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HomeMy WebLinkAbout898687When recorded, mail to: LONG BEACH MORTGAGE COMPANY P.O. BOX 201085 STOCKTON, CA 95202 LOAN NO. 6240178-7988 BOOK RECEIVED 'LINCOLN COUNTY CLERK Ob, aPR2I PH 3t35 JEANNE [Space Above Tiffs Line For Recording Data] MORTGAGE THIS MORTGAGE ("Security Instrument") is given on April 16 , 2004 JOHN D. CLINGER AND JENNIFER A. CLINGER, HUSBAND AND WIFE · The mortgagor is ("Borrower"). This Security Instrument is given to LONG BEACH MORTGAGE COMPANY which is organized and existing under the laws of the State of Delaware , and whose address is 1400 S. DOUGLASS RD., SUITE 100, ANAHEIM, CA 92806 ("Lender"). Borrower owes Lender the principal sum of One Hundred Twenty Four Thousand and no/100 ......................................................... Dollars (U.S. $ 124,000.00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on May I , 2034 This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage,, grant .and convey to Lender, with power of sale, the following described property located in LINCOLN County, Wyoming: LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF which has the address of 2332 STATE HIGHWAY 236 Wyoming 83110 WYOMING-Single Family-FNMA/FHLMC UNIFORM INSTRUMENT Form 3051 9~90 (~®76H(WY) 194031.01 Amended 12/93 VMP MORTGAGE FORMS - 18OOl521.7291 Page1 of 6 T;;:: :':LL2£~'' ~! , : ; '01) LH. ' Initials: "~"J~ j ].~V~ AFTON [Street, City], [Zip Code] ("Property Address"); TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that 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 with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and hiterest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (0 any sums payable by Borrower to Lender~ in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may 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 institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account,, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a Charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable, law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed the amounts pernfitted to be held by applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to Pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in 'such case Borrower Shall pay to Lender the :amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund t° Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note. ' 4. Charges; Liens. Borrower shall pay all taxes,' assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the maturer provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. 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; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrmnent, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. . (~)®-6H(WY} (9403).01 TDWY2 (03/30/0 $ ) LH Page 2 of 6 Form 3051 9/90 Loan No. 624~)~'~'~-~ 07.9 $. Hazard or ~operty Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Propc~y insured against loss by fire, h~ds included within thc tc~ "extended coverage" ~d ~y other h~ds, including floods or flooding, for which Lender requires insurm~ce This insur~cc shall be maintained in the ~ounts ~d for the periods that Lender requires. ~e insur~cc carrier providing thc insur~ce sh~l be chosen by Borrower subject to Lender's approval which shall not bc unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Prope~y in accordance with paragraph 7. All insur~cc policies ~d renewals shall bc acceptable to Lender and sh~l include a st~dard moagagc clause. Lender shall have thc right to hold the policies ~d renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid prczmums ~d renewal notices. In the event of loss, Borrower shall give prompt notice to thc insur~cc c~ricr ~d Lender. Lender may m~e proof of loss if not made promptly by Borrower. Unless Lender ~d Borrower othc~isc agree m writing, insur~cc proceeds shall be applied to restoration or repair of thc Property d~agcd, if thc restoration or repair is ccono~cally feasible ~d Lender's security is not lessened. If the restoration or repair is not ccono~c~ly feasible or Lender's security would be lessened, the insur~cc proceeds sh~l be applied to thc sums secured by this Security Instrument, whether or not then duc, with ~y excess paid to Borrower. If Borrower ab~dons the Property, or does not ~swcr within 30 days a notice from Lender that thc insur~cc carrier has offered to settle a claim, then Lender may collect the insur~cc proceeds. Lender may usc the proceeds to repair or restore thc Propc~y or to pay su~ secured by this Security Inst~mcnt. whether or not then duc. ~c 30-day period will begin when the notice is given. Unless Lender ~d Borrower otherwise agree in writing, ~y application of proceeds to principal shall not extend or postpone ~e duc date of thc monthly payments referred to in paragraphs 1 ~d 2 or ch~ge thc ~ount of the payments. If under paragraph 21 the Prope~y is acquired by Lender, Borrower's right to ~y insur~cc policies ~d proceeds resulting from d~age to the Prope~y prior to the acquisition shall pass to Lender to the extent of the su~ secured by this Security Inst~ment i~cdiately prior to thc acquisition. 