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HomeMy WebLinkAbout898449Return To: NEW LINE MORTGAGE 4516 SOUTH 700 EAST #200, SALT LAKE CITY, UT 84107 Prepared By: g2vlE E KENT 8 9 8 4 [~ 9 RECEIVED I_.iNC, OLt, I COUNTY OLERK [Space Above This Lh~e For Recortlh~g Data] MORTGAGE MiN NOTICE: THIS LOAN IS NOT WITHOUT THE APPROVAI, OF THE OF VETERANS AFFAIRS OR ITS AGENT. 1001247-0006042173-6 ASSUMABLE DEPARTMENT AUTHORIZED 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 roles regarding the usage of words used in this document are 'also provided in Section 16. (A) "SecnrilyInstrument" meansthis docmnent, which is dated April 6, 2004 together with all Riders to this document. 01) "Borrower"is JOHN F. JACIqvlAN and CELESTE E. JACKMAN, husband and wife Borrower is the mortgagor under this Security Instrmnent. · (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nonfinee for Lender and Lender's successors and assigns. MERS is fl~e mortgagee ,nder this Security Instrument. lvlERS is organized and existing under the laws of Delaware, and has an ' address and telephone number of P.O. Box 2026, Flint, MI 48~01-2026, tel. (888) 679-MERS. 190JAC6042173 . 6042173 WYOMING -Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6B(WY) (0005) _~, Page 1 of 15 MW 05100 Initials: VMP MORTGAGE FORMS - (800)521-~.,1~1 ~ Form 3051 1/01 (D) "Lender"is NEW LINE MORTGAGE Lender is a Div. of Republic Mortgage Home Loans, LLC organized and existing under the laws of The State of Utah Lender's address is 4516 SOUTH 700 EAST #200, SALT LAKE CITY, UT 84107 0g) "Note"means the promissory note signed by Borrower and dated April 6, 2004 The Note states that Borrower owes Lender One Hundred ThirTy Nine Thousand Eight Dollars (U.S. $ 139,809.00 ) plus interest Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in fidl not later than May 1, 2034 0v) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due onder the Note, and all sums due under this Security Instrmnent, plus interest. (1t)" · - R~ders means all Riders to this Security Instrument that are executed by Borrower. Thc following Riders are to be executed by Borrower [check box as applicable]: ~] Adjustable Rate Rider [--] Condominimn Rider ~-] Second Home Rider [[~] Balloon Rider [---] Planned Unit Development Rider [~ 1-4 Family Rider ~ VA Rider [~] Biweekly Pa3qnem Rider [~ Other(s) [specify] (I) "Apldicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances aud administrative roles and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Commnnity 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 similar organization. (IO "Electronic Fnnds Transfer" means any transfer of fi;nds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic tenuinal, telephonic instrument, computer, or nmgnetic tape so as to order, instn~ct, or authorize a financial institution to debit or credit an accouut. Such term includes, but is not linfited to, point-of-sale transfers, automated teller mactune transactions, transfers initiated by telephone wire ~ransfers, and amomated clearinghouse transfers. , (L) "Escrow Items" means those items that are described in Section 3 (IH) "Miscellaneo, s 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 lieu of condenmation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property, (N) "Mm'tgage Insurance" means insurance proiecting Lender against the nonpayment of,' or default on, the Loan. (O) "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 Instmmeut. RESPA means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they nfight be amended from time to time, or auy additional or successor legislation or regulation that govern's the same subject nmtter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related nmrtgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. 190JAC6042173 6042173 0 Initial~~ ~ (~-6B{WY) (ooo5) Pa9~ 2 ot~5 Form 3051 1/01 ,ccessor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender; 0) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the perfom~ance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to /VIERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of [VIERS, with power of sale, the following described property located in the COLINTy of [Type of Recording lurisdictioaI L I ~COLN [Name of Recording Jurisdiclion] LOTS 3, 4, 5 AND 6 OF BLOCK 2 OF THE DAYTON FIRST ADDITION TO THE TOWN OF COKEVILLE, LINCOLN COUNTy, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. Parcel ID Number: 12-2419-05-4-09-059 00 21.5 SPRING STREET ' which currently has the address of CO~-'V-ILLE [Street] ("Property Address"): [cityl , Wyoming 83114 [zip Codel TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereaCter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal tide to the interests granted by Borrower in this Security Instrument, but, it' necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of thbse interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including but not limited to, releasing and canceling this Security Instrument., , 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 encumbrances of record. Borrower. warrants and will defend generally, the title to the Property against all claims and demands, subject to any encumbrances of record.' THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants w/th limited variations by jurisdiction to constitute a uniform security instrument covering real property. 190JAC6042173 6042173 Page 3 of 15 Initials: 0 Form30$1 1/01 UNIFORM COVENANTS. Borrower and Leu der 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 tile Note mid any prepayment charges and late charges due nnder the Note. Borrower shall also pay fimds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if an), check or other instrument received by Lender as payment nnder the Note or this Security Instnunent is returned to Lender nnpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrmnent be made in one or more of the following forn~s, as selected by Lender: (a) cash; (b) money order' (c) certified check bank check, treasurer's check or cashier's checv .... .