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HomeMy WebLinkAbout899729After recording please return to: ~LoanCity. cc~ ~Company Name] [.Name of Natural Person] :5671 Santa Teresa Boulevard, Suite [Street Address] San Jose, CA 95123 [City, State Zip Code] 100 8997'> RECEIVED LIN ,",",, ,, ,'.-,,.-,~,,, COU~'iTY CLERK BOOK ~ t~ 2PRP;~(Jh 1 01 [Space Above This Line For Recording Data] HTN: 10005831_0000181562 MORTGAGE (Secondary Lien) DEFINITIONS Words used in multiple sections of this document are defined beloxv and other words are defined in Sections 3, 10, 12, 17, 19, and 20. Cedain rules regarding the usage of words used in this doculnent are also provided in Section 15. (A) "Security Instruinent" means this document, which is dated together with all Riders to this document. May 27, 2004 (B) "Borrower" is JOSEPH M. LARRAZOLO AND BARBARA A. I__&RtL~OI~ husband and wife Borrower is the mortga~ ]is Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the beneficiary under this Security Instrument. MERS ts organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flifit, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender"is LoanCity.com, a California Co'ration Lenderisa corporation California Boulevard, Suite 100, Lender'saddressis San Jose, CA 95123 organizedandexistingunderthelawsof 5671 Santa Teresa (E) "Note"meansthepronfissorynotesi~edby Bon'o~veranddated Loan No: W01763133 May 27, 2004 Initia:s: ~' .~. , Wyoming Mortgage-Single Family- SecondaD, Lien --TILE COblPLIANCE SOURCE, INC.-- www,complia nc¢$ource.com Page 1 of :12 I jI .,,~RS~ Form 3801 01/01 Modified [,y/jF4}e Compliance Source, Inc." 14102%%n{ 0M0! t/ © 2001 T~e Compliance Source Inc The Note states that Borrower owes Lender ten thousand and NO/lOOths Dollars (U.S. $ 10 f 000. O0 plus inte,'est. Borro~ver bas promised to pay this debt in regular Periodic Payments and to pay tile debt it] full not later than ,June 1, 2019 (F) "Property" means the property tbat is described below under the heading "Transfer 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, if allowed under Applicable Law, and all sums due under this Security Instrument, plus interest. (H) "Riders" ineans all Riders to this Security Instrument that are executed by Borrower. The following Riders m'e to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Condominimn Rider [] Second Home Rider [] Balloon Rider [] Plmmed Unit Development Rider [] Biweekly Payment Rider [] Home hnprovement Rider [] Revocable Trust Rider [] Other(s) [specie] (I) "Applicable Law" mean~'; all controlling applicable federal, state and local statutes, regulations, ordinances and administrative roles and orders (that have the effect of law) as well as all applicable final, non-appealable jndicial opinions. (J) "Community Association Dues, Fees, and Assessmeuts" means all dues, fees, assessments and other charges that are imposed on Borroxver or the Property by a condominium association, homeowners association or similar organization. (K) "Electrouic Funds Transfer" means any transfer of funds, other than a transaction originated by check, drag, or similar paper instrument, which is initiated through an electronic terminal, telephonic instnlment, computer, or magnetic tape so as to order, ini;truct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, poiint-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and auto~nated clearinghouse transfers. (L) "Escrow Items" means those items 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 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) mi grepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" ineans 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, plns (ii) any amounts nnder Section 3 of this Security Instrument. (P) "RESPA" ineans the Feal Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'om time to time, or any additional or successor legislatior or regulation that governs the same subject matter. ~s used in this Security Loan No: W01763133 Wyoming Morlgage-Single Family- Secondary Lien //~'I~['g"~}dified Form 3801 01/01 --TILE COMPLIANCE SOURCE, INC.-- Page 2 of 12 Modified~By/WFhe Compliance Source, lnc." 14102%VY 03/0l Instrument, "RESPA" refers to a]!l requirements and restrictions that are imposed in regard to a "federally related moagage loan" eyen if tim Loan does not quali~ as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest c.,f Borrower" means any party that has taken title to the Property, whether or not that party bas assumed Borrower's obligations under the Note and/or this Security Instrulnent. TRANSFER OF RIGHTS IN TilE PROPERTY This Security Instmmentsecures to Lender: (i) the repayment of the Loan,; and all renewals, extensions and modifications of the Note; and (ill) the perforrnance of Borrower's covenants and agreements under tbis Security Instrmnent and the Note. For this purpose, Borrower does hereby mortgage, gl'ant: 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 propprty located in the County' o f LINCOLN - [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LEGAL DESCRIPTION ARTACHED HERETO AND MADE A PART HEREO?. which currently has the address of 188 EAST 9TH AVENUE [Street] AF2DN , Wyoming 