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HomeMy WebLinkAbout897811Return To: FIRST FRANKLIN FINANCIAL CORPORATION 2150 North First St. San Jose, CA 95131 Loan number: 0033307018/5,51~ 9 7 8 Prepared By: LORRAIN MCSPARRON RECEIVED LlltCOL?~ OOt.!t'4TY CLERK [Space Abave Tiffs Line For Recording Data] MORTGAGE d DEFINITIONS Words used in ~nultiple sections of tiffs document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means tiffs document, which is dated together with all Riders to this docmnent. (B) "Borrower" is March 9, 2004 DAVID J JONES CINDY JONES Borrower is the mortgagor under this Security Instrument. (C) "Lender" is First Franklin Financial Corp., subsidiary of National Lender is a Corporation organized and existing under the laws of Delaware City Bank of India~na WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6{WY) Ioo0sl VMP MORTGAGE FORMS - 18001521-7291 Document # L074W-Y Form 3051 1/O1 Lender's address is 2150 North First St. , ~ ': __ San Jose, CA 95131 Lender is the mortgagee under fids Security Instrument. (I)) "Note" means file pronfissory note signed by Borrower and dated March 9, 2004 The Note states that Borrower owes Lender EIGHTY ONE THOUSAND & 00/100 Dollars (U.S. $ 81,0 0 0.0 0 ) plus interest. Borrower has pronfised to pay this debt in regular Periodic Payments and to pay the debt in full not later than April First, 2034 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evideuced by file Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~ Condonfinium Rider [-~ Second Home Rider [] Balloon Rider [-~ Planned Ulfit Development Rider ~-~ 1-4 Family Rider [] VA Rider [~] Biweekly Payment Rider ~ Other(s) [specifyl Prepayment Rider 0t) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have file effect of law) as well as all applicable fi~ml, non-appealable judicial opinions. (I) "Commuuity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condonfinium association, ho,neowners association or similar orgmfization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper iustrument, wh[ch is initiated through an electronic 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 includes, but is not limited to, point-of-sale transfers, autonmted teller machine transactions, transfers i~fitiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means fl]ese items that are described in Section 3. (L) "Miscellaneous Proceeds" lneans any compensation, settlement, award of dmnages, or proceeds paid by any third party (other than insurance proceeds paid under file coverages described in Section 5) for: (i) dmnage to, or destruction of, the Property; (ii) condenumtion or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) ]nisrepresentations of, or omissions as to, the value and/or condition of the Property. (1%I) "Mortgage Insurance" means insurance protecting Lender agalnst the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means fl~e regularly scheduled aluount due for (i) principal and interest under the Note, plus (ii) any amounts under Secti6n 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they nfight be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that.are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~'6(WY) Iooos} Page 2 of 15 Form 3051 1/01 Document ~ L075WY (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not flint party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repay~nent 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 Instrmnent and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in rite county of Lincoln : [Type of Recording Jurisdiction] [Name~of Recording Jurisdiction] Legal Description attaChed hereto and made a part hereof Adjustable Rate Rider attached hereto and made a part hereof Prepayment Rider attached hereto and made a part hereof ParcellD Nun~er: 32180620200900 182 MAIN STREET GROVER ("Property Address"): which currently has the address of [Street] [City] , Wyoming 83122 [Zip Code] TOGETHER WITH 'all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrmnent. 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 encmnbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with li~nited variations by jurisdiction to constitute a mfiform security instrulnent 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, rite debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and fids Security Instrument shall be nmde in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this (~;}d6(WY) Iooos) Page3o! 16 Form 3051 1/01 Document # L076WY Security Instrument is returned to Lender unpaid, Lender nmy require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided auy such check is drawn upon au institution whose deposits are insured by a federal agency, iustrumentality, or entity; or (d) Electro~fic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender nmy return any payment or partial payment if tim payment or partial payments are insufficient to bring the Loan current. Lender nmy 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 nmy hold such unapplied funds until Borrower makes payment to bring the Loan current. If Bbrrower 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 im~nediately prior to foreclosure. No offset or claixn which Borrower nfight have now or in the future against Lender shall relieve Borrower frown making payments due under the Note and this SeCUrity Instrument or perfornfing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payinent in the order in which it became due. Any re~naining 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 frown Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment ~nay be applied to the delinquent payment and the late charge. If more titan one Periodic Paynrent is outstanding, Lender nmy apply any paymeut received from Borrower to the repayment of the Periodic Payments if, and to the extent that,, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess ~nay be applied to any late charges due. Voluntary prepay~nents shall be applied first to any prepayment charges and then as described in the Note. Any application of payinents, iusurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under rite Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attaiu priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance prenfiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at auy time during the teton of the Loan, Lender nmy require that Conmm~fity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Ite~ns unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver nmy o~tly be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, rite amounts (~)~-6(WY) Iooo5} Pae. 4 of 15 , D CL% Initials: - Form 3051 1/01 Document # LO77WY 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 paymeut within such ti~ne period as Lender may require. Borrower's obligation to make such pay~nents 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 Ite~n, Lender nmy exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender auy such amom~t. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice giveu 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 maxi~nmn amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data aud reasonable estimates of expenditures of future Escrow Itmns 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 escrow account, or verifying the Escrow Items,. unless Lender pays Borrower interest on the Funds and Applicable Law pernfits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Fuuds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree iu writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined uuder RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held iu 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 than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to nmke 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 pro~nptly refund to Borrower any FundS held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Iustrument, leasehold payments or ground rents on the Property, if any, and Conununity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Itenzs, Borrower shall pay them in the nmnner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligatiou secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement.of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to. tiffs Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender nmy give Borrower a notice identifying the (~-6(WY} 100051 P~g, 5 o~ ~5 ' Form 3051 1/01 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 xnay require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in com~ection with this Loan. 5~ Property Insurance. Borrower shall keep the improve~nents ~mw existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance Shall be nmintained in the mnounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of file Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, wlfich right shall not be exercised unreasonably. Lender nmy require Borrower to pay, in com~ection with this Loan, either: (a) a one-tilne 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 which reasonably nfight affect such deternfination or certification. Borrower shall also be responsible for the pay~nent of any fees imposed by the Federal Emergency Management Agency in co~mection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to nmintain any of the coverages described above, Lender nmy 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 nfight not protect Borrower, Borrower's equity in the Property, or file contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained nfight sigaificantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall beco~ne additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from fl~e date of disburse~nent and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All i~xqurance 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 prenfiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for danmge to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender nmy make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree -in writing, any insurance proceeds, whether or not the underlying insurance, was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of prOgress payments as the work is completed. Unless an agreement is nmde in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall ~mt 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 insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not econonfically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with (~-6(WY) Iooos! Pao. 6 o~ ~ Form 3051 1/01 Document # L079WY the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender nmy file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has 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 Inst~nment, and (b) any other of Borrower's rights (other than the right to any refund of unearned prendums paid by Borrower) under all insurance policies covering file Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or 'not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as BorrOwer's principal residence within 60 days after d~e execution of dfis Security Instrunrent and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, uniess Lender otherwise agrees in writing, which consent shall not be unreasonably 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 commit waste on file Property. Whether or not Borrower is residing in the Property, Borrower shall maintain file Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is detemfined pursuant to Section 5 that repair or restoration is not econondcally feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or dan]age. If insurance or condennmtion proceeds are paid in connection with damage to, or the taking of, file Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condelmmtion proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for tl~e completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender nhay inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the dine 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 ~naterially false, misleading, or i~]accurate information or statements to Lender (or failed to provide Lender with nkaterial information) 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 Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that nfight significandy affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in ba~kruptcy, probate, for conde]m]ation or forfeiture, for enforcement of a lien which n]ay 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 file value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not li~nited to: (a) paying any sums secured by a lien which has priority over riffs Security Instrument; (b) appearing in court; and (c) paying reasonable I~J~}~-6(W,Y) {ooos) Page 7 ~,~ 15 Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or rigMs 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 nmy take action uuder this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for ~mt taking any or all actions authorized under this Section 9. Any axnounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrulneut. 