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HomeMy WebLinkAbout899168Principal Residential Mortgage, Inc c/o Affiliated Computer Svcs 4153 120 St, Urbandale, IA 50323L2314 Prepared By: shawna Bake Principal Residential Mortgage, 8700 Indian Creek Parkway, Suite 300, Overland Park, KS 66210 Phone NurSer: (913) 905-0800 RECi: I\:"IL D ~ f T ~ ' '~ .LifqOOLH (.,,...,U ,.~ Y CLERK 2351739-4 [SI)ace Above Tlds Lh~e For Recordh~g Data] MORTGAGE MIN 100026600023517399 115 2351739 DEFINITIONs Requested by and Return to: Recording Department First American Lenders Advantage 1801 Lakepointe Drive, Suite 111 Lewisville, TX 75057 (469) 322-25(',0 Words used in mnltiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this documeut are also provided in Section 16. (A) "Security Instrument" nleans fids document, which is dated April 9, together with all Riders to this document. (B) "Borrower" is Dean L. Burnham and Debra D. Burnham, husband and wife 2004 Borrower is the mortgagor under this Security lnstrmnent. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. lVlERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is orgatfized 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 · Page 1 of 15 , nitials' ~P ~o~ ~o~-,~oo,~,-~7([¥~ ~ 95729001 Form 3051 1/01 (D) "Lender"is Principal Residential Mortgage, Inc Lender is a Corporation orgmfized and existing under the laws of the State of Iowa Lender's address is 711 High Street, De~ Moines, IA 50392 (E) "Note" means the prmnissory note signed by Borrower and dated April 9, 2004 The Note states that Borrower owes Lender Forty Thousand Five Hundred and 00/100 Dollars (U.S. $ 4 0,500.00 ) plus interest. Borrower has pronfised to pay this debt in regular Periodic Payments and to pay the debt in full not later fllan ~lay 1, 2 019 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by tlte Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Insmmlent, plus interest. (II) "Riders" means all Riders to this Security lnstnnnem rial are executed by Borrower. The following Riders are to be executed by Borrower [check 'box as applicable]: [~ Adjustable Rate Rider ~-~ Condonfi]fium Rider ~ Second Ho]ne Rider [~ Balloon Rider [~ Plammd Udt Development Rider ~-~ 1-4 Fanfily Rider [---] VA Rider [-~ Biweekly Payment Rider ~] Other(s) [specifyl (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and ad]nilfistrative roles and orders (fl~at have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condonfi[fium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of fimds, other than a transaction origi[mted by check, draft, or similar paper instrmnent, which is initiated through an electrolfic terntinal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers ilfitiated by telephone, wire transfers, and autonmted clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of danmges, or proceeds paid by any third party (other titan insurance proceeds paid under file coverages described in Section 5) for: (i) damage to, or destn]ction of.. the Property; (ii) condenmation or other taking of all or any part of file Property; (iii) conveyance in lieu of condenmation; or (iv) ufisrepresentations of, or olnissions as to, rite value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, file Loan. (O) "Periodic Payment" means file regularly scheduled amount due tbr (i) principal and interest nnder the Note, plus (ii) any amounts under Section 3 of this Security Insm3ment. (P) "RESPA" ]neans 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 might be ameuded fronl time to time, or any additional or successor legislation or regulation that goverms the same subject inatter. As used in this Security Instrument, "RESPA" refers to all requireLnents and restrictions that are imposed in regard to a "federally related nmrtgage loan" even if file Loan does not qualify as a "federally related mortgage loan" under RESPA. ~-6A(WY} Iooosto~ Page 2 of 15 (Q) "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 Secm'ity Instmmeut. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, exteusions and modifications of the Note; and (ii) the perfornmnce of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, ~with power of sale, the following described property located in the County of L±ncoln : [Type of Recording Jurisdiction] [Name of Recording Jurisdictionl LOT 10, LOST CREEK P, ANCHETTES, ACCORDING TO THE RECORDS OF LINCOLN COUNTY, WYOMING, 'ACCORDING TO THE PLAT FILED IN THE OFFICE OF THE LINCOLN COUNTY CLERK. Parcel ID Number: 12341808102011 697 Alford Way, Thayne ("Property Address"): which currently has the address of [Streetl [City] , Wyonfing 8 312 7 [Zip Code] TOGETHER WITH all the improveinents now or hereafter erected on the property, and all easements, appurte~mnces, and fixtures now or hereafter a part of file property. All replacements and additions shall also be covered by this Security Instrument. All of file tbregoiug is referred to in this Security Instrument as the "Property." Borrower uuderstands and agrees that MERS holds only legal title to file interests granted by-Borrower in this Security lnstrumeut, but, if necessary to comply with law or custom, MERS (as nonfinee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those iuterests, including, but not linfited to, the right to tbreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrmnent. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed a~d has the right to mortgage, grant and convey the Property and that the Property is unencmnbered, except for encumbrances of record. Borrower warrants and will defend generally the title to file Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for ~mtional use and non-mfit'om~ covenants with linfited variations by jurisdiction to constitute a mfifonn security instrument covering real property. (~-6A{WY) (ooo~).o~ Page 3 ot 15 UNIFORM COVENANTS. Borrower and Lender covenant and agree as 'follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay wheu due the principal of, and interest on, the debt evidenced by the Note and any · prepayment charges and late Charges due uuder the Note. Borrower shall also pay Muds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any Ch¢ck or other iustrument received by Lender as payment under the Note or this Security Iustmment is returned to Lender uupaid, Lender amy require that any or all subsequent payments due under the Note and this'~ Security Instrument be ~de in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, ba~ 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, i~tnnnentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location desig~mted iu the Note or at such other location as may be designated by Lender in accordance with the notice provisions iu Section 15. Lender nmy return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment i~ufficient to briug the Loan curreut, without waiver of any rights hereunder or prejudice to its rights to reMse such payment or partial payments in the Mture, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scbethfied due date, then Lender need not pay interest on mmpplied Mnds. Lender ~y hold such mmpplied Muds until Borrower nmkes payment to bring the Loan current. If Borrower does not do so within a reaso~mble period of time, Lender shall either apply such flmds or return thein to Borrower'. If uot applied earlier, soch Muds Will be applied to ~e outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower nfight have now or iu the thture against Lender shall relieve Borrower froln nmking payments due nnder the Note and this Security Iust~ment or perfornfing the covenants and agreements secured by this Security Instrument. 2. Application o~' Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in fl~e tbllowing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it becalne due. Any renmining amounts shall be applied first to late charges, second to any off, er amounts due under this Security h~trument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower tbr a delinquent Periodic Payment which iucludes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and fl~e late charge. If more than one Periodic Payment is outstanding, Lender amy apply any payment received kmn Borrower to the repaymeut of the Periodic Payments if, and to the exteut that, each payment can be paid in ~1l. To the extent that any excess exists after the payment is applied to the dali payment of one or ~nore Periodic Payments, such excess amy be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to priucipal due nnder · e Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Ite~. Borrower shall pay to Lender ou the day Periodic Payments are due under the Note,.until the Note is paid in ~dl, a sma (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Pzoperty; (b) leasehold payments or ground rents on the Property, if any; (c) premimns lbr any and all insurance required by Lender under Section 5; and (d) Mortgage h~urance pre,Mums, if any, or any sunm payable by Borrower to Lender in lieu of the payment of Mortgage Insurance prenfiums in accordance with the provisions of Section 10. These items are called "Escrow Itex~." At origination or at any time during the term of the Loan, Lender ~y require that Conmmnity Association Dues, Fees,. and Assessments, if any, be escrowed by Bo=ower, and such dues, I~es and assessments shall be an Escrow Item. Borrower shall promptly ~rnish to Lender all notices of amounts to be paid under tiffs Section. Borrower shall pay Lender the Funds tbr Escrow Items unless Lender waives Borrower's obligation to pay~ the Funds for any or all Escrow Items. Lender nmy waive Borrower's obligation to pay to Lender Funds tbr any or all Escrow Items at any time. Any such waiver may otfly be in writing. In the event of such waiver, Borrower shall pay directly, when and Where payable, the amounts . ~g6A{WY) iooosLol P.s, 4o'lS ~ Form 3051 1/01 due for any Escrow Itenu for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such tilne period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall tbr all Purposes be deemed to be a cove~mnt and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursUaut to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated uuder Section 9 to repay to Lender any such amount. Lender nmy revoke the waiver as to any or all Escrow Ite~ns at any time by a notice given in accordance with Section 15 'and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to Pernfit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estinmte the amount of Funds due on the basis of current data and reaso~mble 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 an institution whose deposits are so insured) or in any Federal Hoine Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying file Funds, annually analyzing the escrow account,' or verifying the Escrow Itemsl unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eanfings 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 axmual accounting of the Funds as required bY RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender'shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the 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 notify Borrower as required by RESPAi and Borrower shall pay to Lender the amount necessary to nntke up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Conununity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them'in the manner provided in Section 3. 