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HomeMy WebLinkAbout899607#30481~02) WHEN RECORDEDMAILTO: OPTION ONE MORTGAGE CORPORATIO~OOK ~P.O. BOX 57096 IRVINE, CA 92619-7096 ATTN: RECORDS MANAGEMENT Loan Nmnber: 321018781 Servicing Number: 001341171-5 899.60"I [Space Above This Li~ For Paxo~llng Dalai MORTGAGE THIS MORTGAGE ("Security Instrmnent") is given on GUY L. WILLIAMSON, A SINGLE M~LN May 18, 2004 . The mortgagor is ("Borrower"). This Security Instnnnentis given to Option One Mortgage Corporation, a California Corporacxon , which is organized and existing under the laws of CALIFORNIA , and whose address is 3 Ada, Ir-vine, CA 92618 ("Lender"). Borrower owes Lender the principal sum of ONE HUNDRED SIXTEEN THOUSAND EIGHT HUNDRED · . .AND NO/100THs Dollars (U.S. $116,800.00 ).* This debt is evidenced by Borrower's note dated fl~e same da te as fids Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier:, due and payable on June 01, 2034 . This Secority Instrulnent seem'es to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment 9f all other sums, with interest~ advanced under paragraph 7 to protect the security of tiffs Security Instrument; and (c) the perfommnce of Borrower's covenants and agreements under this Security Instrument and the Note. For this propose, Borrower does hereby mortgage, grant, convey and warrant to Lender, with power Of sale, the following described property located in L i nco in County, Wyoming: 37182830602100 LOT 52, OF THREE RIVERS MEADOW ESTATES, SUBDIVISION 'B', ACCORDING TO THAT PLAT RECORDED IN THE OFFICE OF THE COUNTY CLERK, LINCOLN COUNTY, WYOMING. *THIS IS A FIRST REAL ESTATE MORTGAGE RECORDING CONCURRENTLY WITH A SECOND REAL ESTATE MORTGAGE IN FAVOR OF OPTION ONE MORTGAGE CORPORATION DATED MAY 18, 2004, IN THE ORIGINAL AMOUNT OF $29,200.00. whichhas the address of Wyonfing 83128- [ZipCode] 444 MEADOWS DR, ALPINE [Street, City], ("Property Address"); 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 Iustmment. All of the foregoing is referred to in this Sect;rity Instrument as fl~e "Property" BORROWER COVENANTS that Bo[rower is lawfully se;seal of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for eucmnbrances of record. Borrower warrants and will defend generally fl~e title to the Propeay against all claims and denmnds, subject to any encmnbrances of record. COVENANTS. Borrower and Lender cove~mnt and agree as follows: 1. Payment of Princip',d and Inten..st; Prepayment and Late Charges. Borrower shall promptly pay wheu due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Snbject to applicable law or to a written waiver by Lender, Borrower shall pay to WYOM1NG - Single Family Page 1 of 6 WYDI0011 (06-23-98) Loan Nmnbcr: 32].01B?01 iSe~vicing Number: 00].3411?1-S D~t~: L~nder on fl~o day monflfly p~ym~n~s ~re dU~ nnder 0~ No~, until fl~ No~ is paid in ~1!, a sum ("Fm~ds") for: (a) yearly ~nd assessments whioh ~y a~ain priority 0wr tiffs S~curi~y Ins~mmen~ as a l~en on fl~e Proper~y; (b) 'yoarly l~as~hold p~ymon~s or ground r~n~s 0n 0'~ Property, if ~ny; (~). yearly hazard or proper~y insur~nco prenfiums; (d) y~rly flood insurance pr~minms, if ~ny; (~) yearly mor~gag~ insur~nc~ pr~nfium~, if ~n~; and (~) ~ny sm~ payable by Borrower to L~nd~r, in a~eordanc~ wid~ provisio~ of paragraph 8, in lieu of fl~e paymeflt of mortgage insurance prenfinms. These items are called "Escrow Items." Lender ~y, at any time, collect and hold Funds in an amount not to exceed fl~e nmximum amonnt a lender tbr a federally related mortgage loan nmy require for Borrower's escrow accomit under ~e federal Real Estate Settlemeut Procedures Act of 1974 as amended from time to time, 12 U.S.C. Sectiou 2601 et seq. ("~SPA"), unless anofl~er law that applies to fl~e Funds sets a lesser amount. If so, Lender ~y, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estinmte fl~e amom~t of Funds due on flxe basis of cnrrent dat.~ and reaso~ble estimates of expenditnres of ~ture Escrow Items or otherwise in accordance with applicable law. ~ The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is suclx an ingtitution) or in any Federal Home Loan Bax~. Lender shall apply fl~e Funds to pay fl~e Escrow Items. Lender umy not charge Borrower for llolding and applying fl;e Funds, annually a~mlyzing fl~e escrow account, or verifying ~e Escrow Items, mfless Lender ~pay~s Bo~ower interest on fl~e Funds and applicable law pernfits Lender to Umke such a charge. However, Lender nmy require Boi'roWer to pay a one-time charge for an independent real estate tax reporting service used by Lender in coxmection wifl~ tiffs loan, unless applicable law provides ofl~erwise. Unless an agreement is n~de or applicable law reqnires interest to be paid, Lender shall l?Ot be required