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HomeMy WebLinkAbout899604AfterRecording Retum To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prepared By: REBECCA STEVENSON 89960[ RECEIVED LINCOLN COtJNTY CLERK 0qH~¥25 PH 2:19 [Space Above This Lh~e For Recordh, g Data] 30568 [Escrow/Closing 4] MORTGAGE MIN 0004521343305004 [Doc ID 1000157-0003593509-3 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instn~ment" metals this document, which is dated with all Riders to this document. 0~) "Borrower" is MATTHEW R SEEVER, A SINGLE MAN MAY 20, 2004 , together Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS ,s a separate corporation that is acting solely as a nominee for Lender and Lender's successom and assigns. MERS is the mortgagee under fids Security Instrmnent. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS (D) "Lender" is COUNTRYWIDE HOME LOANS, INC. Lender is a CORPORATION organized and existing under the laws of NEW YORK Lender's address is 4500 Park Granada, Calabasas, CA 91302-1613 (E) "Note" means the promissory note signed by Borrower and dated MAY 20, 2004 . The Note states that Bon'ower owes Lender TWO HUNDRED TWENTY THREE THOUSAND TWO HUNDRED and 00/100 Dollars (U.s. $ 223,200.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in fidl not later than JUNE 01, 2034 ~) "Property" means the propertY that is described below under the heading "Transfer of Rights in the Pr'operty." WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS Page 1 of 11 (~i®-6A(WY) (0005) CHL (08/OO)(d) VMP MORTGAGE FORMS- (800)521-7291 CONV/VA Initials: Form 3051 1/01 * 23991 * * 045213433000002006A' DOC ID #: 0004521343305004 (O) "Loan" means the debt evidenced by the Note, plus interest, any pr~paymem charges, and late charges due under the Note, and all sums due under this Securi~ Instrument, plus interest. (~ "Riders" means all Riders to this Security Instrument that are executed by Bo~ower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider ~ Condominimn Rider ~ Second Home Rider ~ B~flloon Rider ~ Phmned Unit Development Rider ~ 1-4 Family Rider ~ VA ruder ~ /4iWeekly Payment Rider ~ Other(s) [special (I) "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 appligable final, non-appealable judicial opinions. (J) "Commmfity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electro~fic Funds Transfer" means any transfer of funds, other than a transactiou originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credi[ an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire n'ansfers, and automated clearinghouse transfers. (L) "Escrow Ite~ns" means those items that are described in. Section 3. tM) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds p,'fid under the coverages described in Section 5) for: ti) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentatmns of, or omissions as to, the value and/or condition of the Property, tN) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for ti) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "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 they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "feder,'dly related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note m~d/or this Security Instrument. TRANSFER OF'I%IGHTS 1N THE PROPERTY This Security Instrument secures to Lender: ti) the repayment of time Loan, and all renewals, extensions and modifications of time Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Len'der and Lender's successors mid assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the COUNTY Of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jufisdiclionl LOT 25, RIVER VIEW MEADOWS ADDITION TO THE TOWN OF ALPINE WITHIN THE SE1/4 'OF SECTION 30, T37N, RiiSW, ACCORDING TO THAT PLAT FILED JULY 2, 1993 AS INSTRUMENT NO. 767416.. Parcel ID Nuinber: 3718 3 0 4 0 0 0 2 5 0 0 which currently has the address of 326 SNAKE RIVER DRIVE, ALPINE [Street/City] Wyoming 8 312 8 ("Property Address"): . [Zip Code] (~)®-6A(WY) (ooo5) CHL (08100)' Page 2 of 11 Initials :!/~/ Form 3051 1/01 633 DOC ID #: 0004521343305004 TOGETItER 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 understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instmmenl, but, if necessary to comply With law or custotn, MERS (as nominee for Lender and Lender's successors ~nd;ass~gns) has the right: to exercise any or all of those interests, inc]nding, but not limited to, the right to foreclose and sell the Property; .and to take any action required of Leuder including, but not limited to, releasi~qg and canceling this Security Instrmnent BORROWER COVENANTS that Borrower is lawfully seised o/' the estate hereby conveyed and has the rigbt to mortgage, grant and ct)nvey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demmlds, subject to arey encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations.by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Paymeut of P~fncipal, h'retest, 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 ',dso pay funds for Escrow Items pursuant to Section 3. Payments due under-the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instlmment received by Lender as payment under the Note or this Security Instrument is returned to Lender .unpaid, Lender may require that any or all subsequent payments due Under the Note and this Security Instrumem be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, iustrumentality, or entity; or (d) Electronic Funds Tr{nsfer. 'Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payinent or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accel:t any payment or partial payment insufficient to bring tlie Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the fim~re, but Lender is not obligated to apply such payments at the time such pay~nents are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on nnapplied 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 remm them to Borrower. If not al)plied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to for6closure. No offset or claim which Borrower might have now or in the furore against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrnment. 