83110 ("Propelly Address"): [City] [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appm-tenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument All of the foregoing is referred to in this Security Instrument as the "Property." Borrower uuderstands 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 for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Propertyl and to take. any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Bon'ower is lawfidly seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that thc Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encmnbrances of record, i THIS SECURITY INS~I'RUMENT combines uniforln covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. Loan No: W01763133 Wyoming Mortgage-Single Family- Seco~ida~3, Lien --TILE COMPLIANCE SOURCE, INC.-- www.complia nccsource.com Page 3 of 12 I llllllll,lllllIIIIIlllllllIIIllll[l[l[lllllll[llllllllill[[[lll' //~'l~J{SModilied Form 3801 01/01 Modified}/By ~The Compliance Source, I.e." 14102WY 03/0l ~ 2001, The Compliance Source, inc. UN~FOR~ cOVENANTS. Borrower and Lender covenaut and ~r~= 1. Payment of Principal, Interest aud Other Charges. Boixower shall pay when due the principal of, and interest on, the debt evidenced~by the Note and if allowable under Applicable Law, any prepa~nent charges and late charges due nnder the Note. ?a~nents due under the Note and this Securi~ Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be rmde ~n one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) cmiified check, ba~ check, treasurer's check or cashier's check, provided any such check is &a~ upon an iustitution whose deposits are insured by a federal agency, ins~mentality, or entity; or (d) Electronic Funds Transfer. 2. Application of Payraents or Proceeds. Payments are deemed received by Lender when received at the location desi~ated in the Note or at such other location as may be designated by Lender m accordance with the notice provisions in Section 14 or in such manner or location as required nnder Applicable Law. Except as othe~ise described in this Section 2, and as permiaed under Applicable Law, all payments accepted and applied by Lender shall be applied in the foll'owing order of priority: (a) interest due under tlr. e Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due tinder this Secnri~ Instrumeut, and then to rednce the principal balance of the Note. If Lender receives a payn,ent from Bon'ower for a delinquent Periodic Payment which includes a sufficient amounl to pay any late charge due, the payment may be applied to the delinqnent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received fi'om Bogower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in ~11. To the extent that any excess exists after the payment is applied to the fi~ll payment of one or more ?eriodic Pa~neuts, such excess may be applied to any late charges due. To the extent permi/le~t by Applicable Law, volunta~ prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to pnncipal due under the Noie shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds lbr Escrow Ilems. Subject to Applicable Law, Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a snm (the "Funds") to provide for pay~nent of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents ou the PropmW, if any; (c) premiums for any and all insurance requked by Lender under Section 5; and (d) Mollgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Moaga. ge Insnrance premiums. These ite~ns are called "Escrow Itelns." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly fiirnish to Lender all notices of amonnts to be paid under this Section. Bon'ower sh:~ll pay Lender the Funds for Escrow Items unless Lender waives BmTower'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 tnay only be it~ writing. In the event of such waiver, Borrower shall pay directly, when and xvhere payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall ~rnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to lnake such payments and to provide receipts shall for all pnr2oses be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 8. If Borrower is obligated to pay Escrow Items directly; pufsuant to a xvaivzr, and Borrower fails to pay the amount due fo: an Escrow Item, Lender may exercise its rights under Section 8 and pay such amount and Bogower shall then be obligated under Section 8 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 iu accordance with Section 14 and, upou such revocation, Bon'ower shall pay to Lender all Funds, and in such amounts, that are then reqnired under this Section 3 ~ No: W01763133 Initi~~ %%ryOlll[llg ~'[ol'tgage-g[ngle Family- Se(ollt}~l-y Liell ~ ~'Iodilled FOI'III 3801 01/01 THE COMPLIANCE SOURCE. INC. Page 4 of 12 Lender may, at any tim~ collect and hold Funds in an amount (~) sufficient to p~mit L~nder to apply th~ Funds at the time specified underSRESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate tl~e amount of Funds due on the basis of cmTent t:ata and reasonable estimates of expenditures of ~ture Escrow Itmps or otherwise in accordance with Applicable Law. The Funds shall be held i) an insti~ltion whose deposits are insured by a federal