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HomeMy WebLinkAbout899763WH3ENRECORDEDMAILTO: American Pioneer Financial.Ser~zices, 14950 PONY EXPRESS RD #100 BLUFFDALE, UT 84065 Loan Number: 321018761 Servicing Number: 001343952-6 Inc. RECEIVED LINCOLN COU,~,!Ty CLERK 8 9 .c. 7 6 3 ,Ju!!- t 3:15 MORTGAGE THIS MORTGAGE ("Security rnstrument") is given on May 20, 2004 . The lnortgagor is WILLIAM G. CLINES AND MARTH~ A. CLINES, tlIJSBAND AND WIFE ("Borrower"). This Security Instniment il;. given to American Pioneer',i~'inancial Services, Inc., AN UTAH CORPORATION Which iS orgalfized and existing nnder tll~ hlws of UTAH , and whose address i's 14950 PONY: EXPRESS RD #100, BLUFFDALE, UT 84065 ("Lender"). Borrower owes Lender the prmc,pal sum of ONE HUNDRED SEVENTY THOUSAND ':' '; . . .AND NO/iOOTHS Dollars ([J.S. $170,000. O0 ). This debt is evidenced by Borrower's note dated the same date as this Security histrument ("Note"), which provides for monthly payments with die dill debt if not paid [itflier, due and payable on June 01, 2034 . This Security Instrument secures to Lender: (a) the rep;i;yment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of dze Note; (bi the paymen/' pf all odier sums, will! interest, adva iced under paragraph 7 to protect dm security of fids Security Instrument; and (c) d~e perfqS!'mance of Borrower's covemmts and agreements under fids Security Instrtunent anti lite Note. For this propose, Borrower does h~ei-eby mortgage, grant, convey and warrant lo Lender, with power of sale, die/hllowing described property located 'iii ! ' L inco 1 n Comity, Wyoming: 12341922100191. oo ' SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART THEREOF. which has file add~:ess of Wyonfing 83.127 - 9718 [Zip Codel COUNTY RD 125, THAYNE ("Property Address"); 957 ISueel. Cily}. i' TOGETHER WITH all the ' improvements now or hereafter erected on the property, and all easements, appurtmmnces, and fixtures now or hereafter a part of die pr6Pcrty All replacements and additious shall also be covered by this Security Instrument. All of tim foregoing is referred to in diisi~;ecurity Instrument as fl~e "Property." BORROWER COVENANTS that Borrower is lawfiflly seised of the estate hereby conYeyed and has the right to mortgage, grant and convey die Property and that tl'~e Property is unencunibered, except lbr encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to auy encumbra,~ces of record. COVENANTS. Borrower and bender covenant and agree as follows: 1. Payment Of Principal and Intclrest; Prepaynmnt ',md Late Charges. Borrower shall promptly pay wheu due the principal of and interest on the debt evidenced by ~he Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and h~sura~uze. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to WYOMING - Sh~gle Family Page I of 6 t" ' WYDI00ll (06~23-98) Loan Number: 321018761 '~servicingNumber: 001343952-6 Date: 05/20/0~~ 2~tt2 Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Fm~ds") for: (a) yearly taxes and assessments which n~y attain priority~ Over fids Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; ():} yearly hazard or property insurance premium; (d) yearly flood insurance premiums, if any; (e) yearly mortgage iimurance prm~ums, if any; and (0 any sums payable by Borrower to Lender, in accordance with the provisio~ of paragraph 8, in lieu of the p~ment of mortgage insurance prenfiums. These ite~ are called "Escrow Items." Lender xmy, at any time, collect and hold Funds ia an amount not to exceed ~e inaxinmm amount a l~nder for a federally related mortgage loan my require for Bo~Ower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et Seq. ("~SPA"), mfless another law that applies to the Funds sets a lesser amount. If so, Lender my, at any time, collect and roid Funds in an amount not to exceed ~e lesser amount. Lender ~my esti~te ~e amount of Funds due on ~e basis of current dath and reasonable estinmtes of expenditures of ~ture Escrow Items or otherwise in accorda~e with applicable law. The Funds shall be held in an t~utitution whose deposits are i~ured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an i~tstitution) or in any Federal Home Loan Ba~. Lender 'shall apply the Funds to pay ~e Escrow Items. Lender nmy not charge Bp~ower for holding and applying the Funds, annually a]mlyzing the escrow account, 0r verifying the Escrow Items, unless Lend& :pays Borrower interest on the Funds and applicable law pernfits Lender to nmke such a charge. However, Lender nmy require Borrower to pay a one-time charge tbr an independent real estate tax reporting service used by Lender in com~ection with ~is loan, mfiess applicable law provides otherwise. U~fless an agreement is nmde or applicable law requires interest to be paid, Lender sball~rtot be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender my agree in writing, however, that interest shall be paid on ~e Funds. Lender shall give to Borrower, without charge, an a~ual accounting of the Funds, showifig credits and debits to rte Funds and the pu~ose for which each debit to the Funds Was nude, The Funds are pledged as additioff,[, security for all sums secured by this Security I~tmment. If the Funds held by Lender exceed the amounts permitted to be held by applicable law~ Lender shall account to Borrower for &e excess Funds in accordance with fl~q requirements of app!icable law. If the amount of the Funds held by Lender at any time is not sufficient to pay ~e Escrow Ite~ '-~hen due, Lender n~y so notify Borrower in writing, and, in such case Borrower shall pay to Leuder the amount necessary to ndke up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discreiion. 