgagor under tiffs Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate co~poration that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel (888) 679-MERS. (D) "Lender" is FIRST BA/qK OF IDAHO, FSB D/B/A FIRST BANK ADVISORS Lender is a CORPORATION organized and existing under the laws of IDAHO . Lender's address is P.O. BOX 9000 KETCHUM, ID 83340 (E) "Note" means the promissory note signed by Borrower and dated J/~"tlARY 2 6, 2 0 04 The Note states that Borrower owes Lender TWO HUNDRED SIXTY THOUSAND AND 00/100 Dollars (U.S. $ 260,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later tlmn FEBRUARY 1, 2 03 4 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. WYOMING - Single Family - Fannie MaedFreddie Mac UNIFOR3'I INSTRUMENT Form 3051 1/01 DOCUKWY (Page I of 13 pages) DOCUKWXl. VT/ 10/17/2002 494011190 (H) "R~der$" means all Pdders to th/s Security Instrument that are executed by Borrower. The followin§ Riders are to be execnted by Borrower Icheck box as applicable]: [] Adjustable Rate Rider [] Balloon Rider [] 1-4 Family Rider [] Condominium Rider [] Plam~ed 'Unit Development Rider [] Other(s) [specify] [] Second Home Rider [] Biweekly Payment Rider (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Conmmnity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borro~ver or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of fimds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electromc terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term inclndes, but is not limited to, point-of-sate transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearh~ghonse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described iii Section 5) for: (0 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 condemnation; or (iv) misrepresentations of, or onfissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regnlarly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 oftlfis Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Secnrity Instrnment, "RESPA" refers to all requirements and resta'ictions 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. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS 1N THE PROPERTY This Security Instrnment secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For tlfis purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the snccessors and assigns of MERS, and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY CLERK of LINCOLN (Type of Recording Jurisdiction) (Name of Recording Jurisdiction) : LOT 23, OF SOUTHBROOK RANCHES SUBDIVISION, LINCOLN COUNTY, WYOMING, ACCORDING TO THAT PLAT RECORDED IN THE OFFICE OF THE LINCOLN COUNTY CLERK ON SEPTEMBER 5, 1990 AS PLAT NOS. 335-1 AND 335-2. which cnrrently has the address of 134 LUPINE DRIVE THAYN'E' ,Wyoming 8 312 7 . [City] [Zip Code] WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~ DOCUKWV2 (Page 2 of 13 pages) DOCUKWY2 .VTX 10/17/2002 [Street] ("Propel~y Address"). Form 3051 1/01 494011190 TOGETHER WITH all the improveme,nts now or hereafter erected on tile property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply With law or custom, MERS (as nominee for Lender and Leuder's successors and assigns) has the right: to exercise any or all of those interests; including, but not limited to, the right to foreclose and sell tim Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument BORROWER COVENANTS that BmTower is laxvfiflly seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-unifom~ covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charge% due under the Note. Borrower shall also pay funds for Escrow Items 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 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due uuder the Note and this 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 cashier's check, provided any such check is dra~vn 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 payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied fnnds 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 immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing 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 from Borrower to the repayment of the Periodic Paymeuts 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 fifll 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. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCU~W~3 (Page 3 of l 3'pages) DOCUIGqY3 .VTX 10/17/2002 :' "' ' .:; ?.'Z",,'.'V', 't'94011190 Any application of payments, insurauce 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. Yunds for Escrow 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 palanent of amounts due for: (a) taxes and assessments and other items which cau 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 Sectiun $~ and (d) Mortgage Insurance premiums, if any~ or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiunts in accordance with the provisions of Section 10. These items are called "Escrow Items." At ori§inafion or at any time dining the tcm~ 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 Escro~v Item. Borrower shall prom?tly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escro~v Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower stiall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borroxver's obligation to make such'payments and to provide receipts shall for all purposes be deemed to be a 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.lnay 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 the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all 'Funds, and in such amounts, that are then required under 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 Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrmv account, or verifying fl~e 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 xvriting, however, that interest shall be paid on the Funds. Lender shall give to Borro~ver, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shail account.to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more tlian 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount 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 refi~nd to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges; fines, and impositions attributable to the Property wlfich can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any~ and Community Association