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HomeMy WebLinkAbout899614Return To: WELLS FARGO HOME MOR~:GAGE 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 Prepared By: WELLS FARGO BANK, N.A. 89961k 1919 DOUGLAS,, OMAHA, 681010000 NE 556;, [Space Above Tiffs Lh~e For Recordh~g Data] MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 ar,d 21. Certain roles regarding the usage of words used iu this document are also provided in Section 16. (A) "Security Instrument" me. ans this document, which is dated MAY 2 0, 2 0 04 together with all Riders to this document. (B) "Borrower" is RICHARD ARNOLD HARKNESS, A SINGLE PERSON Bon'ower is the mortgagor under this Security Instrument. (C) "Lender"is WELLS FARGO BANK, N.A. Lender is a NATIONAL ASSOCIATION organized and existiug under the laws of THE UNITED STATES 0040400939 WYOMING-Single Family-Fannie IVlae/Fredd e Mac UNIFORM INSTRUMENT VMP MORTGAGE FORMS-1800~521-7291 Form 3051 1/01 693 Lender's address is P.O. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and datedNAY 2 0, 2 004 The Note states that Borrower owes Lender ONE HUNDRED THOUS.P~ID EIGHT HUNDRED AND 00 / 10 0 Dollars (U.S. $ * * * * 100,800.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in tbll not later than JUNE 01, 2034 (E) "Property" means file pr6perty that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means file debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrmnent that are executed by Borrower. The following Riders are to be executed by Borruwer [check box as applicable]: [-~ Adjustable Rate Rider [-i'~ C0ndonfinium Rider ~-] Second Home Rider ~'~ Balloon Rider [--] Plmmed Unit Development Rider [~ 1-4 Fanfily Rider [--] VA Rider 7-] Biweekly Payment Rider [~ Other(s) [specifyl (FI) "Applicable Law" mear~s all controlling applicable federal, state aud local statutes, regulations, ordinances and administrative 'rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. 0) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and ofl~er charges that are imposed on Borrower or tile Property by a condonfinium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" .means any transfer of fi~nds, other than a transaction originated by check, draft, or similar paper instrument, which is imnated through an electronic ternfinal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not linfited to, point-of-sale transfers, autonmted teller nmchine transactions, traxksfers initiated by telephone, wire transfers, and autoinated clearinglmuse transfers. (K) "Escrow Items" means those items that are described itl Section 3. (L) "Miscellaneous Proceeds" means auy compensation, settlement, award of danmges, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) /bt: (i) damage to, or destruction of,. fl~e Property; (ii) condemnation or other taking of all or any part of file Property; (iii) conveyance in lieu of condemnation; or (iv) ufisrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage hlsurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under file NOte, plus (ii) any amounts under Section 3 of this Security Instnnnent. (O) "RESPA" nmans 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 aud restrictions that are imposed in regard to a "federally related mortgage loan" even if the loan does not qualify as a "t~derally related mortgage loan" under RESPA. Initials.'~ (~)(D-O(WY) ¢ooos) e~ 2 o~ ~5 Form 3051 1/01 694 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; aud (ii) the perfornmnce of Borrower's covemtnts and agreements under this Security Instrument and the No~..te. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successor~ and assigns, with power of sale, file following described property located in the COUNTY of LINCOLN : [Type of Recording !urisdiction] [Name of Recording Jurisdiction] LOT 11 OF THE SCHWAB ADDITION TO THE TOWN OF AFTON, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. LESS AND EXCEPT THE LAND CONTAINED IN WAP. RANTY DEED RECORDED MAY 30, 1995 IN BOOK 368PR ON PAGE 592 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, P.O. BOX 10304, DES MOINES, IA'. 503060304 Parcel ID Number: 12 - 3 319 - 3 4 - 4 - 0 2 2 - 0 7 0 which currently has the address of 57 E SECOND AVENUE [Street] AFTON [Cityl , Wyoming 8 3110 {Zip Code] ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtemmces, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "PropertY." BORROWER COVENANTS that Borrower is lawfully seised of file estate hereby conveyed and has the right to mortgage, grant and convey 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 clainks and demands, subject tO any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform cove~muts for national use and non-unilbrm covenants with limited variations by jurisdiction to constitute a mfiform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender cove.imm aud agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, anti Late Charges. Borrower shall pay when due aie principal of, and interest on, the debt evidenced by file Note and any' prepayment charges and late charges~ due under the Note. Borrower shall also .pay funds for Escrow Items pursuant to Section 3. Payments: due under the Note and this Security Instrmnent shall be ~nade in U.S. curt-ency. However, if any check or other instrument received by Lender as payment under the Note or this (~-6(WY) tOOOS~ v~o~ s o~ ~a ' -- - Form 3051 1/01 · Security Instrument is returned'to Lender unpaid, Lender may require that auy or all subsequent payments due under the Note and tiffs Security Instrmnent be made in nne or more of file following forms, as selected by Lender: (a) casl!; (b) money order; (c) certified check, baltic check, treasurer's