'Upon payment in ~11 of all sums secured by this Security hutmment, Lender shall promptly rehnd to Borrower any Funds held by Lender. If, under paragraph 21, ~ender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at ~e time of acquisition or sale as a credit against ~e sun~ secured by ~is Security Instrument. ~ 3. App~mfion of Patna. U~fless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under ~e Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due uuder the Note. 4. ~ges; Lie~. Borrower shall pay all' taxes, assessments, charges, fines aud impositions attributable to the Property wlfich my attain priority over fids Security I~tmment, and leasehold payments or ground rents, if any. Borrower shall pay these obligatio~ in ~e nmnner provided in paragraph 2, or if not paid in that nmm~er, Bo~ower shall pay them on time directly to the person owed payment. Borrower shall promptly ~rnish to Lender all notices of amounts to.be paid under fids paragraph. If Borrower nmkes these payments directly, Borrower shall promptly ~nfish to Lender receipts evidencing fl~e payments. Bo~ower shall promptly discharge any lien which has priority over this Security l~tmment ufless Borrower: (a) agrees in writing to ~e payment of ~e obligatior, secured by the lien in a ~mm~er acceptable to Lender; ¢) contests in good faith ~e lien by, or defends against enfurcement of lhe lien in, legal proceedings which in the Lender's opi~fion operate to prevent ~e enfumenmnt of the lien; or (c) secures from ~e holder of the lien an agreement satisfactory to Lender subordimting the lien to this Security hmtmment. If Lender deter~nes that any part of the Property is subject to a lien which nmy attain priority over ~is SecUrity Instrument, Lender nmy give Borrower a notice identit~ing the lien. Bo~ower shall satist~ the lien or take one or more of ~e actio~ set forth above wiain 10 drys of the giving of notice. 5. Hazard or Pro~ ~m. Bo~ower shall keep the improvements now existing or hereafter erected on the Property i~ured against loss by fire, 'hazards included wi~in ae term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance; This insurance shall be n~intained in'~e a~nounts and for the periods that Lender requires. The insurance cagier providing fl~e insurance shall be chosen by Borrower subject to Lender's approval which shall not be u~easo~mbly wiflfl~eld. If Borrower fails to ~mintain coverage described above, Lender ~my, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. All i~urance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have fl~e fight to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiun~ and renewal notices. In fl~e event of loss, Borrower shall give prompt notice to ~e i~muranCe carrier and Lender. Lender ~y rake proof of loss if not ~mde prolr:ptly by Borrower. U~fless Lender and Borrower o~arwise agree in writing, or applicable Law otherwise requires, i~uurance proceeds shall be applied first to rei~nburse Lender for ccsts aid expenses ilmurred iu co~mection with obmi~fing any such i~uurance proceeds, and then, at Lender's option, in such order an.t proportion as Lender my deterlnine in its sole and absolute discretion, and regardless of any impaiment of security or lack thereof~ (i) to the stuns secured by this Security hmtmment, whether or lint then due, and to such components ~ereof as Lender ~my dete~ne in its sole and absolute discretion; ancot (ii) to Borrower to pay the costs and expe~es of necessary repairs or restoration of ~e Property to a condition satisfactory to Lender. If Borrower abandons fl~e Property, or does ~mt a~mwer wiflfin 30 days a notice from Lender that the insurance carrier has oflkred to settle a claim, Lender my collect the i~urance proceeds. Lender my, in its sole and absolute discretion, and regardless of any impairment of security or lack thereof, use the proceeds to repair: or restore the Property or to pay the stuns Secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. U~ess ~nder and Borrower ogmrwise agree in writing, any application of proceeds to principal shall not extend or pos~one the due date of the mon~ly payments referred to in paragraphs 1 and 2 or change the amom~t of the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from dan~ge · to ~e Prope~y prior to the acquisition shall.pass to Lender