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HomeMy WebLinkAbout899384Return To: WELLS FARGO HOME MORTGAGE 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 Prepared By: WELLS FARGO BANK, N.A:. 1919 DOUGLAS,, OMAHA, 681010000 [Space AI)ove Tiffs Lhm For Recerdh~g Data] MORTGAGE ~C R~_ ~EIVED LINCOLN COUNTY CLERK t'. !i 17 '~ ,~, "_ i.. DEFINITIONS Words used in ~nultiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this docmnent are also provided in Section 16. (A) "Security Instrument" means tlfis document, Milch is datedMAY 12, togeflmr with all Riders to fids document. (B) "Borrower" is THOMAS C KELLY, A SINGLE PERSON 2004 Borrower is the mortgagor under fids Security Instrument. (C) "Lender" is WELLS PARGO BANK, N.A. Lender is a NATIONAL ASSOCIATION orgmfized and existing Under the laws of THE UNITED STATES 0041023235 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6{WY} (ooos} Page 1 o~ 1S Mitial*: 'r~---- VMP MORTGAGE FORMS - 18oo~521-72@1 Form 3051 1/01 Lelider'saddressis P.O. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instru~nent. (D) "Note" means the promissory note signed by Borrower and datedYatY 12, 2 004 The Note states that Borrower owes Lender ONE HUNDRED SIXTY THOUSAND AND 00/100 Dollars (U.S. $ * * * * 16 0,0 0 0.0 0 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JUNE 01, 2 03 4 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" meaus the debt evidenced by ate Note, phis interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The followiug Riders are to be executed by Borrower [check box as applicable]: [~ Adjustable Rate Rider ~ Condominiuln Rider ~-] Second Home Rider [~ Balloon Rider [-~ Platmed Unit Development Rider ~-~ 1-4 Family Rider [~ VA Rider ~ Biweekly Payment Rider ~ Other(s) [specifyl OD "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and admilfistrative rules and. orders (that have the effect of law) as well as all applicable tim41, non-appealable judicial opi~fions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condonfinimn association, homeowners association or sinfilar organization. (J) "Electronic Funds Transfer" means any transfer of funds, oilier than a transaction originated by check, draft, or sinfilar paper instrunlent, which is initiated 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. Such term includes, but is not linfited to, point-of-sale transfers, autonmted teller nmchine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (IQ "Escrow Itenis" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" ineans any compensation, settle~nent, 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) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and iuterest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" lneans the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended frmn time to tinm, or any additional or successor legislatiou or regulation that governs the same subject matter. As used in this Security Instnnnent, "RESPA" refers to all requirements and 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. (~-6(WY) 100051 Page 2 o¢ 15 Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not fl~at party has assumed Borrower's obligations under the Note and/or this Security Instrmneut. TRANSFER OF RIGHTS 1N THE PROPERTY Tiffs Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instmlnent and the Note. For fids purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors.and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording lurisdiction] [Name of Recording Jurisdiction] LOT 64 OF THE THREE RTVERS MEADOWS ESTATES SUBDIVISION B, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. *SEE ADJUSTABLE RATE RIDER TAX STATEMENTS SHOULD BE SENT TO: 10304, DES MOINES, IA 503060304 WELLS FARGO HOME MORTGAGE, P.O. BOX Parcel ID Number: 433 MEADOWS COURT ALPINE ("Property Address"): which currently has the address of [Street] [City] , Wyoming 8 312 8 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of rile property. All replacements and additions shall also be covered by this Security lustmment. All of the foregoing is referred to in this Security Instrument as file "Property." BORROWER COVENANTS that Borrower is lawfidly seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencmnbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and denmnds, subject tq any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform cove~mnts for ~mtimml use and non-uniform covmmnts with linfited variations by jurisdiction to constitute a mtiform security instrument covering real property. , UNIFORM COVENANTS.. Borrower attd 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 eviqenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay filnds lbr Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instnunem received by Leuder as payment under the Note or this Initials: (~-6(WY) (ooos) Page 3 of ]6 Form 3051 1/01 Security Instrmnent is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this:Security Instrument be made in one or more of the following tbrms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bmflc 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 deemed received by Lender when received at the location designated ii~ the Note or at such other location ,'ts may.be designated by Lender in accordance with 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 waiver of an3~ rights hereunder or 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 ftmds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so wiflfiu a reasmkable 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 inunediately prior to foreclosure. No offset or claim which Borrower might have now or iu fl~e future agai~kst Lender shall relieve Borrower ft'mn making payments due under the Note and this Security Instrument or perfornfiug file covenants and agreements secm'ed 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 becalne due. Any remaining 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 sufficient amount to pay any !ate charge due, file payment nmy be applied to the delinquent payment and rite late charge. If more fl~an one Periodic Payment is outSta, uding, Lender may apply any paymem received frmn Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent fl~at 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 prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpo'ne the due date, or change rile amount, of fl~e Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (file "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leaseh.old 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 the payment of Mortgage Insurance premiums in ficcorflance wiflt die provisions of Section 10. These items are called "Escrow Items." At origination or at ~ny time during tim term of the Loan, Lender may require fl]at Commmfity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assesslnents shall be an Escrow Itmn. Borrower shall promptly funfish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items mfless Lender waives Borrower's obliganon 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 auy time. Any such waiver nmy only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts (~-6(WY) (ooo51 Initials: Page4of15 Form 3051 1/01 due for arty Escrow Items for wlfich 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 payn:tents and to provide receipts shall for all purposes be deemed to be a covenant aud agreement contained in this Security h~strument, as the phrase; "covenant and agreement" is used in Section 9. If Borrokver is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for au Escrow Ite~n, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall theu be obligated uuder 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 aud, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under tiffs Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at fire time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of curreut data and reasonable estimates of expenditures of future Escrow Itelns 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 airy 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 aimlyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower iuterest on the Funds and Applicable Law pernfits Lender to make such a charge. Uuless au agreement is made in writing or Applicable Law requires interest to be paid on tlre 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 iuterest shall be paid on the Funds. Lender shall give to Borrower, without charge, an a~mual accounting of the Funds as required by RESPA. If there is a sm]~lus of Funds held iu escrow, as defiued uuder RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Fuuds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more dian 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 uecessary to make up the deficiency in accordance with R~SPA, bnt 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 Commmdty Association Dues, Fees, and Assessmeuts, 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 auy lien which has priority over this Security Instrument u~fless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a maturer acceptable to Lender, but tuffy so long as Borrower is perfornfing such agreement; (b) contests the lien in good faith by, or defends against euforcem~nt of the lien in, legal proceedings which in Lender's opi~fiou operate to prevent the enforcement of the lien while those proceedings are pending, but tuffy until such proceedings are concluded; or (c) secures frown the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determiues that any part of the Pr.operty is subject to a lien which can attain priority over this Security Instrument, Leuder ~nay give BorrOw~er a notice identifying die Initials :~f~- ! I~-6(WY) Iooosl Page 5 of 15 Form 3051 1/01 lien Within 10 days of the date on which that notice is given, Borrower shall satisfy tire lien or take one or more of tile actions set forth al:'ove iu this Section 4. Lender nmy reqnire Borrower to pay a one-time charge tbr a real estate tax verification and/or reporting service used by Lender in conuecfion with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured agaixtst loss by fire, hazards included within the term "extended coverage," and any other hazards iucluding, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pm'suant to the preceding sentences car. 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 com~ection with tiffs 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 renmppings or similar changes occur wlfich reasonably nfight affect such deten~fination or certification. Bon'ower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agez-.cy in com~ection with the review of any flood zone determination resulting from alt objection by Borrower. If Borrower fails to nmintain 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 nfight or nfight not protect Borrower, Borrower's equity iu 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 nfight sigltificantly exceed the cost of insurance .that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additiolml 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. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's fight to disapprove snch policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an addititnml loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall prontptiy 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 proxnptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if' the restoration or repair is econonfically feasible and Lender's security is uot lessen,',d. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfactiou, provided that such inspection shall be undertaken promptly. Lender nmy disburse proceeds tbr rite repairs and restoration 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 eanfings on such proceeds. Fees for public adjusters, or other: flfird parties, retained by Borrower shall not be Paid out of the i~ksurance 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 iltsurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with I~)~-6(WY) Iooosl Page $ of ~S Form 3051 1/01 the excess, if any, paid to BorrOwer. Such insurance proceeds shall be applied ia the order provided for in Section 2. If Borrower abandons the Property, Lender nmy file, negotiate and settle any available insurance claim and related matters. If BOrrower does not respond within 30 days to a notice frmn 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 refund of unearthed premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore 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 circumstances 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 conunit waste on the Property. Whether or not Borrower is 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 ~s determined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if damaged to avoid furrier deterioration or damage. If insurance or condenmation proceeds are paid in co~mection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If fl~e insurance or condenmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property Lender shall give Borrower notice at the time of or prior to such an interior iuspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, nfisleading, or i~mccurate information or statements to Lender (or failed to provide Lender with material information) in cmmection with the Loan. Material representations include, but are not linfited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under