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HomeMy WebLinkAbout89910730414 (O4) Return To: ItOMECOMINGS FINANCIAL NETWORK. INC ONE MERIDIAN CROSSING. STB 100 MINNBAPOLIS, MN 55423 loan Numbor: 042-050611-5 8' 9 107 Prepared By: HomeComings Financial Network 1687 ll4th Ave. SE, Suite 100 Bellevue, WA 98004 Fl E C F_' I'v'E D LINCOLI',~ COUNTY CLERK ), -7 F',,12:55 [SI)ace Above Tltis Lh~e For Recordh~g Dnta] MORTGAGE MIN 100062604205061155 DEFINITIONS Words used in nmltiple sections of riffs document are defined below and other words are defiued in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding file usage of words used in this document are also provided in Section 16. (A) "Security Instrmnent" means dfis document, which is dated APRIL 29TH, together with all Riders to this docmnent. (B) "Borrower" is DONLEE L. AULLMAN AND ROZLYN AULLMA-N, HUSBAND AND WIFE 2094 Borrower is the mortgagor under this Security Instntment. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation flint is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee nnder this Security Instrument. MERS is organized and existing under fl~e laws of Delaware, and has an address and telephone number 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 (11/00) / 042-050611-5 (~®-6A(WY) Iooo~.o'~~ ~ VMP MORTGAGE FORMS - (8001621-7291 Form 3051 1/01 5,58 (D) "Lender" is HOMECOMINGS FINANCIAL NETWORK, INC. Lender is a CORPORATION organized and existing under the laws of DELAWARE Lender's address is 1687 ll4TH AVE. S.E. SUITE 100 BELLEVUE, WA 98004 (E) "Note" means the pronfissory note signed by Borrower and dated APRIL 2 9TH, 2 004 The Note states that Borrower owes Lender ONE HUNDRED 'I'WENTY THOUSAND THREE HUNDRED NINETEEN AND NO/100 Dollars (U.S. $ 12 0,319.0 0 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than HAY 1ST, 2034 (F) "Property" means the property that is described below uuder the heading "Transfer of Rights in the Property." (C) "Loan" means the debt evidenced by the Note, plus Interest, any prepay~nent charges and late charges due under the Note, and all stuns due under this Security Instrument, plus interest. (l:l) "Riders" means all Riders to this Security [nstrmnent that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~ Condo~ninium Rider ~ Second Home Rider [---] Balloon Rider [--~ Plmmed Unit Development Rider ['~ 1-4 Family Rider ~ VA Rider ~ Biweekly Payment Rider ~-~ Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal state and local statutes, regulations, ordinances and adnfinistradve rules and orders (that have tile cffec't of law) as well as all applicable final, non-appealable judicial opinions. (J) "Cmnmunity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are nnposed on Borrower or the Property by a condonfinium association, homeowners association or si~nilar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or sinfilar paper instrument, which is initiated through au electronic ternfinal, telephonic instrument, computer, or magnetic tape so as to order, instruct, o1' authorize a financial institution to debit or credit an account. Such tern~ includes,' but is not liufited to, point-of-sate transfers, automated teller nmchine transactions, transfers initiated by telephone, wire transfers, and automated clearinghonse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) danmge to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) misrepresentauons of, or onfissions as to, the value aud/or condition of the Property. (N) "Mortgage Iusurance" means insurance protecting Lender agaiust the nonpayment of, or default on the Loan. ' (O) "Periodic Payment" means the regularly scheduled amomu due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security lnstrmuent.' (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they nfight be an]ended f¥om time to time, or any additional or successor legislation or regulation thai governs the same subject matter. As used in fids Security Instrmnent, "RESPA" refers to all requirements and restrictions that are imposed iu regard to a "federally related mortgage loan" even if the Loau does not qualify as a "federally related mortgage loan" under RESPA. MFWY7770 (1t/00) / 042-050611-5~ (~)~-.6A(WY) (ooo~}.o~ Page 2 of 15 Form 3051 1/01 559 (0) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrmnent. TRANSFER OF RIGHTS IN THE PROPERTY This Security htstrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Secm-ity Instrument and the Note. For this propose, Borrower does hereby mortgage, grant and convey to MERS (solely as nonfinee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property h)cated in the COUNTY of LINCOLN : [Type of Recording Surisdiction] [Name of Recording Iurisdiction] BEGINNING AT .A POINT THIRTEEN JLIqD TNO-THIRDS {13 2/3) RODS NEST OF THE NORTHEAST CORNER OF THE NORTHNEST QUARTER OF SECTION 23, TONNSHIP 34 NORTH, OF RANGE ll9 WEST OF THE 6TH P.M., NYOMING .AND RUNNING THENCE SOUTH ONE HUNDRED NINETY-TNO FEET (192'), THENCE NEST NINETY FEET (90'), THENCE NORTH ONE HUNDRED NINETY-TNO FEET (192'1, THENCE EAST NINETY FEET (90') TO THE PI_~CE OF BEGINNING. This 1st Real Estate Mortgage is being recorded concurrently with a 2nd Real Estate Mortgage in favor of HomeComings Financial Network, in the original amount of $32,000.00 dated April 29, 2004. Parcel ID Nmnber: 34192320100200 101 ROBERTS RD. THAYNE ("Property Address"): which currently has the address of , [Street] [Cityl , Wyoming 83127 [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 d~e right: to exercise any or all of those interests, including, but not limited to, the right to Ibreclose and sell the Property; and to take any action required of Lender including, but not linfited to, releasing and canceling this Security Instnlment. 