to pay Borrower any interest or eanfings on fl~e Funds. Borrower and Lender may agree in writing, however, fl~at interest shall be paid on ~e Funds. Eeuder shall give to Borrower, wiflxout charge, an ammal accounting of rte Funds, showing credits and debits to fl~e Funds and fl~e pu~ose for which each debit to fl~e Fuuds was nmde. The FUnds are pledged as additio~l security for all sums secured by tiffs Security h~tmment. If fl~e Funds held by Lender exceed fl~e amonnts pen~tted to be held by applicable law, Lender shall account to Borrower for fl~e excess Funds in accordance wifl~ ~e; requirements of applicable law. If fl~e amount of flxe Funds held by Lender at any time is not sufficient to pay fl~e Escrow Iten~ when: due, Lender ~y so uotify Borrower in writing, and, in such case Borrower shall pay to Lender ~e amount necessary to ~';ke Up fl~e deficiency. Borrower shall n~qke up fl~e deficiency in no more fl~an twelve monfl~ly payments, at Lender's sole discrefiom Upon payment in ~ll of all sums s~cured by this Security Instrument, kender shall promptly re,nd to Borrower any Funds held by Lender. If, under paragraph 21, L6nder shall acquire or sell fl~e Property, Lender, prior to fl~e acquisition or sale of fl~e Property, shall apply any Funds held bY I~.ender at fl~e time of acquisition or sale as a credit against fl~e sums secured by tiffs Security fi~trument. ~ 3. Appficafion of Pa~. U~fless ap'plicable lawProvides ofl~erwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under fl~e Note; second, to amounts payable m~der paragraph 2; flfird, to interest due; four~, to principal due; anti last, to any late charges due under fl~e Note. 4. ~ges; Lie~. Borrower shall pay all taxes, assessments, charges, flues and impositions attributable to fl~e Property which n~y attain priority over tiffs Security' Instrument, and leasehold payments or ground rents, if any. Borrower shall pay ~ese obligations in ~e maimer provided in paragraph 2, or if not paid in fl~at nmm~er, Borrower shall pay fl~em on time directly to fl~e person owed payment. Borrower shall promptly ~r~sh to Lender all notices of amounts to be paid under this paragraph. If Borrower nmkes fl~ese payments directly, Borrower shall promptly british to Leuder receipts evidenciug fl~e payments. Bo~ower shall promptly discharge any lien which has priority over tiffs Security Instrument unless Bo~ower: (a) agrees in writing to fl~e' payment of ~e obligation secured by ~e lien in a nm~mer acceptable to Lender; (b) contests in good fai~ fl~e lien by, or defends against enforcement of fl~e l~.en in, legal proceedings which in fl~e Lender's opinion operate to prevent ~e enforcement of fl~e lien; or (c) secures IyOm ~e holder of fl~e lien an agreement satisfactory to Lender subordinating fl~e lien to Security Instn~ment. If Lender deternfines fl~at any part of ~e Property is subject to a lien which may attain priority over Security Instrument, Lender nmy give Borrower a notice identifying fl~e lien. Borrower shall satisfy the lien or take one or more of fl~e actio~u set forfl~ above wi~in 10 days of the giving of notice. 5. Hazard or ~o~ ~e. BorroWer shall keep fl~e improvements now existing or hereafter erected on fl~e Property insured against loss by fire, hazards included wiflfin fl~e term "extended coverage" and any off,er hazards, including floods or · flooding, for which Lender requires insuraace. This il~urance shall be nmintaiued in fl~e amounts and for fl~e periods fl~at Lender requires. The insurance can'ier providing fl~e insurance shall be chosen by Borrower subject to Lender's approval which shall not be ul~easonably wiflfl~eld. If Borrower fails to ~mintain coverage described above, Lender ~my, at Lender's option, obtain coverage to protect Lender's rights in fl~e Property in accordance wifl~ paragraph 7. All insurance policies and renewals, shall be acceptable t0 Lender and shall iuclude a staudard mortgage clause. Lender sball have fl~e right to hold fl~e policies and renqwals. If Lender requires, Borrower shall promptly give to Lender all :receipts of paid pre~m~ and renewal notices. In fl~e event' of loss, Bo~ower shall give prompt notice to fl~e insurance carrier and Lender. Lender ~my make proof of loss if nOt made promFtly by Borrower. U~ess Lender and Bo~ower ofl~erwise agree in writing, or applicable Law otherwise requires, i~urance proceeds shall be applied first to reimburse Lender for costs aud expenses incmxed in connection wifl~ obtai~fing any such insurance proceeds, and ~en, at Lender's option, in such order aud proportion as Lender my deternfine in its sole and absolute discretion, and regardless of any impairment of security 0r lack fl~ereof: (i) to fl~e sums secured by fltis Security Instrument, whefl~er