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HomeMy WebLinkAbout898619Return To: HOMECO~IINGS FINANCIAL NETWORK, INC ONE MERID1AN CROSSING, STE 100 MINNEAPOLIS, MN 55423 Loan Number: 041-992291-9 898619 Prepared By: HomeComings Financial Network 14850 Quorum Drive, Suite 500 Dallas, TX 75254 RECEIVED LINCOLN OOUNTY OLERK Oh f'Pl 9 Fi' 2:08 [Space Above Tiffs Line For Recordh~g Data] MORTGAGE MIN 100062604159229198 DEFINITIONS Words used in tnultiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 aud 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" n]eans this document, which is dated APRIL 13TH, together with all Riders to this document. (B) "Borrower" is STEVEN D. NELSON AND SHANNON C. NELSON, HUSBAND AND WIFE 2004 Borrower is the ]nortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systenls, inc. MERS is a separate corporation that is acting solely as a nonfinee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone ~mmber of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS MFWY7770 (Il/00) / 041-992291-9 (~®-6A(WY) {ooosLo 1 VMP MORTGAGE FORMS - [800)521-7291 Form 3051 1/O1 (D) "Lender" is HOMECOMINGS FINT~CIAL NEI~qORK INC. Lender is a CORPORATION organized and existing under the laws of DELAWARE Lender's addressis 14850 QUORUM DRIVE, SUITE 500 DALLAS, TX 75254 (E) "Note" means file promissory note signed by Borroxver and dated APRIL 13TH, 2 004 The Note states that Borrower owes Lender NINETY FOUR THOUS/M'qD FOUR HUNDRED /LND NO/1 0 0 Dollars (U.S. $ 94,4 0 0.0 0 ' ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later thau lV~y 1ST, 2034 (F). "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" ~neans 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 Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [~ Adjustable Rate Rider 9 Condoufinium Rider [---] Second Home Rider [~] Balloon Rider [----] Planned Unit Development Rider [-~ 1-4 Fatnily Rider [~ VA Rider [] Biweekly Payment Rider [--] Other(s) [specify] (1) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condoufinium association, homeowners association or sinfilar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or sinfilar paper instrument, which is i~fitiated through an electronic ternfinal, telephonic instrument, computer, or xnagnetic 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 autonmted cleadnghonse transfers. (L) "Escrow Items" means those items that are described in Section 3. 0,1) "Miscellaneous Proceeds" means any cmnpensation, 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) danmge to, or destruction of, the Property; (ii) condmnnation or other taking of all or any part of the Property; (iii) couveyance in lieu of condenumtion; or (iv) nfisrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting 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 amounts under Section 3 of this Security Instrument. (P) "RESPA" ~neans the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and ~ts implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended frown time to time, or any additional or successor legislation or regulation that governs the same subject nmtter. As used in tiffs Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. MFWY7770 (ll/00) I 041-992291-9 (~-6A(WY) ~ooo~).o~ Page 2 of 15 Form 3051 1/01 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed B ' · · 0rrower s 0bllgat~ons m~der the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY ' This Security Instrument 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 fids Security Instrument and fl~e Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the COUNTy of LINCOLN ]Type of Recording Jurisdiction] [Name of Recording Jurisdiction] ' : LOT 3 OF BLOCK 8 OF LINCOLN HEIGHTS 4TH SUBDIVISION TO THE TOWN OF KEMMERER,~ LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF .. Parcel ID Number: 12-23116-23-2-05~071.00 1331 7TH WEST AVENUE KEMMERER ("Property Ad " dress ): which currently has the address of ' [Street] ]City] , Wyoming 83101 [zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if 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 those interests, including, but not linfited to, the right to oreclose 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 ~nortgage, grant and convey the Property and flint the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and denmnds, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. MFWY7770 (11/00) / 041-992291-9 Page 3 of 15 -- Form 3051 1/01 ........ ,724 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Paymen[ or ~incipa], In[er~[, Escrow I[ems, Prepaymen[ Charge, a,d Laie Charge. Borrower shah pay when due ~e principal of, and interest on, ~e deb[ evidenced by fl~e Note and any prepaymem charges and late charges due under fl~e No[e. Borrower shall also pay ~nds pursuant to Section 3. Payments due under fl~e Note and Otis Security Instrument shall for Escrow Itel~ be nmde in U.S. currency. However, if any check or ofl~er instrument received by Lender as payment under fl~e Note or this Security Instrument is returned to Lender unpaid, Lender ~my require ~at any or all subsequent payments due under fl~e Note and tiffs Security Instrument be ~de in one or more of fl~e following for~, 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 ilmured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at fl~e location desig~mted in ~e Note or at such o~er location as may be desigmted by Lender in accordance wifl~ fl~e notice provisim~ in