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HomeMy WebLinkAbout899662After Receding Rems To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prepared By: SHEILA POUNDS 899662 RECEIVED · ,LINOOLN COUNTY CLERK Oh ,,,, . nook .. 831 [Space Above This Lh~e For Recording Dale] FAllfl04M [Escrow/Closing ~] MORTGAGE 0006352490405004 (Doc ID ~] DEF.INITIONS Words used in multiple sections of this docmnent are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the nsage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document which is dated t~Y 21, 2004 with all Ri ders to this document. (B) "Borrower" is VANCE S SCHWAB, AND KENNA L SCHWAB husband and wife '~ ~ ~ , together Borrower is the mortgagor under this Security Instrument (C) "Lender" is COUNTRYWIDE HOME LOAN~ INC. Lender is a CORPORATION organized and existing under the laws of NEC; YORK Lender's address is 4500 Park Granada, Calabasas, CA 91302-1613 Lender is tile mortgagee under this Security Instrument. (D) "Note" memos the promissory note signed by Borrower and dated HAY 21, Note states that Borrower owes Lender ONE HUNDRED SIXTY FOU~.' THOUSAND SEVEN HUNDRED and 00/100 2004 . The Dollars(U.S. $ 164,700.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt iu f~d] not later than JUNE 01, 202 (E) "Property" metros the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums duc under this Security Instrument, plus ,merest. WYOMING-SIngle Family-Fannie Ml~e/Freddie Mac UNIFORM INSTRUMENT Page 1 of 11 Initials: (~®-6(WY) (0005) CHL (08/00)(d) VMP MORTGAGE FORMS o (800)521-7291 1/01 CONV/VA * 2.3 9 9 1 * * 0 6 3 5 2 4 9 0 4 0 0 0 0 0 2 0 0 6 _ * DOC ID #: 0'006352490405004 (G) "Ride~'s" n~eans all Rider.. to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [--~ Adjustable Rate Rider ~ Condominium Rider 7-1Second Home Rider [---] Balloon Rider I---] Planned Unit Development Rider [--'] 1-4 Family Rider [--] VA Rider [--] Biweekly Payment Rider [--] Other(s) [specify] (H) "Applicable Law" meal, s all controlling applicable federal, state ,'md local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) ~[s well as all applicable final, non-appealable judicial opinions. (I) "Cmnmunity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners ~[ssociation or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse trausfers. (K) "Escrow Items" means those items that are described in Sectio, 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) lnisrepresentations of, or omismons as to, the wtlue and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan (N) "Periodic Payment" means the regularly scheduled amounl due for (i) principal and interest under the Note, plus (ii) any amounts undzr Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Seltlement 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 Ihis Security Iustrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (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 TFI~ PROPERTY This Security Instruinent secures to Lender: (i) 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 Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of R.e.c. ordin~ Jurisdiction] [Name of Recordin~ Jurisdiction] TWI LOT 7B OF THE T4~N CLIFF SUBDIVISION NO. 2, LINCOLN COUNTY, WYOMING AS DESCRIBED ON T~-E OFFICIAL PLAT THEREOF FILED APRIL 11, 1994 AS INSTRUMENT NO. 781258 Parcel ID Number: 12321813300070 924 ASPEN COURT, [Street/City] Wyoming 83110 ("Property Address"): [zip Code] AFTON which currently has the address of 11~}®-6(WY) (0005) CH t (08/00) Page 2 of ~ ~ Initials: Form 3051 1/01 DOC ID #: 0006352z190zt0500Zl TOGETHER WITH all the improvements now or hereafter erected on the property; and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instnnnent. All of the foregoing is referred to in this Security Instalment as the "Property." BORROWER COvENA!qTs that Borr0wer is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and thai the Property is unencumbered, except for encu~nbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. TH'iS SECUI~TY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variati~ons by jurisdiction to constitute a uniform security instrument covering real property, i UNIFOICM COVENANTS.. Borrower mid Lender covenant and agree as follows: 1. Payment of Principal.~ h)terest, Escrow Ite~ns, Prepaymen! Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under tile Note and this Security Instrument shall be made in U.S. currency. However, if ;my check or other instrument received by Lender as paytnent under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that ail)' or all subsequent payments due under the Note and this Security lnsirument be made .in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c).certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds il'ransfer. Payments are deemed received by Lender wheit received at the location desigmated in the Note or at such Other location as tnay be desig.hated by Lender iu accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan cra'rent. Lender may ac;cept any paymeut or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the fl~ture, but Lender is not obligated to apply such payments at the time such payments are accepted, if each Periodic Payment is applied as 'of its scheduled due date, then Lender ueed not pay interest on unapplied hinds. Lender may hold such.'unapplied fitnds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. if not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants ar'.d.agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except its otherwise described in lhis Section 2, all payments accepted and applied by Lender shall be applied in die following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment itl the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any otl~er amounts due under this Security Instrument, and theu to reduce tile principal balance of the Note. If Lender receives a payment from Borrower for ti de!inqueut Periodic Payment which includes a sufficient amount to pay ,any late charge due, the payment may be applied to the deliuquent payment and tile late charge. If more than one Periodic Payment is outstanding, Lender may apply imy payment received from Borrower to the repayment of the Periodic Payments if, mid to the extent that, each payment can be paid in fidl. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may 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 apl)licatiou of payments, insurance proceeds, or Miscelhmeous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amonnt, of the Periodic Payments. 3. Funds for Escrow Ite~ns, Borrower shall pay to Lender on the day Periodic Payments are due under the Note, nntil the Note is paid'in full; a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessmeuts and other items which can attain priority over this Security lnstrnment as a lien or encumbrance on the Property;' (b) leasehold payments or ground rents ou 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 sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provision,,; of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be ~scrowed by Borrower, and such titles, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower st,all pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the .Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In die event of such waiver, Borrower shall pity directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender rind, if Lender requires, shall furnish to Lender receipts evidencing (~®-6(WY) (o005) CHL (08/~lO) Page 3 of 11 , Form 3051 1/01 DOC ID #: 0006352490405004 such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall fm all purposes be deemed to be a covcnanl and agreement contained in tilts 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 watver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise ~ts 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 g!ven in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and iii 'such amounts, that are then required under this Section 3 Lender may, at any time, collect and hold Funds in an amonnl (a) sufficient to permit Lender to apply the Funds a~ the time specified under RESPA, and (b) not Jo exceed tile maximum amount a lender can require under RESPA. Lender shall esdmate the amount of Funds 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 i~ an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall appl? the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, anmtally analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Bon'ower interest on the Funds and Applicable Law permits Lender to make such a charge, Unless an agreemenl is made in wridng or Applicable Law requires interest to be paid on tile Funds, Lender shall nol be required to pay Borrower any interest or earnings oll the Funds. Borrower and Lender can agree in writing, however, dmt interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an animal accounting of the Funds as required by RESPA. If there is a surplus of Fur, ds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess fimds in accordance with RESPA. If there is a shortage of Funds held m 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 m no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make np tile deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Insu'ument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priomy over this Security Instrument unless Borrower: (a) agrees in writing to tile payment of the obligation secured by tile lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien m good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to preveut the enforcement of the lien while those proceedings are pending, bul only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of tile Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower Shall satisfy tile lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep tile improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the mnounts (including deductible levels) and for tile periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan The insurance carrier providir..g the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which rigllt shall not be exercised unreasonably.-Lender may reqmre Borrower to pay, m connection with lhis Loan, either: (a) a one-time charge for flood zone dctenninauon, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for Ire payment of any fees imposed by tile Federal Emergency Management Agency in connection with the review of any flood zone dctermiuation resulting from an objection by Borrower: if Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particul~ type or amount of coverage.-Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or ~®-6(WY) (0005) CHL (08/00) Page 4 of 11 Initials:, Form 3051~1/01 DOC ID #: 0006352490405004 liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by ttiis Security Instrument. These amounts shall bear interest at tile Note rate from the date of disbursement and,sliall be payable, with such interest, upon notice from Lender to Borrower requesting pay~neut. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage chmse, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies aud renewal certificates. If Lender requires, Borrower shal'l promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage~ not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall n,'une Lender as mortgagee and/or as an additio,nal loss payee. In tile eve~nt of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not m~de promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not'the underlying insurance was required by Lender, shall be applied to restoration or repa!ir Of the Property, il:' 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 insurance proceeds until Legder has had an opportunity to inspect such Property to ensure tile work has been completed to Lender's sa!!isfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration ill a single 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 on such insurance procee, ds, Lender shall not be required to pay Borrower any interest or earnings 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 economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security fitstrument, whether or not then title, with tile excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons th~ Property, Lender may file, negotiate aud settle any available iusurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given: Irt either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofiir as such rights are applicable to the coverage of the Property. Lender may nsc the insurance proceeds either tO repair or restore the Property or to pay amonnts unpaid under the Note or this Seem'try 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 principal residence for at least ode ye~ after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's dontrol. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, danmge 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 coudition. Unless it is determined pursutmt to Section 5 that repair or restormli6u is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid f~rther deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or t~he taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if I*ender has released proceeds for snch purposes. Lender may disburse proceeds for the rep,firs and restoration in a single Payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Bo,'roWer'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 ma5 inspect the interior 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 defindt il', during tile 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, inisleading, or inaccurate inforlnation or statements to Lender (or failed to provide Lender with material infbrmation) in connection with the Loan. Material representations include, but are not limited to, representations concerning BorrOwer's occupancy of the Property as Borrower's principal residence. I~®-6(WY) (ooos) CH L (08/00) Page 5 of 11 Initials: Form 3051 1/01 DOC ID #: 0006352490405004 9. Protection of Lender'shlterest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the c6venants and agreements contained in this Security Insmnnent, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights nnder this Security Instrument (such as 'a proceeding in bankruptcy, probate, for condenmation or forfeiture, for enforcement of a lien which i, inay attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do mid pay for whatever is reasonable or appropriate to prolect Lender's interest in the Property and rights under this Security Instrument, including protectiug and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, bu~ are not limited to: (a).paying any sums secured by a lien which has priority over this Security Instnnnent; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or.,rights under this Security Instrument, including i[s secured position in a' bankruptcy proceeding. Securin~ the Property includes, 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 danger~)us conditions, and have utilities tt,rued on or off. Although Lender may take action under this Section 9, Le~der does not have to do so mid is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender 'under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. Th.e~se amounts shall bear interest at tile Note rate from the date of disbursement and shall be payable, with such ?nterest, 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 unless Lender agrees to the merger in writing.' 10. Mortgage Insurance.' If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage lusurance itl effect. If. for any reason, the Mortgage Insurance coverage ?equired by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equi'~alent Mortgage insurance coverage is not available, Borrower shall continue to pay to Lender the amount of ire 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-refnndable, notwithstanding the fact that the Loan is ultimately paid in full, and 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 for the period that Lender requires) provided by an insurer selected by Lender agaiu becomes available, is obtained, and Lender requires separately designated payments toward the 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 tile premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until the Lender's reqhirement for Mortgage h~sorance ends in accordance with any written agreement between Borrower and Lender providing for such terminatiou or nntil termination is required by Applicable Law. Nothing in this Section 16 affects Borrower's obligation to pay iuterest at the rate provided in the Note. Mortgage Insurance 'reimburses Lender (or any entity that purchases the Note) fur certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is ,lot a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on ;df such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are 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 may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized, as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the m0r(gage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a sha}e of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Ftmher: (a) Any such agreementslwill not al'feet the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other term 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. Initials: (~®-6(WY) (00o5) CHL (08100) Paoa 6 of t l Form 3051 1/01 837 DOC ID #: 0006352490405004 (b) Any such agreements will not afl%ct the rights Borrower ]las - il' any - with respect to thc Mortgage Insurance under the?Homeowners Protection Act of 1998 or any oilier law. These rights may. include the right to receive cbrtain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance pre~nimns~ that were unearned at the time ol' such cancellation or termination. 11. Assignment of Miscfillaueous Proceeds; Forl'eiture. All Miscclhmeous Proceeds arc hereby assigned to anti shall be paid toi'iI~ender. If the Property is damaged,~ such Miscellm~eous Proceeds shall be applied to restoration or repair of the Property, if the restoration or r~pair is ecouomically feasible and Lender's security is not lessened. During such repair aud restoration period, L.ender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect ,~uch Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a .,.'eries of progress payments as the work is completed. Unless an agreemeut is. made in writing or Applicable 'LCw requires interest to be paid ou such Miscellaneous Proceeds, Lender shall no.t be required to pay Borrower !any interest or earnings on such Miscellaneous Proceeds. If tide restoration or repair is not economically feasible or Lender's security would be lessened, 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. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total takifig, 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. Iu the event of a partial taking, destruction, or loss in value of the Property in which'the fair market value of the Property immediately before the partial taking, destruction, or loss in wdue is equal to or greater than the mnonnt of tile sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, Unless Borro~ver and Lender otherwise agree iu writing, tide sums secured by this Security Instrument shall be reduced by tthe amount of the Miscelhmeous Proceeds mnltiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss 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 taking, destruction, or loss iu value of the Property in which the fair market value of the Property immediately before the p,'u:tial taking, destruction, or loss in value is less than the amonnt of the sums secured immediately before the p,'u'tial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in wridng, the Miscellaneous Proceeds shall be applied to the sinus secured by this Security Instrument wheti~er or.not the sums are then due. if the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (~s defined in tide next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 d!tys after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of Ihe Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" themes tide third party that owes Borrower Miscellaneous Proceeds or the.party against whom Borrower has a right of action in regard to'Miscellaneous Proceeds. Borrower shall he in del:null if any action or proceeding, whether civil or crinfinal, is begun that, in Lender's judgment, could resul~t in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismi, ssed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Tim proceeds of any award or chfim for damages that are attributable t!a the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in tile order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender NOt a Waiver, Extension of tide time for payment or modification of aiuortization o£ the sums secured by dfis Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or'any Successors in Interest of Bon'ower. Lender shall not be required to commence proceedings against mty Successor in Interest of Borrower or to retiree to extend time for payment or otherwise modify mnortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts ]ess than the amount then due, shall not be a waiver of or preclude tile exercise of any right or remedy. 13. Joint and Several Li.ability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations m~d 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 (~®-6(WY) (0005) CHL (08/OO) Paga 7 of 11 Form 3051 l/Ol DOC ID #: 0006352490405004 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 the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower c,'m agree to extend, modify, forbear or make any accommodations with regard to the terms of this Secuhty Instrument or the Note without the co-signer's consent. Subject to the provisions 0f Section 18, any Successor in luterest of Borrower who assumes Borrower's obligations under this Security Instrument in wri ting, and is approved by Lender, shall obtain all of Borrower's rights and benefits tinder this Seci~rity Instrument. Borrower shall not be released from Borrower's obligations and li ability under this Security':instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instru~nent shall biud (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's iuterest in the Property and rights under this Security Instrument, including, h~t not limited to, attorueys' fees, property inspection and yah,alton fees. In regard to any other fees, tile absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construec~ as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a'law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan ch'arges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any shch loan charge shall be reduced by tile mnonnt necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this retired by reducing the principal owed under the Note or by makiug a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without a'ny prepaymeut charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such retired made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in counection with this Security Instrument must be in writing. Any notice to B6rrower in connection with this Security Instrumeut shall be deemed to have been given to Borrower when'mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address uuless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at ,'my one time. Any notice to Lender shall be giveu 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 m connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also: required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained fn this Security Instrument are subject to any requiremeuts 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 the Note conflicts with Applicable Law, such couflict shall not affect other provisions of th~s Security Instrument or the Note which can be given effect without the conflicting provision. ~ As used in this Securi~. histrument: (a) words of the masculine gender shall mean and incldde corresponding neuter words or words of the feminine gender; (b) words in the singular shall meanand 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 Instrument. 18. Transfer of file Property or a Beneficial Interest in Borrower, As used in this Section 18, "Interest in the Property" means any legal or beneficial interest m the Property, including, but not limited to, those beneficial interests transforr~d in a bond for deed, contract for deed, iustallment sales contract or escrow agreement, the intent of which its the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Prop¢:rty or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. ttowever, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender' shall give Borrower notice of acceleration. Tile uotice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower' fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. ~ Inillals:~ ~ (~®-6(WY) (0005) CHL (08/00) Page 8 of 11 Form 3051 1/01 DOC ZD ~: 0006352A90405004 1.9. Borrower's Right to kelnstate Al'ter Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have efiforcement 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 Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c)entry of a judgment enforcing this Security Iustnlment. 