or not ~en due, and to such components fl~ereof as Lender nmy deternfine iu its sole and absolute discretion; aud/or (ii) to Borrower to pay fl~e costs and expenses of necessary repairs or restoration of fl~e Property to a condition satisfactory to Lender. If Borrower abandons fl~e Property, or does not answer wiflfin 30 da;~s a. notice from Lender flint fl~e insurance carrier has offered to settle a claim, Lender may collect ~e insurance proceeds. Lende:" n~y, in its sole and absolute discretion, and regardless of any impairment of security or lack thereof, use the proceeds to repair or restore fl~e Property or to pay fl~e stuns secured by this Security Instnnnent, whether or not fl~en due. The 30-day period will begin when fl~e notice is given. U~fless Lender and .Borrower otherwise agree in writiug, any application of proceeds to principal shall not extend or postpone the due date of fl~e m0nflfly payn:;ents referred to in paragraphs 1 and 2 or change fl~e amount of the payments. If under paragraph 21 fl~e Proper~y is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from danmge to the Property prior to fl~e acquisition shall pass to Lender to the extent of fl~e sums secured by ~is Security I~stmment i~ediately prior to fl~e acquisition. ~ · If Borrower obtains' earfl~quak6 i~]surance, any off, er hazard insurance, or any 0fl~er insurauce on rte Property and such insurance is not specifically required by L~:nd~r, flten such insurance shall (i) name Lender as loss payee fl~ereunder, and (ii) be subject to fl~e provisions of this paragraph 5. Page 2 of 6 ~D10012 (06-23-98) Loan Number: 321018781 !Servicing Number: 001341171-5 Date: 05/18/04 G~. ,. 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower acknowledges that the Lender doe's not desire to make a loan to Borrower secured by this property on the ter/ns contained in the Note unless the property is to be ocbupied by Borrower as Borrower's primary/secondary residence. Lender makes non- owner residence loans of different terms. Bbrrower prondses and assures Lender that Borrower iuten.ds to occupy this property as Borrower s' prinmry/secondary residence and rial Borrower will so occupy this property as its sole prinmry/secondary residence within sixty (60) days after tile date of the Security Instrument. If Borrower breaches this promise to. occupy the property as Borrower's primary/secondary residence; then Lender may invoke any of file lbllowing remedies, in addition to fl~e remedies provided in the Security Instrument; (1) D~eciare all stuns secured by the Security Instrument due and payable and foreclose the Security Instrmnent, (2) Decrease the term of the loan and adjust file monthly payments nnder the Note accordingly, increase the interest rate and adjust the monthly paymex}ts under the Note accordingly, .or (3) require that file principal balance be reduced to a percentage of either the original purchas6i: price or the appraised value then being offered on non-owner occupied loans. Borrower shall not destroy, da~nage or impair the Property, allow the Property to deteriorate, or commit waste on file Property. Borrower shall be in defimlt if al!.y forfeiture action or proceeding, whether civil or crinfinal, is begun that in Lender's good faith judgment could result in forfeiture of file Property or otherwise ureter;ally impair the lien created by this Security Instrument or Lender's security interest. Bdr~ower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed With a ruling that, in L'ender's good Ih;th deternfination, precludes forfeiture of the Borrower's interest in the Property or other n~aterial impairment of file lien created by this Security Instrmnent or Lender's security interest. Borrower shall also be in default :if Borrower, during the loan applicatiou process, gave ureter;ally I:alse or inaccurate infommtion or statements to Lender (or hi!ed to provide Lender with any nmterial information)in cmmection with the loan evidenced by file Note, including, but not linfited to, representations concerning Borrower's occupancy of the Property as a principal residence. If fids Security Instrument is onI' a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasefiold and the fee title shall not merge unless Lender agrees to the merger in writing. Borrower shall, at Borrower's ownlexpense, appear in alid defend any action or proceeding Purporting to affect the Property or .any portion thereof or Borrower's title thereto, the validity or priority of the lien created by this Security Instrument, or the rights or powers of Lender with respect to this S~curity hzstrument or the Property. All causes of action of Borrower, whether accrued before or after the date of this Security Instlmment, for danmge or