to the extent of the sums secured by this Security I~tmment inunediately prior to ~e acquisition. If Borrower obtai~ earthquake insurance, any other hazard insurance, or any other i~murance on the Property and such insurance is not specifically required by Lender, ~en such i~uurance shall (i) ~me Lender as loss payee thereunder, and (ii) be subject to the provisions of this paragraph ~. Page 2 of 6 WYD 10012 (06-23-98) Loan Number: 321018761 '!'lServicing Number: 001343952-6 Date: 05/20/04 ':. -2(t3 6. Occupancy, Preservation, M~aimenance and Protection of the Property; Borrower's Loan AppliCation; Leaseholds. Borrower acknowledges that the Lender floes not desire to nmke a loan to Borrower secured by fids property on the terms contained in the Note unless the property is to be bCcupied by Borrower as Borrower's primary/secondary residence. Lender makes non- owner residence loans of different terms.' Borrower pronfises and assures Lender that Borrower intends to occupy this property as Borrower's primary/secondary residence i and that Borrower will so occupy fids property as its sole prilnary/secondary residence within sixty (60) days after file date of die Security Instn~ment. If Borrower breaches this promise to occupy the property as Borrower's primary/secondary residence~, ,then Lender may invoke any of the following remedies, in addition to the remedies provided in the Security Instrument; (1) Declare all sums secured by the Security Ii~strUment due and payable and foreclose the Security Instrument, (2) Decrease the ter':n of rite loan and adjust file monthly payments under the Note accordingly, increase the interest rate and adjust the monthly payn.~ents under the Note accordiugly, or (3) require that the principal balance be reduced to a percentage of either the original purch~s,e price or the appraised value then being offered on non-owner occupied loans. Borrower shall not destroy, da;~)ge or impair the Property, allow the Property to deteriorate, or conunit waste on the Property. Borrower shall be in default iflany forfeiture action or proceeding, whether civil or crinfinal, is begun that in Lender's good faith judgment could result in forf~eitture offlxe Property or otherwise nraterially impair the lien created by this Secnrity Instrument or Lender's security interest. B6rrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be disnfissed ~with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or ofla!~r tnaterial impairment of file lien created by fids Security Instrument or Lender's security interest. Borrower shall also be in defau~ltiif Borrower, during the loan application process, gave materially false or inaccurate i:fformation or statements to Lender (or: failed to provide Lender with any material iufonnation) in connection with the loan evidenced by the Note, including, but not iilnited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security instrument is bna leasehold, Borrower shall comply with all the provisions of file lease. If Borrower acquires fee title to. the Property, the leas. ehold and the fee title shall uot merge unless Lender agrees to the merger in writing. orrower shall, at Borrower .sow, n expense, appear m and defend any acnon or proceeding purvortine to affect the Pronertv or any portion thereof or Borrower s title ~hereto, the vahd~ty or priority ot the hen created by flus Security Instrument, or the rights or powers of Lender with respect to this .Security Instrument or the Property. All causes of action of Borrower, whether accrued before or after the date of this Security hist.runient, for damage or injury to the Property or auy part thereof, or in ~om~ection with any transaction financed in whole or in pi~ri'.: by the proceeds of file Note or any other note secured by this Security Instrument, by 'Lender, or in co~mection with or affecti~gI the Property or any part thereof, including causes of action arising in tort or contract and causes of action for fraud or concea!n~aent of a material fact, are, at Lender's option, assigned to Lender, and the proceeds thereof shall be paid directly to Lender ~!ho, after deducting therefrom ;ill its expenses, including reasonable attorneys' tees, may apply such Proceeds to file sums secured!l~y this Security h~strument or to any deficiency under this Security Instrument or may release any monies so received by it or a!