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'iNote; (c) amounts due nnder Section 3. Such payments shall be applied to each Periodic Payment in the ordt~r in which it became due. Any remaining amounts shall be applied first to late charges, second to any other ~im°unts due tinder this Security h~strument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late ~2harge due, the paYment may be applied to the delinquent payment and the late charge. If more than one Periodi~ Payment is outstanding, Lender may apply any payment received from BOrrower to the repayment of the~Periodic Payments if, mid to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is al)plied to the hill payment of one or more Periodic Payments, such excess xnay be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment ch~ges 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 ~he due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Iteins. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid ir' full, a stun (the "Funds") to provide for paymeut of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) preminms for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed !)y Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower Shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow 7.terns 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 Initials: (/~-S (~®-fiA(wy) (0005) CHL (08/00) Pa§e 3 of 11 Form 3051 1/01 '., 634 .., DOC ID #: 0004521343305004 Items at any time. Any such waiver!may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipt,~ evidencing such payment within such time period as Lendei may require. Borrower's obligation to make snch payments and to provide receipts shall for ail purposes l:i,e deemed to be a coven,mt and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to ~ waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise, its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lend~r any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice giveln !n accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and itl su!zhlamounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under: RESPA, and (b) not to exceed the maximum amount ti lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates pf expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be heldin an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified nnder RESPA. Lender sh}dl not charge Borrower for holding and applying tile Funds, anmlally amdyzing the escrow account, or verifying the Escrow ~tems, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make suc, h: a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the ?u, nds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that iuterest shall be paid on the Funds. Lender shall give to Borrower, wi(h0ut charge, an annual accounting of the Funds as required by RESPA. If there is a suq)lus 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 RE,~;PA, but in no more than 12 monthly payments. Upon payment in f~ll of all sums secured by this Security Instrunmnt, Lender shall promptly refund to Borrower any Funds held by Lender: 4. Charges; Liens. Borrowe,: 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 Commmfity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly di,~charge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by tile lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of thC lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while tho:~e.proceedings are pending, but only 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 lien. Within 10 days of the date on which that notice1,.~'~ 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 connectioi;i with this Loan. 5, Property Insurance. BorroWer shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and 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 tile term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone detennination,.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 ,'dso be responsible for the payment of any fees imposed by the Federal Emergency Management Agency~ in connection with the review of any flood ~one determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's Option and Borrower's expense. Lender is under no obligation to purch,ase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against ally risk, hazard (~®-6A(WY) (ooo5) CHL (08/00) ~ Page 4 of 11 Form 3051 1/01 635 DOC ID #: 0004521343305004 or liability and nfight provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by thisiSecurity Instrument. These amounts shall bear interesl at the Nole rate from the date of disbursemem ,'aid sh'all~ 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 chmse, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional' loss payee. In the evem of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economtcally feasible and Lender's security is not lesseued. During such repmr 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 seres of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insur,'mce proceedsl Eender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for pnblic adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and sha~l be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's sec'urity would be lessened, the insurance proceeds shall be applied to the stuns secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiale and settle any available insurance claim and related matters. If Borrower ~does not