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HomeMy WebLinkAbout898317WHEN RECORDED, MAILTO: MEGASTAR'FINANCIAL CORP. 4601 DTC BLVD SUITE 700 DENVER, COLORADO .80237 This Instrument was prepared by: MEGASTAR FINANCIAL CORP. 4601 DTC BLVD SUITE 700 DENVER, COLORADO 80237 Loan Number: 29107168 Order Number: 02/13/2004 898317 RECEIVED LINCOLN COUNTY CLERK APR -6 P!'! 3' 52 dE,ANNE WAGNER (Space Above This Line For Recording Data) MORTGAGE DEFINITIONS Words used in multiple sections of this 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 this document, which is dated April 1, 2004, together with all Riders to this document. (B) "Borrower'! is Gaynell M Munds and Christopher H.P. Munds . Bon'ower is the mo~1gagor under this Secm'ity Instrument. (C) "Lender" is MEGASTAR FINANCIAL CORP.. Lender is A COLORADO CORPORATION, organized and ~xisting under the laws of COLORADO. Lender's address is 4601 DTC BLVD SUITE 700, DENVER, COLORADO 80237. Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated April 1, 2004. The Note 'states that Bon'ower owes Lender ONE HUNDRED FORTY-SEVEN THOUSAND and no/100 Dollars (U. S. $147,000.00) plus interest. Borrower has promised to pay this debt in regular Periodic Payments attd to pay the debt in full not later than April 1, 2034. (E) "Property" means the propexly that is described below under the heading "Transfer of Rights in the Property." (F) "Lo an" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrmnent, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Bon'ower. The following Riders are to be executed by Bon'ower (check box as applicable): [] Adjustable Rate Rider [] Condonfiniunr Rider [] Second Home Rider [] Balloon Rider [] Planned Unit Development Rider [] VA Rider [] 1-4 Family Rider [] Biweekly Paymem Rider [] Other (Specify) - (I4) "Applicable Law" means all conic'oiling al~licable federal, state and local statutes, regulations, ordinances and administrative roles 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 Bon'ower or the Property by a condominimn association, homeowners association or sitvdlar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic 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, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (IQ "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid Under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in heu of condemnation; or (iv) misrepresentations o[ or omissions as to, the value and/or condition of the Property. (1V0 "Mortgage Insurance" means insurance protecting Lender againsl the nonpayment of, or default on, the Lomb. (hr) "Periodic Payment" means the regUlarly scheduled amount due for (i) principal and interest under the Note, plus (ii) any mnounts under Section 3 of this Security Insn'ument.. WYOMING - Single Family - Fannie Mae~Freddie Mac UNIFORM INSTRUMENT Page 1 of 8 IDS, Inc. - (800) 554-1872 Form 3051 1/01 Borrower(s) Initials ~,~..,--'~ (O) "I~ESPA" means the Rea~ Estate Selllemem Procedures Act (12 U.S.C. § 2601 s! xsq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refe~ 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. (P) "Successor in Interest of Borrower" ~neans any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrmnent secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Secm'ity Instrument and the Note. For this pta-pose, Bon-ower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the County of Lincoln: . Lot 7 of the Lost Creek Ranchettes Subdivision as shown by the Official Plat thereof filed April 5, 1972 as Filing No. 437793 in the Office of the Clerk of Lincoln County, Wyoming Parcel Identification Number: 34180810100 which cun-ently has the address of: 632 Alford Way County Road 179 Thayne, Vg'YOMING 83127 ("Property Address"): . TOGETHER WITH all the imProvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Bon'ower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower wan'ants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines' unifom~ covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform secm'ity instrmnent covering real property. UNIFORM COVENANTS. Bon'ower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. B on-ower 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 for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrmnent shall be made in U.S. ctm'ency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may requke that any or all subsequent paymeuts due under the Note and this Security Instrument be made in one or more of the following fo~ms, as selected by Lender: (a) cash; (b) money order; (c) ce~lified check, bank check, treasurer's check or cashier's check, provided any such check is &awn upon an institution whose deposits are insured by a federal agency, instrmnentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender whenreceived at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may retom any payment or partial payment if the payment or partial payments are insufficient to bring the Loan cun-ent. Lender may accept any payment or partial payment insufficient to bring the Loan cra-rent, without waiver of any fights 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 fi,nds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fi~nds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Bon'ower might have now or in the future against Lender shall relieve Borrower from ~naking payments due trader the Note and this Security Instrument or performing the covenants and agreements sectu'ed 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 trader 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 becmne due. Any remaining mnounts shall be applied first to late charges, second to any other amounts due under this Security Instrmnent, and then to reduce the principal balance of the Note. If Lender receives a payment fi'om Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received,from Borrower to the repayment of the Periodic Payments if, ahd 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 fidl payment of one or more Periodic Payments, such excess may be applied to any late Charges due. Vohmtary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 2 of 8 IDS, Inc. - (800) 554-1872 Borrower(s) Initials~ priority over this Security Instrument as a lien or encmnbrance on the Propmxy; (b) leasehold payments or ground rents on the Property, if any; (c) premimns for any and all insurance required by Lender under Section 5; and (d) Mo~lgage Insurance premiums, if any, or any stuns payable by Borrower to Lender in lieu of the payment of Moltgage Insurance premimns in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time