check or cashier's check, provided an}' such check is drawn upon an institution whose deposits are insured by a federal agency, instrmnentality, or entity; or (d) Electro~fic Funds Transfer. Payments are deemed received by Lender when received at file location designated in the Note or at such other location as nuty bd designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if file payment or partial payments are insufficient to bring the Loan current. Lender; my accept any paynxent or partial payment insufficient to bring the Loan current, without waiver of andy rights hereunder or prejudice to its rights to refuse such payment or partial payments iii the future, but Lender is ~mt obligated to apply such paynxents at the time such payments are accepted. If each Periodic Paynxent is applied as of its scheduled due date, Oxen Lender need not pay interest on unapplied funds. Lender nkqy hold such unapplied funds until Borrower makes payment to bring the Loan current. If BorroWer does not do so within a reaso~mble period of ti~ne, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to 1breclosure. No offset or claim wlfich Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under rite Note and this Security Instrmnent or perfornfing rile covenants aud agreenxents secured by this Security Instrument. i 2. Application. of Payments or Proceeds. Except as oflxerwise described in this Section 2, all payments accepted and applied by Lender shall be applied iu the following order of priority: (a) interest due under the Note; (b) pri~iCipal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Peri?dic Payment in the order in which it became due. Any remaining a~nounts shall be applied first to late charges, second to any other a~nouuts due under this Security hutrument, and then to reduce rite principal b01~nce of die Note. If Lender receives a p~ynxent from Borrower for a deliuquent Periodic Payment which includes a sufficient amount to pay anyilate charge due, the payment may be applied to die delinquent payment and the late charge. If more than i)ne Periodic Payment is outstanding, Lender may apply any payment received from Borrower to rite repayment of the Periodic Payments if, and to the extent that, each pay~nent can be paid in full. To the extent th~it any excess exists after the payment is applied tp the full payment of one or more Periodic Payments, such excess lnay be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of pay~;nents, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone die due date, or change the amount, of die Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) 'taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on rite property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any s;.uns payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with die provisions of Section 10. These items are called "Escrow Items." At origiuation or at any time dufi~ig the term of the Loan, Lender may require fllat Cmmnmfity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly funfish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items tmless Lender waives Borrower's obligation to pa~ the Funds for any or all Escrow Items. Lender nuty waive Borrower's obligation to pay to Lender E:unds for any or all Escrow Items at any time. Any such waiver may o~fly be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts (~-6{Wy} Page 4 of 16 : Form 30{51 1/01 690 due for any Escrow Itetns for which payment of Funds has been waived by Lender and, if Lender requires, shall funfish to Lender receipts evidencing such payment within such time period as Lender nuy require. Borrower's obligation to make sdch payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement cohthined 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 a waiver, and Borrower fails to pay the amoum due for an Escrow Item, Lender nuy exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated raider Section 9 to repay to Lender any such amoum. Lender nuy revoke fie waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 mi[l, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, 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 maxinmm amount a lender can require under RESPA. Lender shall estimate the amount of Funds due ou the basis of current data and reasonable estinmtes of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrmnentality, 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 under RESPA. Lender shall not charge Borrower tbr holdiug and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pemfits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an ammal accounting of file Funds as required by RESPA. If there is a surplus of l:'unds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess duds :~n 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 file amount necessary to nuke up the shortage in accordance with RESPA, but in no urore than 12 monthly payments. If there is a deficiency of Fmrds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more run 12 montldy payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens..Borrower shall pay all taxes, assess~nents, charges, fines, and impositions attributable to the Property which can attain priority over fids Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay thelu in the maimer provided in Section 3. Borrower shall promptly discharge any lien wlfich has priority over this Security lnstnnnent mfless Borrower: (a) agrees in writing, to the payment of the obligation secured by the lien in a lnmmer 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 the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agree~nent satisfactory to Lender subordinating the lien