kgency, instrumentality, or entiW (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Fun~ts to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Bon'ower for holding and applying tbe Funds, ammally aualyzing the escrow account, or veri~ing tbe Escrow Items, unless Lender pays Bon'ower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreem¢nt is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pa'? Bmxower any interes{ or earnings on the Funds. ,Borrower and Lender can a~ee in writing, ho~vever, tliat interest'shall be paid on the Funds. Lender shall give t~ Bon'ower, without charge, an ammal accounting of the Funds as:.requi[ed by RESPA. If there is a surplus of Funds held in escrow, as defined under ~SPA, Lender shall account to Bo~ower for the excess fimds in accordance with ~SPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall noti~ Bof{-0wer as required by RESPA, and Borrower shall pay to Lender the amount necessa~ to make up the sho~1age in accordance with ~SPA, but in no more than 12 monthly payments. If there is a deficieucy of Funds held in escrow, as defined under RESPA, Lender shall noti~ Bmxower as required by RESPA, and Bon'ower shall pay to Lender the amouut necessmy to make up thc deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon pa~nent in fidl of all sums secured by this Security Instrument, Lender shall promptly rehnd to Bon'ower any Funds held by Lender. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional lender. If under Section 21 the ProperW is sold or the PropmW is othe~vise acquired by Lender, Lender sliall apply no later than immediately prior to the sale of the Propm~ or its acquisition by Lender, any Funds held by Lender at th~ time of application as a credit against the sums secured by this Security Instrument. 4. Charges; Liens. B0n'o~ver shall perform all of Borrower's obligations under any mortgage, deed of trust, or other securiW aweement'with a lien Which has priority over this SecuriW }Tnstmment. Borrower shall pay when due, all taxes, assessments., charges, fines, and impositions a~ributable to the Prope~ which can attain priority over this Security Instrument, leasehold payments or ground renls on the Propmiy, if any, and Community Association Dues, Fees, and Assejssments, if any. 'To the extent that these items are Escrow Items, Bo~ower shall pay them in the manner provided i}n Section 3. Bo~xower shall promptly ~discharge any lien other than a lien disclosed t9 Lender in Bo~ower's application or in any title repm~ Lender obtained which has priority over this Security Instrument unless Borrower: (a) a~ees in writing to the papnent of the obl~gation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such a~'eement;. (b) contests the lien in good hith by, or detknds against enforcement of the lien in, legal proceedings which m Lender's opinion operate to prevent the ehfm~cement of the lien while those proceedings are pending, but onlyuntil such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfacto~ to Lender s*ubordinating the lien to this SecuriW Instrument. } Lender may reqnire Borrower to pay a one-time charge for a real estate tax verification anWor reporting se~ice used by Lender in connection with tiffs Loan if allowed under Applicable Law. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the ProperW insured against loss by fire, hazards included within the term "extended c{?verage;" and any other hazards including, but not limited to, em-thquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender reqnires, k~at Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance can'ier providing the insurance Shall be ::hosen by Borrower subject to Lender's right to disapprove Bon'ower's choice, which right shall not be exercised m~easonably. Lender may require Borrower to pay, in commction with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking setMces; or (b) a one-time Wyoming Mortgage-Single Family- Secondary Lien . ~'I~ied Form 3801 01/01 ~THE COMPLI~CE SOURCE, INC.~ : Page 5 of 12 Modified By ~he Compfiance Source, Inc." 14102~ 03102 charge for flood zone determination and certification services and snbsequent charges each time remappings or Similar changes occur wfiich reasimably might affect such determination or certification. Borrower sball 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 determination resulting fi'om 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. Leuder 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 Bmxower, Borrower's equity in the Property, or the conte, nts Of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previqusly in effect. Borrower acknoxvledges that the cost of the insurance coverage so obtained might significantly exctCed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Seqtion 5, shall be added to the unpaid balance of the loan and interest shall accrue at the Note rate, fi'om the time it wa5 iadded to the unpaid balance until it is paid in fifll. Subject to Applicable La~.