th'is Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property attd/or rights under this Security h]strument (such as a proceeding in bankruptcy, probate, for condenmatiou or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender nmy do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not linfited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reaso~mble ~-6(WY) {goos) Page 7 o(15 I Form 3051 1/01 attorneys' fees to protect its interest iu the Property and/or rights under this Security Instrument, includiug its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to nmke repairs, change locks, replace or board up doors and windows, drain water from pipes, elinfinate building or other code violatious or dangerous conditions, and have utilities turned on or off. Although Lender ~ru~y take actiou 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 iucurs no liability for not taking any or all actions authorized under this S~ction 9. Any amounts disbursed by Lender under tlfis Section 9 shall become additional debt of Borrower secured by this Security [nstmn~ent. These amouuts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Bon'ower requesting paymeut. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, die leasehold and the fee title shall not merge mfless Lender agrees to the merger iu writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of ntaking the Loau, Borrower shall pay the prenfinms required to maiutain the Mortgage Insurance i:~ effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately desig]mted payments toward the premiums for Mortgage Insurance, Bon'ower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from au alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall conti:~me to pay to Lender the amount of the separately designated payxnents that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstauding the fact that the Loan is ultinmtely paid in full, and Lender shall uot be required to pay Borrower any h~terest or earni,gs 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 desig~mted payments toward the prenfiums fo~ Mortgage Iusurance If Lender required Mortgage Insurance as a condition of makiug the Loan and Borrower was required to nmke separately desig]mted payments toward the prenfiums for Mortgage Insurance, Borrower shall pay the prenfiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends m accordance with auy written agreement between Borrower and Lender providing for such termitmtion or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided iu the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage [nsurflnce. Mortgage insurers evalnate their total risk on all such insurauce in force from time to time, and may enter into agreements with othe~ parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisthctory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using auy source of flmds that the mortgage insurer may have available (which nmy include funds obtained from Mortgage Insurance prentiums). As a result of these agreements, Lender, 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) amouuts that derive from (or might be chara:terized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchauge for a share of the prenfiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreemeuts will not affect the amounts that Borrower has agreed to pay for Mortgage Insnrance, or any other terms of the Loan. Snch agreements will not increase the amount Borrower will owe for Mortgage Insurauce, and they will not entitle Borrower to any refund. (~-6(WY) (ooo5) Page 8 of 15 Initials: Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under tl/e 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 tern]inated 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. All Miscellaneous Proceeds are hereby 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 restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportmfity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender ]nay pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. U~dess 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 ear~fings on such Miscellaneous Proceeds. If the restoration or repair is not econonfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured b.y this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss m value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security hkqtrument, 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 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 innnediately 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 reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured inm]ediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destmgtion, 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 inm~ediately before the partial taking, destruction, or loss in value is less than the a~nount of the sums secured i~nmediately be/bre 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 the 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 Ldnder within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether 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 if any action or proceeding, whether civil orlcrinfinal, is begun that, in Lender's judg~nem, could result in forfeiture of the 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 disnfissed with a ruling that, iv. Lender's judg~nent, precludes forfeiture of the Property or other nmterial impairment of Lender's interes~ 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 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 for in Section 2. I~)¥6(WY) {ooo~) I Initials: Page 9 of IS ! Form 3051 1/01 , 674 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or nlodification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor. in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest ?f Borrower. Lender shall not be required to colmnence proceedings against any Successor in Interest of Borrower or to refuse to extend time tbr payment or otherwise modify amortization of the sums secured by this Security Iustrmnent by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by 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 amounts less than tile amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bonnd. 