to fids Security Instrument. If Lender deternfines that any part of the Property is subject to a lien which can attain priority over Cais Security Iustmment, Lender may give Borrower a notice identifying the 6{WY} Iooosl Page sot ~5 ' Form 3051 1/01 lien Within 10 days of the dltte on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set tbrth 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 Let, der in co~mection with this Loau. 5. Property Insurance.! Borrower shall keep the improvements now ex~sting or hereafter erected on the Property insured against loss by fire, hazards included within rite term "extended coverage," and any other hazards including, but not linfited to, earthquakes attd floods, tbr which Lender requires insurance. This insurance shall be nraintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised uitreasonably. Lender may reqmre Borrower to pay, in cmmection with fids Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time rmnappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees impost:d by the Federal Emergency Management Agency in coimection with rite review of any flood zone determination resulting frotn an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender nhay obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or nfight not protect Borrower, Borrower's equity in the Property, or the conteuts of the Property, against any risk, hazard or liability and ]night 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 coul:l have obtained. Any amonnts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requestitlg paymem. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall 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 require.:s, Borrower shall promptly give to Lender all receipts of paid prenfimns and renewal notices. If Borrowm obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction cf, the Property, such policy shall include a standard nmrtgage clause aid shall na]ne Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Leuder may nmke proof of loss if nc, t made promptly by Bm'rower. Utfless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not rite underlying insurance was required by Lender, shall be applied to restoration or rePair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have rite right to hold such insurance proceeds uutil Lender has had an opportmfity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender nuay disburse proceeds for the repairs and restoration in a single payment or tn a series of progress payments as the work is completed. Utfless att agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or ear]tings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not econonfically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with (~}~-6(WY) (ooos) Pag~ 6 of ~6 Form 3051 1/01 the excess, if any, paid to Boffower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insuranCe claim and related matters. If Borrower does not respond within 30 days to a notice from Lender fllat the insurance carrier has offered tc ?,ettle 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 alnounts unpaid under the Note or tiffs Security Instrument, and (b) any other of Borrower's rights (other titan the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to fl~e coverage of the Property. Lender may use the insurance proceeds either to repair or restore fl~e Property or to pay amounts unpaid under fl;.e Note or tiffs Security Instrulnent, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use file Property as Borrower's principal residence within 60 days after the execution of this Security Instrument aud shall continue to occupy the Property as Borrower's principal residence for at least one year after tbe date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be um'easonably withheld, or unless extenuating circumstances exist which are lreyond Borrower's control. 7. h'eservation, Mainteuance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair rite Property, allow the Property to deteriorate or connnit waste on the Property. Whether or not,Bon'ower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property ~¥om deteriorating or decreasing in value due to its condition. Uifless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioratiou or damage. If insurance or condemnation proceeds are paid in comlection with dainage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring file Property tuffy if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a siugle payment or in a series of progress payments as the worl~ is completed. If the insurance or condennmtion proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may. make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the iutefior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in de/huh if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, nfisleading, or inaccurate infornmtion or statements to Lender (or failed to provide Lender wifl~ material inlbrmation) in connection with file Loan. Material representations include, but are not limited to, representations concerxfing Borrower's occupancy of the Property as Borrower's princip:~l residence. 