injury to the Property or any part thereof, or in com~ection'with any transaction financed in wliole or in part by file proceeds of the Note or any other note secured by this Security Instrument, by Lender, or in'connection with or affecting~the Property or any part fl~ereof, including Causes of action arising in tort or contract and causes of action for fraud or concealmem of a material fact, are, at Lender's option, assigned to Lender, and file proceeds thereof shall be paid directly to Lender who, after deducting therefrom all its expenses, including reasonable attorueys' fees, may apply such proceeds to the stuns secured by this Security Instrument or to auy deficiency under this Security Instrument or may release any monies so received by it or any part thereof, as Lender may elect. Lender may, at its option, appear in aud prosecute in its own name any action or proceeding td entbrce any such cause of action and ~nay make any compromise or settlement thereof. Borrower agrees to execute such further assignments and &ny other instruments as from thne to time nmy be necessary to effectuate the foregoing provisions and as Lender ~ sballlrequest. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condetmmtion or forfeiture or to enforce laws or regulations), then Lender nhay do and pay for whatever is necessary to protect the value of the Property and Lender's rights in file Property. Lender's actions nmy include paying any sums secured by a lien which has Priority over this Security Instrument, appearing in court paying reasonable attorneys' fees and entering on the Property to make repairs.. Although Lender may take action under tlns paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender ~mder tlfis paragraph 7 shall becmne additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from tile date of disbursement at the Note rate in effect from time to time and shall be payablel with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums'required to nmintain the mortgage insurance iu effect. If, for any reason, the mortgage insurance coverage required by Lender lapses, or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insm'ance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available~, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance prenfitun being paid by Borrower when the 'insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortghge insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becOmes.availabl6 and is obtained. Borrower shall pay the prenfiums required to n'~fintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any wyitten agreement between Borrower .and Lender or applicable law. 9. htspection. Lender or its aged! may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to'an inspection specifyiug reasonable cause for the inspection. 10. Condemnation. The proceed~ of any award or claim for damages, direct or consequential, in com~ection with any conde~m~atlon or other taking of any part qf the Property, or for conveyance m lieu of condemnation, are hereby assigned and shall be paid to Lender. Lender may apply, use or release the condemnation proceeds in file same manner as provided in paragraph 5 hereof with respect to insurance proceeds, If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condenmor offers to make an award or settle a claim for damages, Bo'rrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instru~nent, whether or not then due. Unless Lender and Borrower otherwise agree in writing, any applicatiou of proceeds to principal shall not extend or postpone the due date of the monthly pay~nents referred to in paragraphs 1 and 2 or change the amount of such payments. 11. Borrower Not Released; For!~:rance By Lender Not a Waiver. Extensiou of the time for payment or modification of amortization of the sums secured by this SeCurity Instrument granted by Lender to any successor iu interest of Borrower shall Page 3 of 6 WYD 10013 (06-23-98) Loan Number: 321018781 Servicing Number: 001341171-5 Date: 05'/18/ot not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall lint be required to commence proceedings against any successor:in iuterest or refuse to extend time tbr payment or otherwise modify amortization of the sums secured by dlis Security Instrument by reason of any denmnd nmde by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in 6xercising any right or remedy shall not be a waiver of or preclude the exercise of any fight or remedy. 12. Successors and Assigns BOreal; foint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute die Note: (a) is co-signing this SeCurhy Instrument only to mortgage, grant and convey rial Borrower's interest in the Property under die terms of this Security!Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and hn¥ oilier Borrower may agree to extend, modify, forbear or make any accmrmlodations with regard to the terms of fids Security Inst?ume;nt or the Note without that Borrower's consent. 13. Loan Clmrges. If die loan sec'arid by this Security Instrument is subject to a law which Sets maximum loan charges, and that law is finally interpreted so that d,~.e interest or other loan charges collected or to be collected in connectiou with the loan exceed the permitted linfits, then: (a) any tilu6h loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any stuns already ~oliected from Borrower which exceeded permitted linfits Will be refilnded to Borrower. Lender nmy choose to nmke dfis refund by reducing the principal owed under the Note or by nmking a direct paylnent to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided ~br in this Security Instrument shall be given by delivering it or by mailing it bY first class nmil unless applicable law ~equires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be. given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower: Any notice provided for in this Security Instrument shall be deemed to have been givtn to Borrower or Lender when given as provided in riffs paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction iii which the Property is located. In the e,',ent that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect, other provisions of diis Security Instrument or the Note which can be given effect without the conflicting provision. To this end die provisions of this Security histrument and die Note are declared to be severable. 16. Borrower's Copy. Borrower ,,!hall 'be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial inte}--es~: in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender nm"y,i at its option, require inunediate payment in full of all sums secured by this Security Instrument. However, this option shall noi be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. 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 die date the notice i~ delivered or nmiled within which Borrower xnust pay all sums secured by fills Security Instrmnent. If Borrower fails to pay these isums prior to the eXPiration of this period, Lender may invoke any remedies pernfitted by this Security Instrument without further notice or de~nand on Borrower. 18. Borrower's Right to Reinstate: If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at' any time prior to the earlier of: (a) 5 days (or such oilier period as applicable law nmy specify for reinstatemen0 before sale of the property pursuant to any power of sale contained in this Security lnsmunent; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all exipenses incurred iii enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes Such action as Lender nmy reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay die sums secured by fids Security Iustnunent shall continue unchanged. Upon reinstatemeut by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurr.:d: However, this right to reinstate shall not apply iii the case of acceleration under paragraph 17. ' i' : 19. Sale of Note; Change 'of Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrumen0 may be sold one or more tim~s without prior notice to Borrower. A sale may result in a change in the entity (known as die "Loan Servicer") that collects monthly payments due under the Note and this Security Instrument. There also may be one or more changes of die Loan Servicer uurelated to a sale of die Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change in accordance with paragraph 14 above and applicable law. The notice will state the ,mine and address of the new Loan Servicer and the address to which pay~nents should be umde. The notice will also contain any other inf0rmationrequired by applicable law. The holder of the Note and this Security Instrument shall be deemed to be the Lender hereunder. 20. I-Ia?ard0us Substances. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances on or in die Property.. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Enviromnental Law. The Preceding two sentences shall not apply to the presence, use, or storage on the Property of small qnantities of Hazardous S'ubstances that are generally recog~fized to be appropriate to nornml residential uses and to lnaintenance of the Property. Borrower shall promptly give Lende. r. written notice of any investigation, claim, denmnd, lawsuit or other action by auy governmental or regulatory agency or privat~e party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. !If.Borrower learns, or is notified by any govermnental or regulatory authority, that any removal or other remediation of any Hazardous Substauce affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Euviromnental Law. Borrower shall be solely responsible for, shall indmmfify, defend and hold harmless Lmider, its directors, officers, employees, attorneys, agents, and their respective successors and assigns, from and against any and all claims, demands, causes of hction, loss, dalnage, cost (including actual attorneys' fees and court costs and costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of auy closure, abatement, containment, remedial or other required plan), expenses and liability direCqy Or indirectly arisiug out of or attributable to (a) die use, generation, storage, release, threatened release, discharge, disposal, alfatemeut or presence of Hazardous Substances on, uuder or about the Property, (b) the transport to or from die Property of any !51azardous Substances, (c) the violation of any Hazardous Substances law, and (d) any Hazardous Substances claims. Page 4 of 6 WYD10014 (06-23-98) LoanNumber: 321018781 ServicingNumber: 001341171-5 Date: 05/18704 '- G54 As used in this paragraph 20, "Haza~'dous Substances" are rinse substances defined as toxic or hazardous substances by Environmental~ Law and the lbllowing substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, ~terials co~mi~ng asbestos or for~ldehyde, and radioactive nuterials. As used in ~is paragraph 20, "Enviromnental Law" means federal laWs hnd laws of the jurisdiction where the Property is located that relate to health, safety or envirm~ental protection. '. ' ' ADDITIONAL COVENANTS. Bo[r0wer and Lender ~rther cove~mnt and agree as follows: 21. A~lemfion; ~ies. Iffy i~m uMer tim No~ or notes ~ur~ hereby is ~t p~d when due, or if~ower ~o~d ~ ~ defaffit ~er ~y pro,sion of ~is ~i~ ~m, or if ~ower is ~ defa~t ~er ~y o~er moagage or other due and payable at ~e option of ~Mer wi~aut prior notice, ex,pt ~ o~e~i~ r~r~ by app~ble law, an~! reg~dless of ~y prior forage. ~ ~ch evem, ~Mer, at ~ option, ~ subj~t m applimble law, nmy ~en l~m~ eider by adveffi~s~ ~ ~e ~f ~e Pro~ ~ provid~ by smtu~ (~e ~wer of ~e provid~ for by statute ~ing hereby e~ressly gran~ to ImMer by ~:~wer) or by ~ action ~ ~, m~d ~my ~voke ~y o~er re~ies or rake any o~er acfio~ ~t~ by appfi~ble hw. ~Mer ~wiH ~B<t ~ e~s i~u~ M pining ~e re~ies de~fi~ M ~is Prograph 21, hmlU&g, but not ~t~ to, r~mble ~a~to~ys' f~s a~ costa of rifle evide~. If ~Mer invokes ~e ~wer of ~e,~ ~er ~1 give nofi~ of ~em m for<Io~ to ~rrower ~ to ~e ~n in ~s~ssion of ~e ~o~, if ~fferem, in a~r~e wi~ applimble law. ~Mer ~1 give nofi~ of ~ower by ~fi~ ~, return r<eipt, M '~e ~mn~r provid~ M ~graph 14. ~der · e Pro~y ~I1 ~ told M ~e ~r pre~fi~ by appli~ble law. ~er or i~ desig~ my purc~ ~e Pro, ny at ~y ~e. ~e pro~ of ~e ~e ~hail ~ appli~ M the following order: (a) m MI ex~s of r~ble aaor~ys' f~s; ¢) to ~ s~ ~ by ~s ~ ~ment; a~ (c) ~y exmss m ~e ~n or ~ legally enfifl~ to it. ~ ' 22. ~1~. Upon payment of all s'mhs secured by ~is Security Instrument, Lender shall release this property wiflmut warranty to ~e person or perso~ legally entitled to it. Such persou or persmm shall pay any recordation costs. Lender ~y charge such person or persons a fee for releasiug the 3Property for services rendered if the charging of ~e t~e is permitted under applicable law. 23. Wfivem. Borrower hereby released and waives all rights in the Property under and viture of ~e homestead exemption laws of the State of Wyonfing and hereby relinquishes all rights of curtesy and dower in the Property. 24. ~srepre~mfion and No~i~lc,~e. Borrower has nmde certain written representations and disclosures in order to induce Lender to nmke the loan evidenced ~y~ ~e Note or notes which this Security Instrument secures, and in the event that Borrower has ~mde any nmterial nfisrepresenta[ion or failed to disclose any n~terial thct, Lender, at its option and without prior notice or demnd, shall have rite rigbt to declare the iudebtedness secured by fids Security Instrument, irrespective of the nmtmity date specified i~ the Note or notes secured b~ this Security Instrument, ilmnediately due and payable. 25. Ti~ is of ~e ~me. Time is 'of the essence in the perfornmnce of each provision of this Secm'ity Instrument. 26. Wfiver of Statute of Lh~fimfiom. The pleading of fl~e statute of linfitations as a defense to enforcement of this Security Instrument, or any and all obligations referred to herein or secured hereby, is bereby waived to the tidiest extent pernfitted by applicable law. 27-M°~fimfiom This Security I~tmment nmy be modified or amended tuffy by an agreement in writing signed by Borrower and Lender. 