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~siglfing this Security Instrument only to mortgage, gram and convey the co-signer's interest in the Property under file terms of this Security Instrun-,ent; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or file Note without the co-signer's consent. Subject to file provisi°ns of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security h~strument 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 tile successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed ill colmection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to ally other fees, the absence of express authority in this Security Instrumen.t to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender ~nay not charge fees that are expressly prohibited by tiffs Security Instrument or by Applicable Law. If file Loan is subject to a law which sets maxinxum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in comxection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by file amount necessary to reduce file charge to the pernfitted linfit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the priucipal 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 refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in cmmection w'ith this Security Instrument nmst be in writing. Ally notice to Borrower iu connection with this Security Ii~strument shall be deemed to have been given to Borrower when mailed by first class nmil 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 ofllerwise. The notice address shall be fl~e Property Address mfless 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, then Borrower shall only report a change of address through that specified procedure. There may be olfly one designated notice address under this Security Instrument at any one time. Any n°tice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein mfless 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 n~tice required by this Security Instrument is als0 required under Applicable Law, file Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. Initials:. (~-6{WY), IOOOS) Page ~o of ~6 Form 3051 1/01 675 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and ithe law of the jurisdiction in which the Property is located. All rights and obligations contaiiled iii this Security hrstrument are subject to any requirements and linfitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it nfight be silent, but such silenCe shall not be construed as a prohibition against agreement by 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 Instrument or the Note which can be given effect without file conflicting provision. As used in this Security Instrument: (a) words of the 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) the word "nmy" gives sole discretion without any obligation to take any action. ~ 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrmnent. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in tlm Property" means any legal or beneficial interest in the Property, including, but not li~nited to, those beneficial interests transferred in a bond for deed, coutract for deed, installment sales contract or escrow agree~nent, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Leuder's prior writteu consent, Lender may require imlnediate payment in 'full of all sunrs 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 within wlfich Borrower must pay all sums secured by fids Security Instruinent. If Borrower fails to pay these sums prior to the expiration of this period, Lender nuay invoke airy remedies perinitted 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 die right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days betbre sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law nfight specify for the ternfi~mtion of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note asif no acceleration had occurred; (b) cures any delhult of auy other covmmnts or agreements; (c) pays all expenses incurred in enforciug this Security Instrument, including, but not limited to, reasoxhable attor~mys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Iustruinent; and (d) takes such action as Lender nmy reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligatiou to pay the sums secured by this Security Instrument, shall conti~me unchanged. Lender nmy require that-Borrower pay such reinstatement sums and expenses in one or mote 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, instrmnentality or entity; or (d) Electro~fic Funds Transfer. Upon reinstatexnent by Borrower, this Security Instrunlent and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in die case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with. this Security Instrumen0 can be sold one or more ti~nes without prior notice to Borrower. A sale ~night result iii a change in the entity (known as the "Loan Servicer") that collects Periodic Pay~nents due under the Note and this Security Instrument and perfor~ns other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also nfight 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 chauge which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other informatiou RESPA Initials:. "~"' (~-6(WY) (ooosl Page 11 of 15 Form 3051 1/01 676 requires in connection with a notice of transfer of servicing. If fl~e Note is sold and thereafter the Loan is serviced by a Loan Servicer o:ther than file 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 assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor L~nder 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 Instrument or that all.:ges 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 the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after fl~e giving of such notice to take corrective action. If Applicable Law provides a time period which inust 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 Environmental Law and the following substances: gasoline, kerosene, other flanm~able or toxic petroleum products, toxic pesticides and herbicides, volatile solve~3ts, materials contai~fing asbestos or formaldehyde, and radioactive umterials; (b) "Enviro~m~ental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or removal action, as defined in Enviromnental Law; and (d) an "Enviro~m~ental Condition" means a conditien 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 threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anyflfing affecting the Property (a) that is in violation of any Environmental Law, (b) which creates alt Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects fl~e value of the Property. The preceding two sentences shall not apply to fl~e presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recog~fized to be appropriate to normal residential uses and to maintenance of fl~e Property (including, but not linfited to, hazardous substances in co~sumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any govennnental or regulatory agency or private party involving rite Property and any Hazardous Substance or Er~viromuental Law of which Borrower has actual knowledge, (b) any Envirmm~ental Condition, including but not linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused 'by the presence, use or release of a Hazardous Substance which adversely affects the value of flxe Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting file Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Noflling herein shall create any obligation on Lender for an Enviromnental Cleanup. Initials: T~-'~ 1~-6(WYI (ooo5) Page ~2 o~ 15 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covexmnt and agree as follows: 22. Acceleration; Remedies. Lender shall give uotice to Borrower prior to acceleratiou following Borrower's breacb of auy covenaut 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 faihlre to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrnment and sale of the Property. The notice slmll further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment iu full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies pernfitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuiug the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes tile power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possessiou of the Property, if differeut, in accordance with Applicable Law. Lender slmll give notice of the sale to Borrower in the manner provided in Sectiou 15. Lender shall publish the notice of sale, and the Property slmll be sold in the manner prescribed by Applicable Law. Lender or its desiguee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all stuns secured by tlfis Security Instrument, Lender shall release tiffs Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing tiffs Security Instmmznt, but otdy if fl~e fee is paid to a flfird party for services rendered and the charging of the fee is pemfitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyonfing. Initials: I,~I~)-6(WY} Io006) Page 13 or 15 Form 3051 1101 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instmmeut and in any Rider executed by Borrower and recorded with it. Witnesses: r.~--.---~-- ~'- ~-- ~ (Seal) THOMAS C KELLY -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower iI~}~6(WY) (ooo6} Page 14 of 15 Form 3051 1/01 679 STATE OFWYOMING, LTNCOr. N The foregoing instrument was acknowledged before me riffs by THO14~S C KELr.Y County ss: My Co~nnfission Expires: JILL H, MR@ON - NOTARY PlJBLIC I COUNTYOF ~ STATEOF I UmQ.N ~ ,¢~OMINO MY C,~.~MIS~ION ~IRE~ JUNE 20~ Not~/Public (~-6g(WY) (ooo~} Page 15 of 15 Initials: Form 3051 1/01 G80 ADJUSTABLE RATE RIDER ( 3. Year Treasury Index- Rate Caps) THIS ADJUSTABLE RATE RIDER is made dfis 12TH day of inky, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Secnrity Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to WELLS FARGO BANK, N.A. (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 433 MEADOWS COURT, ALPINE, WY 83128 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT, THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the cove~mnts and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an i~fitial interest rate of 3.500 changes in the interest rate and the monthly payments as follows: %. The Note provides for 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay nmy change on the first day of JUN~., 2007 and on that day every 12 MONTHS thereafter. Each date on which my interest rate could change is' called a "Change Date." 0041023235 MULTISTATE ADJUSTABLE RATE RIDER - ARM 5-2 -Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Fannie Mae 4-2/5-2/6-2 ARM ~(~822R (0008) Form3111 1/01 NMFL #3111 VMP MORTGAGE FORMS - (800)521-7291 (B) Tile Index Begimfing with the first Change Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of 1 year(s), as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, file Note Holder will choose a new index wltich is based upon comparable infornmtion. The Note Holder will give ~ne notice of this choice (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND THREE-QUARTERS percentage points ( 2.750 %) to the Current Index The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125 %). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will the~ deternfine fl~e amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at iny new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 5.500 % o: less titan 2.7 S 0 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than TIaO percentage points ( 2. 000 %) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 9. 500 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my nmnthly payment changes again. (~)~822R (0008) Page 2 of 4 Initials: 'T~.- Form 3111 1101 652 (F) Notice of Changes The Note Holder will deli ver or ]nail to me a notice of any changes iu my interest rate and the amouut of my monthly payment before the effective date of any chauge. The notice will iuclude information required by law to be given to nm and also the title and telephone ~mtnber of a person who will answer any question I nmy have regarding the notice. B, TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Inst]mnent is an]ended to read as follows: Trausfer of the Property or a Beueficial Interest in Borrower. As used in tiffs Section 18, "Interest in fl~te Property" means any legal or beneficial interest in the Property, including, but ]rot li~nited to, fl]ose beneficial iuterests transferred in 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 file Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender nmy reqmre innnediate payment in full of all sums secured by this Security Instrument. However, riffs option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise tiffs option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines fl~at Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent pemtitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to tim loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all Ore promises and agreements made in the Note and in tiffs Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrowe~' in writing. If Lender exercises the option to require immediate payment iu fldl, Lender shall give B0n'ower notice of acceleration. The notice shall provide a period of not less fl~an 30 days fi'om fl~e date the notice is given in accordance witl] Section 15 within which Borrower must pay all sums secured by tiffs Security Instrument. If Borrower fails to pay these sums prior to the expiration of tiffs period, Lender may invoke any remedies pernfitted by flfis Security Instrument without further notice or ~Jemand on Borrower. (2~822R (0008) Page 3 of 4 Initials: T/~- Form 3111 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. .r' :-_ e-. -- ';:'"'~-"~ (Seal) THOMAS C KELLY -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal.) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~<~822R (0008) Page 4 of 4 Form 3111 1/01