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 nhanner acceptable to Lender, but only so long as Borrower is perfornfing such agreement; (b) contests the lien in good faith by, or defends against entbrcement of the lien in, legal proceediugs which in Lender's opinion operate to prevent the entbrcement of the lien wlfile those proceedings are pending, but only until such proceedings are concluded; or (c) secures/'rom 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 can attain priority Over fids Security InstrUment, Lender may give Borrower a notice identifying the (~1,~-6 A(WY) ~ooo~.o'~ Page Form 30§1 1/01 lien. Within 10 days of the date on which that uotice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender nmy require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in cotmection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not linfited to, earthquakes and floods, lbr which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during file 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 uareasonably. Lender nmy require Borrower to pay, in com~ection wifl~ this Loan, eifl~er: (a) a one-time charge tbr flood zone determination, certification and tracking services; or (b) a one-time charge tbr flood zone determination and certification services and subsequent charges each time rmnappings or sinfilar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any tees intposed by the Federal Emergency Nlanagement Agency in com~ection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to nmintain any of file coverages described above, Lender nmy 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. There/bre, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost o}' the insurance coverage so obtained nfight siguificantly 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 Instrument. These amounts shall bear interest at the Note rate from file date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment All nksurance policies required by Lender and renewals of such policies shall b~ 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 bare 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 da~nage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender ~nay make proof of loss if not xnade promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of file Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress paytnents as the work is completed. Unless an agreement is made in writiug or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earmngs on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not econonfically feasible or Lender's security would be lessened, the insurance proceeds shall be applied te the stuns secured by this Security Instnnnent, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related nhatters. 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 nuty negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned preufiums paid by Borrower) under all insurance policies coveriug the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrumeut aud shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, u~fless Lender otherwise agrees in writing, which consent shall not be unt-easonably withheld, or mfless exte~mating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance anti Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or comnfit waste on the Property. Whether or not Borrower is residing in file Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. U~fless it is detemfined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in com~ection 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 fl~e insurance or condeuumtion proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the co~npletion of such repair orrestoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleadiug, or inaccurate iuformation or statements to Lender (or failed to provide Lender with nmterial information) in co~mection with the Loan. Material representations include, but are not linfited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perfo:rm the covenants and agreements contained in this Security Instrmnent, (b) there is a legal proceeding that nfight significantly affect Lender's interest in file Property and/or rights uuder this Security Instrument (such as a proceeding in bat~ruptcy, probate, for condemnation or forfeiture, for entbrcement of a lien which may attain priority over this Security Instrumeut or to enforce laws or regulations), or (c) Borrower has abandoned file Property, theu Leuder nmy do and pay for whatever is reasonable or appropriate to protect Lender's iuterest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any stuns secured by a lien which has priority over fids Security Instrument; (b) appearing in court; and (c) payiug reasonable (~)~-6AIWYI Iooosl ol Page 7 of 16 attorneys' fees to protect its interest in the Property and/or rights under this Security htstmment, including its secured position in a bankruptcy proceeding. Securing the Property inCludes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, elinfinate building or other code violations or dangerous couditions, and bare utilities