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HomeMy WebLinkAbout898097Return To: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 898097 Prepared By: WELLS FARGO HOME MORTGAGE, INC. REOEIVED LINOOL~! COI~,~.!TY CLERK Of-.,. F...'.,R 29 F';-t I: 39 1919 DOUGLAS,, OMAHA, 681010000 [SI)ace Above Tiffs Line For Recordh)g Data] MORTGAGE DEFINITIONS Words used in multiple sections of tiffs document are defined below and off]er words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this docmnent are also provided in Section 16, (A) "Security Instrument" means this document, which is datedMARCH 24, together with all Riders to this document. 01) '.'Borrower" is RUSSELL E HOBBS, A SINGLE PERSON 2004 Borrower is the mortgagor under this Security Instrument. (C) "Lender" is WELLS FARGO HOME MORTGAGE, INC. Lender is a CORPORATION 0rga~fized and existing under the laws of THE STATE OF CALIFORNIA 0040048571 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6(WY) Iooo~} VMP MORTGAGE FORMS - {800}521.7291 Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assmned Borrower's obfigations under the Note and/or this Security Instrmnent. TRANSFER OF RIGHTS IN THE PROPERTY This Security h~stmment secures to Lender: (i) file repayment of rite Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, file following described property located in the COUNTY Of LINCOLN : [Type of Recording lurisdiction] [Name of Recording Jurisdiction] LOT 7 OF TWIN SPRUCE SUBDIVISION, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. EXCEPTING THEREFROM THE LAND CONTAINED IN. WARRANTY DEED RECORDED MAY 6, 1981 IN BOOK 175PR ON PAGE 716 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. *SEE ADJUSTABLE RATE RIDER TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, INC., P.O. BOX 10304, DES MOINES, IA 503060304 ParcellD Number: 12-3218-18-3-01-018· 1161 NORTH WASHINGTON AFTON ("Property Address"): which currently has the address of [Street] [City] , Wyoming 8 3110 [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 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 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 cove~mnts for ~mtional use aud non-uniform covenants with liufited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds tbr Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrmnent shall be nmde in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this (~)~-6(WY) (ooos! Page 3 of 15 Form 3051 1/01 Lender's address is P.O. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and datedY~RCH 24, 2 004 The Note states that Borrower owes Lender SEV~..NTY FOUR THOUSAND ,3did 00/300 Dollars (U.S. $ * * * * * 7 4,000.00 ) plus interest. Borrower has promised to pay tiffs debt in regular Periodic Payments and to pay the debt in full not later than APRIn 01, 2034 (E) "Property" means the property flint is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under tiffs Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: .. [-~' Adjustable Rate Rider ~--] Condominium Rider ~-] Second H0~ne Rider ~ Balloon. Rider ~-~ Planned Unit Development Rider ~-~ 1-4 Family Rider [~ VA Rider ~ ~-] Biweekly Payment Rider ~-~ Other(s) [specifyl (1t) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues,' fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or sinfilar orgardzation. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction Originated by check, draft, or sinfilar paper instrument, which is initiated through an electronic ternfinal, 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 initiated by telephone, wire transfers, and autonmted clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of dmnages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Pay~nent" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its i~nplementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation fl~at governs the same subject nmtter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions flint are imposed in regard to a "federally related ~nortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(WY) Iopos} Page 2 o~ ~ Form 3051 1/01 ..... Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be umde in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or caslfier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instn,nentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as nmy be designated by Lender in accordance with the notice provisions in Section 15. Lender nmy return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, wiflmut waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan curt'cut. If Borrower does not do so wiflfin a reasolmble period of time, Lender shall either apply such funds or return titan to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note inunediately prior to foreclosure. No offset or claim which Borrower nfight have now or in the future against Lender shall relieve Borrower from ~naking payments due under fl~e Note and fllis Security Instrument or perfornfing file covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in tiffs Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security h~strulnent, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstauding, Lender nmy apply any payment received /'rom Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that auy excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges aud fl~en as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone fl~e due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on fl~e day Periodic Payments are due under the Note, until the Note is paid in full, a sum (fl~e "Funds") to provide for payment of atuouuts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payxnents or ground rents on the Property, if any; (c) prenfiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, 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 origimtion or at any time during the term of the Loan, Lender may require fl~at Conmmnity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be'an Escrow Item. Borrower shall prompdy'funfish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender file Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Itexns. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts 41~)~-6(WY) Iooos) Pag~ 4 o1' 15 Form 3051 1/01 due for any Escrow Items for wlfich paymem of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment wiflfin such time period as Lender nmy require. Borrower's obligation to make such paylnents 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 a~nount due for an Escrow Item, Lender ]nay exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Fuuds, and in such amounts, that are then required under tiffs Section 3. Lender nmy, at any time, collect and hold Funds in an amount (a) sufficieut to pernfit Lender lo apply the Funds at the time specified under RESPA, and (b) not to exceed the nmximum amount a lender can require under RESPA. Lender shall estitnate the amouut of Funds due on the basis of current data and reasonable estinmtes of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity 0ncluding LeudeL 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. Leuder shall not charge Borrower for holdiug and applying file Funds, annually analyzing the escrow account, or verifying the Escrow Items, mfless Lender pays Borrower interest on the Funds and Applicable Law perufits Lender to make such a charge. U~dess an agree~nent is made in writiug or Applicable Law requires interest to be paid on file Funds, Lender shall not be required to pay Borrower any interest or earnings on the Fund~. Borrower and Lender can agree in writiug, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an mmual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Fuuds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no ~nore 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 make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by tiffs Security Instrument, Lender shall promptly refuud to Bon'ower>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 Instrmnent, leasehold payments or ground rents on the Property, if any, and Conmnnfity Association Dues, Fees; and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a mmmer acceptable to Lender, but only so long as BorroWer is performing such agreement; (b) contests the lien in good faith by, or defends against e~fforcement of the lien in, legal proceedings which in Lender's opi~fion operate to prevent the enforcement of the lien wlfile those proceedings are pending, but tuffy until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender deternfines that any part of the Property is subject to a lien wlfich can attain priority over tiffs Security Instrument, Lender may give Borrower a notice identifying the (~)~-6(WY) Iooo~) Pag~ ~ of ~ Form 3051 1/01 0S:980SV x, ~' lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in com~ection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earfl~quakes and floods, for which Lender requires insurance. This insurance shall be ]naintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised um'easonably. Lender may require Borrower to pay, in co~mection with this Loan, either: (a) a one-titne charge tbr flood zone deternfination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or sinfilar changes occur which reasonably might affect such deterufination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of file 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 the contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage fl~an was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might sig~fificantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender m~der this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon ~mtice frmn Lender to Borrower requesting payment. All insurance policie~ required by Lender and renewals of such policies shall be subject to Lender's. right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause aud shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. U~fless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is ecmmmically 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 opportmfity 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 cmnpleted. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or eanfings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or xmt then due, with (~-6(WY) Ioooe} P~ge ~ o~ ~s Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order Provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond withiu 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 uupaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the fight to any refund of unearthed prenfiums paid by Borrower) under all insurance policies covering flie Property, insofar as such rights are applicable to the coverage of the Property. Lender ,nay 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 fl~en due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall conti,me to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably wifltheld, or unless extenuating circmnstances 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 connnit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall nmintain the ProPerty in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or danmge. If insurance or condenmation proceeds are paid in core, cc,ion with damage to, or the taking of, the 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 conde~m~ation proceeds are not sufficient to repair or restore the Property, BorroWer is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, ,nisleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concenfing 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 sig~fificantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condenmation or forfeiture, tbr enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not linfited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (~-6(WY) {ooo~) Page 7 ol~ 16 Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and wiudows, drain Water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender.may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Leuder incurs no liability for not taking any or all actions authorized under tiffs Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amouuts 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 wifl~ all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, fl~e Mortgage Insurauce coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments fl~at 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 nltiznately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again 'becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to nmke 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 termination or until ternfination is required by Applicable Law. Nothing iu this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the. Mortgage Insurance. Mortgage insurers evaluate fl~eir total risk on all such insurance in force from time to time, and may enter into agreelnents wifl~ other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage iusurer and ~he other party (or parties) to these agreements. These agremnents may require the tnortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of fl~e premimns paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will' not affect the amonnts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (~)~-6(WY) 1ooo6) Page 8 o~ 15 Form 3051 1/01 (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 termina'ted automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the ti[ne 