Section 15. Lender may return any payment or partial payment if ~e payment or partial payments are i~ufficient to bring fl~e Loan current. Lender nmy accept any payment or partial payment insufficient to bring fl~e Loan cu~ent, wifl~out waiver of any rights hereunder or prQudice to its rights to re~se such payment or partial payments in ~e ~ture, but Lender is not obligated to apply such payments at fl~e time such payments are accepted. If each Periodic Payment is apPlied as of its scheduled due date, ~en Lender need not pay interest on umpplied ~ilds. Lender may hold such umpplied ~nds until Borrower makes payment to bring fl~e Loan current. If Borrower does not do so wiflfin a reasomble period of time, Lender shall eifl~er apply such fi~nds or return fl~em to Borrower. If not applied earlier, such ~nds will be applied to ~e outstanding principal balance under fl~e Note innnediately prior to foreclosure. No oflket or claim which Borrower might have now or in fl~e ~ture agai~t Lender shall relieve Borrower from nmking payxnents due under fl~e Note and tiffs Security Instrument or perfornfing ~e cove~mnts and agreements secured by tiffs Security Instrument. 2. Application of Payments or ~oceeds. Except as o~erwise described in tiffs Section 2, all payments accepted and applied by Lender shall be applied in fl~e following order of pfiohty: (a) interest due under file Note; (b) principal due under fl~e Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in fl~e order in which it became due. Any renmi~fing amounts shall be applied first to late charges, second to any o~er amounts due under tiffs Security I~tmment, and fl~en to reduce ~e principal balance of fl~e Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amonnt to pay any late charge due, fl~e pay~nent nmy be applied to fl~e delinquent payment and fl~e late charge. If more titan one Periodic Payment is outstanding, Lender nmy apply any payment received from Borrower to fl~e relpayment of fl~e Periodic Payments if, and to he extent fl~at, each payment can be paid in ~II. To fl~e extent ~at any excess exists after fl~e payment is applied to fl~e ~11 payment of one or more Periodic Payments, such excess nmy be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and fl~en as described in fl~e Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under fl~e Note shall not extend or postpone fl~e due date, or change ~e amount, of ~e Periodic Pay~nents. 3. Funds for Escrow Items. Boffower shall pay to Lender on fl~e day Periodic Payments are due under ~e Note, until fl~e Note is paid in ~11, a sum (~e "Funds") to provide for payment of amounts due for: (a) taxes and assessments and o~er items which can attain priority over tiffs Security h~tmment as a lien or encmnbrance on fl~e Property; (b) leasehold payments or ground rents on fl~e Property, if any; (c) prenfiums for any and all i~urance required by Lender under Section 5; and (d) Mortgage Insurance prenfimns, if any, or any sunks payable by Borrower to Lender in lieu of fl~e payment of Mortgage Insurance prenfiunm in accordance wifl~ fl~e provisions of Section 10. These items are called "Escrow Items." At origimtion or at any time during the term of fl~e Loan, Lender may require ~at Cmmnuhty 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 ~rnish to Lender all notices of amounts to be paid under tiffs Section. Borrower shall pay Lender fl~e Funds for Escrow Iten~ mfless Lender waives Borrower's obligation to pay fl~e Funds for any or all Escrow ltenm. Lender nmy Waive Bo~ower's obligation to pay to Lender Funds for any or all Escrow Ite~ at any time. Any sUeh waiver ~my offiy be in writing. In fl~e event of such waiver, Borrower shall pay directly, when and where payable, fl~e amounts M~7770 (11/00) / 041-992291.9 Page 4 of 15 Form 3051 1/01 due for auy Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall funfish to Lender receipts evidenciug such payment withiu such time period as Lender may require. Borrower's obligation to umke such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Itenks directly, pursuant to a waiver, and Borrower fails to pay the amouut due for au Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated uuder Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Leuder shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institutiou whose deposits are insured by a federal agency, instrumentality, or eutity (includiug Lender, if Lender is an institution whose deposits are so insured) or iu any Federal Home Loau Bank. Lender shall apply the Funds to pay the Escrow Items no later than the tiine specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, a~mually analyzing the escrow account, or verifying the Escrow Ite~ns, unless Lender pays Borrower iuterest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writiug or Applicable Law requires interest to be paid oil the Funds, Lender shall not be required to pay Borrower any interest or eanfings on the Fnnds. Borrower and Lender cau agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accountiug of the Fuuds as required by RESPA. If there is a surplus 'of Fuuds held in escrow, as defined under RESPA,. Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amouut necessary to make up the shortage in accordance with RESPA, but in no m monthly payments. If there is a d ' · ore than 12 eficlency of Funds held ~n escrow, as defiued under RESPA, Lender shall notify Borrower as 'required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Lieus. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attaiu priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Commuaity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay then] in the nmnner provided iu Section 3. Borrower shall promptly discharge any lien which has priority over tiffs 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 agreement; (b) contests the lien in good faith by, or defends against mfforcement Of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien Mille those proceedings are pending, but only uutil such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Iustrmnent. If Lender deternfines that any part of the Property is subject to a lien which can attain priority over this Security Instrmnent, Lender nmy give Borrower a notice identifying the MFWY7770 (11/00) / 041-992291-9 (~-6A(Wy} {ooo5~.o~ Page 5 of 15 Form 3051 1/01 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender nu~y 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 linfited 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 pursuaot 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 com]ection with this Loan, either: (a) a one-time charge for flood zone detemfination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such deternfi]mtion or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in cotmection with the review of any flood zone determination 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 might or nfight not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained ufight significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under fids Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from 'Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's fight to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid prenfiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for 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 insurance cartier and Lender. Lender may make proof of loss if not made promptly by Borrower. U~dess Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Leuder shall have the fight 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 fl~at 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. U~fless 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 economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the stuns secured by fids Security Instrument, whether or not then due, with MFWY7770 <11/00) ! 041-992291-9 (~)~-6AIWY) {ooo5).o 1 Page 6 of 1~i 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 ~nay file, negotiate and settle any available insurance claim and related matters. If Borrower does ]tot respond within 30 days to a notice from Lender that the insurance carrier has offered to Settle a clai]n, then Lender may negotiate and settle the claim. The 30~day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (al Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Irkstmment, and (b) any other of Borrower's rights (other than the right to any refund of unearned prenfiums paid by Borrower) under all insurance policies covering 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 dfis Security Instrument, whether or not theu due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence witlfin 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 unreasonably wiflfl~eld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasiug in value due to its condition. Unless it is detemfined 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 condennmtion proceeds are paid in com~ection with damage to, or the taking of, file Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Leuder may disburse proceeds for the repairs and restoration in a single payment or iu a series of progress payments as the work is completed. If the insurance or condenumtion proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasomble eutries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, nfisleading, or inaccurate information or statements to Lender (or failed to provide Lender wifl~ material information) in connection with the Loan. Material representations include, but are not linfited 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 (al Borrower fails to perform the covenants and agreexnents contained in this Security instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights uuder this Security Instrument (such as a proceeding in bankruptcy, 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 aud/or assessing the value of fl~e Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (al paying any sums secured by a lien which has priority over dfis Security Instrument; (b) appearing in court; and (c) paying reasonable MFWY7770 (11/00) / 041-992291-9 (~)~-6AIW¥I Iooo~.o~ Page 7 of 15 Form 3051 1/01 .attorneys' fees to protect its interest in the Property and/or rights under dfis Security Instrument, iucluding ~ts secured pos.ition in a bank~ptcy proceeding. Securing the Property includes, but is not li~Nted to, entering ~e Property to nmke repairs, change locks, replace or board up doors and windows, drain water ~om pipes, elinfi~mte building or off, er code violatio~ or dangerous condido~, and have utilities tun,ed on or off. Al~ough Lender ~y take acdon under ~is Section 9, Lender does not have to do so and is not under auy duty or obligation to do so. It is agreed ~at Lender incurs no liability for not taking any or all acdo~ au~orized under fids Section 9. Any amounts disbursed by Lender under ~is Section 9 shall