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HomeMy WebLinkAbout899170Return To: HOMECOMINGS FINANCIAL NETWORK. INC ONE MERIDIAN CROSSING. S'D3 100 MINNEAPOLIS, MN 55423 Loan Number: 042-050105-8 Prepared By: HomeComings Financial Network 14850 Quorum Drive, Suite 500 Dallas, TX 75254 Lif,ICOLN (':OUf'-.ITY CLERK [Space Above Tlds Lhie For Recording Data] MORTGAGE MIN 100062604205010582 DEFINITIONS Words used in nmltiple sections of fltis docmnent are defined below and off, er words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in fills document are also provided in Section 16. (A) "Security Instrument" means tiffs document, which is dated together with all Riders to this document. (B) "Borrower" is AARON/~k MILLER, A SINGLE MAN MAY 7TH, 2004 Borrower is file mortgagor under this Security Instm~nent. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation fllat is acting solely as a nonfinee Ibr Lender and Lender's successors and assigns. MERS is the mortgagee under this Security htstrument. MERS is organized and existing under tile 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 (Il/00) , 042-050105~8 (~®-6A(WY) Page ~ of VMP MORTGAGE f:ORMS - (800}521-7291 Form 3051 1/01 (D) "Lender" is HOMECOMINGS FINANCIAL NETWORK INC. Lender is a CORPORATION organized and existing under the laws of DELAWARE Lender's addressis 14850 QUORUM DRIVE, SUITE 500 DALLAS, TX 75254 0g) "Note" means the promissory note signed by Borrower and dated MAY 7TH, 2 0 04 The Note states that Borrowei' owes Lender ONE HUNDRED SIXTY FIVE THOUSAND AND NO/10 0 Doll ars (U.S. $ 16 5,0 0 0.0 0 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay fl~e debt in full not later than ,JUNE 1ST, 2034 (F) "Property" means the ploperty that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under file Note, and all sums tine under this Security lnstru,nent, plus interest. (H) "Riders" means all Riders to this Security Instru~nent that are executed by Borrower. The following Riders are to be executed by Borrower [check 'box as applicable]: [---] Adjustable Rate Rider [~ Condonfi~fium Rider [~ Second Home Rider [--~ Balloon Rider ~ Platmed Unit Development Rider ~ 1-4 Family Rider [--] VA Rider '[--'] Biweekly Payment Rider ['] Other(s) [specifyl (I)' "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and adtninistrative rules and orders (that have file effect of law) as well as all applicable fi~nd, 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 condonfilfium association, homeowners association or sinfilar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction'originated by check, draft, or sinfilar paper instrument, which is i~fitiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Snch term includes, but is not linfited to, point-of-sale transfers, automated teller machine transactions, transfers i~fitiated by telephone, wire transfers, and autonmted clearinghouse transfers. (L) "Escrow Items" ineans those items that are described ill Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of darmqges, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, file Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condennmtion; or (iv) nfisrepresentations of, or onfissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against file nonpayment of, or default on, the Loan. (O) "Periodic Payment" nmans the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) ally alnounts under Section 3 of this Security Instrmneut. (P) "RESPA" means.the Real Estate Setdement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.I~.R. Part 3500), as they nfight be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related ~nortgage loan" even if file Loan does not qualify'as a "federally related nmrtgage loan" nnder RESPA. ~ MFWY7770 (11/00) / 042-050105:8 (~6A{WY) Iooo~l.o~ Pa~e 2 of 15 Form 3051 1/01 (Q) "Successor in Interest of, Borrower" means any party that has taken title to the Property, whether or not that party has assumed. Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of fl~e Note; and (ii) the performance of Borrower's cove]rants and agreemeuts 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 assigus) and to the successors and assigns of MERS, twith power of sale, file tbllowing described property located in file COUNTY of LINCOLN [Type of Recording lurisdiction] [Name of Rec~ rdin~ Jurisdiction] LOT 132 OF STAR VALLEY }{ANCH PLAT 5, LINCOLN COUNTY, WYOMING, AS DESCROBED ON THE OFFICIAL PLAT THEREOF. Parcel ID Number: 12-3419-01-2-04-043-00 193 LILAC DRIVE THAYNE ("Property Address "): which currently has file address of [Streetl [City] , Wyoufing 83127 [Zip Code] TOGETHER WITH all file improvements now or hereafter erected on the property, and all easements, appurte~mnces, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of file foregoing is referred to in this Security Instrulnent as the "Property." Borrower understands and agrees that MERS holds only legal title to fl~e interests granted by Borrower in tiffs Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security hlstrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey fl~e Property and that fl~e Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encmnbrances of record. THIS SECURITY INSTRUMENT combines mfiform covemants for natioiml use and non-uniform covenants with linfited variauons by jurisdiction to constitute a unilbrm security instrument covering real property. MFWY7770 (11/00) / 042-050105-8 (2~-6A(WY) Page3of~S Form 3051 1/01 UNIFORIvl COVENANTS. Borrower and Lender covelmnt and agree as Ibllows: 1. Payment ot' Principal, Interest, Escrow Items, Prepayment Charges, and Late Charkes. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay fuuds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be nmde in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subseqnent payments tine under rite Note and this Security Instrun~ent be nmde in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bald.: 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) Electrmfic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as nmy be'designated by Lender in accordance with the notice provisions in Section 15. Lender nmy return any payment or partial payment if the paymen! or partial payments are insufficient to bring fl~e Loan current. Lender may accept any payment or partial payment insufficient to bring file Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the fl'}ture, but Lender is not obligated to apply such payments at rite time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosm'e. No offset or claim which Borrower might have now or in fl~e future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or perfornfing the covenants and agreements secured by this Security Instrmnent. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following 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 became due. Any renmining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a snfficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To fl~e extent that any excess exists after fl~e paymem is applied to file full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Auy application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under file Note shall not extend or postpone tile due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pa), to Lender ou the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which call attain priority over this Security lnstruxnent as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of rite payment of Mortgage Insurance prenfiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Counnmfity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under fids Section. Borrbwer shall pay Lender the Funds fur Escrow Items unless Lender waives Borrower's obligation to pay fl~e Funds for any or all Escrow Items. Lender nmy waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver ntay only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, rte amounts MFWY7770 (11/00) / 042-050105-8 (~-6AIWY) Iooosl.Ol Page 4 of 15 Form 3051 1101 due .for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall funfish 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 Instrmnent, as dsc phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower tails to pay the amoum due for an Escrow Item, Lender nmy exercise its rights uuder Sectiou 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender nmy 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 iu such amounts, flint are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply file Funds at file time specified uuder RESPA, and (b) not to exceed the nmximum amount a lender can require under RESPA. Lender shall estinmte the amount of Funds due ou the basis of current data and reasonable estimates of expenditures of future Escrow Items or odlerwise 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 file Escrow Items no later fl~an fl~e time specified under RESPA. Lender 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 permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the punds, Lender shall not be required to pay Borrower any interest or eandngs on fl~e Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, wifl~out charge, an annual accounting of the Fm~ds as required by RESPA. If there is a sm-plus 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 iu escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender fl~e amount necessary to make up the shortage in accordance wifl~ 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 RESPA, and Borrower shall pay to Lender the amount necessary to rru~ke up the deficiency in a~cordance 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 Comnm~fity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the maimer provided iu 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 maturer acceptable to Lender, but mdy so long as Borrower is perfornfing such agreement; (b) contests fl~e 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 tuffy until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the MFWY7770 (11/00) / 042-050105-8' II~-6A(WY) looo~}.o~ Initials: Form 3051 1/01 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Leuder may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in comlection wi tit this Loan. 5. Property Insurance. Borrower shall keep file improvmnents now existing or hereafier erected on the Property insured against loss by fire, hazards included within file term "extended coverage," and auy oflter hazards including, but not linfited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be tnaintained in the amounts (includiug deductible levels) aud for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of file 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 uot be exercised unreasonably. Lender nmy require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and trackiug services; or (b) a one-time charge lbr flood zone determination and certification services and subsequent charges each time renmppings or similar changes occur which reasonably nfight affect such deternfination or certification. Borrower shall also be responsible for file paymen£ of any fees imposed by the Federal Emergency Management Agency itl cmmection with the review of any flood zone deter]nination resulting from an objection by Borrower. If Borrower fails to maintain any of fl~e coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under ilo 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 file Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost bf the insurance coverage so obtained might significantly exceed thc 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 fi'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 file right to hold the policies and reuewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premimns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise reqtfired by Leuder, for damage to, or destruction of, the Property, such policy shall include a standard lnortgage clause and shall name Lender as mortgagee and/or as an additioual loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Leuder may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any iusurance proceeds, whether or not the underlying insurance was' required by Lender, 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 and restoration period~ Leuder shall have the right to hold such insurance proceeds 'until Lender has had an opportmfity to inspect such Property to ensure tile work has been co~npleted to Lender's satisfaction, provided that such i~tspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoratiou in a single payment or in a series of progress payments as file