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 a~d will defend generally the title to the Property against all claims and denm~ds, subject to any encmnbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-mfilbrm covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. MFWY7770 (ll/O0) / 042-0506il-5 (~-6A(WY) {ooosLo'~ Initials: Lh ~ Form 3051 1/01 UNIFORM COVENANTS. Borrower and Lender coverture and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepaymem Charges, and La~e Charges. Borrower shall pay when al'ua d~ principal of, and int~r¢s~ on, fl~¢ d~b~ ~vidm~c~d by ~ Nora and any pr~paym~n~ charges and la~e charges du~ uuder ~e No~¢. Borrower shall also pay ~nds t~r ~scrow It~n~ pursuant to Section 3. Payments due under fl~e Note and tiffs Security Instrument shall be nmde in U.S. currency. However, if any check or other instrument received by Lender as payment uuder the Note or tiffs Security Instrmmnt is returned to Lender unpaid, Lender ~y require flint any or all subsequent payinents due under the Note and tiffs Security h~tmment be nude in oue or more of ~e following forms, as selected by Lender: (a) cash; (b) ~noney order; (c) certified check, ba~ check, treasurer's check or cashier's check, provided any such check is drawn upon an i~mtitution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Tra~mfer. Payments are deemed received by Lender when received at flxe location desigmted in the Note or at such ofl~er location as nmybe desig~mted by Lender in accordance wifl~ fl~e notice provisions in Section 15. Lender nmy return any payment or partial paynmnt if ~e payment or partial payments are insufficient to bring the Loan current. Lender ~my accept any payment or partial payment i~ufficient to bring fl~e koa'n cmxent, wiflmut waiver of any rights hereunder or prejudice to its rights to re~se such payment or partial payments in flxe fi~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, then kender need not pay interest on mmpplied ~nds. Lender umy hold such mmpplied ~nds until Borrower makes paymeut to briug fl~e Loan current. If Bon'ower does not do so wiflfin a reasonable period of time, Lender shall either apply such ~nds or re~rn ~em to Borrower. If not applied earlier, such ~nds will be applied to the outstanding principal balance uuder file Note inmlediately prior to foreclosure. No offset or claim which Bo~ower nfight have now or in fl~e ~ture agai~mt Lender shall relieve Borrower from nmking payments due under tim Note and tiffs Security Instrument or perforating fl~e coveuants and agreements secured by tiffs Security Instrument. 2. Application of Payments 0r Proceeds. Except as ofl~erwise described in tiffs Section 2, all payments accepted and applied by Lender shall be applied in rite following order of priority: (a) interest due under fl~e Note; (b) principal due under file Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in ate order in which it became due. Any renmining amounts shall be applied first to late charges, second to any ofl~er amounts due under tiffs Security Instrument, and · en to reduce fl~e principal balance of ~e Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, ~e payment nmy be applied to fl~e delinquent payment and fl~e late charge. If more fl~an one Periodic Payment is outstauding, Lender ~my apply any payment received from Borrower to fl~e repayment of file Periodic Payments if, and to fl~e extent ~at, each payment can be paid in ~11. To fl~e extent flint any excess exists after fl~e payment is applied to flxe fidl 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 prepaylnent charges and ~en as described in fl~e Note. Any application of payments, insurance proceeds, or Miscellaueous Proceeds to principal due under fl~e Note shall not extend or postpone ~e due date, or change fl~e amount, of fl~e Periodic Payments. 