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HomeMy WebLinkAbout899383Remrn To: WELLS FARGO HOME MORTGAGE 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 8 9 3 8 3 Prepared By: WELLS FARGO BANK, N.A. 1919 DOUGLAS, , OMAHA, NE 681010000 [Space Above Tlds Line For Rec,,rdh~g D}da] MORTGAGE RECEIVED LlNOOt_f'l COU,,.,TY CL.....RIx 649 DEFINITIONS Words used in multiple sections of tlfis document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certaiu rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means tiffs document, which is dated l~Y 12, 2004 together with all Riders to thxs document. (B) "Borrower" is CHAD ERICKSON AND DEBRA P ERICKSON husband and wife Borrower is the mortgagor uuder this Security Instrument. (C) "Lender" is WELLS FARGO BANK, N.A.. Lender is a NATIONAL ASSOCIATION orgmfized and existing under the laws of THE UNITED STATES 0041651563 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 ,v . 650 Lender's address is P.O. BOX 10304, DES }4OINES, IA 503060304 Lender is the mortgagee under this Security Instrument. (D) "Note" means the pronfissory note signed by Borrower and dated m~,Y 12, 2004 The Note states that Borrower owes Lender EIGHTY THOUSAND AND 00/100 Dollars (U.S. $ * * * * * 80,000.00 ) plus interest. Borrower has pronfised to pay this debt in regular Periodic Payments and to pay file debt in full not later fl~an JUNE 01, 2034 (E) "Property" means the property rial is described below under fl~e heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment Charges and late charges due under the Note, and all sums due under this Security Insmnnent, plus interest. (G) "Riders" means all Riders to this Security hkqtmment that are executed by Borrower. The following Riders are to be executed by' Borrower [check box as applicable]: [--~ Adjustable Rate Rider ~ Condominium Rider ~-] Second Home Rider ~ Balloon Rider ~ Plam~ed Unit Development Rider ~] I-4 Family Rider ~ VA Rider ' ] Biweekly Payment Rider ~-~ Other(s) [specify] (It) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" lneans all dues, fees, assessments aud other charges that are imposed on Borrower or the Property by a condominium association, ho~neowners association or similar organization. (J) "Electronic Funds Transfer" means auy transfer of funds, other than a trausaction originated by check, draft, or sinfilar paper instrument, which is initiated through an electronic ternfiml, 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, automated teller nmclfine transactions, transfers ilfitiated by telephone, wire transfers, aud automated clearinghouse transfers. (K) "Escro¥~ Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any contpensation, 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) dalnage to, or destruction of, the Property; (ii) condenun~tion or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) misrepresentations of, or oufissio~ts as to, the value and/or condition of the Property. (h~ "Mortgage InsUrance'' means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Pay~nent" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts nnder Section 3 of this Security Instrument. (O) "RESPA" means tile Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they nfight be amended frown time to time, or any additional or successor legislation or regulation that goverus the same subject matter. As used in Otis Security Instmlnent, "RESPA" refers to all requirements and restrictious that are imposed in regard to a "federally related mortgage loau" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(WY) (ooo~} P.~. 2 of ~s Form 3051 1/01 651 (P) "Successor in hlterest of Borrower" meaus any party that has taken title to the Property, whether or not that party has assumed Bdrrower's obligations under the Note and/or tiffs Security Instrument. TRANSFER OF RIGHTS INiTHE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions aud modifications of fire Note; and (ii) the pertbrumnce of Borrower's covenants and agreements under this Security Instrmnent and the Note. For this purp6se, 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 Jm'isdiction] [Name of Recording Jurisdiction] SEE ATTACHED LEGAL DESCRIPTION TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, P.O. BOX 10304, DES MOINES, IA 503060304 ParcellD Number: 3693 HIGHWAY 241 AFTON ("Property Address"): wkich currently has the address of [Street] [City] , Wyonfing 8 3110 [Zip Code] TOGETHER WITH all the improveluents now or hereafter erected ou the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by Offs Security Instrument. All of the foregoing is referred to in Security Instrument as fl~e "Property." BO~OWER COVENANTS that Borrower is lawfiflly seised of the estate hereby conveyed and has fife right to umrtgage, grant and convey the Property and tl~at the Property ts unencmnbered, except for enculnbrances of record. Borrower warrants and will defend generally the title to tim Property against all clail~s and denmnds, subject to any encumbrances of record. Tills SECU~TY INSTRUMENT combines mfiform cove~mnts for ~mtio~ml use and non-ulfiform cove~mnts wifll li~ted vafiat:ous by jurisdictiou to constitute a mfifonn security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Inter,t, Escrow Items, Prepayment Charge, and Late Charge. Borrower shall pay when due the pritmipal 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 buds for Escrow Items pursuant to Section 3. Paymeuts due under the Note and this Security Instm~nent shall be ~made in U.S. currency. However, if any check or ofl~er instm~nent received by Lender as paynmnt under the Note or tiffs ~d6(WY) (ooos) ea~ 3 o~ ~s Form 3051 1/01 Security hkgtrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and fids iSecurity Instrmnent be made in one or more of the followiug 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, instnmmntality, or entity; or (d) Electro~fic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be/lesig~hated by Lender in accordauce with the notice provisions in Section 15. Lender may return any payn~nt or partial payment if the payment or partial payments are insufficient to bring fl~e Loan cra'rent. Lender may accept any payment or partial payment i~kgufficient to briog the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in fl~e futnre, but Lender is not obligated to apply such payments at the ti~ne such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, fl~en Lender need not pay · ii~terest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under fl~e Note innnediately prior to foreclosure. No offset or claim which Borrower nfight have now or in the future against Lender shall relieve Borrower from making payments due under the Note and riffs Security htstnnnent or perfornfing the covenants and agreements secul'ed by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remai~fing anrounts shall be applied first to late cl~arges, second to auy other amounts due under thi~ Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a pay, ment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment aid the ]ate charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent 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 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 postpone the due date, or change the anmunt, of the Periodic Payments. 3. Funds for Escrow Ite~ns. Borrower shall pay to Lender on the day Periodic Payments are due tmder the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of a~nounts due for: (a)'taxes and assessments'and other items which can attain priority over this Security Instrmnent as a lieu'or encumbrance on the Property; (b) leasehold payments 'or ground rents on die Property, if any; (c) prenfiums for any and all insurance reqnired by Lender under Section 5; and (d) Mortgage Insurance prenfiums, if a{ty, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance prenfiums in accordance with the provisions of Section 10. These, ite~ns are called "Escrow Items." At origination or at any time during the term of the Loan, Lender nray require that Connnmfity Association Dues, Fees, and ,Assess~nents, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furuish to Lender all notices of anmunts 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 a~nounts (~-6(WY) 1ooo51. Page 4 of 15 Form 3051 1/01 due for any Escrow Items for which paymem of Funds has been waived by Lender and, if Lender requires, shall fi]rnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to mak~ such payments and to provide receipts shall for all purposes be deemed to be a covemmt and agreement contained in this Security Instruntent, as the phrzse "covenant and agreement" is used in Section 9. If Borrbwer is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due lbr an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall tlxen be obligated under Sectiou 9 to repay to Lender any such amount. Lender nmy revoke rite waiver as to any or all Escrow Items at any time by a uotice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, attd in such amounts, that are then required under flfis Section 3. Lender ~mty, at any ti~ne, collect and hold Funds in an amount (a) sufficient to pernfit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amouut of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal' agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bauk. Lender shall apply the Funds to pay the Escrow Itmns no later than the time specified under RESPA. Lender shall not charge Borrower tbr holding and applying rite Funds, annually a~mlyzing rite escrow account, or verifying rite Escrow Items, 'mfless Lender pays Borrower interest on rite Funds and Applicable Law pemfits Lender to nmke such a charge. Unless an agreement is made in writing or Applicable Law requires i[.terest to be paid on rite Funds, Lender shall not be required to pay Borrower any iuterest or earnings ou the Funds. Borrower and Lender can agree in writiug, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an ammal accounting of rite Funds as required by RESPA, If there is a surplus of Fuuds held in escrow, as defined under. RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 ~nonthly payments. If there is a deficiency of Finds 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 deficiency in accordance with RESPA, but in no more than 12 monflfly 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, cha~ges, 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 Commmfity Association Dues, Fees, and Assessmeuts, if any. To the extent that these items are Escrow Items, Borrower shall pay them in file maxmer provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a maturer acceptable to Lender, but only so long as Borrower is perfornfing such agreement; (b) cpntests rite lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opi~fion operate to prevent rite enforcement of tim lien while those proceedings are pending, but only until such proceedings are Concluded; or (c) secures frmn flxe holder of the lien an agreement satisfactory to Lender subordimating rite lien to this Security Instrument. If Lender deternfines that any part of rite Property is subject to a lien which can attain priority over fltis Security Instrmnent, Lender may give Borrower a notice identifying the (~-6(WY) Iooos) Pag~ s of is Form 3051 1/o I 654 lien Within 10 days of the d,tte on which that rtotice is given, Borrower shall satisfy the lien or take one or 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 and/or reporting service used by Lender in com~ection with fids 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 "xxtended coverage," and any other hazards including, 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 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, wlfich fight