6. Occupancy, ~eservation, Maintenance and ~ot~tion of the ~operty; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, ~d use the Property as Borrower's princip~ residence within sixty days a~er thc execution of this Security Inst~mcnt ~d shall continue to occupy thc Property as Borrower's principal residence for at least one ye~ aRer thc date of occupancy, unless Lender othe~isc agrees in writing, which consent sh~l not be u~casonably wit~cld, or unless extenuating circu~t~ccs exist which arc beyond Borrower's control. Borrower shall not destroy,' d~agc or impair thc Property, allow the Propc~y to deteriorate, or co--it waste on thc Property. Bo~ower shall bc in default if ~y forfeiture action or proceeding, whether civil or cri~n~ is begun that in Lender's good faith judgment could result in forfeiture of thc Propc~y or othc~isc materially impair ~he lien created by this Security Inst~mcnt or Lender's security interest. Borrower may cure such a default ~d reinstate, as provided in paragraph 18, by causing thc action or proceeding to bc dis~sscd with a ~ling that, in Lender's good faith dctc~nation, precludes forfeiture of thc Borrower's interest in thc Property or other matcri~ impairment of the lien created by this Security Inst~mcnt or ~nder's security interest. Borrower shall ~so be in default if Borrower, during thc 1o~ application process, gave materially false or inaccurate info~ation or statements to Lender (or failed to provide Lender with ~y material info~ation) in co~cction with thc lo~ evidenced by the Note, including, but not li~tcd to, representations concerning Borrower's occup~cy of thc Property as a princip~ residence. If this Security Instrument is on a leasehold, Borrower sh~l comply with all the provisions of the lease. If Bo~ower acquires fee title to thc Propc~y, thc leasehold ~d the fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's ~hts in the ~operty. If Bo~owcr fails to pcrfo~ thc coronets ~d agreements contained in this Security Instrument, or there is a legal proceeding that may signific~tly affect Lender's rights in the prope~y (such as a proceeding in b~ptcy, probate, for conde~ation or forfeiture or to enforce laws °r regulations), then Lender may do ~d pay for whatever is neccss~ to protect the value of the Pr0pe~y ~d Lender's rights in the Prope~y. Lender's actions may include paying ~y sums secured by a lien which has priority over this Security Inst~ment, appc~ing in coua, paying reasonable attorneys' fees ~d entering on thc Property to m~c repairs. Although ~nder may t~e action under this p~agraph 7, Lender does not have to do so. Any ~ounts disbursed by Lender Under this paragraph 7 sh~l become addition~ debt of Borrower secured by this Security Instrument. Unless Bo~owcr m~d Lender agree to other te~ of payment, these ~ounts shall bc~ interest from thc date of disbursement at thc Note rate ~d shall be payable, with interest, upon notice from Lender to Borrower requesting payment. : 8. Mortgage Insurance. If Lender required mortgage insur~ce as a condition of m~ing the 1o~ secured by this Security Inst~ment, Borrower sh~l pay the premiums required to maintain the mortgage insur~ce in effect. If, for ~y reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower sh~l pay the prenfiu~ required to obtain coverage subst~tially equivalent to the mortgage insur~ce previously in effect, at a cost subst~tially equivalent to the cost to Borrower of the.mortgage insur~ce previously in effect, from an ~temate mo~gage insurer approved by ~nder. If subst~tially equivalent mo~gage insur~ce coverage ~s not available, Borrower shall pay to Lender each month a sum equ~ to one-twelfth of the yearly mongage insur~ce pre~um being paid by Borrower when the insur~ce coverage lapsed or ceased to be in effect. Lender will accept, use ~d retain these payments as a loss rese~e in lieu of mortgage insur~ce. Loss rese~e Form 3051 9/90 ~-6H(WY) ,9403,.0, Page 3 of 6 Inifials:~, TDWY3 (0~30/01)~H Loan No ~?~8-79~ ~ :~. '. ?;' ".;..~; ~ ' payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Pr, operty in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before 'the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall 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 condemnor offers to make an award or 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 proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. 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 any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or 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 Borrower's successors in interest. Any forbearance by Lender in ~xercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall hind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any acco~nrnodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum 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 permitted 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 permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making, a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided for in this Security' Instrument shall be given by delivering it or by mailing it by first class mail unless applicable !aw requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared. to be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of thiS Security Instrument. Form 3051 9190 (~®-6H(WY) (9403).01 Page 4 of 6 TDWY4 (03/30/01) LH Loan No. 6240178--~)-'g8~1TM 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or ~y p~ of the Property or ~y ~nterest in it is sold or tr~sferred (or if a beneficial interest in Borrower is sold or tr~sferred ~d Borrower is not a naturM person) without Lender's prior written consent, Lender may, at its option, require i~ediate payment in ~11 of all sums secured by this Security Inst~ment. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. ~e notice shall provide a period of not less than 30 days kom the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these stuns prior to the expiration of this period, Lender may invoke ~y remedies pe~tted by this Security Instrument without ~rther notice or demand on Borrower. 