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HomeMy WebLinkAbout897242W/{EN RECORDED MAIL TO: OPTION ONE MORTGAGE CORPORATION P.O. BOX 57096 IRVINE/ CA 92619-7096 ATTN: RECORDS MANAGEMENT Loan NUmber: 321017044 Servicing Number: 001271485-3 972h2 [Spare Above This Line For Rsa:ording Data]. RECEIVED LINCO[..N COt,f'!T'( CLERK 153 PRi:PAGE MORTGAGE THIS MORTGAGE ("Security Instrument") is given on February 0'6, 2004 . The ~nortgagor is HECTOR GARCIA J~ND LILIA GARCIA , HUSBAND AND WiFE ("Borrower"). This Security Instrument is given to Option One Mortgage Corporation, a California Corporation which is organized and existing under the laws of CALIFORNIA , and whose address fs 3 Ada, Irvine, C~ 92618 ("Lender"). Borrower owes Lender the principal sum of SEVENTY NINE THOUS32qD · . .3dqD NO/i00THs Dollars (U.S. $79,000.00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on March 01, 2034 . This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant, convey and warrant to Lender, with power of sale, the following described property located in Lincoln County, Wyoming: 12-3218-30-3-01-008 00 SEELEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART THEREOF. which has the address of Wyoming 83110-1534 [Zip Code] 277 MADISON ST, AFTON [Street, City], ("Property Address"); TOGETHER WITH all. the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the ProPerty is unencumbered, except for encunlbrances of record· Borrower warrants and will defend generally the title to the Property against all claims and dmnands, subject to any encumbrances of record· COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepaylnent and late charges due under file Note· 2. F-nds for Taxes and ~. Subject to applicable law or to a written waiver by Lender, Borrower 'shall pay to WYOMING - Single Family Page 1 of 6 WYD10011 (06-23-98) h-WY (02,'0 Loan Number: 32103.'7044 Servicing Number: 003.273.485-3 . Date: 02/06/04'. · l~ Lender on ~e day monflfly payments are due raider ~e Note, until ~e Note is paid in ~I1, a sum ("Funds") for: (a) yearly taxes and assessments which may attain priority over tiffs Security Instrument as a lien on fl~e Property; (b)yearly leasehold payments or ground rents on file Property, if ally; (C) yearly baird or property ii~urance preens; (d) yearly flood insurance pre~u~, if any; (e) yearly mortgage insurance pre,urns, if any; and (0 any $Ul!IS payable by Borrower to Lender, in accordance wi~ provisions of paragraph 8, in lieu of fl~e payment of mortgage insurance pre~un~. These iten~ are called "~crow Items." Lender ~y; at any time, collect and hold Funds in an amount not to exceed ~e nm~mum amount a lender for a.federally related mortgage loan may require for Borrower's escrow account under fl~e federal Real Estate Settlement Procedures Act of 1974 as amended time to time, 12 U.S.C. Section 2601 et seq. ("~SPA"), unless anofl~er law ~at applies to file Funds sets a lesser amount. If so, Lender nmy, at any time, collect and hold Funds in an amount not to exceed fl~e lesser amount. Lender may esti~te fl~e amount of Funds due on ~e basis of current data and reasolmble esti~tes of expenditures of ~mre Escrow Itel~ or o~erwise in accordance wi~ applicable law. The Pmlds shall be held in an i~titution whose deposits are insured by a federal agency, i~tmmentality, or entity (including Lender, if Lender is such an i~titution) or in any Federal Home Loan Ba~. ~nder shall apply file Funds to pay ~e Escrow Items. Lender may not charge Bo~ower for holding and applying ~e Funds, a~ually a~lyzing ~e escrow'account, or verifying fl~e Escrow Items, unless Lender pays Borrower interest on file Funds and applicable law per, ts Lender to ~ke such a charge. However, Lender nmy require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in comlection wi~ ~is loan, u~ess applicable law provides ofl~e~vise. U~ess an agreement is nmde or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earniugs on file Funds. Borrower and Lender umy agree in writing, however, that interest shall be paid on file Funds. Lender shall give to Borrower, wi~out charge, an a~mual accounting of the Funds, showing credits and debits to file Funds and ~e pu~ose for which each debit to ~e Funds was made. The Funds are pledged as additional security for all sums secured by ~is Security I~tmment.. If the Fund8 held by Lender exceed &e amounts pernfitted