respond within 30 days to a notice from Lender that the, insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refi~nd of unearned premiums paid by Borrower) nnder all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender ~nay use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid uuder the Note or this Security Instrument, whether Or not then due. 6. Occupancy, Borrower shall occnpy, establish, and use the Property as Borrower's principal residence within 60 days.after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent :;hall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7, Preservation, Maintenance and Protection of fl~e Property; Inspections, Borrower shall not destroy, damage or impair the Pzoperty, allow the Property to deteriorate or commit waste on the Property. Whether or riel Borrower ~s residing in the Property, Bon'ower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly rep~fir the Property if damaged to avoid further deterioration or damage. If insurance or condemnanon proceeds are paid in connection with damage to, or dm taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrowm"s obligation for the completion of such repair or restoration. ' Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or ptior 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 persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Luau. Material representations include, but are not limited to, representatio~ residence. (~®-6A(WY) (ooo51 CHL (oa/oo s concerning Borrower's occupancy of the Property as Borrower's principal Page 5 of 11 Form 3051 1101 ! DOC ID #: 0004521343305004 9. Protection of Lender's Interest in the Property and Rights Under this Security Ihstrument. If (a) Borrower fails to perform the covlmants and agreements contained in dlis Security Iustrument, (b) lhere is a legal proceeding that might signi'ficantly affect Lender's interest in the Property and/or' rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has! abandoned tile property, then Lender may do and pay for whatever is reasonable or appropriate to protec,t Lender s interest m the Property and rights under this Security Instrument, including protecting aud/or assessfi~g the value of the Property, ,'md securing and/or repairing the Property. Lender's actions can include, but arC not limited to: (a) paying any sums secured by a l'ieu which has priority over this Security Instrnmel~t; (b) appearing iu court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, iuclnding its secured position in a bankn~ptcy proceeding. Securing i?e Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or I~o',ard up doors and windows, drain water from pipes, eliminate building or other code violations or dangerousl Conditions, and have Utilities turned on or off. Although Lender may take action under this Section 9, Lende]' does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amonnts disbursed by L~,~:!der under this Section 9 shall become additional debt of Borrower secured by this SecUrity Instrument. Thesd mnounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such int6t~st, upon notice from Lender to Borrower requesting payment. If this Security Instrnment is ~0!n a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to .th~ Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing, il. 10. Mortgage Insurance. Ill Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Iusurance ¢ovm:age required by Lender ceas6s to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the preruiums for Mortgage Insurance, Borrower shall pay tile premiums required to Obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an 'alternate mortgage irisnrer selected by Lender. If substantially equivalent Mortgage.Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the inst, rance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, uotwithstanding the fact that the Loan is ultimately paid ia full, and Lender sh',dl not be required to pay Borrower any interest or earuings on such loss reserve. Lender can no longe~ require loss reserve paynlents if Mortgage Insurance coverage (in the amount and for the period that L~nder requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender ~'equires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mqrtgage Insurance as a condition of making the Loan and Borrower was required to make separately desigi~nated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-reflmdable loss reserve, until Lender's-requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender prdviding for such termination or until termination is required by Applicable. Law. Nothing in this Section 10 af~'eets Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower doe,~ not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance ill force from time to time, and may enter into agreements with other parties' that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are sati'sfactory to the mortgage insurer and the other parry (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may ha:,e available (which may include funds obtained from Mortgage Insurance premiums). AS a result of these agreeme~ts', Lender, any purchaser of tile Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be ch~acterized as) a portion of Borrower's payments for Mortgage fusurance, in exchange for sharing or modifying the mortgaY~'e.insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk ia exchange for a share of tile premiums paid to the insurer, the arrangement is often ter~ned "captive reinsurance." Further: (a) Any such agreements w(ll not affect tile amounts fllat Borrower has agreed to pay for Mortgage Insurance, or any other terms ol. tile Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (~®-6A(WY) (0005) CHL (08/00) Page 6 of 11 Initials :~L~ Form 3051 1/01 DOC ID #: 