become additio~ml debt of Borrower secured by fids SecuNty Ins{~ment. These amounts shall bear interest at ~e Note rate ~om ~e date of disbursement and shall be payable, wifl~ such interest, upon notice from Lender to Bo~ower requesting payment. If ~fis Security Inst~ment is on a leasehold, Bo~ower shall comply wi~ all ~e provisio~ of ~e lease. If Borrower acquires fee title to ~e Property, ~e leasehold and ~e fee title shall not merge m~ess Lender agrees to fl~e merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of nmking ~e Loan, Borrower shall pay ~e prenfimns required to nmintain ~e Mortgage Iusurance in effect. If, for any reason~ the Mortgage Insurance coverage required by Lender ceases to be available from 0~e mortgage i~urer previously provided such insurance and Borrower was required to nmke separately desig~mted payments toward ~e prenfiunt~ for Mortgage I~urance, Bo~ower shall pay ~e prenfiums required to obtain coverage substantially equivalent to ~e Mortgage I~urance previously iu effect, at a cost substantially equivalent to ~e cost to Borrower of fl~e Mortgage h~urance previously in effect, from an aller~te mortgage insurer selected by Lender. If substantially equivalent Mortgage l~urance coverage is not available, Borrower shall continue to pay to Lender ~e amount of fl~e separately desig~ted payments were due when ~e insurance coverage ceased to be in effect. Lender will accept, use and retain ~ese payments as a non-re~ndable loss reserve in lieu of Mortgage Iusurance. Such loss reserve shall be non-re~ndable, notwifl~standing the fact ~at ~e Loan is ulti~tely paid in ~ll, and Lender shall not be required to pay Borrower any interest or earNngs on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in ~e amount and for fl~e period flint Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately desig~mted payments toward ~e pren~mns for Mortgage I~murance. If Lender required Mortgage Insurance as a condition of nmking ~e Loan and Bo~ower was required to nmke separately design{ed payments toward fl~e preufiun~ for Mortgage Insurance, Bo~ower shall pay fl~e premiums required to maintaiu Mortgage I~uurance in effect, or to provide a non-rehndable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance wifl~ any written agreement between Bo~ower and Lender providing for such ternfimtion or until ternfimtion is required by Applicable Law. Noflfing in this Section 10 affects Borrower's obligation to pay interest at fl~e rate provided in ~e Note. ~ortgage Insurance reimburses Lender (or any entity flint purchases fl~e Note) for certain losses it ~my recur if Borrower does not repay fl~e Loan as agreed. Borrower is not a party to fl~e Mortgage I~urance. Mortgage insurers evaluate fl~eir total risk on all such insurance in force from time to time, and ~my enter into agreements wifl~ off,er parties ~at share or modify fl~eir risk, or reduce losses. These agreements are on terms and conditions ~at are satisfactory to fl~e mortgage insurer and fl~e o~er party (or parties) to fl~ese agreements. These agreements my require fl~e mortgage i~urer to nmke payments using any source of hnds flint fl~e mortgage insurer ~my have available (which nmy include ~nds obtained from Mortgage I~urance prenfiu~). As a result of fl~ese agreements, Lender, any purchaser of the Note, anofl~er insurer, any reinsurer, any off,er entity, or any affiliate of any of ~e foregoing, ~my receive (directly or indirectly) amounts ~at derive from'(or ~Nght be characterized as) a portion of Borrower's paymen~ for Mortgage I~urance, in exchange for sharing or modifying fl~e mortgage iusurer's risk, or reducing losses. If such agreement provides ~at an affiliate of Lender takes a share of,fl~e insurer's risk in exchange for a share of fl~e prenfiunm paid to ~e insurer, ~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 Loau. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. MF~7770 (11/00) / 041-992291-9 P~e 8 of 15 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or auy other law. These rights [nay include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to bare tbe Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellatiou or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender sball have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work bas been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. U~fless au agreement is made in writing or Applicable Law requires interest .to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be ,applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums seCUred by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair nmrket 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 Instrument inunediately 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 a]nount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured inm~ediately before the partial taking, destruction, or loss in value divided by (b) the fair nmrket value of the Property i~mnediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair nmrket~ value of the Property immediately 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, mdess BorrOwer and Lender otherwise agree in writing, the Miscellaneous Proceeds sball be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender witlfin 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 fids Security Instrument, whether or not theu due. "Opposing Party" means fl~e third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or crimi~ml, is begun that, in Lender's judgment, could result in forfeiture of the Property or other nmterial impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower cau 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 Leuder's judgment, precludes forfeiture of the Property or other nmterial impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for danmges 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 Property shall be applied in the order provided for iu Section 2. MFWY7770 (I1/00) ! 