~y part thereof, as Lender may elect. Lender may, at its option, appear in and prosecute in its own name any action or proceeding it0 enforce any such cause of action and may make any compromise or settlement thereof. Borrower agrees to execute such further a:ssigmnents and any other instruments as from time to time ~nay be necessary to effectuate the foregoing provisions and as Lender s.;lall request 7. Protection of Lender's Rights: ia the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there isa l~gal proceeding that may sig~fificantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condenmation or forfeiture or to entbrce laws or regulations), then Lender may do and pay for whatever is necessary to protect the Value of the ProPerty and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrumeut, appearing in court, paying reasonable attorneys' fees and entering on the Property to make: repairs. Although Lender nmy take actiou under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lendelr Under this paragraph 7 shall become additional debt of Borrower secured by this Security InstrUment. Unless Borrower and Lender' agree to other terms of payment, these amounts shall bear interest I¥om the date Of disbursement at the Note rate in effect frclm time to time and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. ~ 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making file loan secured by this Security Instrument, Borrower shall pay the prenfii~ms~ required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender laL~ses or ceases to be in effect, Borrower shall pay the Prenfiums required to obtain coverage substantially equivalent to the mortgage ii~slurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effec',t, from an alteruate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not avail;~bile, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premimn being paid by Borrower when file insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as~ a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage i~rsurance coverage (in the a,nount and for the period that Lender requires) provided by an insurer approved by Lender again bei;omes available and is obtained. Borrower shall pay the prenfiums required to maintain mortgage insurance in effect, or to provi& a loss reserve, until the requirement for mortgage insurance ends in accordauce with any written agreement between BorroweI~ and Lender or applicable law. 9. Inspection. Lender or its age~t may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at file time of or prior tb an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceedS:of any award or claim tbr damages, direct or consequential, in com~ection with any condenmation or other taking of any part of the Property, or for conveyance in lieu of condemnatiou, are hereby assigned and shall be paid to Lender. Lender may apply, use or release the condeumatiou proceeds ill the same mam~er as provided in paragraph 5 hereof with respect to insurance proceeds. If the Property is abandoned by ,Borrower, or if, after notice by Lender to Borrower that the conderm~or offers to make an award or settle a claim for damages, Bfir~ower fails to respond to Lender within 30 days after file date the notice is given, Lender is authorized to collect and apply file pro!~eeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or x~oi then due. Unless Lender and Borrower o~herwise agree in writing, any applicatiou of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Exteusion of the time for payment or modification of amortization of the sums secured by this iSecurity Instrument granted by Lender to any successor in interest of Borrower shall Page 3 of 6 · WYD 10013 (06-23~98) Loan Number: 321018761 Servicing Number: 0013439S'2'-~· ~ ~' ~..~ Date: 05/20/04 ' not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any succes:;or in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by fids Security Instrument by reason of any demand made by file original Borrower or Borrower's successors in interest. Any forbearance by Lender jn ~e~ercising any right or remedy shall not be a waiver of or preclude the exercise of any fight or remedy. 12. SUCcessors and Assigns Bound; JOint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall l~e joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing fids Se,':urity Instrument otfly to mortgage, grant and conv.ey that Borrower's interest ill file Property under the terms of this Security Instrument; (b) is-not personally obligated to pay' the sums secured by fids Security Instrument;. and (c) agrees that Lender and arty other Borrower may agree to extend, modify, forbear or nmke any accommodations with regard to the terms of this Security I:~trument or file Note without that Borrower's consent. 13. Loan Charges. If fl~e loan,sec're:ed by this Security Instrument is subject to a law which sets maximmn loan charges, and that law is finally interpreted so that the!interest or other loan charges collected or to be collected in comlection with file loan exceed the permitted limits, then: (a) any isuch loan charge shall be reduced by the amount necessary to reduce file charge to file permitted limit; and (b) any suins already collected from Borrower Which exceeded permitted Ii,nits will be refunded to Borrower. Lender nuty choose to nmke fids refund bylr~ducing the principal owed under file Note or by making a direct payment to Borrower. If a refund reduces principal, file reductior. Will be treated as a partial prepaymeut without any prepayment charge under the Note. 14. Notices. Any notice to