-- , , _ ~, provided an), such check is drawn upon an institution whose deposits are insured by a I~deral agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any pa)relent or partial paymeut if the payment or panini payments are instffficient to bring the Loan current. Lender may accept any pa)anent or partial payment instffficient to bring the Loan current, without waiver of auy 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 pa)relents 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 current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fimds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the filtnre against Lender shall relieve Borrower from making payments due under the Note and this Security Instrnment or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as othenvise described iii this Section 2, all payments accepted and applied by Lender shall be applied iii die following order of priority: (a) interest due under the Note; (b) principal due uuder the Note; (c) amonnts due under Section 3. Snch paymenls 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 amouuts due tinder this Security lnstnunent, 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 stffficient amount to pay any late charge due, the payment may be applied to tile delinquent payment and the late charge. If more than one Periodic Payment is outstandihg, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full pa)m~ent of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. ' 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 suni (the "Funds") to provide for'payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security lnstrnment as a lien or encumbrance on the Propertyi (b) leasehold payments 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 auy, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at auy time during the terni of the Loan, Lender may require that Conmnmity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furuish to Lender all notices of amounts to be paid under this Section. Borrower shall pa), Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's .obligation to pay to Lender Fnuds for any or all Escrow Items at any time. Any such waiver may only be ~n writing. In the event of such waiver, Borrower shall pay directly, ;Wlen and where payable, the amounts 190JAC6042173 6042173 0 Page 4 of 15 Form 3051 1/01 due for an), Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenam and agreement contained in this Security Instmmeut, 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 pa), the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay Such amount and Borrower shall then be obligated under Section 9 to repay to Leuder any such amount. Lender ma), revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender nmy, at any time, collect and hold Funds in an amonnt (a) stffficient to pernfit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require nnder RESPA. Lender shall estimate the amount 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 (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later thau the ti~ne specified under RESPA. Lender shall not charge Borrower for holding and app154ng the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pernfits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Fnnds, Lender shall not be required to pay Borrower any interest or earnings on ~the Funds. Borrower and Lender can agree in writing, l!owever, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as. defiued under RESPA, Lender shall account to Borrower for the excess funds in ·accordance with RESPA. If there is a shortage of Funds held iu escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to'make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Leuder shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amouut necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly pay~nents. Upon payment in full of all stuns secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the.Property, if any, and Com~nunity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the nmnner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long. as Borrower is performing such agreemeut; (b) contests the lien in good fifith by, or defends against enforcement of the lien in, legal proceediugs which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security htstrument. If Lender deternfines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the 190JAC6042173 6042173 ~ 0 Initials: ~ PageSM15 ' Form 3051 1/01 · ': "?<;:;i: "::,' ;:' ' lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. · Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. 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 insnrance shall be maintained in the amounts (including deductible levels) and 'for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking sen, ices; or (b) a one-time charge for flood zone delernfination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect snch determination or certification. Borrower sitall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone deternfination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but nfight or 'might not protect Borrower, Borrower's equity in the Property, or the contents of the Propen}5 against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any alnounts disbursed by Lender tinder this Section 5 shall become additional debt of Borrower secured by this Security Iustmment. These amounts shall bear iuterest at the Note rate from the date of disbursement and shall be payable, with such interest upon notice front Lender to Borrower requesting payment. ' All iusurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not othem,ise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, BorroWer shall give prompt notice to the iusurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower othenvise agree . in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has bad 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 disbm-se proceeds for the repairs and restoration in a single payment or in a series of progress payme'nts as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid 'on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not ecouonfically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrnment, whether or not then due, wi~h 190JAC6042173 6042173 0 6B{WY) (ooo5) . Page 8 of ~5 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 within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice ~s given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Secutity Instrument, and (b) any other of Borrower's rights (other than the right to any retired of unearned premiums paid by Borrower) under all insurance policies coveting the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after tbe execution of this Security II~stmment 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 ~n writing, which consent shall not be unreasonably withheld, or unless extmmating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property m 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 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 the Property only if Lender has released proceeds for such put-poses. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the Insurance or condemnation proceeds are not stffficient 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 iuspections 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. BmTower's Loan Al)plication. Borrower shall be in defauh if, duting the Loan application process, Borrower or any persons or entities acting at the direcnon of Borrower or xwth Borrower's knowledge or consen! gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Leuder with material information) in co~mection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borroxver fails to perform the ~ovenants and agreements contained in tlfis Security Instnunent, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under tlfis Security Instrument (such as a proceeding in bmtkruptcy, 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) 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 limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appeanng in court; and (c) paying reasonable 190JAC6042173 6042173 0 6B(WY) (o0o5) Page 7 o~ 15 Form 3051 1/01 attorneys' fees to protect its imerest in the Property and/or rights under this Security Instrument, including its secured position in a bamkruptcy proceeding. Securing the Property includes, but is not linfited to, emefing, the Property to make repairs, change locks, replace or board up doors and windows, 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 Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instmnmnt is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not ~nerge unless Lender agrees to the merger in writing. 10. Mortgage Insurauce. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the prenfiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage reqnired 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 substamially 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 coutinue 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 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 prenfiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the prenfiums required to maintain Mortgage. Insurance in effect, or to provide a nou-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 in 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 their total risk on all such insurance in force front time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements nmy reqnire the mortgage insurer to make payments using an), source of funds that the mortgage insurer may have available (which may include fi~nds obtained front Mortgage Insurance prenfimns). 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, nmy receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's pa)m~ents for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk. or reducing losses. If snch agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premimns Paid to the insurer, fl~e arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, ami they will not entitle Borrower to any retired. 190JAC6042173 6042173 0 Init~als:~ (~-6B(WY) (ooos) Page a of ~s Form 3051 1101 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to tile Mortgage Insnrance under the tIomeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to reques! and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refl~nd of any Mortgage Insurance premiums that were nnearned at the time Of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration o? 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, 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 an), interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to tile 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 tile Property, tile Miscellaneons Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In tile event of a partial taking, destruction, or loss in value of the Property in which the fair market ;value of the Property immediately before the partial taking, destn~ction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of tile Miscellaueous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before tile partial taking, destruction, or loss in value divided by Co) the fair market value' of the Property immediately before the partial taking, destniction, or loss in valne. An), balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in xvhich the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than tile · amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not tile sums are then due. If the Property is abaudoned by Borrower, or if, ,'filer notice by Lender to Borrower that .the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the stuns secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Misc611ane0Us 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 Instnm~ent. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairu~ent of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairmeut 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. 190JAc6042173 6042173 0 SB(WY) (o0o$) Page 9 o~ ~S Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for paymem or modification of amortization of the sums secured by this Security hlstmment granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or auy Successors in Interest of Borrower. Lender shall nol be required to comnlence proceedings agaiust auy Successor in Interest of Borrower or to refi~se to extend tinle for payment or othenvise 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 linfitation, Lender's acceptance of pa)quems from third persons, entities or Successors in hlterest of Borrower or in anlounts less than the auiount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liahility; Co-signers; Successors and Assigns Bouml. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) ~s co-signing this Security Instrument only to mortgage, grant and convey the co-si gner's interest in the Property uuder the terms of ·this Security Instrument; Co) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Iustmment or the Note without the co-signer's consent. Subject to the provismns of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations nnder this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instnmlent. Borrower shall not be released from Borrower's obligations and liability under this Security Instnunent 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 Leuder. 