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HomeMy WebLinkAbout899616Return To: HERITAGE MORTGAGE CORPORATION 9710 TWO NOTCH ROAD COLUMBIA, SC 29223 Prepared By: MERITAGE MORTGAGE CORPORATION 6000 SW MEADOWS ROAD. SUIT~ 500 LAKE OSWEGO, OR 97035 899616 RECEIVED LINCOt. N COUNTY CLERK 0t~Hfi¥25 Fi~ [,:11 ,; ~:/:~, ~'1 r~,, ," ~,'-;' .,:", (~ N E r'~ Loan Number: 1000168184 [Space Above This Lhte For Recording Data] MORTGAGE M[N 100014410001681843 DEFINITIONS Words used in multiple sections of this document, are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in riffs document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated May 24. 2004 together with all Riders to this document. 01) "Borrower" is JERRY DUMMER AND CONNIE [:'UMMER. HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a noininee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is orgmfized and existing unde~ the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS (~}®-6A(WY) {ooo~).o~ ~ Pa~e 1 o! lei Initi~s: , VMP MORTGAGE FORMS - 18OO1;2 I-~'~9~ ~r~"'~ DDS-WY6 Form 3051 1/01 (D) "Lender" is MERITAGE MORTGAGE CORPORAl-ION Lender is a AN OREGON CORPORATION organized and existing under, the laws of OREGON Lender's address is 6000 SOt:tTHWEST HEADOWS ROAD, SUITE 500 LAKE OSWEGO, OR 97035 !. i (E) "Note" means die pronfi~sgry note signed by Borrower and dated May 24, 2004 The Note states that Borrower owes Lender Forty-Five Thousand Fi fly & 00/100 i~ i Dollars iU.S. $ 45,0S0.00 ~ ~ ) plus interest. Borrower bas pronfised to pay this debt in regular Periodic Payments and to pay the deN in full not later than .June 01, 2034 (Ir) "Property" means the pyoperty that is described below under the beading "TransIEr of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrmneut, plus interest. (H) "Riders" means all Ridors to this Security Instrument that ;ire executed by Borrower. The following Riders are tO be executed by ~Borrower [check box as applicable]: ~-] Adjustable Rate Rider [] Condonfinium Rider [~ Second Home Rider [---] Balloon Rider - ~_--] Plamm'd Utfit Development Rider [--] 1-4 Fanfily Rider ['--] VA Rider [] Biweekly Payment Rider [---] Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulatimm, ordi]mnces and administrative niles and orders (that have die effect of law) as well as all applicable fuml, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments anti other charges that are imposed on Borrower or the Property by a c.ondoniinium association, !lomeowners association or si~nilar organization. (K) "Electronic Funds Trgnsfer" means any transfer of fuuds, other than a transaction originated by cbeck, draft, or sinfilar paper instrument, which is initiated through an electronic tenni/ml, telephonic instrmnent, computer, or nmgnetic tape so as to order, instruct, or authorize a finaucial institution to debit or credit an account. Such ~erm includes, but is not linfited to, point-of-sale trausfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and autonmted clearinghouse transfers.. (L) "Escrow Items" means those itenks that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid tinder die coverages described in Section 5) for: (i) damage to, or destructiou of, 'the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) misrepresentations of, or onfissions as to, the value and/or condition of file P!operty. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts trader' Section 3 of this Security Instrument. (P) "RESPA" means the Rehl Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) rind its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additimml or suCcesSor legislation or regulation that governs file same subject matter. As used in tiffs Security Instrmnent, i'I'C~SPA" refers to all requirements and restrictions tha{ are imposed in regard to a "federally related inortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6A(WY) 1ooo5}.o~ P~. 2 ol ~5 Form 3051 1101 DOS-WY5 (Q) "Successor in Interest o? 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 Instrmnent. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: ti) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and '(ii) the performance of Borrower's covenants and agreements under this Security Instrmnent and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee:for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the County of LINCOLN : [Type of Record ing Jurisdiction] [Name of Recording Jurisdiction] LEGAL DESCRIPTION A1 FACHED HERETO AND MADE A PART HEREOF. ParcelID Nmnber: 12-2116-14-4-12-114.00 404 UPPER SUNSET KEMMERER ("PropertyAddress"): which currently has the address of [Street] [City] , Wyonfing 83101 lZip Code] 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 cove, ed by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee ~br Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the fight to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrmnent. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except tbr encumbrances of record. Borrower warrants and will defend generally the title to the Property against all clai~ns and denmnds, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniforn~ covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. D D S-WY Form 3051 1/01 UNIFORM COVENANTS. Borrower and Lender Covenant and agree as tbllows: 1. Payment of Principal;, Interest, Escrow Items, Prepayment Charges, and Late Charge, Borrower si'tall pay when due! fl~e principal of. and interest on, the debt evidenced by fl~e Note and any prepayment charges and late eh;~rges due under fl~e Note. Borrower shall also pay fimds for Escrow Itenm pursuant to Section 3. Pay~nOats due under die Note and tiffs Security Instrument shall be made in U.S'. curt'ency. However, if any chgck or off,er instrument received by Lender as payment trader d~e Note or tiffs Secm-ity Instrmnent is retum<.d to Lender nnpaid, Lender may require that any or all subsequent payments due nnder fl~e Note and flfi{ '. Security Instrument be nmde in one or more of tlie following forms, as selected 'by Lender: (a) casl~ (b) money order; (c) certified check, bank check, treasm'er's check or caslfier's check, provided any such check is drawn upon an institution wb0se deposits are insured by a federal agency, instrumentality, or entity; or (d) Eleclronic Funds Tra~t~r. Payments are deemed received by Lender when received at fl~e location desigmtted in the Note or at such oilier location as nmy be: designated by Lender in accordance with file notice provisions in Section 15. Lender ~m~y return any payment or partial payment if the paymeut or partial payments are insufficient to bring tim Loan current. Lenffer may accept any payment or partial payment i~ufficient to bring fl~e Loan current, wiflmut waiver ofaay rights heremider or prQndice to its rights to refi~se stlch payment or partial payments in the fi~ture, but Eender is not obligated to apply such payments at fl~e time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, fl~en Lender need not pay interest on mmpplied fimds. Lender nmy hold such Unapplied funds tn~til Borrower makes payment to bring rite Loan cnrrent. If Borrower does not do so within a reasonable period of time, Lender shall eifl~er apply such rinds or return fl~em to BorroWer. If not applied earlier, such fimds will be apl)lied to fl~e outstanding principal bahmce under the Note immediately prior to tbrech)sure. No offset or claim which Borrower nfight have now or in fl~e fim~re against Lender shall relieve Borrower front nu~king payments due nnder fl~e Note and ~is Security InStrument or pertbmfing fl~e covenants and agreements secured by tiffs Secm'ity Instrument. 2. Application o'f Payments or Proceeds. Except as ofllerwise described in tiffs Section 2, all payments accepted and appliml by kender shall be applied in the tbllowing order of priority: (a) interest due nnder the Note; (b) .principal due trader file Note; (c) a~notmts due nnder Section 3. Such paymeats shall be applied to each Periodic Payment in fl~e order in which it became due. Any remaining amounls shall be applied first to late charges, second to any ofl~er amounts due under tiffs Security htstrmnent, and then to reduce fl~e principal b klance of the Note. If Lender receives a payment fi'om Borrower for a delinquent Periodic Payment which includes a sufficient ammmt to pay any'late charge due,' ~e payment may be applied to the delinqueot payment and the late charge. If more than One Periodic Payment is outstandiug; Lender nmy apply any paymeat received from Borrower to fl~e repayment of fl~e Periodic Payments if, and to die extent fi'mt, each payment can be paid in fifll. To fl~e extent flint any excess exists after fl~e payment is applied to fl~e full payment of one or more Periodic Payments, snc!~ excess uny be applied to any late charges due.' Voluntary prepayments shall be applied first to any prepayment charges and titan as described in fl~e Note. Any application of payments insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or ppstpone fl~e due date, or change fl~e amount, of fl~e Periodic Payments. 3. Fun~ for Escrow l'tems. Borrower shall pay to Lender on file day Periodic Payments are due under file Note, until fl~e Not~: is paid in lhll, a sum (the 'Tunds") to provide for payment of amonnts due for: (a) taxes and assessments and ofl~er items which can'attain priority over this Security Instrument as a 'lien or encumbrance on the EroPerty; (b) leasehold payments or ground rents on the Property, if any; (c) prenfiums for any and all insugance required by Lender nndcr Section 5; and (d) Mortgage Insurance prm~u~, if any, or any stuns payable by Borrower to kender in lieu of fl~e payment of Mortgage Insurance prenfinms in accm:'dance with fl~e provisio~m of Section 10. These itenm are called "Escrow Irma." At ofigimtion or at hny time during fl~e term of rte koan, Lender n~y reqnire that Co~nmfity Association Dues, Fees, anff Assessments, if any,' be escrowed by Borrower, and such dues, fees and assessments shall be an Escro~7 item BorroWer shall promptly fin'nisb to Lender all notices of amounts to be paid under tiffs Section. Bcn'ower shall pay Leuder rte Funds for Escrow Itenm nnless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to payto Lender ~3mds for any or all Escrow Items