041-992291-9 (~-6AIWY} rooos~.o~ Page 9 of 15 Form3051 1/01 1.2. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release die liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to conm]ence proceedings against any Successor in Interest of BorroWer or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without linfitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude tile 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 Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing Otis Security Instrument oniy to mortgage, grant and convey file co-signer's interest in file Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and auy other Borrower can agree to exteud, modify, forbear or make auy acconm~odations 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 Otis Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights aud benefits under Otis Security Instrument. Borrower shall not be released froln Borrower's obligations and liability under this Security Instrument unless Lender agrees tO such release in writing. The covenants and agreements of this Security Instrmnent shall bind (except as provided in Section 20) and benefit tile successors and. assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for die purpose of protecting Lender's interest in the Property and rights under Otis Security Instrument, including, but riot li~nited to, attorneys' fees, property inspection and valuation lees. 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 chargiug 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 ~naximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in cmmection with the Loan exceed the permitted li~nits, then: (a) any such loan charge shall be reduced by the amouut necessary to reduce the charge to the per~nitted limit; and (b) any sums already collected from Borrower which exceeded permitted linfits will be refuuded to Borrower. Lender may choose to nmke this refund by reducing the principal owed under the Note or by making a direct pay~nent to Borrower. If a refund reduces principal, the reduction will be treated' as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for ruder file Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower ~night have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in com]ection with Otis Security Instrument must be in writiug. Any notice to Borrower in connection with Otis Security Instrument 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 oue Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be file 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 Leuder 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 Instrmnent at any one time. Any notice to Lender shall be given by delivering it or by mailiug 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 Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by Otis Security h~strmnent is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirmnent under this Security Instrmnent. MFWY7770 (11/o0) / 041-992291-9 I~-6AIWY) Iooosl.o~ Page 10 of 15 Initi al .:~2)/~) ~(_..~ }") Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction iu which the Property is located. All rights and obligations contained in Otis 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 ntight be silent, but such silence shall not be construed as a prolfibition against agreement by contract. In the event that any provision or clause of this Security Instrunlent or the Note conflicts with Applicable Law, such conflict shall not .affect other provisions of tiffs Security Instrument or die Note which can be given effect without {tie conflicting provision. As used in this Security Instrumeut: (a) words of the ~nasculine 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 auy action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the PrOperty or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial iuterest in Borrower is sold or transferred) without Lender's prior written consent, Lender nmy require innnediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all stuns Secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19~. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Pr this Security Instrument. rb~ s,,~ ....... operty pursuant to any power of sale contained in , ~ ~ ~, outer perloa as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing fids Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as ff no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under fids Security Instrument, and Borrower's obligatiou to pay the sums secured by fltis Security Instrument, shall conti~me unchanged. Lender may require that Borrower pay such reinstatement stuns and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b)money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electro]dc Fuuds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as ffno 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 Instrumen0 can be sold one or more times without prior notice to Borrower. A sale ]night