to be held by applicable law, Lender shall account to Borrower for fl~e excess Funds in accordance wi~ &e requirements of applicable law. If ~e amomlt of ~ Funds held by Lender at any time i8 not sufficient to pay ~e Escrow Items wll~n due, Lender may so hotly Borrower in writing, and, in such case Borrower shall pay to Lender file amomlt necessary to l~ke up flie deficiency. Borrower shall nmke up ~e deficiency in no more &an twelve monthly payments, at Lender's sole discretion. Upon payment in ~11 of all sums secured by tiffs Security Instrument, Lender shall pron~Ptly re,nd to Borrower any F~nds held by Lender. If, under paragraph 21, Lender shall acquire or sell ~e Property, Lender, .prior to file acquisition or sale of Property, shall apply ally Funds held by Lender at file time of acquisition or sale as a credit against file su~ secured by Security Instrument. 3. Appli~fion of Payment. Unless applicable law provides ofllerwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under file Note; second, to amounts payable under paragraph 2; ~rd, to interest due; 'fourfll, to principal due; and last, to any late charges due under ~e Note. 4. ~ges; Liem. Borrower shall pay all taxes, assessments, charges, fines and impositio~ attributable to ~e Property which ~y attain priority over fl~is Security It~t~lllellt, and leasehold payments or ground rents, if any. Borrower shall pay ~ese obligations in fl~e nmlmer provided in paragraph 2, or if not paid in fl~at nmm~er, BorroWer shall pay ~em on time directly to ~e person owed payment. Borrower shall promptly ~rlfiSll to Lender all notices of amounts to be paid under ~is paragraph. If Borrower ~kes fl~ese payments directly, Borrower shall promptly ~rldsh to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over fllis Security Instrument mdess Borrower: (a) agrees i~! writing to the payment Of ~e obligation secured by file lien in a llmml~r acceptable to Lender; (b) contests in good fai~ ~e lien by, or defends against enforcenlent of file lien in, legal proceedings which in &e Lender's opinion operate to prevent enforcement of the lien; or (c) secures from fl~e holder of file lien an agreemen~ satisfactory to Lender subordi~mting ~e lien to Security I~lstl~ment. If Lender deternfines fliat any part of ~e Property is subject to a lien which ~y attain priority over Security Instmlnent, Lender may give Borrower a notice identifying file lien. Borrower shall satisfy ~e lien or take one or more of ~e actions set forfl~ above wi~fin I0 days of file giving of notice. 5. H~d or Pro~y I~. Borrower shall keep file improvements now existing or hereafler erected on ~e Property insured against loss by fire, hazards included wi~n file term "extended coverage" and any other ha~rds, including floods or flooding, for which Lender requires insurance. This ilmurance shall be maintained in file amounts and for ~e periods ~at Lender requires. Tile insurance carrier providing file il~urance shall be chosen by Borrower subject to Lender's approval which shall not be um'easonably wiflfl~eld. If Borrower fails t0 maintain coverage described above, Lender ~y, at Lender's option, obtain coverage to protect Lender's rights in ~e Property in accordance wia paragraph 7. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. ~nder shall have fl~d right to hold fl~e policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid- prelniuu~ and renewal notices. In the event of loss, Borrower shall give prompt notice to ~e insurance carrier and Lender. Lender may make proof of loss if not nmde promptly by Borrower. Unless Lender and Borrower o~erwise agree in writing, or applicable Mw ofl~erwise requires, insurance proceeds shall be applied first to ~eimburse Lender for costs and expenses incurred in co~ection wifl~ ob~ilfing any such ii~urance proceeds, and · en, at Lender's option, in such order and proportion as Lender nmy deter~ne in its sole and absolute discretion, and regardless of any impairment of security or lack fllereof: (i) to fl~e sun~ secured by ~is Security Inst~nlent, whe~er or not ~en due, and to such components fl~ereof as Lender inay deternfine in its sole and absolute discretion; and/or (ii) to Borrower to pay fl~e costs and expe~es of necessary repairs or restoration 0f fl~e Property to a condition satisfactory to ~nder. If Borrower abando~ Property, or dOes not al~wer wi~in 30 days a