Dues, Fees, and Assessments, if any: To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Bm-rower shall prmnptly 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 maturer acceptable to Lender, but only so long as Borrower is perfornfing such agreement; (b) contests the lien in good faith by, or WYOMING - Single Family - Fannie Mae/Freddle Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCUKWht4 ' ' (Page 4 of 13 pages) DO CUllS'/4 .VII 10/17/2000 49401.1.1.90 defends against enforcement of the .lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lieu to this Security Instrument. If Lender de~ernfines that any part of fire Property is subject to a lien ~vhich can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5~ Property Insurance. Borro~ver shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended ~overage," 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, Milch right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-t/me charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur ~vhich reasonably might affect such determination or certification. Bon'ower 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 objection by Borroxver. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is 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 nilght significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of 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 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 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 the xvork has been. completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the iusurance proceeds and shall be the sole obligation of Bon'ower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the snms secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in fl~e order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond xvithin 30 days to a notice from Lender that the insurance carrier has WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 r~ocu~:wv5 (Page 5 of 13 pages) OaB Gg:S.,G ' 2 9 4 494011190 offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (h) 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 nmy use the insurance proceeds either to repair or restore the Property. or to pay amounts unpaid nnder the Note or this Security ]nstrmnent, whether or not.then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security lnstn~ment and shall continue to occupy the Property as Borrower's principal residence for at least one year after dm date of occupancy, unless Lender otherwise agrees in xvriting, which consent shall not be um'easonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or conunit 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 deternfined 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 damage. If insuiance or condenmation proceeds are paid in com~ection with damage to, or the taking of, the Property, Borrower shall be responsible for repaihng 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 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 may make reasonable entries upon and inspections of the Propm%,. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable 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 materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material infom~ation) in connection 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 Instrnment. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condenmmtion or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of 'the Proped'y, and securing and/or repairing the Property. Lender's actions can 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 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not linfited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, elinfinate 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 incm's 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 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. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. ~¥YOMING - Single Family -Fannie Mae/Freddie Mac UNIFORIM INSTRUMENT Form 3051 1/01 DOCIJKWY6 (Page 6 of 13 pages) DOCUZWY6. VTX 10/17/200~ 494011190 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making tl~e Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortga§e Insurance coverage required by Lender ceases to be available fi'om the mort§age insurer that previously provided such insurance and Borrower was required to make separately designated payments to~vard the premiums for Mortgage Insurance, Borrower shall pay the preminms required to obtain coverage substantially eqnivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Bo~ower of the Mortgage Insnrance previously in effect, from an alternate mortgage insurer selected by Lender. If snbstantially equivalent Mortgage Insnrance 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, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by'an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Leuder's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insmance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Bon'ower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive frown (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 such 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 amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowuers 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 economically feasible and Lender's security is not l'essened. 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 promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneons Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOC~14w¥~ (Page 7 of 13 pages) DOL-TJKI~Y7. VTX 494011190 this SecmSty Instrument, whether or not then due, ~vith the 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 immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender dtherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately 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 wlfich the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately 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 this Security Instrument whether or not the sums are-then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borroxver 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 not then due. "Opposing Party" means the third party that o~ves Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard 1o Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the PropertY or other material impaim~ent of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to 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. 