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HomeMy WebLinkAbout899436Return To: WELLS FARGO HOME MORTGAGE 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MAI 55435 899h36 Prepared By: WELLS FARGO BANK, N.A. RECEIVED LINCQL.!,.! OOUNTY CLERK 1919 DOUGLAS,, OMAHA, 681010000 NE [SI)ace Above Tiffs Lh~e For Recordhtg Data] MORTGAGE DEFINITIONS Words used in multiple sections of this document are deftned 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 document are also provided in Section 16. (A) "Security Instrument" means this document, which is datedMAY 14, 2004 together with all Riders to th,s docmnent. 0t) "Borrower" is R. STEVE FLOYD AND DEBRA L. FLOYD, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "Lender" is WELLS FARGO BANK, N.A. Lender is a NATIONAL AS~iOCIATION organized and existing under file laxvs of THE UNITED STATES 0041742248 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6(WY) 100061 . VMP MORTGAGE FORMS - (800}521-7291 Form 3051 1/01 Lender's address is P.O. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instrmnent. (D) "Note" ]neans the pronfissory note signed by Borrower and datedMk¥ 14, 2004 The Note states that Borrower owes Leuder ONE HUNDRED EIGHTY ON~. THOUSAND 3,1,113 00/100 Dollars (U.S. $ * * * * 181, 000.00 ) plus interest. Borrower has prontised to pay this debt in regular Pehodic Payments and to pay the debt:in fidl not later than allN~. 01, 2034 (E) "Property" memm the property that is described below uuder the 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 Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that' are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~ Condonfinium Rider [--~ Second Ho~ne Rider ~-] Balloon Rider ~ Plam~ed Unit Development Rider ~ 1~4 Fanfily Rider ~ VA Rider ~ Biweekly Payment Rider ~ Otl~er(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opi]fitins. 0) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condonfi]fium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction origi~mted by check, draft, or sinfilar paper instrument, which is initiated through an electro]tic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial iustitution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, autonmted teller machine transactions, transfers initiated by telephone, wire transfers, and autonmted clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of danmges, 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 oi, the Property; (ii) condenmation or other taldng of all or any part of the Property; (iii) conveyance in lieu of condeImmtion; or (iv) nfisrepresentations of, or onfissions 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. (iN) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amouuts under Section 3 of this Security lnstnm]eut. (O) "RESPA" means 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 fl~ey nfight be amended from time to time, or any additional or successor legislation or regulation that governs the same subject nmtter. As used in tiffs Security InsU-ument, "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. Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; alid (ii) the perfornmnce of Borrower's covenants and agreements under this Secm-ity Instrument and the Note. For this 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 lurisdicti0n] SEE ATTACHED LEGAL DESCRIPTION *SEE ADJUSTABLE RATE RIDER Parcel ID Number: 181 SANDERSON RD ETNA ("Property Address"): which currently has the address of [Street] [City] , Wyoming 8 3 118 [Zip Cone] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS flint Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encmnbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines unitbrm covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a mfi/brm security instrument covering real property, UN1FORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be ~nade in U.S. currency. However, if any check or other instrument received by Lender as paymeut under the Note or fids (~-fi(WY)' Iooos) Page 3 o[ 16 Form 3051 1/01 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and fids Security Instrmnent be made itl 6ne or nmre of the following /brms, as selected 'by Lender: (a) casg.; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated itt file Note or at such oilier location as may be desigm~ted by Lender in accordance with file notice provisions ill Section 15. Lender nmy remm any payment or partial payment if file payment or partial payments are insufficieut to bring file Loan current. Lender nmy accept any paymcm or partial payment insufficient to bring file Loan current, withom waiver of any 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 file time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Leuder need not pay interest on unapplied funds. Lender may hold such mmpplied funds until Borrower makes payment to bring the Loan currma. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note inm~ediately 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 this Security Instrument or perforating file covetmuts and agreements secured by fids Security Ins trmnent. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all paymems accepted and applied by Lender shall be applied in file lbllowing order of priority: (a) interest due under the Note; (b) principal due umler the Note; (c) amounts due under Section 3. Such pay~nents shall be applied to each Periodic Payment in file order in which it became due. Any remaining amounts shall be applied first to late charges, second to arty other amounts due under this Security Instrmnent, and then to reduce the principal balance of the Note. If Lender receives a pa~yment 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 and the late charge. If more than One Periodic Payment is outstanding, Lender nmy apply any payment received from Borrower to the repay~nent of the Periodic Payments if, and to file extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to file full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Vohmtary prepayments shall be applied first to any prepay:~tent charges and then as described in fl~e Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or p~ostpone the due date, or change file amount, of the Periodic Payments. 