0004521343305004 (b) Any such agreements:will not affect file rigbts Borrower has - if any - wifl~ respect to the Mortgage Insurance under fl~e Homeowners Protection Act of 1998 or any off, er law. These rights may include rte right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have fl,e Mortgage.Insurance terminated automatic.'dly, and/or to receive a refund of any Mortgage Insurance premiums flint were unearned at fl,e ti~ne of such cancellation or termination. · 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous proceeds are hereby assigned to and shall be paid to Lpnder. If the Property is damaged,lst~ch Miscelh'meous Proceeds shall be applied to restoration or repair of the .Property, if the restoration or repair: is eqonomically feasible and Lender's secfirity is not lessened. During such repair and restoration period, Lefffl6r shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shalllbe undertaken promptly. Lender may pay for the repairs and restoration in a single disbm'sement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable L;'~W requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower anly interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasiblei or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the stuns secured by ithis 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, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to BorroWer. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by ithis Security Instrument immediately before the partial taking, destruction, or loss in value, uoless Borrowdr hud Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by th~ amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums s¢c'ured immediately before the partial taking, destruction, or loss ill value divided by (b) the fair market va.me of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be pa)d to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, nnless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are' then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to [nake an award to settle a claim for damages, Borrower fails to respond to Lender within 30 day) 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 stuns secured by this Security Instrument, whether or.not then due. "Opposing Party" means the third p~ty that owes Borrower Miscellaneous Proceeds or tile party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. BorrOwer shall be in defa~it if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result i'n forfeiture of the Property or other material i~npairment in the Property or rights under th)s:Secudty Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment;iprecludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rightlg ltnder this Security Instrument. The proceeds of any award or claim for damages that are attributable to :th..e impairment of Lender's interest in tile Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds' tliat are not applied to restoration or repair of the Property shall be applied in the Order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment Or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Inter~::st of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against ,'my Successor in Interest of Borrowei' or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Securit3.5 hlstm~nent by reason of any demand made by the original Borrower or Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than" 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 obligati6ns 'and liability shall be joint and several. HOwever, any Borrower who coZsigns this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security (~[~I®-6A(wy) (0o05) CHL (08/00)i Page 7 of 11 Form 3051 1/01 638 DOC ID #: 0004521343305004 Instrument only to mortgage, grant m~d convey the co-signer's interest itl the Property under the terms of this Security Instrument; (b) is not per.,sonally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and an)~ other Borrower can agree to extend, modify, forbear or make any accommodations with regard to ~!he 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 Borrowe~' who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, slndl obtain all of Borrower's rights and benefits under this Sect~rity Instrument. Borrower shall not be released fi'om Borrower's obligations and liability under this Security In. lstmment 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, Lende/' may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights tinder this Security Instrument, iucluding, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the 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 may not charge fees that are expressly prohibited by this SecUrity Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally iuterpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) auy such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) an? sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender; may choose to make this refilnd by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refilnd reduces priucipal, the reduction will be treated as a partial prepayment without an~ prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's ac~!;eptance of any such refimd made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices giv~:n by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when niailed 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 require~g 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 onl~ report a change of address through that specified procedurei There may be only one designated notice address under this Security Instmmeut at any one time. Any notice to Lender shall be given by delivering it or by m~til:.ng it by first class mail to Leuder's address stated herein unless Lender has designated another address by notice to Borrower.' Any notice in connection with this Security Instrument shall not be deemed to have been given to Leuder until actually received by Leuder. If any notice required by this Security lnstntment is also required Under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement urder this Security Instrument. 