3. Funds for Escrow Items. Bo~ower shall pay to Lender on file day Periodic Paymeuts are due under file Note, until file Note is paid in ~11, a suln (file "Funds") to provide for payment of amounts due for: (a)' taxes and assessment~ and ofl~er items which can attain priority over tiffs Security Instrument as a lien or encumbrance on ~e Property; (b) leasehold paymeuts or ground rents on file Property, if any; (c) premimns for auy and all insurance required by Lender under Section 5; and (d) Mortgage hmurauce prenfiums, if any, or any sums payable by Borrower to keuder in lieu of ~e payment of Mortgage Insm'ance premiums in accordance wiflx file provisio~ of Section 10. These items are called "Escrow Items." At origimtion or at any time during fl~e term of fl~e Loau, Lender ~my require flint Conmmnity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, t~es and assessments shall be an Escrow Item. Borrower shall promptly british to Lender all notices of amounts to be paid under tiffs Section. Borrower shall pay Lender ~e Funds tbr Escrow Ite~ mfless Lender waives Borrower's obligation to pay fl~e Funds fbr any or all Escrow Items. Lender nmy waive Bo~ower's obligation to pay to Lender Funds for any or all Escrow Items at auy time. Any such waiver nmy only be in writing. In file event of such waiver, Borrower shall pay directly, when and where payable, fl~e amounts MF~7770 (11/00) / 042-050611-5 . Initials: ~6A(WY) 1ooo51.o~ Page 4 of 15 Form 3051 1/01 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall fur]fish to Lender receipts eVidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated rd pay Escrow Items directly, pursuant to a waiver, a~d Borrower fails to pay the amount due for an Escrow Ite~n, Lender nmy exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in suchamounts, that are then required under this Sectiou 3. · Lender may, at any time, collect and hold Funds in an amount (a) sufficient to pernfit Lender to apply the Funds at the tithe specified ruder RESPA, and (b) not to exceed the maxinmm amount a lender can require trader RESPA. Lender shall estinmte the amount of Funds due on the basis of current data and reasonable estinmtes of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Itmns no later than the time specified under RESPA. Lmder shall not charge Borrower for holding and applying the Funds, ammally analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pernfits Lender to make such a charge. Unless an agreement is nmde in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on' the Funds. Borrower and Lender can 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 as required by RESPA. if there is a surplus of Funds held in escrow, as defined uuder 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 amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall ]ratify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to nmke up the deficiency in accordance with RESPA, but in ]m more than 12 monthly payments. Upon payment itl full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, aud impositions attributable to the Property which can attain priority over this Security lnstrmnent, leasehold payments or ground rents on the Property, if any, and Conmmnity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the nmnner provided in Section 3. Bon'ower shall promptly discharge any lien which has priority over this Security h~strument mfless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a mam~er acceptable to Lender, but tuffy so long as Borrower is performing such agree]nent; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures frown the holder of file lien au agreement satisthctory to Lender subordinating the lien to this Security hlstrument. If Lender deterufincs that any part of the Property is subject to a lien wlfich can attain priority over this Security Instrumeut, Lender may give Borrower a notice identifying the MFWY7770 (1!/00) / 042-050611-5 II~}~-6AlWY) ~ooos).o~ Page 6 o~ 1 {5 Initials: Form 3051 1/Ol 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 ]nay require 'Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in co]mection with this Loan. 5. Property Insurance. Borrower shall keep the i~nprovements now existing or hereafter erected on the Property iusured against loss by fire, hazards incladed within the term "extended coverage," ami any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be nmiutained in the amounts (including deductible levels) and roi' the periods that Lender requires. What Lender requires pursuant to the precediug 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 mtreasonably. Lender may require Borrower to pay, in comlection with this Loan, either: (a) a oue-time charge for flood zone detenNnation, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time renmppings or sinfilar changes occur which reasonably nfight affect such determitmtion or certification. Borrower shall also be responsible for tile payment of any fees imposed by the Federal Emergency Management Agency in cmmection with the review of any flood zone deternfination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender n~ty 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 might not protect Borrower, Borrower's equity in the Property, or tile 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 ]night significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrmnent. These amonnts shall bear iuterest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice l¥om Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such' policies,' shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for danmge to, or destruction of, the