shall not be exercised um'easonably. Lender may require Borrower to pay, m co~mection with this Loan, either: (a) a one-time charge for flood zone detemfination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each tixne remappings or sinfilar changes occur wlfich reasonably might affect such deternfination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in com~ection with the review of any flood zone deternfina tion 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 particnlar type or amount of coverage. Theretbre, 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. nfighi provide greater or lesser coverage than was previousty in effect. Borrower acknowledges that the cost Of the insurance coverage so obtained ufight sig~fificantly 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 fi'om the date of disbursement and shall be payable, with such interest, upon notice from Lender to Bon:ower requesti~ig 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 staudard mortgage clause, and shall name Lei]der as mortgagee and/or as an addit)onal loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Leuder 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 destnlction of, the Property, such policy shall include a standard mortgage clause and shall ~mme Lender as mortgagee and/or as an additio~ml loss payee. In file 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. U~fless Lender a~d Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or rzpair of file Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the fight to hold such insurauce proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender nmy disburse proceeds for the repairs and restoration in a single payment or iu a series of progress payments as the work is completed. U~dess an agreement is made ~n 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 tbr 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 nqt econonfically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Inst~nment, whether or not then due, with (~'6(WY) Iooo5~ Page 6 of 15 Initials: i~' ~'~3 Form 30,51 1/01 the excess, if any, paid to Bori-ower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender nuy 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 ~s 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 tlfis Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned prenfiums paid by BorroweO under all insurance: policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender nhay 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 tl~e 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 mrreasonably withheld, or unless extennating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspectious. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property frown deteriorating or decreasing in value due to its condition. U~fless it is deternfined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if datnaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in com~ectim:t with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property duly if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation 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 nuke reasmuble entries upon and inspections of the Property. If it has reasomble cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persorks or entities acting at the direction of Borrower or with Borrower's knowle, dge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information0 in connection with the Loan. Material representations include, but ale not lilnited to, representations concenfing Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property ami Rights Under this Security Instrument. If (a) Borrower hils to perform the covenants and agreexnents contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condenmation or forfeiture, for enforcement of a lien which may attain priority over this Security Instnunent or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may ]o and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including pr0tectihg 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 Instmnsent; (b) appearing in court; and (c) paying reaso~mble (~-6(WY) Initials: ~--~ Page 7 o[ 15 Form 3051 1/01 ..-65-8 attorneys' fees to protect its interest in file Property and/or rights under this Security Instrument, including ~ts 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 doo::s and windows, drain water frown pipes, elinfi~te building or off,er code violations or dangerous conditions, and have utilities tamed on or off. Al. fl~ough Lender may take action ruder ~is Section 9, Lender does not have to do so and is not under any duty or obligation:to do so. It is agreed fl~at Lender incurs no liability for not tahng any or all actions au~orized under ~s Section 9. Any amounts disbursed by Lender under tiffs Section 9 shall become addi[io~ml debt of Borrower secured by tiffs Security Instrument. These amounts shall bear interest at fl~e Note rate from tim date of disbursement and shall be payable, wifl~ such interest, upon notice from Lender to Borrower requesting payment. If Otis Security Instrument is on a leasehold, Borrower shall comply With all fl~e proGsio~m of ~e lease. If Borrower acquires fee title to fl~e Property, fl~e leasehold and fl~e fee title shall not merge unless Lender agrees to fl~e merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a cendition of making fl~e Loan, Borrower shall pay fl~e prenfiums required to maintain fl~e Mortgage Insurance in efl~ct. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from tbe mortgage insurer previously provided such insurance and Borrower was required to make separately desig~mted payments toward fl~e premiums ~br Mortgage Insurance, Borrower shall pay fl~e prm~ums required to obtain coverage substantially equivalent to ~e Mortgage Insurance previously in effect, at a cost substantially equivalent to fl~e cost to Borrower of the Mortgage Insurance previously in effect, frown an alterxmte mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is available, Borrower shall continue to pay to Leuder fl~e amount of fl~e separately desigmted payments fl~at were due when fl~e i~urance coverage ceased to be in effect. Lender will accept, use a~d retain fl~ese payments as a non-re~ndable loss reserve in lieu of Mortgage h~uraxme. Such loss reserve shall be non-re~udable, notwithstanding fl~e fhct fl~at the Loan is ultinmtely paid in ~11, and Lender shall not be required to pay Bo~ower any interest or ear~fings on such loss reserve. Lender can no longer require loss reserve paymems if Mortgage Insurance coverage (in ~e axnount and for the pehod fl~at Lender requires) provided by an insurer selected by Lender again becomes awfilable, is obtained, and Lender requires separately designated payments toward fl~e preminnm for Mortgage Insurance. If Lender required Mortgage h~urance as a condition of making fl~e Loan and Borrower was required to nmke separately designated payments toward fl~e premimns Ibr Mortgage Insurance, Borrower shall pay ~e prenfiun~ required to maintain Mortgage hmurance in effect, or to provide a non-re,ridable loss reserve, until Lender's requirement for Mortgage I~urance ends in accordance wifl~ any written agreement between Borrower and Lender providing for such ter~ni~tion or until ten, ration is required by Applicable Law. Nothing in Otis Section 10 afI~cts Borrower'g obligation to pay interest at the rate provided in 0~e Note. Mortgage Insurance reimburses Lender (or any entity fl~at purchases fl~e Note) for certain losses it may incur if Borrower doe~ not repay the Loan as agreed. Borrower is not a party to tim Mortgage hlsurance. Mortgage insurers evaluate fl~eir total risk on all such insurance in force from time to dme, and nay enter into agreements wi~ off,er parties flat share or modify fl~eir risk, or reduce losses. These agreements are on terms and conditions fl~at are satisfactory to fl~e mortgage i~urer and fl~e ofl~er party (or parties) to these agreements. These agreements nay require fl~e mortgage insurer to make payments using any source of ~nds ~at fl~e mortgage insurer ~my have available (which nay include ~nds obtained frown Mortgage Insurance prm~un~). As a result of fl~ese agreements, Lender, any pnrchaser of the Note, an°fl~er i~urer, any reinsurer, any ofl~er entity, or any affiliate of any of fl~e lbregoing, ~my receive (directly or indirectly) amounts ~at derive from (or nfight be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying fl~e mortgage insurer's risk, or reducing losses. If such agreelnent provides fl~at an affiliate of: Lender takes a share of fl~e insurer's risk in exchange for a share of fl~e prenfiums paid to fl~e insurer, fl~e arrangement is often termed "captive reinsura~me." Furrier: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other ter~ns o~ the Loan. Snch agreements will not iucrease the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. ~6(WY) (ooos) Page e o* 16 Form 3051 1/01 657 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance uuder the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premimns that were unearned at the time of such cancellation or termination. 11. Assigument of Miscellaneous Proceeds; Forfeitare. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Leuder. If the Property is damaged, such Miscellaueous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the fight to hold such Miscellaneous Proceeds until Lender has had an oppo~'tunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is co~npleted. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not econonfically feasible or Lender's security would be lessened, the Miscellaneous. Proceeds shall be applied to the stuns secured by 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 iu 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 its value of the Propmty in which the fair market value of the Property iunnediately before the partial ta'king, destruction, or l~ss in value is equal to or greater thau the amount of thc sums secured by this Security Iustmmeut immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by tiffs Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fiactiou: (a) Om total amouut of the sums secured innnediately before rise partial taking, destruction, or loss in value divided by (b) the fair nmrket value 0f the Property inm~ediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property inunediately before the partial taking, destruction, or loss in value is less than the amount of the stuns secured inm~ediately 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 Instnnnent Msether 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 au award to settle a claim for danmges, Borrower fails to respond to Lender wiflfin 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Iustrument, whether or not risen due. "Opposing Party" means the third party fl~at 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 actio~.~ or proceeding, whether civil or criufinal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instnm~ent. Borrower canlcure such a default and, if acceleration has occurred; reinstate as provided its Section 19, by causing the faction or proceediug to be disnfissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other matefial impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for datnages 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 tim order provided for in Section 2. Initials: (~)¥6(WY) Iooos) : Page so[ ~s Form 3051 1/01 ... 658 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification 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 of Bon'ower. Lender shall not be required to connnence proceedings against any Successor in Interest of Bon'ower or to refi.