16, Governing Law; Severability; Rules or' Construction. This Security Instrument shall be governed by federal law and the law of tl~e jurisdiction in which the Property is located All rights and obligations contained in this gecurity Instrument are subjecl to any requiremeuts and linfitatious of Applicable Law. Applicable Law 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 prowsion or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of tt~is Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminioe gender; (b) words in the singular shall mean and include the plural and vice versa; and (C) the word "may" gives sole discretion without auy obligation to take any action. 17, Borrower's Copy, Borrower shall be given one copy of the Note and of this Security Instrument. 1.8. Transfer of the Prol:erty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means a~ y legal or beueficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales coutract 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 persen and a beneficial interest in'Borrower is sold or trausferred) without Leuder's prior written consent, Lender may require immediate payment in fifll of all slims secured by this Security Instmmeut. However, this option shall not be exercised by Leuder if such exercise is prohibited by Applicable Law if Lender exercises this o~gtion, Lender shall g~ve Borrower notice of acceleratiou. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pa? all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. Initials: '~ {~}®-6A(WY) (0005) CHL (00/00) Page 8 of 11 ' Form 3051 1/01 : DOC ID #: 0004521343305004 19. Borrower's Righ£ tO Reinstate After Acceleration. If Borrower meets certain comlitions, Borrower shall have the right to have enf~:,rcrment of dfis Security Inslmment discontinned at any time prior to the earliest of: (a) five days before sale of the Properly parsuant to any power of sale contained in this Security Instrument; (b) such other period, as: Applicable Law might specify for the lermination of Borrower's right to reinstate; or (c) entry of a judgment: enforcing this Security h~strun]ent. Those conditions are that Borrower: (a) pays Lender all sums which~then would be due under this Security Instmmeut and the Note as if no acceleration had occurred; (b) cures'any default of any other covenants or agreements; (c) pays all expenses incurred iu enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fe~s, 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 reasOnably require to assure that Lender's int}erest 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 srchi'reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; 0)) inoney order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check i'..s drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Eldctronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secm!edlhereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate sh~all ;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 ~n,,ctrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change ih tl,~e entity (known as the "Loan Servicer") that collects Periodic Paymeuts due under the Note and this Secu/ity! Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, m!d Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which ia'ill state the name and address of the new Loan Servicer, the address to which paYments should be made,.and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note :~s sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loanservicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer trod are not assumed by tile Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member'of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty '~wed 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 i5) of such alleged breach and afforded the other party hereto a reasonable period after the givin~ 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 Bon'ower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunitTto take corrective action provisions of this Section 20. 21. Hazardous Substances.. As used in this Section 21: (a) "Hazardous Substm~ces" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law arid the following substances: gasoline, kerosene, oi:her flammable Or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials Containing asbestos 'or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdictiou where the Property is located that relate to health, safety or environmental .protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, coltribute to or otherwise trigger an Environmental Cleanup. Borrower shall not cause or Permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Copdition, or(c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that. hdversely affects the value of the Property. The preceding two sentences shall not apply to the presence, ~::~sel or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be al~propriate to normal resideutial uses and to maintenance of the Property (including, but not limited to, hazard"ous substances in consumer prodocts). Borrower shall promptly give Lender written notice of (a) ,'my investigation, claim?demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Euvironmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, m~y spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any ci)ndition caused by the presence, use or release of a Hazardrus Substance which adversely ~fffects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or ,any priva, te party, that any' removal or other remediation of m~y Hazardous Substance affecting the Property is necessar'./, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create ,'my obligation on Lender for an Environmental Cleanup. ' initials:(~ (~I®-6A(WY) (O0OS) CHL (08/00) Page 9 of 11 Form 3051 1/01 640 DOC ID #: 0004521343305004 NON-UNIFORM COVENANTs. Borrower and Lender fl]rther covenant and agree as follows: 22. Acceleration; Remedies!. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any eov.enant or agreement in this Security Instrnment (but not prior to acceleration nnder Section 18 re'tess Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days l'rom the date the notice is given to Borrower, by Which the default tnust be cured; and (d) that failure to cure the default ou or before the date specii]ed 'in the notice ~nay result in acceleration of the sums secured by this Security lnstrnment 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 o1' a default or any other det'ense of Borrowi~r to acceleration and 'sale. Il' the default is not cured on or before the date Specified in the notice, Lender at its option may require i~n,nediate payment in hill of all sums secured by fids Security Instrument without flit,her demand and ~nay invoke the power of sale and any other rmnedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incorred in pnrsuing fl, e remedies provided, in this Section 22, including, but not limited to, reasonable attorneys' fees and costs ol' title evidence. ; If Lender invokes the powet' 0f sale, Lender shall give notice of intent to foreclose to Borrower and to file person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the s.'de to Borrower in the ~nanner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in file ~nanner 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 un, li~nited to, reasonable attorneys' fees; Co) to all sums secured by this Security Instrmnent; and (c) any excess to the person or persons legally entitled to it. .: ' 23. Release. Upon payment.' of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay ,'my recordation costs. Lender may charge Borrower a fee for ' releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and tile charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtne of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Riaer executed by Borrower and recorded with it. ' Witnesses: EVER~' (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~}®-SA(WY) (ooo5) CHL (08/00) Page 10 of 11 Form 3051 1/01 ~-~/~;~0~flJ/~ DOC ID #: 0004521343305004 STATE OF ~, /} } O. dO'l~ Cmmty ss: The foregoing instrument was acknowledged before me this ~ o ~ ~ My Commission Expires: Notary Public I. M. BHAKTA -! ~~· ^LA~eDA COUNPf (~)®-6A(WY) (ooo5) CHL (08100) Pagellof11 Form 3051 1/01 [Space Above This Lh~e For Record ng Data] FIXED/ADJUSTABLE RATE RIDER (LIBOR One-Year Index (As Published In The Wall Street Journal) - Rate Caps) After Recording Remm To: COUNTRYWIDE HOME LOANS,' INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prepped By: REBECCA STEVENSON 30568 [Escrow/Closing 0004521343305004 [Doc rD Iii THIS FIXED/ADJUSTABLE RATE RIDER is made this TWENTIETH day of HAY, 2004 , and is incorporated into and shall be deemed to amend and snpplement the Mortgage, Deed of Trust. or Security Deed (the "Securit-y Instrument") of the sa.ne date given by the undersigned ("Borrower") [o secure Borrower's Fixed/Adjustable Rate Note (the "Note") to COUNTRYWIDE HOME LOANSt INC. ("Lender") of the same date and ¢'ove, dng tile property described in the Security Instrument and located at: 326 S~AKE RIVER DRIVE~ ALPINE, WY 83128 [Property Address] CONV · MULTISTATE FIXED/ADJUSTABLE RATE RIDER - WSd One-Year LIBOR - Single Family INTEREST ONLY 2U796-XX (04/02)(d) Page 1 of 4 initial/J5 * 2 3 9 91 * * 0452 13433000002U796' DOC ID ~: 0004521343305~04 TH5 NOTE ~ROV~DES FOR A CHANGE ~N BOSROWER'S F~XED ~NTEREST ~AIE 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 covenants 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. 250 ch,'mge in the initial fixed rate to hn adjustable interest rate, as follows: %. The Note also provides for a 4. ADJUSTABLE INTEREST ]LATE AND MONTHLY PAYI%,IENT CHANGES (A) Change Dates Tile initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of IjUNE, 2007 , and the adjustable interest rate i will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and eacl~ date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning with the first Ct~ange Date, my adjustable interest rate will be based on an Index. Tile "Index" is the average of interbank offered rates for one year U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in the The Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the htdex is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me nonce of this choice. (C) Calculation of Changes Before each Change Date, the Note. Holder will calculate [ny new interest rate by adding TWO & ONE-QUARTER percentage points ( 2. 250 %) to the Current Index. Tile Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal [hat,I am expected to owe at the Ch,'mge 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 monthly payment. (D) Limits on Interest Rate Changes Tile interest rate I tun required to pay at the first Change Date will not be greater than 6.250 % or less than 2. 250 % Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more t!mn. 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 10.250 %. (E) Effective Date or Changes My new interest rate Will become effective on each Change Date. I will pay the amount of my new montlfly payment beginning on the first monthly payment date after tile 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 initial fixed interest rate tO an adjustable interest rate and o.