Borrox~e? provided lbr in this Security Instrument shall be given by delivering it or by mailing it by first class nmil unless applicable law 'reqUires use of another meflmd. The notice shall be directed to'the Property Address or any other address Borrower designates by notice to Lender. Any nOtice to Lender shall be given by first class mail to Lender's address stated herein or any other address, Lender. designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have be,e.n given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and file law of the jurisdiction in which the Property is located. In the e'~ent that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or file Note which can be given effect without the conflicting provision. To this end the provisions of fids Security Instrmnent and file Note are declared to be severable. 16. Borrower's Copy. Borrower :!hell be given one conformed copy of file Note and of this Security Instrmnent. 17. Transfer of the Property or a B~ n~ficial Interest in Borrower. If all or any part of file Property or auy interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender nmy,i at its option, require inmlediate pay~nent in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is proltibited by federal law as of the date of this Security h~strument. :. If Lender exercises this option, L~'nder shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these stuns prior to the expiration of this period, Lender may invoke any remedies permitted by fids Security Instrument without furthe:? notice or denmnd on Borrower. 18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have rile right to have enforcement of this Security Instrmnent discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law may specify for reinstatemen0 before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lelder all stuns which then would be due under fids Security Instrumen;: and the Note as if no acceleration had occurred; (b) cures any de/hull of any other covenants or agreements; (c)pays all expenses incurred in enlbrcing this Security Instrmnent, including, but not limited to, reasonable attorneys' fees; and'(d) takes ~such action as Lender may reasom~bly require to assure that file lien of this Security Instrument, Lender's rights in the Proper[y and Borrower's obligation to pay file sums secured by this Security Instrument shall contilme unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note; Change of Loan Servicer. The Note or a partial interest in file Note (together with fids Security I!lstrumen0 nmy be sold one or more times Without prior notice to Borrower. A sale may result ill a change ill the entity (known as the "Loan Servicer")that collects monthls~ payments due under file Note and this Security Instruntent. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change in acco:dance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments .should be nmde. The notice will also contain any other infornuition required by applicable law. fi'he holder of the Note and this Security Instrument shall be deemed to be the Lender hereunder. 20. I-Ia~ardous Substances. Borrc;wer shall not cause or permit the presence, use~ disposal, storage, or release of any Hazardous Substances on or in the Proper:yi Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Enviromnental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to nmintenance of the Property. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by ally governmental or regulatory agenCy Or pri~ta~e party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. ,If.Borrower learns, or is notified by any govermnental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting file Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Borrower shall be solely respon:;ible for, shall inde~mlify, defend and hold harmless Lender, its directors, officers, employees, attorneys, agents, and their resPective successors and assigns, t¥om and against any and all claims, demands, causes of action, loss, damage, cost (including actual attorneys' fees and court costs and costs of any required or necessary repair, cleanup Or detoxification of the Property and file prePhration and implementation of auy closure, abatement, comaimnent, remedial or other required plan), expenses and liability directl~'or indirectly arising out of or attributable to (a) file use, generation, storage, release, threatened release, discharge, disposal, abatement or presence of Hazardous Substances on, under or about file Property, (b) the transport to or from the Property of any HaZardous Substances, (c) the violation of any Hazardous Substances law, and (d) any Hazardous Substances claims. Page 4 of 6 WYD 1001.4 (06-23-98) ,) Loan Number: 321018761 Servicing Number: 001343952-6 Date: 05/20/04;.