notice from Lender fl~at file i~urance carrier has offered to settle a claim, Lender may collect ~e insurance proceeds. Lender l~y, in its sole and absolute discretion, and regardless of any impairment of security or lack fliereof, use fl~e proceeds to repair or restore ~e Property or to pay ~e sums secured by tiffs Secu~ty I~tmment, whe~er or not glen due. The 30-day period will begin when ~e notice is given. U~fless Lender and Borrower o&erwise agree in Writing, any application of proceeds to principal shall not extend or postpone &e due date of fl~e monflfly payments referred to in paragraphs I and 2 or change ~e amount of ~e payments. If under paragraph 21 fl~e Property is acquired by Lender, Borrower's right to any imurance policies and proceeds resulting from da~ge to ~e Property prior to fl~e acq~sition shall pass to Lender to fl~e extent of file su~ secured by ~is Security Instrument i~lediately prior to &e acquisition. If Borrower obtains earfl~quake il~urance, any °flier ha~rd insurance, or any o&er insurance on ~e. Property and such insurance is not specifically required by Lender, ~en such insurance shall (i) ~me Lender as loss payee fl~ereunder, and (ii) be subject to ~e provisions of ~is paragraph 5. Page 2 of 6 WYD10012 (06-23-98) Loan Number: 32101'7044 Servicing Number: 001271485-3 Date: 02/06/:04 J--~}~L 6. 'O~u~y, Prem~afion, M~intem ~ Pro~fion of ~e Pro~; ~ower's ~ App~mfion; ~hol~. Borrower acknowledges fl~at ~e Lender does not desire to make a loan to Borrower secured by ~is property on fl~e ternm contained in ~e Note mdess fl~e property is to be occupied by Borrower as Borrower's pfimry/secondary residence. Lender rakes nora owner residence loa~u of different terms. Borrower pro~ses and assures Lender ~at Bo~ower intends to occupy ~is property as BorroWer's primry/secoMary residmme aM ~at Bo~ower will so occupy tiffs property as its sole priory/secondary residence wi~in sixty (60) days after ~e date of ~e Security Instrument. If Borrower breaches ~is pro,se to occupy ~e property as Bo~ower's Primry/secondary residence, ~en LeMer n~y invoke any of fl~e following remedies, in addition to fl~e remedies provided in fl~e Security Instrument; (1) Declare all sums secured by ~e Security hutmment due and payable and foreclose ~e Security I~tmment, (2) Decrease fl~e tern of ~e loan and adjust fl~e money payments under ~e Note accordingly, increase ~e interest rate and adjust fl~e monflfly payments under ~e Note accordingly, or (3) require ~at ~e principal balance be reduced to a percentage of eider fl~e ofigiml purchase price or ~e appraised value ~en being offered on non-owner occupied loa~. Borrower shall not destroy, danmge or impair ~e Property, allow ~e Property to deteriorate, or cm~t waste on fl~e Propeay. Bo~ower shall be in default if any forfeiture action or proceeding, whe~er civil or crinfiml, is begun fl~at in Lender's good fai~ judgment could result in forfeiture of ~e Property or ofl~erwise ~mtefially impair fl~e lien created by tiffs Security Instrument or Lender's security interest. Borrower ~y cure such a default and rei~tate, as provided in paragraph 18, by causing fl~e action or proceeding to be dis~ssed wi~ a ruling fl~at, in Lender's good fai~ deternfimtion, precludes fori~iture of the Borrower's interest in ~e Property or ofl~er material impairment of fl~e lien created by ~is Security Instrument or Lender's security interest. BorroWer shall also be in default if Borrower, during ~e loan application process, gave nmtefially false or imccurate infomtion or statements to Lender (or failed to provide Lender wi~ any mterial infornmtion) in comtection wi~ fl~e loan evidenCed by ~e Note, including, but not li~ted to, representations concer~ng Borrower's occupancy of fl~e Property as a principal residence. If ~is Security Instrument is on a leasehold, Borrower shall comply wi~ all fl~e provisio~ of fl~e lease. If Bo~ower acquires fee title to ~e Property, fl~e leasehold and ~e fee title shall not merge uffiess Lender agrees to fl~e merger in writing. Borrower shall, at Bo~ower's own expe~e, appear in and defend any action or proceeding pmporting to affect ~e Property or any portion ~ereof or Bo~ower's title ~ereto, ~e validity or priority of fl~e lien created by tiffs Security Instrument, or fl~e rights or powers of Lender wifl~ respect to tiffs Security I~tmment or tim Property. All