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 file lease. If'Borrower acquires fee title to the Property, file leasehold and file fee title shall ]lot merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of inaking the Loan, Borrower shall pay the prenfiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be 'available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward file premiums for Mortgage Insurance, Borrower shall pay the prenfiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously ill effect, at a cost substantially equivaleut to file cost to Borrower of the Mortgage Insurance previously in effect, from all alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender die 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 ear]tings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in file 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 fl~e 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 Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such ternfination or until ternfination is required by Applicable Law. Nothing ill fllis Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay file Loan as agreed. Borrower is not a party to file Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with otl~er parties that share or modify their risk, or reduce losses. These agreements are on terms and couditions 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 nmy have available (which nmy include funds obtained frown Mortgage Insurance prmniums). As a result of these, agree~nents, Lender, any purchaser of file Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or nfight be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying file mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of file insurer's risk in exchange for a share of the prenfiums paid to the insurer, file 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 Insnrance, and they will not entitle Borrower to any refund. (~i~-6(WY) Iooo5) Pag~ 8 of ~s ' Form 3051 1/01 Document # L081WY (b) Any such agreements will not affect'the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had:an.opportmfity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided fl~at such inspection shall be undertaken promptly. Lender nmy 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 nmde in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay BorrOwer any interest or earnings on such Miscellaneous Proceeds. If 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 fids Security Instrument, · whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the stuns 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 Instrmnent inunediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by fids Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the stuns secured i~mnediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property innnediate!y before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair nzarket value of the Property innnediately 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, mdess Borrower a~d Lender otherwise agree in writing, the Miscellaneous 'Proceeds shall be applied to the stuns 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 Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or crinfinal, is beguu that, in Lender's judgment, could result in forfeiture of the Property or other material i~npainnent 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 iu the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. (~-6(WY) (ooos} Page 9 ot ~ s Form 3051 1/01 osa 12. Borrower Not Released; 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 arty Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to connnence proceedings against any Successor in Interest of Borrower or to refuse to extend ti~ne for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any denmnd nmde by the origi~ml Borrower or any Successors in Iuterest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or iu 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 Assigus Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security 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 in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrmnent; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or nmke any acconunodations 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 Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this.Security Iustrument. Borrower shall not be released from Borrower's obligatious and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender nmy charge Borrower fees for services performed in cmmection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrulnent, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to auy ofl~er fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be coustrued as a prohibition on the charging of such fee. Lender nmy not charge fees that are expressly prohibited by fids Security Instrument or by Applicable Law. If the Loan is subject to a law which sets umxinmm loan charges, and flint law is fi~mlly interpreted so that the interest or other loan charges collected or to be collected in cmmection with the Loan exceed the permitted linfits, then: (a) any such loan charge shall be reduced by the amount necessary to 'reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender umy choose to nmke this refund by reducing the principal 'owed under the Note or by nmking a direct payment to Borrower. If a refund reduces priucipal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower.will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in co~mection with this Security Instrument must be in writing. Any notice to Borrower in coxmection with this Security Instrument shall be deemed to have been given to Borrower when nmiled by first class ]nail 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 mfless 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 Olfly one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by ntailing it by first class nmil to Lender's address stated herein mfless Lender has designated another address by notice to Borrower. Any notice in cmmection 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 htstrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. ~-6(WY) 1ooo5} pag~ lO of 15 Form 3051 1/01 Document # L083WY r'-i?" 054 16J Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which die Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prolfibition against agreement by contractJ In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such co,~flict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in tiffs Security Instrnment: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the femi~fine gender; (b) words in the singular shall mean and include the plural and vice versa; arid (c) the word "may" gives sole discretion without any obligation to take any actionz 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 irt the Property" means any legal or beneficial interest in die Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the inteut 