duriog the term of the Loan, Lender may require that Co]mnunity Association Dues, Fees, and Assessments, if any, be escrowed by Bon'ower, and such dues, fees and assessments shall be tin 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 Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Itmns. Lender may waive Bon'ower's obligation to pay to Lender Ftmds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Bo]xower shall pay directly, when and where payable, the mnounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall funfish to Lender receipts evidencing such payment within such time period as Lender may require. Bon-ower's obligation to make such payments and to provide receipts shall for all proposes 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 Bon'ower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such am0um and Bon'ower shall then be obligated under Section 9 to repay to Lender any such amount. Lender ]nay revoke the waiver as to any or all Escrow ltmns at any time by a notice given in accordance with Section 15 and, upon such revocation, Bon'ower shall pay to Lender all Funds, and in such amounts, that are then requh'ed tinder 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]man amoum a lender can require under RESPA. Lender shall esthnate the amount of Funds due on the basis ofcmTent data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in mi institution whose deposits are insured by a federal agency, instrumentality, or entity (inchtding 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 thne specified under RESPA. Lender slndl not charge Bon'ower for holding and applying the Funds, annually analyzing the escrow accoum, or verifying the Escrow Items, unless Lender pays Bon'ower imerest on the Funds and Applicable Law pennits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Bon'ower any interest or eanfings on the Funds. Bon'ower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Bon'ower, without charge, m~ annual accounting of the Funds as required by RESPA. If there is a sm'plus of Ftmds held in escrow, as defined under RESPA, Lender shall account to Bon'ower for the excess fi]nds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Bon'ower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the sbo~lage 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 Bon'ower 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 snms secured by this Security Instrument, Lender shall promptly refund to Bon'ower any Funds held by Lender. 4. Charges; Liens. Bon'ower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. BmTower shall promptly discharge any lien which has priority over this Security Instrmnent unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Bon'ower is perforating 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 !he enforcemem of the lien wlfile those proceedings are pending, but only until such proceedings are concluded; or (c) secures fi'om the holder of the lien an affreement satisfactory to Lender subordinating the lien to this Security Instrumem. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Secta'ity Instrmnent, Lender ]nay give Bon'ower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Bon'ower to pay a one-time charge for a real estate tax verification and/or repmting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pm-suant to the preceding sentences can change during the term of the Loan. The insurance can-ier providing the insurance shall be chosen by Bon'ower subject to Lender's right to disapprove Bon'ower's choice, which right shall not be exercised unreasonably. Lender may require Bon'ower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge lbr flood zone detemfination and certification services and subsequem charges each time remapping, s or similar changes occur which reasonably might affect such determination or certification. Bon'ower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone dete~rnination resulting fi'om an objection by Bon'ower. IfBon-ower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Bon'ower's expense. Lender is under no obligation to pta:chase any particular type or amount of coverage. Therefore, such coverage shall covet' Lender, but might or might not protect Bon'ower, Borrower's equity in lhe Property, or the contents o fthe Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Bon'ower acknowledges that the cost of the WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 3 of 8 IDS. Inc. - (800) 554-1872 Form Borrower(s) Initials~__ insurance coverage so obtained might significantly exceed the cost of'insurance that Bon'ower could have obtained. Any amounts disbursed by Lender under this Section $ shall become additional debt of Bon'ower secured by this Security Instrument. These amounts shall bear interest at the Note rate fi'om the date of disbursement and shall be payable, with such interest, upon notice fi'mn Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mm~gagee 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 damage to, or destruction of, the Property, such policy shall include a standard mmlgage 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 can~er and Lender. Lender lrmy make proof of loss if not made promptly by .Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,.wheflmr or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the 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 made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Bmxower 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 Bon'ower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Inslrument, whether or not then due, withthe excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Bon'ower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. H Borrower does not respond within 30 days to a notice from Lender that the insurance can~er 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, o1' if Lender acquires the Property under Section 22 or othe~vise, Borrower hereby assigns to Lender (a) Bon'ower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Bmxower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies coveriug the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair o1' restore the Property or to pay amounts unpaid under the Note or this Security Instrmnent, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and Shall continue 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 mn'easouably withheld, or unless extenuating circmnstances exist which are beyond Bon'ower'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 the Property. Whether or not Bon'ower is residing in the Propel~y, Borrower shall maintain the Property in order to prevent the Property from deteriorating o1' decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring tl~e Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment o1' in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufticient to repair or restore the Property, Bon'ower is not relieved o~ 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 Bon'ower notice at t!