at any dme. Any such waiver may only be in writing. In fl~e event of such waiqer, Borrower shall pay directly, when and wbere payable, file amoun~ ~6A(WY) Iooo~},o~ p~, 4 ot ~ Form 3051 ~ 101 DDS-WY6 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall fundsh to Lender receipts evidencing such payment wiflfin such tinre period as Lender may require. Borrower's obligation to make such pay~nents and to provide receipts shall for all proposes be deemed to be a coveoant and agreement contained in this Security Instrument, as the phrase "covenant and agreemeut" is used in Section 9. If Bor)'0wer is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the am,unt due for an Escrow Item, Lender nmy exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke: the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 hnd, 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 a~nount (a) sufficient to pernfit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the nmx~mum amount a lender can require under RESPA. Lender shall estimate file amount of Fmtds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are i~mured by a federal agency, instrumentality, or entity(including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bard:. Lender shall apply.the Funds to pay fl~e Escrow Items no later titan the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, a~mually analyzing the escrow account, or verifying the Escrow Items, mfless Lender pays Borrower interest on the Funds and Applicable Law pernfits 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 eau agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more titan 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required 'oy RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordanve with RESPA, but in no more fl~an 12 monthly 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. Bmrower shall pay all taxes, assessments, charges, fines, and impositions attributable to file Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Cmmnmfity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the maturer provided in Section 3. Borrower shall promptly discharge any lien which has priority over fltis Security Iustrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a mmmer acceptable to Lender, but only so long as Borrower ~s 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 opimon operate to prevent the enforcement of the lien wlfile those proceedings are pending, but tuffy until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security. InstrUment. If Lender deternfines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the (~-6A(WY) Iooosl.o~ P~g, 6 of ~s Form 3051 1/01 DOS-WY6 lien. Within 10 days of the dltt6 on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Borrower to pay a one-time charge for a real estate tax verification and/or Lender may require ~ reporting service used by Lefider in connection with this Loan. 5. Property Insurance: Borrower shall keep the improvements now existing ot hereafter erected on the Property insured agaiust ~loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maix?~tained in the amounts (including deductible levels) and for the periods that Lender requires. What Lend~:r requires pursuant to the preceding sentences can change during the term of the Loan. The insurance can[ier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised mn-easonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking gervices; or (b) a one-time charge for flood zone deternfination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone detei:mfination resnlting from an objection by Borrower. If Borrower fails to mair~tain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage~ Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Propei'ty, or the contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of :the insurauce coverage so obtained might significantly exceed rite cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional deb~ of Barrower secured by this Security Instrmnent. These amounts shall bear interest at the Note rate from the dat:e of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesti~g payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a Standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies aud renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for da~nage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, BOrrower shall give prompt notice to the insurance cartier and Lender. Lender may make proof of loss if not made promptly by Borrower. U~fless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceed~ 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 prompdy. Lender may disbu!se proceeds for the repairs and restoration in a siugle payment or in a series Of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid oh Such insurance proceeds, Lender shall uot be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by · I Borrower shall not be pa~d qut of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is ncr econonfically feasible or Lender's security would bg lessened, the insurance proceeds shall be applied to rite sums secured by this Security