28. Rci~~m. To the extent pe}nfitted by applicable law, Borrower shall reimburse Trustee a~ Lender' for any and all costs, fees and expe~es which either nmy incur, expend or sustain in fl~e execution of tbe trust created hereunder or in the perfomnce of any act required or pernfittedhereunder or by law or in equity or otherwise arising out of or in connection with fids Security Iustmment, the Note, any off,er nbte secured by ~is Security Instrument or any other instrument executed by Borrower in co~ection with ~e Note or Security Instrument. To the extent pernfitted by applicable law, Borrower shall pay to Trustee and Lender their fees in'co~ection with Trustee fin3 Lender including, but not linfited to assumption application fees; fees for payoff demnds and, statements of loan balance; fee~ for ~mking, transnfitting and transporting copies of loan docmnents, verifications, ~11 or partial lien releases and o~er docmnents requested by borrower or necessary for pertbmmnce of Lender's rights or duties under this Security Inst~ment; fees arising fi'om a returned or dishonored check; i~es to deternfine whefl~er the Property is occupied, protected, nmintained or insured or' related purposes; appraisal fees, inspection fees, legal t~es, broker fees, insurance nfid-term substitutions, repair expenses, forecl, osure fees and costs arising IYom foreclosure of the Property and protection of the security for this Security Instrument; and all dfl~er fees and costs of a similar nature not otherwise prohibited by law. 29. O~fi~ E~or. lu the event Lm~0er at any time discovers that fl~e Note, any other note secured by this Security Instrument, ~e Security InStrument, or any other document or instrument executed in connection with the Security Instmtnent, Note or notes contains an error that was caused by a clerical nfista~e, calculation error, computer nml~nction, printiug error or siufilar error, Bo~ower agrees, uptn notice from Le~der, to reexecute any documents flint are necessary to co~ect any such error(s). Borrower ~rther agrees ~at Lender will not:be liable to Borrower for any danmges incu~ed by Borrower flint are directly or indirectly caused by any.sucli error. 30. ~st Stolen, Desffoyed or Mufil~t~ ~ ~m ~ O~er Doc~m~. In the event of the loss, theft or dest~ction of the Note, any o~er note secured by fids Security Instrument, ~e Security Instrument or any ofl~er documeuts or imtmments executed in com~ection wi~ the Security hmtm~nent, Note or notes (collectively, the "Loan Documents"), upon Borrower's receipt of an inde~fification executed in favor of Bo~oWer by Lender, or, in ~e event of ~e mutilation of auy of fl~e Loan Documents, upon Lender's surrender to Borrower of ~e mutilated Loan Documeut, Borrower shall execute and deliver to Lender a Loan Document in form and content identical to, and to serve as a replacement of, ~e lost, stolen, destroyed, or mutilated Loan Document, and such replacen~ent shall have the same force aud effect as ~e lost, stolen, destroyed, or nmtilated Loan Documents, and nmy be treated for all pu~oses as the ofigiml copy of such Loan Document. . 31. Assig~ of ~. As additiomd Security hereunder, Borrower hereby assig~ to Lender ~e rents of the Property. ~orrower shall have ~e right to collect and retain ~e rents of the Property as they become due and payable provided Lender has mt exercised its rights to require in~ediate paYment in ~11 of ~e sunm secured by fids Security instrument and Borrower has not ~bandoned ~e Property. 32. ~dem m ~s ~i~ ~m. if one or more riders are executed by Borrower and recorded toge~er wi~ this ;ecUrity Instrument, the covm~nts and agreements of each such rider shall be inco~orated into aud shall amend and supplement 'age 5 of 6 Loan Nmnber: 321018781 Servicing Number: 001341171-5 Date: 05/¢s/64' the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. [Check applicable box(es)] [] Adjustable Rate Rider [] No Prepayment Penalty Option Rider [] Other(s) (specify) [] Condominium Rider [] Planned Unit Development Rider [] 1-4 Family Rider [] Occupancy Rider BY SIGNING BELOW, Borrower accepts and agrees to the terms and cove~mnts contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Witnesses: (Seal) -Borrower .(Seal) -Borrower .~t~ d ~ .