18. Borrower's ~ght to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at ~y time prior to the earlier of: (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuit to ~y power of sale contained in this Security Instrument; or (b) ent~ of a judgment enforcing this Security Instrument. ~ose conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures ~y default of ~y other coven~ts or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not li~ted to, reasonable attorneys' fees; ~d (d) t&es such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender;s rights in the Property ~d Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument ~d the obligations secured hereby shall remain ~lly effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note; Change of Loan Servicer. ~e Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a ch~ge in the entity (~own as the "Lo~ Se~icer") that collects monthly payments due under the Note ~d this Security Instrument. ~ere Mso may be one or more ch~ges of the Loan Se~icer urn'elated to a sale of the Note. If there is a ch~ge of the ~ Se~icer, Borrower will be given written notice of the ch~ge in accord~ce with paragraph 14 above ~d applicable law. ~e notice will state the n~e ~d address of the new Lo~ Se~icer ~d the address to which payments should be made. ~e notice will Mso contain ~y other information required by applicable law. 20. Hazardous Substances. Borrower shill not cause or pe~it the presence, use, disposal, storage, or release of ~y H~ardous Subst~ces on or in the Property. Bo~ower shall not do, nor allow ~yone else to do, ~ything affecting ~e Property that is in violation of ~y Enviro~ental Law. ~e preceding two sentences shall not apply to the presence, use. or storage on the Property of small qu~tities of H~ardous Subst~ces that ~e generally recognized to be appropriate to no~al residential uses ~d to mainten~ce of the Property. Borrower shall promptly give Lender written notice of ~y investigation, claim, dem~d, lawsuit or other action by ~y gove~entM or regulatory agency or private p~y involving the Property ~d ~y H~ardous Subst~ce or Enviro~ental Law of which Borrower has actual ~owledge. If Borrower le~s, or is notified by ~y gove~entM or regulato~ authority, that ~y removM or other remediation of ~y H~ardous Subst~ce affecting the Propeny is necess~, Borrower shM1 promptly t&e all necess~ remedial actions in accord~ce wi~ Enviro~ental Law. As used in this paragraph 20, "H~dous Subst~ces" ~e those subst~ces defined as toxic or h~dous subst~ces by Enviro~ental Law and the following subst~ces: gasoline, kerosene, other fl~able or toxic petroleum products, toxic pesticides ~d herbicides, volatile solvents, materifls containing ~bestos or fo~aldehyde, ~d radioactive materiMs. As used in this paragraph 20, "Environmental Law" me~s feder~ laws ~d laws of the jurisdiction where the Property is located that relate to health, safety or enviro~entat protection. NON-UNIFORM COVENANTS. Borrower ~d Lender ~nher coven~t ~d agree as follows: 21. Acceleration; Remedi~. Lender shall give notice to Borrower prior to acceleration follo~ng Borrower's breach of any covenant or agreement in t~s S~urity Instrument ~ut not prior to acceleration under paragraph 17 nnl~s applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date sp~ified in the notice may r~ult in acceleration of the sums s~ured by this Security Instrument and sale of the ~operty. 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-e~stence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender, at its option, may require i~ediate payment in full of all sums s~ured by this Security ~strument ~thout further demand anti may invoke the power of sale and any other remcdi~ per~tted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing thc rcmedi~ provided in this paragraph 21, including, but not li~ted to, reasonable attorneys' fe~ 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 poss~sion of the Property, if different, in accordance ~th applicable law. Lender shall give notice of the sale to ~e ~ Form 3051 9/90~ -6H(WY} {9403L01 Page 5 of 6 TDWY5 (03/30/01) LH Initials:~ ~ ~: ~ ·. ;.;.:.',z,:..~ Loan No. g* f"' ,o .~ Borrower in the manner provided in paragraph 14. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by applicable law. Lender or its designee may purchase the Property at any sale. The proceeds 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 or persons legally entitled to it. 22. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument to Borrower. 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 services rendered and the charging of the fee is permitted under applicable law. 23. Waivers. Borrower waives all rights of homestead exemption in the Property and relinquishes all rights of curtesy and dower in the Property. 24. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. [Check applicable box(es)] [-~ Adjustable Rate Rider [] Condominium Rider [---] 1-4 Family Rider {---] Graduated Payment Rider [~ Planned Unit Development Rider [---] Biweekly Payment Rider [---] Balloon Rider [--] Rate Improvement Rider [--] Second Home Rider {~ V.A. Rider [] Other(s) [specify] BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Witnesses: ( .~ [_~ ,~~ (Seal) (Seal) (Seal) -Borrower -Borrower STATE OF WYOMING, L±ncoln The foregoing instrument was acknowledged before me this by John D. Clinger and Jennifer A. Clinger (person acknowledging) My Commission Expires: February 2, 2006 (~)®-6H(WY) (9403).01 TDWY6 (03/30/01) LH NOTARY P~UC .