causes of action of Bo~ower, whe~er accrued before or after fl~e date of tiffs Security Instrument, for damage or injury to ~e Property or any part ~ereof, or in co~ection wi~ any tra~action fimnced in whole or in part by fl~e proceeds of ~e Note or any o~er note secured by tiffs Security hmtmment, by Lender, or in co~ection wi~ or affecting fl~e Property or auy part ~ereof, including causes of action arising in tort or contract and causes of action for fraud or concealment 0f a mtefial fact, are, at Lender's option, assigned to Lender, and fl~e proceeds' fl~ereof shall be paid directly to Lender who, after deducting ~erefrom all its expenses, iucluding reaso~mble attorneys' fees, my apply such proceeds to ~e sums secured by tiffs Security hmtmment or to any deficiency under tiffs Security Instrument or my release any moffies so received by it or any part ~ereof, as Lender my elect. Lender my, at its option, appear in and prosecute in its own mine any action or proceeding to ~nforce any such cause of action and ~my rake any compronfise or settlement ~ereof. Bo~ower agrees to execute such ~rfl~er assignments and any o~er instruments as from time to time nmy be necessary to effectuate · e foregoing provisio~ and as Lender shall request. 7. Prot~fion of ~er's Ri~m in ~e Pro~. If Bo~ower fails to perform ~e covemnts and agreements contained in tiffs Security Instrument, or fl~ere is a legal proceeding fl~at my sigifificantly affect Lender's rights in ~e Property (such as a proceeding in ba~mptcy, probate, for condenumtion or forfeiture or to enforce laws or regulatioms), ~en Lender ~my do and pay for whatever is necessary to protect fl~e value 0f ~e Property and Lender's rights in ~e Property. Lender's actions ~my include paying any su~ secured bya lien which has priority over ~is Security hmtmment, appearing in court, paying reasomble attorneys' fees and entering on ~e ProPerty t0~mke repairs. Alflmugh Lender nmy take action under tiffs paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under ~is paragraph 7 shall become additioml debt of Borrower secured by ~is Security I~tmment. U~fless Bo~ower and Lender agree to ofl~er te~ of payment, ~ese amounts shall bear interest from tim date of disbursement at ~e Note rate in effect from time to time and shall be payable, wi~ interest, upon notice from Lender to Bo~ower requesting payment. 8. Mo~gage I~m. If Lender required mortgage imurance as a condition of raking ~e loan secured by ~is Security Instrument, Borrower shall Pay ~e prenfiu~ required to maintain fl~e mortgage imurance in effect. If, for any reason, ~e mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay fl~e premiums required to obtain coverage substantially equivalent to ~e mortgage insurance previously in effect, at a cost substantially equivalent to ~e cost to Borrower of fl~e mortgage imurance previously in effect, from an alte~te mortgage insurer approved 'by Lender. If substantially equivalent mortgage i~murance coverage is not available, Borrower shall pay to Lender each monfl~ a sum equal to one-twelf~ of fl~e yearly mortgage imurance prenfium being paid by Bo~ower when ~e i~murance coverage lapsed or ceased to be in effect. Lender will accept, use and retain ~ese payments as a loss reserve in lieu of mortgage imurance. Loss reserve payments ~my no longer be required, at fl~e option of Lender, if mortgage insurance coverage (in fl~e amount and for ~e period ~at Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay fl~e premiunm required to mintain mortgage imurance in effect, or to provide a loss reserve, until ~e requirement for mortgage insurance ends in accordance wi~ any written agreement between Borrower and Lender or applicable law. 9. ~fion. Lender or its agent ~my ~mke reasomble entries upon and inspectio~m of ~e Property. Lender shall give Bo~ower notice at fl~e time of or prior to' an itmpection specifying reasomble cause for ~e inspection. 