work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower 'shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If file restoration or repair is. not ecOnonfically feasible or Lender's security would be lessened, file iusurance proceeds sball be applied to the sums secured by this Security Instrument, whether or not then due, with MFWY7770 (11/00) / 042-050105-8 (~-6A(WY) (ooosl.o~ Initials: ~ Page 6 of 15 Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond wiflfin 30 days to a notice froln Lender fllat the insurance carrier has offered tO settle a claim, then Lender nmy negotiate and settle fl~e claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires file 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 file Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned prenfiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender rrmy use the iusurance 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 file Property as Borrower's principal residence within 60 days after the execution of fids Security Instrmnent and shall continue to occupy file Property as Borrower's principal residence for at least one year after the date of'occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably wifld~eld, or mfless extenuating circmnstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection ot' the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall nmintaiu the Property in order to prevent the Property .from deteriorating or decreasing in value due to its condition. Uuless it is determined pursuant to Section 5 that repair or restoration is not econoniically feasible, Borrower shall promptly repair the Property if danmged to avoid further deterioration or danmge. If insurance or condennmtion proceeds are paid in connection with danmge to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring fl~e Property mdy if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or itl a series of progress payments as the work is completed. If file insurance or condmrmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of .such repair or restoration. Lender or its agent may make reasomble entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of file improvements on tile Property. Lender shall give Borrower notice at the time.of or prior to such an interior inspection specifying such reasmmble cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities actiug at file direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or itmccurate intbrmation or statements to Lender (or failed to provide Lender with material iufornmtim0 iu conuection wifl~ 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 Uuder this Security Instrmnent. If (a) Borrower tails to perforln the covenants and agreements contaiued in this Security Instrument, (b) fl~ere is a legal proceeding fl~at m/ght significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, tbr condennmtion or lbrfeiture, tbr enforcement of a lien which nmy attain priority over fltis Security Instrument or to entbrce laws or regulations), or (c) Borrower has abandoned the Property, theu Lender nmy do and pay for whatever is reasonable or appropriate to protect Lender's interest in fl~e Property and rights under this Security Instrument, inchiding protecting and/or assessing the value of file Property, and securing and/or repairing the Property. Lender's actions can include, but are not liufited to: (a) paying any sums secured by a lien which has priority Over this Security Instrmnent; (b) appearing in court; and (c) paying reasonable MFWY7770 (11/00) / 042-050105-8 (~-6AIWY} ~ooo5~.o~ Page7o[ 15 Form 3051 1/01 attorneys' fees to protect its interest iu the Property and/or rights under fids Security Instrument, iucluding its secured position in a bankruptcy proceeding. Securing the Property includes, but is not linfited to, entering ~e Property to ~ke repairs, change locks, replace or board up doors and windows~ draiu water from pipes, elit~mte building or other code violatio~ or dangerous conditious, and have utilities turned on or off. Al~ough Lender nmy take action under this Sectiou 9; Lender does uot have to do so and is not under any duty or obligation tc do so. It is agreed that Lender incurs no liability tbr not taking any or all actions authorized under this Section 9. Kny amounts disbursed by Lender under fids Section 9 shall become additional debt of Borrower secured by fids Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be pay4~ble, wifl~ such interest, upon notice from Lender to Borrower requesting payment. If fids Security Instrument ~is on a leasehold, Borrower shall comply wifl~ all the provisions of the lease. If Borrower acqnires I~e: title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing, 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making fl~e Loan, Borrower sball pay fl~e premiums required to maintain the Mortgage Iusurance in eft~ct. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from fire mortgage insurer that previously provided such i~urance and Borrower was required to nmke separately desig~mted payments toward the prenfiun~q lbr Mortgage Insurance, Borrower shall pay ~e prendums required to obtain coverage substantially equivalent to the Mortgage Iusurance previously in effect, at a cost substantially equivalent to the cost to Borrower of fl~e Mortgage Insurance previously in efl~ct, from an altenmte mortgage insurer selected by Lender. If substantially equivalent Mortgage huurance coverage is not available, Borrower shall conti~me to pay to Lender the amount of ~e separately desig~mted payments that were due when fl~e insurance coverage ceased to be in ef/~ct. Lender will accept, use and retain these payments as a non-rehndable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refimdable, notwithstanding fl~e fact that fl~e Loan is ultin~ttely paid in ~ll, and Lender shall not be required to pay Borrower any interest or ear.rigs on such loss reserve. Leuder can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period fl~at Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the preufiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making fl~e Loan and Borrower was required to make separately desiguated payments toward the pre.urns tbr Mortgage Insurance, Borrower shall pay the pre,mums required to u~qintain Mortgage Insurance in effect, or