Property, such policy shall include a standard mortgage clause aud shall lmme Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to file insurance carrier and Lender. Lender nmy .nmke proof of loss if not made promptly by Borrower. U]dess Lender and Borr6wer otherwise agree in writing, any insurance proceeds, whether or not fl~e underlying insurance was required by Lender, shall be applied to restoration or i'epair of the Property, if fl~e restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportuuity to inspect such Property to ensure the work has been completed to Leuder's satisfaction, provided that such inspectiou shall be undertakeu promptly. Lender ]nay disburse proceeds tbr the repairs and restoration in a single payment or in a series of progress payments as file work is colnpleted. Unless an agreement is nmde in writing or Applicable Law requires interest to be paid on such i]tsurance 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 obligatiou of Borrower. If fl~e restoration or repair is not econonfically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to fl~e sums secured by this Security Instrument, whether or not then due, with ~ A MFWY7770 (11/00) / 042-050611-5 Initiala:L~ ~ ~ {~-6A{WY) Iooo61.Ol Page ~o~ ~ Form 3051 1/01 the excess, if any, paid to Borrower. Such ~nsurance proceeds shall be appli[d in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available 'insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender nmy negotiate and settle file claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an axnount not to exceed the amounts unpaid under file Note or this Security Instrument, and (b) any other of Borrower's rights (other titan the right to any refund of unearned premiums 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 file Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall coutinue 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 unreaso~mbly withheld, or unless extemmting circmnstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair file Property, allow the Property to deteriorate or conmfit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property t¥om deteriorating or decreasiug in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are Paid in commction with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or conde~mmtion proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasomable cause, Lender raay 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 reasmmble cause. 8. Bon'ower's Loan Application. Borrower shall be in dethult 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 i~mccurate iuformation or statements to Leuder (or failed to provide Lender with material information) in cmmection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's. Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perlbrm the covenants and agreements contained itl this Security Instrument, (b) there is a legal proceeding that mj'ght significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in banlcruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which nmy attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned rite Property, then Lemler may do and pay for whatever is reasonable or appropriate to protect Lender's interest in file Property and rights under fids Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not linfited to: (a) paying any sums secured by a lien which has priority over Otis Security Instrument; (b) appearing in court; and (c) paying reasmmble MFWY7770 (11/00) / 042-0506H-5 Initial~: L~ ~ (~-6A(WY) Iooo~}.o~ va~ 7 o~ ~s ' ~ x Form 3051 1/01 564 attorneys' tees to protect its interest in file Property and/or rights under this Security Instrument, including its secured position iu a bankruptcy proceeding. Securing file Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is ]tot under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. 'Ally amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security fustrmnent. These amounts shall bear interest at file Note rate from file date of disbursement and shall be payable, with such interest, upon notice fi'din Lender to Borrower requestiug payment. If this Security Instrument is on a leasehold, Borrower shall comply with all file provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge mfless Lender agrees to file merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain rite lvlortgage Insurance iu effect. If, tbr any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward file premiums for Mortgage Insurance, Borrower shall pay file premiums required to obtain coverage substantially equivalent to file Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously ill effect, from an alternate mortgage insurer selected by Lender. If substautially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of fl~e separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage lnsurauce. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender call no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for file period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately desigltated payments toward the premiums for Mortgage Insurance. If Leuder required Mortgage Insurance as a condition of nmking the Loan and Borrower was required to nmke separately designated payments toward the prenfiums for Mortgage Insurance, Borrower shall pay 'the prenfiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until ternfination is required by Applicable Law. N'oflting in Otis Section 10 affects orrower s B ' obligation to pay interest at file rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that. purchases the Note) tbr certain losses it nmy incur if Borrower does not repay the Loan as agreed. Borrower is not a party to fl~e Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter'into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and file other party (or parties) to these agreements. These agreements may require the mortgage iusurer to lnake payments using any source of funds that the mortgage insurer may have available (which may include funds obtained/Yom Mortgage Insurance prenfimns). As a result of these agreements, Lender, any purchaser of file Note, another insurer, any reinsurer, any other entity, or any affiliate of ally of the foregoing, nmy receive (directly or iudirectly) amounts that derive from (or ~night be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or ~nodifying file inortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of file premiums paid to the insurer, rite arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any retired. MFWY7770 (11/00) / 042-05061i-5 Initial*: (~-6A(WY) Iooos).o~ Page e of ~5 Form 3051 1/01 (b) Any such agreements will uot affect the rights Borrower has - if any - with respect to the Mortgage Insurauce ouder the Ho~neowners Protectiou Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage insurance premiums that were unearned at the time of such caucellation 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 danmged, such Miscellaneous Proceeds sball be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's secretly is not lessened. Dm'lng such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or eanfings on such Miscellaneous Proceeds. If the restoration or repair is not econonucally 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 fire event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to file 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 Ihir market value of the Property intmediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sinus secured by this Security Instrument immediately betbre the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, file sums secured by this Security lnstrmnent shall be reduced by the amount of the Miscellaucous Proceeds multiplied by the following fraction: (a) the total amount of the stuns secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of file Property inunediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of file Property in which the thir ~narket value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, uuless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument wheflmr or not the stuns are then due. If the Property is abandoned by Borrower, or if, after uotice by Lender to Borrower that the Opposing Party (as defined in the next senteuce) offers to make an award to settle a claim tbr damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Iustrument, whether or not then due. "Opposing Party" means file third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Iustrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruliug that, in Lender's judgment, precludes tbrfeiture of file Property or other nmterial impairment of Lender's interest in the Property or rights mrder this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Len&r'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 providedtbr in Section 2. MFWY7770 (11/00) / 042-050611-5 initials: /~ ~'-P~ (~-6A(WY) 1ooo~1,o~ P~ 9 o~ 16 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of alnortization 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 the liability of Borrower or auy Successors in Interest of Borrower. Lender shall not be required to conm~ence proceedings against any Successor in Iuterest of Borrower or to refuse to extend time tbr paymeut or otherwise modil~ amortization of the stuns secured by fltis Security Instrument by reason of any demand made by the origi~ml Borrower or any Successors m Interest of Borrower. Any forbearance by Lender iu exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Bon'ower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13, Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covexmnts 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 fltis Security Instrument only to mortgage, grant and convey the co-signer's iuterest iii the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the stuns secured by this Security Instrument; and (c) agrees that Lender and auy other Borrower can agree to extend, modify, forbear or [m~ke any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under tiffs Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under