3. Funds for Escrow ite~ns. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in fUll, a sum (rite "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items wlfich can attain priority over this Security Instrmnent as a lien or encmnbrance on the P, roperty; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premimns, if any, or any sams payable by Borrower to Lender in lieu of the payment of Mortgage Insurance prentiums in accordance with the provisions of Sectiou 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Cmmlmnity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, tees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all.notices of amounts to be paid under fids Section. Borrower shall pay Lender file 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 ally tim6. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, rite amounts (~-6(WY) tooosl P~g~ 4 ol~ 15 Form 3051 1/01 due for any Escrow Items for wlfich payment of Funds has been waived by LeMer and, if Lender requires, shall furnish to Lender receipts evidencing such paymen[ widfin such time period as Lender may require. Borrower's obligation to make such paymen[s and to provide receipts shall tbr all purposes be deemed to be a covenant and agreement contained in fids Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Bon~0wer is obligated to pay Escrow I[mns directly, pursuant to a waiver, and Borrower fails to pay the amount due ~br an Escrow Item, Lender may exercise its fights under Sectiou 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section l~ and, upon such revocation, Borrower shall pay to Lende~ all Funds, and in such amounts, that are then required under fids Section ~. Lender may, at aw time, collect aM hold Funds in an amount (a) sufficieut to penuit Lender to apply file Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall esti~nate the amount of Fuuds due on the basis of cra-rent data and reasonable esfinmtes 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 (inc!uding Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower lbr holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow ltmns, unless Lender paYs Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is umde in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eanfings on the Funds. Borrower and Lender eau agree in writing, however, that interest shall be paid on the l~unds. Lender shall give to Borrower, without charge, an ammal aCcounting of the Funds as required by RESPA, If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by 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 ~nonflfly payments. Upon payment in full of all stuns secured by fids 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 Coimnmfity Association Dues, Fees,' and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the nmiiner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument mfless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a tnanner acceptable to Lender, but only so long as Borrower is pertbnning such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien iu, legal proceedings which in Lender's opinion operate to preveut the enforcement of the lien while those proceedings are pending, but oniy until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the Page 5 ot 15 initials,~"'. ~ ' Form 3051 1/01 lien. Within 10 days of the date on which fl~at notice ~s giveu, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender nmy require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in cmmection with this Loau. 5. Property Insurance. Borrower shall keep the improvements uow existing or hereafter erected on the Property insured against :loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be nmintained in the amounts (including deductible levels) and for the periods that Le~xler reqmres. What Lender requires pursuant to the preceding sentences can change during file term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's righ~ to disapprove Borrower's. choice, which right shall not be exercised unreaso~mbly. Lender may require Borrower to pay, in cotmection with fllis Loan, either: (a) a one-time charge for flood zone determi~mtion, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Ma~mgement Agency in connection with the review of any flood zone detemfination resulting t¥om an 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 might or nfight not protect Borrower, Borrower's equity in the Property, or file contents of the Property, against any risk, hazard or liability and mighi' provide greater or lesser coverage titan was previously iu effect. Borrower acknowledges that the cost of file insurance coverage so obtained might sig~fificantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Leuder under fids Section 5 shall become additio~ml debt of Bqrrower secured by 'this Security Instrmneut. 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 right to disapprove such policies, shall include a standard mortgage clause, and Shall ~mme Lender as mortgagee and/or as an additio~ml loss payee. Lender shall have the right to hold file policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premimns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for danmge to, or destruction of, the Property, such policy shall include a standard mortgage clauge and shall name Lender as mortgagee and/or as an additioiud loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender nmy nmke proof of loss if not made promptly by Borrower. U~fless 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 economically feasible' and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Uxfless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees lbr public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be file sole obligation of