12. Borrower Not Releasedl Forbearance By Lender Not a Waiver. Extension 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 requked to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for pay. ment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borro~ver. 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 this Security Instrument only to mortgage, grant and convey the co-signer's interest iu the Property under the temps.of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accormnodations with regard to the terms 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 Ij~stmment iii writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in ~vriting. The covenants and ~VYOMING L Single Family - Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3051 1/01 DOCUr. WV8 (Page 8 of 13 pages) DO~KWY8. VTX 10/17/2000 ?. 9.7 494011190 agreements of this Security Instrnment shall bind (except as provided in Section 20) and benefit thc successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connect{on with Borrower's default, for thc purpose of protecting Lender's interest in thc Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, thc absence of express authority in this Security Instrnment to charge a specific fcc to Borrower shall not be constrned as a prohibition on the charging of such fee. Lender may not charge fccs that are expressly prohibited by this Security Instrnmcnt or by Applicable Law. If thc Loan is subject to a law wldch sets maxinmm loan charges, and that law is finally interpreted so that thc interest or other loan charges collected or to bc collected in connection with thc Loan cxcecd thc permitted limits, thcn: (a) any such loan charge shall bc reduced by thc amount necessary to reduce thc charge to the permitted limit; and (b) any sums akcady collected from Borrower which exceeded pernfittcd limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under thc Note or by making a direct payment to Borrower. If a refund reduces principal, thc reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under thc 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 ovcrcharge. 15. Notices. All notices g~vcn by Borrower or Lender in connection with this Security Instrunrcnt must be 'in writing. Any notice to Borrower in connection xvith this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by fo:st class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in coimection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction/This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable La~v. 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 the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrnment 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 nenter words or words of the feminine gender; (b) ~vords in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in 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 inm~ediate 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 Instrument. If Borrower fails to pay these sums prior to the ~VYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKWY9 (Page 9 of 13 pages) ~ocmm't~.wx Form 3051 1/01 OLqgGgS'G 2 9 8 494011190 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 discontinned 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 euforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Secnrity Instrument and the Note as if no acceleration had occurred; (b) cures any defanlt of any other covenants or agreemeuts; (c) pays all expenses incnrred in enforcing this Security Instrument, including, but not linfited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under 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 fmxns, 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 secnred hereby shall remain fifily 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 Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments dne under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer nnrelated 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 rei:luires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Bon'ower 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 individnal 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 Insn-uinent, 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 Laxv provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and 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 de£med as toxic or hazardous substances, pollutants, or ~vastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvent% materials containing asbestos or fom~aldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause; contribute to, or other~vise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release 0f any Hazardous Snbstances, or tlu:eaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Prope~Xy (a) that is in violation of any Enviromnental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 nocmtwvm (Page 10 of 13 pages) DOC~KWYA. VTX 10/1~/2002 494011190 creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender ~vritten 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 Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not tinfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration nnder Section 18 nnless 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 must 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 Lemler invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided 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 pt, rchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the 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 Instrunrent~ Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers..Borrower releases and waives all rights under and by .virtue of the homestead exemption laws of Wyonfing. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKWY~ ~ (Page 11 of 13 pages) DOCUKIqkrB. VTX 10/17 t~a00~ Form 3051 1/01 300 494011190 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security InsO-ument and in any Rider executed by Bon'ower and recorded with it. ~~ ~ ~ ~ o~/~'/,~ ER ~ JERED M. SANDNER - DATE WYOMING -Single Faro ly. Farm e Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKWYI2 (Page 12 of 13 pages) DOCUKWYC. VTX 10/17/2002 Form 3051 1/01 494011190 301 [Space Below This Line For Acknowledgment[ STATE OF COtmT¥ OF L~r~i The foregoing instrument was acknowledged before me by Jered M. Sandner, this ,~' y 7~-'-~ day of a single man Wimess my hand and official seal. Notary Public My Commission Expires: WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCU}CWYt3 (Page 13 of l3 pages) DOCUKtqYD. VTX 6/6/2002 Form 3051 1/01 302 SECOND HOME RIDER SANDNER LOAN #: 494011190 MIN: 100174102000010852 THIS SECOND HOME RIDER is made on this 2 6TH dsy of JANUARY, 2 0 0 4 and is incmporated 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," whether there are one or more persons undersigned) to secure Borrower's Note to FIRST BANK OF IDAHO, FSB D/B/A FIRST BANK ADVISORS (the "Lender") of the same date and covering the property described in the Security Instrument (the "Property"), which is located at: 134 LUPINE DRIVE, TI{AY'NE, WY 83127 (Property Address) In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree that Sections 6 and 8 of the Security Instrument are deleted and are replaced by the following: 6. Occupancy. Borrower shall occupy, and shall only use, the Property as Borrower's second home. Borrower shall keep the Property available for Borrower's exclusive use and enjoyment at all times, and shall not subject the Property to any timesharing or other shared ownership arrangement or to any rental pool or agreement that requires Borrower either to rent the Property or give a management fim~ or any other person any control over the occupancy or use of the Property. 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 materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) 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 second home. MULTISTATE SECOND HOME RIDER- Single Family-Fannie Mae/Freddie Mae UNIFORM INSTRUMENT DOCURSAI Page I of 2 DOCURSAI.V~X 1~/a8/2003 Form 3890 1/01 OL gf3985 303 494011190 BY SIGNING BELOW, Borrower accepts and a§r¢¢s to the terms and provisions contained in this Second Home Rider. ~/BORROWER - JERED M. SANDNER - DATE - MULTISTATE SECOND ItOME RIDER- Single Family-Fanhie Mae/Freddie Mac UNIFORM INSTRUMENT DOCURSA2 Page 2 of 2 DOCURSA2.VTX 11/28/200] Form 3890 1/01 304 ADJUSTABLE RATE RIDER (LIBOR One-Year Index (As Published In The Wall Street Journal-Rate Caps) THIS ADJUSTABLE RATE RIDER is nmde this 2 6 TH day of JANIJARY, 2 0 0 4 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 Adjustable Rate Note (the "Note") to FIRST BANK OF IDAHO, FSB D/B/A FIRST BAI~ ADVISORS located at: 134 LUPINE (the "Lender") of the same date and covering the property described in the Security Instrument and DRIVE THAYNE, WY 83127 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE 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. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of rate and the monthly payments as follows: 4.625 %. The Note provides for changes in the interest 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the f'n'st day of FEBRUARY 1, 2007 MULT1STATE ADJUSTABLE RATE RIDER--WSJ One-Year LIBOR-Single Family--Fannie Mae UNIFORM INSTRUMENT Docu^Qs, Page 1 of 4 ~ocu~o~x.~rx o,/2o/2o0x , and on Form 3189 6/01 that day every 12th mouth thereafter. Each date on which my interest rate could change is called a "Change Date.' (B) The Index Begimfing with the first Change Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for one-year U.S. dollar-denonfiuated deposits in the London market ("LIBOR"), as published in The Wall Street ,Journal. 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 which 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 TWO AlgD ONE- FOURTH perceutage points ( 2,250 %) to the CmTent 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 limits 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 the unpaid principal that I am expected to owe at the 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 amount of my monthly payment. (D) Limits ou Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 6.625 % or less than 2. 825 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points froin the rate'of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 10.625 %. (E) Effective Date of Changes monthly monthly My new interest rate will become effective on each Change Date. I will pay the amount of my new pa)anent beginning on the first monthly paymeut date after the Change Date until the amount of my pa3nnent changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in 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 number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as folloxvs: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section . 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales cOntract or escrow agreement, the intent of which is the transfer Of title by Borrower at a future date to a purchaser. MULTISTATE ADJUSTABLE RakTE RIDER--WSJ One-Year LIBOR--Single Family -Fannie Mae UNIFORM INSTRUMENT ~cu^cm Page 2 of 4 DOCUA082. VTX 11/08/2001 Form 3189 6/0 ! 306 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 inmrediate payment in full of all sums secnred by tiffs 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 iff (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably detemfines 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 $ecnrity Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to,Lender's consent to the loan assnmption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Bolxower will continue to be obligated undei' the Note and tlfis Security Instrument unless 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 xvithin which Borrower must pay all sums secured by this Security Instnlment. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any relnedies permitted by this Security Instrument without further notice or demand on Borrower. MULTISTATE ADJUSTABLE RATE RIDER--WSJ One-Yenr LIBOR--Single Family -Fanoie Mae UNIFORM INSTRUMENT ~oo~l['~.~x x,/o~aoox Page 3 of 4 Form 3189 6101 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. BORROWER - JERE~) M. SANDNER DATE MULTISTATE ADJUSTABLE RATE RIDER WSJ One-Year LIBOR-Single Family-Fannie Mae UNIFORM INSTRUMENT Docu^o84 Page 4 of 4 DOCUAQ84. ~"~X 1R/03/2001 Form 3189 6/01