~, all insurance policies required by Lender aud renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Bon'ower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Bon'ower obtains any :brm of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Bon'ower shall give prompt notice to the insurance cmXier and Lender. Lender may make proof, of loss if not made promptly by Bon'ower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or nor the underlying insurance was required by Lende :, shall be applied to restoration or repair of tbe Property, if the re~:toration 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 ~nsurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as tbe work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any intmest or earnings on such proceeds. Fees for public adjusters, or other third pm-ties, 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 ecor~omically feasible or Lender's security would be lessened, the insurance proceeds shall be applied tO the sums secured by this Security instrmnent, whether or not th~n due, with tbe excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided roi' in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice fi'mn Lender that the insurance can'ier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin When the notice is given. In either event, or if Lender acquires the Properly under Section 21 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount no': to exceed the amounts unpaid under the Note or this Security Ins::rument, and (b) any other of Borrower's rights (o:her than the right to any retired of uuearned prelniums paid by Bo~xower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Iustrument, whether or not then due. 6. Prese~wation, Mainten.'mce and Protection of the Property; Insgections. Borrower shall not destroy, damage or imPah' thE Property, allow the Property to deteriorate or cmmnit Waste on the Property. Whether or not BmTower is residing in the~Property, Borrower shall maintain the Propen'y in order to prevent tbe Property fi'om deteriorating or decreasing ih value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid . further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring :he Property only if Lender has Loan No: W01763133 . Initiai~-/ Wyoming Mortgage-Single Family- Seconda,'y Lie,, ://l~'~odified For,,, 380! 0U01 --THE COMPLIANCE SOURCE, INC.-- i Page 6 of ] 2 Modified I ,l%.~The Compliance Source, h~c." 14102WY 03/02 released proceeds for such purp6,ses. Lender may disburse proceeds for the repairs and restoration in a single payment or in aseries of progress ipayments as the work is completed. If the insurance or condemnation proceeds m'e not sufficient to repair or restore tilde Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. .; . Lender or its agent may ~hake reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lendkr shall give Bon:ower notice at the time of or prior to such an interior inspection specifying such reasonable canse. ' 7. Borrower's Loan Application. Borrower shall be in defimlt if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate informafion or statements to Lender (or failed to provide Lender wifl~ material information) in connection with the Loan. Material representations:include, but are not limited to, representations concerning Bon'ower's occupancy of the Property as Borrower's principal residence. 8. Protection of Lender's Interest in the Property and Rights Unde' this Security Instrument. if (a) Borrower fails to perform the covenants and agreements contained in this Securi!y Instrument, (b) there is a legal proceeding tliat might significantly affect Lender's interest in the Property and/or rights under this Security Instrnment (such as a proceeding in bankruptcy, probate, for condemnation or forfifitnre, for enforcement of a lien which has or may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender mhy do and pay'for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protectL~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 or may attain priority over this Security Instrument; (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 its !.secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Prol~erty to make repairs, change locks, replace or board up doors and windoxvs, drain Water from pipes, ehminate btnldii~g or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action, under this Section 8, Lender does not have to do so and is not under any duty or obligation to do so. It is agree~t that Lender incnrs no liability for not taking any or all actions anthorized under this Section 8. Any amounts disbursed l~y Lender under this Section 8 shall become additional debt of Borrower secured by this Security Instrument if alloxved under Applicable Law. These amounts shall bear interest at the Note rate from the date of disbursement a!~d shall be payable, xvith such interest, Upon notice fi-om Lender to Bon'ower requesting payment. : If this Security Instrumem is on a leasehold, Borrower shall comply with all the provisions of the lease. If Bon'ower acqnires fee title to the l~roperty, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. ~ 9. Mortgage Insurance. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a pm~y to the Mortgage Insurance. '~ If Lender required Mor::gage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mo~Xgage Insurance in effect. 