to provide a non-re~ndable loss reserve, until Lender's requirement tbr Mortgage Insurance ends in accordance wifl~ any written agreement between Borrower and Lender providing for such ternfixmtion or until rent'radon is required by Applicable Law. Nothiug in this Section 10 affects Borrower's obligation to pay interest at fl~e rate provided in the Note. Mortgage Insuranhe reimburses Lender (or any entity that purchases the Note) tbr certain losses it ~my incur if Borrower does not repay the Loan as agreed. Bon-ower 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 u-~y enter into' agreements wifl~ other parties that share or modi~k their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the off,er party (or parties) to fl~ese agreements. These agreements may require the mor[gage insurer to ~nake payments using any source of ~nds that the mortgage insurer n~y have available (which nuy include funds obtained from Mortgage Insurance prenfiuum). As a result of fl~ese agreements, Lender, any purchaser of the Note, anofl~er insurer, any reinsurer, ' any other entity, or any affiliate of any of the foregoing, n~y receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Moi'tgage Insurance, iu exchange for sharing or modit~ing the mortgage insurer's risk, or reducing losses. If such agreement provides flint an affiliate of Lender takes a share of the insurer's risk in exchange lbr a share of the preminms paid to fl~e insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreemen!s will not affect the amounts tlmt Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreemeuts will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any rebind. MFWY7770 (11/00) / 042-050105-8 (~-6A(WY) (ooos}.o~ P~ge 8 ot 15 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or 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 ternfinated autmnatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaueous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. 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 loay 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 earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to fl~e stuns secured by this Security Instrument, whefl~er or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided ~br in Section 2. In the event of a total taking, destruction, or. loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately betbre the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Iustrument immediately before the partial tahng, destruction, or loss in value, mtless Borrower and Lender otherwise agree in writing, the sums secured by tiffs Security Instrument shall be reduced by the amount of the Miscellaueous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property innnediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market Value of the Property innnediately before the partial taking, destruction, or loss in value is less fl~an the amount of the sums secured inunediately before fl~e partial taking, destruction., or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If fl~e Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next senteuce) offers to make an award to settle a claim for damages, Borrower/'ails 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 fl~e sums secured by this Security Instrument, whether or not then due.. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party agaiust whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in de/hUlt if any action or proceeding, whether civil or crinfinal, is begun flint, in Lender's judgment, could result in forfeiture of fl~e Property or other material 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 the action or proceeding to be dismissed with a rufing that, in Lender's judgment, precludes tbrfeiture 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 tbr damages that are attributable to fl~e impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided Ibr in Section 2. MFWY7770 (11/00) / 042-050105-8 l~-6AIWY) Iooosl.o~ ea~e~ot]S Form 3051 1/01 770 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of fl~e time for payment or modification of amortization of fl~e 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 any Successors in Interest of Borrower. Lender shall not be required to conunence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by file origi~ud Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising ally right or remedy including, without linfitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of ally 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 Instrutnent but does not execute the Note (a "co-signer"): (a) is co-sighting fids Security Instrument only to mortgage, grant and convey the co-siguer's interest in the Property under the terms of this Security Instrmnent; (b) is not personally obligated to pay tile stuns secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any acco~mnodations with regard to the terms of fids Security Instrument or the Note without file co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of BorroWer who assutnes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under fids Security Instrument. Borrower shall not be released fi'om Bo~xower's obligations and liability under Otis Security Instnm~ent 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 nmy charge Borrower fees for services performed in comlection wifl~ Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under riffs Security Instrument, including, but not linfited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific tee to Borrower shall not be construed as a prohibition on file charging of such tee. Lender may not charge fees fllat are expressly prohibited by fids Security lnstrmnent or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is filmlly interpreted so that file interest or other loan charges collected or to be collected in com~ection with the Loan exceed file permitted limits, then: (a) any such loan charge shall be reduced by the a~nount necessary to reduce the charge to the permitted limit; and (b) any sums ah'eady collected from Borrower which exceeded pernfitted linfits will be refunded to Borrower. Lender may choose to make fids refund by reducing fl~e principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided tbr under the Note).