Borrower. if the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to fl~e sums secured by fids Security Instrument, whether or not then due, with (~I~-6(WY) (ooosl Page 6 of 15 Form 3051 1/01 870 the excess, if any, paid to Bmrower. Such insurance proceeds shall be applied in the' order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related nmtters. If Borrower does not respond wiflfin 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender nmy negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires tim Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under file Note or this Security Instrmnent, and (b) any other of Borrower's 'rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender nmy use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or fids Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use rte Property as Borrower's principal residence wiflfin 60 days after the execution of this Security Instrmnent 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 um'easonably wifltheld, or mdess extelmating circumstances exist which are ~eyond Borrower's control. 7. Preservation, Maintenance and Protection or' the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or corm~fit waste on fl~e 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 is detemfined pursuant to Section 5 that repair or restoration is ~mt econonfically feasible, Borrower shall promptly repair the Property if damaged to avoid l'urther deterioration or danmge. If insurance or condemnation proceeds are paid in com~ection with dmnage to, or the talcing of, the Property, Borrower shall be responsible for repairing or restoring the Property olfly 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 condenmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation tbr the completion of such repair or restoration. Lender or its agent may make reasona'ble 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 tiine of or prior to such an interior inspecuon specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in dethult 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 thlse, nfisleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in comlection with the Loan. Material representations include, but are not Ii,niter to, representatiuns concenfing Borrower's occupancy of file Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower thils to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that mit, lit siglfificantly affect Lender's interest in the Property and/or rights under fids Security Instrmnent (such as a proceeding in bankruptcy, probate, for condenu~ttion or forfeiture, for e~fforcemem of a lien which may attaru priority over fids Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Leuder may 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 fl~e Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any stuns secured by a lien which has priority over this Security Instnunent; (b) appearing in court; and (c) paying reasonable (~re-6(WY) (ooo~! P~ 7 of ~ Form 3051 1/01 87.1. attorneys' fees to protect its interest in the Property and/or rights under this Seem-try Instrmnent, including its secured position in a bankruptcy proceeding. Securing file Property includes, but is not limited to, entering the Property to makff repairs, change locks, replace or board tip doors and windows, drain water fi'om pipes, elinfinate bnildi~tg or other code violations or dangerot,s conditions, and have 'utilities au<ed on or off. Although Lender fieay take action under this Section 9, Louder does not have to do so and is not under any duty or obligation' to do so. It is agreed that Lender iacm's no liability for not taking any or all actions authorized under fids Section 9. Any amouuts disb'ursed by Lender under fids Section 9 shall become additional debt of Borrower secured by this Security lnstlrument. These amouuts shall beat' interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If fids Security Instruntent is on a leasehold, Borrower shall comply with all the provisions of file lease. If Borrower acquires l."ee title to file Property, fl'w leasehold and file fcc title shall not merge unless Lm~ler agrees to the merger m writing. 10. Mortgage Insurance. If Lender required Mortgage Insm'aoce as a condition of ~mtking the Loan, Borrowm- shall pay the premiums required to maintain the Mortgage Insurance in eft'ecl. If, for auy reason, the Mortgage Insurance coverage required by Lender ceases to be available l:rom.the mortgage insurer that previously provided such insmance and Borrower was required to make separately desiglmtcd payments toward the premiums fi)r Mortgage Insm'ance, Borrower shall pay the prenfiutns 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 itl effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately desig~mted payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use aud retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refimdable, notwithstanding the fact that the Loan is ultinu~tely paid in fidl, and Lender shall not be required to pay Borrower any interest or eanfings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount aud for fl~e period that Lender requires) provided by an rosin'er selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the prenfimns for Mortgage lnsm'auce. If Lender required Mortgage Iusurance as a condition of ~ma'king the Loan and Borrower was required to make separately dcsig~mted paynrents toward the premit, nns for Mortgage Insurance, Borrower shall pay file prenfiums required to maintain Mortgage Insuranqe in effect, or to provide a non-refimdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreclnent between Borrower and Lender providing for such tetrmilmtion or until ternmmtiou is required by Applicable Law. Nothing in fl-ds Section 10 affects Bon'ower's obligation to pay interest at file rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity rial purchases the Note) Ibr certain losses it may iucur if Borro~ver doe[*, not repay the Loan as agreed. Borrower is