result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the natne and address of the new Loau Servicer, the address to which paymeuts should be made and any other information RESPA MFWY7770 (11/00) / 041-992291-9 6A(WY) {ooo51.o1 Page 11 of 15 Form 3051 1/01 requires in connection with a notice of transfer of servicing, if the Note is sold and thereaft6r the Loan is serviced by a Loan Servicer other than file purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with file Loan Servicer or be transferred to a successor Loan Servicer and are uot assumed by the Note purchaser mfless otherwise provided by the Note purchaser. Neither Borrower ~mr Lender may cormnence, join, Or be joined to any judicial action (as either an individual litigant or the member of a class) that arises froIn 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 fl~e other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the oilier party hereto a reasomble period after die giving of such notice to take corrective action. If Applicable Law provides a time period which nmst elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportmfity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 Shall be deemed to satisfy the notice and opporm~fity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous. Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviro~m~ental Law and the folloWing substances: gasoline, kerosene, other flaummble or toxic petrolemn products, toxic pesticides and herbicides, volatile solvents, materials contai~fing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" ~neans federal laws and laws of the jurisdiction where the Property is lodated that relate to health, safety or environmental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or removal actiou, as defined in Enviromnental Law; and (d) an "Envirortmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substauces, ou or in the Property. Borrower shall not do, nor allow anyone else to do, a~Ything affectiug the Property (a) that is in violation of any Environmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the preseuce, 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 appropriate to normal residential uses and to maintenance of the Property (including, but not liufited to, hazardous substances in consumer products). Borrower shall pro~nptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or oilier action by any govennnental or regulatory agency or private party involving the Property and any Hazardous Substance or Enviromuental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, including but not linfited to, any spilliug, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any couditiou caused by the presence, use or release of a Hazardous Substance which adversely affects the value of file Property. If Borrower learns, or is notified by any 'governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affeCting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Nothing herein shall create any obligation on Lender for an Enviromnental Cleanup. MFWY7770 (i1/00) / 041-992291-9 (~-6AIWY) {ooos).Ol Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows i 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrumeut (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (n) the default; (b) the action required to cure the default; (c) a (late, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) tbat failure to cure the default on or before tbe date specified in tbe 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 tile right to reiustate ur/er 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 snle. If the default is not cured on or before the dnte specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke tile power of sale and any other remedies permitted by Applicable Lnw. Lender shall be entitled to collect all expenses incurred in pursuing tbe remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender iuvokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to tile person in possession of the Property, if different, in accordance with Applicable Law. Leuder shall give notice of the sale to Borrower in the manner provided in Section 15. Leuder shall publish /lie notice of sale, and the Property shnll be sold in the manner Prescribed by Applicable Lnw. Lender or its designee may purchase the Property at an), sale. The proceeds of tile sale sball be applied in the following order: (a) to all expeuses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persous legally entitled to it. 23. Release. Upon payment of all sunts secured by this Security hk~trument, Lender shall release this Security Iustrmnent. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but o~fly if the fee is paid to a tl]ird party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of file homestead exemption laws of Wyoming. MFWY7770 (11/00) 041-992291-9 {~;I~AJWy~ Iooo~.o~ Page ~ 3 of 15 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to fl~e terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: STEVEN D. NELSON (Seal) -Borrower SHANNON C. NELSON -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower MFWY7770 (11/00) / 041-992291-9 ~{~6A(WY} {ooos).ol Page 14of 15 Form 3051 1/01 STATE OF WYOMING, County ss:~d(~dA ~_- by The foregoing instm,nent was acknowledged bsfore me tiffs { 3 (~ 2 0 04 STEVEN D. NELSON 3dqD SHANNON C. NELSON, HUSBAND AND WIFE MFWY7770 (11/00) / 041-992291-9 (~-6AIW¥} moos~.o~ Page 15 of 15 rnitials: Form 3051 1/01