~ :' ', 24 5 As used in fids paragraph 20, "Hazardous Substances" are those substances defined as tOxic or hazardous substances by Environmental Law and the following sub:;tances: gasoline, kerosene, other flannnable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, ~naterials' containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 20, "Enviromnental Law" means federal l:aws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection. ' ADDITIONAL COVENANTS. Boi'rower and Lender further covenaut and agree as follows: 21. Acceleration; Renmdies. Ifafiy installment m~der the Note or notes secured hereby is not paid when due, or if Borrower should be in default nnder any provision df this Security Instrmnent, or if Borrower is in default under any other nmrtgage or other instalment secured by the Property, all sumsI secured by this Security Instrument and'accrued interest thereon shall at o~me become due a~d payable at the option of Lenddr W[tl/out prior notice, except as otherwise required by applicable law, and regardless of any prior forbearance, hi such event, Lender, ~.at its option, and subject to applicable law, may then or thercafter foreclose this Security Instalment either by advertisement and ~le ~of the Property as provided by statute (the power of sale provided for by statute being hereby expressly granted to Lender by B~?rrgwer) or by an action in equity, and may invoke any other remedies or take any other actions permitted by applicable law. Lender~ will collect all expenses incurred in pursuh~g the remedies described in this Paragraph 21, including, but not limited to, reasona}ale attorneys' fees and costs of title evidence. If Lender invokes the power oflsale, Lender stroll give notice of intent to foreclose to Borrower and to the perSOn in possession of the Property, if different, ~n accordance with applicable law. Lender shall give notice of its intent to foreclose to Borrower by certified mail, return receigt, in the numner provided in paragraph 14. Lender shall publish the notice of sale, and the Property shall be sold m the manner p?e~ribed by apphcable law. Lender or its desig~me may purchase the Property at any sale. The proceeds of the sale slmll be applied in the following order: (a) to 'all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all smn~ secured by this Security instrument; and (c) any excess to the person or persons legally entitled to it. 22. Release. Upon payment of ,!dl sums secured by [lfis Security Instrument, Lender shall release this property without warranty to the person or persons legally 2nt~tled to it. Such person or persons shall pay any recordation costs. Leuder may charge such person or persons a fee for releasing.the Property tbr services rendered if the charging of file fee is permitted under applicable law. 23. Waivers. Borrower hereby rtqe;~ses and waives all rights in file Property under aud viture of file homestead exemption laws of the State of Wyonfing and hereby rehuqmshes all fights of curtesy and dower iu the Property. 24. Misrepresentation and Nond~sciosure. ,Borrower has made certain written representations aud disclosures ill order to induce Lender to make file loan evidenced by the Note or notes which dds Security Instrument secures, aud in the event that Borrower has made any material misrepr,;sentatiou or failed to disclose any material fact, Lender, at its option aud without prior notice or denkand, shall have [lie right to dec:lure the iudebtedness secured by this Security Iustrument, irrespective of the maturity date specified in [lie Note or notes secured bY this Security instrument, immediately due and payable. 25. Time is of the Essence. Timeig of [lie esseuce in the performance of each provision of this Security Instrument. 26. Waiver of Statute of Limitati:ons] The Pleading of the statute of limitations as a defense to euforcement of this Security InstrUment, or any and all obligatious referred to herein or secured hereby, is hereby waived to the fullest extent perufitted by applicable law. 27. Modification. This Security h~Strument may be modified or ameuded only by an agreement ill writing signed by BorroWer and Lender. · 28. Reimhumement. To the exteht pernfitted by applicable law, Borrower shall reimburse Trustee and Lender for any and all costs, fees and expenses which either may incur, expend or sustain ill the execution of die trust created hereunder or in the performance 0f auy act required or permitted hereunder or by law or in equity or otherwise arising out of or ill comlection with this Security Instrument; the Note, any oilier note secured by this Security Instrunlent or any other instrument executed by Borrower in co~mection with die Note or Security InstrUment. To the extent permitted by applicable law,. Borrower shall pay to Trustee and Lender their fees in comlectiou with Trustee and Lender including, but not linfited to assumption application fees; fees for payoff demands and, statements of loan balance;, fees for making, transnfitting and trausporting copies of loan documents, verifications, full or partial lien releases and other documents requested by borrower or necessary for performance of Lender's rights