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 ~mtural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require iuunediate 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 expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to die earliest of: (a) five days before sale of the Property pursuant to auy power of sale contained in this Security InstrUment; (b) such other period as Applicable Law nfight specify for the ternfination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are dlat 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 liufited 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 Instrume,~t, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or ~nore of the following forn{s, 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 iusured by a federal agency, instrumentality or entity; or (d)' Electrortic Fui{ds Transfer. Upou reinstate,nent by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale nfight result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be orle or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loa,1 Servicer, the address to which payments should be made and any other information RESPA (~-6(WY) (ooo5) Page 11 9f 15 ~-' Form 3051 1/01 ': ':': i -" ??:ii! : :' Document # LO 8 4WY requires in connection wifl~ a notice of transfer of servicings if ~l~e Note is sold and O~ereafter fl~e Loan is s~rvi~ed by a Loan S~rvi~r oO~r titan fl~ purchaser of fl~ No~, fl~ mortgage lo~n s~rvicing obligatio~ ~o Borrower will remain wifl~ fl~e Loan Servicer or be transferred to a successor Loan Servicer and am not assumed by tim No~e purchaser unless ofl~rwise provided by fl~ Note pumhaser. Nei~er Bo~ower nor Lender nmy conm~ence, join, or be joined to any judicial action (as eider an individual litigant or tim member of a class) flint arises from fl~e oflmr party's actions pursuant to tiffs Security Instrument ov fl~at alleges flint fl~e off, er party has breached any provision of, or any duty owed by reason of, ~is Security Iust~inent, until such Borrower or Lender has notified fl~e o~er party (wi~ such notice given in compliance wi~ fl~e requirmnents of Section 15) of such alleged breach and afforded tim off,er party hereto a reasomble period after fl~e giving of such notice to take corrective action. If Applicable Law provides a ti~ne period which nmst elapse before certain action can be taken, flint tilne period will be deemed to be reasonable for pu~oses of tiffs paragraph. The notice of acceleration and opportmfity to cure given to Borrower pursuant to Section 22 and tim notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy fl~e notice and opportmfity to take co~ective action provisions of ~is Section 20. 21. H~ardoUs Substance. As used in tiffs Section 21: (a) "Ha~rdous Substances" are ~ose substances defined as toxic or hazardous substances, pollutants, or wastes by Enviro~eutal Law and fl~e following substances: gasoline,, kerosene, off,er flammble or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, ~mterials contaitfing asbestos or fon~Idehyde, and radioactive mterials; (b) "Enviromnental Law" means federal laws and laws of ~e jurisdiction where fl~e Property is located flint relate to heal~, safety or enviromental 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 ~at can cause, contribute to, or ofl~erwise trigger an Enviromeutal Clea~mp. Borrower shall not cause or pernfit the Presence, use, disposal, storage, or release of any Hazardous Substances, or fl~reaten to release any Hazardous Substances, on or in ~e Property, Borrower shall not do, nor allow anyone else to do, anyflfing affecting fl~e Property (a) ~at is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to ~e presence, use, or release of a Hazardous Substance, creates a conditiou flint adversely affects fl~e value of fl~e Property. The preceding two sentences shall not apply to ~e presence, use, or storage on fl~e Property of snmll quantities of Hazardous Substances flint are generally recognized to be appropriate to nor~ml residential uses and to nmintmmnce of fl~e Property (including, but not linfited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice 0f (a) any investigation clai~n, deumnd, lawsuit or off, er action by any govermnental or regulatory agency or private party involving ~e Property and any Hazardous Substance or Enviromuental Law of which Borrower has actual knowledge, (b) any Enviromneutal Condition, including but not liufited to, any spilling, leaking, discharge, release or ~reat of release of any Hazardous Substance, and (c) any condition caused by fl~e presence,' use or release of a Hazardous Substance which adversely affects tim value of ~e Property. If Borrower learns, or is notified by any gover~m~tal or regulatory aufl~ority, or any private party, ~at any removal or off, er remediation of any Hazardous Substance affecting fl~e Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance wifl~ Enviromnental Law. Noflfing herein shall create any obligation on Lender for.an Enviromnental Cleanup. (~-6(WY) (0005) Page 12of 15 ' 6~ Form 3051 1/01 Document # L085WY · . _ 05g NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give nOtice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default 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. Tile notice shall further inform Borrower of the right to reinstate after acceleration and tile right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes tile power of sale, Lender shall give notice of intent to foreclose to Borrower and to tile 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 tile notice of sale, and the Property shall be sold in tile manner prescribed' by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of tile sale shall be applied in the following order: (a) to all 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 fids Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender xnay charge Borrower a fee for releasiug fids Security Instrument, but olfly if the lee is paid to a third party for services rendered and the charging of the fee is pemfitted under Applicable Law. 24. Waivers. Borrower releases and ~;aives all rights under and by virtue of the homestead exemption laws of Wyoming. (~)~-6(WY) looo51 Page ~3 or ~5 ~ Form 3051 1/01 Document BY SIGNING BELOW, Borrower accepts and agrees to the terms and cove~mnts contained in tiffs Security Instmlnent and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) -Borrower N/A (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower No~ -Borrower Signing solely for the purpose of waiving any and all Homestead Rights Non (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (~6(WY) {ooos) P~ge ~,~ ot ~5 Form 3051 1!01 Document # L087WY STATE OF WYOMING, The foregoing instrument was acknowledged before me tiffs by DAVID J JONES, CINDY JONES ,' (~-6(WY) (ooo5) Page 16 of lS Form 3051 1/01 Document # LO88WY=::m.:~:::::' 059 ADJUSTABLE RATE RIDER (LIBOR Index - Rate Caps) THIS ADJUSTABLE RATE RIDER is nude this 9 t:h day of March 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgagel 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 Franklin Financial Corp.