not a party to file Mortgage Insurance. Mortgage insurers evahiate their total risk on all such insurance in force fi'om time to time, and may enter into agreements wifl~ other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfitctory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the nmrtgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these ag(eenrents, Lender, any purchaser of the Note, another insurer,, any reinsurer, any other entity, or any affil[ate of any of the foregoing, may receive (directly or indirectly) anmunts that derive from (or nfight be characterized as). a portion of Borrower's payments tbr Mortgage Insurance, iix exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in eXChange for a share of the prenfiums paid to the insurerI the arrangement is often termed "captive reinsurance." Further/ (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe t'or Mortgage Insurance, and they will not entitle Borrower to any refund. · Ir~idal~i. _ _ (~(e-6iWY) Iooosl P~j* 8 o~ ~ 8 Form 3051 1/01 -.. 872 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to tile Mortgage Insurance under the HomeOwners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of tile Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Mk(cellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid tO Lender. If the Property is damag'ed, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible aud Lender's security is not lessened. During such repair and restore'lion period, Lender shall bare the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as file work is completed. Unless aa agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest, or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sunrs secured by 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 in value of the Property, file 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 Bor!~ower. In the event ~0f a partial taking, destruction, or loss in value of the Property in which the fair market value of file Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before file partial taking, destruction, or loss in value, mfless 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 i~mnediately before tile partial taking, destruction, or loss in value divided by (b) the fair nmrket value of the Property immediately before the partial taking, destruction, or loss ~in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property iu which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the a~nount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, file Miscellaneous Proceeds shall be applied to file 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 daumges, Borrower fails to respond to Lender witlfin 30 days after the date tile notice is given, Lmder is autilorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to file stuns secured by this Security Instrument, whether or not then due. "Opposing Party" means file third party that owes Borrower Miscellaneous Proceeds or file party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, wi!ether civil or crinfi~ml, is begun that, in Lender's judgment,, could result in forfeiture of the Property or other uuaerial impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a delhult and, ii' acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim tbr da~nages that are attributable to file 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. (~-6(WY) looos} Page 9 of 15 Form 3051 1/01 873 12. Borrower Not Released; Forbearance By Lender No! a Waiver. Extension of the time for payment or modification of amortization of the sunls secured by fids Security Instrmnent granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release rite liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to conmm~ce proceedings against any Successor in Interest of Borrower or to refuse to extend time tbr payment or otherwise modify amortization of file sums secured by fids Security Instrument by reason of any denmnd made by the original Borrower or any Successors in Interest of Borrower. Any Ibrbearance 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 the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who 'co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-sighting this Security Instrument only to nrortgage, grant and convey the co-signer's interest iu the Property under the terms of fids Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrmnent; and (c) agrees tha't Lender and any other Borrower can agree to extend, modify, forbear or make any acconm~odations wi3~ regard to the terms of this Security fustrument 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 tiffs Security Instrument ill 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 fids Security Instrument mdess 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 connection with Borrower's default, for file pdrpose of protecting Lender's interest in file Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property ,inspection and valuation fees. In regard to any other fees, the absence of express authority ill this Security Instrument to charge a specific fee to Borrower shall not be crnstrued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by tiffs Security Instrmnent or by Applicable Law. If the Loan is subject to a law which sets maxinmm loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected itl connection with the Loan exceed the permitted limits, then: (a) anx such loan charge shall be reduced by rite amount 'necessary to reduce the charge to the permitted linfit; and (b) any sums already collected l¥o~n Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by nhaking a direct payment to Borrower. Ifa refund reduces principal, the reduction will be treated as a partial prepayment without any prepaylnent 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 nfight have arising out of such overcharge. 