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HomeMy WebLinkAbout878655R etm'n To: ItOMECOMINGS FINANCL~,L NB'IWORK, INC MINNF&POLIS, MN 55423 Praparad By! HomeComings P~nanclal Ne~work 1425 N. McDowell Blvd. Suite PeEaluma, CA 94954 [Space Above Tiffs Line For Recurding Data] MORTGAGE MIN 100062604135020222 DEHNITIONS Words used in ~nultiple sections of this document are defined below and other words are defined in Sections 3, 11, 1.3, 71.8, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Secm'ity Instrument" meansthis document, which is dated JANUARY 9TH, '2002 together with all iRiders to this document. (B) "Borrower" is STANLEY J. THOMPSON AND LOREEN H. THOMPSON, WIPE AND HUSBAND, AS JOINT TENANTS Borrower is the mortgagor 'under fids Security Instrument. (C) "MERS' is Mortgage Electronic Re~gistration Systems, Inc. MERS is a separate corporation lhat is. acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mm'tgagee under this Security Instrument. MERSis organized and existing under fhe laws of Delaware, and has an add~ess and telephone nmnber of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-1MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS Form 3051 1t01 MFWY7770.(ll/O01 / 041-350202-2 (~®-6AIWY) (ocos).o~ 598 (I)) "Lender" is HOMECOMINGS FINANCIAL NETWORK, INC. Lender is a CORPORATION organized and existing under the laws of DELAWARE Lender's address is P.O. BOX 808024 ~ PETALUMA, CA 94975 (E) "Note" means the promissory note signed by Borrower and dated JANUARY 9 TH, 2 002 The Note states that Borrower owes Lender ONE HUNDRED NINETEEN THOUSAND TWO HUNDRED AND NO/100 Dollars (U.S. $ 119,2 00.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later thanFEBRUARY 1ST, 2 032 (F) "Property" means the property that is described below tinder the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepaymentcharges and late charges due under the Note, and all sums due 'under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Insirun~entthat are executed by Borrower. Thc following Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider~ Condominium Rider [] Second Home Rider [] Balloon Rider ~-] Planned Unit Development RiderS] 1-4 Family Rider [] VA Rider [-~ Biweekly Payment Rider ~ Other(s) [specify] (I) "Applicable Law" means all conti:olling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrmnent, 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 initiated by telephone, wire transfers, and atttomated clearinghouse transfers. (L) "Escrow Items" means those items that are describedin Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any,,third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) misrepresentationsof, or onfissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. ' (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest tinder the Note, plus (ii) any amounts under Section 3, of this Security Instrument. (P)~"RESPA" means the Real Estate SettlementProceduresAct (12 U.S.C. Section 2601 et seq.) and its imple~menting regulation, Regulation X (24 C.F.R. Part 3500), as they might 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 requirementsand restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assmned Borrower's obligations under [:he Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Secm:ity Instrmnentsecures to Lender: (i) the repaymentof the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrumentand 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 folh)wing described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Nam~ o~:' Recording Jurisdiction] Legal description attached hereto and made a parr hereof Parcel ID Number: 12 311910 4 0 010 9 0 0 which currently has the address of 5620 BITTER CREEK COUNTY ROAD #140 , [Street] AFTON [City] , Wyoming 8 3110 [zip Code] ("Property Address"): TOGETHERWITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall als() be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrmnent as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has thc 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 Instrumeht. BORROWERCOVENAN'TS that B~)rrower is lawfully seised of the estate hereby conveyed hnd has the right to mortgage, grant and con~eey lh9 Property and that the Property is unencumbered, except for encumbrancesof record. Borrower warrants and will defend generally the title to thc Property against all claiins and demands, subject to any encumbrances of record. THiS SECURITYINSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform secqrity instrument covering real property. .. MFWY7770 (11/00) / 041-350202-2 ~nitia ~ 1~I~-6A(WY) Iooo5).ol Page 3 of 15 Cj:?:~;,¢J,.,./;'' ' ' ' ~/ Form 3051 1/01 UNIFORMCOVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and. Late Charges. 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 funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrumentshall be made in U.S. currency. However, if any check or other instrmnentreceived by Lender as payment under the Note or this Security Instrumentis returned to Lender unpaid, Lender may require that any or all subsequentpayments due under the Note and this Security Instrumentbe made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemedreceived by Lender when received at the location designated in the Note or at such other location as may be designatedby Lenderin accordancewith the notice provisions in Section 15. Lender may 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 insufficient to bring the Loan current, without waNer of any rights hereunderor prejudice to its rights to refuse such payment or partial payments in the future, 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 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 reasonableperiod 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 foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrumentor performing the covenants and agreementssecuredby this Security Instrument. 2. Applicatiou or' 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 a. pplied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instronmnt, and then to reduce the principal, balance of the Note. It; Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge dtfe, the pay~nent may be applied to the delinquent payment and the late charge. If morethan one Periodic Paymentis outstanding, Lendermay apply any payment received fi'om Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the ex'tent that any excess exists after the payment is applied to the full payment of One or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepaymentsshall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due tinder the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a)taxes and assessmentsand other items which can attain priority over this Security Instrumentas a lien or encumbranceon 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' b)? Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with ,~he provisions of Section 10. These items are called "Escrow Items." At origination or at any time _duri~ng the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments', if any, be escrowed by Borrower, and such dues, fees and assessmentsshall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver,- Borrower shall pay directly, when and where payable, the amounts MFWY7770 (~-6A{WY) (ooo5}.o, Pag~4o, ~5 ~,7~,)/.,_/.."~ .~ ' '"/ ~-'J '--'~--(,~7 Form 3051 1/01 due for any Escrow Items for which payment of Funds has beenwaived by Lender and, if Lenderrequires, shall furnish 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 agreementcontainedin this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant 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 under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in · . such amounts, that are then required under this Section 3. Lendermay~ at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA,'and (b) not to exceed the maximum amount a lender can require under RESPA. Leuder shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of fi~ture Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified-under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lenderpays Borrower interest on'the Funds and Applicable Law permits Lender to make such a charge. Unless an agreementis 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 earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of 'the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess fi~nds in accordancewith RESPA. If thereis a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as requiredby RESPA, and Borrower shall pay to Lender the amount necessary to make.up the shortage in accordancewith RESPA, but in no more than 12 monthly payments. If thereis a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as requircdby RESPA, and Borrower shall pay to Lender the amount necessary io make 'tip the deficiency in accordance with RESPA, but in no more than 1.2 monthly payments. Upon payment in full of all sums securedby 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 attributableto the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and CommunityAssociationDues, Fees, andAssessments, 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) agreesin writing to the payment of thc obligation securedby the lien in a manner acceptable to Lender, but only so long as Borrower'is performing such agreement; (b) contests the lien in good faith by, or defends against enforcementol: th~ lien in, legal proceedings which in Lender's opinion operate to prevent the enforcementof the lien while those proceedings are pending, but only until such proceedings arg'concluded; or (c) secures from the holder of the lien an agreementsatisfactory to Lender subordinating the lien to this Security Instrument. If Lender determinesthat 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 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification anti/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and an5' other hazards including, but not limited to, earthquakesand floods, for which Lender requires insurance. This insurance shall be maintained in the fimounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency ManagementAgency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursementand shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/oras an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was requiredby Lender, shall be applied to restorationor repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restorationperiod, 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 gatisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds'for the rapairs and restorationin a single payment or in a series of progress payments as the work is completed. Unless an agreementis madein writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not: then due, with the excess, if any, paid to Borrower. Such ihsuranceproceedsshall 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 within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (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 refnnd of unearned premiums paid by Borrower) under all. insurance policies covering the Property, insofar as such. rights are applicable to the coverage of the Property. Lender ~nay use the inst~rance 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 Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circmnstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower ig residing in the Property, Borrower shall maintain the Property in Order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnationproceeds are paid in connection with damage to, or the taking of, thc Property, Borrower shall 'be responsible for repairing or restoring the Property only if Lender has released proceeds I'or such purposes. Lender may disburse proceeds for the repairs and restorationin a single payment or in a series of progress payments as the work is completed. If the insurance or condemnationproceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonablecause, 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 speci~ing such reasonable cause. 8i Borrower's Loan Application. Borrower shall be in default if, during the Loan application proce~ss, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurateinformation or statementsto Lender (or failed to provide Lender with material information) in connection with the Loan. Material representationsinclude, but are not limited to, rePresentations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perfor~n the covenants and agreementscontainedin this Security Instrument, (b) there is a legal proceeding that might significa'htly affect Lender's interest in the Property and/orrights under this Security Instrument(such as a pfoceedingin bankruptcy, probate, for condemnationor forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or re~tdations), or (c) Borrower has abandonedthe Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrnment, including protecting and/orass.essing the value of the Property, and securing and/orrepairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable MFWY7770 (11/00) / 041-350202-2 .~-6A{WY)(ooos,.o, P ag e TollS ~..