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 econ°mically 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 bas been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or eanfings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaueous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Bon'ower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property i~muediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument innnediately before file partial taking, destruction, or loss in value, unless Bon'ower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by file amount of the Miscellaneous Proceeds multiplied by the following traction: (a) the total amount of the sums secured i~mnediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property inunediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property inunediately betbre the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security ~Instrument whether or no't 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 danmges, Borrower fails to respond to Lender within 30 days after the date the notice is giveu, 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 criminal, is begun 'that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleratiou 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 file impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. Initials: .~E ./~ 1~-6{WY) (ooo5) Pegs e of ~6 Form 3051 1/01 SGO 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the stuns secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrowei or any Successors in Interest of Borrower. Lender shall no~ be required to co~nmence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or ofl~erwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments fi'om third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigus Bound. Bm-rower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-sigus 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, tbrbear or make any acco~rmmdations 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 tiffs Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security. Iustrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Cbarges. Lender may charge Borrower tees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees.' In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender nmy not charge fees that are expressly prohibited by this Security Instrumeut or by Applicable Law. If the Loan is subject to a law which sets maxinmm loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in com~ection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted linfit; and (b) any sums already collected from Borrower wlfich exceeded permitted linfits will be refunded to Borrower. Lender may choose to make this refund by reducing rite principal owed under the Note or by xnaking a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund nmde by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in com~ection with this Security Instrument shall be deemed to have been given to Borrower when nmiled by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure tbr reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class nmil to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in com~ection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrulnent is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under tiffs Security Instrument. (~-6{WY) looosl Paa. lo o~ 16 Form 3051 1/01 16. Governing Law; Severability; Rnles of Construction. This Security Instrument shall be governed by federal law and the law of the .jurisdiction in which the Property is located. All rights and obligations contained in fl]is Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security htstrument or the Note conflicts with Applicable Law, such cmfflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the fe~ni~fine gender; (b) words in the singular shall mean aid include the plural and vice versa; and (c) the word "nmy" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred in a bond tbr deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender nkay require i~mnediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower nmst 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 perufitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reiustate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of fi]is Security Instrument discoutinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law nfight specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment en~brcing 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 e~fforcing this Security Instru~nent, including, but not limited to, reasonable attorneys' fees, property inspection and valuatiou fees, aud other fees incurred for rite purpose of protecting Lender's interest in the Property and rights under this Security h~strument; and (d) takes such action as Lender ~nay reasonably require to assure that Lender's interest iu the Property and rights under this Security Instrument, and Borrower's obligatiou to pay the sums secured by this Security Instrument, shall continue unchanged. Lender nnay require that Borrower pay such reiustatement stuns and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided anY such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electrmfic Funds Transfer. Upon reinstatement by Borrower, this Security htstrument 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 !8. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrumen0 can be sold one or more 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 Instrumei~t and pertbrnks other nmrtgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also n]ight be one or more changes of the Loan Servicer mtrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other intbrmation RESPA (~-6{Wy) {00051 Page 11 of 16 Form 3051 1/01 reqnires in connection with a notice of transfer of servicing. If the Note is sold and fllereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser mdess otherwise provided by the Note purchaser. Neither Borrower nor Lender may conm~ence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from file other party's actions pursuant to tiffs Security Instrun~ent or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and aflbrded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and Opportmfity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic Or hazardous substances, pollutants, or wastes by Environmental Law and d~e following substances: gasoline, kerosene, other fla~mnable or toxic petrolemn products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental'Law" means federal laws and laws of the jurisdiction where the Property is located fllat relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Enviromnental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or pemfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any En¥iromnental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects file value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on file Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nornml residential uses and to mainteuance of the Property (including, but not linfited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, dmnand, lawsuit or other action by any govenunental or regulatory agency or private party involving the Property and any Hazardous Substance or Envirmunental Law of which Bon;ower has actual knowledge, (b) any Environmental Coudition, including but not liufited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, aud (c) any condition caused by file presence, use or release of a Hazardous Substance which adversely affects file value of the Property. If Borrower learns, or is notified by any govermnental or regulatory authority, or any private party, that any removal or other relnediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Envirmmiental Law. Nodfing herein shall create any obligation on Lender lbr an Enviromnental Cleanup. (~-6(WY} 1ooo~1 Page ~2or ~s Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender fiirther covenant and agree las 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 nnless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to care the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security lnstrmnent and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non'existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sunts secured by this Security Instrument without further demaud 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, iucluding, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borro~ver and to the person in possession of the Property, if different, in accordance with Applicable Laxv. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee ~nay purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, iucluding, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; aud (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release tiffs Security Instrument. Borrower shall pay any recordation COSTS. Lender amy charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~)~-6(WY) (ooosl Page ~30~ ~s · Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and cove]rants contained in fllis Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: __~~5~ (Seal) RUSSELL E HOBBS -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~)~;6{WY) tooo[I Page ~4 of is Form 3051 1/01 STATE OF WYOMING, LINCOLN The foregoing instrument was acknowledged before me this by RUSSELL E HOBBS County ss: My Connuission Expires: 6 -,~q 0 -.o% 0 07 (~6G(WY) 1ooo61 Page15of 1{5 Initials: Form 3051 1/01 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Imlex - Rate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is made this 24 TH day of ~,RCH, 2004 , and is incorporated into and shall be deemed to ameud and supplement the Mmigage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to WELLS FARGO HOME MORTGAGE, INC. ("Lender") of the same date and covering the property described in the Security Instrument and located at: 1161 NORTH WASHINGTON, AFTON, WY 83110 [Property Address} THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY, ADDITIONAL COVENANTS. In addition' to the covmmnts and agreements nmde in the Security Instrument, Borrower and Lender further Covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 4.625 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay Will change to an adjustable interest rate on the first day of APRIL, 2011 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." 0040048571 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Single Family - Fannie Mae Uniform Instrument VMP MORTGAGE FORMS - (800)621-7291 (B) The Index Begimfing with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND THREE-QUARTERS percentage points ( 2.7 5 0 %) 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 Ii;nits stated in Section 4(D) below, tiffs 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 interest rate I am required to pay at the first Change Date will not be greater than 9.6 2 5 % or less than 2.7 5 0 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 inonths. My interest rate will uever be greater than 9.6 2 S %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of ~ny new monthly payment beginning on the first monthly payment date after the Change Date until tile amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate befure the effective date of any change. The notice will include the amount of my monflfly payment, any inforumtion required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1: Until Borrower's initial fixed interest rate changes to an adjustable interest rate under file terms stated in Section A above, Uniform Cove~mnt 18 of the Security Instrumem shall read as follows: (~843R (0006) Page 2 of 4 nitials:/~/'/ Form 3182 1101 Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred in a boud for deed, contract fur deed, installment sales contract or escrow agreement, the intent of wlfich is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all stuns secured by. this Security Instrument. However this option shall not be exercised by Lender if such exercise xs 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 nmst pay all stuns secured by tkis 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 w~thout further notice or demand on Borrower. 2. When Borrower's i~fitial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section B1 above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of the Security [nstrunmtt shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of wlfich is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest iu Borrower is sold or transferred) without Lender's prior written consent, Lender may require inm~ediate payment in full of all sums secured by fids Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumptiou and that the risk of a breach of any covenant or agreement in fids Security Instrulnent is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also nmy 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 nmde in the Note and in fids Security Instrument. 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. given in accordance with Section 15 within which Borrower nmst pay all Initials: (~<~843R (0006) Page 3 of 4 Form 3182 1/01 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 pernfitted by this Security Instrument without further notice or denmnd on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. ~~~. ~5 ~ (Seal) RUSSELL E HOBBS -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~843R (0006) Page 4 of 4 Form 3182 1/01