Instrument, whether or not then due, with initial (~)~-6A(WY) 100o51.01 Vaga 6 ot ~s Form 3051 1/01 DDS:WY5 '..,-7'14 . the e×cess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons tl/~ Property, Lender may file, negotiate and settle any available insurance claim and related matters. If fl!)rrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered tO isettle a claim, then Lender may negotiate and settle file claim. The 30-day period will begin when the ni0tice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Boi-rower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrmnent, and (b) any other of Borrower's r!ghts (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, iusofar as sucb rights are applicable to the coverage of the Property. Lenc~6r may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether Or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's princiiJal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, wlfich consent shall not be unreasonably withheld, or unless exte~mating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Sectio!a5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairi'ng or restoring the Property o~ly if Lender has released proceeds for such purposes. Lender may disburse 'proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemuation proceeds are not sufticient to repair or restore the Proper:~.Y, 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 ii~spect the interior of the improvements ou the Property. Leuder shall give Borrower notice at the time of o~ prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any per.,:ons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Le~er, with material information) in com~ection with the Loan. Material representations include, but are not limited to, representations concer~fing Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Uuder this Security Instrument. If (a) Borrower/:ails to perform ~he covenants and agreements contained in this Security h~strument, (b) there is a legal proceeding that might sig~fificantly affect Lender's interest in the Property and/or rights under fi:is Security Instrument (such 'as a proceeding in bankruptcy, probate, for condenmation or forfeiture, for enforcement of a lien which may attain priority over tiffs Security Instrument or to enforce laws or regulations), or (c) Borrower 'has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, includiug protectir~g 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 sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable Initials:~ (~-6A(WY) Iooos).o~ Page 7 o~ ~S Form 3051 1/01 DDS-WY5 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a ba;tkruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to ;nake'repairs, change locks, replace or board up doors and windows, drain water from pipes, elinfinate buildlhg or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender -;mty take action under fids Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under tlfis Section 9. Any amounts disbursed by Lender under this Section 9 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 requesting payment. If this Security Instrument 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 mfless Lender agrees to the merger :tn writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to uhaintain the Mortgage Insurance in effect. If, tbr any reason, the Mortgage Insurance coverage required by Lender ceases to be available from die mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the prenfimns for Mortgage Insurance, Borrower shall pay the prentimns required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cogt substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall contitme 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 Insurance. Such loss reserve shall be non-refundable, notwi[tistanding the fact that the Loan is ultinuitely paid in full, and Lender shall trot 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 for the period that Lender requires) provided by an insurer selected by Lender again beco~nes available, is obtained, and Lender requires separately designated payments toward [tie premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premimns lbr Mortgage Insurance, Borrower shall pay the premimns required to maintaiu Mortgage Insurance in effect, or to provide a nou-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such ternfination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower'~s obligation to pay interest at the rate provided iu the Note. Mortgage Insurance re:~mburses Lender (or any entity that purchases file Note) for certain losses it may ~ncur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreemems with other parties that share or inodify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which ]nay include funds obtained from Mortgage Insurance pre~nimns). As a result of these agreements, Lender, any purchaser of file Note, another ~nsurer, any reinsurer, any other entity, or any affiliate of any of [tie foregoing, may receive (directly or indirectly) amounts that derive frown (or ~night be characterized as) a portion of Borrower's payments fo[ Mortgage Insurance, in exchange for sharing or modifying [tie mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer~, the arrangement is often termed "captive reinsurance." Further: (a) Any snch agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrow/e~ to any refund. nitial~~(] (~i)~-6A(WY) {ooo5}.Ol Pagesot ~5 Form 3051 1/01 DD$-WY6 ,) (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance underi, the Homeowners Protection Act of 1998 or any other law. These rights may include the right to,receive certain disclosure, to requ~t and obtain cancellation of the Mortgage Insurance, to ha?e the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiu~ that were unearned at the time of such cancellation or termination. 