turned on or off. Although Lender tmty take action under this Section 9, Lender does not have to do so and is not uuder any duty or obligation to do so. It is agreed that Lender incurs no liability for not takiug auy or all actions authorized under this Section 9. Any amounts disbursed by Lender under aris Section 9 shall become additional debt of Borrower secured by fids Security Instrument. Ttiese amounts shall bear interest at the Note rate t¥om the date of disbursement and sball be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Iustrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless 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 prenfiums required to maintain the Mortgage Insurance iii effect. If, tbr any reason, the Mortgage Insurance coverage required by Lender ceases to be available from file mortgage insurer that previously provided such insurance and Borrower whs required to nmke separately designated payments toward file prenfiums tbr Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from au alternate mortgage insurer selected bY Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amouut of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of lVlortgage Insurance. Sm:h loss reserve shall be non-reflmdable, notwithstanding the fact that the Loan is ultin~'~tely paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and fur the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums tbr Mortgage Insm'ance. If Lender required Mortgage Insurance as a condition of nmking the Loan and Borrower was required to make separately designated payments toward file premimns for Mortgage Insurance, Borrower shall pay file premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to file Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in three from time to time, and nmy enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisthctory to the mortgage insurer and the other party (or parties) to these agreements. These agreements nmy require the mortgage iusurer to lnake payments using any source of funds that the mortgage iusurer may have available (which nmy include funds obtained fi'oln Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of die Note, another insurer, any reinsurer, any other entity, or any affiliate of auy of the tbregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or-reducing losses. If such agreelnent provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any snch 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 refund. (h) Any such agreements will not afl'ecl the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection 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 ternfiuated aUtolnatically, and/or to receive a refund of any Mortgage lnsuraoce premiums that were unearned at the time of such cancellation or termioation. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneons Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged', such IVliscellaneous Proceeds shall be applied to restoration or repair of the Property, if file restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair anti restoration period., Lender shall have the right to hold snch 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 tbr file repairs and restoration in a single disbursement or in a series of progress payments as file work is completed. Unless an agreement is made ill writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Le~tder shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If fire restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to file sums secured by this Security [nstn,nent, whether or not thell due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided tbr iu Section 2. In file event of a total taking, destruction, or loss in wdue of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by tiffs Security Instrument, whefller or not then due, wifl~ fl~e excess, if any, paid to Borrower. In fl~e event of a partial taking, destruction, or loss in value of file Property in which the fair n~arket value of fire Property inune'diately before the partial taking, destruction, or loss in value is equal to or greater fl~an fl~e amount of the sums secured by Offs Security Iustnonent nnmediately betbre the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, rile stuns secured by tiffs Security Instrument shall be rednced by the amount of the Miscellaneous Proceeds nmltiplied by the following tYaction: (a) fl~e total amoont of the sums secured immediately before file partial taking, destruction, or loss in wdue divided by (b) the fair market wdue of file Property iuunediately betbre the pal:tial taking, destruction, or loss in vahte. Any balance shall be paid tu Borrower. In the event of a partial taking, destruction, or loss in value of fl~e Property in which the fitir market value of tile Property immediately before file partial taking, destruction, or loss iu value is less than the amount of rile sums secm-ed immediately belbre file partial taking, destntction, or loss in valne, unless Borrower and Lender ofl~erwise agree in writing, file Miscellaoeous Proceeds shall be applied to file sums secured by tiffs Security Instrument whether or not the sums are then due. If the Property is ab~;ndoned by Borrower. or if, after notice by Lender to Borrower that tile Opposing Party (as defined in fl~e next sentence) offers to nu~ke an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply fl~e Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Securit/Instnmlent, whefller or oot fl~en