or duties under this Security fustrument; fees arising from a returned or dishonored check; fees to detemfine whether the Property is occupied, protected, n~aintained or insured br related purposes; appraisal fees, inspection fees, legal fees, broker fees, insurance nfid-term substitutions, repair expenses, foreclosure fees and costs arising from foreclosure of the Property and protection of the security for this Security Instrument; and. all other fees and costs of a similar nature not otherwise prohibited by law. 29. Clerical Error. In [lie eveni Eender at any time discovers that die Note, any oilier note secured by this Security Instrument, the Security Instrument, or any other document or instrument executed in comlection with the Security Instrument, Note or notes contains an error that was caused b~ a clerical mistake, calculatiou error, computer malfuuction, printing error or sinfilar error, Borrower agrees, upon notice frmn Lender, to reexecute any documents that are necessary to correct any such error(s). Borrower further agrees that Lender wiI~ not be liable to Borrower for any damages incurred by Borrower that are directly or indirectly caused byany such error. 30. Lost Stolen, Destroyed or ldu'tilated Security Instrument and Other DocUments. Iu the event of file loss, theft or destruction of the Note, any other note Secured by this Security hlstrument, the Security Instrument or any other documents or instruments executed in comlection witlz the Security Instrument, Note or notes (collectively, the "Loan Documents"), upon Borrower's receipt of an indemnification }xecuted in favor of Borrower by Lender, or, in the event of the mutilation of any of the Loan Documents, upon Lender's surrender to Borrower of file mutilated Loan Document, Borrower shall execute aud deliver to Lender a Loan Document in form and content identical to, and to serve as a replacement of, the lost, stolen, destroyed, or nmtilated Loan Document, and such replacement ;h~ll have the same force and effect as file lost, stolen, destroyed, or mutilated Loan Documents, and may be treated'for all purposes as die original copy of such Loan Document. 31. Assignment of Rents. As additional security hereunder, Borrower hereby assigns to Lender the rents of the Property. Borrower shall ha~e the right to collect and retain die rents of [lie Property as they become due and payable provided Lender bas not exercised its.rights to require inunediate payment in full of the sums secured by this Security instrument and Borrower has not abandoned the Property. 32. Riders to fids Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants aud a~reements,: of each such rider shall be incorporated into aud shall amend and supplement Page 5 of 6 WYD 10015 (06-23-98) Loan Number: 321018761 Servicing Number: 001343952-6 Date: 05/20/04 the covenants and agreements of this Security Instrument as i.f the rider(s) were a part of this Security Instrument. [Check applicable box(es)] [] Adjustable Rate Rider [] No Prepayment Penalty Option Rider [] Other(s) (specify) [] Condonfinium Rider [] Planned Unit Developlnent Rider [] 1-4 Fanfily Rider [] Occupancy Rider BY SIGNING BELOW, Borrower,accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and t.~corded with it. Witnesses: .(Seal) -Borrower .(Seal) -Borrower - ' (Seal) .(Seal) WILLIS24 G. CLI~t/lqE~$ -Borrower -Borrower IVlJkR{ffH& g.. CLINE$ -Borrower -Borrower STATE OF WYOMING, Linc oln County ss: The foregoing instrument was acknowledged before me this 21 s t day of May, / by William G. Clines and Martha A. Clines (person acknowledging) My Commission Expires: February 2, 2006 Notary Public ~Mi. EY ~ · NOIAqY Pt~.IG I 2004 (date) Page 6 of 6 WYD10016 (06-23-98) Loan Number: 321018761 Servicing Number: 001343952-6 Date: 05/20/04 ADJUSTABLE RATE RIDER (LIBOR Index - Rate Caps) THIS ADJUSTABLEtRATE RIDER is nmde May 20, 2004 and is incorporated into and shall be deemed to amend and supplement tile Mortgage, Deed of Trust or Security Deed (the "Security fnstmment") of the same date giveu by file undersigned (file "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to American Pioneer' Financial Services, Inc., AN UTAH CORPORATION (the "Lender") of file same dat% and covering the property described in the Security Instrument and located at: 957 COUNTY RD 125, THAYNE, WY 83127-9718 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR cHANGES IN THE INTEREST RATE AND THE MONTHI.,Y PAYMENT. TIlE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to file cove~mnts and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: The Note provides for an initial interest rate of 6. 