~e time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Bon'ower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Bon-ower's knowledge or consent gave materially false, misleading, 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 concerning Borrower's occupancy o£the Prope~y as Bmzower'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 might significantly affect Lender's interest in the Prope~y and/or rights under this Security Instrument (such as a proceeding in ban~'uptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Bon'ower 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 Ihe value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien whichhas priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a banla'uptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain Water fi'om pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or oft: Although Lender may take action under this VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 4 of 8 IDS, Inc. - (800) 554-1872 · Form 3051 1101 Borrower(s) ~nitials ~ _ Section 9, Lender does not have to do so and is not m~der any duty or obligation to do so. It is agreed that Lender incors no liability for not taking any or all actions authorized trader this Section 9. Any amom~ts disbm'sed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate fi'om the date of disbursement and shall be payable, with such interest, upon notice fi'om Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Bon'ower shall comply with all the provisions of tlie lease. Borrower shall not sun'ender the leasehold estate m~d interests herein conveyed or terminate or cancel the gn'ound lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires t~e 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 Mm~gage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage reqoired by £ender ceases to be available fi'om the mortgage insurer that previously provided such insta'ance and Bon'ower 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 previoosly in effect, at a cost substmltially equivalent to the cost to Bon:ower of the Mortgage Insurance previously in effect, fi'om an alternate mortgage insm'er selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in fidl, and Lender shall not berequired 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 sepm'ately designated payments toward the premiums for Mortgage Insurauce. If Lender required Mm-tgage Insurance as a condition of making the Loan and B on'ower was required to make separately designated payments toward the premiums tbr 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 tennination or until tennination is required by Applicable Law. Nothing in tiffs Section 10 affects Bon-oWer'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 ifB orroWer does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in lbrce fi'om time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agn'eements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using mxy source of funds that the mortgage insurer may have available (which may include funds obtained fi-om 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) mnounts that derive fi'om (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 agreeinent provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the atxangement is often termed "captive reinsm'ance." Further:. la) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements Will not increase the amount Borrower will owe for Mortgage Insurance, and they will nat entitle Borrower to any refund. lb) Any such agreements will not affect the rights Borrower bas - if any - with respect to the Mortgage Insnrance under the Homeowners Protection Act of 1998 or auy 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 ter~ninated automatically, aud/or to receive a refund of any Mortgage Insurance premiums that were unearned :it the time of such cancellation or termination. 1'1. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaueous Proceeds are hereby assigned to and shall be paid to Lender. If ibc Propel~y is damaged, such Miscellaneous Proceeds shall be applied to restoratiou or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, prov'ided 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 agn'eement is made h~ writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Leuder shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not econo~nically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be aPplied to the sums secured by this Security Instrument, whether or not then due, With the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event ora total taking, destruction, or loss in valoe of the Property, the Miscellaneoos 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 Propel~y 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 Instrmnem immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the mnount of the Miscellaneous Proceeds multiplied by the following fi'action: la) the total amount of the sums seem'ed immediately before the partial taking, destruction, or loss iii value divided by lb) the fair market vahYe of the Property immediately before the pmlial taking, destruction, or loss in value. Any balance shall be paid to Bon:ower. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 5 of 8 IDS. Inc - (800) 554-1872 Form 3051 1101 Borrower(s) Initials ~ ~ In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property tm_mediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured inunediately before the partial taking, destruction, or loss in value, unless Bon'ower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secored by this Security Instrument whether or not the sums are then due. If the Property is abandoned by B on'ower, or if, after notice by Lender to B on'ower that the Opposing Pm-ty (as defined in the next sentence) offers to make an award to settle a claim for damages, Bon'ower fifils io 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 Bon'ower 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 adtion or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impailxnent of Lender's interest in the Property or rights under this Security Insu'ument. Borrower can cure such a default and, if acceleration has occmTed, 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 Properly or other material impai]rnent of Lender's interest in the Property or fights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. · All Miscellaneous Proceeds that are not applied to restoration or repair of the Propelly shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a W.'dver. Extension of the time for payment or modification of amortization of the sums secured by this Secm-ity Instrument granted by Lender to Bon'ower or any Successor in Interest of B0n'ower shall not operate to release the liability of Bon'ower or any Successors in Interest of Bmxower. Lender shall not be required to conunence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums seem'ed by this Security Instrument by reason of any demand made by the original Borrower or any Soccessors 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 Bo~zower or in amounts less than the amount then clue, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Secm'ity Instrument but does not execnte the Note (a "co-signer"): (a) is co-signing this Seem-try Instrmnent 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 Stuns secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agn-ee to extend, modify, forbear or make any accmmnodations 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 B0rrower's rights and benefits under this Security Instrument. Borrower shall not be released fi'om Bo]xower's obligations and liability under this Secm'ity 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 may charge Bon'ower fees for services perfonned in connection with Borrower's default, for the puq~ose 6fprotecting 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 h~strument to Charge a specific fee to Bo~xower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets ma,ximum loan charges, and that law is finally intmpreted so that the interest or other loan charges collected orto be collected in connection 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 pemfitted limit; and (b) any sums already collected fi-om Bon'ower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by ]'educing the principal owed under the Note or by making a direct payment to Bon'ower. If a refond reduces principal, the reduction will be treated as a palatal 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 constitote a waiver of any right Of action Bon-ower might have arising out of such overcharge. 15. Notices. All notices given by Bon'ower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower'in connection with this Secm'ity Instrmnent shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Bon'ower 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 Bo]xower's change of address. If Lender specifies a procedure for reporti~ag Borrower's change of address, then Bo~xower sball only report a change of address through that specified procedure. There ]nay be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class ]nail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under tiffs Seem'try Instrument. 16. G overning Law; Severability; Rules of Constru etlon. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 6 of 8 IDS. Inc, - (800) 554-1872 Form 30.51 1101 Borrower(s) might be silent, but such silence shall not be construed as a prohibition against agreement by conh:act. In the even:t that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict sball not affect other provisions of this Secm-ity Instrmnent 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 feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Bon'ower 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 inthe Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transfen'ed in a bond for deed, contract for deed, instalhnent sales contract or escrow agu'eement, the intent of which is the transfer of title by Bon'ower 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 B on'ower is sold or trans fen'ed) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bon-ower notice of acceleration. The notice shall provide a period of not less than 30 days fi'om the date the notice is given in accordance with Section 15 within which Bon'ower mUst pay all sums secured by this Security Instrument. If Bon'ower 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 Bon-ower. 19. BOrrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Bon'ower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pm-suant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Bon'ower's right to reinstate; or (c) entry of a judgment entbrcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Iustrument and the Note as if no acceleration had occmxed; (b) cures any default of any other covenants or agreements; (c) pays all expenses incun'ed in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incmxed roi' the propose 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 Bon'ower's obligation to psyche stuns secured by this Security Instrument, shall continue unchanged. Lender may require that Bon'ower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatemem by Bon'ower, this Security Instrument and obligations secm'ed hereby shall remain fully effective as if no acceleration had occun'ed. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Lo an Servicer; Notice of Grievance. The Note or a partial interest inthe Note (together wifll this Security h~strument) can be sold one or more times without prior notice to Bolzower. A sale might result in a change in lhe entity (known as the "Loan Servicer") that collects Periodic Payments clue under the Note and this Security Instrument and performs other mortgage 10an servicing obligations under the Note, this Secm'ity Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Bon'ower will be given written notice o £lhe clmnge which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Bon'ower will remain with the Loan Servicer or be lransfen'ed to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Nole purchaser. Neither Borrower nor Lender may cormnence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises fi'om the other party's actions pursuant to this Secmity Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach mid afforded the other partyhereto a reasonable period after the giving of such notice to take con'ective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed lo be reasonable tbr purposes of this paragq'aph. The notice of acceleration and opportunity to cure given to Bon'ower pursuant to Section 22 and the notice of acceleration givento Bon'ower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take con'ective 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 lhe tbllowing substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws ofthej urisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Envh'omnental Cleanup" includes any response action, remedial action, 0r removal action, as defined iu Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, conn-ibute to, or otherwise trigger an Enviromnental Cleanup. BmTower shall not cause or. permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Bon'ower shall not do, nor allow anyone else to do, anything affecting tile Property (a) that is in violatiOn of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two Sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 7 of 8 IDS, Inc. - (Sn0) 554-1872 Form 3051 1101 Borrower(s) Ini ti al~.