10. ~Memfion. The proceeds of any award or claim for dmmges, direct or consequential, in connection wifl~ any condemmtion or ofl~er tahng of any part of ~e Property, or for conveyance in lieu of condenmtion, are hereby assigned and shall be paid to Lender. Lender nmy apply, use or release ~e condemtion proceeds in fl~e same ma~er as provided in paragraph 5 hereof wifl~ respect to insurance proceeds. If ~e Property is abandoned by Borrower, or if, after notice by Lender to Borrower fl~at fl~e condemnor offers to make an award or settle a claim for dotages, Borrower Ihils to respond to Lender wi~in 30 days after fl~e date tim notice is given, Lender is au~ori~d to collect and apply fl~e proceeds, at its option, eider to restoration or repair of fl~e Property or to ~e sunm secured by tiffs Security Imtmment, whefl~er or not fl~en due. U~fless Lender and Borrower o~e~ise agree in writing, any application of proceeds to principal shall not extend or pos¢one ~e due date of ~e monfl~ly payments referred to in paragraphs 1 and 2 or change ~e amount of such payments. 11. ~ower Not ~1~; For~ By ~Mer Not a W~ver. Extension of ~e time for payment or modification of amortization of ~e su~ secured by tiffs Security Imtmment granted by Lender to any successor in interest of Borrower shall Page 3 of 6 WYDIO013 (06-23-98) Loan Number: 321017044 Servicing Number: 001271485-3 Date: 02/06/'04 ~G~,~ not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to coannence proceedings against any successor in interest Or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors iii interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any fight or remedy. 12. Succes~rs and A~igns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Securi.ty Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, n~Odify, forbear or make any acconm~odations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum 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 limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce .the charge to the pernfitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the 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 under the Note. 14. Notices. Any notice to Borrower provided for in tiffs Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower .desig~mtes by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. 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'Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of tiffs Security Instrument and the Note are declared to be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or aw interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require inunediate payment in full of all sums secured by tlds Security I~zstrument. However, tiffs option shall not be exercised by Lender if exercise is prolfibited by federal law as of the date of this Security Instrument. 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 delivered or mailed within which Borrower must pay all sums secured by tiffs Security Instrument. If Borrower fails to pay these sums prior to the expiration of tlfis period, Lender nkay invoke any remedies penuitted by this Security Instrument without further notice Or demand on Borrower. 18. Borrower's Right to Reinstate. If Borrower ~neets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law ~nay specify for reinstatemen0 before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses .incurred in enforcing this Security Instrument, including, but not linfited to, reasonable attorneys' fees; and (d) takes such action as Lender ~nay reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall re~nain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note; Cthange .of Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrumen0 nay be sold one or rn°re times without prior notice to Borrower. A sale may result in a change in the entity (known as the "Loan Servicer") that collects monthly payments due under the Note and this Security Instrument. There also may 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 in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be nmde. The notice will also contain any other information required by applicable law. The holder of the Note and this Security Instrument shall be deemed to be the Lender heremlder. 20. Hazardous Substances. BorJ:ower shall not. cause or permit the presence, use, disposal, storage, or release of any Hazardous Substatlces on or in the Property. Borrower shall not do, nor allow anyone else to do, anyflfing affecting the Property that is in violation of any Enviromnental Law.' 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. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any govermuental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any govenm~ental or regulatory authority, that any removal or oilier remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmeutal Law. Borrower shall be solely responsible for, shall inde~mfify, defend and hold harmless Lender, its directors, officers, employees, attorneys, agents, and their respective successors and assigns, from a~~d against any and all claims, demands, causes of action, loss, damage, cost (including actual attorneys' fees and court costs aud costs of any required or necessary repair, cleanup or detoxification of tile Property and the preparation and implementation of any closure, abatement, contai~m~ent, remedial or other required plan), expenses and liability directly or indirectly arising out of or attributable to (a) the use, generation, storage, release, threatened release, discharge, disposal, abatement or presence of Hazardous Substances on, under or about the Property, (b) the transport to or frum the Property of any Hazardous Substances, (c) the violation of any Hazardous Substances law, and (d) any Hazardous Substances claims, Page 4 of 6 WYD10014 (06-23-98) LoanNmnber: 323~0~t-.7100~4-,,'~,:.~?, Servicing Number: 001271485-3 Date: 02/06/04 1~2~ As Used in ~is paragraph 20, "Hazardous ~bsta~mes" are ~ose substances defined as toxic or ha~rdous Substances by Enviromental Law and fl~e following substances: gasoline, kerosene, o~er fla~ble or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, ~mtefials conmi~ng asbestos or fornmldehyde, and radioactive nmterials. As used in tiffs paragraph 20, "Envirm~ental Law" ~nea~ federal laws and laws of ~e jurisdiction where ~e Property is located ~at relate to health, safety or enviromental protection. ADDITIONAL COVENANTS. Borrower aM LeMer brier cove~nt and agree as Bllows: 21. A~lemfion; ~es. Iffy ~tallmem~er ~e No~ or ~s ~ hereby ~ ~t ~d when due, or if~o~er ~o~d ~ ~ defa~t under ~y pro,sion of ~S ~ ~mm, or if ~ower is ~ default ~der ~y o~er moagage or o~er ~m ~ by ~e Pro~, ~ ~ ~ur~ by ~is ~ ~m ~ a~m~ i~rest ~er~n ~hall at o~ ~ due and ~yable at &e option of ~er M~out prior nofi~, ex,pt ~ o&e~ ~ by appfimble hw, ~ reg~ess of ~y prior forum. In ~ch eve~, ~er, at im option, '~ ~bj<t m appfi~ble hw, my &eh or ~er~r for<lo~ ~s ~ Imm~mem eider by adveffi~nt ~ ~e of flxe ~o~ ~ profid~ by smmm (~e ~wer of ~e provid~ for by smmm ~ hereby e~ressly g~ m ~Mer by ~rrowe0 or by ~ action ~ ~M~, ~ my Nvoke ~y o~er re~es or ~e ~y o&er acfiom ~a~ by app~ble hw. ~er w~ ~H<t ~ ex~s ~ N pu~ ~e ~es de<fi~ N ~s Prograph 21, ~luding, but ~t ~ m, r~mble a~ys' f~s ~ ~s~ of rifle evide~. If ~er Nvokes &e ~wer of ~e,'~er ~hall give nofi~ of ~m m for~lom m ~gower ~ to &e ~mn N ~smssion of ~e Pro~, if ~fferem, in a~rdan~ wi& appfi~ble law. ~er ~1 give nofi~ of im Nmm to for<lo~ to ~ower by ceMfi~ mil, remm r~ipt,. ~ ~e ~nner prodd~ N ~gmph 14. ~Mer ~1 pubfi~ ~e nofi~ of ~e, a~ · e ~o~ ~1 ~ told N ~e ~mnner premfi~ by appfi~ble ~w. ~der or i~ desig~ my pm~ file Pro~ at ~y ~e. ~e proc~s of &e ~e shall ~ appfi~ N ~e foHo~g order: (a) m ~ ex~s of ~e ~e, i~lu~, but ~t ~fi~ to, r~mble a~ys' f~s; ~) m ~1 m ~ by fids ~ufi~ ~m~mem; ~ (c) ~y ex,ss m ~e ~n or ~m legMly e~fl~ m it. 22. ~1~. Upon payment of all su~ secured by ~is Security hmtmment, Lender shall release tiffs property wiflmut waganty to file person or perso~ legally entitled to it. ~ch person or persons shall pay any recordation costs. Lender nmy charge such person or persons a fee for releasing fl~e Property for services rendered if fl~e charging of ~e fee is per~tted under applicable law. 23. W~ve~. Borrower hereby-releases and waives all rights in file Property under and viture of file homestead exemption laws of ~e State of Wyonfing and hereby relinquishes all rights of curtesy and dower in ~e Property. 24. ~sr~re~mfion ~ N'o~losure. Borrower has nmde certain written representatio~ and disclosures in order to induce Lender to nuke flxe loan evidenced by &e Note or notes which tiffs Security Iustmment secures, aud in ~e event fl~at Bogower has rode any nmterial nfisrepresentation or failed to disclose any mtefial fact, Lender, at its option and wi~out prior notice or demnd, shall have &e right to declare fl~e indebtedness secured by &is Security hmtmment, i~espective of ~e nmturity date specified in &e Note or notes secured by Otis Security Instrument, inunediately due and payable. 25. T~ is of ~e ~. Time is of fl~e essence in fl~e perfonmnce of each provision of tiffs Security Instnnnem. 