9. Protection of Lender'~ Interest in the Property and Rights Under this Security Instrument. if (a) Borrower fails to pertbrm fl~e covenants and agreements contained in this Security'.Instrument, (b) fl~ere is a legal proceeding that might siglfificantly affect Lender's interest in file Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, /'or enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reaso~mble or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any stuns secured by a'lien which has priority over this Security Instrumeut; (b) appearing in court; and (c) paying reasonable {~)~-6(WY) (ooos) Page 7 o~ 15 Form 3051 1/01 attorneys' tees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bar;klnptcy proceeding. Securing rile Property iucludes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation !rd do so. It is agreed that Lender incurs no liability tbr not taking any or all actions authorized under this ;~¢ction 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Bon'ower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, wifll such interest, upon notice from Lender to Borrower requesting pay~nent. If this Security Instrmnent is 'on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance.' If Lender required Mortgage Insm'ance as a condition of making the Loan, Borrower shall pay the preufiums required to nmintain file Mortgage Insurance in effect. If, for any reason, file Mortgage Insurance coverage required by Lender ceases to be available from file mortgage insurer that previously provided such insurance and Borrower was required to nmke separately designated payments toward file premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equiwilent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage lnsurauce previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurauce. Such loss reserve shall be non-refundable, notwifllstant~ing the hct that the Loan is ulti~nately paid in full, aod Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and tbr file period that Lender requires) provided by an insurer selel:t~d by Lender again becomes available, is obtained, and Lender requires separately designated paymex~ts toward the premimns for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of inaking the Loan and Borrower was required to nmke separately designated payments toward the premimns for Mortgage Insurance, Borrower shall pay file premiums required to maintain Mortgage Insuranc~ in effect, or to provide a l~on-refuodable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such tei'mination or until terufination is required by Applicable Law. Nothing in this Section 10 affects Borrower'? Obligation to pay interest at the rate provided ill file Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses, it may incur if Borrower doesi not repay the Loan as agreed. Borrower is not a 13arty to the Mortgage Insurance. ~ Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with otimr parties that share or lnodify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer a3qd file other party (or parties) to these agreements. These agreements may require the mortgage insurer to n~ke payments using any source of funds that file mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of file Note, another insurer, ally reinsurer, any other entity, or any affiliate of any of rite foregoing, may receive (directly or indirectly) amonnts that derive from (or might be ch;'.racterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or mo:lffying the mortgage i~ksurer's risk, or reducing lo}ses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer,, the arrangement is often termed "captive reinsurance." Further: (at Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or an~' other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (~t~-6(WY) (ooo5} t I.iti . ~ i Pag. ao~5 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under tl~e Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have,the Mortgage Insurance terminated automatically, aud/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to ,Lender. If the Property is damaged,~ such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an 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 umy pay for rte repairs and restoration in a s:~.ngle disbursement or in a series of progress payments as the work is completed. U~fless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneons Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneo'us Proceeds shall be applied to file sums secured by tiffs Security Instrulnent, 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 t~ -ldng, destruction, or loss in value of the Property in which the fair nmrket value of the Property inunediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of rite sums secured by this Security Instrument i~mnediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by tiffs SeCurity Iustrument shall be reduced by the amouut of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured inm~ediately before the partial taking, destruction, or lvss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial t~king, destruction, or loss in value of the Property in which the fair nmrket value of the Property immedia,:ely before the partial taking, destruction, or loss in value is less than the amount of the sums secured innnediately before the partial taking, destruction, or loss in value, mfless Borrower and Lender otherwise: agree in writing, the Miscellaueous Proceeds shall be applied to the sums secured by this Security Instruff~ent whether or not the sums are then due. If the Property is abandi~ned by Borrower, or if, after notice by Leuder to Borrower that the Opposing Party (as defined in file next sentence) offers to make an award to settle a claim for danmges, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Secnrity Iustrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellane~oUs Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in defa~flt if any action or proceeding, whether civil or criufinal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Leuder's interest in the Property or righ":s :under this Secm'ity Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing file action or proceeding to be disnfissed with a ruling that, i~'~ Lender's judgment, precludes forfeiture of file Property or other material impairment of Lender's interes~. in the Property or rights under this Security Instrumeut. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall b~: paid to Lender. All Miscellaneous Proceeds that are not applied ,to restoration or repair of the Property shall be applied in the order provided for in Section 2. , (~-6(WY) Iooosl Page ~ o~ ~ Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the stuns secured by this Security Instrument granted by Lender to Borrower or any Successortin Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to couunence proceedings against any Successor in Interest of. BOrrower or to refuse to extend dine tbr payment or otherwise modify amortization of the sums secured, by tiffs Security Instrument by reasou of any demand made by the original Borrower or any Successors ii~ Iaterest of Borrower. Any tbrbearance by Lender in exercising auy right or remedy including, without lififitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrc'wer or in amounts less than file 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. obl:igations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay file sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower cau agree to extend, modify, forbear or make any acco~mnodations with regard to the terms of this Security InsU'un~ent or the Note without the co-signer's consent. Subject to the provisioas of Section 18, any Successor in Interast of Borrower who assmnes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights ,'md ~enefits under this Security hlstrument. Borrower shall not be released from Borrower's obligations and liability under fl~is Security Instrument mfless 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. Leander may charge Borrower fees for services perforxned in comlection with Borrower's default, for the pllrpose of protecting Lender's interest in the Property and rights under this Security Instrmnent, including, but not limited to, attorneys' tees, property inspection and valuation fees. In regard to any other fees, th~ absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such tee. Lender may not charge fees that are expressly prohibi!ed by this Security Instrument or by Applicable Law. If the Loan is subject to z~ law which sets maxinmm loan charges, and that laW is finally interpreted so that the interest or other loanlcharges collected or to be collected in co~mection with the Loan exceed the pernfitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce file charge to the permitted linfit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Boirower. Lender may choose to umke this refund by reducing the principal owed under file Note or by.'n~tking a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as :a partial prepayment without any prepayment charge (whether or not a prepayment charge is provide,~l for under the Note). Borrower's acceptance of any such refund nmde by direct payment to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of such overcharge.· . 15. Notices. All notices: g~ven by Borrower or Lender in com~ection with this Security Instrmnent must be in writing. Any notic~ to Borrower ill com~ection with this Security Instrument shall be deemed to have been giveu to Borrowerl when nmiled 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 mfless Applic,'~ble Law expressly requires otherwise. Tile notice address shall be the Property Address unless Borrower has designated a substitute notice address by uotice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given,by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender :has designated another address by notice to Borrower. Any notice in co~mection with this Security .Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the con'esponding requirement under tiffs Security Instrument. ~-6(WY) tooosl Pago~Oo~S Form 3051 1/01 -- ?02 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in whicl~ the Property is located. All rights and obligations contained in this Security Instrulnent are subject to any requirements and limitations of Applicable Law. Applicable Lo w. might explicitly or implicitly allow the parties to agree by contract or it nfight be silent, but such silence 'shall not be construed as a prohibition against agreement by contract. In the event that any provision o:~ clause of this Security Instrmnent or the Note conflicts with Applicable Law, such conflict shall not affect other provismns of riffs Security Instrun~ent or the Note which can be given effect without the conflicdn:g provision. As used in this Security hlstrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the fenfinine gender; (b) words in the singular shall mean and include tim plural and vice ver;;ai and (c) the word "nmy" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of die Note and of this Security Instrument. 18. Transfer of the Proh~erty 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 interests tr;msferred in a bond for deed, contract tbr deed, instalhnent sales contract or escrow agreement, the intent ot 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 ~hamral person aud a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require innnediate payment in full of all sums secured by this Security Instrument. However, tlfis 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 dian 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by fids Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender nmy invoke any remedies permitted by this Security Instrument without further notice or denmnd on Borrower. 