11. Assignment of M~scellaneous Proceed; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If ~e Property is danmged, such Miscellaneous Proceeds shall be applied to restoration or repair of · e Prope~y, if fl~e restoration or repair is econonficall] feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have ~e right to bold such Miscellaneous Proceeds until Lender has had an op~'~rtu~ty to inspect such Property to e~ure fl~e work bas been completed to Lender's .satisfaction, provided ~at such i~pection shall be undertaken promptly. Le~er nmy pay for fl~e repairs and restoration in a single disbursement or in a series of progress payments as fl~e work is completed. Unless an agreement is nmde in writing or Applicable Law requires interest to be paid ou such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or eanfiugs on such Miscellaneous Proceeds. If fl're restoration or repair is not econonfically feasible or Lender's security would be lessened,- flxe Miscellaneous Proceeds shall be applied to fl~e sm~ secured by ~is Security I~tmment, whefl~er or not ~en dne, wifl~ fl~e excess, if any, paid to Borrower. Such Miscellaneous Proceeds sball be applied in fl~e order provided for in Section 2. In ~.e event of a total taking, destruction, or loss in value of fl~e Property, fl~e Miscellaneous Proceeds shall be applied to fl~e su~ secured by ~is Security Instrument, wheflxer or not ~en due, wifl~ fl~e excess, if any, paid to Borrower. In ~e event of a partial ta~ng, fiestmction, or loss in value of ~e Propeffy in which fl~e fair mrket value of fl~e Property inmxediately before fl~e partial taking, destruction, or loss in value is equal to or greater fl~an fl~e amount of the su~ secured by tiffs Security Instrument i~ediately before fl~e partial ta~ng, destruction, or loss in value, mfless Borrower and Lender o~erwise agree in writing, ~e su~ secured by tiffs Security Ir~tmment shall be reduced by fl~e amount of fl~e Miscellaneous Proceeds multiplied by flxe following fraction: (a) fl~e total amount of fl~e sunm secured inm~ediately before ~e paaial ta~ng, destruction, 'or loss in value divided by (b) the fair nmrket, value of flxe Property i~nediately before ~e partial ~king, destruction, or loss in value. Any balance shall be paid to Bo~ower. In ~e event of a partiaJ taking, destruction, or loss in value of ~e Property in which fl~e hir nmrket value of fl~e Property i~nediately before ~e partial taking, destruction, or loss in value is less fl~an ~e amount of fl~e sm~ secured ixmediately before ~e partial taking, destruction, or loss in value, mfless Borrower and Lender o~erwise agree in writing, ~e Miscellaneous Proceeds shall be applied to ~e su~ secured by tiffs Security Instrument wheflmr or not fl~e sunu are flxeu due. If ~e Property is abaadoned by Borrower, or if, after notice by Lender to Bo~ower that ~e Opposing Party (as defined in ~e next sentence) offers to nmke an award to settle a claim tbr da~mges, Borrower fails to respond to Lender wi~in 30 days after fl~e date fl~e notice is given, Lender is auflmri~d to collect and apply file Miscellaneous Proceeds eider to restoration or repair of flxe Property or to ~e sums secured by tiffs Security Inst~ment, whefl~er or not fl~en due. "Opposing Pa~y" mea~ flxe flfird pa~y · at owes Borrower Miscellaneous Proceeds or fl~e party agai~t whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whefl~er civil or criufi~ml, is begun ~at, in Lender's judgment, could result in forfeiture of fl~e Property or off,er nmterial impairment of Lender's interest in fl~e Property or fights under tiffs Security hmtmluent. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing ~e action or proceeding to be disnfissed wi~ a ruling flint, in Lender's judgment, precludes forfeiture of fl~e Property or off, er nmterial impaim~ent of Lender's interest in fl~e Property or fights under tiffs Security hutmment. The proceeds of any award or claim for danmges ~at are attributable to fl~e impairment of Lender's interest in fl~e Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds ~at are not applied to restoration or repair of ~e Property shall be applied in fl~e order provided for in Section 2. (~-6A(WY) Iooo~l.o~ DDS-WY5 InitJals~ Page I~ of 16 Form 3051 1101 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of ~mortization of the stuns secured by this Security Instnunent granted by Lender to Borrower or auy Successor: in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interesl of Borrower. Lender shall not be required to couunence proceediugs against any Successor in Interest o;f! Borrower or to refuse to extend time Ibr payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any denmnd nmde by the origi~ml Borrower or any Successors jn Interest of Borrower. Any Ibrbearance by Lender in exercising any right or · remedy including, Without '!infitation, Lende{'s acceptance of payments from third persons, entities or Successors in Interest of Bor:0wer or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of auy light or remedy. 