__ ~:)~- ~'~ .... ?03 appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazm-dous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, clain~ demand, lawsuit or other action by any governmental or regulatory agency or private pa~ involving the Propm~y and any Hazardous Substance or ~nvironmental Law of which Boffower has actual ~owledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or flu-eat of release of any Hazardous Substance, mad (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Propm~y. If Bmxower learns, or is not,ed by any govemnaental or regulatoW authority, or any private pa~y, that any removal or other remediation of any Hazardous Substance affecting the Pi'openly is necessm'y, Borrower shall promptly ~e all necessary remedial actions in accordance with Environmentdl Law. Noflfing herein shall create any obligation on Lender for an EnvirOnmental Cleanup. NON-~WO~ COVENANTS. Bon'ower and Lender fuaher 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 Securi~ 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 Securi~ Instrument and sale of the ProperS. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrnment without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if ddferent, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Proper~ at any sale. The proceeds of the sale shall be appliedin the following order: (a) to all expenses of fl~e sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Securi~ Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Inst~ment. Bon'ower shall pay any recordation costs. Lender may charge Bmxower a fee for releasing this Secm'ity Ins~'ument, but only if the fee is paid to a third proxy for services rendered and the charging of the fee is pemfitted under Applicable Law. 24. Waivers. BmTower releases and waives all rights under and by vil~ue of the bomestead exemption laws of Wyoming. BY SIGN~G BELOW, Boffower accepts and agrees to the terms and covenants contained in ~his Security Ins~ment and in anY Rider executed by Borrowet and recorded with it. Witnesses: Christopher H.P. Munds / -Borrower STATE OF WYOMING, Lincoln County ss: The foregoing instrument was acknowledged before me this by Gaynell M Munds, and Christopher H.P. Munds. My commission expu'es: ~'/' ~tEu.~ ~ · NOT,aY pUStlC NoraW Public (date) VVYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 8 of 8 IDS, Inc. - (80Q) 554-1872 Form 3051 1101 Loan Number: 29107168 .. ADJUSTABLE RATE RIDER (1 Year Treasury Index -- Rate Caps) THiS ADJUSTABLE RATE RIDER is made this 1st day of April, 2004, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrmnent") of the same date given by the undersigned (the "Bon'ower") to secure Borrower's Adjustable Rate Note (the "Note") to MEGASTARFINANCIAL CORP. A COLORADO CORPORATION (the "Lender") of the same date and covering the property described in the Secority Instrument and located at: 632 Alford Way County Road 179 - Thayne, XWVOMING 83127 (Prope~Xy Address) THE NOTE CONTAINS pROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY, ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrulllent, BOrrower and Lender fuffi~er covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 3.250%. 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 may change on the 1st day of April, 2007, and on that day evmy 12th month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Beginning with'the hrst Change Date, my 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 which is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND THREE FOURTHS percentage points (2.750%) to the Cun'ent Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amoum 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 thatI 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 5.250% or less than 2.750%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than TWO percentage points (2.000%) fi-om the rote of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 9.250%. MULTISTATE ADJUSTABLE RATE RIDER - ARM 5-2 - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~ F~..r m Page 1 of 2 Borrower(s) Initial IDS. Inc., (800 554-1872 $~// r~'~ ~/~~ Loan Number: 29107168 (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amoum of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I' may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as 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 limited to, those beneficial interests transfen'ed in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrowel' at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transfe~xed ~or ifBon'ower is not a natta'al person and a beneficial interest in Bon'ower is sold or transfen'ed) without Lender's prior written consent, Lender may require immediate payment in full of all sums secla'ed by this Security Instrmnent. 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) Bon'ower causes to be submitted to Lender infbmaation 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 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 may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in tiffs Security Instrument. Bon'ower will continue to be obligated trader the Note and this Security Instrument unless Lender releases B0n'ower 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 fi'om the date the notice is given in accordance with Section 15 within which Bon'ower 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 Secm-ity lnstrumem without further notice or demand on Bon'ower. BY SIGNING BELOW, Bon'ower accepts and agrees to the tenns and covenants contained in this Adjustable Rate (Seal) -Bollower Christopher H.P. Munds -Bon'ower MULTISTATE ADJUSTABLE RATE RIDER -ARM 5-2 - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 2 of 2 Form 3111 1101 IDS, Inc.. (800)554-1872