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 tiny default of tiny other covenants or agreements; (c) pays all expenses incurred in enforcing this Ser:ur[ty Instrumeut, including, but not limited to, reasonable attorneys' fees, Property inspection and vtduati.sn !fees, and other fees incurred for the purpose of protecting Lender's interest in the Property aud rights tinder this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender'.~ interest in the Property and rights under tilts Security Instrument, and Borrower's obligatioo tO pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following fornts, 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 upou an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reiustatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate 5hall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change' o[ Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Securiiy instrument) can be sold one or more times without prior notice to Borrower.' A sale might result in a change in tim entity(known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Se~udity Instrument and performs other mortgage loan servicing obligations tinder 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 then is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name arid address of the new Loan Servicer, the address to which payments should be ma~i'le a~d any other infomtation RESPA requires in connection with a notice of transfer of servicing. If the Not'e is sold and thereafter the Loau is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that ,arises Rom the other party's actions pursuant to this Security Iustmment or that alleges 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 reasonable period after the g!ving of such notice to take con'ective action. If Applicable Law provides a time period which must elapse befor.~ certain action can be taken, that time period will be deemed to be reasonable for proposes of this paragraph. :The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice C~f acceleratiou given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportuni!y to take corrective action provisions of this Section 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 Environmental Law and ttie following substances: gasoline, kerosene,~ other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials :containing asbestos or fortmfldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environtnental Cleanup". includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, Contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause: or' permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything 'affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses mid to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsui~ or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not lilmited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) [{ny condition caused by the presence, use or release of a Hazardous Substance which adversely ~fects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any remowd or other remediation of any Hazardous Substance affecting the Property is necess~WY, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environme~3tjal Cleanup. Initials: (~®-6(WY) (0005) GIlL (08/00) Page 9 of 11 Form 3051 l/Ol .... 840 DOc ID #: 0006352490405004 NON-UNIFORM COVENANTS. Borrower alld Lender fill'tiler 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 agree~nent in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides olherwise). The notice shall speciry: (a). the default; (b) the action required to cure the del"ault; (c) a date, not less than 30 days ['rom the date the notice is given to Borrower, by which the del'ault must be cured; and (d) that failure to cure the del'ault on or berore the date specil~ed in the notice ~nay result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall furlher in/'onn Borrower o1' the right to reinstate after acceleration and file right to bring a court action to assert the non-existence el' a default or any ofl~er defense of Borrower to acceleration and sale. 1t' the del'anlt is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all stuns secured by tiffs Security Instrmnent without lhrther demand and lnay invoke the power el' sale and any off, er remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing fl~e remedies provided in this Section 22, inclnding, but not li~nited to, reasonable attorneys' fees and costs of tire 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, it' different, in accordance with Applicable Law. Lender. shall give notice of the sale to Borrower in lhe manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to ali expenses el' the sale, including, but not lisnited to, reasonable attorneys lees; (b) to all sums secured by this Security Instrmnent; aud (c) any excess to file person or persons legally entitled to it. 23. Release. Upon payme~al of all sums secured by this Security Instrument. Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instmmen:_, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Bon'ower releases and waives all rigtlts under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument laid in any Rider executed by Borrower and recorded wi th it. Witnesses: (Seal) VANCE S. SCHWAB /~ -Borrower (Seal) (Seal) orrower (~)®-6(WY) (ooos) CHL (08/00) Page 10 o! 11 Form 3051 1/01 84]. STATE OF WYOMING, The foregoing instrument was acknowledged before me this by Vance S. Schwab and Kenna L. Schwab DOC ID #: 0006352490405004 Lincoln County ss: 21st day of May, 2004 '~- My Commission Expires: FEbruary 2, 2006 NOTARY PUtlUG Notary Public (~)®-6(WY) (ooos) CHL (08/00) Page11 of 11 Initials: Form 3051 1/01