13. Joint and Several .Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Secnrity Instrument but does not execute the Note (a "co-signer"): (a) is co-sigrfing this Security Instrmnent only to !nortgage, grant and convey the co-siguer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay die stuns secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or nmke any accommodations ~?jth regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisi0:ns Of Section 18, any Successor in Interest of Borrower who assumes' Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtaiu all of Borrower's rights and benefits under this Security Instrument. BorroWer shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release iu 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. L~nder may charge Borrower fees for services performed in cmmection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, includigg, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other feesl the absence of express authority iu this Security Instrument to charge a specific fee to Borrower shall not be Construed as a prohibition on the chargiug of such fee. Lender may not charge fees that' are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loah' charges collected or to be collected in comlection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted lindt; and (b) any stuns already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to nmke this refund by reducing the principal owed under the Note or by nmking a direct payment to Borrower. If a refund reduces principal, the reduction will be treated a'~ a partial prepayment without any prepayment charge (whether 'or uot a prepayment charge is provided /hr under the Note). Borrower's acceptance of any such refi,nd xnade by direct payment to Borrower Will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices, All notices given by Borrower or Lender in cmmection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrulnent shall be deemed to have been given to Borrower when mailed by first class nmil or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expt!essly requires otherwise. The uotice address shall be the Property Address unless Borrower bas designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's, change of address. If Lender specifies a procedure for rep°rting Borrower's change of address, then Borr6wer shall only report a change of address through that specified procedure. There may be only one desigmted notice address under this Security Instrmnent at any one time. Any notice to Lender shall be giyen by delivering it or by nmiling it by first class nmil to Lender's address stated herein unless Lende?~has designated another address by notice to Borrower. Any. notice in cmmection with this Security Instrument shall ~mt 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 i'equirement will satisfy the corresponding requiremeut under .fltis Security Instrument. (~-6A(WY} (ooo5).o~ DDS-WY5 Initials~ Page 10 of 15 Form 3051 1/01 16. Governing Law;-Severahility; Rules of Construction. This Security Instrnment shall bi governed by federal law and the law of the jurisdiction in which tile Property is located. All rights and obligations contained in th!s' Security Instrmnent are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or tile Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrmnent: (a) words of the nmsculiue gender shall mean and include corresponding neuter words,ct words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17.' Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrnment. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in tltis Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent, of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender nmy require itmnediate payment in full of all sums secured by this Security htstmment. However, tiffs option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from file date file notice is given in accordance with Section 15 within which Borrower musr pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to file expiration of this period, Lender nmy invoke any remedies pernfitted by riffs Security Instrument without 5urther notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrumem; (b) such other period as Applicable Law might specify for the ternfination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expc. nses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fe~s, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay file sums secured by this Security