10. Assignment of Miscellaneous Proceeds; Forfeitm'e. The Miscellaneous Proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in:lieu of condemnation, are hereby assigned and sh;all be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Security Instrument. If the Properly is datnaged, such Miscellaneous Proceeds shall be applic~ 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 Miscellaneous Proceeds until Lender has had an oppo~l:unity to inspect such PrOperly to ensnre the work has been completed to Lender's satisfaction, provided Ix)an No: W01763133 ~ Initia Wyoming Mortgage-Single Family- Secondary Lie, / Form 3801 01/01 --TIRE COMPLIANCE SOURCE, INC.-- Moam~,~.~T~,t Cmnpllance So,,rce, ]nc." 14102~%~ 03/02 Page 7 of 12 II 2001. Th~ Compliance Sot~'cc. Inc. that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of prog?ss payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay .i Borrower any interest or earnings 0n such Miscellaneous Proceeds. If the restoratiOn or repair is not economically feasible or Lender's security woul~ be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether )r not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the or(i. er provided for in Section 2. If the Property is abandon:~d by Borrower, or if, after notice by Lender to B.~.rrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the da~e the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repak of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third pan'y that owes Borrower Miscellaneous Proceeds or the pmly against whom Borrower has a rigli[ of action in regard to Miscellaneous Proceeds. Bon'ower shall be in delhult if any action or proceeding, whether civil or crinfinal, is begun that, in Lender's judgment, could result in ;forfeiture of the Property or other material impah-ment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cnre such a tie fault and, if acceleration has occurred, reinstate as provided ins ection 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material imptlh'ment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair ofihe Property shall be applied in the order provided for in Section 2. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or lnodification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrc,wer shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to colnmence proceedings against any Successor in Interest of Borrower or to.:refi~se to extend time for payment or otherwise modify amortization 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 L,:nder in exercising any right or remedy including, without limitation, Lender's acceptance of payments fi-om third persons, entities .or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a wai'ver of or preclude the exercise of any right or remedy. 12. Joint and Several L'iability; Co-signers; Successors and Assigns Bound. Bon'ower covenants and agrees that Borrower's obligations .and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument. but does not execute the Note (a "co-signer"): (a) is co-signing :this Security Instrument only to mortgage, grant and convey the co,signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay th6 sums secured by this Security Instrument; and (c) agrees that Lender and any other Bon'0wer can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions 'of Section 17, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Secui'ity Instrument. Borrower shall not be released fi'om Borrower's obligations and liability under this Security Instniment unless Lender agrees to such release ip writing. The covenants and agn'emnents of this Security Instrulhent shall bind (except as provided in Section 19~ and benefit the successors and assigns of Lender. 13. Loan Charges. Le:nder may charge Borrower fees for se~wices Performed in connection with Borrower's default; for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, as allowed under ApFlicable Law. The absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. Loan No: W01763133 Initia~.~"~ 'J:~J~L --THE COMPLIANCE SOURCE, liNC.-- Page 8 of 12 Modified ', y~l~e Compliance Source, Inc." 14102%VY 03/02 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 charges collected or to be collected in connection 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 limit; and (b) any snms .already collected fi'om Borrower wl~ich exceeded permitted limits will be refimded to Borrower. Lender ~nay choose;to make this retired by reducing the principal owed under the Note or by making a direct payment to Bon'ower. If a ,'efund reduces principal, the reduction will be treated as a partial prepayment. 14. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrow]er m connection with this Security Instrument shaH1 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 BmTowers unless Applicable Law expressly reqmres otherwise. The notice address shall be the Property Address unless Bon'ower has designated a substitute notice address by notice to Lend:r. Bon'ower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedm'e for ,.'epo~ing Borrower's change of address, tben Borrower shall only repor~ a change of address through that specified procedure. There may be only one designated notice address under this Security h~stmment at any o~e time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stetted herein unless Lender has designated another adch'ess by notice to Bon'ower. Auy notice in com~ection 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 reqnired unde: Applicable Law, the Applicable Law requirement will satisfy the c~orresponding requirement under this Security Instrument. 