due. "Opposing Party" nteaus the third party fl~at owes Borrower Miscellaneous Proceeds or the party against whom Burrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in defimlt if an3, action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result ill forfeiture of the Property or other nhaterial impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing file acuon or proceeding to be disntissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for da~mges that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender All Miscellaneous Proceeds that are not applied to restoration or repair of file Property shall be applied in file order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time tbr payment or modification of aniortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release die liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refitse to extend time for payment or otherwise modify amortization of the sums seoUred by tltis Security Instrument by reason of any demand made by the original Borrower or any Successor5 in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without lhnitation, Lender's acceptance of payments from diird persons, entities or Successors in Interest of Borrower or in amounts less than the alnount 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 covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest itt the Property under the terms of this Security Instrument; (b) is not persmmlly obligated to pay the sums secured by fids Security Instrument; and (c) agrees that Lender and any oilier Borrower can agree to extend, nmdify, tbrbear or make any acconmrodations with regard ~o rite 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 fids Security Instrument iu writing, and is approved by Lender, shall obtaiu all of Borrower's rights and benefits under Otis Security Instrulnent. Borrower shall not be released front Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release iii writing. The covenants and agreements of this Security Instrument shall bi~d (eXcept as provided in Sectiou 20) and benefit the successors attd assigns of LeMer. 14. Loan Charges. Lender may charge Borrower tees for services performed iu Connection with Borrower's default, tbr the pm'pose of protecting Lender's interest in die Property and rights uuder this Security Instrument, including, but not linfited to, attorneys' Ices, property inspectiou and valuation tees. In regard to arty other tees, the absence of express authority itt this Security Instrumeut to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender nmy not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximmn loan charges, aud 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 permitted linfit; and (b) any sunks already collected fi'om Borrower which exceeded pemfitted limits will be refuuded to Borrower. Lender may choose to nmke this refund by reduciug the priucipal owed under the Note or bY making a direct payment to Borrower. If a retired reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under rite Note). Borrower's acceptance of any such retired made by direct payment to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in com~ectiou with this Security Instrument must be m writing. Auy notice to Borrower iu connection with Oils Security Instrument shall be deemed to have been given to Borrower when nmiled 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 unless Borrower bas designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall mdy 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 tt or by mailing it by first class mail to Lender's address stated herein mdess Lender has designated auother address by notice to Borrower. Any notice iu comtection with this Securi[y lnstrumen[ shall not be deemed to have been given to Lender until actually recetved by Lender. If any notice required by this Security lustrun~ent is also required under Applicable' Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. Initial~ _~ 16. Governing Law; Severability; Rules Of Construction. This Security Instrmnent shail be governed by federal law and ~the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any require~nents and linfitations of Applicable Law. Applicable :Law nfight explicitly or implicitly allow the parties to agree by contract or it nfight be silent, but such silence shall uot be construed as a prohibition against agreement by contract. In the event that any provision or clause of tiffs Security Instrument or the Note conflicts wid~ 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. As used in this Security Instrument: (a) words of the masculine geuder shall mean and include corresponding neuter words i or words of the fenfinine gender; (b) words itl the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As. used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installmeut 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 may require immediate payment in full of all sums secured by fllis Security Instrument. However, tltis option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days. from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower dills to pay these sums prior to the expiration of fids period, Lender nmy invoke any remedies permitted by this Security Instrument without ~rther nodce or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument disconduued 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 II~strument; (b) such oilier period as Applicable Law nfight specify for the ternfination of Borrower's