1.5. Notices. All notices given by Borrower or Lender ill connection with this Security Instrument lnnSt be in writing. Any notice to Borrower in connection with this Security Instru~nent shall be deemed to bare 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 mfless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of 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 only one designated notice address under this Security Instrmnent at ally one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice ilx connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under tiffs Security Instrmnent. initialS(: ~ (~-6(WY) 1ooo5} , Page ~o ot ~6 Form 3051 1/01 874 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and me law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and linfitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it ufight be silent, but such silence shall not be construed as a prolfibition against agreement by contract. In file event that any provision or clause of this Security Instrmnent or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of tiffs Security Instrmnent or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the nmsculine gender shall mean and include corresponding neuter words ar words of the feminine 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 Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest ill file Property, including, but not linfited to, those beneficial interests tra~zsferred in a bond tbr 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 natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consem, Lender nmy require inm~ediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 wiflfin 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 any remedies permitted by this Security Instrument without further notice or denmnd on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the righi to have e~fforcement of this Security Instrument discominued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrmnent; (b) such other period as Applicable Law nfight specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all stuns which then would be due raider this Security Instrmnent and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not linfited to, reasonable attorneys' lees, property inspection and valuation lees, 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 nmy reasonably require to assure that Lender's interest in the Property and rights under this Security Ii~strument, and Borrower's obligation to pay the sums secured by tiffs Security Instrmnent, shall continue unchanged. Lender nmy require that Borrower pay such reinstatement stuns ami expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided ally such check is drawn upon an institution whose deposits .'ire insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstate~nent 'by Borrower, tiffs Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change' of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or ~nore times without prior notice to Borrower. A sale might result in a change in the entity (k~mwn as the "Loan Servicer") that collects Periodic Payments due ureter the Note and this Security Instrument and performs other mortgage loan servicing obligations under th~. Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer uurelated to a sale of file Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change wlfich will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA (~-6(WY) Iooosl Page ~ of Is Form 3051 1/01 875 requires in connection 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, the mortgage 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 purchasei' mdess otherwise provided by the Note purchaser. Neither Borrower nor Lender may conm~ence, join, or be joined to any judicial action (as either an individual litigant or the men,bet of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges fl~at 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 the giviug of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. H,tzardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Envirolm~ental Law and the following substances: gasoline, kerosene, other flanm~able or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Enviromnental Clea~mp" includes any response 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 Envirmnnental Cleanup. Borrower shall not cause' or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to relehse 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 l~nviromnental La)v, (b) which creates an En¢iromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates,ia condition that adversely affects the value of the Property. The preceding two sentences shall not appl~;, io the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to nmintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involx4ng the Property and any Hazardous Substance or Bnvimmnental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Sul:?stance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory autlmrity, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmemal Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. Initial t.~.~-6(WY) Iooo5l Pag. ~2 o~ ~5. Form 3051 1/01 8?6 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides othe~vise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration aud sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require innnediate payment in full of all sums secured by this Secarity Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent ~o foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of t2~e sale to Borrower in the mauner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or Persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release Security Instrument. Borrower shall pay any recordation costs. Lender may clmrge Borrower a fee for releasing this Security Instrument, but only 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 under and by virtue of the homestead exemption laws of Wyoming, ~-6(WY) (oo061 P.g. ~3 of ~s Form 3051 1/01 InitialsSJ[~ 877 BY SIGNING BELOW, Borrower accepts and agrees to fl~e terms and cove~mnts contained in tiffs Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: R. STEVE FLOYD -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrowel (Seal) (Seal) -Borrower -Borrower (~6(WY) (0006) P~. ~4 ot ~6 Form 3051 1/01 STATE OF WYOMING, ~.'ri~t LINCOLN The foregoing insu'umen£ was acknowledged before me by R. STEVE FLOYD JklqD DEBILK L. FLOYD County ss: My Commission Expires: Nora ry~ ic (~-6G(WY) [ooosl Page 16 of 16 Form 3051 1101 LEGAL DESCRIPTION '879 The land in the SE¼SW¼ of Section 26, T36N Rll9W of the 6th P.M., Lincoln County, Wyoming, being part of that tract of record in the Office of the Clerk of Lincoln County in Book 248PR on page 310, described as follows: BEGINNING at a 3/8" x 12" steel spike on the south line of said SE¼SW¼, S 89o37.5, E, 15.90 feet, fi'om the southwest corner of said SE¼SWV4; thence S 89o37.5' E, 411.00 feet, along said south line, to a 3/8" x 12" steel spike; thence N 00o09.9' W, 30.00 feet to a point on the northerly right of way line of the Sanderson Lane County Road No. 12-107; thence continuing N 00o09.9, W, 526.86 feet to a point; thence N 82040.2' W, 154.26 feet to a point; thence S 64o19.0, W, 40.23 feet to a point; thence S 25o28.0, W, 153.18 feet to a point; thence S 23o11.0, W, 197.62 feet to a point; thence S 17o55.2' W, 217.05 feet to a point on said northerly right of way line; thence continuing S 17o55.2, W, 31.46 feet to the SPIKE OF BEGINNING. 88O FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Rate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is made this 14TH day of MAY, 2004 , and is incorporated into and shall be deemed to amend and supplemeut the lvlortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to WELLS FARGO BANK, N.A. ("Lender") of the same date and covering the property described in the Security Instrument and located at: 181 SANDERSON RD, ETNA, WY 83118 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenauts and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 4. 375 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of JUNE, 2011 , and the adjustable interest rate I will pay may change on that day every 12th mouth thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable imerest rate could change, is called a "Change Date." 0041742248 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Single Family - Fannie Mae Unife rm Instrument Page 1 of 4 nitials: VMP MORTGAGE FORMS - 18001521-7291 88i (B) The Index Begimfing with the first Change Date, my adjustable interest rate will be based on an Index The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant nmturity of one year, 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 ~s no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AlqD THREE-QUARTERS percentage points ( 2.75O %) 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 linfits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that 1 am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my nmnthly 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 9.3 7 5 % or less than 2.7 5 0 %. Thereafter, my adjustable interest rate will never be increased cr decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 9.3 ? 5 %. 0g) 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 begimfing on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my imtial fixed interest rate to an adjustable interest rate and' of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monflfly payment, any intbrmation required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, U~fiform Covenant 18 of the Security instrument shall read as follows: (~843R (0006) Page 2 of 4 " Form 3182 1/01 Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but trot limited to, those beneficial interests transfen'ed in a bond for deed, contract tbr 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 natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender nuty require mm~ediate payment in full of all stuns secured by tiffs Security Instrument. However, this option shall not be exercised by Lender if such exercise ~s prolfibited 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 fi'om the date the notice is given in accordance with Section 15 within which Borrower must pay all stuns secured by tlfis Security Instrument. If Borrower fails to pay these stuns prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or denmnd on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security h~strument described in Section B1 above shall then cease to be in effect, and the provisions of Umform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred in a bond lbr deed, contract Ibr 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 ~e Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require i~mnediate payment in full of all sums secured by this Security Instrument. However, tiffs option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise tlrs option it': (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as il' a new loan were being made to the transferee; and (b) Lender reasonably detemfines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreemem in tiffs Security Instrument is acceptable to Lender. To the extent pernfitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assmnption. Lender also may require the transferee to sign an assumption agreement that i.s acceptable to Lender and that obligates the transferee to keep all the promises and agreements ~nade in the Note and in this Security Instrument. Borrower will continue ;o be obligated under the Note and this Security Instrument mdess Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Bm-rower must pay all I~843R (0006) Page 3 of 4 Form 3182 1/01 883 sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of tiffs period, ::Lender ~nay invoke any remedies pernfitted by this Security Instrun~ent without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. (Seal) ri _ ,~ ;r3(. (eal) R. STEVE FLOYD -Borrower DEBR~ 1'..~1'.O~1 /' -- - ~- -B~rrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~843R (0006) Page 4 of 4 Form 3182 1101