15. 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 in this Secm'ity Instrument are ~ubject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the pmties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition againsl agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Laxv, such conflict shall not affect other provisions of this Security Inslmment or the Note which canbe given effect without the conflicting provision. As used in this Secur.ty Instrument: (a) words of the masculine gender shall mean and include corresponding ueuter words or words of the femin ne 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. 16. Borrower's Copy. ~'Borrower shall be given one copy of the Note and of this Security Instrument. 17. Transfer of the Pr?perry or a Beneficial Interest in Borrower. As used in this Section 17, "Interest in the PropetV" means any legal !~r beneficial interest in the Propen'y, including, but not li~nited to, those beneficial interests transferred in a bond for~ deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by.Bon'ower at a future date to a purchaser. If all or any part of the Pi'operty 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. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. · If Lender exercises this pption, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 14 within which Borrower mnst pay all stuns 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 Seriurity Instrument without fi~rther notice or demand on Borrower. ' 18. Borrower's Right ':o Reinstate After Acceleration. If Borrower m~ets certain conditions, Borrower shall have the right to have enforc.ement of this Secnrity Instrument discontinued ac any ti~ne prior to the earliest off (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 fright specify for the termination of Bon'ower's right to reinstate; or (c) entry of a judgment enforcing this Secnrity Instrument. Those conditions are that Bmxower: (a) pays Lender all sums which then would be due trader this Security h~strnment and the Note as if no acceleration had_ occ>rred; (b) cures any Loan NO: W01763133 · InittalC~/~ .~D.,z~ Wyoming Mortgage-Single Family- Secondary Lien //~{~.$~dified Fm'm 3801 01/01 THE COMPLIANCE SOURCE, INC.-- i Page 9 of 12 Modil~ed B~q'he Compliance Sourc~, Inc." 14102WY 03/02 ww w.complJancesource.com , 110 default ofm~y otber covenants or agreements; (c) pays all expenses incurred in enforc:ing this Security Instrument, as allowed under Applicable Law; and (d) takes such action as Lender may reasonably reqnire to assure that Lender's interest in the Property and rights under this Security Instl-ument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that BC.n'ower pay such reinstatement sums and expenses in one or mine of the followiug forms, as selected by Lend~r: (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 inshred by a federal agency, insh-umentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Bon'ower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleratioi~ had occnrred. However, tbis right to reinstatelshall not apply in the case of acceleration under Section 17. .i 19. 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 this Security Instrument.and performs otber mortgage loan servicing obligations under the Note, this Security h~stmment, and Applicable Law. There also ~night be one or more cbanges of the Loan Servicer urn'elated to a sale of the Note· If there is a cha?ge of the Loan Servicer, if required under Applicable Law, Borrower will be given written notice of the change which will state the name and address of tbe new Loan Servicer, tbe address to which payments should be made and any other inforlnation RESPA requires in co~mection with a notice of transfer of servicing. If the Note is s01d an:l thereafter the Loan is serviced by a Loan Servicer otber than the purchaser of the Note, the mortgage loan servicing obligations to Bo~xower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser nnless ofi~erwise provided by the Note purchaser. Neither Bmxower nor Le':~der may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other pm-ty's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, nntil such Borrower or Lender has notified the other part), (with such notice given in compliance with the requirements..of Section 14) of such alleged breach and afforded the other party hereto a reasonable period after the giving oTsuch notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this section· The notice of acceleration and opportunity to cure given to Borrowerpursuant to Section 21 and the notice of acceleration given to Borrower pnrsuant to Section 17 shall be deemed to satisfy the notice and opporhmity to take corrective action provisions )f this Section 19. 