right to reinstate; or (c) entry of a judgxnent en/brcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and file Note as if no acceleration had occurred; (b) cures any default of any other covenants or agree~nents; (c) pays all expeoses incurred in entbrcing this Security lnstruJnent, including, but not limited to, reasonable attorneys~ fees, property inspection and valuation fees, and other tees incurred tbr the m " purpose of protecting ender s interest in file Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in file Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender lnay require that Borrower pay such reinstatement sums and expenses in one or ~nore of the following forms, as selected by Lender: (a) cash; (b) ~noney order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as iif no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrmnen0 can be sold one or more time~ without prior notice to Borrower. A sale might result in a change in file entity (known as file 'Toan Servicer") fllat collects Periodic Payments due under the Note and fids Security Instrument and performs other mortgage loan servicing obligations under file Note, this Security Instrument, and Applicable Law. There also nfight be one or more changes of file Loan Servicer unrelated to a sale of file Note. If there is a change of the Loan Servicer, Borrower will be given written notice of file change which will state the name and address of the new Loan Servicer, the address to which payments should be nude and any other intbrmation RESPA ~-6A(WY) (ooosl.o~ Page 756 requires in comlection with a notice of transfer of servicing. If the Note is sold and thereafter the Lo~il is serviced by a Loan Service. r other than the purchaser of the 'Note, file ~nortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. ' Neither Borrower nor Lender may conm~ence, join, or be joined to any judicial action (as either an individual litigant or fl~e ~nember of a class) that arises from file other party's actions pursuant to this Security Instrument or that alleges that file other party has breached any provision of, or any duty owed by reason of, this Security Instrmnent, until such Borrower or Lender has notified the other party (with such uotice given in compliance with the requirements of Section 15) of such alleged breach and aflbrded the other party hereto a reaso~mble period after fl~e giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of tiffs paragraph. The lmtice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to B3rrower pursuant to Sectiou 18 shall be deemed to satisfy file notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in Otis Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Envirolm~ental Law aud the following substances: gasoline, kerosene, other flarm~mble or toxic petrolemn products, toxic pesticides and herbicides, volatile solvents, materials contai~fing asbestos or tbrmaldehyde, and radioactive nmterials; (b) "Environmental Law" means federal laws and laws of file jurisdiction where the Property is located that · relate to health, safety or enviromnental protection; (c) "Enviromnental Cleanup" includes any response action, rmnedial action, or .removal action, as defined in Enviro~m~ental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. ' ' Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or iu the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) Which creates an Enviro~m~ental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nornml residential uses and to nmintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any govermnental or regulatory agency or private party involving file Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, including but not linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects file value of the Property. If Borrower learns, or is notified by any govenm~ental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions m accordance With Enviromnental Law. Noflfing herein shall create any obligation on Lender for an Environmental Cleanup (~-6A(WY) tooosl.o~ Page 12 o1' 15 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: ' 22. Accelerationl 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 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may resnlt in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of inteni 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 manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the 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 secnred by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all stuns secured by tiffs Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a tee releasing this Security Instrument, but only if the fee is paid to a flfird party tbr services rendered and fl~e charging of the fee is pemfitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~)~-6A(WY) Iooos).o~ Page 13 of 1 {5 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrmnent and in any Rider executed by Borrower and recorded with it. Witnesses: Dean L Burnham -Bon'ower ebra D Burn?mm -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Bor,'ower -Borrower (Seal) (Seal) -Borrower -Borrower (~}~6A(WY) 1ooo5}.o~ e~, ]4 ot ~5 Form 3051 1/01 759 STATE OF WYOMING, Lincoln County ss: The foregoing instrulnent was acknowledged before lne fllis /t2~/~---~ ~).t~d54~ ~)/Dj~_l)_..] 2(~ by Doan L. Burnham and Dobra D. Burnham, husband and wife My Cmnmission Expires: Notary Public Jl Lincoln County J~ Wyoming L ~ec 11~,~ (~-6A(WY) Iooo51.o~ Page 15 of 1 § Form 3051 1/01