® Page 5 of 6 County ss: 16th day of April, 2004 (date) Notary Public Form 3051 9~90 Loan No. 6240178-7988 LEGAL DESCRIPTION That part of the SE~ASE~A of Section 3, T31N Rll9W of the 6th P.M., Lincoln County, Wyoming and part of those tracts of record in the Office of the Clerk of Lincoln County in Book 159PR on page 605 and Book 194PR on page 189, described as follows: BEGINNING at a point on the south line of said Section 3, East, 7.81 feet from the southwest corner of the said SE¼SE~A found as described in the Certified Land Corner Recordation Certificate filed in the said Office; thence continuing East, 100.00 feet along the said south line to a point; thence N 01°00.1' E, 435.60 feet to a point; thence West, 100.00 feet to a point; thence S 01°00.1' W, 435.60 feet along an existing fence in part to the POINT OF BEGINNING. Loan No. 6240178-7988 FIXED/ADJUSTABLE RATE RIDER (LIBOR Index - Rate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is made on this 16th day of April , 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to: LONG BEACH MORTGAGE COMPANY (the"Lender") of the same date and covering the property described in the Security Instrument and located at: 2332 STATE HIGHWAY 236 AFTON, WY 83110 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN THE BORROWER'S FIXED INTEREST RATE AND TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT THE BORROWER'S ADJUSTABLE RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of a change in the initial fixed rate to an adjustable interest rate, as follows: 5.700 %. The Note also provides for 1. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (a) Change Dates The initial fixed interest rate will change to an adjustable interest rate on the first day of May , 2006 , and on the first day of the month every 6th month thereafter. Each date on which the adjustable interest rate could change is called a "Change Date." (b) The Index Begimfing with the first Change Date, the interest rate will be based on an Index. The "Index" is the average of the London interbank offered rates for six month dollar deposits in the London market based on quotations at five major banks ("LIBOR"), as set forth in the "Money Rates" section of The Wall Street Journal, or if the Money Rates section ceases fo be published or becomes unavailable for any reason, then as set forth in a comparable publication selected by the Lender. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." (c) Calculation of Changes Before each Change Date, the Lender will calculate my new interest rate by adding Four and Ninety Nine Hundredths percentage point(s) ( 4.990 %) to the Current Index. The Lender will then round the result of this addition to the nearest one-eighth of one percentage point (0.125 %). Subject to the limits stated in Section l(d) on the following page, this rounded amount will be the new interest rate until the next Change Date. Fixed/Adjustable R~te Rider - Libor ~-,1956016 Page 1 of 3 ELECTRONIC LASER FORMS, INC. - {800}327-0§45 19560161 (04/24/011 PC Loan No. 6240178-7988 The Lender will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal balance as of the Change Date in full on the Maturity Date at the new interest rate in substantially equal payments. The result of this calculation will be the new monthly payment. (d) Limits on Interest Rate Changes The interest rate at the first Change Date will not be greater than 6.700 % or less than 5.700 %. Thereafter, the adjustable interest rate will never be increased or decreased on any single Change Date by more than One percentage poiuts ( 1.000 %) from the rate of interest applicable during the preceding 6 months. The adjustable ~nterest rate will never be greater than 11.700 %, which is called the "Maximum Rate" or less than 5.700 % which is called the "Minimum Rate". (e) Effective Date of Changes Each new adjustable interest rate will become effective on each Change Date. The amount of each new monthly payment will be due and payable on the first monthly payment date after the Change Date until the amount of the monthly payment changes again. (f) Notice of Changes The Lender will deliver or mail a notice of any changes in the adjustable interest rate and the amount of the new monthly payment to the Borrower before the effective date of any change. The notice will include information required by law to be given to the Borrower and also the title and telephone number of a person who will answer any questions regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 17 of the Security Instrument provides as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. 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 delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay t. hese 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. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 17 of the Security Instrument contained in Section B(1) above shall then cease to be in effect, and Uniform Covenant 17 of the Security Instrument Shall be amended to read as 'follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured'by this Security Instrument. However, this option shall not be exemised by Lender if Fixed/Adjustable Rate Rider - Libor -1956016 195~ol . Page 2 of 3 -- TM 19560162 (04/24/01) PC Loan No. 6240178-7988 exercise is prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise this option i.f: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender.also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. ~/A... /~ ~ (Seal) J O/H'N~D. CLINGER -Borrower / ! (Seal) -Bo~ower (Seal) -Borrower [Sign Original Only] Fixed/Adjustable Rate Rider - Libor ~-1956016 is5~o) 19560163 (04/24/ol i PC Page 3 of 3