14. Loan Charges. Lender may charge Borrower fees for services performed in connectmn with Borrower's default, for the purpose of protecting Lender's interest m the Property and rights under this Security Instrument, including, but not lixnited 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 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 nmxinmm loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the pemfitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pernfitted limit; and (b) any sums already collected from Borrower which exceeded pemfitted limits will be refi~nded to Borrower. Lender may choose to make this refi~nd by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refi~nd 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 ref'und made by direct payment to Borrower will constitute a waiver of an)' 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 nmst be in writing. Any notice to Borrower in connection with this Security Instmnient shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires othenvise. The notice address shall be the Property Address Unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instnunent at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in 'connection with this Security Instmn~ent shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security hIstnnnent is also required under Applicable Law, the Applicable Law requirement will satisfy the correspouding requirement raider this Security Instmn~ent. · 190JAC6042173 6042173 ~A ~. ' 0 Initials: (~-6B{VVY) (oo05) Page lO o~ ~5 Form 3051 1/01 ;q.?,,;,:.;, : >: ;.;':..:. ;;i ':t:';::' ,:.1.. ;:;5. 16. Governing Law; Severability; Rules of Construction. This Secnrity Instrumem shall be governed by federal law and the law of the jurisdiction in which the Property is located All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable La;v. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence sliall not be construed as a prohibition against agreement by contract. In the even! that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of tiffs 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 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. Borrower shall be given one copy of the Note and of this SecnriD/Instrument. 18'. Transfer of the Property or a Beneficial Interest in Borrower. As used in thi's Section 18, "Interest in the Property" means any legal or beneficial interest in the Propert3; including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of xvhich is the transfer of title by Borrower at a fim~re 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 persou and a beneficial interest in Borrower is sold or transferred) withont Lender's prior · written consent, Lender may require innnediate payment in fiHl 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 pa), 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 pernfitted by this Security Instrument without fitrther notice or demand on Borrower. 19. Borrmver's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instmn~ent discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such Other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or. (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due nnder this Security Instrmnent 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~iforcing this Security htstnnnent, including, but not limited to, reasonable attorneys' fees,, property inspection and valuation fees, aud other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security'h~stmment; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the stuns secured by this Secuhty Instrument, shall contim~e unchanged. Lender may require that Borrower 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 reinstatement by Borrower, tiffs Security Instrument and obligations secured hereby shall remain fidly effective as if no acceleration had occurred· However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument aud performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the chauge 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 190JAC6042173 , 60~2173 0 6B(WY) (ooos) P~9~ ~ o~ Form 3051 1/01 reqnires ~n 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 Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assnmed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security 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 ,afforded other party hereto a reasonable period after the giviug 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 deented to be reasonable for pm-poses of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take correctwe 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 the following substances: gasoline, kerosene, other flammable or toxic petroleun¥ 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 that relate to health, safety or environmental protection; (c) "Environmental Cleaxmp" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means.a condition that can cause, contribute to, or othenvise trigger an Environmental Cleanup. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of an) 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 ~s 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 snmll quanmies of Hazardous Substances that are generally recoglfized Io be appropriate to nornml residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consmner products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by an), governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substauce, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regtdatory authority, or any private party, that any removal or other remediation of an), Hazardous Substance ~fffecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleam~p. 190JAC6042173 6042173 0 Initials: (~-6BJWY) (0005) P;g. 12 of 15 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender fi~rther covenant and agree as follows: 22. Acceleration; Re~nedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 (lays from the date the notice is gh,en to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. ff the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in dill of all sums secured by this Secm'ity Instrument without fm'ther demand and may invoke the power of sale and any other remedies permitted by Al)plicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies ln'ovided 