(Seal) (Seal) GUY [ L. N I LLIAIqSON -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower STATE OF WYOMING, TETON County ss: The foregoing instrument was ac ~knowledged before me this 18th day of May, 2004 (date) by Guy L. Williamson My Commission Expires: 9-15-07 (person acknowledging) Notary Public Glori Page 6 of 6 WYD 10016 (06-23-98) 656 Loan Number: 321018781 Servicing Nmnber: 001341171-5 ADIUSTABLE RATE RIDER (LIBOR Index - Rate Caps) Date: 05/18/04 THIS ADJUSTABLE RATE RIDERis made May 18, 2004 and is incoq)orated into and shall be deemed to amend and supplement file Mortgage, Deed of Trust or Security Deed (the "Security Iustrument") of file same date given by rite undersigned (file "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Option One Mortd~age Corporation, a California Corporation (the "Lender") of the same date and covering rite property described in the Security Instrument and located at: 444 iMF~ADOWS DR, ALPINE, WY 83128- [Property Address] THE NOTE CONTAINS FROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND TIlE MAXIMUM RATE TIlE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in file Security Instrmnent, Borrower and Lender furrier covenant and agree as follows: The Note provides for an flfitial interest rate of 6 5 5 0 % Note provides for changes in the interest rate and the monthly payments, as tbllows: · The 4. INTEREST RATE .AND MONTHLY PAYMENT CHANGES (A) Cha.ge Dates ~ The interest rate I will pay ntay change on the first day of June 01 2 0 0 6 and on that day every sixth month ithereafter. Each date ou which my interest rate could change is called a "Change Date." ' 0t) The Index ,.. : Begilming with the first Change Date, my interest rate will be based on an ·Index. The "Index" is the average of interbank offered rates :for six-month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The W~ll Street Joulvlal. The most recent Index figure available as of the first business day of the month iinmedi~tely preceding the month in which file Change Date occurs is called the "Current Index." ': If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable infornmtion. The Note HOlder will give me notice of this choice. (C) Calculation of Clumges Before each Change Date, the Note Holder will calculate my new interest rate by adding FOUR /UqD 60/100 percentage poiut(s) ( 4. 600% ) to file Current Index. The Note Holder will then rouud the result of this addition to the next higher one-eighth of one percentage point (0.125 %). Subject to file limits stated in Section 4(D) below, this rouuded amount will MULTISTATE ADllJSTABI~ RATE RIDER-LIBOR INDEX - Single Family Page 1 of 3 USRI0021 (02-23-99)~ 65? Loan Number: 321018781 Servicing Number: 001341171-5 Date: 05/18/04 be my new interest rate until the ne:~t Change Date. The Note Holder will then determine file anmunt of the monthly payment that would be sufficient to repay the unpaid principal that I Zm 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 monthly payment. (D) limits on Interest R~te Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.550 % or less than 6.55 0 % . Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one percentage point (1.0 %) frmn the rate of interest I have been paying for the preceding six months. In no event will my interest rate be greater than 12. 550% or less thau 6. 550% (E) Effective Date of Ch~mges My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment begimfing on th,: 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 interest rate and the amount of my monthly payment before thc effective date of any change. The notice will include infornmtion required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Covenant 17 of the Security [ustrnment is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (o.: if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender nmy, at its option, require inm~ediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Borrower causes to be subufitted to Lender infurnmtion required by Lender to ewduate the intended transferee as if a new loan were being made to the transferee: and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assmuption and that rite risk of a breach of any covenant or agreement in this Security h~strmnem is acceptable to Lender. To the extent permitted by applicable law, Lender nmy charge a reasmmble fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Le~der and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Ixtstrument unless Lender releases Borrower in writing. If Lender exercises the option to require innuediate payment itl full, Lender shall give Borrower notice of acceleration. The notice shall p;-ovide a period of not less than 30 days from the date the notice is delivered or nmiled within which Borrower must pay all sums secured by this Security Instrument. If Borrower tails 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. MULTISTATE ADIUSTABLE RATE RIDER-LII~R INDFL~-Single Family Page 2 of 3 USRI0022 (02-23-99) O,S.9~ 6 0,--,,;, 6 5 ,.9 Loan Number: 321018781 Servicing Number: 001341171-5 Date: 05/18/04 BY SIGNING BELOW, Borrower accepts and agrees to rite terms and covenants contained in this Adjustable Rate Rider. GOY/L. WI LLIAMSON (Seal) (Seal) (Seal) (Seal) .(Seal) .(Seal) MULTISTATE ADJUSTABLE RATE RID .17_R-I]BOR INDEX-Single Family Page 3 of 3 USRI0023 (02-23-99) l:f!;!/_,!;, - : _ .....