~ Borrower's acceptance of any such refund nmde by direct paytnent to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of such overcharge. 1.5. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in com~ection with this 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 coi~stitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be file Property Address unless Borrower has designated a.substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, dieu Borrower shall only report a cbange of address through that specified procednre. There may be only one desig~ated notice address under fids Security Instrument at any one time. Any notice to Lender sball be given by delivering it tlr by mailiug it by first class mail to Lender's address stated herein unless Lender has designated anofl~er address by notice to Borrower. Any notice in com~ection with this Security Instrument shall not be deemed to have been given to Leuder until actually received by Lender. If any notice required by this Security Instrmnent is also required under Applicable Law, the Applicable Law requiretnent will satisfy the correspondiug requirement under this Security Instrument. MFWY7770 (ll~/00) / 042-0501054 (~-6A(WY} Iooo~).ol vao.~Oo~6 Form 3051 1/01 1.6. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction itl which the Property is located. All rights and obligations contained in this Security Instrument are subject to any reqmrements and linfitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it ]night be silent, but such silegce shall not be construed as a prohibition against agreement by contract. In the event that any provision br clause of fids Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of fids Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of rite masculine gender shall mean and include corresponding neuter words or words of the fenfinine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) fl~e word "nary" 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 fl~e Property" means any legal or beneficial interest in fl~e Property, including, but not liufited to, fl]ose beneficial interests transferred in a bond for deed, contract Ibr deed, instalhnent sales contract or escrow agreement, rite 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 ]nay require innnediate payment in full of all sums secured by this Security Instrmnent. However, fids 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 fails to pay these sums prior to the expiration of this period, Lender amy invoke any remedies pernfitted by this Security Instrmnent without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have d~e right to have enforcement of this Secm'ity Instrument discontinued at any tinte prior to d~e earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law aright specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Leuder all sums which then would be due under.this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) Pays all expenses incm'red in enforcing this Security Instrument, including, but not linfited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for rite purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender tnay reaso~mbly requir.c, to assure that Lender's interest in the Property and rights under this Security Inslrumem, and Borrower s obligation to pay the sums secured by fids Security Instrument, shall continue unchanged. Lender amy require that Borrower pay such reinstatement sums and expenses in one or more of the following lbrms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits ,are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument 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 Loau Servicer Notice of Grievance. 'The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale ~night result itl a change in the entity (kuown as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under file Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer urn:elated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will. state the name and address of the new Loan Servicer, the address to which payments should be made aud any other information RESPA MFWY7770 (11/00) / 042-050105-8 (~d6AlWY) Iooosl,o~ . Pag~ ~ of ~5 Form 3061 'i/01 requires in co~mection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer ether than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will renmin with the Loan Servicer or be transferred to a successor Loan Servicer and are not assmned by file Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender nmy commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrmnent or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (wifl~ snch notice given in compliance with the requirements of Section 15) of such alleged breach aud afforded the other party hereto a reasmmble period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before' certaiu action can be taken, that time period will be deemed to be reasonable tbr pm-poses of fids paragraph. The notice of acceleration and opportmfity to cure given to Borrower pursuant to Section 22 and rite notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy fl~e notice and opportmfity to take corrective action provisions of this Section 20. 21. Hazardous Snbstauces. As used in this Section 21: (a) "Hazardous Sul~stances" are flmse substances defined as toxic or hazardous substances, pollutants, or wastes by Environrnental Law and the following substances: gasoline, kerosene, other flammable or toxic petrolenm products, toxic pesticides and herbicides, volatile solvents, nmterials contai]fing asbestos or formaldehyde, and radioactive materials; (b) '"Enviromnental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Envirmm~ental Law: and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of auy Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to file presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of file Property. The preceding tWo sentences shall not apply to file presence, use, or storage on file Property of small quantities of Hazardous Substances that are generally recog~dzed to be appropriate to normal residential uses and to maintenance of the Property (including, but not linfited to, hazardous substances in consmner products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, including but not liufited 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 the