~se to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original orrower or any Successors m Interest o[ Borrower. Any forbearance by Lender in exercising any right or remedy including, without ljndtation, Lender's acceptance of payments from third persmzs, entities or Successors in Interest of Borrower or in amounts less than the amount flxen due, shall not be a waiver of or preclude the exercise of any right or remedy. 1.3. Joint and Several Liability; Co-signers; Snccessors 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-sigmng this Security htstrument only to mortgage, grant and convey the co-signer's interest in the Property under file terms of this Security Instrmnent; (b) is not personally obligated to pay the sums secured by tiffs Security Instrunrent; arid (c) agrees fllat Lender and any other Borrower can agree to extend, modify, forbear or make any acconnnodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under tiffs Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrmnent unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in cmmection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under alas Security Instrument, including, but not linfited to, attorneys' lees, property inspection and valuation fees. In regard to any other fees, tile absence of express authority iu this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender nmy not charge fees that are expressly prolfibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or ofl~er loan charges collected or to be collected in cmmection with the Loan exceed the pemfitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce fl~e charge to the pemfitted limit; and (b) any sums already collected fi'om Borrower which exceeded pemfitted limits will .be refunded to Borrower. Lender may choose to make tbis refund by reducing fl~e principal owed under the Note or by making a direct payment to Borrower. If a retired reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under fl~e Note). Borrower's acceptance of any such refund made by direct paynrent to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in cmmection Milt this Security Instrument nmst be in writing. Any notice to Borrower in cmmection with tlfis Secnrity instrument shall be deemed to have been given to Bon'ower 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 tim 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 Bonower shall olay report a change of address fl~rot~gh flint specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class nmil to Lender's address stated herein unless Lender has designated another address by notice tO Borrower. Any notice in cmmection with this Security Instrument shall not be deemed to have been g~ven to Lender until actually received by Lender. If any lmtice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement .under this Security Instrument. Initials: ~'~'. ~/--~/'~.~ (~-6(WY) (0oo5) Page ~o of ~6 Form 3051 1/01 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 Insmnnent are subject to any requirements and limitations of Applicable Law. Applicable Iraw might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silenCe shall not be construed as a prohibition 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 provisim~s of tlfis Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Securi(y Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the femixfine gender; (b) words in the singular shall mean and include the plural and vice versa; aud (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instmnxent. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest iu the Property" means any legal or beneficial interest in the Property, iucluding, but not limited to, those beneficial interests 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 the Property or any Interest in the Property is sold or transferred (or if Borrower is not a mitural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender nmy require inunediate 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 tlfis option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days front the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender nmy invoke auy remedies pernfitted by this Security Instrument without fi~rther notice or demand on Borrower. .19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontiuued at any ti~ne 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 termim~tion 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 as if no acceleratiou had occurred; (b) cures auy default of any other covenants or agreements; (c) pays all expenses incurred iu enforcing this Security Instrument, including, but not linfited to, reasmmble attorneys' 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 Instrument; and (d) takes such action as Lender may reasom~bly require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security -Instrument, shall continue unchanged. Lender may require that Borrower pay' such reinstatement sums and expenses in one or more of tlw 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) Electrmfic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall reumin fully effective as .if no acceleration had occurred. However, this ?ight to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loau Servicer; Notice of Grievance. The Note or a partial interest iu the Note (together with this Security lnstmmen0 can be sold one or more times without prior notice to Borrower. A sale nfight result iu a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan serviciug obligations under the Note, this Security Instrument, and Applicable Law. There also ~night be one or more changes of the Loan Servicer urn'elated to a sale or-the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the nev~ Loan Servicer, the address to which payments should be nmde and any other information RESPA Initials: (~-6(WY) (ooosl Page 11 Of 15 Form 305i 1/01 requires in com~ection with