~_ '~.,,Z~. ¢"Form3051 1/01 attorneys' fees to protect/ts interest in the Property and/orrights under this Security Instrument, 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, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lendermay take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrumentis 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 uuless Lender agrees to the merger in writing. ltl. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrowershall pay the premiumsrequired to maintain the Mortgage Insurancein effect. If, for any reason, the Mortgage Insurance coverage requiredby Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalen.t to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount 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-refundableloss reserve in lien of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for 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 for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refi~ndable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordancewith any written agreementbetween Borrower and Lender providing for such terminationor until terminationis requiredby Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lend_er (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 the Mortgage insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and m~'y euter into agreementswith other parties that share or modify their risk, or reducelosses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreementsmay require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lehder, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterizedas) 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 agreement 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 such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the ammmt Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any rebind. I~-6A{WY) (ooo5}.o~ P,g. Sot ~5 ,,.7~f,'/,~/'.,_/.;' (:fF~orm'3051 1/01 - (b) Any such agreements will not affect the rights Borrower has - if any - with respect to tile Mortgage Insurance nnder the Homeowners Protection Act of 1998 or any other law. These rights may include tile right to receive certain disclosures, to request and ohtain cancellation of tile Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. Ail Miscellaneous Proceeds are h~reby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restorationperiod, 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 undertakenpromptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreementis made in writing or Applicable Law 'requires interest to be paid on such iMiscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restorationor repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums securedby this Security Instrmnent, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market wdue of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be redtlced by the amount of the Miscellaneous 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 immediately 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 thc fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, 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 [he Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums securedby this Security Instrument, v~hether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default il! any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under tli'is Security Instrument. Borrower can cure such a default and,' if accelerationhas occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed 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 damages that are attributable to the impairment of Lender's interest i'n the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall 'be applied in the order provided for in Section 2. -- .12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortizationof the sums securedby this Security Instrumentgrantedby Lender to Borrower or any Successor in Interestof Borrower shall not operateto release the liability of 'Borrower or any Successors in interest of Borrower. Lender shall not be required to commenceproceedings against any Successor in Interest of Borrower or to refuse to extend time for pay~nent or otherwise modi'f¥ amortizationof the sums securedby this Security Instrumentby reason of any demandmadeby the original Borrower or any Successors in Interest of Borrower. Auy forbearanceby Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amountsless than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-s~gners; 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 in the Property under the terms of this Security Instrument; (b) is not_personally obligated to pay the sums secured by this Security Iustrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or xnake any accommodationswith regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 1.8, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrumentin writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrmnentunless Lender agrees to such releasein writing. The covenants and agreements of this Security Instrument shall bind (except as. provided in Section 20) hnd benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Securit.y Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express~authority in this Security Instrumentto charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximmn loan charges, and that law is finally interpretedso that the interest or other loan charges collected or to be collected in' connection with the Loan exceed the p?mitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permittedlimit; and (b) any sums already collected from Borrowerwhich exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refi~nd by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial~ prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such retired made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connectionwith this Security Instrumentshall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of ar. tdress. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified pro}ednre. The, re may be only one designated nc~tici' address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address statid herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrumentis also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. GO7 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall 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 requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but sud~ silence shall not be construed as a prohibition against agreementby contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrumentor the Note which can be given effect without the conflicting provisiofi. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Bo?tower's CoPy. Borrowershall be given one copy of the Note and of this Security Instrument. 18. Transfer o1' the Property or a Beneficial Interest in Borrower. As used in this Section 18, *'Interest in the ProperS" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferredin a bond for deed, contract for deed, installment 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 Interestin the Propertyis 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 this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall '.provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 ~ .~ithin which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these snms prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to haw enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b)such other period as Applicable Law might specify for the termination of 'Borrower's right to reinstate; or (Q entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due trader this Security Instrumentand the Note as if no accelerationhad occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not liinited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and fights under this Security Instrmnent; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security instrument, aud Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatemenaums and expenses in one 0r more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's che& or cashier's the&, 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 reinstatementby Borrower; this Security Instrument and obligations secured hereby shall rmnainfully effective as if no accelerationhad occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan ~Se~icer; Notice of Grievance. The Note or a partial intere~tin the Note (together with this Security Instrument)can be sold one or more times without prior notice to Bo[rower. A sale might result in a change in the enti~ (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan serhcing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelatedto a sale of the Note. If thereis a change of the Loan Servicer, BorrowerMll be given written notice of the ch~ge which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice o.f transfer of servicing. If the Note is sold and thereafterthe Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferredto a successor Loan Servicer and are not assumed by the Note purchaser 'unless otherwise brovided by the Note purchaser. Neither Borrower nor Lender may 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 Instrmnentor 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 (with such notice given in compliance with thc requirementsof Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the 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 this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by EnvironmentalLaw and t~e following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" meansfederallaws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in EnvironmentalLaw; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of ,any Hazardous Substances, or threatento release any HazardousSubstances, 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 EnvironmentalCondition, or (c) which, due to thc presence, use, or release of a HazardousSubstance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to' maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuk or other action by any governmental or regfilatory agency or private party involving the Property and any Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any EnvironmentalCondition, including but not limited 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 HazardousSubstancewhich adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of 5ny HazardousSubstance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. _ MFWY7770 (11/00) / 041-350202-2 tnit~a~'-:''' ' ~...~,,.5 12of 15 1~-6A(WY} Iooosl.Ol r'as* ~""~-~..~)/' '7' ,"~;}rn 3051 1/01 609 NON-UNIFORMCOVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (hut not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specity: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days ti'om the date tile notice is given to Borrower, by which the default must be cured; and (d) that failure to cure tile delhult on or before the date specitied in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall h~rther inform Borrower of the right to reinstate after acceleration and tile 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 tbe default is not cared on or before tile date specilied itl tile notice, Lender at its option may require immediate pay~nent in full of all sams 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' tees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in /.he manner provided in Section 15. Lender sball publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase tile Property at any sale. Tile proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security InstrUment; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay a.ny recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, bm only if the fee is paid to a third party for. services renderedand the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. MFWY7770 (11/00) / 041-350202-2 ~-OA(WY) 1ooo5).o~ Page 13 ¢f 15 .%~.";.7:.; ' ('~rm 3051 1101 610 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: LOREEN H. THOMPSON -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower MFWY7770 (11/00) 041-350202-2 (~<~6A(WY}(00051.01 Page ~4 of 15 Form 3051 1/01 STATE OF WYOMING, /L/~ County ss: Theforegoinginstrumentwasacknowledgedbeforemethis 9th day of January, 2002 by . by his attorney in fact Loreen~NHbThompson, STANLEY J. THOMPSON AND LOREEN H. THOMPSON, WIFE HUSBAND, My Commission Expires: (( ~p[res S~t~mb~r EXHIBIT E That part of the NW~SE~ of Section 10, T31N RllgW of the ~th P.M., Lincoln County, Wyoming, being part of that tract of record in the office of the Clerk of.Lincoln County in Book 455PR on page 318 described as follows: , BEGINNING at a spike on the West line of said NW~SEW, S 00~24'24,, W, 356.10 feet from the Northwest corner thereof; thence S 88°57'39,, E, 337.95 feet to a point; thence S 00o24,2~,, W, 257.96 feet, along a line parallel with said west line to a point; thence.N 88o57,39,, W, 337.95 feet to a spike on said West line; thence N 00~24,24,, E, 257.96 feet along said West line to the SPIKE OF BEGINNING. '