value of file Property. If Borrower learns, or is notified · by any govenm~ental or regulatory authority, or any private party, that any relnoval or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Envirmm~ental Law. Nothing herein shall create any obligation on Lender for an Enviromnental Cleanup. MFWY7770 (11/00) / 042-050105-8 (~-6A(WY) (ooo~).ol initials: Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender furd~er covenant and agree as follows: 22. Acceleratiou; 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 Secnrity lnstrmnent and sale of the Property. The notice shall further iuform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a defanlt or an)' other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in tile notice, Lender at its option may require immediate payment in full of all stuns secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies'permitted by Applicable Law. Leuder shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, inch, ding, but not limited to, reasonable attorueys' 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 iu 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 Propei'ty shall be sold in the manuer 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, inclnding, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the persou or persons legally eutitled to it. 23. Release. Upon payment of all sums secured by fids Security Instrument, Lender shall release riffs Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a lee for releasing fids Security Instrument, but tuffy if fl~e fee is paid to a flfird party for services rendered and the cliarging of fl~e fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of fl~e homestead exemption laws of Wyoming. MFWY7770 (11/00) 042-050105-8 Pao.~3ot~S Form 3051 1101 BY SIGNING BELOW, Borrower accepts and agrees to fl~e terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded wifl~ it. Witnesses: AARON ,ff. MILLER -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Bor,-ower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower MFWY7770 (11/00) ! 042-050105-8 (~c~6A(WY) looos~.o~ Page 34 of 15 Form 3051 1/01 7'7 5 STATE OF WYOMING, The foregoing instrument was acknowledged before me tiffs by AARON/~ MILLER, A SINGLE MAN 7th Lincoln County ss: day of May 2004 My Conunission Expires: Nola~, Public MFWY7770 (11/00) ! 042-050105-8 {~-6AIWY) Iooos} o~ Page 15 ol t 5 initials: Form 3051 1/01 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 7TH day of MAY, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date, given by the undersigned (the "Borrower") to secure Borrower's Note to HOMECOMINGS FINANCIAL NETWORK INC. (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 193 LILAC DRIVE THAYNE, WY 83127 [Property Address} The P¥operty includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described iu COVENANTS, CONDITIONS. AND RESTRICTIONS (the "Declaration"). The Property is a part of a planned unit development known as STAR VALLEY RANCH PLAT 5 [Name of Planned Unit Development} (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or lnanaging the conm]on areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest PUD COVENANTS. In addition to the covenants and agreements nmde in the Security Instrmnent, Borrowe~ and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Docmnents. The "Constituent Docmnents" are the (i) Declaration; (ii) articles of incorporation, trust instrmnent or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower Shall promptly pay, when due, all dues and assessments inrposed pursuant to the Constituent Documents. MULTISTATE PUD RIDER- Single Zamily- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3150 1/01 MFCD8065- (4/01} / 042-050105-8 Page 1 of 3 Initials: (~7R (0008) VMP MORTGAGE FORMS - (800)521-7291 B. Property Insurance. So long as the Owners Association nkaintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage m the amounts (including deductible levels), for the periods, and against loss by fire, hazards included witifin the term "extended coverage," and any other hazards, including, but not lindted to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives tile provision in Section 3 for tile Periodic Payment to Lende]- of the yearly premimn instalhnents for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to nmintam property insurance coverage on the Property is deemed satisfied to tile extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In tile event of a distribvtion of property insurance proceeds in lieu of restoration or repair tbllowing a loss to the Property, or to connnon areas and facilities of the PUD, any proceeds payable to Borrower are hereby asagned and shall be paid to Lender. Lender si'mil apply the proceeds to tile sums secured by tile Security Instrument, whether or not then due, with the excess, if auy, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure timt the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnatiou. The proceeds of any award or claim for danmges, direct or consequential, payable to Borrower in cmmection with any condenmation or other taking of all or any part of the Property or thc cmmnon areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to tile sums secured by tile Security Instrument as provided in Section 11. E. Lender's Prior'.Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, eiti~er partition or subdivide the Property or consent to: (i) tile abandomnent or termination of thc PUD, except for abandomnent or ternmnation required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condennuttion or eminent donmin; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) ternfi~mtion of professional lnanagement and assumption of self-mauagement of the Owners Association; or (iv) any action which would have file effect of rendering the public liability insurance coverage nmintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender nnay pay them..Any amounts disbursed by Lender under tiffs paragraph F shall become additional debt of Borrower secured by tile Security Instmlnent. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from tile date of disbursement at the Note rate and shall be payable, with interest, upon notice I¥om Lender to Borrower requesting paymeut. (!~dR (oooal nitials: /Off, xf~_ Page 2 of 3 Form 3160 1/01