Instrument, shall continue unchanged. Lender Ill,ay require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided 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 Instrument and obligations secured hereby shall re~nain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and fllis Security Instrument aid performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, tile address to which payments should be nmde and any other information RESPA i~-6A(WY) (ooo6).o~ DDS-WY~ Initiala~ pa~o~ot~a Form 3051 1/01 requires in connection with ai~n0tice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer 0~er than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with. fl~e Loan Servicer or be transferred to a successor Loan Servicer and are not assmned by tile Note purchase,.r unless otherwise provided by the Note purchaser. Neither Borrower nor I~ender may connnence, join, or be joined to any jt~dicial action (as either an individual litigant or the me,tuber of a class) that arises from the other party's actions pursuant to this Security Instrument or that al}eges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument,~ until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasomable period after the giving of such notice to take corrective action. If Applicable Law provides a t!ime period which must elapse betbre certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given tC Borrower pursuant to Section 22 and the notice of acceleration given to Bon'ower pursuant to Section 18 shall be deemed to satisfy the notice and opportmfity to 'take corrective action provisions of this Se~ti'ol~ 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasoline, kerosene, other flannnable or toxic petrolemn products, toxic pesticides and herbicides, volatile solvents, nmterials containing asbestos or fornmldehyde, and radioactive materials; (b) "Environmental Law" lneans federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or em, iromnental protection; (c) "Environmental Clealmp" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Enviro~nnental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects file value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of snmll quantities of Hazardous Substances that are generally recognized to be appropriate to nornml residential uses and to nmintmmnce of file Property (including, but not linfited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, denmnd, lawsuit or other action by any goverm~ental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by file presence, use or release of a Hazardous Substance which adversely affects the value of file Property. If Borrower learns, or is notified by any governmental 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 accordalice with Enviromnental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. (~-6A(WY) ¢ooos).o~ DDS-WY~i Page 12 of 15 Form 3051 1101 720 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Reme'dies. 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 required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date Specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of ali sums secured by this Security Instrument without further demand anti 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. Lender shall publish the notice of sale, and the Property shall be sold iu the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrmnent. Borrower shall pay any recordation costs. Lender may charge Borrower a tee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is pernfitted under Applicable Law 24. Waivers. Borrower .releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. 11~-6A(WY) 1ooo51.o~ Pag. 13 o! 1s Initials~ DDS-WY5 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security. Instrument and in any ~der executed by Borrower and recorded with it. Witnesses: (Seal) -Borrower CONNIE DUMMER (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Bo~ower -Bo~ower I,~.~J~J~6A(WY) Iooo51.ot Page 14 of 15 Form 3051 1/01 DD$-WY$ The tbregoing instrument was acknowledged before me fifis ~ t~,~.~ d-c County ss: My Commission Expires: ii~-6A{WY) {ooo6}.o] Pa~. 16 of 16 Initials.' ,~~~ DDS-WY6 Form 3051 1/01 Legal Description A portion of Lots 11 and 12 of Block 1 of the Sunset Subdivision to the Town of Kemmerer, Lincoln County, Wyoming more particularly described as follows: BEGINNING at the Northeast Corner of said Lot 11 and running thence S 26034, E, along the rear lot lines of said Lots 11 and 12 a distance of 71.95 feet; thence S 42°15' W, 82.98 feet; thence Northwest, along a curve to the left a radius of which is 50 feet, a distance of 41.45 feet through a central angle of 47°30'; thence N 5°15' W, 78.82 feet to a point on the Northwest line of said Lot 11; thence N 63026, E, 77.17 feet along the Northwest line of said Lot 11 to the POINT OF BEGINNING. 