a :nOtice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, file umrtgage loan servicing obligations to BorroWer will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser mfless otherwise provided by the Note purchase]:. Neither Borrower nor L~nder ~nay commence, join, or be joined to auy 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, tltis Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance w~th the requirements of Section 15) of such alleged breach aud 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 file notice of acceleration given to Borrower pm:suant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of tiffs 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: gasolinel kerosene, off,er flannnable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials contailfing asbestos or formaldehyde, and radioactive materials; (b) "Enviro~unental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or envJromneutal protection; (c) "Enviromuental Cleanup" includes any respouse action, remedial action, or removal action, as defined in Enviromnental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, 'or otherwise trigger an Environmental Clea~mp. Borrower shall not cause 'or permit the presence; use, disposal, storage, or release of an3, Hazar'dous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Enviromnental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to file presence, use, or storage on file Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nornml residential uses and to maintenance of file Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by anY governmental or regulatory agency or private party involving the Property and any Hazardous Substa~me or Environmental Law. of which Borrower has actual knowledge, (b) any Enviromuental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, a~d (c) any condition caused by file presence, use or release of a Hazardous SubstanCe which adversely affects the value of the Property. If Borrower learns, or is notified by auy govermnental or regulatory authority, or any private party, that any removal or other r'eumdiation of any Hazardous Substauce affecting the Property is necessary, Borrower shall Promptly take all necessary remedial actions in accordance with Enviromnental Law. Nothing herein shall create any Obligation on Lender for an Enviromnental Cleatmp. , 1~-61w¥1 iooo~ Form 3051 1/01 -- 661 NON-UNIFORM COVENANTS. Borrower and Lender furfl~er covmmnt and agree as follows: 22. Accelerntion; Remedies. Lender shall give notice to Borrower prior to ncceleration following Borrower's breach of any covenant or ngreement in this Security Instrnment (but not prior to acceleration under Section 18 unless Applicable Law provides othenvise). Tile notice shall specify: (a) tile default; (b) the action required to cure the default; (c) a date, not less than 30 days frmn the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure tile default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrmnent and sale of the Property. The notice shall further inform Borrower of the right to reiustnte after acceleration and the right to bring a court action to nssert the non-existence of a default or any other defense of Borrower to accelerntion and sale. If the default is not cured on or before the date specified iii the notice, Lender at its option tony require immediate payment iii full of all stuns secured by this Security Instrument without further demand and may invoke tile power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred iii pursuing the remedies provided iu this Section 22, including, but not limited to, reasonnble attorneys' fees an ri costs of title evidence. If Leuder invokes the power of sale, Leuder shall give notice of intent to foreclose to Borrower and to the person iii possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower iii the manner provided iii Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manuer 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 fills Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender umy charge Borrower a fee for releasing riffs Security Instrument, but oaly if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights uuder and by virtue of the homestead exemption laws of Wyoming. (~)~-6(WY) 1ooo51 Page ~aof 15 ' Form 3051 1/01 GG2 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in ary Rider executed by Borrower and recorded with it. Witnesses: CHAD ERICKSON (Seal) -Borrower DEBRA P ERICKSON -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~;6(WY) moos) Page 14 of 15 Form 3051 1/01 STATE OF WYOMING, LINCOLN The foregoing instrument was aclo]owledged before me this by CHAD ERICKSON AND DEBRA P ERICKSON County ss: My Commission Expires: Notary~j ic (~)~6G(WY) (ooos) Page ~ 5 of 15 Initials: Form 3051 1/Ol LEGAL DESCRIPTION Part of Section 12, T31N Rll9W of the 6th P.M., Lincoln County, Wyoming, it being the intent to more correctly describe the land contained in Warranty Deed recorded August 24, 1983 in Book 204PR on page 475 and Quitclaim Deed recorded December 12, 1983 in Book 208PR on page 424 of records of I,incoln County Clerk, more particularly described as follows: BEGINNING at a point which is 100 feet South of the Northeast corner of the SE~/~ of said Section 12 and running thence South 284.40 feet (previous record 263 feet) to the Northeast corner of the land contained in Warranty Deed recorded July 5, 1972 in Book 100PR on page 280 of records of Lincoln County Clerk, said tract being 384.40 feet (previous record 22 rods) South of the Northeast corner of the SE~,~ of said Section 12; thence S 89o32'50'' W, 1466.71 feet (previous record 88-8/9 rods), along the North boundary line of the land recorded in Book 100PR on page 280; thence North, 296.00 feet (previous record 263 feet); thence East, 1466.67 feet (previous record 88-8/9 rods) the POINT OF BEGINNING.