tiffs Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in co~mection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Secarity Instrumeut, including, but not linfited to, attorneys' fees, property inspection and valuation tees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If fl~e Loan is subject to a law which sets maxinmm loan charges, and that law is fiually interpreted so that the interest or oilier loan charges collected or to be collected in connection wifli the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to thb permitted limit; and (b) any stuns already collected from Borrower which exceeded permitted 'linfits will be refunded to Borrower. Lender may choose to make this refund by reducing the priucipal owed under the Note or by nmking a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided /'or under fl~e Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices:given by Borrower or Lender in comtection with this Security Instrmnent must be in writing. Any notice to Borrower in co~mection with this 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 one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address mfless Erorrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Bon'ower's change of address, fl~en Borrower shall o~fly report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class ~miil to Lender's address stated herein unless Lender has desigxmted auother address by notice to Bm-rower. Any notice in connection with this Security instxument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the correspouding requirement under this Security Instrument. MFWY7770 (11/00) / 042-050611~5 Initials: (~)~-6A(WY). tooos}.o~ Page ~0 o* ~s Form 3051 1/01 16. Governing Law; Severability; Rules of Constrnction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which file Properly is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition agains~ agreement by contract. In the event that any provision or clause of this Security lustrmnem or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of dlis Security Instrument or the Note whicli can be given effect without die conflicting provision. As used in this Security Instrmnent: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the femi~fine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "nmy" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transfen'ed in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is file transfer of title by Borrower at a future date to a purchaser. If all or ally part of the Property or auy Interest in the Property is sold or transfen-ed (or it' Borrower is not a natural person and a beneficial interest iii Borrower is sold or transferred) without Lender's prior written consent, Lender Lnay require innnediate payment in dali .of all stuns 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 tlfis 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 irmst 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 dexnand on Borrower. 19. Borrower's iRight to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrun~ent discontinued at any time prior tO the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instntment; (b) such other period as Applicable Law might specify for file termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing fids Security Instrument. Tlmse conditions are that Borrower: (a) pays Lender all stuns which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures a. ny default of airy 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, arid ofl~er tees incurred for the purpose of protectiug Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender nmy reasonably require, to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement stuns and expenses itl one or more of the lbllowing 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, iustrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrumeut and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievauce. The Note or a partial interest in the Note (together with this Security Instrumen0 can be so'Id one or more times without prior notice to Borrower. A sale .nfight result in a change in the entity (known as file "Loan Servicer") that collects Periodic Payments due under file Note and this Security Iustrument and performs other mortgage loan servicing obligations under the Note, this Security lnstnnneut, 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 file change which will state file name and address of the new Loan Servicer, fire address to which payments should be made and arty oilier information RESPA MFWY7770 (11/00) / 042-050611-5 ~niti~s: ~ ~~ (~)~6A{WY} (ooo61.ol Page ~1 o115 Form 3051 1/01 requires in connection wifl~ a notice of transfer of servicing. If ibc Note is sold and H]ercafier H~c koan is serviced by a Loan Servicer oilier [han ~c purchaser of ~c Mole, d~c mor[EaEc ~oan serv~ch~E ob]~Eadmm [o Bozmwcr w~H remain MH] ~c Loan Servicer or bc [ransfcrrcd [o a succcsso~ Loan Servicer and arc no[ assumed by ~e Note purchaser n~ess ofl~erwxse provided by fl~e Note purchaser. Neifl~er Borrower nor Lender