724 ADJUSTABLE RATE RIDER (LIBOR Six-Month Index (As Published In The Wall Street Journal) - Rate Caps) Loan Number: 1000168184 IvIIN: 100014410001681843 THIS ADJUSTABLE RATE RIDER is ~nade this 24th day of May. 2004 , and is incorporated into and shall be'deemed to ainend and supple~nent the Mortgage, Deed of Trust, or Security Deed (the "Security hkstmment") of the same date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to MERITAGE MORTGAGE CORPORATION, AN OREGON CORPORATION ("Lender") of the sa~ne date located at: and covering the property described in the Security Instrument and 404 UPPER SUNSET KEMMERER, WY 83101 [Prope~y Addressl THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROV~JER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the coveuants and agreements ~nade in the Security Instrument, Borrower and Len~ler further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 7. 375 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of June, 2006 and on that day every 6tk month thereafter. Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER-LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL) -Sin gle Family-Fannie Mae Uniform Instrument (~838R (0006) Form 3138 1/~1~ Page 1 of 4 Initials: ~ VMP MORT ^ E FOR S- DDS M38 ~_~ 725 CB) The Index Beginning wifl~ the first Change Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for six monfll U.S. dollar-denominated deposits i,1 file London market ("LIBOR"), as published in ~e Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding file ,nonth i,l which file Change Date occurs is called the "Curre,~t Index. If the Index is no longer available, fl~e Note Holder will choose a new index that is based upon comparable inforn~atiml. Tb~ Note Holder will give me notice of fills choice. (C) Calculation of Chgnges Before each Change ~Date, fl~e Note ltolder will calculate my new interest rate by adding FIVE AND THREE QUARTERS ' percentage points ( 5. 750 %.) to the Current Index. The Note Holder will fl~en round the result of this addition to fl~e nearest one-eighfl~ of one percentage point (0.125%). Subject to the lirrdts stated in Section 4(D) below, this rounded amount will be my new interest rate uutil the new Change Date. The Note Holder will t~hen deternfine the amount of the monthly payment that would be sufficient to repay file unpaid principal th'at I am expected to owe at the Change Date in full on file Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be file new amount of my monthly pay~nent. (D) Limits on Interest!Rate Changes The interest rate 1 am required to pay at the first Change Date will not be greater than 10. 375 % or less than 7. 375 %. Thereafter, my ioterest rate will never be increased or decreased on any single Change Date by more than ONE AND ONE HALF percentage poi,its ( 1. 500 ~, ) from the rate of interest I have been paying for the preceding 6 monfl~s. My interest rate will never be greater than 14. 375 %, or less than 7.375 %. (E) Effective Date of Changes My new interest rate v3ill become effective on each Change Date. I will pay file amount of my new monfldy payment begimfing,on the first monfldy payment date after the Change Date until the amoma of my monfldy payment changes again. (Ir) Notice of Changes! The Note Holder will deliver or nmil to me a notice of any changes in my interest rate and the amoum of my monthly payment before fl~e effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regardidg file notice. i1~(~838R (0006) Page 2 of 4 DDS-M3B Initial's:~ Form 31311 1/01 B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to read as follows: Transfer of the f¥operty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Prcperty" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future da!e to a purchaser. If all or any part 6~f the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natvral person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender tnay require immediate payment in full of all stuns secured by this Security Instrmnent. However, this option shall not be exercised by Lender if such exercise is prot~ibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be subnfitted to Lender information required by Lender to evaluate the intended transferee as if a new 10an were being nmde to the transferee; and (b) Lender reasonably determines ~hat Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in tiffs Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender nmy charge a reasonable fee as a condition to Lender's c )nsent to the loan assumption. Leuder also nmy require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the pronfises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument mfless Lender releases Borrower in writing. If Lender exercises the option to require i~mnediate payment in full, Lender shall give Borrower notice of acceleration, The notice shall provide a period of not less than 30 days ~¥om the date the notice is g;ven in accordance with Sectiou 15 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 nmy invoke auy remedies pernfitted by this Security Instrument without further notice or demand on Borrower ~836R (0006) Page 3 of 4 [nJtials('~ DOS-M38 Form 3138 1/01 727 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covmmnts contained in this Adjustable Rate Rider. (Seal) ') (Seal) -Borrower -Uo~row~:r CONNIE DUMMER (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~838R (0006) DDS-M38 Page 4 of 4 Form 3138 1/01