~ subsidiary of National City Bank of Indiana (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 182 MAIN STREET, GROVER, Wyoming 83122 [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 ~nade in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTItLY PAYMENT CHANGES The Note provides for an i~fitial interest rate of 9.125 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay nmy change on the first day of April , 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 Beginning 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-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the MULTISTATE ADJUSTABLE RATE RIDER - LIBOR INDEX - Single Family Page I of 3 -62680013 (9710) ELECTRONIC LASER FORMS, INC. - (800)327-0545 DocUment # L390X first business day of the month i~mnediately 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 i~fformation. The Note Holder will g~ve me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Seven and Three-Eighths percentage point(s) ( 7.37'5 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125 %). Subject to the limits stated iu 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 on Interest Rate Changes The iuterest rate I ant required to pay at the first Change Date will not be greater than 12. 125 % or less than 9. 125 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more thau one percentage point (1.0 %) from the rate of interest I have been paying for the preceding six months; subject to the following limits: My interest rate will never be greater than 15. 125 %, nor less than 9. 125 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment begimfing on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in iny interest rate and the amount of my monflfly 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. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER U~fiform Covetmnt 17 of the Security Instrument is amended to read as follows: Transfer 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 ~mtural person) without Lender's prior written coxksent, 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 fids 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 if a new loan were being nmde to the ~.~M6268008 (9710) Page 2 of 3 Document $ L391X transferee; and (b) Lender reasomably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent 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 pronfises and agreements made in the Note and in this Security Instrmnent. Borrower will continue to be obligated under the Note and fids 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 fids Security Instrument. If Borrower fails to pay fl~ese sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or de~nand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable ~te Rider. (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower ~.. ~ -Borrower ( I -~t"/'x'x_~ ~ (Seal) ~ND~ ~ONI~- ' Non -Borrower Signing solely for the purpose of waivin.q any and all Homestead (Seal) Right s -Borrower ~.~6268008 (9710) Page 3 of 3 Non (Seal) -Borrower (Seal) -Borrower Document ~ L392X PREPAYMENT RIDER Tiffs Prepayment Rider is made this 9th day of March q , 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or the Security Deed (the "Security Instrument") of the same date given by the undersigned ( the "Borrower" ) to secure Borrower's Note ( the "Note" ) to First Franklin Financial Corp., subsidiary of National City Bank of Indiana ("the Lender") of the same date and covering the property described in the Security Instrument and located at: 182 MAIN STREET, GROVER, Wyoming 83122 ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security instrument, Borrower and Lender further covenant and agree as follows: Borrower can nmke a partial prepayment at anytime wifl~out paying any charge. Borrower nmy make a full prepayinent at any time subject to a prepayment charge as follows: If within the first 2 year(s) ,after the date Borrower executes the Note, Borrower makes a full prepayment (including prepayments occurring as a result of the acceleration of the nmturity of the Note), Borrower nmst, as a condition precedent to a fall prepayment, pay a prepayment charge on any amount prepaid in any 12 month period in excess of 20% of the unpaid balance. The prepayment charge will equal the interest that would accrue during a six-month period on the Excess Principal calculated at the rate of interest in effect under the terms of the Note at the time of the full prepayment. NOTICE TO BORROWER Do not sign this loan agreement before you read it. This loan agreement provides for the payment of a penalty if you wish to repay the loan prior to the date provided for repayment in the loan agreement. By signing below, Borrower accepts and agrees to the terms and covenams contained in this Prepayment Rider. DAVID J Jf[NE~' ...................................................................................................... (Seal) .............................................................................................. (Seal) CINDY ~ES Signing solely for the purpose of waiving any and all Homestead Rights ...................................................................................................... (Seal) (Seal) Adjustable Rate Prepayment Rider - First Lien- AK, AL, AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IA, KS, LA, I MA, MD, MS, MT, NE, NV, NH, NJ, NM, NY, ND, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WY Dam,mant ~ L0028 Part O~ ~ot ~ of Bloc~ 2 to ~e Town of Grove~, L~ncoln County, Wyoming being more particularly described as follows: BEGINNING at the Northeast corner of said Lot 3, thence Wes5 277 feet, more or less, to the West boundary of said Lot 3; thence Southerly, 156.5 feet along said Lot 3; thence East 108 feet, more or less; thence South 100 feet; thence East 172.5 feet, more or less, to the East boundary line of said Lot 3; thence North 256.5 feet, along said East boundary line to the POINT OF BEGINNING. EXCEPTING THERFROM any land contained in Quitclaim Deed recorded August 15, 1977 in Book 138PR on page 423 of the records of the Lincoln County Clerk. EXCEPTING THERFROM any land contained in Quitclaim Deed recorded November 21, 1977 in Book 141PR on page 465 of the records of the Lincoln County Clerk.