26. W~ver of Smmm of L~fiom. The pleading of fl~e statute of linfitations as a defense to enforcemeut of this Security Instrument, or any and all obligations refe;xed to herein or secured hereby, is hereby waived to ~e Mllest extent pernfitted by applicable law.. 27. Modffimfion. This Security Instrument nmy be modified or amended oNy by an agreement in writing signed by Borrower and Lender. 28. ~u~m. To &e.extent per~tted by applicable law, Borrower shall reimburse Trustee and Lender for any and all costs, fees and expenses which either my incur, expend or sustain in file execution of file trust created hereunder or in &e perfonmnce of any act required or pemfitted hereunder or by law or in equity or otherwise arising out of or in connection wi~ ~s Security Instrument, ~e Note, any oilier note secured by ~is Security Instrument or any ofl~er instrument executed by Bogower in connection wi& fl~e Note or Security Instrument. To ~e extent per~tted by applicable law, Borrower shall pay to Trustee and Lender fl~eir fees in co~mection wifl~ Trustee and Lender including, but not linfited to assmnption application fees; fees for payoff demnds and, statements of loan balance; fees for ~mking, tra~nfitting and transporting copies of loan docmnents, verifications, MIl or partial lien releases and ofl~er documents requested by bonower or necessary for perforxmnce of Lender's rights or duties under tiffs Security Instmmem; fees arising from a returned or dishonored check; fees to deternfine whefl~er rte Property is occupied, protected, mintained or i~ured or related pu~oses; appraisal fees, inspection fees, legal fees, broker fees, i~urance mid-term substitutions, repair expenses, foreclosure fees and costs arising from foreclosure of &e Property and protection of ~e security for ~is Security hmtmment; and all o~er fees and costs of a si~lar ;mmre not oflxerwise prohibited by law. 29. Oefi~ ~or. In ~e event Lender at any time discovers fliat fl~e Note, any o&er note secured by ~is Security hmtmment, ~e Security Instrument, or any o~er document or i~tmment executed in comxection wiflt ~e Security I~tmment, Note or notes contains an e~or ~at was caused by a clerical ~Nstake, calculation error, computer umlMnction, printing error or si~lar e~or, Borrower agrees, upon notice from Lender, to reexecute any documents ~at are necessary to correct any such egor(s). Borrower Mr&er agrees ~at Lender will not be liable to Borrower for any damges incurred by Bo~ower fl~at are directly or indirectly caused by any such error. 30. ~st Stolen, Desffoy~ or Mu~a~ ~ufi~ ~mm and O~er Doc~m. In flxe event of ~e loss, ~eft or destruction of &e Note, any o&er note secured by &is Security hmtmment, &e Security Instrument or any o~er documents or instruments executed in co:mection wifl~ &e Security Instrument, Note or notes (collectively, fl~e "Loan DocUments"), upon Bogower's receipt of an inden~cation executed in hvor of Bo~ower by Lender, or, in ~e event of &e mutilation of any of ~e Loan Documents, upon Lender's surrender to Bogower of ~e mutilated ~an Doculnent, Borrower shall execute and deliver to Lender a Loan Docmnent in form and content identical to, and to serve as a replacement of, fl~e lost, stolen, destroyed, or mutilated Loan Document, and such replacement shall have flxe same force and effect as ~e lost, stolen, destroyed, or mutilated Loan Documents, and my be treated for all pu~oses as fl~e ofigiml copy of such Loan Document. 31. Assignmem of ~n~. As additio;ml security hereunder, Borrower hereby assig~m to Lender &e rents of fl~e Property. Borrower shall have fl~e right to collect and retain fl~e rents of fl~e Property as ~ey become due and payable provided Lender has not exercised its rights to require inunediate payment in ~11 of the sums secured by ~is Security i~tmment and Bo~ower has not abandoned ~e Property. 32.' ~dem m ~s ~ ~mm. If one or more riders are executed by Bonower and recorded toge~er wi& tiffs Security I~tmmem, ~e covemnts and agreements of each such rider shall be inco~orated into and shall amend and supplement Page 5 of 6 WYB 10015 (06-23-98) Loan Number: 32100L~...