nmy commeuce, join, or be joined to any judicial action (as eifl~er an individual litigant or fl~e member of a class) ~at arises from fl~e o~er party's actions pursuant to ~is Security Instrument or fl~at alleges flint ~e o~er party has breached any provision of, or any duty owed by reason of, tiffs Security Instrument, until such Borrower or [ender has notified fl~e other party (wifl~ such notice given in compliance wi~ fl~e requirements of Section 15) of such alleged breach and afforded the o~er party hereto a reasonable period after fl~e giving of such notice to take corrective action. If Applicable Law provides a time period which nmst elapse betbre certain action can be taken, flint time period will be deemed to be reasmmble for proposes of tiffs paragraph. Thc uotice of acceleration and opportu~ty to cure given to Borrower pursuant to Section 22 and fl~e notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice aud opportmfity to take corrective action provisions of tiffs Section 20 21. H~ardous Substances. As used in tiffs Section 21: (a) "Hazardous Substances" are fl~ose substances defined as toxic or ha~rdous substances, pollutants, or wastes by Environmental kaw and fl~e following substances: gasoline, kerosene, other flam~mble or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, nmterials containing asbestos or fonmldehyde, and radioacti ye mterials; (b) "Enviromnental Law" means federal laws and taws of fl~e jurisdiction where fl~e Property is located ~at relate to health, safety or enviromnental protection; (c) "Envirmm~ental Cleanup" includes any respm~e action, remedial action, or removal action, as defined in Environlneutal Law; and (d) an "Enviromnental ConditimF ~neans a condition fl~at can cause, contribute to, or ofl~erwise trigger an Environmental Cleam~p. Borrower shall uot cause or pemfit fl~e presence, use, disposal, storage, or release of auy Hazardous Substances, or fl~reaten to release any Hazardous Substances, on or in fl~e Property. Borrower shall not do, ~mr allow anyone else to d0, anyflfing affecting fl~e Property (a) flint is in violation of any Enviromnental Law, (b) which creates an Environmental Condition, or (c) which, due to fl~e presence, use, or release of a Hazardous Substance, creates a condition flint adversely affects ~e value of the Property. The preceding two sentences shall not apply to fl~e presence, use, or storage on fl~e Property of sumll quantities of Hazardous Substances flint are generally recognized to be appropriate to nornml residential uses and to ~minte~mnce of fire Property (including, but not linfited to, hazardous substances iu consumer prodocts). Borrower shall.promptly give Lender written notice of (a) auy iuvestigation, claim, denmnd, lawsuit or off,er action by any govermnental or regulatory agency or private party involving the Property and any Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, including but not li~ted to, any spilling, leaking, discharge, release or fl~reat of release of any Hazardous Substance, and (c) any condition caused by fire presence, use or release of a Hazardous ~bstance which adversely affects fl~e value of fl~e Property If Bo~ower learns, or is notified by any governmental or regulatory auflmrity, or auy private party, flint any removal or other remediation of any Hazardous Substance affecting fl~e Property is necessary, Borrower shall promptly take all necessary remedial actions iu accordauce with Environmental Law. Noflfing herein shall create any obligation ou Lender for an Enviromneutal Cleanup. MFWY7770 (11/00) ! 042-050611-5 (~-6A(WY) (ooo51.ol P~ge 12 of 15 Initials: ~ Form 3051 1/Ol l, NON-UNIFORM covENANTS. Borrower and Lender further cove~mnt and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 nnless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action reqnired to cure the defanlt; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cnred; and (d) that failnre to cure the defanlt on or before the date specified in the notice may resnlt in acceleration 'of the sums secured by this Security lnstrnment and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a conrt action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the defmdt is not cored on or before the date specified in tile notice, Lender at its option may require immediate payment in full of all sums secured by this Secnrity Instrument withont further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the nmnner provided in Section 15. Lender shall publish the notice of sale, anti 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 tile person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by tiffs Security Instrument, Lender shall release this Security Instrmnent. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Iustmment, but only if fl~e fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyonung. MFWY7770 (11/00) / 042-050611-5 (~-6AIWY) ~ooo~.o~ Page 13 otlS Form 30,51 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covmmnts contained in tiffs Security hzstmment and in auy Rider executed by Borrower and recorded with it. Witnesses: DONLEE L. AULLIVl]~ -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower MFWY7770 (11/00) / 042-050611-5 (~I~6AIWY) (ooo51.o ~ Page 14 o1115 Form 3051 1/01 STATE OF WYOMING, The foregoing insU-ument was acknowledged before me this by DONLEE L AULLMAN AND ROZLYN AULLMAN, HUSBAND AND WIFE 571 Coun £y ss: 2004 My Commission Expires: Notary Public MFWY7770 (11/00) / 042-050611-5 (~6AIWY) Iooosl.ol P~c 16 of 15 Initials Form 3051 1101 ADJUSTABLE RATE RIDER (LIBOR One-Year Index (As Published In The Wall Street Journal) - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 29TH dayof APRIL, 2004 and is incorporated into and shall be deemed to ainend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security h~strument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to HOMECOMINGS FINANCIAL NETWORK, INC. (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 101 ROBERTS RD. THAYNE, WY 83127 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE' AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agree~neuts made in the Security Instru~nent, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 4.1250 changes' in the interest rate and the monthly payments as follows: %. The Note provides for 4. iNTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay ~nay change on the first day of MAY, 2007 .and on that day every 12th month thereafter. Each date on which my interest rate could change is called ~ "Change Date." 'MULTISTATE ADJUSTABLE RATE RIDER - WSJ One-Year LIBOR -Single Family- Fannie Mae UNIFORM INSTRUMENT Page 1 of 4 Initials: ~lj VMP MORTGAGE FORMS - (800)621-7291 MFCD6131 ~ (U02) / 042-050611-5 (B) The Index Begimfing with the first Change Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for one-year U.S. dollar-denonfinated deposits in the London market ("LIBOR"), as published itl The Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, tile Note Holder will choose a new index which is based upon comparable intbrmatio'n. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, die Note Holder will calculate my new interest rate by adding T!dO gAqD ONE FOURTH percentage points ( 2.2 5 0 0 %) to the Current Index. The Note Holder will then round die result of this addition to the nearest one-eighth of one percentage point (0.125 %). Subject to the limits stated in Section 4(D) below, this rounded antount will be my new interest rate uutil the next Change Date. The Note Holder will dien deternfine die amount of the monthly payment that would be sufficient to repay die unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of m.y monthly payment. (D) Li~nits on In terest Rate Changes The interest rate I ant required to pay at die first Change Date will not be greater than 6.12 5 0 % or' less than 2.2 5 0 0 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points from file rate of interest I have been Faying for die preceding 12 months. My interest rate will never be greater than 10.1250 %, (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment begi~ming on die first monthly payment date after the Change Date until the amouot of my monthly payment changes again. MFCD6131 - (1/02) / 042-05061 (~)--1 66R (01 09),01 Page 2 of 4 initials: L~ ~,~ ' Form 3189 6/01 (F) Notice of Changes The Note Holder will deliver or tmail to me a notice of any changes in ~ny interest rate and the amomtt of my nmnthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Sectiou 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited 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 interest in Borrower is sold or transferred) without Lender's prior written consent, Lender nmy require immediate payment in full of all stuns secured by this Security Instrmnent. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be subnfitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being nmde to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assmnption and fliat fl~e risk of a breach of any covenant or agreement in this Security Instn~ment is acceptable to Lender. To fl~e extent pernfitted by Applicable Law, Lender may cltarge a reasonable fee as a condition to Lender's consent to the loan assuinption. Lender nmy also require the transferee to sign an assunaption agreement that is acceptable to Lender and that obligates the transferee to keep all fl~e promises and agreements made in the Note attd in this Security Instrument. Borrower will continue to be obligated under the Note aud fids Security Instrument unless Lender releases Borrower in writing. [f Lender exercises the option to require i~mnediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by fids 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 denmnd on Borrower. lVlFCD6131- (1/02)/ 042~050611-5 ~I~--1 66R {01 09).01 Page 3 of 4 Form 3189 6/01 575 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in tiffs Adjustable Rate Rider. DONLEE L. AULLMAN -Borrower (Seal) (Seal) -Borrower -Borrower · (Seal) . (Seal) -]~orrowcr -Borrower (Seal) (Seal) -Borrower -Borrower MFCD6131- (1/02) / 042-050611-5 (~-166R (or o9).o~ Page,4 of 4 Form 3189 6/01