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, il' flilterent, in accordance with Aplflicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall pnblisb the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may lmrchase the Property at any sale. Theproceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person m' persons legally entitled to it. 23. Release. Upon payment of all stuns secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for sen, ices rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives ail rights under and by virtue of the homestead exemption laws of Wyoming. '190JAC6042173 (~-6BIWY) (o005) 6042173 0 Initials:~~' Page 13 of 15 Form 3051 1/01 .7 7: 0S S44.9 ,,3,6,9 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants comained in this Security Instrumem and in any Rider executed by' Borrower and recorded with it. Witnesses: '~ (Seal) ~/O~N F. J~ -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 190JAC6042173 6042173 0 (~$B(WY) (0oo5) Pa~e ~4 ot 15 Form 3051 1/01 STATE OF ~, SALT LAKE Courtly ss: by JOHN F. GACKlvl/~ and CELESTE E. dACKFCJ~! --' .-. 270 My Conlnlission Expires://~/~//~5 BRIAN K. HAGLUND NOTAI~ PUBUC ° STATE o! 745 E. WINCHESTER ST., SUEE COMM. EXR 104-2005 Notary Public 190JAC6042173 (~e-6B(WY) (ooo5) 6042173 Page 15 oi' 15 Form 3051 0 1/01 VA GUARANTEED LOAN AND ASSUMPTION POLICY RIDER NOTICE: THIS LOAN IS NOT WITHOUT THE APPROVAIJ OF THE OF VETERANS AFFAIRS OR ITS AGENT. ASSUMABLE DEPARTMENT AUTHORIZED THIS 'VA GUARANTEED LOAN AND ASSUMPTION POLICY R1DER is made this 6th day of Apr±i, 2004 , and is incorporated into and shall be deemed to amend and supplmnent the Mortgage, Deed of Trust or Deed to Secure Debt (herein "Security Instrument") dated of even date herewith, given by the undersigned (herein "Borrower") to secure Borrower's Note to NEW LINE MORTGAGE, Div. of Republic Mortgage Home Loans,LLC (herein "Lender") and covenng the 'Property described in the Security Instrument and located at 215 SPRING STREET,COKEVILLE,WY 83114 [Property Address] VA GUARANTEED LOAN COVENANT: In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender fimher covenant and agree as follows: If the indebtedness secured hereby be guaranteed or insured under Title 38, United States Code, such Title and Regulalions issued thereunder and in effect on the date hereof shall govern the rights, duties and liabilities of Borrower and Lender. Any provisions of the Security Instrument or other instmmems executed in connection with said indebtedness which are inconsistent with said Title or Regulations, including, but not limited to, the provision for payment of an)' suni in connection with prepa3qnent of the secured indebtedness and the provision that the Lender may accelerate payment of the secured indebtedness pursuant to Covenant 18 of the Secuhty Instrument, are hereby amended or negated to the extent necessary to conform such instnnnents to said Title or Regulations. 190JAC6042173 6042173 0 MULTISTATE VA GUARANTEED LOAN AND ASSUMPTION POLICY RIDER (~-$38R (0310) MW 10/03 10/03 Page 1 of 3 Initials: ~ VMP Mortgage Solutions (800)52.fiX291 {~ LATE CHARGE: At Lender's option, Borrower will pay a "late charge" not exceeding four per centum (4%) of the overdue payment when paid more than fifteen (15) days ,after the due date thereof to cover the extra expense involved in handling delinquent payments, but such "late charge" shall not be payable out of the proceeds of any sale made to satis~ the indebtedness secured hereby, unless such proceeds are stffficient to discharge the entire indebtedness and all proper costs and expenses secured hereby. GUARANTY: Should the Department of Veterans Aflairs fail or refi~se to issue its guaranty in full amount within 60 days from the date that this loan would normally become eligible for such guaranty committed upon by the Department of Veterans Affairs Bnder the provisions of Title 38 of the U.S. Code "Veterans Benefits," the Mortgagee may declare the indebtedness hereby secured at once due and payable and may foreclose immediately or may exercise any other rights hereunder or take any other proper action as by law provided. TRANSFER OF THE pROpERTY:~ This loan may be declared immedimely due and pa) able upon transfer of the property securing such loan to any transferee, unless the acceptability of the assumption of the loan is established pursuant to Section 3714 of Chapter 37, Title 38, United States Code. An authorized transfer ("assumption") of the property shall also be subject to additional covenants and agreements as set forth below: (a) ASSUMPTION FUNDING FEE: A fee equalto One Percent: ( 1.00 %) of the balance of this loan as of the date Of transfer of the property shall be payable at the time of trausfer to the loan holder or its authorized agent, as trustee for the Department of Veterans Affairs. If the assumer fails to pay this fee at the time of transfer, the fee shall constitute an additional debt to that already secured by this instrument, shall bear interest at the rate herein provided, and, at the option of the payee of the indebtedness hereby secured or any transferee thereof, shall be immediately due and payable. Tiffs fee is automatically waived if the assumer is exempt under the provisions of 38 U.S.C. 3729 (c). (b) ASSUMPTION PROCESSING CHARGE: Upon application for approval to allow assumption of this loan,, a processing fee may be charged by the loan holder or its authorized agent for determining the creditworthiness of the assumer and subsequently revising the holder's ownership records when an approved transfer is completed. The amount of this charge shall not exceed the maxinmm established by the Department of Veterans Affairs for a loan to which Section 3714 of Chapter 37, Title 38, United States Code applies. (c) ASSUMPTION INDEMNITY LIABILITY:If this obligation is assumed, then the assumer hereby agrees to assume all of the obligations of the veteran under the terms of the instruments creating and securing the loan. The assumer further agrees to indemni6, the Department of Veterans Affairs to the extent of any claim payment arising from the guaranty or insurance of the indebtedness created by this instrument. 190JAC6042173 6042173 0 Page 2 of 3 Initials~ 0S S44 1N WITNESS WHEREOF, Borrower(s) has executed this VA Guaranteed Loan and Assumption Policy Rider. -Borrower ESTE E. JACKMA~ -Borrower -Borrower -Borrower -Borrower -Borrower -Borrower -Borrower 190JAC6042173 (~)~-538R (0310) 6042173 Page 3 of 3