350% Note provides for changes in the interest rate and file monthly paymeuts, as follows: · The 4. INTEREST RATE ANI) MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on file first da3, of ,June 01 2007 , and on that day every sixth month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Begilming with file fir:;t Change Date, my interest rate will be based on an Iudex. The "Index" is the average of interbank offered ;ates for six-month U.S. dollar-deuonfinated deposits in file London market ("LIBOR"), as published in The Wall Street Jout~ml. The most recent Index figure available as of file first business day of the month inunediately preceding the month iu which the Change Date occurs is called file "Current Index·" If the Index is no longer available, file Note Holder will choose a ne'w iudex that is based upon comparable information. The Note Holder will give me notice of this choice· (C) Calculation of Chtmges Before each Change Date, the Note Holder will calculate my new interest rate by adding FOUR AND 45/100 percentage poiut(s) ( 4. 450% ) to the Current Index. The Note Holder will then round the result of this addition to the next higher one-eighth of one percentage point (0.125 %). Subject to file linfits stated in Section 4(D) below, this rounded amount will MULTISTATE ADJUSTABLE RATE' RIDER-LII~R INDFX - Single Family Page 1 of 3 USRI0021 (02-23-99) Loan Number: 321018761 Servicing Number: be my new interest rate until the next Change Date. 001343952-6 Date: 05/20/04 The Note Holder will then determine the amount of the monthly payment-that would be sufficient to repay the unpaid principal that [ am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantialls; ~qual paymems. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.3 S 0 % or less than 6.3 5 0 % . Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one percentage point (1.0%) from the rate of interest I have been paying:for the preceding six months. In no event will my interest rate be greater than 12.350 % or less than 6.350 % (E) Effective Date of (]mnges My new interest rate Will become effective on each Change Date. I will pay the amount of my new monthly payment begimfing on .the first monthly payment date after thc Change Date until the a~nount of my monthly payment changes agair=. On) Notice of Changes The Note Holder will de!iver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include infornmtion required by law to be given me and also ihe title and telephone number of a person who will answer any question I nmy have regarding the notice. TRANSF ~ER OF THEFROPERTY OR A BENEFICIAL INTEREST IN BORROWER Covenant 17 of the Security In~(tmment is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or ifa beneficial interest in Borrower is sold or traxtsferred and Borrower is not a natural persm0 without Lender's prior written consent, Lender inay, at its option, reqmre inm~ediate payment in full of all sums secured by this Security Instrmnent. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Eorrower causes to be submitted to Lender infornmtion required by Lender to evaluate the intended transferee as ifa new loan were being nmde to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent perinitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to l.ender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Se:urity Instrumem. Borrower will continue to be obligated under the Note and this Security Instruxnent unless Lender releases Borrower in writing. If Lender exercises the option to require in, mediate paymelu iu full, 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 delivered or ~nailed within which Borrower nmst pay all stuns secured by tiffs Security Instrument. If Borrower fails to pay these sums prior to the expiration of tiffs period, Lender omy invoke any remedies pernfitted by this Security Instrument without fur, ther notice or denmnd on Borrower. MULTISTATE ADJUSTABLE RATE RIDER-LIBOR INDEX~qingP' Family Page 2 of 3 USRI0022 (02-23-99) Loan Number: 321018761 Servicing Number: 001343952 -6 Date: 05/20/04 BY SIGNING BELOW, Borrower accepts and agrees to the ternts and covmmnts contained in this Adjusta¥1e, Rate Rider. .(Seal) (Seal) ISeal) (Seal) MULTISTATE ADIUSTABLE RA'rF2 RIDER-LIBOR lNDF~-Siagle Family Page 3 of 3 USR10023 (02-23-99) LEGAL DESCRIPTION Parcel 1 That part of the NW~ANE~ ~and that part of the NE~fiNW~A of Section 22, T34N Rll9W, Lincoln County, Wyoming, being part of those tracts of record in the Office of the Clerk of Lincoln County in Book 77PR on page 159; Book 217PR on page 8; and Book 161PR on pages 78-79 & 82-85, described as follows: BEGINNING at a point, S 84012.2' W, 2656:68 feet from the northeast comer of said Section 22, found as described in the Certified Land Recordation Certificate filed in the said Office; thence S 89°17.1, E, 112.0(} feet to a point; thence S 33o14.2, E, 121.76 feet to a point; thence S 00o42.9, W, 343.00 feet to a point; thence S 57042.6, W, 214.64 feet to an intersection with an existing north/south fence; thence N 00042.9, E, along said fence, 560.92 feet to the POINT OF BEGINNING. LESS AND EXCEPT and lands lying in the NEIANW~A of Section 22, T34N Rll9W. Parcel 2 The right of access as provided for in instrument recorded August 17, 1989 in Book 276PR on page 418 of the records of the Lincoln County Clerk.