20. ttazard0us Substances. As Used in this Section 20: (a) "ttazardous Substances" are those substances defined as toxic or hazardous snbst~ nces, pollutants, or wastes by Environmental Law and the following substances: gasoline kerosene, other flammabl,¢ or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, ~naterials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where thc Property is located that relate to health, safety or environmental protection; (c)"Environmental Cl¢:anup" includes any response action, remedial action, or remowfi action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or othenvise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, ! or release of afiy Hazardous Substances, or threaten to release m!y 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 ihe Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of th~ Property (including, but not limited to, hazardous substances in consumer products). Loan No: W01763133 Wyon, ing Mortgage-Single Family- Seco.dvry Lien --THE COMPLIANCE SOURCE, INC.-- www.cornplia ncesoutce.com Page 10 of 12 //M//-RSModilied Form 3801 01/01 l~lodified lf0~The~omplla.ce Source. Inc," 14102WY 03/02 © 2001, The Compliance Source, Inc. Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit 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 limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, nsc or release of a Hazardous Substance which adversely affects the value of the Property. If Borrowm~, 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 sball promptly take all necessary remedial actions in accordance with 'Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. ' NON-UNIFORM COVENANTS. Borrower and Lender fi~,-ther covenant and agree as follows: 21. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 17 nnless ApplicaMe Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less tban 30 days fi'om tl~e date the notice is given to Borrower, by wbicb the default mnst be cured; and (d) that failnre to cure the defanit on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrnment and sale of the Property. The notice shall lurther 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, Lemler at its option m:ty require immediate payment itt full of all sums scented by this Security Instrnment without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lemler shall be entitled to collec;t all expenses iucnrred in pursuing the remedies provided in this Section 21, including, but not limited to, reasonable attorneys' lees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower attd 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 14. 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 all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (h) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled !o it. 22. Release. Upon paylnent.of all sums secured by this Secnrity Instrument, Lender shall release this Security Insmm~ent. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Secnrity Instrument, but only if th~ fee is paid to a third party lot' services rendered and the charging of the fee is permitted under Applicable Law. : 23. Waivers. Bon'ower'releases and waives all rights under and by virttie of the homestead exemption laws of Wyoming. REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender req:;est the holder of any mortgage, deed of trust or other encumbrance with a lien which bas priority over this Security Instrument to give notice to Lender, at Lender's address set forth on page one of this Mortgage, of any default nnder the superior encumbrance and of any sale or other foreclosure action. [Signatures on Following Page] Loan No: W01763133 Wyomiag Mortgage-Single Family- Second~ary Lien --THE COMPLIANCE SOnRCE, INC.-- w w w.complia ncesource.co rn j Page 11 of 12 Initial__...__ ~ !//M~S~{odilied Form 3801 01/01 Modified l~'The CompUanee Source, Inc.' 14102X~ 0]/02 ~ 2001,1'~ Compliance Source, Inc. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Bon'ower and recorded with it. WiOmsses: Printed Name: [Please Complete] Printed Name: [Please Co '~plele] ~ a. L.,BJ:~O~J~) -Borrower (Seal) -Bo~ower (Seal) -Bo~ower [Space Below This Line For Acknowledgment] State of § County of t_ § Before me the undersigned authority, on this day personally appeared BARBAR~ A. I_ARRAZOLO JOSEPH M. I_ARRAZOID and known to me (or proved to me through an identity card or other document) to b,: the person(s) whose name is subscribed to the foregoing instrum:nt, and acknowledged to me that he/she/they executed the same [or the purposes and consideration therein expressed. Given under my hand and seal on this (Seal) day of / Not~ry Public inted N~l~e My Commission Expires: Loan No: W01763133 Wyolni.g Mortgage-Single Family-Seconda~T Lien TIlE COMPLIANCE SOUII. CE, INC. Page 12 of 12 lllllllllllllllIIIlllllllllfllIllllll/lllll/lllllllllllllllllll:l MERS Modified Form 3801 01/01 l~lodlfied By "The C.ml)liance So. roe, Inc." 14102%VY 03102 © 2002, Thc Compliance Source, Inc. LEGAL DESCRIPTION Lot 3 of Kennington Circle Addition of the South Kennlngton Court to the Glen Kennington Addition to the Town of Afton, Lincoln County', Wyoming as described on the official plat thereof.