19. Borrower's Right ro Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontitmed at any time prior to the earliest of: (a) five days before sale of die Property pursuant ro any power of sale contained irt this Security Instrument; (b) such other period as Applicable Law might specify for the ternfimttion of Borrower's fight to reinstate;' or (c) entry of a judgment enforcing tiffs Security Instrmnent. 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 bad occurred; (b) cures any default of any other covelmnts or agreements; (c) pays all expenses incurred in enforcing this Security Instrmnent, including, but not linfited to, reasonable attorneys' fees, property inspection and valuation t.ees, 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 m"ay reasolmbly require to assure that Lender's interest in the Property and rights under tlfis Security Instrament, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unc~hanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) ~noney order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security hlstrument and obligations secured hereby shall rentain fully effective as if no acceleration had occurred. However, dfis right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrumen0 can be sold one or more times without prior notice to Borrower. A sale nfight resuk in a change in the entity (known as die "Loan Servicer") that collects Periodic Payments due under the Note 'and this Security Instrument and pertbrms other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also nfight be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of die Loan Servicer, Borrower will be given Written notice of the change which will state the name and address of the new Loan Servicer, the address !o which payments should be n~'tde and any other information RESPA Initial (~-6(WY) (ooo51 ' Page 11 o1' 15 Form 3051 1/01 703 requires in cozmection with a 'notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer dth~r dian the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial actiou (as either an individual litigant or the me~nber of a class) that arises from die other party's actions pursuant to this Security Instrmuent or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instm. ment, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that rune period will be deemed to be reasmmble for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy die notice and opportunity to take corrective action provisions of this Section 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and die following substances: gasoline, kerosene, other flannnable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials contai~fing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" me~'ins federal laws and laws of the jurisdiction 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 iu Enviromnental Law; and (d) an "Enviromuemal Condition" means a condition flint can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not caus6 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) d~at is in violation of any Enviromnental Law, (b) which creates an En~iromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects die value of the Property. The preceding two sentences shall not appl~ to the presence, use, or storage on the Property of snmll quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to n~tintelmnce of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any iuvestigation, claim, demand, lawsuit or other action by any gover~hnental or regulatory agency or private party involving the Property and auy Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substauce which adversely affects the value of the Property. If Borrower learns, or is notified by any govermnental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Envirolmxental Law. Nodfing herein shall create any obligation on Lender for an Environmental Cleanup. II~-6(WY) looosl page ~ 2 of ] s Form 3051 1/01 704 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior tO acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action req~fired to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default mnst be cured; and (d) tlmt failure to cure the default on or before the date Specified in the notice may result in acceleration of the sums secured by tbis Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a defanlt or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified iu the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lemler shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may pnrcbase the Property at an), sale. The proceeds of the sale shall be applied in the followiug order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secnred by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payinent of all sums secured by this Security Instrument, Lender shall release tiffs Security htstrument. Borrower shall pay any recordation costs. Leuder may charge Borrower a fee for releasing this Security Instrumem, but o;fly if the fee is paid to a third party for services rendered and the charging of the fee is permitted uader Applicable Law. 24. Waivers. Borrower releases and waives all rights under aud by virtue of the hmnestead exemption laws of Wyonfing. Initial a.'~~ (~)~-6(WYJ 1ooo51 Pag~ 13 of 15 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and cove~mnts contained in tiffs Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: RICHARD ARNOLD HARKNESS (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~6(WYI {ooo51 Page ~4 o~ ~s Form 3051 1/01 STATE OF WYOMING, LINCOLN The foregoing instrument was acknowledged before ]ne this by RICHARD ARNOLD HARIhNESS County ss: My Cmm~fission Expires: Nota~blic (~-6GfWY) (ooos} Page 15 of 15 Form 3051 1/Ol