~,~c~~ Servicing Number: 001271485-3 Date: 02/06'/041~- the covenants and agreements of this Security Instrument as if file rider(s) were a part of tiffs Security Instrument. [Check applicable box(es)] [] Adjustable Rate Rider [] No Prepayment Penalty Option Rider [] Other(s) (specify) [] Condominium Rider [] Plam~ed Unit Development Rider [] 1-4 Family Rider [] Occupancy Rider BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in tiffs Security Instrument and in any rider(s) executed by Borrower and recorded with it. Witnesses: (Seal) -Borrower (Seal) -Borrower -Borrower LII,IJ~ GJXRCI/k ,/ -Borrower .(Seal) (Seal) -Borrower -Borrower STATE OF WYOMING, Lincoln The foregoing instrument was acknowledged before me this 6th day of February, 2004 (date) by Hector Garcia and Lilia Garcia (person acknowledging) My Commission Expires: February 2, 2006 Notary S,~B.t. EY SA,NDN. L - NOTN~Y PU~UC Page 6 of 6 WYD10016 (06-23-98) LEGAL DESCRIPTION A part of Lot 3 of Block 11 of the Afton Townsite, Lincoln County, Wyoming being more particularly described as follows: BEGINNING at a point 5.5 rods north of the Southwest corner of said Lot 3 and running thence North 5 rods; thence East 7.5 rods; thence South 5 rods; thence West 7.5 rods to the POINT OF BEGINNING. Loan Number: 321017044 Servicing Number: 001271485-3 Date: 02/06/04 ADJUSTABLE RATE RIDER (LIBOR Index - Rate Caps) THIS ADJUSTABLE RATE RIDER is nmde February 06, 2004 , and is iucorporated 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 Option One Mortgage Corporation, a California Corporation (the "Lender") of the same date and covering the property described in the Security h~strument and located at: 277 MADISON ST, AFTON, WY 83110-1534 [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: The Note provides for an initial interest rate of 7. 050% Note provides for changes in the interest rate and the monthly payments, as follows: · The 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of March 01 2006 , and on that day every sixth month 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 six-month U.S. dollar-denonfinated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding FOUR AND 50/].00 percentage point(s) ( 4. 500% ) to the Current Index. The Note Holder will then round the result of this addition to the next higher one-eighth of one percentage point (0.125 %). Subject to the linfits stated in Section 4(D) below, this rounded amount will MULTISTATE ADJUSTABLE RATE RIDER-LII~R INDEX - Single Family Page 1 of 3 USRI0021 (02-23-99) 08 T24 , : .Loan Number: 321017044 Servicing Nmnber: 001271485-3 Date: 02/06/04 be xny 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 mondfly payment. (D) l.imits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 10.050 % or less than 7.050 % · . Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one percentage point (1.0%) from the rate of interest I have been paying for the preceding six months. In no event will my interest rate be greater than 13.0 5 0 % or less than 7.0 5 0 % . (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. (la.) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the anmunt of my monthly payment before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Covenant 17 of the Security Instrument is amended to read as follows: Tnmsfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender nmy, at its option, require innnediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. 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 ff a new loan were being made to the transferee; and (b) Lender reasonably deterrnines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenam or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender nmy charge a reasonable fee as a condition to Lender's consent to the loan assumption. 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 agree~nems made in the Note and in this Security Instrmnent. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate 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 delivered or mailed 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 xnay invoke any remedies perufitted by this Security Instrument without further notice or demand on Borrower. MULTISTATE ADJUSTABLE aA'rE RIDER-I2[BOR INDEX~ingle Family Page 2 of 3 USRI0022 (02-23-99) _~.2te ¢ ~.~ ~.~,.,~ Loan Number: 321017044 Servicing Number: 001271485-3 Date: 02/06/04 AdjustablBeY~tleG~.i. IdNer.GI BELOW, ff'E'CTO}~ ~ Bon'ower accepts and agrees to the terms and covemnts contained in this [Seal) .(Seal) .(Seal) .(Seal) (Seal) .(Seal) MULTISTATE ADIUSTABLE RATE RIDER-LIBOR INDEX-Single Family Page 3 of 3 USRI0023 (02-23-99)