* any changes in my adjustable interest rate before the effective date of any change. The notice will inclmie the amount of my monthly payment, any information required by law to be given to me :md also the title m~cl telephone number of a person who will answer any question I may have regarding the notice. : CONV · MULTISTATE FIXED/ADJUSTABLE RATE RIDER - WSd One-Year LIBOR - Single Family INTEREST ONLY 2U796-XX (04/02) ~ Page 2 of 4 644 DOC ID #: 0004521343305004 B. TRANSFER OF THE PROP][~RTy 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, Uniform Covenant 18 of the Security Instrument shall read as follows: 'l'ransfer of the Propel'ty or a Beneficial Interest in Borrower, As used in fids Section "Interest in the Property" mca;as any legal or beneficial interest in the Property, including, 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 ttle transfer of title by Boffower at a future date to a purchaser. If all or any part of thei '~ ~' roperty or any Interest in the Property is sold or transferred (or if Borrower is not a natural pets,oh and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consen~,~Lender may require immediate payment in full of all sums secured by this Security Instrument. However, dlis 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 nodce 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 may invoke any remedies permitted by this Security Instrument without further notice or demand 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 Instrument described in Section BI above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of lhe 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 limited to, those beneficial inte~;ests transferred in a bond for deed, contract for deed installment sales contract or escrow agreement, the intenl of which is tile 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 may require immediate payment in full of all sums secured by this Security Instrument. H6wever, this opuon shall not be exercised by Lender if such exercise is prohibited by Applicable Law Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Leuder to evaluale the intended transferee as if a new Io,m were. being made to the transferee; and (b) Lender reasonably determines thai Lender's security will not be impaired by the loan assumption and thai the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to tile loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates tile transferee to keep all the promises and agreements made in the Note and in this Security Instmme~t. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate paymenl in full, Lender shall give Borrower nod ce of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in acco'dance with Section 15 wiflfin which Borrower musi pay all sums secured by this Security Instrument. If Borrower fails to pay Ihese sums prior to the expiration of this period, Lender may invoke ar~y remedies permitted by this Security Instrument without further notice or demand on Borrower. CONV · MULTISTATE FIXED/ADJUSTABLE RATE RIDER - WSJ One-Year LIBOR - Single Family INTEREST ONLY 2U796-XX (04/02} ~ Page 3 of 4 Initials: DOC ID #: 00045213z13305004 BY SIGNING BELOW, Borrower accepts and agrees to Lhe terms and covenants contained in this Fixed/Adjustable Rate Rider. (Seal) - Borrower (Seal) - Borrower (Seal) - Borrowe~ (Seal) - Borrower CONV · MULTISTATE FIXED/ADJUSTABLE RATE' RIDER - WSJ One-Year LIBOR - Single Family INTEREST ONLY 2U796-XX (04102) Page 4 of 4 [Space Above This Lh~e For Recording Data] SECOND HOME RIDER AfterRecordingRemmTo: COUNTRYWIDE HOME LOS:iNS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0.423 Prepared By: REBECCA STEVENSON 30568 [Escrow/Closing 000452 1343305004 [Doc ID #] THIS SECOND HOME RIDER is made this TWENTIETH day of MAY, 2004 , and ~s incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instmn~ent") of the same date given by the COUNTRYWIDEUndersigned (the "Borrower"HOME whetherLOANs,thereiNc.are one or more persons undersigned) to secure Borrower's Note to (the "Lender") of the same date and covering the Property described in lhe Securiry Instrument ([he "Property"). which is located at: ~' 326 SNAKE RIVER DRIVE ALPINE, WY 83128 [Property Address] MULTISTATE SECOND HOME RIDER - Single Family - Freddie Mac UNIFORM INSTRUMENT : Page 1 of 2 (~)®-365R (0011 ) CHL (11/00)(d) VMP MORTGAGE FORMS - (800)521-7291 CONV/VA Inlllals: ~ Form 3890 1/01 * 2 3 9 9 1 * DOC ID 0:0004521343305004 ]n addition to the covenants and agreements made in the Securi[y Instrument, Borrower and Lender furdter covenant and agree that Sections 6 and 8 of the Security Instmmem ,'u'e deleted and are replaced by the following: 6. Occupancy. Borrower shall~ occupy, and shall only use, the Property as Borrower's second home. Borrower shall keep the Property available for Borrower's exclusive use and enjoyment at all times, and shall not subject the Property to any timeshm'ing or other shared ownership arrangement or to any rental pool or agreement thai requires Borrower either to rent the Property or give a management firm or any other person any control over the occupancy or use of the Property. 8. Borrower's Lo,'m Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave:materially false, misleading, or inaccurate information or statements to Lender (or failed to provide.Lender with material information) in connection with the Loan. Material representations include, but a:e not limited to, representations concerning Borrower's occupancy of the Property as Borrower's second home. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Second Home Rider. ~T ~HEW- R. SEEVE~ -l~o~row=r (Seal) B OlTOWer (Seal) - Borrower (Seal) - Borrower Form 3890 1/01 (~)®-365R (0011 ) CHL (11/00) Page 2 of 2